SOURCE: Birmingham Bloomfield Bancshares, Inc.

January 17, 2014 16:21 ET

Birmingham Bloomfield Bancshares, Inc. Announces Results for Period Ending December 31, 2013

BIRMINGHAM, MI--(Marketwired - Jan 17, 2014) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and year to date periods ended December 31, 2013. The performance delivered record earnings and substantial earning asset growth.

The Company reported net income of $421,000 or $0.23 per common share for the fourth quarter of 2013 compared to net income of $337,000 or $0.18 per common share for the same period of 2012. Net income for the year to date period ended December 31, 2013 was $1,207,000 or $0.66 per common share compared to $1,019,000 or $0.56 per common share for the same period last year. The full year results represent record earnings for the Company and an increase in net income of 18.5% relative to 2012.

Chief Executive Officer, Rob Farr, issued the results and commented, "We are excited to announce another record year for the Company. The performance was driven by improved profit margins, growth in earnings assets and an increase in core revenue. The Company delivered a Return on Average Common Equity of 9.69% and a pre-tax, pre-provision ROA of 1.21%. Book value reached $7.41 at year end and per share earnings increased 17.8% year over year. We are proud of our performance and it is a reflection of our core believe in delivering superior bank service and meaningful solutions to our customers through the dedication and performance of our experienced staff. We look forward to the opportunities in 2014 and continuing to create value for our shareholders."

Results of Operation

The Company reported net interest income of $1.823 million for the fourth quarter of 2013, an 18.1% increase relative to the same quarter of 2012. The improvement was the result of portfolio loan growth. Net interest margin for the quarter was 4.24% compared to 4.36% for the most recent linked quarter and 4.59% for the fourth quarter of 2012. Net interest income for the full year of 2013 was $6.791 million, an increase of $851,000 compared to the same period of 2012. Net interest margin for the year to date period ended December 31, 2013 was 4.40% compared to 4.73% in 2012. The margin compression experienced by the Company is a result of the evolving product mix of the balance sheet, competitive pricing conditions and challenging rate environment.

The Company reversed $120,000 in provision expense during the fourth quarter of 2013, as collateral values on impaired loans improved. Total provision expense for the year to date period ending December 31, 2013 was $160,000, compared to $470,000 for the twelve month period in 2012. The net reduction in provision expense is attributable to improved market values and a reduction in problem credits requiring a valuation reserve. The Company charged off $336,000 in impaired loans during 2013.

Total non-interest income for the fourth quarter of 2013 was $252,000, compared to $210,000 for the most recent linked quarter and $348,000 for the same period of 2012. Total non-interest income for the year to date period ending December 31, 2013 was $862,000, compared to $1.243 million for the prior year. The decrease was a function of reduced loan volume related to commercial SBA and residential mortgage loans sold in the secondary market In addition, the Company recognized a gain on the sale of an ORE property in 2012 totaling $150,000.

Total non-interest expense for the fourth quarter of 2013 was $1.543 million, compared to $1.296 million for the same quarter of 2012. Year to date non-interest expense for 2013 was $5.597 million, an increase of $498,000 relative to the same period in 2012. The increase in expenses were the result of hiring new personnel to accommodate growth, infrastructure expansion, investment in new technology and providing additional resources for business marketing effort.

Balance Sheet

Total assets as of December 31, 2013 were $188.7 million, a 23.5% increase from December 31, 2012. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $158.8 million in 2013, an increase of $30.6 million from the prior year. The growth was primarily concentrated in commercial, lease and mortgage related loans. The new loan activity was achieved by expanding loan product options and focusing on the credit needs of our local market. The asset quality of the Company remains strong and the allowance for loan loss was 1.18% of the portfolio. Total deposits as of December 31, 2013 were $169.6 million, an increase of 25.7% from the same period in 2012. The Bank continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 8.40% for the quarter.

