<PAGE>
                                                                      EXHIBIT 13



                             DEARBORN BANCORP, INC.


                               AND ITS SUBSIDIARY


                           COMMUNITY BANK OF DEARBORN





                                      2001
                                  ANNUAL REPORT
<PAGE>
                             DEARBORN BANCORP, INC.

                               AND ITS SUBSIDIARY

                           COMMUNITY BANK OF DEARBORN
<Table>
<Caption>
CONTENTS
<S>                                                                 <C>
     Corporate Information                                           3

     Chairman's and President's Letter to Stockholders               4

     Summary of Selected Financial Data                              6

     Report of Independent Auditors                                  7

     Consolidated Balance Sheets                                     8

     Consolidated Statements of Income                               9

     Consolidated Statements of Changes in Stockholders' Equity     10

     Consolidated Statements of Cash Flows                          12

     Notes to Consolidated Financial Statements                     13

     Management's Discussion and Analysis                           36

     Dearborn Bancorp, Inc. Directors and Officers                  51

     Community Bank of Dearborn Officers                            52

     Community Bank of Dearborn Subsidiaries                        53

     Investor Information                                           55
</Table>

                                       2
<PAGE>
                             DESCRIPTION OF BUSINESS

DEARBORN, BANCORP, INC.

Dearborn Bancorp, Inc. (the "Parent Company" and, together with its subsidiary,
the "Corporation") is a registered bank holding company which was incorporated
on September 30, 1992. The primary purpose of the holding company is to own and
operate the subsidiary bank, Community Bank of Dearborn (the "Bank").


COMMUNITY BANK OF DEARBORN

The Bank was incorporated on June 28, 1993 and began operations as a state
chartered commercial bank on February 28, 1994 from its main office located on
Michigan Avenue in Dearborn. Subsequently, branch offices were opened in
Dearborn Heights and Plymouth Township. On May 14, 2001, a fourth office located
on Canton Center Road, south of Ford Road in Canton Township, Michigan was
opened. On December 19, 2001, a fifth office located on River Ridge Drive and
Hall Road in Clinton Township was opened. On May 1, 2001, the Bank also
established Community Bank Mortgage, Inc., a mortgage company that originates
and holds commercial and residential mortgage loans.

The Bank offers a wide range of financial products and services. These include
checking accounts, savings accounts, money market accounts, certificates of
deposit, business checking, direct deposit, ATM services, telephone banking
services, loan services (commercial, consumer, real estate mortgages),
travelers' checks, cashiers' checks, wire transfers, safe deposit boxes,
collection services, and night depository service. The Bank does not have a
trust department.


                              [DEAR NASDAQ LISTED LOGO]


                    QUARTERLY COMMON STOCK PRICE INFORMATION

<TABLE>
<CAPTION>
                                                                  ------------------------------
                                                                  HIGH         LOW         CLOSE
                                                                  ------------------------------
<S>                                                               <C>          <C>         <C>
2001
-----------------------------------------------------
First quarter                                                     $8.62        $7.71       $8.16
Second quarter                                                     9.93         8.18        9.53
Third quarter                                                     12.03         9.54       11.39
Fourth quarter                                                    12.10        11.30       11.55

                                                                  ------------------------------
2000
-----------------------------------------------------
First quarter                                                     $6.80        $5.33       $6.07
Second quarter                                                     7.26         5.84        6.12
Third quarter                                                      7.60         5.78        7.14
Fourth quarter                                                     8.16         6.92        7.88
</TABLE>

                                       3
<PAGE>

To Our Shareholders:

     All of us associated with Dearborn Bancorp, Inc., particularly your
Directors and Executive Officers, are very pleased to report that our
Corporation had another exceptional year in 2001. Earnings, assets, deposits and
loans all reached new record levels and our growth continued at a most
satisfactory pace.

     Net income for the twelve months ended December 31, 2001, was $1,539,000 or
$0.62 per fully diluted common share. In the same period of 2000, net income was
$1,211,000 or $0.46 per diluted share, making the year-to-year improvement in
net income and earnings per share 27.09 percent and 34.78 percent, respectively.
The increase in earnings per share was greater than the increase in net income
because of a reduction in the average number of shares outstanding resulting
from recent Stock Repurchase Programs.

     The Corporation's total assets at year-end were $226,865,000, 17.01 percent
more than they had been one year earlier when they were $193,878,000. The $200
million milestone was passed as the seventh anniversary of the opening of
Community Bank of Dearborn was being observed during the first quarter. Our rate
of growth for all of 2001 was somewhat lower than it had been in previous years
as a consequence of our strategic response to extremely low interest rates and
the slowing economy. We shifted our focus from attracting new deposits to
keeping those that we already had. We did not believe that it would be prudent
in this environment to pay significantly higher rates on new deposits than those
prevailing in the marketplace. Instead, we placed greater emphasis on
originating new loans and improving our net interest income, which was up more
than 30 percent.

     Still, total deposits were up 8.14 percent to $177,481,000 during the year.
Total loans, on the other hand, were up 41.21 percent to $180,892,000. Although
we made a major effort to increase loan volume, we did not lower our credit
standards. Consequently, we ended the year with an Allowance for Loan Losses of
$1,922,000 or 1.06 percent of total loans other than mortgages held for sale. At
December 31, 2000, the ratio was 0.98 percent of total loans. Moreover,
delinquent loans, ranging from those simply more than 30 days past due to those
classified as non-performing, constituted just 0.65 percent of total loans.

     This strong growth and earning performance provided direct benefits to our
shareholders. In June and December, we distributed two five percent stock
dividends, increasing the holdings of shareholders who neither bought nor sold
stock by 10.25 percent. Over the course of the year, the market price of
Dearborn Bancorp common stock rose from $7.88 per share on January 1 to $11.55
on December 31. After considering the two stock dividends, this represented a
61.60 percent increase in the market value of our stock. Inasmuch as the market
value of our shares and their book value are now approximately the same, we have
discontinued purchases under our Share Repurchase Program. In the foreseeable
future, we do not contemplate repurchasing shares at a price greater than their
book value.

     Our return on average total assets for 2001 was 0.76 percent compared to a
return of 0.72 percent in 2000. Needless to say, our long-term goal is to earn a
return well above the one percent "standard of excellence" for community banks.
At this stage of our corporate development, we are still investing heavily in
expanding our market area. This course of action results in steadily increasing
overhead as we add offices and personnel to serve more customers. In due course,
these expansion efforts will have less impact on our non-interest expenses and
allow them to fall more in line with those of our peers.

     During the past year, we opened two new banking offices. One is in Canton
Township and one is in Clinton Township in Macomb County. We added 3,000 square
feet of office space at our Main Office to house an expanding Commercial Loan
Department. We also added 18 persons to the staff, including Steve Tarczy and
Sam Lochricchio as President, Northeast region and Senior Vice-President,
respectively. These two seasoned Macomb County bankers will manage our new
Clinton Township office.

     We have also continued to upgrade our technological capabilities. A new
proof system will allow us to process an ever-increasing volume of checks faster
and more efficiently. We also acquired a new check imaging system that will
allow us to store many checks as digital images. We will never completely
eliminate the use of paper documents. Optical scanning, however, will allow us
to dramatically reduce the volume of paper that we must hold in our files while
it speeds up the retrieval of documents.

                                       4
<PAGE>
     We also introduced a new Telephone Banking Service and installed our first
three Automatic Teller Machines. Telephone banking is available to all of our
customers, wherever they do business. The ATMs are located at our Dearborn Main
Office and our offices in Plymouth and Canton Townships. These enhancements are
primarily intended to improve service to our customers but the revenue we derive
from the use of our ATMs by non-customers has provided a modest augmentation to
our non-interest income.

     And so, following a particularly good performance in 2001, we are
optimistic that our favorable long-term trends will continue in 2002. The
consensus of professional economists that we respect is that the economy will
start to grow again by mid-year, if it has not already started to do so. We
expect a gradual rise in interest rates over the course of the coming year.
During the first half, we do not expect this to have a particularly significant
effect on our operations. If, however, our cost of funds increases somewhat
faster than the yields on our loans and investments, there could be a slightly
negative effect during the last half of the year. Overall, though, sustaining
our rate of growth in loans and deposits will remain our principal means of
improving earnings and financial performance.

     In closing, we encourage you to attend the Dearborn Bancorp, Inc., annual
meeting. It will be held at 4:00 PM on May 21, 2002 at Park Place in Dearborn,
Michigan. We look forward to seeing you there and to hearing your comments,
questions and suggestions.






                                   Sincerely,



          John E. Demmer                               Michael J. Ross
      Chairman of the Board                               President

                                       5
<PAGE>
                       SUMMARY OF SELECTED FINANCIAL DATA

The following selected consolidated financial and other data as of and for each
of the five years in the period ended December 31, 2001 should be read in
conjunction with the Consolidated Financial Statements and the Notes thereto and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations." The Consolidated Balance Sheets as of December 31, 2001 and 2000,
and the Consolidated Statements of Income for the years ended December 31, 2001,
2000 and 1999 are included elsewhere in this Annual Report.

<TABLE>
<CAPTION>
                                                    ---------------------------------------------------------------------------
                                                       2001             2000           1999            1998             1997
                                                    ---------------------------------------------------------------------------
                                                                  (In thousands, except share and per share data)
<S>                                                 <C>             <C>             <C>             <C>             <C>
OPERATIONS
Interest income                                        $14,585         $12,789          $9,677          $8,290           $5,404
Interest expense                                         7,405           6,733           4,735           4,466            2,998
                                                    ---------------------------------------------------------------------------
Net interest income                                      7,180           6,056           4,942           3,824            2,406
Provision for loan losses                                  920             510             772             120              164
                                                    ---------------------------------------------------------------------------
Net interest income after provision for
 loan losses                                             6,260           5,546           4,170           3,704            2,242
Total non-interest income                                1,460             542             558             533              312
Total non-interest expense                               5,379           4,259           3,804           2,941            2,089
                                                    ---------------------------------------------------------------------------
Net income before federal income tax
 expense (benefit)                                       2,341           1,829             924           1,296              465
Income tax expense (benefit)                               802             618             394             346             (145)
                                                    ---------------------------------------------------------------------------
Net income                                              $1,539          $1,211            $530            $950             $610
                                                    ===========================================================================
FINANCIAL CONDITION
Total assets                                          $226,865        $193,878        $152,698        $126,755          $86,653
Securities available for sale                           21,652          51,916          55,022          50,211           29,780
Federal Home Loan Bank stock                             1,000             450             381              --               --
Loans                                                  180,892         128,104          85,390          66,023           52,139
Deposits                                               177,481         164,121         118,875          97,610           75,397
Federal Home Loan Bank advances                         20,000              --           2,000              --               --
Other borrowings                                            --             467           5,493             517            2,037
Stockholders' equity                                    27,903          27,763          27,260          27,731            8,752

PER SHARE INFORMATION (1)
Net income per common share - basic                      $0.63           $0.46           $0.19           $0.41            $0.52
Net income per common share - diluted                    $0.62           $0.46           $0.19           $0.41            $0.51
Book value per common share                             $11.85          $11.11          $10.13          $10.18            $7.45
Average shares outstanding  - basic                  2,440,307       2,622,737       2,724,192       2,313,073        1,174,329
Average shares outstanding - diluted                 2,492,725       2,625,787       2,724,192       2,328,088        1,186,620
Shares outstanding at end of period                  2,354,810       2,499,293       2,691,564       2,725,232        1,174,329

OTHER DATA
Return on average assets                                  0.76%           0.72%           0.38%           0.81%            0.86%
Return on average equity                                  5.46%           4.41%           1.92%           4.15%            7.23%
Net interest margin                                       3.76%           3.74%           3.69%           3.41%            3.60%
Net interest spread                                       2.77%           2.41%           2.44%           2.03%            2.54%
Allowance for loan losses to total loans                  1.06%           0.98%           0.91%           0.95%            1.01%
Nonperforming assets to total assets                      0.36%           0.62%           0.19%           0.33%            0.02%
Stockholders' equity to total assets                     12.30%          14.32%          17.85%          21.88%           10.10%
Total interest expense to gross interest income          50.77%          52.65%          48.93%          53.87%           55.48%
Number of Offices                                            5               3               3               3                3
</TABLE>
----------
(1)  All share and per share amounts presented have been adjusted to reflect the
     issuance of stock dividends.

                                       6
<PAGE>
                         REPORT OF INDEPENDENT AUDITORS

Board of Directors and Stockholders
Dearborn Bancorp, Inc. and Subsidiary
Dearborn, Michigan

We have audited the accompanying consolidated balance sheets of Dearborn
Bancorp, Inc. and subsidiary as of December 31, 2001 and 2000 and the related
consolidated statements of income, changes in stockholders' equity, and cash
flows for the years then ended. These financial statements are the
responsibility of the Corporation's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Dearborn Bancorp, Inc. and subsidiary as of December 31, 2001 and 2000, and the
results of its operations and its cash flows for the years then ended, in
conformity with accounting principles generally accepted in the United States of
America.



                                             Crowe, Chizek and Company LLP


Grand Rapids, Michigan
February 6, 2002

                                       7
<PAGE>
                     DEARBORN BANCORP, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                               DECEMBER 31,
                                                  ------------------------------------
                                                    2001                       2000
                                                  --------                    --------
                                                    (In thousands, except share data)
<S>                                               <C>                         <C>
ASSETS
Cash and cash equivalents
  Cash and due from banks                           $3,600                      $2,300
  Federal funds sold                                 4,887                       6,334
  Interest bearing deposits with other banks         7,387                          --
                                                  --------                    --------
     Total cash and cash equivalents                15,874                       8,634

Mortgage loans held for sale                         2,915                       1,085
Securities available for sale                       21,652                      51,916
Federal Home Loan Bank stock                         1,000                         450
Loans
  Loans                                            180,892                     128,104
  Allowance for loan losses                         (1,922)                     (1,252)
                                                  --------                    --------
     Net loans                                     178,970                     126,852

Premises and equipment, net                          4,746                       3,159
Accrued interest receivable                          1,085                       1,534
Other assets                                           623                         248
                                                  --------                    --------
     Total assets                                 $226,865                    $193,878
                                                  ========                    ========

LIABILITIES
Deposits
  Non-interest bearing deposits                    $21,441                     $19,153
  Interest bearing deposits                        156,040                     144,968
                                                  --------                    --------
     Total deposits                                177,481                     164,121

Other liabilities
  Federal Home Loan Bank advances                   20,000                          --
  Mortgage payable                                      --                         467
  Accrued interest payable                             804                         826
  Other liabilities                                    677                         701
                                                  --------                    --------
     Total liabilities                             198,962                     166,115
                                                  ========                    ========

CONTINGENCIES                                           --                          --

STOCKHOLDERS' EQUITY
  Common stock - 5,000,000 shares
   authorized, 2,354,810 and
   2,499,293 shares outstanding
   in 2001 and 2000, respectively                   27,675                      27,451
  Accumulated earnings                                 168                         471
  Accumulated comprehensive income (loss)               60                        (159)
                                                  --------                    --------
     Total stockholders' equity                     27,903                      27,763
                                                  --------                    --------
     Total liabilities and
      stockholders' equity                        $226,865                    $193,878
                                                  ========                    ========
</TABLE>

The accompanying notes are and integral part of these consolidated financial
statements.

