Dearborn Bancorp Inc. (DEAR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Dearborn Bancorp Inc. has a market cap of $12.84 million; its shares were traded at around $1.67 with and P/S ratio of 0.24. DEAR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The Corporation reported provision for loan losses of $500,000 for the three month period ended September 30, 2010, compared to $14,185,000 for the same period in 2009, a decrease of $13,685,000 or 96%. The provision for loan losses were primarily due to net charge-offs during the three month ended September 30, 2010. Net charge-offs during the third quarter of 2010 amounted to $2,243,000. The charge-offs recorded during the third quarter of 2010 had allocations of $1,799,000 in the allowance for loan loss as of June 30, 2010. The Corporation also reported write-downs on real estate of $960,000 for the three months ended September 30, 2010, compared to $639,000 for the same period in 2009, an increase of $321,000 or 50%.
The Corporation reported provision for loan losses of $12,403,000 for the nine month period ended September 30, 2010, compared to $38,522,000 for the same period in 2009, a decrease of $26,119,000 or 68%. The provision for loan losses were primarily due to net charge-offs during the period. However, certain loans that were charged off during 2010 had specific allocations of $4,058,000 in the allowance for loan loss at December 31, 2009. Therefore, the charge-off of these loans was already recognized in the allowance for loan losses and did not require a provision for loan loss. Additionally, charge-offs amounting to $3,667,000 were due to a change in the methodology utilized in the valuation of developed residential building lots. This change was related to the evaluation of appraisals of this type of collateral, where the appraised value of developed residential building lots was required to be discounted based on the absorption factor associated with the collateral. The Corporation reported write-downs on real estate of $5,309,000 for the nine months ended September 30, 2010, compared to $2,499,000 for the same period in 2009, an increase of $2,810,000 or 112%. Write-downs to real estate in the amount of $1,581,000 were due to a change in the methodology utilized in the valuation of developed residential building lots. This change was related to the evaluation of appraisals of this type of collateral, where the appraised value of developed residential building lots was required to be discounted based on the absorption factor associated with the collateral. The remaining write-downs on real estate were due to the decline in collateral values during 2010.
Additionally, the Corporation fully amortized the intangible assets at a cost of $4,195,000 during the nine months ended September 30, 2009. The Corporation reported FDIC assessment expense of $3,150,000 for the nine months ended September 30, 2010 compared to $1,853,000 during the same period in 2009, an increase of $1,297,000 or 70%. The Corporation also reported income tax expense of $100,000 during the nine months ended September 30, 2010, compared to $13,460,000 during the same period in 2009. Income tax expense during the nine months ended September 30, 2009 was due to a non-cash charge of $26,976,000 that was due to the recording of a valuation allowance for the entire amount of the Corporations net tax deferred asset and income tax benefit of $13,516,000 that was due to the pre-tax loss recorded during the nine months ended September 30, 2009.
2010 Compared to 2009. As noted on the chart on the following page, net interest income for the three and nine month periods ended September 30, 2010 was $8,750,000 and $25,261,000, compared to $7,826,000 and $22,880,000 for the same periods in 2009, an increase of $924,000 or 12% for the three month period and $2,381,000 or 10% for the nine month period. This increase was caused primarily by the increasing spread between interest earning assets and interest bearing liabilities. The increase in the Corporations net interest spread and net interest margin was primarily due to the decline in the cost on interest bearing liabilities. The Corporations interest rate margin was 3.89% and 3.67% for the three and nine month periods ended September 30, 2010 compared to 3.24% and 3.05% for the same periods in 2009. The Corporations interest rate spread was 3.74% and 3.50% for the three and nine month periods ended September 30, 2010 compared to 2.93% and 2.71% for the same periods in 2009.
