Birmingham Bloomfield Bancshares, Inc. Announces Third Quarter Results

Oct 18, 2011, 17:02 ET from Birmingham Bloomfield Bancshares, Inc.

BIRMINGHAM, Mich., Oct. 18, 2011 /PRNewswire/ -- Birmingham Bloomfield Bancshares, Inc. (OTC Bulletin Board: BBBI) (“the Company”), the holding company for Bank of Birmingham, today announced results for the three and nine month periods ending September 30, 2011. The performance produced record earnings and represents the sixth consecutive quarter of profitability.

The Company reported net income of $109,000 or $0.06 per common share for the third quarter of 2011 compared to net income of $50,000 or $0.03 per common share for the same period of 2010. Net income for the nine month period ended September 30, 2011 was $785,000 or $0.44 per common share compared to $117,000 or $0.06 per common share for the same period last year.

Results of Operation

The Company reported net interest income of $1.281 million for the third quarter of 2011, a 9.5% increase relative to the same quarter of 2010 and a 2.4% increase compared to the most recent linked quarter. The improvement is a direct result of loan growth and lower cumulative funding costs. Net interest margin for the three month period ended September 30, 2011 was 4.44%, marginally lower than the second quarter of 2011 as the Company experienced mild rate compression due to lower asset yields and a change in the mix of the balance sheet. Net interest income for the first nine months of 2011 was $3.792 million, an increase of 19.0% relative to the same period of 2010. The increase in core revenue is a result of earning asset growth and a reduction in deposit expense. Net interest margin for the year to date period ended September 30, 2011 was 4.48% compared to 4.19% for the same period of 2010.

The Company provided $105,000 in provision expense during the third quarter of 2011, a decrease of $151,000 from the same period last year. Total provision expense for the year to date period ending September 30, 2011 was $159,000, compared to $545,000 for same period of 2010. The decrease in provision expense is attributable to the limited number of classified assets and reduction in charge off activity. Net charge offs in 2011 totaled $108,000, compared to $296,000 for the same period last year.

The Company continues to generate significant revenue from non-interest income sources. Net-interest income for the third quarter of 2011 was $319,000, compared to $24,000 for the same quarter in 2010. Total non-interest income for the year to date period ending September 30, 2011 was $924,000 a significant increase relative to the $88,000 reported for the same period last year. The increase for both periods presented is the result of revenue from SBA loan sales and mortgage banking activity; new products offered by the Company in 2011. Income from the sale of residential mortgages in the secondary market totaled $108,000 and $167,000 for the three and nine month periods respectively. The Company also continues to participate in the Small Business Administrative loan program to generate additional revenue. In 2011, the Company earned $186,000 and $687,000, respectively on sales of SBA loans for the quarter and year to date periods presented.

Total non-interest expense for the third quarter of 2011 was $1.317 million, an increase of $477,000 compared to the prior year. Year to date non-interest expense for 2011 totaled $3.607 million, compared to $2.467 million for the same period last year.  The increase in expenses are the result of costs associated with developing the mortgage division, expanding office space at the main branch location, hiring additional personnel to accommodate anticipated growth and engaging professionals to assist the Company with strategic initiatives.

Balance Sheet

Total assets as of September 30, 2011 were $124.743 million, a 5.2% increase from the period ended June 30, 2011, and a 13.1% increase from December 31, 2010. The balance sheet growth is a result of successfully attracting core deposits to fund new loan volume. Although the current lending market remains soft, quality opportunities are available. The Company continues to focus on generating organic growth in our primary markets by offering a variety of products and providing exceptional customer service.

The asset quality of the Company remains strong. Nonperforming assets at the end of the quarter totaled $298,000 and the allowance for loan loss represented 1.46% of total loans. At September 30, 2011 the Company’s book value was $4.65 and the subsidiary bank continues to be classified as well capitalized based on regulatory guidelines.  

