SOURCE: Birmingham Bloomfield Bancshares, Inc

Birmingham Bloomfield Bancshares, Inc

July 28, 2015 10:30 ET

Birmingham Bloomfield Bancshares, Inc. Announces Record Earnings for Period Ended June 30, 2015

BIRMINGHAM, MI--(Marketwired - July 28, 2015) - 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, 2015. The Company experienced solid asset growth and generated record earnings on an increase in core earnings.

The Company reported net income of $588,000 or $0.31 per common share for the second quarter of 2015 compared to net income of $345,000 or $0.19 per common share for the same period of 2014. Net income for the six month period ended June 30, 2015 was $876,000 or $0.47 per common share compared to $716,000 or $0.39 per common share for the same period last year.

Chief Executive Officer, Rob Farr, issued the results and commented: "The performance represents record earnings for the Bank and produced a pre-tax, pre-provision ROA of 1.74%. The results are the product of higher profit margins, improved efficiency and growth in earning assets. Net Income on a pre-tax, pre-provision basis increased 68% from 2014 and total assets have grown $23.3 million over the past twelve months. We have also seen positive movement in the market and currently trade at a premium to book value. This was a solid start to 2015 and we are focused on maintaining the momentum for the remainder of the year."

Results of Operation

The Company reported net interest income of $2.140 million for the second quarter of 2015, a 14.5% increase compared to the same quarter of 2014 and 3.4% increase from the first quarter of 2015. Net interest margin for the quarter was 4.00% compared to 4.10% for the most recent linked quarter and 4.17% for December 31, 2014. The margin compression is a function of changes in the earning asset mix of the Company's balance sheet, competitive pricing environment and marginally higher funding costs. Net interest income for the first six months of 2015 was $4.210 million, an increase of 14.2% relative to the same period of 2014. The increase was the direct result of earning asset growth.

The Company provided $180,000 in provision expense during the quarter as the result of new loan volume. Total provision expense for the year to date period ending June 30, 2015 was $525,000 and the allowance coverage ratio was 1.27%. There have been no net charge offs during the period and total nonaccrual loans remained flat relative to the first quarter of 2015.

Total non-interest income for the second quarter of 2015 was $562,000, compared to $134,000 for the same period of 2014. For the year to date period ending June 30, 2015 total non-interest income was $798,000, an increase of $443,000 relative to the prior period. The increase is primarily a result of additional income from the sale of SBA loans in the secondary market.

Total non-interest expense for the second quarter of 2015 was $1.610 million, compared to $1.460 million in 2014. Year to date non-interest expense for 2015 was $3.115 million, an increase of $196,000 relative to the same period in 2014. The increase in expenses was the result of hiring additional personnel to support growth, investing in our marketing efforts to promote the bank, engaging professionals to assist with the banks long term strategic initiatives and additional collection costs associated with resolving a problem loan.

Balance Sheet

Total assets as of June 30, 2015 were $228.3 million, an increase of $23.2 million from the prior year and 10.3% from December 31, 2014. The growth was a result of our strong foundation, quality product options and expanding presence in our core market. Total portfolio loans reached $202.8 million at the end of the second quarter, an increase of $13.3 million from first quarter and $36.9 million from June 30, 2014. The increase is due to improved economic conditions, strong marketing approach and superior service. The asset quality of the Company remains solid. There have been no charge offs and total non-performing loans remained flat relative to March 31, 2015. Total deposits as of June 30, 2015 were $204.9 million, an increase of $19.9 million from the same period in 2014. The growth was a function of our more visible profile in the community, expansion of existing relationships and aggressive pursuit of new 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 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)
 
     June 30,     December 31,     June 30,  
     2015     2014     2014  
ASSETS                   
  Cash and due from banks  $ 17,428,891   $ 15,593,072   $ 21,468,556  
  Federal funds sold    -     -     7,554,641  
 Total cash and cash equivalents    17,428,891     15,593,072     29,023,197  
   
  Securities available-for-sale    4,380,578     4,804,691     5,750,600  
  Federal Home Loan Bank Stock    243,300     281,900     281,900  
 Total securities    4,623,878     5,086,591     6,032,500  
   
