SOURCE: Birmingham Bloomfield Bancshares, Inc.

July 14, 2014 17:53 ET

Birmingham Bloomfield Bancshares, Inc. Announces Unaudited Results for Period Ended June 30, 2014

BIRMINGHAM, MI--(Marketwired - Jul 14, 2014) - Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and six month periods ended June 30, 2014. The Company experienced solid balance sheet growth and an increase in core earnings. 

The Company reported net income of $345,000 or $0.19 per common share for the second quarter of 2014 compared to net income of $232,000 or $0.13 per common share for the same period of 2013. Net income for the six month period ended June 30, 2014 was $716,000 or $0.39 per common share compared to $519,000 or $0.28 per common share for the same period last year.

Chief Executive Officer, Rob Farr, issued the results and commented, "The performance for the first six months represents an increase of 38.0% in after tax earnings relative to 2013 and produced a pre-tax, pre-provision ROA of 1.14%. The results are the product of an increase in core earnings and profitable asset growth. We are also excited to announce we have exceeded $200 million in total assets. Over the past 36 months we have doubled the size of the organization and produced record results during this period. We have also noticed valuation trends in the industry are beginning to improve, including with our own organization, as our price to book and earnings multiples have increased. We remain committed to delivering strong financial results to create value for our shareholders."

Results of Operation

The Company reported net interest income of $1.870 million for the second quarter of 2014, a 14.2% increase compared to the same quarter of 2013 and 2.9% increase from the first quarter of 2014. Net interest margin for the quarter was 3.89% compared to 4.23% for the most recent linked quarter and 4.50% for the second quarter of 2013. The margin compression is a function of changes in the earning asset mix of the Company's balance sheet and the competitive pricing environment. Net interest income for the first six months of 2014 was $3.687 million, an increase of 14.7% relative to the same period of 2013. The increase was the direct result of earning asset growth.

The Company did not provide any provision expense for the three and six month periods ended June 30, 2014, compared to $90,000 and $100,000, respectively for the same periods of 2013. This is a function of improved asset values and a reduction in total non-performing loans.

Total non-interest income for the second quarter of 2014 was $134,000, compared to $215,000 for the same period of 2013. For the year to date period ending June 30, 2014 total non-interest income was $355,000, a decrease of $45,000 relative to the prior period. The reduction is a result of a decline in secondary loan sale activity for residential mortgages and commercial SBA products.

Total non-interest expense for the second quarter of 2014 was $1.460 million, compared to $1.394 million in 2013. Year to date non-interest expense for 2014 was $2.918 million, an increase of $222,000 relative to the same period in 2013. The expense increases were the result of hiring additional personnel to support future asset growth, investments in the data processing infrastructure to expand products and deliver a better user experience, and engaging outside consultants to improve efficiency and productivity.

Balance Sheet

Total assets as of June 30, 2014 were $205.0 million, an increase of 24.6% from the prior year and 8.7% from December 31, 2013. The growth was a result of focused efforts to provide quality products and services to meet the demands of the market. Total portfolio loans reached $165.9 million at the end of the second quarter, an increase of $4.5 million from March 31, 2014 and 20.2% or $27.9 million from June 30, 2013. The increase is due to our diverse product options, expanded presence in our primary market and the improving local economy. The asset quality of the Company remains solid. There have been no charge offs recorded in 2014 and total non-performing loans have declined for the fifth consecutive quarter. The allowance for loan loss was 1.13% of total portfolio loans at the end of the period. Total deposits as of June 30, 2014 were $185.1 million, an increase of 26.6% from the same period in 2013. The growth was a function of our profile in the community and targeted marketing programs. 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 a single point of contact empowered to provide all the bank's services. Birmingham Bloomfield Bancshares, Inc. marketmakers 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)  
                   
    June 30,     December 31,     June 30,  
    2014     2013     2013  
ASSETS                        
    Cash and due from banks   $ 21,468,556     $ 22,585,199     $ 18,372,322  
    Federal funds sold     7,554,641       -       -  
  Total cash and cash equivalents     29,023,197       22,585,199       18,372,322  
                         
    Securities available-for-sale     5,750,600       2,626,716       3,541,775  
    Securities held-to-maturity     -       -       -  
    Federal Home Loan Bank Stock     281,900       248,000       248,000  
  Total securities     6,032,500       2,874,716       3,789,775  
                         
