<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   ----------

                                   FORM 10-KSB

[X]  Annual report under Section 13 or 15(d) of the Securities Exchange Act of
     1934

     For the fiscal year ended December 31, 2005

                         Commission File No. 000-51166

                        COMMUNITY SHORES BANK CORPORATION
                 (Name of small business issuer in its charter)

<TABLE>
<S>                                            <C>
                 MICHIGAN
      (State or other jurisdiction of                      38-3423227
      incorporation or organization)           (IRS Employer Identification No.)
</TABLE>

<TABLE>
<S>                                                        <C>
1030 W. NORTON AVENUE, MUSKEGON, MICHIGAN                    49441
 (Address of principal executive offices)                  (zip code)
</TABLE>

                                 (231) 780-1800
                           (Issuer's telephone number)

       Securities registered under Section 12(b) of the Exchange Act: NONE
      Securities registered under Section 12(g) of the Exchange Act: _____

                                  COMMON STOCK
                                 Title of Class

     Check whether the issuer is not required to file reports pursuant to
Section 13 or 15(d) of the Exchange Act. [ ]

     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       NO   X
    -----    -----

     Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]

     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). YES       NO   X
                                                -----    -----

     Issuer's revenue for its most recent fiscal year was approximately
$14,801,000.

     The aggregate market value of voting stock of the registrant held by
nonaffiliates was approximately $19,497,000 as of February 28, 2006; based on
the average of the closing bid and ask prices ($13.57) on that date.

     As of March 15, 2006, 1,436,800 shares of Common Stock of the issuer were
outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

Parts I and II   Portions of 2005 Annual Report to the Shareholders of the
                 issuer.

Part III         Portions of the Proxy Statement of the issuer for its
                 May 11, 2006 Annual Meeting

Transitional Small Business Disclosure Format YES       NO   X
                                                  -----    -----

<PAGE>

                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS

GENERAL

Community Shores Bank Corporation ("the Company"), organized in 1998, is a
Michigan corporation and a bank holding company. The Company owns all of the
common stock of Community Shores Bank (the "Bank"). The Bank was organized and
commenced operations in January, 1999 as a Michigan chartered bank with
depository accounts insured by the FDIC to the extent permitted by law. The Bank
provides a full range of commercial and consumer banking services primarily in
the communities of Muskegon County and Northern Ottawa County. The Bank's
services include checking and savings accounts, certificates of deposit, safe
deposit boxes, courier service, and loans for commercial and consumer purposes.

The Bank formed Community Shores Mortgage Company (the "Mortgage Company") on
March 1, 2002. The Mortgage Company, a wholly owned subsidiary of the Bank,
originates both commercial and residential real estate loans. Most fixed rate
residential real estate loans originated are sold to a third party. Commercial
and residential real estate loans that are held in the Mortgage Company's
portfolio are serviced by the Bank pursuant to a servicing agreement.

On September 27, 2002, pursuant to Title I of the Gramm-Leach-Bliley Act, the
Company received regulatory approval to become a financial holding company.
After becoming a financial holding company the Company created Community Shores
Financial Services ("CS Financial Services"). Through April of 2005, CS
Financial Services held a 1.86% ownership in the Michigan Bankers Insurance
Center, LLC. On April 30, 2005, the Michigan Bankers Insurance Center, LLC
legally dissolved its partnership. Currently the only source of revenue that CS
Financial Services receives is referral fee income from a local insurance
agency, Lead Financial. Lead Financial offers amongst other things employer
sponsored benefit plans. CS Financial Services has the opportunity to earn a
referral fee for each sale of employer sponsored benefits that is transacted by
Lead Financial as a result of a referral made by CS Financial Services.

In December of 2004, the Company formed Community Shores Capital Trust I, a
Delaware business trust. The Trust is administered by a Delaware trust company,
and three individual administrative trustees who are employees and officers of
the Company. The Trust was established for the purpose of issuing and selling
its preferred securities and common securities and used the proceeds from the
sales of those securities to acquire subordinated debentures issued by the
Company. A majority of the net proceeds received by the Company was used to pay
down the outstanding balance on the Company's line of credit. The remaining
proceeds were used to contribute capital to the Bank as well as support the
general operating expenses of the Company including the debt service on the
Company's subordinated debentures. As of year-end 2005, the Company had total
consolidated assets of $222 million.

Significant events in 2005 included the Company achieving its fifth fully
profitable year of operations. For 2005, fully diluted earnings per share of the
Company were $.82. Year over year earnings per share increased 49%. The increase
is directly related to a higher net interest margin and a significant increase
in non interest income. The Bank's average internal prime lending rate increased
by 185 basis points since 2004, which helped improve the Company's net interest
margin by 48 basis points since 2004. In Muskegon County where the Bank's main
office is located, the Bank improved its deposit market share position to fourth
in 2005 compared to holding the fifth place position for the past few years.

The Company's main office is located at 1030 W. Norton Avenue, Muskegon,
Michigan, 49441 and its telephone number is (231) 780-1800.


                                        2

<PAGE>

PRODUCTS AND SERVICES

The Bank offers a broad range of deposit services, including checking accounts,
savings accounts and time deposits of various types. Transaction accounts and
time certificates are tailored to the principal market area at rates competitive
with those offered in the area. All qualified deposit accounts are insured by
the FDIC up to the maximum amount permitted by law. The Bank solicits these
accounts from individuals, businesses, schools, associations, churches,
nonprofit organizations, financial institutions and government authorities. The
Bank also uses alternative funding sources as needed, including advances from
the Federal Home Loan Bank and obtaining deposits through a deposit broker.
Additionally, the Bank makes available mutual funds and annuities, which are
non-insured, through an alliance with Sorrento Pacific. Discount brokerage
services are made available to our customers through Sorrento as well. The Bank
receives referral fees for customers that open a brokerage account and conduct
trades.

Real Estate Loans. The Mortgage Company originates residential mortgage loans,
which are generally long-term with either fixed or variable interest rates. The
Mortgage Company's general policy, which is subject to review by management due
to changing market and economic conditions and other factors, is to sell all
fixed rate residential real estate loans on a servicing released basis in the
secondary market, regardless of term or product. The Mortgage Company, based on
its lending guidelines, may periodically elect to underwrite and retain certain
mortgages in its portfolio. The Bank offers fixed rate home equity loans and
variable rate home equity lines of credit, which are usually retained in its
portfolio.

The retention of variable rate loans in the Bank's loan portfolio helps to
reduce the Bank's exposure to fluctuations in interest rates. However, such
loans generally pose credit risks different from the risks inherent in fixed
rate loans, primarily because as interest rates rise, the underlying payments
from the borrowers rise, thereby increasing the potential for default.

Personal Loans and Lines of Credit. The Bank makes personal loans and lines of
credit available to consumers for various purposes, such as the purchase of
automobiles, boats and other recreational vehicles, home improvements and
personal investments. The Bank's current policy is to retain substantially all
of these loans in its portfolio.

Commercial and Commercial Real Estate Loans. Commercial loans are made primarily
to small and mid-sized businesses. These loans are and will be both secured and
unsecured and are made available for general operating purposes, acquisition of
fixed assets including real estate, purchases of equipment and machinery,
financing of inventory and accounts receivable, as well as any other purposes
considered appropriate. Substantially all Commercial Real Estate Loan
originations have been executed by the Mortgage Company, since March of 2002.
The Bank and the Mortgage Company generally look to a borrower's business
operations as the principal source of repayment, but will also receive, when
appropriate, security interests in real estate and inventory, accounts
receivable and other personal property and/or personal guarantees.

Although the Bank takes a progressive and competitive approach to lending, it
stresses high quality in its loans. The Bank hires an independent company to
perform loan review, to help monitor asset quality of the Bank. Any past due
loans and identified problem loans are reviewed with the Board of Directors on a
regular basis.

