MUSKEGON, Mich., Dec. 4, 2007 (PRIME NEWSWIRE) -- Community Shores Bank Corporation (Nasdaq:CSHB) today reported that on November 16, 2007 a notice was published in the Grand Rapids Press by Black River BancVentures, Inc. announcing its intent to apply to the Federal Reserve Board for permission to acquire control of the Company and its banking subsidiary, Community Shores Bank. Black River has subsequently advised the Company, however, that it does not intend to apply to the Federal Reserve Board for permission to acquire control of the Company at this time. Black River has told the Company that it intends instead to apply to the Federal Reserve Board for permission to own up to 24.9% of the outstanding shares of the Company's common stock. Approval of Black River's application would not require it to own that amount. Black River has advised the Company that it now owns almost 10% of the Company's outstanding shares. Black River has filed a report on Schedule 13G with the Securities and Exchange Commission regarding its ownership of shares of the Company.
The Company is making this press release, among other reasons, so that shareholders will be aware that Black River is filing an application with the Federal Reserve Board for permission to acquire shares of the Company. The Company has entered into no agreements with Black River regarding the matters referred to above, and has not confirmed the accuracy of the information in any of Black River's filings. Black River could change its plans at any time, the Company might or might not know of the change, and the Company undertakes no obligation to issue any updates regarding the subject matter of this release.
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 Black River's plans; decisions of the Federal Reserve Board or its staff regarding Black River or its application to the Federal Reserve Board; other applications to the Federal Reserve Board that may be made by Black River or others; the availability of shares of the Company or other entities for purchase by Black River at prices deemed suitable by Black River; the effect of federal or state law on purchases of shares of the Company by Black River; 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; and other factors, including risk factors, referred to from time to time in filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.