U.S. Markets closed
  • S&P 500

    4,124.66
    -16.93 (-0.41%)
     
  • Dow 30

    33,730.89
    +53.62 (+0.16%)
     
  • Nasdaq

    13,857.84
    -138.26 (-0.99%)
     
  • Russell 2000

    2,247.72
    +18.80 (+0.84%)
     
  • Crude Oil

    62.75
    +2.57 (+4.27%)
     
  • Gold

    1,736.50
    -11.10 (-0.64%)
     
  • Silver

    25.48
    +0.05 (+0.19%)
     
  • EUR/USD

    1.1985
    +0.0030 (+0.2517%)
     
  • 10-Yr Bond

    1.6380
    +0.0150 (+0.92%)
     
  • Vix

    16.99
    +0.34 (+2.04%)
     
  • GBP/USD

    1.3776
    +0.0024 (+0.1763%)
     
  • USD/JPY

    108.9090
    -0.1390 (-0.1275%)
     
  • BTC-USD

    62,892.59
    -188.88 (-0.30%)
     
  • CMC Crypto 200

    1,360.00
    -15.78 (-1.15%)
     
  • FTSE 100

    6,939.58
    +49.09 (+0.71%)
     
  • Nikkei 225

    29,620.99
    -130.61 (-0.44%)
     

Birmingham Bloomfield Bancshares, Inc. Announces 2015 First Quarter Results

BIRMINGHAM, MI--(Marketwired - Apr 21, 2015) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced results for the quarter ended March 31, 2015. The Company reported net income of $288,000 or $0.16 per share of common stock for the first quarter of 2015. On a pre-tax, pre-provision basis, net income was $801,000, a 38.2% increase compared to the same period of 2014.

Chief Executive Officer, Rob Farr, issued the results and commented, "The core fundamentals continue to improve as reflected in the increase in our pre-tax, pre-provision net income. This is driven by our earning asset growth, solid profit margins and improved operating efficiency. We experienced strong loan growth for the quarter and reported a pre-tax, pre-provision ROA of 1.51%. Book value at March 31, 2015 reached $8.40, an increase of $0.80 over the past twelve months and our stock price has increased over 40% during this same period. We are focused on building value for our shareholders and continue to look for opportunities to enhance the organization."

Results of Operation

Total net interest income for the first quarter of 2015 increased 13.9% to $2.07 million, compared to $1.817 million for the first quarter of 2014. The increase in net interest income was the result of profitable growth in the earning asset portfolio. Net interest margin for the quarter was 4.10% compared to 4.17% for the most recent linked quarter and 4.23% for the first quarter of 2014. The margin compression was the result of the current rate environment, competitive banking landscape and change in the mix of the portfolio.

The Company provided $345,000 in provision expense during the quarter and the allowance relative to total loans was 1.27% at March 31, 2015. The provision expense is a function of new loan volume and additional reserves required for an impaired loan. There have been no net charge offs during the period, but total nonaccrual loans increased as the result of uncertainty associated with the future performance of a large loan relationship.

The Company generated non-interest income of $236,000 during the first three months of 2015, compared to $220,000 for the same period in 2014. The additional earnings were the result of an increase in mortgage and SBA loan volume sold in the secondary market generating higher revenue.

Total non-interest expense for the first quarter of 2015 was $1.505 million, an increase of $55,000 compared to the most recent linked quarter and 3.2% relative to the same period of 2014. The primary source of the increase was in salary expense as the organization invests in personnel to accommodate growth.

Balance Sheet

Total assets as of March 31, 2015 were $209.5 million, an increase of $15.3 million from the prior year. Total portfolio loans reached $189.6 million at the end of the first quarter, an increase of $6.8 million from December 31, 2014 and 17.4% from March 31, 2014. The growth is a function of our broad product options, strong presence in the business community and superior service from our knowledgeable staff. Total deposits as of March 31, 2015 were $187.9 million, an increase of $13.2 million from the first quarter of 2014. Total non-performing loans increased during the quarter to 1.18% of the portfolio as the result of the deterioration in one large loan relationship. The Bank continues to be classified as well capitalized based on regulatory guidelines and is a recommended institution by Bauer Financial.