Regulatory and supervisory loan-to-value limits are established pursuant to
Section 304 of the Federal Deposit Insurance Corporation Improvement Act of 1991
"FDICIA" for loans secured by, or used to build on or improve, real estate. The
Bank's internal limitations follow those limits and in certain cases are more
restrictive than those required by the regulators.

The Bank has established relationships with correspondent banks and other
independent financial institutions to provide other services requested by the
Bank's customers, including loan participations where the requested loan amounts
exceed the Bank's policies or legal lending limits.


                                        3

<PAGE>

COMPETITION

The Company's primary market area is Muskegon County and Northern Ottawa County.
Northern Ottawa County primarily consists of the cities of Grand Haven,
Ferrysburg, Spring Lake and the townships surrounding these areas. There are a
number of banks, thrift and credit union offices located in the Company's market
area. Most are branches of larger financial institutions and are not 100%
locally owned, with the exception of some credit unions. Competition with the
Company also comes from other areas such as finance companies, insurance
companies, mortgage companies, brokerage firms and other providers of financial
services. Most of the Company's competitors have been in business a number of
years longer than the Company and, for the most part, have established customer
bases. The Company competes with these older institutions, through its ability
to provide quality customer service, along with competitive products and
services.

EFFECT OF GOVERNMENT MONETARY POLICIES

The earnings of the Company are affected by domestic economic conditions and the
monetary and fiscal policies of the United States government, its agencies, and
the Federal Reserve Board. The Federal Reserve Board's monetary policies have
had, and will likely continue to have, an important impact on the operating
results of commercial banks through its power to implement national monetary
policy in order to, among other things, curb inflation, maintain employment, and
mitigate economic recession. The policies of the Federal Reserve Board have a
major effect upon the levels of bank loans, investments and deposits through its
open market operations in United States government securities, and through its
regulation of, among other things, the discount rate on borrowings of member
banks and the reserve requirements against member bank deposits. It is not
possible to predict the nature and impact of future changes in monetary and
fiscal policies.

REGULATION AND SUPERVISION

As a bank holding company under the Bank Holding Company Act, the Company is
required to file an annual report with the Federal Reserve Board and such
additional information as the Federal Reserve Board may require. The Company is
also subject to examination by the Federal Reserve Board.

The Bank Holding Company Act limits the activities of bank holding companies
that have not qualified as financial holding companies to banking and the
management of banking organizations, and to certain non-banking activities.
These non-banking activities include those activities that the Federal Reserve
Board found, by order or regulation as of the day prior to enactment of the
Gramm-Leach-Bliley Act, to be so closely related to banking as to be a proper
incident to banking. These non-banking activities include, among other things:
operating a mortgage company, finance company, factoring company; performing
certain data processing operations; providing certain investment and financial
advice; acting as an insurance agent for certain types of credit-related
insurance; leasing property on a full-payout, nonoperating basis; and providing
discount securities brokerage services for customers. With the exception of the
activities of the Mortgage Company and certain third party arrangements
discussed above, neither the Company nor any of its subsidiaries engages in any
of the non-banking activities listed above.

In September, 2002, the Company's election to become a financial holding
company, as permitted by the Bank Holding Company Act, as amended by Title I of
the Gramm-Leach-Bliley Act, was accepted by the Federal Reserve Board. In order
to continue as a financial holding company, the Company and the Bank must
satisfy statutory requirements regarding capitalization, management, and
compliance with the Community Reinvestment Act. As a financial holding company,
the Company is permitted to engage in a broader range of activities than are
permitted to bank holding companies which have not qualified as financial
holding companies.


                                        4

<PAGE>

REGULATION AND SUPERVISION (CONTINUED)

Those expanded activities include any activity which the Federal Reserve Board
(in certain instances in consultation with the Department of the Treasury)
determines, by order or regulation, to be financial in nature or incidental to
such financial activity, or to be complementary to a financial activity and not
to pose a substantial risk to the safety or soundness of depository institutions
or the financial system generally. Such expanded activities include, among
others: insuring, guaranteeing, or indemnifying against loss, harm, damage,
illness, disability or death, or issuing annuities, and acting as principal,
agent, or broker for such purposes; providing financial, investment, or economic
advisory services, including advising a mutual fund; and underwriting, dealing
in, or making a market in securities. Other than the insurance agency activities
of CS Financial Services, neither the Company nor its subsidiaries currently
engages in any of the expanded activities.

The Bank is subject to restrictions imposed by federal law and regulation. Among
other things, these restrictions apply to any extension of credit to the Company
or its other subsidiaries, to investments in stock or other securities issued by
the Company, to the taking of such stock or securities as collateral for loans
to any borrower, and to acquisitions of assets or services from, and sales of
certain types of assets to, the Company or its other subsidiaries. Federal law
prevents the Company or its other subsidiaries from borrowing from the Bank
unless the loans are secured in designated amounts with specified forms of
collateral.

With respect to the acquisition of banking organizations, the Company is
generally required to obtain the prior approval of the Federal Reserve Board
before it can acquire all or substantially all of the assets of any bank, or
acquire ownership or control of any voting shares of any bank or bank holding
company, if, after the acquisition, the Company would own or control more than
5% of the voting shares of the bank or bank holding company. Acquisitions of
banking organizations across state lines are subject to certain restrictions
imposed by Federal and state law and regulations.

LOAN POLICY

The Bank makes loans primarily to individuals and businesses located within the
Bank's market area. The loan policy of the Bank states that the function of the
lending operation is to provide a means for the investment of funds at a
profitable rate of return with an acceptable degree of risk, and to meet the
credit needs of qualified businesses and individuals who become customers of the
Bank. The Board of Directors of the Bank recognizes that, in the normal business
of lending, some losses on loans will be inevitable. These losses will be
carefully monitored and evaluated and are recognized as a normal cost of
conducting business. The Bank's loan policy anticipates that priorities in
extending loans will change from time to time as interest rates, market
conditions and competitive factors change. The policy is designed to assist the
Bank in managing the business risk involved in extending credit. It sets forth
guidelines on a nondiscriminatory basis for lending in accordance with
applicable laws and regulations. The policy describes criteria for evaluating a
borrower's ability to support debt, including character of the borrower,
evidence of financial responsibility, knowledge of collateral type, value and
loan to value ratio, terms of repayment, source of repayment, payment history,
and economic conditions.

The Bank provides oversight and monitoring of lending practices and loan
portfolio quality through the use of an Officers Loan Committee (the "Loan
Committee"). The Loan Committee members include all commercial lenders, the
Chief Lending Officer, the President, the Vice Chairman of the Bank and other
designated lending personnel. The Loan Committee is presently permitted to
approve requests for loans in an amount not exceeding $1,000,000. The Loan
Committee may recommend that requests exceeding this amount be approved by a
Committee of the Board of Directors (the "Executive Loan Committee") whose
lending authority is approximately $2,000,000. Loan requests in excess of the
Executive Loan Committee limit require the approval of the Board of Directors.
The Board of Directors has the maximum lending authority permitted by law.
However, generally, the loan policy establishes an "in house" limit slightly
lower than the actual legal


                                        5

<PAGE>

LOAN POLICY (CONTINUED)

lending limit. The Bank's general legal lending limit, as of December 31, 2005,
was approximately $2,858,000, subject to a higher legal lending limit of
approximately $4,764,000 in specific cases with approval by two-thirds of the
Bank's Board of Directors. This limit is expected to change as the Bank's
capital changes.

In addition to the lending authority described above, the Bank's Board of
Directors delegates significant authority to officers of the Bank. The Board
believes this empowerment enables the Bank to be more responsive to its
customers. The President and the Chief Lending Officer each have been delegated
individual authority, where they deem it appropriate, to approve loans up to
$1,000,000. Together, their delegated authority, where they deem it appropriate,
is $1,750,000. Other officers have been delegated authority to approve loans of
lesser amounts, where they deem it appropriate, without approval by the Loan
Committee.

