SOURCE: Birmingham Bloomfield Bancshares, Inc.

January 20, 2015 13:06 ET

Birmingham Bloomfield Bancshares, Inc. Announces 30% Increase in After Tax Earnings for 2014

BIRMINGHAM, MI--(Marketwired - Jan 20, 2015) -  Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and full year period ended December 31, 2014. The Company experienced strong loan growth and reported record earnings on an increase in total revenue.

The Company reported net income of $413,000 or $0.22 per common share for the fourth quarter of 2014 compared to net income of $421,000 or $0.23 per common share for the same period of 2013. On a pre-tax, pre-provision basis, net income for the quarter increased 52.4% relative to the fourth quarter of 2013. Net income for the year to date period ended December 31, 2014 was $1,581,000 or $0.85 per common share compared to $1,207,000 or $0.66 per common share for the same period last year. The full year results represent record earnings for the Company and an increase in net income of 30.9% relative to 2013.

Chief Executive Officer, Rob Farr, issued the results and commented, "This was another solid year for the organization. We exceeded $200.0 million in total assets, delivered record profitability on strong asset growth, improved profit margins and a more efficient cost structure. The Company reported a pre-tax, pre-provision ROA of 1.32% and book value reached $8.24. Year to date earnings per share increased 29.4% over 2013 and our stock price was $7.75 at December 31, 2014, representing year over year growth of 51.1%. We are proud of the results and look forward to building on the momentum in 2015."

Results of Operation

The Company reported net interest income of $2.089 million for the fourth quarter of 2014, an increase of 14.6% compared to the same quarter of 2013 and a 7.2% increase relative to the third quarter of 2014. Net interest margin for the quarter was 4.17% compared to 3.92% for the most recent linked quarter. This is the second consecutive quarter of margin expansion and is a function of positive improvement in the earning asset mix of the Company's balance sheet. Net interest income for the full year of 2014 was $7.724 million, an increase of 13.8% relative to the same period of 2013. The increase was the direct result of growth in earning assets.

The Company provided $167,000 in provision expense during the fourth quarter of 2014 and $192,000 for the year to date period ending December 31, 2014. The amount of provision expense recorded in 2014 was entirely a function of new loan growth. The Company did not report any charge offs during the year and the overall aggregate level of non-performing loans declined to 0.10% of total loans.

Total non-interest income for the fourth quarter of 2014 was $174,000, compared to $252,000 for the same period of 2013. For the year to date period ending December 31, 2014 total non-interest income was $725,000, a decrease of $137,000 relative to the prior year. The decrease was a result of reduced loan volume related to commercial SBA loans sold in the secondary market and a decline in residential mortgage brokerage fees. Service charges on deposit products have increased relative to the prior year due to aggregate growth in the portfolio and other income experienced modest growth during the period.

Total non-interest expense for the fourth quarter of 2014 was $1.450 million, compared to $1.408 million for the most recent linked quarter and $1.460 million for the second quarter of 2014. Year to date non-interest expense for 2014 was $5.776 million, an increase of $180,000 or 3.2% relative to 2013. Management's focus in 2014 was on controlling costs and improving operational efficiency. The increase in expenses during the year are a result of an investment in the Company's infrastructure to accommodate growth, including adding additional personnel, products and services.

Balance Sheet

Total assets as of December 31, 2014 were $207.0 million, an increase of 9.7% from the prior year. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $182.8 million at the end of the fourth quarter, an increase of $12.2 million from September 30, 2014 and a 15.1% increase from fourth quarter of 2013. The growth was a result of our focused business development efforts, favorable market conditions and diverse product options. Total deposits as of December 31, 2014 were $186.0 million, an increase of $16.4 million from 2013. The growth was a function of our personalized, service based approach and ability to successfully expand relationships with existing customers. 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 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)  
             
             
             
    December 31,     December 31,  
    2014     2013  
ASSETS                
    Cash and due from banks   $ 15,593,072     $ 22,585,199  
    Federal funds sold     -       -  
  Total cash and cash equivalents     15,593,072       22,585,199  
                 
    Securities available-for-sale     4,804,691       2,626,716  
    Securities held-to-maturity     -       -  
    Federal Home Loan Bank Stock     281,900       248,000  
  Total securities     5,086,591       2,874,716  
                 