Birmingham Bloomfield Bancshares, Inc. is the holding company for Bank of Birmingham, a full-service community bank serving Oakland County. Bank of Birmingham is dedicated to providing financial services to small and medium sized businesses; their owners and employees; professionals; and individuals who work or reside in the Oakland County market area. Every Bank of Birmingham customer has a relationship manager who serves a single point of contact empowered to provide all the bank's services. Birmingham Bloomfield Bancshares, Inc. marketmakers include Raymond James, Chicago; Monroe Securities, Chicago; Boenning & Scattergood, Philadelphia; Stockcross Financial Services.

Forward-Looking Statements

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include: changes in interest rates and interest-rate relationships; changes in the national and local economy; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities; 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 other factors. The Company assumes no responsibility to update forward-looking statements.

(Unaudited Consolidated Financial Statements Follow)

Birmingham Bloomfield Bancshares, Inc.

Consolidated Balance Sheet (Unaudited)

March 31,

December 31,

March 31,

2015

2014

2014

ASSETS

Cash and due from banks

$

11,496,596

$

15,593,072

$

24,767,841

Federal funds sold

-

-

-

Total cash and cash equivalents

11,496,596

15,593,072

24,767,841

Securities available-for-sale

4,743,644

4,804,691

3,553,478

Federal Home Loan Bank Stock

281,900

281,900

248,000

Total securities

5,025,544

5,086,591

3,801,478

Portfolio loans

Consumer loans

2,146,893

2,104,262

1,590,885

Mortgage loans

24,159,534

24,597,099

23,746,386

Commercial leases

27,318,069

27,234,054

16,204,219

Commercial loans

135,963,771

128,819,717

119,882,248

Total loans

189,588,267

182,755,132

161,423,738

Less: Allowance for loan loss

2,405,587

2,060,587

1,868,587

Net loans

187,182,680

180,694,545

159,555,151

Premises and equipment, net

1,077,830

1,097,025

1,229,103

Bank owned life insurance

2,339,548

2,323,240

2,272,967

Deferred Tax Asset

1,159,450

1,052,423

1,487,375

Accrued interest receivable and other assets

1,248,262

1,176,587

1,118,468

TOTAL ASSETS

$

209,529,910

$

207,023,483

$

194,232,383

LIABILITIES

Deposits

Noninterest-bearing

$

45,402,460

$

45,886,004

$

39,937,216

Interest-bearing

142,561,877

140,140,219

134,818,744

Total deposits

187,964,337

186,026,223

174,755,960

Short term borrowings

-

-

-

Accrued interest payable, taxes and other liabilities

1,302,171

1,069,698

828,051

Total liabilities

189,266,508

187,095,922

175,584,011

SHAREHOLDERS' EQUITY

Senior preferred stock, series D

4,621,000

4,621,000

4,621,000

Common Stock, no par value

17,316,585

17,281,679

17,212,379

Authorized - 9,000,000 shares, Issued and outstanding - 1,861,632

1,857,128 and 1,846,128 shares respectively

Accumulated other comprehensive income

48,156

35,634

36,319

Additional paid in capital - share based payments

493,154

493,154

493,154

Accumulated deficit

(2,215,492

)

(2,503,906

)

(3,714,480

)

Total shareholders' equity

20,263,403

19,927,561

18,648,372

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

209,529,910

$

207,023,483

$

194,232,383

Book value per share

$

8.40

$

8.24

$

7.60

Birmingham Bloomfield Bancshares, Inc.

Consolidated Statement of Income (Unaudited)

