Corus Bancshares Inc. in Chicago said Thursday that third-quarter profit fell by 31%, to $35.5 million, from the year earlier as the condominium market cooled.
Earnings per share also fell 31%, to 61 cents, a penny below the average of analysts' estimates compiled by Thomson Financial. Still, Corus' shares rose 9.6% Thursday, to $11. Its shares had fallen nearly 30% in the two preceding weeks.
The $9.3 billion-asset Corus specializes in condominium construction, conversion, and inventory loans. Nonaccrual loans at the end of the quarter totaled $199 million, up from $36 million the year before. The company also said it charged off $15 million in its condominium conversion portfolio, its first-ever condominium-related chargeoff.
Corus originated $773 million of condominium construction loans in the quarter, up significantly from the previous two quarters. Robert J. Glickman, its CEO, said that he expects Corus to make $2 billion to $2.5 billion of such loans this year.