  Portfolio loans                
    Consumer loans     2,104,262       1,697,269  
    Mortgage loans     24,597,099       21,615,166  
    Commercial leases     27,234,054       13,719,232  
    Commercial loans     128,819,717       121,796,101  
  Total loans     182,755,132       158,827,768  
    Less: Allowance for loan loss     2,060,587       1,868,587  
  Net loans     180,694,545       156,959,181  
                 
    Premises and equipment, net     1,097,025       1,224,764  
    Bank owned life insurance     2,323,240       2,256,410  
    Deferred Tax Asset     1,052,423       1,687,277  
    Accrued interest receivable and other assets     1,176,587       1,091,237  
                 
  TOTAL ASSETS   $ 207,023,483     $ 188,678,784  
                 
                 
                 
LIABILITIES                
  Deposits                
    Noninterest-bearing   $ 45,886,004     $ 39,235,022  
    Interest-bearing     140,140,219       130,376,667  
  Total deposits     186,026,224       169,611,689  
                 
    Short term borrowings     -       -  
    Accrued interest payable, taxes and other liabilities     1,069,698       842,164  
  Total liabilities     187,095,922       170,453,853  
                 
SHAREHOLDERS' EQUITY                
    Senior preferred stock, series D     4,621,000       4,621,000  
    Common Stock, no par value     17,281,679       17,163,818  
      Authorized - 9,000,000 shares, Issued and outstanding - 1,857,128 and 1,836,662 shares respectively                
    Accumulated other comprehensive income     35,634       31,813  
    Additional paid in capital - share based payments     493,154       493,154  
    Accumulated deficit     (2,503,906 )     (4,084,854 )
  Total shareholders' equity     19,927,561       18,224,931  
                 
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 207,023,483     $ 188,678,784  
                 
Book value per share   $ 8.24     $ 7.41  
                 
                 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
                   
    For the three months ended     For the twelve months ended
    December 31,     December 31,
    2014   2013     2014   2013
Interest Income                          
    Interest and fees on loans                          
      Commercial loans   $ 1,701,146   $ 1,668,979     $ 6,548,241   $ 6,301,192
      Commercial leases     301,635     150,702       948,737     410,947
      Consumer loans     33,132     26,863       118,612     111,683
      Mortgage loans     147,062     114,917       570,958     405,945
      Home Equity loans     110,556     88,405       414,813     348,000
      Late charges and fees     14,260     5,831       29,461     38,049
  Total loan interest and fee income     2,307,791     2,055,697       8,630,822     7,615,816
                           
    Interest bearing deposits     9,481     10,288       33,699     33,741
    Federal Funds Sold     4,156     -       19,085     -
                           
    Interest on investment securities                          
      Taxable     25,225     18,019       97,530     81,414
      Tax-exempt     -     953       1,258     3,859
  Total investment income     25,225     18,972       98,788     85,273
                           
  Total interest income     2,346,653     2,084,957       8,782,394     7,734,830
                           
Interest Expense                          
    Interest on deposits     257,787     261,538       1,057,997     944,277
    Interest on borrowed funds     17     -       17     -
  Total interest expense     257,804     261,538       1,058,014     944,277
                           
  Net Interest Income     2,088,849     1,823,420       7,724,380     6,790,554
    Provision for loan losses     167,000     (120,000 )     192,000     160,000
  Net Interest Income After Provision for Loan Losses     1,921,849     1,943,420       7,532,380     6,630,554
                           
Non-interest Income                          
    Service charge income     24,350     23,490       121,675     78,972
    Mortgage banking activities     15,284     22,955       83,639     182,142
    SBA loan sales     99,443     174,975       392,732     480,610
    Other income     34,451     30,734       126,817     120,170
  Total non-interest income     173,528     252,154       724,863     861,894
                           