The loan policy outlines the amount of funds that may be loaned against specific
types of collateral. The loan to value ratios for first mortgages on residences
are expected to comply with the guidelines of secondary market investors. First
mortgages held within the Bank's portfolio are expected to mirror secondary
market requirements. In those instances where loan to value ratio exceeds 80%,
it is intended that private mortgage insurance will be obtained to minimize the
Bank's risk. Loans secured by a second or junior lien generally will be limited
to a loan to value ratio of 100%. Loans for improved residential real estate
lots generally will not exceed a loan to value ratio of 80%, and loans for
unimproved residential sites generally will not exceed a loan to value ratio of
75%. For certain loans secured by real estate, an appraisal of the property
offered as collateral, by a state licensed or certified independent appraiser,
will be required.

The loan policy also provides general guidelines as to collateral, provides for
environmental policy review, contains specific limitations with respect to loans
to employees, executive officers and directors, provides for problem loan
identification, establishes a policy for the maintenance of a loan loss reserve,
provides for loan reviews and sets forth policies for mortgage lending and other
matters relating to the Bank's lending practices.

LENDING ACTIVITY

     Commercial Loans. The Bank's commercial lending group originates commercial
loans primarily in the Western Michigan Counties of Muskegon and Northern
Ottawa. Commercial loans are originated by experienced lenders under the
leadership of the Chief Lending Officer. Loans are originated for general
business purposes, including working capital, accounts receivable financing,
machinery and equipment acquisition and commercial real estate financing,
including new construction and land development.

Working capital loans that are structured as a line of credit are reviewed
periodically in connection with the borrower's year end financial reporting.
These loans generally are secured by assets of the borrower and have an interest
rate tied to the prime rate. Loans for machinery and equipment purposes
typically have a maturity of five to seven years and are fully amortizing.
Commercial real estate loans may have an interest rate that is fixed to maturity
or floats with a spread to the prime rate or a U.S. Treasury Index.

The Bank evaluates many aspects of a commercial loan transaction in order to
minimize credit and interest rate risk. Underwriting commercial loans requires
an assessment of management, products, markets, cash flow, capital, income and
collateral. The analysis includes a review of historical and projected financial
results. On certain transactions, where real estate is the primary collateral,
and in some cases where equipment is the primary collateral, appraisals are
obtained from licensed or certified appraisers. In certain situations, for
creditworthy customers, the Bank may accept title reports instead of requiring
lenders' policies of title insurance.

Commercial real estate lending involves more risk than residential lending,
because loan balances are greater and repayment is dependent upon the borrower's
operations. The Bank attempts to minimize risk associated


                                        6

<PAGE>

LENDING ACTIVITY (CONTINUED)

with these transactions by generally limiting its exposure to owner operated
properties of well known customers or new customers with an established
profitable history. In certain cases, risk may be further reduced by (i)
limiting the amount of credit to any one borrower to an amount less than the
Bank's legal lending limit, and (ii) avoiding certain types of commercial real
estate financing.

Single Family Residential Real Estate Loans. The Bank originates first mortgage
residential real estate loans in its market area according to secondary market
underwriting standards. These loans are likely to provide borrowers with a fixed
or adjustable interest rate with terms up to 30 years. A majority of the single
family residential real estate loans are expected to be sold on a servicing
released basis in the secondary market with all interest rate risk and credit
risk passed to the purchaser. The Bank and the Mortgage Company may periodically
elect to underwrite certain residential real estate loans, generally with
maturities of seven years or less, to be held in its own loan portfolio.

Consumer Loans. The Bank originates consumer loans for a variety of personal
financial needs. Consumer loans are likely to include fixed home equity and
equity lines of credit, new and used automobile loans, boat loans, personal
unsecured lines of credit, credit cards (through third-party providers to
minimize risk) and overdraft protection for checking account customers. Consumer
loans generally have shorter terms and higher interest rates than residential
mortgage loans and, except for home equity lines of credit, usually will involve
greater credit risk due to the type and nature of the collateral securing the
debt. Strong emphasis is placed on the amount of the down payment, credit
quality, employment stability and monthly income. Hazard insurance is obtained
(in favor of the Bank) on certain loan types, including automobiles and boats.

Consumer loans are generally repaid on a monthly basis with the source of
repayment tied to the borrower's periodic income. It is recognized that consumer
loan delinquency and losses are dependent on the borrower's continuing financial
stability. Job loss, illness and personal bankruptcy may adversely affect
repayment. In many cases, repossessed collateral (on a secured consumer loan)
may not be sufficient to satisfy the outstanding loan balance. This is a common
occurrence due to depreciation of the underlying collateral. The Bank believes
that the generally higher yields earned on consumer loans compensate for the
increased credit risk associated with such loans. Consumer loans are expected to
be an important component in the Bank's efforts to meet the credit needs of the
communities and customers that it serves.

LOAN PORTFOLIO QUALITY

The Bank hires an independent firm to help management monitor and validate their
ongoing assessment of the credit quality of the Bank's loan portfolio. They
accomplish this through a sampling of the loan portfolios for both commercial
and retail loans. They also evaluate the loan underwriting, loan approval, loan
monitoring, loan documentation, and problem loan administration practices of the
Bank. The last loan review was performed in June 2005. The Bank is scheduled to
undergo its next review in June of 2006.

The Bank has a comprehensive loan grading system for commercial loans.
Administered as part of the loan review program, all commercial loans are graded
on a nine grade rating system utilizing a standardized grade paradigm that
analyzes several critical factors, such as cash flow, management and collateral
coverage. All commercial loans are graded at inception and at various intervals
thereafter. All commercial loan relationships exceeding $500,000 are formally
reviewed at least annually. Watch list credits are formally reviewed monthly.

INVESTMENTS

Bank Holding Company Investments. The principal investments of the Company are
the investments in the common stock of the Bank and the common securities of the
Trust. Other funds of the Company may be invested from time to time in various
debt instruments.


                                        7

<PAGE>

INVESTMENTS (CONTINUED)

As a bank holding company, the Company is also permitted to make portfolio
investments in equity securities and to make equity investments in subsidiaries
engaged in a variety of non-banking activities, which include real
estate-related activities such as community development, real estate appraisals,
arranging equity financing for commercial real estate, and owning and operating
real estate used substantially by the Bank or acquired for its future use. In
addition, the Company's qualification as a financial holding company enables it
to make equity investments in companies engaged in a broader range of financial
activities than the Company could do without that qualification. Such expanded
activities include insuring, guaranteeing, or indemnifying against loss, harm,
damage, illness, disability or death, or issuing annuities, and acting as
principal, agent, or broker for such purposes; providing financial, investment,
or economic advisory services, including advising a mutual fund; and
underwriting, dealing in, or making a market in securities. Other than its
investment in CS Financial Services, the Company has no plans at this time to
make directly any of these equity investments at the bank holding company level.
The Company's Board of Directors may, however, alter the investment policy at
any time without shareholder approval.

In addition, so long as the Company is qualified as a financial holding company,
it would be permitted, as part of the business of underwriting or merchant
banking activity and under certain circumstances and procedures, to invest in
shares or other ownership interests in, or assets of, companies engaged in
non-financial activities. In order to make those investments, the Company would
be required (i) to become, or to have an affiliate that is, a registered
securities broker or dealer or a registered municipal securities dealer, or (ii)
to control both an insurance company predominantly engaged in underwriting life,
accident and health, or property and casualty insurance (other than credit
insurance) or issuing annuities, and a registered investment adviser that
furnishes investment advice to an insurance company. The Company does not
currently have any securities, insurance, or investment advisory affiliates of
the required types, nor does the Company have any current plans to make any of
the equity investments described in this paragraph.

