DEAR Dearborn Bancorp, Inc. (MM)

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 11-K

ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(Mark One):

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. [NO FEE REQUIRED]

For the fiscal year ended December 31, 2010

OR

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED].

For the transition period from                      to                     

Commission file number 000-24478

	A.		Full title of the plan and the address of the plan, if different from that of the issuer named below: Fidelity Bank 401(k) plan.
	B.		Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:

DEARBORN BANCORP, INC.

1360 Porter Street

Dearborn, Michigan 48124

 

 

Fidelity Bank 401(k) Plan
EIN: 38-3127130 PN 001
Accountants’ Report and Financial Statements
December 31, 2010 and 2009

Fidelity Bank 401(k) Plan
December 31, 2010 and 2009

Contents
Report of Independent Registered Public Accounting Firm			1
Financial Statements
Statements of Net Assets Available for Benefits			2
Statements of Changes in Net Assets Available for Benefits			3
Notes to Financial Statements			4
Supplemental Schedules
Schedule H, Line 4i — Schedule of Assets (Held at End of Year)			18
Schedule H, Line 4j — Schedule of Reportable Transactions			19

Report of Independent Registered Public Accounting Firm

Plan Administrator
Fidelity Bank 401(k) Plan
Dearborn, Michigan

We have audited the accompanying statements of net assets available for benefits of Fidelity Bank 401(k) Plan as of December 31, 2010 and 2009, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’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 of the Public Company Accounting Oversight Board (United States). 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, 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 financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Fidelity Bank 401(k) Plan as of December 31, 2010 and 2009, and the changes in its net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying supplemental schedules are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

As discussed in Note 8, the Plan changed its method of accounting for notes receivable from participants.

Indianapolis, Indiana
June 29, 2011

Federal Employer Identification Number: 44-0160260

Independent Accountants’ Report

Plan Administrator
Fidelity Bank 401(k) Plan
Dearborn, Michigan

We have audited the accompanying statements of net assets available for benefits of Fidelity Bank 401(k) Plan as of December 31, 2010 and 2009, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’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 financial statements referred to above present fairly, in all material respects, the financial position of Fidelity Bank 401(k) Plan as of December 31, 2010 and 2009, and the changes in its net assets for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying supplemental schedules are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

As discussed in Note 8, the Plan changed its method of accounting for notes receivable from participants.

Indianapolis, Indiana
June 29, 2011

Federal Employer Identification Number: 44-0160260

Fidelity Bank 401(k) Plan
Statements of Net Assets Available for Benefits
December 31, 2010 and 2009

						2009
						(As Adjusted -
		2010				Note 8)
Assets
Investments , at fair value		$	6,680,417			$	4,872,320
Receivables
Notes receivable from particpants			249,666				216,480
Participant deferrals			24,211				22,944
			273,877				239,424
Net Assets Available for Benefits, at Fair Value			6,954,294				5,111,744
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			(77,163	)			—
Net Assets Available for Benefits		$	6,877,131			$	5,111,744

See Notes to Financial Statements

Fidelity Bank 401(k) Plan
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31, 2010 and 2009

						2009
						(As Adjusted -
		2010				Note 8)
Additions
Investment Income
Net appreciation in fair value of investments		$	1,158,297			$	241,450
Interest and dividends			29,612				24,874
Net investment income			1,187,909				266,324
Interest Income From Participant Loans			12,269				10,412
Contributions
Participants			725,033				782,680
Employer			—				167,399
Rollovers			17,266				117,174
			742,299				1,067,253
Total additions			1,942,477				1,343,989
Deductions
Benefit payments			171,760				155,467
Adminstrative expenses			5,330				1,695
Total deductions			177,090				157,162
Net Increase			1,765,387				1,186,827
Net Assets Available for Benefits, Beginning of Year			5,111,744				3,924,917
Net Assets Available for Benefits, End of Year		$	6,877,131			$	5,111,744

See Notes to Financial Statements

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

Note 1: Description of the Plan

The following description of Fidelity Bank 401(k) Plan (Plan) provides only general information. Participants should refer to the Plan Document and Summary Plan Description for a more complete description of the Plan’s provisions, which are available from the Plan Administrator.

