EXHIBIT 13

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TABLE ofCONTENTS

|FINANCIAL HIGHLIGHTS                                                                 |  | 1                 
|------------------------------------------------------------------------------------ |  | ------------------
|A LETTER TO OUR SHAREHOLDERS                                                         |  | 2                 
|CONSOLIDATED BALANCESHEETS                                                           |  | 8                 
|CONSOLIDATEDSTATEMENTS OF INCOME                                                     |  | 9                 
|CONSOLIDATEDSTATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY                            |  | 10                
|CONSOLIDATED STATEMENTS   OF CASH FLOWS                                              |  | 11                
|NOTES TO CONSOLIDATEDFINANCIALSTATEMENTS                                             |  | 12                
|REPORTS OF INDEPENDENT REGISTEREDPUBLIC ACCOUNTING   FIRM                            |  | 40                
|MANAGEMENTS REPORT ONINTERNAL CONTROL   OVER FINANCIAL   REPORTING                  |  | 42                
|MANAGEMENTS DISCUSSION ANDANALYSIS OFFINANCIAL CONDITION ANDRESULTS OF   OPERATIONS |  | 43                
|SUPPLEMENTAL FINANCIAL DATA:   10 -YEAR HISTORY                                      |  | 72                
|PERFORMANCE GRAPH                                                                    |  | 74                
|DIRECTORS ANDEXECUTIVE OFFICERS                                                      |  | 75                
|SENIOR OFFICERS                                                                      |  | 76                
|SHAREHOLDER INFORMATION                                                              |  | INSIDEBACK   COVER

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FINANCIAL HIGHLIGHTS

|YEARS ENDED DECEMBER 31                         |  |   | 2006       |   |   | 2005      |   |   | 2004      |  
|----------------------------------------------- |  | - | ---------- | - | - | --------- | - | - | --------- | -
|                                                |  |   |            |   |   |           |   |   |           |  
|(dollars in thousands, except per share data)   |  |   |            |   |   |           |   |   |           |  
|BALANCE   SHEET SUMMARY                         |  |   |            |   |   |           |   |   |           |  
|Assets                                          |  | $ | 10,057,791 |   | $ | 8,458,740 |   | $ | 5,017,787 |  
|Deposits                                        |  |   | 8,704,675  |   |   | 7,265,829 |   |   | 4,096,816 |  
|Loans,   net                                    |  |   | 4,096,686  |   |   | 4,484,771 |   |   | 2,760,946 |  
|Common   shareholders equity                   |  |   | 844,527    |   |   | 689,775   |   |   | 599,591   |  
|                                                |  |   |            |   |   |           |   |   |           |  
|INCOME   STATEMENT SUMMARY                      |  |   |            |   |   |           |   |   |           |  
|Net   interest income                           |  | $ | 341,901    |   | $ | 249,658   |   | $ | 151,464   |  
|Net   income                                    |  |   | 189,444    |   |   | 137,229   |   |   | 97,939    |  
|Cash   dividends paid to common shareholders    |  |   | 46,139     |   |   | 37,921    |   |   | 33,140    |  
|                                                |  |   |            |   |   |           |   |   |           |  
|PER SHARE   DATA (1)                            |  |   |            |   |   |           |   |   |           |  
|Diluted   earnings                              |  | $ | 3.28       |   | $ | 2.38      |   | $ | 1.70      |  
|Cash   dividends paid                           |  |   | 0.83       |   |   | 0.68      |   |   | 0.59      |  
|Book   value at year-end                        |  |   | 15.01      |   |   | 12.35     |   |   | 10.79     |  
|Market   value at year-end                      |  |   | 23.07      |   |   | 28.14     |   |   | 24.01     |  
|                                                |  |   |            |   |   |           |   |   |           |  
|FINANCIAL   RATIOS                              |  |   |            |   |   |           |   |   |           |  
|Return   on average common shareholders equity |  |   | 25.0       | % |   | 21.8      | % |   | 17.4      | %
|Return   on average assets                      |  |   | 2.0        | % |   | 2.1       | % |   | 2.4       | %
|Efficiency   ratio                              |  |   | 18.4       | % |   | 22.9      | % |   | 33.5      | %
|                                                |  |   |            |   |   |           |   |   |           |  

|                                                                                 
|---------------------------------------------------------------------------------
|(1)
All amounts have been restated to reflect a 2-for-1 stock   split on 5/18/06.

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 1
|------------------------------------- | -

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A LETTER toOUR SHAREHOLDERS

We are very pleased to report 2006 net income of $189 million, or $3.28 per diluted share. Not only were 2006 earnings a record, they were a 38% increase over 2005 earnings of  $137 million (which were themselves record earnings).

Among the many 2006 records:

| | Total   deposits grew to $8.7 billion at December 31, 2006, a $1.4 billion increase   from December 31, 2005.                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                         
| | Total   shareholders equity climbed to $845 million at December 31, 2006, an   increase of $155 million from December 31, 2005  a 22% growth rate even   after declaring $50 million in dividends to our shareholders.
|  |                                                                                                                                                                                                                         
| | Total assets   grew to $10.1 billion at December 31, 2006  a threshold that elevates Corus   to among the 100 largest banking companies in the United States.                                                          
|  |                                                                                                                                                                                                                         
| | An   efficiency ratio of less than 19%. In this measure, lower is better, and   Corus 2006 results make it one of the most efficient large banking companies   in the country.                                         
|  |                                                                                                                                                                                                                         
| | A return on   shareholders equity of 25%.                                                                                                                                                                              

On the other hand, several important measures of our business showed decreases as compared to 2005.

| | Commercial   real estate loan originations were strong in 2006 at $3.9 billion, but this   was down 28% from the $5.4 billion figure in 2005. Management attributes the   decrease in originations to increased competition from other lenders and a   slowdown in the condominium market.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                           
| | Commercial   real estate loan balances outstanding decreased to $4.1 billion at December   31, 2006, a decrease of $329 million, or 7%, from the $4.4 billion balance at   December 31, 2005.                                                                                             
|  |                                                                                                                                                                                                                                                                                           
| | As of   year-end 2006, our pipeline of pending commercial real estate loans stood   at approximately $4 billion, which is a 39% decrease from one year ago.                                                                                                                             

The company is taking all appropriate steps to increase the volume of business, but time will tell how successful we will be and much of the results are probably outside our control. While we will probably get more competitive in the terms we offer our customers, it is hard to predict how our competitors will react. Secondly, if the condominium markets are such that our customers dont think that they can make money by developing condominium projects, then our loan terms wont induce them to undertake a new project.

|2 | CORUS BANKSHARES 2006   ANNUAL REPORT
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COMMERCIAL REAL ESTATE LENDING BUSINESS

Corus has been active in the commercial real estate lending business since virtually our firms founding. This business has taken on an ever-growing importance for our company over the last ten years, growing from 40% of our loan portfolio ten years ago, to over 98% as of year-end 2006. Notwithstanding the slowdown in loan originations in 2006, we continue to be very pleased with our focus on commercial real estate lending.

Unorthodox StrategiesOver the last few years, we have discussed the various unorthodox strategies we have pursued in our commercial real estate lending business. As it is critical for shareholders to understand our lending approach, and as these strategies evolve over time, we again present this overview.

First, investing such a large portion of a banks assets in condominium construction and conversion loans is unusual in the banking industry and would commonly be considered a concentration of risk. While we understand this approach brings with it certain risks, we feel that it is important to focus on the business that we know best and we are still pleased with the risk-reward ratios that we perceive in this business.

Second, Corus
has been originating increasingly larger commercial real estate loans. We
actively use our legal lending limit, and we further supplement this with loans
participated to the holding company. This allows Corus to make and keep in its
portfolio loans as large as $200 million, which is unusual for a bank of our
size or, for that matter, a bank of any size. While our commercial real estate
portfolio was made up of approximately 165 loans at December 31, 2006, the 50
largest loans averaged $109 million and made up 65% of our
total

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 3
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A LETTER to  OUR SHAREHOLDERS (continued)

loan portfolio. We believe that concentrating on larger loans has various important benefits, such as:

| | Greater   involvement of senior management in each and every loan,                                                                                                                                  
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                     
| | Better risk   characteristics  such as developer expertise (which is generally higher in   larger projects than smaller projects), better architects, and more qualified   general contractors, and
|  |                                                                                                                                                                                                     
| | Less   competition from other banks for these larger loans.                                                                                                                                         

Third, it is unusual for a bank our size to lend nationwide. Over 95% of our total loan commitments are secured by properties outside of Illinois. We believe this geographic distribution provides us with an important form of diversification and reduces the risk associated with our commercial real estate loan concentrations. We think of our exposure by metropolitan area, rather than by state. For example, we think that the market dynamics of supply and demand are sufficiently different in San Francisco and San Diego that we keep track of them separately. Using this methodology, our highest concentration is in Miami/Southeast Florida, which held 24% of our loan portfolio at December 31, 2006. Las Vegas held 10%, Los Angeles and New York City each held 9%.

Fourth, we
have instituted a unique commission-based compensation program for the
commercial real estate loan officers. The purpose of the program is to reward
commercial loan officers for originating new loans and the size of the
commissions are based on the amount of interest and fees earned on those loans.
An additional, and critical, aspect of this compensation program is that
officers share in the risk of loss on the loans they generate. Generally, a
substantial portion of officers commissions may be held back for up to
nine years and are at risk of loss in the event the Company suffers a loss on
the loan. The total value of those held back commissions was nearly $25 million
at year-end 2006.This motivates our officers to make safe loans and it aligns
the officers and Banks interests very closely. The program can be
highly lucrative for the officers  the aggregate 2006 commissions for our
10 highest paid loan officers was $9.6 million. In order to manage the risks
posed by such an arrangement, Robert Glickman, who is not in this commission
program and who is a major shareholder, approves virtually every commercial real
estate loan.

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|4 | CORUS BANKSHARES 2006   ANNUAL REPORT
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Residential Real Estate Market & Potential RisksIt should be no surprise that Corus, with a loan portfolio invested almost exclusively in loans to condominium developers, is feeling the effects of the nationwide slowdown in the housing market. The 39% decrease in our pipeline of pending loans, as compared to December 31, 2005, provides evidence of this slowdown. Aside from the effects on our new loan origination volumes, the slowdown in the housing market is also impacting Corus in terms of credit quality of loans already on our books. We have seen various projects that are experiencing slower sales of condominium units and/or lower prices than the developer or we would like. While construction projects are clearly not immune to the forces of the slowdown, conversion projects are displaying more obvious signs of weakness. We have had numerous loans that have experienced meaningful problems, but in most cases, the borrowers or their financial backers
(usually the Mezzanine Lenders in the projects) have stepped up to the plate and invested additional dollars, signed financial guarantees or taken other actions that have strengthened the loan from our perspective.

We will not hesitate to foreclose if a borrower does not support a loan that is in distress. In general, we would not agree to a workout if a borrower approaches us with the attitude that we should leave him in control of the project and give him all of the upside if the market turns around, but leaves the Bank to take all of the downside risk. We believe that our loans were conservatively underwritten, leaving room for our loan amounts to increase or the collateral values to decrease and still have the Bank get repaid in full.

With all of this discussion of slowing loan volume and potential credit problems, we would like to reiterate that we do, nonetheless, continue to see good opportunities for new loans in the condominium construction market. We continue to believe that many profitable opportunities, for both the Bank and its customers, exist in many cities across the country to build and develop condominium projects. While other lenders may be afraid of the condominium construction market, this helps us by limiting competition.

DEPOSITS

With respect to funding our loan business,
virtually all of Corus funding comes from traditional deposit products.
Deposits continued to grow in 2006, resulting in net growth of $1.4 billion for
the year. The growth is primarily attributable to growth in retail certificates
of deposit (CDs) and is the direct result of the Banks
national marketing of six- and twelve-month CDs to both individuals and
businesses at competitive rates. The response to this program, which was
introduced in April 2004, continues to be strong both locally and across the
country. Corus has pursued this strategy in lieu of opening branches. While we
pay relatively high interest rates, we save money on the cost of the bricks and
mortar and all of the expensive personnel costs of an extensive branch
network.

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 5
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A LETTER toOUR  SHAREHOLDERS (continued)

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The retention of existing deposits continues to be a focus of the Bank. While the results to-date have been strong, there are no guarantees that account retention will remain high over the long term.

At December 31, 2006, approximately 62% of the Banks $8.4 billion in retail deposits (excluding brokered deposits) were sourced from outside of Illinois. By marketing its deposit products nationally, the Bank is able to attract deposits without being limited to competing solely in the very competitive Chicago market. Total retail deposits consisted of nearly 200,000 accounts.

While banks have always coveted deposits, the last few years have witnessed a significant increase in the competition for deposits. We have therefore been all that much more fortunate to be able to grow our deposits so substantially over the past several years. Total retail deposits jumped to $8.4 billion at December 31, 2006, up almost four-times from the $2.2 billion at December 31, 2003.

FINANCIAL STRENGTH

While financial strength is the culmination of many factors, two of the most critical for banks are capital and liquidity. In both regards, Corus is very well situated.

CapitalMaintaining a solid capital base has been one of our guiding principles for many years. Towards that end, we have established an internal capital goal for Corus Bank that significantly exceeds the levels required by the Banks regulators. Our internal goal is the sum of: (1) the amount required to meet the regulatory definition of well capitalized (the highest rating possible), plus (2) a cushion to that regulatory threshold.

|6 | CORUS BANKSHARES 2006   ANNUAL REPORT
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The Banks capital (which is simply bank equity plus loan loss reserves) at December 31, 2006, totaled $1.0 billion. The amount required to meet the regulatory definition of well capitalized was $700 million, and therefore, our cushion was $300 million. We are operating our bank with literally hundreds of millions of dollars above and beyond the levels required to meet the highest regulatory requirement.

LiquidityBanks must stand ready at all times to meet depositors withdrawal requests and to fund disbursements under outstanding loan commitments. In order to have cash available at all times for these needs, the Bank maintains very high levels of liquid investments  over $5.0 billion at yearend 2006. At year-end 2006, Corus kept these investments primarily in U.S. Government and agency securities with 6-month maturities. It is important to note that virtually none of these liquid investments are pledged as collateral for any borrowings of the Bank or in any way encumbered and they are fully available for any liquidity needs.

In regard to thinking about liquidity needs, construction loans, which are a significant part of our business, tend to start with very low balances and thus bring about large unfunded commitments. Our commitments on commercial real estate construction loans are intended to be, and in fact must be (if the borrower is to complete the project), drawn down. We thus expect to fund 100% of these committed amounts and generally expect these fundings to take place over the next two to three years. As of December 31, 2006, Corus had total unfunded loan commitments of about $4.3 billion. Loan paydowns/payoffs work in the opposite direction, acting as a source of future funding. (For further information on this topic, please refer to the Liquidity and Capital Resources section in the Managements Discussion and Analysis section of this annual report.)

THANKS TO OUR PARTNERS

For our shareholders, we wish to thank you for the confidence you have displayed by buying and holding our stock. We think of you as our partners and pledge to treat you with respect and work hard to make your investment worthwhile. For our customers, we wish to thank you for your past business and we look forward to a long future with you. For our officers and employees, we sincerely thank you for your many contributions to our success and tell you again that we are proud of you and the job that you are doing.

Sincerely,

|/s/ JOSEPH C.   GLICKMAN |  |  | /s/ ROBERT J.   GLICKMAN               
|------------------------ |  |  | ---------------------------------------
|                         |  |  |                                        
|JOSEPH C.   GLICKMAN     |  |  | ROBERT J.   GLICKMAN                   
|Chairman   of the Board  |  |  | President   and Chief Executive Officer

|CORUS BANKSHARES 2006 ANNUAL REPORT | 7
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CONSOLIDATED BALANCE SHEETS

|DECEMBER 31                                                                                                             |  | 2006 |            | 2005 |  
|----------------------------------------------------------------------------------------------------------------------- |  | ---- | ---------- | ---- | -
|                                                                                                                        |  |      |            |      |  
|(dollars in thousands, except per share   data)                                                                         |  |      |            |      |  
|ASSETS                                                                                                                  |  |      |            |      |  
|Cash and due from banks    noninterest-bearing                                                                         |  | $    | 121,564    |      | $
|Federal funds sold                                                                                                      |  |      | 319,700    |      |  
|                                                                                                                        |  |      |            |      |  
|Cash   and Cash Equivalents                                                                                             |  |      | 441,264    |      |  
|Securities:                                                                                                             |  |      |            |      |  
|Available-for-sale,   at fair value                                                                                     |  |      |            |      |  
|U.S.   Government and agencies (amortized cost $5,182,286 and $3,234,257)                                               |  |      | 5,178,270  |      |  
|Common   stocks (cost $127,316 and $110,586)                                                                            |  |      | 217,042    |      |  
|Other   securities (amortized cost $34,768 and $29,509)                                                                 |  |      | 35,955     |      |  
|                                                                                                                        |  |      |            |      |  
|Total   Securities                                                                                                      |  |      | 5,431,267  |      |  
|Loans, net of unearned   income                                                                                         |  |      | 4,141,979  |      |  
|Less:   Allowance for loan losses                                                                                       |  |      | 45,293     |      |  
|                                                                                                                        |  |      |            |      |  
|Loans,   net                                                                                                            |  |      | 4,096,686  |      |  
|Premises and equipment, net                                                                                             |  |      | 27,376     |      |  
|Other real estate owned                                                                                                 |  |      | 8,439      |      |  
|Accrued interest receivable   and other assets                                                                          |  |      | 48,236     |      |  
|Goodwill, net of accumulated   amortization of $30,009                                                                  |  |      | 4,523      |      |  
|                                                                                                                        |  |      |            |      |  
|Total Assets                                                                                                            |  | $    | 10,057,791 |      | $
|                                                                                                                        |  |      |            |      |  
|LIABILITIES   AND SHAREHOLDERS EQUITY                                                                                  |  |      |            |      |  
|Liabilities:                                                                                                            |  |      |            |      |  
|Deposits:                                                                                                               |  |      |            |      |  
|Noninterest-bearing                                                                                                     |  | $    | 309,267    |      | $
|Interest-bearing                                                                                                        |  |      | 8,395,408  |      |  
|                                                                                                                        |  |      |            |      |  
|Total   Deposits                                                                                                        |  |      | 8,704,675  |      |  
|Long-term   debt  subordinated debentures                                                                              |  |      | 384,028    |      |  
|Federal   funds purchased                                                                                               |  |      |           |      |  
|Other   borrowings                                                                                                      |  |      | 39,419     |      |  
|Accrued   interest payable and other liabilities                                                                        |  |      | 85,142     |      |  
|                                                                                                                        |  |      |            |      |  
|Total   Liabilities                                                                                                     |  |      | 9,213,264  |      |  
|Shareholders equity:
(1)                                                                                               |  |      |            |      |  
|Common   stock, $0.05 par value, 130,000,000 shares authorized; 56,245,978 and   55,849,488 shares issued, respectively |  |      | 2,812      |      |  
|Surplus                                                                                                                 |  |      | 31,783     |      |  
|Equity    options outstanding                                                                                          |  |      | 9,040      |      |  
|Retained   earnings                                                                                                     |  |      | 746,291    |      |  
|Accumulated   other comprehensive income                                                                                |  |      | 54,601     |      |  
|                                                                                                                        |  |      |            |      |  
|Total   Shareholders Equity                                                                                            |  |      | 844,527    |      |  
|                                                                                                                        |  |      |            |      |  
|Total Liabilities and   Shareholders Equity                                                                            |  | $    | 10,057,791 |      | $
|                                                                                                                        |  |      |            |      |  

See accompanying notes.(1)All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.

8CORUS BANKSHARES 2006 ANNUAL REPORT

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CONSOLIDATED STATEMENTS ofINCOME

|YEARS ENDED   DECEMBER 31                               |  | 2006 |         | 2005 |   | 2004    | 
|------------------------------------------------------- |  | ---- | ------- | ---- | - | ------- | 
|                                                        |  |      |         |      |   |         | 
|(in thousands, except per share data)                   |  |      |         |      |   |         | 
|INTEREST,   LOAN FEES, AND DIVIDEND INCOME              |  |      |         |      |   |         | 
|Interest   and fees on loans                            |  | $    | 500,973 |      | $ | 346,800 | 
|Federal   funds sold                                    |  |      | 18,307  |      |   | 21,936  | 
|Securities:                                             |  |      |         |      |   |         | 
|Interest                                                |  |      | 214,638 |      |   | 71,654  | 
|Dividends                                               |  |      | 7,309   |      |   | 6,559   | 
|Trading   account                                       |  |      |        |      |   |        | 
|                                                        |  |      |         |      |   |         | 
|Total   Interest, Loan Fees, and Dividend Income        |  |      | 741,227 |      |   | 446,949 | 
|                                                        |  |      |         |      |   |         | 
|INTEREST   EXPENSE                                      |  |      |         |      |   |         | 
|Deposits                                                |  |      | 369,791 |      |   | 178,497 | 
|Long-term   debt  subordinated debentures              |  |      | 28,547  |      |   | 17,991  | 
|Other   borrowings                                      |  |      | 988     |      |   | 803     | 
|                                                        |  |      |         |      |   |         | 
|Total   Interest Expense                                |  |      | 399,326 |      |   | 197,291 | 
|                                                        |  |      |         |      |   |         | 
|Net   Interest Income                                   |  |      | 341,901 |      |   | 249,658 | 
|Provision   for credit losses                           |  |      | 7,500   |      |   | 6,000   | 
|                                                        |  |      |         |      |   |         | 
|Net   Interest Income After Provision for Credit Losses |  |      | 334,401 |      |   | 243,658 | 
|                                                        |  |      |         |      |   |         | 
|NONINTEREST   INCOME                                    |  |      |         |      |   |         | 
|Service   charges on deposit accounts                   |  |      | 10,961  |      |   | 11,566  | 
|Securities   gains/(losses), net                        |  |      | 6,071   |      |   | 12,691  | 
|Other   income                                          |  |      | 2,169   |      |   | 3,692   | 
|                                                        |  |      |         |      |   |         | 
|Total   Noninterest Income                              |  |      | 19,201  |      |   | 27,949  | 
|                                                        |  |      |         |      |   |         | 
|NONINTEREST   EXPENSE                                   |  |      |         |      |   |         | 
|Employee   compensation and benefits                    |  |      | 45,756  |      |   | 43,136  | 
|Net   occupancy                                         |  |      | 3,961   |      |   | 3,723   | 
|Data   processing                                       |  |      | 2,025   |      |   | 1,714   | 
|Depreciation    furniture and equipment                |  |      | 1,838   |      |   | 1,444   | 
|Other   expenses                                        |  |      | 12,301  |      |   | 11,305  | 
|                                                        |  |      |         |      |   |         | 
|Total   Noninterest Expense                             |  |      | 65,881  |      |   | 61,322  | 
|                                                        |  |      |         |      |   |         | 
|Income   Before Income Taxes                            |  |      | 287,721 |      |   | 210,285 | 
|Income   tax expense                                    |  |      | 98,277  |      |   | 73,056  | 
|                                                        |  |      |         |      |   |         | 
|Net Income                                              |  | $    | 189,444 |      | $ | 137,229 | 
|                                                        |  |      |         |      |   |         | 
|Net income per common share:
(1)                        |  |      |         |      |   |         | 
|Basic                                                   |  | $    | 3.38    |      | $ | 2.46    | 
|Diluted                                                 |  |      | 3.28    |      |   | 2.38    | 
|Cash dividends declared per   common share
(1)          |  |      | 0.90    |      |   | 0.70    | 
|Average common shares   outstanding
(1)                 |  |      |         |      |   |         | 
|Basic                                                   |  |      | 55,968  |      |   | 55,688  | 
|Diluted                                                 |  |      | 57,705  |      |   | 57,710  | 
|                                                        |  |      |         |      |   |         | 

See accompanying notes.(1)All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.

CORUS BANKSHARES 2006 ANNUAL REPORT   9

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CONSOLIDATED STATEMENTS ofCHANGES inSHAREHOLDERS EQUITY

|                                                                                                    |  | COMMON   STOCK |       | SURPLUS |   | EQUITY    OPTIONS   OUTSTANDING |   | RETAINED    EARNINGS |       | ACCUMULATED   OTHER   COMPREHENSIVE   INCOME |   | TOTAL   |  
|--------------------------------------------------------------------------------------------------- |  | -------------- | ----- | ------- | - | -------------------------------- | - | -------------------- | ----- | -------------------------------------------- | - | ------- | -
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|(dollars in thousands, except per share   data)                                                     |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Balance   at December
31, 2003                                                                      |  | $              | 2,804 |         | $ | 15,540                           |   | $                    | 5,670 |                                              | $ | 460,458 |  
|Net income                                                                                          |  |                |      |         |   |                                 |   |                      |      |                                              |   | 97,939  |  
|Other comprehensive income:                                                                         |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Changes   in net unrealized gains on securities                                                     |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Reclassification   adjustment for net gains realized in net income                                  |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Income   tax effect                                                                                 |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Comprehensive   Income                                                                              |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Stock options vested                                                                                |  |                |      |         |   |                                 |   |                      | 1,402 |                                              |   |        |  
|Shares issued under the   stock option plan, 47,720 common shares                                   |  |                | 2     |         |   | 827                              |   |                      | (183  | )                                            |   |        |  
|Stock option settlements                                                                            |  |                |      |         |   | (272                             | ) |                      | (94   | )                                            |   |        |  
|Stock option expirations                                                                            |  |                |      |         |   | 38                               |   |                      | (58   | )                                            |   |        |  
|Deferred compensation                                                                               |  |                |      |         |   | 3,783                            |   |                      |      |                                              |   |        |  
|Repurchase and retirement of
530,200
common shares                                                  |  |                | (26   | )       |   | (63                              | ) |                      |      |                                              |   | (10,732 | )
|Cash dividends declared on   common stock, $0.625 per common share                                  |  |                |      |         |   |                                 |   |                      |      |                                              |   | (34,821 | )
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Balance   at December
31, 2004                                                                      |  | $              | 2,780 |         | $ | 19,853                           |   | $                    | 6,737 |                                              | $ | 512,844 |  
|Net income                                                                                          |  |                |      |         |   |                                 |   |                      |      |                                              |   | 137,229 |  
|Other comprehensive income:                                                                         |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Changes   in net unrealized gains on securities                                                     |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Reclassification   adjustment for net gains realized in net income                                  |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Income   tax effect                                                                                 |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Comprehensive   Income                                                                              |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Stock options vested                                                                                |  |                |      |         |   |                                 |   |                      | 1,682 |                                              |   |        |  
|Shares issued under the   stock option plan, 201,360 common shares                                  |  |                | 10    |         |   | 3,540                            |   |                      | (649  | )                                            |   |        |  
|Deferred compensation                                                                               |  |                |      |         |   | 1,745                            |   |                      |      |                                              |   |        |  
|Shares issued under the   Commission Program for Commercial Loan Officers, 120,432 common shares    |  |                | 6     |         |   | 754                              |   |                      |      |                                              |   |        |  
|Repurchase and retirement of
63,600
common shares                                                   |  |                | (4    | )       |   | (10                              | ) |                      |      |                                              |   | (1,734  | )
|Cash dividends declared on   common stock,  $0.700 per common share                                 |  |                |      |         |   |                                 |   |                      |      |                                              |   | (39,005 | )
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Balance   at December
31, 2005                                                                      |  | $              | 2,792 |         | $ | 25,882                           |   | $                    | 7,770 |                                              | $ | 609,334 |  
|Net income                                                                                          |  |                |      |         |   |                                 |   |                      |      |                                              |   | 189,444 |  
|Other comprehensive income:                                                                         |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Changes   in net unrealized gains on securities                                                     |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Reclassification   adjustment for net gains realized  in   net income                               |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Income   tax effect                                                                                 |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Comprehensive   Income                                                                              |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Adjustment to initially   apply FASB Statement No. 158  net of tax                                 |  |                |      |         |   |                                 |   |                      |      |                                              |   |        |  
|Stock options vested                                                                                |  |                |      |         |   |                                 |   |                      | 1,905 |                                              |   |        |  
|Shares issued under stock   option plans, 182,260 common shares                                     |  |                | 9     |         |   | 3,415                            |   |                      | (635  | )                                            |   |        |  
|Deferred compensation                                                                               |  |                |      |         |   | 1,647                            |   |                      |      |                                              |   |        |  
|Shares issued under the   Commission Program for  Commercial   Loan Officers, 314,830 common shares |  |                | 16    |         |   | 860                              |   |                      |      |                                              |   |        |  
|Repurchase and retirement of
100,600
common shares                                                  |  |                | (5    | )       |   | (21                              | ) |                      |      |                                              |   | (2,061  | )
|Cash dividends declared on   common stock, $0.900 per common share                                  |  |                |      |         |   |                                 |   |                      |      |                                              |   | (50,426 | )
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  
|Balance at December
31, 2006                                                                        |  | $              | 2,812 |         | $ | 31,783                           |   | $                    | 9,040 |                                              | $ | 746,291 |  
|                                                                                                    |  |                |       |         |   |                                  |   |                      |       |                                              |   |         |  

All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.

