Birmingham Bloomfield Bancshares, Inc. Announces Record Results for Period Ended September 30, 2013
Birmingham Bloomfield Bancshares, Inc. Announces Record Results for Period Ended September 30, 2013
BIRMINGHAM, MI--(Marketwired - Oct 28, 2013) - Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and nine month periods ended September 30, 2013. The Company generated record income on a pre-tax, pre-provision basis as a result of significant growth in earning assets.
The Company reported net income of $268,000 or $0.15 per common share for the third quarter of 2013 compared to net income of $138,000 or $0.08 per common share for the same period of 2012. Net income for the nine month period ended September 30, 2013 was $787,000 or $0.43 per common share compared to $682,000 or $0.38 per common share for the same period last year.
Chief Executive Officer, Rob Farr, issued the results and commented, "The performance produced record earnings on a pre-tax, pre-provision basis, and net income increased 15.3% compared to 2012. Total assets have increased 23.0% on a year over year basis and total loans reached $151.5 million as the end of the third quarter. The growth has translated to an increase in the earnings capacity of the balance sheet and our net interest margin still remains strong despite the competitive pricing environment in our local markets. We continue to focus on opportunities to improve the core profitability of the Bank and increase franchise value."
Results of Operation
The Company reported net interest income of $1.752 million for the third quarter of 2013, a 16.3% increase relative to the same quarter of 2012. Net interest margin for the quarter was 4.36% compared to 4.50% for the most recent linked quarter and 4.65% for the third quarter of 2012. The margin compression is a result of the changing product mix of the balance sheet and competitive pricing environment. Net interest income for the first nine months of 2013 increased 13.0% to $4.967 million relative to the same period of 2012. The improvement was the result of portfolio loan growth and a modest reduction in total funding costs.
The Company provided $180,000 in provision expense during the third quarter of 2013, a decrease of $150,000 compared to the same period last year. Total provision expense for the year to date period ending September 30, 2013 was $280,000, compared to $400,000 for the nine month period in 2012. The current year provision expense was specifically related to new loan volume. Net loan charges offs for the year to date period totaled $336,000.
Total non-interest income for the third quarter of 2013 was $210,000, compared to $300,000 for the same period of 2012. The decrease was a function of reduced loan volume related to commercial SBA and residential mortgage loans sold in the secondary market. Total non-interest income for the year to date period ending September 30, 2013 was $610,000, a decrease of $286,000 from the prior period. The reduction in revenue was a result of a decline in mortgage and SBA loan activity. In addition, the Company recognized a $150,000 gain in 2012 related to the sale of an ORE property.
Total non-interest expense for the third quarter of 2013 was $1.358 million, compared to $1.394 million for the most recent linked quarter and $1.248 million for the same period of 2012. The quarter over quarter decline in expenses for 2013 was a result of focused efforts by the Company to improve efficiency and lower the operating cost burden. Year to date non-interest expense for 2013 was $4.054 million, an increase of $251,000 relative to 2012. The increase in expenses are a result of the Company's growth, specifically hiring new personnel, expanding infrastructure capacity and investments in new products and applications.
Balance Sheet
