Community Financial Shares, Inc. Announces Results for the Three and Six Months Ended June 30, 2009.

GLEN ELLYN, Ill. -- Community Financial Shares, Inc. (OTCBB: CFIS) (the "Company"), the holding company for Community Bank-Wheaton/Glen Ellyn (the "Bank"), reported net losses (unaudited) for the three and six months ended June 30, 2009 of $390,000 and $308,000, respectively. This compares to net losses of $327,000 and $246,000 for the comparable prior year periods. For the three months ended June 30, 2009, basic and diluted loss per share both totaled $0.31. This represents a decrease of 19.2% from $0.26 for both basic and diluted loss per share for the comparable prior year period. In addition, for the six months ended June 30, 2009 basic and diluted loss per share both totaled $0.25. This represents a decrease of 25.0% from $0.20 for both basic and diluted loss per share for the six months ended June 30, 2008. The increase in net loss for the three months ended June 30, 2009 is primarily the result of the net effect of a $70,000 increase in provision for loan losses, a $337,000 increase in noninterest expense, a $68,000 increase in net interest income and a $247,000 increase in noninterest income. Similarly, the increase in net loss for the six months ended June 30, 2009 is primarily the result of the net effect of a $130,000 increase in provision for loan losses, a $60,000 increase in net interest income, a $247,000 increase in noninterest income and a $270,000 increase in noninterest expense.

Total assets at June 30, 2009 were $315.9 million, which represents an increase of $21.2 million, or 7.2%, compared to $294.7 million at December 31, 2008. The increase in total assets was the result of an increase in investment securities of $13.4 million, or 49.6%, to $40.3 million at June 30, 2009 from $27.0 million at December 31, 2008, and an increase in loans receivable of $7.0 million, or 3.2%, to $226.6 million at June 30, 2009 from $219.6 million at December 31, 2008. In addition, loans receivable increased $11.2 million, or 5.2%, from $215.5 million at March 31, 2009. Partially offsetting these increases was a decrease in cash and cash equivalents of $1.6 million to $14.2 million at June 30, 2009 from $15.8 million at December 31, 2008. The growth in loans during the six months ended June 30, 2009 is primarily due to continued strong relationships within our community maintained by our loan staff. The increase in investment securities was due to opportunities in the market. Deposits increased $14.4 million, or 5.7%, to $268.0 million at June 30, 2009 from $253.5 million at December 31, 2008. This increase primarily consists of increases in the Bank's core deposit accounts, including: (1) an increase in interest bearing demand deposit accounts of $11.1 million, or 19.8%, to $66.9 million at June 30, 2009 from $55.8 million at December 31, 2008; and (2) an increase in money market accounts of $1.9 million, or 4.9%, to $40.7 million at June 30, 2009 from $38.8 million at December 31, 2008. The percentage of interest bearing deposit accounts to total deposits increased to 24.6% at June 30, 2009 from 22.0% at December 31, 2008 and the percentage of certificates of deposit to total deposits decreased to 39.8% at June 30, 2009 from 42.8% at December 31, 2008. Borrowed money, consisting of Federal Home Loan Bank advances and other borrowings, remained unchanged at $19.0 million as of June 30, 2009 and December 31, 2008.

Stockholders' equity increased $6.5 million, or 39.4%, to $23.2 million at June 30, 2009 from $16.6 million at December 31, 2008. The increase in stockholders' equity for the six months ended June 30, 2009 was primarily the result of the receipt of a $6.97 million investment from the U.S. Department of the Treasury in exchange for 6,970 shares of the Company's preferred stock pursuant to the TARP Capital Purchase Program provided for under the Emergency Economic Stabilization Act of 2008. Partially offsetting this increase was a decrease of $125,000 in the Company's accumulated other comprehensive income relating to the change in fair value of its available-for-sale investment portfolio and the Company's net loss for the six months ended June 30, 2009. As of June 30, 2009 there were 1,245,267 shares of Company common stock outstanding, resulting in a book value of $13.00 per share at that date.