  Loans held for sale     -       -       -  
                         
  Portfolio loans                        
    Consumer loans     2,220,995       1,697,269       1,735,911  
    Mortgage loans     22,614,476       21,615,166       18,504,377  
    Commercial leases     18,140,055       13,719,232       8,273,245  
    Commercial loans     122,952,339       121,796,101       109,503,076  
  Total loans     165,927,865       158,827,768       138,016,609  
    Less: Allowance for loan loss     1,868,587       1,868,587       2,144,350  
  Net loans     164,059,278       156,959,181       135,872,259  
                         
    Premises and equipment, net     1,177,896       1,224,764       1,203,236  
    Bank owned life insurance     2,289,728       2,256,410       2,219,779  
    Deferred Tax Asset     1,299,194       1,687,277       2,048,002  
    Accrued interest receivable and other assets     1,192,496       1,091,237       1,082,771  
                         
  TOTAL ASSETS   $ 205,074,289     $ 188,678,784     $ 164,588,144  
                         
                         
LIABILITIES                        
  Deposits                        
    Noninterest-bearing   $ 40,264,315     $ 39,235,022     $ 27,541,806  
    Interest-bearing     144,832,427       130,376,667       118,629,567  
  Total deposits     185,096,742       169,611,689       146,171,373  
                         
    Short term borrowings     -       -       -  
    Accrued interest payable, taxes and other liabilities     912,604       842,164       871,046  
  Total liabilities     186,009,346       170,453,853       147,042,419  
                         
SHAREHOLDERS' EQUITY                        
    Senior preferred stock, series D     4,621,000       4,621,000       4,621,000  
    Common Stock, no par value     17,281,679       17,163,818       17,163,818  
      Authorized - 9,000,000 shares, Issued and outstanding - 1,857,1281,836,662 and 1,836,662 shares respectively                        
    Accumulated other comprehensive income     38,190       31,813       41,450  
    Additional paid in capital - share based payments     493,154       493,154       493,154  
    Accumulated deficit     (3,369,080 )     (4,084,854 )     (4,773,697 )
  Total shareholders' equity     19,064,943       18,224,931       17,545,725  
                         
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 205,074,289     $ 188,678,784     $ 164,588,144  
                         
Book value per share   $ 7.78     $ 7.41     $ 7.04  
                         
                         
 
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
                 
    For the three months ended   For the six months ended
    June 30,   June 30,
    2014   2013   2014   2013
Interest Income                        
    Interest and fees on loans                        
      Commercial loans   $ 1,614,734   $ 1,500,743   $ 3,208,661   $ 3,019,992
      Commercial leases     211,136     95,439     393,937     126,054
      Installment loans     29,678     29,673     54,124     59,295
      Mortgage loans     143,521     100,329     285,421     186,922
      Home Equity loans     99,948     88,241     195,485     172,494
      Late charges and fees     5,189     14,954     9,310     26,184
  Total loan interest and fee income     2,104,206     1,829,379     4,146,938     3,590,941
                         
    Interest bearing deposits     8,775     7,859     16,945     14,976
    Federal Funds Sold     6,814     -     6,814     -
                         
    Interest on investment securities                        
      Taxable     26,322     21,529     45,499     43,704
      Tax-exempt     316     969     1,258     1,945
  Total investment income     26,638     22,498     46,757     45,649
                         
  Total interest income     2,146,433     1,859,736     4,217,454     3,651,566
                         
Interest Expense                        
    Interest on deposits     276,707     221,987     530,614     436,610
    Interest on borrowed funds     -     -     -     -
  Total interest expense     276,707     221,987     530,614     436,610
                         
  Net Interest Income     1,869,726     1,637,749     3,686,840     3,214,956
    Provision for loan losses     -     90,000     -     100,000
  Net Interest Income After Provision for Loan Losses     1,869,726     1,547,749     3,686,840     3,114,956
                         
Non-interest Income                        
    Service charge income     50,493     18,504     72,765     36,920
    Mortgage banking activities     21,466     56,572     51,059     109,188
    SBA loan sales     30,141     109,589     169,505     194,561
    Other income     32,151     30,156     61,291     58,690
  Total non-interest income     134,251     214,821     354,620     399,359
                         
