DEAR Dearborn Bancorp, Inc. (MM)

DEARBORN, Mich., April 21 /PRNewswire-FirstCall/ -- Dearborn Bancorp, Inc. (NASDAQ:DEAR), the Holding Company for Fidelity Bank, has reported a net loss of $2,949,000 or ($0.38) per fully diluted common share for the first quarter ended March 31, 2009. One year ago, the Company had net income of $676,000 or $0.08 per share for the same three-month period. During the twelve months prior to the end of the quarter, the Company's total assets increased 2.8 percent to $1,077,044,000, total deposits went up 18.0 percent to $907,579,000, and total loans declined 4.6 percent to $904,426,000. The Bank remains "Well Capitalized" according to the regulatory guidelines. Michael J. Ross, President and Chief Executive Officer of both the Company and the Bank, issued his organization's financial report and commented, "The decline in property values in Southeast Michigan coupled with record high unemployment continues to be of significant concern. During the first quarter, we added $5.7 million to the allowance for loan losses and recognized almost $2.2 million in charge-offs. We also wrote down the value of other real estate by $354,000 and, $100,000 on the sale of other real estate. Defaulted loan expenses such as taxes, insurance, maintenance, and legal fees totaled another $761,000." Ross went on, "We now have an allowance for loan losses of more than $18 million, which is 1.99 percent of total loans. We have a group of skilled workout professionals working on problem loans and liquidating our other real estate. There is no question that we are operating in a difficult environment, but we are confident that we have both the capital and the experienced people to persevere." Dearborn Bancorp, Inc. is a registered bank holding company. Its sole subsidiary is Fidelity Bank. The Bank operates 18 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 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. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars, in thousands) 03/31/09 12/31/08 03/31/08 ASSETS Cash and cash equivalents Cash and due from banks $11,881 $11,671 $12,736 Federal funds sold 6,841 4,455 1,958 Interest bearing deposits with banks 53,262 36,876 105 Total cash and cash equivalents 71,984 53,002 14,799 Mortgage loans held for sale 3,009 1,834 282 Investment securities, available for sale 45,368 84,148 8,921 Federal Home Loan Bank stock 3,614 3,614 3,540 Loans Loans 904,426 933,269 947,927 Allowance for loan losses (18,003) (14,452) (10,749) Net loans 886,423 918,817 937,178 Premises and equipment, net 21,001 21,272 22,546 Other real estate 14,624 9,657 6,183 Goodwill 0 0 34,028 Other intangible assets 4,394 4,592 10,810 Accrued interest receivable 3,920 3,499 4,134 Other assets 22,707 21,483 5,208 Total assets $1,077,044 $1,121,918 $1,047,629 LIABILITIES Deposits Non-interest bearing deposits $80,624 $81,317 $80,725 Interest bearing deposits 826,955 857,078 688,492 Total deposits 907,579 938,395 769,217 Other liabilities Federal funds purchased 0 0 56,480 Securities sold under agreements to repurchase 2,268 2,461 275 Federal Home Loan Bank advances 54,955 65,019 70,795 Accrued interest payable 1,372 1,695 2,548 Other liabilities 606 1,037 1,017 Subordinated debentures 10,000 10,000 10,000 Total liabilities 976,780 1,018,607 910,332 STOCKHOLDERS' EQUITY Common stock - 20,000,000 shares authorized, 7,696,204 shares at 03/31/09, 7,696,204 shares at 12/31/08; and 