                                       8
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

                        CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                                             YEAR ENDED DECEMBER 31,
                                                                                -------------------------------------------------
                                                                                   2001              2000                 1999
                                                                                ---------          ---------            ---------
                                                                                 (In thousands, except share and per share data)
<S>                                                                             <C>                <C>                  <C>
Interest income
  Interest on loans, including fees                                               $12,352             $9,436               $6,302
  Interest on securities available for sale                                         1,399              3,135                3,162
  Interest on deposits with banks                                                     249                 --                   --
  Interest on federal funds                                                           585                218                  213
                                                                                ---------          ---------            ---------
     Total interest income                                                         14,585             12,789                9,677

Interest expense
  Interest on deposits                                                              7,229              6,495                4,687
  Interest on other liabilities                                                       176                238                   48
                                                                                ---------          ---------            ---------
     Total interest expense                                                         7,405              6,733                4,735
     Net interest income                                                            7,180              6,056                4,942
Provision for loan losses                                                             920                510                  772
                                                                                ---------          ---------            ---------
Net interest income after provision for loan losses                                 6,260              5,546                4,170
                                                                                ---------          ---------            ---------
Non-interest income
  Service charges on deposit accounts                                                 262                214                  197
  Fees for other services to customers                                                 29                 31                   26
  Gain on the sale of loans                                                         1,011                342                  340
  Gain (loss) on the sale of securities                                               144                (47)                 (12)
  Other income                                                                         14                  2                    7
                                                                                ---------          ---------            ---------
     Total non-interest income                                                      1,460                542                  558

Non-interest expenses
  Salaries and employee benefits                                                    3,413              2,662                2,226
  Occupancy and equipment expense                                                     645                494                  446
  Advertising and marketing                                                           149                128                  101
  Stationery and supplies                                                             204                146                  164
  Professional services                                                               269                215                  333
  Data processing                                                                     204                170                  158
  FDIC insurance premiums                                                              30                 25                   12
  Other operating expenses                                                            465                419                  364
                                                                                ---------          ---------            ---------
     Total non-interest expenses                                                    5,379              4,259                3,804
                                                                                ---------          ---------            ---------
Income before federal income tax provision                                          2,341              1,829                  924
Income tax provision                                                                  802                618                  394
                                                                                ---------          ---------            ---------
Net income                                                                         $1,539             $1,211                 $530
                                                                                =========          =========            =========
Per share data:
Net income - basic                                                                  $0.63              $0.46                $0.19
Net income - diluted                                                                $0.62              $0.46                $0.19

Weighted average number of shares outstanding - basic                           2,440,307          2,622,737            2,724,192
Weighted average number of shares outstanding - diluted                         2,492,725          2,625,787            2,724,192
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.

                                       9
<PAGE>
                      DEARBORN BANCORP, INC AND SUBSIDIARY

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                  Years Ended December 31, 2001, 2000 and 1999
<TABLE>
<CAPTION>

                                                                                                  ACCUMULATED
                                                                                                     OTHER              TOTAL
                                                                    COMMON        ACCUMULATED    COMPREHENSIVE      STOCKHOLDERS'
                                                                    STOCK           DEFICIT       INCOME (LOSS)         EQUITY
                                                                   -------        -----------    --------------     -------------
                                                                                    (In thousands, except shares)
<S>                                                                <C>            <C>            <C>                <C>
Balance, January 1, 1999                                           $29,015          ($1,270)            ($14)          $27,731
  Repurchase of 33,687 shares of common stock                         (193)              --               --              (193)
  Net income                                                            --              530               --               530
  Other comprehensive loss
    Changes in net unrealized loss on
     securities held for sale                                           --               --           (1,236)           (1,236)
    Reclassification adjustment for losses included
     in net income                                                      --               --               12                12
                                                                   -------          -------           ------           -------
    Net change in net unrealized loss on
     securities available for sale                                      --               --           (1,224)           (1,224)
    Tax effects                                                                                          416               416
                                                                   -------          -------           ------           -------
  Other comprehensive loss                                              --               --             (808)             (808)
                                                                                                                       -------
                                                                                                                          (278)
                                                                   -------          -------           ------           -------
Balance, December 31, 1999                                         $28,822            ($740)           ($822)          $27,260
                                                                   -------          -------           ------           -------
  Repurchase of 198,997 shares of common stock                      (1,412)              --               --            (1,412)
  Exercise of stock options                                             41               --               --                41
  Net income                                                            --            1,211               --             1,211
  Other comprehensive income
    Changes in net unrealized loss on
     securities held for sale                                           --               --              958               958
    Reclassification adjustment for
     losses included in net income                                      --               --               47                47
                                                                                                      ------           -------
    Net change in net unrealized loss on
     securities available for sale                                      --               --            1,005             1,005
    Tax effects                                                                                         (342)             (342)
                                                                                                      ------           -------
  Other comprehensive income                                            --               --              663               663
                                                                                                                       -------
                                                                                                                         1,874
                                                                   -------          -------           ------           -------
Balance, December 31, 2000                                         $27,451             $471            ($159)          $27,763
                                                                   =======          =======           ======           =======
</TABLE>

                                       10
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                  Years Ended December 31, 2001, 2000 and 1999
<TABLE>
<CAPTION>

                                                                                                 ACCUMULATED
                                                                                                     OTHER            TOTAL
                                                                                 ACCUMULATED     COMPREHENSIVE    STOCKHOLDERS'
                                                                   STOCK           EARNINGS      INCOME (LOSS)       EQUITY
                                                                  -------        -----------     -------------    -------------
<S>                                                               <C>            <C>             <C>              <C>
Balance, January 1, 2001                                          $27,451             $471          ($159)          $27,763
  Repurchase of 160,941 shares of common stock                     (1,743)              --             --            (1,743)
  Exercise of stock options                                           125               --             --               125
  Stock dividend, declared May 2001                                 1,113           (1,113)            --                --
  Stock dividend, declared November 2001                              729             (729)            --                --
  Net income                                                           --            1,539             --             1,539
  Other comprehensive income
    Changes in net unrealized gain  on
     securities held for sale                                          --               --            475               475
    Reclassification adjustment for gains
     included in net income                                            --               --           (144)             (144)
                                                                                                     ----           -------
    Net change in net unrealized loss on
     securities available for sale                                     --               --            331               331
    Tax effects                                                                                      (112)             (112)
                                                                                                     ----           -------
  Other comprehensive income                                           --               --            219               219
                                                                                                                    -------
                                                                                                                      1,758
                                                                  -------           ------           ----           -------
Balance, December 31, 2001                                        $27,675             $168            $60           $27,903
                                                                  =======           ======           ====           =======
</TABLE>

The accompanying notes are an integral part of these consolidated statements.

                                       11
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                          YEARS ENDED DECEMBER 31,
                                                                               ---------------------------------------------
                                                                                2001               2000                1999
                                                                               -------            -------            -------
                                                                                               (In thousands)
<S>                                                                            <C>                <C>                <C>
Cash flows from operating activities
  Interest and fees received                                                   $15,034            $12,625             $9,240
  Interest paid                                                                 (7,427)            (6,376)            (4,604)
  Proceeds from sale of mortgages held for sale                                 73,824             23,833             21,707
  Origination of mortgages held for sale                                       (74,643)           (23,792)           (20,939)
  Taxes paid                                                                      (935)              (407)              (435)
  Cash paid to suppliers and employees                                          (4,952)            (3,578)            (3,050)
                                                                               -------            -------            -------
  Net cash provided by operating activities                                        901              2,304              1,919

Cash flows from investing activities
  Proceeds from the sale of securities available for sale                       24,160              3,962              3,670
  Proceeds from maturities of securities available for sale                     40,642              4,000             33,828
  Proceeds from repayments of securities available for sale                        404                 --                 --
  Purchases of securities available for sale                                   (34,575)            (4,000)           (43,669)
  Purchase of Federal Home Loan Bank stock                                        (550)               (69)              (381)
  Increase in loans, net of payments received                                  (53,038)           (42,753)           (19,985)
  Purchases of property and equipment                                           (1,979)            (1,068)              (275)
                                                                               -------            -------            -------
  Net cash used in investing activities                                        (24,936)           (39,928)           (26,812)

Cash flows from financing activities
  Net increase in non-interest bearing deposits                                  2,288              4,294              3,717
  Net increase in interest bearing deposits                                     11,072             40,952             17,548
  Increase (decrease) in federal funds purchased                                    --             (3,000)             3,000
  Proceeds from Federal Home Loan Bank advances                                 20,000                 --              2,000
  Repayments of Federal Home Loan Bank advances                                     --             (2,000)                --
  Principal payments on mortgage payable                                          (467)               (26)               (24)
  Repurchase of common stock                                                    (1,743)            (1,412)              (193)
  Sale of common stock                                                             125                 41                 --
                                                                               -------            -------            -------
  Net cash provided by financing activities                                     31,275             38,849             26,048

Increase in cash and cash equivalents                                            7,240              1,225              1,155
Cash and cash equivalents at the beginning of the period                         8,634              7,409              6,254
                                                                               -------            -------            -------
Cash and cash equivalents at the end of the period                             $15,874             $8,634             $7,409
                                                                               =======            =======            =======
Reconciliation of net income to net cash provided by
 operating activities
Net income                                                                      $1,539             $1,211               $530
  Adjustments to reconcile net income to net cash
   provided by operating activities
    Provision for loan losses                                                      920                510                772
    Depreciation and amortization expense                                          392                297                265
    Accretion of discount on investment securities                                 (31)                (6)                (5)
    Amortization of premium on investment securities                               139                107                130
    (Gain) loss on the sale of investment securities                              (144)                47                 12
    (Increase) decrease in mortgages held for sale                              (1,830)              (302)               428
    (Increase) decrease in interest receivable                                     449               (164)              (437)
    Increase (decrease) in interest payable                                        (22)               357                131
    (Increase) decrease in other assets                                           (487)               147                 51
    Increase (decrease) in other liabilities                                       (24)               100                 42
                                                                               -------            -------            -------
Net cash provided by operating activities                                         $901             $2,304             $1,919
                                                                               =======            =======            =======
</TABLE>

The accompanying notes are an integral part of these consolidated statements.

                                       12
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     A summary of the significant accounting policies consistently applied in
     the preparation of the accompanying consolidated financial statements
     follows.


     Basis of Presentation and Operations

     Dearborn Bancorp, Inc. (the "Corporation") was incorporated in Michigan on
     September 30, 1992. The Corporation's subsidiary, Community Bank of
     Dearborn (the "Bank"), began operations on February 28, 1994. The Bank
     operates five community banking offices in Dearborn, Dearborn Heights,
     Plymouth Township, Canton Township and Clinton Township in Michigan,
     offering a full range of banking services to individuals and businesses.
     The Bank also operates Community Bank Mortgage, Inc., a mortgage company
     that originates and services residential and commercial mortgage loans and
     Community Bank Insurance Agency, an insurance agency with limited
     activities.

     Its primary deposit products are checking, savings, and term certificate
     accounts, and its primary lending products are commercial, residential
     mortgage, and installment loans. Substantially all loans are secured by
     specific items of collateral including business assets, consumer assets and
     real estate. Commercial loans are expected to be repaid from cash flow from
     operations of businesses. Real estate loans are secured by both residential
     and commercial real estate. Other financial instruments which potentially
     represent concentrations of credit risk include deposit accounts in other
     financial institutions.

     While the Corporation's management monitors the revenue streams of the
     various products and services, operations are managed and financial
     performance is evaluated on a Corporation-wide basis. Accordingly, all of
     the Corporation's banking operations are considered by management to be
     aggregated in one reportable operating segment.


     Principles of Consolidation

     The consolidated financial statements include the accounts of Dearborn
     Bancorp, Inc. and its wholly-owned subsidiary, Community Bank of Dearborn
     and its wholly owned subsidiaries, Community Bank Mortgage, Inc. and
     Community Bank Insurance Agency, Inc. All significant intercompany
     transactions are eliminated in consolidation.


     Use of Estimates

     In the preparation of financial statements, management is required to make
     estimates and assumptions that affect reported amounts of assets and
     liabilities and the disclosure of contingent assets and liabilities at the
     date of the financial statements and revenues and expenses during the
     reporting period. Actual results could differ from those estimates.
     Estimates that are more susceptible to change in the near term include the
     allowance for loan losses and fair value of certain financial instruments.


     Cash Equivalents

     For purposes of the consolidated statements of cash flows, the Corporation
     considers cash on hand, cash due from banks, federal funds sold, and
     interest bearing deposits with other banks to be cash equivalents. Net cash
     flows are reported for loan and deposit transactions.

                                       13
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     Mortgage Loans Held for Sale

     Mortgage loans held for sale are carried at the lower of cost or market on
     an individual basis.


     Securities

     When securities are purchased and the Corporation intends to hold the
     securities for an indefinite period of time but not necessarily to
     maturity, they are classified as available for sale and carried at market
     value. Any decision to sell a security available for sale would be based on
     various factors, including significant movements in interest rates, changes
     in the maturity mix of the Corporation's assets and liabilities, liquidity
     demands, regulatory capital considerations, and other similar factors. Cost
     is adjusted for amortization of premiums and accretion of discounts to
     maturity. Unrealized gains and losses for available for sale securities are
     excluded from income and recorded as an amount, net of tax, in other
     comprehensive income and as a separate component of stockholders' equity
     until realized. All of the Corporation's securities are classified as
     available for sale. Gains and losses on sales are based on the amortized
     cost of the security and securities are written down to fair market value
     when a decline in fair value is not temporary.


     Loans


     Loans that management has the intent and ability to hold for the
     foreseeable future or until maturity or payoff are reported at the
     principal balance outstanding, net of unearned interest, deferred loan fees
     and costs, and an allowance for loan losses.


     Interest Income on Loans

     Interest on loans is accrued and credited to income based upon the
     principal amount outstanding. The accrual of interest on loans is
     discontinued when, in the opinion of management, there is an indication
     that the borrower may be unable to meet payments as they become due. Upon
     such discontinuance, all unpaid interest accrued is reversed. Payments
     received on such loans are reported as principal reductions. Interest
     accruals are generally resumed when all delinquent principal and interest
     has been brought current or the loan becomes both well secured and in the
     process of collection.


     Allowance for Loan Losses

     The allowance for loan losses is a valuation allowance for probable
     incurred credit losses, increased by the provision for loan losses and
     decreased by charge-offs less recoveries. Management estimates the
     allowance balance required using past loan loss experience, the nature and
     volume of the portfolio, information about specific borrower situations and
     estimated collateral values, economic conditions, and other factors.
     Allocations of the allowance may be made for specific loans, but the entire
     allowance is available for any loan that, in management's judgment, should
     be charged off. Loan losses are charged against the allowance when
     management believes the uncollectability of the loan balance is confirmed
     or when required by policy.

