SOURCE: Birmingham Bloomfield Bancshares, Inc

April 26, 2012 13:56 ET

Birmingham Bloomfield Bancshares, Inc. Announces Unaudited First Quarter Results

BIRMINGHAM, MI--(Marketwire - Apr 26, 2012) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced first quarter net income for the period ended March 31, 2012. The favorable results are a product of improved margins, lower loan loss provision expense and an increase in non-interest income.

The Corporation reported net income of $336,000 or $0.19 per share of common stock for the first quarter of 2012, compared to net income of $414,000 or $0.23 per share for the first quarter of 2011. The overall performance was impacted by the recognition of income tax expense in 2012 not required in 2011. Excluding tax expense of $171,000 for the period, pre-tax net income after preferred dividends was $507,000, an increase of 22.5% from March 31, 2011.

Chief Executive Officer, Rob Farr, issued the results and commented, "On a pre-tax basis the performance represents our most profitable quarter. We have been successful in producing positive results as we continue to grow the institution, diversify our earnings and generate improvement in net interest margin. The pre-tax, pre-provision Return on Average Assets was 1.71% for the quarter and our book value reached $6.44. Overall we are pleased with the results and look forward to the remainder of 2012."

Results of Operation

Total net interest income for the first quarter of 2012 increased 10.6% to $1.394 million compared to $1.260 million for the first quarter of 2011. The increase in net interest income was a result of earning assets growth and a reduction in funding costs. Net interest margin increased from 4.49% in the first quarter of 2011 to 4.80% during the current quarter. This was achieved by improving the asset mix of the balance sheet and lowering the aggregate cost of deposits.

The Company continues to be successful in generating significant revenue from non-interest income sources. Non-interest income totaled $484,000 for the first quarter of 2012, compared to $325,000 for the same period in 2011. The majority of the revenue was generated from SBA loan sales, mortgage banking activity and a gain of $150,000 on the sale of a foreclosed property. The Company participates in the SBA 7(a) program and recognized $122,000 in gain on sale and servicing income during the first quarter of 2012. Mortgage banking income represents the premium received on selling qualified residential loans in the secondary market. This generated $163,000 in revenue for the period ended March 31, 2012 compared to $12,000 in 2011. This was a function of increased loan volume due to the low interest rate environment.

Total non-interest expense for the first quarter of 2012 was $1.338 million, an increase of $255,000 compared to the same period of the prior year. This was a result of additional costs associated with increased volume from residential mortgage activity, adding new personnel to generate growth, expanding services, and dedicating resources to business development efforts to improve franchise awareness.

Balance Sheet

Total assets as of March 31, 2012 were $128.663 million, a 10.4% increase from the prior year. The balance sheet growth was a direct result of an increase in loan and deposit balances. Total portfolio loans reached $106.628 million at the end of the first quarter, an increase of $8.423 million from the prior year. The growth was primarily concentrated in commercial real estate and mortgage related loans. The Company continues to focus on quality opportunities in our primary market as credit conditions have modestly improved. The asset quality of the Company remains solid; there were no non-performing assets outstanding and the allowance for loan loss was 1.50% of total portfolio loans. Total deposits as of March 31, 2012 were $111.774 million, an increase of 6.9% from 2011. The Bank also continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 10.13% 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 Howe Barnes Hoefer and Arnett (acquired by Raymond James), Chicago; Monroe Securities, Chicago; and Hudson Securities, Inc., Jersey City, New Jersey.