10CORUS BANKSHARES 2006 ANNUAL REPORT

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CONSOLIDATED STATEMENTS ofCASH FLOWS

|YEARS ENDED DECEMBER 31                                                                       |  | 2006 |            | 2005 |   | 2004       |  
|--------------------------------------------------------------------------------------------- |  | ---- | ---------- | ---- | - | ---------- | -
|                                                                                              |  |      |            |      |   |            |  
|(dollars in thousands)                                                                        |  |      |            |      |   |            |  
|CASH FLOWS   FROM OPERATING ACTIVITIES:                                                       |  |      |            |      |   |            |  
|Net income                                                                                    |  | $    | 189,444    |      | $ | 137,229    |  
|Adjustments to reconcile net   income to net cash (used in)/provided by operating activities: |  |      |            |      |   |            |  
|Provision   for credit losses                                                                 |  |      | 7,500      |      |   | 6,000      |  
|Depreciation   and amortization                                                               |  |      | 2,571      |      |   | 2,185      |  
|(Accretion)   amortization of investment (discounts) premiums, net                            |  |      | (191,012   | )    |   | (46,185    | )
|Deferred   income tax (benefit)/expense                                                       |  |      | (6,998     | )    |   | (4,011     | )
|Securities   (gains)/losses, net                                                              |  |      | (6,071     | )    |   | (12,691    | )
|Proceeds   from trading activity, net                                                         |  |      |           |      |   |           |  
|Deferred   compensation expense                                                               |  |      | 4,036      |      |   | 3,870      |  
|Payment   of deferred compensation                                                            |  |      | (1,543     | )    |   | (815       | )
|Stock   option expense                                                                        |  |      | 1,905      |      |   | 1,682      |  
|Excess   tax benefits from share-based payment arrangements                                   |  |      | (1,884     | )    |   | (1,928     | )
|Gain   on sale of premises and equipment                                                      |  |      |           |      |   | (1,420     | )
|(Increase)/Decrease   in accrued interest receivable and other assets                         |  |      | (5,306     | )    |   | (23,374    | )
|(Decrease)/Increase   in accrued interest payable and other liabilities                       |  |      | (2,618     | )    |   | 29,337     |  
|                                                                                              |  |      |            |      |   |            |  
|Net   Cash (Used in)/Provided by Operating Activities                                         |  |      | (9,976     | )    |   | 89,879     |  
|                                                                                              |  |      |            |      |   |            |  
|CASH FLOWS   FROM INVESTING ACTIVITIES:                                                       |  |      |            |      |   |            |  
|Proceeds   from maturities of available-for-sale securities                                   |  |      | 7,552,746  |      |   | 2,712,125  |  
|Proceeds   from sales of available-for-sale securities                                        |  |      | 16,128     |      |   | 460,063    |  
|Purchases   of available-for-sale securities                                                  |  |      | (9,341,079 | )    |   | (5,896,630 | )
|Proceeds   from sales of non-hedge derivatives                                                |  |      |           |      |   |           |  
|Net   decrease/(increase) in loans                                                            |  |      | 371,497    |      |   | (1,731,421 | )
|Recoveries   of previously charged-off loans                                                  |  |      | 1,193      |      |   | 1,785      |  
|Purchases   of premises and equipment                                                         |  |      | (3,508     | )    |   | (3,873     | )
|Proceeds   from sale of premises and equipment                                                |  |      |           |      |   | 2,068      |  
|                                                                                              |  |      |            |      |   |            |  
|Net   Cash Used in Investing Activities                                                       |  |      | (1,403,023 | )    |   | (4,455,883 | )
|                                                                                              |  |      |            |      |   |            |  
|CASH FLOWS   FROM FINANCING ACTIVITIES:                                                       |  |      |            |      |   |            |  
|Increase   in deposit accounts                                                                |  |      | 1,438,846  |      |   | 3,175,194  |  
|Net   proceeds from issuance of long-term debt  subordinated debentures                      |  |      | 25,000     |      |   | 100,000    |  
|Repayment   of debt                                                                           |  |      |           |      |   |           |  
|(Decrease)/Increase   in federal funds purchased                                              |  |      | (41,200    | )    |   | 41,200     |  
|Increase   in other borrowings, net                                                           |  |      | 17,826     |      |   | 14,662     |  
|Cash   proceeds from stock option exercises                                                   |  |      | 1,782      |      |   | 1,734      |  
|Cash   used to settle equity instruments                                                      |  |      |           |      |   |           |  
|Excess   tax benefits from share-based payment arrangements                                   |  |      | 1,884      |      |   | 1,928      |  
|Repurchases   and retirements of common shares                                                |  |      | (2,087     | )    |   | (1,748     | )
|Cash   dividends paid on common shares                                                        |  |      | (46,139    | )    |   | (37,921    | )
|                                                                                              |  |      |            |      |   |            |  
|Net   Cash Provided by Financing Activities                                                   |  |      | 1,395,912  |      |   | 3,295,049  |  
|                                                                                              |  |      |            |      |   |            |  
|Net   (Decrease) Increase in Cash and Cash Equivalents                                        |  |      | (17,087    | )    |   | (1,070,955 | )
|Cash and cash equivalents at   beginning of year                                              |  |      | 458,351    |      |   | 1,529,306  |  
|                                                                                              |  |      |            |      |   |            |  
|Cash and Cash Equivalents at   End of Year                                                    |  | $    | 441,264    |      | $ | 458,351    |  
|                                                                                              |  |      |            |      |   |            |  
|Supplemental disclosures of   cash flow information:                                          |  |      |            |      |   |            |  
|Interest   paid                                                                               |  | $    | 402,517    |      | $ | 174,624    |  
|Income   taxes paid                                                                           |  |      | 103,921    |      |   | 74,955     |  
|Supplemental schedule of   noncash investing activities:                                      |  |      |            |      |   |            |  
|Loan   foreclosure  asset transferred to other real estate owned                             |  | $    | 8,439      |      | $ |           |  
|                                                                                              |  |      |            |      |   |            |  

See accompanying notes.

CORUS BANKSHARES 2006 ANNUAL REPORT   11

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NOTES toCONSOLIDATED FINANCIAL STATEMENTS

|NOTE1 | SUMMARY OF SIGNIFICANT   ACCOUNTING POLICIES
|----- | --------------------------------------------
|     

The consolidated financial statements include the accounts of Corus Bankshares, Inc. (Corus or the Company) and its wholly-owned subsidiary, Corus Bank, N.A. (the Bank). Corus, through its subsidiary bank, provides retail banking services through a branch network in the Chicago metropolitan area. The Bank also markets deposit products nationwide.

Corus commercial lending group provides financing nationwide, almost exclusively collateralized by real estate. In the preparation of the consolidated financial statements, management is required to make certain estimates and assumptions that affect the reported amounts contained in the consolidated financial statements. Management believes that the estimates made are reasonable; however, changes in estimates may be required if economic or other conditions change significantly beyond managements expectations. See Allowance for Credit Losses accounting policy below.

PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements include the accounts of Corus and the Bank. All intercompany accounts and transactions have been eliminated in the consolidated financial statements.

In accordance with Financial Accounting Standards Board Interpretation No. 46(R), Consolidation of Variable Interest Entities (FIN 46(R)), the accompanying consolidated financial statements do not include the accounts of 12 wholly-owned finance subsidiaries (the Trusts). The Trusts were formed for the sole purpose of issuing Trust Preferred securities and, in turn, purchasing subordinated debentures from the Company.

Under the provisions of FIN 46(R), the Trusts are considered Variable Interest Entities (VIEs) which  can only be consolidated if Corus is subject to a majority of the risk of loss from each of the VIEs activities or is entitled to receive a majority of each entitys residual returns. The design of the Trusts, which is very common in the banking industry, is such that Corus is neither subject to the majority of risk of loss nor entitled to receive the majority of any residual returns. As a result, the Trusts are not consolidated.

Corus does, however, report the subordinated debentures sold to the Trusts as a liability in the Consolidated Balance Sheets and the associated interest expense in the Consolidated Statements of Income.

SEGMENT REPORTING

Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information, requires companies to report certain financial information about operating segments. Corus is currently managed as one unit and does not have separate operating segments. The Companys chief operating decision-makers use consolidated results to make operating and strategic decisions.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash, due from banks, and federal funds sold which have an original maturity of 90 days or less.

SECURITIES

Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date.

Trading account securities are held for sale in anticipation of short-term gains and are stated at fair value.  Realized and unrealized gains and losses on trading account securities are reflected in the Consolidated Statements of Income in securities gains/(losses), net.

Available-for-sale securities are those securities to be held for indefinite periods of time. These securities include those that management intends to use as part of its asset/liability management strategy and may be sold in response to changes in interest rates, market conditions or other reasons. These securities are carried at fair value. The difference between amortized cost and fair value, less deferred income taxes, is reflected as a component of other comprehensive income in the Consolidated Statements of Changes in Shareholders Equity. Amortized cost represents the cost of securities plus or minus the amortization/accretion of premium/ discount, adjusted for losses associated with other than temporary declines in value.

12   CORUS BANKSHARES 2006 ANNUAL REPORT

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Securities held-to-maturity represent securities that Corus has the ability and positive intent to hold to maturity. These securities are carried at amortized cost.

Interest and dividend income, including amortization of premiums and accretion of discounts, are included in interest, loan fees, and dividend income. Realized gains and losses are determined on a specific identification basis. Gains or losses from available-for-sale securities are recognized either when the investment is sold or when a company is acquired by another company, regardless of whether the acquisition price is paid in cash or stock. Discounts received or premiums paid are treated as cash flows from investing activities for purposes of the Consolidated Statements of Cash Flows.

Provisions are made to write down the value of securities for declines in value that are other than temporary. Corus practice is to recognize impairment losses on individual equity securities when the security has been in a loss position at the close of each trading day during six (6) consecutive months as of any quarter end. The exception to this general policy would be in the event that a security suffers a rapid and material decrease in value that Corus determines to be other than temporary in nature. In these cases, Corus will recognize an impairment charge at the time such determination is made. Corus evaluates its investments for other than temporary declines in value on a lot-by-lot basis, meaning that if there are multiple purchases of a certain security, each purchase is evaluated individually.

LOANS

Loans are reported at the principal amount outstanding, net of any unearned discount or deferred origination or exit fees. Interest income is recognized using the level-yield method. Loan origination and exit fees, net of direct costs related to the origination, are deferred and amortized as a yield adjustment over the lives of the related loans.

The accrual of interest income is discontinued on any loan when there is reasonable doubt as to the ultimate collectibility of interest or principal. Loans past due over 90 days continue to accrue interest income only if there are adequate sources of repayment. These sources include sufficient collateral to cover repayment of the loan or other designated sources of repayment. When a loan is placed on nonaccrual status, unpaid interest is reversed if, based on managements assessment, collection is not probable. To the extent that interest is reversed, amounts credited to income in the current year are reversed to interest income and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to managements judgment as to the collectibility
of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with contractual terms for a reasonable period of time and the ultimate collectibility of the total contractual principal and interest is no longer in doubt.

In accordance with Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan (SFAS 114), Corus classifies loans as impaired if, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is not considered impaired during a period of delay in payment if the creditor expects to collect all amounts due including interest for the period of delay. Finally, impaired loans also include loans restructured in a troubled debt restructuring. See Allowance for Credit Losses policy below with regard to reserves for impaired loans.

CORUS BANKSHARES 2006 ANNUAL REPORT   13

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

Commercial real estate loans are charged off when designated loss by the Banks regulators, when past due more than 180 days (unless well collateralized), or when deemed uncollectible by management. Past due and delinquency status is determined based on contractual terms.

ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses (the Allowance) is comprised of the Allowance for Loan Losses and a separate Liability for Credit Commitment Losses. The Allowance for Loan Losses is a reserve against funded loan amounts, while the Liability for Credit Commitment Losses is a reserve against unfunded commitments. The Allowance is available to absorb losses inherent in the loan portfolio. Increases to the Allowance result from provisions for credit losses that are charged to earnings and from recoveries of previously charged-off loans. Decreases to the Allowance result as loans, or portions thereof, are charged off.

The Allowance for Loan Losses is based upon quarterly analyses. Corus methodology for calculating the Allowance for Loan Losses is designed to first provide for specific reserves associated with impaired loans, defined by Generally Accepted Accounting Principles as loans where it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Management primarily uses the alphanumeric loan rating system documented by the Office of the Comptroller of the Currency (the OCC) to select loans for
impairment assessment. Loans determined to be impaired are segregated from the remainder of the portfolio and are subjected to a specific review in an effort to determine whether or not a specific reserve is necessary and, if so, the appropriate amount of that reserve.

The remainder of the portfolio is then segmented into groups based on loan characteristics, seniority of collateral, and loan rating. A reserve is calculated and allocated to each of these groups based on historical net charge-off history coupled with a subjective Management Adjustment Factor. The Management Adjustment Factor is intended to incorporate those qualitative or environmental factors that are likely to cause estimated credit losses associated with the Banks existing portfolio to differ from historical loss experience.

While the Management Adjustment Factor is used to adjust for the most significant risk factors, these factors certainly do not constitute an exhaustive list. Environmental factors exist that indicate there are probable losses in the overall portfolio that have not been captured in the specific or allocated reserves. These risks are reflected in the unallocated portion of the Allowance for Loan Losses.

Ultimately, the Bank strives to maintain loan loss reserves that are directionally consistent with changes in the factors, taken as a whole, that evidence credit losses, keeping in mind the characteristics of the Banks loan portfolio.

The process for estimating the Liability for Credit Commitment Losses closely follows the process outlined above for the Allowance for Loan Losses. The primary difference is that the reserve is adjusted to account for the lower risk associated with unfunded amounts combined with the expected timing and likelihood of funding.

The assessment as to the adequacy of the Allowance is grounded by the assumption that historical experience is a good indicator of inherent losses. This assumption, while supported by guidance provided by the Financial Accounting Standards Board (FASB), the OCC, and the Securities and Exchange Commission, may not ultimately be correct. In that event, estimates of inherent losses may differ materially from actual results.

PREMISES AND EQUIPMENT

Premises and equipment are stated at cost, less accumulated depreciation. Depreciation on premises is computed primarily using the straight-line method over the estimated useful life. Depreciation on furniture and equipment is computed using accelerated methods. Expenditures for normal repairs and maintenance are charged to expense as incurred.

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OTHER REAL ESTATE OWNED

Other real estate owned includes properties acquired through foreclosure. These properties are generally recorded at the lower of cost or estimated realizable value. Gains and losses from the sale or write-down of other real estate owned are included in other income or expense. The net costs of maintaining these properties are included in operating expenses.

GOODWILL

Under Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, goodwill is subjected to an annual impairment test. The test consists of a two-step process whereby a determination is first made as to whether impairment exists, and then whether an adjustment is required.

DERIVATIVES

The Company enters into certain derivative transactions primarily as part of its overall interest rate risk management process. Interest rate derivatives may also be purchased as trading securities in anticipation of taking gains on short-term price movements. Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (SFAS 133), requires a company to recognize all derivative instruments at fair value on its balance sheet. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction.

Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of fixed-rate assets, liabilities, or firm commitments are considered fair value hedges under SFAS 133. Fair value hedges are accounted for by recording the fair value of the derivative instrument and the fair value of the hedged asset or liability on the balance sheet. The changes in the fair value of the derivatives and the hedged assets or liabilities are recorded in the income statement. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as a freestanding asset or a liability. Interest income or expense associated with the derivatives is recorded as an offset to the related interest income or expense recorded on the hedged asset or liability.

Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability, with a corresponding offset recorded in other comprehensive income within shareholders equity, net of taxes. Amounts are reclassified from other comprehensive income to the income statement in the period or periods the hedged transaction affects earnings.

Under both the fair value and cash flow hedge methods, any ineffective portions of the hedges are recognized immediately in income. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in noninterest income as a part of securities gains/(losses), net.

STOCK-BASED EMPLOYEE COMPENSATION

Corus utilizes its stock to compensate employees under various nonqualified stock option plans (the Stock Option Plans). In addition, Corus Commission Program for Commercial Loan Officers (the CLO Program) provides for the use of Corus stock as an investment vehicle for commission holdbacks. These plans are described more fully in Note 14 and in Managements Discussion and Analysis of Financial Condition and Results of Operations.

CORUS BANKSHARES 2006 ANNUAL REPORT   15

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

With regard to the Stock Option Plans, all stock options granted had an exercise price equal to the closing market price of the underlying common stock on either the date of grant or one business day prior. The fair value of stock options granted was computed using the Black-Scholes valuation model.

Compensation cost for stock options is recognized over the vesting period of the instrument based on the fair value as determined at the grant date for all awards expected to vest. No adjustments to expense are recorded to reflect any changes in fair value subsequent to the grant date. Upon exercise, to the extent that the intrinsic value of the awards exceeds the grant date fair value, an additional tax benefit is recorded and posted directly to capital surplus. See Note 14 for a summary of stock option valuation assumptions.

|NOTE 2 | RECENT ACCOUNTING PRONOUNCEMENTS
|------ | --------------------------------
|      

FIN 48  ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes. This interpretation prescribes a methodology for recognition and measurement for uncertain tax positions either taken or expected to be taken in a tax return. This interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company does not anticipate that adoption of FIN 48 will have a material impact on its results of operations or its financial position.

SFAS 157  FAIR VALUE MEASUREMENTS

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement provides enhanced guidance for using fair value to measure assets and liabilities. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances. This Statement is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Company does not anticipate that adoption of SFAS 157 will have a material impact on its results of operations or its financial position.

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|SFAS 158  | EMPLOYERS ACCOUNTING FOR DEFINED BENEFIT
|---------- | -----------------------------------------
|           | PENSION & OTHER POSTRETIREMENT PLANS     

The FASB also issued in September 2006 Statement of Financial Accounting Standards No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106, and 132(R) (SFAS 158). This Statement requires recognition of the funded status of a defined benefit postretirement plan in the statement of financial position. The Statement also requires recognition of the changes in funded status in the year in which the changes occur through comprehensive income. Finally, SFAS 158 requires an entity to measure the funded status of a plan as of the date of its fiscal year-end, with limited exceptions. SFAS 158 provides recognition and disclosure elements to be effective as of the end of the fiscal year ending after December 15, 2006, and measurement elements to be effective for fiscal years ending after December 15, 2008. In accordance with the adoption of the recognition
and disclosure provisions of SFAS 158, the Company recorded the impact of the unrecognized net actuarial loss of $2.6 million as an additional liability on Corus balance sheet as of December 31, 2006. Consistent with the provisions of SFAS 158, the Company recorded a corresponding amount, on an after-tax basis, in accumulated other comprehensive income. The Company does not anticipate that adoption of the measurement elements of SFAS 158 will have a material impact on its results of operation or its financial position. See Note 10 for further information.

|NOTE 3 | SECURITIES
|------ | ----------
|      

The amortized cost, gross unrealized gains and losses, and fair value of securities were as follows:

|                               |  |                  |           |  | GROSS   UNREALIZED |              |  |   |       
|------------------------------ |  | ---------------- | --------- |  | ------------------ | ------------ |  | - | ------
|                               |  | AMORTIZED   COST |           |  |                    | FAIR   VALUE | 
|DECEMBER 31, 2006              |  |                  | GAINS     |  | LOSSES             |              | 
|                               |  |                  |           |  |                    |              |  |   |       
|(dollars in thousands)         |  |                  |           |  |                    |              |  |   |       
|U.S.   Government and agencies |  | $                | 5,182,286 |  | $                  | 2            |  | $ | (4,018
|Common stocks                  |  |                  | 127,316   |  |                    | 89,726       |  |   |      
|Other                          |  |                  | 34,768    |  |                    | 1,202        |  |   | (15   
|                               |  |                  |           |  |                    |              |  |   |       
|Total                          |  | $                | 5,344,370 |  | $                  | 90,930       |  | $ | (4,033
|                               |  |                  |           |  |                    |              |  |   |       

|                             |  |                  |           |  | GROSS   UNREALIZED |              |  |   |       
|---------------------------- |  | ---------------- | --------- |  | ------------------ | ------------ |  | - | ------
|                             |  | AMORTIZED   COST |           |  |                    | FAIR   VALUE | 
|DECEMBER 31, 2005            |  |                  | GAINS     |  | LOSSES             |              | 
|                             |  |                  |           |  |                    |              |  |   |       
|(dollars in thousands)       |  |                  |           |  |                    |              |  |   |       
|U.S. Government and agencies |  | $                | 3,234,257 |  | $                  |             |  | $ | (6,241
|Common stocks                |  |                  | 110,586   |  |                    | 73,955       |  |   |      
|Other                        |  |                  | 29,509    |  |                    | 572          |  |   |      
|                             |  |                  |           |  |                    |              |  |   |       
|Total                        |  | $                | 3,374,352 |  | $                  | 74,527       |  | $ | (6,241
|                             |  |                  |           |  |                    |              |  |   |       

CORUS BANKSHARES 2006 ANNUAL REPORT   17

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

For those securities with unrealized losses, the following tables present the aggregate fair values and the associated unrealized losses for the investments as of December 31, 2006 and 2005. The securities presented are grouped according to the time periods during which the investments have been in a continuous unrealized loss position.

|                             |  | LESS THAN   12 MONTHS |           | MORE THAN   12 MONTHS |   | TOTAL      | 
|---------------------------- |  | --------------------- | --------- | --------------------- | - | ---------- | 
|                             |  |                       |           |                       |   |            | 
|DECEMBER 31, 2006            |  | FAIR VALUE            |           | UNREALIZED   LOSSES   |   | FAIR VALUE | 
|                             |  |                       |           |                       |   |            | 
|(dollars in thousands)       |  |                       |           |                       |   |            | 
|U.S. Government and agencies |  | $                     | 5,161,329 |                       | $ | 4,018      | 
|Other                        |  |                       | 1,830     |                       |   | 15         | 
|                             |  |                       |           |                       |   |            | 
|Total                        |  | $                     | 5,163,159 |                       | $ | 4,033      | 
|                             |  |                       |           |                       |   |            | 

|                             |  | LESS THAN   12 MONTHS |           | MORE THAN   12 MONTHS |                      | TOTAL |           
|---------------------------- |  | --------------------- | --------- | --------------------- | -------------------- | ----- | ----------
|                             |  |                       |           |                       |                      |       |           
|DECEMBER 31, 2005            |  | FAIR VALUE            |           |                       | UNREALIZED    LOSSES |       | FAIR VALUE
|                             |  |                       |           |                       |                      |       |           
|(dollars in thousands)       |  |                       |           |                       |                      |       |           
|U.S. Government and agencies |  | $                     | 3,119,683 |                       | $                    | 5,295 |           
|                             |  |                       |           |                       |                      |       |           
|Total                        |  | $                     | 3,119,683 |                       | $                    | 5,295 |           
|                             |  |                       |           |                       |                      |       |           

The unrealized losses on the Companys investments in U.S. Government and agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. In view of the fact that the Company has the ability and intent to hold those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2006.

The scheduled maturities for securities were as follows:

|DECEMBER 31, 2006                         |  | AMORTIZED   COST |           | FAIR   VALUE |  
|----------------------------------------- |  | ---------------- | --------- | ------------ | -
|                                          |  |                  |           |              |  
|(dollars   in thousands)                  |  |                  |           |              |  
|Due in:                                   |  |                  |           |              |  
|One   year or less                        |  | $                | 5,182,286 |              | $
|After   ten years                         |  |                  | 4,806     |              |  
|                                          |  |                  |           |              |  
|Subtotal                                  |  |                  | 5,187,092 |              |  
|Securities not due at a   single maturity |  |                  | 157,278   |              |  
|                                          |  |                  |           |              |  
|Total                                     |  | $                | 5,344,370 |              | $
|                                          |  |                  |           |              |  

Gross gains realized from available-for-sale securities totaled $7.5 million, $14.1 million, and $31.6 million during 2006, 2005, and 2004, respectively. Gross realized losses from the sale of available-for-sale securities since 2004 are limited to a loss of $0.6 million recognized in 2005. Corus did, however, realize book losses in 2006 and 2005 of $1.5 million and $0.9 million, respectively, due to adjustments for an other than temporary decline in value of certain equity securities, as defined by Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities. Please see Managements Discussion and Analysis of Financial Condition and Results of Operations for further discussion.

Securities having an aggregate carrying value of $18.6 million and $22.0 million at December 31, 2006 and 2005, respectively, were pledged as collateral related to derivative contracts, to secure public deposits and for other purposes.

18CORUS BANKSHARES 2006 ANNUAL REPORT

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|NOTE 4 | LOANS
|------ | -----
|      

Total loans, net of deferred loan fees, other discounts, and exit fees receivable of $24.4 million and $44.5 million at December 31, 2006 and 2005, respectively, were as follows:

|DECEMBER 31                                                |  | 2006 |       | 2005 |  
|---------------------------------------------------------- |  | ---- | ----- | ---- | -
|                                                           |  |      |       |      |  
|(dollars   in millions)                                    |  |      |       |      |  
|Commercial real estate:                                    |  |      |       |      |  
|Condominium:                                               |  |      |       |      |  
|Construction                                               |  | $    | 2,615 |      | $
|Conversion                                                 |  |      | 1,288 |      |  
|Other   commercial real estate                             |  |      | 172   |      |  
|                                                           |  |      |       |      |  
|Total   commercial real estate                             |  |      | 4,075 |      |  
|Commercial                                                 |  |      | 42    |      |  
|Residential real estate and   other                        |  |      | 25    |      |  
|                                                           |  |      |       |      |  
|Loans, net of unearned   income                            |  | $    | 4,142 |      | $
|                                                           |  |      |       |      |  
|Mezzanine loans included in   total commercial real estate |  | $    | 196   |      | $
|                                                           |  |      |       |      |  

In addition to the loan balances listed in the above table, Corus has loan commitments of $4.3 billion representing both unfunded loan balances and commitment letters issued but not yet accepted by the applicant. Please see Note 12 for additional details.

As of December 31, 2006, 96% of Corus outstanding commercial real estate loans were collateralized by condominium buildings located in a limited number of major metropolitan areas. Please see the tables below for a breakdown of loans by collateral type and geographic distribution.

COMMERCIAL REAL ESTATE LOAN PORTFOLIO BY COLLATERAL TYPE

|                           |              | 2006 |        | 2005 |                    
|-------------------------- | ------------ | ---- | ------ | ---- | -------------------
|                           |              |      |        |      |                    
|                           |              |      |        |      | LOANS   OUTSTANDING
|                           | NO. OF LOANS |      |        |      |                    
|DECEMBER 31                |              |      | AMOUNT |      | %                  
|                           |              |      |        |      |                    
|(dollars in millions)      |              |      |        |      |                    
|Condominium:               |              |      |        |      |                    
|Construction               |              |      | 95     |      | $                  
|Conversion                 |              |      | 58     |      |                    
|                           |              |      |        |      |                    
|Condominium   Total        |              |      | 153    |      |                    
|Office                     |              |      | 3      |      |                    
|Hotel                      |              |      | 2      |      |                    
|Other                      |              |      | 7      |      |                    
|Loans less than $1 million |              |      | NM     |      |                    
|                           |              |      |        |      |                    
|Total                      |              |      | 165    |      | $                  
|                           |              |      |        |      |                    

NM  Not Meaningful(1)Includes both funded and unfunded commitments, letters of credit, and outstanding commitment letters.

CORUS BANKSHARES 2006 ANNUAL REPORT   19

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS(continued)

COMMERCIALREAL ESTATE LOAN PORTFOLIO BY MAJOR METROPOLITAN AREA

|                           |  | 2006         |        | 2005 |                    
|-------------------------- |  | ------------ | ------ | ---- | -------------------
|                           |  |              |        |      |                    
|                           |  |              |        |      | LOANS   OUTSTANDING
|                           |  | NO. OF LOANS |        |      |                    
|DECEMBER 31                |  |              | AMOUNT |      | %                  
|                           |  |              |        |      |                    
|(dollars in millions)      |  |              |        |      |                    
|Florida:                   |  |              |        |      |                    
|Miami/Southeast   Florida  |  |              | 25     |      | $                  
|Orlando                    |  |              | 11     |      |                    
|Tampa                      |  |              | 4      |      |                    
|Other   Florida            |  |              | 8      |      |                    
|                           |  |              |        |      |                    
|Florida   Total            |  |              | 48     |      |                    
|California                 |  |              |        |      |                    
|Los   Angeles              |  |              | 14     |      |                    
|San   Diego                |  |              | 13     |      |                    
|San   Francisco            |  |              | 3      |      |                    
|Sacramento                 |  |              | 2      |      |                    
|                           |  |              |        |      |                    
|California   Total         |  |              | 32     |      |                    
|Las Vegas                  |  |              | 10     |      |                    
|New York City              |  |              | 16     |      |                    
|Washington, D.C.
(2)       |  |              | 16     |      |                    
|Atlanta                    |  |              | 12     |      |                    
|Chicago                    |  |              | 7      |      |                    
|Phoenix/Scottsdale         |  |              | 8      |      |                    
|Other
(3)                  |  |              | 16     |      |                    
|Loans less than $1 million |  |              | NM     |      |                    
|                           |  |              |        |      |                    
|Total                      |  |              | 165    |      | $                  
|                           |  |              |        |      |                    

NM  Not Meaningful(1)Includes both funded and unfunded commitments, letters of credit, and outstanding commitment letters.(2)Includes northern Virginia and Maryland loans.(3)No other metropolitan area exceeds three percent of the total.

