SOURCE: Birmingham Bloomfield Bancshares, Inc

Birmingham Bloomfield Bancshares, Inc

October 20, 2015 15:00 ET

Birmingham Bloomfield Bancshares, Inc. Announces Results for Period Ended September 30, 2015

BIRMINGHAM , MI--(Marketwired - October 20, 2015) - 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, 2015.

The Company reported net income of $512,000 or $0.27 per common share for the third quarter of 2015 compared to net income of $453,000 or $0.24 per common share for the same period of 2014. Net income for the nine month period ended September 30, 2015 was $1,388,000 or $0.74 per common share compared to $1,168,000 or $0.63 per common share for the same period last year. The results were a function of an increase in core earnings, improved operating fundamentals and strong earning asset growth.

Chief Executive Officer, Rob Farr, issued the results and commented: "The performance is a product of our ability to execute our strategic plan and deliver on our core mission of providing valuable solutions to meet the needs of our customers. This has resulted in continued improvement in our financial performance, including substantial growth in the loan portfolio. Net income for the first nine months of 2015 represented record earnings for the Company and produced a pre-tax, pre-provision ROA of 1.61%. We have also been able to improve the efficiency of our operation and introduce new technology to enhance the user experience. We recently released mobile banking for both retail and business customers. This new service will helps us meet the demands of our customers and make banking more convenient. We are always looking for opportunities to provide the best service to our customers and generate lasting value for our shareholders."

Results of Operation

The Company reported net interest income of $2.323 million for the third quarter of 2015, a 19.2% increase compared to the same quarter of 2014 and 8.6% increase from the second quarter of 2015. Net interest margin for the quarter was 4.12% compared to 4.00% for the most recent linked quarter. The margin expansion was the result of additional fee income generated on the loan portfolio. Net interest income for the first nine months of 2015 was $6.532 million, an increase of 15.9% relative to the same period of 2014. The increase was the direct result of earning asset growth.

The Company did not provide any provision expense during the quarter. Total provision expense for the year to date period ending September 30, 2015 was $525,000 and the allowance coverage ratio was 1.23%. There have been no net charge offs during the period and the amount of nonaccrual loans remained flat.

Total non-interest income for the third quarter of 2015 was $174,000, compared to $197,000 for the same period of 2014. The modest decline is a function of reduced SBA loan volume during the quarter. For the year to date period ending September 30, 2015 total non-interest income was $972,000, an increase of $421,000 or 76.3% 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 third quarter of 2015 was $1.693 million, compared to $1.408 million in 2014. Year to date non-interest expense for 2015 was $4.807 million, an increase of 11.1% relative to the same period in 2014. The increase in expenses was the result of hiring additional personnel to support growth, investment in new technology for product delivery and costs associated with increased volume.

Balance Sheet

Total assets as of September 30, 2015 were $235.9 million, an increase of $31.2 million from the prior year and 13.9% from December 31, 2014. Total portfolio loans reached $210.2 million at the end of the third quarter, an increase of $7.4 million on sequential basis from June and 15.0% from December 31, 2014. The growth is a function of improved economic conditions, increased demand in the market and proactive business development efforts. The asset quality of the Company remains solid. There have been no charge offs and total non-performing loans remained flat during the quarter. Total deposits as of September 30, 2015 were $212.0 million, an increase of $7.0 million from the second quarter of 2015 and $26.0 million from December 31, 2014. The growth was the result of expanding existing relationships, improved product options and greater visibility in primary market area. 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)
 
    September 30,    December 31,    September 30,
    2015    2014    2014
ASSETS              
   Cash and due from banks  $ 17,725,835  $ 15,593,072  $ 14,733,906
   Federal funds sold    -    -    9,705,254
 Total cash and cash equivalents    17,725,835    15,593,072    24,439,160
  
   Securities available-for-sale    4,270,543    4,804,691    5,639,151
   Federal Home Loan Bank Stock    243,300    281,900    281,900
 Total securities    4,513,843    5,086,591    5,921,051
  
