Exhibit 99
DEARBORN BANCORP REPORTS
THIRD QUARTER EARNINGS
THIRD QUARTER EARNINGS
DEARBORN, Michigan, October 21, 2008 ... Dearborn Bancorp, Inc. (Nasdaq: DEAR), the Holding Company for Fidelity Bank, has reported net income of $1,420,000 or $0.18 per fully diluted common share for the three months ended September 30, 2008. For the same quarter one year ago, the Company reported a net loss of $855,000 or ($0.10) per share.
The Company has reduced its net loss to $2,518,000 or ($0.31) per diluted share during the first nine months of 2008. One year ago, the Company had net income of $2,768,000 or $0.32 per diluted share for the same three quarters. During the twelve months prior to the end of the Third Quarter, the Company’s total assets increased 2.5 percent and stood at $1,077,979,000 on September 30, 2008. Total deposits decreased 0.3 percent to $858,751,000 during the past year and total loans went down 0.7 percent to $939,109,000 during the same time.
Michael J. Ross, President and Chief Executive Officer of both the Holding Company and the Bank, issued his organization’s earnings report and commented, “We are pleased that we were able to operate at a modest profit during the past quarter in spite of the very difficult economic environment in which we find ourselves. Obviously, we have shifted our emphasis from seeking growth to administering our loan portfolio emphasizing quality and yield and improving our liquidity and capital positions.”
Ross went on, “It would be premature to say that we can see the end of the current crisis. Unfortunately, we are still experiencing increased levels of non-performing loans and other real estate owned. In the Third Quarter, non-accrual loans increased $15.1 million, most of which are secured by real estate. Net charge-offs were only $299,000, defaulted loan expense remains high at $483,000 for the quarter and our Allowance for Loan Losses stands at 1.75% of total loans.”
Ross continued, “We have begun to reposition our balance sheet as the nation wide credit crisis has had a direct impact on our liquidity position. As a result we need to continue to strengthen our liquidity, which will put downward pressure on our net interest margin at least in the short term. During the Third Quarter, we increased total deposits by $35.3 million, Federal Home Loan Bank advances by $6.9 million and cash and equivalents by $48.9 million.”
Ross concluded, “We have also looked at the U.S. Treasury’s voluntary Capital Purchase Program that encourages U.S. financial institutions to build capital to increase the flow of financing to business and consumers and to support the U.S. economy. We expect to take full advantage of this program by subscribing to the maximum amount of capital available. We believe that this is an important step to further solidify our Bank.”
Dearborn Bancorp, Inc. is a registered bank holding company. Its sole subsidiary is Fidelity Bank. The 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, at (313) 565-5700 or Jeffrey L. Karafa, CFO, at (313) 381-3200.
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) | 09/30/08 | 12/31/07 | 09/30/07 | |||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Cash and due from banks | $ | 15,719 | $ | 7,869 | $ | 14,929 | ||||||
| Federal funds sold | 14,281 | 1,495 | 7,031 | |||||||||
| Interest bearing deposits with banks | 33,146 | 118 | 100 | |||||||||
| Total cash and cash equivalents | 63,146 | 9,482 | 22,060 | |||||||||
| Mortgage loans held for sale | 281 | 1,316 | 384 | |||||||||
| Investment securities, available for sale | 2,520 | 8,902 | 10,640 | |||||||||
| Federal Home Loan Bank stock | 3,614 | 2,072 | 1,927 | |||||||||
| Loans | ||||||||||||
| Loans | 939,109 | 952,084 | 945,622 | |||||||||
| Allowance for loan loss | (16,429 | ) | (10,617 | ) | (10,309 | ) | ||||||
| Net loans | 922,680 | 941,467 | 935,313 | |||||||||
| Premises and equipment, net | 21,491 | 22,782 | 23,043 | |||||||||
| Real estate owned | 8,343 | 6,319 | 3,338 | |||||||||
| Goodwill | 34,028 | 34,028 | 34,028 | |||||||||
| Other intangible assets | 10,165 | 11,133 | 11,551 | |||||||||
| Accrued interest receivable | 3,601 | 3,816 | 4,258 | |||||||||
| Other assets | 8,110 | 5,664 | 5,416 | |||||||||
| Total assets | $ | 1,077,979 | $ | 1,046,981 | $ | 1,051,958 | ||||||
| LIABILITIES | ||||||||||||
| Deposits | ||||||||||||
| Non-interest bearing deposits | $ | 83,555 | $ | 83,594 | $ | 92,770 | ||||||
| Interest bearing deposits | 775,196 | 739,033 | 768,764 | |||||||||
| Total deposits | 858,751 | 822,627 | 861,534 | |||||||||
| Other liabilities | ||||||||||||
| Federal funds purchased | 0 | 30,100 | 0 | |||||||||
| Securities sold under agreements to repurchase | 222 | 480 | 491 | |||||||||
| Federal Home Loan Bank advances | 72,283 | 41,370 | 36,429 | |||||||||
| Accrued interest payable | 1,735 | 3,168 | 619 | |||||||||
| Other liabilities | 1,148 | 1,688 | 3,361 | |||||||||
| Subordinated debentures | 10,000 | 10,000 | 10,000 | |||||||||
| Total liabilities | 944,139 | 909,433 | 912,434 | |||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||
| Common stock - 20,000,000 shares authorized, 8,098,557 shares at 09/30/08, 8,222,413 shares at 12/31/07; and 8,471,913 shares at 09/30/07 | 133,099 | 134,278 | 137,837 | |||||||||
| Retained earnings | 732 | 3,250 | 1,675 | |||||||||
| Accumulated other comprehensive loss | 9 | 20 | 12 | |||||||||
| Total stockholders’ equity | 133,840 | 137,548 | 139,524 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,077,979 | $ | 1,046,981 | $ | 1,051,958 | ||||||
The accompanying notes are an integral part of these consolidated statements.
DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (In thousands, except share and per share data) | 09/30/08 | 09/30/07 | 09/30/08 | 09/30/07 | ||||||||||||
| Interest income | ||||||||||||||||
| Interest on loans, including fees | $ | 14,742 | $ | 17,565 | $ | 45,910 | $ | 51,949 | ||||||||
| Interest on securities, available for sale | 97 | 160 | 315 | 501 | ||||||||||||
| Interest on federal funds | 22 | 84 | 59 | 361 | ||||||||||||
| Interest on deposits with banks | 2 | 42 | 3 | 84 | ||||||||||||
| Total interest income | 14,863 | 17,851 | 46,287 | 52,895 | ||||||||||||
| Interest expense | ||||||||||||||||
| Interest on deposits | 5,764 | 8,663 | 18,666 | 24,687 | ||||||||||||
| Interest on other borrowings | 709 | 497 | 2,514 | 1,808 | ||||||||||||
| Interest on subordinated debentures | 140 | 190 | 520 | 655 | ||||||||||||
| Total interest expense | 6,613 | 9,350 | 21,700 | 27,150 | ||||||||||||
| Net interest income | 8,250 | 8,501 | 24,587 | 25,745 | ||||||||||||
| Provision for loan losses | 90 | 4,060 | 9,722 | 4,966 | ||||||||||||
| Net interest income after provision for loan losses | 8,160 | 4,441 | 14,865 | 20,779 | ||||||||||||
| Non-interest income | ||||||||||||||||
| Service charges on deposit accounts | 403 | 290 | 1,146 | 939 | ||||||||||||
| Fees for other services to customers | 23 | 29 | 89 | 98 | ||||||||||||
| Gain on the sale of loans | 61 | 34 | 165 | 135 | ||||||||||||
| Write-down of real estate | (209 | ) | (496 | ) | (509 | ) | (596 | ) | ||||||||
| Loss on the sale of real estate | (16 | ) | — | (720 | ) | — | ||||||||||
| Gain on the sale of securities, available for sale | 9 | — | 9 | — | ||||||||||||
| Other income | 48 | 39 | 195 | 122 | ||||||||||||
| Total non-interest income | 319 | (104 | ) | 375 | 698 | |||||||||||
| Non-interest expenses | ||||||||||||||||
| Salaries and employee benefits | 3,413 | 3,137 | 9,906 | 9,791 | ||||||||||||
| Occupancy and equipment expense | 908 | 903 | 2,771 | 2,748 | ||||||||||||
| Intangible expense | 323 | 240 | 968 | 912 | ||||||||||||
| Advertising and marketing | 138 | 119 | 392 | 339 | ||||||||||||
| Stationery and supplies | 103 | 124 | 407 | 480 | ||||||||||||
| Professional services | 241 | 301 | 726 | 787 | ||||||||||||
| Data processing | 145 | 114 | 602 | 442 | ||||||||||||
| Defaulted loan expense | 483 | (7 | ) | 1,429 | 223 | |||||||||||
| Other operating expenses | 558 | 560 | 1,777 | 1,335 | ||||||||||||
| Total non-interest expenses | 6,312 | 5,491 | 18,978 | 17,057 | ||||||||||||
| Income before income tax provision | 2,167 | (1,154 | ) | (3,738 | ) | 4,420 | ||||||||||
| Income tax provision | 747 | (299 | ) | (1,220 | ) | 1,652 | ||||||||||
| Net income | $ | 1,420 | $ | (855 | ) | $ | (2,518 | ) | $ | 2,768 | ||||||
| Per share data: | ||||||||||||||||
| Net income — basic | $ | 0.18 | $ | (0.10 | ) | $ | (0.31 | ) | $ | 0.32 | ||||||
| Net income — diluted | $ | 0.18 | $ | (0.10 | ) | $ | (0.31 | ) | $ | 0.31 | ||||||
| Weighted average number of shares outstanding — basic | 8,044,180 | 8,510,207 | 8,078,188 | 8,692,562 | ||||||||||||
| Weighted average number of shares outstanding — diluted | 8,082,263 | 8,510,207 | 8,078,188 | 8,935,941 | ||||||||||||
The accompanying notes are an integral part of these consolidated statements.