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 Raymond James, Chicago; 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 included in the Company's filings with the Securities and Exchange Commission, available free via EDGAR. 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,  
    2013     2012  
ASSETS                
    Cash and due from banks   $ 22,585,199     $ 15,539,072  
    Federal funds sold     -       -  
  Total cash and cash equivalents     22,585,199       15,539,072  
                   
    Securities available-for-sale     2,626,716       3,725,923  
    Securities held-to-maturity     -       -  
    Federal Home Loan Bank Stock     248,000       218,100  
  Total securities     2,874,716       3,944,023  
                   
  Loans held for sale     -       -  
                   
  Portfolio loans                
    Consumer loans     1,697,269       1,801,991  
    Mortgage loans     21,615,166       16,203,001  
    Commercial leases     13,719,232       1,346,177  
    Commercial loans     121,796,101       108,926,273  
  Total loans     158,827,768       128,277,442  
    Less: Allowance for loan loss     1,868,587       2,044,350  
  Net loans     156,959,181       126,233,092  
                   
    Premises and equipment, net     1,224,764       1,277,802  
    Bank owned life insurance     2,256,410       2,182,513  
    Deferred Tax Asset     1,687,277       2,306,762  
    Accrued interest receivable and other assets     1,091,237       1,289,814  
                   
  TOTAL ASSETS   $ 188,678,784     $ 152,773,078  
                 
                 
                 
LIABILITIES                
  Deposits                
    Noninterest-bearing   $ 39,235,022     $ 23,947,132  
    Interest-bearing     130,376,667       110,955,051  
  Total deposits     169,611,689       134,902,183  
                   
    Short term borrowings     -       -  
    Accrued interest payable, taxes and other liabilities     842,164       867,356  
  Total liabilities     170,453,853       135,769,539  
                 
SHAREHOLDERS' EQUITY                
    Senior preferred stock, series D     4,621,000       4,621,000  
    Common Stock, no par value     17,163,818       17,105,618  
    Authorized - 9,000,000 shares, Issued and outstanding - 1,836,662 1,824,662 and 1,824,662 shares respectively                
    Accumulated other comprehensive income     31,813       76,066  
    Additional paid in capital - share based payments     493,154       493,154  
    Accumulated deficit     (4,084,854 )     (5,292,299 )
  Total shareholders' equity     18,224,931       17,003,539  
                   
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 188,678,784     $ 152,773,078  
                 
Book value per share   $ 7.41     $ 6.79  
                 
                 
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
                   
    For the three months ended   For the nine months ended
    December 31,   December 31,
    2013     2012   2013   2012
Interest Income                          
  Interest and fees on loans                          
    Commercial loans   $ 1,668,979     $ 1,516,114   $ 6,301,192   $ 5,938,254
    Commercial leases     150,702       5,723     410,947     5,723
    Installment loans     26,863       22,447     111,683     75,083
    Mortgage loans     114,917       85,839     405,945     266,934
    Home Equity loans     88,405       85,124     348,000     363,494
    Late charges and fees     5,831       23,303     38,049     85,786
  Total loan interest and fee income     2,055,697       1,738,550     7,615,816     6,735,274
                           
    Interest bearing deposits     10,288       7,572     33,741     21,479
    Federal Funds Sold     -       -     -     -
                               
    Interest on investment securities                          
      Taxable     18,019       23,424     81,414     95,673
      Tax-exempt     953       985     3,859     3,985
  Total investment income     18,972       24,409     85,273     99,658
                             
  Total interest income     2,084,957       1,770,532     7,734,830     6,856,412
                           
Interest Expense                          
    Interest on deposits     261,538       227,006     944,277     916,561
    Interest on borrowed funds     -       -     -     64
  Total interest expense     261,538       227,006     944,277     916,625
                           
  Net Interest Income     1,823,420       1,543,526     6,790,554     5,939,787
    Provision for loan losses     (120,000 )     70,000     160,000     470,000
  Net Interest Income After Provision for Loan Losses     1,943,420       1,473,526     6,630,554     5,469,787
                           
Non-interest Income                          
    Service charge income     23,490       19,912     78,972     78,622
    Mortgage banking activities     22,955       81,525     182,142     355,557
    SBA loan sales     174,975       215,618     480,610     537,466
    Other income     30,734       30,603     120,170     271,336
  Total non-interest income     252,154       347,658     861,894     1,242,981
                           
