SOURCE: Birmingham Bloomfield Bancshares, Inc.

October 14, 2014 12:16 ET

Birmingham Bloomfield Bancshares, Inc. Announces Record Results for Period Ended September 30, 2014

BIRMINGHAM, MI--(Marketwired - Oct 14, 2014) -  Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and nine month periods ended September 30, 2014. The Company generated record earnings for the quarter and continues to experience solid loan growth. 

The Company reported net income of $453,000 or $0.24 per common share for the third quarter of 2014 compared to net income of $268,000 or $0.15 per common share for the same period of 2013. Net income for the nine month period ended September 30, 2014 was $1,168,000 or $0.63 per common share compared to $787,000 or $0.43 per common share for the same period last year.

Chief Executive Officer, Rob Farr, issued the results and commented, "The performance represents the best quarter in the Company's history, and net income for the first nine months of the year has increased 48.5% from 2013. Our core operations continue to improve, producing a pre-tax, pre-provision return on average assets 'ROA' of 1.24%. We experienced strong growth in our loan portfolio during the period as we gain momentum in our primary markets by providing quality products and delivering exceptional service to our customers. We remain focused on creating value for our shareholders and continually improving our performance."

Results of Operation

The Company reported net interest income of $1.949 million for the third quarter of 2014, an increase of 11.2% compared to the same quarter of 2013 and a 4.2% increase relative to the second quarter of 2014. Net interest margin for the quarter was 3.83% compared to 3.89% for the most recent linked quarter. The compression is a function of changes in the earning asset mix of the Company's balance sheet and the current rate environment. Net interest income for the first nine months of 2014 was $5.636 million, an increase of 13.5% relative to the same period of 2013. The increase was the direct result of growth in earning assets.

The Company provided $25,000 in provision expense during the third quarter of 2014, compared to $180,000 for the same period last year. Total provision expense for the year to date period ending September 30, 2014 was $25,000, compared to $280,000 for the nine month period in 2013. The current year provision expense was a function of the new loan growth.

Total non-interest income for the third quarter of 2014 was $197,000, compared to $210,000 for the same period of 2013. For the year to date period ending September 30, 2014 total non-interest income was $551,000, a decrease of $58,000 relative to the prior period. The decrease was a result of reduced loan volume related to commercial SBA and residential mortgage loans sold in the secondary market. Service charges on deposit products have increased relative to the prior year due to aggregate growth in the portfolio.

Total non-interest expense for the third quarter of 2014 was $1.408 million, compared to $1.460 million for the most recent linked quarter and $1.458 million for the first quarter of 2014. The positive trend in operating expenses for the year was a result of focused efforts by the Company to improve efficiency and lower the cost burden. Year to date non-interest expense for 2014 was $4.326 million, an increase of $272,000 relative to 2013. The increase in expenses from a year over year perspective are a result of the Company's growth, specifically hiring new personnel and investments in new products and services.

Balance Sheet

Total assets as of September 30, 2014 were $204.7 million, an increase of 12.1% from the prior year and 8.5% from December 31, 2013. Total portfolio loans reached $170.6 million at the end of the third quarter, an increase of $4.6 million from June 30, 2014 and $19.0 million from September 30, 2013. The growth was a result of our expanded presence in the market and diverse product options. The asset quality of the Company remains solid. There have been no charge offs recorded in 2014 and total non-performing loans continue to decline. The allowance for loan loss was 1.11% of total portfolio loans at the end of the period. Total deposits as of September 30, 2014 were $184.3 million, an increase of 8.7% from December 31, 2013. The growth was a function of our focused marketing efforts and customer service based approach. 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)  
                   
    September 30,     December 31,     September 30,  
    2014     2013     2013  
ASSETS                        
    Cash and due from banks   $ 14,733,906     $ 22,585,199     $ 23,426,914  
    Federal funds sold     9,705,254       -       -  
  Total cash and cash equivalents     24,439,160       22,585,199       23,426,914  
                         
    Securities available-for-sale     5,639,151       2,626,716       3,007,173  
    Securities held-to-maturity     -       -       -  
    Federal Home Loan Bank Stock     281,900       248,000       248,000  
  Total securities     5,921,051       2,874,716       3,255,173  
                         
