Dearborn Bancorp (DEAR) 8-K Dearborn Bancorp Reports 2008 Results

EXHIBIT 99

DEARBORN BANCORP REPORTS
2008 RESULTS

     DEARBORN, Michigan, January 20, 2009 ... Dearborn Bancorp, Inc. (Nasdaq: DEAR), the Holding Company for Fidelity Bank, has reported financial results for fourth quarter and full year ended December 31, 2008. These results included non-cash impairment charges related to goodwill and intangible assets related to prior acquisitions. These non-cash charges, which were announced earlier, were the consequence of deterioration in general conditions in the Southeast Michigan and U.S. economy.

     The Company’s operating net loss for the full year, which excludes the non-cash impairment charges, was $5,815,000 or ($0.73) per fully diluted common share. For 2007, the Company’s net income was $3,166,000 or $0.36 per diluted share. The operating loss for the fourth quarter, which also excludes the non-cash impairment charges, was $3,348,000 or ($0.43) per diluted share, compared to net income of $398,000 or $0.05 per share in the same period of 2007. Including non-cash charges for impairment of goodwill of $34,028,000 and for impairment of intangible assets of $5,573,000, the net loss for the full year was $31,925,000 or ($3.99) per diluted share and $29,407,000 or ($3.77) per diluted share for the fourth quarter.

     During the twelve months of 2008, the Company’s total assets increased 7.2 percent to $1,121,918,000. Total deposits went up 14.1 percent to $938,395,000 and total loans declined 2.0 percent to $933,269,000. At year-end, stockholders’ equity was $103,311,000, which continues to place the Company and Bank in the “well-capitalized” category according to regulatory guidelines.

     Michael J. Ross, President and Chief Executive Officer of both the Company and the Bank, reported his organization’s results and commented, “The economic situation here in our corner of Michigan and in the nation as a whole is not good and our operations reflect that situation. As we have explained earlier, the goodwill and intangible assets we booked following earlier acquisitions in better times have lost a great deal of value because of changing economic circumstances. Moreover, the deteriorating economy has impacted our loan portfolio and the assets that secured those loans.”

     Ross went on, “We provided $14.6 million for possible loan losses during 2008, charged-off $10.8 million in loans, realized a loss of $745,000 on the sale of repossessed real estate, and wrote down the value of real estate still on our books by another $2.3 million. In addition, we had expenses of more than $2 million associated with defaulted loans. When we foreclose on real estate or accept a deed in lieu of foreclosure, we become liable for expenses such as taxes, insurance, and legal fees.”

     Ross concluded his report by saying, “Our day to day operations provide sufficient cash flow to allow us to absorb the losses from the real estate ‘bust’ in Southeast Michigan while maintaining a ‘well capitalized’ rating with our regulators. We have an excellent team of special asset officers working out our problem and defaulted loans and we are shedding our repossessed real estate or converting them to income producing properties as fast as we can. We are committed to working through these troubled loans and returning our Company to historical profitability.”

     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)	12/31/08			12/31/07
ASSETS
Cash and cash equivalents
Cash and due from banks	$	11,671		$	7,869
Federal funds sold		4,455			1,495
Interest bearing deposits with banks		36,876			118
Total cash and cash equivalents		53,002			9,482
Mortgage loans held for sale		1,834			1,316
Investment securities, available for sale		84,148			8,902
Federal Home Loan Bank stock		3,614			2,072
Loans
Loans		933,269			952,084
Allowance for loan loss		(14,452	)		(10,617	)
Net loans		918,817			941,467
Premises and equipment, net		21,272			22,782
Real estate owned		9,657			6,319
Goodwill		—			34,028
Other intangible assets		4,592			11,133
Accrued interest receivable		3,499			3,816
Other assets		21,483			5,664
Total assets	$	1,121,918		$	1,046,981
LIABILITIES
Deposits
Non-interest bearing deposits	$	81,317		$	83,594
Interest bearing deposits		857,078			739,033
Total deposits		938,395			822,627
Other liabilities
Federal funds purchased		—			30,100
Securities sold under agreements to repurchase		2,461			480
Federal Home Loan Bank advances		65,019			41,370
Accrued interest payable		1,695			3,168
Other liabilities		1,037			1,688
Subordinated debentures		10,000			10,000
Total liabilities		1,018,607			909,433
STOCKHOLDERS’ EQUITY
Common stock - 20,000,000 shares authorized, 7,696,204 and 8,237,413 shares outstanding in 2008 and 2007, respectively		131,784			134,278
Retained earnings		(28,675	)		3,250
Accumulated other comprehensive loss		202			20
Total stockholders’ equity		103,311			137,548
Total liabilities and stockholders’ equity	$	1,121,918		$	1,046,981

