CRE Issues Force Chicago Bank to Sign Regulatory Agreement

Corus Bankshares Inc. and its subsidiary Corus Bank NA, both of Chicago, have entered into a written agreement with the Federal Reserve Bank of Chicago and a consent order with the Office of the Comptroller of the Currency. Corus Bank is a nationwide construction lender, specializing in condominium, office, hotel, and apartment projects. These agreements include several requirements related to loan administration as well as procedures for managing the bank's growing portfolio of foreclosed real estate assets. "The regulatory agreements are the result of ongoing discussions between the OCC, the FRB and Corus' senior management over the last few months to address the negative impact that current market conditions are having on Corus and how best to resolve them. We believe the remedial measures agreed upon with the regulators are necessary to address asset quality deterioration and overall risk management," said Robert J. Glickman, president and chief executive. He added the company's board is actively exploring strategic alternatives, including a merger or capital infusion. Corus' outstanding commercial real estate loans and unfunded construction commitments total approximately $5.8 billion.