8,106,413 shares at 03/31/08 131,825 131,784 133,332 Retained earnings (31,623) (28,675) 3,926 Accumulated other comprehensive loss 62 202 39 Total stockholders' equity 100,264 103,311 137,297 Total liabilities and stockholders' equity $1,077,044 $1,121,918 $1,047,629 DEARBORN BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (unaudited) (In thousands, except share and per share data) Three Months Ended Three Months Ended 03/31/09 03/31/08 Interest income Interest on loans $13,810 $16,174 Interest on securities, available for sale 256 108 Interest on federal funds 6 16 Interest on deposits with banks 94 1 Total interest income 14,166 16,299 Interest expense Interest on deposits 5,998 7,028 Interest on other borrowings 546 993 Interest on subordinated debentures 105 225 Total interest expense 6,649 8,246 Net interest income 7,517 8,053 Provision for loan losses 5,727 886 Net interest income after provision for loan losses 1,790 7,167 Non-interest income Service charges on deposit accounts 355 380 Fees for other services to customers 25 39 Gain on the sale of loans 56 53 Gain on the sale of securities, available for sale 195 --- Gain (loss) on the sale of real estate owned 29 (235) Write-down on real estate owned (354) (200) Loss on the sale of real estate owned (100) --- Other income 122 74 Total non- interest income 328 111 Non-interest expenses Salaries and employee benefits 3,290 3,209 Occupancy and equipment expense 934 913 Intangible expense 198 323 FDIC assessment 348 174 Advertising and marketing 70 123 Stationery and supplies 111 133 Professional services 191 226 Data processing 228 225 Defaulted loan expense 761 435 Other operating expenses 380 477 Total non- interest expenses 6,511 6,238 Income before income tax provision (4,393) 1,040 Income tax provision (1,444) 364 Net income ($2,949) $676 Per share data: Net income - basic ($0.38) $0.08 Net income - diluted ($0.38) $0.08 Weighted average number of shares outstanding - basic 7,696,204 8,139,721 Weighted average number of shares outstanding - diluted 7,696,204 8,198,676 DEARBORN BANCORP, INC. AND SUBSIDIARY ASSET QUALITY DATA (Dollars, in thousands) 12/31/ 3/31/ 3/31/2009 2008 9/30/2008 6/30/2008 2008 Troubled debt restructuring $19,506 $17,765 $15,328 $13,145 $8,710 Loans over 90 days past due and still accruing 0 450 3,141 7,319 9,257 Non-accrual loans 56,338 51,708 51,342 36,195 17,406 Total non-performing loans 75,844 69,923 69,811 56,659 35,373 Other real estate and other repossessed assets 14,624 9,657 8,343 5,411 6,183 Total non-performing assets $90,468 $79,580 $78,154 $62,070 $41,556 Net charge-offs (Year to date) $2,176 $10,771 $3,910 $3,611 $754 Allowance for loan losses 18,003 14,452 16,429 16,638 10,749 ASSET QUALITY RATIOS 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2009 2008 2008 2008 2008 Non-accrual loans to total loans 6.23% 5.54% 5.47% 3.83% 1.84% Non-performing loans to total loans 8.39% 7.49% 7.43% 6.00% 3.73% Non-performing assets to total assets 8.40% 7.09% 7.25% 5.98% 3.97% Loans over 90 days past due and still accruing to total loans 0.00% 0.05% 0.33% 0.78% 0.98% Net charge-offs to average loans 0.24% 1.14% 0.41% 0.38% 0.08% Allowance for loan losses to non-performing loans 23.74% 20.67% 23.53% 29.37% 30.39% Allowance for loan losses to non-performing assets 19.90% 18.16% 21.02% 26.81% 25.87% Allowance for loan losses to total loans 1.99% 1.55% 1.75% 1.76% 1.13% DEARBORN BANCORP, INC. AND