Non-interest Expense                          
    Salaries and employee benefits     776,331       631,181     3,044,573     2,686,254
    Occupancy expense     130,575       124,336     498,979     481,140
    Equipment expense     48,820       50,886     207,556     201,115
    Advertising     81,036       100,618     239,506     272,798
    Data Processing     97,333       79,730     298,921     259,949
    Professional fees     113,882       125,918     514,365     504,547
    Loan origination expense     132,161       40,312     230,467     195,459
    Regulatory Assessments     39,178       31,377     139,669     105,622
    Other expense     123,490       111,165     422,473     391,528
  Total non-interest expense     1,542,807       1,295,523     5,596,510     5,098,412
                           
  Net Income Before Income Taxes     652,767       525,661     1,895,938     1,614,356
    Income tax expense     220,313       177,417     642,282     538,768
  Net Income     432,454       348,244     1,253,656     1,075,588
    Dividend on preferred stock     11,552       11,553     46,210     56,489
  Net Income applicable to common shareholders   $ 420,902     $ 336,691   $ 1,207,446   $ 1,019,099
                           
Income per share - basic   $ 0.23     $ 0.18   $ 0.66   $ 0.56
                           
                           
   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
                         
    Year to Date  
    December 31,     Change  
    2013     2012     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 7,735     $ 6,856     $ 878     12.8 %
    Interest Expense     944       917       28     3.0 %
  Net Interest Income     6,791       5,940       851     14.3 %
    Provision for loan loss     160       470       (310 )   -66.0 %
    Non-interest income     862       1,243       (381 )   -30.7 %
    Non-interest expense     5,597       5,098       498     9.8 %
  Net Income before Income Taxes     1,896       1,614       282     17.4 %
    Income tax expense     642       539       104     19.2 %
  Net Income     1,254       1,076       178     16.6 %
    Dividend on preferred stock     46       56       (10 )   -18.2 %
  Net Income - common shareholders   $ 1,207     $ 1,019     $ 188     18.5 %
                                 
  Income per share - basic & diluted   $ 0.66     $ 0.56     $ 0.10     17.8 %
                               
BALANCE SHEET DATA                              
  Total assets     188,679       152,773       35,906     23.5 %
  Average Assets     170,554       140,400       30,154     21.5 %
  Total loans     158,828       128,277       30,550     23.8 %
  Allowance for loan loss (ALLL)     1,869       2,044       (176 )   -8.6 %
  Total deposits     169,612       134,902       34,710     25.7 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     18,225       17,004       1,221     7.2 %
  Average Equity     17,599       16,543       1,056     6.4 %
                               
ASSET QUALITY                              
  Other real estate owned (OREO)     -       -       -     0.0 %
  Net charge-offs     336       -       336     0.0 %
  Non-accrual loans     229       764       (535 )   -70.0 %
(2) Non-performing assets (NPA)     229       764       (535 )   -70.0 %
  Non-accrual loans / total loans     0.14 %     0.60 %     -0.45 %   -75.8 %
  Allowance for loan loss / total loans     1.18 %     1.59 %     -0.42 %   -26.2 %
                               
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     4.40 %     4.73 %     -0.33 %   -7.0 %
(1) Return on average assets (annualized)     0.74 %     0.77 %     -0.03 %   -3.9 %
(3) Return on average assets (annualized)     1.21 %     1.48 %     -0.27 %   -18.2 %
(1) Return on average common equity (annualized)     9.69 %     9.02 %     0.67 %   7.4 %
(3) Return on average common equity (annualized)     15.89 %     17.48 %     -1.59 %   -9.1 %
  Efficiency ratio     73.1 %     71.0 %     2.15 %   3.0 %
  Total loans / Total deposits     93.6 %     95.1 %     -1.45 %   -1.5 %
  Tier 1 Leverage Ratio (Bank only)     8.40 %     9.03 %     -0.63 %   -6.98 %
  Equity / Assets     9.66 %     11.13 %     -1.47 %   -13.2 %
  Tangible common equity / Total assets     7.21 %     8.11 %     -0.90 %   -11.0 %
                                 
  Book value per share   $ 7.41     $ 6.79     $ 0.62     9.1 %
  Stock price   $ 5.13     $ 4.60     $ 0.53     11.5 %
  Stock price / book value (%)     69.3 %     67.8 %     1.48 %   2.2 %
  Income per share - basic & diluted   $ 0.66     $ 0.56     $ 0.10     17.8 %
  Price to earnings ratio (P/E) (year to date)     7.8x       8.2x       -0.4x     -5.3 %
  Shares outstanding     1,836,662       1,824,662       12,000     0.7 %
  Average shares outstanding     1,830,810       1,819,580       11,230     0.6 %
                                 
