UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): SEPTEMBER 17, 2008
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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 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On September 17, 2008, Community Shores Bank Corporation (the "Company")
entered into an Amendment to Loan Agreement (the "Amendment") with Fifth Third
Bank ("Fifth Third"), that was dated September 16, 2008. The Amendment amended
the terms of the Loan Agreement dated September 7, 2007 that had been in effect
between the Company and Fifth Third (the "2007 Agreement"). The 2007 Agreement
provided the Company with a $5 million line of credit that was scheduled to
expire approximately one year after it was executed. The Amendment extended the
$5 million line of credit through September 1, 2009.
In connection with the Amendment, and on the same date, the Company also
entered into a new Revolving Credit Note payable to Fifth Third that replaced
the note previously issued under the 2007 Agreement, and a Pledge Agreement with
Fifth Third. The new Revolving Credit Note provides for interest to be payable
quarterly until maturity at the rate of one percent above Fifth Third's prime
rate. Prior to the Amendment, the interest rate had been one percent below Fifth
Third's prime rate. The Pledge Agreement provides for the Company's pledge of
all of the stock of its banking subsidiary, Community Shores Bank, to secure the
repayment of the line of credit, and any other present or future obligations of
the Company to Fifth Third.
The Company continues to use the proceeds from the line of credit primarily
for general operating expenses of the Company and to contribute capital to its
subsidiary, Community Shores Bank.
At any time after the occurrence of an event of default under the line of
credit, Fifth Third may, among other options, declare any amounts outstanding
under the line of credit due and payable, decline to make new loans to the
Company, and exercise its remedies under the Pledge Agreement and other loan
documents.
A copy of the Amendment, new Revolving Credit Note and Pledge Agreement are
filed as Exhibit 10.1 to this report.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
Exhibit
Number Description
- ------- ----------------------------------------------------------------------
10.1 Amendment to Loan Agreement, Revolving Credit Note and Pledge
Agreement between Community Shores Bank Corporation and Fifth Third
Bank dated September 16, 2008.
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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
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Tracey A. Welsh
Senior Vice President,
Chief Financial Officer and
Treasurer
Date: September 23, 2008
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EXHIBIT INDEX
Exhibit
Number Description
- ------- ----------------------------------------------------------------------
10.1 Amendment to Loan Agreement, Revolving Credit Note and Pledge
Agreement between Community Shores Bank Corporation and Fifth Third
Bank dated September 16, 2008.
4