<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934
    For the quarterly period ended March 31, 2000

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934
    For the transition period from         to         .

                          Commission File No. 333-63769

                        COMMUNITY SHORES BANK CORPORATION
        (Exact name of small business issuer as specified in its charter)

            Michigan                                  38-3423227
(State or other jurisdiction of               (IRS Employer Identification No.)
incorporation or organization)

                 1030 W. NORTON AVENUE, MUSKEGON, MICHIGAN 49441
                    (Address of principal executive offices)

                                 (616) 780-1800
                           (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
                                   Yes [X]  No [ ]

At May 1, 2000, 1,170,000 shares of Common Stock of the issuer were
outstanding


Transitional Small Business Disclosure Format:
                                   Yes [ ]  No [X]





<PAGE>   2


                     Community Shores Bank Corporation Index
<TABLE>
<CAPTION>



PART 1.       Financial Information                                                                      Page No.
                                                                                                         --------
<S>           <C>                                                                                        <C>
              Item 1.  Financial Statements..........................................................        1

              Item 2.  Management's Discussion and Analysis or Plan of Operation.....................       15


PART II.      Other Information

              Item 1.  Legal Proceedings.............................................................       19

              Item 2.  Changes in Securities.........................................................       19

              Item 3.  Defaults upon Senior Securities...............................................       20

              Item 4.  Submission of Matters to a Vote of Security Holders...........................       20

              Item 5.  Other Information.............................................................       20

              Item 6.  Exhibits and Reports on Form 8-K..............................................       20

              Signatures.............................................................................       21

</TABLE>



<PAGE>   3



PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                        COMMUNITY SHORES BANK CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                        March 31,                 December 31,
                                                                          2000                       1999
                                                               -----------------------     -----------------------
                                                                    (Unaudited)
<S>                                                            <C>                         <C>
ASSETS
Cash and due from financial institutions                       $            2,534,388      $            1,964,847
Interest-bearing deposits in other financial institutions                      23,843                       1,727
Federal funds sold                                                            300,000                           0
                                                               -----------------------     -----------------------
     Total cash and cash equivalents                                        2,858,231                   1,966,574

Securities available for sale                                              18,964,829
                                                                                                       10,767,804
Loans, net                                                                 67,323,813                  55,946,379
Federal Home Loan Bank stock                                                  138,200
                                                                                                          138,200
Premises and equipment, net                                                 3,411,860                   3,469,953
Accrued interest receivable                                                   533,165                     326,484
Other assets                                                                  130,676                      83,533
                                                               -----------------------     -----------------------
     Total assets                                              $           93,360,774      $           72,698,927
                                                               =======================     =======================

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
     Non interest-bearing                                      $            5,684,121      $            4,074,635
     Interest-bearing                                                      62,880,885                  51,901,442
                                                               -----------------------     -----------------------
          Total deposits                                                   68,565,006                  55,976,077

Federal funds purchased, repurchase agreements
    and Federal Home Loan Bank advances                                    16,315,900                   6,934,491
Accrued expenses and other liabilities                                        260,616                   1,253,597
                                                               -----------------------     -----------------------
     Total liabilities                                                     85,141,522                  64,164,165

Shareholders' Equity
     Preferred Stock, no par value: no shares                                       0                           0
       authorized and none issued
     Common Stock, no par value: 9,000,000                                 10,871,211                  10,871,211
       shares authorized and 1,170,000 shares
       outstanding
     Retained deficit                                                      (2,495,115)                 (2,240,334)
     Accumulated other comprehensive loss                                    (156,844)                    (96,115)
                                                               -----------------------     -----------------------

     Total shareholders' equity                                             8,219,252                   8,534,762
                                                               -----------------------     -----------------------
     Total liabilities and shareholders' equity                $           93,360,774     $            72,698,927
                                                               =======================     =======================
</TABLE>



     See accompanying notes to condensed consolidated financial statements.


<PAGE>   4

                        COMMUNITY SHORES BANK CORPORATION
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                     Three Months                  Three Months
                                                                        Ended                         Ended
                                                                    March 31, 2000                March 31, 1999
                                                               -------------------------     -------------------------
<S>                                                            <C>                           <C>
Interest and dividend income
Loans, including fees                                          $              1,363,035       $                96,720
Securities, taxable                                                             229,936                        67,864
Federal funds sold, FHLB dividends and other income                              24,087                        56,720
                                                               -------------------------     -------------------------
     Total interest income                                                    1,617,058                       221,304
Interest expense
Deposits                                                                        841,875                        69,556
Repurchase agreements, federal funds purchased, and
 Federal Home Loan Bank advances                                                134,499                         3,235
                                                               -------------------------     -------------------------
     Total interest expense                                                     976,374                        72,791

NET INTEREST INCOME                                                             640,684                       148,513
Provision for loan losses                                                       172,000                       244,400
                                                               -------------------------     -------------------------

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                             468,684                       (95,887)
Noninterest income
Service charge income                                                            44,964                         2,216
Mortgage referral income                                                         15,816                         4,787
Other                                                                            18,079                           939
                                                               -------------------------     -------------------------
     Total noninterest income                                                    78,859                         7,942

