Community Shores Returns To Profitability

May 6, 2008
Print
Text Size:
A A

MUSKEGON — Community Shores Bank Corp. reported first quarter 2008 net income of $32,000, or 2 cents per diluted share, compared with net income of $229,000, or 15 cents per diluted share for the first quarter of 2007 According to the company, first quarter results reflect a return to profitability as a result of a lower provision for loan losses and higher noninterest income, compared to the fourth quarter of 2007.

A $900,000 reduction in the loan loss provision was a major factor in the bank's profit performance in the just passed quarter. The loan loss provision was down from $1.13 million a year ago to $231,000 at quarter's end.

"We believe we are making progress in several areas of our business," said President and CEO Heather D. Brolick. "Our aggressive provisioning in the fourth quarter of 2007 has allowed us to strengthen our loan loss reserve. We have the flexibility to manage our problem loans efficiently and are proactively monitoring the financial condition of our clients and continually reassessing collateral valuations."

Brolick said CommunityShores is also beginning to generate a revenue stream that's independent of interest rates. The bank's mortgage originations are growing, allowing it to generate both fee income from sales to the secondary market and yield income from retaining a portion of the loans in portfolio, she added. Total revenue was $2.5 million for the first quarter of 2008, an increase of 2 percent from the $2.4 million reported for first quarter of last year.

"Troubled asset management is a top priority," Brolick said "The strain of present economic conditions and the impact on our borrowing base remains a concern. We are pleased that, in this challenging environment, charge-offs and nonperforming assets improved this quarter," commented Brolick.

Assets at March 31, 2008 totaled $278.8 million, an increase of $27.2 million, or 10.8 percent, over a year ago. Total loans were $224.8 million, up $18.8 million, or 9.1 percent, from the year-ago quarter. Since year-end, loans declined 3.3 percent to $224.8 million. Deposits for the first quarter of 2008 were $242.8 million, up $4.8 million, or 2.0 percent, from the linked quarter and $25.2 million, or 11.6 percent, year over year.    

Editor's Picks

Comments powered by Disqus