SOURCE: Birmingham Bloomfield Bancshares, Inc.

April 24, 2013 11:58 ET

Birmingham Bloomfield Bancshares, Inc. Announces Unaudited First Quarter Results

BIRMINGHAM, MI--(Marketwired - Apr 24, 2013) - Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced results for the quarter ended March 31, 2013. The Corporation reported net income of $287,000 or $0.16 per share of common stock for the first quarter of 2013, compared to net income of $336,000 or $0.19 per share for the first quarter of 2012. 

Chief Executive Officer, Rob Farr, issued the results and commented, "We continue to experience growth in our core earnings due to an increase in loan balances and reduction in funding costs. We also have been able to strategically reduce operating costs to improve the efficiency of the organization. This resulted in the third best quarter in the Company's history and produced a pre-tax, pre-provision return on average assets of 1.21%. We continue to focus on opportunities to drive profitable growth to improve the performance of the Bank and increase shareholder value."

Results of Operation

Total net interest income for the first quarter of 2013 increased 13.2% to $1.577 million, compared to $1.394 million for the first quarter of 2012. The increase in net interest income was the result of earning assets growth and a reduction in funding costs. Net interest margin for the quarter was 4.56% compared to 4.59% for the most recent linked quarter and 4.80% for the first quarter of 2012. The margin compression was a result of the competitive pricing environment and evolving product mix of the balance sheet.

The Company provided $10,000 in provision expense during the first quarter of 2013. The provision expense was directly attributable to new loan volume. There were no charge offs recorded during the first quarter and the allowance relative to total loans was 1.58% at March 31, 2013.

The Company generated non-interest income of $185,000 during the first three months of 2013, compared to $484,000 for the same period in 2012. The majority of the revenue was generated from SBA loan sales and mortgage banking activity. The net decline in revenue was due to lower mortgage and SBA loan sale volume, in addition the Bank recognized a gain of $150,000 on the sale of an ORE property in the first quarter of 2012.

Total non-interest expense for the first quarter of 2013 was $1.302 million, a decrease of 2.7% compared to the same period of the prior year. The Bank was successful in reducing total operating costs as the result of internal restructuring associated with our mortgage division. Other select expense categories did experience a modest increase, reflecting growth of the institution.

Balance Sheet

Total assets as of March 31, 2013 were $156.985 million, a 22.0% increase from the prior year. The growth was the result of an increase in business development efforts to generate organic loan growth in our local markets and expanding the product options available to our customers. Total portfolio loans reached $129.638 million at the end of the first quarter, an increase of $23.009 million from the prior year with each loan category experiencing growth during the period. Total deposits as of March 31, 2013 were $138.992 million, an increase of 24.4% from 2012. The growth was a result of our expanded presence in the community and used to fund the new loan activity. The Bank continues to be classified as well capitalized based on regulatory guidelines with a Tier 1 ratio of 9.36%.

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. 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,  
    2013     2012     2012  
ASSETS                        
    Cash and due from banks   $ 18,653,780     $ 15,539,072     $ 11,436,761  
    Federal funds sold     -       -       -  
  Total cash and cash equivalents     18,653,780       15,539,072       11,436,761  
                         
    Securities available-for-sale     3,635,855       3,725,923       4,513,638  
    Securities held-to-maturity     -       -       -  
    Federal Home Loan Bank Stock     218,100       218,100       169,900  
  Total securities     3,853,955       3,944,023       4,683,538  
                         
  Loans held for sale     -       -       199,479  
                         
  Portfolio loans                        
    Consumer loans     2,314,027       1,801,991       1,081,458  
    Mortgage loans     16,655,996       16,203,001       13,325,469  
    Commercial leases     5,389,220       1,346,177       -  
    Commercial loans     105,278,261       108,926,273       92,221,207  
  Total loans     129,637,504       128,277,442       106,628,134  
    Less: Allowance for loan loss     2,054,350       2,044,350       1,594,350  
  Net loans     127,583,154       126,233,092       105,033,784  
                         
    Premises and equipment, net     1,242,552       1,277,802       1,350,946  
    Bank owned life insurance     2,201,155       2,182,513       2,121,566  
    Accrued interest receivable and other assets     3,450,121       3,596,576       3,837,097  
                         
  TOTAL ASSETS   $ 156,984,717     $ 152,773,078     $ 128,663,171  
                         
                         
                         
LIABILITIES                        
  Deposits                        
    Noninterest-bearing   $ 22,329,268     $ 23,947,132     $ 18,750,714  
    Interest-bearing     116,662,327       110,955,051       93,023,218  
  Total deposits     138,991,595       134,902,183       111,773,932  
                           
    Short term borrowings     -       -       -  
    Accrued interest payable, taxes and other liabilities     711,928       867,356       592,595  
  Total liabilities     139,703,523       135,769,539       112,366,527  
                         