Non-interest Expense                          
    Salaries and employee benefits     798,808     776,331       3,205,502     3,044,573
    Occupancy expense     127,266     130,575       521,595     498,979
    Equipment expense     41,823     48,820       171,901     207,556
    Advertising     55,139     81,036       213,113     239,506
    Data Processing     64,363     97,333       276,526     298,921
    Professional fees     168,100     113,882       589,382     514,365
    Loan origination expense     26,411     132,161       189,302     230,467
    Regulatory Assessments     39,053     39,178       153,018     139,669
    Other expense     129,361     123,490       455,876     422,473
  Total non-interest expense     1,450,324     1,542,807       5,776,215     5,596,510
                           
  Net Income Before Income Taxes     645,053     652,767       2,481,028     1,895,938
    Income tax expense     220,888     220,313       853,870     642,282
  Net Income     424,165     432,454       1,627,158     1,253,656
    Dividend on preferred stock     11,552     11,552       46,210     46,210
  Net Income applicable to common shareholders   $ 412,613   $ 420,902     $ 1,580,948   $ 1,207,446
                           
Income per share - basic   $ 0.22   $ 0.23     $ 0.85   $ 0.66
   
   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
                           
      Year to Date  
      December 31,     Change  
      2014     2013     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 8,782     $ 7,735     $ 1,048     13.5 %
    Interest Expense     1,058       944       114     12.0 %
  Net Interest Income     7,724       6,791       934     13.8 %
    Provision for loan loss     192       160       32     20.0 %
    Non-interest income     725       862       (137 )   -15.9 %
    Non-interest expense     5,776       5,597       180     3.2 %
  Net Income before Income Taxes     2,481       1,896       585     30.9 %
    Income tax expense     854       642       212     32.9 %
  Net Income     1,627       1,254       374     29.8 %
    Dividend on preferred stock     46       46       -     0.0 %
  Net Income - common shareholders   $ 1,581     $ 1,207     $ 374     30.9 %
                                 
  Income per share - basic & diluted   $ 0.85     $ 0.66     $ 0.19     29.4 %
                                 
BALANCE SHEET DATA                              
  Total assets     207,023       188,679       18,345     9.7 %
  Average Assets     202,943       170,554       32,389     19.0 %
  Total loans     182,755       158,828       23,927     15.1 %
  Allowance for loan loss (ALLL)     2,061       1,869       192     10.3 %
  Total deposits     186,026       169,612       16,415     9.7 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     19,928       18,225       1,703     9.3 %
  Average Equity     19,083       17,599       1,484     8.4 %
                                 
ASSET QUALITY                              
  Other real estate owned (OREO)     -       -       -     0.0 %
  Net charge-offs     -       336       (336 )   -100.0 %
  Non-accrual loans     187       229       (42 )   -18.4 %
(2) Non-performing assets (NPA)     187       229       (42 )   -18.4 %
  Non-accrual loans / total loans     0.10 %     0.14 %     -0.04 %   -29.0 %
  Allowance for loan loss / total loans     1.13 %     1.18 %     -0.05 %   -4.2 %
                                 
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     4.06 %     4.40 %     -0.34 %   -7.7 %
(1) Return on average assets (annualized)     0.80 %     0.74 %     0.06 %   8.1 %
(3) Return on average assets (annualized)     1.32 %     1.21 %     0.11 %   9.1 %
(1) Return on average common equity (annualized)     11.25 %     9.69 %     1.56 %   16.1 %
(3) Return on average common equity (annualized)     18.48 %     15.89 %     2.59 %   16.3 %
  Efficiency ratio     68.4 %     73.1 %     -4.77 %   -6.5 %
  Total loans / Total deposits     98.2 %     93.6 %     4.60 %   4.9 %
  Tier 1 Leverage Ratio (Bank only)     8.61 %     8.40 %     0.21 %   2.50 %
  Equity / Assets     9.63 %     9.66 %     -0.03 %   -0.3 %
  Tangible common equity / Total assets     7.39 %     7.21 %     0.18 %   2.5 %
                                 
  Book value per share   $ 8.24     $ 7.41     $ 0.84     11.3 %
  Stock price   $ 7.75     $ 5.13     $ 2.62     51.1 %
  Stock price / book value (%)     94.0 %     69.3 %     24.77 %   35.8 %
  Income per share - basic & diluted   $ 0.85     $ 0.66     $ 0.19     29.4 %
  Price to earnings ratio (P/E) (year to date)     9.1x       7.8x       1.3x     16.7 %
  Shares outstanding     1,857,128       1,836,662       20,466     1.1 %
  Average shares outstanding     1,852,446       1,830,810       21,636     1.2 %
                                 