DEARBORN BANCORP, INC. AND SUBSIDIARY
ASSET QUALITY DATA
ASSET QUALITY DATA
| (Dollars, in thousands) | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Troubled debt restructuring | $ | 15,328 | $ | 13,145 | $ | 8,710 | $ | 21,077 | $ | 0 | ||||||||||
| Loans over 90 days past due and still accruing | 3,141 | 7,319 | 9,257 | 884 | 2,673 | |||||||||||||||
| Non-accrual loans | 51,342 | 36,195 | 17,406 | 18,117 | 17,297 | |||||||||||||||
| Total non-performing loans | 69,811 | 56,659 | 35,373 | 40,078 | 19,970 | |||||||||||||||
| Real estate owned and other repossessed assets | 8,343 | 5,411 | 6,183 | 6,319 | 3,338 | |||||||||||||||
| Total non-performing assets | $ | 78,154 | $ | 62,070 | $ | 41,556 | $ | 46,397 | $ | 23,308 | ||||||||||
| Net charge-offs (Year to date) | $ | 3,910 | $ | 3,611 | $ | 754 | $ | 4,683 | $ | 4,135 | ||||||||||
| Allowance for loan losses | 16,429 | 16,638 | 10,749 | 10,617 | 10,309 | |||||||||||||||
ASSET QUALITY RATIOS
| 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | ||||||||||||||||
| Non-accrual loans to total loans | 5.47 | % | 3.83 | % | 1.84 | % | 1.90 | % | 1.83 | % | ||||||||||
| Non-performing loans to total loans | 7.43 | % | 6.00 | % | 3.73 | % | 4.21 | % | 2.11 | % | ||||||||||
| Non-performing assets to total assets | 7.25 | % | 5.98 | % | 3.97 | % | 4.43 | % | 2.22 | % | ||||||||||
| Loans over 90 days past due and still accruing to total loans | 0.33 | % | 0.78 | % | 0.98 | % | 0.09 | % | 0.28 | % | ||||||||||
| Net charge-offs to average loans | 0.41 | % | 0.38 | % | 0.08 | % | 0.50 | % | 0.44 | % | ||||||||||
| Allowance for loan losses to non-performing loans | 23.53 | % | 29.37 | % | 30.39 | % | 26.49 | % | 51.62 | % | ||||||||||
| Allowance for loan losses to non-performing assets | 21.02 | % | 26.81 | % | 25.87 | % | 22.88 | % | 44.23 | % | ||||||||||
| Allowance for loan losses to total loans | 1.75 | % | 1.76 | % | 1.13 | % | 1.12 | % | 1.09 | % | ||||||||||
DEARBORN BANCORP, INC. AND SUBSIDIARY
NON-GAAP OPERATING EARNINGS INFORMATION
NON-GAAP OPERATING EARNINGS INFORMATION
| Quarter Ended | ||||||||||||||||||||
| (Dollars, in thousands except share and per share data) | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| Income (loss) from continuing operations | $ | 1,420 | $ | (4,614 | ) | $ | 676 | $ | 398 | $ | (855 | ) | ||||||||
| Add: Non-recurring merger expenses | 13 | 49 | 55 | 121 | 99 | |||||||||||||||
| Tax effect | (4 | ) | (17 | ) | (19 | ) | (41 | ) | (34 | ) | ||||||||||
| After-tax non operating items | 9 | 32 | 36 | 80 | 65 | |||||||||||||||
| Core operating income (loss) | $ | 1,429 | $ | (4,582 | ) | $ | 712 | $ | 478 | $ | (790 | ) | ||||||||
| Quarter Ended | ||||||||||||||||||||
| 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | ||||||||||||||||
| Core operating income (loss) | $ | 1,429 | $ | (4,582 | ) | $ | 712 | $ | 478 | $ | (790 | ) | ||||||||
| Add: Amortization of intangible assets | 323 | 322 | 323 | 416 | 240 | |||||||||||||||
| Tax effect | (110 | ) | (109 | ) | (110 | ) | (141 | ) | (82 | ) | ||||||||||
| After-tax non operating items | 213 | 213 | 213 | 275 | 158 | |||||||||||||||
| Cash operating income (loss) | $ | 1,642 | $ | (4,369 | ) | $ | 925 | $ | 751 | $ | (632 | ) | ||||||||
| Quarter Ended | ||||||||
| (Dollars, in thousands except share and per share data) | 9/30/2008 | 9/30/2007 | ||||||
| Income (loss) from continuing operations | $ | 1,420 | $ | (855 | ) | |||
| After-tax non-recurring merger expenses | 9 | 65 | ||||||
| Core operating income (loss) | 1,429 | (790 | ) | |||||
| After tax amortization of intangible assets | 213 | 159 | ||||||
| Cash operating income (loss) | $ | 1,642 | $ | (631 | ) | |||
Basic EPS
| Quarter Ended | ||||||||
| 9/30/2008 | 9/30/2007 | |||||||
| Income (loss) from continuing operations | $ | 0.18 | $ | (0.10 | ) | |||
| After-tax non-recurring merger expenses | $ | 0.00 | $ | 0.01 | ||||
