MUSKEGON — Community Shores Bank Corp. reported first quarter 2008 net income of $32,000, or 2 cents per diluted share, compared with net income of $229,000, or 15 cents per diluted share for the first quarter of 2007 According to the company, first quarter results reflect a return to profitability as a result of a lower provision for loan losses and higher noninterest income, compared to the fourth quarter of 2007.
A $900,000 reduction in the loan loss provision was a major factor in the bank’s profit performance in the just passed quarter. The loan loss provision was down from $1.13 million a year ago to $231,000 at quarter’s end.
“We believe we are making progress in several areas of our business,” said President and CEO Heather D. Brolick. “Our aggressive provisioning in the fourth quarter of 2007 has allowed us to strengthen our loan loss reserve. We have the flexibility to manage our problem loans efficiently and are proactively monitoring the financial condition of our clients and continually reassessing collateral valuations.”
“Troubled asset management is a top priority,” Brolick said “The strain of present economic conditions and the impact on our borrowing base remains a concern. We are pleased that, in this challenging environment, charge-offs and nonperforming assets improved this quarter,” commented Brolick.