The Bank's Investments. The Bank may invest its funds in a wide variety of debt
instruments and may participate in the federal funds market with other
depository institutions. Subject to certain exceptions, the Bank is prohibited
from investing in equity securities. Among the equity investments permitted for
the Bank under various conditions and subject in some instances to amount
limitations, are shares of a subsidiary insurance agency (such as CS Financial
Services), a mortgage company (such as the Mortgage Company), real estate
company, or Michigan business and industrial development company. Under another
such exception, in certain circumstances and with prior notice to or approval of
the FDIC, the Bank could invest up to 10% of its total assets in the equity
securities of a subsidiary corporation engaged in the acquisition and
development of real property for sale, or the improvement of real property by
construction or rehabilitation of residential or commercial units for sale or
lease. The Bank has no present plans to make such an investment. Real estate
acquired by the Bank in satisfaction of or foreclosure upon loans may be held by
the Bank for specified periods. The Bank is also permitted to invest in such
real estate as is necessary for the convenient transaction of its business. The
Bank's Board of Directors may alter the Bank's investment policy without
shareholder approval at any time.

ENVIRONMENTAL MATTERS

The Company does not believe that existing environmental regulations will have
any material effect upon the capital expenditures, earnings and competitive
position of the Company.

EMPLOYEES

As of December 31, 2005, the Bank had 51 full-time and 20 part-time employees.
No area of the Bank is represented by collective bargaining agents.


                                        8
<PAGE>

SELECTED STATISTICAL DATA AND RETURN ON EQUITY AND ASSETS

Selected statistical data for the Company is shown for 2005, 2004 and 2003 only.

<TABLE>
<CAPTION>
                                                         2005           2004           2003
                                                     ------------   ------------   ------------
<S>                                                  <C>            <C>            <C>
CONSOLIDATED RESULTS OF OPERATIONS:
Interest Income                                      $ 13,538,296   $ 10,316,411   $  9,997,156
Interest Expense                                        5,377,328      3,870,929      4,100,827
                                                     ------------   ------------   ------------
Net Interest Income                                     8,160,968      6,445,482      5,896,329
Provision for loan losses                                 853,728        460,067        494,239
Non interest income                                     1,263,139        977,806      1,088,269
Non interest expense                                    6,785,271      5,744,642      5,469,453
                                                     ------------   ------------   ------------
Income before income tax expense                        1,785,108      1,218,579      1,020,906
Income tax expense (benefit)                              572,427        414,933        (43,140)
                                                     ------------   ------------   ------------
Net income                                           $  1,212,681   $    803,646   $  1,064,046

CONSOLIDATED BALANCE SHEET DATA:
Total assets                                         $222,166,351   $193,502,608   $184,104,142
Cash and cash equivalents                               4,651,459      2,375,615      6,590,025
Securities                                             18,902,432     16,930,341     24,274,055
Loans held for sale                                             0              0              0
Gross loans                                           192,644,742    171,451,202    149,950,085
Allowance for loan losses                               2,612,581      2,039,198      1,927,756
Other assets                                            8,580,299      4,784,648      5,217,733
Deposits                                              190,451,101    158,820,523    150,167,453
Federal funds purchased  and repurchase agreements      6,065,010      9,980,778     11,915,282
Notes payable and Federal Home Loan Bank Advances       6,000,000      6,000,000      8,550,000
Subordinated Debentures                                 4,500,000      4,500,000              0
Other                                                     650,329        801,975        835,706
Shareholders' equity                                   14,499,911     13,399,332     12,635,701

CONSOLIDATED FINANCIAL RATIOS:
Return on average assets                                     0.57%          0.42%          0.58%
Return on average shareholders' equity                       8.63%          6.17%          8.74%
Average equity to average assets                             6.60%          6.80%          6.65%
Dividend payout ratio                                         N/A            N/A            N/A
Non performing loans to total loans and leases               0.59%          0.44%          0.64%
Tier 1 leverage capital                                      8.73%          9.35%          6.90%
Tier 1 leverage risk-based capital                           9.48%         10.00%          7.78%
Total risk-based capital                                    10.73%         11.15%         10.54%
</TABLE>


                                       9

<PAGE>

SELECTED STATISTICAL DATA AND RETURN ON EQUITY AND ASSETS

<TABLE>
<CAPTION>
                                         2005         2004         2003
                                      ----------   ----------   ----------
<S>                                   <C>          <C>          <C>
Per Share Data:
Net Income:
   Basic                              $     0.85   $     0.56   $     0.75
   Diluted                                  0.82         0.55         0.75
Book value at end of period                10.09         9.37         8.84
Dividends declared                           N/A          N/A          N/A
Weighted average shares outstanding    1,434,185    1,430,000    1,410,274
Diluted average shares outstanding     1,471,939    1,464,362    1,411,282
</TABLE>

NET INTEREST EARNINGS

A table displaying the Company's average balance of both interest-earning assets
and interest-bearing liabilities as well as the yield earned on each is
incorporated by reference to Management's Discussion and Analysis at page 15 of
the 2005 Annual Report furnished to the Securities and Exchange Commission as
Exhibit 13 to this Report.

RATE VOLUME ANALYSIS

A table displaying the Company's change in interest income and interest expense
on interest earning assets and interest bearing liabilities segregated between
the change due to volume and the change due to rate is incorporated by reference
to Management's Discussion and Analysis at page 16 of the 2005 Annual Report
furnished to the Securities and Exchange Commission as Exhibit 13 to this
Report.

INVESTMENT PORTFOLIO

The composition of the investment portfolio is detailed in the table below.

<TABLE>
<CAPTION>
                                                              Balance at          Balance at
                                                          December 31, 2005   December 31, 2004
                                                          -----------------   -----------------
<S>                                                       <C>                 <C>
U.S. Treasuries                                              $         0         $         0
U.S. Government and federal agency                             5,360,898           5,406,061
Municipals                                                     5,625,140           1,125,097
Mortgage-backed and collateralized mortgage obligations        7,916,394          10,399,184
                                                             -----------         -----------
                                                             $18,902,432         $16,930,342
                                                             ===========         ===========
</TABLE>

The maturity schedule of the Company's investment portfolio as well as the
weighted average yield for each timeframe is included in the table below.

<TABLE>
<CAPTION>
                             One Yr or Less   1 - 5 Years   Over 5 Years      Total
                             --------------   -----------   ------------   -----------
<S>                          <C>              <C>           <C>            <C>
Treasury                       $        0     $        0     $        0    $         0
Government Agency               2,454,024      2,906,874              0      5,360,898
Municipals                        185,289      1,111,913      4,327,938      5,625,140
Mortgage Backed Securities        160,011      2,488,740      5,267,643      7,916,394
                               ----------     ----------     ----------    -----------
Total                          $2,799,324     $6,507,527     $9,595,581    $18,902,432
                               ==========     ==========     ==========    ===========
Weighted Average Yield               2.37%          3.33%          4.27%          3.67%
</TABLE>

Yields on tax exempt obligations have not been computed on a tax equivalent
basis.


                                       10
<PAGE>

INVESTMENT PORTFOLIO (CONTINUED)

The table below lists the security issuers in which the aggregate holding
exceeds 10% of the Company's stockholders' equity.

<TABLE>
<CAPTION>
Issuer   Book Value   Market Value
------   ----------   ------------
<S>      <C>          <C>
FHLB     $2,029,740    $1,950,861
FHLMC     4,240,687     4,161,595
FNMA      7,110,107     6,944,315
</TABLE>

LOAN PORTFOLIO

The composition of the loan portfolio is detailed in the following table.