| Core operating income (loss) | $ | 0.18 | $ | (0.09 | ) | |||
| After tax amortization of intangible assets | $ | 0.03 | $ | 0.02 | ||||
| Cash operating income (loss) | $ | 0.20 | $ | (0.07 | ) | |||
Diluted EPS
| Quarter Ended | ||||||||
| 9/30/2008 | 9/30/2007 | |||||||
| Income (loss) from continuing operations | $ | 0.18 | $ | (0.10 | ) | |||
| After-tax non-recurring merger expenses | $ | 0.00 | $ | 0.01 | ||||
| Core operating income (loss) | $ | 0.18 | $ | (0.09 | ) | |||
| After tax amortization of intangible assets | $ | 0.03 | $ | 0.02 | ||||
| Cash operating income (loss) | $ | 0.20 | $ | (0.07 | ) | |||
| Weighted average shares outstanding — basic | 8,044,180 | 8,510,207 | ||||||
| Weighted average shares outstanding — diluted | 8,082,263 | 8,510,207 | ||||||
DEARBORN BANCORP, INC. AND SUBSIDIARY
TANGIBLE ASSETS & EQUITY
TANGIBLE ASSETS & EQUITY
| Quarter Ended | ||||||||
| (Dollars, in thousands) | 9/30/2008 | 9/30/2007 | ||||||
| Average GAAP equity | $ | 133,935 | $ | 143,100 | ||||
| Goodwill | 34,028 | 33,403 | ||||||
| Other intangible assets | 10,331 | 12,328 | ||||||
| Deferred taxes | (785 | ) | (873 | ) | ||||
| 43,574 | 44,858 | |||||||
| Average tangible equity | $ | 90,361 | $ | 98,242 | ||||
| Quarter Ended | ||||||||
| 9/30/2008 | 9/30/2007 | |||||||
| Average GAAP assets | $ | 1,042,152 | $ | 1,052,185 | ||||
| Goodwill | 34,028 | 33,403 | ||||||
| Other intangible assets | 10,331 | 12,328 | ||||||
| Deferred taxes | (785 | ) | (873 | ) | ||||
| 43,574 | 44,858 | |||||||
| Average tangible assets | $ | 998,578 | $ | 1,007,327 | ||||
DEARBORN BANCORP, INC. AND SUBSIDIARY
DEPOSIT INFORMAITON
DEPOSIT INFORMAITON
| (In thousands) | September 30, | |||||||
Category | 2008 | 2007 | ||||||
| Non-interest bearing | ||||||||
| Demand | $ | 83,555 | $ | 92,770 | ||||
| Interest bearing | ||||||||
| Checking | $ | 91,122 | $ | 65,751 | ||||
| Money market | 81,274 | 110,044 | ||||||
| Savings | 60,893 | 32,629 | ||||||
| Time, under $100,000 | 194,530 | 185,335 | ||||||
| Time, $100,000 and over | 347,377 | 375,005 | ||||||
| 775,196 | 768,764 | |||||||
| $ | 858,751 | $ | 861,534 | |||||
DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
| Quarter Ended | ||||||||||||||||||||
| (Dollars, in thousands) | 9/30/08 | 6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||
| Cash and due from banks | $ | 15,719 | $ | 12,779 | $ | 12,736 | $ | 7,869 | $ | 14,929 | ||||||||||
| Federal funds sold | 14,281 | 1,301 | 1,958 | 1,495 | 7,031 | |||||||||||||||
| Interest bearing deposits with banks | 33,146 | 147 | 105 | 118 | 100 | |||||||||||||||
| Total cash and cash equivalents | 63,146 | 14,227 | 14,799 | 9,482 | 22,060 | |||||||||||||||
| Mortgage loans held for sale | 281 | 755 | 282 | 1,316 | 384 | |||||||||||||||
| Securities, available for sale | 2,520 | 9,381 | 8,921 | 8,902 | 10,640 | |||||||||||||||
| Federal Home Loan Bank stock | 3,614 | 3,540 | 3,540 | 2,072 | 1,927 | |||||||||||||||
| Loans | ||||||||||||||||||||
| Loans | 939,109 | 943,635 | 947,927 | 952,084 | 945,622 | |||||||||||||||
| Allowance for loan loss | (16,429 | ) | (16,638 | ) | (10,749 | ) | (10,617 | ) | (10,309 | ) | ||||||||||
| Net loans | 922,680 | 926,997 | 937,178 | 941,467 | 935,313 | |||||||||||||||
| Bank premises and equipment, net | 21,491 | 21,630 | 22,546 | 22,782 | 23,043 | |||||||||||||||
| Real estate owned | 8,343 | 5,411 | 6,183 | 6,319 | 3,338 | |||||||||||||||
| Goodwill | 34,028 | 34,028 | 34,047 | 34,028 | 34,029 | |||||||||||||||
| Other intangible assets | 10,165 | 10,487 | 10,810 | 11,133 | 11,550 | |||||||||||||||
| Accrued interest receivable | 3,601 | 3,757 | 4,134 | 3,816 | 4,258 | |||||||||||||||
| Other assets | 8,110 | 7,880 | 5,189 | 5,664 | 5,416 | |||||||||||||||
