Dearborn Bancorp (DEAR) 8-K Dearborn Bancorp Reports 2007 and Fourth Quarter Earnings

EXHIBIT 99

DEARBORN BANCORP REPORTS 2007
AND FOURTH QUARTER EARNINGS

     DEARBORN, Michigan, January 15, 2008 ... Dearborn Bancorp, Inc. (Nasdaq: DEAR), the holding company for Fidelity Bank (formerly Community Bank of Dearborn) today reported its earnings for 2007 and the Fourth Quarter of the year. Net income for the twelve months ended December 31, 2007, was $3,166,000 or $0.36 per fully diluted common share. For 2006, the Company reported net income of $7,819,000 or $1.17 per diluted share. Net income for the Fourth Quarter of 2007 was $398,000 or $0.05 per diluted share while net income for the same three months of 2006 was $2,252,000 or $0.29 per diluted share.

     During the full calendar year, the Company’s total assets increased 22.3 percent to $1,046,981,000. Total deposits went up 29.9 percent to $822,627,000 and total loans grew by 25.9 percent to stand at $952,084,000 at year-end. Stockholders’ equity was $137,548,000 at December 31, 2007 and its subsidiary, Fidelity Bank, remains categorized as “well capitalized” by bank regulators.

     Michael J. Ross, President and Chief Executive Officer of both the Holding Company and the Bank, issued his organization’s financial results and commented, “The economic situation in Southeastern Michigan continues to deteriorate and our State’s problems have been well-documented in both the local and national media. These conditions have had a negative effect on our customers and that, in turn, has affected us. While our problems have been focused on residential land development and construction loans, we are particularly pleased that we have no exposure to sub-prime mortgages, either in terms of loans on our books or securities in our investment portfolio.”

     Ross continued, “At year-end, only two percent of our total loans were non-performing and net charge-offs for the full year were only one half of one percent of average loans. That is much better than many of our community bank peers. Net interest margin for the year was 3.48 percent and 3.22 percent in the Fourth Quarter. As the Federal Reserve lowered key interest rates in 2007, the yields on many loans went down, but competition has kept the cost of deposits from going down by a like amount, resulting in a contracting margin.”

     “There were several specific factors that had an impact on Fourth Quarter earnings. First, we had net charge offs of $548,000 in the quarter and made an off-setting addition to the provision for loan losses. Second, we transferred a number of loans to non-accrual status and reversed approximately $221,000 of interest income previously accrued on these loans. Third, we wrote down real estate owned by $105,000. Fourth, we accrued property taxes payable on real estate owned of about $345,000. Finally, while not related to problem loans, a change in FDIC deposit insurance premiums increased expense by $315,000.”

     “We are well aware of how our shareholders have been impacted by the current situation in our industry and at our Bank. Tangible book value of the Company was $11.56 at year end compared to a $7.73 market value. The market price of our stock simply does not reflect the real value inherent in our organization. Because of our strong capital position, we were able to buy over 750,000 shares of our stock, or about 8.4 percent of the shares outstanding, in the open market during 2007.”

     “The good news,” Ross concluded, “is that we are still operating profitably and our capital position remains strong. Even though we are in the midst of a ‘perfect storm’ that rages from Wall Street to Main Street, we are weathering that storm and expect to emerge as a strong and effective competitor. Most importantly, we look forward to a recovery in the financial markets and the banking industry. In due course, we believe that the market will share the same confidence in our financial condition and optimism about our prospects.”

     Dearborn Bancorp, Inc., is a registered bank holding company. Its sole subsidiary Fidelity Bank operates 19 offices in Wayne, Oakland, Macomb and Washtenaw Counties in the State of Michigan. Its common shares trade on the Nasdaq Global 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 an ultimate actual outcome and a preceding forward-looking statement.

