Dearborn Bancorp Reports Third Quarter Profit
DEARBORN, Mich., Oct. 19, 2010 (GLOBE NEWSWIRE) -- Dearborn Bancorp, Inc. (Nasdaq:DEAR), the Holding Company for Fidelity Bank ("Bank"), today reported a net income of $631,000 or $0.08 per fully diluted common share for the three months ended September 30, 2010 compared to a net loss of $40,045,000 or $(5.24) per share for the three months ended September 30, 2009. For the nine months ended September 30, 2010, the Company's net loss was $11,870,000 or $(1.55) compared to a net loss of $55,369,000 or $(7.24) for the same period in 2009. The Company's Shareholders' Equity of $30,154,000 equates to a book value of $3.92 per share compared to the market closing price of $1.79 on September 30, 2010. In accordance with regulatory capital guidelines, the Bank remains "undercapitalized" at September 30, 2010.
At the end of September, the Company's total assets were $916,731,000 representing a decline of 12.1 percent over the preceding 12 months as a result of a strategic contraction of the balance sheet to conserve capital. Total deposits decreased 10.6 percent over the previous year and stood at $809,418,000 when the third quarter ended. Total loans were $760,683,000 on September 30, 2010, 11.8 percent less than they had been on the same date in 2009. Strong emphasis is being placed on collection of the existing loan portfolio and the sale of other real estate owned.
Michael J. Ross, President and Chief Executive Officer of both the Company and the Bank, announced the financial results and commented, "During the third quarter, net charge-offs were $2,243,000 which included gross recoveries of $661,000. The allowance for loan losses now stands at 3.92% of total loans at the end of the quarter. Write-downs of other real estate owned were $960,000, reflecting the pending sale of two spec commercial office buildings. Total non-performing assets were $137,043,000 at September 30, 2010 remaining flat compared to the first and second quarter of 2010."
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