| Total assets | $ | 1,077,979 | $ | 1,038,093 | $ | 1,047,629 | $ | 1,046,981 | $ | 1,051,958 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Non-interest bearing deposits | $ | 83,555 | $ | 82,353 | $ | 80,711 | $ | 83,594 | $ | 92,770 | ||||||||||
| Interest bearing deposits | 775,196 | 741,124 | 688,492 | 739,033 | 768,764 | |||||||||||||||
| Total deposits | 858,751 | 823,477 | 769,203 | 822,627 | 861,534 | |||||||||||||||
| Other liabilities | ||||||||||||||||||||
| Federal funds purchased | 0 | 3,600 | 56,480 | 30,100 | 0 | |||||||||||||||
| Securities sold under agreements to repurchase | 222 | 171 | 275 | 480 | 491 | |||||||||||||||
| Federal Home Loan Bank advances | 72,283 | 65,401 | 70,795 | 41,370 | 36,429 | |||||||||||||||
| Other liabilities | 1,735 | 1,026 | 1,017 | 1,688 | 619 | |||||||||||||||
| Accrued interest payable | 1,148 | 2,047 | 2,548 | 3,168 | 3,361 | |||||||||||||||
| Subordinated debentures | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||
| Total liabilities | 944,139 | 905,722 | 910,318 | 909,433 | 912,434 | |||||||||||||||
| Total stockholders’ equity | 133,840 | 132,371 | 137,311 | 137,548 | 139,524 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,077,979 | $ | 1,038,093 | $ | 1,047,629 | $ | 1,046,981 | $ | 1,051,958 | ||||||||||
DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT
| Quarter ended | ||||||||||||||||||||
| (Dollars, in thousands) | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Interest on loans, including fees | $ | 14,742 | $ | 14,994 | $ | 16,174 | $ | 16,998 | $ | 17,565 | ||||||||||
| Interest on other earning assets | 121 | 131 | 125 | 217 | 286 | |||||||||||||||
| Total interest income | 14,863 | 15,125 | 16,299 | 17,215 | 17,851 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest on deposits | 5,764 | 5,874 | 7,028 | 8,616 | 8,663 | |||||||||||||||
| Interest on other liabilities | 849 | 967 | 1,218 | 725 | 687 | |||||||||||||||
| Total interest expense | 6,613 | 6,841 | 8,246 | 9,341 | 9,350 | |||||||||||||||
| Net interest income | 8,250 | 8,284 | 8,053 | 7,874 | 8,501 | |||||||||||||||
| Provision for loan loss | 90 | 8,746 | 886 | 855 | 4,060 | |||||||||||||||
| Net interest income after provision for loan loss | 8,160 | (462 | ) | 7,167 | 7,019 | 4,441 | ||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Deposit service charges | 426 | 390 | 419 | 371 | 319 | |||||||||||||||
| Gain on the sale of loans | 61 | 51 | 53 | 28 | 34 | |||||||||||||||
| Loss on the sale or write-down of real estate | (225 | ) | (569 | ) | (435 | ) | (131 | ) | (496 | ) | ||||||||||
| Other | 57 | 73 | 74 | 54 | 39 | |||||||||||||||
| Total non-interest income | 319 | (55 | ) | 111 | 322 | (104 | ) | |||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Salaries and employee benefits | 3,413 | 3,284 | 3,209 | 3,318 | 3,137 | |||||||||||||||
| Occupancy and equipment expense | 908 | 950 | 913 | 915 | 903 | |||||||||||||||
| Other expense | 1,991 | 2,194 | 2,116 | 2,506 | 1,451 | |||||||||||||||
| Total non-interest expense | 6,312 | 6,428 | 6,238 | 6,739 | 5,491 | |||||||||||||||
| Income (loss) before income tax provision | 2,167 | (6,945 | ) | 1,040 | 602 | (1,154 | ) | |||||||||||||
| Income tax provision (benefit) | 747 | (2,331 | ) | 364 | 204 | (299 | ) | |||||||||||||
| Net income (loss) | $ | 1,420 | $ | (4,614 | ) | $ | 676 | $ | 398 | $ | (855 | ) | ||||||||
DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED FINANCIAL DATA
CONSOLIDATED FINANCIAL DATA
| Quarter ended | ||||||||||||||||||||
| (Dollars in thousands, except share and per share data) | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||||
| EARNINGS SUMMARY | ||||||||||||||||||||
| Net interest income | $ | 8,250 | $ | 8,284 | $ | 8,053 | $ | 7,874 | $ | 8,501 | ||||||||||
| Provision for loan loss | $ | 90 | $ | 8,746 | $ | 886 | $ | 855 | $ | 4,060 | ||||||||||
| Total non-interest income | $ | 319 | $ | (55 | ) | $ | 111 | $ | 322 | $ | (104 | ) | ||||||||