Non-interest Expense                        
    Salaries and employee benefits     811,890     776,617     1,634,323     1,493,170
    Occupancy expense     125,909     121,133     269,397     248,046
    Equipment expense     43,857     53,004     90,942     107,851
    Advertising     65,400     59,079     111,616     110,012
    Data Processing     80,811     63,258     152,381     124,705
    Professional fees     136,524     144,222     273,338     281,938
    Loan origination expense     52,205     29,974     98,591     58,706
    Regulatory Assessments     38,410     32,626     75,794     63,867
    Other expense     104,801     114,090     211,401     207,721
  Total non-interest expense     1,459,807     1,394,003     2,917,783     2,696,016
                         
  Net Income Before Income Taxes     544,170     368,567     1,123,677     818,299
    Income tax expense     187,217     124,990     384,798     276,592
  Net Income     356,953     243,577     738,879     541,707
    Dividend on preferred stock     11,552     11,552     23,105     23,105
  Net Income applicable to common shareholders   $ 345,401   $ 232,025   $ 715,774   $ 518,602
                         
Income per share - basic   $ 0.19   $ 0.13   $ 0.39   $ 0.28
                         
                         
   
Birmingham Bloomfield Bancshares, Inc.  
Financial Summary and Selected Ratios (Unaudited)  
(Dollars in thousands except per share data)  
                         
    Year to Date  
    June 30,     Change  
    2014     2013     Amount     Percentage  
INCOME STATEMENT                              
    Interest Income   $ 4,217     $ 3,652     $ 566     15.5 %
    Interest Expense     531       437       94     21.5 %
  Net Interest Income     3,687       3,215       472     14.7 %
    Provision for loan loss     -       100       (100 )   -100.0 %
    Non-interest income     355       399       (45 )   -11.2 %
    Non-interest expense     2,918       2,696       222     8.2 %
  Net Income before Income Taxes     1,124       818       305     37.3 %
    Income tax expense     385       277       108     39.1 %
  Net Income     739       542       197     36.4 %
    Dividend on preferred stock     23       23       -     0.0 %
  Net Income - common shareholders   $ 716     $ 519     $ 197     38.0 %
                               
  Income per share - basic & diluted   $ 0.39     $ 0.28     $ 0.10     36.3 %
                               
BALANCE SHEET DATA                              
  Total assets     205,074       164,588       40,486     24.6 %
  Average Assets     198,321       157,636       40,685     25.8 %
  Total loans     165,928       138,017       27,911     20.2 %
  Allowance for loan loss (ALLL)     1,869       2,144       (276 )   -12.9 %
  Total deposits     185,097       146,171       38,925     26.6 %
  Other borrowings     -       -       -     0.0 %
  Shareholders' equity     19,065       17,546       1,519     8.7 %
  Average Equity     18,642       17,270       1,373     7.9 %
                               
ASSET QUALITY                              
  Other real estate owned (OREO)     -       -       -     0.0 %
  Net charge-offs     -       -       -     0.0 %
  Non-accrual loans     192       732       (540 )   -73.8 %
(2) Non-performing assets (NPA)     192       732       (540 )   -73.8 %
  Non-accrual loans / total loans     0.12 %     0.53 %     -0.41 %   -78.2 %
  Allowance for loan loss / total loans     1.13 %     1.55 %     -0.43 %   -27.5 %
                               
PERFORMANCE MEASUREMENTS                              
  Net interest margin (tax equivalent)     4.05 %     4.53 %     -0.48 %   -10.6 %
(1) Return on average assets (annualized)     0.75 %     0.69 %     0.06 %   8.7 %
(3) Return on average assets (annualized)     1.14 %     1.17 %     -0.03 %   -2.6 %
(1) Return on average common equity (annualized)     10.63 %     8.64 %     1.99 %   23.0 %
(3) Return on average common equity (annualized)     16.16 %     14.64 %     1.52 %   10.4 %
  Efficiency ratio     72.2 %     74.6 %     -2.40 %   -3.2 %
  Total loans / Total deposits     89.6 %     94.4 %     -4.78 %   -5.1 %
  Tier 1 Leverage Ratio (Bank only)     8.36 %     9.21 %     -0.85 %   -9.23 %
  Equity / Assets     9.30 %     10.66 %     -1.36 %   -12.8 %
  Tangible common equity / Total assets     7.04 %     7.85 %     -0.81 %   -10.3 %
                               
