The embattled condo lender Corus Bankshares Inc. reported preliminary first-quarter results Friday that make its outlook seem increasingly dim.
In a Securities and Exchange Commission filing, the $7.7 billion-asset Chicago company said it lost $285 million, compared with earnings of $4.5 million a year earlier.
It attributed the loss to an increase in its provision, higher noninterest expenses and interest expenses that outpaced interest income.
The provision for loan losses soared 425% from a year earlier, to $193.3 million.
Nonperforming assets rose more than fivefold, to $2.5 billion at the end of the quarter, and made up roughly a third of Corus' assets. At least $500 million was other real estate owned.
As of March 31 the company's Corus Bank was undercapitalized: The bank's total risk-based capital ratio was 7.3%.
The bank has been operating under a written agreement with the Federal Reserve Board and a consent order with the Office of the Comptroller of the Currency.
Corus Bankshares said its board has formed a strategic planning committee and has hired an investment banker to seek strategic alternatives.
It warned that, given its noncompliance with the enforcement actions, its bank could fail.
