<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
- THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000
OR
_ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-6136
CORUS BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0823592
(State of incorporation of organization) (I.R.S. Employer Identification No.)
3959 N. Lincoln Ave., Chicago, Illinois 60613
(Address of principal executive offices) (Zip Code)
(773) 832-3088
(Registrant's telephone number)
Registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
--- ---
As of June 30, 2000, the Registrant had 14,305,440 common shares, $0.05 par
value, outstanding.
<PAGE> 2
Corus Bankshares, Inc.
Index to Quarterly Report on Form 10-Q
June 30, 2000
TABLE OF CONTENTS
PART I. -- FINANCIAL INFORMATION
ITEM 1.Financial Statements ............................................. 1-6
ITEM 2.Management's Discussion and Analysis of Financial Condition and
Results of Operations ......................................... 7-18
ITEM 3.Quantitative and Qualitative Disclosures about Market Risk ....... 19
PART II. -- OTHER INFORMATION
ITEM 1.Legal Proceedings ................................................ 20
ITEM 2.Changes in Securities and Use of Proceeds ........................ 20
ITEM 3.Defaults Upon Senior Securities .................................. 20
ITEM 4.Submission of Matters to a Vote of Security Holders .............. 20
ITEM 5.Other Information ................................................ 20
ITEM 6.Exhibits and Reports on Form 8-K ................................. 21
Signatures ....................................................... 22
Exhibit 11 - Computation of Net Income per Share ................. 23
Exhibit 15 - Report on Unaudited Interim Financial Information ... 24
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
CORUS BANKSHARES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30 December 31 June 30
(Dollars in thousands) 2000 1999 1999
---------- ---------- ----------
<S> <C> <C> <C>
Assets
Cash and due from banks - noninterest bearing $ 80,442 $ 72,316 $ 65,209
Federal funds sold overnight -- 45,700 36,750
Securities:
Available-for-sale, at fair value
(amortized costs of $500,112, $443,541 & $721,117) 531,008 487,243 793,891
Held-to-maturity, at amortized cost
(fair value of $6,538, $5,466 & $6,290) 6,479 5,387 6,157
---------- ---------- ----------
Total Securities 537,487 492,630 800,048
Loans, net of unearned discount 1,841,218 1,727,357 1,587,745
Less: Allowance for loan losses 32,129 32,090 35,464
---------- ---------- ----------
Net Loans 1,809,089 1,695,267 1,552,281
Premises and equipment, net 32,717 33,880 34,345
Accrued interest receivable and other assets 50,142 39,393 36,822
Goodwill, net of accumulated amortization 8,453 9,012 9,606
---------- ---------- ----------
Total Assets $2,518,330 $2,388,198 $2,535,061
========== ========== ==========
Liabilities & Shareholders' Equity
Deposits:
Noninterest-bearing $ 207,814 $ 198,163 $ 208,089
Interest-bearing 1,831,057 1,766,257 1,896,970
---------- ---------- ----------
Total Deposits 2,038,871 1,964,420 2,105,059
Other short-term borrowings 51,897 6,866 5,635
Federal Home Loan Bank advances 40,000 40,000 40,000
Accrued interest payable and other liabilities 43,911 49,087 49,920
---------- ---------- ----------
Total Liabilities 2,174,679 2,060,373 2,200,614
Shareholders' Equity
Common Stock, Surplus & Retained Earnings 323,570 299,419 287,144
Accumulated other comprehensive income 20,081 28,406 47,303
---------- ---------- ----------
Total Shareholders' Equity 343,651 327,825 334,447
---------- ---------- ----------
Total Liabilities and Shareholders' Equity $2,518,330 $2,388,198 $2,535,061
========== ========== ==========
</TABLE>
See accompanying notes.
1
<PAGE> 4
CORUS BANKSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
--------------------- ----------------------
(Dollars in thousands, except per share data) 2000 1999 2000 1999
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans:
Taxable $ 46,465 $ 38,871 $ 89,730 $ 77,398
Tax-advantaged 176 174 347 353
Deposits with banks -- 22 -- 81
Federal funds sold 394 579 1,271 1,013
Securities:
Taxable 7,129 8,185 12,534 15,734
Tax-advantaged 18 24 38 48
Dividends 1,263 1,106 2,522 2,192
Trading account -- 86 122 123
--------- -------- --------- ---------
Total Interest Income 55,445 49,047 106,564 96,942
Interest Expense
Deposits 25,046 22,292 48,254 44,014
Federal funds purchased 192 88 233 170
Short-term borrowing 42 30 82 46
Federal Home Loan Bank advances 632 506 1,243 1,014
--------- -------- --------- ---------
Total Interest Expense 25,912 22,916 49,812 45,244
Net Interest Income 29,533 26,131 56,752 51,698
Provision for Loan Losses -- 1,000 -- 2,000
--------- -------- --------- ---------
Net Interest Income after Provision for Loan Losses 29,533 25,131 56,752 49,698
Noninterest Income:
Service charges on deposit accounts 2,399 2,511 4,871 5,050
Trust and investment management services 519 486 1,113 1,025
Gain on dispositions of student loans -- 1,476 -- 3,055
Other income 671 581 1,189 1,285
Trading account losses, net (73) (166) (154) (233)
Securities and other financial
instruments gains, net 7,537 37 6,035 12
--------- -------- --------- ---------
Total noninterest income 11,053 4,925 13,054 10,194
Noninterest Expense:
Salaries and employee benefits 7,576 7,702 14,941 15,904
Net occupancy 1,036 1,015 1,975 2,053
Data processing 605 701 1,226 1,352
Goodwill amortization 287 338 574 779
Depreciation - Furniture & equipment 562 626 1,122 1,215
Other expenses 2,563 3,243 4,614 6,317
--------- -------- --------- ---------
Total noninterest expense 12,629 13,625 24,452 27,620
--------- -------- --------- ---------
Income before income taxes 27,957 16,431 45,354 32,272
Income tax expense 9,549 5,543 15,376 11,006
--------- -------- --------- ---------
Net Income $ 18,408 $ 10,888 $ 29,978 $ 21,266
Net Income per Share:
Basic $ 1.28 $ 0.75 $ 2.09 $ 1.47
Diluted $ 1.28 $ 0.74 $ 2.09 $ 1.45
Cash Dividends Declared Per Common Share $ 0.150 $ 0.145 $ 0.295 $ 0.285
Average Common Shares Outstanding
Basic 14,347 14,461 14,358 14,491
Diluted 14,363 14,623 14,373 14,657
</TABLE>
See accompanying notes.