 Portfolio loans                   
  Consumer loans    2,055,653     2,104,262     2,220,995  
  Mortgage loans    27,411,925     24,597,099     22,614,476  
  Commercial leases    32,466,654     27,234,054     18,140,055  
  Commercial loans    140,904,476     128,819,717     122,952,339  
 Total loans    202,838,708     182,755,132     165,927,865  
  Less: Allowance for loan loss    2,585,587     2,060,587     1,868,587  
 Net loans    200,253,121     180,694,545     164,059,278  
   
  Premises and equipment, net    1,033,857     1,097,025     1,177,896  
  Bank owned life insurance    2,356,060     2,323,240     2,289,728  
  Deferred Tax Asset    1,249,940     1,052,423     1,299,194  
  Accrued interest receivable and other assets    1,376,604     1,176,587     1,192,496  
   
  
 TOTAL ASSETS  $ 228,322,351   $ 207,023,483   $ 205,074,289  
             
LIABILITIES                   
 Deposits                   
  Noninterest-bearing  $ 50,573,628   $ 45,886,004   $ 40,264,315  
  Interest-bearing    154,390,799     140,140,219     144,832,427  
 Total deposits    204,964,427     186,026,223     185,096,742  
   
  Short term borrowings    -     -     -  
  Accrued interest payable, taxes and other liabilities    2,427,274     1,069,698     912,604  
 Total liabilities    207,391,701     187,095,922     186,009,346  
   
SHAREHOLDERS' EQUITY                   
  Senior preferred stock, series D    4,621,000     4,621,000     4,621,000  
  Common Stock, no par value    17,412,285     17,281,679     17,281,679  
   Authorized - 9,000,000 shares, Issued and outstanding - 1,872,632, 1,857,128 and 1,857,128 shares respectively                   
  Accumulated other comprehensive income    32,064     35,634     38,190  
  Additional paid in capital - share based payments    493,154     493,154     493,154  
  Accumulated deficit    (1,627,853 )   (2,503,906 )   (3,369,080 )
 Total shareholders' equity    20,930,650     19,927,561     19,064,943  
   
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 228,322,351   $ 207,023,483   $ 205,074,289  
   
Book value per share    $8.71     $8.24     $7.78  
             
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
 
   For the three months ended  For the six months ended
   June 30,  June 30,
     2015    2014    2015    2014
Interest Income                    
  Interest and fees on loans                    
   Commercial loans  $ 1,760,658  $ 1,614,734  $ 3,437,884  $ 3,208,661
   Commercial leases    356,663    211,136    677,768    393,937
   Consumer loans    27,337    29,678    55,389    54,124
   Mortgage loans    155,400    143,521    298,512    285,421
   Home Equity loans    108,800    99,948    215,075    195,485
   Late charges and fees    6,857    5,189    33,173    9,310
 Total loan interest and fee income    2,415,715    2,104,206    4,717,801    4,146,938
  
  Interest bearing deposits    12,116    8,775    23,495    16,945
  Federal Funds Sold    -    6,814    62    6,814
  
  Interest on investment securities                    
   Taxable    22,485    26,322    45,906    45,499
   Tax-exempt    -    316    -    1,258
 Total investment income    22,485    26,638    45,906    46,757
  
 Total interest income    2,450,315    2,146,433    4,787,264    4,217,454
  
Interest Expense                    
  Interest on deposits    310,301    276,707    577,499    530,614
  Interest on borrowed funds    -    -    1    -
 Total interest expense    310,301    276,707    577,500    530,614
  
 Net Interest Income    2,140,014    1,869,726    4,209,764    3,686,840
  Provision for loan losses    180,000    -    525,000    -
 Net Interest Income After Provision for Loan Losses    1,960,014    1,869,726    3,684,764    3,686,840
  
Non-interest Income                    
  Service charge income    24,777    50,493    51,286    72,765
  Mortgage banking activities    25,132    21,466    53,348    51,059
  SBA loan sales    478,634    30,141    627,506    169,505
  Other income    33,161    32,151    65,683    61,291
 Total non-interest income    561,704    134,251    797,823    354,620
  
