MUSKEGON – Steady growth pushed Community Shores Bank Corp. to its best period ever in the second quarter.
The 2-year-old bank recorded triple-digit growth in net income and continues to exceed projections for the year, President and Chief Executive Officer Jose Infante said.
“It’s watching the expenses on the bottom line and steady growth. We’ve had steady growth in all areas of the banks,” Infante said.
He termed the quarterly financial performance as “exceptional,” given the state of the economy and soft business conditions.
Community Shores last month reported second quarter net income of $170,700, or 14 cents per share. That compares with a modest profit of $31,858, or 3 cents per share, during the second quarter of 2001.
Halfway through 2002, net income totaled $336,371, or 28 cents per share, which compares with $35,654, or 3 cents a share, during the first six months of last year.
The bank improved margins and saw double-digit increases from year-ago levels in total loans, assets and deposits, although assets and deposits fell from the previous quarter.
The quarter-to-quarter decreases in deposits and assets stems from the $23 million that was moved during the quarter by three area schools districts – Grand Haven, Muskegon Public, and Reeths-Puffer – that previously deposited the proceeds from bond issues with Community Shores, Infante said. When the school districts, which are among the largest customers the bank has, expended the money it affected the bank’s balance sheet.
The affect on total assets and deposits was an aberration, Infante said.
For the quarter, total assets grew to $166.1 million, up 20 percent from a year ago. Deposits are up 23 percent from the second quarter of 2001, to $130.1 million.
Total loans saw the biggest increase from a year ago, growing 27 percent to $132.2 million.
Community Shores Bank, with two offices in the Muskegon area and one in Grand Haven, is presently seeking to expand market share within its existing branch network. Much of the growth is targeted for the Grand Haven-Spring Lake market, where the bank recently hired a new vice president of commercial lending, Ted Poulton, and a retail mortgage lender, and will add a second commercial lending officer soon.
The bank is also looking relocate its Grand Haven office to a larger facility, Infante said.
“It’s a big dedication of resources and it’s a big potential for us,” he said of the new emphasis placed on the Grand Haven-Spring Lake market.