2
<PAGE> 5
CORUS BANKSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30
----------------------
(Dollars in thousands) 2000 1999
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 29,978 $ 21,266
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses -- 2,000
Depreciation and amortization 1,731 1,661
Accretion of investment and loan discounts (4,160) (12,739)
Goodwill amortization 574 779
Gain on dispositions of student loans -- (3,055)
Securities and other financial instruments gains, net (6,035) (2,962)
(Increase) decrease in accrued interest receivable and other assets (8,259) 3,417
Decrease in accrued interest payable and other liabilities (692) (2,925)
--------- ---------
Net cash provided by operating activities 13,137 7,442
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of securities held-to-maturity 200 455
Proceeds from maturities of available-for-sale securities 232,989 546,290
Proceeds from sales of available-for-sale securities 34,271 13,115
Purchases of available-for-sale securities (315,496) (439,006)
Maturities of interest-bearing deposits with banks -- 13,000
Purchases of loans (5,963) (87,174)
Net (increase) decrease in loans (112,073) 51,723
Bad debt recoveries 2,290 899
Purchases of premises and equipment, net (568) (1,901)
Purchases of businesses (15) (385)
--------- ---------
Net cash (used in) provided by investing activities (164,365) 97,016
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposit accounts 74,451 (49,617)
Increase (decrease) in short-term borrowings 45,031 (19,298)
Retirements of common shares (1,597) (3,567)
Cash dividends paid on common shares (4,231) (4,068)
--------- ---------
Net cash provided by (used in) financing activities 113,654 (76,550)
--------- ---------
Net (decrease) increase in cash and cash equivalents (37,574) 27,908
Cash and cash equivalents at January 1 118,016 74,051
--------- ---------
Cash and cash equivalents at June 30 $ 80,442 $ 101,959
========= =========
</TABLE>
See accompanying notes.
3
<PAGE> 6
CORUS BANKSHARES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Other
Common Retained Comprehensive
(Dollars in thousands, except per share data) Stock Surplus Earnings Income Total
--------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1999 $ 718 $ 10,859 $ 287,842 $ 28,406 $ 327,825
Net income 29,978 29,978
Other comprehensive income (net of income taxes):
Net change in unrealized gains on available-
for-sale securities (8,324) (8,324)
---------
Comprehensive income 21,654
---------
Retirement of common shares (3) (48) (1,546) (1,597)
Cash dividends declared on common stock,
$0.295 per common share (4,231) (4,231)
--------- --------- --------- --------- ---------
Balance at June 30, 2000 $ 715 $ 10,811 $ 312,043 $ 20,082 $ 343,651
========= ========= ========= ========= =========
</TABLE>
CORUS BANKSHARES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Other
Common Retained Comprehensive
(Dollars in thousands, except per share data) Stock Surplus Earnings Income Total
--------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1998 $ 727 $ 4,065 $ 268,777 $ 44,561 $ 318,130
Net income 21,266 21,266
Other comprehensive income (net of income taxes):
Net change in unrealized gains on available-
for-sale securities 2,743 2,743
---------
Comprehensive income 24,009
---------
Retirement of common shares (6) (31) (3,530) (3,567)
Cash dividends declared on common stock,
$0.285 per common share (4,125) (4,125)
--------- --------- --------- --------- ---------
Balance at June 30, 1999 $ 721 $ 4,034 $ 282,388 $ 47,304 $ 334,447
========= ========= ========= ========= =========
</TABLE>
4
<PAGE> 7
CORUS BANKSHARES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Condensed Consolidated Financial Statements
The Condensed Consolidated Balance Sheets and Statements of Income, Cash
Flows and Changes in Shareholders' Equity are unaudited. The interim
financial statements reflect all adjustments (consisting only of normal
recurring accruals) that are, in the opinion of management, necessary for a
fair statement of the results for the interim periods presented. The
condensed consolidated financial statements should be read in conjunction
with the consolidated financial statements and notes thereto included in
Corus Bankshares, Inc.'s consolidated financial statements for the three
years ended December 31, 1999 included in Corus' Annual Report and Form
10-K for the year ended December 31, 1999. The results of operations for
the interim period should not be considered indicative of results to be
expected for the full year.
Certain reclassifications have been made in the 1999 financial statements
to conform to current accounting classifications.
