DEARBORN, Mich., April 19, 2011 (GLOBE NEWSWIRE) -- Dearborn Bancorp, Inc. (Nasdaq:DEAR), the Holding Company for Fidelity Bank ("Bank"), today reported a net income of $154,000 or $0.02 per fully diluted common share for the three months ended March 31, 2011 compared to a net income of $1,128,000 or $0.15 per share for the three months ended March 31, 2010. The Company's Shareholders' Equity of $26,994,000 equates to a tangible book value of $3.51 per share compared to the market closing price of $1.42 on March 31, 2011. In accordance with regulatory capital guidelines, the Bank remains "undercapitalized" at March 31, 2011.
At March 31, 2011 the Company's total assets were $896,994,000 compared to $970,669,000 at March 31, 2010. Total loans were intentionally reduced from $813,961,000 to $718,187,000. Total deposits declined from $852,017,000 to $794,153,000. Cash and cash equivalents increased from $79,002,000 to $103,310,000, and securities available for sale increased from $46,267,000 to $53,117,000. During the last year, the Company has continued to focus on strategically reducing loan balances to conserve capital while increasing the liquidity of the balance sheet.
Michael J. Ross, President and Chief Executive Officer of both the Company and the Bank, announced the financial results and commented, "The Bank continues to generate solid core earnings. First quarter 2011 earnings were $154,000 net after expenses of $1,395,000 in loan loss provision, $326,000 in write-downs of other real estate owned, $1,180,000 in defaulted loan expense and $950,000 in FDIC insurance premiums. Net charge-offs for the first quarter of 2011 declined to $1,395,000 compared to $4,937,000 for the first quarter for 2010. Non-performing loans remain unacceptably high at $120,688,000. Included in this category are $42,205,000 of restructured troubled debt loans which are current according to their restructured terms."
Mr. Ross continued, "The net interest margin grew to 3.96% for the quarter ended March 31, 2011 compared to 3.47% a year ago, primarily as a result of improved deposit pricing. Additionally, management continues to maintain tight control over operating expenses in the areas of wages, occupancy, marketing, stationery and supplies, data processing as well as certain discretionary expenses.
Ross concluded, "We are beginning to see the results of declining Michigan unemployment which is now at 10.7% at March 31, 2011 down from 14.6% as of December 31, 2009. While we are showing some positive signs in 2011, the determining factor as to whether the Company can be solidly profitable in future quarters remains dependent upon the appraised value of collateral and level of charge-offs and write-downs. Thus, our primary concerns for 2011 are the recovery of the Michigan economy, credit quality, and the stability or improvement of the underlying collateral values in our loan portfolio."
Dearborn Bancorp, Inc. is a registered bank holding company. Its sole banking subsidiary is Fidelity Bank. The Bank operates 16 offices in Wayne, Oakland, Macomb and Washtenaw Counties in the State of Michigan. Its common shares trade on the Nasdaq Global Market under the symbol DEAR.
Forward-Looking Statements
This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations. 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. Actual results and outcomes may materially differ from what is expressed in forward-looking statements. Dearborn Bancorp 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; actions by bank regulators; availability of capital; changes in local real estate values; changes in the national and local economy; and other factors, including risk factors disclosed from time to time in filings made by Dearborn Bancorp with the Securities and Exchange Commission. These are representative of the Future Factors and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
CONTACT: Michael J. Ross, President & CEO, at (313) 565-5700 or Jeffrey L. Karafa, CFO, at (313) 381-3200