 Portfolio loans               
   Consumer loans    2,399,146    2,104,262    2,167,569
   Mortgage loans    31,142,666    24,597,099    25,224,271
   Commercial leases    36,079,690    27,234,054    22,281,188
   Commercial loans    140,577,018    128,819,717    120,879,481
 Total loans    210,198,520    182,755,132    170,552,509
   Less: Allowance for loan loss    2,585,587    2,060,587    1,893,587
 Net loans    207,612,933    180,694,545    168,658,922
  
   Premises and equipment, net    1,030,550    1,097,025    1,142,424
   Bank owned life insurance    2,372,527    2,323,240    2,306,461
   Deferred Tax Asset    1,272,424    1,052,423    1,054,254
  Accrued interest receivable and other assets    1,358,858    1,176,587    1,192,272
  
 TOTAL ASSETS  $ 235,886,970  $ 207,023,483  $ 204,714,544
LIABILITIES            
 Deposits               
  Noninterest-bearing  $ 54,407,723  $ 45,886,004  $ 43,891,012
  Interest-bearing    157,608,784    140,140,220    140,431,650
 Total deposits    212,016,507    186,026,224    184,322,662
  
  Short term borrowings    -    -    -
  Accrued interest payable, taxes and other liabilities    2,411,731    1,069,698    880,675
 Total liabilities    214,428,237    187,095,922    185,203,337
 
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   37,169   35,634   31,892
  Additional paid in capital - share based payments   503,804   493,154   493,154
  Accumulated deficit    (1,115,525)    (2,503,906)    (2,916,518)
 Total shareholders' equity    21,458,733    19,927,561    19,511,207
 
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $
235,886,970  $
207,023,483  $
204,714,544
 
Book value per share   $8.99   $8.24   $8.02
       
       
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
 
   
 
  For the three months ended
September 30,
 
 
  For the nine months ended
September 30,
     
     2015    2014    2015    2014
Interest Income                    
 Interest and fees on loans                    
  Commercial loans  $ 1,793,458  $ 1,638,434  $ 5,231,342  $ 4,847,095
  Commercial leases    406,816    253,165    1,084,584    647,102
  Consumer loans    32,124    31,356    87,513    85,480
  Mortgage loans    191,963    138,475    490,475    423,896
  Home Equity loans    110,037    108,772    325,112    304,257
  Late charges and fees    76,762    5,891    109,935    15,201
 Total loan interest and fee income    2,611,160    2,176,093    7,328,961    6,323,031
  
 Interest bearing deposits    10,363    7,273    33,858    24,218
 Federal Funds Sold    -    8,115    62    14,929
  
 Interest on investment securities                    
  Taxable    19,913    26,806    65,819    72,305
  Tax-exempt    -    -    -    1,258
 Total investment income    19,913    26,806    65,819    73,563
  
 Total interest income    2,641,436    2,218,287    7,428,700    6,435,741
 
Interest Expense                
  Interest on deposits    318,863    269,596    896,362    800,210
  Interest on borrowed funds    -    -    1    -
 Total interest expense    318,863    269,596    896,363    800,210
  
 Net Interest Income    2,322,573    1,948,691    6,532,337    5,635,531
  Provision for loan losses    -    25,000    525,000    25,000
 Net Interest Income After Provision for Loan Losses    2,322,573    1,923,691    6,007,337    5,610,531
 
Non-interest Income                    
  Service charge income    25,475    24,560    76,761    97,325
  Mortgage banking activities    41,443    17,296    94,791    68,355
  SBA loan sales    76,036    123,784    703,542    293,289
  Other income    31,305    31,075    96,988    92,366
 Total non-interest income    174,259    196,715    972,082    551,335
 