ALLOWANCE FOR CREDIT LOSSES

The Allowance for Credit Losses is comprised of the Allowance for Loan Losses and a separate Liability for Credit Commitment Losses. The Allowance for Loan Losses is a reserve against funded loan amounts, while the Liability for Credit Commitment Losses is a reserve against unfunded commitments. In the aggregate, the Allowance for Credit Losses had a balance of $50.8 million at December 31, 2006, which was comprised of a $45.3 million Allowance for Loan Losses and a $5.5 million Liability for Credit Commitment Losses.

In accordance with the results of Corus Allowance for Credit Losses analysis, the Company recorded a provision for credit losses of $7.5 million in 2006. The Allowance for Credit Losses analysis incorporates numerous quantitative measures including historical losses, loan growth, and credit quality, as well as various qualitative factors.

20   CORUS BANKSHARES 2006 ANNUAL REPORT

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Changes in the Allowance for Credit Losses were

---

as follows:

|                            |  | 2006 |        | 2005 |   | 2004   |  
|--------------------------- |  | ---- | ------ | ---- | - | ------ | -
|                            |  |      |        |      |   |        |  
|(dollars in thousands)      |  |      |        |      |   |        |  
|Balance at January 1        |  | $    | 44,740 |      | $ | 37,882 |  
|Provision for credit losses |  |      | 7,500  |      |   | 6,000  |  
|Charge-offs                 |  |      | (2,640 | )    |   | (927   | )
|Recoveries                  |  |      | 1,193  |      |   | 1,785  |  
|                            |  |      |        |      |   |        |  
|Balance at December 31      |  | $    | 50,793 |      | $ | 44,740 |  
|                            |  |      |        |      |   |        |  

The Allowance for Credit Losses is presented on Corus balance sheet as follows:

|DECEMBER 31                                  |  | 2006 |        | 2005 |   | 2004   | 
|-------------------------------------------- |  | ---- | ------ | ---- | - | ------ | 
|                                             |  |      |        |      |   |        | 
|(dollars in thousands)                       |  |      |        |      |   |        | 
|Allowance for Loan Losses                    |  | $    | 45,293 |      | $ | 39,740 | 
|Liability for Credit   Commitment Losses
(1) |  |      | 5,500  |      |   | 5,000  | 
|                                             |  |      |        |      |   |        | 
|Total                                        |  | $    | 50,793 |      | $ | 44,740 | 
|                                             |  |      |        |      |   |        | 

(1)Included as a component of other liabilities

Impaired loans totaled $73.4 million and $16.4 million as of December 31, 2006 and 2005, respectively. The amount of impaired loans specifically reserved for in the Allowance for Loan Losses was $0.4 million and $0.7 million as of December 31, 2006 and 2005, respectively. Average impaired loans for the years ended 2006, 2005, and 2004 were $20.2 million, $30.9 million, and $19.5 million, respectively. Interest income recognized on impaired loans during those three years was $0.7 million, $2.0 million and $0.8 million, respectively.

Nonaccrual loans, included in impaired loans listed above, totaled $72.5 million and $73,000 as of December 31, 2006 and 2005, respectively. The interest foregone on impaired loans for the year ended 2006 was $1.2 million. Interest foregone on impaired loans in 2005 and 2004 was negligible. In addition, loans past due 90 days or more, but still accruing interest, totaled $34.4 million and $0.5 million as of December 31, 2006 and 2005, respectively.

|NOTE 5 | PREMISES AND EQUIPMENT
|------ | ----------------------
|      

Premises and equipment were as follows:

|DECEMBER 31                         |  | 2006 |         | 2005 |  
|----------------------------------- |  | ---- | ------- | ---- | -
|                                    |  |      |         |      |  
|(dollars in thousands)              |  |      |         |      |  
|Land and improvements               |  | $    | 7,877   |      | $
|Buildings and improvements          |  |      | 29,693  |      |  
|Furniture and equipment             |  |      | 25,789  |      |  
|                                    |  |      |         |      |  
|Gross   Premises and Equipment      |  |      | 63,359  |      |  
|Less accumulated   depreciation     |  |      | (35,983 | )    |  
|                                    |  |      |         |      |  
|Total Premises and   Equipment, Net |  | $    | 27,376  |      | $
|                                    |  |      |         |      |  

Two banking locations occupy offices under long-term operating lease agreements. Rent expense under these lease agreements totaled $456,000, $414,000, and $404,000 for the years ended December 31, 2006, 2005, and 2004, respectively.

CORUS BANKSHARES 2006 ANNUAL REPORT   21

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS(continued)

Minimum fixed lease obligations, including taxes, insurance and other expenses, to the extent such costs are fixed by lease agreements, for leases in effect at December 31, 2006 were as follows:

|YEARS ENDING DECEMBER 31 |  |   |       | 
|------------------------ |  | - | ----- | 
|                         |  |   |       | 
|(dollars in thousands)   |  |   |       | 
|2007                     |  | $ | 430   | 
|2008                     |  |   | 441   | 
|2009                     |  |   | 451   | 
|2010                     |  |   | 392   | 
|2011                     |  |   | 388   | 
|2012 and thereafter      |  |   | 805   | 
|                         |  |   |       | 
|Minimum payments         |  | $ | 2,907 | 
|                         |  |   |       | 

|NOTE 6 | DEPOSITS
|------ | --------
|      

Interest-bearing deposits at December 31, 2006, include certificates of deposit (CDs) totaling $6.3 billion (72% of total deposits), of which $3.2 billion related to CDs in amounts of $100,000 or more. At December 31, 2005, CDs totaled $4.8 billion (66% of total deposits), of which $2.5 billion related to CDs in amounts of $100,000 or more. Interest expense on CDs of $100,000 or more totaled $142.4 million and $67.2 million in 2006 and 2005, respectively.

At December 31, 2006, the scheduled maturities of all certificates of deposit were as follows:

|YEARS   ENDING DECEMBER 31 |  | BROKERED    CDS |         | RETAIL    CDS |   | TOTAL     | 
|-------------------------- |  | --------------- | ------- | ------------- | - | --------- | 
|                           |  |                 |         |               |   |           | 
|(dollars in thousands)     |  |                 |         |               |   |           | 
|2007                       |  | $               | 78,190  |               | $ | 5,973,373 | 
|2008                       |  |                 | 89,677  |               |   | 15,584    | 
|2009                       |  |                 | 59,490  |               |   | 8,478     | 
|2010                       |  |                 | 52,598  |               |   | 2,485     | 
|2011                       |  |                 |        |               |   | 1,101     | 
|2012 and thereafter        |  |                 |        |               |   |          | 
|                           |  |                 |         |               |   |           | 
|Total                      |  | $               | 279,955 |               | $ | 6,001,021 | 
|                           |  |                 |         |               |   |           | 

As of December 31, 2006 and 2005, overdraft demand deposits totaling $6.0 million and $22.3 million, respectively, were reclassified from deposits to loans.

|NOTE 7 | LONG-TERM DEBT    SUBORDINATED DEBENTURES (TRUST PREFERRED)
|------ | --------------------------------------------------------------
|      

As of December 31, 2006, Corus had $384.0 million in floating rate junior subordinated notes (the Debentures). The Debentures each mature 30 years from their respective issuance date, but are redeemable (at par) at Corus option at any time commencing on the fifth anniversary of their issuance (or upon the occurrence of certain other prescribed events). Interest payments on the Debentures are payable quarterly. So long as an event of default has not occurred (described further below), Corus may defer interest payments for up to 20 consecutive quarters. Events of default under the terms of the debenture agreements include failure to pay interest after 20 consecutive quarters of deferral (if such election is ever made), failure to pay all principal and interest at maturity, or filing bankruptcy.

22CORUS BANKSHARES 2006 ANNUAL REPORT

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If Corus elects to defer interest payments on the Debentures, Corus will generally be restricted from declaring or paying any dividends or distributions on, or redeeming, purchasing, acquiring, or making a liquidation payment with respect to, any of Corus common stock. Additionally, Corus would not be permitted to make any payments of principal or interest on, or to repay/redeem, any debt securities that are of equal rank with (i.e., pari passu), or are junior to, the Debentures. In other words, if Corus were to elect to defer interest payments on any one of the Debentures, Corus would be required to defer all payments with respect to all of its Debentures. As of December 31, 2006, Corus had not elected to defer interest payments. Absent the exercise of this option, Corus has no financial covenants related to this debt.

Interest and fees included in interest expense totaled $28.5 million, $18.0 million, and $9.4 million for the years ended December 31, 2006, 2005, and 2004, respectively. All of the outstanding Debentures are variable-rate, with interest rates ranging from LIBOR plus 1.33% to LIBOR plus 3.10%, resetting quarterly. The scheduled maturities of the Debentures are $177.8 million in 2033, $77.3 million in 2034, $77.3 million in 2035, and $51.6 million in 2036.

Note that the Debentures were issued to unconsolidated subsidiary trusts of the Company. Each trusts sole purpose is to issue Trust Preferred Securities with terms essentially identical to the Debentures and then use the proceeds of the Trust Preferred issuance to purchase debentures from the Company. This is a very common form of raising tax-advantaged capital, especially for bank holding companies.

|NOTE 8 | OTHER BORROWINGS
|------ | ----------------
|      

As of December 31, 2006, Corus had an agreement to borrow up to $100 million in a revolving line of credit maturing on November 30, 2008. Interest is payable quarterly and accrues at a rate of LIBOR plus 140 basis points. In addition, a fee at an annual rate of 25 basis points of the average unused commitment is due quarterly.

Loan covenants require Corus to maintain prescribed levels of capital, limit the level of nonperforming loans relative to capital, and maintain a minimum ratio of the Allowance for Credit Losses (which includes both the Allowance for Loan Losses and the Liability for Credit Commitment Losses) to total loans. Corus is in compliance with all loan covenants as of December 31, 2006. The debt is secured by 100% of the common stock of the subsidiary bank.

Finally, other debt relates to periodic balances associated with Corus role of facilitating tax payments for the U.S. Treasury. Interest is paid at a rate of the Federal Funds Rate minus 25 basis points, and the debt is secured by a pledged security valued at approximately $5.5 million.

Outstanding balances and interest and fees for these notes were as follows:

|                         |  | BALANCE   OUTSTANDING   AT DECEMBER 31 |        | INTEREST AND FEES   FOR THE YEARS   ENDED DECEMBER 31 |  
|------------------------ |  | -------------------------------------- | ------ | ----------------------------------------------------- | -
|                         |  |                                        |        |                                                       |  
|                         |  | 2006                                   |        | 2005                                                  |  
|                         |  |                                        |        |                                                       |  
|(dollars in thousands)   |  |                                        |        |                                                       |  
|Revolving line of credit |  | $                                      | 38,301 |                                                       | $
|Other                    |  |                                        | 1,118  |                                                       |  
|                         |  |                                        |        |                                                       |  
|Total                    |  | $                                      | 39,419 |                                                       | $
|                         |  |                                        |        |                                                       |  

CORUS BANKSHARES 2006 ANNUAL REPORT   23

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

|NOTE9 | INCOME TAXES
|----- | ------------
|      |             

The components of income tax expense were as follows:

|YEARS ENDED DECEMBER 31          |  | 2006 |         | 2005 |   | 2004   |  
|-------------------------------- |  | ---- | ------- | ---- | - | ------ | -
|                                 |  |      |         |      |   |        |  
|(dollars   in thousands)         |  |      |         |      |   |        |  
|Current tax expense              |  | $    | 105,275 |      | $ | 77,067 |  
|Deferred tax (benefit)   expense |  |      | (6,998  | )    |   | (4,011 | )
|                                 |  |      |         |      |   |        |  
|Income Tax Provision             |  | $    | 98,277  |      | $ | 73,056 |  
|                                 |  |      |         |      |   |        |  

A reconciliation of the statutory federal income tax rate to the effective rate is as follows:

|YEARS ENDED DECEMBER 31             |  | 2006 |      | 2005 |  | 2004 |  
|----------------------------------- |  | ---- | ---- | ---- |  | ---- | -
|                                    |  |      |      |      |  |      |  
|Statutory federal income tax   rate |  |      | 35.0 | %    |  | 35.0 | %
|Dividends received deduction        |  |      | (0.6 | )    |  | (0.8 | )
|Adjustment for tax exposure         |  |      | (0.7 | )    |  |     |  
|Other, net                          |  |      | 0.5  |      |  | 0.5  |  
|                                    |  |      |      |      |  |      |  
|Effective Rate                      |  |      | 34.2 | %    |  | 34.7 | %
|                                    |  |      |      |      |  |      |  

Deferred taxes were recorded based upon differences between the financial statement basis and tax basis of assets and liabilities. The following deferred taxes were recorded:

|DECEMBER 31                                                            |  |   | 2006    |   |   | 2005    |  
|---------------------------------------------------------------------- |  | - | ------- | - | - | ------- | -
|                                                                       |  |   |         |   |   |         |  
|(dollars in thousands)                                                 |  |   |         |   |   |         |  
|DEFERRED   TAX ASSETS:                                                 |  |   |         |   |   |         |  
|Allowance   for loan losses and liability for credit commitment losses |  | $ | 17,834  |   | $ | 15,339  |  
|Deferred   compensation                                                |  |   | 6,658   |   |   | 7,093   |  
|Non-refundable   loan application and commitment fees                  |  |   | 5,311   |   |   |        |  
|Stock   options                                                        |  |   | 3,186   |   |   | 2,764   |  
|Other   than temporary impairment                                      |  |   | 1,924   |   |   | 1,425   |  
|Pension                                                                |  |   | 1,069   |   |   | (159    | )
|Nonaccrual   interest                                                  |  |   | 806     |   |   |        |  
|Other   deferred tax assets                                            |  |   | 241     |   |   | 188     |  
|                                                                       |  |   |         |   |   |         |  
|Gross Deferred Tax Assets                                              |  |   | 37,029  |   |   | 26,650  |  
|                                                                       |  |   |         |   |   |         |  
|DEFERRED   TAX LIABILITIES:                                            |  |   |         |   |   |         |  
|Unrealized   securities gains                                          |  |   | (30,620 | ) |   | (24,289 | )
|Gains   on nonmonetary stock transactions                              |  |   | (8,840  | ) |   | (6,286  | )
|Purchase   accounting adjustments                                      |  |   | (809    | ) |   | (817    | )
|Investment   discount accretion                                        |  |   | (795    | ) |   | (850    | )
|Other   deferred tax liabilities                                       |  |   | (431    | ) |   | (453    | )
|                                                                       |  |   |         |   |   |         |  
|Gross Deferred Tax   Liabilities                                       |  |   | (41,495 | ) |   | (32,695 | )
|                                                                       |  |   |         |   |   |         |  
|Net Deferred Tax Liability                                             |  | $ | (4,466  | ) | $ | (6,045  | )
|                                                                       |  |   |         |   |   |         |  

Management believes that the gross deferred tax asset of $37.0 million at December 31, 2006, could be realized through the carryback of taxable income against prior years.

|24 | CORUS BANKSHARES 2006   ANNUAL REPORT
|-- | -------------------------------------

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|NOTE10 | EMPLOYEE BENEFIT PLANS
|------ | ----------------------
|       |                       

Corus maintains a noncontributory defined benefit pension plan (Retirement Income Plan and Trust) and a defined contribution plan (Employees Savings Plan and Trust). Expense for each of the plans was as follows:

|YEARS ENDED DECEMBER 31             |  |   | 2006  |  |   | 2005  |  |   | 2004 | 
|----------------------------------- |  | - | ----- |  | - | ----- |  | - | ---- | 
|                                    |  |   |       |  |   |       |  |   |      | 
|(dollars in thousands)              |  |   |       |  |   |       |  |   |      | 
|Retirement Income Plan and   Trust  |  | $ | 892   |  | $ | 923   |  | $ | 613  | 
|Employees Savings Plan and   Trust |  |   | 208   |  |   | 194   |  |   | 199  | 
|                                    |  |   |       |  |   |       |  |   |      | 
|Total                               |  | $ | 1,100 |  | $ | 1,117 |  | $ | 812  | 
|                                    |  |   |       |  |   |       |  |   |      | 

PENSION PLAN

Substantially all employees are eligible to participate in a noncontributory defined benefit plan after meeting age and service requirements. Pension benefits are based on length of service and compensation. Funding for the plan is based on actuarial cost methods. No contributions were made during the three years ended December 31, 2006.  Pension plan assets are primarily invested in common stocks.

Net periodic benefit cost was comprised of the following:

|YEARS ENDED DECEMBER 31         |  |   | 2006   |   |   | 2005  |   |   | 2004   |  
|------------------------------- |  | - | ------ | - | - | ----- | - | - | ------ | -
|                                |  |   |        |   |   |       |   |   |        |  
|(dollars in thousands)          |  |   |        |   |   |       |   |   |        |  
|Service cost                    |  | $ | 1,038  |   | $ | 1,008 |   | $ | 787    |  
|Interest cost                   |  |   | 1,419  |   |   | 1,517 |   |   | 1,387  |  
|Actual gain on plan assets      |  |   | (3,186 | ) |   | (924  | ) |   | (2,448 | )
|Net amortization and   deferral |  |   | 1,621  |   |   | (678  | ) |   | 887    |  
|                                |  |   |        |   |   |       |   |   |        |  
|Net Periodic Benefit Cost       |  | $ | 892    |   | $ | 923   |   | $ | 613    |  
|                                |  |   |        |   |   |       |   |   |        |  

CHANGE IN PROJECTED BENEFIT OBLIGATION

|                                    |  |   | 2006   |   |   | 2005   |  
|----------------------------------- |  | - | ------ | - | - | ------ | -
|                                    |  |   |        |   |   |        |  
|(dollars   in thousands)            |  |   |        |   |   |        |  
|Benefit obligation at   January1    |  | $ | 29,206 |   | $ | 24,278 |  
|Service cost                        |  |   | 1,038  |   |   | 1,008  |  
|Interest cost                       |  |   | 1,419  |   |   | 1,517  |  
|Actuarial (gain) loss               |  |   | (4,021 | ) |   | 3,346  |  
|Benefits paid                       |  |   | (941   | ) |   | (943   | )
|                                    |  |   |        |   |   |        |  
|Benefit Obligation at   December 31 |  | $ | 26,701 |   | $ | 29,206 |  
|                                    |  |   |        |   |   |        |  

The accumulated benefit obligation for the plan, which unlike the projected benefit obligation includes no assumption about increases in future compensation levels, was $21.1 million and $20.9 million at December 31, 2006 and 2005, respectively.

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 25
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

CHANGE IN FAIR VALUE OF PLAN ASSETS

|                                           |  |   | 2006   |   |   | 2005   |  
|------------------------------------------ |  | - | ------ | - | - | ------ | -
|                                           |  |   |        |   |   |        |  
|(dollars   in thousands)                   |  |   |        |   |   |        |  
|Fair value of plan assets at   January 1   |  | $ | 21,421 |   | $ | 21,440 |  
|Actual gain on plan assets                 |  |   | 3,186  |   |   | 924    |  
|Benefits paid                              |  |   | (941   | ) |   | (943   | )
|                                           |  |   |        |   |   |        |  
|Fair Value of Plan Assets at   December 31 |  | $ | 23,666 |   | $ | 21,421 |  
|                                           |  |   |        |   |   |        |  

INCREMENTAL EFFECT OF APPLYING SFAS 158 ON INDIVIDUAL LINE ITEMS IN THE CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2006

|                                                 |  | BEFORE APPLICATION OF SFAS 158 |            | ADJUSTMENTS |   | AFTER APPLICATION OF SFAS 158 |  
|------------------------------------------------ |  | ------------------------------ | ---------- | ----------- | - | ----------------------------- | -
|                                                 |  |                                |            |             |   |                               |  
|(dollars   in thousands)                         |  |                                |            |             |   |                               |  
|Accrued interest payable and   other liabilities |  | $                              | 83,465     |             | $ | 1,677                         |  
|Total liabilities                                |  |                                | 9,211,587  |             |   | 1,677                         |  
|Accumulated other comprehensive   income         |  |                                | 56,278     |             |   | (1,677                        | )
|Total shareholders equity                       |  |                                | 846,204    |             |   | (1,677                        | )
|Total liabilities and   shareholders equity     |  |                                | 10,057,791 |             |   |                              |  
|                                                 |  |                                |            |             |   |                               |  

Pursuant to SFAS 158, Accumulated Other Comprehensive Income included unrecognized losses of $1.7 million as of December 31, 2006. None of these losses will be amortized into Net Periodic Pension Cost in 2007.

The following assumptions were used in accounting for the pension plan:

BENEFIT OBLIGATION

|DECEMBER 31                     |  |  | 2006 |   |  | 2005 |  
|------------------------------- |  |  | ---- | - |  | ---- | -
|                                |  |  |      |   |  |      |  
|Discount rate                   |  |  | 5.75 | % |  | 5.75 | %
|Rate of compensation   increase |  |  | 5.00 | % |  | 5.00 | %
|                                |  |  |      |   |  |      |  

NET PERIODIC BENEFIT COST

|DECEMBER 31                      |  |  | 2006 |   |  | 2005 |  
|-------------------------------- |  |  | ---- | - |  | ---- | -
|                                 |  |  |      |   |  |      |  
|Discount rate                    |  |  | 5.75 | % |  | 6.25 | %
|Expected return on plan   assets |  |  | 8.00 | % |  | 8.00 | %
|Rate of compensation   increase  |  |  | 5.00 | % |  | 5.00 | %
|                                 |  |  |      |   |  |      |  

Plan assets are invested entirely in diversified equity securities, and it is managements plan to keep them invested in a diversified pool of equities going forward. Managements investment horizon is considered long term and, as such, long-term equity returns were studied using historical data over rolling 10-, 15-, and 20-year periods going back until the early 20th century. Based on its review of these historical returns, management determined that an expected long-term rate of return of 8.00% was reasonable.

|26 | CORUS BANKSHARES 2006   ANNUAL REPORT
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PLAN ASSETS

Corus pension plan weighted average allocations at December 31, 2006 and 2005, by asset category are as follows:

|                  |  | PLAN   ASSETS ATDECEMBER 31 |     
|----------------- |  | --------------------------- | ----
|                  |  |                             |     
|ASSET CATEGORY    |  |                             | 2006
|                  |  |                             |     
|Equity securities |  |                             | 99  
|Other             |  |                             | 1   
|                  |  |                             |     
|Total             |  |                             | 100 
|                  |  |                             |     

The plan trustees intentions are to invest the majority of plan assets in a portfolio of diversified domestic equity securities with the remainder in cash to meet the immediate needs of the plan. The plan trustees believe that over the long term, which is thought to be the proper horizon for this asset, equity securities will outperform all other investment alternatives. This is based on a careful study of historical returns of various asset classes. The plan trustees are prepared to accept some volatility in specific annual returns during periods when equity securities under-perform the broader market. However, the plan trustees firmly believe that over the long run, such a strategy will perform better than a more diversified asset allocation strategy.

CONTRIBUTIONS

Corus expects to make no contributions to its pension plan in 2007.

EXPECTED FUTURE BENEFIT PAYMENTS

The following benefit payments are expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:

|YEARS ENDING DECEMBER 31 |  | PENSION BENEFIT   PAYMENTS |       
|------------------------ |  | -------------------------- | ------
|                         |  |                            |       
|(dollars   in thousands) |  |                            |       
|2007                     |  | $                          | 940   
|2008                     |  |                            | 1,043 
|2009                     |  |                            | 1,103 
|2010                     |  |                            | 1,187 
|2011                     |  |                            | 1,255 
|2012  2016              |  |                            | 7,780 
|                         |  |                            |       
|Total                    |  | $                          | 13,308
|                         |  |                            |       

MEASUREMENT DATE

The measurement date for the 2006 fiscal year is December 31, 2006. Asset values are determined as of this date. Pension liabilities are valued at the beginning of the year and adjusted to December 31. The end of the year discount rate is used to determine the beginning of year liability.

SAVINGS PLAN

Most employees are eligible to become participants of Corus Employees Savings Plan and Trust. Corus matching contributions to this plan are discretionary. For the years ended December 31, 2006, 2005, and 2004, Corus matched 20% of participants contributions, up to a maximum of $1,500.

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 27
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

|NOTE11 | DERIVATIVES
|------ | -----------
|       |            

Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (SFAS 133), established 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. Special accounting for qualifying hedges (hedge accounting) allows a derivatives gains and losses to be either offset by the change in fair value of the hedged item or deferred through recognition in a component of other comprehensive income. Those derivatives that do not qualify for hedge accounting are required to be marked to market with the impact of the market adjustment recorded directly to income.

Corus utilizes derivatives to hedge its interest rate risk. This is accomplished via interest rate swaps to effectively convert fixed-rate loans and brokered CDs to floating rate. Nearly all of the swaps qualified as fair value hedges and received hedge accounting treatment.

Corus may also purchase and sell interest rate derivatives in anticipation of trading gains. The impact of market adjustments, as well as any gains or losses upon the sale of these swaps held for trading, is recorded directly into income.

The income statement impact and notional amounts related to both hedge and non-hedge derivatives were as follows:

DERIVATIVE GAIN/(LOSS)

|YEARS ENDED DECEMBER 31                       |  | INCOME STATEMENT CLASSIFICATION |  |   | 2006 |  |   | 2005 |  |   | 2004  |  
|--------------------------------------------- |  | ------------------------------- |  | - | ---- |  | - | ---- |  | - | ----- | -
|                                              |  |                                 |  |   |      |  |   |      |  |   |       |  
|(dollars   in thousands)                      |  |                                 |  |   |      |  |   |      |  |   |       |  
|Fair value hedge   (fixed-to-floating swaps): |  |                                 |  |   |      |  |   |      |  |   |       |  
|Loan   hedge                                  |  | Interest Income                 |  | $ |     |  | $ | 44   |  | $ | (10   | )
|Brokered   CD hedge(1)                        |  | Interest Expense                |  |   |     |  |   |     |  |   |      |  
|                                              |  |                                 |  |   |      |  |   |      |  |   |       |  
|Total Fair Value Hedge                        |  |                                 |  |   |     |  |   | 44   |  |   | (10   | )
|                                              |  |                                 |  |   |      |  |   |      |  |   |       |  
|Non-hedge:                                    |  |                                 |  |   |      |  |   |      |  |   |       |  
|Fixed-to-floating   swaps  trading           |  | Noninterest Income              |  |   |     |  |   |     |  |   | 3,580 |  
|Fixed-to-floating   swaps  loans             |  | Noninterest Income              |  |   |     |  |   | 18   |  |   | 80    |  
|Basis   swaps                                 |  | Noninterest Income              |  |   |     |  |   |     |  |   | 1,446 |  
|                                              |  |                                 |  |   |      |  |   |      |  |   |       |  
|Total Non-Hedge                               |  |                                 |  |   |     |  |   | 18   |  |   | 5,106 |  
|                                              |  |                                 |  |   |      |  |   |      |  |   |       |  
|Total Derivative Gain                         |  |                                 |  | $ |     |  | $ | 62   |  | $ | 5,096 |  
|                                              |  |                                 |  |   |      |  |   |      |  |   |       |  

NOTIONAL AMOUNTS OF DERIVATIVES

|DECEMBER 31                                   |  |   | 2006    |  |   | 2005    |  |   | 2004    | 
|--------------------------------------------- |  | - | ------- |  | - | ------- |  | - | ------- | 
|                                              |  |   |         |  |   |         |  |   |         | 
|(dollars   in thousands)                      |  |   |         |  |   |         |  |   |         | 
|Fair value hedge   (fixed-to-floating swaps): |  |   |         |  |   |         |  |   |         | 
|Loan   hedge                                  |  | $ | 509     |  | $ | 1,763   |  | $ | 3,539   | 
|Brokered   CD hedge
(1)                       |  |   | 300,003 |  |   | 355,003 |  |   | 418,503 | 
|                                              |  |   |         |  |   |         |  |   |         | 
|Non-hedge:                                    |  |   |         |  |   |         |  |   |         | 
|Fixed-to-floating   swaps  loans             |  | $ |        |  | $ |        |  | $ | 879     | 
|Basis   swaps                                 |  |   |        |  |   |        |  |   |        | 
|                                              |  |   |         |  |   |         |  |   |         | 

|(1) | These swaps qualify for the
     shortcut method, as defined by SFAS 133. Corus does not
     anticipate any income statement impact from the associated 
     mark-to-market adjustments.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The counterparties to these instruments are major financial institutions with credit ratings of A or better.

|28 | CORUS BANKSHARES 2006   ANNUAL REPORT
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|NOTE12 | FINANCIAL INSTRUMENTS
|------ | ---------------------
|       |                      

In the normal course of business, Corus invests in various financial assets, incurs various financial liabilities and enters into agreements involving unrecognized financial instruments (consisting of standby letters of credit, commitment letters, and unused lines of credit). The fair value estimates of financial instruments presented below are not necessarily indicative of the amounts Corus might receive or pay in actual market transactions. Potential taxes and other transaction costs have also not been considered in estimating fair value. As some of Corus assets and liabilities are not considered financial instruments, the disclosures below do not reflect the fair value of Corus as a whole.

