Corus Bankshares Receives Going-concern Notice

CHICAGO (AP) — Corus Bankshares Inc. said Tuesday its audited financial statements for the fiscal year included in the company's annual report contained a going-concern qualification from its accountants.

The announcement is required by Nasdaq rules, which require separate disclosure of receipt of an audit opinion containing a going-concern qualification.

A going-concern qualification refers to the auditor's assessment of a company's ability to continue to operate for the foreseeable future.

In February, the bank said losses on condominium construction loans was forcing it to seek out new sources of capital in a housing market that has performed worse than the company expected.

Agreements with the Federal Reserve Bank of Chicago and a related consent order with the Office of the Comptroller of the Currency set minimum capital levels for Corus and its banking unit. The agreements subject Corus to limits on the maximum interest rate it could pay on deposits and restrictions on paying dividends or making capital distributions. They also include several requirements related to load administration as well as procedures for managing the bank's growing portfolio of foreclosed real estate assets.