SOURCE: Birmingham Bloomfield Bancshares, Inc

Birmingham Bloomfield Bancshares, Inc

December 23, 2015 14:16 ET

Birmingham Bloomfield Bancshares, Inc. Announces Full Redemption of SBLF Investment

BIRMINGHAM , MI--(Marketwired - December 23, 2015) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced it redeemed all of the outstanding shares from the Small Business Lending Fund ("SBLF") program at a price of $4.621 million.

The SBLF was created by the United States Department of the Treasury ("the Treasury") to encourage banks to increase lending to small businesses by providing additional capital to eligible institutions at an adjustable dividend rate based on the volume of qualified lending. On July 28, 2011, the Company issued 4,621 preferred shares to the Treasury for $4.621 million in capital under the SBLF program. The capital was used by the Company to support the growth of the Bank and provide additional credit to the local community. The initial rate for the program was 1.0% based on the eligible lending volume for the Company but in January of 2016 the cost automatically increased to 9.0%.

On December 22, 2015, the Company secured financing to redeem the SBLF investment. The new term debt is a 10 year fully amortizing facility with a fixed rate of 3.90% for the first 5 years. Chief Executive Officer, Rob Farr, commented: "The SBLF program was a good opportunity for the Bank during a difficult economic period. It allowed us to access additional capital at an attractive cost to help support our continued growth. During the past 18 months, we have been evaluating our options and determined the term debt facility provided the Bank the best solution to redeem the SBLF investment without negatively impacting our shareholders or affecting our ability to execute our long term strategic plans. It will allow us to continue to create value for our shareholders and focus on our core operations."

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. Birmingham Bloomfield Bancshares, Inc. Market Makers 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.

Contact Information

  • Contact:
    Robert E. Farr
    Chief Executive Officer
    Birmingham Bloomfield Bancshares, Inc.