SOURCE: Birmingham Bloomfield Bancshares, Inc

Birmingham Bloomfield Bancshares, Inc

January 12, 2016 14:17 ET

Birmingham Bloomfield Bancshares, Inc. Announces Record Earnings for Fiscal Year 2015

BIRMINGHAM , MI--(Marketwired - January 12, 2016) - 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, 2015. The Company reported an increase in net income of 22.1% on growth in total revenue and improved operating fundamentals.

The Company reported net income of $542,000 or $0.29 per common share for the fourth quarter of 2015 compared to net income of $413,000 or $0.22 per common share for the same period of 2014. Net income for the twelve month period ended December 31, 2015 was $1,931,000 or $1.03 per common share compared to $1,581,000 or $0.85 per common share for the same period last year. The full year results represent record earnings for the Company and on a pre- tax, pre-provision basis, net income for 2015 increased 34.8% relative to 2014.

Chief Executive Officer, Rob Farr, issued the results and commented: "This was another strong year for the organization. We generated record profits, improved the core operations, delivered solid portfolio growth and addressed the SBLF investment without negatively impacting our shareholders. The full year results produced a pre-tax, pre-provision ROA of 1.57% and a pre- tax, pre-provision Return on Average Common Equity of 22.1%. Earnings per share were $1.03 and book value reached $9.28. It has been an exciting and productive year. We are very pleased with our performance and look forward to continuing to deliver superior value for our shareholders."

Results of Operation

The Company reported net interest income of $2.378 million for the fourth quarter of 2015, a 13.9% increase compared to the same quarter of 2014 and 2.4% increase from the third quarter of 2015. Net interest margin for the quarter was 3.99% compared to 4.12% for the most recent linked quarter. The margin compression was the result of a reduction in loan yields due to market pressure and modestly higher funding costs. Net interest income for the full year of 2015 was $8.911 million, an increase of 15.4% relative to the same period of 2014. The increase was the direct result of earning asset growth.

The Company provided $81,000 in provision expense during the quarter. Total provision expense for the year to date period ending December 31, 2015 was $606,000 and the allowance coverage ratio was 1.14%. The provision expense is a function of new loan volume and additional reserves required for an impaired loan. The gross amount of nonaccrual loans declined during the fourth quarter as the Company charged off $141,000 in balances. Total non-performing loans were 0.94% of total loans at December 31, 2015 compared to 1.06% for the third quarter of 2015.

Total non-interest income for the fourth quarter of 2015 was $333,000, compared to $174,000 for the same period of 2014. The increase was a function of additional SBA revenue. For the year to date period ending December 31, 2015 total non-interest income was $1,305,000, an increase of $580,000 or 80% relative to the prior period. The increase is primarily the result of additional income from the sale of SBA and mortgage loans in the secondary market.

Total non-interest expense for the fourth quarter of 2015 was $1.806 million, compared to $1.450 million in 2014. Year to date non-interest expense for 2015 was $6.613 million, an increase of 14.5% relative to the same period in 2014. The increase in expenses were the result of hiring additional personnel to support growth, investing in marketing efforts to expand our visibility in the community, costs associated with increased volume and investments in new technology.

Balance Sheet

Total assets as of December 31, 2015 were $244.2 million, an increase of $37.1 million from the prior year. Total portfolio loans reached $222.1 million at the end of the fourth quarter, an increase of $11.9 million on sequential basis from September and 21.6% from December 31, 2014. The growth is a function of favorable market conditions, an improved economic environment and diverse product options. Total deposits as of December 31, 2015 were $220.5 million, an increase of $8.5 million from the third quarter of 2015 and $34.4 million from December 31, 2014. The growth was the result of providing superior customer service, expanding our presence in the market and capturing a greater portion of existing relationships. 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 as a single point of contact empowered to provide all the bank's services. 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.