  Book value per share   $ 7.78     $ 7.04     $ 0.74     10.5 %
  Stock price   $ 6.50     $ 4.30     $ 2.20     51.2 %
  Stock price / book value (%)     83.6 %     61.1 %     22.47 %   36.8 %
  Income per share - basic & diluted   $ 0.39     $ 0.28     $ 0.10     36.3 %
  Income per share - basic & diluted (LTM)   $ 0.76     $ 0.54     $ 0.22     40.7 %
  Price to earnings ratio (P/E) (year to date)     8.3x       7.5x       0.8x     10.9 %
  Shares outstanding     1,857,128       1,836,662       20,466     1.1 %
  Average shares outstanding     1,847,687       1,824,861       22,826     1.3 %
   
(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  
      June 30,   March 31,   December 31,   September 30,   June 30,  
      2014   2014   2013   2013   2013  
INCOME STATEMENT                                
    Interest Income   $ 2,146   $ 2,071   $ 2,085   $ 1,998   $ 1,860  
    Interest Expense     277     254     262     246     222  
  Net Interest Income     1,870     1,817     1,823     1,752     1,638  
    Provision for loan loss     -     -     (120 )   180     90  
    Non-interest income     134     220     252     210     215  
    Non-interest expense     1,460     1,458     1,543     1,358     1,394  
  Net Income before Income Taxes     544     580     653     425     369  
    Income tax expense     187     198     220     145     125  
  Net Income     357     382     432     279     244  
    Dividend on preferred stock     12     12     12     12     12  
  Net Income applicable to common shareholders   $ 345   $ 370   $ 421   $ 268   $ 232  
                                   
  Income per share - basic & diluted   $ 0.19   $ 0.20   $ 0.23   $ 0.15   $ 0.13  
                                   
BALANCE SHEET DATA                                
  Total assets     205,074     194,232     188,679     182,693     164,588  
  Average Assets     204,198     192,378     191,516     175,007     160,953  
  Total loans     165,928     161,424     158,828     151,524     138,017  
  Allowance for loan loss (ALLL)     1,869     1,869     1,869     1,989     2,144  
  Total deposits     185,097     174,756     169,612     163,836     146,171  
  Other borrowings     -     -     -     -     -  
  Shareholders' equity     19,065     18,648     18,225     17,809     17,546  
  Average Equity     18,824     18,459     18,006     17,682     17,399  
                                   
ASSET QUALITY                                
  Other real estate owned (OREO)     -     -     -     -     -  
  Net charge-offs     -     -     -     336     -  
  Non-accrual loans     192     223     229     316     732  
(2) Non-performing assets (NPA)     192     223     229     316     732  
  Non-accrual loans / total loans     0.12 %   0.14 %   0.14 %   0.21 %   0.53 %
  Allowance for loan loss / total loans     1.13 %   1.16 %   1.18 %   1.31 %   1.55 %
                                   
PERFORMANCE MEASUREMENTS                                
  Net interest margin (tax equivalent)     3.89 %   4.23 %   4.24 %   4.36 %   4.50 %
(1) Return on average assets (annualized)     0.70 %   0.81 %   0.90 %   0.63 %   0.61 %
(3) Return on average assets (annualized)     1.07 %   1.22 %   1.10 %   1.37 %   1.14 %
(1) Return on average common equity (annualized)     10.08 %   11.19 %   12.82 %   8.49 %   7.65 %
(3) Return on average common equity (annualized)     15.37 %   16.98 %   15.79 %   18.37 %   14.39 %
  Efficiency ratio     72.8 %   71.6 %   74.3 %   69.2 %   75.2 %
  Total loans / Total deposits     89.6 %   92.4 %   93.6 %   92.5 %   94.4 %
  Tier 1 Leverage Ratio (Bank only)     8.36 %   8.67 %   8.40 %   8.71 %   9.21 %
  Equity / Assets     9.30 %   9.60 %   9.66 %   9.75 %   10.66 %
  Tangible common equity / Total assets     7.04 %   7.22 %   7.21 %   7.22 %   7.85 %
                                   
  Book value per share   $ 7.78   $ 7.60   $ 7.41   $ 7.18   $ 7.04  
  Stock price   $ 6.50   $ 5.95   $ 5.13   $ 5.70   $ 4.30  
  Stock price / book value (%)     83.6 %   78.3 %   69.3 %   79.4 %   61.1 %
  Income per share - basic & diluted   $ 0.19   $ 0.20   $ 0.23   $ 0.15   $ 0.13  
  Shares outstanding     1,857,128     1,846,128     1,836,662     1,836,662     1,836,662  
  Average shares outstanding     1,851,205     1,844,130     1,836,662     1,836,662     1,825,058  
   
(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