General

The Plan is a defined-contribution plan sponsored by Fidelity Bank (Bank) for the benefit of its employees who have at least six months of service and are age 18 or older. Related employers who also participate in the Plan include Community Bank Audit Services and Dearborn Bancorp. The Plan was effective January 1, 1988 and amended and restated effective January 1, 2002. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Jeffrey L. Karafa and Michael J. Ross are fiduciaries of the Plan. State Street Bank and Trust Company serves as Plan trustee.

Contributions

Elective deferrals by participants under the 401(k) provisions are based on a percentage of their compensation as defined by the Plan agreement and are subject to certain limitations. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Employee rollover contributions are also permitted. The Bank may make matching contributions of 50% of employees’ salary deferral amounts on the first 6% of employees’ compensation and profit-sharing contributions. The Bank discontinued the match as of the September 10, 2009 paycheck. Bank profit-sharing contributions are discretionary as determined by the Bank’s Board of Directors. Contributions are subject to certain limitations. Forfeitures are used to reduce Bank contributions.

Participant Investment Account Options

Investment account options available include pooled separate accounts consisting of various mutual funds and Dearborn Bancorp, Inc. common stock. Each participant has the option of directing his contributions into any of the separate investment accounts and may change the allocation daily. All matching contributions, if approved by Plan management, are invested in the Dearborn Bancorp, Inc. common stock pooled separate account. At December 31, 2010 and 2009, approximately 10% and 4%, respectively, of the Plan’s assets were invested in Dearborn Bancorp, Inc. common stock.

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

Participant Accounts

Each participant’s account is credited with the participant’s contribution, the Bank’s contribution and Plan earnings and is charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefits to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Vesting

Participants are immediately vested in their voluntary contributions plus earnings thereon. Vesting in the Bank’s contribution portion of their accounts plus earnings thereon is based on years of continuous service. A participant is fully vested after five years of continuous service. The nonvested balance is forfeited upon termination of service. Forfeitures are used to reduce Bank contributions.

Payment of Benefits

Upon termination of service, a participant may elect to receive a lump-sum amount equal to the value of his account. A participant may receive the portion of his or her account invested in Dearborn Bancorp, Inc. stock as shares of common stock or in cash. At December 31, 2010 and 2009, Plan assets did not include any accounts of terminated or retired participants who have elected to withdraw from the Plan but have not yet been paid.

Participant Loans

		The Plan Document includes provisions authorizing loans from the Plan to active eligible participants. Loans are made to any eligible participant demonstrating a qualifying need. The minimum amount of a loan shall be $1,000. The maximum amount of a participant’s loans is determined by the available loan balance restricted to the lesser of $50,000 or 50% of the participant’s vested account balance. All loans are covered by demand notes and are generally repayable over a period of five years through payroll withholdings unless the participant is paying the loan in full. All loans bear a reasonable rate of interest as determined by the Administrator based on the prevailing interest rates charged by persons in the business of lending money for loans which would be made under similar circumstances.
		Notes receivable from participants are reported at the amortized principal balance plus accrued but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan Document.

Plan Termination

Although it has not expressed an intention to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

Note 2: Summary of Significant Accounting Policies

Basis of Accounting

The accompanying financial statements are prepared on the accrual basis of accounting.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets and changes in net assets and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Valuation of Investments and Income Recognition

		Quoted market prices, if available, are used to value investments. The amounts shown in Note 3 for securities that have no quoted market prices are estimated fair values. Pooled separate accounts are valued at estimated fair value as provided by Massachusetts Mutual Life Insurance Company (Mass Mutual). The fair value is determined by utilizing quoted market prices of the underlying assets on the last day of the Plan year. The fair value of the guaranteed investment account is calculated by discounting the related cash flows, based on current yields of similar instruments with comparable durations. The account is credited with a minimum guaranteed rate of interest.
		Investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in a guaranteed investment account. As required by the FSP, the statement of net assets available for benefits presents the fair value of the guaranteed investment contract as well as the adjustment of the investment from fair value to contract value relating to the investment contracts. The statement of changes in net assets available for benefits is prepared on a contract value basis.
		Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Investment Contract With Insurance Company

The Plan entered into a fully benefit-responsive investment contract with Mass Mutual. Mass Mutual maintains the contributions in a general account. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The guaranteed investment contract issuer is contractually obligated to repay the principal and a specified interest rate guaranteed to the Plan.

