Community Shores Bank Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The company reported a third quarter 2009 net loss of $566,000, or $0.39 per diluted share, compared with third quarter 2008 net income of $12,000, or $0.01 per diluted share. Results reflect an increased provision for loan losses as well as a higher level of expenses associated with credit administration and FDIC insurance premiums compared to the year-ago quarter. Total revenue, consisting of net interest income and noninterest income, was $2.20 million for the third quarter of 2009, compared to $2.19 million for the year-ago quarter. Net interest income for the third quarter was $1.80 million, a $48,000, or 2.8%, increase from the $1.75 million reported in the third quarter of 2008. Loss before income taxes was $566,407 against $4,874 for the same period a year ago. The net loss for the first nine-months of 2009 totaled $2.17 million, or $1.48 per diluted share, compared to net income of $55,000, or $0.04 per diluted share, for the 2008 nine-month period. Excluding from the first nine-months of 2009 the impact of the tax valuation allowance and the FDIC special assessment charge, the net loss from core banking operations was $1.07 million, or ($0.73) per diluted share. Net interest income was $5.2 million against $5.3 million for the same period a year ago. Loss before income taxes was $1.2 million against $8,080 for the same period a year ago. Nine-month year-to-date results include a non-cash charge of $986,000 associated with the establishment in the second quarter of a tax valuation allowance on the Company's deferred tax asset, higher FDIC assessment fees, including the one-time FDIC special assessment charge of $114,000 ($74,100 after-tax, or $0.05 per diluted share) and higher credit administration expenses compared to the 2008 period. Net charge-offs were $213,000 for the third quarter of 2009, or an annualized 0.45% of average loans; this compares to 0.64% and 0.38% of average loans, respectively, for the linked and year-ago quarters.

Community Shores Bank Corp. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported a net loss of $1.46 million, or $0.99 per diluted share, compared with net income of $11,000, or $0.01 per diluted share, for the second quarter of 2008. Loss before income taxes was $182.9 million against $10.3 million for the same period a year ago. Excluding the impact of the tax valuation allowance and the FDIC special assessment charge, the pre-tax loss from core banking operations for the second quarter of 2009 was $63,000, or ($0.04) per diluted share. Total revenue, which consists of net interest income and non-interest income, was $2.28 million for the second quarter of 2009, compared to $2.30 million for the year-ago quarter. Net interest income for the second quarter was $1.64 million, a decline of 2.7% from the $1.69 million reported in the second quarter of 2008. Return on average assets was negative at 2.25% compared to the return on average assets of 0.02% for the same period a year ago. Return on average common equity was negative at 40.45% compared to the return on average assets of 0.28% for the same period a year ago. For the six months, the net loss totaled $1.73 million, or $1.17 per diluted share, compared to net income of $43,000, or $0.03 per diluted share, for the 2008 six-month period. Second quarter and six months year-to-date results reflect a non-cash charge of $1.11 million associated with a tax valuation allowance on deferred tax assets, higher FDIC assessment fees, including the one-time FDIC special assessment charge of $114,000 pre-tax ($74,100 after-tax, or $0.05 per diluted share) and higher credit administration expenses. Excluding the impact of the tax valuation allowance and the FDIC special assessment charge, the pre-tax loss from core banking operations for the first half of 2009, $0.50 million, or ($0.34) per diluted share. Loss before income taxes was $621.1 million against the income before income taxes of $12.95 million for the same period a year ago. Pre tax income was $0.6 million on the net interest income of $3.2 million compared to the pre tax income was $13,000 on the net interest income of $3.5 million for the same period a year ago. Return on average assets was negative at 1.34% compared to the return on average assets of 0.03% for the same period a year ago. Return on average common equity was negative at 23.85% against the return on average common equity at 0.55% for the same period a year ago.

Community Shores Bank Corp. announced that on May 14, 2009, Ralph R. Berggren, Senior Vice President and Secretary of the company, resigned from his positions as an officer of the company. Mr. Berggren is continuing to serve the company’s wholly-owned subsidiary, Community Shores Bank, as a Senior Vice President of the Bank.