DEARBORN BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars, in thousands)	12/31/07			12/31/06
ASSETS
Cash and cash equivalents
Cash and due from banks	$	7,869		$	5,824
Federal funds sold		1,495			64,198
Interest bearing deposits with banks		118			8
Total cash and cash equivalents		9,482			70,030
Mortgage loans held for sale		1,316			1,823
Securities, available for sale		8,902			5,878
Federal Home Loan Bank stock		2,072			1,288
Loans
Loans		952,084			756,420
Allowance for loan loss		(10,617	)		(7,775	)
Net loans		941,467			748,645
Premises and equipment, net		22,782			14,293
Real estate owned		6,319			52
Goodwill		34,028			5,473
Other intangible assets		11,133			2,041
Accrued interest receivable		3,816			3,337
Other assets		5,664			3,071
Total assets	$	1,046,981		$	855,931
LIABILITIES
Deposits
Non-interest bearing deposits	$	83,594		$	53,065
Interest bearing deposits		739,033			580,151
Total deposits		822,627			633,216
Other liabilities
Federal funds purchased		30,100			37,300
Securities sold under agreements to repurchase		480			619
Federal Home Loan Bank advances		41,370			25,561
Other liabilities		1,688			516
Accrued interest payable		3,168			3,734
Subordinated debentures		10,000			10,000
Total liabilities		909,433			710,946
STOCKHOLDERS’ EQUITY
Common stock - 20,000,000 shares authorized, 8,222,413 shares at 12/31/07 and 8,975,085 shares at 12/31/06		135,455			144,907
Retained earnings		2,073			84
Accumulated other comprehensive income (loss)		20			(6	)
Total stockholders’ equity		137,548			144,985
Total liabilities and stockholders’ equity	$	1,046,981		$	855,931

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)

	Three Months Ended					Twelve Months Ended
(In thousands, except share and per share data)	12/31/07			12/31/06		12/31/07			12/31/06
Interest income
Interest on loans, including fees	$	16,998		$	14,192	$	68,947		$	52,321
Interest on securities, available for sale		102			315		603			834
Interest on federal funds		72			197		433			573
Interest on deposits with banks		43			6		127			158
Total interest income		17,215			14,710		70,110			53,886
Interest expense
Interest on deposits		8,616			6,664		33,303			23,447
Interest on other borrowings		530			467		2,338			1,567
Interest on subordinated debentures		195			235		850			870
Total interest expense		9,341			7,366		36,491			25,884
Net interest income		7,874			7,344		33,619			28,002
Provision for loan losses		855			161		5,821			943
Net interest income after provision for loan losses		7,019			7,183		27,798			27,059
Non-interest income
Service charges on deposit accounts		328			192		1,267			699
Fees for other services to customers		43			10		141			48
Gain on the sale of loans		28			43		163			145
Write-down of real estate		(105	)		—		(701	)		—
Gain (loss) on the sale of real estate		(26	)		—		(26	)		(103	)
Gain (loss) on the sale of securities		—			—		—			9
Other income		54			95		176			127
Total non-interest income		322			340		1,020			925
Non-interest expenses
Salaries and employee benefits		3,318			2,774		13,109			10,288
Occupancy and equipment expense		915			593		3,663			2,420
Intangible expense		416			63		1,328			251
Advertising and marketing		129			46		468			385
Stationery and supplies		137			117		617			402
Professional services		255			190		1,042			768
Data processing		274			151		716			531
Other operating expenses		1,295			266		2,853			1,180
Total non-interest expenses		6,739			4,200		23,796			16,225
Income before income tax provision		602			3,323		5,022			11,759
Income tax provision		204			1,071		1,856			3,940
Net income (loss)	$	398		$	2,252	$	3,166		$	7,819
Per share data:
Net income — basic	$	0.05		$	0.30	$	0.37		$	1.23
Net income — diluted	$	0.05		$	0.29	$	0.36		$	1.17
Weighted average number of shares outstanding — basic		8,349,707			7,579,147		8,606,144			6,372,471
Weighted average number of shares outstanding — diluted		8,497,581			7,867,739		8,771,895			6,672,319

DEARBORN BANCORP, INC. AND SUBSIDIARY
ASSET QUALITY DATA

(Dollars, in thousands)	12/31/2007		9/30/2007		6/30/2007		3/31/2007		12/31/2006
Loans over 90 days past due and still accruing	$	884	$	2,673	$	2,217	$	3,858	$	2,101
Non-accrual loans		18,117		17,297		14,941		9,274		5,560
Total non-performing loans		19,001		19,970		17,158		13,132		7,661
Real estate owned and other repossessed assets		6,319		3,338		3,008		3,157		54
Total non-performing assets	$	25,320	$	23,308	$	20,166	$	16,289	$	7,715
Net charge-offs (Year to date)	$	4,683	$	4,135	$	435	$	449	$	(24	)
Allowance for loan losses		10,617		10,309		9,949		9,647		7,775