For the three months ended

March 31,

2015

2014

Interest Income

Interest and fees on loans

Commercial loans

$

1,677,226

$

1,593,927

Commercial leases

321,105

182,801

Consumer loans

28,052

24,446

Mortgage loans

143,112

141,900

Home Equity loans

106,275

95,537

Late charges and fees

26,316

4,121

Total loan interest and fee income

2,302,087

2,042,732

Interest bearing deposits

11,380

8,170

Federal Funds Sold

62

-

Interest on investment securities

Taxable

23,421

19,177

Tax-exempt

-

942

Total investment income

23,421

20,119

Total interest income

2,336,949

2,071,021

Interest Expense

Interest on deposits

267,198

253,907

Interest on borrowed funds

1

-

Total interest expense

267,199

253,907

Net Interest Income

2,069,750

1,817,114

Provision for loan losses

345,000

-

Net Interest Income After Provision for Loan Losses

1,724,750

1,817,114

Non-interest Income

Service charge income

26,509

22,272

Mortgage banking activities

28,216

29,593

SBA loan sales

148,872

139,364

Other income

32,522

29,140

Total non-interest income

236,119

220,369

Non-interest Expense

Salaries and employee benefits

871,056

822,433

Occupancy expense

133,713

143,488

Equipment expense

45,057

47,085

Advertising

67,110

46,216

Data Processing

69,478

71,570

Professional fees

117,774

136,814

Loan origination expense

45,014

46,386

Regulatory Assessments

42,040

37,384

Other expense

113,760

106,600

Total non-interest expense

1,505,002

1,457,976

Net Income Before Income Taxes

455,867

579,507

Income tax expense

155,901

197,581

Net Income

299,966

381,926

Dividend on preferred stock

11,553

11,553

Net Income applicable to common shareholders

$

288,413

$

370,373

Income per share - basic

$

0.16

$

0.20

Birmingham Bloomfield Bancshares, Inc.

Financial Summary and Selected Ratios (Unaudited)

(Dollars in thousands except per share data)

Year to Date

March 31,

Change

2015

2014

Amount

Percentage

INCOME STATEMENT

Interest Income

$

2,337

$

2,071

$

266

12.8

%

Interest Expense

267

254

13

5.2

%

Net Interest Income

2,070

1,817

253

13.9

%

Provision for loan loss

345

-

345

0.0

%

Non-interest income

236

220

16

7.1

%

Non-interest expense

1,505

1,458

47

3.2

%

Net Income before Income Taxes

456

580

(124

)

-21.3

%

Income tax expense

156

198

(42

)

-21.1

%

Net Income

300

382

(82

)

-21.5

%

Dividend on preferred stock

12

12

-

0.0

%

Net Income - common shareholders

$

288

$

370

$

(82

)

-22.1

%

Income per share - basic & diluted

$

0.16

$

0.20

$

(0.05

)

-22.8

%

BALANCE SHEET DATA

Total assets

209,530

194,232

15,298

7.9

%

Average Assets

214,806

192,378

22,428

11.7

%

Total loans

189,588

161,424

28,165

17.4

%

Allowance for loan loss (ALLL)

2,406

1,869

537

28.7

%

Total deposits

187,964

174,756

13,208

7.6

%

Other borrowings

-

-

-

0.0

%

Shareholders' equity

20,263

18,648

1,615

8.7

%

Average Equity

20,163

18,459

1,704

9.2

%

ASSET QUALITY

Other real estate owned (OREO)

-

-

-

0.0

%

Net charge-offs

-

-

-

0.0

%

Non-accrual loans

2,237

223

2,014

904.7

%

(2)

Non-performing assets (NPA)

2,237

223

2,014

904.7

%

Non-accrual loans / total loans

1.18

%

0.14

%

1.04

%

755.4

%

Allowance for loan loss / total loans

1.27

%

1.16

%

0.11

%

9.6

%

PERFORMANCE MEASUREMENTS

Net interest margin (tax equivalent)

4.10

%

4.23

%

-0.13

%

-3.1

%

(1)

Return on average assets (annualized)

0.57

%

0.81

%

-0.24

%

-29.6

%

(3)

Return on average assets (annualized)

1.51

%

1.22

%

0.29

%

23.8

%

(1)

Return on average common equity (annualized)

7.83

%

11.19

%

-3.36

%

-30.0

%

(3)

Return on average common equity (annualized)

20.90

%

16.98

%

3.92

%

23.1

%

Efficiency ratio

65.3

%

71.6

%

-6.29

%

-8.8

%

Total loans / Total deposits

100.9

%

92.4

%

8.49

%

9.2

%

Tier 1 Leverage Ratio (Bank only)

8.65

%

8.67

%

-0.02

%

-0.23

%

Equity / Assets

9.67

%

9.60

%

0.07

%

0.7

%

Tangible common equity / Total assets

7.47

%

7.22

%

0.24

%

3.4

%

Book value per share

$

8.40

$

7.60

$

0.80

10.6

%

Stock price

$

8.40

$

5.95

$

2.45

41.2

%

Stock price / book value (%)

100.0

%

78.3

%

21.68

%

27.7

%

Income per share - basic & diluted

$

0.16

$

0.20

$

(0.05

)

-22.8

%

Income per share - basic & diluted (LTM)

$

0.81

$

0.70

$

0.11

15.7

%

Price to earnings ratio (P/E) (year to date)

13.4x

7.3x

6.1x

82.9

%

Shares outstanding

1,861,632

1,846,128

15,504

0.8

%

Average shares outstanding

1,860,181

1,844,130

16,051

0.9

%

(1)

Amount is computed on net income before preferred dividends.