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)
March 31, December 31, March 31,
2012 2011 2011
ASSETS
Cash and due from banks $ 11,436,761 $ 4,693,585 $ 14,036,879
Federal funds sold - - -
Total cash and cash equivalents 11,436,761 4,693,585 14,036,879
Securities available-for-sale 4,513,638 4,594,761 3,150,652
Securities held-to-maturity - - -
Federal Home Loan Bank Stock 169,900 169,900 160,200
Total securities 4,683,538 4,764,661 3,310,852
Loans held for sale 199,479 2,484,829 -
Portfolio loans
Consumer loans 1,081,458 1,305,501 813,491
Mortgage loans 13,325,469 11,572,620 11,257,843
Commercial loans 92,221,207 93,419,805 86,133,771
Total loans 106,628,134 106,297,926 98,205,105
Less: Allowance for loan loss 1,594,350 1,574,350 1,487,099
Net loans 105,033,784 104,723,576 96,718,007
Premises and equipment, net 1,350,946 1,395,187 1,435,426
Accrued interest receivable and other assets 5,958,663 6,335,623 1,019,575
TOTAL ASSETS $ 128,663,171 $ 124,397,461 $ 116,520,738
LIABILITIES
Deposits
Noninterest-bearing $ 18,750,714 $ 19,662,283 $ 12,477,840
Interest-bearing 93,023,218 88,015,546 92,110,155
Total deposits 111,773,932 107,677,829 104,587,995
Short term borrowings - - -
Accrued interest payable, taxes and other liabilities 592,595 755,090 529,559
Total liabilities 112,366,527 108,432,919 105,117,554
SHAREHOLDERS' EQUITY
Senior preferred stock A 1,635,000
Discount on senior preferred stock A (56,427 )
Warrant preferred stock B 82,000
Premium on warrant preferred stock B 6,133
Senior preferred stock C 1,744,000
Senior preferred stock, series D 4,621,000 4,621,000 -
Common Stock, no par value 17,066,618 17,066,618 17,034,330
Authorized - 4,500,000 shares, Issued and outstanding - 1,812,662
1,812,662 and 1,800,000 shares respectively
Accumulated other comprehensive income 90,876 95,168 112,171
Additional paid in capital - share based payments 493,154 493,154 493,154
Accumulated deficit (5,975,004 ) (6,311,398 ) (9,647,177 )
Total shareholders' equity 16,296,644 15,964,542 11,403,185
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 128,663,171 $ 124,397,461 $ 116,520,738
- - -
Book value per share $ 6.44 $ 6.26 $ 4.44
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months ended
March 31,
2012 2011
Interest Income
Interest and fees on loans
Commercial loans $ 1,427,677 $ 1,413,787
Installment loans 18,057 13,088
Mortgage loans 49,718 19,525
Home Equity loans 94,222 97,931
Late charges and fees 2,643 11,478
Total loan interest and fee income 1,592,317 1,555,809
Interest bearing deposits 3,414 4,618
Federal Funds Sold - 13
Interest on investment securities
Taxable 24,688 27,911
Tax-exempt 1,008 -
Total investment income 25,696 27,911
Total interest income 1,621,427 1,588,351
Interest Expense
Interest on deposits 227,557 314,055
Interest on borrowed funds 64 14,509
Total interest expense 227,621 328,564
Net Interest Income 1,393,806 1,259,787
Provision for loan losses 20,000 39,000
Net Interest Income After Provision for Loan Losses 1,373,806 1,220,787
Non-interest Income
Service charge income 18,798 11,572
Mortgage banking activities 162,828 11,439
SBA loan sales 121,791 291,294
Other income 180,572 10,804
Total non-interest income 483,989 325,109
Non-interest Expense
Salaries and employee benefits 761,670 582,017
Occupancy expense 119,731 118,102
Equipment expense 49,152 35,400
Advertising 42,594 36,046
Data Processing 59,002 49,013
Professional fees 117,034 111,524
Loan origination expense 69,012 26,369
Regulatory Assessments 25,260 48,426
Other expense 95,040 76,519
Total non-interest expense 1,338,495 1,083,416
Net Income Before Income Taxes 519,300 462,480
Income tax expense 171,353 -
Net Income 347,947 462,480
Dividend and accretion on preferred stock 11,553 48,183
Net Income applicable to common shareholders $ 336,394 $ 414,297
Income per share - basic $ 0.19 $ 0.23
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
March 31, Change
2012 2011 Amount Percentage
INCOME STATEMENT
Interest Income $ 1,621 $ 1,588 $ 33 2.1 %
Interest Expense 228 329 (101 ) -30.7 %
Net Interest Income 1,394 1,260 134 10.6 %
Provision for loan loss 20 39 (19 ) -48.7 %
Non-interest income 484 325 159 48.9 %
Non-interest expense 1,338 1,083 255 23.5 %
Net Income before Income Taxes 519 462 57 12.3 %
