Banks Continue To Feel Pressure From Housing.

Rosemont, IL -- First-quarter performance for many lenders continues to reflect the challenges of managing credit weakness, resulting from exposure to the downturn in the residential real estate construction cycle.

Taylor Capital Group Inc. here, the holding company for Cole Taylor Bank, reported a net loss of $3.8 million for the quarter ended March 31, compared with net income of $5.3 million for the first quarter ended March 31, 2007.

The company's net loss was due in large part to an $11.8 million provision for loan losses as well as increased non-interest expense in comparison to prior periods. Taylor Capital hired 30 people and its commercial banking unit has nearly doubled in size since the beginning of this year.

"Talent is the key driver of sustainable growth and profitability, and the changing dynamics in the Chicago market have created a unique opportunity to accelerate growth in our commercial banking business," said Bruce Taylor, chairman and CEO. "The best investment we can make to build market share and long-term value is to expand our staff of high-quality, experienced commercial bankers."

Nonperforming asset expense increased $892,000 during the first quarter, primarily as a result of an $807,000 provision for losses on other real estate. In the first quarter, the company incurred early extinguishment of debt expense of $810,000 for unamortized debt costs relating to brokered certificates of deposit that were called by the company prior to their maturity.

In Honolulu, Central Pacific Financial Corp., parent company of Central Pacific Bank, reported net income for the first quarter of $1.7 ...