Fidelity Bank Dearborn, MI

Fidelity Bank Dearborn, MI was founded in 1994.  They entered into a consent agreement with the FDIC on 2/12/10.  They were cited for poor asset quality, earnings, liquidity and management.  The Texas ratio is 138%.

The company has assets of $913MM, loans of $710MM and equity of $35MM.

The problem loans consisted of $15MM 30-90 days past due, $89MM on non accrual with $19MM in OREO.

NI was ($13MM) in FY10, ($50MM), FY09 and ($30MM) in FY08.  Their financial performance wiped out the equity base by 214% in 3 years, going from $110MM in FY08 to $35MM in FY10.

Based on the levels of non accruals, they could be technically insolvent.

Despite this dismal performance, the executive compensation was $1MM in FY10.

The stock is delisted, with a market capitalization of $11M.

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