                                       14
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     Loan Impairment

     A loan is impaired when full payment under the loan terms is not expected.
     Impairment is evaluated in total for smaller-balance loans of similar
     nature such as residential mortgage and consumer loans, and on an
     individual loan basis for other loans. If a loan is impaired, a portion of
     the allowance is allocated so that the loan is reported, net, at the
     present value of estimated future cash flows using the loan's existing rate
     or at the fair value of collateral if repayment is expected solely from the
     collateral.


     Foreclosed Assets

     Assets acquired through or instead of loan foreclosure are initially
     recorded at the lower of cost or fair value when acquired, establishing a
     new cost basis. If fair value declines below the new cost basis, a
     valuation allowance is recorded through expense. Costs after acquisition
     are expensed.


     Premises and Equipment

     Land is carried at cost. Premises and equipment are stated at cost less
     accumulated depreciation. Depreciation is computed using the straight-line
     method over the estimated useful lives of the assets as follows:

          Building and improvements - 5 to 30 years
          Furniture and equipment - 5 to 10 years


     Servicing Assets

     Servicing assets represent purchased rights and the allocated value of
     retained servicing rights on loans sold. Servicing assets are expenses in
     proportion to, and over the period of, estimated net servicing revenues.
     Impairment is evaluated based on fair value of the assets, using groupings
     of the underlying loans as to interest rates and then, secondarily, as to
     geographic and prepayment characteristics. Fair value is determined using
     prices for similar assets with similar characteristics, when available, or
     based upon discounted cash flows using market-based assumptions. Any
     impairment of a grouping is reported as a valuation allowance. The
     Corporation does not have servicing assets at year-end 2001 or 2000 as the
     Corporation does not retain the servicing rights on loans sold.


     Long-Term Assets

     Premises and equipment and other long-term assets are reviewed for
     impairment when events indicate their carrying amount may not be
     recoverable from future undiscounted cash flows. If impaired, the assets
     are recorded at discounted amounts.


     Income Taxes

     The Corporation files a consolidated federal income tax return. The
     Corporation uses the asset and liability method of accounting for income
     taxes. Deferred tax assets and liabilities are recorded based on the
     difference between the tax bases of assets and liabilities and their
     carrying amounts for financial reporting purposes. Tax planning strategies
     are utilized in the computation of deferred federal income taxes. In
     addition, the current or deferred tax consequences of a transaction is
     measured by applying the provisions of enacted tax laws to determine the
     amount of taxes receivable or payable, currently or in future years.

                                       15
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     Stock Compensation

     Employee compensation expense under stock option plans is reported if
     options are granted below the market price. Pro forma disclosures of net
     income and earnings per share are shown using the fair value method to
     measure expense for options granted, using an option pricing model to
     estimate fair value.


     Stock Dividends

     The fair value of shares issued in stock dividends is transferred from
     retained earnings to common stock, to the extent of available retained
     earnings. Any excess of fair value over available retained earnings is
     considered a return of capital. All share and per share amounts are
     retroactively adjusted for stock dividends. The Corporation approved 5%
     stock dividends on May 15, 2001 and November 20, 2001 to all shareholders
     of record as of May 31, 2001 and December 7, 2001, respectively.


     Income Per Share

     Basic income per share is net income divided by the weighted average number
     of common shares outstanding during the period. Diluted income per share
     includes the dilutive effect of additional potential common shares issuable
     under stock options. Income per share is restated for all stock splits and
     dividends through the date of issue of the financial statements.


     Restrictions on Cash

     The Corporation was required to have $362,000 and $358,000 of cash on hand
     or on deposit with the Federal Reserve Bank to meet regulatory reserve and
     clearing requirements at year end 2001 and 2000. These balances do not earn
     interest.


     Dividend Restriction

     Banking regulations require maintaining certain capital levels and may
     limit the dividends paid by the Bank to the Corporation or by the
     Corporation to stockholders.


     Fair Value of Financial Instruments

     Fair values of financial instruments are estimated using relevant market
     information and other assumptions, as more fully disclosed in a separate
     note. Fair value estimates involve uncertainties and matters of significant
     judgment regarding interest rates, credit risk, prepayments, and other
     factors, especially in the absence of broad markets for particular items.
     Changes in assumptions or in market conditions could significantly affect
     the estimates.


     Reclassifications

     Some items in the prior year financial statements were reclassified to
     conform to the current presentation.

                                       16
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     Accounting Changes

     Beginning January 1, 2001, a new accounting standard requires all
     derivatives to be recorded at fair value. Unless designated as hedges,
     changes in these fair values are recorded in the income statement. Fair
     value changes involving hedges are generally recorded by offsetting gains
     and losses on the hedge and on the hedged item, even if the fair value of
     the hedged item is not otherwise recorded. Adoption of this standard on
     January 1, 2001, did not have a material effect on the consolidated
     financial statements.

     A new accounting standard requires all business combinations to be recorded
     using the purchase method of accounting for any transaction initiated after
     June 30, 2001. Under the purchase method, all identifiable tangible and
     intangible assets and liabilities of the acquired company must be recorded
     at fair value at date of acquisition, and the excess of cost over fair
     value of net assets be recorded as goodwill. Identifiable intangible assets
     must be separated from goodwill. Identifiable intangible assets with finite
     useful lives will be amortized under the new standard, whereas goodwill,
     both amounts previously recorded and future amounts purchased, will cease
     being amortized starting in 2002. Annual impairment testing will be
     required for goodwill with impairment being recorded if the carrying amount
     of goodwill exceeds its implied fair value. Adoption of this standard on
     January 1, 2002 did not have a material effect on the Corporation's
     financial statements.

                                       17
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE B - SECURITIES AVAILABLE FOR SALE

     The amortized cost and estimated market value of securities available for
     sale are as follows (in thousands):

<TABLE>
<CAPTION>
                                                                        DECEMBER 31, 2001
                                                  ---------------------------------------------------------------
                                                                      GROSS           GROSS             ESTIMATED
                                                  AMORTIZED        UNREALIZED       UNREALIZED            MARKET
                                                    COST              GAINS           LOSSES              VALUE
                                                  ---------        ----------       ----------          ---------
     <S>                                          <C>              <C>              <C>                 <C>
     US Treasury securities                         $2,069              $--              $--              $2,069
     Mortgage backed securities                      2,970               50               (7)              3,013
     Municipal securities                              125                1               --                 126
     Corporate debt securities                      12,397               73              (26)             12,444
     FHLMC preferred stock                           4,000               --               --               4,000
                                                   -------             ----             ----             -------
          Totals                                   $21,561             $124              $33             $21,652
                                                   =======             ====             ====             =======
</TABLE>

<TABLE>
<CAPTION>
                                                                         DECEMBER 31, 2000
                                                  ---------------------------------------------------------------
                                                                      GROSS           GROSS             ESTIMATED
                                                  AMORTIZED        UNREALIZED       UNREALIZED           MARKET
                                                    COST              GAINS           LOSSES              VALUE
                                                  ---------        ----------       ----------          ---------
     <S>                                          <C>              <C>              <C>                 <C>
     US Treasury securities                         $2,221              $--               ($6)            $2,215
     US Government agency securities                49,810               --              (233)            49,577
     Municipal securities                              125               --                (1)               124
                                                   -------              ---             -----            -------
          Totals                                   $52,156              $--             ($240)           $51,916
                                                   =======              ===             =====            =======
</TABLE>

     The amortized cost and estimated market value of securities available for
     sale at December 31, 2001 by contractual maturity are shown below (in
     thousands):

<TABLE>
<CAPTION>
                                                                    ESTIMATED
                                                       AMORTIZED     MARKET
                                                          COST        VALUE
                                                       ---------    ---------
     <S>                                               <C>          <C>
     Due in three months or less                         $1,351       $1,351
     Due in three months through one year                 3,628        3,644
     Due in one year through five years                   9,612        9,644
     Due in greater than ten years                        4,000        4,000
     Mortgage backed securities                           2,970        3,013
                                                        -------      -------
          Totals                                        $21,561      $21,652
                                                        =======      =======
</TABLE>

                                       18
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE B - SECURITIES AVAILABLE FOR SALE (Continued)

     Sales of available for sale securities for the years ended December 31, are
     as follows (in thousands):

<TABLE>
<CAPTION>
                                  2001        2000        1999
                                 -------     ------      ------
     <S>                         <C>         <C>         <C>
     Proceeds                    $24,160     $3,962      $3,670
     Gross gains                     150         --          --
     Gross losses                      6         47          12
</TABLE>

     Securities having a market value of $2,069,000 and $2,215,000 at December
     31, 2001 and 2000, respectively, were pledged to secure public deposits.
     Securities having a market value of $3,013,000 at December 31, 2001, were
     pledged to the Federal Home Loan Bank of Indianapolis to secure advances.


NOTE C - LOANS, NET

     Major categories of loans included in the portfolio at December 31 are as
     follows (in thousands):

<TABLE>
<CAPTION>
                                                                                     Percent
                                                          2001          2000         Increase
                                                        --------      --------       --------
     <S>                                                 <C>          <C>            <C>
     Consumer loans                                      $18,773       $18,649           0.66%
     Commercial, financial, & other                       28,920        26,588           8.77%
     Commercial real estate construction                  10,463         2,290         356.90%
     Commercial real estate mortgages                     90,200        49,900          80.76%
     Residential real estate mortgages                    32,536        30,677           6.06%
                                                        --------      --------         ------
                                                         180,892       128,104          41.21%
     Allowance for loan losses                            (1,922)       (1,252)
                                                        --------      --------
                                                        $178,970      $126,852
                                                        ========      ========
</TABLE>

                                       19
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE C - LOANS, NET (Continued)

     Certain directors and executive officers of the Corporation, including
     their related interests, were loan customers of the Bank during 2001 and
     2000. These loan transactions for the years ended December 31, are as
     follows (in thousands):

<TABLE>
<CAPTION>
                                            2001       2000
                                           ------     ------
     <S>                                   <C>        <C>
     Balance, beginning of year            $4,414     $2,247
     New loans during period                  373      2,711
     Repayments made during period         (1,381)      (544)
                                           ------     ------
     Balance, end of period                $3,406     $4,414
                                           ======     ======
</TABLE>

     Transactions in the allowance for loan losses for the years ended December
     31 are as follows (in thousands):

<TABLE>
<CAPTION>
                                                      2001         2000          1999
                                                     ------       ------         ----
     <S>                                             <C>          <C>            <C>
     Balance at beginning of year                    $1,252         $781         $627
     Charge-offs:
       Consumer loans                                   (43)         (21)         (55)
       Commercial loans                                (251)         (20)        (584)

     Recoveries:
       Consumer loans                                    32            2           21
       Commercial loans                                  12           --           --
                                                     ------       ------         ----
     Net charge-offs                                   (250)         (39)        (618)
     Additions charged to operations                    920          510          772
                                                     ------       ------         ----
     Balance at end of year                          $1,922       $1,252         $781
                                                     ======       ======         ====
</TABLE>

                                       20
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE C - LOANS, NET (Continued)

     The aggregate balances in impaired loans at December 31, are as follows (in
     thousands):

<TABLE>
<CAPTION>

                                                                       2001      2000
                                                                       ----      ----
     <S>                                                               <C>       <C>
     Impaired loans with no allocated allowance for loan losses         $--       $--
     Impaired loans with allocated allowance for loan losses            402       550
                                                                       ----      ----
          Total                                                        $402      $550
                                                                       ====      ====
     Amount of the allowance for loan loss allocated                    $86      $154
     Average of impaired loans during the year                         $427      $662
     Interest income recognized during impairment                       $--        $1
     Cash-basis interest income recognized                              $--       $19

</TABLE>

                                       21
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE D - PREMISES AND EQUIPMENT

     Premises and equipment are comprised of the following at December 31 (in
     thousands):

<TABLE>
<CAPTION>

                                       2001       2000
                                      ------    ------
     <S>                              <C>       <C>
     Land and improvements              $922      $748
     Building and improvements         3,423     2,286
     Furniture and equipment           2,014     1,345
                                      ------    ------
                                       6,359     4,379
     Less accumulated depreciation     1,613     1,220
                                      ------    ------
                                      $4,746    $3,159
                                      ======    ======
</TABLE>

     Depreciation expense for 2001, 2000 and 1999 amounted to $392,000, $297,000
     and $265,000, respectively. During 2001, the Corporation made expenditures
     of $1,979,000. The expenditures were primarily due to the construction of a
     branch office in Canton Township, Michigan and the expansion of the main
     office in Dearborn, Michigan.

     Rent expense of $80,000 and $49,000 was incurred during 2001 and 2000,
     respectively. Rental commitments under noncancellable operating leases are
     as follows, before considering renewal options that generally are present.

<TABLE>
                         <S>                <C>
                         2002                 $201,600
                         2003                  189,363
                         2004                  193,076
                         2005                  196,789
                         2006                  200,502
                         Thereafter            839,138
                                            ----------
                                            $1,820,468
                                            ==========
</TABLE>

                                       22
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE E - DEPOSITS

     Time deposits of $100,000 or more were $50,136,000 and $58,923,000 at
     December 31, 2001 and 2000, respectively.

     Scheduled maturities of time deposits at December 31, 2001 were as follows
     (in thousands):

<TABLE>
<CAPTION>
                       $100,000 AND OVER        LESS THAN $100,000       TOTAL
                       -----------------        ------------------      -------
     <S>               <C>                      <C>                     <C>
     2002                    $33,396                  $24,243           $57,639
     2003                     16,395                   13,799            30,194
     2004                        105                      438               543
     2005                        140                       17               157
     2006                        100                      170               270
                             -------                  -------           -------
         Totals              $50,136                  $38,667           $88,803
                             =======                  =======           =======
</TABLE>

     Related party deposits from directors and executive officers of the
     Corporation were approximately $2,252,000 and $3,268,000 at December 31,
     2001 and 2000, respectively.


NOTE F - MORTGAGE PAYABLE

     The mortgage payable to a bank was paid in full on October 12, 2001. This
     mortgage loan financed the purchase of the Bank's main office and was
     secured by the Bank's main office building. The mortgage payable would have
     matured on September 1, 2012 and required monthly installments of $4,925
     including interest at 6.82% per annum.


NOTE G - FEDERAL FUNDS PURCHASED

     The Bank has entered into federal funds credit lines with other banks in
     the amount of $4,500,000 to provide additional flexibility in the daily
     management of liquidity. There were no federal funds purchased at December
     31, 2001 and 2000, respectively.