Corus had the following financial instruments:

|                                           |  | 2006              |           | 2005         |  
|------------------------------------------ |  | ----------------- | --------- | ------------ | -
|                                           |  |                   |           |              |  
|DECEMBER 31                                |  | CARRYING   AMOUNT |           | FAIR   VALUE |  
|                                           |  |                   |           |              |  
|(dollars in thousands)                     |  |                   |           |              |  
|FINANCIAL   ASSETS                         |  |                   |           |              |  
|Cash and cash equivalents                  |  | $                 | 441,264   |              | $
|Securities   available-for-sale            |  |                   | 5,431,267 |              |  
|Loans, net                                 |  |                   | 4,096,686 |              |  
|Accrued interest receivable                |  |                   | 43,097    |              |  
|                                           |  |                   |           |              |  
|FINANCIAL   LIABILITIES                    |  |                   |           |              |  
|Deposits without a stated   maturity       |  | $                 | 2,423,699 |              | $
|Certificates of deposit                    |  |                   | 6,280,976 |              |  
|Long-term debt    subordinated debentures |  |                   | 384,028   |              |  
|Federal funds purchased                    |  |                   |          |              |  
|Other borrowings                           |  |                   | 39,419    |              |  
|Accrued interest payable                   |  |                   | 27,481    |              |  
|Other liabilities                          |  |                   | 6,900     |              |  
|                                           |  |                   |           |              |  
|UNRECOGNIZED   FINANCIAL LIABILITIES       |  |                   |           |              |  
|Standby letters of credit                  |  | $                 | 24        |              | $
|Commitment letters                         |  |                   |          |              |  
|Unused lines of credit                     |  |                   |          |              |  
|                                           |  |                   |           |              |  

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 29
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

Cash and cash equivalentsare short-term in nature and, as such, fair value approximates carrying value.

Securitiesconsist primarily of common stocks and investments in U.S. government and agency notes. Fair values are based on quoted market prices, when available.

Loansare valued based on type of loan. The fair value of variable-rate loans that reprice frequently is assumed to approximate carrying value. The fair value of fixed-rate loans is based on the discounted amount of scheduled cash flows. The discount rate used is equal to the current rate of the appropriate index plus the average spread on the existing portfolio.

Accrued interest receivable is short-term in nature and, as such, fair value approximates carrying value.

Deposits without a stated maturity are assumed to approximate carrying value.

Certificates of depositfair values are based on discounted contractual cash flows. Discount rates are selected using the rates that were offered at year-end.

Long-term debtsubordinated debentures are floating rate and reprice quarterly. However, the spreads available on similar debt may fluctuate over time giving rise to changes in fair value.

Federal funds purchased are short-term in nature and, as such, fair value approximates carrying value.

Other borrowings are either short-term in nature or reprice quarterly and, as such, fair value approximates carrying value.

Accrued interest payableis short-term in nature and, as such, fair value approximates carrying value.

Other liabilitiesreflect the fair value of interest rate swaps that hedge brokered CDs. As these are marked to market on a monthly basis, carrying value equals fair value. The fair values of interest rate swaps are based on either quoted market or dealer prices.

Unrecognized financial liabilitiesare valued based on estimated fees currently charged to enter similar agreements, taking into account the remaining terms of the agreement and the present creditworthiness of the counterparties. Carrying value represents the associated deferred fees.

|30 | CORUS BANKSHARES 2006   ANNUAL REPORT
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The following is additional information related to the unrecognized financial liabilities:

|DECEMBER 31                                |  |   | 2006      |  |   | 2005      | 
|------------------------------------------ |  | - | --------- |  | - | --------- | 
|                                           |  |   |           |  |   |           | 
|(dollars   in thousands)                   |  |   |           |  |   |           | 
|STANDBY   LETTERS OF CREDIT                |  |   |           |  |   |           | 
|Commercial   real estate:                  |  |   |           |  |   |           | 
|Condominiums:                              |  |   |           |  |   |           | 
|Construction                               |  | $ | 896       |  | $ | 7,118     | 
|Conversion                                 |  |   | 1,175     |  |   | 1,175     | 
|Other   commercial real estate             |  |   | 202       |  |   | 202       | 
|Commercial                                 |  |   | 5,565     |  |   | 3,598     | 
|Residential   real estate and other        |  |   |          |  |   |          | 
|                                           |  |   |           |  |   |           | 
|Total Standby Letters of   Credit          |  |   | 7,838     |  |   | 12,093    | 
|                                           |  |   |           |  |   |           | 
|COMMITMENT   LETTERS OUTSTANDING           |  |   |           |  |   |           | 
|Commercial   real estate:                  |  |   |           |  |   |           | 
|Condominiums:                              |  |   |           |  |   |           | 
|Construction                               |  |   | 65,250    |  |   | 333,972   | 
|Conversion                                 |  |   |          |  |   |          | 
|Other   commercial real estate             |  |   |          |  |   | 65,900    | 
|Commercial                                 |  |   |          |  |   |          | 
|Residential   real estate and other        |  |   |          |  |   |          | 
|                                           |  |   |           |  |   |           | 
|Total Commitment Letters                   |  |   | 65,250    |  |   | 399,872   | 
|                                           |  |   |           |  |   |           | 
|UNUSED   COMMITMENTS UNDER LINES OF CREDIT |  |   |           |  |   |           | 
|Commercial   real estate:                  |  |   |           |  |   |           | 
|Condominiums:                              |  |   |           |  |   |           | 
|Construction                               |  |   | 3,885,934 |  |   | 3,064,542 | 
|Conversion                                 |  |   | 86,732    |  |   | 202,398   | 
|Other   commercial real estate             |  |   | 244,070   |  |   | 260,000   | 
|Commercial                                 |  |   | 8,438     |  |   | 7,001     | 
|Residential   real estate and other        |  |   | 6,271     |  |   | 9,086     | 
|                                           |  |   |           |  |   |           | 
|Total Unused Lines of Credit               |  |   | 4,231,445 |  |   | 3,543,027 | 
|                                           |  |   |           |  |   |           | 
|TOTAL   COMMITMENTS                        |  |   |           |  |   |           | 
|Commercial   real estate:                  |  |   |           |  |   |           | 
|Condominiums:                              |  |   |           |  |   |           | 
|Construction                               |  |   | 3,952,080 |  |   | 3,405,632 | 
|Conversion                                 |  |   | 87,907    |  |   | 203,573   | 
|Other   commercial real estate             |  |   | 244,272   |  |   | 326,102   | 
|Commercial                                 |  |   | 14,003    |  |   | 10,599    | 
|Residential   real estate and other        |  |   | 6,271     |  |   | 9,086     | 
|                                           |  |   |           |  |   |           | 
|Total Commitments   Outstanding            |  | $ | 4,304,533 |  | $ | 3,954,992 | 
|                                           |  |   |           |  |   |           | 

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 31
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

|NOTE13 | LEGAL AND REGULATORY   PROCEEDINGS
|------ | ----------------------------------
|       |                                   

Corus is involved in various legal and regulatory proceedings involving matters that arose in the ordinary course of business. The consequences of these proceedings are not presently determinable but, in the opinion of management, these proceedings will not have a material effect on the results of operations, financial position, liquidity, or capital resources.

|NOTE14 | SHAREHOLDERS EQUITY
|------ | --------------------
|       |                     

REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS

Corus and its subsidiary bank are required to maintain certain capital ratios. Failure to maintain these ratios would severely limit their ability to pay dividends, support growth, and repurchase shares and would also increase the amount of FDIC insurance premiums. At December 31, 2006 and 2005, Corus and its subsidiary bank were categorized as well-capitalized. Corus capital category is determined solely for the purpose of applying Prompt Corrective Action (PCA) and that capital category may not constitute an accurate representation of Corus overall financial condition or prospects. The PCA provisions of the FDIC Improvement Act of 1991 give banking regulators the legal authority to reduce the capital classification of a bank below what the numerical capital ratios would otherwise indicate. See the Liquidity and Capital Resources section of Managements Discussion and Analysis of Financial Condition and Results of Operations for
further discussion.

There have been no events since December 31, 2006, that management believes would have changed Corus capital category. The minimum ratios required to be well capitalized as well as Corus and its subsidiary banks actual regulatory capital and ratios were as follows:

REGULATORY CAPITAL AND RATIOS

|                                      |  | TIER 1   LEVERAGE |           | TIER 1   RISK-BASED CAPITAL |  | TOTAL   RISK-BASED CAPITAL |  
|------------------------------------- |  | ----------------- | --------- | --------------------------- |  | -------------------------- | -
|                                      |  |                   |           |                             |  |                            |  
|                                      |  |                   | AMOUNT    |                             |  | RATIO                      |  
|                                      |  |                   |           |                             |  |                            |  
|(dollars   in thousands)              |  |                   |           |                             |  |                            |  
|Minimum ratios for   well-capitalized |  |                   |           |                             |  | 5.0                        | %
|December
31, 2006:                    |  |                   |           |                             |  |                            |  
|Corus   Bankshares, Inc.              |  | $                 | 1,047,205 |                             |  | 10.6                       | %
|Subsidiary   bank                     |  | $                 | 970,126   |                             |  | 10.0                       | %
|December 31, 2005:                    |  |                   |           |                             |  |                            |  
|Corus   Bankshares, Inc.              |  | $                 | 855,006   |                             |  | 10.7                       | %
|Subsidiary bank                       |  | $                 | 870,514   |                             |  | 11.1                       | %
|                                      |  |                   |           |                             |  |                            |  

The payment of dividends to Corus by its subsidiary bank is subject to federal regulatory limitations. National banks are generally allowed to pay dividends to the extent of net income for the current and prior two years without regulatory approval. The payment of dividends by any bank may also be affected by other factors, such as the maintenance of adequate capital, as discussed above. At December 31, 2006, the total amount of the subsidiary banks retained earnings available for dividends without prior regulatory approval and maintaining well-capitalized status was $258 million.

|32 | CORUS BANKSHARES 2006   ANNUAL REPORT
|-- | -------------------------------------

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EQUITY COMPENSATION PLANS

Corus utilizes its stock to compensate employees under various nonqualified stock option plans (the Stock Option Plans). In addition, Corus Commission Program for Commercial Loan Officers (the CLO Program) provides for the use of Corus stock as an investment vehicle for commission holdbacks. These plans are described more fully below. All amounts have been restated to reflect a 2-for-1 stock split on May 18, 2006.

Stock Option PlansOptions to purchase Corus common stock have been granted to employees under the Stock Option Plans at exercise prices equal to the closing market price of the underlying stock on either the grant date or one business day prior. The stock options vest 20% per year, over a five-year period, and expire in 10 years. At December 31, 2006, there were 2,643,880 shares available for grant. For the years ended December 31, 2006, 2005, and 2004, the Company granted options to purchase 356,120 shares, 299,200 shares, and 329,500 shares, respectively, of Corus common stock to certain employees.

For the years ended December 31, 2006, 2005, and 2004, stock option expense totaled $1.9 million, $1.7 million, and $1.4 million, respectively. The resulting deferred tax benefit was $671,000, $598,000, and $520,000, for the years ended December 31, 2006, 2005, and 2004, respectively. The expense was based on the fair value of stock options granted calculated using the Black-Scholes valuation model.

The fair value of stock options granted was computed using the Black-Scholes valuation model using the following assumptions:

|GRANT DATE               |  |   | 5/24/06   |   |   | 4/8/05     |   |   | 7/19/04    |   |   | 4/30/04    |  
|------------------------ |  | - | --------- | - | - | ---------- | - | - | ---------- | - | - | ---------- | -
|                         |  |   |           |   |   |            |   |   |            |   |   |            |  
|Expected volatility      |  |   | 27.30     | % |   | 26.60      | % |   | 27.20      | % |   | 27.30      | %
|Expected dividend yields |  |   | 3.00      | % |   | 2.89       | % |   | 3.15       | % |   | 3.27       | %
|Expected life            |  |   | 8   years |   |   | 10   years |   |   | 10   years |   |   | 10   years |  
|Risk-free rate           |  |   | 4.97      | % |   | 4.70       | % |   | 4.68       | % |   | 4.85       | %
|Fair value               |  | $ | 7.97      |   | $ | 6.93       |   | $ | 5.46       |   | $ | 5.24       |  
|                         |  |   |           |   |   |            |   |   |            |   |   |            |  

Expected volatility is based on the quarterly closing stock prices of the Companys common stock over a period of eight years for the stock options granted in 2006 and over a period of ten years for the 2005 and 2004 grants.

A summary of the changes in stock options outstanding for the year ended December 31, 2006, is illustrated below:

|YEAR ENDED DECEMBER 31, 2006          |  | NUMBER   OF SHARES |       | WEIGHTED   AVERAGE   EXERCISE PRICE |   | WEIGHTED   AVERAGE   REMAINING   CONTRACTUAL LIFE |  | AGGREGATEINTRINSIC VALUE (1) |            
|------------------------------------- |  | ------------------ | ----- | ----------------------------------- | - | ------------------------------------------------- |  | ---------------------------- | -----------
|                                      |  |                    |       |                                     |   |                                                   |  |                              |            
|(in thousands, except exercise price) |  |                    |       |                                     |   |                                                   |  |                              |            
|Beginning options outstanding         |  |                    | 2,958 |                                     | $ | 11.96                                             |  |                              |            
|Grants                                |  |                    | 356   |                                     |   | 28.86                                             |  |                              |            
|Exercises                             |  |                    | (182  | )                                   |   | 9.78                                              |  |                              |            
|Forfeitures/Expirations               |  |                    | (6    | )                                   |   | 19.03                                             |  |                              |            
|                                      |  |                    |       |                                     |   |                                                   |  |                              |            
|Ending Options Outstanding            |  |                    | 3,126 |                                     | $ | 14.00                                             |  |                              | 5.4   years
|                                      |  |                    |       |                                     |   |                                                   |  |                              |            
|Exercisable at December 31            |  |                    | 2,096 |                                     | $ | 10.23                                             |  |                              | 4.2   years
|                                      |  |                    |       |                                     |   |                                                   |  |                              |            

|(1) | Excludes those stock options where the exercise   price exceeds the market value of the underlying stock at 12/31/06.
|--- | ---------------------------------------------------------------------------------------------------------------------

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 33
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table provides additional details regarding exercises of stock options for the years ended December 31, 2006, 2005, and 2004:

|YEARS ENDED DECEMBER 31                                            |  |   | 2006  |  |   | 2005  |  |   | 2004 | 
|------------------------------------------------------------------ |  | - | ----- |  | - | ----- |  | - | ---- | 
|                                                                   |  |   |       |  |   |       |  |   |      | 
|(in thousands)                                                     |  |   |       |  |   |       |  |   |      | 
|Number of options exercised                                        |  |   | 182   |  |   | 201   |  |   | 48   | 
|Cash proceeds from exercises                                       |  | $ | 1,782 |  | $ | 1,734 |  | $ | 564  | 
|Tax benefit                                                        |  |   |       |  |   |       |  |   |      | 
|   Based on Black-Scholes fair value                              |  | $ | 222   |  | $ | 227   |  | $ | 85   | 
|   Based on intrinsic value in excess of Black-Scholes fair value |  | $ | 1,007 |  | $ | 1,167 |  | $ | 61   | 
|Intrinsic Value                                                    |  | $ | 3,512 |  | $ | 3,984 |  | $ | 417  | 
|                                                                   |  |   |       |  |   |       |  |   |      | 

In addition to the activity detailed in the above table, Corus used $512,000 in cash to settle 38,560 stock options in 2004. As of December 31, 2006, nonvested stock options had a grant date fair value of $4.3 million. The expense will be recorded over a weighted-average period of 3.3 years.

Commission Program for Commercial Loan Officers Corus maintains a Commission Program for its Commercial Loan Officers (the CLO Program). Commissions are calculated in accordance with the formula set forth in the CLO Program. While total commissions are expensed each year, only a portion is generally paid in that year with the remainder held back for up to nine years. The commercial loan officers have various alternatives for investing their holdbacks including units that are each equivalent to a share of Corus common stock. Holdbacks in Corus common stock are recorded as equity and included in capital surplus. The determination as to whether or not commissions are held back in Corus common stock is made in the fourth quarter of each calendar year. During the holdback period, no market adjustments are made and thus no additional expense is recorded.

While the commissions are generally held back for up to nine years and are subject to loss in the event the Company suffers a loss on the loan, the CLO Program does allow for the release of holdbacks in instances where an officers holdback is no longer considered to be at a substantial risk of forfeiture, as calculated under the CLO Program. Upon release, Corus is entitled to a tax benefit equal to the market value of the released shares of Corus common stock.

CLO Program stock holdbacks in 2006 totaled $1.6 million. Corus issued 314,830 common shares and 120,432 common shares in 2006 and 2005, respectively, to certain commercial loan officers. The release resulted in an incremental tax benefit to Corus of $1.0 million and $0.6 million in 2006 and 2005, respectively, recorded as additional surplus in accordance with SFAS 123(R). As of December 31, 2006 and 2005, surplus included $11.3 million and $13.2 million, respectively, of commissions held back in Corus common stock. Commissions held back in other than Corus common stock were valued at $7.6 million and $6.8 million at December 31, 2006 and 2005, respectively and are included in other liabilities.

|34 | CORUS BANKSHARES 2006   ANNUAL REPORT
|-- | -------------------------------------

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|NOTE15 | NET INCOME PER SHARE
|------ | --------------------
|       |                     

Net income per share was calculated as follows:

|YEARS ENDED DECEMBER 31                       |  |   | 2006    |  |   | 2005    |  |   | 2004   | 
|--------------------------------------------- |  | - | ------- |  | - | ------- |  | - | ------ | 
|                                              |  |   |         |  |   |         |  |   |        | 
|(in thousands, except per share data)         |  |   |         |  |   |         |  |   |        | 
|Numerator:                                    |  |   |         |  |   |         |  |   |        | 
|Net   income attributable to common shares    |  | $ | 189,444 |  | $ | 137,229 |  | $ | 97,939 | 
|                                              |  |   |         |  |   |         |  |   |        | 
|Denominator:                                  |  |   |         |  |   |         |  |   |        | 
|Average   common shares outstanding  Basic   |  |   | 55,968  |  |   | 55,688  |  |   | 55,792 | 
|Effect   of dilutive common stock options     |  |   | 1,737   |  |   | 2,022   |  |   | 1,844  | 
|                                              |  |   |         |  |   |         |  |   |        | 
|Average   common shares outstanding  Diluted |  |   | 57,705  |  |   | 57,710  |  |   | 57,636 | 
|                                              |  |   |         |  |   |         |  |   |        | 
|Net income per share
:                        |  |   |         |  |   |         |  |   |        | 
|Basic                                         |  | $ | 3.38    |  | $ | 2.46    |  | $ | 1.76   | 
|Diluted                                       |  |   | 3.28    |  |   | 2.38    |  |   | 1.70   | 
|                                              |  |   |         |  |   |         |  |   |        | 

On April 18, 2006, the Board of Directors of the Company declared a 2-for-1 stock split to be effected in the form of a 100 percent stock dividend. The additional shares were distributed on May 18, 2006, to shareholders of record at the close of business on May 1, 2006. All amounts have been restated for the years ended December 31, 2005 and 2004, respectively, to reflect this dividend. Additionally, for the year ended December 31, 2006, stock options outstanding to purchase 355,120 shares were not included in the computation of diluted earnings per share because the effect would have been antidilutive. For the years ended December 31, 2005 and 2004, all stock options outstanding as of those periods were included in the computation of diluted earnings per share.

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 35
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

|NOTE16 | RELATED PARTY TRANSACTIONS
|------ | --------------------------
|       |                           
|       |                           

From time to time, Corus may enter into transactions with related persons. Related persons include executive officers, directors, beneficial owners of 5% or more of Corus stock, immediate family members of these persons and entities in which any of these persons has a direct or indirect material interest. In accordance with the Audit Committee charter, all related party transactions are reviewed and approved by the Audit Committee.

Edward W. Glickman, a 10% beneficial owner of the Company, Robert J. Glickman, President and CEO of the Company, and Joseph C. Glickman, Chairman of the Board of Directors of the Company, participated in certain loans originated by Corus. These participations resulted from situations where Corus, due to legal lending limit restrictions and holding company participation policy limits, required an outside partys participation in order to close the loans. As an accommodation to Corus, the Glickmans agreed to participate in the
  loans.

The participation details were as follows:

|                         |  | TOTAL   COMMITMENT   AS OF DECEMBER 31 |       | FUNDED   AMOUNT(1)   AS OF DECEMBER 31 |  
|------------------------ |  | -------------------------------------- | ----- | -------------------------------------- | -
|                         |  |                                        |       |                                        |  
|PARTICIPANT              |  |                                        | 2006  |                                        |  
|                         |  |                                        |       |                                        |  
|(dollars   in thousands) |  |                                        |       |                                        |  
|Edward W. Glickman       |  | $                                      | 3,291 |                                        | $
|Robert J. Glickman       |  |                                        |      |                                        |  
|Joseph C. Glickman       |  |                                        |      |                                        |  
|                         |  |                                        |       |                                        |  

|(1) | The   funded amount also represents the largest outstanding balance for each year   presented.                                                                                                                                                                                                                                                          
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | As of   December 31, 2005, R.J. Glickman was committed to participate in the loan but   the loan did not close until January 2006, at which point $178,000 in fees   were earned. Further, R.J. Glickman earned an additional $60,000 in fees from   a separate loan participation for which the    commitment period expired in 2006 (see table below).

|                       |  | FEES AND INTEREST PAID TO PARTICIPANT IN |     
|---------------------- |  | ---------------------------------------- | ----
|                       |  |                                          |     
|PARTICIPANT            |  |                                          | 2006
|                       |  |                                          |     
|(dollars in thousands) |  |                                          |     
|Edward W. Glickman     |  | $                                        | 218 
|Robert J. Glickman     |  |                                          | 238 
|Joseph C. Glickman     |  |                                          |    
|                       |  |                                          |     

Under the participation agreements, the participants are required to fund their committed amounts at the same time and in proportion to the amount committed by Corus. In addition, the participants receive interest based on the same terms as those applicable to Corus and are subject to the same credit risks. No interest is earned on unfunded commitments.

Separately, in 2005, a letter of credit totaling $0.7 million was issued to a director of Corus. No funds were ever drawn and the letter of credit was canceled prior to December 31, 2005. The letter of credit was made on substantially the same terms as those prevailing at the time for comparable transactions with other customers. In the opinion of management, the letter of credit did not involve more than the normal risk of collection or possess other favorable terms.

The Audit Committee has approved the related party transactions described above in accordance with the Audit Committee charter.

|36 | CORUS BANKSHARES 2006   ANNUAL REPORT
|-- | -------------------------------------

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|NOTE17 | PARENT COMPANY FINANCIAL   STATEMENTS
|------ | -------------------------------------
|       |                                      
|       |                                      

Corus condensed parent company financial statements were as follows:

CONDENSED BALANCE SHEETS

|DECEMBER 31                                    |  |   | 2006      |  |   | 2005      | 
|---------------------------------------------- |  | - | --------- |  | - | --------- | 
|                                               |  |   |           |  |   |           | 
|(dollars   in thousands)                       |  |   |           |  |   |           | 
|ASSETS:                                        |  |   |           |  |   |           | 
|Cash                                           |  | $ | 96,296    |  | $ | 18,935    | 
|Available-for-sale   securities, at fair value |  |   | 233,663   |  |   | 200,153   | 
|Investment   in subsidiary                     |  |   | 970,378   |  |   | 871,016   | 
|Loans,   net of unearned income                |  |   | 22,760    |  |   | 19,675    | 
|Other   assets                                 |  |   | 2,889     |  |   | 2,210     | 
|                                               |  |   |           |  |   |           | 
|Total Assets                                   |  | $ | 1,325,986 |  | $ | 1,111,989 | 
|                                               |  |   |           |  |   |           | 
|LIABILITIES   AND SHAREHOLDERS EQUITY:        |  |   |           |  |   |           | 
|Long-term   debt  subordinated debentures     |  | $ | 384,028   |  | $ | 358,254   | 
|Other   borrowings                             |  |   | 38,301    |  |   | 19,150    | 
|Other   liabilities                            |  |   | 59,130    |  |   | 44,810    | 
|Shareholders   equity                         |  |   | 844,527   |  |   | 689,775   | 
|                                               |  |   |           |  |   |           | 
|Total Liabilities and   Shareholders Equity   |  | $ | 1,325,986 |  | $ | 1,111,989 | 
|                                               |  |   |           |  |   |           | 

CONDENSED STATEMENTS OF INCOME

|YEARS ENDED DECEMBER 31                                                           |  |   | 2006    |   |   | 2005    |   |   | 2004   | 
|--------------------------------------------------------------------------------- |  | - | ------- | - | - | ------- | - | - | ------ | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|(dollars in thousands, except per share data)                                     |  |   |         |   |   |         |   |   |        | 
|INCOME:                                                                           |  |   |         |   |   |         |   |   |        | 
|Dividends   from bank subsidiary                                                  |  | $ | 99,000  |   | $ | 20,700  |   | $ | 32,500 | 
|Interest,   loan fees, and dividend income                                        |  |   | 11,337  |   |   | 9,662   |   |   | 6,824  | 
|Securities   gains/(losses), net                                                  |  |   | 6,071   |   |   | 12,544  |   |   | 31,582 | 
|Other   income                                                                    |  |   | 20      |   |   |        |   |   | 47     | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|Total Income                                                                      |  |   | 116,428 |   |   | 42,906  |   |   | 70,953 | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|EXPENSE:                                                                          |  |   |         |   |   |         |   |   |        | 
|Interest   expense                                                                |  |   | 29,495  |   |   | 18,750  |   |   | 10,175 | 
|Other   expenses                                                                  |  |   | 2,202   |   |   | 1,354   |   |   | 1,554  | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|Total   Expense                                                                   |  |   | 31,697  |   |   | 20,104  |   |   | 11,729 | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|Income   Before Income Taxes and Equity in Undistributed Net Income of Subsidiary |  |   | 84,731  |   |   | 22,802  |   |   | 59,224 | 
|Income   tax (benefit) expense                                                    |  |   | (6,985  | ) |   | (907    | ) |   | 7,988  | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|Income   Before Equity in Undistributed Net Income of Subsidiary                  |  |   | 91,716  |   |   | 23,709  |   |   | 51,236 | 
|Equity   in undistributed net income of bank subsidiary                           |  |   | 97,728  |   |   | 113,520 |   |   | 46,703 | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|Net Income                                                                        |  | $ | 189,444 |   | $ | 137,229 |   | $ | 97,939 | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 
|Net income per share:
(1)                                                         |  |   |         |   |   |         |   |   |        | 
|Basic                                                                             |  | $ | 3.38    |   | $ | 2.46    |   | $ | 1.76   | 
|Diluted                                                                           |  |   | 3.28    |   |   | 2.38    |   |   | 1.70   | 
|                                                                                  |  |   |         |   |   |         |   |   |        | 

|(1) | All amounts have been   restated to reflect a 2-for-1 stock split on 5/18/06
|--- | ----------------------------------------------------------------------------

|CORUS   BANKSHARES 2006 ANNUAL REPORT | 37
|------------------------------------- | --

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NOTES to CONSOLIDATED FINANCIAL STATEMENTS (continued)