Non-interest Expense                    
  Salaries and employee benefits    894,635    811,890    1,765,691    1,634,323
  Occupancy expense    139,840    125,909    273,553    269,397
  Equipment expense    49,873    43,857    94,930    90,942
  Advertising    67,083    65,400    134,193    111,616
  Data Processing    80,130    80,811    149,608    152,381
  Professional fees    153,870    136,524    271,644    273,338
  Loan origination expense    51,228    52,205    96,242    98,591
  Regulatory Assessments    43,189    38,410    85,229    75,794
  Other expense    129,867    104,801    243,627    211,401
 Total non-interest expense    1,609,715    1,459,807    3,114,717    2,917,783
  
 Net Income Before Income Taxes    912,003    544,170    1,367,870    1,123,677
  Income tax expense    312,813    187,217    468,714    384,798
 Net Income    599,190    356,953    899,156    738,879
  Dividend on preferred stock    11,552    11,552    23,105    23,105
 Net Income applicable to common shareholders  $ 587,638  $ 345,401  $ 876,051  $ 715,774
  
Income per share - basic  $ 0.31  $ 0.19  $ 0.47  $ 0.39
             
 
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
 
   Year to Date
   June 30,  Change
   2015  2014  Amount  Percentage
INCOME STATEMENT                  
  Interest Income  $ 4,787  $ 4,217  $ 570  13.5%
  Interest Expense    578    531    47  8.8%
 Net Interest Income    4,210    3,687    523  14.2%
  Provision for loan loss    525    -    525  0.0%
  Non-interest income    798    355    443  125.0%
  Non-interest expense    3,115    2,918    197  6.7%
 Net Income before Income Taxes    1,368    1,124    244  21.7%
  Income tax expense    469    385    84  21.8%
 Net Income    899    739    160  21.7%
  Dividend on preferred stock    23    23    -  0.0%
 Net Income - common shareholders  $ 876  $ 716  $ 160  22.4%
 
 Income per share - basic & diluted  $ 0.47  $ 0.39  $ 0.08  21.4%
 
BALANCE SHEET DATA                  
 Total assets    228,322    205,074    23,248  11.3%
 Average Assets    219,335    198,321    21,014  10.6%
 Total loans    202,839    165,928    36,911  22.2%
 Allowance for loan loss (ALLL)    2,586    1,869    717  38.4%
 Total deposits    204,964    185,097    19,868  10.7%
 Other borrowings    -    -    -  0.0%
 Shareholders' equity    20,931    19,065    1,866  9.8%
 
ASSET QUALITY                  
 Other real estate owned (OREO)    -    -    -  0.0%
 Net charge-offs    -    -    -  0.0%
 Non-accrual loans    2,237    192    2,045  1064.6%
(2) Non-performing assets (NPA)    2,237    192    2,045  1064.6%
 Non-accrual loans / total loans    1.10%    0.12%    0.99%  852.7%
 Allowance for loan loss / total loans    1.27%    1.13%    0.15%  13.2%
 
PERFORMANCE MEASUREMENTS                  
 Net interest margin (tax equivalent)    4.04%    4.05%    -0.01%  -0.2%
(1) Return on average assets (annualized)    0.83%    0.75%    0.08%  10.7%
(3) Return on average assets (annualized)    1.74%    1.14%    0.60%  52.6%
(1) Return on average common equity (annualized)    11.50%    10.63%    0.87%  8.2%
(3) Return on average common equity (annualized)    24.21%    16.16%    8.05%  49.8%
 Efficiency ratio    62.2%    72.2%    -10.00%  -13.8%
(3) Profit Margin    37.8%    27.8%    10.00%  36.0%
 Total loans / Total deposits    99.0%    89.6%    9.32%  10.4%
 Equity / Assets    9.17%    9.30%    -0.13%  -1.4%
 Tangible common equity / Total assets    7.14%    7.04%    0.10%  1.4%
 
