Community Shores Bank Consent Order Terminated by State and Federal Regulators and Results of Community Shores Bank Corporation's Successful Rights Offering and Private Placement

Regulatory Approvals Required Before Closing           

The Company has obtained approval from the Federal Reserve Board to apply proceeds from the offering toward the payment of accrued interest due on its trust preferred securities.  However, certain of the Company's shareholders, as the result of additional shares purchased through the offerings, will exceed regulatory thresholds under the Bank Change in Control Act for ownership of its common stock.  Before closing of the offering, regulatory approvals for their increased ownership must be obtained. The Company is working actively with the Federal Reserve Board on these approvals and expects to be in position to close the offering on or before March 8, 2016.    Shareholders who have subscribed for common shares in the rights offering will receive all shares for which they have subscribed as soon as practicable following receipt of regulatory approvals and closing of the rights offering.

Bank Regulatory Ratios

Once the regulatory approvals are obtained, approximately $3.7 million of new capital will be contributed to the Bank. The Bank's capital ratios will increase measurably. It is anticipated that the Total Risk Based Capital Ratio will be well above 12% and the Tier One Ratio will be above eight percent making the Bank well-capitalized according to regulatory capital guidelines.

"The strengthened capital position of the Bank will not only expand growth opportunities but also qualify the Bank for meaningful reductions in overhead expenses such as FDIC and other insurance premiums," noted Ms. Tracey A. Welsh, Senior Vice President and Chief Financial Officer of the Company and the Bank.

About the Company

Community Shores Bank Corporation is the only independent community banking organization headquartered in Muskegon. The Company serves businesses and consumers in the western Michigan counties of Muskegon and Ottawa from four branch offices. Community Shores Bank opened for business in January 1999, and has $182 million in assets. The Company's stock is listed on the OTCBB under the symbol 'CSHB.' For further information, please visit the Company's web site at: www.communityshores.com.

Forward Looking Statements

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; changes in the local real estate market; and other factors, including risk factors, referred to from time to time in filings made by Community Shores with the Securities and Exchange Commission. Community Shores undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Community Shores Bank Corporation