Net interest income before provision for loan losses increased $68,000, or 3.2%, to $2.2 million for the three months ended June 30, 2009 and $60,000, or 1.5%, to $4.2 million for the six months ended June 30, 2009 as compared to the comparable prior year periods. These increases are primarily due to decreases in the average cost of interest bearing liabilities of 78 and 97 basis points for the three and six months ended June 30, 2009, respectively. The average cost of interest bearing liabilities decreased to 2.05% and 2.14% for the three and six months ended June 30, 2009, respectively, from 2.83% and 3.11% for the comparable prior year periods. The effect of this decrease in average cost was partially offset by decreases in the average yield on interest-earning assets of 79 and 92 basis points for the three and six months ended June 30, 2009, respectively. The average yield on interest-earning assets decreased to 4.97% and 5.03% for the three and six months ended June 30, 2009, respectively, from 5.76% and 5.95% for the comparable prior year periods. The net interest margin, expressed as a percentage of average earning assets, decreased 10 basis points to 3.06% for the three months ended June 30, 2009 from 3.16% for the three months ended June 30, 2008; however it increased 6 basis points from the three months ended March 31, 2009, and decreased 5 basis points to 3.03% for the six months ended June 30, 2009 from 3.08% for the six months ended June 30, 2008. The average yield on loans decreased 41 and 62 basis points for the three and six months ended June 30, 2009, respectively, compared to the comparable prior year periods. This decrease is partially due to approximately one-half of the Bank's loan portfolio being adjustable rate. The average yield on loans decreased to 5.64% and 5.63% for the three and six months ended June 30, 2009, respectively, from 6.05% and 6.25% for the comparable prior year periods.

The provision for loan losses increased $70,000 and $130,000 for the three and six months ended June 30, 2009, respectively, compared to the prior year period. The increase in the provision was the result of management's quarterly analysis of the allowance for loan loss. Nonperforming loans totaled $4.6 million, or 1.46% of total assets, at June 30, 2009 and $3.1 million, or 1.09% of total assets, at June 30, 2008. The ratio of the allowance for loan losses to nonperforming loans totaled 86.6% and 89.2% at June 30, 2009 and June 30, 2008, respectively.

Noninterest income increased $247,000, or 54.4%, to $700,000 for the three months ended June 30, 2009 as compared to the comparable prior year period. The increase is primarily due to increases in gain on sale of loans of $193,000 and fees generated by the Company's investment center of $14,000. Noninterest income increased $247,000, or 25.1%, to $1.2 million for the six months ended June 30, 2009 as compared to the comparable prior year period. This increase is primarily due to increases in gain on sale of loans of $254,000 and fees generated by the Company's investment center of $18,000. Partially offsetting these increases are a decrease in gains on sale of securities of $29,000 and an increase in loss on sale of foreclosed assets of $54,000.

Noninterest expense increased $337,000, or 14.0%, to $2.7 million for the three months ended June 30, 2009 as compared to the comparable prior year period. This increase is primarily due to an increase in FDIC premiums of $79,000 and special assessments of $148,000, compensation and benefits expense of $98,000, building and equipment expense of $18,000 and data processing expense of $18,000. The increase in compensation and benefits expense is the result of annual merit increases. The increase in building and equipment expense are partially due to higher real estate taxes. These increases are partially offset by lower advertising and marketing expenses of $25,000. Noninterest expenses increased $270,000, or 5.5%, to $5.2 million for the six months ended June 30, 2009 as compared to the comparable prior year period. This increase is primarily due to increases in FDIC premiums and special assessments of $228,000, compensation and benefits expense of $56,000, building and equipment expense of $38,000, data processing expense of $29,000. Partially offsetting these increases was a decrease in advertising and marketing expense of $29,000.

Community Financial Shares, Inc. is a bank holding company headquartered in Glen Ellyn, Illinois with $315.9 million in assets at June 30, 2009. Its primary subsidiary, Community Bank-Wheaton/Glen Ellyn, maintains four full service offices in Glen Ellyn and Wheaton.

For further information about the Company and the Bank visit them on the world-wide-web at www.commbank-wge.com. In addition, information on the Company's stock can be found at www.otcbb.com under the symbol CFIS.

Statements contained in this news release which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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