Income tax expense 171 - 171 0.0 %
Net Income 348 462 (115 ) -24.8 %
Dividend and accretion on preferred stock 12 48 (37 ) -76.0 %
Net Income - common shareholders $ 336 $ 414 $ (78 ) -18.8 %
Income per share - basic & diluted $ 0.19 $ 0.23 $ (0.04 ) -19.0 %
BALANCE SHEET DATA
Total assets 128,663 116,521 12,142 10.4 %
Average Assets 126,499 115,435 11,064 9.6 %
Total loans 106,628 98,205 8,423 8.6 %
Allowance for loan loss (ALLL) 1,594 1,487 107 7.2 %
Total deposits 111,774 104,588 7,186 6.9 %
Other borrowings - - - 0.0 %
Shareholders' equity 16,297 11,403 4,893 42.9 %
Average Equity 16,206 11,167 5,039 45.1 %
ASSET QUALITY
Other real estate owned (OREO) - - - 0.0 %
Net charge-offs - - - 0.0 %
Non-accrual loans - 298 (298 ) -100.0 %
(2) Non-performing assets (NPA) - 298 (298 ) -100.0 %
Non-accrual loans / total loans 0.00 % 0.30 % -0.30 % -100.0 %
Allowance for loan loss / total loans 1.50 % 1.51 % -0.02 % -1.3 %
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent) 4.80 % 4.49 % 0.31 % 6.9 %
(1) Return on average assets (annualized) 1.11 % 1.62 % -0.51 % -31.7 %
(3) Return on average assets (annualized) 1.71 % 1.76 % -0.05 % -2.9 %
(1) Return on average common equity (annualized) 12.08 % 24.17 % -12.09 % -50.0 %
(3) Return on average common equity (annualized) 18.72 % 26.21 % -7.49 % -28.6 %
Efficiency ratio 71.28 % 68.36 % 2.92 % 4.3 %
Tier 1 Leverage Ratio (Bank only) 10.13 % 8.33 % 1.80 % 21.61 %
Equity / Assets 12.67 % 9.79 % 2.88 % 29.4 %
Total loans / Total deposits 95.4 % 93.9 % 1.50 % 1.6 %
Book value per share $ 6.44 $ 4.44 $ 2.00 45.1 %
Income (loss) per share - basic & diluted $ 0.19 $ 0.23 $ (0.04 ) -19.0 %
Shares outstanding 1,812,662 1,800,000 12,662 0.7 %
Average shares outstanding 1,812,662 1,800,000 12,662 0.7 %
(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
March 31, December 31, September 30, June 30, March 31,
2012 2011 2011 2011 2011
INCOME STATEMENT
Interest Income $ 1,621 $ 1,630 $ 1,582 $ 1,565 $ 1,588
Interest Expense 228 280 301 314 329
Net Interest Income 1,394 1,350 1,281 1,251 1,260
Provision for loan loss 20 75 105 15 39
Non-interest income 484 309 319 280 325
Non-interest expense 1,338 1,484 1,317 1,207 1,083
Net Income before Income Taxes 519 100 177 310 462
Income tax expense (benefit) 171 (2,885 ) - - -
Net Income 348 2,985 177 310 462
Dividend and accretion on preferred stock 12 20 68 48 48
Net Income applicable to common shareholders $ 336 $ 2,965 $ 109 $ 261 $ 414
Income per share - basic & diluted $ 0.19 $ 1.64 $ 0.06 $ 0.15 $ 0.23
BALANCE SHEET DATA
Total assets 128,663 124,397 124,743 118,604 116,521
Average Assets 126,499 123,317 121,526 117,002 115,435
Total loans 106,628 106,298 102,580 100,079 98,205
Allowance for loan loss (ALLL) 1,594 1,574 1,499 1,502 1,487
Total deposits 111,774 107,678 111,171 106,305 104,588
Other borrowings - - - - -
Shareholders' equity 16,297 15,965 13,056 11,696 11,403
Average Equity 16,206 13,584 12,520 11,481 11,167
ASSET QUALITY
Other real estate owned (OREO) - 298 298 298 -
Net charge-offs - - 108 - -
Non-accrual loans - - - - 298
(2) Non-performing assets (NPA) - 298 298 298 298
Non-accrual loans / total loans 0.00 % 0.00 % 0.00 % 0.00 % 0.30 %
Allowance for loan loss / total loans 1.50 % 1.48 % 1.46 % 1.50 % 1.51 %
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent) 4.80 % 4.61 % 4.44 % 4.51 % 4.49 %
(1) Return on average assets (annualized) 1.11 % 9.60 % 0.58 % 1.06 % 1.62 %
(3) Return on average assets (annualized) 1.71 % 0.56 % 0.92 % 1.11 % 1.76 %
(1) Return on average common equity (annualized) 12.08 % 132.13 % 8.50 % 15.39 % 24.17 %
(3) Return on average common equity (annualized) 18.72 % 7.77 % 13.54 % 16.13 % 26.21 %
Efficiency ratio 71.28 % 89.43 % 82.37 % 78.80 % 68.36 %
Tier 1 Leverage Ratio (Bank only) 10.13 % 9.94 % 9.22 % 8.54 % 8.33 %
Equity / Assets 12.67 % 12.83 % 10.47 % 9.86 % 9.79 %
Total loans / Total deposits 95.4 % 98.7 % 92.3 % 94.1 % 93.9 %
Book value per share $ 6.44 $ 6.26 $ 4.65 $ 4.60 $ 4.44
Income (loss) per share - basic & diluted $ 0.19 $ 1.64 $ 0.06 $ 0.15 $ 0.23
Shares outstanding 1,812,662 1,812,662 1,812,662 1,800,000 1,800,000
Average shares outstanding 1,812,662 1,812,662 1,801,652 1,800,000 1,800,000
(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