Community Shores Bank subsidiary has reached an agreement with the FDIC and Office of Financial and Insurance Regulation (OFIR) for the State of Michigan regarding the issuance of a Consent Order, effective 2 September 2010.
Under other provisions, the bank has 90 days to adopt a funding plan to reduce reliance on wholesale deposits and implement a comprehensive strategic plan for future banking operations.
The bank must obtain prior approval from the FDIC and the OFIR for director or management changes and dividend payments.
Community Shores Bank president and CEO Heather Brolick said that the bank has been working closely with regulators over the past several quarters, and has already implemented many of the provisions included in the order.
“We are making good progress on others, especially asset quality, and anticipate that we will be able to meet those requirements as stipulated. The inflow of newly-identified problem assets has diminished sharply over the past two quarters, but until property valuations stabilize, we continue to add to reserves to support collateral shortfalls,” Brolick said.