2. New Accounting Standards
In June 1998, SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities" was issued effective for all fiscal periods beginning
after June 15, 1999. In June 1999, SFAS No. 137, "Accounting for Derivative
Instruments and Hedging Activities-Deferral of the Effective Date of SFAS
No. 133" was issued to amend SFAS No. 133 to be effective for all fiscal
years beginning after June 15, 2000. In June 2000, SFAS No. 138,
"Accounting for Certain Derivative Instruments and Certain Hedging
Activities" was issued further amending SFAS No. 133. SFAS No. 133 and SFAS
No. 138 establish accounting and reporting standards requiring that every
derivative instrument be recorded in the balance sheet as either an asset
or liability measured at its fair value. The statements require that
changes in the derivative's fair value be recognized currently in earnings
unless specific accounting criteria are met and the hedge is considered to
be highly effective. Special accounting for qualifying hedges allows a
derivative's gains and losses to offset related results on the hedged item
in the income statement, and requires that a company must formally
document, designate, and assess the effectiveness of transactions that
receive hedge accounting. Corus uses derivative instruments to manage
interest rate risk and market risk in its loan and common stock portfolios,
respectively. The statements are effective for Corus for the fiscal quarter
beginning January 1, 2001. Corus has not yet quantified the impact of
adopting these statements on its financial position or results of its
operations.
3. Segment Reporting
In 1998, Corus adopted SFAS No. 131 "Disclosures about Segments of an
Enterprise and Related Information". For purposes of this statement,
Management has determined that Corus Bankshares and Corus Bank are primary
operating segments within Corus. Corus Bank derives a significant portion
of its total revenues from interest income offering commercial, mortgage,
home equity, student and personal loans. It also provides general banking
services such as checking, savings, money market and time deposit accounts;
trust and investment management and a variety of other services. Corus Bank
is a wholly owned subsidiary of Corus Bankshares.
Transactions between the reportable segments are recorded on the reportable
segments' financial statements and significant inter-segment accounts and
transactions have been eliminated in the preparation of the consolidated
financial statements.
On the following page is a summary of significant segment information, as
required by SFAS No. 131:
5
<PAGE> 8
CORUS BANKSHARES, INC.
SIGNIFICANT SEGMENT INFORMATION
FOR THE THREE MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
Corus Corus Inter-segment Consolidated
(Dollars in thousands) Bankshares Bank Eliminations
---------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
INCOME STATEMENT DATA
Total Revenues (1) $ 21,579 $ 31,495 $ (12,488) $ 40,586
Net Income 18,408 12,488 (12,488) 18,408
AVERAGE BALANCE SHEET DATA
Total Assets 366,246 2,408,300 (202,741) 2,571,805
Shareholders' equity 341,120 184,416 (184,416) 341,120
</TABLE>
FOR THE THREE MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
Corus Corus Inter-segment Consolidated
(Dollars in thousands) Bankshares Bank Eliminations
---------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
INCOME STATEMENT DATA
Total Revenues (1) $ 11,365 $ 29,825 $ (10,134) $ 31,056
Net Income 10,888 10,134 (10,134) 10,888
AVERAGE BALANCE SHEET DATA
Total Assets 359,139 2,417,850 (169,370) 2,607,619
Shareholders' equity 328,232 164,002 (164,002) 328,232
</TABLE>
FOR THE SIX MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
Corus Corus Inter-segment Consolidated
(Dollars in thousands) Bankshares Bank Eliminations
---------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
INCOME STATEMENT DATA
Total Revenues (2) $ 33,093 $ 60,766 $ (24,053) $ 69,806
Net Income 29,978 24,053 (24,053) 29,978
AVERAGE BALANCE SHEET DATA
Total Assets 356,633 2,361,252 (194,693) 2,523,192
Shareholders' equity 332,953 179,197 (179,197) 332,953
</TABLE>
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
Corus Corus Inter-segment Consolidated
(Dollars in thousands) Bankshares Bank Eliminations
---------- ---------- ------------- ------------
<S> <C> <C> <C> <C>
INCOME STATEMENT DATA
Total Revenues (2) $ 22,264 $ 59,499 $ (19,871) $ 61,892
Net Income 21,266 19,871 (19,871) 21,266
AVERAGE BALANCE SHEET DATA
Total Assets 353,633 2,399,350 (166,631) 2,586,352
Shareholders' equity 323,749 161,586 (161,586) 323,749
</TABLE>
(1) Total revenues for Corus Bankshares include dividends received and equity in
undistributed net income from Corus Bank totaling $12.5 and $10.1 million for
the three months ended June 30, 2000 and 1999, respectively.
(2) Total revenues for Corus Bankshares include dividends received and equity in
undistributed net income from Corus Bank totaling $24.1 and $19.9 million for
the six months ended June 30, 2000 and 1999, respectively.
6
<PAGE> 9
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
OPERATING RESULTS
For the three months ended June 30, 2000, net income was $18.4 million, or
$1.28 per share on a diluted basis, an increase of 69.1% from net income of
$10.9 million, or $0.74 per share on a diluted basis, in 1999. For the six
months ended June 30, 2000, net income was $30.0 million, or $2.09 per
share on a diluted basis, an increase of 41.0% from net income of $21.3
million, or $1.45 per share on a diluted basis, in 1999.
Earnings for the second quarter of 2000 represented annualized returns of
21.6% on equity (ROE) and 2.9% on assets (ROA) compared to 13.0% and 1.7%
for the same period in 1999. Earnings for the six months ended June 30,
2000 represented annualized returns of 18.0% on equity (ROE) and 2.4% on
assets (ROA) compared to 13.1% and 1.6% for the same period in 1999.