Noninterest expense
Salaries and employee benefits                                                  467,435                       267,520
Occupancy                                                                        51,454                        45,210
Furniture and equipment                                                          92,227                        46,830
Advertising                                                                      20,637                        15,958
Data Processing                                                                  29,014                         7,000
Professional services                                                            65,027                        47,740
Telephone                                                                        10,639                         7,554
Supplies                                                                         19,232                        37,554
Directors and officers insurance                                                  3,061                             0
Other                                                                            43,598                        34,160
                                                               -------------------------     -------------------------
     Total noninterest expense                                                  802,324                       509,526

LOSS BEFORE FEDERAL INCOME TAX                                                 (254,781)                     (597,471)
Federal income tax expense                                                            0                             0
                                                               -------------------------     -------------------------
NET LOSS                                                       $               (254,781)     $               (597,471)
                                                               =========================     =========================

Basic and diluted loss per share                               $                  (0.22)     $                  (0.52)
                                                               =========================     =========================
Weighted average shares outstanding                            $              1,170,000      $              1,154,444
                                                               =========================     =========================
</TABLE>




     See accompanying notes to condensed consolidated financial statements.
<PAGE>   5

                        COMMUNITY SHORES BANK CORPORATION
                       CONDENSED CONSOLIDATED STATEMENT OF
                         CHANGES IN SHAREHOLDERS' EQUITY
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                              Accumulated
                                                                                                 Other             Total
                                                               Common         Retained       Comprehensive     Shareholders'
                                                Shares          Stock          Deficit       Income (Loss)        Equity
                                             ---------------------------------------------------------------------------------
<S>                                          <C>              <C>            <C>            <C>                <C>
Balance at January 1, 1999                       1,100,000    $ 10,227,604    $  (438,552)   $             0  $    9,789,052

Comprehensive loss:
     Net loss                                                                    (597,471)                          (597,471)
     Unrealized loss on
     securities available for sale                                                                    (3,108)         (3,108)
                                                                                                              ----------------
          Total comprehensive loss                                                                                  (600,579)

Common stock sale, January 21, 1999                 70,000         643,607                                           643,607
                                             ---------------------------------------------------------------------------------

Balance, March 31, 1999                          1,170,000    $ 10,871,211    $(1,036,023)   $        (3,108) $    9,832,080
                                                              ================================================================


Balance, January 1, 2000                         1,170,000    $ 10,871,211    $(2,240,334)   $       (96,115) $    8,534,762

Comprehensive loss:
     Net loss                                                                    (254,781)                          (254,781)
     Change in unrealized loss on
     securities available for sale                                                                   (60,729)        (60,729)
                                                                                                              ----------------
          Total comprehensive loss                                                                                  (315,510)
                                             ---------------------------------------------------------------------------------

Balance, March 31, 2000                          1,170,000    $ 10,871,211    $(2,495,115)   $      (156,844) $    8,219,252
                                             =================================================================================
</TABLE>


     See accompanying notes to condensed consolidated financial statements.
<PAGE>   6






                        COMMUNITY SHORES BANK CORPORATION
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                   Three months ended      Three months ended
                                                                     March 31, 2000          March 31, 1999
                                                             ------------------------------------------------
<S>                                                          <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net Loss                                                $             (254,781)    $         (597,471)
     Adjustments to reconcile net loss to net cash
        from operating activities
          Provision for loan losses
                                                                             172,000               244,400
          Depreciation and amortization                                       85,768                60,305
          Net accretion of securities                                        (21,838)              (21,179)
          Net change in:
               Accrued interest receivable                                  (206,681)              (89,040)
               Other assets                                                  (47,143)             (100,848)
               Accrued interest payable and other liabilities               (992,981)               14,762
                                                             ------------------------------------------------
                   Net cash from operating activities                     (1,265,656)             (489,071)
CASH FLOWS FROM INVESTING ACTIVITIES
     Activity in available-for-sale securities:
          Sales                                                                    0             2,000,000
          Maturities, prepayments and cals                                    29,295            14,500,000
          Purchases                                                       (8,265,211)          (24,212,342)
     Loan originations and payments, net                                 (11,549,434)          (16,362,933)
     Additions to premises and equipment                                     (27,675)             (259,552)
                                                             ------------------------------------------------
               Net cash from investing activities                        (19,813,025)          (24,334,827)
CASH FLOWS FROM FINANCING ACTIVITIES
     Net change in deposits                                               12,588,929            20,246,390
     Net change in federal funds purchased and
          repurchase agreements                                            7,881,409             1,031,524
     Net change in Federal Home Loan Bank advances                         1,500,000                     0
     Net proceeds from stock offering                                                              643,607
                                                             ------------------------------------------------
               Net cash from financing activities                         21,970,338            21,921,521

Net change in cash and cash equivalents                                      891,657            (2,902,377)
Beginning cash and cash equivalents                                        1,966,574             8,612,377
                                                             ------------------------------------------------

ENDING CASH AND CASH EQUIVALENTS                             $             2,858,231    $        5,710,000
                                                             ================================================
Supplemental cash flow information:
     Cash paid during the period for interest                $               613,752    $           47,431
</TABLE>



     See accompanying notes to condensed consolidated financial statements.

