Item 8.01. Other Events
On November 7, 2008, Dearborn Bancorp, Inc. (the "Company") applied to
participate in the United States Department of the Treasury's TARP Capital
Purchase Program under the Emergency Economic Stabilization Act of 2008. On
December 19, 2008, the Company withdrew its application for the following
reasons:
1) Downward changes in the Prime Rate would require the capital acquired to be
leveraged with loan growth and margins beyond realistic expectations;
2) Further decline in our stock price since our application date would cause
the warrants to be issued to double the dilution of existing shareholders;
and
3) Concerns about the ability of the U. S. Government to modify the agreements
at a later date.
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