SUBSIDIARY NON-GAAP OPERATING EARNINGS INFORMATION (Dollars, in thousands except share and per share data) Quarter Ended 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2009 2008 2008 2008 2008 Income (loss) from continuing operations ($2,949) ($29,407) $1,420 ($4,614) $676 Add: Non-recurring merger expenses 16 28 13 49 55 Tax effect (5) (10) (4) (17) (19) After-tax non operating items 11 18 9 32 36 Core operating income (loss) ($2,938) ($29,389) $1,429 ($4,582) $712 Quarter Ended 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2009 2008 2008 2008 2008 Core operating income (loss) ($2,938) ($29,389) $1,429 ($4,582) $712 Add: Amortization of intangible assets 198 0 323 322 323 Add: Impairment of goodwill and intangible assets 0 39,601 0 0 0 Tax effect (67) (13,464) (110) (109) (110) After-tax non operating items 131 26,137 213 213 213 Cash operating income (loss) ($2,808) ($3,252) $1,642 ($4,369) $925 (Dollars, in thousands except share and per share data) Quarter Ended 3/31/2009 3/31/2008 Income (loss) from continuing operations ($2,949) $676 After-tax non-recurring merger expenses 11 36 Core operating income (loss) (2,938) 712 After tax amortization of intangible assets 131 213 Cash operating income (loss) ($2,808) $925 Basic EPS Quarter Ended 3/31/2009 3/31/2008 Income (loss) from continuing operations ($0.38) $0.08 After-tax non-recurring merger expenses $0.00 $0.00 Core operating income (loss) ($0.38) $0.09 After tax amortization of intangible assets $0.02 $0.03 Cash operating income (loss) ($0.36) $0.11 Diluted EPS Quarter Ended 3/31/2009 3/31/2008 Income (loss) from continuing operations ($0.38) $0.08 After-tax non-recurring merger expenses $0.00 $0.00 Core operating income (loss) ($0.38) $0.09 After tax amortization of intangible assets $0.02 $0.03 Cash operating income (loss) ($0.36) $0.11 Weighted average shares outstanding - basic 7,696,204 8,139,721 Weighted average shares outstanding - diluted 7,696,204 8,198,676 DEARBORN BANCORP, INC. AND SUBSIDIARY TANGIBLE ASSETS & EQUITY (Dollars, in thousands) Quarter Ended 3/31/2009 3/31/2008 Average GAAP equity $104,218 $137,990 Goodwill 0 34,041 Other intangible assets 4,508 11,006 Deferred taxes 12,030 (792) 16,538 44,255 Average tangible equity $87,680 $93,735 Quarter Ended 3/31/2009 3/31/2008 Average GAAP assets $1,099,559 $1,044,159 Goodwill 0 34,041 Other intangible assets 4,508 11,006 Deferred taxes 12,030 (792) 16,538 44,255 Average tangible assets $1,083,021 $999,904 DEARBORN BANCORP, INC. AND SUBSIDIARY DEPOSIT INFORMATION (In thousands) March 31, Category 2009 2008 Non-interest bearing Demand $80,624 $80,725 Interest bearing Checking $96,491 $66,782 Money market 171,426 98,733 Savings 56,389 53,986 Time, under $100,000 215,508 165,840 Time, $100,000 and over 287,141 303,151 826,955 688,492 $907,579 $769,217 DEARBORN BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars, in thousands) Quarter Ended 3/31/09 12/31/08 9/30/08 ASSETS Cash and cash equivalents Cash and due from banks $11,881 $11,671 $15,719 Federal funds sold 6,841 4,455 14,281 Interest bearing deposits with banks 53,262 36,876 33,146 Total cash and cash equivalents 71,984 53,002 63,146 Mortgage loans held for sale 3,009 1,834 281 Securities, available for sale 45,368 84,148 2,520 Federal Home Loan Bank stock 3,614 3,614 3,614 Loans Loans 904,426 933,269 939,109 Allowance for loan loss (18,003) (14,452) (16,429) Net loans 886,423 918,817 922,680 Bank premises