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

	Three Months Ended						Twelve Months Ended
(In thousands, except share and per share data)	12/31/08			12/31/07			12/31/08			12/31/07
Interest income
Interest on loans, including fees	$	14,623		$	16,998		$	60,533		$	68,947
Interest on securities, available for sale		149			102			464			603
Interest on federal funds		27			72			86			433
Interest on deposits with banks		40			43			43			127
Total interest income		14,839			17,215			61,126			70,110
Interest expense
Interest on deposits		6,440			8,616			25,106			33,303
Interest on other borrowings		855			725			3,889			3,188
Total interest expense		7,295			9,341			28,995			36,491
Net interest income		7,544			7,874			32,131			33,619
Provision for loan losses		4,884			855			14,606			5,821
Net interest income after provision for loan losses		2,660			7,019			17,525			27,798
Non-interest income
Service charges on deposit accounts		392			328			1,538			1,267
Fees for other services to customers		39			43			128			141
Gain on the sale of loans		0			28			165			163
Write-down of real estate		(1,783	)		(105	)		(2,292	)		(701	)
Loss on the sale of real estate		(25	)		(26	)		(745	)		(26	)
Gain on the sale of securities		8			—			17			—
Other income		64			54			259			176
Total non-interest income		(1,305	)		322			(930	)		1,020
Non-interest expenses
Salaries and employee benefits		3,236			3,318			13,142			13,109
Occupancy and equipment expense		981			915			3,752			3,663
Intangible expense		0			416			968			1,328
Impairment of goodwill		34,028			—			34,028			—
Impairment of other intangible assets		5,573			—			5,573			—
FDIC assessment		174			349			696			424
Advertising and marketing		158			129			550			468
Stationery and supplies		185			137			592			617
Professional services		337			255			1,063			1,042
Data processing		246			274			848			716
Defaulted loan expense		649			462			2,078			685
Other operating expenses		462			484			1,717			1,744
Total non-interest expenses		46,029			6,739			65,007			23,796
Income before income tax provision		(44,674	)		602			(48,412	)		5,022
Income tax provision		(15,267	)		204			(16,487	)		1,856
Net income (loss)	$	(29,407	)	$	398		$	(31,925	)	$	3,166
Per share data:
Net income — basic	$	(3.77	)	$	0.05		$	(3.99	)	$	0.37
Net income — diluted	$	(3.77	)	$	0.05		$	(3.99	)	$	0.36
Weighted average number of shares outstanding — basic		7,796,354			8,357,909			8,007,345			8,602,704
Weighted average number of shares outstanding — diluted		7,796,354			8,504,931			8,007,345			8,823,699

DEARBORN BANCORP, INC. AND SUBSIDIARY
ASSET QUALITY DATA

(Dollars, in thousands)	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007
Troubled debt restructuring	$	17,765	$	15,328	$	13,145	$	8,710	$	21,077
Loans over 90 days past due and still accruing		450		3,141		7,319		9,257		884
Non-accrual loans		51,708		51,342		36,195		17,406		18,117
Total non-performing loans		69,923		69,811		56,659		35,373		40,078
Real estate owned and other repossessed assets		9,657		8,343		5,411		6,183		6,319
Total non-performing assets	$	79,580	$	78,154	$	62,070	$	41,556	$	46,397
Net charge-offs (Year to date)	$	10,771	$	3,910	$	3,611	$	754	$	4,683
Allowance for loan losses		14,452		16,429		16,638		10,749		10,617

ASSET QUALITY RATIOS

	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Non-accrual loans to total loans		5.54	%		5.47	%		3.83	%		1.84	%		1.90	%
Non-performing loans to total loans		7.49	%		7.43	%		6.00	%		3.73	%		4.21	%
Non-performing assets to total assets		7.09	%		7.25	%		5.98	%		3.97	%		4.43	%
Loans over 90 days past due and still accruing to total loans		0.05	%		0.33	%		0.78	%		0.98	%		0.09	%
Net charge-offs to average loans		1.14	%		0.41	%		0.38	%		0.08	%		0.50	%
Allowance for loan losses to non-performing loans		20.67	%		23.53	%		29.37	%		30.39	%		26.49	%
Allowance for loan losses to non-performing assets		18.16	%		21.02	%		26.81	%		25.87	%		22.88	%
Allowance for loan losses to total loans		1.55	%		1.75	%		1.76	%		1.13	%		1.12	%

