NEW YORK (TheStreet) -- Dearborn Bancorp (DEAR) rallied nearly 70% in the premarket session on earnings results, making it one of several stocks trading below $5 poised to move on above-average volume during Wednesday's session.
Dearborn Bancorp said late Tuesday that it swung to a first-quarter profit of 15 cents a share from a year-ago loss of 81 cents a share. The provision for loan losses dropped to $100,000 from $10.72 million in the year-ago quarter. The allowance for loan losses now stands at $30.3 million, or 3.72% of loans, the company said.
Dearborn Bancorp shares were surging by $1.03, o 68.7%, to $2.53 in the premarket session. The 50-day average daily volume for Dearborn is 220,000, according to the Nasdaq.
On the other hand, The South Financial Group (TSFG) dropped by 21 cents, or 23.3%, to 70 cents in the premarket session after the company posted a first-quarter loss of 40 cents a share and said it expects further losses in 2010. "Given our expectation of additional losses during 2010, we will need to raise additional capital during the year," CEO H. Lynn Harton said in a statement.The 50-day average daily volume for The South Financial Group is 7.27 million. Elsewhere, DryShips (DRYS) fell by 34 cents, or 5.2%, to $6.15 in the premarket session after the company said late Tuesday it has commenced a public offering of $150 million aggregate principal amount of convertible senior notes. DryShips also said it will enter into a $60 million share-lending deal with Deutsche Bank (DB). The 50-day average daily volume for DryShips is 15.18 million. Also among the losers, Synovus (SNV) sank by 51 cents, or 13.4%, to $3.31 in the premarket session after the company said its first-quarter loss widened to 47 cents a share from 46 cents a share in the year-ago quarter. Synovus said its provision for loan losses increased by 17% to $340.9 million, while net charge-offs rose 28% and nonperforming assets increased 7% from a year earlier. FBR Capital Markets analyst Paul Miller reiterated his underperform rating on Synovus, saying that credit remains his primary concern "as credit losses continue to erode book value and drive the company's need for more capital." The three-month average daily volume for Synovus is 16.58 million, according to Yahoo! Finance. -- Written by Robert Holmes in Boston. Check out all of Wednesday's high-volume, under-$5 stocks at the Dollar Store. View the Dollar Store portfolio on StockPickr. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
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