SOURCE: Birmingham Bloomfield Bancshares, Inc

Birmingham Bloomfield Bancshares, Inc

April 19, 2016 12:51 ET

Birmingham Bloomfield Bancshares, Inc. Announces 2016 First Quarter Results

BIRMINGHAM , MI--(Marketwired - April 19, 2016) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced results for the quarter ended March 31, 2016. The Company reported net income of $313,000 or $0.17 per share of common stock for the first quarter of 2016. On a pre-tax, pre-provision basis, net income was $887,000, a 10.7% increase compared to the same period of 2015.

Chief Executive Officer, Rob Farr, issued the results and commented, "The core operations remain very strong with a pre-tax, pre-provision ROA of 1.37%. This is a result of our efficient cost structure and strong profit margin performance driven by revenue growth. We also continue to experience expansion in our market as total assets reached $273.9 million at the end of the quarter, an increase of 31% since March of 2015. Book value was $9.46 as of March 31st and earnings per share for the most recent trailing twelve months was $1.04. We are encouraged by our performance for the quarter and remain focused on delivering value for our shareholders in 2016."

Results of Operation

Total net interest income for the first quarter of 2016 increased 15.9% to $2.399 million, compared to $2.070 million for the first quarter of 2015. The increase in net interest income was the result of continued growth in the loan portfolio. Net interest margin for the quarter was 3.85% compared to 3.99% for the most recent linked quarter and 4.10% for the first quarter of 2015. The margin compression is a result of the competitive market conditions affecting loan pricing and additional funding costs associated with the term debt facility used to redeem the SBLF preferred investment.

The Company provided $410,000 in provision expense during the quarter and the allowance relative to total loans was 1.29% at March 31, 2016. The provision expense is a function of new loan volume and additional reserves required for one impaired loan. There have been no net charge offs during the period and total nonaccrual loans remained unchanged from December 31, 2015.

The Company generated non-interest income of $222,000 during the first three months of 2016, compared to $236,000 for the same period in 2015. The reduction in revenue is primarily the result of a decrease in the volume of mortgage loans sold in the secondary market.

Total non-interest expense for the first quarter of 2016 was $1.734 million, an increase of $229,000 relative to the same period of 2015. The increase was a function of investments in the infrastructure of the organization to support future growth. The major contributors to the additional expenses were salaries, data processing costs and professional fees.

Balance Sheet

Total assets as of March 31, 2016 were $273.9 million, an increase of $29.7 million from the most recent linked quarter and 30.7% from the first quarter of 2015. Total portfolio loans reached $227.1 million at the end of the first quarter, an increase of $4.9 million from December 31, 2015 and 19.8% from March 31, 2015. The growth is a function of the favorable economic conditions in our core market, increased promotional efforts and our community oriented approach to providing valuable solutions for our customers. Total non-performing loans remained flat during the quarter and represent to 0.92% of the portfolio. Total deposits as of March 31, 2016 were $249.8 million, an increase of $61.9 million from the first quarter of 2015. The growth is related to the successful implementation of strategic initiatives focused on generating core deposits in our market. 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,  
  2016     2015     2015  
ASSETS                      
    Cash and due from banks $ 39,367,001     $ 14,232,848     $ 11,496,596  
    Federal funds sold   -       -       -  
  Total cash and cash equivalents   39,367,001       14,232,848       11,496,596  
                       
    Securities available-for-sale   3,845,883       3,933,083       4,743,644  
    Federal Home Loan Bank Stock   243,300       243,300       281,900  
  Total securities   4,089,183       4,176,383       5,025,544  
                       
  Portfolio loans                      
    Consumer loans   2,339,420       2,355,187       2,146,893  
    Mortgage loans   39,514,931       35,060,825       24,159,534  
    Commercial leases   36,073,592       35,940,633       27,318,069  
    Commercial loans   149,124,086       148,782,782       135,963,771  
  Total loans   227,052,029       222,139,427       189,588,267  
    Less: Allowance for loan loss   2,935,350       2,525,350       2,405,587  
  Net loans   224,116,679       219,614,077       187,182,680  
                       
    Premises and equipment, net   970,757       996,183       1,077,830  
    Bank owned life insurance   2,404,936       2,389,018       2,339,548  
    Deferred Tax Asset   1,310,684       1,202,501       1,159,450  
    Accrued interest receivable and other assets   1,634,946       1,592,630       1,248,262  
                       
TOTAL ASSETS $ 273,894,186     $ 244,203,640     $ 209,529,910  
                       
                       
                       
LIABILITIES                      
  Deposits                      
    Noninterest-bearing $ 61,426,407     $ 57,526,790     $ 45,402,460  
    Interest-bearing   188,403,225       162,960,444       142,561,877  
  Total deposits   249,829,632       220,487,234       187,964,337  
                       
    Other Borrowings   4,526,178       4,621,000       -  
    Accrued interest payable, taxes and other liabilities   1,794,580       1,718,161       1,302,171  
  Total liabilities   256,150,390       226,826,395       189,266,508  
                       