<TABLE>
<CAPTION>
                                   December 31, 2005      December 31, 2004
                                 --------------------   --------------------
                                    Balance       %        Balance       %
                                 ------------   -----   ------------   -----
<S>                              <C>            <C>     <C>            <C>
Commercial                       $ 85,751,222    44.6   $ 80,385,707    46.9
Real estate - Commercial           68,445,169    35.5     56,484,601    32.9
Real estate - Residential           9,366,098     4.9      7,210,940     4.2
Real estate - Construction          1,636,526     0.8      2,205,563     1.3
Consumer                           27,445,727    14.2     25,164,391    14.7
                                 ------------   -----   ------------   -----
                                  192,644,742   100.0    171,451,202   100.0
                                                =====                  =====
Less allowance for loan losses      2,612,581              2,039,198
                                 ------------           ------------
                                 $190,032,161           $169,412,004
                                 ============           ============
</TABLE>

Below are two tables that summarize the activity in and the allocation of the
Allowance for Loan Losses.

Activity in the Allowance for Loan Losses:

<TABLE>
<CAPTION>
                                              Twelve Months   Twelve Months
                                                  Ended           Ended
                                                 12/31/05        12/31/04
                                              -------------   -------------
<S>                                           <C>             <C>
Beginning Balance                              $2,039,198      $1,927,756
Charge-offs
   Commercial                                    (130,602)       (198,941)
   Real Estate - Commercial                        (1,236)        (23,408)
   Real Estate - Residential                            0               0
   Real Estate - Construction                           0               0
   Consumer                                      (179,218)       (222,481)
                                               ----------      ----------
                                                 (311,056)       (444,830)
                                               ----------      ----------
Recoveries
   Commercial                                       (2798)         60,855
   Real Estate - Commercial                             0           2,165
   Real Estate - Residential                            0               0
   Real Estate - Construction                           0               0
   Consumer                                        33,510          33,185
                                               ----------      ----------
                                                   30,711          96,205
                                               ----------      ----------
Net Charge-offs                                  (280,345)       (348,625)
                                               ----------      ----------
Provision charged against operating expense       853,728         460,067
                                               ----------      ----------
Ending Balance                                 $2,612,581      $2,039,198
                                               ==========      ==========
</TABLE>


                                            11

<PAGE>

LOAN PORTFOLIO (CONTINUED)

Allocation of the Allowance for Loan Losses:

<TABLE>
<CAPTION>
                                                     2005                         2004
                                          --------------------------   --------------------------
                                                         Percent of                   Percent of
                                                       Loans in Each                Loans in Each
                                                        Category to                  Category to
                                            Amount      Total Loans      Amount      Total Loans
                                          ----------   -------------   ----------   -------------
<S>                                       <C>          <C>             <C>          <C>
Balance at End of Period Applicable to:
Commercial                                $1,460,911        44.6       $1,062,232        46.9
Real estate - Commercial                     777,331        35.5          632,459        32.9
Real estate - Residential                     46,830         4.9           36,055         4.2
Real estate - Construction                    18,820         0.8           25,364         1.3
Consumer                                     308,689        14.2          283,088        14.7
Unallocated                                        0         0.0                0         0.0
                                          ----------       -----       ----------       -----
Total                                     $2,612,581       100.0       $2,039,198       100.0
                                          ==========       =====       ==========       =====
</TABLE>

As of both period ends, all loans in the portfolio were domestic; there were no
foreign outstandings. For further discussion on the risk elements of the
portfolio and the factors considered in determining the amount of the allowance
for loan losses and for a table summarizing the scheduled maturities and
interest rate sensitivity of the Company's loan portfolio see the table and
information in Management's Discussion and Analysis on pages 9 and 10 of the
2005 Annual Report furnished to the Securities and Exchange Commission as
Exhibit 13 to this Report, which are incorporated here by reference.

DEPOSITS

The table below represents the average balance of deposits by category as well
as the average rate.

Deposits in Domestic Bank Office:

<TABLE>
<CAPTION>
                                    Average         Average
                                    Balance          Rate
                                 ------------       -------
<S>                              <C>                <C>
Non Interest Bearing Demand        16,457,530         N/A
Interest Bearing Demand            33,271,743        2.77
Savings                            15,537,817        1.75
Time Deposits                     111,473,073        2.99
                                 ------------       -------
Total                             176,740,163        2.83
                                 ============       =======
</TABLE>
The Company had no foreign banking offices or foreign depositors at December 31,
2005.

The table below represents the maturity distribution of time deposits of
$100,000 or more at December 31, 2005.

<TABLE>
<CAPTION>
                              Within       Over Three        Over Six
                               Three        Through          Through          Over Twelve
                              Months       Six Months      Twelve Months        Months          Total
                            -----------    ----------      -------------     ------------    -----------
<S>                         <C>            <C>             <C>               <C>             <C>
Time Deposit > $100,000     $26,932,929    $5,519,341      $12,144,481       $45,060,640     $89,657,691
</TABLE>

SHORT-TERM BORROWINGS

On December 31, 2005, and December 31, 2004, the consolidated short-term
borrowings of the Company consisted of repurchase agreements, but no federal
funds purchased. Federal funds purchased are overnight borrowings from various
correspondent banks. Repurchase agreements are advances by customers that are
not covered by federal deposit insurance. This liability is secured by Bank
owned securities, which are pledged on behalf of the repurchase account holders.


                                            12

<PAGE>

SHORT-TERM BORROWINGS (CONTINUED)

Details of the Company's holdings at both year-ends are as follows:

<TABLE>
<CAPTION>
                                            Repurchase   Federal Funds
                                            Agreements     Purchased
                                           -----------   -------------
<S>                                        <C>           <C>
Outstanding at December 31, 2005           $ 6,065,010    $         0
   Average interest rate at year end              2.83%          0.00%
   Average balance during year               7,757,732      3,157,507
   Average interest rate during year              1.88%          3.42%
   Maximum month end balance during year    10,776,372     10,600,000

Outstanding at December 31, 2004           $ 9,980,778    $         0
   Average interest rate at year end              1.24%          0.00%
   Average balance during year               9,314,156      2,271,721
   Average interest rate during year              1.16%          1.86%
   Maximum month end balance during year    11,480,726      5,550,000
</TABLE>

INTEREST RATE SENSITIVITY

The interest sensitivity of the Company's consolidated balance sheet at December
31, 2005 and discussion of interest rate sensitivity are incorporated here by
reference to Management's Discussion and Analysis at pages 18 through 20 of the
2005 Annual Report furnished to the Securities and Exchange Commission as
Exhibit 13 to this Report.

ITEM 2. DESCRIPTION OF PROPERTY

The Company's and Bank's main office is located at 1030 W. Norton Avenue,
Roosevelt Park, Michigan, a suburb of Muskegon. The building is approximately
11,500 square feet with a three lane drive-up, including a night depository and
ATM.

The Bank's second location is at 15190 Newington Drive, Grand Haven, Michigan.
The Bank secured a lease on September 1, 1999, which had a term of five years.
On April 8, 2004, the Bank exercised its renewal option and extended the lease
for an additional three years under the same terms as the original lease. The
leased space has 2,075 square feet of office space and one drive-up lane. A
stand-alone ATM is also available at the Grand Haven location. In December of
2005, the Bank acquired 1.25 acres of property for $1.13 million on which it
intends to build a branch. The Bank expects to relocate its existing Grand Haven
office to this new location at 1106 Beacon Boulevard, Grand Haven, Michigan,
once its lease expires in 2007.

The third banking location is situated in the City of North Muskegon at 485
Whitehall Road. It officially opened for business on January 16, 2001. The
leased premises are approximately 1200 square feet and have been customized by
the Landlord to accommodate banking services. The completed location has one
drive-up lane and an ATM. The original term of the lease was sixty months and
expired in January of 2006. The Landlord has agreed to allow the Bank to rent on
a month-to-month basis going forward. The Bank purchased land for $855,000 in
September of 2005 and is in the process of constructing a branch on the
property. The property is located at 180 Causeway Road, North Muskegon. It is
expected that the building will be completed in November 2006 at which time the
Whitehall Road banking operations will be relocated to the Causeway Road
Property.