Total assets as of September 30, 2013 were $182.7 million, an increase of 23.0% from the prior year and 19.6% from December 31, 2012. The growth was a result of improved market penetration due to focused business development efforts and expanded product options. Total portfolio loans reached $151.5 million at the end of the current quarter, an increase of $13.5 million from the most recent linked quarter and 27.9% or $33.1 million from September 30, 2012. The increase was primarily concentrated in commercial real estate, mortgage related loans and commercial leases. The asset quality of the Company remains solid, total non-performing loans have declined and the allowance for loan loss was 1.31% of total portfolio loans as the end of the period. Total deposits as of September 30, 2013 were $163.8 million, an increase of 24.9% from the prior year. The growth was a function of our expanded presence in the community, targeted marketing programs and increased activity in the wholesale market. The Bank continues to be classified as well capitalized based on regulatory guidelines with a Tier 1 ratio of 8.71% and remains a 5-Star rated institution from 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 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)
September 30, December 31, September 30,
2013 2012 2012
ASSETS
Cash and due from banks $ 23,426,914 $ 15,539,072 $ 20,841,410
Federal funds sold - - -
Total cash and cash equivalents 23,426,914 15,539,072 20,841,410
Securities available-for-sale 3,007,173 3,725,923 3,837,942
Securities held-to-maturity - - -
Federal Home Loan Bank Stock 248,000 218,100 218,100
Total securities 3,255,173 3,944,023 4,056,042
Loans held for sale - - -
Portfolio loans
Consumer loans 1,692,481 1,801,991 1,380,152
Mortgage loans 18,260,586 16,203,001 16,222,484
Commercial leases 11,759,921 1,346,177 -
Commercial loans 119,810,689 108,926,273 100,837,254
Total loans 151,523,677 128,277,442 118,439,890
Less: Allowance for loan loss 1,988,587 2,044,350 1,974,350
Net loans 149,535,090 126,233,092 116,465,540
Premises and equipment, net 1,148,428 1,277,802 1,326,624
Bank owned life insurance 2,238,172 2,182,513 2,162,296
Accrued interest receivable and other assets 3,088,983 3,596,576 3,644,739
TOTAL ASSETS $ 182,692,760 $ 152,773,078 $ 148,496,651
LIABILITIES
Deposits
Noninterest-bearing $ 30,224,120 $ 23,947,132 $ 21,733,611
Interest-bearing 133,611,792 110,955,051 109,413,057
Total deposits 163,835,912 134,902,183 131,146,668
Short term borrowings - - -
Accrued interest payable, taxes and other liabilities 1,048,141 867,356 667,533
Total liabilities 164,884,053 135,769,539 131,814,201
SHAREHOLDERS' EQUITY
Senior preferred stock, series D 4,621,000 4,621,000 4,621,000
Common Stock, no par value 17,163,818 17,105,618 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 36,490 76,066 91,669
Additional paid in capital - share based payments 493,154 493,154 493,154
Accumulated deficit (4,505,755 ) (5,292,299 ) (5,628,991 )
Total shareholders' equity 17,808,707 17,003,539 16,682,451
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 182,692,760 $ 152,773,078 $ 148,496,651
Book value per share $ 7.18 $ 6.74 $ 6.61
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
2013 2012 2013 2012
Interest Income
Interest and fees on loans
Commercial loans $ 1,612,221 $ 1,507,071 $ 4,632,213 $ 4,422,140
Commercial leases 134,191 - 260,245 -
Installment loans 25,525 18,358 84,820 52,636
Mortgage loans 104,106 69,602 291,028 181,095
Home Equity loans 87,101 90,632 259,595 278,370
Late charges and fees 6,034 28,230 32,218 62,483
Total loan interest and fee income 1,969,178 1,713,893 5,560,119 4,996,724
Interest bearing deposits 8,477 7,317 23,453 13,907
Federal Funds Sold - - - -
Interest on investment securities
Taxable 19,691 23,309 63,395 72,249
Tax-exempt 961 992 2,906 3,000
Total investment income 20,652 24,301 66,301 75,249
Total interest income 1,998,307 1,745,511 5,649,873 5,085,880
Interest Expense
Interest on deposits 246,129 238,608 682,739 689,555
Interest on borrowed funds - - - 64
Total interest expense 246,129 238,608 682,739 689,619
Net Interest Income 1,752,178 1,506,903 4,967,134 4,396,261
Provision for loan losses 180,000 330,000 280,000 400,000
Net Interest Income After Provision for Loan Losses 1,572,178 1,176,903 4,687,134 3,996,261
Non-interest Income
Service charge income 18,562 19,413 55,482 58,710
Mortgage banking activities 49,999 77,165 159,187 274,032
