Exhibit 99
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 | | 1360 Porter Street• Dearborn, MI 48124 |
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| | | Phone (313) 565-5700• Fax (313) 561-2291 |
DEARBORN BANCORP REPORTS SECOND QUARTER EARNINGS
DEARBORN, Michigan, July 19, 2005 ... Dearborn Bancorp, Inc. (Nasdaq: DEAR), the Holding Company for Community Bank of Dearborn, today reported that its earnings for the Second Quarter of 2005 were $1,412,000 or $0.26 per fully diluted common share. For the same period one year earlier, earnings were $1,390,000 or $0.36 per diluted share, making the year-to-year increase 1.6 percent. For the first six months of 2005, earnings were $3,177,000 or $0.59 per fully diluted common share, 23.9 percent more than earnings of $2,564,000 or $0.68 per diluted share reported for the First Half of 2004.
Michael J. Ross, President and Chief Executive Officer of both the Holding Company and the Bank issued his organization’s earnings report. He commented, “Our earnings from day-to-day operations for 2005 have continued to reflect the positive trend of recent years. During the Second Quarter, however, we reduced earnings to reflect a $696,000 decline in the fair market value of 80,000 shares of Federal Home Loan Mortgage Corporation (“Freddie Mac”) preferred stock that we purchased in 2001. We had previously recorded this decline in market value as an unrealized loss on securities and deducted it from the capital accounts of the Company. Now, we have reclassified this unrealized loss as an other than temporary loss in our earnings statements in accordance with Financial Accounting Standard 115 and Securities and Exchange Commission Staff Accounting Bulletin 59.”
Ross went on to say, “This decline in the market value of the Freddie Mac preferred shares reflects the changes in the interest rate environment and discovery of certain accounting irregularities at Freddie Mac and Fannie Mae that were announced in 2004.”
During the 12 months ended June 30, 2005, the Company’s total assets increased 47.3 percent to $700,493,000, total deposits went up 43.1 percent to stand at $580,615,000 and total loans grew by 44.6 percent to $635,718,000. The return on average total assets was 0.81 percent during the Second Quarter and 0.93 percent during the First Half of the year. The return on average stockholders’ equity was 7.22 percent during the Second Quarter and 8.24 percent during the first six months. It should be noted that returns on equity and earnings per share in 2004 and 2005 are not directly comparable because of the Company’s successful stock offering in July, 2004.
Dearborn Bancorp, Inc., is a registered bank holding company. Its sole subsidiary is Community Bank of Dearborn. The Bank operates twelve offices in Wayne, Oakland, Macomb and Washtenaw Counties in the State of Michigan. The Company’s common shares trade on the Nasdaq National Market under the symbol DEAR.
Contact: Michael J. Ross, President & CEO or Jeffrey L Karafa, CFO at (313) 565-5700.
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 the ultimate actual outcome and a preceding forward-looking statement.
