Capitol Bancorp Ltd. of Lansing, Mich., reported Thursday that its second-quarter earnings fell 39% from a year earlier, to $6.3 million. Diluted earnings per share fell 41%, to 37 cents.
Earnings per share were 4 cents short of the average analyst estimate as reported by Thomson Financial. Related Links
For the six months that ended June 30, Capitol reported earnings of $12.6 million, off 38% from last year's first half. Earnings per share fell 41%, to 73 cents.
The $4.4 billion-asset company attributed its lower profit to the sluggish economy in its Great Lakes region. Capitol is the holding company for 56 community banks throughout the country, including 19 in the Great Lakes states Michigan, Ohio, Illinois, and Indiana.
Capitol's net interest income after loan-loss provisions rose 2% for the quarter, to $41.6 million, and 3% for the half, to $82.3 million. Its provision for loan losses was up 42% for the quarter, to $4 million. For the half the loan-loss provision rose 50%, to 7.9 million. Noninterest income rose 7% for the quarter, to $5.8 million.