<PAGE>   7


                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.       BASIS OF PRESENTATION:

         The unaudited financial statements for the three months ended March 31,
         2000 include the condensed consolidated results of operations of
         Community Shores Bank Corporation ("Company") and its wholly-owned
         subsidiary, Community Shores Bank ("Bank"). These condensed
         consolidated financial statements have been prepared in accordance with
         the instructions for Form 10-QSB and Item 310(b) of Regulation S-B and
         do not include all disclosures required by generally accepted
         accounting principles for a complete presentation of the Company's
         financial condition and results of operations. In the opinion of
         management, the information reflects all adjustments (consisting only
         of normal recurring adjustments) which are necessary in order to make
         the financial statements not misleading and for a fair representation
         of the results of operations for such periods. The results for the
         period ended March 31, 2000 should not be considered as indicative of
         results for a full year. For further information, refer to the
         condensed consolidated financial statements and footnotes included in
         the Company's annual report on Form 10-KSB for the period ended
         December 31, 1999.


2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Securities: Securities are classified as held to maturity and carried
         at amortized cost when management has the positive intent and ability
         to hold them to maturity. Securities are classified as available for
         sale when they might be sold before maturity. Securities available for
         sale are carried at fair value, with unrealized holding gains and
         losses reported in other comprehensive income. Trading securities are
         carried at fair value, with changes in unrealized holding gains and
         losses included in income. Other securities such as Federal Home Loan
         Bank stock are carried at cost.

         Interest income includes amortization of purchase premium or discount.
         Gains and losses on sales are based on the amortized cost of the
         security sold. Securities are written down to fair value when a decline
         in fair value is not temporary.

         Loans: Loans are reported at the principal balance outstanding, net of
         unearned interest, deferred loan fees and costs, and an allowance for
         loan losses. Loans held for sale are reported at the lower of cost or
         market, on an aggregate basis.

         Interest income is reported on the interest method and includes
         amortization of net deferred loan fees and costs over the loan term.
         Interest income is not reported when full loan repayment is in doubt,
         typically when the loan is impaired or payments are past due over 90
         days (180 days for residential mortgages). Payments received on such
         loans are reported as principal reductions.






<PAGE>   8

                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


         Allowance for Loan Losses: The allowance for loan losses is a valuation
         allowance for probable credit losses, increased by the provision for
         loan losses and decreased by charge-offs less recoveries. Management
         estimates the allowance balance required using past loan loss
         experience, known and inherent risks in the nature and volume of the
         portfolio, information about specific borrower situations and estimated
         collateral values, economic conditions and other factors. Allocations
         of the allowance may be made for specific loans, but the entire
         allowance is available for any loan that, in management's judgement,
         should be charged-off.

         A loan is impaired when full payment under the loan terms is not
         expected. Impairment is evaluated in total for smaller-balance loans of
         similar nature such as residential mortgage, consumer, and credit card
         loans, and on an individual loan basis for other loans. If a loan is
         impaired, a portion of the allowance is allocated so that the loan is
         reported, net, at the present value of estimated future cash flows
         using the loan's existing rate or at the fair value of collateral if
         repayment is expected solely from the collateral.

         Repurchase Agreements: Substantially all repurchase agreement
         liabilities represent amounts advanced by various customers. Securities
         are pledged to cover these liabilities, which are not covered by
         federal deposit insurance.

         Comprehensive Income (Loss): Comprehensive income (loss) consists of
         net income and other comprehensive income. Other comprehensive income
         includes unrealized gains and losses on securities available for sale
         which are also recognized as separate components of equity.

         Industry Segment: Internal financial information is primarily reported
         and aggregated in one line of business, banking.







<PAGE>   9








                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


3.       SECURITIES AVAILABLE FOR SALE


The following table represents the securities held in the Company's portfolio at
the end of the first quarter:
<TABLE>
<CAPTION>

                                                                          Gross          Gross
                                                        Amortized       Unrealized     Unrealized           Fair
                                                          Cost            Gains         Losses             Value             %
                                            ------------------------------------------------------------------------------------
<S>                                         <C>                      <C>           <C>             <C>
US Treasury                                 $           1,496,379    $         0   $       (590)    $     1,495,789         7.9%
US Government Agency                                   15,709,044          3,601       (106,426)         15,606,219        82.3
Mortgaged-backed securities,
   guaranteed by GNMA                                   1,916,250              0        (53,429)          1,862,821         9.8
                                            -----------------------------------------------------------------------------------
Total securities at March 31, 2000          $          19,121,673    $     3,601   $   (160,445)    $    18,964,829       100.0%
                                            ===================================================================================
</TABLE>


Securities available for sale increased $8,197,025 during the first quarter of
2000. Below is the schedule of maturities for investments held at March 31,
2000:


<TABLE>
<CAPTION>
                                                  Available for sale
                                              Amortized            Fair
                                                Cost              Value
                                            -------------------------------
<S>                                         <C>               <C>
Due in one year or less                     $ 2,991,253         $ 2,982,664
Due from one to five years                   14,214,170          14,119,344
Mortgaged-backed                              1,916,250           1,862,821
                                            -------------------------------

                                            $19,121,673         $18,964,829
                                            ===============================
</TABLE>






<PAGE>   10








                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


4.       LOANS


Total loans made to customers totaled $11,549,434 since December 31, 1999. The
components of the outstanding balances and their percentage of the total
portfolio for both period ends were as follows:

<TABLE>
<CAPTION>

                                            March 31, 2000                  December 31, 1999
                                             Balance         %               Balance        %
                                         -------------------------       ------------------------
<S>                                      <C>                <C>          <C>               <C>
Commercial, financial and other          $     56,089,338     82.1 %     $     47,570,725    83.8 %
Real estate-construction                        1,561,452      2.3              1,445,789     2.5
Real estate-mortgages                           2,067,827      3.0              1,957,393     3.4
Installment loans to individuals                8,629,196     12.6              5,824,472    10.3
                                         -------------------------       ------------------------
                                               68,347,813      100%            56,798,379     100%
                                                              =====                          =====
Less allowance for loan losses
                                                1,024,000                         852,000
                                         ----------------                ----------------
                                         $     67,323,813                 $    55,946,379
                                         ================                ================
</TABLE>





5.       ALLOWANCE FOR LOAN LOSSES


The following is a summary of the activity in the allowance for loan losses
account since December 31, 1999:

<TABLE>
<CAPTION>

<S>                                                        <C>
Balance at January 1, 2000                                 $         852,000

Charge-offs                                                                0
Recoveries                                                                 0
Provision charged against operating expense                          172,000
                                                           ------------------

Balance at March 31, 2000                                  $       1,024,000
                                                           ==================
</TABLE>



<PAGE>   11










                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


The allocation of the allowance at March 31, 2000 was as follows:


<TABLE>
<CAPTION>

                                                                                       Percent of
                                                                                        allowance
Balance at End of Period Applicable to:                                                 related to
                                                                Amount                loan category
                                                           ------------------  -------------------------
<S>                                                        <C>                 <C>
Commercial                                                 $          915,470                       89.4 %
Residential real estate                                                43,027                        4.2
Installment                                                            65,502                        6.4
Unallocated                                                                 0                        0.0
                                                           ------------------  -------------------------

Total loans                                                $        1,024,000                      100.0 %
                                                           ==================  =========================
</TABLE>





Management has determined this allocation is appropriate based on their estimate
of losses inherent in the various categories within the loan portfolio.



6.       PREMISES AND EQUIPMENT - NET

There have been no significant capital expenditures since year-end as such
premises and equipment were comprised of the following at both period ends:

<TABLE>
<CAPTION>

                                                 March 31,            December 31,
                                                    2000                  1999
                                             -------------------    ------------------
<S>                                          <C>                    <C>
Land and land improvements                   $          673,240     $         673,240
Building and building improvements                    1,634,921             1,715,842
Furniture, fixtures and equipment                     1,392,397             1,363,014
                                             -----------------------------------------
                                                      3,700,558             3,752,096
Less accumulated depreciation                           288,698               282,143
                                             -------------------    ------------------
                                             $        3,411,860     $       3,469,953
                                             ===================    ==================
</TABLE>


Depreciation expense for the first quarter of 2000 was $89,482. The same expense
for the first quarter of 1999 amounted to $60,305.

<PAGE>   12


                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


7.       DEPOSITS


Deposit balances increased $12,588,929 since December 31, 1999. The components
of the outstanding balances and their percentage of the total portfolio for both
period ends were as follows:

<TABLE>
<CAPTION>

                                March 31, 2000                   December 31, 1999
                                   Balance        %               Balance        %
                               ------------------------       ------------------------
<S>                            <C>                            <C>
Noninterest-bearing
     Demand                    $     5,684,121      8.3 %     $       4,074,635    7.3 %
Interest-bearing
     Checking                        5,651,033      8.2               4,662,155    8.3
     Money Market                    5,879,071      8.6               3,068,971    5.5
     Savings                           702,417      1.0                 565,741    1.0
     Time, under $100,000           26,819,209     39.1              21,084,562   37.7
     Time, over $100,000            23,829,155     34.8              22,520,013   40.2
                               ------------------------       ------------------------

Total Deposits                 $    68,565,006    100.0 %     $      55,976,077  100.0 %
                               ========================       ========================
</TABLE>





8.       BORROWINGS


At March 31, 2000, the Bank's borrowings were made up of repurchase agreements
and a Federal Home Loan Bank advance. As such the first quarter information was
as follows:

<TABLE>
<CAPTION>
                                                         Repurchase                FHLB
                                                         Agreements              Advances
                                                   -------------------   ---------------------
<S>                                                <C>                   <C>
Outstanding balance                                $      14,815,900     $         1,500,000
Average interest rate                                           4.87%                   5.99%

Average balance                                    $      10,132,857     $           197,802
Average interest rate                                           4.92%                   5.99%

Maximum outstanding at any month end               $      14,815,900     $         1,500,000
</TABLE>



<PAGE>   13




                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



9.       INTEREST RATE SENSITIVITY

Asset liability management aids the Company in achieving reasonable and
predictable earnings and liquidity while maintaining a balance between interest
earning assets and interest bearing liabilities. Liquidity management involves
the ability to meet the cash flow requirements of the Company's customers. These
customers may be either borrowers with credit needs or depositors wanting to
withdraw funds. Management of interest rate sensitivity attempts to avoid widely
varying net interest margins and achieve consistent net interest income through
periods of changing interest rates.

