SOURCE: Birmingham Bloomfield Bancshares, Inc.

April 11, 2014 15:25 ET

Birmingham Bloomfield Bancshares, Inc. Announces 2014 First Quarter Results

BIRMINGHAM, MI--(Marketwired - Apr 11, 2014) - Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced results for the quarter ended March 31, 2014. The Corporation reported net income of $370,000 or $0.20 per share of common stock for the first quarter of 2014, compared to net income of $287,000 or $0.16 per share for the first quarter of 2013.

Chief Executive Officer, Rob Farr, issued the results and commented, "We reported another strong quarter as the core earnings of the Company continue to improve as a result of higher profit margins and improved operating efficiency. The results produced an ROA of 0.81% and book value reached $7.60 as of March 31, 2014. We are focused on improving the fundamental performance of the Bank by increasing market share, providing meaningful solutions to our customers and creating value for our shareholders."

Results of Operation

Total net interest income for the first quarter of 2014 increased 15.2% to $1.817 million, compared to $1.577 million for the first quarter of 2013. The increase in net interest income was the result of profitable growth in the earning assets portfolio. Net interest margin for the quarter was 4.23% compared to 4.24% for the most recent linked quarter and 4.56% for the first quarter of 2013. The margin compression was a result of a reduction in loan yields due to the current rate environment and competitive banking landscape.

The Company did not record provision expense during the quarter and the allowance relative to total loans was 1.16% at March 31, 2014.

The Company generated non-interest income of $220,000 during the first three months of 2014, compared to $185,000 for the same period in 2013. The additional earnings were the result of an increase in SBA loan volume sold in the secondary market generating higher revenue.

Total non-interest expense for the first quarter of 2014 was $1.458 million, an increase of $156,000 compared to the same period of the prior year. The increase in expenses were the result of hiring new personnel to facilitate asset growth, investment in new products and services to attract new customers and infrastructure expansion to accommodate the increased capacity.

Balance Sheet

Total assets as of March 31, 2014 were $194.2 million, a 23.7% increase from the prior year. The growth was the result of dedicated efforts to increase our presence in the local community and meeting the credit demands of the market by expanding product options. Total portfolio loans reached $161.4 million at the end of the first quarter, an increase of $31.8 million from the prior year. The growth was primarily concentrated in commercial, lease and mortgage related loans. Total deposits as of March 31, 2014 were $174.8 million, an increase of 25.7% from 2013. Loan quality also improved during the quarter as the level of non-performing assets declined 2.6% from December 31, 2013 and $541,000 from the first quarter of 2013. 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,  
    2014     2013     2013  
ASSETS                        
    Cash and due from banks   $ 24,767,841     $ 22,585,199     $ 18,653,780  
    Federal funds sold     -       -       -  
  Total cash and cash equivalents     24,767,841       22,585,199       18,653,780  
                         
    Securities available-for-sale     3,553,478       2,626,716       3,635,855  
    Securities held-to-maturity     -       -       -  
    Federal Home Loan Bank Stock     248,000       248,000       218,100  
  Total securities     3,801,478       2,874,716       3,853,955  
                         
  Loans held for sale     -       -       -  
                         
  Portfolio loans                        
    Consumer loans     1,590,885       1,697,269       2,314,027  
    Mortgage loans     23,746,386       21,615,166       16,655,996  
    Commercial leases     16,204,219       13,719,232       5,389,220  
    Commercial loans     119,882,248       121,796,101       105,278,261  
  Total loans     161,423,738       158,827,768       129,637,504  
    Less: Allowance for loan loss     1,868,587       1,868,587       2,054,350  
  Net loans     159,555,151       156,959,181       127,583,154  
                         
    Premises and equipment, net     1,229,103       1,224,764       1,242,552  
    Bank owned life insurance     2,272,967       2,256,410       2,201,155  
    Deferred Tax Asset     1,487,375       1,687,277       2,159,756  
    Accrued interest receivable and other assets     1,118,468       1,091,237       1,290,366  
                         
  TOTAL ASSETS   $ 194,232,383     $ 188,678,784     $ 156,984,717  
                         
                         
                         
LIABILITIES                        
  Deposits                        
    Noninterest-bearing   $ 39,937,216     $ 39,235,022     $ 22,329,268  
    Interest-bearing     134,818,744       130,376,667       116,662,327  
  Total deposits     174,755,960       169,611,689       138,991,595  
                         
    Short term borrowings     -       -       -  
    Accrued interest payable, taxes and other liabilities     828,051       842,164       711,928  
  Total liabilities     175,584,011       170,453,853       139,703,523  
                         
SHAREHOLDERS' EQUITY                        
    Senior preferred stock, series D     4,621,000       4,621,000       4,621,000  
    Common Stock, no par value     17,212,379       17,163,818       17,105,618  
      Authorized - 9,000,000 shares, Issued and outstanding - 1,846,128                        
      1,836,662 and 1,824,662 shares respectively                        
    Accumulated other comprehensive income     36,319       31,813       67,144  
    Additional paid in capital - share based payments     493,154       493,154       493,154  
    Accumulated deficit     (3,714,480 )     (4,084,854 )     (5,005,722 )
  Total shareholders' equity     18,648,372       18,224,931       17,281,194  
                         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 194,232,383     $ 188,678,784     $ 156,984,717  
                         