ASSET QUALITY RATIOS

	12/31/2007			9/30/2007			6/30/2007			3/31/2007			12/31/2006
Non-accrual loans to total loans		1.90	%		1.83	%		1.58	%		0.99	%		0.74	%
Non-performing loans to total loans		2.00	%		2.11	%		1.81	%		1.40	%		1.01	%
Non-performing assets to total assets		2.42	%		2.22	%		1.93	%		1.56	%		0.90	%
Loans over 90 days past due and still accruing to total loans		0.09	%		0.28	%		0.23	%		0.41	%		0.28	%
Net charge-offs to average loans		0.50	%		0.44	%		0.05	%		0.05	%		0.00	%
Allowance for loan losses to non-performing loans		55.88	%		51.62	%		57.98	%		73.46	%		101.49	%
Allowance for loan losses to non-performing assets		41.93	%		44.23	%		49.34	%		59.22	%		100.78	%
Allowance for loan losses to total loans		1.12	%		1.09	%		1.05	%		1.03	%		1.03	%

DEARBORN BANCORP, INC. AND SUBSIDIARY
NON-GAAP OPERATING EARNINGS INFORMATION

	Quarter Ended
(Dollars, in thousands except share and per share data)	12/31/2007			9/30/2007			6/30/2007			3/31/2007			12/31/2006
Income (loss) from continuing operations	$	398			($855	)	$	2,005		$	1,618		$	2,252
Add: Non-recurring merger expenses		121			99			131			222			0
Tax effect		(41	)		(34	)		(45	)		(75	)		0
After-tax non operating items		80			65			86			147			0
Core operating income (loss)	$	478			($790	)	$	2,091		$	1,765		$	2,252

	Quarter Ended
	12/31/2007			9/30/2007			6/30/2007			3/31/2007			12/31/2006
Core operating income (loss)	$	478			($790	)	$	2,091		$	1,765		$	2,252
Add: Amortization of intangible assets		416			240			336			336			63
Tax effect		(141	)		(82	)		(114	)		(114	)		(21	)
After-tax non operating items		275			158			222			222			42
Cash operating income (loss)	$	751			($632	)	$	2,312		$	1,985		$	2,294

	Quarter Ended
(Dollars, in thousands except share and per share data)	12/31/2007		12/31/2006
Income (loss) from continuing operations	$	398	$	2,252
After-tax non-recurring merger expenses		80		0
Core operating income (loss)		478		2,252
After tax amortization of intangible assets		275		42
Cash operating income (loss)	$	752	$	2,294

Basic EPS

	Quarter Ended
	12/31/2007		12/31/2006
Income (loss) from continuing operations	$	0.05	$	0.30
After-tax non-recurring merger expenses	$	0.01	$	0.00
Core operating income (loss)	$	0.06	$	0.30
After tax amortization of intangible assets	$	0.03	$	0.01
Cash operating income (loss)	$	0.09	$	0.30

Diluted EPS

	Quarter Ended
	12/31/2007		12/31/2006
Income (loss) from continuing operations	$	0.05	$	0.29
After-tax non-recurring merger expenses	$	0.01	$	0.00
Core operating income (loss)	$	0.06	$	0.29
After tax amortization of intangible assets	$	0.03	$	0.01
Cash operating income (loss)	$	0.09	$	0.29
Weighted average shares outstanding — basic		8,357,909		7,579,147
Weighted average shares outstanding — diluted		8,504,931		7,867,739

DEARBORN BANCORP, INC. AND SUBSIDIARY
TANGIBLE ASSETS & EQUITY

	Quarter Ended
(Dollars, in thousands)	12/31/2007			12/31/2006
Average GAAP equity	$	139,845		$	120,243
Goodwill		34,028			5,473
Other intangible assets		11,438			2,071
Deferred taxes		(988	)		(232	)
		44,478			7,312
Average tangible equity	$	95,367		$	112,931

	Quarter Ended
	12/31/2007			12/31/2006
Average GAAP assets	$	1,053,498		$	821,381
Goodwill		34,028			5,473
Other intangible assets		11,438			2,071
Deferred taxes		(988	)		(232	)
		44,478			7,312
Average tangible assets	$	1,009,020		$	814,069