 Book value per share  $ 8.71  $ 7.78  $ 0.93  12.0%
 Stock price  $ 9.05  $ 6.50  $ 2.55  39.2%
 Stock price / book value (%)    103.9%    83.6%    20.34%  24.3%
 Income per share - basic & diluted  $ 0.47  $ 0.39  $ 0.08  21.4%
 Income per share - basic & diluted (LTM)  $ 0.94  $ 0.76  $ 0.18  23.7%
 Price to earnings ratio (P/E) (year to date)    9.5x    8.3x    1.2x  14.7%
 Shares outstanding    1,872,632    1,857,128    15,504  0.8%
 Average shares outstanding    1,863,524    1,847,687    15,837  0.9%

(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,
   2015  2015  2014  2014  2014
INCOME STATEMENT                         
  Interest Income  $ 2,450  $ 2,337  $ 2,347  $ 2,218  $ 2,146
  Interest Expense    310    267    258    270    277
 Net Interest Income    2,140    2,070    2,089    1,949    1,870
  Provision for loan loss    180    345    167    25    -
  Non-interest income    562    236    174    197    134
  Non-interest expense    1,610    1,505    1,450    1,408    1,460
 Net Income before Income Taxes    912    456    645    712    544
  Income tax expense    313    156    221    248    187
 Net Income    599    300    424    464    357
  Dividend on preferred stock    12    12    12    12    12
 Net Income applicable to common shareholders  $ 588  $ 288  $ 413  $ 453  $ 345
 
 Income per share - basic & diluted  $ 0.31  $ 0.16  $ 0.22  $ 0.24  $ 0.19
 
BALANCE SHEET DATA                         
 Total assets    228,322    209,530    207,023    204,715    205,074
 Average Assets    223,792    214,806    208,493    206,489    204,198
 Total loans    202,839    189,588    182,755    170,553    165,928
 Allowance for loan loss (ALLL)    2,586    2,406    2,061    1,894    1,869
 Total deposits    204,964    187,964    186,026    184,323    185,097
 Other borrowings    -    -    -    -    -
 Shareholders' equity    20,931    20,263    19,928    19,511    19,065
 
ASSET QUALITY                         
 Other real estate owned (OREO)    -    -    -    -    -
 Net charge-offs    -    -    -    -    -
 Non-accrual loans    2,237    2,237    187    187    192
(2) Non-performing assets (NPA)    2,237    2,237    187    187    192
 Non-accrual loans / total loans    1.10%    1.18%    0.10%    0.11%    0.12%
 Allowance for loan loss / total loans    1.27%    1.27%    1.13%    1.11%    1.13%
 
PERFORMANCE MEASUREMENTS                         
 Net interest margin (tax equivalent)    4.00%    4.10%    4.17%    3.92%    3.95%
(1) Return on average assets (annualized)    1.07%    0.57%    0.81%    0.89%    0.70%
(3) Return on average assets (annualized)    1.96%    1.51%    1.55%    1.42%    1.07%
(1) Return on average common equity (annualized)    15.03%    7.83%    11.13%    12.55%    10.08%
(3) Return on average common equity (annualized)    27.39%    20.90%    21.30%    19.95%    15.37%
 Efficiency ratio    59.6%    65.3%    64.1%    65.6%    72.8%
(3) Profit Margin    40.4%    34.7%    35.9%    34.4%    27.2%
 Total loans / Total deposits    99.0%    100.9%    98.2%    92.5%    89.6%
 Equity / Assets    9.17%    9.67%    9.63%    9.53%    9.30%
 Tangible common equity / Total assets    7.14%    7.47%    7.39%    7.27%    7.04%
 
 Book value per share  $ 8.71  $ 8.40  $ 8.24  $ 8.02  $ 7.78
 Stock price  $ 9.05  $ 8.40  $ 7.75  $ 7.05  $ 6.50
 Stock price / book value (%)    103.9%    100.0%    94.0%    87.9%    83.6%
 Income per share - basic & diluted  $ 0.31  $ 0.16  $ 0.22  $ 0.24  $ 0.19
 Shares outstanding    1,872,632    1,861,632    1,857,128    1,857,128    1,857,128
 Average shares outstanding    1,866,830    1,860,181    1,857,128    1,857,128    1,851,205

(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