SOURCE: Birmingham Bloomfield Bancshares, Inc

Birmingham Bloomfield Bancshares, Inc

October 18, 2016 13:00 ET

Birmingham Bloomfield Bancshares, Inc. Announces results for period ended September 30, 2016

BIRMINGHAM, MI--(Marketwired - October 18, 2016) - 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, 2016.

The Company reported net income of $618,000 or $0.33 per common share for the third quarter of 2016 compared to net income of $512,000 or $0.27 per common share for the same period of 2015. Net income for the nine month period ended September 30, 2016 was $1,180,000 or $0.63 per common share compared to $1,388,000 or $0.74 per common share for the same period last year.

Chief Executive Officer, Rob Farr, issued the results and commented: "This was a very strong quarter for the bank and our core operations continue to improve. We reported a pre-tax, pre-provision ROA of 1.31% and experienced an increase of 28% in total assets. Loan growth remains robust, increasing $36 million over the past year and driving the expansion in our total revenue. On an adjusted basis, excluding one-time costs associated with the pending merger transaction, year to date earnings represent a record performance for the Bank."

Results of Operation

The Company reported net interest income of $2.666 million for the third quarter of 2016, a 14.8% increase compared to the same quarter of 2015 and 7.1% increase from the second quarter of 2016. Net interest margin for the quarter was 3.95% compared to 3.82% 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 2016 was $7.554 million, an increase of 15.6% relative to the same period of 2015. The increase was the direct result of earning asset growth.

The Company provided $30,000 in provision expense during the quarter. Total provision expense for the year to date period ending September 30, 2016 was $845,000, compared to $525,000 for the same period of 2015. The increase is a function of charge off activity and net loan growth. A total of $833,000 in charge offs was recorded as of September 30, 2016; isolated to one problem loan that has been resolved. Total non-performing loans have significantly declined and represent 0.12% of the total portfolio at quarter end.

Total non-interest income for the third quarter of 2016 was $451,000, compared to $174,000 for the same period of 2015. The increase is a function of additional SBA loan sales during the quarter. For the year to date period ending September 30, 2016 total non-interest income was $891,000, a decline of $81,000 relative to the prior period. The decrease is directly related to the reduction in SBA loan volume.

Total non-interest expense for the third quarter of 2016 was $2.139 million, compared to $1.692 million in 2015. Year to date non-interest expense for 2016 was $5.793 million, an increase of $986,000 relative to the same period in 2015. The increase is related to the Company's growth, including costs associated with supporting additional volume and investments in new technology. Professional fees experienced a significant increase primarily due to one-time expenses connected to the merger.

Balance Sheet

Total assets as of September 30, 2016 were $301.6 million, an increase of $65.7 million from the prior year and 23.5% from December 31, 2015. Total portfolio loans reached $246.1 million at the end of the third quarter, an increase of $7.9 million on a sequential basis from June and 10.8% from December 31, 2015. 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 continues to improve and non-performing loans have declined $1.7 million in 2016. Total deposits as of September 30, 2016 were $274.9 million, an increase of $25.5 million from the second quarter of 2016 and 24.7% from December 31, 2015. The growth was the result of expanding existing relationships, greater visibility in our primary market area and success in executing core deposit initiatives targeting specific deposit 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)
         
         
  September 30,  December 31,  September 30,
  2016  2015  2015
ASSETS           
  Cash and due from banks $49,262,508  $14,232,848  $17,725,835
  Federal funds sold  -   -   -
 Total cash and cash equivalents  49,262,508   14,232,848   17,725,835
            
  Securities available-for-sale  2,620,629   3,933,083   4,270,543
  Federal Home Loan Bank Stock  251,900   243,300   243,300
 Total securities  2,872,529   4,176,383   4,513,843
            
 Portfolio loans           
  Consumer loans  3,482,311   2,355,187   2,399,146
  Mortgage loans  38,613,952   35,060,825   31,142,666
  Commercial leases  36,552,168   35,940,633   36,079,690
  Commercial loans  167,423,151   148,782,782   140,577,018
 Total loans  246,071,582   222,139,427   210,198,520
  Less: Allowance for loan loss  2,537,698   2,525,350   2,585,587
 Net loans  243,533,884   219,614,077   207,612,933
            