SHAREHOLDERS' EQUITY                      
  Senior preferred stock, series D   -       -       4,621,000  
  Common Stock, no par value   17,446,694       17,412,285       17,316,585  
    Authorized -- 9,000,000 shares, Issued and outstanding -- 1,876,610                      
    1,872,632 and 1,861,632 shares respectively                      
  Accumulated other comprehensive income   31,850       23,808       48,156  
  Additional paid in capital -- share based payments   525,104       514,454       493,154  
  Accumulated deficit   (259,852 )     (573,302 )     (2,215,492 )
Total shareholders' equity   17,743,797       17,377,245       20,263,403  
                       
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 273,894,186     $ 244,203,640     $ 209,529,910  
                       
Book value per share $ 9.46     $ 9.28     $ 8.40  
                       
                       
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
       
  For the three months ended
  March 31,
  2016   2015
Interest Income          
  Interest and fees on loans          
    Commercial loans $ 1,884,723   $ 1,677,226
    Commercial leases   440,163     321,105
    Consumer loans   34,094     28,052
    Mortgage loans   233,746     143,112
    Home Equity loans   139,712     106,275
    Late charges and fees   19,580     26,316
  Total loan interest and fee income   2,752,017     2,302,087
           
  Interest bearing deposits   23,193     11,380
  Federal Funds Sold   -     62
           
  Interest on investment securities          
    Taxable   16,944     23,421
    Tax-exempt   -     -
  Total investment income   16,944     23,421
             
  Total interest income   2,792,154     2,336,949
           
Interest Expense          
    Interest on deposits   348,419     267,198
    Interest on borrowed funds   45,166     1
  Total interest expense   393,585     267,199
           
  Net Interest Income   2,398,569     2,069,750
    Provision for loan losses   410,000     345,000
  Net Interest Income After Provision for Loan Losses   1,988,569     1,724,750
           
Non-interest Income          
  Service charge income   24,104     26,509
  Mortgage banking activities   7,749     28,216
  SBA loan sales   158,554     148,872
  Other income   31,589     32,522
  Total non-interest income   221,996     236,119
           
Non-interest Expense          
  Salaries and employee benefits   980,159     871,056
  Occupancy expense   136,780     133,713
  Equipment expense   31,830     45,057
  Advertising   59,898     67,110
  Data Processing   97,694     69,478
  Professional fees   141,843     117,774
  Loan origination expense   57,590     45,014
  Regulatory Assessments   53,874     42,040
  Other expense   173,911     113,760
  Total non-interest expense   1,733,579     1,505,002
           
  Net Income Before Income Taxes   476,986     455,867
    Income tax expense   163,537     155,901
  Net Income   313,449     299,966
    Dividend on preferred stock   -     11,553
  Net Income applicable to common shareholders $ 313,449   $ 288,413
           
Income per share -- basic $ 0.17   $ 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  
    2016     2015     Amount     Percentage  
INCOME STATEMENT                            
    Interest Income $ 2,792     $ 2,337     $ 455     19.5 %
    Interest Expense   394       267       126     47.3 %
  Net Interest Income   2,399       2,070       329     15.9 %
    Provision for loan loss   410       345       65     18.8 %
    Non-interest income   222       236       (14 )   -6.0 %
    Non-interest expense   1,734       1,505       229     15.2 %
  Net Income before Income Taxes   477       456       21     4.6 %
    Income tax expense   164       156       8     4.9 %
  Net Income   313       300       13     4.5 %
    Dividend on preferred stock   -       12       (12 )   -100.0 %
  Net Income -- common shareholders $ 313     $ 288     $ 25     8.7 %
                               
  Income per share -- basic & diluted $ 0.17     $ 0.16     $ 0.01     7.8 %
                               
BALANCE SHEET DATA                            
  Total assets   273,894       209,530       64,364     30.7 %
  Average Assets   261,080       214,806       46,274     21.5 %
  Total loans   227,052       189,588       37,464     19.8 %
  Allowance for loan loss (ALLL)   2,935       2,406       530     22.0 %
  Total deposits   249,830       187,964       61,865     32.9 %
  Other borrowings   4,526       -       4,526     0.0 %
  Shareholders' equity   17,744       20,263       (2,520 )   -12.4 %
                               
ASSET QUALITY                            
  Other real estate owned (OREO)   -       -       -     0.0 %
  Net charge-offs   -       -       -     0.0 %
  Non-accrual loans   2,083       2,237       (154 )   -6.9 %
(2) Non-performing assets (NPA)   2,083       2,237       (154 )   -6.9 %
  Non-accrual loans / total loans   0.92 %     1.18 %     -0.26 %   -22.2 %
  Allowance for loan loss / total loans   1.29 %     1.27 %     0.02 %   1.9 %
                               