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

	Quarter Ended
(Dollars, in thousands except share and per share data)	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Income (loss) from continuing operations	$	(29,407	)	$	1,420		$	(4,614	)	$	676		$	398
Add: Non-recurring merger expenses		28			13			49			55			121
Tax effect		(10	)		(4	)		(17	)		(19	)		(41	)
After-tax non operating items		18			9			32			36			80
Core operating income (loss)	$	(29,389	)	$	1,429		$	(4,582	)	$	712		$	478

	Quarter Ended
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Core operating income (loss)	$	(29,389	)	$	1,429		$	(4,582	)	$	712		$	478
Add: Amortization of intangible assets		0			323			322			323			416
Add: Impairment of goodwill and intangible assets		39,601			0			0			0			0
Tax effect		(13,464	)		(110	)		(109	)		(110	)		(141	)
After-tax non operating items		26,137			213			213			213			275
Cash operating income (loss)	$	(3,252	)	$	1,642		$	(4,369	)	$	925		$	751

	Quarter Ended
(Dollars, in thousands except share and per share data)	12/31/2008			12/31/2007
Income (loss) from continuing operations	$	(29,407	)	$	398
After-tax non-recurring merger expenses		18			80
Core operating income (loss)		(29,389	)		478
After tax amortization of intangible assets		26,137			159
Cash operating income (loss)	$	(3,252	)	$	637
Basic EPS

	Quarter Ended
	12/31/2008			12/31/2007
Income (loss) from continuing operations	$	(3.77	)	$	0.05
After-tax non-recurring merger expenses	$	0.00		$	0.01
Core operating income (loss)	$	(3.77	)	$	0.06
After tax amortization of intangible assets	$	3.35		$	0.02
Cash operating income (loss)	$	(0.42	)	$	0.08
Diluted EPS

	Quarter Ended
	12/31/2008			12/31/2007
Income (loss) from continuing operations	$	(3.77	)	$	0.05
After-tax non-recurring merger expenses	$	0.00		$	0.01
Core operating income (loss)	$	(3.77	)	$	0.06
After tax amortization of intangible assets	$	3.35		$	0.02
Cash operating income (loss)	$	(0.42	)	$	0.07
Weighted average shares outstanding — basic		7,796,354			8,357,909
Weighted average shares outstanding — diluted		7,796,354			8,504,931

DEARBORN BANCORP, INC. AND SUBSIDIARY
TANGIBLE ASSETS & EQUITY (1)

	Quarter Ended
(Dollars, in thousands)	12/31/2008		12/31/2007
Average GAAP equity	$	133,081	$	139,845
Goodwill		33,288		34,028
Other intangible assets		9,929		11,438
Deferred taxes		5,872		(988	)
		49,089		44,478
Average tangible equity	$	83,992	$	95,367

	Quarter Ended
	12/31/2008		12/31/2007
Average GAAP assets	$	1,091,120	$	1,053,498
Goodwill		33,288		34,028
Other intangible assets		9,929		11,438
Deferred taxes		5,872		(988	)
		49,089		44,478
Average tangible assets	$	1,042,031	$	1,009,020

(1) The preceding table is based upon the average balance during the fourth quarter of 2008. On December 30, 2008, the Corporation recorded impairment of goodwill of $34,028,000 and impairment of other intangible assets of $5,573,000. The Corporation also recorded a tax deferred asset of $13,464,000 related to the impairment of goodwill and other intangible assets.

DEARBORN BANCORP, INC. AND SUBSIDIARY
DEPOSIT INFORMATION

(In thousands)	December 31,
Category	2008		2007
Non-interest bearing
Demand	$	81,317	$	83,594
Interest bearing
Checking	$	103,774	$	65,195
Money market		163,611		106,145
Savings		54,164		29,815
Time, under $100,000		211,109		193,852
Time, $100,000 and over		324,420		344,026
		857,078		739,033
	$	938,395	$	822,627