Net Interest Income
The major source of earnings for Corus is net interest income, which is the
difference between interest income and fees on earning assets and interest
expense on deposits and borrowings. The related net interest margin
represents the net interest income as a percentage of the average earning
assets during the period.
During the three and six months ended June 30, 2000, Corus' net interest
margin increased, versus the prior year, by 67 and 58 basis points,
respectively. This increase was achieved in spite of significant reductions
in income earned from student loan curing profits. After adjustment for the
student loan curing profits, the net interest margin for the three and six
month periods ended June 30, 2000 improved by 94 and 80 basis points,
respectively, versus the prior year. This increase results partially from
the continuing trend to shift assets from lower margin temporary
investments to higher yielding loans. Additionally, Corus has more variable
rate assets than variable rate liabilities, which allows the company to
BENEFIT from the increase in interest rates year over year.
As discussed in prior quarters, the unusual student loan curing profits
resulted from several groups of purchased, previously nonperforming student
loans. The decrease in this student loan income had been expected and was
previously reported. Overall, the curing profits decreased to $223,000 and
$482,000 for the three and six month periods ended June 30, 2000, compared
to $1.9 million and $3.3 million for the same periods in 1999. The
following table shows the impact of the student loan curing profits on the
net interest margin:
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2000 1999 2000 1999
--------------------------------------
Net interest margin 4.95% 4.28% 4.86% 4.28%
Impact of student loan curing profits (0.04) (0.31) (0.04) (0.26)
--------------------------------------
Net interest margin without student loan
curing profits 4.91% 3.97% 4.82% 4.02%
======================================
7
<PAGE> 10
<TABLE>
<CAPTION>
AVERAGE BALANCE SHEETS AND NET INTEREST MARGIN (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED JUNE 30
-----------------------------------------------------------------------------
2000 1999
-------------------------------------- -------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/
(Dollars in thousands) BALANCE INTEREST COST BALANCE INTEREST COST
-------------------------------------------------- -------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Earning Assets:
Federal funds sold $ 25,805 $ 394 6.11% $ 49,224 $ 579 4.70%
Taxable securities other than common stocks 447,940 7,129 6.37% 643,750 8,189 5.09%
Common stocks (1) 162,882 1,739 4.27% 189,520 1,538 3.25%
Tax-advantaged securities (2) 1,558 28 7.19% 2,048 37 7.21%
Trading account securities -- -- -- % 7,521 86 4.60%
Loans, net of unearned discount (2) (3) (4) 1,796,991 46,737 10.40% 1,597,824 39,139 9.80%
-------------------------------------------------- ---------------------------- ---------------------------
Total earning assets 2,435,176 56,027 9.20% 2,489,887 49,568 7.96%
Noninterest-earning assets:
Cash and due from banks--noninterest bearing 74,919 68,711
Allowance for loan losses (31,273) (35,679)
Premises and equipment, net 33,164 34,156
Other assets, including goodwill 59,819 50,544
-------------------------------------------------- -------------------------------------- -------------------------------------
Total assets $ 2,571,805 $ 2,607,619
================================================== ====================================== =====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits -- interest-bearing:
NOW and money market deposits $ 1,046,821 $ 13,706 5.24% $ 990,449 $ 10,190 4.12%
Savings deposits 156,128 1,023 2.62% 169,273 1,115 2.64%
Time deposits 691,404 10,317 5.97% 793,114 10,987 5.54%
-------------------------------------------------- ---------------------------- ---------------------------
Total interest-bearing deposits 1,894,353 25,046 5.29% 1,952,836 22,292 4.57%
Short-term borrowings 14,087 234 6.64% 9,210 118 5.12%
Federal Home Loan Bank advances 40,000 632 6.32% 40,000 506 5.06%
-------------------------------------------------- ---------------------------- ---------------------------
Total interest-bearing liabilities 1,948,440 25,912 5.32% 2,002,046 22,916 4.58%
Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing deposits 227,731 218,684
Other liabilities 54,514 58,657
Shareholders' equity 341,120 328,232
-------------------------------------------------- -------------------------------------- -------------------------------------
Total liabilities and shareholders' equity $ 2,571,805 $ 2,607,619
================================================== ====================================== =====================================
Interest income/average earning assets $ 2,435,176 $ 56,027 9.20% $ 2,489,887 $ 49,568 7.96%
Interest expense/average interest-bearing liabilities 1,948,440 25,912 5.32% 2,002,046 22,916 4.58%
-------------------------------------------------- -------------------------------------- -------------------------------------
Net interest spread $ 30,115 3.88% $ 26,652 3.38%
================================================== ====================================== =====================================
Net interest margin 4.95% 4.28%
================================================== ====================================== =====================================
</TABLE>
(1) Dividends on the bank stock portfolio reflects a tax equivalent adjustment
for the 70% dividend received deduction.
(2) Interest income on tax-advantaged loans and securities reflects a tax
equivalent adjustment based on an income tax rate of 35%.
(3) Unremitted interest on nonaccrual loans is not included in the amounts.
(4) Includes net interest income derived from interest rate swap contracts.