         Interest rate sensitivity varies with different types of earning assets
and interest bearing liabilities. Overnight investments, on which rates change
daily, and loans tied to the prime rate, differ considerably from long term
investment securities and fixed rate loans. Time deposits over $100,000 and
money market accounts are more interest sensitive than regular savings accounts.
Comparison of the repricing intervals of interest earning assets to interest
bearing liabilities is a measure of interest sensitivity gap. Balancing this gap
is a continual challenge in a changing rate environment. The Company uses a
sophisticated computer program to perform analysis of interest rate risk, assist
with asset liability management, and model and measure interest rate
sensitivity. Details of the gap at March 31, 2000 were:

<TABLE>
<CAPTION>


                                                                      Interest rate sensitivity period
                                                  Within          Three to         One to          After
                                                  three            twelve           five            five
                                                  months           months           years          years          Total
                                             --------------------------------------------------------------------------------
<S>                                          <C>                <C>             <C>             <C>             <C>
Earning assets
   Interest-bearing deposits
        in other financial institutions      $         23,843   $            0  $            0  $           0   $     23,843
   Securities available for sale                      500,250        2,482,415      14,119,344      1,862,820     18,964,829
   Loans                                           20,701,475        2,114,548      37,815,871      7,715,919     68,347,813
                                             --------------------------------------------------------------------------------
                                                   21,225,568        4,596,963      51,935,215      9,578,739     87,336,485
Interest-bearing liabilities
   Savings and checking                            12,232,521                0               0              0     12,232,521
   Time deposits< $100,000                          7,791,499       14,739,692       4,288,018              0     26,819,209
   Time deposits>$100,000                          13,246,813       10,275,029         307,313              0     23,829,155
   Repurchase agreements and
        Federal Home Loan Bank Advances            14,815,900                0               0      1,500,000     16,315,900
                                             --------------------------------------------------------------------------------
                                                   48,086,733       25,014,721       4,595,331      1,500,000     79,196,785
Net asset (liability) repricing gap          $    (26,861,166)   $ (20,417,758)  $  47,339,884  $   8,078,739   $  8,139,700
                                             ================================================================================
Cumulative net asset (liability)
        repricing gap                        $    (26,861,166)   $ (47,278,924)  $      60,960  $   8,139,699
                                             =================================================================
</TABLE>



<PAGE>   14




                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


10.      EMPLOYEE BENEFIT PLANS


The Company established a 401(k) plan effective January 1, 1999, covering
substantially all its employees. The Company's matching 401(k) contribution
charged to expense as of March 31, 2000 was $14,098. The total for the same
quarter in 1999 was $10,113. The percent of the Company's matching contributions
to the 401(k) is currently 4.50% and has not changed since its approval by the
Board of Directors in a meeting on January 26, 1999.


11.      COMMITMENTS AND OFF-BALANCE-SHEET RISK


Some financial instruments are used to meet financing needs and to reduce
exposure to interest rate changes. These financial instruments include
commitments to extend credit and standby letters of credit. These involve, to
varying degrees, credit and interest-rate risk in excess of the amount reported
in the financial statements.

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the commitment, and
generally have fixed expiration dates. Standby letters of credit are conditional
commitments to guarantee a customer's performance to a third party. Exposure to
credit loss if the other party does not perform is represented by the
contractual amount for commitments to extend credit and standby letters of
credit. Collateral or other security is normally not obtained for these
financial instruments prior to their use, and many of the commitments are
expected to expire without being used.

A summary of the notional and contractual amounts of outstanding financing
instruments with off-balance-sheet risk for the periods March 31, 2000 and
December 31, 1999 follows:

<TABLE>
<CAPTION>

                                                      March 31,          December 31,
                                                        2000                1999
                                                 -----------------   ------------------
<S>                                              <C>                 <C>
Letters of credit                                $         250,000   $          278,000
Commercial unused lines of credit                       21,328,000           22,513,000
Consumer unused lines of credit                          2,133,000            1,570,000
Residential construction commitments                       410,000              805,000
</TABLE>


Commitments to make loans generally terminate one year or less from the date of
commitment and may require a fee. Since many of the above commitments expire
without being used, the above amounts do not necessarily represent future cash
commitments. No losses are anticipated as a result of these transactions.

<PAGE>   15


                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



12.      REGULATORY MATTERS


The Company and Bank are subject to regulatory capital requirements administered
by the federal banking agencies. Capital adequacy guidelines and prompt
corrective action regulations involve quantitative measures of assets,
liabilities, and certain off-balance-sheet items calculated under regulatory
accounting practices. Capital amounts and classifications are also subject to
qualitative judgments by regulators about components, risk weightings, and other
factors, and the regulators can lower classifications in certain cases. Failure
to meet various capital requirements can initiate regulatory action that could
have a direct material effect on the financial statements.

The prompt corrective action regulations provide five classifications, including
well capitalized, adequately capitalized, undercapitalized, significantly
undercapitalized, and critically undercapitalized, although these terms are not
used to represent overall financial condition. If adequately capitalized,
regulator approval is required to accept brokered deposits. If undercapitalized,
capital distributions are limited, as is asset growth and expansion, and plans
for capital restoration are required.