For more information on the Company's future lease commitments see Note 10 on
page 36 of the 2005 Annual Report furnished to the Securities and Exchange
Commission as Exhibit 13 to this Report, which information regarding lease
commitments is incorporated here by reference.


                                            13

<PAGE>

The Bank paid $962,595 for the acquisition of a two-acre parcel of vacant land
for the establishment of the Bank's fourth banking location at 5797 Harvey
Street, in Norton Shores. Once completed, the two-story building will be
approximately 19,900 square feet with a four-lane drive-up, including a night
depository and ATM. Construction of this branch began in the winter of 2006 and
the project is slated for completion in the fourth quarter of the same year.

On October 31, 2005, the Bank entered into a Purchase Agreement with
Baumgardner-Hogan Real Estate, LLC, a Kentucky limited liability company, to
purchase vacant land located at the corner of Apple Avenue and Quarterline in
the City of Muskegon. The Bank intends on using the land to build a fifth
banking location. The agreed on purchase price is $675,000.

ITEM 3. 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 aggregate.

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

No matters were submitted during the fourth quarter of 2005 to a vote of the
Company's shareholders.


                                            14
<PAGE>

                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS
     ISSUER PURCHASES OF EQUITY SECURITIES

The information listed under the caption "Stock Information" on page 44 of the
2005 Annual Report furnished to the Securities and Exchange Commission as
Exhibit 13 to this Report are incorporated here by reference.

                      EQUITY PLAN COMPENSATION INFORMATION

     The following table summarizes information, as of December 31, 2005,
relating to the Company's compensation plans under which equity securities are
authorized for issuance.

<TABLE>
<CAPTION>
                                                                                        Number of securities
                                         Number of securities    Weighted average      remaining available for
                                           to be issued upon    exercise price of   future issuance under equity
                                              exercise of          outstanding           compensation plans
                                         outstanding options,   options, warrants       (excluding securities
Plan Category                             warrants and rights       and rights        reflected in column (a))
-------------                            --------------------   -----------------   ----------------------------
                                                  (a)                  (b)                       (c)
<S>                                      <C>                    <C>                 <C>
Equity compensation plans approved by
   security holders (1)                         155,775               $10.55                   55,000
Equity compensation plans not approved
   by security holders                                0                    0                        0
Total                                           155,775               $10.55                   55,000
</TABLE>

----------
(1)  The plans referred to are the Company's Employee Stock Option Plans of 1998
     and 2005 and the Director Stock Option Plans of 2003 and 2005.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The information shown under the caption "Management's Discussion and Analysis"
beginning on page 5 of the 2005 Annual Report furnished to the Securities and
Exchange Commission as Exhibit 13 to this Report is incorporated here by
reference.


                                       15

<PAGE>

ITEM 7. FINANCIAL STATEMENTS

The information presented under the captions "Consolidated Balance Sheets,"
"Consolidated Statements of Income," "Consolidated Statements of Changes in
Shareholders' Equity," "Consolidated Statements of Cash Flows," and "Notes to
Consolidated Financial Statements," as well as the Report of Independent
Registered Public Accounting Firm, Crowe Chizek and Company LLC, dated March 17,
2006, in the 2005 Annual Report furnished to the Securities and Exchange
Commission as Exhibit 13 to this Report is incorporated here by reference.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
     FINANCIAL DISCLOSURE

None.

ITEM 8A. CONTROLS AND PROCEDURES

As of December 31, 2005, an evaluation was performed under the supervision of
and with the participation of the Company's management, including the Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures. Based
on that evaluation, the Company's management, including the Chief Executive
Officer and Chief Financial Officer, concluded that the Company's disclosure
controls and procedures were effective as of December 31, 2005. There have been
no significant changes in the internal controls over financial reporting during
the quarter ended December 31, 2005, that has materially affected, or is
reasonably likely to materially affect, the Company's internal control over
financial reporting.

ITEM 8B. OTHER INFORMATION

None.

                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
     WITH SECTION 16(A) OF THE EXCHANGE ACT

The information presented under the captions "Information about Directors,
Nominees and Executive Officers" and "Section 16(a) Beneficial Ownership
Reporting Compliance" in the Company's definitive Proxy Statement for its May
11, 2006 annual meeting of shareholders (the "Proxy Statement"), a copy of which
will be filed with the Securities and Exchange Commission before the meeting
date, is incorporated here by reference.

The Company has a separately designated standing Audit Committee established in
accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The
members of the Audit Committee consist of John C.


                                       16

<PAGE>

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
     WITH SECTION 16(A) OF THE EXCHANGE ACT (CONTINUED)

Carlyle, Joy R. Nelson, Bruce C. Rice and Roger W. Spoelman. The Board of
Directors has determined that it does not have a member of the Audit Committee
that is qualified as an audit committee financial expert, as that term is
defined in the rules of the Securities and Exchange Commission. The Board of
Directors of the Company believes that the financial sophistication of the Audit
Committee is sufficient to meet the needs of the Company and its shareholders.

The Company has adopted a Code of Ethics that applies to all of the directors,
officers and employees, including the principal executive officer, principal
financial officer, principal accounting officer or controller, and persons
performing similar functions. The Code of Ethics is filed as Exhibit 14 to this
Report.

ITEM 10. EXECUTIVE COMPENSATION

The information presented under the captions "Director Compensation," "Summary
Compensation Table," "Options Granted in 2005," and "Aggregated Stock Option
Exercises in 2005 and Year End Option Values," in the Proxy Statement is
incorporated here by reference.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
     RELATED STOCKHOLDER MATTERS

The information presented under the caption "Stock Ownership of Certain
Beneficial Owners and Management" in the Proxy Statement is incorporated here by
reference.

The introductory sentence and table in Item 5 of this Report under the caption
"Equity Plan Compensation Information" is incorporated here by reference.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information presented under the caption "Certain Transactions" in the Proxy
Statement is incorporated here by reference.


                                       17
<PAGE>

ITEM 13. EXHIBITS

<TABLE>
<CAPTION>
EXHIBIT NO.                           EXHIBIT DESCRIPTION
-----------                           -------------------
<S>           <C>
    3.1       Articles of Incorporation are incorporated by reference to exhibit
              3.1 of the Company's June 30, 2004 Form 10-QSB (SEC file number
              333-63769).

    3.2       Bylaws of the Company are incorporated by reference to exhibit 3.2
              of the Company's December 31, 2003 Form 10-KSB (SEC file no.
              333-63769).

    10.1      1998 Employee Stock Option Plan is incorporated by reference to
              exhibit 10.1 of the Company's Registration Statement on Form SB-2
              (SEC File No. 333-63769), which became effective on December 17,
              1998. *

    10.2      First Amendment to 1998 Employee Stock Option Plan is incorporated
              by reference to exhibit 10.3 of the Company's Registration
              Statement on Form SB-2 (SEC File No. 333-63769), which became
              effective on December 17, 1998. *

    10.3      Director Stock Option Plan is incorporated by reference to exhibit
              10.53 of the Company's December 31, 2003 Form 10-KSB (SEC file no.
              333-63769). *

    10.4      Subordinated Note Purchase Agreement between Community Shores LLC
              and Community Shores Bank Corporation dated March 30, 2004 is
              incorporated by reference to exhibit 10.1 of the Company's March
              31, 2004 Form 10-QSB (SEC file no. 333-63769).

    10.5      Floating Rate Subordinated Note issued to Community Shores LLC and
              by Community Shores Bank Corporation dated March 30, 2004 is
              incorporated by reference to exhibit 10.2 of the Company's March
              31, 2004 Form 10-QSB (SEC file no. 333-63769).

    10.6      Subordinated Note Purchase Agreement between Community Shores LLC
              and Community Shores Bank Corporation dated June 30, 2004 is
              incorporated by reference to exhibit 10.1 of the Company's June
              30, 2004 Form 10-QSB (SEC file no. 333-63769).

