Corus Bankshares Inc. in Chicago reported its first-ever quarterly loss as credit quality continued to weaken during the second quarter in its condominium development-heavy loan portfolio.
The $9 billion-asset company said late Monday that it lost $16.2 million, or 30 cents per share, compared with earnings of $42.4 million, or 74 cents per share, a year earlier. For the quarter, the company reported a $58.5 million provision for loan losses, up 387.5% from a year earlier. Nonperforming assets totaled $858.3 million, up 254%.
With demand for condominiums softening, Corus said it is focusing more on office real estate lending. Nearly half the $1.2 billion of loans originated in the first half were for office projects, the company said. It is also requiring developers to put up more of their own money. The average loan-to-value ratio of development loans through the first half was 66%, compared to 75% the year earlier.