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

	Quarter Ended
(Dollars, in thousands)	12/31/08			9/30/08			6/30/08			3/31/08			12/31/07
ASSETS
Cash and cash equivalents
Cash and due from banks	$	11,671		$	15,719		$	12,779		$	12,736		$	7,869
Federal funds sold		4,455			14,281			1,301			1,958			1,495
Interest bearing deposits with banks		36,876			33,146			147			105			118
Total cash and cash equivalents		53,002			63,146			14,227			14,799			9,482
Mortgage loans held for sale		1,834			281			755			282			1,316
Securities, available for sale		84,148			2,520			9,381			8,921			8,902
Federal Home Loan Bank stock		3,614			3,614			3,540			3,540			2,072
Loans
Loans		933,269			939,109			943,635			947,927			952,084
Allowance for loan loss		(14,452	)		(16,429	)		(16,638	)		(10,749	)		(10,617	)
Net loans		918,817			922,680			926,997			937,178			941,467
Bank premises and equipment, net		21,272			21,491			21,630			22,546			22,782
Real estate owned		9,657			8,343			5,411			6,183			6,319
Goodwill		0			34,028			34,028			34,047			34,028
Other intangible assets		4,592			10,165			10,487			10,810			11,133
Accrued interest receivable		3,499			3,601			3,757			4,134			3,816
Other assets		21,483			8,110			7,880			5,189			5,664
Total assets	$	1,121,918		$	1,077,979		$	1,038,093		$	1,047,629		$	1,046,981
LIABILITIES
Deposits
Non-interest bearing deposits	$	81,317		$	83,555		$	82,353		$	80,711		$	83,594
Interest bearing deposits		857,078			775,196			741,124			688,492			739,033
Total deposits		938,395			858,751			823,477			769,203			822,627
Other liabilities
Federal funds purchased		0			0			3,600			56,480			30,100
Securities sold under agreements to repurchase		2,461			222			171			275			480
Federal Home Loan Bank advances		65,019			72,283			65,401			70,795			41,370
Other liabilities		1,037			1,735			1,026			1,017			1,688
Accrued interest payable		1,695			1,148			2,047			2,548			3,168
Subordinated debentures		10,000			10,000			10,000			10,000			10,000
Total liabilities		1,018,607			944,139			905,722			910,318			909,433
Total stockholders’ equity		103,311			133,840			132,371			137,311			137,548
Total liabilities and stockholders’ equity	$	1,121,918		$	1,077,979		$	1,038,093		$	1,047,629		$	1,046,981

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT

	Quarter ended
(Dollars, in thousands)	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
INTEREST INCOME
Interest on loans, including fees	$	14,623		$	14,742		$	14,994		$	16,174		$	16,998
Interest on other earning assets		216			121			131			125			217
Total interest income		14,839			14,863			15,125			16,299			17,215
INTEREST EXPENSE
Interest on deposits		6,440			5,764			5,874			7,028			8,616
Interest on other liabilities		855			849			967			1,218			725
Total interest expense		7,295			6,613			6,841			8,246			9,341
Net interest income		7,544			8,250			8,284			8,053			7,874
Provision for loan loss		4,884			90			8,746			886			855
Net interest income after provision for loan loss		2,660			8,160			(462	)		7,167			7,019
NON-INTEREST EXPENSE
Deposit service charges		431			426			390			419			371
Gain on the sale of loans		0			61			51			53			28
Loss on the sale or write-down of real estate		(1,808	)		(225	)		(569	)		(435	)		(131	)
Other		72			57			73			74			54
Total non-interest income		(1,305	)		319			(55	)		111			322
NON-INTEREST EXPENSE
Salaries and employee benefits		3,236			3,413			3,284			3,209			3,318
Occupancy and equipment expense		981			908			950			913			915
Impairment of goodwill and other intangible assets		39,601			0			0			0			0
Other expense		2,211			1,991			2,194			2,116			2,506
Total non-interest expense		46,029			6,312			6,428			6,238			6,739
Income (loss) before income tax provision		(44,674	)		2,167			(6,945	)		1,040			602
Income tax provision (benefit)		(15,267	)		747			(2,331	)		364			204
Net income (loss)	$	(29,407	)	$	1,420		$	(4,614	)	$	676		$	398