SHAREHOLDERS' EQUITY                        
    Senior preferred stock, series D     4,621,000       4,621,000       4,621,000  
    Common Stock, no par value     17,105,618       17,105,618       17,066,618  
      Authorized - 9,000,000 shares, Issued and outstanding - 1,824,662                        
      1,824,662 and 1,812,662 shares respectively                        
    Accumulated other comprehensive income     67,144       76,066       90,876  
    Additional paid in capital - share based payments     493,154       493,154       493,154  
    Accumulated deficit     (5,005,722 )     (5,292,299 )     (5,975,004 )
  Total shareholders' equity     17,281,194       17,003,539       16,296,644  
                         
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 156,984,717     $ 152,773,078     $ 128,663,171  
                         
Book value per share   $ 6.94     $ 6.79     $ 6.44  
                         
                         
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
         
    For the three months ended
    March 31,
    2013   2012
Interest Income            
    Interest and fees on loans            
      Commercial loans   $ 1,519,249   $ 1,427,677
      Commercial leases     30,615     -
      Installment loans     29,622     18,057
      Mortgage loans     86,593     49,718
      Home Equity loans     84,253     94,222
      Late charges and fees     11,230     2,643
  Total loan interest and fee income     1,761,562     1,592,317
             
    Interest bearing deposits     7,117     3,414
    Federal Funds Sold     -     -
                 
    Interest on investment securities            
      Taxable     22,175     24,688
      Tax-exempt     977     1,008
  Total investment income     23,152     25,696
             
  Total interest income     1,791,831     1,621,427
             
Interest Expense            
    Interest on deposits     214,624     227,557
    Interest on borrowed funds     -     64
  Total interest expense     214,624     227,621
             
  Net Interest Income     1,577,207     1,393,806
    Provision for loan losses     10,000     20,000
  Net Interest Income After Provision for Loan Losses     1,567,207     1,373,806
             
Non-interest Income            
    Service charge income     18,416     18,798
    Mortgage banking activities     52,616     162,828
    SBA loan sales     84,972     121,791
    Other income     28,534     180,572
  Total non-interest income     184,538     483,989
             
Non-interest Expense            
    Salaries and employee benefits     716,553     761,670
    Occupancy expense     126,913     119,731
    Equipment expense     54,847     49,152
    Advertising     50,933     42,594
    Data Processing     61,447     59,002
    Professional fees     137,716     117,034
    Loan origination expense     28,732     69,012
    Regulatory Assessments     31,241     25,260
    Other expense     93,631     95,040
  Total non-interest expense     1,302,013     1,338,495
             
  Net Income Before Income Taxes     449,732     519,300
    Income tax expense     151,602     171,353
  Net Income     298,130     347,947
    Dividend and accretion on preferred stock     11,553     11,553
  Net Income applicable to common shareholders   $ 286,577   $ 336,394
             
Income per share - basic   $ 0.16   $ 0.19
             
   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
                         
    Year to Date  
    March 31,     Change  
    2013     2012     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 1,792     $ 1,621     $ 170     10.5 %
    Interest Expense     215       228       (13 )   -5.7 %
  Net Interest Income     1,577       1,394       183     13.2 %
    Provision for loan loss     10       20       (10 )   -50.0 %
    Non-interest income     185       484       (299 )   -61.9 %
    Non-interest expense     1,302       1,338       (36 )   -2.7 %
  Net Income before Income Taxes     450       519       (70 )   -13.4 %
    Income tax expense     152       171       (20 )   -11.5 %
  Net Income     298       348       (50 )   -14.3 %
    Dividend and accretion on preferred stock     12       12       -     0.0 %
  Net Income - common shareholders   $ 287     $ 336     $ (50 )   -14.8 %
                                 
  Income per share - basic & diluted   $ 0.16     $ 0.19     $ (0.03 )   -15.7 %
                               
BALANCE SHEET DATA                              
  Total assets     156,985       128,663       28,322     22.0 %
  Average Assets     154,282       126,499       27,783     22.0 %
  Total loans     129,638       106,628       23,009     21.6 %
  Allowance for loan loss (ALLL)     2,054       1,594       460     28.9 %
  Total deposits     138,992       111,774       27,218     24.4 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     17,281       16,297       985     6.0 %
  Average Equity     17,139       16,206       932     5.8 %
                               
ASSET QUALITY                              
  Other real estate owned (OREO)     -       -       -     0.0 %
  Net charge-offs     -       -       -     0.0 %
  Non-accrual loans     732       -       732     0.0 %
(2) Non-performing assets (NPA)     732       -       732     0.0 %
  Non-accrual loans / total loans     0.56 %     0.00 %     0.56 %   0.0 %
  Allowance for loan loss / total loans     1.58 %     1.50 %     0.09 %   6.0 %
                               
