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Community Shores records net loss
MUSKEGON — Community Shores Bank Corporation reported a net loss of $1 million, or 70 cents per diluted share, for the 12months ended Dec. 31. This compares with a net loss of $772,000, or 53 cents per diluted share, for full year 2007. The company reported a net loss of $1.1 million, or 74 cents per share, for the fourth quarter versus a net loss of $916,000, or 62 cents per share, for the prior-year’s fourth quarter. According to Community Shores, full-year and fourth quarter 2008 results reflect a declining net interest margin and deteriorating asset quality, both largely a function of the weaker economy, most notably in the real estate sector.
President and CEO Heather D. Brolick said the bank has been proactively working with borrowers to address factors that might impact loan repayment.
“The vast majority have responded constructively, recognizing that unprecedented conditions have increased credit risk factors,” Brolick stated. “In addition to asset risk mitigation, we have taken steps to strengthen our bank — cutting costs, improving our capital ratios by selectively reducing the balance sheet, and developing additional fee-based products to improve profitability. We realize that this economy might be with us for a while, and we are taking steps to protect our customers and shareholders from the growing level of uncertainty we face.”
The bank’s 2008 provision for loan losses was $1.9 million, of which $1.5 million was taken in the fourth quarter. Assets at Dec.31 were $255.6 million, a decline of $17.8 million or 6.5 percent from year-end 2007. Year over year, Community Shores’ balance sheet reflects a decline in total loans of $25 million, or 10.8 percent, to $207.5 million. At Dec. 31 nonperforming assets were $11.9 million, or 4.66 percent of total assets, compared with $7.8 million, or 3.03 percent of assets, for the year ago quarter. Deposits at Dec. 31 were $219.6 million, down $18.4 million from year-end 2007.