  Loans held for sale     -       -       -  
                         
  Portfolio loans                        
    Consumer loans     2,167,569       1,697,269       1,692,481  
    Mortgage loans     25,224,271       21,615,166       18,260,586  
    Commercial leases     22,281,188       13,719,232       11,759,921  
    Commercial loans     120,879,481       121,796,101       119,810,689  
  Total loans     170,552,509       158,827,768       151,523,677  
    Less: Allowance for loan loss     1,893,587       1,868,587       1,988,587  
  Net loans     168,658,922       156,959,181       149,535,090  
                         
    Premises and equipment, net     1,142,424       1,224,764       1,148,428  
    Bank owned life insurance     2,306,461       2,256,410       2,238,172  
    Deferred Tax Asset     1,054,254       1,687,277       1,905,179  
    Accrued interest receivable and other assets     1,192,272       1,091,237       1,183,804  
                         
  TOTAL ASSETS   $ 204,714,544     $ 188,678,784     $ 182,692,760  
                         
                         
                         
LIABILITIES                        
  Deposits                        
    Noninterest-bearing   $ 43,891,012     $ 39,235,022     $ 30,224,120  
    Interest-bearing     140,431,650       130,376,667       133,611,792  
  Total deposits     184,322,662       169,611,689       163,835,912  
                         
    Short term borrowings     -       -       -  
    Accrued interest payable, taxes and other liabilities     880,675       842,164       1,048,141  
  Total liabilities     185,203,337       170,453,853       164,884,053  
                         
SHAREHOLDERS' EQUITY                        
    Senior preferred stock, series D     4,621,000       4,621,000       4,621,000  
    Common Stock, no par value     17,281,679       17,163,818       17,163,818  
      Authorized - 9,000,000 shares, Issued and outstanding - 1,857,128                        
      1,836,662 and 1,836,662 shares respectively                        
    Accumulated other comprehensive income     31,892       31,813       36,490  
    Additional paid in capital - share based payments     493,154       493,154       493,154  
    Accumulated deficit     (2,916,518 )     (4,084,854 )     (4,505,755 )
  Total shareholders' equity     19,511,207       18,224,931       17,808,707  
                         
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 204,714,544     $ 188,678,784     $ 182,692,760  
                         
Book value per share   $ 8.02     $ 7.41     $ 7.18  
                         
 
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
 
    For the three months ended   For the nine months ended
    September 30,   September 30,
    2014   2013   2014   2013
Interest Income                        
    Interest and fees on loans                        
      Commercial loans   $ 1,638,434   $ 1,612,221   $ 4,847,095   $ 4,632,213
      Commercial leases     253,165     134,191     647,102     260,245
      Installment loans     31,356     25,525     85,480     84,820
      Mortgage loans     138,475     104,106     423,896     291,028
      Home Equity loans     108,772     87,101     304,257     259,595
      Late charges and fees     5,891     6,034     15,201     32,218
  Total loan interest and fee income     2,176,093     1,969,178     6,323,031     5,560,119
                         
    Interest bearing deposits     7,273     8,477     24,218     23,453
    Federal Funds Sold     8,115     -     14,929     -
                         
    Interest on investment securities                        
      Taxable     26,806     19,691     72,305     63,395
      Tax-exempt     -     961     1,258     2,906
  Total investment income     26,806     20,652     73,563     66,301
                         
  Total interest income     2,218,287     1,998,307     6,435,741     5,649,873
                         
Interest Expense                        
    Interest on deposits     269,596     246,129     800,210     682,739
    Interest on borrowed funds     -     -     -     -
  Total interest expense     269,596     246,129     800,210     682,739
                         
  Net Interest Income     1,948,691     1,752,178     5,635,531     4,967,134
    Provision for loan losses     25,000     180,000     25,000     280,000
  Net Interest Income After Provision for Loan Losses     1,923,691     1,572,178     5,610,531     4,687,134
                         
Non-interest Income                        
    Service charge income     24,560     18,562     97,325     55,482
    Mortgage banking activities     17,296     49,999     68,355     159,187
    SBA loan sales     123,784     111,074     293,289     305,635
    Other income     31,075     30,747     92,366     89,436
  Total non-interest income     196,715     210,382     551,335     609,740
                         