8
<PAGE> 11
<TABLE>
<CAPTION>
AVERAGE BALANCE SHEETS AND NET INTEREST MARGIN (Unaudited)
==================================================================================================================================
SIX MONTHS ENDED JUNE 30
------------------------------------------------------------------------
2000 1999
----------------------------------- --------------------------------
AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/
(Dollars in thousands) BALANCE INTEREST COST BALANCE INTEREST COST
------------------------------------------------------ ---------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Earning Assets:
Interest-bearing deposits with banks $ -- $ -- -- % $ 2,011 $ 60 5.99%
Federal funds sold 43,609 1,271 5.83% 43,387 1,013 4.67%
Taxable securities other than common stocks 404,175 12,534 6.20% 618,259 15,742 5.09%
Common stocks (1) 161,423 3,473 4.30% 187,269 3,028 3.23%
Tax-advantaged securities (2) 1,557 58 7.45% 2,055 74 7.17%
Trading account securities 3,730 122 6.54% 5,402 123 4.57%
Loans, net of unearned discount (2) (3) (4) 1,770,319 90,264 10.20% 1,606,689 77,940 9.70%
------------------------------------------------------ -------------------------- -----------------------
Total earning assets 2,384,813 107,722 9.03% 2,465,072 97,981 7.95%
Noninterest-earning assets:
Cash and due from banks-noninterest bearing 82,758 72,506
Allowance for loan losses (31,591) (35,962)
Premises and equipment, net 33,427 34,138
Other assets, including goodwill 53,785 50,598
------------------------------------------------------ ------------------------------------- --------------------------------
Total assets $ 2,523,192 $ 2,586,352
====================================================== ===================================== ================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits -- interest-bearing:
NOW and money market deposits $ 1,029,295 $ 26,452 5.14% $ 999,944 $ 20,443 4.09%
Savings deposits 157,174 2,058 2.62% 169,330 2,218 2.62%
Time deposits 677,381 19,744 5.83% 771,252 21,354 5.54%
------------------------------------------------------ -------------------------- -----------------------
Total interest-bearing deposits 1,863,850 48,254 5.18% 1,940,526 44,015 4.54%
Short-term borrowings 9,829 315 6.41% 8,597 216 5.03%
Federal Home Loan Bank advances 40,000 1,243 6.22% 40,000 1,014 5.07%
------------------------------------------------------ -------------------------- -----------------------
Total interest-bearing liabilities 1,913,679 49,812 5.21% 1,989,123 45,244 4.55%
Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing deposits 223,769 216,562
Other liabilities 52,791 56,918
Shareholders' equity 332,953 323,749
------------------------------------------------------ ------------------------------------ --------------------------------
Total liabilities and shareholders' equity $ 2,523,192 $ 2,586,352
====================================================== ==================================== ================================
Interest income/average earning assets $ 2,384,813 $ 107,722 9.03% $ 2,465,072 $ 97,981 7.95%
Interest expense/average interest-bearing liabilities 1,913,679 49,812 5.21% 1,989,123 45,244 4.55%
------------------------------------------------------ ------------------------------------ --------------------------------
Net interest spread $ 57,910 3.82% $ 52,737 3.40%
====================================================== ==================================== ================================
Net interest margin 4.86% 4.28%
====================================================== ==================================== ================================
</TABLE>
(1) Dividends on the bank stock portfolio reflects a tax equivalent adjustment
for the 70% dividend received deduction.
(2) Interest income on tax-advantaged loans and securities reflects a tax
equivalent adjustment based on an income tax rate of 35%.
(3) Unremitted interest on nonaccrual loans is not included in the amounts.
(4) Includes net interest income derived from interest rate swap contracts.
9
<PAGE> 12
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Noninterest Income
For the three and six months ended June 30, 2000, noninterest income was $11.1
and $13.1 million, respectively, representing an increase of $6.1 and $2.9
million compared to the same periods in 1999. This change was driven almost
entirely by two items, the impact of gains attributable to the sales of
securities and the offsetting decline in noninterest student loan curing income.
In the second quarter of 2000, Corus realized a gain of $7.5 million from the
sale of a portion of the bank stock portfolio (see Common Stocks section below).
This second quarter gain, net with a first quarter loss, resulted in a
year-to-date gain of over $6.0 million. In comparison, for the six months ended
June 30, 1999, Corus realized net gains from the sale of common stocks of only
$12,000.
Conversely, during the first half of 2000, Corus has not recognized any student
loan curing income compared to $3.1 million in 1999. This income relates to
nonperforming student loans purchased at a substantial discount to face value.
Corus' practice of converting these loans to performing status and reinstating
their government guarantees is referred to as "curing," and has represented a
significant source of income to Corus over the past several years. As a result
of federal regulation, virtually all remaining curable loans lost their
eligibility to become cured on June 30, 1999 leaving minimal curing income for
2000 and beyond.
Excluding the impact of the gain on sale of stock and the change in curing
income, noninterest income was essentially flat versus the prior year.
Noninterest Expense
Total noninterest expense was favorable, compared to the prior year, for both
the three and six month periods ended June 30, 2000, with declines of 7.3% and
11.5%, respectively. These decreases were due, in part, to the impact of winding
down the student loan curing operation, which reduced expenses in salaries and
benefits as well as other administrative costs. Legal and professional fees were
also lower. Impacting the year-to-date change only, was the effect of the
partial reversal of the student loan settlement expense accrual in January 2000
and the write-off in the first quarter of 1999 of certain building and
improvement expenses.
