Dearborn Bancorp Inc. (DEAR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Dearborn Bancorp Inc. has a market cap of $17.22 million; its shares were traded at around $2.24 with and P/S ratio of 0.32. DEAR is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
Other costs related to non-performing assets during the three months ended March 31, 2010 amounted to $1,702,000, compared to $1,086,000 during the same period in 2009, an increase of $576,000 or 57%. These costs consisted of defaulted loan expense of $1,035,000 and write-downs on real estate owned of $656,000 during the three months ended March 31, 2010 compared to defaulted loan expense of $761,000 and write-downs on real estate owned of $354,000 during the three months ended March 31, 2009. Additionally, the Corporation recorded FDIC assessment expense in the amount of $950,000 during the three months ended March 31, 2010 compared to $348,000 during the three months ended March 31, 2009.
2010 Compared to 2009. As noted on the chart on the following page, net interest income for the three month period ended March 31, 2010 was $8,055,000, compared to $7,517,000 for the same period ended March 31, 2009, an increase of $538,000 or 7% for the period. This increase was caused primarily by the increasing spread between interest earning assets and interest bearing liabilities. The Corporations interest rate spread was 3.27% and 2.58% for the three month period ended March 31, 2010 and 2009, respectively. The Corporations interest rate margin was 3.47% and 2.93% for the three month period ended March 31, 2010 and 2009, respectively. The decline in the Corporation net interest spread and net interest margin was primarily due to the decline in the Banks cost on interest bearing liabilities.
2010 Compared to 2009. The provision for loan losses was $100,000 for the three month period ended March 31, 2010, compared to $10,727,000 for the same period in 2009, a decrease of $10,627,000 or 99%. The percentage of allowance for loan loss to loans was 3.72%, 4.22% and 2.07% at March 31, 2010, December 31, 2009 and March 31, 2009, respectively. The decline in this ratio during the three month period ended March 31, 2010 is due to net charge-offs of $4,937,000 were recorded during the three months ended March 31, 2010 compared to net charge-offs of $6,547,000 for the same period in 2009. However, specific allocations of $4,058,000 were recorded on these loans at December 31, 2009. These specific allocations were assigned because many of the charge-offs recorded during the first quarter of 2010 were based on information that was received in 2010 but was relevant to the fair value of the collateral at December 31, 2009. The remaining net charge-offs, which amount to $879,000 were on smaller balance loans that had a reserve for loan losses allocated to the loan based on their respective risk grading at December 31, 2009. As a result of these allocation recognized at December 31, 2009, it was determined no additional provision was needed related to these loans during the first quarter of 2010.
Non-accrual loans increased by $31,822,000 during the quarter ended March 31, 2010. This increase was due to the migration of primarily previously identified classified loans. Of this increase, all but approximately $2,600,000 were identified at December 31, 2009 as classified loans with reserves for losses established accordingly. While these loans were transferred to non-accrual status during the first quarter of 2010, the impact of these loans on the allowance for loan loss was reflected in the income statement for the year ended December 31, 2009 as these loans were previously identified as problem loans.
2010 Compared to 2009. Non-interest loss was ($59,000) for the three month period ended March 31, 2010, compared to non-interest income of $328,000 for the same period in 2009. The decrease in non-interest income was primarily due to the increase in write-downs on other real estate during 2010.
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Dearborn Bancorp Inc. has a market cap of $17.22 million; its shares were traded at around $2.24 with and P/S ratio of 0.32. DEAR is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The Corporation recorded provision for loan loss during the three months ended March 31, 2010 in the amount of $100,000, compared to $10,727,000 during the same period in 2009. Net charge-offs of $4,937,000 were recorded during the period. However, these loans had specific allocations of $4,058,000 in the allowance for loan loss at December 31, 2009. The percentage of allowance for loan loss to loans was 3.72% and 2.07% at March 31, 2010 and 2009, respectively.Other costs related to non-performing assets during the three months ended March 31, 2010 amounted to $1,702,000, compared to $1,086,000 during the same period in 2009, an increase of $576,000 or 57%. These costs consisted of defaulted loan expense of $1,035,000 and write-downs on real estate owned of $656,000 during the three months ended March 31, 2010 compared to defaulted loan expense of $761,000 and write-downs on real estate owned of $354,000 during the three months ended March 31, 2009. Additionally, the Corporation recorded FDIC assessment expense in the amount of $950,000 during the three months ended March 31, 2010 compared to $348,000 during the three months ended March 31, 2009.
2010 Compared to 2009. As noted on the chart on the following page, net interest income for the three month period ended March 31, 2010 was $8,055,000, compared to $7,517,000 for the same period ended March 31, 2009, an increase of $538,000 or 7% for the period. This increase was caused primarily by the increasing spread between interest earning assets and interest bearing liabilities. The Corporations interest rate spread was 3.27% and 2.58% for the three month period ended March 31, 2010 and 2009, respectively. The Corporations interest rate margin was 3.47% and 2.93% for the three month period ended March 31, 2010 and 2009, respectively. The decline in the Corporation net interest spread and net interest margin was primarily due to the decline in the Banks cost on interest bearing liabilities.
2010 Compared to 2009. The provision for loan losses was $100,000 for the three month period ended March 31, 2010, compared to $10,727,000 for the same period in 2009, a decrease of $10,627,000 or 99%. The percentage of allowance for loan loss to loans was 3.72%, 4.22% and 2.07% at March 31, 2010, December 31, 2009 and March 31, 2009, respectively. The decline in this ratio during the three month period ended March 31, 2010 is due to net charge-offs of $4,937,000 were recorded during the three months ended March 31, 2010 compared to net charge-offs of $6,547,000 for the same period in 2009. However, specific allocations of $4,058,000 were recorded on these loans at December 31, 2009. These specific allocations were assigned because many of the charge-offs recorded during the first quarter of 2010 were based on information that was received in 2010 but was relevant to the fair value of the collateral at December 31, 2009. The remaining net charge-offs, which amount to $879,000 were on smaller balance loans that had a reserve for loan losses allocated to the loan based on their respective risk grading at December 31, 2009. As a result of these allocation recognized at December 31, 2009, it was determined no additional provision was needed related to these loans during the first quarter of 2010.
Non-accrual loans increased by $31,822,000 during the quarter ended March 31, 2010. This increase was due to the migration of primarily previously identified classified loans. Of this increase, all but approximately $2,600,000 were identified at December 31, 2009 as classified loans with reserves for losses established accordingly. While these loans were transferred to non-accrual status during the first quarter of 2010, the impact of these loans on the allowance for loan loss was reflected in the income statement for the year ended December 31, 2009 as these loans were previously identified as problem loans.
2010 Compared to 2009. Non-interest loss was ($59,000) for the three month period ended March 31, 2010, compared to non-interest income of $328,000 for the same period in 2009. The decrease in non-interest income was primarily due to the increase in write-downs on other real estate during 2010.
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