Non-interest Expense                
  Salaries and employee benefits    905,510    772,371    2,671,201    2,406,694
  Occupancy expense    126,832    124,932    400,385    394,329
  Equipment expense    48,324    39,136    143,254    130,078
  Advertising    45,772    46,358    179,965    157,974
  Data Processing    95,677    59,782    245,285    212,163
  Professional fees    204,721    147,944    476,365    421,282
  Loan origination expense    82,519    64,300    178,761    162,891
  Regulatory Assessments    62,151    38,171    147,380    113,965
  Other expense    121,003    115,114    364,633    326,515
 Total non-interest expense    1,692,509    1,408,108    4,807,229    4,325,891
  
 Net Income Before Income Taxes    804,323    712,298    2,172,191    1,835,975
  Income tax expense    280,438    248,184    749,152    632,982
 Net Income    523,885    464,114    1,423,039    1,202,993
  Dividend on preferred stock    11,553    11,553    34,658    34,658
 Net Income applicable to common shareholders  $ 512,332  $ 452,561  $ 1,388,381  $ 1,168,335
 
Income per share - basic $ 0.27 $ 0.24 $ 0.74 $ 0.63
         
         
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
 
  Year to Date
     September 30,    Change
     2015    2014    Amount  Percentage
INCOME STATEMENT                 
  Interest Income  $ 7,429  $ 6,436  $ 993  15.4%
  Interest Expense    896    800    96  12.0%
 Net Interest Income    6,532    5,636    897  15.9%
  Provision for loan loss    525    25    500  2000.0%
  Non-interest income    972    551    421  76.3%
  Non-interest expense    4,807    4,326    481  11.1%
 Net Income before Income Taxes    2,172    1,836    336  18.3%
  Income tax expense    749    633    116  18.4%
 Net Income    1,423    1,203    220  18.3%
  Dividend on preferred stock    35    35    -  0.0%
 Net Income - common shareholders  $ 1,388  $ 1,168  $ 220  18.8%
  
 Income per share - basic & diluted  $ 0.74  $ 0.63  $ 0.11  17.8%
 
BALANCE SHEET DATA              
 Total assets   235,887   204,715   31,172 15.2%
 Average Assets   224,195   201,061   23,134 11.5%
 Total loans   210,199   170,553   39,646 23.2%
 Allowance for loan loss (ALLL)   2,586   1,894   692 36.5%
 Total deposits   212,017   184,323   27,694 15.0%
 Other borrowings   -   -   - 0.0%
 Shareholders' equity   21,459   19,511   1,948 10.0%
 
ASSET QUALITY              
 Other real estate owned (OREO)   -   -   - 0.0%
 Net charge-offs   -   -   - 0.0%
 Non-accrual loans   2,237   187   2,050 1097.3%
 (2) Non-performing assets (NPA)   2,237   187   2,050 1097.3%
 Non-accrual loans / total loans   1.06%   0.11%   0.95% 871.5%
 Allowance for loan loss / total loans   1.23%   1.11%   0.12% 10.8%
 
PERFORMANCE MEASUREMENTS              
 Net interest margin (tax equivalent)    4.07%    4.02%    0.05%  1.2%
 (1) Return on average assets (annualized)    0.85%    0.80%    0.05%  6.3%
 (3) Return on average assets (annualized)    1.61%    1.24%    0.37%  29.8%
 (1) Return on average common equity (annualized)    11.86%    11.30%    0.56%  5.0%
 (3) Return on average common equity (annualized)    22.47%    17.47%    5.00%  28.6%
 Efficiency ratio    64.1%    69.9%    -5.86%  -8.4%
 Total loans / Total deposits    99.1%    92.5%    6.61%  7.1%
 Equity / Assets    9.10%    9.53%    -0.43%  -4.6%
 Tangible common equity / Total assets    7.14%    7.27%    -0.14%  -1.9%
  