                                       23
<PAGE>

                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE H - FEDERAL HOME LOAN BANK ADVANCES

     The Bank has entered into an Advances, Pledge and Security Agreement with
     the Federal Home Loan Bank of Indianapolis. Advances were $20 million and
     $0 at December 31, 2001 and 2000, respectively. These advances carry a
     fixed rate of interest and are secured by a blanket collateral agreement
     with the Federal Home Loan Bank of Indianapolis in the amount of
     $25,964,000 and securities available for sale in the amount of $3,013,000.
     Federal Home Loan Bank advances are comprised of the following at December
     31, 2001 (in thousands):

<TABLE>
<CAPTION>
                                                   WEIGHTED
                   ADVANCE                         AVERAGE
                    DATE              AMOUNT         RATE      MATURITY DATE
                   -------            -------      --------    -------------
                   <S>                <C>          <C>         <C>
                    2001              $10,000       4.280%         2006
                    2001                5,000       4.540%         2007
                    2001                5,000       4.680%         2008
                                      -------
                                      $20,000       4.450%
                                      =======
</TABLE>

     The Bank makes monthly interest payments with principal due at maturity.


NOTE I - INCOME TAXES

     The federal tax provision consists of the following (in thousands):

<TABLE>
<CAPTION>
                          2001       2000    1999
                         ------      ----    ----
     <S>                 <C>         <C>     <C>
     Current             $1,150      $768    $394
     Deferred              (348)     (150)      0
                         ------      ----    ----
                           $802      $618    $394
                         ======      ====    ====
</TABLE>

                                       24
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE I - INCOME TAXES (Continued)

The reconciliation of the effective income tax rate to the federal statutory tax
rate is as follows:

<TABLE>
<CAPTION>
                                             2001        2000      1999
                                             ----        ----      ----
     <S>                                     <C>         <C>       <C>
     Federal income tax rate                   34%         34%       34%
     Effect of net operating loss
      carryforward and valuation
      Allowance                                --          --        --
     Other, net                                --          --         9
                                             ----        ----      ----
     Effective tax rate                        34%         34%       43%
                                             ====        ====      ====
</TABLE>

The details of the net deferred tax asset are as follows at December 31, (in
thousands):

<TABLE>
<CAPTION>
                                                                     2001                 2000
                                                                     ----                 ----
     <S>                                                             <C>                  <C>
     Deferred tax assets
       Allowance for loan losses                                     $576                 $344
       Mark to market on loans held for sale                           14                    5
       Unrealized losses on securities
        available for sale                                             --                   81
     Other                                                             58                   19
                                                                     ----                 ----
          Total deferred tax assets                                   648                  449

     Deferred tax liabilities
       Accretion of discounts on
        securities available for sale                                 ($1)                 ($4)
       Deferred loan fees                                            (120)                (173)
       Deferred loan costs                                            (46)                  --
       Premises and equipment                                         (39)                 (57)
       Accrual to cash conversion                                     (41)                 (83)
       Unrealized gains on securities available for sale              (31)                  --
       Other                                                           (2)                  --
                                                                     ----                 ----
          Total deferred tax liabilities                             (280)                (317)
                                                                     ----                 ----
     Net deferred tax asset                                          $368                 $132
                                                                     ====                 ====
</TABLE>

The tax benefit of the net unrealized losses on securities available for sale,
was charged directly to its related component of stockholders' equity.

No valuation allowance on deferred tax assets was required at December 31, 2001
and 2000.

                                       25
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE J - FINANCIAL INSTRUMENTS AND OFF-BALANCE SHEET RISK

     Fair Value of Financial Instruments

     The estimated fair value of the Corporation's financial instruments at
     December 31, are as follows (in thousands):

<TABLE>
<CAPTION>
                                                                   2001                              2000
                                                       ---------------------------        ----------------------------
                                                                         ESTIMATED                           ESTIMATED
                                                       CARRYING            FAIR            CARRYING             FAIR
                                                        AMOUNT             VALUE            AMOUNT             VALUE
                                                       --------          ---------        ---------          ---------
     <S>                                               <C>               <C>              <C>                <C>
     Assets:
       Cash and cash equivalents                        $15,874           $15,874            $8,634            $8,634
       Loans held for sale                                2,915             2,954             1,085             1,101
       Securities                                        21,652            21,652            51,916            51,916
       Federal Home Loan Bank Stock                       1,000             1,000               450               450
       Loans                                            178,970           180,743           126,852           126,777
       Accrued interest receivable                        1,085             1,085             1,534             1,534

     Liabilities:
       Deposits                                        $177,481           178,345          $164,121          $164,863
       Federal Home Loan Bank advances                   20,000            18,801                --                --
       Mortgage payable                                      --                --               467               467
       Accrued interest payable                             804               804               826               826
</TABLE>

     The following methods and assumptions were used by the Corporation in
     estimating its fair value disclosure for financial instruments:

     Carrying amount is the estimated fair value for cash and cash equivalents,
     Federal Home Loan Bank stock, accrued interest receivable and payable,
     demand deposits, short-term debt, and variable rate loans or deposits that
     reprice frequently or fully. Security fair values are based on market
     prices or dealer quotes, and if no such information is available, on the
     rate and term of the security and information about the issuer. For fixed
     rate loans or deposits and for variable rate loans or deposits with
     infrequent repricing or repricing limits, fair value is based on discounted
     cash flows using current market rates applied to the estimated life and
     credit risk. Fair values for impaired loans are estimated using discounted
     cash flow analysis or underlying collateral values. Fair value of loans
     held for sale is based on market quotes. Fair value of debt is based on
     current rates for similar financing. The fair value of off-balance-sheet
     items is based on the current fees or cost that would be charged to enter
     into or terminate such arrangements, and was not considered material to
     this presentation.

                                       26
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE J - FINANCIAL INSTRUMENTS AND OFF BALANCE SHEET RISK (Continued)

     Off-Balance-Sheet Risk
     The Corporation is party to financial instruments with off-balance-sheet
     risk in the normal course of business to meet the financing needs of its
     customers and to reduce its own exposure to fluctuations in interest rates.
     These financial instruments include commitments to extend credit and
     financial guarantees. These instruments involve, to varying degrees,
     elements of credit and interest rate risk that are not recognized in the
     consolidated financial statements.

     Exposure to credit loss in the event of nonperformance by the other party
     to the financial instrument for commitments to extend credit and financial
     guarantees written is represented by the contractual notional amount of
     those items. The Corporation generally requires collateral to support such
     financial instruments in excess of the contractual notional amount of those
     instruments and, therefore, is in a fully collateralized position.

     The Corporation had outstanding loan commitments aggregating $52,991,000
     and $33,110,000 at December 31, 2001 and 2000, respectively. Loan
     commitments for variable rate loans were $35,777,000 and $23,252,000 at
     December 31, 2001 and 2000, respectively. Loan commitments for fixed rate
     loans were $17,214,000 and $9,858,000 at December 31, 2001 and 2000,
     respectively. A distribution of outstanding loan commitments by contractual
     maturity is shown below (in thousands):

     At December 31, 2001

<TABLE>
<CAPTION>
                                                                          COMMITMENT PERIOD
                                              -----------------------------------------------------------------------
                                              LESS THAN      ONE TO THREE    FOUR TO FIVE     OVER
                                              ONE YEAR           YEARS          YEARS       FIVE YEARS         TOTALS
                                              ---------      ------------    ------------   ----------        -------
     <S>                                      <C>            <C>             <C>            <C>               <C>
     Home equity lines of credit                   $--            $112          $146          $6,564           $6,822
     Residential loan commitments                4,767              --            --              --            4,767
     Standby letters of credit                     447               3            --              --              450
     Commercial lines of credit                 13,508           1,863            --              --           15,371
     Other commercial commitments               21,882           3,699            --              --           25,581
                                               -------          ------          ----          ------          -------
     Totals                                    $40,604          $5,677          $146          $6,564          $52,991
                                               =======          ======          ====          ======          =======
</TABLE>


     At December 31, 2000

<TABLE>
<CAPTION>
                                                                          COMMITMENT PERIOD
                                               -------------------------------------------------------------------------
                                               LESS THAN      ONE TO THREE   FOUR TO FIVE         OVER
                                                ONE YEAR         YEARS           YEARS         FIVE YEARS         TOTALS
                                               ---------      ------------   ------------      ----------        -------
     <S>                                       <C>            <C>            <C>               <C>               <C>
     Home equity lines of credit                    $75          $1,099          $2,894          $4,619           $8,687
     Residential loan commitments                 3,506              --              --              --            3,506
     Standby letters of credit                      170             175              --              30              375
     Commercial lines of credit                   8,305             279              40              --            8,624
     Other commercial commitments                11,634              --              49             235           11,918
                                                -------          ------          ------          ------          -------
     Totals                                     $23,690          $1,553          $2,983          $4,884          $33,110
                                                =======          ======          ======          ======          =======
</TABLE>

                                       27
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE J - FINANCIAL INSTRUMENTS AND OFF-BALANCE SHEET RISK (Continued)

     Commitments to extend credit are agreements to lend to a customer as long
     as there are no violations of any condition established in the contract.
     Commitments generally have fixed expiration dates or other termination
     clauses and may require a payment of a fee. Since portions of the
     commitments are expected to expire without being drawn upon, the total
     commitments do not necessarily represent future cash requirements. The
     Corporation evaluates each customer's credit worthiness on a case by case
     basis. The amount of collateral obtained upon extension of credit is based
     on management's credit evaluation of the customer.


NOTE K - EMPLOYEE BENEFIT PLANS

     On January 1, 1996, the Bank established a 401(k) plan for its employees.
     All employees are eligible to participate in the 401(k) after completion of
     age and service requirements. An employee can be enrolled as a participant
     on the first "Enrollment Date" after reaching age 21 and completing six
     months of service.

     Contributions to the plan by the Bank are discretionary. As of October 1,
     1998, the Corporation began matching 50% of the first 6% of employee
     contributions to the plan. Employer contributions vest 20% per year for
     five years. During 2001 and 2000, employer contributions were $49,000 and
     $40,000, respectively.


NOTE L - REGULATORY MATTERS

     The Corporation and Bank are subject to various regulatory capital
     requirements administered by the federal banking agencies. Failure to meet
     minimum capital requirements can initiate certain mandatory and possibly
     additional discretionary actions by regulators that, if undertaken, could
     have a direct material effect on the financial statements. Under capital
     adequacy guidelines and the regulatory framework for prompt corrective
     action, the Corporation and Bank must meet specific capital guidelines that
     involve quantitative measures of assets, liabilities, and certain
     off-balance-sheet items as calculated under regulatory accounting
     practices. The capital amounts and classifications are also subject to
     qualitative judgments by the regulators about components, risk weightings,
     and other factors.

     Quantitative measures established by regulation to ensure capital adequacy
     require the Corporation and Bank to maintain minimum amounts and ratios
     (set forth in the following table) of total and Tier 1 capital (as defined
     in the regulations) to risk-weighted assets (as defined), and of Tier 1
     capital (as defined) to average assets (as defined).

                                       28
<PAGE>

                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE L - REGULATORY MATTERS (Continued)

     The following is a presentation of the Corporation's and Bank's regulatory
     capital ratios (in thousands):

<TABLE>
<CAPTION>
                                                                                                         MINIMUM
                                                                                                  TO BE WELL CAPITALIZED
                                                                         MINIMUM FOR CAPITAL      UNDER PROMPT CORRECTIVE
                                                   ACTUAL                 ADEQUACY PURPOSES         ACTION REGULATIONS
                                         ------------------------      ----------------------     -----------------------
                                         AMOUNT             RATIO      AMOUNT           RATIO     AMOUNT            RATIO
                                         -------            -----      -------          -----     ------            -----
<S>                                      <C>                <C>        <C>              <C>       <C>               <C>
As of December 31, 2001
  Total capital (to risk
   weighted assets)
    Consolidated                         $29,765            14.2%      $16,735           8.0%     $20,939            10.0%
    Bank                                  20,170            10.1%       16,056           8.0%      20,090            10.0%
  Tier I capital
   (to risk weighted
   assets)
    Consolidated                          27,843            13.3%        8,367           4.0%      12,563             6.0%
    Bank                                  18,249             9.1%        8,028           4.0%      12,054             6.0%
  Tier I capital
   (to average assets)
    Consolidated                          27,843            12.9%        8,654           4.0%      10,817             5.0%
    Bank                                  18,249             8.9%        8,183           4.0%      10,229             5.0%

As of December 31, 2000
  Total capital
   (to risk weighted
   assets)
    Consolidated                         $29,174            22.5%      $10,353           8.0%     $12,941            10.0%
    Bank                                  16,159            12.9%       10,023           8.0%      12,529            10.0%
  Tier I capital
   (to risk weighted
   assets)
    Consolidated                          27,922            21.7%        5,176           4.0%       7,765             6.0%
    Bank                                  14,907            11.9%        5,012           4.0%       7,518             6.0%
  Tier I capital
   (to average assets)
    Consolidated                          27,922            15.3%        7,351           4.0%       9,188             5.0%
    Bank                                  14,907             8.7%        6,817           4.0%       8,522             5.0%
</TABLE>

     Federal and state banking laws and regulations place certain restrictions
     on the amount of dividends and loans a bank can pay to its parent company.
     Under the most restrictive of these regulations, the Bank could pay
     approximately $2,500,000 in dividends to the parent company without prior
     regulatory approval.

                                       29
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE M - STOCK REPURCHASE PLAN

     The Corporation authorized a Stock Repurchase Plan in November 1999 to
     repurchase 137,812 shares of common stock. In October 2000, a second Stock
     Repurchase Plan was authorized for the repurchase of an additional 137,812
     shares. In June 2001, a third Stock Repurchase Plan was authorized for the
     repurchase of an additional 131,250 shares. The annual shares repurchased
     and average cost is listed below:

<TABLE>
<CAPTION>
                               2001                  2000                  1999                 TOTAL
                       -------------------   -------------------   -------------------   -------------------
                        SHARES     AVERAGE    SHARES     AVERAGE   SHARES      AVERAGE   SHARES      AVERAGE
                       PURCHASED    COST     PURCHASED    COST     PURCHASED   COST      PURCHASED    COST
                       ---------   -------   ---------   -------   ---------   -------   ---------   -------
     <S>               <C>         <C>       <C>         <C>       <C>         <C>       <C>         <C>
     Stock                   --        --     104,125      $6.54     33,687     $5.73     137,812      $6.34
     Repurchase
     Plan #1

     Stock               42,941     $9.12      94,871      $7.71         --        --     137,812      $8.15
     Repurchase
     Plan #2

     Stock              118,000    $11.45          --         --         --        --     118,000     $11.45
     Repurchase
     Plan #3
                        -------    ------     -------      -----     ------     -----     -------     ------
     Totals             160,941    $10.83     198,996      $7.10     33,687     $5.73     393,624      $8.66
</TABLE>


NOTE N - STOCK OPTION PLAN

     Options to buy common stock are granted to officers and employees under a
     Stock Option Plan which provides for issue of up to 551,250 shares.
     Exercise price is the market price at date of grant. The maximum option
     term is ten years, and options vest fully after six months from the date of
     grant. If an option expires or terminates without having been exercised,
     such option becomes available for future grant under the Plan.