  Premises and equipment, net  909,143   996,183   1,030,550
  Bank owned life insurance  2,437,426   2,389,018   2,372,527
  Deferred Tax Asset  1,126,998   1,202,501   1,272,424
  Accrued interest receivable and other assets  1,475,043   1,592,630   1,358,858
            
 TOTAL ASSETS $301,617,531  $244,203,640  $235,886,970
            
            
            
LIABILITIES           
 Deposits           
  Noninterest-bearing $65,153,314  $57,526,790  $54,407,723
  Interest-bearing  209,716,133   162,960,444   157,608,784
  Total deposits  274,869,447   220,487,234   212,016,507
            
  Other Borrowings  5,684,678   4,621,000   -
  Accrued interest payable, taxes and other liabilities  2,338,650   1,718,161   2,411,731
 Total liabilities  282,892,775   226,826,395   214,428,237
            
SHAREHOLDERS' EQUITY           
  Senior preferred stock, series D  -   -   4,621,000
  Common Stock, no par value  17,541,404   17,412,285   17,412,285
   Authorized -- 9,000,000 shares, Issued and outstanding -- 1,887,610           
   1,872,632 and 1,872,632 shares respectively           
  Accumulated other comprehensive income  29,913   23,808   37,169
  Additional paid in capital -- share based payments  546,404   514,454   503,804
  Accumulated deficit  607,035   (573,302)   (1,115,525)
 Total shareholders' equity  18,724,756   17,377,245   21,458,733
            
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $301,617,531  $244,203,640  $235,886,970
            
Book value per share $9.92  $9.28  $8.99
            
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
             
   For the three months ended  For the nine months ended
   September 30,  September 30,
   2016  2015  2016  2015
Interest Income                
  Interest and fees on loans                
   Commercial loans  $2,055,590  $1,793,458  $5,877,868  $5,231,342
   Commercial leases   456,645   406,816   1,344,013   1,084,584
   Consumer loans   43,601   32,124   114,407   87,513
   Mortgage loans   238,091   191,963   720,573   490,475
   Home Equity loans   154,335   110,037   446,772   325,112
   Late charges and fees   73,044   76,762   99,588   109,935
 Total loan interest and fee income   3,021,306   2,611,160   8,603,221   7,328,961
                 
   Interest bearing deposits   29,628   10,363   85,779   33,858
   Federal Funds Sold   -   -   -   62
                 
  Interest on investment securities                
   Taxable   14,109   19,913   47,385   65,819
   Tax-exempt   -   -   -   -
 Total investment income   14,109   19,913   47,385   65,819
                 
 Total interest income   3,065,043   2,641,436   8,736,385   7,428,700
                 
Interest Expense                
  Interest on deposits   343,646   318,863   1,036,794   896,362
  Interest on borrowed funds   55,197   -   145,655   1
 Total interest expense   398,843   318,863   1,182,449   896,363
                 
 Net Interest Income   2,666,200   2,322,573   7,553,936   6,532,337
  Provision for loan losses   30,000   -   845,000   525,000
 Net Interest Income After Provision for Loan Losses   2,636,200   2,322,573   6,708,936   6,007,337
                 
Non-interest Income                
  Service charge income   28,855   25,475   79,240   76,761
  Mortgage banking activities   45,216   41,443   97,546   94,791
  SBA loan sales   343,927   76,036   614,309   703,542
  Other income   33,342   31,305   100,351   96,988
 Total non-interest income   451,340   174,259   891,446   972,082
                 
Non-interest Expense                
  Salaries and employee benefits   1,046,171   905,510   3,079,910   2,671,201
  Occupancy expense   124,643   126,832   386,458   400,385
  Equipment expense   46,425   48,324   126,090   143,254
  Advertising   56,085   45,772   203,523   179,965
  Data Processing   100,356   95,677   302,859   245,285
  Professional fees   461,256   204,721   944,326   476,365
  Loan origination expense   103,497   82,519   209,989   178,761
  Regulatory Assessments   59,735   62,151   176,155   147,380
  Other expense   140,544   121,003   364,001   364,633
 Total non-interest expense   2,138,712   1,692,509   5,793,311   4,807,229
                 
