-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WguVIZoLKcJWwDuOoOTe0lmtdgK7kyp5YSpd7ImmC7mVT5ihst8wS5WzsYaL3Q3F JTlyH5PVy4WYRaBSd84a5Q== 0000950124-08-000028.txt : 20080104 0000950124-08-000028.hdr.sgml : 20080104 20080103173728 ACCESSION NUMBER: 0000950124-08-000028 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071227 ITEM INFORMATION: Material Impairments ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080104 DATE AS OF CHANGE: 20080103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNITY SHORES BANK CORP CENTRAL INDEX KEY: 0001070523 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 383423227 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51166 FILM NUMBER: 08508115 BUSINESS ADDRESS: STREET 1: 1030 W. NORTON AVENUE CITY: MUSKEGON STATE: MI ZIP: 49441 BUSINESS PHONE: 2317801800 MAIL ADDRESS: STREET 1: 1030 W. NORTON AVENUE CITY: MUSKEGON STATE: MI ZIP: 49441 8-K 1 k22726e8vk.txt CURRENT REPORT DATED DECEMBER 27, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K ---------- CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) DECEMBER 27, 2007 ---------- COMMUNITY SHORES BANK CORPORATION (Exact name of registrant as specified in its charter) MICHIGAN 000-51166 38-3423227 (State or other jurisdiction (Commission File Number) (IRS Employer Identification of incorporation) No.)
1030 W. NORTON AVENUE, MUSKEGON, MICHIGAN 49441 (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 231-780-1800 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.06 MATERIAL IMPAIRMENTS. On December 28, 2007 the Registrant issued a press release, announcing that it's wholly owned subsidiary, Community Shores Bank ("the Bank"), has estimated that its fourth quarter 2007 loan loss provision will be $1 million. $689,000 of the additional loan loss provision is associated with two impaired commercial and industrial loans made to one customer totaling $1.1 million. The borrower's financial condition has deteriorated and the Bank could no longer rely on his personal resources to make the contractual principal and interest payments. The loans are collateralized by equipment and a second mortgage on the borrower's personal residence. Forced liquidation values were established for the equipment and the equity in borrower's personal residence was based on 90 percent of the 2007 appraised value minus the balance of the first mortgage. Based on the above assessment performed on December 27, 2007 it was determined that there was a collateral deficiency of $689,000. At this time it is believed that the loan loss allocation level is adequate and justifiable. The impairment charge does not include ancillary costs or expenditures that may be associated with liquidation of the real property. The December 28, 2007 press release is furnished below under Item 7.01 of this report. ITEM 7.01. REGULATION FD DISCLOSURE. A copy of the Registrant's press release issued December 28, 2007 relating to the impairment described in Item 2.06 is furnished as Exhibit 99.1 to this report. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. Exhibit 99.1 Press Release dated December 28, 2007. - -------------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COMMUNITY SHORES BANK CORPORATION ---------------------------------------------- (Registrant) JANUARY 3, 2008 /S/ TRACEY A. WELSH - ------------------------ ---------------------------------------------- (Date) Tracey A. Welsh Senior Vice President, Chief Financial Officer and Treasurer - -------------------------------------------------------------------------------- EXHIBIT INDEX 99.1 Press release dated December 28, 2007 EX-99.1 2 k22726exv99w1.txt PRESS RELEASE DATED DECEMBER 28, 2007 EXHIBIT 99.1 [COMMUNITY SHORES LOGO] COMMUNITY SHORES REPORTS Q4 INCREASES IN LOAN LOSS PROVISION Muskegon, Mich., December 28, 2007 (PRIME NEWSWIRE)--Community Shores Bank Corporation (Nasdaq: CSHB) announced today that it will take an additional provision in the fourth-quarter for the impairment of one commercial (C & I) loan that is part of a $5 million relationship. In addition to the C&I loan, this relationship includes loans collateralized by commercial real estate and one residential construction project. Community Shores is also increasing its reserve allocation for loans to residential real estate and land developers due to deteriorating conditions in the Bank's local market. The Company estimates its fourth-quarter provision for loan losses to be approximately $1 million. This estimate provides for a specific allocation of $689,000 related to the impairment of the previously-mentioned C & I loan. Additionally, an increased allocation of $100,000 has been made on its $15 million portfolio of residential and land development loans. This allocation reflects management's assessment of the elevated risks within the residential and land development sector, including reduced borrower liquidity and carrying ability, declining real property values, and the weak economic environment. These loans represent sixteen percent of Community Shores Bank's $93 million commercial real estate portfolio and six percent of its total loan portfolio. The increased provision should lower pre-tax earnings by approximately $0.68 per diluted share when the Company reports it financial results for the 2007 fourth quarter and year-end. "Conditions in our market necessitate this increased provision. The prolonged slowdown in residential real estate sales has raised concerns about borrower liquidity and the future ability of these borrowers to service debt," said President and CEO Heather Brolick. "At the present time, we believe we are adequately reserved. We continue to actively monitor our loan portfolio and respond to changes in our local economy." 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. The Company's stock is listed on the NASDAQ Capital Market 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 real estate values; changes in the national and local economy; 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. -----END PRIVACY-ENHANCED MESSAGE-----