CONDENSED STATEMENTS OF CASH FLOWS

|YEARS ENDED DECEMBER 31                                                             |  |   | 2006    |   |   | 2005     |   |   | 2004    |  
|----------------------------------------------------------------------------------- |  | - | ------- | - | - | -------- | - | - | ------- | -
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|(dollars in thousands)                                                              |  |   |         |   |   |          |   |   |         |  
|CASH FLOWS   FROM OPERATING ACTIVITIES:                                             |  |   |         |   |   |          |   |   |         |  
|Net income                                                                          |  | $ | 189,444 |   | $ | 137,229  |   | $ | 97,939  |  
|Adjustments to reconcile net   income to net cash provided by operating activities: |  |   |         |   |   |          |   |   |         |  
|Depreciation                                                                        |  |   | 2       |   |   | 3        |   |   | 5       |  
|Securities   (gains)/losses, net                                                    |  |   | (6,071  | ) |   | (12,544  | ) |   | (31,582 | )
|Deferred   income tax (benefit) expense                                             |  |   | (373    | ) |   | (1,060   | ) |   | 7,711   |  
|(Increase)   decrease in other assets                                               |  |   | (681    | ) |   | (506     | ) |   | 14,570  |  
|Increase   (decrease) in other liabilities                                          |  |   | 4,883   |   |   | (248     | ) |   | 4,792   |  
|Equity   in undistributed net income of bank subsidiary                             |  |   | (97,728 | ) |   | (113,520 | ) |   | (46,703 | )
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|Net   Cash Provided by Operating Activities                                         |  |   | 89,476  |   |   | 9,354    |   |   | 46,732  |  
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|CASH FLOWS   FROM INVESTING ACTIVITIES:                                             |  |   |         |   |   |          |   |   |         |  
|Proceeds   from sales of available-for-sale securities                              |  |   | 15,752  |   |   | 35,241   |   |   | 15,079  |  
|Proceeds  from maturities of available-for-sale securities                          |  |   | 15,000  |   |   |         |   |   |        |  
|Purchases   of available-for-sale securities                                        |  |   | (41,041 | ) |   | (4,295   | ) |   | (21,109 | )
|Loan   participations funded, net                                                   |  |   | (3,085  | ) |   | (8,973   | ) |   | (10,702 | )
|Capital   infusion to subsidiary bank                                               |  |   |        |   |   | (93,000  | ) |   | (42,000 | )
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|Net   Cash Used in Investing Activities                                             |  |   | (13,374 | ) |   | (71,027  | ) |   | (58,732 | )
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|CASH FLOWS   FROM FINANCING ACTIVITIES:                                             |  |   |         |   |   |          |   |   |         |  
|Net   proceeds from issuance of long-term debt  subordinated debentures            |  |   | 25,000  |   |   | 100,000  |   |   | 75,000  |  
|Repayment   of debt                                                                 |  |   |        |   |   |         |   |   | (35,000 | )
|Increase   in other borrowings, net                                                 |  |   | 19,151  |   |   | 13,650   |   |   | 5,500   |  
|Cash   proceeds from stock option exercises                                         |  |   | 1,782   |   |   | 1,734    |   |   | 564     |  
|Equity   increase from subsidiary equity compensation plans                         |  |   | 3,552   |   |   | 3,499    |   |   | 5,412   |  
|Repurchases   and retirements of common shares                                      |  |   | (2,087  | ) |   | (1,748   | ) |   | (10,821 | )
|Cash   dividends paid on common shares                                              |  |   | (46,139 | ) |   | (37,921  | ) |   | (33,140 | )
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|Net   Cash Provided by Financing Activities                                         |  |   | 1,259   |   |   | 79,214   |   |   | 7,515   |  
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|Net Increase (Decrease) in   Cash and Cash Equivalents                              |  |   | 77,361  |   |   | 17,541   |   |   | (4,485  | )
|Cash and cash equivalents at   beginning of year                                    |  |   | 18,935  |   |   | 1,394    |   |   | 5,879   |  
|                                                                                    |  |   |         |   |   |          |   |   |         |  
|Cash and Cash Equivalents at   End of Year                                          |  | $ | 96,296  |   | $ | 18,935   |   | $ | 1,394   |  
|                                                                                    |  |   |         |   |   |          |   |   |         |  

|38 | CORUS BANKSHARES 2006   ANNUAL REPORT
|-- | -------------------------------------

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|NOTE18 | QUARTERLY FINANCIAL DATA   (UNAUDITED)
|------ | --------------------------------------
|       |                                       

The following is a summary of quarterly financial information for the years ended December 31, 2006 and 2005:

|                                                                                   |  | YEAR ENDED   DECEMBER 31, 2006 |         | YEAR ENDED   DECEMBER 31, 2005 |  
|---------------------------------------------------------------------------------- |  | ------------------------------ | ------- | ------------------------------ | -
|                                                                                   |  |                                |         |                                |  
|                                                                                   |  | FOURTH QUARTER                 |         | THIRD QUARTER                  |  
|                                                                                   |  |                                |         |                                |  
|(dollars in thousands, except per share   data)                                    |  |                                |         |                                |  
|Interest, loan fees, and   dividend income                                         |  | $                              | 194,289 |                                | $
|Interest expense                                                                   |  |                                | 113,179 |                                |  
|                                                                                   |  |                                |         |                                |  
|Net   Interest Income                                                              |  |                                | 81,110  |                                |  
|Provision for credit losses                                                        |  |                                | (4,500  | )                              |  
|                                                                                   |  |                                |         |                                |  
|Net   Interest Income After Provision for Credit Losses                            |  |                                | 76,610  |                                |  
|Noninterest income,   excluding securities gains/(losses), net                     |  |                                | 3,360   |                                |  
|Securities gains/(losses),   net                                                   |  |                                | 6,606   |                                |  
|Noninterest expense                                                                |  |                                | 16,230  |                                |  
|                                                                                   |  |                                |         |                                |  
|Income   Before Income Taxes                                                       |  |                                | 70,346  |                                |  
|Income tax expense                                                                 |  |                                | 23,169  |                                |  
|                                                                                   |  |                                |         |                                |  
|Net Income                                                                         |  | $                              | 47,177  |                                | $
|                                                                                   |  |                                |         |                                |  
|Net income per share:
(1)                                                          |  |                                |         |                                |  
|Basic                                                                              |  | $                              | 0.84    |                                | $
|Diluted                                                                            |  |                                | 0.82    |                                |  
|                                                                                   |  |                                |         |                                |  
|(1)  All amounts have been   restated to reflect a 2-for-1 stock split on 5/18/06.

COMMON STOCK MARKET INFORMATION AND DIVIDEND HIGHLIGHTS

|                                                                              |  | YEAR ENDED   DECEMBER 31, 2006 |       | YEAR ENDED   DECEMBER 31, 2005 |  
|----------------------------------------------------------------------------- |  | ------------------------------ | ----- | ------------------------------ | -
|                                                                              |  |                                |       |                                |  
|                                                                              |  | FOURTH   QUARTER               |       | THIRD   QUARTER                |  
|                                                                              |  |                                |       |                                |  
|Stock price range                                                             |  |                                |       |                                |  
|High                                                                          |  | $                              | 25.29 |                                | $
|Low                                                                           |  |                                | 19.75 |                                |  
|Close                                                                         |  |                                | 23.07 |                                |  
|Cash dividends declared                                                       |  |                                | 0.250 |                                |  
|                                                                              |  |                                |       |                                |  
|All   amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.

Corus common stock trades on the NASDAQ Global Select Market tier of the NASDAQ Stock Market under the ticker symbol CORS.

CORUS BANKSHARES 2006 ANNUAL REPORT   39

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REPORT ofINDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Corus Bankshares, Inc.

We have audited the accompanying consolidated balance sheets of Corus Bankshares, Inc. and subsidiary as of December 31, 2006 and 2005, and the related consolidated statements of income, changes in shareholders equity and cash flows for each of the three years in the period ended December 31, 2006. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Corus Bankshares, Inc. and subsidiary at December 31, 2006 and 2005, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Corus Bankshares, Inc.s internal control over financial reporting as of December 31, 2006, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 16, 2007, expressed an unqualified opinion thereon.

| | /s/ ERNST & YOUNG LLP
| | ---------------------

Chicago, IllinoisFebruary 16, 2007

40   CORUS BANKSHARES 2006 ANNUAL REPORT

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REPORT ofINDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Corus Bankshares, Inc.

We have audited managements assessment, included in the accompanying Managements Report on Internal Control over Financial Reporting, that Corus Bankshares, Inc. maintained effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal Control  Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). Corus Bankshares, Inc.s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on managements assessment and an opinion on the effectiveness of the companys internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, evaluating managements assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal control over financial reporting includes those policies and procedures that 1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; 2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and 3)
provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, managements assessment that Corus Bankshares, Inc. maintained effective internal control over financial reporting as of December 31, 2006, is fairly stated, in all material respects, based on the COSO criteria. Also, in our opinion, Corus Bankshares, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2006, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the 2006 consolidated financial statements of Corus Bankshares, Inc. and our report dated February 16, 2007, expressed an unqualified opinion thereon.

| | /s/ ERNST   & YOUNG LLP
| | -----------------------

Chicago, IllinoisFebruary16, 2007

CORUS BANKSHARES 2006 ANNUAL REPORT    41

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MANAGEMENTS REPORT on INTERNAL CONTROLoverFINANCIAL REPORTING

Management of Corus Bankshares, Inc. (Corus) is responsible for establishing and maintaining adequate internal control over financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission. Corus internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over financial reporting includes those written policies and procedures that:

| | pertain to   the maintenance of records that in reasonable detail accurately and fairly   reflect the transactions and dispositions of the assets of the company;                                                               
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                 
| | provide   reasonable assurance that transactions are recorded as necessary to permit   preparation of financial statements in accordance with generally accepted   accounting principles;                                       
|  |                                                                                                                                                                                                                                 
| | provide   reasonable assurance that receipts and expenditures of the company are being   made only in accordance with authorizations of management and directors of   the company; and                                          
|  |                                                                                                                                                                                                                                 
| | provide   reasonable assurance regarding prevention or timely detection of unauthorized   acquisition, use, or disposition of the companys assets that could have a   material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of Corus internal control over financial reporting as of December 31, 2006. Management based this assessment on criteria for effective internal control over financial reporting described in Internal ControlIntegrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Managements assessment included an evaluation of the design of Corus internal control over financial reporting and testing of the operational effectiveness of its internal control over financial reporting. Management reviewed the results of its assessment with the Audit Committee of our Board of Directors.

Based on this assessment, management determined that, as of December 31, 2006, Corus maintained effective internal control over financial reporting.

Ernst & Young LLP, an independent registered public accounting firm who audited and reported on the consolidated financial statements of Corus, included in this annual report an attestation report on managements assessment of Corus internal control over financial reporting.

| | /s/ ROBERT J. GLICKMAN                |  | /s/ TIM H. TAYLOR                                   
| | ------------------------------------- |  | ----------------------------------------------------
| |                                       |  |                                                     
| | ROBERT J. GLICKMAN                    |  | TIM H. TAYLOR                                       
| | President and Chief Executive Officer |  | Executive Vice President and Chief Financial Officer

February 12, 2007

42   CORUS BANKSHARES 2006 ANNUAL REPORT

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL
CONDITION andRESULTS ofOPERATIONS

|BUSINESS   SUMMARY
|------------------
|                  

Corus Bankshares, Inc. (Corus or the Company),
incorporated in Minnesota in 1958, is a bank holding company registered under
the Bank Holding Company Act of 1956. Corus provides consumer and corporate
banking products and services through its wholly-owned banking subsidiary, Corus
Bank, N.A. (the Bank). Corus other activities include
investments in the common stocks of financial industry companies as well
as participations in certain of the Banks larger commercial real estate
loans. The two main business activities for the Bank are commercial real estate
lending and deposit gathering. The third, and smaller, business is servicing the
check cashing industry.

|EXECUTIVE   OVERVIEW
|--------------------
|                    

Corus 2006 earnings were the highest annual earnings in the Companys
history. These earnings were the result of managements continued focus on
commercial real estate loans, particularly those secured by condominium
construction and conversion projects. Originations remained strong in 2006 at
$3.9 billion, contributing to a year-end balance of total commitments
(outstanding balances + unfunded commitments) essentially flat to one year
ago. Furthermore, while the year-end balance of loans outstanding declined
compared to 2005, average loans outstanding for the year ended December 31,
2006, increased by over 25% compared to last year. Finally, as of December 31,
2006, total assets exceeded $10 billion, for the first time in the
Companys history.

Managements
continued focus on cost control yielded an efficiency ratio of 18.4% for
the year, which is among the lowest in the industry. Corus strong earnings
this year pushed shareholders equity above $800 million for the first time
 even after declaring annual dividends of $50 million to the
Companys shareholders. It is all the more impressive that with such large
equity, Corus was able to generate a return on average equity of 25% during
2006.

Corus, having a loan portfolio invested almost exclusively in loans to condominium developers, is feeling the effects of the nationwide slowdown in the housing market. Evidence of this slowdown is clear from the 39% decline in the pipeline of Pending Loans as compared to December 31, 2005. However, when analyzing the loan originations, it is important to differentiate between conversion loans and new construction loans. The origination of construction loans in 2006 totaled $3.3 billion, which was up 24% from the amount of construction loans originated in 2005. Unfortunately, the conversion of apartments to condominiums all but ceased and, as a result, originations of conversion loans dropped dramatically in 2006 to only $546 million. The first quarter of 2006 was the last time the Company originated a meaningful amount of conversion loans, and management does not anticipate that changing in the near
future.

Aside from the effects on new loan origination volumes, the slowdown in the housing market is also impacting Corus in terms of credit quality of loans already on its books. The Company has witnessed various projects that are experiencing slower sales of condominium units and/or lower prices than the developer or Corus would like. While construction projects are clearly not immune to the forces of the slowdown, conversion projects are presently displaying more obvious signs of weakness. There are currently two condominium conversion loans where the accrual of interest has been discontinued. While there have been other loans that have displayed signs of weakness, borrowers or their
financial backers have taken steps to strengthen the loans, including investing additional dollars, signing
financial guarantees or taking other actions that ultimately strengthen the loans from managements
perspective.

When foreclosure appears to be the best course of action for addressing a problem loan, management will not hesitate to do so. Management believes that the loans were underwritten conservatively, leaving room for loan amounts to increase or the collateral values to decrease and still have the Bank get repaid in full. As a result, management has no intention of agreeing to a workout if a borrower approaches management with the attitude that we should leave him in control of the project and give him all of the upside if the market turns around, but leaves the Bank to take all of the downside risk.

CORUS BANKSHARES 2006 ANNUAL REPORT   43

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

With all of this
discussion of slowing loan volume and potential credit problems, management
would like to reiterate that Corus nonetheless continues to see good
opportunities for new loans in the condominium construction market, where
Corus 2006 originations exceeded 2005 originations. Management continues
to believe that many profitable opportunities, for both the Bank and its
customers, exist in many cities across the country to build and develop
condominium projects. While others may be looking for an exit strategy, Corus
sees opportunity.

|RESULTS OF   OPERATIONS
|-----------------------
|                       

Corus Bankshares, Inc. (Corus) reported net income of $189.4 million in 2006, compared with $137.2 million and $97.9 million in 2005 and 2004, respectively. This translates to diluted earnings per share of $3.28, $2.38, and $1.70 for 2006, 2005, and 2004, respectively. Return on average common shareholders equity was 25.0% for 2006, 21.8% for 2005, and 17.4% for 2004. The return on average assets was 2.0% in 2006, compared with 2.1% and 2.4% in 2005 and 2004, respectively.

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income, which is the difference between interest income and fees on earning assets and interest expense on deposits and borrowings, is the major source of earnings for Corus. The related net interest margin (the NIM) represents net interest income as a percentage of the average earning assets during the period.

For the year ended December 31, 2006, Corus net interest income increased to $341.9 million compared to $249.7 million and $151.5 million for the years ended December 31, 2005 and 2004, respectively. The growth in net interest income since 2004 is due primarily to the tremendous growth in the commercial real estate loan portfolio. Since 2004, average commercial real estate loans outstanding have grown 88%, or 38% per year on an annualized basis, supported by tremendous deposit growth. Loan fee income increased as well to $96.2 million in 2006, up from $78.8 million in 2005 and $43.6 million in 2004. Finally, net interest income benefited from the Bank being asset sensitive (discussed below) during a period of increasing short-term interest rates.

While average commercial real estate loans increased on an annual basis, balances outstanding began to decline midway through 2006, such that for the fourth quarter, the average balance was actually lower than it had been in the fourth quarter of 2005. This decline in the fourth quarter average balance had a negative impact on Corus net interest income. Net interest income for the quarter did, however, increase due to Corus asset sensitivity and the resulting impact of increases in short-term market interest rates. As discussed in more detail below, Corus has more
floating rate assets than floating rate liabilities, which provides a benefit to the Company during periods of increasing interest rates.

While average loans outstanding generally increased over the past two years, contributing to significant increases in net interest income, the net interest margin declined. The
NIM for the year ended December 31, 2006, was 3.68%, a decrease of 19 basis points and 21 basis points from the years ended December 31, 2005 and 2004, respectively. Corus NIM is affected by numerous factors. Two of the larger factors affecting the Banks NIM over the past two years have been 1)the interplay of the growth in deposits as compared to the growth in loans outstanding and 2)increasing short-term interest rates.

44CORUS BANKSHARES 2006 ANNUAL REPORT

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Over the past
several quarters, the Banks deposit growth has exceeded loan growth and,
as a result, a growing percentage of the Banks average earning assets are
held in investment securities. These securities, which are high quality and very
short-term in nature, currently earn a yield comparable to the yields paid on
deposits. Thus, while net interest income is little affected, total average
earning assets have nonetheless grown substantially. As a result, the NIM, which
is simply net interest income divided by average earning assets, is negatively
impacted.

The vast majority of the Banks assets are
floating rate, generally based on short-term interest rates, and reset quarterly. The Banks liabilities are very similar in nature, with the exception of demand deposits, which are effectively fixed at a zero percent interest rate, and administered-rate deposits (e.g., NOW and Savings accounts). The remaining component is shareholders equity. From an accounting perspective, equity acts as zero percent fixed-rate funding. The combination of shareholders equity, along with the demand and administered-rate deposits, is substantially greater than the Banks few long-term fixed-rate or noninterest-earning assets. As a result, during times of changing interest rates (in Corus case, short-term interest rates), this would give rise to more assets repricing than liabilities repricing. This
is commonly referred to as being asset sensitive and aids NIM during periods of increasing interest rates.

CORUS BANKSHARES 2006 ANNUAL REPORT   45

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

AVERAGE BALANCE SHEETS AND NET INTEREST MARGIN

|                                                            |  | 2006            |           | 2005                          |   | 2004        | 
|----------------------------------------------------------- |  | --------------- | --------- | ----------------------------- | - | ----------- | 
|                                                            |  |                 |           |                               |   |             | 
|YEARS   ENDED DECEMBER 31                                   |  | AVERAGE BALANCE |           | INTEREST, FEES, AND DIVIDENDS |   | YIELD/ COST | 
|                                                            |  |                 |           |                               |   |             | 
|(dollars in thousands)                                      |  |                 |           |                               |   |             | 
|ASSETS                                                      |  |                 |           |                               |   |             | 
|Earning Assets:                                             |  |                 |           |                               |   |             | 
|Federal   funds sold                                        |  | $               | 365,646   |                               | $ | 18,307      | 
|Securities   other than common stocks (1)                   |  |                 | 4,358,386 |                               |   | 214,675     | 
|Common   stocks (2)                                         |  |                 | 195,686   |                               |   | 10,064      | 
|Trading   account securities                                |  |                 |          |                               |   |            | 
|Loans,   net of unearned income (3)                         |  |                 | 4,456,799 |                               |   | 501,017     | 
|                                                            |  |                 |           |                               |   |             | 
|Total   Earning Assets                                      |  |                 | 9,376,517 |                               |   | 744,063     | 
|Noninterest-earning assets:                                 |  |                 |           |                               |   |             | 
|Cash   and due from banks noninterest-bearing              |  |                 | 92,625    |                               |   |             | 
|Allowance   for loan losses                                 |  |                 | (41,812   | )                             |   |             | 
|Premises   and equipment, net                               |  |                 | 27,130    |                               |   |             | 
|Other   real estate owned                                   |  |                 | 116       |                               |   |             | 
|Other   assets, including goodwill                          |  |                 | 42,734    |                               |   |             | 
|                                                            |  |                 |           |                               |   |             | 
|Total Assets                                                |  | $               | 9,497,310 |                               |   |             | 
|                                                            |  |                 |           |                               |   |             | 
|LIABILITIES   AND SHAREHOLDERS EQUITY                      |  |                 |           |                               |   |             | 
|Deposits  interest-bearing:                                |  |                 |           |                               |   |             | 
|Retail   certificates of deposit                            |  | $               | 5,380,702 |                               | $ | 260,215     | 
|Money   market deposits                                     |  |                 | 1,796,627 |                               |   | 83,582      | 
|Brokered   certificates of deposit                          |  |                 | 318,317   |                               |   | 17,758      | 
|NOW   deposits                                              |  |                 | 302,259   |                               |   | 7,537       | 
|Savings   deposits                                          |  |                 | 141,467   |                               |   | 699         | 
|                                                            |  |                 |           |                               |   |             | 
|Total   Interest-Bearing Deposits                           |  |                 | 7,939,372 |                               |   | 369,791     | 
|Long-term   debt                                           |  |                 |           |                               |   |             | 
|subordinated   debentures                                   |  |                 | 377,885   |                               |   | 28,547      | 
|Other   borrowings (4)                                      |  |                 | 11,991    |                               |   | 988         | 
|                                                            |  |                 |           |                               |   |             | 
|Total   Interest-Bearing Liabilities                        |  |                 | 8,329,248 |                               |   | 399,326     | 
|Noninterest-bearing   liabilities and shareholders equity: |  |                 |           |                               |   |             | 
|Noninterest-bearing   deposits                              |  |                 | 305,613   |                               |   |             | 
|Other   liabilities                                         |  |                 | 103,236   |                               |   |             | 
|Shareholders   equity                                      |  |                 | 759,213   |                               |   |             | 
|                                                            |  |                 |           |                               |   |             | 
|Total   Liabilities and Shareholders Equity                |  | $               | 9,497,310 |                               |   |             | 
|                                                            |  |                 |           |                               |   |             | 
|Earning assets                                              |  | $               | 9,376,517 |                               | $ | 744,063     | 
|Interest-bearing liabilities                                |  |                 | 8,329,248 |                               |   | 399,326     | 
|                                                            |  |                 |           |                               |   |             | 
|Net Interest Spread                                         |  |                 |           |                               | $ | 344,737     | 
|                                                            |  |                 |           |                               |   |             | 
|Net Interest Margin                                         |  |                 |           |                               |   |             | 
|                                                            |  |                 |           |                               |   |             | 

|Tax   equivalent adjustments are based on a Federal income tax rate of 35%.
|---------------------------------------------------------------------------
|(1)                                                                        
|(2)                                                                        
|(3)                                                                        
|                                                                           
|(4)                                                                        

46CORUS BANKSHARES 2006 ANNUAL REPORT

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The following table, which presents the components of changes in net interest income by volume and rate, provides further evidence supporting the preceding discussion.

NET INTEREST INCOME VOLUME/RATE ANALYSIS

|                                     |  | 2006
COMPARED   TO
2005 |         | 2005
COMPARED   TO
2004 |  
|------------------------------------ |  | ----------------------- | ------- | ----------------------- | -
|                                     |  |                         |         |                         |  
|                                     |  | CHANGE DUE TO (1)       |         |                         |  
|                                     |  |                         |         |                         |  
|YEARS ENDED DECEMBER 31              |  | VOLUME                  |         | RATE                    |  
|                                     |  |                         |         |                         |  
|(dollars in thousands)               |  |                         |         |                         |  
|Federal funds sold                   |  | $                       | (15,621 | )                       | $
|Investment securities (2)            |  |                         | 100,727 |                         |  
|Loans, net of unearned   income (3)  |  |                         | 95,050  |                         |  
|                                     |  |                         |         |                         |  
|Total Increase in Interest   Income  |  |                         | 180,156 |                         |  
|                                     |  |                         |         |                         |  
|Retail certificates of   deposit     |  |                         | 106,543 |                         |  
|Money market deposits                |  |                         | 9,267   |                         |  
|Brokered certificates of   deposit   |  |                         | (5,351  | )                       |  
|NOW deposits                         |  |                         | (112    | )                       |  
|Savings deposits                     |  |                         | (82     | )                       |  
|Borrowings                           |  |                         | 5,396   |                         |  
|                                     |  |                         |         |                         |  
|Total Increase in Interest   Expense |  |                         | 115,661 |                         |  
|                                     |  |                         |         |                         |  
|Increase in Net Interest   Income    |  | $                       | 64,495  |                         | $
|                                     |  |                         |         |                         |  

|Tax equivalent adjustments are based on a Federal tax rate of 35%.
|------------------------------------------------------------------
|                                                                  
|(1)                                                               
|(2)                                                               
|(3)                                                               

NONINTEREST INCOME

For 2006, Corus reported $19.2 million of total noninterest income compared to $27.9 million in 2005 and $51.4 million in 2004. The
fluctuations from year to year are primarily the result of securities gains. Excluding securities gains, noninterest income decreased in 2006 by $2.1 million, or 13.9%, and increased in 2005 by $1.2 million, or 8.5%.

NONINTEREST INCOME

|YEARS ENDED DECEMBER 31                                        |  | 2006 |        | 2005 |   | 2004   |  | 2006/2005
CHANGE |        | 2005/2004
CHANGE | 
|-------------------------------------------------------------- |  | ---- | ------ | ---- | - | ------ |  | ---------------- | ------ | ---------------- | 
|                                                               |  |      |        |      |   |        |  |                  |        |                  | 
|(dollars in thousands)                                         |  |      |        |      |   |        |  |                  |        |                  | 
|Service charges on deposit   accounts                          |  | $    | 10,961 |      | $ | 11,566 |  | $                | 11,438 |                  | 
|Securities gains/(losses),   net                               |  |      | 6,071  |      |   | 12,691 |  |                  | 37,349 |                  | 
|Other                                                          |  |      | 2,169  |      |   | 3,692  |  |                  | 2,628  |                  | 
|                                                               |  |      |        |      |   |        |  |                  |        |                  | 
|Total Noninterest Income                                       |  | $    | 19,201 |      | $ | 27,949 |  | $                | 51,415 |                  | 
|                                                               |  |      |        |      |   |        |  |                  |        |                  | 
|Noninterest Income,   Excluding Securities Gains/(Losses), net |  | $    | 13,130 |      | $ | 15,258 |  | $                | 14,066 |                  | 
|                                                               |  |      |        |      |   |        |  |                  |        |                  | 

CORUS BANKSHARES 2006 ANNUAL REPORT   47

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

Service Charges on Deposit AccountsIn 2006, service charge income decreased by $0.6 million. This decrease is primarily due to a decline in the number of personal checking accounts, a direct result of intense ongoing competition for checking deposits, particularly by the large banks. The decrease is also due to lower business account fees, which decline as higher short-term interest rates result in higher earnings credits to the customers and thus lower net service charge income to Corus.

While service charge income for 2005 was essentially flat compared to 2004, this was the result of two offsetting items. First, service charge income from Corus business of servicing the check cashing industry increased in 2005 due primarily to the expiration of payments required to a third party in accordance with a previously negotiated fee-sharing agreement. Offsetting this increase were lower fees from business accounts. The decline in business account fees was driven by the increases in short-term interest rates, as described above.

Securities Gains/(Losses), netIn 2006, net security gains totaled $6.1 million, compared to $12.7 million and $37.3 million in 2005 and 2004, respectively.

SECURITIES GAINS/(LOSSES), NET

|YEARS ENDED DECEMBER 31                               |  | 2006 |        | 2005 |   | 2004   |  
|----------------------------------------------------- |  | ---- | ------ | ---- | - | ------ | -
|                                                      |  |      |        |      |   |        |  
|(dollars in thousands)                                |  |      |        |      |   |        |  
|Gains on common stocks (cash   transactions)          |  | $    |       |      | $ | 12,599 |  
|Gains on common stocks   (stock-for-stock)            |  |      | 7,413  |      |   | 810    |  
|Charge for other than   temporary impairment        |  |      | (1,453 | )    |   | (880   | )
|Mark-to-market adjustments   on non-hedge derivatives |  |      |       |      |   | 18     |  
|Trading account   gains/(losses), net                 |  |      |       |      |   |       |  
|Other                                                 |  |      | 111    |      |   | 144    |  
|                                                      |  |      |        |      |   |        |  
|Total Securities   Gains/(Losses), net                |  | $    | 6,071  |      | $ | 12,691 |  
|                                                      |  |      |        |      |   |        |  

Gains on Common StocksGains on common stocks relate to Corus common stock portfolio of various
financial industry companies. Gains or losses are recognized either when the investment is sold or when the company is acquired, for cash or stock, by another company. Stock-for-stock transactions have no cash flow impact and as a result, no tax is payable on the gain until the underlying securities are actually sold.

Charge for Other Than Temporary ImpairmentCorus recorded charges related to other than temporary declines in value of certain common stocks in both 2006 and 2005. These charges were not a result of the Company selling the associated stocks, but rather an accounting entry with no cash
flow or tax implications. See Note 1 to Consolidated Financial Statements for the Companys policy with regard to other than temporary declines in value.

Mark-to-Market Adjustments on Non-Hedge DerivativesMark-to-market adjustments on non-hedge derivatives relate primarily to basis swaps previously held by Corus. The basis swaps were sold in April 2004.

