Community Shores Ups Its Estimates

October 28, 2002
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MUSKEGON — Riding a strong financial performance through the first nine months of the year, including a third quarter that far exceeded expectations, Community Shores Bank Corp. raised earnings projections for the year by nearly 15 percent.

After recording a quarter that saw earnings grow 42.5 percent over a year ago, the small community bank upped earnings estimates for 2002 from 54 cents to 62 cents per share.

“We are quite optimistic about the fourth quarter and 2003,” Community Shores Chairman, President and CEO Jose Infante said.

The Muskegon-based Community Shores posted third quarter net income of $235,712, or 19 cents per share. That easily beat expectations of 13 cents per share and compares with net income of $165,311, or 14 cents per share, for the same period a year ago.

Year-to-date net income totaled $572,083, or 47 cents per share, up significantly from the $200,965, or 17 cents per share, through the first nine months of 2001.

With year-to-date earnings per share through the third quarter in sight of what’s expected for the entire year, and fourth quarter expectations of 15 cents per share, executives decided that a corresponding increase in Community Shores Bank’s 2002 earnings outlook was in order, Chief Financial Officer Tracy Welsh said.

Driving the strong third quarter performance were major gains in interest and non-interest income, the latter of which grew 75 percent from year-ago levels on the back of revenues from fees and charges that more than doubled and a 46 percent increase in mortgages.

The net result was an improvement in the bank’s margins, Welch said.

During the third quarter, Community Shores Bank saw its assets grow to $166.1 million, up 5.2 percent from the previous quarter and 18 percent from a year ago. Loans grew to $135.8 million, up 2.5 percent from the quarter before and 15 percent from a year earlier.

Total deposits were $135.1 million, a 3.8 percent increase and up 23 percent from the same period in 2001.

The growth rates were in line with expectations, Welch said.

“We’re absolutely happy with our growth,” she said.                       

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