10
<PAGE> 13
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
FINANCIAL CONDITION
Earning Assets
The following table details the composition of Corus' earning assets:
<TABLE>
<CAPTION>
JUNE 30, 2000 December 31, 1999 June 30, 1999
(Dollars in thousands) AMOUNT PERCENT Amount Percent Amount Percent
------------------------ ----------------------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Loans:
Commercial real estate:
Mortgage $ 585,559 25% $ 537,603 24% $ 541,181 22%
Construction 482,091 20 378,909 17 233,051 10
Student 452,288 19 443,074 19 431,144 18
Home equity 129,443 5 135,603 6 154,953 6
Commercial 91,623 4 117,021 5 90,838 4
Residential first mortgage 80,127 3 92,683 4 110,328 5
Medical finance & consumer 20,087 1 22,464 1 26,250 1
----------------------- ----------------------- -----------------------
Total loans 1,841,218 77 1,727,357 76 1,587,745 66
Securities other than common stocks 402,232 17 322,703 14 606,707 25
Common stocks 135,255 6 169,927 8 193,341 8
Federal funds sold -- -- 45,700 2 36,750 1
----------------------- ----------------------- -----------------------
Total $2,378,705 100% $2,265,687 100% $2,424,543 100%
======================= ======================= =======================
</TABLE>
11
<PAGE> 14
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Loans
The following table details the composition of Corus' loan portfolio:
<TABLE>
<CAPTION>
JUNE 30, 2000 December 31, 1999 June 30, 1999
(Dollars in thousands) AMOUNT PERCENT Amount Percent Amount Percent
------------------------ ------------------------ ------------------------
<S> <C> <C> <C> <C> <C> <C>
Loans:
Commercial real estate:
Mortgage $ 585,559 32% $ 537,603 31% $ 541,181 34%
Construction 482,091 26 378,909 22 233,051 15
Student 452,288 25 443,074 26 431,144 27
Home equity 129,443 7 135,603 8 154,953 10
Commercial 91,623 5 117,021 7 90,838 6
Residential first mortgage 80,127 4 92,683 5 110,328 7
Medical finance & consumer 20,087 1 22,464 1 26,250 1
----------------------- ----------------------- -----------------------
Total loans $1,841,218 100% $1,727,357 100% $1,587,745 100%
======================= ======================= =======================
</TABLE>
Commercial Real Estate Loans
The composition of the commercial real estate loan portfolio by type of
collateral securing the loan was as follows at June 30, 2000:
(Dollars in thousands)
Hotel/Motel $ 269,895
Rental apartments 163,767
Nursing homes 131,196
Condo/Loft conversion and other residential for sale 129,255
Office 122,936
Industrial 79,698
Retail 54,934
Other 115,969
----------
Total $1,067,650
==========
At June 30, 2000, 55% of the outstanding balances of commercial real estate
loans were secured by collateral located in the five-county Chicago metropolitan
area. The largest single concentration of outstanding balances outside this
area, 10%, is secured by collateral in California.
12
<PAGE> 15
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Large Commercial Real Estate Loans
For purposes of this analysis, "large" loan means any loan with a current
balance outstanding combined with any unfunded portion totaling $10 million or
greater. Corus had 42 separate "large" loans as of June 30, 2000.
The following table details the composition of the "large" loans in Corus'
commercial real estate portfolio:
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000 TOTAL "LARGE" REAL ESTATE LOANS
TOTAL --------------------------------------------------------------
COMMERCIAL AS A % OF TOTAL AVERAGE BALANCE
RE LOANS AMOUNT COMMERCIAL RE LOANS PER "LARGE" LOAN
(Dollars in thousands) ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Current Balance $ 1,067,650 $ 568,084
Unfunded Commitments 456,709 268,499
------------------------------
Total $ 1,524,359 $ 836,583 55% $ 19,919
==============================================================================
</TABLE>
The following table shows what portion of the large loans related to
construction lending:
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000 TOTAL "LARGE" CONSTRUCTION LOANS
--------------------------------------------
TOTAL "LARGE" AS A % OF TOTAL "LARGE"
(Dollars in thousands) REAL ESTATE LOANS AMOUNT REAL ESTATE LOANS
----------------------------------------------------------------------
<S> <C> <C>
Current Balance $ 568,084 $ 320,137
Unfunded Commitments 268,499 263,517
----------------------------------------
Total $ 836,583 $ 583,654 70%
=====================================================================
</TABLE>
Over the past several decades, the banking industry has shown higher delinquency
and loss rates for construction loans than for commercial real estate mortgage
loans.
The commercial real estate markets have been good for many years and Corus has
had particularly impressive results. Net charge-offs on Corus' commercial real
estate loans have totaled just $231,000 from 1989 through June 30, 2000. For the
six months ending June 30, 2000, Corus had net recoveries of $33,000. While our
commercial real estate portfolio continues to show minimal delinquencies and
virtually no losses, we recognize this sort of performance cannot persist
forever.
13
<PAGE> 16
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Securities Other Than Common Stocks
At June 30, 2000 total securities other than common stocks were $402 million, an
increase of $79 million, or 25%, compared with $323 million at December 31,
1999.
Common Stocks
At June 30, 2000, Corus had investments in the common stocks of 39 financial
industry companies totaling $135 million, including net unrealized gains of $37
million. These investments are included in the available-for-sale
classification. At June 30, 2000, the holdings by market capitalization were as
follows:
AMOUNT OF PERCENTAGE
MARKET CAPITALIZATION (dollars in thousands) HOLDINGS OF PORTFOLIO
-----------------------------------------------------------------------------
Over $10 billion $ 84,280 62%
Between $5 and $10 billion 10,310 8
Between $1 and $5 billion 24,122 18
Between $500 million and $1 billion 3,252 2
Under $500 million 13,291 10
---------------------
Total $135,255 100%
=====================
During the three and six months ended June 30, 2000, Corus received dividends on
the stock portfolio of $1.3 and $2.5 million, respectively, compared to $1.1 and
$2.2 million during the same period in 1999.
