Community Shores Income Up 107 Percent

February 11, 2007
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MUSKEGON — Community Shores Bank Corp. posted net income of $246,600 for the fourth quarter, reflecting an increase of 107.7 percent over the $119,000 reported in the fourth quarter of 2005.

Diluted earnings per share for the quarter were up 112.5 percent to 17 cents, compared with 8 cents for the prior-year period. The company noted that the fourth quarter included expenses related to its fourth branch office, which opened in November.

Net income for fiscal 2006 was $1.3 million, or 89 cents per diluted share, compared with net income of $1.2 million, or 82 cents per share, earned in fiscal 2005. According to the company, the results reflect strong commercial loan growth and fee income earned on the sale of small business loans, but the increase was partially offset by a decline in the net interest margin and a higher level of net charge-offs.

President and CEO Heather Brolick described the bank’s increase in earnings as “respectable,” its asset growth as “good,” and the results of its small business administration lending initiatives as “good.”

“However, further softening of the state’s economic environment has slowly seeped into West Michigan,” she stated. “New business start-ups have slowed, and competition has increased. Facing these issues, we continue to rely upon our trademark service and strong customer relationships to retain and attract business and offset pressure on yields.”

Total revenue was $10 million for the year, up from 2005 year-end revenue of $9.4 million.

Non-interest expense for 2006 was up $605,000 to $7.4 million due to the company’s investment in infrastructure expansion during 2006 and the addition of a new bank branch.  Community Shores also added 11 full-time equivalent employees last year, with salaries accounting for $201,000 of the increased spending. The remaining $404,000 was spent on occupancy, furniture, advertising and other expensed associated with expansion initiatives, Brolick noted.

“This past year we focused on investment in people and infrastructure; we look to 2007 for this investment to begin generating higher levels of revenue, which should improve efficiency levels going forward.”

Assets at Dec. 31, 2006, totaled $247 million, versus $222.2 million at the end of fiscal 2005. Community Shores Income Up 107 Percent

MUSKEGON — Community Shores Bank Corp. posted net income of $246,600 for the fourth quarter, reflecting an increase of 107.7 percent over the $119,000 reported in the fourth quarter of 2005.

Diluted earnings per share for the quarter were up 112.5 percent to 17 cents, compared with 8 cents for the prior-year period. The company noted that the fourth quarter included expenses related to its fourth branch office, which opened in November.

Net income for fiscal 2006 was $1.3 million, or 89 cents per diluted share, compared with net income of $1.2 million, or 82 cents per share, earned in fiscal 2005. According to the company, the results reflect strong commercial loan growth and fee income earned on the sale of small business loans, but the increase was partially offset by a decline in the net interest margin and a higher level of net charge-offs.

President and CEO Heather Brolick described the bank’s increase in earnings as “respectable,” its asset growth as “good,” and the results of its small business administration lending initiatives as “good.”

“However, further softening of the state’s economic environment has slowly seeped into West Michigan,” she stated. “New business start-ups have slowed, and competition has increased. Facing these issues, we continue to rely upon our trademark service and strong customer relationships to retain and attract business and offset pressure on yields.”

Total revenue was $10 million for the year, up from 2005 year-end revenue of $9.4 million.

Non-interest expense for 2006 was up $605,000 to $7.4 million due to the company’s investment in infrastructure expansion during 2006 and the addition of a new bank branch.  Community Shores also added 11 full-time equivalent employees last year, with salaries accounting for $201,000 of the increased spending. The remaining $404,000 was spent on occupancy, furniture, advertising and other expensed associated with expansion initiatives, Brolick noted.

“This past year we focused on investment in people and infrastructure; we look to 2007 for this investment to begin generating higher levels of revenue, which should improve efficiency levels going forward.”

Assets at Dec. 31, 2006, totaled $247 million, versus $222.2 million at the end of fiscal 2005. 

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