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Dearborn Bancorp Inc. has a market cap of $12.84 million; its shares were traded at around $1.67 with and P/S ratio of 0.24. DEAR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The Corporation recorded net income of $631,000 during the three months ended September 30, 2010, compared to a net loss of ($40,045,000) during the same period during 2009. The Corporation recorded a net loss of ($11,870,000) during the nine months ended September 30, 2010, compared to a net loss of ($55,369,000) during the same period during 2009, a decrease in the net loss of $43,499,000 or 79%. The losses experienced during these periods were primarily due to the provision for loan losses and expenses related to the carrying costs of non-performing assets.The Corporation reported provision for loan losses of $500,000 for the three month period ended September 30, 2010, compared to $14,185,000 for the same period in 2009, a decrease of $13,685,000 or 96%. The provision for loan losses were primarily due to net charge-offs during the three month ended September 30, 2010. Net charge-offs during the third quarter of 2010 amounted to $2,243,000. The charge-offs recorded during the third quarter of 2010 had allocations of $1,799,000 in the allowance for loan loss as of June 30, 2010. The Corporation also reported write-downs on real estate of $960,000 for the three months ended September 30, 2010, compared to $639,000 for the same period in 2009, an increase of $321,000 or 50%.
The Corporation reported provision for loan losses of $12,403,000 for the nine month period ended September 30, 2010, compared to $38,522,000 for the same period in 2009, a decrease of $26,119,000 or 68%. The provision for loan losses were primarily due to net charge-offs during the period. However, certain loans that were charged off during 2010 had specific allocations of $4,058,000 in the allowance for loan loss at December 31, 2009. Therefore, the charge-off of these loans was already recognized in the allowance for loan losses and did not require a provision for loan loss. Additionally, charge-offs amounting to $3,667,000 were due to a change in the methodology utilized in the valuation of developed residential building lots. This change was related to the evaluation of appraisals of this type of collateral, where the appraised value of developed residential building lots was required to be discounted based on the absorption factor associated with the collateral. The Corporation reported write-downs on real estate of $5,309,000 for the nine months ended September 30, 2010, compared to $2,499,000 for the same period in 2009, an increase of $2,810,000 or 112%. Write-downs to real estate in the amount of $1,581,000 were due to a change in the methodology utilized in the valuation of developed residential building lots. This change was related to the evaluation of appraisals of this type of collateral, where the appraised value of developed residential building lots was required to be discounted based on the absorption factor associated with the collateral. The remaining write-downs on real estate were due to the decline in collateral values during 2010.
Additionally, the Corporation fully amortized the intangible assets at a cost of $4,195,000 during the nine months ended September 30, 2009. The Corporation reported FDIC assessment expense of $3,150,000 for the nine months ended September 30, 2010 compared to $1,853,000 during the same period in 2009, an increase of $1,297,000 or 70%. The Corporation also reported income tax expense of $100,000 during the nine months ended September 30, 2010, compared to $13,460,000 during the same period in 2009. Income tax expense during the nine months ended September 30, 2009 was due to a non-cash charge of $26,976,000 that was due to the recording of a valuation allowance for the entire amount of the Corporations net tax deferred asset and income tax benefit of $13,516,000 that was due to the pre-tax loss recorded during the nine months ended September 30, 2009.
2010 Compared to 2009. As noted on the chart on the following page, net interest income for the three and nine month periods ended September 30, 2010 was $8,750,000 and $25,261,000, compared to $7,826,000 and $22,880,000 for the same periods in 2009, an increase of $924,000 or 12% for the three month period and $2,381,000 or 10% for the nine month period. This increase was caused primarily by the increasing spread between interest earning assets and interest bearing liabilities. The increase in the Corporations net interest spread and net interest margin was primarily due to the decline in the cost on interest bearing liabilities. The Corporations interest rate margin was 3.89% and 3.67% for the three and nine month periods ended September 30, 2010 compared to 3.24% and 3.05% for the same periods in 2009. The Corporations interest rate spread was 3.74% and 3.50% for the three and nine month periods ended September 30, 2010 compared to 2.93% and 2.71% for the same periods in 2009.
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