Book value per share   $ 7.60     $ 7.41     $ 6.94  
                         
                         
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
         
    For the three months ended
    March 31,
    2014   2013
Interest Income            
    Interest and fees on loans            
      Commercial loans   $ 1,593,927   $ 1,519,249
      Commercial leases     182,801     30,615
      Installment loans     24,446     29,622
      Mortgage loans     141,900     86,593
      Home Equity loans     95,537     84,253
      Late charges and fees     4,121     11,230
  Total loan interest and fee income     2,042,732     1,761,562
             
    Interest bearing deposits     8,170     7,117
    Federal Funds Sold     -     -
             
    Interest on investment securities            
      Taxable     19,177     22,175
      Tax-exempt     942     977
  Total investment income     20,119     23,152
             
  Total interest income     2,071,021     1,791,831
             
Interest Expense            
    Interest on deposits     253,907     214,624
    Interest on borrowed funds     -     -
  Total interest expense     253,907     214,624
             
  Net Interest Income     1,817,114     1,577,207
    Provision for loan losses     -     10,000
  Net Interest Income After Provision for Loan Losses     1,817,114     1,567,207
             
Non-interest Income            
    Service charge income     22,272     18,416
    Mortgage banking activities     29,593     52,616
    SBA loan sales     139,364     84,972
    Other income     29,140     28,534
  Total non-interest income     220,369     184,538
             
Non-interest Expense            
    Salaries and employee benefits     822,433     716,553
    Occupancy expense     143,488     126,913
    Equipment expense     47,085     54,847
    Advertising     46,216     50,933
    Data Processing     71,570     61,447
    Professional fees     136,814     137,716
    Loan origination expense     46,386     28,732
    Regulatory Assessments     37,384     31,241
    Other expense     106,600     93,631
  Total non-interest expense     1,457,976     1,302,013
             
  Net Income Before Income Taxes     579,507     449,732
    Income tax expense     197,581     151,602
  Net Income     381,926     298,130
    Dividend on preferred stock     11,553     11,553
  Net Income applicable to common shareholders   $ 370,373   $ 286,577
             
Income per share - basic   $ 0.20   $ 0.16
   
   
   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
                           
      Year to Date  
      March 31,     Change  
      2014     2013     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 2,071     $ 1,792     $ 279     15.6 %
    Interest Expense     254       215       39     18.3 %
  Net Interest Income     1,817       1,577       240     15.2 %
    Provision for loan loss     -       10       (10 )   -100.0 %
    Non-interest income     220       185       36     19.4 %
    Non-interest expense     1,458       1,302       156     12.0 %
  Net Income before Income Taxes     580       450       130     28.9 %
    Income tax expense     198       152       46     30.3 %
  Net Income     382       298       84     28.1 %
    Dividend on preferred stock     12       12       -     0.0 %
  Net Income - common shareholders   $ 370     $ 287     $ 84     29.2 %
                                 
  Income per share - basic & diluted   $ 0.20     $ 0.16     $ 0.04     27.9 %
                                 
BALANCE SHEET DATA                              
  Total assets     194,232       156,985       37,248     23.7 %
  Average Assets     192,378       154,282       38,096     24.7 %
  Total loans     161,424       129,638       31,786     24.5 %
  Allowance for loan loss (ALLL)     1,869       2,054       (186 )   -9.0 %
  Total deposits     174,756       138,992       35,764     25.7 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     18,648       17,281       1,367     7.9 %
  Average Equity     18,459       17,139       1,320     7.7 %
                                 
ASSET QUALITY                              
  Other real estate owned (OREO)     -       -       -     0.0 %
  Net charge-offs     -       -       -     0.0 %
  Non-accrual loans     223       764       (541 )   -70.9 %
(2) Non-performing assets (NPA)     223       764       (541 )   -70.9 %
  Non-accrual loans / total loans     0.14 %     0.59 %     -0.45 %   -76.6 %
  Allowance for loan loss / total loans     1.16 %     1.58 %     -0.43 %   -27.0 %
                                 
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     4.23 %     4.56 %     -0.33 %   -7.2 %
(1) Return on average assets (annualized)     0.81 %     0.78 %     0.03 %   3.8 %
(3) Return on average assets (annualized)     1.22 %     1.21 %     0.01 %   0.8 %
(1) Return on average common equity (annualized)     11.19 %     9.66 %     1.53 %   15.8 %
(3) Return on average common equity (annualized)     16.98 %     14.89 %     2.09 %   14.0 %
  Efficiency ratio     71.6 %     73.9 %     -2.35 %   -3.2 %
  Total loans / Total deposits     92.4 %     93.3 %     -0.90 %   -1.0 %
  Tier 1 Leverage Ratio (Bank only)     8.67 %     9.36 %     -0.69 %   -7.37 %
  Equity / Assets     9.60 %     11.01 %     -1.41 %   -12.8 %
  Tangible common equity / Total assets     7.22 %     8.06 %     -0.84 %   -10.4 %
                                 
