Community Shores Posts 3Q Net Loss
MUSKEGON — Community Shores Bank Corp. reported a net loss of $103,000, or 7 cents per diluted share, compared with net income of $363,000, or 25 cents per share for the third quarter of 2007. For the first nine months, earnings were $143,000, or 10 percent per diluted share, versus $1.07 million, or 73 cents per share, for the prior nine-month period.
President and CEO Heather D. Brolick said the banking environment has been challenging for the industry as a whole, but particularly for Michigan banks.
“Margin compression has limited revenue growth, and the decline in asset quality has taken profits from the bottom line,” Brolick said. “Nonetheless, our organization has grown over the past 12 months in terms of asset size, number of branches and more lenders offering more products. The results have been strong loan growth, a growing deposit market share and an increasingly diversified stream of fee income.”
Assets totaled $267.3 million for the first nine months, an increase of $20.3 million over the same period the year before. Year-to-date total loans, excluding loans held for sale, grew $22.5 million, or nearly 11 percent, to $230.9 million.
“We have been selective in the loans we chose to originate, Brolick commented. “Most of our growth has been in commercial real estate, and the vast majority of these loans are collateralized by owner-occupied properties.”
Nonperforming assets for the quarter were $3.2 million, compared with $1.5 million for the year-ago quarter. Nonperforming assets were $4 million at Sept. 30. Brolick noted that the company has been “diligent” in its effort to identify early signs of weakness in its loan portfolio and said she believes the bank is adequately reserved.
Despite the disappointing third-quarter results, she said the bank is well positioned for stronger performance going forward.