 Net Income Before Income Taxes   948,828   804,323   1,807,071   2,172,191
  Income tax expense   330,836   280,438   626,735   749,152
 Net Income   617,992   523,885   1,180,336   1,423,039
  Dividend on preferred stock   -   11,553   -   34,658
 Net Income applicable to common shareholders  $617,992  $512,332  $1,180,336  $1,388,381
                 
Income per share - basic & diluted  $0.33  $0.27  $0.63  $0.74
             
 
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
               
     Year to Date
     September 30,  Change
     2016  2015  Amount  Percentage
INCOME STATEMENT                    
   Interest Income  $8,736   $7,429   $1,308   17.6 %
   Interest Expense   1,182    896    286   31.9 %
  Net Interest Income   7,554    6,532    1,022   15.6 %
   Provision for loan loss   845    525    320   61.0 %
   Non-interest income   891    972    (81 ) -8.3 %
   Non-interest expense   5,793    4,807    986   20.5 %
  Net Income before Income Taxes   1,807    2,172    (365 ) -16.8 %
   Income tax expense   627    749    (122 ) -16.3 %
  Net Income   1,180    1,423    (243 ) -17.1 %
   Dividend on preferred stock   -    35    (35 ) -100.0 %
  Net Income - common shareholders  $1,180   $1,388   $(208 ) -15.0 %
                       
  Income per share - basic & diluted  $0.63   $0.74   $(0.12 ) -15.7 %
                       
BALANCE SHEET DATA                    
  Total assets   301,618    235,887    65,731   27.9 %
  Average Assets   271,215    224,195    47,020   21.0 %
  Total loans   246,072    210,199    35,873   17.1 %
  Allowance for loan loss (ALLL)   2,538    2,586    (48 ) -1.9 %
  Total deposits   274,869    212,017    62,853   29.6 %
  Other borrowings   5,685    -    5,685   0.0 %
  Shareholders' equity   18,725    21,459    (2,734 ) -12.7 %
                       
ASSET QUALITY                    
  Other real estate owned (OREO)   -    -    -   0.0 %
  Net charge-offs   833    -    833   0.0 %
  Non-accrual loans   304    2,237    (1,933 ) -86.4 %
(2) Non-performing assets (NPA)   304    2,237    (1,933 ) -86.4 %
  Non-accrual loans / total loans   0.12 %  1.06 %  -0.94 % -88.4 %
  Allowance for loan loss / total loans   1.03 %  1.23 %  -0.20 % -16.2 %
                       
PERFORMANCE MEASUREMENTS                    
  Net interest margin (tax equivalent)   3.87 %  4.07 %  -0.20 % -4.9 %
(1) Return on average assets (annualized)   0.58 %  0.85 %  -0.27 % -31.5 %
(3) Return on average assets (annualized)   1.31 %  1.61 %  -0.30 % -18.8 %
(1) Return on average common equity (annualized)   8.77 %  11.86 %  -3.09 % -26.0 %
(3) Return on average common equity (annualized)   19.71 %  22.47 %  -2.76 % -12.3 %
  Efficiency ratio   68.6 %  64.1 %  4.54 % 7.1 %
  Total loans / Total deposits   89.5 %  99.1 %  -9.62 % -9.7 %
  Equity / Assets   6.21 %  9.10 %  -2.89 % -31.8 %
  Tangible common equity / Total assets   6.21 %  7.14 %  -0.93 % -13.0 %
                       
