SOURCE: Birmingham Bloomfield Bancshares, Inc.

July 25, 2012 17:01 ET

Birmingham Bloomfield Bancshares, Inc. Announces Increase in Pre-Tax Income and Loan Growth for the Period Ended June 30, 2012

BIRMINGHAM, MI--(Marketwire - Jul 25, 2012) -  Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and six month periods ended June 30, 2012. The performance generated an increase in pre-tax earnings and produced growth in portfolio loans.

The Company reported net income of $208,000 or $0.11 per common share for the second quarter of 2012 compared to net income of $261,000 or $0.15 per common share for the same period of 2011. Net income for the six month period ended June 30, 2012 was $544,000 or $0.30 per common share compared to $676,000 or $0.38 per common share for the same period last year. The overall performance was impacted by the recognition of income tax expense in 2012 not required in 2011. Excluding tax expense of $111,000 and $283,000 for the three and six month periods, pre-tax net income before preferred dividends was $341,000 and 860,000, respectively, this represents an increase of 10.1% and 11.4% relative to the comparable periods of 2011.

Chief Executive Officer, Rob Farr, issued the results and commented, "We continue to see positive improvements in the core operations of the Bank and the results for the first six months of 2012 represent a record profit for the Company on a pre-tax basis. We have been able to successfully grow the institution with quality loan opportunities and improve the profitability of the balance sheet. Our net interest margin was 4.91% for the quarter and total assets reached $139.9 million, an increase of 12.4% from December 31, 2011. The results demonstrate the earnings capacity of the Bank and our focus on increasing franchise value for our shareholders. We are optimistic about the remainder of 2012 and are excited about the future possibilities for the organization."

Results of Operation

The Company reported net interest income of $1.496 million for the second quarter of 2012, a 19.6% increase relative to the same quarter of 2011 and a 7.3% increase compared to the most recent linked quarter. The improvement was the result of portfolio loan growth and a reduction in the average cost of deposits. Net interest margin for the quarter was 4.91%, the highest quarterly margin reported by the Company. This was achieved by improving the earning asset mix and lowering funding costs. Net interest income for the first six months of 2012 increased 15.1% to $2.889 million compared to the same period of 2011. Net interest margin for the year to date period ended June 30, 2012 was 4.86% compared to 4.50% in 2011.

Revenue from non-interest income sources continues to positively impact operating results. Total non-interest income for the three and six month periods ended June 30, 2012 was $112,000 and $596,000, respectively. Relative to 2011, total non-interest income declined for both reportable periods as a result of lower SBA loan volume but the impact of the lost revenue was offset by an increase in earnings on residential mortgages sold in the secondary market, additional ancillary fee income and a gain from the sale of a bank owned property. The additional Mortgage Banking income was the result of increased volume in sales of qualified residential loans due to the favorable interest rate environment.

Total non-interest expense for the second quarter of 2012 was $1.216 million, compared to $1.207 million for the second quarter of 2011 and $1.338 million for the first quarter of 2012. Year to date non-interest expense for 2012 was $2.555 million, an increase of $265,000 relative to the same period in 2011. The increase in expenses was the result of hiring new personnel to accommodate future growth, expansion of infrastructure, investment in operating systems to improve services, costs associated with additional volume from residential mortgage activity, and dedicating resources to business marketing efforts to increase market share in our local communities.

Balance Sheet

Total assets as of June 30, 2012 were $139.9 million, a 17.9% increase from the prior year. The increase was a result of a focused effort to generate core, organic loan growth in our primary market. Total portfolio loans reached $113.1 million at the end of the second quarter, an increase of $6.4 million from March 31, 2012 and $13.0 million from June 30, 2011. The increase was primarily concentrated in commercial real estate and mortgage related loans. The asset quality of the Company remains solid; there were no non-performing asset outstanding and the allowance for loan loss was 1.45% of total portfolio loans. Total deposits as of June 30, 2012 were $122.6 million, an increase of 15.4% from the same period in 2011. The Bank also continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 9.82% for the quarter.

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 Howe Barnes Hoefer and Arnett (acquired by Raymond James), Chicago; Monroe Securities, Chicago; and Hudson Securities, Inc., Jersey City, New Jersey.

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 included in the Company's filings with the Securities and Exchange Commission, available free via EDGAR. The Company assumes no responsibility to update forward-looking statements. 