(Unaudited Consolidated Financial Statements Follow)

Birmingham Bloomfield Bancshares, Inc.
Consolidated Balance Sheet (Unaudited)

      December 31,     December 31,
      2015     2014
ASSETS            
    Cash and due from banks   $ 14,232,848   $ 15,593,072
    Federal funds sold     -     -
  Total cash and cash equivalents     14,232,848     15,593,072
 
      Securities available-for-sale     3,933,083     4,804,691
     Federal Home Loan Bank Stock     243,300     281,900
   Total securities     4,176,383     5,086,591
 
  Portfolio loans            
    Consumer loans     2,355,187     2,104,262
    Mortgage loans     35,060,825     24,597,099
    Commercial leases     35,940,633     27,234,054
    Commercial loans     148,782,782     128,819,717
  Total loans     222,139,427     182,755,132
    Less: Allowance for loan loss     2,525,350     2,060,587
  Net loans     219,614,077     180,694,545
 
    Premises and equipment, net     996,183     1,097,025
    Bank owned life insurance     2,389,018     2,323,240
    Deferred Tax Asset     1,202,501     1,052,423
    Accrued interest receivable and other assets     1,592,630     1,176,587
 
  TOTAL ASSETS   $ 244,203,640   $ 207,023,483
             
LIABILITIES          
  Deposits                  
    Noninterest-bearing   $   57,526,790     $   45,886,004
    Interest-bearing       162,960,444         140,140,219
  Total deposits       220,487,234         186,026,224
   
    Other Borrowings       4,621,000         -
    Accrued interest payable, taxes and other liabilities       1,718,161         1,069,698
  Total liabilities       226,826,395         187,095,922
 
SHAREHOLDERS' EQUITY          
    Senior preferred stock, series D   -     4,621,000
    Common Stock, no par value   17,412,285     17,281,679
      Authorized - 9,000,000 shares, Issued and outstanding - 1,872,632 and 1,857,128 shares respectively          
    Accumulated other comprehensive income   23,808     35,634
    Additional paid in capital - share based payments   514,454     493,154
    Accumulated deficit   (573,302)     (2,503,906)
  Total shareholders' equity   17,377,245     19,927,561
 
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 244,203,640   $ 207,023,483
 
Book value per share   $9.28     $8.24
           
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
 
      For the three months ended   For the twelve months ended
      December 31,   December 31,
      2015     2014     2015     2014
Interest Income                        
    Interest and fees on loans                        
      Commercial loans   $ 1,846,494   $ 1,701,146   $ 7,077,836   $ 6,548,241
      Commercial leases     454,774     301,635     1,539,358     948,737
      Consumer loans     33,684     33,132     121,197     118,612
      Mortgage loans     223,520     147,062     713,995     570,958
      Home Equity loans     117,906     110,556     443,018     414,813
      Late charges and fees     5,971     14,260     115,906     29,461
  Total loan interest and fee income     2,682,349     2,307,791     10,011,310     8,630,822
 
    Interest bearing deposits     11,375     9,481     45,233     33,699
    Federal Funds Sold     -     4,156     62     19,085
 
    Interest on investment securities                        
      Taxable     18,709     25,225     84,528     97,530
      Tax-exempt     -     -     -     1,258
  Total investment income     18,709     25,225     84,528     98,788
 
  Total interest income     2,712,433     2,346,653     10,141,133     8,782,394
 
Interest Expense                        
    Interest on deposits     329,497     257,787     1,225,859     1,057,997
    Interest on borrowed funds     4,505     17     4,506     17
  Total interest expense     334,002     257,804     1,230,365     1,058,014
 
  Net Interest Income     2,378,431     2,088,849     8,910,768     7,724,380
    Provision for loan losses     80,809     167,000     605,809     192,000
  Net Interest Income After Provision for Loan Losses     2,297,622     1,921,849     8,304,959     7,532,380
 
Non-interest Income                        
    Service charge income     26,060     24,350     102,821     121,675
    Mortgage banking activities     15,111     15,284     109,902     83,639
    SBA loan sales     259,706     99,443     963,248     392,732
    Other income     31,793     34,451     128,781     126,817
  Total non-interest income     332,670     173,528     1,304,752     724,863
 