and equipment, net 21,001 21,272 21,491 Other real estate 14,624 9,657 8,343 Goodwill 0 0 34,028 Other intangible assets 4,394 4,592 10,165 Accrued interest receivable 3,920 3,499 3,601 Other assets 22,707 21,483 8,110 Total assets $1,077,044 $1,121,918 $1,077,979 LIABILITIES Deposits Non-interest bearing deposits $80,624 $81,317 $83,555 Interest bearing deposits 826,955 857,078 775,196 Total deposits 907,579 938,395 858,751 Other liabilities Federal funds purchased 0 0 0 Securities sold under agreements to repurchase 2,268 2,461 222 Federal Home Loan Bank advances 54,955 65,019 72,283 Other liabilities 606 1,037 1,735 Accrued interest payable 1,372 1,695 1,148 Subordinated debentures 10,000 10,000 10,000 Total liabilities 976,780 1,018,607 944,139 Total stockholders' equity 100,264 103,311 133,840 Total liabilities and stockholders' equity $1,077,044 $1,121,918 $1,077,979 Quarter Ended 6/30/08 3/31/08 ASSETS Cash and cash equivalents Cash and due from banks $12,779 $12,736 Federal funds sold 1,301 1,958 Interest bearing deposits with banks 147 105 Total cash and cash equivalents 14,227 14,799 Mortgage loans held for sale 755 282 Securities, available for sale 9,381 8,921 Federal Home Loan Bank stock 3,540 3,540 Loans Loans 943,635 947,927 Allowance for loan loss (16,638) (10,749) Net loans 926,997 937,178 Bank premises and equipment, net 21,630 22,546 Other real estate 5,411 6,183 Goodwill 34,028 34,047 Other intangible assets 10,487 10,810 Accrued interest receivable 3,757 4,134 Other assets 7,880 5,189 Total assets $1,038,093 $1,047,629 LIABILITIES Deposits Non-interest bearing deposits $82,353 $80,725 Interest bearing deposits 741,124 688,492 Total deposits 823,477 769,217 Other liabilities Federal funds purchased 3,600 56,480 Securities sold under agreements to repurchase 171 275 Federal Home Loan Bank advances 65,401 70,795 Other liabilities 1,026 1,017 Accrued interest payable 2,047 2,548 Subordinated debentures 10,000 10,000 Total liabilities 905,722 910,332 Total stockholders' equity 132,371 137,297 Total liabilities and stockholders' equity $1,038,093 $1,047,629 DEARBORN BANCORP, INC. AND SUBSIDIARY CONSOLIDATED INCOME STATEMENT (Dollars, in thousands) Quarter ended 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2009 2008 2008 2008 2008 INTEREST INCOME Interest on loans, including fees $13,810 $14,623 $14,742 $14,994 $16,174 Interest on other earning assets 356 216 121 131 125 Total interest income 14,166 14,839 14,863 15,125 16,299 INTEREST EXPENSE Interest on deposits 5,998 6,440 5,764 5,874 7,028 Interest on other liabilities 651 855 849 967 1,218 Total interest expense 6,649 7,295 6,613 6,841 8,246 Net interest income 7,517 7,544 8,250 8,284 8,053 Provision for loan loss 5,727 4,884 90 8,746 886 Net interest income after provision for loan loss 1,790 2,660 8,160 (462) 7,167 NON-INTEREST INCOME Deposit service charges 380 431 426 390 419 Gain on the sale of loans 56 0 61 51 53 Loss on the sale or write-down of real estate (325) (1,808) (225) (569) (435) Other 217 72 57 73 74 Total non-interest income 328 (1,305) 319 (55) 111 NON-INTEREST EXPENSE Salaries and employee benefits 3,290 3,236 3,413 3,284 3,209 Occupancy and equipment expense 934 981 908 950 913 Impairment of goodwill and other intangible assets 0 39,601 0 0 0 Other expense 2,287 2,211 1,991 2,194 2,116 Total non-interest expense 6,511 46,029 6,312 6,428 6,238 Income (loss) before income tax provision (4,393) (44,674) 2,167 (6,945) 1,040 Income tax provision (benefit) (1,444) (15,267) 747 (2,331) 364 Net income (loss) ($2,949) ($29,407) $1,420 ($4,614) $676 DEARBORN BANCORP, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL DATA (Dollars in thousands, except share and per share data) Quarter ended 3/31/2009 12/31/2008 9/30/2008 EARNINGS SUMMARY Net interest income $7,517 $7,544 $8,250 Provision for loan loss $5,727 $4,884 $90 Total non-interest income $328 ($1,305) $319 Total non-interest expense $6,511 $46,029 $6,312 Income taxes ($1,444) ($15,267) $747 Net income (loss) ($2,949) ($29,407) $1,420 Basic earnings per share ($0.38) ($3.77) $0.18 Diluted earnings per share ($0.38) ($3.77) $0.18 MARKET DATA Book value per share $13.03 $13.42 $16.53 Tangible book value per share $11.39 $11.16 $11.07 Market value per share $1.82 $1.66 $4.99 Average basic common shares 7,696,204 7,796,354 8,044,180 Average diluted common shares 7,696,204 7,796,354 8,082,263 Period end common shares 7,696,204 7,696,204 8,098,557 PERFORMANCE RATIOS Return on average assets -1.09% -10.72% 0.54% Return on average equity -11.47% -87.91% 4.22% Net interest margin (FTE) 2.93% 2.96% 3.41% Efficiency ratio 79.69% 572.00% 71.78% ASSET QUALITY Net charge-offs (YTD) $2,176 $10,771 $3,910 Nonperforming loans $75,844 $69,923 $69,811 Other real estate $14,624 $9,657 $8,343 Nonperforming loans to total loans 8.39% 7.49% 7.43% Nonperforming assets to total assets 8.40% 7.09% 7.25% Allowance for loan loss to total loans 1.99% 1.55% 1.75% CAPITAL & LIQUIDITY Average equity to average assets 9.49% 12.20% 12.85% Tier 1 capital to risk weighted assets 9.51% 9.11% 10.23% Total capital to risk weighted assets 10.76% 10.37% 11.48% Loan to deposit ratio 99.65% 99.45% 109.36% Loan to funding ratio 92.78% 91.87% 99.77% END OF PERIOD BALANCES Total portfolio loans $904,426 $933,269 $939,109 Earning assets $1,016,520 $1,064,196 $992,951 Total assets $1,077,044 $1,121,918 $1,077,979 Deposits $907,579 $938,395 $858,751 Total shareholders' equity $100,264 $103,311 $133,840 AVERAGE BALANCES Total portfolio loans $919,705 $940,195 $944,262 Earning assets $1,039,618 $1,010,304 $961,935 Total assets $1,099,573 $1,091,120 $1,042,152 Deposits $920,113 $876,569 $822,424 Total shareholders'equity $104,298 $133,081 $133,949 (Dollars in thousands, except share and per share data) Quarter ended 6/30/2008 3/31/2008 EARNINGS SUMMARY Net interest income $8,284 $8,053 Provision for loan loss $8,746 $886 Total non-interest income ($55) $111 Total non-interest expense $6,428 $6,238 Income taxes ($2,331) $364 Net income (loss) ($4,614) $676 Basic earnings per share ($0.57) $0.08 Diluted earnings per share ($0.57) $0.08 MARKET DATA Book value per share $16.43 $16.94 Tangible book value per share $11.04 $11.56 Market value per share $4.86 $7.60 Average basic common shares 8,051,037 8,139,721 Average diluted common shares 8,051,037 8,198,676 Period end common shares 8,055,698 8,106,413 PERFORMANCE RATIOS Return on average assets -1.77% 0.26% Return on average equity -13.45% 1.97% Net interest margin (FTE) 3.45% 3.36% Efficiency ratio 73.06% 72.54% ASSET QUALITY Net charge-offs (YTD) $3,611 $754 Nonperforming loans $56,659 $35,373 Other real estate $5,411 $6,183 Nonperforming loans to total loans 6.00% 3.73% Nonperforming assets to total assets 5.98% 3.97% Allowance for loan loss to total loans 1.76% 1.13% CAPITAL & LIQUIDITY Average equity to average assets 13.16% 