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

		As described in the previous note, because the guaranteed investment contract is fully benefit-responsive, contract value is the relevant measurement attribute for that portion of the net assets available for benefits attributable to the guaranteed investment contract. Contract value, as reported to the Plan by Mass Mutual, represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.
		There are no reserves against the contract value for credit risk of the contract issuer or otherwise. The crediting interest rate is based on a formula agreed upon with the issuer, but it may not be less than 3 percent. Such interest rates are reviewed on a quarterly basis for resetting.
		Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (1) amendments to the plan documents (including complete or partial plan termination or merger with another plan), (2) changes to the plan’s prohibition on competing investment options or deletion of equity wash provisions, (3) bankruptcy of the plan sponsor or other plan sponsor events (for example, divestitures or spin-offs of a subsidiary) that cause a significant withdrawal from the plan or (4) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The Plan Administrator does not believe the occurrence of any such value event, which would limit the Plan’s ability to transact at contract value with participants, is probable.
		The guaranteed investment contract permits the insurance company to terminate the agreement prior to the scheduled maturity date under certain circumstances.

Plan Tax Status

		The Plan operates under a nonstandardized adoption agreement in connection with a prototype retirement plan and trust/custodial document sponsored by MassMutual Financial Group. This prototype plan document has been filed with the appropriate agency. The Plan has not obtained or requested a determination letter. However, the Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code and that the Plan was qualified and the related trust was tax-exempt as of the financial statement date. With a few exceptions, the Plan is no longer subject to U.S. federal, state and local or non-U.S income tax examinations by tax authorities for years before 2007.
		During 2009, the Plan filed through the Voluntary Fiduciary Correction to correct the late remittance of certain employee contributions that occurred from 2006-2008.

Payment of Benefits

Benefits are recorded when paid. Distributions are allowed upon retirement, disability, death of the employee and termination of service.

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

Risks and Uncertainties

		The Plan provides for various investment options in any combination of mutual funds and stocks. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for plan benefits.
		The current economic environment also presents retirement plans with difficult circumstances and challenges, which in some cases have resulted in large declines in the fair value of investments. The financial statements have been prepared using values and information currently available to the Plan.
		Given the volatility of current economic conditions, the values of assets recorded in the financial statements could change rapidly, resulting in material future adjustments in investment values that could negatively impact the Plan.

Administrative Expenses

Administrative expenses may be paid by the Bank or the Plan, at the Bank’s discretion.

Note 3: Investments

The Plan’s investments are held by an insurance company-administered trust fund. The Plan’s investments (including investments bought, sold and held during the year) appreciated in fair value as follows:

		2010
		Net
		Appreciation				Fair Value
		in Fair Value				at End
		During Year				of Year
Pooled separate accounts
Dearborn Bancorp, Inc. common stock		$	633,589			$	667,068
Mutual funds			524,708				4,858,031
Guaranteed interest account			—				1,155,318
		$	1,158,297			$	6,680,417

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

		2009
		(As Adjusted - Note 8)
		Net
		Appreciation
		(Depreciation)				Fair Value
		in Fair Value				at End
		During Year				of Year
Dearborn Bancorp, Inc. common stock		$	(515,031	)		$	199,495
Mutual funds			756,481				3,882,620
Guaranteed interest account			—				790,205
		$	241,450			$	4,872,320

The fair value of individual investments that represented 5% or more of the Plan’s net assets available for benefits were as follows:

		2010				2009
Pooled separate accounts
Oakmark Equity and Income Fund		$	604,160			$	560,537
American Funds Growth Fund of America			911,633				799,282
Premier Global			515,957				437,975
Select Diversified Value Fund			544,775				395,234
Select Strategic Bond Fund			726,747				632,157
Select Indexed Equity Fund			—				286,342
Dearborn Bancorp, Inc. common stock			667,068				—
Guaranteed interest account			1,155,318				790,205

		Interest and dividends realized on the Plan’s investments for the years ended 2010 and 2009 were $29,612 and $24,874, respectively.
		Information on the guaranteed interest account carried at fair value is as follows:

		2010				2009
Average yield			3.01	%			3.82	%
Crediting interest rate at December 31			3.01	%			3.82	%
Fair value		$	1,155,318			$	790,205

