EXHIBIT 99.1
DEARBORN BANCORP SECOND QUARTER
EARNINGS INCREASE 44.3 PERCENT.
DEARBORN, Michigan, July 16, 2003 ... Dearborn Bancorp, Inc. (Nasdaq:
DEAR), the holding company for Community Bank of Dearborn, today reported
earnings of $759,000 or $0.25 per fully diluted share for the three months ended
June 30, 2003. This figure was 44.3 percent more than the Corporation's earnings
of $526,000 ($0.18 per diluted share) in the same period one year ago. Earnings
for the first half of 2003 were $1,339,000 ($0.45 per fully diluted share), 33.5
percent more than earnings of $1,003,000 ($0.35 per diluted share) during the
first half of 2002.
During the 12 month period ending at mid-year, the Corporation's total
assets grew by 35.8 percent to $393.1 million, total deposits went up 37.1
percent to $328.5 million and total loans increased 44.3 percent to stand at
$327.4 million at the end of business on June 30, 2003.
Michael J. Ross, President and CEO of both the Holding Company and the
Bank, reported his organization's financial results. He added, "We are
continuing to grow just about as fast as prudence allows. We have brought our
loan-to-deposit ratio close to 100 percent and we have redeployed deposits
raised earlier in the year from investments into loans. The consequence of this
strategy has been to allow us to improve our margins at a time when community
banks of our size have been experiencing severe pressure on their margins as a
result of record low interest rates. In addition, we have opened a new Auburn
Hills Regional Lending Center to increase our small and mid-sized business
lending volume in an area where there is a relatively strong demand for quality
loans."
Dearborn Bancorp, Inc., is a registered bank holding company. Its
sole subsidiary is Community Bank of Dearborn. The Bank operates offices in
Dearborn, Dearborn Heights, Plymouth Township, Canton Township, Clinton
Township, Southgate, and Auburn Hills 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 an ultimate actual
outcome and a preceding forward-looking statement.
DEARBORN BANCORP, INC.
(In thousands, except share and per share data) THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
CONDENSED STATEMENT OF INCOME: 2003 2002 2003 2002
---------------------------------- ----------------------------------
Interest income $5,732 $4,449 $11,049 $8,442
Interest expense 2,243 1,929 4,548 3,653
---------------- --------------- ---------------- ---------------
Net interest income 3,489 2,520 6,501 4,789
Provision for loan losses 511 263 739 488
---------------- --------------- ---------------- ---------------
Net interest income after provision 2,978 2,257 5,762 4,301
Non-interest income 906 238 1,657 551
Non-interest expense 2,735 1,699 5,392 3,334
---------------- --------------- ---------------- ---------------
Net income before taxes 1,149 796 2,027 1,518
Income tax provision 390 270 688 515
---------------- --------------- ---------------- ---------------
Net income $759 $526 $1,339 $1,003
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SHARE DATA:
Weighted avg no. of shares outstanding - basic 2,772,012 2,726,006 2,761,150 2,726,297
Weighted avg no. of shares outstanding - diluted 3,014,805 2,869,334 2,985,306 2,850,306
Period end shares outstanding 2,782,831 2,726,006
PER COMMON SHARE DATA:
Net income, basic $0.27 $0.19 $0.48 $0.37
Net income, diluted $0.25 $0.18 $0.45 $0.35
Closing Stock Price $20.00 $12.52
Book Value $11.60 $10.63
PROFITABILITY RATIOS, ANNUALIZED:
Return on average stockholders' equity 9.48% 7.32% 8.48% 7.04%
Return on average total assets 0.77% 0.74% 0.71% 0.75%
Average equity to average total assets 8.17% 10.09% 8.32% 10.64%
<Caption>
CONDENSED BALANCE SHEET: JUNE 30 Dec. 31 June 30
2003 2002 2002
--------------- ---------------- ---------------
Assets
Cash and equivalents $18,980 $19,450 $15,150
Mortgage loans held for sale 13,053 9,852 406
Investment securities, available for sale 28,458 23,249 42,713
Loans 327,383 267,522 226,800
Allowance for loan losses (3,514) (2,875) (2,313)
Other assets 8,700 7,902 6,784
--------------- ---------------- ---------------
Total assets $393,060 $325,100 $289,540
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Liabilities and stockholders' equity
Deposits $328,497 $262,086 $239,527
Federal Home Loan Bank advances $20,660 $20,660 $20,000
Other liabilities 1,619 1,663 1,022
Trust preferred securities 10,000 10,000 ---
Stockholders' equity 32,284 30,691 28,991
--------------- ---------------- ---------------
Total liabilities and stockholders' equity $393,060 $325,100 $289,540
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