Community Shores Bank Corp. in Muskegon, Mich., has raised about $5.3 million and has been released from an enforcement action.
The $182 million-asset company sold about 1.5 million shares of its common stock through a rights offering, raising about $3.8 million. It also issued about 571,000 shares through a private placement, raising about $1.5 million.
Community Shores plans to use the proceeds to repay overdue and deferred interest on its trust preferred securities and to make a $3.7 million capital contribution to its bank. Funds left over will be used for general working capital purposes.
Separately, Community Shores said the Federal Deposit Insurance Corp. and the Michigan Department of Insurance and Financial Services terminated the bank's September 2010 consent order. Community Shores remains subject to a December 2010 written agreement issued by the Federal Reserve Board.
Dickinson Wright was legal counsel to Community Shores on the stock offering. The company did not use an underwriter on the offering.