14
<PAGE> 17
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Nonperforming Assets
Nonperforming loans are nonaccrual loans, restructured loans and 90 days or more
past due loans still accruing interest. Overall, Corus' nonperforming assets
have decreased by over 40% versus the prior year. The declines are evident
across nearly all categories, as shown below:
-------------------------------------------------------------------------------
NONPERFORMING ASSETS
-------------------------------------------------------------------------------
JUNE 30 December 31 June 30
(Dollars in thousands) 2000 1999 1999
------------------------------------ -------------------------------
Nonperforming loans:
Residential first mortgage $ 4,006 $ 6,790 $ 9,515
Commercial real estate 2,708 1,852 3,139
Commercial 275 2,443 600
Home equity 881 766 1,176
Student 143 222 213
Medical finance 441 421 738
Consumer 44 54 64
-----------------------------
Total nonperforming loans 8,498 12,548 15,445
Other real estate owned 2,320 2,071 2,957
-----------------------------
Total nonperforming assets $10,818 $14,619 $18,402
=============================
Nonaccrual loans included in
nonperforming loans above $ 1,379 $ 2,529 $ 4,741
90 days or more past due loans included in
nonperforming loans above $ 6,793 $ 9,686 $10,197
Nonperforming loans/Total loans 0.46% 0.73% 0.97%
Nonperforming assets/Total assets 0.43% 0.61% 0.73%
Nonperforming residential first mortgage loans are secured by first mortgages on
primarily owner-occupied, residential property. At June 30, 2000, other real
estate owned was comprised of one commercial real estate property with an
aggregate book value of $132,000 and sixteen residential properties with
aggregate book values of $2.2 million. During the second quarter of 2000, Corus
sold six residential properties with aggregate book values of $808,000 for a net
gain of $121,000 and two commercial properties with aggregate book values of
$419,000 for a net gain of $80,000. There were also net writedowns on
residential properties during the second quarter totaling $36,000.
Excluded from the preceding table are student loans that Corus has no reason to
believe have lost their guarantee. Guaranteed student loans more than 90 days
past due and not included in the above nonperforming asset table totaled $21.1,
$21.9 and $15.3 million at June 30, 2000, December 31, 1999, and June 30, 1999,
respectively.
15
<PAGE> 18
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Allowance for Loan Losses
Management believes that the level of the allowance for loan losses was adequate
at June 30, 2000. A reconciliation of the activity in the allowance for loan
losses is as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
---------------------------------------------------------
(Dollars in thousands) 2000 1999 2000 1999
---------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at beginning of period $ 31,317 $ 35,258 $ 32,090 $ 35,773
Provision for loan losses -- 1,000 -- 2,000
Less charge-offs:
Commercial real estate loans -- -- -- 38
Student loans 50 438 123 1,141
Residential first mortgage loans -- 4 -- 86
Home equity loans 805 814 1,979 1,807
Commercial loans -- 22 116 72
Consumer loans 20 2 33 64
----------- ----------- ----------- -----------
Total charge-offs 875 1,280 2,251 3,208
----------- ----------- ----------- -----------
Add recoveries:
Commercial real estate loans 15 23 33 36
Student loans 1,253 91 1,274 137
Residential first mortgage loans -- -- -- 1
Home equity loans 401 337 942 676
Commercial loans -- 1 11 3
Consumer loans 18 34 30 46
----------- ----------- ----------- -----------
Total recoveries 1,687 486 2,290 899
----------- ----------- ----------- -----------
Net recoveries/(charge-offs) 812 (794) 39 (2,309)
----------- ----------- ----------- -----------
Balance at June 30 $ 32,129 $ 35,464 $ 32,129 $ 35,464
=========== =========== =========== ===========
Loans at June 30 $ 1,841,218 $ 1,587,746 $ 1,841,218 $ 1,587,746
=========== =========== =========== ===========
Allowance as a percentage of loans 1.74% 2.23% 1.74% 2.23%
=========== =========== =========== ===========
</TABLE>
Student Loan Settlement Recoveries
As of June 30, 2000, Corus has recovered $1.2 million of previously charged off
student loans. Overall, Corus estimates that it will be able to submit and
receive guarantee payments on between $10 million and $14 million of the $15.7
million of loans previously charged off. It is anticipated that the recoveries
will occur primarily in 2000, with the remainder of the recoveries in 2001.
16
<PAGE> 19
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
Liabilities
The following table details the composition of deposit products by type:
JUNE 30 December 31 June 30
2000 1999 1999
------------------------------------
Demand 10% 10% 10%
Savings 8 8 8
NOW 5 5 4
Money Market 45 45 42
Certificates of Deposit 32 32 36
------------------------------------
Total 100% 100% 100%
====================================
At June 30, 2000, December 31, 1999 and June 30, 1999, Corus had retail
certificates of deposit obtained from brokers of $284, $272 and $387 million,
respectively.
Capital
Corus' consolidated leverage ratio (Tier 1 capital/total average quarterly
assets) was 12.26% at June 30, 2000, well in excess of the minimum regulatory
level of 5.00%. The consolidated Tier 1 and total risk-based capital ratios were
15.85% and 17.94%, respectively, exceeding the minimum well-capitalized Tier 1
and total risk-based capital ratios of 6.00% and 10.00%, respectively.