Trading Account Gains/(Losses), netFrom time to time, the Bank may enter into transactions in anticipation of taking gains on short-term price movements. Eligible trading securities include Treasury securities, agency securities, and interest rate derivatives. All open trading positions are monitored closely by senior management and loss limits are in place to reduce potential losses. Securities purchased for trading purposes are, at the time of purchase, clearly indicated as trading securities on the Companys books. Taking any action that would require the reclassification of any security to another classification after it has been initially designated as trading, available-for-sale, or held-to-maturity is against the Banks policy and requires approval by the Banks Board of Directors.

48CORUS BANKSHARES 2006 ANNUAL REPORT

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Trading securities are marked to market on an ongoing basis with the resulting gain or loss included in income. Corus did not enter into any trading transactions in either 2006 or 2005. Corus recorded net trading gains of $4.2 million in 2004.

Other IncomeFor the year ended December 31, 2006, other income equaled $2.2 million, a decrease of $1.5 million compared to the prior year. The decrease is the result of a $1.4 million gain, recorded in 2005, from the sale of certain property owned by Corus. Corus had previously been leasing the property to a third party. Other income also includes ATM fees, safe deposit box rental income, and various other customer fees.

NONINTEREST EXPENSE

Total noninterest expense increased by $4.6 million, or 7.4%, in 2006 and by $5.0 million, or 9.0%, in 2005. The increase was primarily driven by increases in employee compensation and benefits as discussed further below.

NONINTEREST EXPENSE

|YEARS ENDED DECEMBER 31                  |  | 2006 |        | 2005 |   | 2004   |   | 2006/2005   CHANGE |        | 2005/2004   CHANGE | 
|---------------------------------------- |  | ---- | ------ | ---- | - | ------ | - | ------------------ | ------ | ------------------ | 
|                                         |  |      |        |      |   |        |   |                    |        |                    | 
|(dollars in thousands)                   |  |      |        |      |   |        |   |                    |        |                    | 
|Employee compensation and   benefits     |  | $    | 45,756 |      | $ | 43,136 |   | $                  | 38,458 |                    | 
|Net occupancy                            |  |      | 3,961  |      |   | 3,723  |   |                    | 3,764  |                    | 
|Data processing                          |  |      | 2,025  |      |   | 1,714  |   |                    | 2,435  |                    | 
|Depreciation

furniture and   equipment |  |      | 1,838  |      |   | 1,444  |   |                    | 1,750  |                    | 
|Other                                    |  |      | 12,301 |      |   | 11,305 |   |                    | 9,866  |                    | 
|                                         |  |      |        |      |   |        |   |                    |        |                    | 
|Total Noninterest Expense                |  | $    | 65,881 |      | $ | 61,322 |   | $                  | 56,273 |                    | 
|                                         |  |      |        |      |   |        |   |                    |        |                    | 
|Efficiency ratio                         |  |      | 18.4   | %    |   | 22.9   | % |                    | 33.5   | %                  | 
|                                         |  |      |        |      |   |        |   |                    |        |                    | 

Employee Compensation and BenefitsIn 2006, employee compensation and benefits increased $2.6 million, or 6.1%, compared to the prior year. This increase is largely attributable to higher staffing levels in retail banking, operations, and commercial lending. The higher staffing levels were the result of additional personnel hired to support the ongoing deposit and loan growth.

In 2005, employee compensation and benefits increased by $4.7 million, or 12.2%, compared to the prior year. In addition to the impact of the higher staffing levels mentioned above, commercial loan officer commission accruals increased in 2005.

The commercial loan officer commission accruals are driven by the Commission Program for Commercial Loan Officers (the CLO Program). The CLO Program rewards commercial loan officers for originating new loans and the size of the commissions are based on the amount of interest and fees earned on those loans. An additional, and critical, aspect of the compensation program is that each officer shares in the risk of loss on the loans they generate. Generally, a substantial portion of officers commissions may be held back for up to nine years and are at risk of loss in the event the Company suffers a loss, as defined by the CLO Program, on the loans. This holdback provision is designed to more closely align the goals of the commercial loan officers with the interests of Corus and its shareholders.

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

Total commissions are calculated in accordance with the formula set forth in the CLO Program. The following table illustrates the compensation expense related to the CLO Program for the last three years:

|YEARS ENDED DECEMBER 31    |  | 2006 |        | 2005 |   | 2004   | 
|-------------------------- |  | ---- | ------ | ---- | - | ------ | 
|                           |  |      |        |      |   |        | 
|(dollars in thousands)     |  |      |        |      |   |        | 
|Salaries(1)                |  | $    | 2,667  |      | $ | 2,449  | 
|Commissions paid in cash   |  |      | 7,027  |      |   | 6,855  | 
|Commissions held back      |  |      | 3,375  |      |   | 3,870  | 
|                           |  |      |        |      |   |        | 
|Total Compensation Expense |  | $    | 13,069 |      | $ | 13,174 | 
|                           |  |      |        |      |   |        | 

|(1) | A portion   of salaries are treated as an advance against commissions.
|--- | ----------------------------------------------------------------------

While total commissions are expensed each year, as mentioned above, only a portion is generally paid in that year, with the remainder held back for up to nine years. The commercial loan officers have various options for investing the holdbacks, including 1)units that are each equivalent to a share of Corus common stock (the Corus Stock Election), 2)an account with returns based on an investment that is a function of the S&P 500 Index (the S&P 500 Election), and 3)cash with interest credited based on the prevailing Treasury rate during the holdback period (the Treasury Election).

Due to the nature of different holdback options, they are recorded differently in Corus
financial statements. Specifically, Corus Stock Election holdbacks are recorded as equity and included in capital surplus. No market adjustments are made to these holdbacks and no additional expense is recorded. Conversely, amounts held back in the S&P 500 Election and the Treasury Election are both recorded as liabilities. Increases or decreases in value are recorded monthly with the offset recorded to compensation expense.

The following table reflects the market value of the holdbacks as of December 31, 2006 and 2005:

|DECEMBER 31              |  | 2006 |        | 2005 |  
|------------------------ |  | ---- | ------ | ---- | -
|                         |  |      |        |      |  
|(dollars in thousands)   |  |      |        |      |  
|Corus Stock              |  | $    | 17,274 |      | $
|S&P 500                  |  |      | 4,782  |      |  
|Treasury                 |  |      | 2,843  |      |  
|                         |  |      |        |      |  
|Total Value of Holdbacks |  | $    | 24,899 |      | $
|                         |  |      |        |      |  

As mentioned above, Corus Stock Election holdbacks are recorded directly to equity with no subsequent adjustments for changes in the market value of Corus common stock. As a result, the Corus Stock Election holdbacks, as recorded in the
financial statements, total $11.3 million and $13.2 million at December 31, 2006 and 2005, respectively.

The CLO Program allows for partial releases of holdbacks in instances where it is determined that some portion of an officers holdback is no longer considered to be at a substantial risk of forfeiture, as calculated under the CLO Program. In addition, no current year holdback will be required for those officers receiving such releases. In 2006, releases were valued at $8.6 million, compared to $4.3 million in 2005.

As previously stated, holdbacks are subject to reduction on an officer-by-officer basis in the event of certain circumstances relating primarily to loan losses (commercial loan officers share in losses on loans in an equal percentage to the rate at which they earned commissions on those same loans). Therefore, officers holdbacks effectively provide Corus with an additional reserve against loan losses. In addition, the CLO Program provides that the Company can recover loan losses by reducing or eliminating current years commissions that would have otherwise been paid in cash.

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Finally, Corus effectively hedges the liability associated with deferred commissions by either repurchasing and retiring Corus common stock in amounts equivalent to the respective holdbacks or by purchasing the equivalent investment in the S&P 500. Corus internally hedges the Treasury Election holdback.

Corus continues to focus on effectively controlling compensation expense by paying a limited number of talented people a premium over market. This policy results in higher employee productivity and an increased willingness to accept more responsibility in carrying out Corus goals and objectives.

Net OccupancyIn 2006, net occupancy increased by $0.2 million, or 6.4%. Much of the increase is attributable to increases in real estate tax accruals based on anticipated rate increases. In 2005, net occupancy expense remained relatively flat compared to 2004.

Data ProcessingIn 2006, data processing increased by $0.3 million, or 18.1%, due to the increased number of customer accounts consistent with Corus retail deposit growth. In 2005, data processing decreased by $0.7 million, or 29.6%, to $1.7 million compared to 2004. This decrease was due to the savings provided by implementing a new core data processing system in the second quarter of 2004.

Other ExpensesOther noninterest expense consists of various expenses, the most significant being: audits & exams, insurance (deposit and other), postage, legal & professional, stationery & supplies, equipment repairs & maintenance, armored courier costs, correspondent bank charges, telephone, and advertising. These expenses have increased in recent years primarily due to costs associated with growth in assets and deposits, specifically deposit insurance and the asset-based regulatory exam fee.

Due to deposit insurance reform legislation, Corus expense for FDIC insurance will be increasing, beginning in 2007. While the FDIC is allowing
financial institutions a one-time credit to be used against the insurance increases, the Company estimates that the credit will be exhausted midway through the third quarter of 2007. As a result, expenses for deposit insurance are expected to increase by $0.5 million and $1.1 million for the third and fourth quarters of 2007, respectively, compared to the comparable quarters of 2006.

Efficiency RatioThe banking
industry uses a standard known as the efficiency ratio to measure a
banks operational efficiency. Unlike most other measures, lower is better.
The efficiency ratio is simply noninterest expense, less goodwill amortization,
divided by the sum of net interest income and noninterest income (excluding
securities gains and losses). Corus efficiency ratio was 18.4%, 22.9%, and
33.5% in 2006, 2005, and 2004, respectively. The improvement was the result of
extremely strong growth in net interest income with only modest growth in
noninterest expense.

Cost ManagementCost management is a fundamental element of Corus culture. Management constantly reviews operating expenses to ensure that they are minimized while maintaining a high level of quality customer service. Corus remains committed to identifying additional reductions in costs while maintaining superior customer service and stringent internal controls.

Income TaxesIncome tax expense was $98.3 million in 2006, compared to $73.1 million and $48.7 million in 2005 and 2004, respectively. The effective tax rate remained relatively flat at 34.2% in 2006, 34.7% in 2005, and 33.2% in 2004. Differences between the effective tax rate and the statutory federal rate are driven primarily by the favorable tax treatment allowed for dividend income  only 30% of dividend income received is taxable. In addition, in 2006 and 2004, Corus recorded favorable tax adjustments related to the expiration of certain tax exposure items. Please refer to Note 9 to Consolidated Financial Statements for a reconciliation of the statutory federal income tax rate to the effective rate.

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

Corus net deferred tax liability was $4.5 million at December 31, 2006, compared with a net deferred tax liability of $6.0 million at December 31, 2005. Please refer to Note 9 to Consolidated Financial Statements for a listing of deferred tax assets and liabilities detailed by category.

InflationThe impact of inflation on a financial institution
differs significantly from that of an industrial company, as virtually all
assets and liabilities of a financial institution are monetary in nature.
Monetary items, such as cash, loans and deposits, are those assets and
liabilities that are or will be converted into a fixed number of dollars
regardless of changes in prices. Management believes the impact of inflation on financial
results depends upon Corus ability to react to
changes in interest rates. Interest rates do not necessarily move in the same
direction, or at the same magnitude, as the prices of other goods and services.
Management seeks to manage the relationship between interest-sensitive assets
and liabilities in order to protect against wide interest rate fluctuations, including those resulting from
inflation.

|FINANCIAL   CONDITION
|---------------------
|                     

COMMON STOCKS

At December 31, 2006, Corus held investments in the common stocks of 17
financial industry companies valued at $217.0 million, including net unrealized gains of $89.7 million.

The following is a list of Corus holdings as of December 31, 2006:

|CORPORATION                        |  | SHARES  HELD |           | MARKET VALUE |   | PERCENTAGE OF PORTFOLIO | 
|---------------------------------- |  | ------------ | --------- | ------------ | - | ----------------------- | 
|                                   |  |              |           |              |   |                         | 
|(dollars in thousands)             |  |              |           |              |   |                         | 
|Amcore Financial Inc.              |  |              | 69,100    |              | $ | 2,257                   | 
|Associated Banc Corp.              |  |              | 121,179   |              |   | 4,227                   | 
|Bank of America Corp.              |  |              | 670,594   |              |   | 35,803                  | 
|Bank of New York Co. Inc.          |  |              | 100,000   |              |   | 3,937                   | 
|Citigroup Inc.                     |  |              | 225,000   |              |   | 12,533                  | 
|Comerica Inc.                      |  |              | 264,300   |              |   | 15,509                  | 
|Compass Bancshares Inc.            |  |              | 108,750   |              |   | 6,487                   | 
|Fremont General Corp.              |  |              | 1,574,600 |              |   | 25,524                  | 
|JP Morgan Chase & Co.              |  |              | 500,864   |              |   | 24,192                  | 
|MAF Bancorp Inc.                   |  |              | 204,850   |              |   | 9,155                   | 
|Merrill Lynch & Co. Inc.           |  |              | 132,000   |              |   | 12,289                  | 
|Morgan Stanley Dean Witter   & Co. |  |              | 82,000    |              |   | 6,677                   | 
|National City Corp.                |  |              | 74,520    |              |   | 2,724                   | 
|Regions Financial Corp.            |  |              | 515,154   |              |   | 19,267                  | 
|SunTrust Banks Inc.                |  |              | 48,000    |              |   | 4,054                   | 
|US Bancorp                         |  |              | 268,870   |              |   | 9,730                   | 
|Wachovia Corp.                     |  |              | 398,191   |              |   | 22,677                  | 
|                                   |  |              |           |              |   |                         | 
|Total                              |  |              |           |              | $ | 217,042                 | 
|                                   |  |              |           |              |   |                         | 

In 2006, Corus received dividends on the stock portfolio of $7.3 million, compared to $6.6 million in 2005 and $6.3 million in 2004. In addition to dividend income, Corus also recognized net securities gains of $6.0 million in 2006, $12.5 million in 2005, and $31.6 million in 2004. This includes gains from non-cash transactions as well as charges for other than temporary impairment. See Noninterest Income for further discussion.

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SECURITIES OTHER THAN COMMON STOCKS

Corus current asset/liability management philosophy is that all current security purchases are classified as available-for-sale or trading.

At December 31, 2006, available-for-sale securities other than common stocks increased to $5.2 billion, due mainly to Corus increased investment in short-term U.S. Government and agency notes. As of December 31, 2006, nearly the entire available-for-sale portfolio was scheduled to mature within six (6) months.

LOAN PORTFOLIO

The following table details the composition of Corus outstanding loans:

|                                                           |  | 2006   |       | 2005    | 
|---------------------------------------------------------- |  | ------ | ----- | ------- | 
|                                                           |  |        |       |         | 
|DECEMBER 31                                                |  | AMOUNT |       | PERCENT | 
|                                                           |  |        |       |         | 
|(dollars in millions)                                      |  |        |       |         | 
|Commercial real estate:                                    |  |        |       |         | 
|Condominium:                                               |  |        |       |         | 
|Construction                                               |  | $      | 2,615 |         | 
|Conversion                                                 |  |        | 1,288 |         | 
|Other   commercial real estate                             |  |        | 172   |         | 
|                                                           |  |        |       |         | 
|Total commercial real estate                               |  |        | 4,075 |         | 
|Commercial                                                 |  |        | 42    |         | 
|Residential   real estate and other                        |  |        | 25    |         | 
|                                                           |  |        |       |         | 
|Loans, net of unearned   income                            |  | $      | 4,142 |         | 
|                                                           |  |        |       |         | 
|Mezzanine loans included in   total commercial real estate |  | $      | 196   |         | 
|                                                           |  |        |       |         | 

COMMERCIAL REAL ESTATE LENDING

PersonnelAssessing risk is as much an art as it is a science. In that regard, an experienced and highly capable loan officer group is critical to the Companys success. Corus currently has 19 commercial loan officers, with 7 of those officers each having more than 15 years of experience in commercial real estate lending and another 4 having 10 years or more experience. Moreover, with the exception of one very experienced senior officer (who joined the Company over 4 years ago), virtually all of the officers commercial real estate experience, and hence training, has been at Corus. Furthermore, Corus has been particularly successful in retaining key talent in the commercial lending group, evidenced by zero turnover in the last five years.

Robert J. Glickman (Chief Executive Officer), Michael G. Stein (Executive Vice President  Commercial Lending), and Timothy J. Stodder (Senior Vice President  Commercial Lending) are deeply involved in every major aspect of the lending process. This includes structuring and pricing the loans, visiting the sites and inspecting comparable properties, meeting directly with the borrowers, underwriting and approving the loans, consulting on documentation issues, and making various decisions in the course of servicing the loans. Corus is able to maintain this level of executive attention by focusing on larger transactions.

Finally, a significant portion of commercial loan officer compensation is based on amounts earned from the Commission Program for Commercial Loan Officers (the CLO Program). The CLO Program has been devised to compensate officers for success, but generally holds back much of their commissions for up to nine years, during which time it is at risk of loss in the event the Company suffers a loss on the loans. Management believes the program motivates officers to make safe loans and aligns the officers goals with the Companys interests.

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

Portfolio OverviewDuring the past few years, Corus lending has focused almost exclusively on condominium projects. These projects include both construction of new buildings and conversion of existing apartments. While Corus generally provides only senior debt, in some cases Corus will provide mezzanine financing as well. Nearly all of Corus loans are variable rate. As of December 31, 2006, 95% of Corus commercial real estate loans were variable rate, the vast majority tied to 3-month LIBOR and resetting quarterly.

Condominium construction loans typically have stated maturities ranging from 2 to 4 years. The loans are funded throughout the term as construction progresses. These loans consist of both new construction projects and certain condominium conversion projects where extensive renovation is planned. Condominium conversion loans generally have shorter stated maturities, typically in the range of 1 to 3 years. These loans are for projects with less extensive renovation efforts and the loans are typically fully funded at the outset and paid down as the condominiums are sold.

Corus
mezzanine loans are all subordinate to a Corus first mortgage loan (as
opposed to a third partys). Interest rates charged for mezzanine loans are
considerably higher than those charged for first mortgage loans (and also
tend to be fixed rate), but also carry additional risk.

In addition to the funded amounts listed above, Corus has significant commitments to fund additional amounts. Including commitments, the commercial real estate loan portfolio totals $8.4 billion as of December 31, 2006, as detailed below:

TOTAL COMMERCIAL REAL ESTATE LOAN COMMITMENTS

|                               |  | TOTAL   COMMITMENTS(1) |      
|------------------------------ |  | ---------------------- | -----
|                               |  |                        |      
|                               |  | 2006                   |      
|                               |  |                        |      
|DECEMBER 31                    |  | AMOUNT                 |      
|                               |  |                        |      
|(dollars in millions)          |  |                        |      
|Condominium:                   |  |                        |      
|Construction                   |  | $                      | 6,566
|Conversion                     |  |                        | 1,376
|Other   commercial real estate |  |                        | 417  
|                               |  |                        |      
|Total Commercial Real Estate   |  | $                      | 8,359
|                               |  |                        |      

|(1) | Total commitments are composed of outstanding balances plus unfunded commitments.   Includes pending loans for which commitment letters have been issued to the   borrower. These commitment letters are also disclosed in the Commercial Real   Estate Loans Pending table of this report, included in the amounts labeled as   Commitments Accepted and Commitments Offered.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

OriginationsAn origination occurs when a loan closes, with the origination amount equaling Corus full commitment under that loan (regardless of how much is funded). Construction loan funds are rarely drawn by the borrower at the closing but rather over an extended period of time as the project is built. In contrast, conversion loans are largely funded at the time of closing.

As shown in the tables below, the pace of total loan originations has slowed recently. With that said, construction loan originations have continued to be strong, and in fact fourth quarter 2006 construction originations represent one of our best quarters ever. The decline in originations is entirely attributable to the virtual absence of recent conversion originations.

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ORIGINATIONS(1)

|                               |  | 2006   |       | 2005    |  | 2006/2005
CHANGE |  
|------------------------------ |  | ------ | ----- | ------- |  | ---------------- | -
|                               |  |        |       |         |  |                  |  
|DECEMBER 31                    |  | AMOUNT |       | PERCENT |  | AMOUNT           |  
|                               |  |        |       |         |  |                  |  
|(dollars in millions)          |  |        |       |         |  |                  |  
|Condominium:                   |  |        |       |         |  |                  |  
|Construction                   |  | $      | 3,255 |         |  | 83               | %
|Conversion                     |  |        | 546   |         |  | 14               |  
|Other   commercial real estate |  |        | 112   |         |  | 3                |  
|                               |  |        |       |         |  |                  |  
|Total Commercial Real Estate   |  | $      | 3,913 |         |  | 100              | %
|                               |  |        |       |         |  |                  |  

|(1) | Includes   approved commitment increases to existing loans.
|--- | -----------------------------------------------------------

Loan originations by quarter for both 2006 and 2005 were as follows:

ORIGINATIONS BY QUARTER (1)

|                               |  | 2006 |     | 2005 |  
|------------------------------ |  | ---- | --- | ---- | -
|                               |  |      |     |      |  
|                               |  | 4Q   |     | 3Q   |  
|                               |  |      |     |      |  
|(dollars in millions)          |  |      |     |      |  
|Condominium:                   |  |      |     |      |  
|Construction                   |  | $    | 950 |      | $
|Conversion                     |  |      | 39  |      |  
|Other   commercial real estate |  |      | 2   |      |  
|                               |  |      |     |      |  
|Total Commercial Real Estate   |  | $    | 991 |      | $
|                               |  |      |     |      |  

|(1) | Includes   approved commitment increases to existing loans.
|--- | -----------------------------------------------------------

The dramatic decline in conversion originations is a direct reflection of an extremely rapid and substantial falloff in developers looking to convert apartment projects into condominiums. While this loss of confidence by the developers is likely the result of numerous factors, the nationwide slowdown in the housing market is undoubtedly the common thread. With demand cooling, a growing inventory of homes for sale, and sales prices declining in many markets, some significantly, developers are generally less inclined to start new projects. Why these effects are not yet being seen in construction originations is difficult to precisely identify, and is likely the result of several significant differences between construction and conversion loans. A key difference is that construction projects generally entail much more lead time than conversion loans. This could mean that construction loan originations may also
begin to feel the effects of the housing slowdown, but on a delayed basis (relative to conversion originations). With that said, there are enough other significant differences between construction and conversion projects that it is not at all clear whether construction originations will experience a slowdown similar to what we have recently witnessed with conversion loans.

Paydowns/PayoffsTotal loan paydowns and payoffs (collectively referred to as paydowns) were $3.4 billion for the year ended December 31, 2006, compared to $2.5 billion for the year ended December 31, 2005. The timing of loan paydowns is inherently difficult to predict.

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

COMMERCIAL REAL ESTATE LOAN PORTFOLIO BY SIZE

|                             |  | 2006         |        | 2005                |  
|---------------------------- |  | ------------ | ------ | ------------------- | -
|                             |  |              |        |                     |  
|                             |  | NO. OF
LOANS |        | LOANS   OUTSTANDING |  
|                             |  |              |        |                     |  
|DECEMBER 31                  |  |              | AMOUNT |                     | %
|                             |  |              |        |                     |  
|(dollars in millions)        |  |              |        |                     |  
|$140 million and above       |  |              | 12     |                     | $
|$100 million to $140 million |  |              | 14     |                     |  
|$60 million to $100 million  |  |              | 28     |                     |  
|$20 million to $60 million   |  |              | 56     |                     |  
|$1 million to $20 million    |  |              | 55     |                     |  
|Loans less than $1 million   |  |              | NM     |                     |  
|                             |  |              |        |                     |  
|Total                        |  |              | 165    |                     | $
|                             |  |              |        |                     |  

|NM  Not   Meaningful
|---------------------
|(1)                  

COMMERCIAL REAL ESTATE LOAN PORTFOLIO BY COLLATERAL TYPE

|                           |  | 2006         |        | 2005                |  
|-------------------------- |  | ------------ | ------ | ------------------- | -
|                           |  |              |        |                     |  
|                           |  | NO. OF
LOANS |        | LOANS   OUTSTANDING |  
|                           |  |              |        |                     |  
|DECEMBER 31                |  |              | AMOUNT |                     | %
|                           |  |              |        |                     |  
|(dollars in millions)      |  |              |        |                     |  
|Condominium:               |  |              |        |                     |  
|Construction               |  |              | 95     |                     | $
|Conversion                 |  |              | 58     |                     |  
|                           |  |              |        |                     |  
|Condominium   Total        |  |              | 153    |                     |  
|Office                     |  |              | 3      |                     |  
|Hotel                      |  |              | 2      |                     |  
|Other                      |  |              | 7      |                     |  
|Loans less than $1 million |  |              | NM     |                     |  
|                           |  |              |        |                     |  
|Total                      |  |              | 165    |                     | $
|                           |  |              |        |                     |  

|NM  Not   Meaningful
|---------------------
|(1)                  

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COMMERCIAL REAL ESTATE LOAN PORTFOLIO BY MAJOR METROPOLITAN AREA



|                           |  | 2006         |        | 2005                |  
|-------------------------- |  | ------------ | ------ | ------------------- | -
|                           |  |              |        |                     |  
|                           |  | NO. OF
LOANS |        | LOANS   OUTSTANDING |  
|                           |  |              |        |                     |  
|DECEMBER 31                |  |              | AMOUNT |                     | %
|                           |  |              |        |                     |  
|(dollars in millions)      |  |              |        |                     |  
|Florida:                   |  |              |        |                     |  
|Miami/Southeast   Florida  |  |              | 25     |                     | $
|Orlando                    |  |              | 11     |                     |  
|Tampa                      |  |              | 4      |                     |  
|Other   Florida            |  |              | 8      |                     |  
|                           |  |              |        |                     |  
|Florida   Total            |  |              | 48     |                     |  
|California:                |  |              |        |                     |  
|Los   Angeles              |  |              | 14     |                     |  
|San   Diego                |  |              | 13     |                     |  
|San   Francisco            |  |              | 3      |                     |  
|Sacramento                 |  |              | 2      |                     |  
|                           |  |              |        |                     |  
|California   Total         |  |              | 32     |                     |  
|Las Vegas                  |  |              | 10     |                     |  
|New York City              |  |              | 16     |                     |  
|Washington, D.C.(2)        |  |              | 16     |                     |  
|Atlanta                    |  |              | 12     |                     |  
|Chicago                    |  |              | 7      |                     |  
|Phoenix/Scottsdale         |  |              | 8      |                     |  
|Other (3)                  |  |              | 16     |                     |  
|Loans less than $1 million |  |              | NM     |                     |  
|                           |  |              |        |                     |  
|Total                      |  |              | 165    |                     | $
|                           |  |              |        |                     |  

|NM  Not   Meaningful
|---------------------
|(1)                  
|(2)                  
|(3)                  

CORUS BANKSHARES 2006 ANNUAL REPORT    57

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

Pending Commercial Real Estate LoansFinally, the following table presents a comparison of Corus loans pending listed in descending order with respect to stage of completion. In other words, a prospective loan categorized as Commitment Accepted is essentially one step away from closing while a prospective loan classified as Term Sheet Issued is in its earliest stages. It has been the Companys experience that once a loan reaches the Application Received stage it is quite likely to ultimately close.

COMMERCIAL REAL ESTATE LOANS PENDING

|                             |  | 2006         |    | 2005   |  
|---------------------------- |  | ------------ | -- | ------ | -
|                             |  |              |    |        |  
|DECEMBER 31                  |  | NO. OF
LOANS |    | AMOUNT |  
|                             |  |              |    |        |  
|(dollars in millions)        |  |              |    |        |  
|Commitment Accepted (1)      |  |              |   |        | $
|Commitment Offered (1)       |  |              | 1  |        |  
|Application Received         |  |              | 11 |        |  
|Application Sent Out         |  |              | 4  |        |  
|Term Sheet Issued            |  |              | 29 |        |  
|                             |  |              |    |        |  
|Total                        |  |              | 45 |        | $
|                             |  |              |    |        |  
|Condominium:                 |  |              |    |        |  
|Construction                 |  |              | 40 |        | $
|Conversion                   |  |              | 2  |        |  
|Other commercial real estate |  |              | 3  |        |  
|                             |  |              |    |        |  
|Total                        |  |              | 45 |        | $
|                             |  |              |    |        |  

|(1) | These   amounts are also included in the Total Commercial Real Estate Loan   Commitments table of this report.
|--- | --------------------------------------------------------------------------------------------------------------

Total loans pending have decreased from December 31, 2005, with the decline attributable to the slowdown in the housing markets nationwide. See the previous discussion included in the Originations section of this report for additional information.

COMMERCIAL LENDING

Commercial loans are primarily loans to Corus customers in the check cashing industry. Balances
fluctuate based on seasonal cash requirements and are generally secured by the equity of the check cashing operation.

RESIDENTIAL REAL ESTATE AND OTHER LENDING

Residential real estate and other lending balances continue to decline as the Bank allows these portfolios to runoff. Minimal new originations are expected.