(Unaudited Consolidated Financial Statements Follow)

   
   
Birmingham Bloomfield Bancshares, Inc.  
Consolidated Balance Sheet (Unaudited)  
                   
    June 30,     December 31,     June 30,  
    2012     2011     2011  
ASSETS                        
    Cash and due from banks   $ 17,114,837     $ 4,693,585     $ 13,251,574  
    Federal funds sold     -       -       -  
  Total cash and cash equivalents     17,114,837       4,693,585       13,251,574  
                         
    Securities available-for-sale     3,932,096       4,594,761       2,951,686  
    Securities held-to-maturity     -       -       -  
    Federal Home Loan Bank Stock     218,100       169,900       169,900  
  Total securities     4,150,196       4,764,661       3,121,586  
                         
  Loans held for sale     -       2,484,829       793,209  
                         
  Portfolio loans                        
    Consumer loans     1,163,050       1,305,501       1,065,737  
    Mortgage loans     14,503,119       11,572,620       10,545,335  
    Commercial loans     97,408,101       93,419,805       88,467,511  
  Total loans     113,074,270       106,297,926       100,078,583  
    Less: Allowance for loan loss     1,644,350       1,574,350       1,502,099  
  Net loans     111,429,920       104,723,576       98,576,484  
                         
    Premises and equipment, net     1,327,169       1,395,187       1,480,407  
    Bank owned life insurance     2,141,791       2,100,000       -  
    Accrued interest receivable and other assets     3,687,380       4,235,623       1,380,689  
                         
  TOTAL ASSETS   $ 139,851,293     $ 124,397,461     $ 118,603,949  
                         
LIABILITIES                        
  Deposits                        
    Noninterest-bearing   $ 20,714,602     $ 19,662,283     $ 16,374,765  
    Interest-bearing     101,935,329       88,015,546       89,930,476  
  Total deposits     122,649,931       107,677,829       106,305,241  
                         
    Short term borrowings     -       -       -  
    Accrued interest payable, taxes and other liabilities     655,566       755,090       602,245  
  Total liabilities     123,305,497       108,432,919       106,907,486  
                         
SHAREHOLDERS' EQUITY                        
    Senior preferred stock A                     1,635,000  
    Discount on senior preferred stock A                     (51,826 )
    Warrant preferred stock B                     82,000  
    Premium on warrant preferred stock B                     5,633  
    Senior preferred stock C                     1,744,000  
    Senior preferred stock, series D     4,621,000       4,621,000       -  
    Common Stock, no par value     17,105,618       17,066,618       17,034,330  
    Authorized - 9,000,000 shares, Issued and outstanding - 1,824,662                        
    1,812,662 and 1,800,000 shares respectively                        
    Accumulated other comprehensive income     93,209       95,168       139,975  
    Additional paid in capital - share based payments     493,154       493,154       493,154  
    Accumulated deficit     (5,767,185 )     (6,311,398 )     (9,385,803 )
  Total shareholders' equity     16,545,796       15,964,542       11,696,463  
                         
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 139,851,293     $ 124,397,461     $ 118,603,949  
                         
Book value per share   $ 6.54     $ 6.26     $ 4.60  
                         
                         
                         
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
                 
    For the three months ended   For the six months ended
    June 30,   June 30,
    2012   2011   2012   2011
Interest Income                        
    Interest and fees on loans                        
      Commercial loans   $ 1,487,392   $ 1,401,178   $ 2,915,068   $ 2,814,965
      Installment loans     16,221     13,459     34,278     26,547
      Mortgage loans     61,775     15,644     111,493     35,169
      Home Equity loans     93,516     97,661     187,738     195,592
      Late charges and fees     31,610     6,302     34,253     17,780
  Total loan interest and fee income     1,690,514     1,534,244     3,282,831     3,090,053
                         
    Interest bearing deposits     3,176     5,733     6,590     10,351
    Federal Funds Sold     -     -     -     13
                         
    Interest on investment securities                        
      Taxable     24,252     24,811     48,940     52,722
      Tax-exempt     1,000     -     2,008     -
  Total investment income     25,252     24,811     50,948     52,722
                         
  Total interest income     1,718,942     1,564,788     3,340,369     3,153,139
                         
Interest Expense                        
    Interest on deposits     223,390     313,877     450,947     627,932
    Interest on borrowed funds     -     -     64     14,509
  Total interest expense     223,390     313,877     451,011     642,441
                         
