CORUS BANKSHARES, INC. 
By
The preliminary results do not include potential entries that could arise
from subsequent adjustments relating to our commercial real estate loan
portfolio. While we have completed internal assessments on the bulk of our
portfolio, we have ordered, but not yet received, several appraisals. The
appraisals are used as a basis for determining the value of the underlying
collateral of our loans and significant variations between our internal
assessments and the appraisals could have a material impact on our financial
results. Additionally, to the extent that prior to filing our Annual Report
on Form 10-K, a borrower's condition deteriorates such that the associated
loan becomes impaired, under Generally Accepted Accounting Principles, Corus
may be required to recognize the impairment as of
Any subsequent adjustments could impact 1) the provision for credit losses 2) the amount of interest income reported (if we determine that additional loans should be placed on nonaccrual), 3) loans charged off, and 4) the resulting balance in loans outstanding and the Allowance for Credit Losses.
The information contained in this press release is limited to a balance
sheet and income statement for Corus Bankshares, Inc. Additional details,
however, can be found in the Call Report filed today by Corus' subsidiary
bank,
Overview
Corus is suffering from the extraordinary effects of what may ultimately
be the worst economic downturn since the Great Depression. The effects of the
current environment are being felt across many industries with financial
services and residential real estate being particularly hard hit. The effects
of the downturn have been particularly acute during the last 90-180 days of
2008. Corus, with a portfolio consisting primarily of condominium
construction loans, many in the hard hit areas of
Capital
In spite of the current year losses, with total capital of
Corus had always recognized that a severe downturn in the residential real estate markets was a possible, if not likely, occurrence and we attempted to position ourselves accordingly. While we had planned for the possibility of such a downturn, and the associated nonaccrual loans and provisions for credit losses, in our corporate planning, the current housing calamity is worse than even the "severe downturn" for which we had planned.
Nonaccrual Loans & Credit Loss Reserves
Nonaccrual loans have grown to
The decline in value associated with the collateral supporting Corus'
commercial real estate loans resulted in a significant provision for credit
losses and high levels of charge-offs. For the three and twelve months ended
TARP Funds
In an attempt to address the issues many banks are facing, the U.S.
Treasury Department has made funds available to certain banks under its
Troubled Asset Relief Program Capital Purchase Program (the "Program"). As
previously disclosed, the Company submitted its application for funds under
the Program on
Corus Bankshares, Inc. ("Corus" or the "Company") is a bank holding
company headquartered in
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by, among other things, the use of forward-looking terms such as "likely," "typically," "may," "intends," "expects," "believes," "anticipates," "estimates," "projects," "targets," "forecasts," "seeks," "potential," "hopeful," or "attempts" or the negative of such terms or other variations on such terms or comparable terminology. By their nature, these statements are subject to risks, uncertainties and other factors, which could cause actual future results to differ materially from those results expressed or implied by such forward-looking statements.
Do not unduly rely on forward-looking statements. They give Corus'
expectations about the future and are not guarantees. Forward-looking
statements speak only as of the date they are made, and, except as required by
law, Corus does not intend to update them to reflect changes that occur after
that date. For a discussion of factors that may cause actual results to differ
from expectations, refer to Corus' filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
Condensed Consolidated Balance Sheets (Unaudited)
December 31 December 31
(Dollars in thousands) 2008* 2007
Assets
Cash and due from banks -
noninterest-bearing $67,633 $76,707
Interest-bearing deposits with the
Federal Reserve 141,036 -
Federal funds sold 100,000 586,500
Cash and Cash Equivalents 308,669 663,207
Time deposits with banks 1,930,918 -
Securities:
Available-for-sale, at fair value:
U.S. Government agencies 1,634,014 3,618,265
Equity securities - 135,981
Other securities 2,839 4,492
Total Securities 1,636,853 3,758,738
Loans, net of unearned income 4,094,273 4,409,387
Less: Allowance for loan losses 258,097 70,992
Loans, net 3,836,176 4,338,395
Other real estate owned 408,987 36,951
Accrued interest receivable 34,706 34,550
Premises and equipment, net 33,284 26,875
Other assets 219,974 67,861
Total Assets $8,409,567 $8,926,577
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Interest-bearing $7,384,427 $7,365,205
Noninterest-bearing 208,033 254,477
Total Deposits 7,592,460 7,619,682
Subordinated debentures relating to
Trust Preferred Securities 409,414 404,647
Other borrowings 725 54,945
Accrued interest payable 12,892 17,257
Dividends payable - 13,761
Other liabilities 55,432 26,888
Total Liabilities 8,070,923 8,137,180
Shareholders' Equity:
Common stock, surplus, and retained
earnings 339,350 768,984
Accumulated other comprehensive
income / (loss) (706) 20,413
Total Shareholders' Equity 338,644 789,397
Total Liabilities and Shareholders'
Equity $8,409,567 $8,926,577
* Preliminary
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended Twelve Months Ended
(In thousands, except per-share December 31 December 31
data) 2008* 2007 2008* 2007
Interest, Points and Fees, and
Dividend Income:
Interest, points and fees on
loans $49,934 $107,239 $308,623 $446,221
Federal funds sold 160 3,107 7,868 15,479
Interest-bearing deposits with
the Federal Reserve 300 - 300 -
Time deposits with banks 17,713 - 46,580 -
Securities:
Interest 10,220 52,001 74,875 247,866
Dividends - 1,855 1,320 6,891
Total Interest, Points and
Fees, and Dividend Income 78,327 164,202 439,566 716,457
Interest Expense:
Deposits 73,280 93,845 315,052 394,896
Subordinated debentures relating
to Trust Preferred Securities 5,510 8,068 23,106 30,941
Other borrowings 1 959 1,487 4,163
Total Interest Expense 78,791 102,872 339,645 430,000
Net Interest Income/(Loss) (464) 61,330 99,921 286,457
Provision for credit losses 310,000 33,500 587,500 66,000
Net Interest Income/(Loss)
after Provision for Credit
Losses (310,464) 27,830 (487,579) 220,457
Noninterest Income:
Securities gains/(losses), net - (4,082) 26,087 4,673
Service charges on deposit
accounts 2,223 2,458 9,200 10,114
Other income 863 961 3,611 3,851
Total Noninterest Income 3,086 (663) 38,898 18,638
Noninterest Expense:
Employee compensation and
benefits 4,298 11,065 23,254 44,508
Other real estate owned and
protective advances 8,970 698 15,507 2,652
Insurance - FDIC 2,121 1,498 7,337 3,389
Net occupancy 1,506 1,131 5,697 4,463
Depreciation - furniture and
equipment 726 575 2,237 2,010
Data processing 442 603 1,827 2,373
Goodwill impairment - 4,523 - 4,523
Other expenses 4,592 2,913 14,739 11,656
Total Noninterest Expense 22,655 23,006 70,598 75,574
Income/(Loss) Before Income
Taxes (330,033) 4,161 (519,279) 163,521
Income tax expense/(benefit) (69,327) 2,237 (118,895) 57,317
Net Income/(Loss) $(260,706) $1,924 $(400,384) $106,204
Net Income/(Loss) Per Common
Share:
Basic $(4.85) $0.03 $(7.38) $1.89
Diluted $(4.85) $0.03 $(7.38) $1.85
Weighted Average Common and
Common Equivalent Shares
Outstanding 53,711 56,471 54,261 57,265
* Preliminary
SOURCE Corus Bankshares, Inc.
