Community Shores Bank Corp. (CSHB, Financial) filed Quarterly Report for the period ended 2011-09-30.
Community Shores Bank Corp. has a market cap of $0.32 million; its shares were traded at around $0 with and P/S ratio of 0.02.
For the first nine months of 2011, the annualized return on the Company s average total assets was (1.11)% compared to (2.94)% for the first nine months of 2010. For the third quarter of 2011, the annualized return on the Company s average total assets was (1.19)%. For the third quarter of 2010, the ratio was (6.04)%. The Company s annualized return on average equity was (959.51)% for the first nine months of 2011 and (79.24)% for the first nine months of 2010. For the third quarter of 2011, the annualized return on average equity was not meaningful because the Company s average equity for the quarter was negative which distorted the ratio returning a positive number even though there were losses. For the third quarter of 2010, the annualized return on average equity was (195.41)%. The ratio of average equity to average assets was 0.12% for the first nine months of 2011 and 3.71% for the first nine months of 2010. The ratio was (0.03)% for the third quarter of 2011 and 3.09% for the same period in 2010. After years of recorded losses the shareholder s equity of the Company has eroded and is currently a negative number. Subsequently the ratios are substantially negative in spite of smaller losses in 2011. Another component of the Company s revenue is its net interest income. The net interest income and corresponding net interest margin were better for the first nine months of 2011 than the same period in 2010 mostly as a result of improvements made to the Company s cost of average funds. The following table sets forth certain information relating to the Company s consolidated average interest earning assets and interest bearing liabilities and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing annualized income or expenses by the average daily balance of assets or liabilities, respectively, for the periods presented. - 45 - COMMUNITY SHORES BANK CORPORATION MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The tax equivalent net interest spread on average earning assets increased 31 basis points to 3.17% in the past twelve months. The tax equivalent net interest margin increased by 38 basis points from 3.00% for the first nine months of 2010 to 3.38% for the first nine months of 2011. The tax equivalent net interest income for the first nine months of 2011 was $5.6 million compared to a figure of $5.2 million for the same nine months in 2010. The Company recorded $402,000 more net interest income. There were $10.9 million less average earning assets on the books in the first three quarters of 2011 compared to the first three quarters of 2010. In spite of having less average earning assets, the net interest margin improved. Improvement stemmed primarily from a change in the mix of funding resources and a decrease in the yield paid on interest bearing liabilities.
Non-interest income recorded in the first nine months of 2011 was $1.5 million compared to $1.2 million recorded for the similar period in 2010. There were two primary differences between the two periods. Included in 2010 s first three quarters total were security gains of $80,000 from the sale of a majority of the Bank s municipal portfolio. There was only $3,000 of recorded securities gains included in the first three quarters of 2011. Offsetting the differences in the gains on securities sales was a $267,000 variance in the outcome of foreclosed asset disposals. In the first three quarters of 2011, foreclosed asset sales resulted in recorded income for the Bank of $196,000. In the similar period of 2010, foreclosed asset sales resulted in a net loss of $71,000.
Non-interest income for the third quarter of 2011 was $586,000 compared to $369,000 of non-interest income in the third quarter of 2010. The third quarter of 2011 included net gains on the sale of foreclosed property of $201,000; foreclosed asset sales in the third quarter of 2010 resulted in a net loss of $50,000. The $251,000 differential between these two outcomes was somewhat offset by a $60,000 decrease in mortgage related income between the two periods. Although the rate environment is very conducive to mortgage lending activity, the underwriting environment is much more stringent. A large portion of the customers interested in refinancing do not have enough equity in their homes to meet today s underwriting criteria. As a result, the volume of mortgage loan sales is not comparable to last year.
Read the The complete Report
Community Shores Bank Corp. has a market cap of $0.32 million; its shares were traded at around $0 with and P/S ratio of 0.02.