SBA loan sales 111,074 173,099 305,635 321,848
Other income 30,747 30,031 89,436 240,733
Total non-interest income 210,382 299,708 609,740 895,323
Non-interest Expense
Salaries and employee benefits 775,072 653,234 2,268,242 2,055,073
Occupancy expense 120,358 122,137 368,404 356,804
Equipment expense 50,885 49,950 158,736 150,229
Advertising 48,458 81,712 158,470 172,180
Data Processing 76,883 63,178 201,588 180,219
Professional fees 118,545 102,328 400,483 378,629
Loan origination expense 39,600 48,091 98,306 155,147
Regulatory Assessments 36,624 25,270 100,491 74,245
Other expense 91,263 102,264 298,983 280,363
Total non-interest expense 1,357,688 1,248,164 4,053,703 3,802,889
Net Income Before Income Taxes 424,872 228,447 1,243,171 1,088,695
Income tax expense 145,377 78,700 421,969 361,351
Net Income 279,495 149,747 821,202 727,344
Dividend on preferred stock 11,553 11,552 34,658 44,936
Net Income applicable to common shareholders $ 267,942 $ 138,195 $ 786,544 $ 682,408
Income per share - basic $ 0.15 $ 0.08 $ 0.43 $ 0.38
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
September 30, Change
2013 2012 Amount Percentage
INCOME STATEMENT
Interest Income $ 5,650 $ 5,086 $ 564 11.1 %
Interest Expense 683 690 (7 ) -1.0 %
Net Interest Income 4,967 4,396 571 13.0 %
Provision for loan loss 280 400 (120 ) -30.0 %
Non-interest income 610 895 (286 ) -31.9 %
Non-interest expense 4,054 3,803 251 6.6 %
Net Income before Income Taxes 1,243 1,089 154 14.2 %
Income tax expense 422 361 61 16.8 %
Net Income 821 727 94 12.9 %
Dividend on preferred stock 35 45 (10 ) -22.9 %
Net Income - common shareholders $ 787 $ 682 $ 104 15.3 %
Income per share - basic & diluted $ 0.43 $ 0.38 $ 0.05 14.6 %
BALANCE SHEET DATA
Total assets 182,693 148,497 34,196 23.0 %
Average Assets 163,490 135,682 27,808 20.5 %
Total loans 151,524 118,440 33,084 27.9 %
Allowance for loan loss (ALLL) 1,989 1,974 14 0.7 %
Total deposits 163,836 131,147 32,689 24.9 %
Other borrowings - - - 0.0 %
Shareholders' equity 17,809 16,682 1,126 6.8 %
Average Equity 17,409 16,449 959 5.8 %
ASSET QUALITY
Other real estate owned (OREO) - - - 0.0 %
Net charge-offs 336 - 336 0.0 %
Non-accrual loans 316 708 (392 ) -55.4 %
(2) Non-performing assets (NPA) 316 708 (392 ) -55.4 %
Non-accrual loans / total loans 0.21 % 0.60 % -0.39 % -65.2 %
Allowance for loan loss / total loans 1.31 % 1.67 % -0.35 % -21.3 %
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent) 4.47 % 4.78 % -0.31 % -6.5 %
(1) Return on average assets (annualized) 0.67 % 0.72 % -0.05 % -6.9 %
(3) Return on average assets (annualized) 1.25 % 1.47 % -0.22 % -15.0 %
(1) Return on average common equity (annualized) 8.59 % 8.21 % 0.38 % 4.6 %
(3) Return on average common equity (annualized) 15.93 % 16.81 % -0.88 % -5.2 %
Efficiency ratio 72.7 % 71.9 % 0.82 % 1.1 %
Total loans / Total deposits 92.5 % 90.3 % 2.17 % 2.4 %
Tier 1 Leverage Ratio (Bank only) 8.71 % 9.20 % -0.49 % -5.33 %
Equity / Assets 9.75 % 11.23 % -1.49 % -13.2 %
Tangible common equity / Total assets 7.22 % 8.12 % -0.90 % -11.1 %
Book value per share $ 7.18 $ 6.61 $ 0.57 8.6 %
Stock price $ 5.70 $ 4.55 $ 1.15 25.3 %
Stock price / book value (%) 79.4 % 68.8 % 10.55 % 15.3 %
Income per share - basic & diluted $ 0.43 $ 0.38 $ 0.05 14.6 %
Income per share - basic & diluted (LTM) $ 0.61 $ 2.01 $ (1.40 ) -69.7 %
Price to earnings ratio (P/E) (year to date) 9.9x 9.1x 0.8x 9.3 %
Shares outstanding 1,836,662 1,824,662 12,000 0.7 %
Average shares outstanding 1,828,838 1,817,874 10,964 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
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
INCOME STATEMENT
Interest Income $ 1,998 $ 1,860 $ 1,792 $ 1,771 $ 1,746
Interest Expense 246 222 215 227 239
Net Interest Income 1,752 1,638 1,577 1,544 1,507
Provision for loan loss 180 90 10 70 330
Non-interest income 210 215 185 348 300
Non-interest expense 1,358 1,394 1,302 1,296 1,248
Net Income before Income Taxes 425 369 450 526 228
Income tax expense 145 125 152 177 79
Net Income 279 244 298 348 150
Dividend on preferred stock 12 12 12 12 12