Non-interest Expense                        
    Salaries and employee benefits     772,371     775,072     2,406,694     2,268,242
    Occupancy expense     124,932     120,358     394,329     368,404
    Equipment expense     39,136     50,885     130,078     158,736
    Advertising     46,358     48,458     157,974     158,470
    Data Processing     59,782     76,883     212,163     201,588
    Professional fees     147,944     118,545     421,282     400,483
    Loan origination expense     64,300     39,600     162,891     98,306
    Regulatory Assessments     38,171     36,624     113,965     100,491
    Other expense     115,114     91,263     326,515     298,983
  Total non-interest expense     1,408,108     1,357,688     4,325,891     4,053,703
                         
  Net Income Before Income Taxes     712,298     424,872     1,835,975     1,243,171
    Income tax expense     248,184     145,377     632,982     421,969
  Net Income     464,114     279,495     1,202,993     821,202
    Dividend on preferred stock     11,553     11,553     34,658     34,658
  Net Income applicable to common shareholders   $ 452,561   $ 267,942   $ 1,168,335   $ 786,544
                         
Income per share - basic   $ 0.24   $ 0.15   $ 0.63   $ 0.43
                         
   
   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
   
      Year to Date  
      September 30,     Change  
      2014     2013     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 6,436     $ 5,650     $ 786     13.9 %
    Interest Expense     800       683       117     17.2 %
  Net Interest Income     5,636       4,967       668     13.5 %
    Provision for loan loss     25       280       (255 )   -91.1 %
    Non-interest income     551       610       (58 )   -9.6 %
    Non-interest expense     4,326       4,054       272     6.7 %
  Net Income before Income Taxes     1,836       1,243       593     47.7 %
    Income tax expense     633       422       211     50.0 %
  Net Income     1,203       821       382     46.5 %
    Dividend on preferred stock     35       35       -     0.0 %
  Net Income - common shareholders   $ 1,168     $ 787     $ 382     48.5 %
                                 
  Income per share - basic & diluted   $ 0.63     $ 0.43     $ 0.20     46.8 %
                                 
BALANCE SHEET DATA                              
  Total assets     204,715       182,693       22,022     12.1 %
  Average Assets     201,061       163,490       37,571     23.0 %
  Total loans     170,553       151,524       19,029     12.6 %
  Allowance for loan loss (ALLL)     1,894       1,989       (95 )   -4.8 %
  Total deposits     184,323       163,836       20,487     12.5 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     19,511       17,809       1,703     9.6 %
  Average Equity     18,860       17,409       1,451     8.3 %
                                 
ASSET QUALITY                              
  Other real estate owned (OREO)     -       -       -     0.0 %
  Net charge-offs     -       336       (336 )   -100.0 %
  Non-accrual loans     187       316       (129 )   -40.8 %
(2) Non-performing assets (NPA)     187       316       (129 )   -40.8 %
  Non-accrual loans / total loans     0.11 %     0.21 %     -0.10 %   -47.4 %
  Allowance for loan loss / total loans     1.11 %     1.31 %     -0.20 %   -15.4 %
                                 
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     3.97 %     4.47 %     -0.50 %   -11.2 %
(1) Return on average assets (annualized)     0.80 %     0.67 %     0.13 %   19.4 %
(3) Return on average assets (annualized)     1.24 %     1.25 %     -0.01 %   -0.8 %
(1) Return on average common equity (annualized)     11.30 %     8.59 %     2.71 %   31.5 %
(3) Return on average common equity (annualized)     17.47 %     15.93 %     1.54 %   9.7 %
  Efficiency ratio     69.9 %     72.7 %     -2.77 %   -3.8 %
  Total loans / Total deposits     92.5 %     92.5 %     0.04 %   0.0 %
  Tier 1 Leverage Ratio (Bank only)     8.49 %     8.71 %     -0.22 %   -2.53 %
  Equity / Assets     9.53 %     9.75 %     -0.22 %   -2.2 %
  Tangible common equity / Total assets     7.27 %     7.22 %     0.06 %   0.8 %
                                 