Chief Executive Officer, Rob Farr issued the results and commented, “The Company reported our sixth consecutive quarter of profitability and record earnings for the first nine months of 2011. Our margin remains very strong despite the current rate environment and we achieved a Return on Average Assets before preferred dividends of 1.08% for the year to date period. We have been successful in diversifying our revenue and growing the balance sheet despite a depressed market. The strategic initiatives we established at the beginning of the year are having a material impact on the performance of the Company and provide a strong foundation for the future of the franchise. We are excited about our prospects as we move forward and believe we are in a good position to take advantage of future opportunities.”

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; Hill, Thompson, Magid & Co; Jersey City, New Jersey; 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 Corporation's filings with the Securities and Exchange Commission, available free via EDGAR. The Corporation 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,

2011

2010

2010

ASSETS

Cash and due from banks

$   15,212,448

$     5,300,368

$   11,661,891

Federal funds sold

-

65,936

50,299

Total cash and cash equivalents

15,212,448

5,366,304

11,712,190

Securities available-for-sale

4,182,261

3,200,002

3,801,572

Securities held-to-maturity

-

-

-

Federal Home Loan Bank Stock

169,900

160,200

162,100

Total securities

4,352,161

3,360,202

3,963,672

Loans held for Sale

1,232,221

322,500

-

Portfolio loans

Consumer loans

1,165,438

1,054,573

1,048,882

Mortgage loans

10,641,099

11,335,007

11,203,167

Commercial loans

90,773,268

87,989,098

82,032,057

Total loans

102,579,805

100,378,678

94,284,106

Less: Allowance for loan loss

1,499,350

1,448,096

1,424,006

Net loans

101,080,455

98,930,582

92,860,100

Premises and equipment, net

1,446,008

1,359,510

1,366,918

Accrued interest receivable and other assets

1,419,754

995,438

1,351,593

TOTAL ASSETS

$ 124,743,047

$ 110,334,536

$ 111,254,473

LIABILITIES

Deposits

Noninterest-bearing

$   15,830,438

$   14,190,295

$   12,708,760

Interest-bearing

95,340,302

83,060,199

87,288,547

Total deposits

111,170,740

97,250,494

99,997,307

Short term borrowings

-

1,469,095

-

Accrued interest payable, taxes and other liabilities

516,351

629,422

358,610

Total liabilities

111,687,091

99,349,011

100,355,917

SHAREHOLDERS' EQUITY

Senior preferred stock A

-

1,635,000

1,635,000

Discount on senior preferred stock A

-

(61,027)

(65,474)

Warrant preferred stock B

-

82,000

82,000

Premium on warrant preferred stock B

-

6,634

7,117

Senior preferred stock C

-

1,744,000

1,744,000

Discount on senior preferred stock C

-

-

-

Senior preferred stock D

4,621,000

-

-

Common Stock, no par value

17,066,618

17,034,330

17,034,330

Authorized – 4,500,000 shares, Issued and outstanding – 1,812,662

1,800,000 and 1,800,000 shares respectively

Accumulated other comprehensive income

152,009

112,908

150,965

Additional paid in capital

-

-

-

Additional paid in capital - share based payments

493,154

493,154

493,154

Accumulated deficit

(9,276,825)

(10,061,474)

(10,182,536)

Total shareholders' equity

13,055,956

10,985,525

10,898,556

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 124,743,047

$ 110,334,536

$ 111,254,473

-

-

-

Book value per share

$4.65

$4.21

$4.16

Birmingham Bloomfield Bancshares, Inc.

