Exhibit 99
DEARBORN BANCORP REPORTS RECORD
FIRST QUARTER EARNINGS.
DEARBORN, Michigan, April 20, 2004 ... Dearborn Bancorp, Inc. (Nasdaq: DEAR), the Holding Company for Community Bank of Dearborn, announced today that its earnings for the three months ended March 31, 2004, were $1,174,000 or $0.36 per diluted common share. These earnings were a new record for any quarterly reporting period in the Company’s ten-year history. They were also 102% greater than income of $580,000 ($0.19 per diluted common share) reported for the same period in 2003.
During the 12 months prior to the end of the First Quarter, the Company’s total assets increased by 20 percent to $463,543,000, total deposits went up 23 percent to $395,904,000, and total loans grew by 46 percent to stand at $420,783,000 at the end of March.
Michael J. Ross, President and Chief Executive Officer of both the Holding Company and the Bank issued his organization’s earnings report and commented, “By virtually any measure, our Company is making splendid progress and our financial performance attests to that fact. Our net interest income was up 49 percent over the same quarter last year, due primarily to growth in our loan portfolio. The decline in non-interest income was due to the apparent end of the mortgage refinance boom, but in dollar terms, this fall off in mortgage banking revenue was dwarfed by the increase in interest income.”
Ross went on to say, “We are particularly pleased with the growth of deposit and loan volumes at our newest offices in Auburn Hills and Southgate. Both of these operations are now solidly profitable. This happy situation has allowed us to begin evaluating potential sites for additional bank offices. In the meantime, we will continue striving for profitable growth within the markets we already serve.”
Dearborn Bancorp, Inc., is a registered bank holding company. Its sole subsidiary is Community Bank of Dearborn. The bank operates full service offices in Dearborn, Dearborn Heights, Plymouth Township, Canton Township, Clinton Township, Southgate, and Auburn Hills in the State of Michigan. The company’s common shares trade on the Nasdaq National Market under the symbol DEAR.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and about the Corporation and the Bank. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “projects,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. The Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events (whether anticipated or unanticipated), or otherwise.
Future Factors include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies, trends in customer behavior as well as their ability to repay loans; and changes in the national and local economy. These are representative of the Future Factors and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
DEARBORN BANCORP, INC.
| (In thousands, except share data) | ||||||||
| 3 Months Ended | 3 Months Ended | |||||||
| March 31 | March 31 | |||||||
| Condensed Statement of Income: | 2004 | 2003 | ||||||
| Interest income | $ | 6,498 | $ | 5,317 | ||||
| Interest expense | 2,014 | 2,305 | ||||||
| Net interest income | 4,484 | 3,012 | ||||||
| Provision for loan losses | 224 | 228 | ||||||
| Net interest income after provision | 4,260 | 2,784 | ||||||
| Non-interest income | 306 | 751 | ||||||
| Non-interest expense | 2,791 | 2,657 | ||||||
| Income before taxes | 1,775 | 878 | ||||||
| Income tax provision | 601 | 298 | ||||||
| Net income | $ | 1,174 | $ | 580 | ||||
Share Data: | ||||||||
| Weighted avg no. of shares outstanding — basic | 2,952,870 | 2,887,525 | ||||||
| Weighted avg no. of shares outstanding — diluted | 3,255,853 | 3,119,441 | ||||||
| Period end shares outstanding | 2,960,303 | 2,896,078 | ||||||
Per Common Share Data: | ||||||||
| Net income, basic | $ | 0.40 | $ | 0.20 | ||||
| Net income, diluted | $ | 0.36 | $ | 0.19 | ||||
| Closing Stock Price | $ | 22.00 | $ | 15.22 | ||||
| Book Value | $ | 12.08 | $ | 10.82 | ||||
Profitability Ratios, Annualized: | ||||||||
| Return on average stockholders’ equity | 13.23 | % | 7.45 | % | ||||
| Return on average total assets | 1.04 | % | 0.63 | % | ||||
| Average equity to average total assets | 7.85 | % | 8.49 | % | ||||
| Condensed Balance Sheet: | March 31 | December 31 | March 31 | |||||||||
| 2004 | 2003 | 2003 | ||||||||||
| Assets | ||||||||||||
| Cash and equivalents | $ | 20,957 | $ | 21,148 | $ | 53,878 | ||||||
| Mortgage loans held for sale | 1,266 | 1,505 | 8,633 | |||||||||
| Investment securities, available for sale | 13,607 | 18,021 | 29,899 | |||||||||
| Loans | 420,783 | 400,958 | 288,321 | |||||||||
| Allowance for loan losses | (4,632 | ) | (4,314 | ) | (3,109 | ) | ||||||
| Other assets | 11,562 | 8,757 | 8,433 | |||||||||
| Total assets | $ | 463,543 | $ | 446,075 | $ | 386,055 | ||||||
| Liabilities and stockholders’ equity | ||||||||||||
| Deposits | $ | 395,904 | $ | 379,619 | $ | 322,062 | ||||||
| Federal Home Loan Bank advances | 20,638 | 20,638 | 20,660 | |||||||||
| Other liabilities | 1,251 | 1,217 | 1,993 | |||||||||
| Subordinated debentures | 10,000 | 10,000 | 10,000 | |||||||||
| Stockholders’ equity | 35,750 | 34,601 | 31,340 | |||||||||
| Total liabilities and stockholders’ equity | $ | 463,543 | $ | 446,075 | $ | 386,055 | ||||||