Highlight of Business Operations:
Loans held for sale activity during the first nine months of 2011 included $12.7 million of loan originations and $7.9 million of loan sales. The associated gain on the loan sales was $195,000. A majority of the gains were recorded in the first quarter and were related to the sale of the guaranteed portion of three Small Business Administration (“SBA”) loans. These SBA loans totaling $2.4 million were sold for a gain of $124,000. The Bank is no longer originating SBA loans with the intention of selling the guaranteed portion in the secondary market so it is not likely that these gains will occur going forward. There were no SBA loan sales in the first nine months of 2010, loan sale activity during that time consisted solely of residential mortgage loans.For the first nine months of 2011, the annualized return on the Company s average total assets was (1.11)% compared to (2.94)% for the first nine months of 2010. For the third quarter of 2011, the annualized return on the Company s average total assets was (1.19)%. For the third quarter of 2010, the ratio was (6.04)%. The Company s annualized return on average equity was (959.51)% for the first nine months of 2011 and (79.24)% for the first nine months of 2010. For the third quarter of 2011, the annualized return on average equity was not meaningful because the Company s average equity for the quarter was negative which distorted the ratio returning a positive number even though there were losses. For the third quarter of 2010, the annualized return on average equity was (195.41)%. The ratio of average equity to average assets was 0.12% for the first nine months of 2011 and 3.71% for the first nine months of 2010. The ratio was (0.03)% for the third quarter of 2011 and 3.09% for the same period in 2010. After years of recorded losses the shareholder s equity of the Company has eroded and is currently a negative number. Subsequently the ratios are substantially negative in spite of smaller losses in 2011. Another component of the Company s revenue is its net interest income. The net interest income and corresponding net interest margin were better for the first nine months of 2011 than the same period in 2010 mostly as a result of improvements made to the Company s cost of average funds. The following table sets forth certain information relating to the Company s consolidated average interest earning assets and interest bearing liabilities and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing annualized income or expenses by the average daily balance of assets or liabilities, respectively, for the periods presented. - 45 - COMMUNITY SHORES BANK CORPORATION MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The tax equivalent net interest spread on average earning assets increased 31 basis points to 3.17% in the past twelve months. The tax equivalent net interest margin increased by 38 basis points from 3.00% for the first nine months of 2010 to 3.38% for the first nine months of 2011. The tax equivalent net interest income for the first nine months of 2011 was $5.6 million compared to a figure of $5.2 million for the same nine months in 2010. The Company recorded $402,000 more net interest income. There were $10.9 million less average earning assets on the books in the first three quarters of 2011 compared to the first three quarters of 2010. In spite of having less average earning assets, the net interest margin improved. Improvement stemmed primarily from a change in the mix of funding resources and a decrease in the yield paid on interest bearing liabilities.
Non-interest income recorded in the first nine months of 2011 was $1.5 million compared to $1.2 million recorded for the similar period in 2010. There were two primary differences between the two periods. Included in 2010 s first three quarters total were security gains of $80,000 from the sale of a majority of the Bank s municipal portfolio. There was only $3,000 of recorded securities gains included in the first three quarters of 2011. Offsetting the differences in the gains on securities sales was a $267,000 variance in the outcome of foreclosed asset disposals. In the first three quarters of 2011, foreclosed asset sales resulted in recorded income for the Bank of $196,000. In the similar period of 2010, foreclosed asset sales resulted in a net loss of $71,000.
Non-interest income for the third quarter of 2011 was $586,000 compared to $369,000 of non-interest income in the third quarter of 2010. The third quarter of 2011 included net gains on the sale of foreclosed property of $201,000; foreclosed asset sales in the third quarter of 2010 resulted in a net loss of $50,000. The $251,000 differential between these two outcomes was somewhat offset by a $60,000 decrease in mortgage related income between the two periods. Although the rate environment is very conducive to mortgage lending activity, the underwriting environment is much more stringent. A large portion of the customers interested in refinancing do not have enough equity in their homes to meet today s underwriting criteria. As a result, the volume of mortgage loan sales is not comparable to last year.
Read the The complete Report