| Total non-interest expense | $ | 6,312 | $ | 6,428 | $ | 6,238 | $ | 6,739 | $ | 5,491 | ||||||||||
| Income taxes | $ | 747 | $ | (2,331 | ) | $ | 364 | $ | 204 | $ | (299 | ) | ||||||||
| Net income (loss) | $ | 1,420 | $ | (4,614 | ) | $ | 676 | $ | 398 | $ | (855 | ) | ||||||||
| Basic earnings per share | $ | 0.18 | $ | (0.57 | ) | $ | 0.08 | $ | 0.05 | $ | (0.10 | ) | ||||||||
| Diluted earnings per share | $ | 0.18 | $ | (0.57 | ) | $ | 0.08 | $ | 0.05 | $ | (0.10 | ) | ||||||||
| MARKET DATA | ||||||||||||||||||||
| Book value per share | $ | 16.53 | $ | 16.43 | $ | 16.94 | $ | 16.70 | $ | 16.47 | ||||||||||
| Tangible book value per share | $ | 11.07 | $ | 11.04 | $ | 11.56 | $ | 11.58 | $ | 11.60 | ||||||||||
| Market value per share | $ | 4.99 | $ | 4.86 | $ | 7.60 | $ | 7.73 | $ | 12.91 | ||||||||||
| Average basic common shares | 8,044,180 | 8,051,037 | 8,139,721 | 8,357,909 | 8,510,207 | |||||||||||||||
| Average diluted common shares | 8,082,263 | 8,051,037 | 8,198,676 | 8,504,931 | 8,510,207 | |||||||||||||||
| Period end common shares | 8,098,557 | 8,055,698 | 8,106,413 | 8,237,413 | 8,471,913 | |||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 0.54 | % | -1.77 | % | 0.26 | % | 0.15 | % | -0.32 | % | ||||||||||
| Return on average equity | 4.22 | % | -13.45 | % | 1.97 | % | 1.13 | % | -2.37 | % | ||||||||||
| Net interest margin (FTE) | 3.41 | % | 3.45 | % | 3.36 | % | 3.22 | % | 3.48 | % | ||||||||||
| Efficiency ratio | 71.78 | % | 73.06 | % | 72.54 | % | 80.93 | % | 61.75 | % | ||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Net charge-offs (YTD) | $ | 3,910 | $ | 3,611 | $ | 754 | $ | 4,683 | $ | 4,135 | ||||||||||
| Nonperforming loans | $ | 69,811 | $ | 56,659 | $ | 35,373 | $ | 40,078 | $ | 19,970 | ||||||||||
| Other real estate | $ | 8,343 | $ | 5,411 | $ | 6,183 | $ | 6,319 | $ | 3,338 | ||||||||||
| Nonperforming loans to total loans | 7.43 | % | 6.00 | % | 3.73 | % | 4.21 | % | 2.11 | % | ||||||||||
| Nonperforming assets to total assets | 7.25 | % | 5.98 | % | 3.97 | % | 4.43 | % | 2.22 | % | ||||||||||
| Allowance for loan loss to total loans | 1.75 | % | 1.76 | % | 1.13 | % | 1.12 | % | 1.09 | % | ||||||||||
| CAPITAL & LIQUIDITY | ||||||||||||||||||||
| Average equity to average assets | 12.85 | % | 13.16 | % | 13.22 | % | 13.27 | % | 13.60 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 10.23 | % | 10.21 | % | 10.49 | % | 10.42 | % | 10.48 | % | ||||||||||
| Total capital to risk weighted assets | 11.48 | % | 11.46 | % | 11.59 | % | 11.51 | % | 11.52 | % | ||||||||||
| Loan to deposit ratio | 109.36 | % | 114.59 | % | 123.23 | % | 115.74 | % | 109.76 | % | ||||||||||
| Loan to funding ratio | 99.77 | % | 104.54 | % | 104.54 | % | 105.25 | % | 104.09 | % | ||||||||||
| END OF PERIOD BALANCES | ||||||||||||||||||||
| Total portfolio loans | $ | 939,109 | $ | 943,635 | $ | 947,927 | $ | 952,084 | $ | 945,622 | ||||||||||
| Earning assets | $ | 992,951 | $ | 958,759 | $ | 962,733 | $ | 965,987 | $ | 965,704 | ||||||||||
| Total assets | $ | 1,077,979 | $ | 1,038,093 | $ | 1,047,629 | $ | 1,046,981 | $ | 1,051,958 | ||||||||||
| Deposits | $ | 858,751 | $ | 823,477 | $ | 769,203 | $ | 822,627 | $ | 861,534 | ||||||||||
| Total shareholders’equity | $ | 133,840 | $ | 132,371 | $ | 137,311 | $ | 137,548 | $ | 139,524 | ||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||
| Total portfolio loans | $ | 944,262 | $ | 947,892 | $ | 946,697 | $ | 950,169 | $ | 946,012 | ||||||||||
| Earning assets | $ | 961,935 | $ | 966,437 | $ | 961,549 | $ | 970,897 | $ | 969,940 | ||||||||||
| Total assets | $ | 1,042,152 | $ | 1,048,423 | $ | 1,044,159 | $ | 1,053,498 | $ | 1,052,185 | ||||||||||
| Deposits | $ | 822,424 | $ | 807,347 | $ | 789,076 | $ | 855,931 | $ | 854,959 | ||||||||||
| Total shareholders’equity | $ | 133,949 | $ | 138,002 | $ | 137,990 | $ | 139,845 | $ | 143,104 | ||||||||||
Dearborn Bancorp, Inc.
