Community Shores Net Income Dips Slightly
MUSKEGON — Community Shores Bank Corp. today reported third quarter 2008 net income of $12,500, or 1 cent per diluted share, compared with net income of $11,000, or 1 cent per diluted share, for the second quarter of 2008. The company also posted a loss of $103,000, or 7 cents per diluted share for the third quarter of 2007. For the first nine months earnings were $55,000, or 4 cents per share, compared with $143,000, or 10 cents per share, for the first nine months of 2007.
According to Community Shores, third quarter results reflect a continuation of expense control initiatives and a declining loan loss provision over the course of the past year; in addition, the net interest margin expanded for the first time this quarter since the Federal Reserve began its series of interest rate reductions in the third quarter of 2007.
In response to the weak real estate market and deteriorating economy the bank’s strategy throughout the year has been to service existing quality borrowers but otherwise limit asset growth, said President and CEO Heather D. Brolick.
“In the current banking environment a strong balance sheet with surplus capital and conservative underwriting should position us to weather the cycle while we resolve our problem credit exposures,” Brolick said. “The outlook for our regional West Michigan economy, as with many areas of the country, is not particularly favorable in the near term; however, we are prepared to respond to its challenges while we patiently await a return to more normal conditions.”
At Sept. 30 nonperforming assets were $7.8 million, versus $6.1 million for the third quarter of 2007. Brolick said three loans account for approximately 64 percent of nonperforming loans, and that the bank was working closely with those borrowers.
Total revenue was $2.19 million for the third quarter, down 13 percent from the year-ago quarter. Assets at Sept. 30 totaled $256.9 million, a decrease of 6.1 percent since year-end 2007. Total loans were $217.7 million, down $12.5 million, from Dec. 31, 2007, with commercial loans accounting for virtually the entire decline.