8-K

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): February 04, 2015

Community Shores Bank Corporation

(Exact name of registrant as specified in its charter)

Michigan	000-51166	38-3423227
(State or other jurisdiction	(Commission File	(IRS Employer
of incorporation)	Number)	Identification Number)

1030 W. Norton Avenue, Muskegon, Michigan	49441
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code 231-780-1800

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 (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 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 2.02 Results of Operations and Financial Condition

Community Shores Bank Corporation (OTC:CSHB) announced today that it fully reversed its deferred tax valuation allowance in the fourth quarter of 2014. The reversal resulted in a one-time Federal tax benefit of $4.1 million or $2.80 per common share. The Company has carried a full valuation allowance against its deferred tax assets since the second quarter of 2009. Many factors, including positive core earnings and asset quality trends, as well as expectations regarding the Company’s ability to generate future taxable income combined to facilitate the recovery of the deferred tax valuation allowance. Including this benefit, full year earnings were $4.3 million or $2.95 per common share. At year-end 2014, Community Shores’ book value per common share rose to $5.50.

On February 3, 2015, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated February 4, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Community Shores Bank Corporation
	By:	/s/  Tracey A. Welsh
		Tracey A. Welsh
		Senior Vice President, Chief Financial
		Officer and Treasurer
Date: February 4, 2015

2

Exhibit Index

Exhibit Number	Description
99.1	Press release dated February 4, 2015.

3

EX-99.1

Community Shores Reverses Its Tax Valuation Allowance And Reports Highest Book Value Since 2010

MUSKEGON, Mich., Feb. 4, 2015 /PRNewswire/ -- Community Shores Bank Corporation ("Community Shores") (OTC: CSHB), Muskegon's only locally headquartered independent community banking organization, announced today that it fully reversed its deferred tax valuation allowance in the fourth quarter of 2014. The reversal resulted in a one-time Federal tax benefit of $4.1 million or $2.80 per common share. The Company has carried a full valuation allowance against its deferred tax assets since the second quarter of 2009. Many factors, including positive core earnings and asset quality trends, as well as expectations regarding the Company's ability to generate future taxable income combined to facilitate the recovery of the deferred tax valuation allowance. Including this benefit, full year earnings were $4.3 million or $2.95 per common share. At year-end 2014, Community Shores' book value per common share rose to $5.50.

Heather D. Brolick, president and chief executive officer of Community Shores Bank Corporation, commented, "We are pleased with the consistent improvements and trends in our Company's performance. We have posted 12 consecutive quarters of profitability. Our net interest margin, in what has been recognized industry wide as an unfavorable rate environment, compressed a nominal 10bp from year-end 2013. Importantly, we anticipate minimal or no further erosion in 2015."

Noting a five year continuous downward trend in non-performing assets, Ms. Brolick added that, "Foreclosed assets, non-accruals and past dues have improved significantly with the Bank experiencing a 72% reduction in non-performing loans since 2009 and zero commercial related past due loans for 2 consecutive year-ends. These statistics indicate that the overall risk inherent in the Bank's troubled assets has been meaningfully reduced, and when combined with our recent earnings history, enabled a reversal of the Company's tax valuation allowance."

Ms. Brolick concluded, "The tax valuation allowance reversal certainly contributed to the $3.01 increase in book value per share since year-end 2013 but the reversal is also indicative of the Company's commitment to risk metric enhancements."

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 grown to $185 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.

Community Shores Bank Corporation
Selected Financial Information
At or For the Year-Ended December 31,	2014		2013		2012
(dollars in thousands, except per share data)	(Unaudited)		(Audited)		(Audited)
Results of Operations:
Net interest income	$      6,158		$     6,347		$     6,884
Provision for loan losses	0		0		75
Non-interest income	1,731		6,943		1,687
Non-interest expense	7,595		7,645		8,228
Income (loss) before income tax	294		5,645		268
Income tax expense (benefit)	(4,038)		105		0
Net income (loss)	4,332		5,540		268
Financial Condition:
Total assets	184,677		190,779		204,231
Loans held for sale	148		240		6,041
Loans	129,787		131,554		125,830
Allowance for loan losses	1,978		2,810		3,383
Securities	31,691		31,230		41,460
Deposits	161,305		171,940		184,176
Federal funds purchased and repurchase agreements	8,611		8,428		10,190
Notes payable and other borrowings	5,780		5,780		9,500
Shareholders' equity	8,081		3,663		(1,239)
Performance Ratios:
Return on average assets	2.25	%	2.86	%	0.13	%
Return on average shareholders' equity	107.63		196.56		N/A
Net interest margin	3.44		3.54		3.53
Efficiency ratio	96.27		57.52		96.00
Per Share Data:
Earnings per share - basic	$        2.95		$      3.77		$      0.18
Earnings per share - diluted	2.95		3.77		0.18
Book value per share	5.50		2.49		(0.84)
Capital Ratios of Bank:
Tier 1 risk-based capital	7.62	%	7.22	%	6.61	%
Total risk-based capital	9.07		8.48		7.88

CONTACT: At Community Shores Bank Corporation: Heather D. Brolick, President and CEO, 1-231-780-1845, hbrolick@communityshores.com, Tracey A. Welsh, Senior Vice President and CFO, 1-231-780-1847, twelsh@communityshores.com