58CORUS BANKSHARES 2006 ANNUAL REPORT

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ASSET QUALITY

The following table presents an overview of the relevant asset quality measures:

|DECEMBER 31                                            |  | 2006 |         | 2005 |  
|------------------------------------------------------ |  | ---- | ------- | ---- | -
|                                                       |  |      |         |      |  
|(dollars in thousands)                                 |  |      |         |      |  
|Allowance for loan losses                              |  | $    | 45,293  |      | $
|Allowance for loan losses /   Total loans              |  |      | 1.09    | %    |  
|Liability for credit   commitment losses               |  | $    | 5,500   |      | $
|Nonaccrual and loans 90 days   or more past due (NPLs) |  | $    | 106,907 |      | $
|Other real estate owned   (OREO)                       |  | $    | 8,439   |      | $
|Total nonperforming assets   (NPLs + OREO)             |  | $    | 115,346 |      | $
|Troubled debt restructurings                           |  | $    |        |      | $
|Allowance for loan losses /   NPLs                     |  |      | 42.4    | %    |  
|NPLs / Total loans                                     |  |      | 2.58    | %    |  
|Total nonperforming assets /   Total assets            |  |      | 1.15    | %    |  
|                                                       |  |      |         |      |  

Allowance for Credit LossesThe Allowance for Credit Losses is comprised of the Allowance for Loan Losses and a separate Liability for Credit Commitment Losses. The Allowance for Loan Losses is a reserve against funded loan amounts, while the Liability for Credit Commitment Losses is a reserve against unfunded commitments.

Corus methodology for calculating the Allowance for Loan Losses is designed to first provide for specific reserves associated with impaired loans, defined by Generally Accepted Accounting Principles as loans where it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. These loans are segregated from the remainder of the portfolio and are subjected to a specific review in an effort to determine whether or not a reserve is necessary and, if so, the appropriate amount of that reserve.

The remainder of the portfolio is then segmented into groups based on loan characteristics, seniority of collateral, and loan rating. A reserve is calculated and allocated to each of these groups based on historical net charge-off history coupled with a subjective Management Adjustment Factor. The Management Adjustment Factor is intended to incorporate those qualitative or environmental factors that are likely to cause estimated credit losses associated with the Banks existing portfolio to differ from historical loss experience.

While the Management Adjustment Factor is used to adjust for the most significant risk factors, these factors certainly do not constitute an exhaustive list. Environmental factors exist that indicate there are probable losses in the overall portfolio that have not been captured in the specific or allocated reserves. These risks are
reflected in the unallocated portion of the Allowance for Loan Losses.

The process for estimating the Liability for Credit Commitment Losses closely follows the process outlined above for the Allowance for Loan Losses.

In accordance with the methodology discussed above, the Company recorded a provision for credit losses of $7.5 million and $6.0 million for the years ended December 31, 2006 and 2005, respectively.

A reconciliation of the activity in the Allowance for Credit Losses is as follows:

|                            |  | 2006 |        | 2005 |  
|--------------------------- |  | ---- | ------ | ---- | -
|                            |  |      |        |      |  
|(dollars in thousands)      |  |      |        |      |  
|Balance at January 1        |  | $    | 44,740 |      | $
|Provision for credit losses |  |      | 7,500  |      |  
|Charge-offs                 |  |      | (2,640 | )    |  
|Recoveries                  |  |      | 1,193  |      |  
|                            |  |      |        |      |  
|Balance at December 31      |  | $    | 50,793 |      | $
|                            |  |      |        |      |  

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

The Allowance for Credit Losses is presented on Corus balance sheet as follows:

|DECEMBER 31                                  |  | 2006 |        | 2005 |  
|-------------------------------------------- |  | ---- | ------ | ---- | -
|                                             |  |      |        |      |  
|(dollars in thousands)                       |  |      |        |      |  
|Allowance for loan losses                    |  | $    | 45,293 |      | $
|Liability for credit   commitment losses (1) |  |      | 5,500  |      |  
|                                             |  |      |        |      |  
|Total                                        |  | $    | 50,793 |      | $
|                                             |  |      |        |      |  

|(1) | Included   as a component of other liabilities.
|--- | -----------------------------------------------

Net charge-offs/recoveries for the three years ended December 31 were as follows:

|YEARS ENDED DECEMBER 31              |  | 2006 |        | 2005 |   | 2004  |  
|------------------------------------ |  | ---- | ------ | ---- | - | ----- | -
|                                     |  |      |        |      |   |       |  
|(dollars in thousands)               |  |      |        |      |   |       |  
|Commercial real estate               |  | $    | (1,512 | )    | $ |      |  
|Commercial                           |  |      | (748   | )    |   | (286  | )
|Residential real estate and   other  |  |      | 813    |      |   | 1,144 |  
|                                     |  |      |        |      |   |       |  
|Total Net   (Charge-offs)/Recoveries |  | $    | (1,447 | )    | $ | 858   |  
|                                     |  |      |        |      |   |       |  

During 2006, the Bank charged off $1.5 million related to a commercial real estate loan subsequently transferred to OREO (see section titled Nonaccrual, Past Due, OREO and Troubled Debt Restructurings for further discussion). The net charge-offs from commercial lending during 2006 related to Corus business of servicing the check cashing industry. Finally, residential real estate and other recoveries
reflect the efforts of the residential real estate department personnel to recover as much as possible of the previously charged off amounts.

COMMERCIAL REAL ESTATE LOAN CHARGE-OFFS  10 -YEAR HISTORY

|YEARS ENDED DECEMBER 31 |  | CHARGE-OFFS |      
|----------------------- |  | ----------- | -----
|                        |  |             |      
|(dollars in thousands)  |  |             |      
|2006                    |  | $           | 1,512
|2005                    |  |             | 0    
|2004                    |  |             | 0    
|2003                    |  |             | 0    
|2002                    |  |             | 0    
|2001                    |  |             | 0    
|2000                    |  |             | 0    
|1999                    |  |             | 61   
|1998                    |  |             | 18   
|1997                    |  |             | 350  
|                        |  |             |      
|Total Charge-offs       |  | $           | 1,941
|                        |  |             |      

While Corus did experience a $1.5 million commercial real estate loan charge-off during 2006, the 10-year loss history on commercial real estate lending continues to be impressive. This is all the more impressive when viewed against originations over this same period of nearly $20 billion. However, the housing slowdown is clearly placing meaningful stress on a number of Corus condominium loans, as evidenced by the recent increases in nonaccrual and otherwise nonperforming loans (shown in below table).

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NONACCRUAL, PAST DUE, OREO, AND TROUBLED DEBT RESTRUCTURINGS

As of December 31, the balances were as follows:

|DECEMBER 31                        |  | 2006 |         | 2005 |  
|---------------------------------- |  | ---- | ------- | ---- | -
|                                   |  |      |         |      |  
|(dollars in thousands)             |  |      |         |      |  
|Nonaccrual                         |  | $    | 72,542  |      | $
|Loans 90 days or more past   due   |  |      | 34,365  |      |  
|                                   |  |      |         |      |  
|Total Nonperforming Loans          |  |      | 106,907 |      |  
|Other   real estate owned (OREO) |  |      | 8,439   |      |  
|                                   |  |      |         |      |  
|Total Nonperforming Assets         |  | $    | 115,346 |      | $
|                                   |  |      |         |      |  
|Troubled debt restructurings(1)    |  | $    |        |      | $
|                                   |  |      |         |      |  

|(1) | To the   extent not included in either nonaccrual or loans 90 days or more past due.
|--- | ------------------------------------------------------------------------------------

Nonaccrual loans at December 31, 2006, include two commercial real estate loans. Both of the loans are secured by condominium conversion projects, one in Phoenix, Arizona, and the other in southwestern Florida. Loans 90 days or more past due include a single condominium conversion loan in Las Vegas, Nevada, which was paid off in February 2007.

Nonperforming Assets also includes an Illinois office building classified as other real estate owned (OREO). The related loan was listed as nonaccrual as of September 30, 2006, and foreclosure proceedings were completed in December 2006. Upon foreclosure, the asset was written down to its fair value, less estimated costs to sell, through a $1.5 million charge to the Allowance for Loan Losses.

POTENTIAL PROBLEM LOANS

Potential Problem Loans, as defined by the Securities and Exchange Commission, are performing loans which possess certain weaknesses that cause management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms and which may result in the future disclosure of such loans as either nonaccrual, 90 days or more past due, or a troubled debt restructuring.

As of December 31, 2006, Corus had six condominium loans which management considered to be Potential Problem Loans, as follows:

|LOCATION              |  | LOAN TYPE |             | NO. OF   LOANS |  | BALANCE   OUTSTANDING |  | TOTAL   COMMITMENT |    
|--------------------- |  | --------- | ----------- | -------------- |  | --------------------- |  | ------------------ | ---
|                      |  |           |             |                |  |                       |  |                    |    
|(dollars in millions) |  |           |             |                |  |                       |  |                    |    
|Florida               |  |           | Conversion  |                |  | 3                     |  | $                  | 113
|Florida               |  |           | Constuction |                |  | 1                     |  |                    | 36 
|California            |  |           | Conversion  |                |  | 1                     |  |                    | 66 
|Georgia               |  |           | Constuction |                |  | 1                     |  |                    | 22 
|                      |  |           |             |                |  |                       |  |                    |    
|Total                 |  |           |             |                |  | 6                     |  | $                  | 237
|                      |  |           |             |                |  |                       |  |                    |    

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

DEPOSITS

COMPOSITION OF DEPOSITS

|                                   |  | 2006   |       | 2005    |  | 2006/2005
CHANGE |  
|---------------------------------- |  | ------ | ----- | ------- |  | ---------------- | -
|                                   |  |        |       |         |  |                  |  
|DECEMBER 31                        |  | AMOUNT |       | PERCENT |  | AMOUNT           |  
|                                   |  |        |       |         |  |                  |  
|(dollars in millions)              |  |        |       |         |  |                  |  
|Retail certificates of   deposit   |  | $      | 6,001 |         |  | 69               | %
|Money market                       |  |        | 1,698 |         |  | 20               |  
|Demand                             |  |        | 309   |         |  | 4                |  
|NOW                                |  |        | 285   |         |  | 3                |  
|Brokered certificates of   deposit |  |        | 280   |         |  | 3                |  
|Savings                            |  |        | 132   |         |  | 1                |  
|                                   |  |        |       |         |  |                  |  
|Total                              |  | $      | 8,705 |         |  | 100              | %
|                                   |  |        |       |         |  |                  |  

Deposits continued to grow in 2006 resulting in net growth of $1.4 billion for the year ended December 31, 2006. The growth is almost exclusively driven by growth in retail certificates of deposit (CDs) and is the direct result of the Banks national marketing of selected deposit accounts to both individuals and businesses at competitive rates. The response to this program, which was introduced in April 2004, continues to be strong both locally and across the country. These deposit products, particularly CDs with six- and twelve-month maturities, have proven to be an attractive investment option for many new and existing customers. Nearly all of the retail certificates of deposit held at December 31, 2006 and 2005, were due to mature in less than one year.

The retention of existing deposits continues to be a focus of the Bank. While the results to date have been strong, there are no guarantees that account retention will remain high over the long term.

At December 31, 2006, approximately 62% of the Banks $8.4 billion in retail deposits (excluding brokered deposits) were sourced from outside of Illinois. By marketing its deposit products nationally, the Bank is able to attract deposits without being limited to competing solely in the very competitive Chicago market. Total retail deposits consisted of nearly 200,000 accounts.

LONG-TERM DEBT  SUBORDINATED DEBENTURES (TRUST PREFERRED)

As of December 31, 2006, Corus had $384.0 million in
floating rate junior subordinated notes (the Debentures). The Debentures each mature 30 years from their respective issuance date, but are redeemable (at par) at Corus option at any time commencing on the fifth anniversary of their issuance (or upon the occurrence of certain other prescribed events). Interest payments on the Debentures are payable quarterly. So long as an event of default has not occurred (described further below), Corus may defer interest payments for up to 20 consecutive quarters. Events of default under the terms of the debenture agreements include failure to pay interest after 20 consecutive quarters of deferral (if such election is ever made), failure to pay all principal and interest at maturity, or filing bankruptcy.

If Corus were to elect to defer interest on any of the Debentures, Corus would generally be restricted from declaring or paying any dividends to common shareholders or repurchasing its common stock. Additionally, Corus would not be permitted to make any payments of principal or interest on, or to repay/redeem, any debt securities that are of equal rank with (i.e., pari passu), or are junior to, the Debentures. In other words, if Corus were to elect to defer interest payments on any one of the Debentures, Corus would be required to defer all payments with respect to all of its Debentures.

62CORUS BANKSHARES 2006 ANNUAL REPORT

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All of the outstanding Debentures are variable-rate, with interest rates ranging from LIBOR plus 1.33% to LIBOR plus 3.10% (resetting quarterly). As such, management cannot say with certainty what the interest payments on the Debentures will be in the future. However, based on December 31, 2006, market interest rates, the interest payments would be approximately $30 million per annum.

Note that the Debentures were issued to unconsolidated subsidiary trusts of the Company. Each trusts sole purpose is to issue Trust Preferred Securities with terms essentially identical to the Debentures and then use the proceeds of the Trust Preferred issuance to purchase debentures from the Company. This is a very common form of raising tax-advantaged capital, especially for bank holding companies.

OTHER BORROWINGS

Corus has a revolving line of credit for up to $100 million. The line of credit matures on November 30, 2008, and is collateralized by 100% of the common stock of the subsidiary Bank. While Corus can use the line of credit for any general corporate purpose, it currently uses the line of credit to fund loan participations that the holding company has entered into with its subsidiary Bank. As of December 31, 2006, the line of credit had an outstanding balance of $38.3 million.

The remaining amount outstanding at December 31, 2006, of $1.1 million relates to periodic balances associated with Corus role of facilitating tax payments for the U.S. Treasury. The balance outstanding at any point in time is a function of tax payments received by the bank compared to how often, and when, the Treasury collects the funds from Corus. Corus pays interest on these borrowings at the Federal Funds Rate less 25 basis points.

SHAREHOLDERS EQUITY

At December 31, 2006 and 2005, Shareholders Equity was as follows:

|DECEMBER 31                              |  | 2006 |         | 2005 |  
|---------------------------------------- |  | ---- | ------- | ---- | -
|                                         |  |      |         |      |  
|(dollars in thousands)                   |  |      |         |      |  
|Common stock                             |  | $    | 2,812   |      | $
|Surplus                                  |  |      | 31,783  |      |  
|Equity  options outstanding             |  |      | 9,040   |      |  
|Retained earnings                        |  |      | 746,291 |      |  
|Accumulated other   comprehensive income |  |      | 54,601  |      |  
|                                         |  |      |         |      |  
|Total Shareholders Equity               |  | $    | 844,527 |      | $
|                                         |  |      |         |      |  

During 2006, Corus repurchased and retired 100,600 shares of common stock, 4,000 of which were received as proceeds from a stock option exercise. The open market purchases of 96,600 were made under a common share repurchase program approved by the Board of Directors in April 2004, which authorized the repurchase of up to 2,000,000 shares (as adjusted to
reflect post-split shares resulting from a 2-for-1 stock split on May 18, 2006). As of December 31, 2006, there were 1,588,800 remaining shares authorized for repurchase under this program.

Surplus increased by $5.9 million primarily due to the impact of Corus employees who exercised stock options during the year, which increased surplus by $3.4 million. Additionally, under the Commission Program for Commercial Loan Officers (the CLO Program), a portion of the commissions earned is held back, some in Corus common stock. Holdbacks in stock are initially recorded as additional surplus. Upon issuance, the par value of the stock is reclassified to common stock. CLO Program stock holdbacks in 2006 totaled $1.6 million.

The increase in Equity  options outstanding was due to the recognition of expense associated with employee stock options that vested in 2006. The balance of the account at December 31, 2006, represents the fair value, based on the Black-Scholes valuation model, of all outstanding vested stock options.

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

Retained earnings increased by $137.0 million even after declaring approximately $50 million in dividends to the holders of Corus common stock. Dividends declared in 2006 were 29% higher than in 2005.

Finally, accumulated other comprehensive income increased by $10.6 million due primarily to the net increase in unrealized gains on available-for-sale securities, partially offset by $6.1 million in security gains from the sale of available-for-sale securities. Please refer to the Noninterest Income section of Managements Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the GAAP treatment of security gains.

Various measures of capital were as follows:

|                              |  | 2006   |           | 2005  | 
|----------------------------- |  | ------ | --------- | ----- | 
|                              |  |        |           |       | 
|DECEMBER 31                   |  | AMOUNT |           | RATIO | 
|                              |  |        |           |       | 
|(dollars in thousands)        |  |        |           |       | 
|Common equity (1)             |  | $      | 844,527   |       | 
|Tangible common equity (2)    |  |        | 840,004   |       | 
|Tier 1 leverage (3)           |  |        | 1,047,205 |       | 
|Tier 1 risk-based capital (4) |  |        | 1,047,205 |       | 
|Total risk-based capital (5)  |  |        | 1,249,604 |       | 
|                              |  |        |           |       | 

|(1) | Common equity is computed in accordance with generally accepted accounting
principles, which includes unrealized gains/(losses) on available-for-sale
securities. The ratio is common equity to total year-end assets.                                                                                                                                                                                                                   
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Common equity less goodwill; computed as a ratio to total year-end assets less
goodwill.                                                                                                                                                                                                                                                                                                                                                 
|(3) | Tier 1 capital, which is shareholders equity plus qualifying trust
preferred securities and unrealized losses from defined benefit
pension plan less goodwill, disallowed portion of deferred income taxes and
unrealized gains on available-for-sale securities; computed as a ratio to
average fourth-quarter assets less goodwill, disallowed portion of deferred
income taxes and unrealized gains on available-for-sale
securities.
|(4) | Tier 1   capital; computed as a ratio to risk-adjusted assets.                                                                                                                                                                                                                                                                                                                                                                           
|(5) | Tier 1   capital plus qualifying loan loss allowance and SFAS 115 gain; computed as a   ratio to risk-adjusted assets.                                                                                                                                                                                                                                                                                                                   

|LIQUIDITY   AND CAPITAL RESOURCES
|---------------------------------
|                                 

BANK HOLDING COMPANY

SourcesAt December 31, 2006, the Bank Holding Company (also referred to as the parent company) had cash and marketable equity securities totaling $318.4 million ($286.4 million on an after-tax basis), none of which was encumbered. By comparison, cash and marketable equity securities totaled $208.3 million one year earlier.

Between 2003 and 2005, cash and liquidity needs of the parent company were primarily met through the issuance of a form of long-term debt, commonly referred to as Trust Preferred securities (the attributes of these securities are described in the section titled Long-Term Debt  Subordinated Debentures of Managements Discussion and Analysis of Financial Condition and Results of Operations). During this period, the parent company issued, through unconsolidated subsidiary trusts, approximately $350 million of Trust Preferred Securities, infusing the majority of the proceeds into the Bank, while retaining enough cash to satisfy its own liquidity needs. Recently, the Banks need for capital has changed, and as a result, the parent company has been able to use the Bank as a source of liquidity (see below). In 2006, only $25 million of Trust Preferred Securities were
issued and the parent company received $99 million of dividends from the Bank. Depending on the Banks capital needs, the parent company could seek to issue additional Trust Preferred Securities in the future. However, while the issuance of Trust Preferred Securities has been a reliable source of capital in the recent past, there is no assurance that it will be available in the future.

64CORUS BANKSHARES 2006 ANNUAL REPORT

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Additional sources of liquidity available to the parent company include dividends from its marketable equity securities portfolio, interest and fees earned from loan participations, and cash that could be generated from sales of its equity securities. Further, the parent company could draw on its revolving line of credit (see discussion in the section titled Other Borrowings of Managements Discussion and Analysis of Financial Condition and Results of Operations).

UsesAs mentioned above, between 2003 and 2005, the parent companys primary use of cash was capital infusions into the Bank. Additional uses included dividends to shareholders, interest and principal payments on debt, share repurchases, the purchase of marketable securities, and the payment of operating expenses. In 2006, with the Banks capital needs changing, the parent company has not made any capital contributions to the Bank. See the section below regarding the Banks liquidity and capital needs for a discussion of the factors impacting the Banks capital needs.

The parent company also requires cash to fund loan participations entered into with the Bank for loans that exceed the Banks legal lending limit. As of December 31, 2006, the parent company had committed to $71.8 million of loan participations with the Bank, $48.4 million of which were unfunded at that time. In order to fund these commitments, should funding be required, the Company could draw upon its revolving line of credit (discussed above under Sources and under the Other Borrowings section of Managements Discussion and Analysis of Financial Condition and Results of Operations).

SUBSIDIARY BANK

SourcesAt December 31, 2006, the Banks liquid assets totaled $5.6 billion, or 57.2%, of its total assets versus $3.7 billion, or 44.6% of total assets at December 31, 2005. The Banks primary sources of cash have historically included: loan paydowns/payoffs, investment securities that matured or were sold, net retail deposit growth, issuance of brokered certificates of deposit, Bank earnings not paid to the parent company as a dividend, and capital infusions from the parent company.

UsesThe Banks principal use of cash has historically been to fund loans, both new loans as well as drawdowns of unfunded loan commitments. At December 31, 2006, the Bank had unfunded commercial real estate loan commitments of $4.2 billion. While there is no certainty as to the timing of drawdowns of these commitments, management anticipates the majority of the loan commitments will fund over the next 36 months, although such fundings could occur more rapidly.

The Bank must also retain sufficient funds to satisfy depositors withdrawal needs and cover operating expenses. Recently, the Bank has experienced significant deposit growth, primarily from retail certificates of deposit with maturities of one year or less. These new deposits, as a result of their short-term nature, present greater liquidity risk than do longer-term funding options. While the deposit growth has been very strong, deposits could shrink in the future, perhaps materially, and the Bank must be prepared to fund those withdrawals. The Bank therefore internally allocates a substantial pool of its investment securities against deposits.

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

A common additional use of the Banks cash has been the payment of dividends to the parent company  the frequency and amount of which have varied over time. Although the payment of dividends by the Bank to the parent company is driven by various factors, the Banks capital goals have traditionally played a key role. The Banks capital goals have historically been driven by growth, or the lack thereof, in loan balances and commitments outstanding. During periods of significant loan growth, growth in the Banks capital goals outpaced the earnings of the Bank and few, if any, dividends were paid to the parent company. More recently, however, growth in the Banks loans, as well as the related capital goals, has slowed and the Bank has paid a greater portion of its earnings to the parent company as dividends.

Banking regulations require the maintenance of certain capital and net income levels that may limit the amount of dividends that may be paid by the Bank to the parent company. As of December 31, 2006, the aggregate amount legally available to be distributed to the parent company was approximately $258.0 million, assuming that the Bank continues to be classified as well capitalized under the regulations of Prompt Corrective Action (see below). In addition though, bank regulatory agencies have the authority to prohibit a bank subsidiary from paying dividends or otherwise supplying funds to a bank holding company if the supervising agency determines that such payment would constitute an unsafe or unsound banking practice. Since the Bank was last notified of its well-capitalized classification, management is not aware of any conditions or events that would have changed
such classification.

Prompt Corrective ActionThe Banks capital classification is determined solely for the purpose of applying Prompt Corrective Action (PCA). The Federal Deposit Insurance Corporation Improvement Act of 1991, a major overhaul in the laws and regulations governing banks, introduced many new legal and regulatory frameworks  a significant one being PCA. The provisions in PCA were the result of a Congressional desire to reduce the potential for future regulatory/supervisory forbearance and thereby, hopefully, reducing future failure costs in the banking industry. Among other things, PCA provides banking regulators with the legal authority to reduce a banks capital classification below what the numerical capital ratios would otherwise indicate. The Banks capital classification is determined solely for the purpose of applying PCA and that classification may not constitute an accurate representation of
the Banks overall financial condition or prospects.

66CORUS BANKSHARES 2006 ANNUAL REPORT

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OFFBALANCE SHEET ARRANGEMENTS

As of the date of this report, Corus had no offbalance sheet arrangements, as defined by Securities and Exchange Commission Regulation S-K Item 303(a)(4).

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

The following table presents Corus contractual obligations as of December 31, 2006:

|                                         |  | PAYMENTS   DUE BY PERIOD |          
|---------------------------------------- |  | ------------------------ | ---------
|                                         |  |                          |          
|CONTRACTUAL OBLIGATIONS                  |  | LESS THAN   1 YEAR       |          
|                                         |  |                          |          
|(in thousands)                           |  |                          |          
|Deposits without a stated   maturity     |  | $                        | 2,423,699
|Certificates of deposit                  |  |                          | 6,051,563
|Long-term debtsubordinated   debentures |  |                          |         
|Other borrowings                         |  |                          | 1,118    
|Minimum fixed lease   obligations        |  |                          | 430      
|Purchase obligations                     |  |                          | 1,661    
|                                         |  |                          |          
|Total                                    |  | $                        | 8,478,471
|                                         |  |                          |          

The above table excludes interest on both deposit accounts and long-term obligations, as well as amounts that may be payable pursuant to the Commission Program for Commercial Loan Officers (the CLO program). The CLO program is discussed in detail under the Noninterest Expense section of Managements Discussion and Analysis of Financial Condition and Results of Operations.

Corus had the following lending commitments as of December 31, 2006:

|                                           |  |   |           | 
|------------------------------------------ |  | - | --------- | 
|(in thousands)                             |  |   |           | 
|Standby letters of credit                  |  | $ | 7,838     | 
|Commitment letters   outstanding           |  |   | 65,250    | 
|Unused commitments under   lines of credit |  |   | 4,231,445 | 
|                                           |  |   |           | 
|Total Commitments   Outstanding            |  | $ | 4,304,533 | 
|                                           |  |   |           | 

Refer to Note 12 in the Notes to Consolidated Financial Statements for additional detail.

CORUS BANKSHARES 2006 ANNUAL REPORT   67

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

|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. Corus uses 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 simulates earnings under a
variety of interest rate scenarios to quantify the effect of potential movements
in interest rates on projected net interest income. These simulations
incorporate managements assumptions regarding the future composition of
the balance sheet, which may include loan and deposit growth. Also factored into
the modeling is the use of derivative financial instruments, which may include
basis swaps, interest rate swaps, floors, and options.

Virtually all of the Banks assets are either floating rate, generally based on short-term interest rates and resetting quarterly, or short-term, generally maturing within the next few years. The Banks liabilities are very similar in nature, with the exception of demand deposits, which are effectively fixed at a zero percent interest rate, and the administered-rate deposits that do not reprice in lock-step with such changes in short-term interest rates (essentially, NOW and Savings accounts). The remaining component is shareholders equity. From an accounting perspective, and hence an interest rate risk sensitivity perspective, equity acts as zero percent fixed-rate funding.

The combination of shareholders equity, along with the demand and administered-rate deposits, is substantially greater than the few Bank assets that are long-term fixed-rate or noninterest-earning (primarily common stock portfolio, cash, fixed-rate loans, and fixed assets). As a result, during times of changing interest rates (in Corus case, short-term interest rates), this would give rise to more assets repricing than liabilities repricing. This is referred to, in banking parlance, as being asset sensitive.

As a result of its asset sensitive position, the Bank generally expects that increases in short-term interest rates will result in an increase of the Banks net interest income. Conversely, it is generally anticipated that decreases in short-term interest rates will result in a decrease in the Banks net interest income. Despite these expectations, it is important to note that the Banks interest rate sensitivity model does not attempt to forecast, among other factors, the future absolute level of interest rates, the speed with which those interest rates may change, the overall health of the economy, or the vibrancy of the residential real estate market. Thus, while the model points to greater Bank earnings under higher levels of (short-term) interest rates, such indications, while important, can not be viewed in isolation from the numerous other factors that affect the Companys
earnings power.

In order to gauge the Banks sensitivity to changes in short-term interest rates, management calculates the potential impact that changes in interest rates would have on the Banks net interest income over the next calendar year. For purposes of modeling simplicity, it is common for banks to use immediate changes in interest rates. Further, these changes are assumed to occur uniformly across the entire yield curve. These types of immediate and parallel shifts are commonly referred to as interest rate shocks.

It should be noted that while using such shocks to gauge interest rate risk is standard industry practice, interest rate changes of this sort are in fact very unlikely to occur. As most banks have a diverse mix of fixed versus floating assets and liabilities, with potentially vastly different maturity structures, such a simplistic assumption is quite problematic. With that said, as the vast preponderance of the Banks assets and liabilities are floating rate and reset, either directly or indirectly, off of very short-term interest rates, this simplistic assumption is actually reasonable for Corus. The only exception, and in the range of interest rate shocks shown below it is a rather modest one, results from the interest rate floors management has negotiated in many of its floating-rate CRE loans.