Consolidated Statement of Income (Unaudited)

For the three months ended

For the nine months ended

September 30,

September 30,

2011

2010

2011

2010

Interest Income

Interest and fees on loans

Commercial loans

$ 1,419,136

$ 1,330,539

$ 4,234,101

$ 3,696,518

Installment loans

16,621

13,270

43,168

32,195

Mortgage loans

21,335

20,201

56,504

56,070

Home Equity loans

94,114

94,064

289,706

272,625

Late charges and fees

3,460

2,953

21,240

16,515

Total loan interest and fee income

1,554,666

1,461,027

4,644,719

4,073,923

Interest bearing deposits

4,940

9,967

15,291

21,283

Federal Funds Sold

-

51

13

1,299

Interest on investment securities

Taxable

22,064

35,215

74,786

101,270

Tax-exempt

408

-

408

-

Total investment income

22,472

35,215

75,194

101,270

Total interest income

1,582,078

1,506,260

4,735,217

4,197,775

Interest Expense

Interest on deposits

301,195

336,660

929,127

1,012,639

Interest on borrowed funds

-

-

14,509

-

Total interest expense

301,195

336,660

943,636

1,012,639

Net Interest Income

1,280,883

1,169,600

3,791,581

3,185,136

Provision for loan losses

105,000

255,652

159,000

544,949

Net Interest Income After Provision for Loan Losses

1,175,883

913,948

3,632,581

2,640,187

Non-interest Income

Service charge income

15,208

14,576

39,369

36,654

Mortgage banking activities

108,384

-

167,145

-

SBA loan sales

186,151

-

686,884

-

Other income

8,808

9,896

30,426

51,718

Total non-interest income

318,551

24,472

923,824

88,372

Non-interest Expense

Salaries and employee benefits

729,641

400,185

1,955,026

1,157,192

Occupancy expense

145,294

109,796

388,979

330,271

Equipment expense

55,722

33,601

133,310

103,670

Advertising

29,276

24,727

110,019

76,967

Data Processing

57,379

56,870

166,952

162,000

Professional fees

105,963

81,234

363,403

247,622

Loan origination expense

37,223

18,346

86,273

58,601

Other expense

156,963

115,721

403,434

330,405

Total non-interest expense

1,317,461

840,480

3,607,396

2,466,728

Net Income Before Income Taxes

176,973

97,940

949,009

261,831

Income tax expense

-

-

-

-

Net Income

176,973

97,940

949,009

261,831

Dividend and accretion on preferred stock

67,995

48,273

164,360

144,931

Net Income applicable to common shareholders

$    108,978

$      49,667

$    784,649

$    116,900

Income per share - basic

$          0.06

$          0.03

$          0.44

$          0.06

Birmingham Bloomfield Bancshares, Inc.

Financial Summary and Selected Ratios (Unaudited)

(Dollars in thousands except per share data)

Year to Date

September 30,

Change

2011

2010

Amount

Percentage

INCOME STATEMENT

Interest Income

$      4,735

$      4,198

$    537

12.8%

Interest Expense

944

1,013

(69)

-6.8%

Net Interest Income

3,792

3,185

606

19.0%

Provision for loan loss

159

545

(386)

-70.8%

Non-interest income

924

88

835

945.4%

Non-interest expense

3,607

2,467

1,141

46.2%

Net Income before Income Taxes

949

262

687

262.5%

Income tax expense

-

-

-

0.0%

Net Income

949

262

687

262.5%

Dividend and accretion on preferred stock

164

145

19

13.4%

Net Income - common shareholders

$         785

$         117

$    668

571.2%

Income per share - basic & diluted

$        0.44

$        0.06

$   0.37

571.0%

BALANCE SHEET DATA

Total assets

124,743

111,254

13,489

12.1%

Average Assets

118,010

104,903

13,107

12.5%

Total loans

102,580

94,284

8,296

8.8%

Allowance for loan loss (ALLL)

1,499

1,424

75

5.3%

Total deposits

111,171

99,997

11,173

11.2%

Other borrowings

-

-

-

0.0%

Shareholders' equity

13,056

10,899

2,157

19.8%

Average Equity

11,728

10,785

943

8.7%

ASSET QUALITY

Other real estate owned (OREO)

298

-

298

0.0%

Net charge-offs

108

296

(188)

-63.5%

Non-accrual loans

-

298

(298)

-100.0%

(2)

Non-performing assets (NPA)

298

298

(0)