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

	Quarter Ended
(Dollars, in thousands)	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
ASSETS
Cash and cash equivalents
Cash and due from banks	$	7,869		$	14,929		$	13,621		$	15,720		$	5,824
Federal funds sold		1,495			7,031			3,392			8,956			64,198
Interest bearing deposits with banks		118			100			104			59			8
Total cash and cash equivalents		9,482			22,060			17,117			24,735			70,030
Mortgage loans held for sale		1,316			384			1,136			582			1,823
Securities, available for sale		8,902			10,640			11,039			10,554			5,878
Federal Home Loan Bank stock		2,072			1,927			1,927			1,927			1,288
Loans
Loans		952,084			945,622			945,554			938,510			756,420
Allowance for loan loss		(10,617	)		(10,309	)		(9,949	)		(9,647	)		(7,775	)
Net loans		941,467			935,313			935,605			928,863			748,645
Bank premises and equipment, net		22,782			23,043			23,268			23,376			14,293
Real estate owned		6,319			3,338			3,008			3,157			52
Goodwill		34,028			34,029			32,110			32,242			5,473
Other intangible assets		11,133			11,550			13,697			14,033			2,041
Accrued interest receivable		3,816			4,258			3,833			4,019			3,337
Other assets		5,664			5,416			3,464			2,497			3,071
Total assets	$	1,046,981		$	1,051,958		$	1,046,204		$	1,045,985		$	855,931
LIABILITIES
Deposits
Non-interest bearing deposits	$	83,594		$	92,770		$	103,641		$	99,923		$	53,065
Interest bearing deposits		739,033			768,764			727,090			748,113			580,151
Total deposits		822,627			861,534			830,731			848,036			633,216
Other liabilities
Federal funds purchased		30,100			0			21,200			0			37,300
Securities sold under agreements to repurchase		480			491			288			355			619
Federal Home Loan Bank advances		41,370			36,429			37,130			37,241			25,561
Other liabilities		1,688			619			757			650			516
Accrued interest payable		3,168			3,361			3,336			4,627			3,734
Subordinated debentures		10,000			10,000			10,000			10,000			10,000
Total liabilities		909,433			912,434			903,442			900,909			710,946
Total stockholders’ equity		137,548			139,524			142,762			145,076			144,985
Total liabilities and stockholders’ equity	$	1,046,981		$	1,051,958		$	1,046,204		$	1,045,985		$	855,931

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT

	Quarter ended
(Dollars, in thousands)	12/31/2007			9/30/2007			6/30/2007			3/31/2007		12/31/2006
INTEREST INCOME
Interest on loans, including fees	$	16,998		$	17,565		$	17,259		$	17,125	$	14,192
Interest on other earning assets		217			286			314			346		518
Total interest income		17,215			17,851			17,573			17,471		14,710
INTEREST EXPENSE
Interest on deposits		8,616			8,663			8,246			7,778		6,664
Interest on other liabilities		725			687			732			1,044		702
Total interest expense		9,341			9,350			8,978			8,822		7,366
Net interest income		7,874			8,501			8,595			8,649		7,344
Provision for loan loss		855			4,060			289			617		161
Net interest income after provision for loan loss		7,019			4,441			8,306			8,032		7,183
NON-INTEREST EXPENSE
Deposit service charges		371			319			346			372		202
Gain on the sale of loans		28			34			47			54		43
Loss on the sale or write-down of real estate		(131	)		(496	)		(100	)		0		0
Other		54			39			64			19		95
Total non-interest income		322			(104	)		357			445		340
NON-INTEREST EXPENSE
Salaries and employee benefits		3,318			3,137			3,102			3,552		2,774
Occupancy and equipment expense		915			903			887			958		593
Other expense		2,506			1,451			1,590			1,477		833
Total non-interest expense		6,739			5,491			5,579			5,987		4,200
Income (loss) before income tax provision		602			(1,154	)		3,084			2,490		3,323
Income tax provision (benefit)		204			(299	)		1,079			872		1,071
Net income (loss)	$	398			($855	)	$	2,005		$	1,618	$	2,252