DEARBORN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED FINANCIAL DATA

	Quarter ended
(Dollars in thousands, except share and per share data)	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
EARNINGS SUMMARY
Net interest income	$	7,544		$	8,250		$	8,284		$	8,053		$	7,874
Provision for loan loss	$	4,884		$	90		$	8,746		$	886		$	855
Total non-interest income	$	(1,305	)	$	319		$	(55	)	$	111		$	322
Total non-interest expense	$	46,029		$	6,312		$	6,428		$	6,238		$	6,739
Income taxes	$	(15,267	)	$	747		$	(2,331	)	$	364		$	204
Net income (loss)	$	(29,407	)	$	1,420		$	(4,614	)	$	676		$	398
Basic earnings per share	$	(3.77	)	$	0.18		$	(0.57	)	$	0.08		$	0.05
Diluted earnings per share	$	(3.77	)	$	0.18		$	(0.57	)	$	0.08		$	0.05
MARKET DATA
Book value per share	$	13.42		$	16.53		$	16.43		$	16.94		$	16.70
Tangible book value per share	$	11.16		$	11.07		$	11.04		$	11.56		$	11.58
Market value per share	$	1.66		$	4.99		$	4.86		$	7.60		$	7.73
Average basic common shares		7,796,354			8,044,180			8,051,037			8,139,721			8,357,909
Average diluted common shares		7,796,354			8,082,263			8,051,037			8,198,676			8,504,931
Period end common shares		7,696,204			8,098,557			8,055,698			8,106,413			8,237,413
PERFORMANCE RATIOS
Return on average assets		-10.72	%		0.54	%		-1.77	%		0.26	%		0.15	%
Return on average equity		-87.91	%		4.22	%		-13.45	%		1.97	%		1.13	%
Net interest margin (FTE)		2.96	%		3.41	%		3.45	%		3.36	%		3.22	%
Efficiency ratio		572.00	%		71.78	%		73.06	%		72.54	%		80.93	%
ASSET QUALITY
Net charge-offs (YTD)	$	10,771		$	3,910		$	3,611		$	754		$	4,683
Nonperforming loans	$	69,923		$	69,811		$	56,659		$	35,373		$	40,078
Other real estate	$	9,657		$	8,343		$	5,411		$	6,183		$	6,319
Nonperforming loans to total loans		7.49	%		7.43	%		6.00	%		3.73	%		4.21	%
Nonperforming assets to total assets		7.09	%		7.25	%		5.98	%		3.97	%		4.43	%
Allowance for loan loss to total loans		1.55	%		1.75	%		1.76	%		1.13	%		1.12	%
CAPITAL & LIQUIDITY
Average equity to average assets		12.20	%		12.85	%		13.16	%		13.22	%		13.27	%
Tier 1 capital to risk weighted assets		9.11	%		10.23	%		10.21	%		10.49	%		10.42	%
Total capital to risk weighted assets		10.37	%		11.48	%		11.46	%		11.59	%		11.51	%
Loan to deposit ratio		99.45	%		109.36	%		114.59	%		123.23	%		115.74	%
Loan to funding ratio		91.87	%		99.77	%		104.54	%		104.54	%		105.25	%
END OF PERIOD BALANCES
Total portfolio loans	$	933,269		$	939,109		$	943,635		$	947,927		$	952,084
Earning assets	$	1,064,196		$	992,951		$	958,759		$	962,733		$	965,987
Total assets	$	1,121,918		$	1,077,979		$	1,038,093		$	1,047,629		$	1,046,981
Deposits	$	938,395		$	858,751		$	823,477		$	769,203		$	822,627
Total shareholders’equity	$	103,311		$	133,840		$	132,371		$	137,311		$	137,548
AVERAGE BALANCES
Total portfolio loans	$	940,195		$	944,262		$	947,892		$	946,697		$	950,169
Earning assets	$	1,010,304		$	961,935		$	966,437		$	961,549		$	970,897
Total assets	$	1,091,120		$	1,042,152		$	1,048,423		$	1,044,159		$	1,053,498
Deposits	$	876,569		$	822,424		$	807,347		$	789,076		$	855,931
Total shareholders’equity	$	133,081		$	133,949		$	138,002		$	137,990		$	139,845

Dearborn Bancorp, Inc.
Loan Information at December 31, 2008

			Loan Detail										Other Related Data
			Accruing Loans										Allowance		Year to Date		Other Real
(In thousands)	12/31/08		Current		TDR		30 to 89 past due		90+ days past due		Non-Accrual		For Loan Losses		Net Charge-Offs		Estate Owned
Consumer Loans	$	31,864	$	30,652	$	0	$	127	$	0	$	1,085	$	163	$	299	$	0
Commercial Loans		164,740		156,135		1,985		1,053		254		5,313		1,532		4,187		1,586
Land Development — Residential		54,323		37,044		3,843		0		0		13,436		3,663		2,636		4,089
Land Development — Non Residential		16,094		10,410		0		0		0		5,684		1,922		0		282
Commercial Construction Loans — Residential		17,296		13,228		0		0		0		4,068		1,316		801		1,975
Commercial Construction Loans — Non Residential		25,322		23,706		0		0		0		1,616		1,149		131		0
Commercial Mortgage Loans		571,204		532,977		11,937		5,583		196		20,511		4,509		2,425		1,003
Residential Mortgages Loans		52,426		51,233		0		286		0		907		198		292		722
Totals	$	933,269	$	855,385	$	17,765	$	7,049	$	450	$	52,620		14,452	$	10,771	$	9,657
											Unallocated			0
											Total		$	14,452

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