                                       30
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE N - STOCK OPTION PLAN (continued)

     A summary of the option activity is as follows:

<TABLE>
<CAPTION>
                                                                                                    WEIGHTED
                                                                                     WEIGHTED       AVERAGE
                                                     AVAILABLE                        AVERAGE      FAIR VALUE
                                                        FOR            OPTIONS       EXERCISE      OF OPTIONS
                                                       GRANT         OUTSTANDING       PRICE        GRANTED
                                                     ---------       -----------     --------      ----------
     <S>                                             <C>             <C>             <C>           <C>
     Outstanding at January 1, 1999                    193,875          87,262         $9.54
     Granted                                           (78,281)         78,281         10.19          $3.64
                                                      --------         -------        ------
     Balance at December 31, 1999                      115,594         165,543          9.85
     Additional shares made available                  270,113              --            --
     Granted                                           (76,628)         76,628          6.28           3.31
     Exercised                                              --          (6,615)         6.18
     Forfeited                                          31,037         (31,037)         9.74
                                                      --------         -------        ------
     Outstanding at December 31, 2000                  340,116         204,519          8.64
     Granted                                          (108,077)        108,077          8.17           3.59
     Exercised                                              --         (15,437)         8.05
                                                      --------         -------        ------
     Outstanding at December 31, 2001                  232,039         297,159         $8.50
                                                      ========         =======        ======
</TABLE>

     For the options outstanding at December 31, 2001, the range of exercise
     prices was $6.18 to $11.56 per share with a weighted-average remaining
     contractual term of 7.5 years. At December 31, 2001, 2000 and 1999,
     286,659, 204,519 and 165,543 options were exercisable at weighted average
     exercise prices of $8.40, $8.64 and $9.85 per share, respectively.

     Had compensation cost for stock options been measured using the fair value
     method of FASB Statement No. 123, net income and earnings per share would
     have been the pro forma amounts indicated below (in thousands, except per
     share data). The pro forma effects may increase in the future if more
     options are granted.


<TABLE>
<CAPTION>
                                        2001       2000        1999
                                       ------     ------      -----
     <S>                               <C>        <C>         <C>
     Net income
       As reported                     $1,539     $1,211       $530
       Pro forma                        1,173        958        245
     Basic income per share
       As reported                      $0.63      $0.46      $0.19
       Pro forma                         0.48       0.37       0.09
     Diluted income per share
       As reported                      $0.62      $0.46      $0.19
       Pro forma                         0.47       0.36       0.09
</TABLE>

                                       31
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE N - STOCK OPTION PLAN (continued)

     The pro forma effects are computed with option pricing models, using the
     following weighted average assumptions as of grant date.

<TABLE>
<CAPTION>
                                                2001       2000       1999
                                               -------    -------    -------
     <S>                                       <C>        <C>        <C>
     Risk-free interest rate                     5.12%      6.66%      4.94%
     Expected option life                      8 years    9 years    9 years
     Dividend yield                              0.00%      0.00%      0.00%
     Expected volatility of stock price         25.65%     26.81%     33.45%
</TABLE>
     All share and per share amounts have been adjusted for stock dividends.


NOTE O - INCOME PER SHARE

     The following is a reconciliation of the numerator and denominator of the
     basic and diluted income per share calculation for the years ended December
     31, 2001, 2000 and 1999 (in thousands, except share and per share data):

<TABLE>
<CAPTION>
                                                        2001                 2000                  1999
                                                      ---------            ---------            ---------
     <S>                                              <C>                  <C>                  <C>
     Basic
       Net income                                        $1,539               $1,211                 $530
       Weighted average common shares                 2,440,307            2,622,737            2,724,192
       Basic earnings per common share                    $0.63                $0.46                $0.19

     Diluted
       Net income                                        $1,539               $1,211                 $530
       Weighted average common shares                 2,440,307            2,622,737            2,724,192
        outstanding for basic earnings per
        common share

       Add: Dilutive effects of assumed                  52,418                3,050                   --
        exercise of stock options

       Average shares and dilutive potential
        common shares                                 2,492,725            2,625,787            2,724,192

       Dilutive earnings per common share                 $0.62                $0.46                $0.19
</TABLE>

     Stock options for 84,921 and 152,147 shares of common stock were not
     considered in computing diluted earnings per common share for 2001 and 2000
     because they were antidilutive. All share and per share amounts have been
     adjusted for stock dividends.

                                       32
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE P - PARENT ONLY CONDENSED FINANCIAL INFORMATION

     The condensed financial information that follows presents the financial
     condition of the parent company, Dearborn Bancorp, Inc., along with the
     results of its operations and its cash flows.

                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                            DECEMBER 31,
                                                          ----------------
                                                            2001      2000
                                                          -------   -------
                                                            (In thousands)
     <S>                                                  <C>       <C>
     ASSETS
       Cash and cash equivalents                           $1,316      $480
       Investment securities                                6,364    11,385
       Investment in subsidiary                            18,302    14,784
       Other assets                                         1,921     1,749
                                                          -------   -------
       Total assets                                       $27,903   $28,398
                                                          =======   =======

     LIABILITIES AND STOCKHOLDERS' EQUITY
       Mortgage payable                                       $--      $467
       Other liabilities                                       --       168
       Stockholders' equity                                27,903    27,763
                                                          -------   -------
       Total liabilities and
        stockholder's equity                              $27,903   $28,398
                                                          =======   =======
</TABLE>

                         CONDENSED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                   Years Ended December 31,
                                                 --------------------------
                                                  2001       2000      1999
                                                 ------     ------     ----
                                                        (In thousands)
<S>                                              <C>        <C>        <C>
Interest income                                    $507       $788     $852
Operating expenses                                 (309)      (387)    (424)
                                                 ------     ------     ----
Income before equity in
 undistributed income of subsidiary                 198        401      428
Equity in undistributed income
 of subsidiary                                    1,341        810      102
                                                 ------     ------     ----
     Net income                                  $1,539     $1,211     $530
                                                 ======     ======     ====
 </TABLE>

                                       33
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE P - PARENT ONLY CONDENSED FINANCIAL INFORMATION  (Continued)

                       CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                YEARS ENDED DECEMBER 31,
                                                          -------------------------------------
                                                            2001           2000           1999
                                                          -------         ------         ------
                                                                      (In thousands)
     <S>                                                  <C>             <C>            <C>
     Cash flows from operating activities
       Net income                                          $1,539         $1,211           $530
       Adjustments to reconcile net income
        to net cash provided by
        operating activities
         Equity in undistributed income
          of subsidiary                                    (1,341)          (810)          (102)
         Other                                                (42)            52              5
                                                          -------         ------         ------
     Net cash flows provided by
      operating activities                                    156            453            433

     Cash flows from investing activities
       Investment in subsidiary                            (2,000)        (2,000)        (2,000)
       Advances to subsidiary                                  --          2,000         (2,000)
       Purchases of securities, available for sale        (10,007)            --         (7,748)
       Maturity of securities, available for sale          11,089             --          8,375
       Sale of securities, available for sale               4,001             --          2,400
       Property and equipment acquired                       (318)            (4)            --
                                                          -------         ------         ------
     Net cash flows provided by (used in)
      investing activities                                  2,765             (4)          (973)

     Cash flows from financing activities
       Proceeds from sale of common stock                     125             41             --
       Repurchase of common stock                          (1,743)        (1,412)          (193)
       Reduction of mortgage payable                         (467)           (26)           (24)
                                                          -------         ------         ------
     Net cash flows (used in)
      financing activities                                 (2,085)        (1,397)          (217)

     Increase (decrease) in cash and
      cash equivalents                                        836           (948)          (757)
     Cash and cash equivalents at
      beginning of year                                       480          1,428          2,185
                                                          -------         ------         ------
     Cash and cash equivalents at end of year              $1,316           $480         $1,428
                                                          =======         ======         ======
     </TABLE>

                                       34
<PAGE>
                      DEARBORN BANCORP, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

                        DECEMBER 31, 2001, 2000 AND 1999

NOTE Q - QUARTERLY FINANCIAL DATA (UNAUDITED)

<TABLE>
<CAPTION>
                                                                      EARNINGS PER SHARE
                               INTEREST    NET INTEREST     NET      ---------------------
                                INCOME       INCOME        INCOME    BASIC   FULLY DILUTED
                               --------    ------------    ------    -----   -------------
                                          (In thousands, except per share data)
     <S>                       <C>         <C>             <C>       <C>     <C>
     2001
       First quarter            $3,670        $1,607        $320     $0.13       $0.13
       Second quarter            3,512         1,558         346      0.14        0.14
       Third quarter             3,681         1,893         401      0.16        0.16
       Fourth quarter            3,722         2,122         472      0.20        0.19

     2000
       First quarter            $2,725        $1,344        $211     $0.08       $0.08
       Second quarter            3,141         1,516         315      0.12        0.12
       Third quarter             3,307         1,571         331      0.12        0.12
       Fourth quarter            3,616         1,625         354      0.14        0.14
</TABLE>

                                       35
<PAGE>

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS

GENERAL

The Corporation was formed in 1992 and the Bank was formed in 1993. Principal
operations of the Bank commenced on February 28, 1994 when the Bank opened for
business at its main office. Subsequently, branch offices were opened in
Dearborn Heights and Plymouth Township. On May 14, 2001, the Bank opened its
fourth office, located at 1325 N. Canton Center Road, Canton Township, Michigan.
On December 19, 2001, the Bank opened its fifth office, located at 45000 River
Ridge Drive in Clinton Township, Michigan. The Bank also completed the formation
of Community Bank Mortgage, Inc., a mortgage company in May 2001. The Bank is
currently forming Community Bank Audit Services, Inc., a subsidiary that will
offer internal audit and compliance services. The formation of this subsidiary
is expected to be completed by March 31, 2002.


FORWARD LOOKING STATEMENTS

The following discussion 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 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 that could cause a difference between an ultimate actual
outcome and a preceding forward-looking statement.


RESULTS OF OPERATIONS

2001 Compared to 2000. The Corporation reported net income of $1,539,000 in 2001
compared to $1,211,000 in 2000, an increase of $328,000 or 27%. The
Corporation's increase in net income was primarily due to increases in gain on
the sale of loans, gain on the sale of investments and net interest income.
These increases were partially offset by an increase in salaries and employee
benefits.

2000 Compared to 1999. The Corporation reported net income of $1,211,000 in 2000
compared to $530,000 in 1999, an increase of $681,000 or 128%. The Corporation's
increase in net income was primarily due to an increase in net interest income
and a reduction in the provision for loan losses partially offset by an increase
in non-interest expense.

                                       36
<PAGE>
NET INTEREST INCOME

2001 Compared to 2000 Net interest income for the period ended December 31, 2001
was $7,180,000 compared to $6,056,000 for the period ended December 31, 2000, an
increase of $1,124,000 or 19%. The increase in net interest income was primarily
due to increases in the volume of interest earning assets and interest bearing
liabilities. The Corporation's net interest rate spread increased to 2.77% in
2001 from 2.41% in 2000, an increase of .36%. The increase in the net interest
rate spread was primarily due to the decrease in the cost of deposits. The
decrease in the cost of deposits was primarily due to the repricing of the
Bank's time deposits into other deposit products at a lower interest rate. The
Corporation's net interest margin increased to 3.76% in 2001 from 3.74% in 2000.

Average interest earning assets grew by $28.8 million between the periods while
interest bearing liabilities grew by $29.2 million. While management is
continually reviewing spreads and margins, future increases in the net interest
margin are primarily expected from volume growth in the higher yielding loan
portfolio and the diversification of the Bank's deposit structure. The primary
sources of funding for the expected growth in the loan portfolio will be excess
cash and cash equivalents, deposit growth, additional Federal Home Loan Bank
advances and the deployment of funds from the sale of securities available for
sale. During 2002, the Corporation is expecting continued improvement in
interest rate spread as a result of continuing to grow loan volume while
carefully managing growth in time deposits, statement savings, interest
checking, money market and business checking accounts.


2000 Compared to 1999. Net interest income for the period ended December 31,
2000 was $6,056,000 compared to $4,942,000 for the period ended December 31,
1999, an increase of $1,114,000 or 23%. This increase was caused primarily by an
increase in average earning assets of $28.2 million between the periods while
interest-bearing liabilities grew by $23.9 million.

The Corporation's interest rate spread decreased to 2.41% in 2000 from 2.44% in
1999. The Corporation's net interest margin increased in 2000 to 3.74% from
3.69% in 1999. The decrease in net interest spread was primarily the result of
increases in the cost of time deposits. The increase in net interest margin was
primarily the result of increases in the volume and improvements in the yield of
the loan portfolio and partially offset by the increasing volume and cost of
time deposits.

Average Balances, Interest Rates and Yields. Net interest income is affected by
the difference ("interest rate spread") between rates of interest earned on
interest earning assets and rates of interest paid on interest bearing
liabilities and the relative amounts of interest bearing liabilities and
interest earning assets. When the total of interest earning assets approximates
or exceeds the total of interest bearing liabilities, any positive interest rate
spread will generate net interest income. Financial institutions have
traditionally used interest rate spreads as a measure of net interest income.
Another indication of an institution's net interest income is its "net yield on
interest earning assets" or "net interest margin," which is net interest income
divided by average interest earning assets.

                                       37
<PAGE>
The following table sets forth certain information relating to the Corporation's
consolidated average interest earning assets and interest bearing liabilities
and reflects the average yield on assets and average cost of liabilities for the
periods indicated. Such yields and costs are derived by dividing income or
expense by the average daily balance of assets or liabilities, respectively, for
the periods presented. During the periods indicated, non-accruing loans, if any,
are included in the net loan category.

