Community Bank Shares Receives $28 Million in Capital from Small Business Lending Fund

Community Bank Shares of Indiana, Inc. announced today that it received $28 million in new capital through the United States Department of the Treasury's Small Business Lending Fund program (SBLF). The funds were authorized by the Small Business Jobs Act of 2010 and are intended to help community banks increase lending to small businesses so they can expand operations and create jobs. The new capital will enhance the Company's already strong capital base. The initial dividend rate is five percent but may be reduced based on the Company's growth in qualified small business lending. Simultaneously with the receipt of the SBLF funds, the Company redeemed the $19.5 million of shares of preferred stock the Company issued to the Treasury in May 2009 under the Capital Purchase Program (

), a part of the Troubled Asset Relief Program. The Treasury continues to hold a warrant to purchase 386,270 shares of the Company's common stock.