Non-interest Expense                        
    Salaries and employee benefits     982,424     798,808     3,653,625     3,205,502
    Occupancy expense     137,303     127,266     537,688     521,595
    Equipment expense     65,202     41,823     208,456     171,901
    Advertising     89,298     55,139     269,263     213,113
    Data Processing     98,260     64,363     343,545     276,526
    Professional fees     169,403     168,100     645,768     589,382
    Loan origination expense     48,440     26,411     227,201     189,302
    Regulatory Assessments     56,385     39,053     203,765     153,018
    Other expense     159,214     129,361     523,847     455,876
  Total non-interest expense     1,805,929     1,450,324     6,613,158     5,776,215
 
  Net Income Before Income Taxes     824,363     645,053     2,996,553     2,481,028
    Income tax expense     271,741     220,888     1,020,893     853,870
  Net Income     552,622     424,165     1,975,660     1,627,158
    Dividend on preferred stock     10,397     11,552     45,055     46,210
  Net Income applicable to common shareholders   $ 542,225   $ 412,613   $ 1,930,605   $ 1,580,948
 
Income per share - basic   $ 0.29   $ 0.22   $ 1.03   $ 0.85
Birmingham Bloomfield Bancshares, Inc.              
Financial Summary and Selected Ratios (Unaudited)              
(Dollars in thousands except per share data)              
 
    Year to Date
      December 31,     Change
      2015     2014     Amount     Percentage
INCOME STATEMENT                        
    Interest Income   $ 10,141   $ 8,782   $ 1,359     15.5%
    Interest Expense     1,230     1,058     172     16.3%
  Net Interest Income     8,911     7,724     1,186     15.4%
    Provision for loan loss     606     192     414     215.5%
    Non-interest income     1,305     725     580     80.0%
    Non-interest expense     6,613     5,776     837     14.5%
  Net Income before Income Taxes     2,997     2,481     516     20.8%
    Income tax expense     1,021     854     167     19.6%
  Net Income     1,976     1,627     349     21.4%
    Dividend on preferred stock     45     46     (1 )   -2.5%
  Net Income - common shareholders   $ 1,931   $ 1,581   $ 350     22.1%
 
  Income per share - basic & diluted   $ 1.03   $ 0.85   $ 0.18     21.1%
 
BALANCE SHEET DATA                        
  Total assets     244,204     207,023     37,180     18.0%
  Average Assets     229,818     202,943     26,874     13.2%
  Total loans     222,139     182,755     39,384     21.6%
  Allowance for loan loss (ALLL)     2,525     2,061     465     22.6%
  Total deposits     220,487     186,026     34,461     18.5%
  Other borrowings     4,621     -     4,621     0.0%
  Shareholders' equity     17,377     19,928     (2,550 )   -12.8%
 
ASSET QUALITY                        
  Other real estate owned (OREO)     -     -     -     0.0%
  Net charge-offs     141     -     141     0.0%
  Non-accrual loans     2,083     187     1,896     1015.0%
(2) Non-performing assets (NPA)     2,083     187     1,896     1015.0%
  Non-accrual loans / total loans     0.94%     0.10%     0.84%     817.3%
  Allowance for loan loss / total loans     1.14%     1.13%     0.01%     0.8%
 
PERFORMANCE MEASUREMENTS                        
  Net interest margin (tax equivalent)     4.05%     4.06%     -0.01%     -0.2%
(1) Return on average assets (annualized)     0.86%     0.80%     0.06%     7.5%
(3) Return on average assets (annualized)     1.57%     1.32%     0.25%     18.9%
(1) Return on average common equity (annualized)     12.10%     11.25%     0.85%     7.6%
(3) Return on average common equity (annualized)     22.07%     18.48%     3.59%     19.4%
  Efficiency ratio     64.7%     68.4%     -3.66%     -5.4%
  Total loans / Total deposits     100.7%     98.2%     2.51%     2.6%
  Equity / Assets     7.12%     9.63%     -2.51%     -26.1%
  Tangible common equity / Total assets     7.12%     7.39%     -0.28%     -3.8%
 