<TABLE>
<CAPTION>

                                              YEAR ENDED DECEMBER 31, 2001        YEAR ENDED DECEMBER 31, 2000
                                             -------------------------------     ------------------------------
                                             AVERAGE                 AVERAGE      AVERAGE               AVERAGE
                                             BALANCE     INTEREST     RATE        BALANCE    INTEREST    RATE
                                             --------    --------    -------     --------    --------   -------
                                                                       (In thousands)
<S>                                          <C>         <C>         <C>         <C>         <C>        <C>
Assets
  Interest bearing deposits with banks         $6,559       $249      3.80%           $--        $--      --%
  Federal funds sold                           13,807        585      4.24%         3,551        218    6.14%
  Securities available for sale                26,576      1,399      5.26%        54,330      3,135    5.77%
  Loans                                       143,926     12,352      8.58%       104,237      9,436    9.05%
                                             --------     ------      -----      --------     ------    -----
     Sub-total earning assets                 190,868     14,585      7.64%       162,118     12,789    7.89%
  Other assets                                 11,313                               7,129
                                             --------                            --------
     Total assets                            $202,181                            $169,247
                                             ========                            ========

Liabilities and stockholders' equity
  Interest bearing deposits                  $148,333     $7,229      4.87%      $119,238     $6,495    5.45%
  Other borrowings                              3,730        176      4.72%         3,611        238    6.59%
                                             --------     ------      -----      --------     ------    -----
     Sub-total interest
      bearing liabilities                     152,063      7,405      4.87%       122,849      6,733    5.48%
  Non-interest bearing deposits                20,584                              17,740
  Other liabilities                             1,354                               1,210
  Stockholders' equity                         28,180                              27,448
                                             --------                            --------
     Total liabilities and
      stockholders' equity                   $202,181                            $169,247
                                             ========                            ========

     Net interest income                                  $7,180                              $6,056
                                                          ======                              ======

     Net interest rate spread                                         2.77%                             2.41%
                                                                      =====                             =====
     Net interest margin on earning assets                            3.76%                             3.74%
                                                                      =====                             =====
</TABLE>

                                       38
<PAGE>
(Continued)

<TABLE>
<CAPTION>
                                                        YEAR ENDED DECEMBER 31, 1999
                                                    -----------------------------------
                                                    AVERAGE                     AVERAGE
                                                    BALANCE       INTEREST       RATE
                                                    --------      --------      -------
                                                               (In thousands)
<S>                                                 <C>           <C>           <C>
Assets
  Interest bearing deposits with banks                   $--          $--          --%
  Federal funds sold                                   3,973          213        5.36%
  Securities available for sale                       56,573        3,162        5.59%
  Loans                                               73,327        6,302        8.59%
                                                    --------       ------        -----
      Sub-total earning assets                       133,873        9,677        7.23%
  Other assets                                         6,525
                                                    --------
      Total assets                                  $140,398
                                                    ========

Liabilities and stockholders' equity
  Interest bearing deposits                          $98,185       $4,687        4.77%
  Other borrowings                                       753           48        6.37%
                                                    --------       ------        -----
      Sub-total interest bearing liabilities          98,938        4,735        4.79%
  Non-interest bearing deposits                       13,159
  Other liabilities                                      727
  Stockholders' equity                                27,574
                                                    --------
      Total liabilities and stockholders' equity    $140,398
                                                    ========

      Net interest income                                          $4,942
                                                                   ======
      Net interest rate spread                                                   2.44%
                                                                                 =====
      Net interest margin on earning assets                                      3.69%
                                                                                 =====
</TABLE>

                                       39
<PAGE>
Rate/Volume Analysis. The following table analyzes net interest income in terms
of changes in the volume of interest-earning assets and interest-bearing
liabilities and changes in yields and rates. The table reflects the extent to
which changes in the interest income and interest expense are attributable to
changes in volume (changes in volume multiplied by prior year rate) and changes
in rate (changes in rate multiplied by prior year volume). Changes attributable
to the combined impact of volume and rate have been allocated proportionately to
changes due to volume and changes due to rate.

<TABLE>
<CAPTION>
                                                                      2001/2000                             2000/1999
                                                               CHANGE IN INTEREST DUE TO:          CHANGE IN INTEREST DUE TO:
                                                         -----------------------------------       ----------------------------
                                                         AVERAGE         AVERAGE        NET        AVERAGE    AVERAGE      NET
                                                         BALANCE          RATE        CHANGE       BALANCE      RATE     CHANGE
                                                         -------        --------      ------       -------    -------    ------
                                                                                     (In thousands)
<S>                                                      <C>             <C>          <C>          <C>        <C>        <C>
Assets
  Interest bearing deposits with banks                      $249             $--        $249          $--       $--         $--
  Federal funds sold                                         435             (68)        367          (26)       31           5
  Investment securities, available for sale               (1,461)           (275)     (1,736)        (129)      102         (27)
  Loans                                                    3,406            (490)      2,916        2,798       336       3,134
                                                          ------           -----      ------       ------      ----      ------
Total earning assets                                      $2,629           ($833)     $1,796       $2,643      $469      $3,112
                                                          ======           =====      ======       ======      ====      ======
Liabilities
  Interest bearing deposits                               $1,418           ($684)       $734       $1,147      $661      $1,808
  Other borrowings                                             6             (68)        (62)         188        --         190
                                                          ------           -----      ------       ------      ----      ------
Total interest bearing liabilities                        $1,424           ($752)       $672       $1,335      $661      $1,998
                                                          ======           =====      ======       ======      ====      ======

     Net interest income                                                              $1,124                             $1,114
                                                                                      ======                             ======

     Net interest rate spread                                                          0.36%                             (0.03%)
                                                                                      ======                             ======

     Net interest margin on earning assets                                             0.02%                              0.05%
                                                                                      ======                             ======
</TABLE>


PROVISION FOR LOAN LOSSES

2001 Compared to 2000. The provision for loan losses was $920,000 in 2001,
compared to $510,000 in 2000, an increase of $410,000 or 80%. The increase was
primarily due to the provisions for increased loan volume. The provision for
loan losses is based upon management's assessment of relevant factors, including
types and amounts of non-performing loans, historical and anticipated loss
experience on such types of loans, the relevant change in the size and mix of
the loan portfolio and current and projected economic conditions. Management
currently is not aware of any performing, non-performing or impaired loans that
may result in a significant charge-off during 2002.

2000 Compared to 1999. The provision for loan losses was $510,000 in 2000,
compared to $772,000 in 1999, a decrease of $262,000 or 34%. The decrease in the
provision for loan losses was primarily a result of the cost of replenishing the
provision for loan losses for a commercial loan charge-off in the amount of
$584,000 during 1999, which was partially offset by the provision for increased
loan volume.

                                       40

<PAGE>
NON-INTEREST INCOME

2001 Compared to 2000 Non-interest income was $1,460,000 in 2001, compared to
$542,000 in 2000, an increase in $918,000 or 169%. The increase was primarily
due to increases in the gain on the sale of loans and the gain on the sale of
securities. The increase in the gain on the sale of loans was due to the high
level of refinancing activity during 2001. Loans sold were $72.8 million and
$23.5 million in 2001 and 2000, respectively. The Bank sold $24.0 million of
investment securities, available for sale during 2001 in order to take advantage
of market conditions. The decreasing interest rate environment had a positive
effect on the market value of these securities. The funds from the sale of
securities were used to fund commercial loans at a higher yield. During 2002,
management expects a decrease in the gain on sale of loans as a result of a
waning refinance market and anticipated interest rate increases. Additionally,
management does not expect to sell securities during 2002.

2000 Compared to 1999. Non-interest income was $542,000 in 2000 compared to
$558,000 in 1999, a decrease of $16,000 or 3%. The decrease in non-interest
income was primarily due to losses on the sale of securities and partially
offset by an increase in service charges on deposit accounts. The funds from the
sales of securities were deployed into commercial loans at a higher yield. The
increase in service charges from deposit accounts from 1999 to 2000 was due to
an increase in the number of deposit accounts and an increase in non-sufficient
funds fees.


NON-INTEREST EXPENSE

2001 Compared to 2000. Non-interest expense was $5,379,000 in 2001 compared to
$4,259,000 in 2000, an increase of $1,120,000 or 26%. The largest component of
the change in non-interest expense was salaries and employee benefits which
amounted to $3,413,000 in 2001. In 2000, salaries and employee benefits were
$2,662,000. The primary factor for the increase in salaries and employee
benefits expense was the opening of two branch offices during 2001. As of
December 31, 2001, the number of full time equivalent employees was 63 as
compared to 45 as of December 31, 2000. Anticipated growth during 2002 will
require additional staff throughout all areas of the Bank.

The second largest component of the change in non-interest expense was occupancy
and equipment expense which amounted to $645,000 in 2001. In 2000, occupancy and
equipment expense amounted to $494,000. The primary factor in the increase was
the opening of branch offices in Canton Township, Michigan and Clinton Township,
Michigan. The Bank also completed the construction of an addition to the Bank's
main office in Dearborn, Michigan. During 2002, the bank will open a retail
branch on the pad site along Hall Road in Clinton Township in front of the
current offices in the River Ridge Corporate Office Center Building. The retail
branch staff will move to the pad site while loan, operations and administrative
personnel will remain in the existing building. Additionally, the Bank expects
to open one additional office during 2002 at a yet undisclosed location.

2000 Compared to 1999. Non-interest expense was $4.3 million in 2000 compared to
$3.8 million in 1999, an increase of $0.5 million or 12%. The largest component
of the change in non-interest expense was salaries and employee benefits which
amounted to $2.7 million in 2000. In 1999, salaries and employee benefits were
$2.2 million. The primary factor for the increase in salaries and employee
benefits expense was the expansion of the lending department during 2000 in
anticipation of future growth. As of December 31, 2000, the number of full time
equivalent employees was 45 as compared to 40 as of December 31, 1999.

The increase in salaries and benefits was partially offset by a $118,000
decrease in professional services in 2000 as compared to 1999. During 1999,
professional services included three one-time charges. First, the Corporation
was accepted for listing on the Nasdaq National Market and incurred a one-time
application and entry fee of $49,000. Second, the Bank successfully defended
itself against a lawsuit without merit and incurred $50,000 in legal expense.
And third, the Corporation spent $30,000 on outside technical support related to
Year 2000 issues.

                                       41

<PAGE>
INCOME TAX PROVISION

2001 Compared to 2000. The income tax expense was $802,000 in 2001 compared to
$618,000 in 2000, an increase of $184,000 or 30%. The increase was primarily due
to the increase in income before federal income tax. Refer to Note I of the
Notes to Consolidated Financial Statements for additional information.


2000 Compared to 1999. The income tax expense was $618,000 in 2000 compared to
$394,000 in 1999, an increase of $224,000 or 57%. The increase was primarily due
to the increase in income before federal income tax. Refer to Note I of the
Notes to Consolidated Financial Statements for additional information.


COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 2001 AND DECEMBER 31, 2000

Assets. Total assets at December 31, 2001 were $226,865,000 compared to
$193,878,000 at December 31, 2000, an increase of $32,987,000 or 17%. The
increase was primarily due to increases in loans, which was partially offset by
decreases in securities available for sale.

Securities Available for Sale. Total securities available for sale, at December
31, 2001 were $21,652,000 compared to $51,916,000 at December 31, 2000, a
decrease of $30,264,000 or 58%. During 2001, the Corporation sold $24.0 million
in securities and $40.6 million in securities were called or matured. The
Corporation recognized gains of $144,000 from the sale of these securities.
Funds from the sale or call of securities were deployed into commercial loans at
a higher yield. The Bank's portfolio of securities available for sale has an
amortized cost and estimated market value of $21.6 million and $21.7 million,
respectively. The securities and their weighted average yield at December 31,
2001 are as follows (in thousands):

<TABLE>
<CAPTION>
                                                                          Estimated   Weighted
                                                            Amortized       Market     Average
                                              Par Value        Cost          Value      Yield
                                              ---------     ----------    ----------  --------
     <S>                                      <C>           <C>           <C>         <C>
     US Treasury securities                     $2,000        $2,069        $2,069       2.26%
     Mortgage backed securities                  2,988         2,970         3,013       5.63%
     Municipal securities (tax equivalent          125           125           126       5.30%
      adjusted)
     Corporate debt securities                  12,351        12,397        12,444       5.12%
     FHLMC preferred stock                       4,000         4,000         4,000       6.21%
                                               -------       -------       -------       -----
          Totals                               $21,464       $21,561       $21,652       5.12%
                                               =======       =======       =======       =====
</TABLE>

A maturity and repricing schedule of the securities portfolio at December 31,
2001 is listed below (in thousands):

<TABLE>
<CAPTION>
                                       Less than one year      One to five years        Over five years
                                      -------------------     ------------------      ------------------
                                                 Weighted               Weighted                Weighted
                                                  Average                Average                 Average
                                      Amount      Yield       Amount      Yield       Amount      Yield       Total
                                      ------     --------     ------    --------      ------    --------     -------
     <S>                              <C>        <C>          <C>       <C>           <C>       <C>          <C>
     US Treasury securities               --         --       $2,069       2.26%          --         --      $ 2,069
     Mortgage backed securities           --         --          585       4.90%       2,428       5.81%       3,013
     Municipal securities (T.E.Y         126       5.30%          --         --           --         --          126
     adjusted)
     Corporate debt securities         4,870       4.52%       7,574       5.50%          --         --       12,444
     FHLMC preferred stock             4,000       6.21%          --         --           --         --        4,000
                                      ------       ----       ------       ----       ------       ----      -------
          Totals                      $8,996                  10,228                  $2,428                 $21,652
                                      ======                  ======                  ======                 =======
</TABLE>

                                       42
<PAGE>
     The entire portfolio has an unrealized gain of $91,000. The unrealized
gain is reflected by an adjustment to stockholders' equity. The Corporation
does not hold any securities in the "Held to Maturity" category nor does the
Corporation hold or utilize derivatives. Refer to Note B of the Notes to
Consolidated Financial Statements for additional information.

     Loans. Total loans at December 31, 2001 were $180,892,000 compared to
$128,104,000 at December 31, 2000, an increase of $52,790,000 or 41%. The
components of the outstanding balances and percentage increase in loans from
2000 to 2001 are as follows (in thousands):

<Table>
<Caption>
                                             DECEMBER 31, 2001        DECEMBER 31, 2000
                                            -------------------      -------------------     PERCENT
                                            BALANCE     PERCENT      BALANCE     PERCENT     INCREASE
                                            -------------------      -------------------     --------
<C>                                         <S>         <S>          <S>         <S>         <S>

Consumer loans                               $18,773      10.38%      $18,649      14.56%        0.66%
Commercial, financial, & other                28,920      15.99%       26,588      20.75%        8.77%
Commercial real estate construction           10,463       5.78%        2,290       1.79%      356.90%
Commercial real estate mortgages              90,200      49.86%       49,900      38.95%       80.76%
Residential real estate mortgages             32,536      17.99%       30,677      23.95%        6.06%
                                             -------     ------       -------     ------       ------
                                             180,892     100.00%      128,104     100.00%       41.21%
                                             =======     ======       =======     ======       ======
</Table>

     During 2001, commercial real estate mortgage loans and other commercial
loans increased as a result of the addition of three commercial loan officers
and a solid business development program. Two of these loan officers are
headquartered at the new branch office in Clinton Township, Michigan and will
focus their efforts on developing commercial lending relationships in Macomb
County. The Bank expects the commercial lending segments to continue to increase
as a percentage of the loan portfolio in 2002 via business development programs.
These types of loans carry a relatively large average balance and produce more
cross-selling opportunities and are typically well secured by equipment,
receivables or real estate.

     Residential real estate mortgages also increased in 2001. This increase
was primarily due to the presence of three Mortgage Loan Originators for the
entire year and a decreasing interest rate environment. Management anticipates
that residential mortgage loans held in the loan portfolio will increase in
2002.