PERFORMANCE MEASUREMENTS                            
  Net interest margin (tax equivalent)   3.85 %     4.10 %     -0.25 %   -6.1 %
(1) Return on average assets (annualized)   0.48 %     0.57 %     -0.08 %   -14.7 %
(3) Return on average assets (annualized)   1.37 %     1.51 %     -0.15 %   -9.6 %
(1) Return on average common equity (annualized)   7.16 %     7.83 %     -0.67 %   -8.5 %
(3) Return on average common equity (annualized)   20.26 %     20.90 %     -0.63 %   -3.0 %
  Efficiency ratio   66.2 %     65.3 %     0.88 %   1.4 %
  Total loans / Total deposits   90.9 %     100.9 %     -9.98 %   -9.9 %
  Equity / Assets   6.48 %     9.67 %     -3.19 %   -33.0 %
  Tangible common equity / Total assets   6.48 %     7.47 %     -0.99 %   -13.2 %
                               
  Book value per share $ 9.46     $ 8.40     $ 1.05     12.5 %
  Stock price $ 8.79     $ 8.40     $ 0.39     4.6 %
  Stock price / book value (%)   93.0 %     100.0 %     -7.01 %   -7.0 %
  Income per share -- basic & diluted $ 0.17     $ 0.16     $ 0.01     7.8 %
  Income per share -- basic & diluted (LTM) $ 1.04     $ 0.81     $ 0.23     28.4 %
  Price to earnings ratio (P/E) (year to date)   13.1x       13.4x       -0.3x     -2.1 %
  Shares outstanding   1,876,610       1,861,632       14,978     0.8 %
  Average shares outstanding   1,875,386       1,860,181       15,205     0.8 %
                               
(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,  
    2016     2015     2015     2015     2015  
INCOME STATEMENT                                      
    Interest Income $ 2,792     $ 2,712     $ 2,641     $ 2,450     $ 2,337  
    Interest Expense   394       334       319       310       267  
  Net Interest Income   2,399       2,378       2,323       2,140       2,070  
    Provision for loan loss   410       81       -       180       345  
    Non-interest income   222       333       174       562       236  
    Non-interest expense   1,734       1,806       1,693       1,610       1,505  
  Net Income before Income Taxes   477       824       804       912       456  
    Income tax expense   164       272       280       313       156  
  Net Income   313       553       524       599       300  
    Dividend on preferred stock   -       10       12       12       12  
  Net Income applicable to common shareholders $ 313     $ 542     $ 512     $ 588     $ 288  
                                         
  Income per share -- basic & diluted $ 0.17     $ 0.29     $ 0.27     $ 0.31     $ 0.16  
                                         
BALANCE SHEET DATA                                      
  Total assets   273,894       244,204       235,887       228,322       209,530  
  Average Assets   261,080       246,503       233,756       223,792       214,806  
  Total loans   227,052       222,139       210,199       202,839       189,588  
  Allowance for loan loss (ALLL)   2,935       2,525       2,586       2,586       2,406  
  Total deposits   249,830       220,487       212,017       204,964       187,964  
  Other borrowings   4,526       4,621       -       -       -  
  Shareholders' equity   17,744       17,377       21,459       20,931       20,263  
                                         
ASSET QUALITY                                      
  Other real estate owned (OREO)   -       -       -       -       -  
  Net charge-offs   -       141       -       -       -  
  Non-accrual loans   2,083       2,083       2,237       2,237       2,237  
(2) Non-performing assets (NPA)   2,083       2,083       2,237       2,237       2,237  
  Non-accrual loans / total loans   0.92 %     0.94 %     1.06 %     1.10 %     1.18 %
  Allowance for loan loss / total loans   1.29 %     1.14 %     1.23 %     1.27 %     1.27 %
                                         
PERFORMANCE MEASUREMENTS                                      
  Net interest margin (tax equivalent)   3.85 %     3.99 %     4.12 %     4.00 %     4.10 %
(1) Return on average assets (annualized)   0.48 %     0.89 %     0.89 %     1.07 %     0.57 %
(3) Return on average assets (annualized)   1.37 %     1.46 %     1.37 %     1.96 %     1.51 %
(1) Return on average common equity (annualized)   7.16 %     12.79 %     12.52 %     15.03 %     7.83 %
(3) Return on average common equity (annualized)   20.26 %     20.96 %     19.22 %     27.39 %     20.90 %
  Efficiency ratio   66.2 %     66.6 %     67.8 %     59.6 %     65.3 %
  Total loans / Total deposits   90.9 %     100.7 %     99.1 %     99.0 %     100.9 %
  Equity / Assets   6.48 %     7.12 %     9.10 %     9.17 %     9.67 %
  Tangible common equity / Total assets   6.48 %     7.12 %     7.14 %     7.14 %     7.47 %
                                         
  Book value per share $ 9.46     $ 9.28     $ 8.99     $ 8.71     $ 8.40  
  Stock price $ 8.79     $ 8.65     $ 8.50     $ 9.05     $ 8.40  
  Stock price / book value (%)   93.0 %     93.2 %     94.5 %     103.9 %     100.0 %
  Income per share -- basic & diluted $ 0.17     $ 0.29     $ 0.27     $ 0.31     $ 0.16  
  Shares outstanding   1,876,610       1,872,632       1,872,632       1,872,632       1,861,632  
  Average shares outstanding   1,875,386       1,872,632       1,872,632       1,866,830       1,860,181  
                                         
(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