  Net Interest Income     1,495,552     1,250,911     2,889,358     2,510,698
    Provision for loan losses     50,000     15,000     70,000     54,000
  Net Interest Income After Provision for Loan Losses     1,445,552     1,235,911     2,819,358     2,456,698
                         
Non-interest Income                        
    Service charge income     20,499     12,589     39,297     24,161
    Mortgage banking activities     34,039     47,322     196,867     58,761
    SBA loan sales     26,958     209,439     148,749     500,733
    Other income     30,130     10,814     210,702     21,618
  Total non-interest income     111,626     280,164     595,615     605,273
                         
Non-interest Expense                        
    Salaries and employee benefits     640,169     643,368     1,401,839     1,225,385
    Occupancy expense     114,936     125,583     234,667     243,685
    Equipment expense     51,127     42,188     100,279     77,588
    Advertising     47,874     44,697     90,468     80,743
    Data Processing     58,039     60,560     117,041     109,573
    Professional fees     159,267     145,916     276,301     257,440
    Loan origination expense     38,044     22,681     107,056     49,050
    Regulatory Assessments     23,715     33,901     48,975     82,327
    Other expense     83,059     87,625     178,099     164,144
  Total non-interest expense     1,216,230     1,206,519     2,554,725     2,289,935
                         
  Net Income Before Income Taxes     340,948     309,556     860,248     772,036
    Income tax expense     111,298     -     282,651     -
  Net Income     229,650     309,556     577,597     772,036
    Dividend and accretion on preferred stock     21,831     48,182     33,384     96,365
  Net Income applicable to common shareholders   $ 207,819   $ 261,374   $ 544,213   $ 675,671
                         
Income per share - basic   $ 0.11   $ 0.15   $ 0.30   $ 0.38
                         
                         
                         
                   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
                           
      Year to Date  
      June 30,     Change  
      2012     2011     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 3,340     $ 3,153     $ 187     5.9 %
    Interest Expense     451       642       (191 )   -29.8 %
  Net Interest Income     2,889       2,511       379     15.1 %
    Provision for loan loss     70       54       16     29.6 %
    Non-interest income     596       605       (10 )   -1.6 %
    Non-interest expense     2,555       2,290       265     11.6 %
  Net Income before Income Taxes     860       772       88     11.4 %
    Income tax expense     283       -       283     0.0 %
  Net Income     578       772       (194 )   -25.2 %
    Dividend and accretion on preferred stock     33       96       (63 )   -65.4 %
  Net Income - common shareholders   $ 544     $ 676     $ (131 )   -19.5 %
                                 
  Income per share - basic & diluted   $ 0.30     $ 0.38     $ (0.08 )   -20.1 %
                                 
BALANCE SHEET DATA                              
  Total assets     139,851       118,604       21,247     17.9 %
  Average Assets     130,437       116,223       14,214     12.2 %
  Total loans     113,074       100,079       12,996     13.0 %
  Allowance for loan loss (ALLL)     1,644       1,502       142     9.5 %
  Total deposits     122,650       106,305       16,345     15.4 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     16,546       11,696       4,849     41.5 %
  Average Equity     16,308       11,325       4,983     44.0 %
                                 
ASSET QUALITY                              
  Other real estate owned (OREO)     -       298       (298 )   -100.0 %
  Net charge-offs     -       -       -     0.0 %
  Non-accrual loans     -       -       -     0.0 %
(2) Non-performing assets (NPA)     -       298       (298 )   -100.0 %
  Non-accrual loans / total loans     0.00 %     0.00 %     0.00 %   0.0 %
  Allowance for loan loss / total loans     1.45 %     1.50 %     -0.05 %   -3.1 %
                                 