17
<PAGE> 20
ITEM 2. - CORUS BANKSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
FORWARD-LOOKING STATEMENTS
This filing contains forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by, among other things, the use of
forward-looking terms such as "may," "intends," "expects," "anticipates,"
"estimates," "projects," "target," "forecasts" or "seeks" or the negative of
such terms or other variations on such terms or comparable terminology. By their
nature, these statements are subject to numerous uncertainties that could cause
actual results to differ materially from those in the statements. Important
factors that might cause Corus' actual results to differ materially include, but
are not limited to, the following:
- Federal and state legislative and regulatory developments;
- Changes in management's estimate of the adequacy of the allowance
for loan losses;
- Changes in the level and direction of loans and write-offs;
- Interest rate movements and their impact on customer behavior and
Corus' net interest margin;
- Changes in the overall mix of Corus' loan and deposit products;
- The impact of repricing and competitors' pricing initiatives on
loan and deposit products;
- Corus' ability to adapt successfully to technological changes to
meet customers' needs and developments in the marketplace;
- Corus' ability to access cost-effective funding; and
- The purchase of the second mortgage high-loan-to-value portfolio
and the capability of Corus to minimize loan delinquencies and
charge-offs of the acquired loans.
Corus undertakes no obligation to revise or update these forward-looking
statements to reflect events or circumstances after the date of this filing.
18
<PAGE> 21
ITEM 3. - CORUS BANKSHARES, INC.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
MARKET RISK MANAGEMENT
Corus' operations are subject to risk resulting from interest rate fluctuations
to the extent that there is a difference between the amount of interest-earning
assets and the amount of interest-bearing liabilities that are
prepaid/withdrawn, mature or reprice in specified periods. The principal
objective of Corus' asset/liability management activities is to provide maximum
levels of net interest income while maintaining acceptable levels of interest
rate and liquidity risk and facilitating funding requirements. Corus utilizes an
interest rate sensitivity model as the primary quantitative tool in measuring
the amount of interest rate risk that is present at the end of each quarter. The
model uses income simulation to quantify the effects of various interest rate
scenarios on the projected net interest income over a five-year period. Factored
into the modeling is the use of derivative financial instruments, including
interest rate swaps, floors and options. The indices of these derivatives
correlate to on-balance sheet instruments and modify net interest sensitivity to
levels deemed to be appropriate based on the current economic outlook.
Interest rate sensitivity as of June 30, 2000 is as follows:
Rate Shock Amount
--------------------------------------
(2.0)% (1.0)% 0.0 % 1.0 % 2.0 %
------ ------ ----- ----- -----
Percent change in net interest income
vs. constant rates (5.7)% (3.6)% -- 3.5% 6.1%
--------------------------------------
Overall, Corus' projected one-year sensitivity to interest rates has increased
since December 31, 1999. This increase is primarily the result of three factors.
First, market conditions resulted in changes in assumptions regarding
anticipated loan mix (fixed vs. variable). Second, the increase in interest
rates. Finally, certain interest rate floor contracts expired due to the passage
of time.
Corus is also exposed to price risk however that risk has not changed materially
since last reported in our latest annual 10K filing.
19
<PAGE> 22
CORUS BANKSHARES, INC.
PART II. OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS.
This item has been omitted from this Form 10-Q since it is inapplicable or would
contain a negative response.
ITEM 2: CHANGES IN SECURITIES AND USE OF PROCEEDS.
This item has been omitted from this Form 10-Q since it is inapplicable or would
contain a negative response.
ITEM 3: DEFAULTS UPON SENIOR SECURITIES.
This item has been omitted from this Form 10-Q since it is inapplicable or would
contain a negative response.
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a) The Annual Meeting of Shareholders was held on April 26, 2000.
(c) At the Annual Meeting of Shareholders the following matters were
submitted to a vote of the shareholders:
(1) The election of eight directors to the Board of Directors to
serve until the next annual meeting of shareholders or until
their successors are elected and take office:
Director Votes For Votes Withheld
-------- --------- --------------
Joseph C. Glickman 13,113,094 43,053
Robert J. Glickman 13,112,482 43,665
Steven D. Fifield 13,112,044 44,103
Karl H. Horn 13,100,728 55,419
Michael Levitt 13,113,094 43,053
Rodney D. Lubeznik 13,108,888 47,259
Michael Tang 13,106,938 49,209
William H. Wendt, III 13,025,212 130,935
(2) The ratification of the appointment of Arthur Andersen LLP as
Corus' independent accountants for the 2000 fiscal year:
Votes For Votes Against Abstentions
--------- ------------- -----------
13,136,544 8,596 11,005
ITEM 5: OTHER INFORMATION.
None.
20
<PAGE> 23
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
3a Amended and Restated Articles of Incorporation is incorporated herein by
reference to Exhibit 4.1 to the Form S-8 filing dated May 22, 1998;
3b By-Laws are incorporated herein by reference to Exhibit 4.2 to the Form S-8
filing dated May 22, 1998;
11 Computation of Net Income per Common Share.
15 Report on unaudited interim financial information.
27 Financial Data Schedule.
(b) Reports on Form 8-K.
None
21
<PAGE> 24
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CORUS BANKSHARES, INC.
(Registrant)
August 10, 2000 By: /s/ Michael E. Dulberg
------------------------------
Michael E. Dulberg
First Vice President and Chief
Accounting Officer
(Principal Accounting Officer
and duly authorized
Officer of Registrant)
22