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

Note 4: Net Assets by Participant and Nonparticipant-Directed Investments

Information about the net assets and the significant components of the changes in net assets relating to the participant and nonparticipant-directed investments is as follows:

		2010
						Nonparticipant-
		Participant				Directed
		Directed				Employer
		Funds				Match				Total
Additions
Investment income
Net appreciation in fair value of investments		$	912,184			$	246,113			$	1,158,297
Interest and dividends			29,612				—				29,612
Net investment income			941,796				246,113				1,187,909
Interest Income From Participant Loans			12,269				—				12,269
Contributions
Participants			725,033				—				725,033
Rollovers			17,266				—				17,266
			742,299				—				742,299
Total			1,696,364				246,113				1,942,477
Deductions
Benefit payments			158,090				13,670				171,760
Transfers			(56,500	)			56,500				—
Adminstrative expenses			3,910				1,420				5,330
Total			105,500				71,590				177,090
Net Increase			1,590,864				174,523				1,765,387
Net Assets Available for Benefits, Beginning of Year			5,026,403				85,341				5,111,744
Net Assets Available for Benefits, End of Year		$	6,617,267			$	259,864			$	6,877,131

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

		2009
		(As Adjusted - Note 8)
						Nonparticipant-
		Participant-				Directed
		Directed				Employer
		Funds				Match				Total
Additions
Investment income
Net appreciation (depreciation) in fair value of investments		$	479,018			$	(237,568	)		$	241,450
Interest and dividends			24,874				—				24,874
Net investment income (loss)			503,892				(237,568	)			266,324
Interest Income From Participant Loans			10,412				—				10,412
Contributions
Employer			—				167,399				167,399
Participants			782,680				—				782,680
Rollovers			117,174				—				117,174
			899,854				167,399				1,067,253
Total additions			1,414,158				(70,169	)			1,343,989
Deductions
Benefit payments			147,993				7,474				155,467
Transfers			4,178				(4,178	)			—
Adminstrative expenses			407				1,288				1,695
Total deductions			152,578				4,584				157,162
Net Increase (Decrease)			1,261,580				(74,753	)			1,186,827
Net Assets Available for Benefits, Beginning of Year			3,764,823				160,094				3,924,917
Net Assets Available for Benefits, End of Year		$	5,026,403			$	85,341			$	5,111,744

Fidelity Bank 401(k) Plan

Notes to Financial Statements
December 31, 2010 and 2009

Note 5: Party-in-Interest Transactions

Party-in-interest transactions include those with fiduciaries or employees of the Plan, any person who provides services to the Plan, an employer whose employees are covered by the Plan, an employee organization whose members are covered by the Plan, a person who owns 50 percent or more of such an employer or employee association, or relatives of such persons.

The Plan paid $5,330 and $1,695 of administrative fees to MassMutual Financial Group during 2010 and 2009. The Bank provides certain administrative services at no cost to the Plan. The 290,536 and 309,994 shares of Dearborn Bancorp, Inc. common stock held by the Plan as of December 31, 2010 and 2009, respectively, represent approximately 3.78% and 4.05% of the Bank’s outstanding share as of December 31, 2010 and 2009, respectively.

Note 6: Fair Value of Plan Assets

ASC Topic 820, Fair Value Measurements , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy which requires a plan to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

	Level 1		Quoted prices in active markets for identical assets or liabilities
	Level 2		Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
	Level 3		Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

The methods of valuation described below may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying statements of net assets available for benefits, as well as the general classification of such assets pursuant to the valuation hierarchy.

Investments

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. There are no Level 1 securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include pooled separate accounts. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include the guaranteed interest account.

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2010 and 2009.

Pooled separate accounts: Valued at the net asset value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, less its liabilities, and then divided by the number of shares outstanding. The fund allows for daily redemptions and contributions.

Guaranteed investment contract: Valued based on contractual terms of the underlying agreements, providing a daily rate of income accretion.

