Corus Bank, N.A operates as a wholly owned banking subsidiary of Corus Bankshares, Inc.  Corus Bank offers a variety of banking products and services including checking, savings, money market, certificates of deposit and loan originations.  Corus Bank has eleven banking branches in the Chicago area, offering deposit products to customers.  The bank’s loan origination activities include commercial real estate loans, condominium construction and conversion loans, residential real estate loans, and other commercial loans.  The bank is a nationwide construction lender, specializing in condominium, office, hotel, and apartment projects.  The company was founded in 1958 and is headquartered in Chicago, Illinois.

Corus Bank has been working in the commercial real estate lending business since nearly the time of the firm’s founding.  The commercial lending business has taken on an ever-growing importance for the bank over the last ten years, growing from 40% of the banks loan portfolio ten years ago, to virtually the entire loan portfolio as of year end 2007.  With a loan portfolio focused on loans to condominium developers, the bank is feeling the effects of the nationwide collapse in the housing market.  The slowdown in the housing market is impacting Corus Bank in terms of credit quality of loans on their books.

In the first half of 2008, we originated $1.2 billion of new loans. Corus did not originate any new loans in the third quarter.  Corus Bank reported a net loss for the 2008 third quarter of $128.0 million, down from net income of $35.5 million in the third quarter of 2007.  The year to date 2008 results were a net loss of $139.7 million, compared to net income of $104.3 million in 2007.

Practically all of Corus Banks funding comes from traditional deposit products.  These depositary accounts result from the bank’s national marketing of six- and twelve-month CDs and money market accounts to both individuals and businesses at competitive rates. By marketing its deposit products nationally, the bank attracts deposits without being limited to competing only in the very competitive Chicago market.

Corus Bank has followed this strategy of deposit base growth in lieu of opening branches.  While the bank pays relatively high interest rates, it can save money on the cost of the bricks and mortar and all of the expensive personnel costs of an extensive branch network.  Moreover, the bank has the ability to shrink deposits without the costs of closing branches as the funding needs of the bank prescribe.

As of September 30, 2008, Corus Bank’s capital totaled approximately $971 million, substantially greater than the regulatory requirement of $644 million for the bank to be categorized as well-capitalized.

Total deposits are $7.4 billion as of September 30, 2008, down just 3% since the beginning of the year.  During the month of September the bank opened more than 7,000 new accounts totaling over $387 million at an average balance of $55,000.  Total retail deposits at the bank at the end of third quarter consisted of more than 175,000 accounts.  Retail certificates of deposit totaled $5.029 billion in the third quarter and money market accounts totaled $1.680 billion.

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