<TABLE>
<CAPTION>

                              Capital to risk weighted
                                      assets
                              -----------------------               Tier 1 Capital
                                 Total        Tier 1               to average assets
                              -----------   ---------            ---------------------
<S>                           <C>           <C>                  <C>
Well capitalized                       10 %         6 %                   5 %
Adequately capitalized                  8           4                     4
Undercapitalized                        6           3                     3
</TABLE>



<PAGE>   16




                        COMMUNITY SHORES BANK CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



Actual capital levels (in thousands) and minimum required levels at March 31,
2000 for the Company and Bank were:

<TABLE>
<CAPTION>


                                   Actual              Adequately Capitalized        Well Capitalized
                          -------------------------    ----------------------    ----------------------
                               Amount       Ratio          Amount     Ratio          Amount     Ratio
                          -------------------------    ----------------------    ----------------------
March 31, 2000
------------------------
<S>                      <C>                           <C>                       <C>
Total capital (to risk-
   weighted assets)
      Consolidated        $      9,349,041    12.02 %  $     6,222,763   8.00 %  $     7,778,454  10.00 %
      Bank                       8,733,088    11.23          6,222,763   8.00          7,778,454  10.00

Tier 1 capital (to risk-
   weighted assets)
      Consolidated               8,376,096    10.77          3,111,382   4.00          4,667,072   6.00
      Bank                       7,760,143     9.98          3,111,382   4.00          4,667,072   6.00

Tier 1 capital (to
   average assets)
      Consolidated               8,376,096    10.03          3,340,038   4.00          4,175,048   5.00
      Bank                       7,760,143     9.27          3,347,787   4.00          4,184,734   5.00
</TABLE>




The Company and the Bank were in the well capitalized category at March 31,
2000.

<PAGE>   17


ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS


         The discussion below details the financial results of the Company and
its wholly owned subsidiary, the Bank, through March 31, 2000 and is separated
into two parts which are labeled, Financial Condition and Results of Operations.
The Financial Condition compares the balance sheets at March 31, 2000 and
December 31, 1999. The Results of Operations compares the three months ended
March 31, 2000 to the three month period ended March 31, 1999. Both parts should
be read in conjunction with the interim consolidated condensed financial
statements and footnotes included in Item 1 of this Form 10-QSB.

         This discussion and analysis of financial condition and results of
operations, and other sections of the 10-QSB contains forward-looking statements
that are based on management's beliefs, assumptions, current expectations,
estimates and projections about the financial services industry, the economy,
and about the Company and the Bank. Words such as "anticipates", "believes",
"estimates", "expects", "forecasts", "intends", "is likely", "plans",
"projects", variations of such words and similar expressions are intended to
identify such forward-looking statements. These forward-looking statements are
intended to be covered by the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees of future
performance and involve certain risks, uncertainties and assumptions ("Future
Factors") that are difficult to predict with regard to timing, extent,
likelihood and degree of occurrence. The Company undertakes no obligation to
update, amend, or clarify forward looking statements, whether as a result of new
information, future events (whether anticipated or unanticipated), or otherwise.

         Future Factors include 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. These are representative of the Future
Factors that could cause a difference between an ultimate actual outcome and a
preceding forward-looking statement.


FINANCIAL CONDITION

         Total assets increased by $20,661,847 to $93,360,774 at March 31, 2000
from $72,698,927 at December 31, 1999. This is a 28% increase in assets during
the first quarter of 2000. Growth is mostly attributable to commercial loan
volume and security purchases. Management continues to focus on small- to
medium-sized business customers, the original strategy since opening in January
1999. Next quarter, the Company anticipates continued growth but does not
believe that the rate of increase will be equivalent to that experienced in the
first three months of 2000.


<PAGE>   18
         Cash and cash equivalents increased by $891,657 to $2,858,231 at March
31, 2000 from $1,966,574 at December 31, 1999. This increase was a result of
federal funds being sold at March 31, 2000 and higher balances on deposit in our
correspondent bank accounts. As a result of the rapid growth since the
commencement of operations, management utilized some of the cash at the holding
company to infuse an additional $425,000 of capital to the Bank to ensure that
regulatory compliance was met as of quarter end. Management expects additional
capital infusions will be needed to continue compliance with these regulatory
requirements. Currently a strategy is being formulated which will allow the
Company to borrow money for future Bank capital infusions. At this time, the
Company has not borrowed any money nor has it entered into any agreement to
borrow money.

         Securities available for sale increased $8,197,025 during the first
quarter of 2000. Security purchases were driven by growth in repurchase
agreements. A repurchase agreement is not considered a deposit by the FDIC and
is not FDIC insured. The liability is treated more like a borrowing of the Bank.
To secure the borrowing (repurchase agreement) balances held by customers are
typically collateralized by high quality government securities held within the
Bank's security portfolio. At the end of 1999, there were few unpledged
securities in the Bank's portfolio which required us to purchase additional
Treasuries and Agencies to fulfill the collateralization requirement.

         Total loans climbed to $68,347,813 at March 31, 2000 from $56,798,379
at December 31, 1999. Of the $11,549,434 increase experienced, 74% occurred in
the commercial loan portfolio. The "wholesale" banking focus used throughout
1999 is still thriving during the first three months of 2000. Presently, the
commercial category of loans comprises 82% of the Bank's total loan portfolio.
There are five experienced commercial lenders on staff devoted to pursuing and
originating these types of loans. Significant growth was experienced on the
"retail" lending side. Installment loans increased $2,804,724, or 48%, over the
balance reported at December 31, 1999. A large portion of this growth was the
result of new business in indirect automobile loans and the financing of secured
leases. Strength in home equity financing also continued during the quarter.
Overall, the growth in total loans exceeded expectations however management
anticipates the rate of increase to slow during the remaining quarters of 2000.
The loan maturities and rate sensitivity of the loan portfolio at March 31, 2000
have been included below:

<TABLE>
<CAPTION>

                                           Within         Three to         One to          After
                                            three          twelve           five            five
                                           months          months           years          years           Total
                                    -------------------------------------------------------------------------------
<S>                                 <C>                 <C>             <C>             <C>            <C>
Commercial, financial and other          $5,352,753     $10,527,627     $33,632,642     $6,576,317     $56,089,338
Real estate-construction                    300,795       1,260,657               0              0       1,561,452
Real estate-mortgages                             0               0         187,339      1,880,488       2,067,827
Installment loans to individuals            246,951         317,992       5,015,713      3,048,540       8,629,196
                                    -------------------------------------------------------------------------------
                                         $5,900,499     $12,106,276     $38,835,693    $11,505,345     $68,347,813
                                    ===============================================================================

Loans at fixed rates                        711,386       1,968,199      36,561,046      7,346,113     $46,586,744
Loans at variable rates                   5,189,113      10,138,077       2,274,647      4,159,232      21,761,069
                                    -------------------------------------------------------------------------------
                                         $5,900,499     $12,106,276     $38,835,693    $11,505,345     $68,347,813
                                    -------------------------------------------------------------------------------
</TABLE>


         At March 31, 2000, the allowance totaled $1,024,000 or approximately
1.5% of gross loans booked since commencing operations. Management has
determined this is an appropriate level based on their estimate of losses
inherent in the loan portfolio from comparison with allowance levels maintained
by other institutions with similar, but seasoned loan portfolios. Management
will continue to monitor the allowance for loan loss levels and make necessary

<PAGE>   19

adjustments through the provision for loan losses. As such, an additional
$172,000 was provided for since December 31, 1999. At the end of March, loans
30-59 days past due totaled $538,142 up from $109,000 at December 31,1999.
Additionally, there was one loan for $5,075 that was past due more than 89 days
while there were none past due more than 89 days at December 31, 1999. The Bank
had a single non-accrual loan at March 31, 2000 for $2,148 while there were no
non-accrual loans at December 31, 1999. The Bank recorded no credit losses in
the first quarter of 2000.

         Bank premises and equipment decreased $58,093 to $3,411,860 at March
31, 2000 from $3,469,953 at December 31, 1999. Accumulated depreciation and
amortization represented $282,143 at year-end compared to $288,697 at March 31,
2000. No significant capital expenditures have been made in 2000. Fully
depreciated leasehold improvements of approximately $81,000 were written off the
books in January.

          Accrued interest receivable increased $206,681 or 63% over year-end
due to the large growth recorded in both securities available for sale and loans
during the first three months of 2000.

         Deposit balances were $68,565,006 at March 31, 2000 up from $55,976,077
at December 31, 1999. Management has chosen to fund a portion of the rapid loan
growth by obtaining brokered deposits. Brokered deposits are time deposits
obtained from depositors located outside of our market area and are placed with
the Bank by a deposit broker. Approximately 23% of the total deposits reported
were brokered at quarter end compared to 19% at year-end. The increase in
brokered deposits only accounts for 40% of the $12,588,929 increase in total
deposits during the first quarter. Significant growth was also recorded in money
market accounts, as well as regular and interest bearing demand deposit
accounts.

         Repurchase agreements increased $9,681,409 since December 31, 1999.
This represents an increase of 189% during the quarter. The growth is
attributable mainly to customers increasing their carrying balances from those
held at year-end (Y2K). Federal funds purchased were reduced to zero from a
balance of $1,800,000 at year-end however the Bank borrowed $1,500,000 from the
Federal Home Loan Bank on March 24, 2000. The interest rate on the advance is
fixed at 5.99% for three years. The Bank has the option to pay off the advance
at that time otherwise the note will convert to a floating rate for an
additional seven years. The final maturity is March 24, 2010.

         Accrued expenses and other liabilities decreased $992,981 to $260,616
at March 31, 2000 from $1,253,597 at December 31, 1999. Included in 1999's
year-end balance were two US Agency securities purchased on December 30, 1999
with a par value of $1,000,000. The securities settled on January 4, 2000.


RESULTS OF OPERATIONS

         It should be mentioned that comparative information on the results of
operations between the first quarter of 2000 and that of 1999 is not exactly
equal in the number of days of operation


<PAGE>   20

because the Bank did not open until January 18, 1999. As such, there were 91
days of operations in the first quarter of 2000 compared to 73 days in the
first quarter of 1999.

         The net loss of $254,781 at March 31, 2000 was less than half that
recorded for the same quarter in 1999. The loss for the first quarter of 1999
was $597,471 or $342,690 higher than that shown for the first quarter of 2000.
The Company's retained deficit was $2,495,115 at March 31, 2000 compared to
$2,240,334 at December 31, 1999. Although the retained deficit and net losses
were expected, the operating losses for the first quarter of 2000 were less than
management's internal, budgeted goal.

         The following table sets forth certain information relating to the
Company's consolidated average interest earning assets and interest-bearing
liabilities and reflects the average yield on assets and average cost of
liabilities for the period indicated. Such yields and costs are derived by
dividing income or expenses by the average daily balance of assets or
liabilities, respectively, for the period presented.

