DEARBORN BANCORP REPORTS 21.6 PERCENT
INCREASE IN FIRST QUARTER EARNINGS.
DEARBORN, Michigan, April 16, 2003 ... Dearborn Bancorp, Inc. (Nasdaq:
DEAR), the holding company for Community Bank of Dearborn, reported earnings of
$580,000 in the First Quarter ended March 31, 2003. This represented a 21.6
percent increase over the Corporation's earnings of $477,000 in the same quarter
of 2002. Fully diluted earnings per common share were $0.20 for the 2003 period
while they were $0.18 in 2002.
During the 12 months prior to the end of the quarter, the Corporation's
total assets increased 35.2 percent to $386,055,000 from $285,625,000 one year
ago. Total deposits went up 36.2 percent to $322,062,000 from $236,379,000 and
total loans held in the organization's portfolio grew by 38.1 percent to
$288,321,000 from $208,851,000.
The earnings report was issued by Michael J. Ross, President and Chief
Executive Officer of both the Corporation and the Bank, who added, "There were
two reasons why our earnings grew at a somewhat slower rate than our assets,
deposits and loans. First, like all community banks, we are experiencing
pressure on our interest margins. The second, and more important, reason why our
earnings did not grow as fast our assets was the fact that we have recently
opened a full service banking office in Clinton Township and another in
Southgate. Moreover, we have added three experienced bankers to the officer
staff in anticipation of opening a new banking office in Auburn Hills in the
second quarter of this year. The additional non-interest expense arising from
these expansion activities is a necessary investment in our future growth, but
it does have a temporary effect on overall profitability. In time, however, we
are confident that these investments will prove to be money well spent."
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, and Southgate in the State of Michigan. The Corporation'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 and ultimate actual
outcome and a preceding forward-looking statement.
DEARBORN BANCORP, INC.
(In thousands, except share and per share data) THREE MONTHS ENDED
MARCH 31
CONDENSED STATEMENT OF INCOME: 2003 2002
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Interest income $ 5,317 $ 3,993
Interest expense 2,305 1,724
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Net interest income 3,012 2,269
Provision for loan losses 228 225
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Net interest income after provision 2,784 2,044
Non-interest income 751 313
Non-interest expense 2,657 1,635
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Income before taxes 878 722
Income tax provision 298 245
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Net income $ 580 $ 477
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SHARE DATA:
Weighted avg no. of shares outstanding - basic 2,619,399 2,596,386
Weighted avg no. of shares outstanding - diluted 2,829,792 2,696,088
Period end shares outstanding 2,627,158 2,596,386
PER COMMON SHARE DATA:
Net income, basic $ 0.22 $ 0.18
Net income, diluted $ 0.20 $ 0.18
Closing Stock Price $ 16.78 $ 12.53
Book Value $ 11.93 $ 10.90
PROFITABILITY RATIOS, ANNUALIZED:
Return on average stockholders' equity 7.45% 6.75%
Return on average total assets 0.63% 0.76%
Average equity to average total assets 8.49% 11.27%
CONDENSED BALANCE SHEET: AS OF MARCH 31,
2003 2002
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Assets
Cash and equivalents $ 53,878 $ 40,236
Mortgage loans held for sale 8,633 307
Investment securities, available for sale 29,899 31,620
Loans 288,321 208,851
Allowance for loan losses (3,109) (2,131)
Other assets 8,433 6,742
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Total assets $ 386,055 $ 285,625
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Liabilities and stockholders' equity
Deposits $ 322,062 $ 236,379
Federal Home Loan Bank advances 20,660 20,000
Trust preferred securities 10,000 ---
Other liabilities 1,993 953
Stockholders' equity 31,340 28,293
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Total liabilities and stockholders' equity $ 386,055 $ 285,625
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