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     4.86 %     4.50 %     0.36 %   8.0 %
(1) Return on average assets (annualized)     0.89 %     1.34 %     -0.45 %   -33.6 %
(3) Return on average assets (annualized)     1.43 %     1.43 %     0.00 %   -0.2 %
(1) Return on average common equity (annualized)     9.94 %     19.68 %     -9.74 %   -49.5 %
(3) Return on average common equity (annualized)     16.01 %     21.05 %     -5.04 %   -23.9 %
  Efficiency ratio     73.31 %     73.49 %     -0.18 %   -0.2 %
  Tier 1 Leverage Ratio (Bank only)     9.82 %     8.54 %     1.28 %   14.99 %
  Equity / Assets     11.83 %     9.86 %     1.97 %   20.0 %
  Total loans / Total deposits     92.2 %     94.1 %     -1.95 %   -2.1 %
  Book value per share   $ 6.54     $ 4.60     $ 1.93     42.0 %
  Income (loss) per share - basic & diluted   $ 0.30     $ 0.38     $ (0.08 )   -20.1 %
  Shares outstanding     1,824,662       1,800,000       24,662     1.4 %
  Average shares outstanding     1,814,442       1,800,000       14,442     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  
      June 30,   March 31,   December 31,   September 30,   June 30,  
      2012   2012   2011   2011   2011  
INCOME STATEMENT                                
    Interest Income   $ 1,719   $ 1,621   $ 1,630   $ 1,582   $ 1,565  
    Interest Expense     223     228     280     301     314  
  Net Interest Income     1,496     1,394     1,350     1,281     1,251  
    Provision for loan loss     50     20     75     105     15  
    Non-interest income     112     484     309     319     280  
    Non-interest expense     1,216     1,338     1,484     1,317     1,207  
  Net Income before Income Taxes     341     519     100     177     310  
    Income tax expense (benefit)     111     171     (2,885 )   -     -  
  Net Income     230     348     2,985     177     310  
    Dividend and accretion on preferred stock     22     12     20     68     48  
  Net Income applicable to common shareholders   $ 208   $ 336   $ 2,965   $ 109   $ 261  
                                   
  Income per share - basic & diluted   $ 0.11   $ 0.19   $ 1.64   $ 0.06   $ 0.15  
                                   
BALANCE SHEET DATA                                
  Total assets     139,851     128,663     124,397     124,743     118,604  
  Average Assets     134,375     126,499     123,317     121,526     117,002  
  Total loans     113,074     106,628     106,298     102,580     100,079  
  Allowance for loan loss (ALLL)     1,644     1,594     1,574     1,499     1,502  
  Total deposits     122,650     111,774     107,678     111,171     106,305  
  Other borrowings     -     -     -     -     -  
  Shareholders' equity     16,546     16,297     15,965     13,056     11,696  
  Average Equity     16,410     16,206     13,584     12,520     11,481  
                                   
ASSET QUALITY                                
  Other real estate owned (OREO)     -     -     298     298     298  
  Net charge-offs     -     -     -     108     -  
  Non-accrual loans     -     -     -     -     -  
(2) Non-performing assets (NPA)     -     -     298     298     298  
  Non-accrual loans / total loans     0.00 %   0.00 %   0.00 %   0.00 %   0.00 %
  Allowance for loan loss / total loans     1.45 %   1.50 %   1.48 %   1.46 %   1.50 %
                                   
PERFORMANCE MEASUREMENTS                                
  Net interest margin (tax equivalent)     4.91 %   4.80 %   4.61 %   4.44 %   4.51 %
(1) Return on average assets (annualized)     0.69 %   1.11 %   9.60 %   0.58 %   1.06 %
(3) Return on average assets (annualized)     1.17 %   1.71 %   0.56 %   0.92 %   1.11 %
(1) Return on average common equity (annualized)     7.84 %   12.08 %   132.13 %   8.50 %   15.39 %
(3) Return on average common equity (annualized)     13.34 %   18.72 %   7.77 %   13.54 %   16.13 %
  Efficiency ratio     75.67 %   71.28 %   89.43 %   82.37 %   78.80 %
  Tier 1 Leverage Ratio (Bank only)     9.82 %   10.13 %   9.94 %   9.22 %   8.54 %
  Equity / Assets     11.83 %   12.67 %   12.83 %   10.47 %   9.86 %
  Total loans / Total deposits     92.2 %   95.4 %   98.7 %   92.3 %   94.1 %
  Book value per share   $ 6.54   $ 6.44   $ 6.26   $ 4.65   $ 4.60  
  Income (loss) per share - basic & diluted   $ 0.11   $ 0.19   $ 1.64   $ 0.06   $ 0.15  
  Shares outstanding     1,824,662     1,812,662     1,812,662     1,812,662     1,800,000  
  Average shares outstanding     1,816,222     1,812,662     1,812,662     1,801,652     1,800,000  
                                   
(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