EXHIBIT 99.1
DEARBORN BANCORP REPORTS RECORD EARNINGS;
TOTAL ASSETS SURPASS $400 MILLION
DEARBORN, Michigan, October 21, 2003 ... Dearborn Bancorp, Inc.
(Nasdaq: DEAR), the holding company for Community Bank of Dearborn, today
reported earnings of $2,349,000 or $0.78 per diluted common share for the first
nine months of 2003. This figure is 25.5 percent greater than earnings of
$1,871,000 ($0.65 per diluted common share) for the same period one year ago.
Earnings for the Third Quarter ended September 30, 2003, were $1,010,000 ($0.33
per diluted common share), 16.4 percent more than the same quarter in 2002 when
the Corporation reported earnings of $868,000 ($0.30 per diluted common share).
During the 12 months ended September 30, 2003, the Corporation's Total
Assets increased 37.8 percent to stand at $409,287,000 on that date, compared to
$296,938,000 one year earlier. This was the first time that Total Assets
exceeded $400 million at the end of a financial reporting period. During the
same one-year period, Total Deposits went up 40.0 percent to $343,825,000 while
Total Loans increased by 49.3 percent to $374,963,000.
Michael J. Ross, President and Chief Executive Officer of both the
Holding Company and the Bank, issued his organization's earnings report. He
added, "This was the first time that we earned more than $1 million in a quarter
and the first time that our Total Assets exceeded $400 million at the end of a
quarter. These are both important milestones for our Corporation as we approach
the Tenth Anniversary of the opening of Community Bank of Dearborn. In that
time, we believe that we have succeeded in building a sound and profitable
institution with tremendous prospects for further growth and success in the
years ahead."
Ross went on to say, "Our recent office openings have given us an
opportunity to develop a considerable volume of profitable lending business and
aggressive pricing of savings products has allowed us to acquire the low cost
funds we needed to support that loan growth. As a consequence, our net interest
income is running almost 40 percent ahead of last year at a time when many of
our community bank peers have been experiencing severe pressure on their
interest margins. In short, we are well satisfied with our current situation and
optimistic about the remainder of this year."
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 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 NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
CONDENSED STATEMENT OF INCOME: 2003 2002 2003 2002
----------- ----------- ----------- -----------
Interest income $ 6,116 $ 4,801 $ 17,165 $ 13,243
Interest expense 1,971 1,885 6,519 5,538
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Net interest income 4,145 2,916 10,646 7,705
Provision for loan losses 671 400 1,410 888
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Net interest income after provision 3,474 2,516 9,236 6,817
Non-interest income 772 579 2,429 1,130
Non-interest expense 2,721 1,780 8,113 5,114
----------- ----------- ----------- -----------
Net income before taxes 1,525 1,315 3,552 2,833
Income tax provision 515 447 1,203 962
----------- ----------- ----------- -----------
Net income $ 1,010 $ 868 $ 2,349 $ 1,871
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SHARE DATA:
Weighted avg no. of shares outstanding - basic 2,788,968 2,726,869 2,770,525 2,726,297
Weighted avg no. of shares outstanding - diluted 3,058,741 2,882,246 3,004,644 2,858,282
Period end shares outstanding 2,797,084 2,737,029
PER COMMON SHARE DATA:
Net income, basic $ 0.36 $ 0.32 $ 0.85 $ 0.69
Net income, diluted $ 0.33 $ 0.30 $ 0.78 $ 0.65
Closing Stock Price $ 20.90 $ 15.44
Book Value $ 11.96 $ 11.18
PROFITABILITY RATIOS, ANNUALIZED:
Return on average stockholders' equity 12.17% 11.65% 9.75% 8.66%
Return on average total assets 1.03% 1.19% 0.82% 0.91%
Average equity to average total assets 8.45% 10.10% 8.37% 10.45%
CONDENSED BALANCE SHEET: SEP 30 Dec 31 Sep 30
2003 2002 2002
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Assets
Cash and equivalents $ 13,694 $ 19,450 $ 20,597
Mortgage loans held for sale 2,727 9,852 380
Investment securities, available for sale 12,993 23,249 20,657
Loans 374,963 267,522 251,174
Allowance for loan losses (4,016) (2,875) (2,700)
Other assets 8,926 7,902 6,830
----------- ----------- -----------
Total assets $ 409,287 $ 325,100 $ 296,938
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Liabilities and stockholders' equity
Deposits $ 343,825 $ 262,086 $ 245,572
Federal Home Loan Bank advances 20,638 20,660 20,660
Other liabilities 1,377 1,663 911
Trust preferred securities 10,000 10,000 ---
Stockholders' equity 33,447 30,691 29,795
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Total liabilities and stockholders' equity $ 409,287 $ 325,100 $ 296,938
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