Corus Reports 1st-Ever Quarterly Loss

Corus Bankshares Inc., a Chicago-based construction lender, has reported a net loss of $16.2 million ($0.30 per share) for the second quarter, its first-ever quarterly loss. The company reported net income of $42.4 million ($0.74 per share) in the second quarter of 2007. Corus said the housing slump and the company's focus on condominium construction lending have resulted in "significant increases" in nonaccrual loans and loan loss provisions. "Credit quality issues, the driver behind the company's moves to increase its loan loss reserves, resulted in substantial increases in nonperforming loans, with nonaccrual commercial real estate loans growing to $830 million at June 30, 2008, up from $420 million at March 31, 2008, and $201 million at June 30, 2007," said Robert J. Glickman, president and chief executive officer of Corus. Mr. Glickman said the company is "seeing new opportunities in the office, apartment, and hotel markets," where it expects to see "a considerable portion of our near-term originations." He said Corus is "not contemplating any major changes" in its business model.