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED FINANCIAL DATA

	Quarter ended
(Dollars in thousands, except share and per share data)	12/31/2007			9/30/2007			6/30/2007			3/31/2007			12/31/2006
EARNINGS SUMMARY
Net interest income	$	7,874		$	8,501		$	8,595		$	8,649		$	7,344
Provision for loan loss	$	855		$	4,060		$	289		$	617		$	161
Total non-interest income	$	322			($104	)	$	357		$	445		$	340
Total non-interest expense	$	6,739		$	5,491		$	5,579		$	5,987		$	4,200
Income taxes	$	204			($299	)	$	1,079		$	872		$	1,071
Net income (loss)	$	398			($855	)	$	2,005		$	1,618		$	2,252
Basic earnings per share	$	0.05			($0.10	)	$	0.23		$	0.18		$	0.30
Diluted earnings per share	$	0.05			($0.10	)	$	0.22		$	0.18		$	0.29
MARKET DATA
Book value per share	$	16.68		$	16.47		$	16.57		$	16.33		$	16.15
Tangible book value per share	$	11.56		$	11.60		$	11.35		$	11.21		$	15.34
Market value per share	$	7.73		$	12.91		$	16.95		$	17.49		$	19.00
Average basic common shares		8,357,909			8,510,207			8,769,939			8,898,058			7,579,147
Average diluted common shares		8,504,931			8,510,207			9,005,730			9,159,900			7,867,739
Period end common shares		8,247,413			8,471,913			8,614,819			8,876,368			8,975,085
PERFORMANCE RATIOS
Return on average assets		0.15	%		-0.32	%		0.77	%		0.63	%		1.09	%
Return on average equity		1.13	%		-2.37	%		5.59	%		4.48	%		7.43	%
Net interest margin (FTE)		3.22	%		3.48	%		3.57	%		3.65	%		3.70	%
Efficiency ratio		80.93	%		61.75	%		61.63	%		65.83	%		54.66	%
ASSET QUALITY
Net charge-offs (YTD)	$	4,683		$	4,135		$	435		$	449			($24	)
Nonperforming loans	$	19,001		$	19,970		$	17,158		$	13,132		$	7,661
Other real estate	$	6,319		$	3,338		$	3,008		$	3,157		$	54
Nonperforming loans to total loans		2.00	%		2.11	%		1.81	%		1.40	%		1.01	%
Nonperforming assets to total assets		2.42	%		2.22	%		1.93	%		1.56	%		0.90	%
Allowance for loan loss to total loans		1.12	%		1.09	%		1.05	%		1.03	%		1.03	%
CAPITAL & LIQUIDITY
Average equity to average assets		13.27	%		13.60	%		13.70	%		14.06	%		14.64	%
Tier 1 capital to risk weighted assets		10.42	%		10.48	%		10.82	%		11.08	%		18.71	%
Total capital to risk weighted assets		11.51	%		11.52	%		11.83	%		12.06	%		19.69	%
Loan to deposit ratio		115.74	%		109.76	%		113.82	%		110.67	%		119.46	%
Loan to funding ratio		105.25	%		104.09	%		105.14	%		104.79	%		107.04	%
END OF PERIOD BALANCES
Total portfolio loans	$	952,084		$	945,622		$	945,554		$	938,510		$	756,420
Earning assets	$	965,987		$	965,704		$	963,152		$	960,006		$	827,792
Total assets	$	1,046,981		$	1,051,958		$	1,046,204		$	1,045,879		$	855,931
Deposits	$	822,627		$	861,534		$	830,731		$	848,036		$	633,216
Total shareholders’equity	$	137,548		$	139,524		$	142,762		$	144,970		$	144,985
AVERAGE BALANCES
Total portfolio loans	$	950,169		$	946,012		$	941,259		$	936,288		$	746,845
Earning assets	$	970,897		$	969,940		$	966,056		$	961,384		$	794,448
Total assets	$	1,053,498		$	1,052,185		$	1,049,655		$	1,040,779		$	821,381
Deposits	$	855,931		$	854,959		$	849,221		$	817,483		$	649,220
Total shareholders’equity	$	139,845		$	143,104		$	143,825		$	146,370		$	120,243

Dearborn Bancorp, Inc.

Loan Information at December 31, 2007

			Loan Detail								Other Related Data
			Accruing Loans								Allowance		Year to Date		Other Real
(In thousands)	12/31/07		Current		30 to 89 past due		Over 90 days past due		Non-Accrual		For Loan Losses		Net Charge-Offs		Estate Owned
Consumer Loans	$	35,833	$	34,349	$	1,023	$	31	$	430	$	451	$	201	$	0
Commercial Loans		174,958		170,970		2,865		62		1,061		1,400		690		1,724
Land Development — Residential		63,639		55,013		0		0		8,626		2,209		1,665		219
Land Development — Non Residential		10,156		10,156		0		0		0		117		0		343
Commercial Construction Loans — Residential		33,768		29,586		0		0		4,182		712		1,285		759
Commercial Construction Loans — Non Residential		40,187		40,187		0		0		0		551		0		0
Commercial Mortgage Loans		539,306		535,277		700		0		3,329		4,555		522		3,274
Residential Mortgages Loans		54,237		52,475		482		791		489		488		320		0
Totals	$	952,084	$	928,013	$	5,070	$	884	$	18,117		10,483	$	4,683	$	6,319
									Unallocated			134
									Total		$	10,617

Dearborn Bancorp, Inc.

Deposit Information

(In thousands)	December 31,
Category	2007		2006
Non-interest bearing
Demand	$	83,594	$	53,065
Interest bearing
Checking	$	65,195	$	62,770
Money market		106,145		14,289
Savings		29,815		42,169
Time, under $100,000		193,852		130,898
Time, $100,000 and over		344,026		330,025
		739,033		580,151
	$	822,627	$	633,216