  Book value per share   $ 9.28   $ 8.24   $ 1.04     12.6%
  Stock price   $ 8.65   $ 7.75   $ 0.90     11.6%
  Stock price / book value (%)     93.2%     94.0%     -0.81%     -0.9%
  Income per share - basic & diluted   $ 1.03   $ 0.85   $ 0.18     21.1%
  Price to earnings ratio (P/E) (year to date)     8.4x     9.1x     -0.7x     -7.8%
  Shares outstanding     1,872,632     1,857,128     15,504     0.8%
  Average shares outstanding     1,868,115     1,852,446     15,669     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
      December 31, 2015     September 30, 2015     June 30, 2015     March 31, 2015     December 31, 2014
   
INCOME STATEMENT                              
    Interest Income   $ 2,712   $ 2,641   $ 2,450   $ 2,337   $ 2,347
    Interest Expense     334     319     310     267     258
  Net Interest Income     2,378     2,323     2,140     2,070     2,089
    Provision for loan loss     81     -     180     345     167
    Non-interest income     333     174     562     236     174
    Non-interest expense     1,806     1,693     1,610     1,505     1,450
  Net Income before Income Taxes     824     804     912     456     645
    Income tax expense     272     280     313     156     221
  Net Income     553     524     599     300     424
    Dividend on preferred stock     10     12     12     12     12
  Net Income applicable to common shareholders   $ 542   $ 512   $ 588   $ 288   $ 413
 
  Income per share - basic & diluted   $ 0.29   $ 0.27   $ 0.31   $ 0.16   $ 0.22
 
BALANCE SHEET DATA                              
  Total assets     244,204     235,887     228,322     209,530     207,023
  Average Assets     246,503     233,756     223,792     214,806     208,493
  Total loans     222,139     210,199     202,839     189,588     182,755
  Allowance for loan loss (ALLL)     2,525     2,586     2,586     2,406     2,061
  Total deposits     220,487     212,017     204,964     187,964     186,026
  Other borrowings     4,621     -     -     -     -
  Shareholders' equity     17,377     21,459     20,931     20,263     19,928
 
ASSET QUALITY                              
  Other real estate owned (OREO)     -     -     -     -     -
  Net charge-offs     141     -     -     -     -
  Non-accrual loans     2,083     2,237     2,237     2,237     187
(2) Non-performing assets (NPA)     2,083     2,237     2,237     2,237     187
  Non-accrual loans / total loans     0.94%     1.06%     1.10%     1.18%     0.10%
  Allowance for loan loss / total loans     1.14%     1.23%     1.27%     1.27%     1.13%
 
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     3.99%     4.12%     4.00%     4.10%     4.17%
(1) Return on average assets (annualized)     0.89%     0.89%     1.07%     0.57%     0.81%
(3) Return on average assets (annualized)     1.46%     1.37%     1.96%     1.51%     1.55%
(1) Return on average common equity (annualized)     12.79%     12.52%     15.03%     7.83%     11.13%
(3) Return on average common equity (annualized)     20.96%     19.22%     27.39%     20.90%     21.30%
  Efficiency ratio     66.6%     67.8%     59.6%     65.3%     64.1%
  Total loans / Total deposits     100.7%     99.1%     99.0%     100.9%     98.2%
  Equity / Assets     7.12%     9.10%     9.17%     9.67%     9.63%
  Tangible common equity / Total assets     7.12%     7.14%     7.14%     7.47%     7.39%
 
  Book value per share   $ 9.28   $ 8.99   $ 8.71   $ 8.40   $ 8.24
  Stock price   $ 8.65   $ 8.50   $ 9.05   $ 8.40   $ 7.75
  Stock price / book value (%)     93.2%     94.5%     103.9%     100.0%     94.0%
  Income per share - basic & diluted   $ 0.29   $ 0.27   $ 0.31   $ 0.16   $ 0.22
  Shares outstanding     1,872,632     1,872,632     1,872,632     1,861,632     1,857,128
  Average shares outstanding     1,872,632     1,872,632     1,866,830     1,860,181     1,857,128

(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 E. Farr
    Chief Executive Officer
    Birmingham Bloomfield Bancshares, Inc.
    248-283-6430