 Book value per share  $ 8.99  $ 8.02  $ 0.97  12.1%
 Stock price  $ 8.50  $ 7.05  $ 1.45  20.6%
 Stock price / book value (%)    94.5%    87.9%    6.61%  7.5%
 Income per share - basic & diluted  $ 0.74  $ 0.63  $ 0.11  17.8%
 Income per share - basic & diluted (LTM)  $ 0.97  $ 0.86  $ 0.11  12.8%
 Price to earnings ratio (P/E) (year to date)    8.5x    8.4x    0.2x  2.3%
 Shares outstanding    1,872,632    1,857,128    15,504  0.8%
 Average shares outstanding    1,866,593    1,850,868    15,725  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
  September 30, 2015   June 30, 2015  March 31, 2015
 December 31, 2014  September 30, 2014
          
INCOME STATEMENT                         
  Interest Income  $ 2,641  $ 2,450  $ 2,337  $ 2,347  $ 2,218
  Interest Expense    319    310    267    258    270
 Net Interest Income    2,323    2,140    2,070    2,089    1,949
  Provision for loan loss    -    180    345    167    25
  Non-interest income    174    562    236    174    197
  Non-interest expense    1,693    1,610    1,505    1,450    1,408
 Net Income before Income Taxes    804    912    456    645    712
  Income tax expense    280    313    156    221    248
 Net Income    524    599    300    424    464
  Dividend on preferred stock    12    12    12    12    12
 Net Income applicable to common shareholders  $ 512  $ 588  $ 288  $ 413  $ 453
   
 Income per share - basic & diluted  $ 0.27  $ 0.31  $ 0.16  $ 0.22  $ 0.24
 
BALANCE SHEET DATA                    
 Total assets   235,887   228,322   209,530   207,023   204,715
 Average Assets   233,756   223,792   214,806   208,493   206,489
 Total loans   210,199   202,839   189,588   182,755   170,553
 Allowance for loan loss (ALLL)   2,586   2,586   2,406   2,061   1,894
 Total deposits   212,017   204,964   187,964   186,026   184,323
 Other borrowings   -   -   -   -   -
 Shareholders' equity   21,459   20,931   20,263   19,928   19,511
 
ASSET QUALITY                    
 Other real estate owned (OREO)   -   -   -   -   -
 Net charge-offs   -   -   -   -   -
 Non-accrual loans   2,237   2,237   2,237   187   187
 (2) Non-performing assets (NPA)   2,237   2,237   2,237   187   187
 Non-accrual loans / total loans   1.06%   1.10%   1.18%   0.10%   0.11%
 Allowance for loan loss / total loans   1.23%   1.27%   1.27%   1.13%   1.11%
 
PERFORMANCE MEASUREMENTS                    
 Net interest margin (tax equivalent)   4.12%   4.00%   4.10%   4.17%   3.92%
 (1) Return on average assets (annualized)   0.89%   1.07%   0.57%   0.81%   0.89%
 (3) Return on average assets (annualized)   1.37%   1.96%   1.51%   1.55%   1.42%
 (1) Return on average common equity (annualized)   12.52%   15.03%   7.83%   11.13%   12.55%
 (3) Return on average common equity (annualized)   19.22%   27.39%   20.90%   21.30%   19.95%
 Efficiency ratio   67.8%   59.6%   65.3%   64.1%   65.6%
 Total loans / Total deposits   99.1%   99.0%   100.9%   98.2%   92.5%
 Equity / Assets   9.10%   9.17%   9.67%   9.63%   9.53%
 Tangible common equity / Total assets   7.14%   7.14%   7.47%   7.39%   7.27%
  
 Book value per share $ 8.99 $ 8.71 $ 8.40 $ 8.24 $ 8.02
 Stock price $ 8.50 $ 9.05 $ 8.40 $ 7.75 $ 7.05
 Stock price / book value (%)   94.5%   103.9%   100.0%   94.0%   87.9%
 Income per share - basic & diluted $ 0.27 $ 0.31 $ 0.16 $ 0.22 $ 0.24
 Shares outstanding   1,872,632   1,872,632   1,861,632   1,857,128   1,857,128
 Average shares outstanding   1,872,632   1,866,830   1,860,181   1,857,128   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