The four-year-old Muskegon-based bank reported 2002 net income of $823,020, or 65 cents per share, up 92 percent from the $428,368, or 37 cents per share, recorded during 2001.
Quarterly earnings rose 10.3 percent, from $227,403, or 19 cents per share, in 2001 to $250,937, or 19 cents per share, in 2002.
The improved financial performance beat previous earnings guidance by 4 cents per share, set new quarterly and annual records, and came despite soft economic conditions, tough competition in the market and what Chief Executive Officer Jose Infante called an “abysmal” interest rate environment for banks.
“We are quite proud of our accomplishments for the year,” Infante said. “We are well positioned to grow the bank and to improve our results in 2003.”
With three branch locations — two in Muskegon and one in Grand Haven — Community Shores recorded strong double-digit gains in total assets, loans and deposits in 2002, as well as improved market shares.
In Muskegon County, the bank raised its market share to 9.37 percent as of June 30, 2002, up from the 7.92 percent a year earlier, according to the most recent market share data from the FDIC that’s computed based on deposits.
In northwestern Ottawa County, where Community Shores began to put more emphasis during 2002, the bank raised its market share by more than a third. Within the ZIP codes covering Grand Haven, Spring Lake and Ferrysburg, Community Shores’ share of the market grew from 1.76 percent in June 2001 to 2.42 percent as of June 2002, according to FDIC data.
Total assets grew 17 percent during the year, from $148.1 million to $173.4 million, and total loans rose 20 percent, from $118.1 million to $142 million. Total deposits increased 20.5 percent in 2002, from $110.1 million to $132.7 million as of Dec. 31.
Infante expects Community Shores to post double-digit gains for 2003, although economic conditions may keep the percentages in the low teens.
“The market is still wide open. There’s lots of opportunities,” he said.