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     4.56 %     4.80 %     -0.24 %   -5.0 %
(1) Return on average assets (annualized)     0.78 %     1.11 %     -0.33 %   -29.5 %
(3) Return on average assets (annualized)     1.21 %     1.71 %     -0.50 %   -29.4 %
(1) Return on average common equity (annualized)     9.66 %     12.08 %     -2.42 %   -20.0 %
(3) Return on average common equity (annualized)     14.89 %     18.72 %     -3.83 %   -20.5 %
  Efficiency ratio     73.9 %     71.3 %     2.62 %   3.7 %
  Total loans / Total deposits     93.3 %     95.4 %     -2.13 %   -2.2 %
  Tier 1 Leverage Ratio (Bank only)     9.36 %     10.13 %     -0.77 %   -7.60 %
  Equity / Assets     11.01 %     12.67 %     -1.66 %   -13.1 %
  Tangible common equity / Total assets     8.06 %     9.07 %     -1.01 %   -11.1 %
                                 
  Book value per share   $ 6.94     $ 6.44     $ 0.50     7.7 %
  Stock price   $ 4.95     $ 3.02     $ 1.93     63.9 %
  Stock price / book value (%)     71.3 %     46.9 %     24.46 %   52.2 %
  Income per share - basic & diluted   $ 0.16     $ 0.19     $ (0.03 )   -15.7 %
  Price to earnings ratio (P/E)     7.8x       4.0x       3.8x     94.3 %
  Shares outstanding     1,824,662       1,812,662       12,000     0.7 %
  Average shares outstanding     1,824,662       1,812,662       12,000     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,  
    2013     2012     2012     2012     2012  
INCOME STATEMENT                                        
    Interest Income   $ 1,792     $ 1,771     $ 1,746     $ 1,719     $ 1,621  
    Interest Expense     215       227       239       223       228  
  Net Interest Income     1,577       1,544       1,507       1,496       1,394  
    Provision for loan loss     10       70       330       50       20  
    Non-interest income     185       348       300       112       484  
    Non-interest expense     1,302       1,296       1,248       1,216       1,338  
  Net Income before Income Taxes     450       526       228       341       519  
    Income tax expense     152       177       79       111       171  
  Net Income     298       348       150       230       348  
    Dividend and accretion on preferred stock     12       12       12       22       12  
  Net Income applicable to common shareholders   $ 287     $ 337     $ 138     $ 208     $ 336  
                                           
  Income per share - basic & diluted   $ 0.16     $ 0.18     $ 0.08     $ 0.11     $ 0.19  
                                         
BALANCE SHEET DATA                                        
  Total assets     156,985       152,773       148,497       139,851       128,663  
  Average Assets     154,282       154,452       146,057       134,375       126,499  
  Total loans     129,638       128,277       118,440       113,074       106,628  
  Allowance for loan loss (ALLL)     2,054       2,044       1,974       1,644       1,594  
  Total deposits     138,992       134,902       131,147       122,650       111,774  
  Other borrowings     -       -       -       -       -  
  Shareholders' equity     17,281       17,004       16,682       16,546       16,297  
  Average Equity     17,139       16,822       16,728       16,410       16,206  
                                         
ASSET QUALITY                                        
  Other real estate owned (OREO)     -       -       -       -       -  
  Net charge-offs     -       -       -       -       -  
  Non-accrual loans     732       764       708       -       -  
(2) Non-performing assets (NPA)     732       764       708       -       -  
  Non-accrual loans / total loans     0.56 %     0.60 %     0.60 %     0.00 %     0.00 %
  Allowance for loan loss / total loans     1.58 %     1.59 %     1.67 %     1.45 %     1.50 %
                                         
PERFORMANCE MEASUREMENTS                                        
  Net interest margin (tax equivalent)     4.56 %     4.59 %     4.65 %     4.91 %     4.80 %
(1) Return on average assets (annualized)     0.78 %     0.90 %     0.41 %     0.69 %     1.11 %
(3) Return on average assets (annualized)     1.21 %     1.53 %     1.52 %     1.17 %     1.71 %
(1) Return on average common equity (annualized)     9.66 %     11.35 %     4.92 %     7.84 %     12.08 %
(3) Return on average common equity (annualized)     14.89 %     19.42 %     18.35 %     13.34 %     18.72 %
  Efficiency ratio     73.9 %     68.5 %     69.1 %     75.7 %     71.3 %
  Total loans / Total deposits     93.3 %     95.1 %     90.3 %     92.2 %     95.4 %
  Tier 1 Leverage Ratio (Bank only)     9.36 %     9.03 %     9.20 %     9.82 %     10.13 %
  Equity / Assets     11.01 %     11.13 %     11.23 %     11.83 %     12.67 %
  Tangible common equity / Total assets     8.06 %     8.11 %     8.12 %     8.53 %     9.07 %
                                         
  Book value per share   $ 6.94     $ 6.79     $ 6.61     $ 6.54     $ 6.44  
  Stock price   $ 4.95     $ 4.60     $ 4.55     $ 3.30     $ 3.02  
  Stock price / book value (%)     71.3 %     67.8 %     68.8 %     50.5 %     46.9 %
  Income per share - basic & diluted   $ 0.16     $ 0.18     $ 0.08     $ 0.11     $ 0.19  
  Shares outstanding     1,824,662       1,824,662       1,824,662       1,824,662       1,812,662  
  Average shares outstanding     1,824,662       1,824,662       1,824,662       1,816,222       1,812,662  
                                         
(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