Loan Information at September 30, 2008
Loan Information at September 30, 2008
| Loan Detail | Other Related Data | |||||||||||||||||||||||||||||||||||
| Accruing Loans | Allowance | Year to Date | Other Real | |||||||||||||||||||||||||||||||||
| (In thousands) | 9/30/08 | Current | TDR | 30 to 89 past due | 90+ days past due | Non-Accrual | For Loan Losses | Net Charge-Offs | Estate Owned | |||||||||||||||||||||||||||
| Consumer Loans | $ | 32,472 | $ | 30,993 | $ | 0 | $ | 333 | $ | 128 | $ | 1,018 | $ | 367 | $ | 160 | $ | 0 | ||||||||||||||||||
| Commercial Loans | 162,311 | 152,665 | 1,934 | 1,972 | 93 | 5,647 | 1,076 | 3,094 | 125 | |||||||||||||||||||||||||||
| Land Development — Residential | 56,878 | 42,352 | 4,381 | 820 | 0 | 9,325 | 4,072 | 229 | 4,425 | |||||||||||||||||||||||||||
| Land Development — Non Residential | 17,894 | 12,295 | 671 | 860 | 0 | 4,068 | 1,791 | 0 | 343 | |||||||||||||||||||||||||||
| Commercial Construction Loans — Residential | 20,573 | 12,909 | 1,168 | 0 | 0 | 6,496 | 3,069 | 0 | 729 | |||||||||||||||||||||||||||
| Commercial Construction Loans — Non Residential | 30,145 | 23,901 | 2,558 | 492 | 0 | 3,194 | 843 | 58 | 0 | |||||||||||||||||||||||||||
| Commercial Mortgage Loans | 565,365 | 533,592 | 4,616 | 3,494 | 2,810 | 20,853 | 4,672 | 185 | 2,049 | |||||||||||||||||||||||||||
| Residential Mortgages Loans | 53,471 | 52,172 | 0 | 448 | 110 | 741 | 539 | 184 | 672 | |||||||||||||||||||||||||||
| Totals | $ | 939,109 | $ | 860,879 | $ | 15,328 | $ | 8,419 | $ | 3,141 | $ | 51,342 | 16,429 | $ | 3,910 | $ | 8,343 | |||||||||||||||||||
| Unallocated | 0 | |||||||||||||||||||||||||||||||||||
| Total | $ | 16,429 | ||||||||||||||||||||||||||||||||||
Loan Information at June 30, 2008
| Loan Detail | Other Related Data | |||||||||||||||||||||||||||||||||||
| Accruing Loans | Allowance | Year to Date | Other Real | |||||||||||||||||||||||||||||||||
| (In thousands) | 6/30/08 | Current | TDR | 30 to 89 past due | 90+ days past due | Non-Accrual | For Loan Losses | Net Charge-Offs | Estate Owned | |||||||||||||||||||||||||||
| Consumer Loans | $ | 33,206 | $ | 31,822 | $ | 0 | $ | 1,007 | $ | 216 | $ | 161 | $ | 339 | $ | 165 | $ | 70 | ||||||||||||||||||
| Commercial Loans | 169,956 | 161,781 | 1,757 | 3,583 | 639 | 2,196 | 890 | 3,096 | 280 | |||||||||||||||||||||||||||
| Land Development — Residential | 60,170 | 47,449 | 2,606 | 0 | 693 | 9,422 | 5,021 | 0 | 1,133 | |||||||||||||||||||||||||||
| Land Development — Non Residential | 21,000 | 16,261 | 0 | 789 | 0 | 3,950 | 1,923 | 0 | 343 | |||||||||||||||||||||||||||
| Commercial Construction Loans — Residential | 20,605 | 13,725 | 1,080 | 96 | 606 | 5,098 | 2,780 | 0 | 1,227 | |||||||||||||||||||||||||||
| Commercial Construction Loans — Non Residential | 35,087 | 28,788 | 3,086 | 0 | 0 | 3,213 | 1,118 | 58 | 0 | |||||||||||||||||||||||||||
| Commercial Mortgage Loans | 549,145 | 523,047 | 4,616 | 5,748 | 5,021 | 10,713 | 4,049 | 186 | 2,180 | |||||||||||||||||||||||||||
| Residential Mortgages Loans | 54,466 | 51,408 | 0 | 1,472 | 144 | 1,442 | 518 | 106 | 178 | |||||||||||||||||||||||||||
| Totals | $ | 943,635 | $ | 874,281 | $ | 13,145 | $ | 12,695 | $ | 7,319 | $ | 36,195 | 16,638 | $ | 3,611 | $ | 5,411 | |||||||||||||||||||
