Community Shores Earns Profit
MUSKEGON — Community Shores Bank Corp. continued its steady growth during the second quarter while recording a small profit.
The Muskegon-based Community Shores recorded second-quarter earnings of $31,858, or 3 cents per share, which compares with a loss of $65,711, or 6 cents per share, in the same period a year ago. The slight profit came despite the economic downturn and expectations of a 1-cent per-share loss for the quarter, President and Chief Executive Officer Jose Infante said.
At mid-year, Community Shores had earned $35,654, or 3 cents per share, which compares with mid-year 2000 loss of $320,492, or 27 cents per share.
Infante attributed the earnings to higher mortgage activity and increased fee income from a growing deposit base.
Overall, he said, “Things are going well.”
A group of local investors founded Community Shores less than two years ago and the bank has since grown steadily. Community Shores opened its first office in January 1999 and now has three branches in Muskegon, North Muskegon and Grand Haven.
Community Shores’ assets as of June 30 totaled $138.5 million, up 27 percent from the $109.7 million of a year earlier. Deposits have increased 20 percent in the past year, from $88 million to $105.4 million, and loans grew 28.1 percent, from $81.6 million to $104.1 million.
That kind of growth rate is what Community Shores wants and has sought, Infante said. He sees steady growth continuing and expects Community Shores to pick up new customers once Old Kent Bank’s local conversion to Fifth Third Bank is complete this fall.
“There’s still plenty of good business out there,” Infante said. “We are quite optimistic about continued growth and profitability for the third quarter and second half.”
For the future, Community Shores is planning a fourth branch office for 2002 and is preparing for a secondary public offering this fall that Infante expects will raise $3 million to $4 million in additional capital.