Dearborn Bancorp Inc. in Michigan said Wednesday that the Nasdaq stock market had rejected its plan to cure a reporting deficiency and that its stock would be delisted on Tuesday.
The $846 million-asset parent of Fidelity Bank was warned in August that its shares could be delisted because it had not yet filed financial results with the Securities and Exchange Commission for the quarter that ended June 30.
Dearborn said in a news release that it submitted a compliance plan in "timely fashion," but that the Nasdaq rejected it because the results would not be filed until after a listing deadline had passed. This was due to the timing of the company's annual examination of its banking unit and management's inability to certify financial statements until a disagreement with the Federal Deposit Insurance Corp. over "certain accounting and regulatory issues" had been resolved.
Dearborn had said in August that it may need to restate its earnings from the quarter that ended June 30 after a review by the FDIC. At that time, the company said that those results "should not be relied upon." Dearborn had initially reported in July that it earned $183,000 in the second quarter compared with a loss of $13.8 million a year earlier.
Dearborn said in a press release that it would not appeal the decision as the company was better served by the savings it realize from not being listed on a major exchange. The company expects its stock to be traded over the counter instead.