| Unallocated | 0 | |||||||||||||||||||||||||||||||||||
| Total | $ | 16,638 | ||||||||||||||||||||||||||||||||||
Loan Information at March 31, 2008
| Loan Detail | Other Related Data | |||||||||||||||||||||||||||||||||||
| Accruing Loans | Allowance | Year to Date | Other Real | |||||||||||||||||||||||||||||||||
| (In thousands) | 3/31/08 | Current | TDR | 30 to 89 past due | 90+ days past due | Non-Accrual | For Loan Losses | Net Charge-Offs | Estate Owned | |||||||||||||||||||||||||||
| Consumer Loans | $ | 34,494 | $ | 33,484 | $ | 0 | $ | 395 | $ | 453 | $ | 162 | $ | 410 | $ | 93 | $ | 70 | ||||||||||||||||||
| Commercial Loans | 169,659 | 163,648 | 917 | 2,834 | 711 | 1,549 | 1,479 | 630 | 530 | |||||||||||||||||||||||||||
| Land Development — Residential | 61,638 | 48,316 | 2,576 | 2,490 | 0 | 8,256 | 2,040 | 0 | 422 | |||||||||||||||||||||||||||
| Land Development — Non Residential | 16,372 | 12,422 | 0 | 0 | 3,950 | 0 | 229 | 0 | 343 | |||||||||||||||||||||||||||
| Commercial Construction Loans — Residential | 26,004 | 20,701 | 1,535 | 988 | 130 | 2,650 | 562 | 6 | 2,334 | |||||||||||||||||||||||||||
| Commercial Construction Loans — Non Residential | 38,885 | 32,420 | 3,259 | 3,206 | 0 | 0 | 546 | 0 | 0 | |||||||||||||||||||||||||||
| Commercial Mortgage Loans | 543,778 | 527,502 | 424 | 8,446 | 4,014 | 3,392 | 4,804 | (1 | ) | 2,484 | ||||||||||||||||||||||||||
| Residential Mortgages Loans | 57,097 | 54,731 | 0 | 969 | 0 | 1,397 | 630 | 26 | 0 | |||||||||||||||||||||||||||
| Totals | $ | 947,927 | $ | 893,224 | $ | 8,711 | $ | 19,328 | $ | 9,258 | $ | 17,406 | 10,700 | $ | 754 | $ | 6,183 | |||||||||||||||||||
| Unallocated | 49 | |||||||||||||||||||||||||||||||||||
| Total | $ | 10,749 | ||||||||||||||||||||||||||||||||||
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 | TDR | 30 to 89 past due | 90+ days past due | Non-Accrual | For Loan Losses | Net Charge-Offs | Estate Owned | |||||||||||||||||||||||||||
| Consumer Loans | $ | 35,833 | $ | 34,349 | $ | 0 | $ | 1,023 | $ | 31 | $ | 430 | $ | 451 | $ | 201 | $ | 0 | ||||||||||||||||||
| Commercial Loans | 174,958 | $ | 170,026 | 944 | 2,865 | 62 | 1,061 | 1,400 | 690 | 1,724 | ||||||||||||||||||||||||||
| Land Development — Residential | 63,639 | $ | 53,753 | 1,260 | 0 | 0 | 8,626 | 2,209 | 1,665 | 219 | ||||||||||||||||||||||||||
| Land Development — Non Residential | 10,156 | $ | 10,156 | 0 | 0 | 0 | 0 | 117 | 0 | 343 | ||||||||||||||||||||||||||
| Commercial Construction Loans — Residential | 33,768 | $ | 29,586 | 0 | 0 | 0 | 4,182 | 712 | 1,285 | 759 | ||||||||||||||||||||||||||
| Commercial Construction Loans — Non Residential | 40,187 | $ | 40,187 | 0 | 0 | 0 | 0 | 551 | 0 | 0 | ||||||||||||||||||||||||||
| Commercial Mortgage Loans | 539,306 | $ | 516,404 | 18,873 | 700 | 0 | 3,329 | 4,555 | 522 | 3,274 | ||||||||||||||||||||||||||
| Residential Mortgages Loans | 54,237 | $ | 52,475 | 0 | 482 | 791 | 489 | 488 | 320 | 0 | ||||||||||||||||||||||||||
| Totals | $ | 952,084 | $ | 906,936 | $ | 21,077 | $ | 5,070 | $ | 884 | $ | 18,117 | 10,483 | $ | 4,683 | $ | 6,319 | |||||||||||||||||||
| Unallocated | 134 | |||||||||||||||||||||||||||||||||||
| Total | $ | 10,617 | ||||||||||||||||||||||||||||||||||