(2)

Non-performing assets includes non-accrual loans and other real estate owned.

(3)

Amount is computed on pre-tax, pre-provision earnings before preferred dividends.

Birmingham Bloomfield Bancshares, Inc.

Financial Summary and Selected Ratios (Unaudited)

(Dollars in thousands except per share data)

Quarter Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2015

2014

2014

2014

2014

INCOME STATEMENT

Interest Income

$

2,337

$

2,347

$

2,218

$

2,146

$

2,071

Interest Expense

567

258

270

277

254

Net Interest Income

2,070

2,089

1,949

1,870

1,817

Provision for loan loss

345

167

25

-

-

Non-interest income

236

174

197

134

220

Non-interest expense

1,505

1,450

1,408

1,460

1,458

Net Income before Income Taxes

456

645

712

544

580

Income tax expense

156

221

248

187

198

Net Income

300

424

464

357

382

Dividend on preferred stock

12

12

12

12

12

Net Income applicable to common shareholders

$

288

$

413

$

453

$

345

$

370

Income per share - basic & diluted

$

0.16

$

0.22

$

0.24

$

0.19

$

0.20

BALANCE SHEET DATA

Total assets

209,530

207,023

204,715

205,074

194,232

Average Assets

214,806

208,493

206,489

204,198

192,378

Total loans

189,588

182,755

170,553

165,928

161,424

Allowance for loan loss (ALLL)

2,406

2,061

1,894

1,869

1,869

Total deposits

187,964

186,026

184,323

185,097

174,756

Other borrowings

-

-

-

-

-

Shareholders' equity

20,263

19,928

19,511

19,065

18,648

Average Equity

20,163

19,748

19,287

18,824

18,459

ASSET QUALITY

Other real estate owned (OREO)

-

-

-

-

-

Net charge-offs

-

-

-

-

-

Non-accrual loans

2,237

187

187

192

223

(2)

Non-performing assets (NPA)

2,237

187

187

192

223

Non-accrual loans / total loans

1.18

%

0.10

%

0.11

%

0.12

%

0.14

%

Allowance for loan loss / total loans

1.27

%

1.13

%

1.11

%

1.13

%

1.16

%

PERFORMANCE MEASUREMENTS

Net interest margin (tax equivalent)

4.10

%

4.17

%

3.92

%

3.95

%

4.23

%

(1)

Return on average assets (annualized)

0.00

%

0.81

%

0.89

%

0.70

%

0.81

%

(3)

Return on average assets (annualized)

0.00

%

1.55

%

1.42

%

1.07

%

1.22

%

(1)

Return on average common equity (annualized)

0.00

%

11.13

%

12.55

%

10.08

%

11.19

%

(3)

Return on average common equity (annualized)

0.00

%

21.30

%

19.95

%

15.37

%

16.98

%

Efficiency ratio

65.3

%

64.1

%

65.6

%

72.8

%

71.6

%

Total loans / Total deposits

100.9

%

98.2

%

92.5

%

89.6

%

92.4

%

Tier 1 Leverage Ratio (Bank only)

8.65

%

8.61

%

8.49

%

8.36

%

8.67

%

Equity / Assets

9.67

%

9.63

%

9.53

%

9.30

%

9.60

%

Tangible common equity / Total assets

7.47

%

7.39

%

7.27

%

7.04

%

7.22

%

Book value per share

$

8.40

$

8.24

$

8.02

$

7.78

$

7.60

Stock price

$

8.40

$

7.75

$

7.05

$

6.50

$

5.95

Stock price / book value (%)

100.0

%

94.0

%

87.9

%

83.6

%

78.3

%

Income per share - basic & diluted

$

0.16

$

0.22

$

0.24

$

0.19

$

0.20

Shares outstanding

1,861,632

1,857,128

1,857,128

1,857,128

1,846,128

Average shares outstanding

1,860,181

1,857,128

1,857,128

1,851,205

1,844,130

(1)

Amount is computed on net income before preferred dividends.

(2)

Non-performing assets includes non-accrual loans and other real estate owned.

(3)

Amount is computed on pre-tax, pre-provision earnings before preferred dividends.