<TABLE>
<CAPTION>

                                                                        Three months ended March 31, 2000
                                                                     Average                                  Average
                                                                     balance                 Interest          rate
                                                          ----------------------------   ---------------    ----------
<S>                                                       <C>                            <C>                <C>
Assets
     Federal funds sold and interest-bearing
        deposits with banks                               $                  1,691,558   $        24,087          5.70 %
     Investment securities-available for sale                               14,013,124           229,936          6.56
     Loans                                                                  62,736,500         1,363,035          8.69
                                                          ----------------------------   ---------------    ----------
                                                                            78,441,182         1,617,058          8.25
     Other assets                                                            5,059,776
                                                           ----------------------------
                                                           $                83,500,958
                                                           ============================

Liabilities and Shareholders' Equity
     Interest-bearing deposits                             $                60,100,504   $       841,875          5.60
     Federal funds purchased, repurchase agreements
          and Federal Home Loan Bank advances                               10,797,693           134,499          4.98
                                                          ----------------------------   ---------------    ----------
                                                                            70,898,197           976,374          5.51
     Noninterest-bearing deposits                                            4,902,352
     Other liabilities                                                         348,692
     Shareholders' Equity                                                    7,351,717
                                                           ----------------------------
                                                           $                83,500,958
                                                           ============================
Net interest income                                                                      $       640,684
                                                                                         ===============
Net interest margin on earning assets                                                                             2.74 %
                                                                                                             ==========
</TABLE>


         The Net interest margin on average earning assets increased 1.60% since
March 31, 1999. Net interest income was $640,684 at March 31, 2000; an increase
of $492,171 over March 31, 1999. Interest income of $1,617,058 was generated
primarily from booking loans, purchasing securities, and selling federal funds.
This was 631% more than the interest income recorded in the first quarter of
1999. Interest expense incurred on deposits, repurchase agreements, federal
funds purchased and Federal Home Loan Bank advances totaled $976,374


<PAGE>   21

at quarter end which is an increase of $903,583 (1,241%) over the same expense
categories in 1999.


         The provision for loan losses was $172,000 at March 31, 2000 compared
to $244,400 at March 31, 1999. There was a $72,400 decrease in the provision
booked between the first quarter of 1999 and that of 2000. The allowance
continues to be maintained at 1.5% of gross loans outstanding. Management
believes that this ratio is prudent and justifiable but will continue to review
the reserve to ensure that it is aligned with loss experience. This ratio may be
increased or decreased in the future as management continues to monitor the loan
portfolio and actual loan loss experience.

         Non-interest income of $78,859 was recorded as of March 31, 2000.
Service charge income is a major contributor to the increase shown in this
category, representing 60% of the change from 1999's first quarter results to
the first quarter results for 2000. Management believes that the service charge
portion of non-interest income will continue to increase in future quarters due
to anticipated growth in the number of deposit accounts. Mortgage loan referral
fees also increased 230% over last years first quarter. Although this income
category continues to exceed management's expectations, it is difficult to
predict their future contributions to non-interest income because of their
dependence on interest rates which are subject to market forces.

Non-interest expenses were $802,324 which was an increase of 57% over the first
quarter of 1999. Salaries and benefits comprised 68% of the increase or
$199,915. There were an additional 6 full-time equivalent employees compared to
March 31, 1999. Furniture and equipment expenses increased 48% over last year.
Capital expenditures made throughout 1999 to establish the operational
foundation of the bank caused increased depreciation expense of $29,177 over the
same quarter in 1999. Operating expenses are expected to increase as result of
several technological initiatives being undertaken.



PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS


From time to time, the Company and the Bank may be involved in various legal
proceedings that are incidental to their business. In the opinion of management,
neither the Company nor the Bank is a party to any current legal proceedings
that are material to the financial condition of the Company or the Bank, either
individually or in the aggregate.


ITEM 2.  CHANGES IN SECURITIES

Not applicable.


<PAGE>   22



ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable.



ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.


ITEM 5.  OTHER INFORMATION

Not applicable.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K


(a)  Exhibits:


Exhibit No.                          EXHIBIT DESCRIPTION
-----------                          -------------------

    3.1             Articles of Incorporation are incorporated by reference to
                    exhibit 3.1 of the Company's Registration Statement on Form
                    SB-2 (Commission File No. 333-63769) that became effective
                    on December 17, 1998

    3.2             Bylaws of the Company are incorporated by reference to
                    exhibit 3.2 of the Company's Registration Statement on Form
                    SB-2 (Commission File No. 333-63769) that became effective
                    on December 17, 1998

    11              Statement re Computation of Per Share Earnings

    27              Financial Data Schedule

(b) Reports on Form 8-K.

    Not applicable.

<PAGE>   23
                                   SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on May 15, 2000.


                        COMMUNITY SHORES BANK CORPORATION



                        By:  /s/ Jose' A. Infante
                             ---------------------------------------------------
                        Jose' A. Infante
                        Chairman of the Board, President and Chief
                          Executive Officer (principal executive officer)





                        By:  /s/ Tracey A. Welsh
                             ---------------------------------------------------
                        Tracey A. Welsh
                        (principal financial and accounting officer)




<PAGE>   24



                                  EXHIBIT INDEX



Exhibit No.                  EXHIBIT DESCRIPTION
-----------                  -------------------

   3.1              Articles of Incorporation are incorporated by reference to
                    exhibit 3.1 of the Company's Registration Statement on Form
                    SB-2 (Commission File No. 333-63769) that became effective
                    on December 17, 1998.

   3.2              Bylaws of the Company are incorporated by reference to
                    exhibit 3.2 of the Company's Registration Statement on Form
                    SB-2 (Commission File No. 333-63769) that became effective
                    on December 17, 1998.

   11               Statement re Computation of Per Share Earnings.

   27               Financial Data Schedule.