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

The following tables present the fair value measurements of assets recognized in the accompanying statements of net assets available for benefits measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2010 and 2009:

						2010
						Fair Value Measurements Using
						Quoted Prices
						in Active				Significant
						Markets for				Other				Significant
						Identical				Observable				Unobservable
		Fair				Assets				Inputs				Inputs
		Value				(Level 1)				(Level 2)				(Level 3)
Pooled separate accounts
Intermediate term bond		$	816,190			$	—			$	816,190			$	—
Large blend fund			580,453				—				580,453				—
Large growth fund			911,633				—				911,633				—
Large value fund			638,672				—				638,672				—
Mid-cap fund			226,615				—				226,615				—
Moderate allocation			604,160				—				604,160				—
Retirement income fund			19,193				—				19,193				—
Small fund			256,076				—				256,076				—
Target date fund			289,082				—				289,082				—
World stock fund			515,957				—				515,957				—
Dearborn Bancorp common stock			667,068				—				667,068				—
Guaranteed interest account			1,155,318				—				—				1,155,318
		$	6,680,417			$	—			$	5,525,099			$	1,155,318

						2009
						(As Adjusted - Note 8)
						Fair Value Measurements Using
						Quoted Prices
						in Active				Significant
						Markets for				Other				Significant
						Identical				Observable				Unobservable
		Fair				Assets				Inputs				Inputs
		Value				(Level 1)				(Level 2)				(Level 3)
Pooled separate accounts
Intermediate term bond		$	632,157			$	—			$	632,157			$	—
Large blend fund			492,897				—				492,897				—
Large growth fund			799,282				—				799,282				—
Large value fund			481,830				—				481,830				—
Mid-cap fund			159,654				—				159,654				—
Moderate allocation			560,537				—				560,537				—
Retirement income fund			15,396				—				15,396				—
Small fund			195,371				—				195,371				—
Target date fund			107,521				—				107,521				—
World stock fund			437,975				—				437,975				—
Dearborn Bancorp common stock			199,495				—				199,495				—
Guaranteed interest account			790,205				—				—				790,205
		$	4,872,320			$	—			$	4,082,115			$	790,205

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying statements of net assets available for benefits using significant unobservable (Level 3) inputs:

		Guaranteed
		Interest
		Contract
		Fund
Balance, January 1, 2009		$	427,717
Purchases, issuances and settlements, net			362,488
Balance, December 31, 2009			790,205
Purchases, issuances and settlements, net			365,113
Balance, December 31, 2010		$	1,155,318

Note 7: Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2010 and 2009, to Form 5500:

		2010				2009
Net assets available for benefits per the financial statements		$	6,877,131			$	5,111,744
Adjustment for participant contribution receivable			(24,211	)			(22,944	)
Miscellaneous difference related to accrued interest			—				401
Net assets available for benefits per Form 5500		$	6,852,920			$	5,089,201

		2010				2009
Net increase in net assets per the financial statements		$	1,765,387			$	1,186,827
Change in participant contributions receivable			(1,267	)			(22,944	)
Change in employer contribution receivable			—				9,058
Miscellaneous difference related to accrued interest			—				401
Net increase in net assets per Schedule H of Form 5500		$	1,764,120			$	1,173,342

Form 5500 has been prepared on the cash basis of accounting while this financial statement has been prepared on the accrual basis. There are differences between the financial statements and the Form 5500 related to contribution activity occurring in the last pay period of 2009 and 2010.

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

There is also a difference related to accrued interest on notes receivable from participants on the Form 5500 for 2010 and 2009.

Note 8: Changes in Accounting Principle

During 2010, the Plan adopted the provisions of ASU 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans . The ASU requires loans to participants to be reported as notes receivable from Participants at unpaid principal plus accrued but unpaid interest, instead of being reported as a part of investments at fair value as they were under previous guidance.

The following financial statement line items for fiscal years 2010 and 2009 were affected by the change in accounting principle.

						2010
		Statement of Net Assets Available for Benefits
		As Computed				As Computed
		Under Previous				Under				Effect of
		Guidance				ASU 2010-25				Change
Investments		$	6,930,083			$	6,680,417			$	(249,666	)
Notes receivable from participants			—				249,666				249,666

						2009
		Statement of Net Assets Available for Benefits
		As Previously								Effect of
		Reported				As Adjusted				Change
Investments		$	5,088,800			$	4,872,320			$	(216,480	)
Notes receivable from participants			—				216,480				216,480

						2010
		Statement of Changes in Net Assets Available
		for Benefits
		As Computed				As Computed
		Under Previous				Under				Effect of
		Guidance				ASU 2010-25				Change
Interest and dividends		$	41,881			$	29,612			$	(12,269	)
Net investment income			1,200,178				1,187,909				(12,269	)
Interest income from participant loans			—				12,269				12,269

Fidelity Bank 401(k) Plan
Notes to Financial Statements
December 31, 2010 and 2009

						2009
		Statement of Changes in Net Assets Available
		for Benefits
		As Previously								Effect of
		Reported				As Adjusted				Change
Interest and dividends		$	35,286			$	24,874			$	(10,412	)
Net investment income			276,736				266,324				(10,412	)
Interest income from participant loans			—				10,412				10,412

Net assets available for benefits were not affected by the adoption of the new guidance.