  Book value per share  $9.92   $8.99   $0.93   10.3 %
  Stock price  $16.26   $8.50   $7.76   91.3 %
  Stock price / book value (%)   163.9 %  94.5 %  69.38 % 73.4 %
  Income per share - basic & diluted  $0.63   $0.74   $(0.12 ) -15.7 %
  Income per share - basic & diluted (LTM)  $0.92   $0.97   $(0.05 ) -5.2 %
  Price to earnings ratio (P/E) (year to date)   19.4x    8.5x    10.9x   127.2 %
  Shares outstanding   1,887,610    1,872,632    14,978   0.8 %
  Average shares outstanding   1,882,828    1,866,593    16,235   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
     September 30,  June 30,  March 31,  December 31,  September 30,
     2016  2016  2016  2015  2015
INCOME STATEMENT                          
   Interest Income  $3,065   $2,879   $2,792   $2,712   $2,641  
   Interest Expense   399    390    394    334    319  
  Net Interest Income   2,666    2,489    2,399    2,378    2,323  
   Provision for loan loss   30    405    410    81    -  
   Non-interest income   451    218    222    333    174  
   Non-interest expense   2,139    1,921    1,734    1,806    1,693  
  Net Income before Income Taxes   949    381    477    824    804  
   Income tax expense   331    132    164    272    280  
  Net Income   618    249    313    553    524  
   Dividend on preferred stock   -    -    -    10    12  
  Net Income applicable to common shareholders  $618   $249   $313   $542   $512  
                             
  Income per share - basic & diluted  $0.33   $0.13   $0.17   $0.29   $0.27  
                             
BALANCE SHEET DATA                          
  Total assets   301,618    274,650    273,894    244,204    235,887  
  Average Assets   279,597    272,776    261,080    246,503    233,756  
  Total loans   246,072    238,209    227,052    222,139    210,199  
  Allowance for loan loss (ALLL)   2,538    2,788    2,935    2,525    2,586  
  Total deposits   274,869    249,339    249,830    220,487    212,017  
  Other borrowings   5,685    5,531    4,526    4,621    -  
  Shareholders' equity   18,725    18,099    17,744    17,377    21,459  
                             
ASSET QUALITY                          
  Other real estate owned (OREO)   -    -    -    -    -  
  Net charge-offs   280    553    -    141    -  
  Non-accrual loans   304    968    2,083    2,083    2,237  
(2) Non-performing assets (NPA)   304    968    2,083    2,083    2,237  
  Non-accrual loans / total loans   0.12 %  0.41 %  0.92 %  0.94 %  1.06 %
  Allowance for loan loss / total loans   1.03 %  1.17 %  1.29 %  1.14 %  1.23 %
                             
PERFORMANCE MEASUREMENTS                          
  Net interest margin (tax equivalent)   3.95 %  3.82 %  3.85 %  3.99 %  4.12 %
(1) Return on average assets (annualized)   0.88 %  0.37 %  0.48 %  0.89 %  0.89 %
(3) Return on average assets (annualized)   1.39 %  1.16 %  1.37 %  1.46 %  1.37 %
(1) Return on average common equity (annualized)   13.36 %  5.59 %  7.16 %  12.79 %  12.52 %
(3) Return on average common equity (annualized)   21.16 %  17.65 %  20.26 %  20.96 %  19.22 %
  Efficiency ratio   68.6 %  71.0 %  66.2 %  66.6 %  67.8 %
  Total loans / Total deposits   89.5 %  95.5 %  90.9 %  100.7 %  99.1 %
  Equity / Assets   6.21 %  6.59 %  6.48 %  7.12 %  9.10 %
  Tangible common equity / Total assets   6.21 %  6.59 %  6.48 %  7.12 %  7.14 %
                             
  Book value per share  $9.92   $9.59   $9.46   $9.28   $8.99  
  Stock price  $16.26   $9.15   $8.79   $8.65   $8.50  
  Stock price / book value (%)   163.9 %  95.4 %  93.0 %  93.2 %  94.5 %
  Income per share - basic & diluted  $0.33   $0.13   $0.17   $0.29   $0.27  
  Shares outstanding   1,887,610    1,887,610    1,876,610    1,872,632    1,872,632  
  Average shares outstanding   1,887,610    1,885,434    1,875,386    1,872,632    1,872,632  
                             
(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