CommunitySouth Financial has reported a net loss for the second quarter ended June 30, 2008 of $1.4 billion, or $0.30 per diluted share, versus a net income of $462,129, or $0.09 per diluted share for the same period in 2007.
CommunitySouth has attributed this loss to an additional $2.5 million increase to the allowance for loan losses for potential loan losses in a residential development on Lake Keowee in Seneca, South Carolina.
Net interest income for the period decreased approximately $137,000, or 5.53%, from the comparable period in the prior year. For the quarter, net interest margin was 2.54% as against 3.49% in the 2007 second quarter.
Total loans were $315.8 million, representing an increase of 19.66% over the previous year quarter. Likewise, total deposits improved 7.03% to $307.8 million from the same quarter in 2007.
Net loss for the first six months of 2008 totaled $1.05 billion, or $0.22 per diluted share, as against a net income of $670,501, or $0.13 per diluted share for the corresponding period in 2007.