  Book value per share   $ 7.60     $ 6.94     $ 0.66     9.5 %
  Stock price   $ 5.95     $ 4.95     $ 1.00     20.2 %
  Stock price / book value (%)     78.3 %     71.3 %     6.97 %   9.8 %
  Income per share - basic & diluted   $ 0.20     $ 0.16     $ 0.04     27.9 %
  Income per share - basic & diluted (LTM)   $ 0.70     $ 0.53     $ 0.17     32.1 %
  Price to earnings ratio (P/E) (year to date)     7.3x       7.8x       -0.5x     -6.0 %
  Shares outstanding     1,846,128       1,824,662       21,466     1.2 %
  Average shares outstanding     1,844,130       1,824,662       19,468     1.1 %
                                 
(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,  
      2014   2013   2013   2013   2013  
INCOME STATEMENT                                
    Interest Income   $ 2,071   $ 2,085   $ 1,998   $ 1,860   $ 1,792  
    Interest Expense     254     262     246     222     215  
  Net Interest Income     1,817     1,823     1,752     1,638     1,577  
    Provision for loan loss     -     (120 )   180     90     10  
    Non-interest income     220     252     210     215     185  
    Non-interest expense     1,458     1,543     1,358     1,394     1,302  
  Net Income before Income Taxes     580     653     425     369     450  
    Income tax expense     198     220     145     125     152  
  Net Income     382     432     279     244     298  
    Dividend on preferred stock     12     12     12     12     12  
  Net Income applicable to common shareholders   $ 370   $ 421   $ 268   $ 232   $ 287  
                                   
  Income per share - basic & diluted   $ 0.20   $ 0.23   $ 0.15   $ 0.13   $ 0.16  
                                   
BALANCE SHEET DATA                                
  Total assets     194,232     188,679     182,693     164,588     156,985  
  Average Assets     192,378     191,516     175,007     160,953     154,282  
  Total loans     161,424     158,828     151,524     138,017     129,638  
  Allowance for loan loss (ALLL)     1,869     1,869     1,989     2,144     2,054  
  Total deposits     174,756     169,612     163,836     146,171     138,992  
  Other borrowings     -     -     -     -     -  
  Shareholders' equity     18,648     18,225     17,809     17,546     17,281  
  Average Equity     18,459     18,006     17,682     17,399     17,139  
                                   
ASSET QUALITY                                
  Other real estate owned (OREO)     -     -     -     -     -  
  Net charge-offs     -     -     336     -     -  
  Non-accrual loans     223     229     316     732     732  
(2) Non-performing assets (NPA)     223     229     316     732     732  
  Non-accrual loans / total loans     0.14 %   0.14 %   0.21 %   0.53 %   0.56 %
  Allowance for loan loss / total loans     1.16 %   1.18 %   1.31 %   1.55 %   1.58 %
                                   
PERFORMANCE MEASUREMENTS                                
  Net interest margin (tax equivalent)     4.23 %   4.24 %   4.36 %   4.50 %   4.56 %
(1) Return on average assets (annualized)     0.81 %   0.90 %   0.63 %   0.61 %   0.78 %
(3) Return on average assets (annualized)     1.22 %   1.10 %   1.37 %   1.14 %   1.21 %
(1) Return on average common equity (annualized)     11.19 %   12.82 %   8.49 %   7.65 %   9.66 %
(3) Return on average common equity (annualized)     16.98 %   15.79 %   18.37 %   14.39 %   14.89 %
  Efficiency ratio     71.6 %   74.3 %   69.2 %   75.2 %   73.9 %
  Total loans / Total deposits     92.4 %   93.6 %   92.5 %   94.4 %   93.3 %
  Tier 1 Leverage Ratio (Bank only)     8.67 %   8.40 %   8.71 %   9.21 %   9.36 %
  Equity / Assets     9.60 %   9.66 %   9.75 %   10.66 %   11.01 %
  Tangible common equity / Total assets     7.22 %   7.21 %   7.22 %   7.85 %   8.06 %
                                   
  Book value per share   $ 7.60   $ 7.41   $ 7.18   $ 7.04   $ 6.94  
  Stock price   $ 5.95   $ 5.13   $ 5.70   $ 4.30   $ 4.95  
  Stock price / book value (%)     78.3 %   69.3 %   79.4 %   61.1 %   71.3 %
  Income per share - basic & diluted   $ 0.20   $ 0.23   $ 0.15   $ 0.13   $ 0.16  
  Shares outstanding     1,846,128     1,836,662     1,836,662     1,836,662     1,824,662  
  Average shares outstanding     1,844,130     1,836,662     1,836,662     1,825,058     1,824,662  
                                   
(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          

Contact Information

  • Contact:
    Robert M. Farr
    Chief Executive Officer
    Birmingham Bloomfield Bancshares, Inc.
    248-283-6430