13.22% Tier 1 capital to risk weighted assets 10.21% 10.49% Total capital to risk weighted assets 11.46% 11.59% Loan to deposit ratio 114.59% 123.23% Loan to funding ratio 104.54% 104.54% END OF PERIOD BALANCES Total portfolio loans $943,635 $947,927 Earning assets $958,759 $962,733 Total assets $1,038,093 $1,047,629 Deposits $823,477 $769,217 Total shareholders'equity $132,371 $137,297 AVERAGE BALANCES Total portfolio loans $947,892 $946,697 Earning assets $966,437 $961,549 Total assets $1,048,423 $1,044,159 Deposits $807,347 $789,076 Total shareholders'equity $138,002 $137,990 Dearborn Bancorp, Inc. Loan Information at March 31, 2009 (In thousands) Loan Detail Accruing Loans 90+ days 30 to 89 past Non- 3/31/09 Current TDR past due due Accrual Consumer Loans $31,107 $29,665 $0 $208 $0 $1,234 Commercial Loans 161,594 143,349 9,490 2,630 0 6,125 Land Development - Residential 51,680 35,863 0 2,637 0 13,180 Land Development - Non Residential 16,111 12,040 0 0 0 4,071 Commercial Construction Loans - Residential 15,687 11,730 0 0 0 3,957 Commercial Construction Loans - Non Residential 25,886 18,997 0 0 0 6,889 Commercial Mortgage Loans 550,455 511,915 10,016 8,649 0 19,875 Residential Mortgages Loans 51,906 49,761 0 1,138 0 1,007 Totals $904,426 $813,320 $19,506 $15,262 $0 $56,338 (In thousands) Other Related Data Year to Allowance Date Other For Loan Net Charge- Real Losses Offs Estate Owned Consumer Loans $217 $6 $18 Commercial Loans 2,308 548 2,499 Land Development - Residential 6,833 1,228 4,431 Land Development - Non Residential 2,183 0 282 Commercial Construction Loans - Residential 1,292 64 2,785 Commercial Construction Loans - Non Residential 920 5 0 Commercial Mortgage Loans 4,051 325 3,708 Residential Mortgages Loans 199 0 901 Totals 18,003 $2,176 $14,624 Unallocated 0 Total $18,003 Loan Information at December 31, 2008 (In thousands) Loan Detail Accruing Loans 90+ days 30 to 89 past Non- 12/31/08 Current TDR past due due Accrual Consumer Loans $31,864 $30,652 $0 $127 $0 $1,085 Commercial Loans 164,740 156,135 1,985 1,053 254 5,313 Land Development - Residential 54,323 37,044 3,843 0 0 13,436 Land Development - Non Residential 16,094 10,410 0 0 0 5,684 Commercial Construction Loans - Residential 17,296 13,228 0 0 0 4,068 Commercial Construction Loans - Non Residential 25,322 23,706 0 0 0 1,616 Commercial Mortgage Loans 571,204 532,977 11,937 5,583 196 20,511 Residential Mortgages Loans 52,426 51,233 0 286 0 907 Totals $933,269 $855,385 $17,765 $7,049 $450 $52,620 (In thousands) Other Related Data Allowance Year to Date Other Real For Loan Net Charge- Estate Losses Offs Owned Consumer Loans $163 $299 $0 Commercial Loans 1,532 4,187 1,586 Land Development - Residential 3,663 2,636 4,089 Land Development - Non Residential 1,922 0 282 Commercial Construction Loans - Residential 1,316 801 1,975 Commercial Construction Loans - Non Residential 1,149 131 0 Commercial Mortgage Loans 4,509 2,425 1,003 Residential Mortgages Loans 198 292 722 Totals 14,452 $10,771 $9,657 Unallocated 0 Total $14,452 Loan Information at September 30, 2008 (In thousands) Loan Detail Accruing Loans 30 to 89 90+ days Non- 9/30/08 Current TDR past due past due Accrual Consumer Loans $32,472 $30,993 $0 $333 $128 $1,018 Commercial Loans 162,311 152,665 1,934 1,972 93 5,647 Land Development - Residential 56,878 42,352 4,381 820 0 9,325 Land Development - Non Residential 17,894 12,295 671 860 0 4,068 Commercial Construction Loans - Residential 20,573 12,909 1,168 0 0 6,496 Commercial Construction Loans - Non Residential 30,145 23,901 2,558 492 0 3,194 Commercial Mortgage Loans 565,365 533,592 4,616 3,494 2,810 20,853 Residential Mortgages Loans 53,471 52,172 0 448 110 741 Totals $939,109 $860,879 $15,328 $8,419 $3,141 $51,342 (In thousands) Other Related Data Allowance Year to Date Other For Loan Net Charge- Real Losses Offs Estate Owned Consumer Loans $367 $160 $0 Commercial Loans 1,076 3,094 125 Land Development - Residential 4,072 229 4,425 Land Development - Non Residential 1,791 0 343 Commercial Construction Loans - Residential 3,069 0 729 Commercial Construction Loans - Non Residential 843 58 0 Commercial Mortgage Loans 4,672 185 2,049 Residential Mortgages Loans 539 184 672 Totals 16,429 $3,910 $8,343 Unallocated 0 Total $16,429 Loan Information at June 30, 2008 (In thousands) Loan Detail Accruing Loans 6/30/ 30 to 89 90+ days Non- 08 Current TDR past due past due Accrual Consumer Loans $33,206 $31,822 $0 $1,007 $216 $161 Commercial Loans 169,956 161,781 1,757 3,583 639 2,196 Land Development - Residential 60,170 47,449 2,606 0 693 9,422 Land Development - Non Residential 21,000 16,261 0 789 0 3,950 Commercial Construction Loans - Residential 20,605 13,725 1,080 96 606 5,098 Commercial Construction Loans - Non Residential 35,087 28,788 3,086 0 0 3,213 Commercial Mortgage Loans 549,145 523,047 4,616 5,748 5,021 10,713 Residential Mortgages Loans 54,466 51,408 0 1,472 144 1,442 Totals $943,635 $874,281 $13,145 $12,695 $7,319 $36,195 (In thousands) Other Related Data Allowance Year to Date Other Real For Loan Net Charge- Estate Losses Offs Owned Consumer Loans $339 $165 $70 Commercial Loans 890 3,096 280 Land Development - Residential 5,021 0 1,133 Land Development - Non Residential 1,923 0 343 Commercial Construction Loans - Residential 2,780 0 1,227 Commercial Construction Loans - Non Residential 1,118 58 0 Commercial Mortgage Loans 4,049 186 2,180 Residential Mortgages Loans 518 106 178 Totals 16,638 $3,611 $5,411 Unallocated 0 Total $16,638 Loan Information at March 31, 2008 (In thousands) Loan Detail Accruing Loans 30 to 89 90+ days Non- 3/31/08 Current TDR past due past due Accrual Consumer Loans $34,494 $33,484 $0 $395 $453 $162 Commercial Loans 169,659 163,648 917 2,834 711 1,549 Land Development - Residential 61,638 48,316 2,576 2,490 0 8,256 Land Development - Non Residential 16,372 12,422 0 0 3,950 0 Commercial Construction Loans - Residential 26,004 20,701 1,535 988 130 2,650 Commercial Construction Loans - Non Residential 38,885 32,420 3,259 3,206 0 0 Commercial Mortgage Loans 543,778 527,502 424 8,446 4,014 3,392 Residential Mortgages Loans 57,097 54,731 0 969 0 1,397 Totals $947,927 $893,224 $8,711 $19,328 $9,258 $17,406 (In thousands) Other Related Data Year to Date Allowance Net For Loan Charge- Other Real Losses Offs Estate Owned Consumer Loans $410 $93 $70 Commercial Loans 1,479 630 530 Land Development - Residential 2,040 0 422 Land Development - Non Residential 229 0 343 Commercial Construction Loans - Residential 562 6 2,334 Commercial Construction Loans - Non Residential 546 0 0 Commercial Mortgage Loans 4,804 (1) 2,484 Residential Mortgages Loans 630 26 0 Totals 10,700 $754 $6,183 Unallocated 49 Total $10,749 DATASOURCE: Fidelity Bank CONTACT: Michael J. Ross, President & CEO, +1-313-565-5700, or Jeffrey L. Karafa, CFO, +1-313-381-3200

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