-0.1%

Non-accrual loans / total loans

0.00%

0.32%

-0.32%

-100.0%

Allowance for loan loss / total loans

1.46%

1.51%

-0.05%

-3.2%

PERFORMANCE MEASUREMENTS

Net interest margin (tax equivalent)

4.48%

4.19%

0.29%

6.9%

(1)

Return on average assets (annualized)

1.08%

0.33%

0.75%

223.6%

(1)

Return on average common equity (annualized)

15.80%

4.74%

11.06%

233.5%

Efficiency ratio

76.50%

75.35%

1.15%

1.5%

Tier 1 Leverage Ratio (Bank only)

9.22%

8.19%

1.03%

12.58%

Equity / Assets

10.47%

9.80%

0.67%

6.8%

Total loans / Total deposits

92.3%

94.3%

-2.01%

-2.1%

Book value per share

$        4.65

$        4.16

$   0.49

11.7%

Income (loss) per share - basic & diluted

$        0.44

$        0.06

$   0.37

571.0%

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. 

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,

2011

2011

2011

2010

2010

INCOME STATEMENT

Interest Income

$      1,582

$      1,565

$      1,588

$      1,554

$      1,506

Interest Expense

301

314

329

327

337

Net Interest Income

1,281

1,251

1,260

1,226

1,170

Provision for loan loss

105

15

39

49

256

Non-interest income

319

280

325

37

24

Non-interest expense

1,317

1,207

1,083

1,046

840

Net Income before Income Taxes

177

310

462

169

98

Income tax expense

-

-

-

-

-

Net Income

177

310

462

169

98

Dividend and accretion on preferred stock

68

48

48

48

48

Net Income applicable to common shareholders

$         109

$         261

$         414

$         121

$           50

Income per share - basic & diluted

$        0.06

$        0.15

$        0.23

$        0.07

$        0.03

BALANCE SHEET DATA

Total assets

124,743

118,604

116,521

110,335

111,254

Average Assets

121,526

117,002

115,435

111,366

110,091

Total loans

102,580

100,079

98,205

100,379

94,284

Allowance for loan loss (ALLL)

1,499

1,502

1,487

1,448

1,424

Total deposits

111,171

106,305

104,588

97,250

99,997

Other borrowings

-

-

-

1,469

-

Shareholders' equity

13,056

11,696

11,403

10,986

10,899

Average Equity

12,520

11,481

11,167

10,942

10,860

ASSET QUALITY

Other real estate owned (OREO)

298

298

-

-

-

Net charge-offs

108

-

-

24

-

Non-accrual loans

-

-

298

298

298

(2)

Non-performing assets (NPA)

298

298

298

298

298

Non-accrual loans / total loans

0.00%

0.00%

0.30%

0.30%

0.32%

Allowance for loan loss / total loans

1.46%

1.50%

1.51%

1.44%

1.51%

PERFORMANCE MEASUREMENTS

Net interest margin (tax equivalent)

4.44%

4.51%

4.49%

4.46%

4.32%

(1)

Return on average assets (annualized)

0.58%

1.06%

1.62%

0.60%

0.35%

(1)

Return on average common equity (annualized)

8.49%

15.39%

24.17%

8.89%

5.21%

Efficiency ratio

82.37%

78.80%

68.36%

82.78%

70.39%

Tier 1 Leverage Ratio (Bank only)

9.22%

8.54%

8.33%

8.15%

8.19%

Equity / Assets

10.47%

9.86%

9.79%

9.96%

9.80%

Total loans / Total deposits

92.3%

94.1%

93.9%

103.2%

94.3%

Book value per share

$        4.65

$        4.60

$        4.44

$        4.21

$        4.16

Income (loss) per share - basic & diluted

$        0.06

$        0.15

$        0.23

$        0.07

$        0.03

Shares outstanding

1,812,662

1,800,000

1,800,000

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. 

SOURCE Birmingham Bloomfield Bancshares, Inc.



RELATED LINKS

http://www.bankofbirmingham.net