    10.7      Floating Rate Subordinated Note issued to Community Shores LLC and
              by Community Shores Bank Corporation dated June 30, 2004 is
              incorporated by reference to exhibit 10.2 of the Company's June
              30, 2004 Form 10-QSB (SEC file no. 333-63769).

    10.8      Junior Subordinated Indenture between Community Shores Bank
              Corporation and Deutsche Bank Trust Company Americas, as Trustee
              dated as of December 17, 2004 is incorporated by reference to
              exhibit 10.20 of the Company's December 31, 2004 Form 10-KSB (SEC
              file no. 000-51166).
</TABLE>

----------
*    Management contract or compensatory plan or arrangement.


                                       18

<PAGE>

<TABLE>
<S>           <C>
    10.9      Amended and Restated Trust Agreement among Community Shores Bank
              Corporation, as Depositor, Deutsche Bank Trust Company Americas,
              as Property Trustee, Deutsche Bank Trust Company Delaware, as
              Delaware Trustee, and The Administrative Trustees Named Herein as
              Administrative Trustees dated as of December 17, 2004 is
              incorporated by reference to exhibit 10.21 of the Company's
              December 31, 2004 Form 10-KSB (SEC file no. 000-51166).

    10.10     Guarantee Agreement between Community Shores Bank Corporation, as
              Guarantor, and Deutsche Bank Trust Company Americas, as Guarantee
              Trustee dated as of December 17, 2004 is incorporated by reference
              to exhibit 10.22 of the Company's December 31, 2004 Form 10-KSB
              (SEC file no. 000-51166).

    10.11     Placement Agreement among Community Shores Bank Corporation,
              Community Shores Capital Trust I and Suntrust Capital Markets,
              Inc. dated as of December 17, 2004 is incorporated by reference to
              exhibit 10.23 of the Company's December 31, 2004 Form 10-KSB (SEC
              file no. 000-51166).

    10.12     2005 Bank Executive Management Bonus Plan incorporated by
              reference to exhibit 10.19 of the Company's December 31, 2004 Form
              10-KSB (SEC file no. 000-51166).*

    10.13     Second letter extending contingency period for the Purchase
              Agreement between Community Shores Bank Corporation and Norton
              Shores Hotel LLC dated January 21, 2005 is incorporated by
              reference to exhibit 10.4 of the Company's Form 8-K filed February
              22, 2005 (SEC file no. 000-51166).

    10.14     Second Amendment to Purchase Agreement between Community Shores
              Bank Corporation and Norton Shores Hotel LLC dated February 15,
              2005 is incorporated by reference to exhibit 10.5 of the Company's
              Form 8-K filed February 22, 2005 (SEC file no. 000-51166).

    10.15     Purchase Agreement between Community Shores Bank and POT #103,
              Inc. is incorporated by reference to exhibit 10.1 of the Company's
              Form 8-K filed May 9, 2005 (SEC file no. 000-51166).

    10.16     Development Coordination Agreement with Investment Property
              Associates, Inc is incorporated by reference to exhibit 10.1 of
              the Company's May 9, 2005 Form 8-K filed May 10, 2005 (SEC file
              no.000-51166).

    10.17     2005 Employee Stock Option Plan is incorporated by reference to
              Appendix A of the Company's proxy statement for its May 12, 2005
              annual meeting of shareholders (SEC file no. 000-51166).*

    10.18     2005 Director Stock Option Plan is incorporated by reference to
              Appendix B of the Company's proxy statement for its May 12, 2005
              annual meeting of shareholders (SEC file no. 000-51166).*
</TABLE>


                                       19

<PAGE>

<TABLE>
<S>           <C>
    10.19     Form of stock option agreement for options granted under the 2005
              Employee Stock Option Plan is incorporated by reference to exhibit
              10.3 of the Company's Form 8-K filed May 17, 2005 (SEC file no.
              000-51166). *

    10.20     Form of stock option agreement for options granted to directors
              under the 2005 Director Stock Option Plan is incorporated by
              reference to exhibit 10.1 of the Company's Form 8-K filed December
              13, 2005.*

    10.21     Purchase Agreement between Community Shores Bank and
              Baumgardner-Hogan Real Estate, LLC is incorporated by reference to
              exhibit 10.1 of the Company's Form 8-K filed November 2, 2005 (SEC
              file number 000-51166).

    10.22     Purchase Agreement between Community Shores Bank and Williamsburg
              Court Apartments, LLC is incorporated by reference to exhibit 10.1
              of the Company's Form 8-K filed November 10, 2005 (SEC file no.
              000-51166).

    10.23     Replacement Revolving Loan Agreement between Community Shores Bank
              Corporation and LaSalle Bank National Association dated August 1,
              2005 is incorporated by reference to exhibit 10.1 of the Company's
              Form 8-K filed December 16, 2005 (SEC file no.000-51166).

    10.24     First Amendment to Revolving Loan Agreement and Cancellation of
              Pledge Agreement between Community Shores Bank Corporation and
              LaSalle Bank National Association dated August 1, 2005 is
              incorporated by reference to exhibit 10.2 of the Company's Form
              8-K filed December 16, 2005 (SEC file no. 000-51166).

    10.25     Summary of 2006 Director Compensation Arrangement. *

    13        2005 Annual Report to Shareholders of the Company. Except for the
              portions of the 2005 Annual Report that are expressly incorporated
              by reference in this Annual Report on Form 10-KSB, the 2005 Annual
              Report of the Company shall not be deemed filed as a part of this
              Annual Report on Form 10-KSB.

    14        Code of Ethics is incorporated by reference to exhibit 14 of the
              Company's December 31, 2003 Form 10-KSB (SEC file no. 333-63769).

    21        Subsidiaries of the Issuer.

    23        Consent of Independent Registered Public Accounting Firm.

    31.1      Rule 13a-14(a) Certification of the principal executive officer

    31.2      Rule 13a-14(a) Certification of the principal financial officer.

    32.1      Section 1350 Chief Executive Officer Certification pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.

    32.2      Section 1350 Chief Financial Officer Certification pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.
</TABLE>

----------
*    Management contract or compensatory plan or arrangement.


                                       20
<PAGE>

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information presented under the caption "Fees to Independent Auditors for
2005 and 2004" in the Proxy Statement is incorporated here by reference.


                                       21

<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on March 31, 2006.

                                        COMMUNITY SHORES BANK CORPORATION

                                        /s/ Jose' A. Infante
                                        ----------------------------------------
                                        Jose' A. Infante
                                        Chairman of the Board, President and
                                        Chief Executive Officer

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant, and in the capacities indicated
on March 29, 2006.

/s/ Gary F. Bogner                      /s/ Joy R. Nelson
-------------------------------------   ----------------------------------------
Gary F. Bogner, Director                Joy R. Nelson, Director

/s/ John C. Carlyle                     /s/ Bruce C. Rice
-------------------------------------   ----------------------------------------
John C. Carlyle, Director               Bruce C. Rice, Director

/s/ Robert L. Chandonnet                /s/ Roger W. Spoelman
-------------------------------------   ----------------------------------------
Robert L. Chandonnet, Director          Roger W. Spoelman, Director


-------------------------------------
Dennis L. Cherette, Director

/s/ Bruce J. Essex
-------------------------------------
Bruce J. Essex, Director

/s/ Jose' A. Infante                    /s/  Tracey A. Welsh
-------------------------------------   ----------------------------------------
Jose' A. Infante, Chairman of the       Tracey A. Welsh, Senior Vice President,
Board, President and Chief Executive    Chief Financial Officer and Treasurer
Officer and Director (principal         (principal financial and accounting
executive officer)                      officer)


                                       22

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                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT NO.                           EXHIBIT DESCRIPTION
-----------                           -------------------
<S>           <C>
   3.1        Articles of Incorporation are incorporated by reference to exhibit
              3.1 of the Company's June 30, 2004 Form 10-QSB (SEC file number
              333-63769).

