Community Shores Bank fka CSHB

[norweger1979]

CSHB $2.25

Recent Developments

The Company’s risk profile continued to improve in 2015 as a result of credit quality stabilization and improved real estate valuations both of which translated into no calculated loan loss provision and fewer foreclosed asset impairment charges affecting core earnings.

As a result its trend towards regulatory safety and soundness, on December 29, 2015, the Bank received official notice from the FDIC and the Michigan Department of Insurance and Financial Services that the regulatory Consent Order entered into on September 2, 2010 was terminated effective December 16, 2015.

Management is pleased to report that due to capital raising efforts commenced in the fourth quarter of 2015 and completed on March 28, 2016, the Company has successfully raised net proceeds, after expenses, of approximately $4.770 million. As described in more detail in our Annual Report, with these proceeds, the Company repaid the interest due on its trust preferred securities totaling approximately $722,000; made a capital contribution to the Bank of approximately $3.35 million, and retained approximately $900,000 for general operating purposes.

The Company remains subject to the Written Agreement with the Federal Reserve Bank of Chicago, (the “FRB”), the Company’s primary regulator, which became effective on December 16,2010 when it was executed by the FRB. Management believes that the repayment of the overdue interest on the Company’s trust preferred securities and the strengthened capital position of the Bank will motivate the FRB to consider amending or terminating the Written Agreement. Management plans to work with the FRB to that end during the coming months.

http://www.sec.gov/Archives/edgar/data/1070523/000114420416094340/v436836_10k.htm