  Book value per share   $ 8.02     $ 7.18     $ 0.84     11.7 %
  Stock price   $ 7.05     $ 5.70     $ 1.35     23.7 %
  Stock price / book value (%)     87.9 %     79.4 %     8.54 %   10.8 %
  Income per share - basic & diluted   $ 0.63     $ 0.43     $ 0.20     46.8 %
  Income per share - basic & diluted (LTM)   $ 0.86     $ 0.61     $ 0.25     41.0 %
  Price to earnings ratio (P/E) (year to date)     8.4x       9.9x       -1.6x     -15.7 %
  Shares outstanding     1,857,128       1,836,662       20,466     1.1 %
  Average shares outstanding     1,850,868       1,828,838       22,030     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  
      September 30,   June 30,   March 31,   December 31,   September 30,  
      2014   2014   2014   2013   2013  
INCOME STATEMENT                                
    Interest Income   $ 2,218   $ 2,146   $ 2,071   $ 2,085   $ 1,998  
    Interest Expense     270     277     254     262     246  
  Net Interest Income     1,949     1,870     1,817     1,823     1,752  
    Provision for loan loss     25     -     -     (120 )   180  
    Non-interest income     197     134     220     252     210  
    Non-interest expense     1,408     1,460     1,458     1,543     1,358  
  Net Income before Income Taxes     712     544     580     653     425  
    Income tax expense     248     187     198     220     145  
  Net Income     464     357     382     432     279  
    Dividend on preferred stock     12     12     12     12     12  
  Net Income applicable to common shareholders   $ 453   $ 345   $ 370   $ 421   $ 268  
                                   
  Income per share - basic & diluted   $ 0.24   $ 0.19   $ 0.20   $ 0.23   $ 0.15  
                                   
BALANCE SHEET DATA                                
  Total assets     204,715     205,074     194,232     188,679     182,693  
  Average Assets     206,453     204,198     192,378     191,516     175,007  
  Total loans     170,553     165,928     161,424     158,828     151,524  
  Allowance for loan loss (ALLL)     1,894     1,869     1,869     1,869     1,989  
  Total deposits     184,323     185,097     174,756     169,612     163,836  
  Other borrowings     -     -     -     -     -  
  Shareholders' equity     19,511     19,065     18,648     18,225     17,809  
  Average Equity     19,287     18,824     18,459     18,006     17,682  
                                   
ASSET QUALITY                                
  Other real estate owned (OREO)     -     -     -     -     -  
  Net charge-offs     -     -     -     -     336  
  Non-accrual loans     187     192     223     229     316  
(2) Non-performing assets (NPA)     187     192     223     229     316  
  Non-accrual loans / total loans     0.11 %   0.12 %   0.14 %   0.14 %   0.21 %
  Allowance for loan loss / total loans     1.11 %   1.13 %   1.16 %   1.18 %   1.31 %
                                   
PERFORMANCE MEASUREMENTS                                
  Net interest margin (tax equivalent)     3.83 %   3.89 %   4.23 %   4.24 %   4.36 %
(1) Return on average assets (annualized)     0.89 %   0.70 %   0.81 %   0.90 %   0.63 %
(3) Return on average assets (annualized)     1.42 %   1.07 %   1.22 %   1.10 %   1.37 %
(1) Return on average common equity (annualized)     12.55 %   10.08 %   11.19 %   12.82 %   8.49 %
(3) Return on average common equity (annualized)     19.95 %   15.37 %   16.98 %   15.79 %   18.37 %
  Efficiency ratio     65.6 %   72.8 %   71.6 %   74.3 %   69.2 %
  Total loans / Total deposits     92.5 %   89.6 %   92.4 %   93.6 %   92.5 %
  Tier 1 Leverage Ratio (Bank only)     8.49 %   8.36 %   8.67 %   8.40 %   8.71 %
  Equity / Assets     9.53 %   9.30 %   9.60 %   9.66 %   9.75 %
  Tangible common equity / Total assets     7.27 %   7.04 %   7.22 %   7.21 %   7.22 %
                                   
  Book value per share   $ 8.02   $ 7.78   $ 7.60   $ 7.41   $ 7.18  
  Stock price   $ 7.05   $ 6.50   $ 5.95   $ 5.13   $ 5.70  
  Stock price / book value (%)     87.9 %   83.6 %   78.3 %   69.3 %   79.4 %
  Income per share - basic & diluted   $ 0.24   $ 0.19   $ 0.20   $ 0.23   $ 0.15  
  Shares outstanding     1,857,128     1,857,128     1,846,128     1,836,662     1,836,662  
  Average shares outstanding     1,857,128     1,851,205     1,844,130     1,836,662     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