                                       43
<PAGE>
     A maturity and repricing schedule of the loan portfolio at December 31,
2001 is listed below (in thousands):

<TABLE>
<CAPTION>
                                             WITHIN    THREE TO     ONE TO       AFTER
                                             THREE      TWELVE       FIVE        FIVE
                                             MONTHS     MONTHS       YEARS       YEARS       TOTAL
                                            -------    --------    --------     -------    --------
<C>                                         <S>        <S>         <S>          <S>        <S>

Consumer loans                               $8,320       $353       $8,650        $375     $17,698
Commercial, financial & other                16,106      2,460        9,561       1,479      29,603
Commercial real estate construction           9,013      1,540           --          --      10,553
Commercial real estate mortgages              7,236      2,893       73,704       6,499      90,332
Residential real estate mortgages               596      6,001       18,463       7,219      32,279
                                            -------    -------     --------     -------    --------
                                            $41,268    $13,247     $110,378     $15,572     180,465
                                            =======    =======     ========     =======
Non-accrual loans                                                                               427
                                                                                           --------
    Total loans                                                                            $180,892
                                                                                           ========

Loans at fixed interest rates                $1,896     $6,336      $97,827     $15,022    $121,081
Loans at variable interest rates             39,022      5,721       14,092         549      59,384
                                            -------    -------     --------     -------    --------
                                            $40,891    $12,057     $111,919     $15,571     180,438
                                            =======    =======     ========     =======
Non-accrual loans                                                                               427
                                                                                           --------
    Total loans                                                                            $180,892
                                                                                           ========

</TABLE>

     Variable rate loans comprise 33% of the loan portfolio. The interest rates
of these loans change or reprice at specific intervals according to certain
market indices. The remainder of the loan portfolio has a fixed interest rate
until maturity.

     The aggregate balances on non-performing loans and the reduction in
interest income associated with these loans at December 31, are as follows (in
thousands):


<TABLE>
<CAPTION>
                                                     2001      2000      1999
                                                     ----     ------     ----
<C>                                                  <S>      <S>        <S>

Troubled debt restructuring                           $--        $--      $--
Over 90 days past due                                 364        531      190
Non-accrual loans                                     427        673      105
                                                     ----     ------     ----
Total nonperforming assets                           $791     $1,204     $295
                                                     ----     ------     ----
As a percentage of total loans                       0.44%      0.94%    0.35%
                                                     ----     ------     ----
Income in accordance with original loan terms         $75        $64      $22
Income recognized                                      45         44       13
</TABLE>

     The Bank automatically places any loan that has been partially charged-off
and most consumer loan borrowers in bankruptcy proceedings on non-accrual. The
Bank on a discretionary basis places loans on non-accrual when a borrower is in
bankruptcy where adequate security cannot be demonstrated and the borrower
ceases paying interest. All other loans are typically placed on non-accrual
after the borrower is ninety days or more past due unless collection is expected
within 60 days.

                                       44
<PAGE>
     Allowance for Loan Losses. The allowance for loan losses at December 31,
2001 was $1,922,000 compared to $1,252,000 at December 31, 2000, an increase of
$670,000 or 54%. The increase was primarily due to the growth in the loan
portfolio during 2001. Transactions in the allowance for loan losses for the
years ended December 31, are as follows (in thousands):

<TABLE>
<CAPTION>

                                              2001           2000          1999
                                             ------         ------         ----
<C>                                          <S>            <S>            <S>

Balance, beginning of year                   $1,252           $781         $627
Charge-offs:
  Consumer loans                                (43)           (21)         (55)
  Commercial Loans                             (251)           (20)        (584)
Recoveries:
  Consumer loans                                 32              2           21
  Commercial loans                               12             --           --
                                             ------         ------         ----
Net charge-offs                                (250)           (39)        (618)
                                             ------         ------         ----
Additions charged to operations                 920            510          772
                                             ======         ======         ====
Balance at end of period                     $1,922         $1,252         $781
                                             ======         ======         ====
Allowance to total loans                       1.06%          0.98%        0.91%
                                             ======         ======         ====
Net charge-offs to average loans               0.17%          0.04%        0.84%
                                             ======         ======         ====
</TABLE>

     The increase in the allowance for loan losses was based upon management's
assessment of relevant factors, including types and amounts of non-performing
loans, historical and anticipated loss experience on such types of loans, the
relevant change in the size and mix of the Bank's loan portfolio and current and
projected economic conditions. During 2002, management expects the allowance
for loan losses to grow in proportion to anticipated growth in loans.

     The allocation of the allowance for loan losses as of December 31, is as
follows (in thousands):

<TABLE>
<CAPTION>
                                                       2001                          2000                           1999
                                             -----------------------      --------------------------     --------------------------
                                                         PERCENT OF                     PERCENT OF                      PERCENT OF
                                                       LOANS IN EACH                   LOANS IN EACH                  LOANS IN EACH
                                                        CATEGORY TO                     CATEGORY TO                    CATEGORY TO
                                             AMOUNT     TOTAL LOANS       AMOUNT        TOTAL LOANS      AMOUNT        TOTAL LOANS
                                             ------    -------------      ------       -------------     ------       -------------
<C>                                          <S>       <S>                <S>          <S>               <S>          <S>

Consumer loans                                 $296        10.38%           $241           14.56%           $16           18.83%
Commercial, financial & other                   578        15.99%            578           20.75%           239           22.48%
Commercial real estate construction               6         5.78%              1            1.79%             3            3.39%
Commercial real estate mortgages                828        49.86%            274           38.95%            16           18.90%
Residential real estate mortgages               214        17.99%            158           23.95%            45           36.40%
Unallocated                                      --          N/A              --             N/A            462             N/A
                                             ------       ------          ------          ------           ----          ------
                                             $1,922       100.00%         $1,252          100.00%          $781          100.00%
                                             ======       ======          ======          ======           ====          ======
</TABLE>

                                       45
<PAGE>
     Premises and Equipment.  Premises and equipment at December 31, 2001 were
$4,746,000 compared to $3,159,000 at December 31, 2000, an increase of
$1,587,000 or 50%. The Corporation completed construction of a branch office in
Canton Township, Michigan and an addition to the main office in Dearborn,
Michigan. Expenditures for the Canton Township branch office in 2001 were $1.1
million. The total expenditures for the project are $1.8 million, including
land, building construction, furniture and equipment. The Corporation completed
an expansion the main office branch in Dearborn during 2001. Expenditures for
the addition to the Main Office in 2001 were $300,000.

     Accrued Interest Receivable. Accrued interest receivable at December 31,
2001 was $1,085,000 compared to $1,534,000 at December 31, 2000, a decrease of
$449,000 or 29%. The decrease was primarily due to the decrease in securities
available for sale.

     Other Assets. Other assets at December 31, 2001 were $623,000 compared to
$248,000 at December 31, 2000, an increase of $375,000 or 151%. The increase
was largely due to an increase in the Corporation's deferred tax asset.

     Deposits. Total deposits at December 31, 2001 were $177,481,000 compared
to $164,121,000 at December 31, 2000, an increase of $13,360,000 or 8%. The
components of the outstanding balances and percentage increase in deposits from
2000 to 2001 are as follows (in thousands):

<TABLE>
<CAPTION>
                                             2001                         2000
                                    ---------------------         ---------------------            PERCENT
                                    BALANCE       PERCENT         BALANCE       PERCENT       INCREASE/(DECREASE)
                                    ---------------------         ---------------------       -------------------
<C>                                 <S>           <S>             <S>           <S>           <S>

Non-interest bearing:
  Demand                             $21,441       12.08%         $19,153        11.67%              11.95%
                                    --------      ------         --------       ------              ------
Interest bearing:
  Checking                             9,263        5.22%           6,320         3.85%              46.57%
  Money market                        20,545       11.58%          18,715        11.40%               9.78%
  Savings                             37,429       21.09%           4,438         2.70%             743.38%
  Time, under $100,000                38,667       21.79%          56,571        34.47%             (31.65%)
  Time, $100,000 and over             50,136       28.25%          58,924        35.90%             (14.91%)
                                    --------      ------         --------       ------              ------
                                     156,040       87.92%         144,968        88.33%               7.64%
                                    --------      ------         --------       ------              ------
                                    $177,481      100.00%        $164,121       100.00%               8.14%
                                    ========      ======         ========       ======              ======
</TABLE>

     The increase in deposits was primarily due to growth in various types of
deposits. During 2001, the Bank completed an annual birthday celebration in
March 2001 and the grand opening of our Canton Township branch office, both of
which offered a premium rate on the statement savings product. The Bank's
management developed these campaigns in order to diversify the Bank's deposit
mix and decrease the proportionate share of time deposits in the deposit mix.
In addition to these deposit campaigns, the Bank continued to seek out public
funds, in the form of time deposits, $100,000 and over, in the local communities
that the Bank serves. Public funds at December 31, 2001 were $8.5 million
compared to $8.3 million at December 31, 2000. Additional growth in all types
of deposits was achieved via a strong business development program which
includes normal marketing, telemarketing, referral and visitation programs. At
December 31, 2001, within the large concentration of time deposits, $100,000 or
more, the Bank considers 90% of these deposits to be core deposits, based upon
the length of the relationship with customers and other deposit or lending
relationships maintained at the Bank.

                                       46
<PAGE>
     The Corporation has historically relied heavily on time deposits as a
percentage of total deposits to fund the growth of the Corporation. These
deposits are sensitive to changes in the interest rate environment. The Bank
diversified the deposit mix during 2001 by shifting maturing time deposits and
attracting new deposits into other deposit products. The proportion of time
deposits to total deposits decreased to 50% at December 31, 2001 from 70% at
December 31, 2000. During 2002, diversification of the deposit portfolio is
expected to continue and time deposits are expected to decrease at a more
moderate rate as percentage of total deposits.

     Final maturities of total time deposits are as follows (in thousands):

<TABLE>
<CAPTION>
                                                   $100,000     LESS THAN
                                                   AND OVER      $100,000     TOTAL
                                                   --------     ---------    -------
<C>                                                <S>          <S>          <S>

Due in three months or less                         $21,157       $10,962    $32,119
Due in over three months through six months           4,713         4,353      9,066
Due in over six months through one year               7,526         8,928     16,454
Due in over one year through five years              16,740        14,424     31,164
                                                    -------       -------    -------
                                                    $50,136       $38,667    $88,803
                                                    =======       =======    =======
</TABLE>

     The following is a summary of the distribution and weighted average
interest rate of deposits at December 31 (in thousands):

<TABLE>
<CAPTION>
                                               2001                         2000
                                      ---------------------       -----------------------
                                                   WEIGHTED                      WEIGHTED
                                                    AVERAGE                      AVERAGE
                                       AMOUNT        RATE          AMOUNT          RATE
                                      --------     --------       --------       --------
<C>                                   <S>          <S>            <S>            <S>

Non-interest bearing:
  Demand                               $21,441        --          $ 19,153          --
                                      --------                    --------
Interest bearing:
  Checking                               9,263      1.60%            6,320        2.93%
  Money market                          20,545      1.82%           18,715        4.43%
  Savings                               37,429      2.93%            4,438        2.50%
  Time, under $100,000                  38,667      4.35%           56,571        6.33%
  Time, $100,000 and over               50,136      4.11%           58,924        6.49%
                                      --------                    --------
                                       156,040                     144,968
                                      --------                    --------
                                      $177,481                     164,121
                                      ========                    ========
</TABLE>

     During most of 2001, the Corporation repriced the majority of its time
deposits at significantly lower rates than 2000 due to an decreasing rate
environment that started early in 2001 and continued through the end of 2001.
In addition to repricing maturing time deposits at lower rates in 2001, the Bank
enacted a strategy of shifting maturing time deposits into other savings
products. During 2001, the majority of maturing time deposits were placed into
statement savings accounts. This product is considered to be a core deposit
with increased stability when compared to time deposits. Management believes
that time deposits will become more costly as the interest rate environment is
anticipated to increase at a moderate pace during 2002.

                                       47
<PAGE>
     Federal Home Loan Bank Advances. Federal Home Loan Bank advances at
December 31, 2001 amounted to $20,000,000. There were no Federal Home Loan Bank
advances at December 31, 2000. Management expects to secure additional advances
in 2002 to support loan growth.

     In 1999, the Bank joined the Federal Home Loan Bank of Indianapolis.
Membership in the Federal Home Loan Bank provides the Bank with a stable source
of additional funding at a reasonable cost. Federal Home Loan Bank advances are
collateralized with a blanket collateral agreement with the Federal Home Loan
Bank and investment securities, available for sale. Please refer to Note H for
additional information.

     Accrued Interest Payable. Accrued interest payable at December 31, 2001 was
$804,000 compared to $826,000 at December 31, 2000, a decrease of $22,000 or 3%.
The decrease was due to the decreasing cost of total deposits during 2001.


CAPITAL

     Stockholders' equity at December 31, 2001 was $27,903,000 compared to
$27,763,000 as of December 31, 2000, an increase of $140,000 or 1%. Capital
increased during 2001 primarily due to net income and increases in unrealized
gains on available for sale securities as interest rates declined during 2001.

     At December 31, 2001 the Bank and Corporation exceeded all applicable
regulatory capital requirements as described in Note L - Regulatory Matters.
Based on the Corporation's December 31, 2001 capital to asset ratio of 12.3
percent, management has the capacity to grow the assets of the Corporation to
approximately $349,000,000 before the necessity to raise additional capital,
while maintaining a minimum 8.00% capital to assets ratio.

     In October of 2000, the Corporation announced that it would repurchase up
to an additional 137,812 shares of its outstanding common stock at a price range
of $5.00 to $13.00 per share, for a total of 275,624 shares. Furthermore, in
July 2001, the Corporation announced that it would repurchase up to an
additional 137,812 shares of its outstanding common stock at a price range of
$5.00 to $13.00 per share, for a total of 413,436 shares. Through December 31,
2001, the Corporation was able to repurchase 393,624 shares within Securities
and Exchange Commission compliance guidelines.


LIQUIDITY AND ASSET AND LIABILITY MANAGEMENT

     Liquidity refers to readily available funds to meet the needs of borrowers
and depositors. Levels of liquidity are closely monitored in conjunction with
loan funding requirements and deposit outflows. Adequate liquidity protects
institutions from raising funds under duress at excessive expense and provides a
necessary cushion for occasional unpredictable aberrations in demand. While
adequate liquidity is imperative, excessive liquidity in lower yielding cash
investments or other easily marketable assets reduces potential interest income.
Thus, an appropriate balance must be maintained to protect the institution and
at the same time, prudently maximize income opportunities. Sources of liquidity
from both assets and liabilities include federal funds sold, securities
available for sale, loan repayments, core deposits, Federal Home Loan Bank
advances and a federal funds purchase credit facility.

     The Corporation has sought to manage its exposure to changes in interest
rates by matching more closely the effective maturities or repricing
characteristics of the Corporation's interest earning assets and interest
bearing liabilities. The matching of the assets and liabilities may be analyzed
by examining the extent to which the assets and liabilities are interest rate
sensitive and by monitoring the expected effects of interest rate changes on net
interest income.

                                       48

<PAGE>
     An asset or liability is interest rate sensitive within a specific time
period if it will mature or reprice within that time period. If the
Corporation's assets mature or reprice more quickly or to a greater extent than
its liabilities, the Corporation's net portfolio value and net interest income
would tend to increase during periods of rising interest rates but decrease
during periods of falling interest rates. If the Corporation's assets mature or
reprice more slowly or to a lesser extent than its liabilities, its net
portfolio value and net interest income would tend to decrease during periods of
rising interest rates but increase during periods of falling interest rates.

     In 2001, the Bank sold securities available for sale and secured Federal
Home Loan Bank advances to fund increases in the level of loan activity.
Management expects loan volume to continue to increase in 2002 and expects to
fund that growth with excess cash and cash equivalents, deposit growth and
additional Federal Home Loan Bank advances.

