CORUS Bankshares Inc. (CORS, Financial) filed Quarterly Report for the period ended 2009-06-30.
CORUS BANKSHARES INC. is a multi-bank holding company engaged in general banking business. Corus Bankshares Inc. has a market cap of $10.74 million; its shares were traded at around $0.2 with and P/S ratio of 0.02. Corus Bankshares Inc. had an annual average earning growth of 16.2% over the past 10 years.
Problem loans continue to grow as a result of the continuing nationwide downturn in the residential real estate market. Due to continued concerns about loan quality, Corus recorded a provision for credit losses of $344.0 million for the second quarter ended June 30, 2009, compared with $58.5 million during the same period of 2008. For the six months ended June 30, 2009, and 2008, the provision stood at $553.2 million and $95.3 million, respectively.
As a direct result of the Companys ongoing troubled condition, the Companys noninterest expense has also continued to rise. Noninterest expense increased primarily due to costs associated with the Companys foreclosed real estate, including impairment charges of $89.6 million and $134.3 million for the three and six months ended June 30, 2009, compared with zero and $2.9 million during the same periods in 2008. FDIC insurance, increased by $10.6 million and $14.9 million, respectively, compared to the three and six months ended June 30, 2008. Additionally, the Company has experienced increases in its expenses associated with regulatory compliance and audits, as well as legal and consulting fees.
For the three and six months ended June 30, 2009, Corus reported net interest losses of $21.0 million and $27.4 million, respectively, and a NIM of (1.20)% and (0.75)%, respectively. These results represent significant declines from the same periods in 2008 when Corus reported net interest income of $25.5 million and $72.4 million, respectively, and a NIM of 1.16% and 1.65%, respectively.
The primary driver behind the net interest loss and decline in Corus NIM continues to be the significant growth in nonperforming assets, as a result of the continued deteriorating conditions in the housing market. Nonperforming assets consist of nonperforming loans (i.e. nonaccrual, past due 90 days or more, and troubled debt restructurings) and other real estate owned. While, under certain limited circumstances, Corus recognizes income on nonaccrual loans, in general this pool of assets earns essentially no income, which has a dramatic downward impact on the NIM. During the three and six months ended June 30, 2009, nonperforming assets averaged $3.3 billion and $2.9 billion, respectively, compared to $789 million and $628 million for the same periods in 2008.
Finally, a decrease in loan points and fee income also contributed to the net interest loss. Loan points and fee income for the three and six months ended June 30, 2009 were $2.4 million and $7.6, respectively, as compared to $13.7 million and $28.6 million during the same respective periods of 2008.
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CORUS BANKSHARES INC. is a multi-bank holding company engaged in general banking business. Corus Bankshares Inc. has a market cap of $10.74 million; its shares were traded at around $0.2 with and P/S ratio of 0.02. Corus Bankshares Inc. had an annual average earning growth of 16.2% over the past 10 years.
Highlight of Business Operations:
Corus reported a net loss for the three months ended June 30, 2009 of $497.7 million, or ($9.27) per diluted share, compared with a net loss of $16.2 million, or ($0.30) per diluted share, for the same period of 2008. For the six months ended June 30, 2009, the net loss was $798.7 million, or ($14.87) per share on a diluted basis, compared to a net loss of $11.7 million, or ($0.21) per share on a diluted basis in 2008.Problem loans continue to grow as a result of the continuing nationwide downturn in the residential real estate market. Due to continued concerns about loan quality, Corus recorded a provision for credit losses of $344.0 million for the second quarter ended June 30, 2009, compared with $58.5 million during the same period of 2008. For the six months ended June 30, 2009, and 2008, the provision stood at $553.2 million and $95.3 million, respectively.
As a direct result of the Companys ongoing troubled condition, the Companys noninterest expense has also continued to rise. Noninterest expense increased primarily due to costs associated with the Companys foreclosed real estate, including impairment charges of $89.6 million and $134.3 million for the three and six months ended June 30, 2009, compared with zero and $2.9 million during the same periods in 2008. FDIC insurance, increased by $10.6 million and $14.9 million, respectively, compared to the three and six months ended June 30, 2008. Additionally, the Company has experienced increases in its expenses associated with regulatory compliance and audits, as well as legal and consulting fees.
For the three and six months ended June 30, 2009, Corus reported net interest losses of $21.0 million and $27.4 million, respectively, and a NIM of (1.20)% and (0.75)%, respectively. These results represent significant declines from the same periods in 2008 when Corus reported net interest income of $25.5 million and $72.4 million, respectively, and a NIM of 1.16% and 1.65%, respectively.
The primary driver behind the net interest loss and decline in Corus NIM continues to be the significant growth in nonperforming assets, as a result of the continued deteriorating conditions in the housing market. Nonperforming assets consist of nonperforming loans (i.e. nonaccrual, past due 90 days or more, and troubled debt restructurings) and other real estate owned. While, under certain limited circumstances, Corus recognizes income on nonaccrual loans, in general this pool of assets earns essentially no income, which has a dramatic downward impact on the NIM. During the three and six months ended June 30, 2009, nonperforming assets averaged $3.3 billion and $2.9 billion, respectively, compared to $789 million and $628 million for the same periods in 2008.
Finally, a decrease in loan points and fee income also contributed to the net interest loss. Loan points and fee income for the three and six months ended June 30, 2009 were $2.4 million and $7.6, respectively, as compared to $13.7 million and $28.6 million during the same respective periods of 2008.
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