   3.2        Bylaws of the Company are incorporated by reference to exhibit 3.2
              of the Company's December 31, 2003 Form 10-KSB (SEC file no.
              333-63769).

   10.1       1998 Employee Stock Option Plan is incorporated by reference to
              exhibit 10.1 of the Company's Registration Statement on Form SB-2
              (SEC File No. 333-63769), which became effective on December 17,
              1998. *

   10.2       First Amendment to 1998 Employee Stock Option Plan is incorporated
              by reference to exhibit 10.3 of the Company's Registration
              Statement on Form SB-2 (SEC File No. 333-63769), which became
              effective on December 17, 1998. *

   10.3       Director Stock Option Plan is incorporated by reference to exhibit
              10.53 of the Company's December 31, 2003 Form 10-KSB (SEC file no.
              333-63769). *

   10.4       Subordinated Note Purchase Agreement between Community Shores LLC
              and Community Shores Bank Corporation dated March 30, 2004 is
              incorporated by reference to exhibit 10.1 of the Company's March
              31, 2004 Form 10-QSB (SEC file no. 333-63769).

   10.5       Floating Rate Subordinated Note issued to Community Shores LLC and
              by Community Shores Bank Corporation dated March 30, 2004 is
              incorporated by reference to exhibit 10.2 of the Company's March
              31, 2004 Form 10-QSB (SEC file no. 333-63769).

   10.6       Subordinated Note Purchase Agreement between Community Shores LLC
              and Community Shores Bank Corporation dated June 30, 2004 is
              incorporated by reference to exhibit 10.1 of the Company's June
              30, 2004 Form 10-QSB (SEC file no. 333-63769).

   10.7       Floating Rate Subordinated Note issued to Community Shores LLC and
              by Community Shores Bank Corporation dated June 30, 2004 is
              incorporated by reference to exhibit 10.2 of the Company's June
              30, 2004 Form 10-QSB (SEC file no. 333-63769).

   10.8       Junior Subordinated Indenture between Community Shores Bank
              Corporation and Deutsche Bank Trust Company Americas, as Trustee
              dated as of December 17, 2004 is incorporated by reference to
              exhibit 10.20 of the Company's December 31, 2004 Form 10-KSB (SEC
              file no. 000-51166).
</TABLE>

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*    Management contract or compensatory plan or arrangement.


                                       23

<PAGE>

<TABLE>
<S>           <C>
   10.9       Amended and Restated Trust Agreement among Community Shores Bank
              Corporation, as Depositor, Deutsche Bank Trust Company Americas,
              as Property Trustee, Deutsche Bank Trust Company Delaware, as
              Delaware Trustee, and The Administrative Trustees Named Herein as
              Administrative Trustees dated as of December 17, 2004 is
              incorporated by reference to exhibit 10.21 of the Company's
              December 31, 2004 Form 10-KSB (SEC file no. 000-51166).

   10.10      Guarantee Agreement between Community Shores Bank Corporation, as
              Guarantor, and Deutsche Bank Trust Company Americas, as Guarantee
              Trustee dated as of December 17, 2004 is incorporated by reference
              to exhibit 10.22 of the Company's December 31, 2004 Form 10-KSB
              (SEC file no. 000-51166).

   10.11      Placement Agreement among Community Shores Bank Corporation,
              Community Shores Capital Trust I and Suntrust Capital Markets,
              Inc. dated as of December 17, 2004 is incorporated by reference to
              exhibit 10.23 of the Company's December 31, 2004 Form 10-KSB (SEC
              file no. 000-51166).

   10.12      2005 Bank Executive Management Bonus Plan incorporated by
              reference to exhibit 10.19 of the Company's December 31, 2004 Form
              10-KSB (SEC file no. 000-51166).*

   10.13      Second letter extending contingency period for the Purchase
              Agreement between Community Shores Bank Corporation and Norton
              Shores Hotel LLC dated January 21, 2005 is incorporated by
              reference to exhibit 10.4 of the Company's Form 8-K filed February
              22, 2005 (SEC file no. 000-51166).

   10.14      Second Amendment to Purchase Agreement between Community Shores
              Bank Corporation and Norton Shores Hotel LLC dated February 15,
              2005 is incorporated by reference to exhibit 10.5 of the Company's
              Form 8-K filed February 22, 2005 (SEC file no. 000-51166).

   10.15      Purchase Agreement between Community Shores Bank and POT #103,
              Inc. is incorporated by reference to exhibit 10.1 of the Company's
              Form 8-K filed May 9, 2005 (SEC file no. 000-51166).

   10.16      Development Coordination Agreement with Investment Property
              Associates, Inc is incorporated by reference to exhibit 10.1 of
              the Company's May 9, 2005 Form 8-K filed May 10, 2005 (SEC file
              no.000-51166).

   10.17      2005 Employee Stock Option Plan is incorporated by reference to
              Appendix A of the Company's proxy statement for its May 12, 2005
              annual meeting of shareholders (SEC file no. 000-51166).*

   10.18      2005 Director Stock Option Plan is incorporated by reference to
              Appendix B of the Company's proxy statement for its May 12, 2005
              annual meeting of shareholders (SEC file no. 000-51166).*
</TABLE>


                                       24

<PAGE>

<TABLE>
<S>           <C>
   10.19      Form of stock option agreement for options granted under the 2005
              Employee Stock Option Plan is incorporated by reference to exhibit
              10.3 of the Company's Form 8-K filed May 17, 2005 (SEC file no.
              000-51166). *

   10.20      Form of stock option agreement for options granted to directors
              under the 2005 Director Stock Option Plan is incorporated by
              reference to exhibit 10.1 of the Company's Form 8-K filed December
              13, 2005.*

   10.21      Purchase Agreement between Community Shores Bank and
              Baumgardner-Hogan Real Estate, LLC is incorporated by reference to
              exhibit 10.1 of the Company's Form 8-K filed November 2, 2005 (SEC
              file number 000-51166).

   10.22      Purchase Agreement between Community Shores Bank and Williamsburg
              Court Apartments, LLC is incorporated by reference to exhibit 10.1
              of the Company's Form 8-K filed November 10, 2005 (SEC file no.
              000-51166).

   10.23      Replacement Revolving Loan Agreement between Community Shores Bank
              Corporation and LaSalle Bank National Association dated August 1,
              2005 is incorporated by reference to exhibit 10.1 of the Company's
              Form 8-K filed December 16, 2005 (SEC file no.000-51166).

   10.24      First Amendment to Revolving Loan Agreement and Cancellation of
              Pledge Agreement between Community Shores Bank Corporation and
              LaSalle Bank National Association dated August 1, 2005 is
              incorporated by reference to exhibit 10.2 of the Company's Form
              8-K filed December 16, 2005 (SEC file no. 000-51166).

   10.25      Summary of 2006 Director Compensation Arrangement. *

   13         2005 Annual Report to Shareholders of the Company. Except for the
              portions of the 2005 Annual Report that are expressly incorporated
              by reference in this Annual Report on Form 10-KSB, the 2005 Annual
              Report of the Company shall not be deemed filed as a part of this
              Annual Report on Form 10-KSB.

   14         Code of Ethics is incorporated by reference to exhibit 14 of the
              Company's December 31, 2003 Form 10-KSB (SEC file no. 333-63769).

   21         Subsidiaries of the Issuer.

   23         Consent of Independent Registered Public Accounting Firm.

   31.1       Rule 13a-14(a) Certification of the principal executive officer

   31.2       Rule 13a-14(a) Certification of the principal financial officer.

   32.1       Section 1350 Chief Executive Officer Certification pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.
</TABLE>

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*    Management contract or compensatory plan or arrangement.


                                       25

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<TABLE>
<S>           <C>
   32.2       Section 1350 Chief Financial Officer Certification pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002.
</TABLE>