(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  
      December 31,   September 30,   June 30,   March 31,   December 31,  
      2014   2014   2014   2014   2013  
INCOME STATEMENT                                
    Interest Income   $ 2,347   $ 2,218   $ 2,146   $ 2,071   $ 2,085  
    Interest Expense     258     270     277     254     262  
  Net Interest Income     2,089     1,949     1,870     1,817     1,823  
    Provision for loan loss     167     25     -     -     (120 )
    Non-interest income     174     197     134     220     252  
    Non-interest expense     1,450     1,408     1,460     1,458     1,543  
  Net Income before Income Taxes     645     712     544     580     653  
    Income tax expense     221     248     187     198     220  
  Net Income     424     464     357     382     432  
    Dividend on preferred stock     12     12     12     12     12  
  Net Income applicable to common shareholders   $ 413   $ 453   $ 345   $ 370   $ 421  
                                   
  Income per share - basic & diluted   $ 0.22   $ 0.24   $ 0.19   $ 0.20   $ 0.23  
                                   
BALANCE SHEET DATA                                
  Total assets     207,023     204,715     205,074     194,232     188,679  
  Average Assets     208,493     206,489     204,198     192,378     191,516  
  Total loans     182,755     170,553     165,928     161,424     158,828  
  Allowance for loan loss (ALLL)     2,061     1,894     1,869     1,869     1,869  
  Total deposits     186,026     184,323     185,097     174,756     169,612  
  Other borrowings     -     -     -     -     -  
  Shareholders' equity     19,928     19,511     19,065     18,648     18,225  
  Average Equity     19,748     19,287     18,824     18,459     18,006  
                                   
ASSET QUALITY                                
  Other real estate owned (OREO)     -     -     -     -     -  
  Net charge-offs     -     -     -     -     -  
  Non-accrual loans     187     187     192     223     229  
(2) Non-performing assets (NPA)     187     187     192     223     229  
  Non-accrual loans / total loans     0.10 %   0.11 %   0.12 %   0.14 %   0.14 %
  Allowance for loan loss / total loans     1.13 %   1.11 %   1.13 %   1.16 %   1.18 %
                                   
PERFORMANCE MEASUREMENTS                                
  Net interest margin (tax equivalent)     4.17 %   3.92 %   3.95 %   4.23 %   4.24 %
(1) Return on average assets (annualized)     0.81 %   0.89 %   0.70 %   0.81 %   0.90 %
(3) Return on average assets (annualized)     1.55 %   1.42 %   1.07 %   1.22 %   1.10 %
(1) Return on average common equity (annualized)     11.13 %   12.55 %   10.08 %   11.19 %   12.82 %
(3) Return on average common equity (annualized)     21.30 %   19.95 %   15.37 %   16.98 %   15.79 %
  Efficiency ratio     64.1 %   65.6 %   72.8 %   71.6 %   74.3 %
  Total loans / Total deposits     98.2 %   92.5 %   89.6 %   92.4 %   93.6 %
  Tier 1 Leverage Ratio (Bank only)     8.61 %   8.49 %   8.36 %   8.67 %   8.40 %
  Equity / Assets     9.63 %   9.53 %   9.30 %   9.60 %   9.66 %
  Tangible common equity / Total assets     7.39 %   7.27 %   7.04 %   7.22 %   7.21 %
                                   
  Book value per share   $ 8.24   $ 8.02   $ 7.78   $ 7.60   $ 7.41  
  Stock price   $ 7.75   $ 7.05   $ 6.50   $ 5.95   $ 5.13  
  Stock price / book value (%)     94.0 %   87.9 %   83.6 %   78.3 %   69.3 %
  Income per share - basic & diluted   $ 0.22   $ 0.24   $ 0.19   $ 0.20   $ 0.23  
  Shares outstanding     1,857,128     1,857,128     1,857,128     1,846,128     1,836,662  
  Average shares outstanding     1,857,128     1,857,128     1,851,205     1,844,130     1,836,662  
                                   
(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