SOURCE: Birmingham Bloomfield Bancshares, Inc.

Birmingham Bloomfield Bancshares, Inc.

April 21, 2015 12:30 ET

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.
   
   

Contact Information

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