 
(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,   September 30,   June 30,   March 31,   December 31,  
    2013   2013   2013   2013   2012  
INCOME STATEMENT                                
    Interest Income   $ 2,085   $ 1,998   $ 1,860   $ 1,792   $ 1,771  
    Interest Expense     262     246     222     215     227  
  Net Interest Income     1,823     1,752     1,638     1,577     1,544  
    Provision for loan loss     (120 )   180     90     10     70  
    Non-interest income     252     210     215     185     348  
    Non-interest expense     1,543     1,358     1,394     1,302     1,296  
  Net Income before Income Taxes     653     425     369     450     526  
    Income tax expense     220     145     125     152     177  
  Net Income     432     279     244     298     348  
    Dividend on preferred stock     12     12     12     12     12  
  Net Income applicable to common shareholders   $ 421   $ 268   $ 232   $ 287   $ 337  
                                   
  Income per share - basic & diluted   $ 0.23   $ 0.15   $ 0.13   $ 0.16   $ 0.18  
                                 
BALANCE SHEET DATA                                
  Total assets     188,679     182,693     164,588     156,985     152,773  
  Average Assets     191,516     175,007     160,953     154,282     154,452  
  Total loans     158,828     151,524     138,017     129,638     128,277  
  Allowance for loan loss (ALLL)     1,869     1,989     2,144     2,054     2,044  
  Total deposits     169,612     163,836     146,171     138,992     134,902  
  Other borrowings     -     -     -     -     -  
  Shareholders' equity     18,225     17,809     17,546     17,281     17,004  
  Average Equity     18,006     17,682     17,399     17,139     16,822  
                                 
ASSET QUALITY                                
  Other real estate owned (OREO)     -     -     -     -     -  
  Net charge-offs     -     336     -     -     -  
  Non-accrual loans     229     316     732     732     764  
(2) Non-performing assets (NPA)     229     316     732     732     764  
  Non-accrual loans / total loans     0.14 %   0.21 %   0.53 %   0.56 %   0.60 %
  Allowance for loan loss / total loans     1.18 %   1.31 %   1.55 %   1.58 %   1.59 %
                                 
PERFORMANCE MEASUREMENTS                                
  Net interest margin (tax equivalent)     4.24 %   4.36 %   4.50 %   4.56 %   4.59 %
(1) Return on average assets (annualized)     0.90 %   0.63 %   0.61 %   0.78 %   0.90 %
(3) Return on average assets (annualized)     1.10 %   1.37 %   1.14 %   1.21 %   1.53 %
(1) Return on average common equity (annualized)     12.82 %   8.49 %   7.65 %   9.66 %   11.35 %
(3) Return on average common equity (annualized)     15.79 %   18.37 %   14.39 %   14.89 %   19.42 %
  Efficiency ratio     74.3 %   69.2 %   75.2 %   73.9 %   68.5 %
  Total loans / Total deposits     93.6 %   92.5 %   94.4 %   93.3 %   95.1 %
  Tier 1 Leverage Ratio (Bank only)     8.40 %   8.71 %   9.21 %   9.36 %   9.03 %
  Equity / Assets     9.66 %   9.75 %   10.66 %   11.01 %   11.13 %
  Tangible common equity / Total assets     7.21 %   7.22 %   7.85 %   8.06 %   8.11 %
                                   
  Book value per share   $ 7.41   $ 7.18   $ 7.04   $ 6.94   $ 6.79  
  Stock price   $ 5.13   $ 5.70   $ 4.30   $ 4.95   $ 4.60  
  Stock price / book value (%)     69.3 %   79.4 %   61.1 %   71.3 %   67.8 %
  Income per share - basic & diluted   $ 0.23   $ 0.15   $ 0.13   $ 0.16   $ 0.18  
  Shares outstanding     1,836,662     1,836,662     1,836,662     1,824,662     1,824,662  
  Average shares outstanding     1,836,662     1,836,662     1,825,058     1,824,662     1,824,662  
   
(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