68CORUS BANKSHARES 2006 ANNUAL REPORT

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The following table, which reflects the interest risk positions as of December 31, 2006, and December 31, 2005, illustrates the Banks asset-sensitive positions under all interest rate shock scenarios. When reviewing the table below, it is important to understand that the various changes in interest rates shown are potential changes to the level of short-term interest rates that were prevailing as of each period end. That is, a 100 bp increase in rates for one time period could represent a very different interest rate scenario than another. Interest rate sensitivity was as follows:

|Rate Shock Amount (1)                                                                              |  | 200 bp |       | 100 bp |  | 0 bp |    | +100 bp |   | +200 bp |  | +300 bp |  
|-------------------------------------------------------------------------------------------------- |  | ------- | ----- | ------- |  | ---- | -- | ------- | - | ------- |  | ------- | -
|                                                                                                   |  |         |       |         |  |      |    |         |   |         |  |         |  
|Percent change in the next   twelve months net interest income vs. constant rates:                |  |         |       |         |  |      |    |         |   |         |  |         |  
|December 31, 2006                                                                                  |  |         | (11.7 | )%      |  | (7.2 | )% |         |  |         |  | 7.3     | %
|December 31, 2005                                                                                  |  |         | (2.0  | )%      |  | (4.0 | )% |         |  |         |  | 4.7     | %
|                                                                                                   |  |         |       |         |  |      |    |         |   |         |  |         |  
|                                                                                                  
|(1)These shocks represent   hypothetical instantaneous and sustained changes from current rates.

The above table indicates that the Banks projected interest rate sensitivity, as measured over the next 12 months, increased for all rising and falling rate shock scenarios. The implication of this increase is that, all else being equal (which it never is), the Bank would experience greater percentage changes in its net interest income as of December 31, 2006, than was the case as of December 31, 2005. The broad-based increase in sensitivity was primarily due to significant growth in fixed-rate 6- and 12-month certificates of deposit (CD) which funded either variable rate commercial real estate loans (repricing quarterly) or fixed-income securities with maturities of six months or less.

The more pronounced change under the 200 bp scenario was chiefly related to the interest rate floors that are incorporated into most of the Banks variable rate commercial real estate loans. These floors are the minimum interest rates that will apply to a loan regardless of how low interest rates may go. Note that, as the floors are negotiated on a loan-by-loan basis and fixed at the time the loan is originated, the loan portfolio will likely possess floors that cover a range, possibly a wide range, of interest rates. Moreover, as loans pay off and new loans are originated this mix will almost certainly change. As short-term interest rates have risen from December 31, 2005, to December 31, 2006, this means short-term interest rates would now have to fall farther than they would have at December 31, 2005, for the floors to be
effective. Stated differently, the floors were more out-of-the-money at December 31, 2006, than they were as of December 31, 2005.

Corus is also exposed to price risk with its common stock portfolio in financial industry companies valued at $217.0 million as of December 31, 2006, including net unrealized gains of $89.7 million. This price risk would impact the net income of Corus, in the form of securities losses, should unrealized losses on individual securities be determined to be other than temporary. This price risk would also affect any future gains or losses that may be realized upon the sale of certain equity securities or resulting from mergers/acquisitions of any companies held in the portfolio.

CORUS BANKSHARES 2006 ANNUAL REPORT   69

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MANAGEMENTS DISCUSSION andANALYSIS ofFINANCIAL CONDITION andRESULTS ofOPERATIONS (continued)

|CRITICAL   ACCOUNTING POLICIES
|------------------------------
|                              

ALLOWANCE FOR CREDIT LOSSES

Management has determined that one particular accounting policy requires a high level of judgment; the assessment of the Allowance for Credit Losses (the Allowance). The Allowance for Credit Losses is comprised of the Allowance for Loan Losses and a separate Liability for Credit Commitment Losses. The Allowance for Loan Losses is a reserve against funded loan amounts, while the Liability for Credit Commitment Losses is a reserve against unfunded commitments. The Allowance is available to absorb losses inherent in the loan portfolio. Increases to the Allowance result from provisions for credit losses that are charged to earnings and from recoveries of previously charged-off loans. Decreases to the Allowance result as loans, or portions thereof, are charged off.

The Allowance for Loan Losses is based upon quarterly analyses. Corus methodology for calculating the Allowance for Loan Losses is designed to first provide for specific reserves associated with impaired loans, defined by Generally Accepted Accounting Principles as loans where it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Management primarily uses the alphanumeric loan rating system documented by the Office of the Comptroller of the Currency (the OCC) to select loans for impairment assessment. Loans determined to be impaired are segregated from the remainder of the portfolio and are subjected to a specific review in an effort to determine whether or not a specific reserve is necessary and, if so, the appropriate amount of that reserve.

The remainder of the portfolio is then segmented into groups based on loan characteristics, seniority of collateral, and loan rating. A reserve is calculated and allocated to each of these groups based on historical net charge-off history coupled with a subjective Management Adjustment Factor. The Management Adjustment Factor is intended to incorporate those qualitative or environmental factors that are likely to cause estimated credit losses associated with the Banks existing portfolio to differ from historical loss experience.

While the Management Adjustment Factor is used to adjust for the most significant risk factors, these factors certainly do not constitute an exhaustive list. Environmental factors exist that indicate there are probable losses in the overall portfolio that have not been captured in the specific or allocated reserves. These risks are reflected in the unallocated portion of the Allowance for Loan Losses.

Ultimately, the Bank strives to maintain loan loss reserves that are directionally consistent with changes in the factors, taken as a whole, that evidence credit losses, keeping in mind the characteristics of the Banks loan portfolio.

The process for estimating the Liability for Credit Commitment Losses closely follows the process outlined above for the Allowance for Loan Losses. The primary difference is that the reserve is adjusted to account for the lower risk associated with unfunded amounts combined with the expected timing and likelihood of funding.

The assessment as to the adequacy of the Allowance is grounded by the assumption that historical experience is a good indicator of inherent losses. This assumption, while supported by guidance provided by the Financial Accounting Standards Board (FASB), the OCC, and the Securities and Exchange Commission, may not ultimately be correct. In that event, estimates of inherent losses may differ materially from actual results.

70CORUS BANKSHARES 2006 ANNUAL REPORT

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|FORWARD-LOOKING   STATEMENTS
|----------------------------
|                            

This Annual Report 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 likely, typically, may, intends, expects, believes, anticipates, estimates, projects, targets, forecasts, seeks, potential, or attempts or the negative of such terms or other variations on such terms or comparable terminology. By their nature, these statements are subject to risks, uncertainties and other factors which could cause actual future results to differ materially from those results expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the
likelihood that pending loans, particularly those that reach the Application Received stage, will ultimately close and changes in managements estimate of the adequacy of the allowance for credit losses.

Any forward-looking statements should be considered in light of the factors discussed above and the factors discussed from time to time in Corus filings with the Securities and Exchange Commission, including those under Item 1A, Risk Factors in Corus Annual Report on Form 10-K for the year ended December 31, 2006, as filed with the Securities and Exchange Commission. Corus undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this Annual Report.

CORUS BANKSHARES 2006 ANNUAL REPORT   71

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SUPPLEMENTAL FINANCIAL DATA: 10-YEAR HISTORY

|YEARS ENDED DECEMBER 31                                            |  | 2006 |            | 2005 |   | 2004      |   | 2003 |          
|------------------------------------------------------------------ |  | ---- | ---------- | ---- | - | --------- | - | ---- | ---------
|                                                                   |  |      |            |      |   |           |   |      |          
|(dollars in thousands, except per share   data)                    |  |      |            |      |   |           |   |      |          
|CONDENSED   INCOME STATEMENTS                                      |  |      |            |      |   |           |   |      |          
|Net   interest income                                              |  | $    | 341,901    |      | $ | 249,658   |   | $    | 151,464  
|Provision   for credit losses                                      |  |      | 7,500      |      |   | 6,000     |   |      |         
|Noninterest   income                                               |  |      | 19,201     |      |   | 27,949    |   |      | 51,415   
|Noninterest   expense                                              |  |      | 65,881     |      |   | 61,322    |   |      | 56,273   
|                                                                   |  |      |            |      |   |           |   |      |          
|Income   Before Income Taxes                                       |  |      | 287,721    |      |   | 210,285   |   |      | 146,606  
|Income   tax expense                                               |  |      | 98,277     |      |   | 73,056    |   |      | 48,667   
|                                                                   |  |      |            |      |   |           |   |      |          
|Net Income                                                         |  | $    | 189,444    |      | $ | 137,229   |   | $    | 97,939   
|                                                                   |  |      |            |      |   |           |   |      |          
|SELECTED   PER SHARE DATA: (1)                                     |  |      |            |      |   |           |   |      |          
|Diluted   earnings                                                 |  | $    | 3.28       |      | $ | 2.38      |   | $    | 1.70     
|Cash   dividends declared on common stock                          |  |      | 0.900      |      |   | 0.700     |   |      | 0.625    
|Book   value at year-end                                           |  |      | 15.01      |      |   | 12.35     |   |      | 10.79    
|Market   price at year-end                                         |  |      | 23.07      |      |   | 28.14     |   |      | 24.01    
|                                                                   |  |      |            |      |   |           |   |      |          
|AVERAGES:                                                          |  |      |            |      |   |           |   |      |          
|Assets                                                             |  | $    | 9,497,310  |      | $ | 6,648,237 |   | $    | 4,050,352
|Loans,   net of unearned income                                    |  |      | 4,456,799  |      |   | 3,551,877 |   |      | 2,461,790
|Earning   assets                                                   |  |      | 9,376,517  |      |   | 6,522,428 |   |      | 3,953,325
|Deposits                                                           |  |      | 8,244,985  |      |   | 5,625,268 |   |      | 3,184,367
|Long-term   obligations                                            |  |      | 389,056    |      |   | 309,421   |   |      | 233,045  
|Shareholders equity                                               |  |      | 759,213    |      |   | 630,401   |   |      | 563,446  
|                                                                   |  |      |            |      |   |           |   |      |          
|AT   YEAR-END:                                                     |  |      |            |      |   |           |   |      |          
|Assets                                                             |  | $    | 10,057,791 |      | $ | 8,458,740 |   | $    | 5,017,787
|Loans,   net of unearned income                                    |  |      | 4,141,979  |      |   | 4,524,511 |   |      | 2,793,828
|Earning   assets                                                   |  |      | 9,892,946  |      |   | 8,292,149 |   |      | 4,946,297
|Deposits                                                           |  |      | 8,704,675  |      |   | 7,265,829 |   |      | 4,096,816
|Long-term   obligations                                            |  |      | 422,329    |      |   | 377,404   |   |      | 260,658  
|Shareholders equity                                               |  |      | 844,527    |      |   | 689,775   |   |      | 599,591  
|                                                                   |  |      |            |      |   |           |   |      |          
|(CHARGE-OFFS)/RECOVERIES 
    COMMERCIAL REAL ESTATE LOANS(2)     |  |      |            |      |   |           |   |      |          
|Charge-offs                                                        |  | $    | (1,512     | )    | $ |          |   | $    |         
|Recoveries                                                         |  |      |           |      |   |          |   |      |         
|                                                                   |  |      |            |      |   |           |   |      |          
|Net   (Charge-offs)/Recoveries                                     |  | $    | (1,512     | )    | $ |          |   | $    |         
|                                                                   |  |      |            |      |   |           |   |      |          
|SIGNIFICANT   RATIOS:                                              |  |      |            |      |   |           |   |      |          
|Return   on average assets                                         |  |      | 2.0        | %    |   | 2.1       | % |      | 2.4      
|Return   on average equity                                         |  |      | 25.0       | %    |   | 21.8      | % |      | 17.4     
|Efficiency   ratio (3)                                             |  |      | 18.4       | %    |   | 22.9      | % |      | 33.5     
|Net   interest margin                                              |  |      | 3.7        | %    |   | 3.9       | % |      | 3.9      
|Nonaccrual   and Loans 90 days or more past due (NPLs)/Total loans |  |      | 2.6        | %    |   | 0.0       | % |      | 0.2      
|Allowance   for loan losses/NPLs                                   |  |      | 42.4       | %    |   | 638.6     | % |      | 571.8    
|Allowance   for loan losses/Total loans                            |  |      | 1.1        | %    |   | 0.9       | % |      | 1.2      
|                                                                   |  |      |            |      |   |           |   |      |          
|CAPITAL   RATIOS:                                                  |  |      |            |      |   |           |   |      |          
|Tier   1 leverage                                                  |  |      | 10.6       | %    |   | 10.7      | % |      | 15.7     
|Tier   1 risk-based capital                                        |  |      | 13.7       | %    |   | 11.5      | % |      | 15.4     
|Total   risk-based capital                                         |  |      | 16.3       | %    |   | 14.4      | % |      | 18.5     
|                                                                   |  |      |            |      |   |           |   |      |          
|COMMON   SHARE DATA: (1)                                           |  |      |            |      |   |           |   |      |          
|Weighted   average fully diluted shares                            |  |      | 57,705     |      |   | 57,710    |   |      | 57,636   
|Common   shares outstanding at year-end                            |  |      | 56,246     |      |   | 55,849    |   |      | 55,592   
|                                                                   |  |      |            |      |   |           |   |      |          

|(1) | All   amounts have been restated to reflect a 2-for-1stock split on 5/18/06   and 12/15/03.                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | This   section contains charge-off/recovery history for commercial real estate loans   only and is not representative of the total charge-off/recovery history for   all loan types.                                                    
|(3) | Total   noninterest expense less goodwill amortization divided by the sum of fully   taxable equivalent net interest income and noninterest income excluding   securities gains and losses and one-time gains on the sale of businesses.

72CORUS BANKSHARES 2006 ANNUAL REPORT

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|YEARS ENDED DECEMBER 31                                            |  | 2002 |           | 2001 |   | 2000      |   | 1999 |           | 1998 |   | 1997      |  
|------------------------------------------------------------------ |  | ---- | --------- | ---- | - | --------- | - | ---- | --------- | ---- | - | --------- | -
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|(dollars in thousands, except per share   data)                    |  |      |           |      |   |           |   |      |           |      |   |           |  
|CONDENSED   INCOME STATEMENTS                                      |  |      |           |      |   |           |   |      |           |      |   |           |  
|Net   interest income                                              |  | $    | 98,287    |      | $ | 107,709   |   | $    | 121,051   |      | $ | 106,131   |  
|Provision   for credit losses                                      |  |      |          |      |   |          |   |      |          |      |   |          |  
|Noninterest   income                                               |  |      | 23,079    |      |   | 25,716    |   |      | 47,260    |      |   | 18,948    |  
|Noninterest   expense                                              |  |      | 47,472    |      |   | 51,100    |   |      | 54,654    |      |   | 63,096    |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|Income   Before Income Taxes                                       |  |      | 73,894    |      |   | 82,325    |   |      | 113,657   |      |   | 61,983    |  
|Income   tax expense                                               |  |      | 24,580    |      |   | 28,142    |   |      | 38,903    |      |   | 21,257    |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|Net   Income                                                       |  | $    | 49,314    |      | $ | 54,183    |   | $    | 74,754    |      | $ | 40,726    |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|SELECTED   PER SHARE DATA: (1)                                     |  |      |           |      |   |           |   |      |           |      |   |           |  
|Diluted   earnings                                                 |  | $    | 0.86      |      | $ | 0.95      |   | $    | 1.31      |      | $ | 0.71      |  
|Cash   dividends declared on common stock                          |  |      | 0.159     |      |   | 0.154     |   |      | 0.149     |      |   | 0.144     |  
|Book   value at year-end                                           |  |      | 8.54      |      |   | 7.96      |   |      | 7.11      |      |   | 5.70      |  
|Market   price at year-end                                         |  |      | 10.92     |      |   | 11.35     |   |      | 12.37     |      |   | 6.00      |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|AVERAGES:                                                          |  |      |           |      |   |           |   |      |           |      |   |           |  
|Assets                                                             |  | $    | 2,639,429 |      | $ | 2,672,971 |   | $    | 2,518,960 |      | $ | 2,530,782 |  
|Loans,   net of unearned income                                    |  |      | 1,608,541 |      |   | 1,615,665 |   |      | 1,807,453 |      |   | 1,640,101 |  
|Earning   assets                                                   |  |      | 2,546,840 |      |   | 2,577,433 |   |      | 2,398,989 |      |   | 2,419,667 |  
|Deposits                                                           |  |      | 2,081,956 |      |   | 2,160,333 |   |      | 2,081,986 |      |   | 2,115,575 |  
|Long-term   obligations                                            |  |      | 50,252    |      |   | 36,668    |   |      | 40,000    |      |   | 40,000    |  
|Shareholders   equity                                             |  |      | 467,369   |      |   | 424,427   |   |      | 346,880   |      |   | 326,776   |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|AT   YEAR-END:                                                     |  |      |           |      |   |           |   |      |           |      |   |           |  
|Assets                                                             |  | $    | 2,617,050 |      | $ | 2,659,322 |   | $    | 2,598,467 |      | $ | 2,378,544 |  
|Loans,   net of unearned income                                    |  |      | 1,741,969 |      |   | 1,475,245 |   |      | 1,551,880 |      |   | 1,727,357 |  
|Earning   assets                                                   |  |      | 2,539,400 |      |   | 2,507,403 |   |      | 2,458,499 |      |   | 2,265,687 |  
|Deposits                                                           |  |      | 2,059,773 |      |   | 2,121,456 |   |      | 2,107,630 |      |   | 1,964,420 |  
|Long-term   obligations                                            |  |      | 45,375    |      |   | 48,000    |   |      | 40,000    |      |   | 40,000    |  
|Shareholders   equity                                             |  |      | 482,041   |      |   | 450,886   |   |      | 402,353   |      |   | 327,825   |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|(CHARGE-OFFS)/RECOVERIES      COMMERCIAL REAL ESTATE LOANS (2)    |  |      |           |      |   |           |   |      |           |      |   |           |  
|Charge-offs                                                        |  | $    |          |      | $ |          |   | $    |          |      | $ | (61       | )
|Recoveries                                                         |  |      | 17        |      |   | 10        |   |      | 42        |      |   | 123       |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|Net   (Charge-offs)/Recoveries                                     |  | $    | 17        |      | $ | 10        |   | $    | 42        |      | $ | 62        |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|SIGNIFICANT   RATIOS:                                              |  |      |           |      |   |           |   |      |           |      |   |           |  
|Return   on average assets                                         |  |      | 1.9       | %    |   | 2.0       | % |      | 3.0       | %    |   | 1.6       | %
|Return   on average equity                                         |  |      | 10.6      | %    |   | 12.8      | % |      | 21.6      | %    |   | 12.5      | %
|Efficiency   ratio (3)                                             |  |      | 40.9      | %    |   | 40.1      | % |      | 38.1      | %    |   | 41.0      | %
|Net   interest margin                                              |  |      | 3.9       | %    |   | 4.3       | % |      | 5.1       | %    |   | 4.5       | %
|Nonaccrual   and Loans 90 days or more past due (NPLs)/Total loans |  |      | 0.4       | %    |   | 0.4       | % |      | 0.3       | %    |   | 0.7       | %
|Allowance   for loan losses/NPLs                                   |  |      | 567.4     | %    |   | 705.1     | % |      | 779.4     | %    |   | 262.4     | %
|Allowance   for loan losses/Total loans                            |  |      | 2.1       | %    |   | 2.7       | % |      | 2.6       | %    |   | 1.9       | %
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|CAPITAL   RATIOS:                                                  |  |      |           |      |   |           |   |      |           |      |   |           |  
|Tier   1 leverage                                                  |  |      | 17.3      | %    |   | 15.4      | % |      | 14.0      | %    |   | 11.9      | %
|Tier   1 risk-based capital                                        |  |      | 16.8      | %    |   | 19.4      | % |      | 16.0      | %    |   | 15.3      | %
|Total   risk-based capital                                         |  |      | 18.9      | %    |   | 22.0      | % |      | 18.6      | %    |   | 17.8      | %
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  
|COMMON   SHARE DATA: (1)                                           |  |      |           |      |   |           |   |      |           |      |   |           |  
|Weighted   average fully diluted shares                            |  |      | 57,180    |      |   | 57,238    |   |      | 57,209    |      |   | 57,856    |  
|Common   shares outstanding at year-end                            |  |      | 56,477    |      |   | 56,639    |   |      | 56,573    |      |   | 57,477    |  
|                                                                   |  |      |           |      |   |           |   |      |           |      |   |           |  

|(1) | All   amounts have been restated to reflect a 2-for-1stock split on 5/18/06   and 12/15/03.                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | This   section contains charge-off/recovery history for commercial real estate loans   only and is not representative of the total charge-off/recovery history for   all loan types.                                                    
|(3) | Total   noninterest expense less goodwill amortization divided by the sum of fully   taxable equivalent net interest income and noninterest income excluding   securities gains and losses and one-time gains on the sale of businesses.

CORUS BANKSHARES 2006 ANNUAL REPORT    73

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PERFORMANCE GRAPH

The following chart compares the cumulative total returns of Corus Bankshares, Inc., the NASDAQ Stock Market (U.S.) (broad market index) and NASDAQ bank stocks (peer group index). The NASDAQ Stock Market for United States Companies index comprises all domestic common shares traded on the NASDAQ National Market and the NASDAQ Small-Cap Market. The NASDAQ Bank Stocks index comprises all banks traded on the NASDAQ National Market and NASDAQ Small-Cap Market. The chart assumes an investment of $100 on January 1, 2002 and dividend reinvestment throughout the period.

COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN AMONG CORUS BANKSHARES, INC., NASDAQ STOCK MARKET (U.S.), AND NASDAQ BANK STOCKS

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DOLLAR VALUE OF INVESTMENT AT DECEMBER 31

|                           |  | 2001 |     | 2002 |   | 2003 |  | 2004 |     | 2005 |   | 2006 | 
|-------------------------- |  | ---- | --- | ---- | - | ---- |  | ---- | --- | ---- | - | ---- | 
|                           |  |      |     |      |   |      |  |      |     |      |   |      | 
|NASDAQ Stock Market (U.S.) |  | $    | 100 |      | $ | 69   |  | $    | 103 |      | $ | 112  | 
|NASDAQ Bank Stocks         |  |      | 100 |      |   | 102  |  |      | 132 |      |   | 151  | 
|Corus Bankshares, Inc.     |  |      | 100 |      |   | 98   |  |      | 143 |      |   | 229  | 
|                           |  |      |     |      |   |      |  |      |     |      |   |      | 

74CORUS BANKSHARES 2006 ANNUAL REPORT

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DIRECTORS andEXECUTIVE OFFICERS

|DIRECTORS                               |  |                                         |  |                                    
|--------------------------------------- |  | --------------------------------------- |  | -----------------------------------
|                                        |  |                                         |  |                                    
|                                        |  |                                         |  |                                    
|Joseph C. Glickman                      |  | Robert J. Buford                        |  | Michael J. McClure*                
|Chairman   of the Board                 |  | President   and Chief Executive Officer |  | Managing   Director                
|Corus   Bankshares, Inc.                |  | Planned   Realty Group, Inc.            |  | Residential   Capital, LLC         
|                                        |  | and   Affiliates                        |  |                                    
|                                        |  |                                         |  |                                    
|Robert J. Glickman                      |  | Kevin R. Callahan*                      |  | Peter C. Roberts                   
|President   and Chief Executive Officer |  | Chief   Executive Officer               |  | Chief   Executive Officer Americas
|Corus   Bankshares, Inc.                |  | Affirmative   Holdings, Inc.            |  | Jones   Lang LaSalle, Inc.         
|                                        |  |                                         |  |                                    
|                                        |  | Rodney D. Lubeznik*                     |  |                                    
|                                        |  | President   and Chief Executive Officer |  |                                    
|                                        |  | Restaurant   Management Corp.           |  |                                    
|                                        |  |                                         |  |                                    
|*Audit   Committee Member               |  |                                         |  |                                    
|                                        |  |                                         |  |                                    
|                                        |  |                                         |  |                                    
|EXECUTIVE OFFICERS                      |  |                                         |  |                                    
|                                        |  |                                         |  |                                    
|                                        |  |                                         |  |                                    
|Robert J. Glickman                      |  | Michael E. Dulberg                      |  | Joel C. Solomon                    
|President   and Chief Executive Officer |  | Senior   Vice President and             |  | Senior   Vice President           
|                                        |  | Chief   Accounting Officer              |  | Commercial   Lending               
|                                        |  |                                         |  |                                    
|Randy P. Curtis                         |  |                                         |  |                                    
|Executive   Vice President             |  | Michael W. Jump                         |  | Timothy J. Stodder                 
|Retail   Banking                        |  | Senior   Vice President                |  | Senior   Vice President           
|                                        |  | Operations                              |  | Commercial   Lending               
|Michael G. Stein                        |  |                                         |  |                                    
|Executive   Vice President             |  | Terence W. Keenan                       |  | Daniel A. Niedermeyer              
|Commercial   Lending                    |  | Senior   Vice President                |  | First   Vice President            
|                                        |  | Commercial   Lending                    |  | Consumer   Lending/Operations      
|Tim H. Taylor                           |  |                                         |  |                                    
|Executive   Vice President and          |  | Richard J. Koretz                       |  |                                    
|Chief   Financial Officer               |  | Senior   Vice President                |  |                                    
|                                        |  | Finance                                 |  |                                    

CORUS BANKSHARES 2006 ANNUAL REPORT    75

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|SENIOR OFFICERS           |  |                         |  |                        
|------------------------- |  | ----------------------- |  | -----------------------
|                          |  |                         |  |                        
|                          |  |                         |  |                        
|John M. Barkidjija        |  | John P. Ascher          |  | Marilyn Klehm Martin   
|Senior   Vice President  |  | First   Vice President |  | First   Vice President
|Commercial   Lending      |  | Commercial   Lending    |  | Operations             
|                          |  |                         |  |                        
|Brian J. Brodeur          |  | William W. Baird        |  | Rosa M. Paz            
|Senior   Vice President  |  | First   Vice President |  | First   Vice President
|Commercial   Lending      |  | Operations              |  | Commercial   Lending   
|                          |  |                         |  |                        
|Dwight L. Frankfather     |  | Yolanda M. Deen         |  | Mary Kay Phillips      
|Senior   Vice President  |  | First   Vice President |  | First   Vice President
|Commercial   Lending      |  | Retail   Banking        |  | Retail   Banking       
|                          |  |                         |  |                        
|John R. Markowicz         |  | James J. Dow            |  | David R. Ploger        
|Senior   Vice President  |  | First   Vice President |  | First   Vice President
|Commercial   Lending      |  | Commercial   Lending    |  | Commercial   Lending   
|                          |  |                         |  |                        
|                          |  | Peter R. Freund         |  | William A. Reynolds    
|                          |  | First   Vice President |  | First   Vice President
|                          |  | Commercial   Lending    |  | Operations             
|                          |  |                         |  |                        
|                          |  | Keith R. Gibbons        |  | Daniel P. Semenak      
|                          |  | First   Vice President |  | First   Vice President
|                          |  | Commercial   Lending    |  | Finance                
|                          |  |                         |  |                        
|                          |  | Mary S. Koehler         |  |                        
|                          |  | First   Vice President |  |                        
|                          |  | Retail   Banking        |  |                        

76CORUS BANKSHARES 2006 ANNUAL REPORT

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SHAREHOLDER INFORMATION

|                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|CORPORATE   OFFICES                              |  | ACCESS TO   REPORTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3959 N. Lincoln Avenue   Chicago, Illinois 60613 |  | The Companys Annual   Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form   8-K, and all amendments to those reports are made available free of charge   through the Companys Web site at www.corusbank.com as soon as reasonably   practicable after such material is electronically filed with or furnished to   the Securities and Exchange Commission. Copies will be available upon   written request to the Chief Financial Officer of the Company. A charge will   be made for exhibits requested.
|                                                 | 
|Telephone 773-832-3088                           | 
|                                                 | 
|www.corusbank.com                                | 
|                                                 | 



|                           |  |                                                                                                               |  |                       
|-------------------------- |  | ------------------------------------------------------------------------------------------------------------- |  | ----------------------
|ANNUAL   MEETING           |  | Doubletree Hotel &                                                                                            |  | 9599 Skokie Boulevard 
|10:00 a.m., April 23, 2007 |  | Conference Center                                                                                             |  | Skokie, Illinois 60077
|                           |  |                                                                                                               |  |                       
|                           |  |                                                                                                               |  | Telephone 847-679-7000
|                           |  |                                                                                                               |  |                       
|                           |  |                                                                                                               |  |                       
|                           |  | TRANSFER   AGENT AND REGISTRAR                                                                               
|                           |  |                                                                                                              
|                           |  | Mellon Investor Services   LLC                                                                               
|                           |  | 480 Washington Boulevard                                                                                     
|                           |  | Jersey City, New Jersey   07310-1900                                                                         
|                           |  |                                                                                                              
|                           |  | 866-282-3950 Toll-free   number for shareholders                                                             
|                           |  |                                                                                                              
|                           |  | 800-231-5469 TDD   (Telecommunications Device for the Deaf) number for hearing/speech impaired   shareholders
|                           |  |                                                                                                              
|                           |  | Mellon Web site:   www.melloninvestor.com/isd                                                                
|                           |  |                                                                                                              
|                           |  | Mellon E-mail Contact:   shrrelations@mellon.com                                                             

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