Note 9: Subsequent Events

As of June 23, 2011, the value of Dearborn Bancorp, Inc. common stock has declined approximately 34% from the value at December 31, 2010. Plan management has approved an automatic deferral feature for the Plan effective on September 1, 2011.

Subsequent events have been evaluated through June 29, 2011, which is the date the financial statements were available to be issued.

Supplemental Schedules

Fidelity Bank 401(k) Plan
Employer Identification Number: 38-3127130 Plan Number: 001
Schedule H, Line 4i — Schedule of Assets (Held at End of Year)
December 31, 2010

		(c)								(e)
(a)(b)		Description of				(d)				Current
Identity of Issuer		Investment				Cost				Value
Common Stock
*Dearborn Bancorp, Inc.		290,536 shares				$	1,261,779			$	667,068
Massachusetts Mutual Life Insurance Company
*Guaranteed investment contract			3.20	%			1,078,155				1,155,318
Pooled Separate Accounts
*Select Small Cap Growth Equity Fund (W&R		349 shares					57,716				68,997
*Select Indexed Equity Fund		2,963 shares					277,452				306,140
*Thornburg International Value Fund		2,059 shares					244,146				274,313
*Invesco Trimark Small Companies		1,112 shares					93,680				124,471
*Columbia Small Cap Value II Fund		641 shares					52,598				62,608
*Select Diversified Value Fund		5,018 shares					552,599				544,775
*American Funds Growth Fund of America		8,341 shares					867,800				911,633
*Select Strategic Bond Fund		5,572 shares					624,511				726,747
*Pioneer Cullen Value Fund		876 shares					88,149				93,897
*Premier Global		3,901 shares					468,014				515,957
*Prudential Jennson Mid Cap Growth Fund		126 shares					18,252				20,186
*T. Rowe Price Retirement Income Fund		174 shares					16,350				19,193
*T. Rowe Price Retirement 2010 Fund		156 shares					14,056				16,675
*Oakmark Equity and Income Fund		4,696 shares					545,535				604,160
*T. Rowe Price Retirement 2020 Fund		1,560 shares					140,008				160,722
*Invesco Mid Cap Core Equity Fund		923 shares					162,258				186,117
*T. Rowe Price Retirement 2030 Fund		864 shares					76,841				86,462
*T. Rowe Price Retirement 2040 Fund		245 shares					21,540				24,426
*T. Rowe Price Retirement 2050 Fund		7 shares					736				797
*Babson Premium Core Bond Fund		486 shares					86,697				89,443
*Perkins Mid Cap Value Fund		174 shares					18,949				20,312
							4,427,887				4,858,031
*Participant Loans		4.25% to 8.25%					249,666				249,666
						$	7,017,487			$	6,930,083
* Party-in-interest

Fidelity Bank 401(k) Plan
Employer Identification Number: 38-3127130 Plan Number: 001
Schedule H, Line 4j — Schedule of Reportable Transactions
Year Ended December 31, 2010

(f)

(h)

Expenses

Current Value

(a)

(c)

(d)

(e)

Incurred

(g)

of Asset on

Identity of Party

(b)

Purchase

Selling

Lease

With

Cost of

Transaction

(i)

Involved

Identity

Price

Price

Rental

Transaction

Asset

Date

Net Loss

Issuer

Dearborn common stock

Purchases

$

167,377

$

167,377

$

167,377

Sales

$

333,560

447,345

333,560

$

(113,785

)

SIGNATURES

      The Plan . Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees of the Fidelity Bank 401(k) Plan have caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 29, 2011

Exhibit Index

23.1

Consent of Independent Registered Public Accounting Firm — BKD, LLP

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