Community Shores On Positive Track
MUSKEGON — Community Shores Bank Corp., even with the sluggish economy, posted strong earnings for the first quarter.
The Muskegon-based community bank, driven by healthy gains in interest and non-interest income, reported quarterly net income of $509,461, or 38 cents per share. That includes a one-time gain of $327,000 from a tax benefit on prior losses and compares with net income of $165,671, or 14 cents per share, in the same period a year earlier.
Net interest income was up more than 16 percent from year-ago levels. Non-interest income, excluding a one-time gain, rose 26.9 percent from the same quarter a year earlier.
The period marked the 10th consecutive quarterly profit for the four-year-old bank. The bank’s ability to attract new customers is “providing the momentum for future earnings growth,” Community Shores Chairman and CEO Jose Infante said.
Infante expects solid earnings performance to continue for the current quarter and rest of the year, even with the uncertainty of when the economy will begin to pick up steam.
“It’ll be an interesting quarter but I think we’ll be fine,” Infante said. “We’re keeping a positive attitude on the year. It just depends on when the economy begins to really click.”
During the quarter, Community Shores registered solid gains in loans, assets and deposits.
Assets rose 8.8 percent, from $173.4 million as of Dec. 31 to $188.7 million on March 31, and total loans increased nearly 4 percent, from $141.4 million to $147 million.
Infante specifically cited the bank’s ability to record strong loan growth in a weak economy. He anticipates another good period for loan growth in the second quarter.
The bank, which has three branches in Muskegon, North Muskegon and Grand Haven, experienced the biggest gain in its deposit base, which grew 11.8 percent during the quarter, from $132.7 million to $148.3 million.
1Q 2003: $509,461, 38 cents EPS*
1Q 2002: $165,671, 14 cents EPS
*Includes one-time gain of $327,000 from tax benefits
Total assets 4Q 2002: $132.7 million
1Q 2003: $188.7 million
4Q 2002: $173.4 million
1Q 2003: $147.0 million
4Q 2002: $141.4 million
1Q 2003: $148.3 million
4Q 2002: $132.7 million