     Interest Rate Sensitivity Analysis. The matching of assets and liabilities
may be analyzed by examining the extent to which such assets and liabilities are
"interest rate sensitive" and by monitoring an institution's interest rate
sensitivity "gap." An asset or liability is said to be interest rate sensitive
within a specific period if it will mature or reprice within that period. The
interest rate sensitivity "gap" is the difference between the amount of interest
earning assets maturing or repricing within a specific time period and the
amount of interest bearing liabilities maturing or repricing within that time
period. A gap is considered positive when the amount of interest rate sensitive
assets exceeds the amount of interest rate sensitive liabilities, and is
considered negative when the amount of interest rate sensitive liabilities
exceeds the amount of interest rate sensitive assets. During a period of rising
interest rates, a negative gap would be expected to adversely affect net
interest income while a positive gap would be expected to result in an increase
in net interest income, while conversely during a period of declining interest
rates, a negative gap would be expected to result in an increase in net interest
income and a positive gap would be expected to adversely affect net interest
income.

     Different types of assets and liabilities with the same or similar
maturities may react differently to changes in overall market rates or
conditions, and thus changes in interest rates may affect net interest income
positively or negatively even if an institution were perfectly matched in each
maturity category. Additionally, the gap analysis does not consider the many
factors as banking interest rates move. While the interest rate sensitivity gap
is a useful measurement and contributes toward effective asset and liability
management, it is difficult to predict the effect of changing interest rates
solely on that measure, without accounting for alterations in the maturity or
repricing characteristics of the balance sheet that occur during changes in
market interest rates. During periods of rising interest rates, the
Corporation's assets tend to have prepayments that are slower than expected and
would tend to increase the negative gap position. Conversely, during a period of
falling interest rates, the Corporation's assets would tend to prepay faster
than originally expected thus decreasing the negative gap position. In addition,
some of the Corporation's assets, such as adjustable rate mortgages, have caps
on the amount by which their interest rates can change in any single period, and
therefore may not reprice as quickly as liabilities in the same maturity
category.

                                       49

<PAGE>
     The following table sets forth the amounts of interest earning assets and
interest bearing liabilities outstanding at December 31, 2001 which are expected
to mature or reprice in each of the time periods shown below.

<TABLE>
<CAPTION>

                                                                 INTEREST RATE SENSITIVITY PERIOD
                                                  -------------------------------------------------------------
                                                    1-90        91-365         1-5         OVER
                                                    DAYS         DAYS         YEARS       5 YEARS        TOTAL
                                                  --------     --------      -------      -------       -------
                                                                         (in thousands)
<C>                                               <S>          <S>           <S>          <S>           <S>

Earning assets
  Federal funds sold                                $4,887          $--          $--          $--        $4,887
  Interest bearing deposits with banks               7,387           --           --           --         7,387
  Mortgage loans held for sale                       2,915           --           --           --         2,915
  Securities available for sale                      5,351        3,645       10,228        2,428        21,652
  Federal Home Loan Bank stock                       1,000           --           --           --         1,000
  Total loans, net of non-accrual                   37,944       14,679      112,244       15,571       180,438
                                                  --------     --------      -------      -------       -------
Total earning assets                                59,484       18,324      122,472       17,999       218,279

Interest bearing liabilities
  Total interest bearing deposits                   99,357       25,519       31,164           --       156,040
  Federal funds purchased                               --           --           --           --            --
  Federal Home Loan Bank advances                       --           --       10,000       10,000        20,000
                                                  --------     --------      -------      -------       -------
Total interest bearing liabilities                  99,357       25,519       41,164       10,000       176,040

Net asset (liability) funding gap                  (39,873)      (7,195)      81,308        7,999       $42,239
                                                  --------     --------      -------      -------       =======
Cumulative net asset (liability) funding gap      ($39,873)    ($47,068)     $34,240      $42,239
                                                  ========     ========      =======      =======
</TABLE>


IMPACT OF INFLATION AND CHANGING PRICES

     The Consolidated Financial Statements presented herein have been prepared
in accordance with accounting principles generally accepted in the United Sates
of America, which require the measurement of financial position and operating
results in terms of historical dollars without considering the change in the
relative purchasing power of money over time due to inflation. The primary
impact of inflation is reflected in the increased cost of the Corporation's
operations. Unlike most industrial companies, virtually all the assets and
liabilities of the Corporation are monetary in nature. As a result, interest
rates have a more significant impact on a financial institution's performance
than do the effects of general levels of inflation. Interest rates do not
necessarily move in the same direction, or to the same extent, as the prices of
goods and services.


TECHNOLOGY

     The Corporation, operating as an independent, local community bank, strives
to make available to its employees and customers a high level of technology as a
way to be competitive with other larger financial institutions. In October
2000, the Bank deployed its first ATM at the main office in Dearborn. A second
ATM was placed into service at the Plymouth office in January 2001. A third ATM
was placed into service at the Canton Township office in May 2001. A fourth ATM
is planned for the Clinton Township office by the end of 2002.

     In July 2001, the Bank began operation of a voice response, automatic
telephone banking service available 24 hours a day. The Bank began operating a
new deposit and check imaging system in August 2001, which has helped to
streamline its check operations and improve statement delivery.

                                       50



<PAGE>
                             DEARBORN BANCORP, INC.

                             DIRECTORS AND OFFICERS

<Table>

<S>                                                         <C>
DIRECTORS
                                                            MICHAEL J. ROSS
WILBER M. BRUCKER, JR.                                      President and Chief Executive Officer
Retired, Attorney                                           Community Bank of Dearborn

MARGARET I. CAMPBELL                                        DR. ROBERT C. SCHWYN
Retired, Consultant                                         Physician

JOHN E. DEMMER                                              RONNIE J. STORY
Chairman of the Board and                                   President and Chief Executive Officer
 Chief Executive Officer                                    Story Development Corp. and Story Brothers
Jack Demmer Ford, Inc.;                                     Grading & Excavating
Jack Demmer Lincoln-Mercury, Inc. and
Jack Demmer Leasing                                         OFFICERS

MICHAEL V. DORIAN, JR.                                      JOHN E. DEMMER
Vice President                                              Chairman of the Board and
Mike Dorian Ford                                             Chief Executive Officer

DAVID HIMICK                                                RICHARD NORDSTROM
Retired, Financial Consultant                               Vice Chairman

DONALD G. KARCHER                                           MICHAEL J. ROSS
Chairman of the Board                                       President
Karcher Agency, Inc.
                                                            JEFFREY L. KARAFA
BRADLEY F. KELLER                                           Vice President, Treasurer and Secretary
President
Braden Associates, Inc. and                                 DONALD G. KARCHER
MultiGard Properties, Ltd.                                  Vice President

JEFFREY G. LONGSTRETH
Real Estate Broker
Century 21 - Curran & Christie

RICHARD NORDSTROM
Retired, Architect
</Table>

                                       51

<PAGE>
                           COMMUNITY BANK OF DEARBORN

                                    OFFICERS

<TABLE>
<S>                                       <C>
JOHN E. DEMMER                            JANET K. ALCINI
Chairman of the Board                     Officer
                                          Executive Assistant, Northeast Region
MICHAEL J. ROSS
President                                 GARY AMES, JR.
Chief Executive Officer                   Assistant Vice President
                                          Controller
STEPHEN TARCZY
Northeast Regional President              ROBERT J. ANDERSON
                                          Assistant Vice President
JEFFREY L. KARAFA                         Mortgage Loan Officer, Northeast Region
Senior Vice President
CFO, Cashier & Secretary                  KEVIN A. BANK
                                          Assistant Vice President
SAM A. LOCRICCHIO                         Commercial Lending
Senior Vice President
Commercial Lending, Northeast Region      DANIEL A. BZURA
                                          Assistant Vice President
WARREN R. MUSSON                          Branch Administration
Senior Vice President
Head of Lending                           KAREN M. COVER
                                          Operations Officer, Northeast Region
JEFFREY J. WOLBER
Senior Vice President                     COLLEEN T. A. LYNEMA
Branch Administration                     Senior Mortgage Loan Officer

                                          DENIS T. NISSLE
DANIEL P. BROPHY                          Assistant Vice President
Vice President                            Private Banking
Loan Administration
                                          MIHAI PARASCA
GEORGE J. DEMOU                           Network Officer
Vice President
Commercial Lending                        CYNTHIA A. PIZZO
                                          Assistant Vice President
JIHAD A. HACHEM                           Main Office Branch Manager
Vice President
Commercial Lending                        STEVEN P. SLADE
                                          Consumer Banking Officer
WYNN C. MILLER
Vice President                            ANTOINETTE TARCZY
Internal Auditor                          Branch Officer
                                          Clinton Township Branch Officer
H. KRISTENE RAUTIO
Vice President                            SUSAN VETTRAINO
Business Development                      Retail Operations Officer

                                          CHARLES P. WASCZENSKI
                                          Branch Officer, Plymouth

                                          PAMELA G. WILKS
                                          Assistant Vice President
                                          Data Operations
</TABLE>

                                       52
<PAGE>

                           COMMUNITY BANK OF DEARBORN

                                  SUBSIDIARIES


                      COMMUNITY BANK INSURANCE AGENCY, INC.
                           Michael J. Ross, President



                          COMMUNITY BANK MORTGAGE, INC.
                           Daniel P. Brophy, President



               COMMUNITY BANK AUDIT SERVICES, INC. (In Formation)
                            Wynn C. Miller, President





                                NORTHEAST REGION
                          AUXILIARY BOARD OF DIRECTORS


                                DAVID B. BERGMAN
                                     Partner
                           Sigma Investment Counselors

                             Dr. MICHAEL J. BUSUITO
                                    Physician

                                GERALD J. CARNAGO
                  Attorney at Law & Certified Public Accountant
                           Carnago & Associates, P.C.

                              MICHAEL J. DORIAN JR.
                                 Vice President
                                Mike Dorian Ford

                                MICHAEL P. GUERRA
                                      Owner
                           Millcreek Building Company

                                JAMES A. PATRONA
                                      Owner
                        Universal Press & Machinery, Inc.

                                       53
<PAGE>
                           COMMUNITY BANK OF DEARBORN

                                BRANCH LOCATIONS

<TABLE>
<S>                                                  <C>
Main Office                                          Hours: 9:30 AM - 4:30 PM  Monday through Thursday
22290 Michigan Avenue                                       9:30 AM - 5:00 PM  Friday
PO Box 2247                                                 9:30 AM - 1:00 PM  Saturday, Drive-In Only
Dearborn, Michigan 48123-2247
Phone: (313) 274-1000
Fax:   (313) 274-5050
Cynthia A. Pizzo, Assistant Vice President & Branch Manager



Warren Avenue and Silvery Lane                       Hours: 9:00 AM - 4:30 PM  Monday through Thursday
24935 West Warren Avenue                                    9:00 AM - 5:00 PM  Friday
Dearborn Heights, Michigan  48127
Phone: (313) 724-0100
Fax:   (313) 724-1010
Trudy J. Petty,  Branch Manager



Five Mile and Sheldon Road                           Hours: 9:00 AM - 4:30 PM  Monday through Thursday
44623 Five Mile                                             9:00 AM - 5:00 PM  Friday
Plymouth, Michigan  48170
Phone: (734) 454-1000
Fax:   (734) 454-0123
Charles P. Wasczenski, Branch Officer



Canton Center                                        Hours: 9:00 AM - 4:30 PM  Monday through Thursday
1325 N. Canton Center Road                                  9:00 AM - 5:00 PM  Friday
Canton, Michigan  48187                                     9:30 AM - 1:00 PM Saturday, Drive-In Only
Phone: (734) 981-0022
Fax:   (734) 981-0033
Marian Bunch, Branch Manager



Macomb                                               Hours: 9:00 AM - 4:30 PM  Monday through Thursday
45000 River Ridge Road, Suite 110                           9:00 AM - 5:00 PM  Friday
Clinton Township, Michigan 48038
Phone: (586) 416-0200
Fax:   (586) 416-0220
Antoinette Tarczy, Branch Officer
</TABLE>

                                       54
<PAGE>
<TABLE>
<S>                                                   <C>
DEARBORN BANCORP, INC. COMMON STOCK                   INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Dearborn Bancorp, Inc. common stock is                Crowe, Chizek & Company LLP
listed on the Nasdaq Stock Market and is              Suite 300
traded under the symbol "DEAR".                       55 Campau Avenue, N.W.
                                                      Grand Rapids, Michigan  49503
                                                      (616) 774-0774
INVESTOR RELATIONS AND FORM 10-K
AVAILABLE
                                                      STOCK TRANSFER AGENT AND REGISTRAR
Additional information about the Corporation
including a free copy of the Corporation's            Stockholders requiring a change of name,
Form 10-K filed with the Securities and               address or ownership of stock, as well as
Exchange Commission may be obtained by                information about shareholder records or
writing or calling: Jeffrey L. Karafa, Vice           lost or stolen certificates, dividend
President, 22290 Michigan Avenue, Dearborn,           checks, dividend direct deposit, and
Michigan 48124; (313) 274-1000 or by E-mail           dividend reinvestment should contact:
at jeffkarafa@commbankdearborn.com.
                                                      Fifth Third Bank
                                                      Corporate Trust Services
ANNUAL MEETING                                        38 Fountain Square Plaza
                                                      Mail Drop #10AT66
The Annual Meeting of Stockholders will be            Cincinnati, Ohio 45202
held on Tuesday, May 21, 2002, at Park                (800) 837-2755 or (513) 579-5320
Place, 23400 Park Avenue, Dearborn,
Michigan, at 4:00 p.m.





PRINCIPAL MARKET MAKERS

AnPac Securities Group, Inc.                          Raymond James & Associates,  Inc.
1545 Peachtree St.NE, Suite 310                       880 Carillon Parkway
Atlanta, GA 30309                                     St. Petersburg, FL  33716
(800) 897-0384                                        (727) 573-3800

Fahnestock & Company, Inc.                            Spear, Leeds and Kellogg
300 River Place, Suite 4000                           120 Broadway, 6th Floor
Detroit, MI  48207                                    New York, NY 10271
(313) 259-2600                                        (212) 433-7000

Herzog, Heine, Geduld, Inc.                           Trident Securities, a subsidiary of
525 Washington Boulevard                              McDonald Investments
Jersey City, NJ  07310                                4601 Six Forks Road, Suite 400
(800) 221-3600                                        Raleigh, NC 27609
                                                      (404) 249-6644
Knight Securities
525 Washington Boulevard                              Wedbush Morgan Securities
Jersey City, NJ  07310                                1300 S. W. Fifth Avenue, Suite 2000
(888) 302-9197                                        Portland Oregon 97201
                                                      (503) 224-0480
</TABLE>

                                       55
<PAGE>











                             DEARBORN BANCORP, INC.
                              22290 Michigan Avenue
                                   PO Box 2247
                          Dearborn, Michigan 48123-2247

                              Phone: (313) 274-1000