Net Income applicable to common shareholders $ 268 $ 232 $ 287 $ 337 $ 138
Income per share - basic & diluted $ 0.15 $ 0.13 $ 0.16 $ 0.18 $ 0.08
BALANCE SHEET DATA
Total assets 182,693 164,588 156,985 152,773 148,497
Average Assets 175,007 160,953 154,282 154,452 146,057
Total loans 151,524 138,017 129,638 128,277 118,440
Allowance for loan loss (ALLL) 1,989 2,144 2,054 2,044 1,974
Total deposits 163,836 146,171 138,992 134,902 131,147
Other borrowings - - - - -
Shareholders' equity 17,809 17,546 17,281 17,004 16,682
Average Equity 17,682 17,399 17,139 16,822 16,728
ASSET QUALITY
Other real estate owned (OREO) - - - - -
Net charge-offs 336 - - - -
Non-accrual loans 316 732 732 764 708
(2) Non-performing assets (NPA) 316 732 732 764 708
Non-accrual loans / total loans 0.21 % 0.53 % 0.56 % 0.60 % 0.60 %
Allowance for loan loss / total loans 1.31 % 1.55 % 1.58 % 1.59 % 1.67 %
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent) 4.36 % 4.50 % 4.56 % 4.59 % 4.65 %
(1) Return on average assets (annualized) 0.63 % 0.61 % 0.78 % 0.90 % 0.41 %
(3) Return on average assets (annualized) 1.37 % 1.14 % 1.21 % 1.53 % 1.52 %
(1) Return on average common equity (annualized) 8.49 % 7.65 % 9.66 % 11.35 % 4.92 %
(3) Return on average common equity (annualized) 18.37 % 14.39 % 14.89 % 19.42 % 18.35 %
Efficiency ratio 69.2 % 75.2 % 73.9 % 68.5 % 69.1 %
Total loans / Total deposits 92.5 % 94.4 % 93.3 % 95.1 % 90.3 %
Tier 1 Leverage Ratio (Bank only) 8.71 % 9.21 % 9.36 % 9.03 % 9.20 %
Equity / Assets 9.75 % 10.66 % 11.01 % 11.13 % 11.23 %
Tangible common equity / Total assets 7.22 % 7.85 % 8.06 % 8.11 % 8.12 %
Book value per share $ 7.18 $ 7.04 $ 6.94 $ 6.79 $ 6.61
Stock price $ 5.70 $ 4.30 $ 4.95 $ 4.60 $ 4.55
Stock price / book value (%) 79.4 % 61.1 % 71.3 % 67.8 % 68.8 %
Income per share - basic & diluted $ 0.15 $ 0.13 $ 0.16 $ 0.18 $ 0.08
Shares outstanding 1,836,662 1,836,662 1,824,662 1,824,662 1,824,662
Average shares outstanding 1,836,662 1,825,058 1,824,662 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:
Robert M. Farr
Chief Executive Officer
Birmingham Bloomfield Bancshares, Inc.
248-283-6430
Birmingham Bloomfield Bancshares, Inc. Announces Record Results for Period Ended September 30, 2013
BIRMINGHAM, MI--(Marketwired - Oct 28, 2013) - Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and nine month periods ended September 30, 2013. The Company generated record income on a pre-tax, pre-provision basis as a result of significant growth in earning assets.
The Company reported net income of $268,000 or $0.15 per common share for the third quarter of 2013 compared to net income of $138,000 or $0.08 per common share for the same period of 2012. Net income for the nine month period ended September 30, 2013 was $787,000 or $0.43 per common share compared to $682,000 or $0.38 per common share for the same period last year.
Chief Executive Officer, Rob Farr, issued the results and commented, "The performance produced record earnings on a pre-tax, pre-provision basis, and net income increased 15.3% compared to 2012. Total assets have increased 23.0% on a year over year basis and total loans reached $151.5 million as the end of the third quarter. The growth has translated to an increase in the earnings capacity of the balance sheet and our net interest margin still remains strong despite the competitive pricing environment in our local markets. We continue to focus on opportunities to improve the core profitability of the Bank and increase franchise value."
Results of Operation
The Company reported net interest income of $1.752 million for the third quarter of 2013, a 16.3% increase relative to the same quarter of 2012. Net interest margin for the quarter was 4.36% compared to 4.50% for the most recent linked quarter and 4.65% for the third quarter of 2012. The margin compression is a result of the changing product mix of the balance sheet and competitive pricing environment. Net interest income for the first nine months of 2013 increased 13.0% to $4.967 million relative to the same period of 2012. The improvement was the result of portfolio loan growth and a modest reduction in total funding costs.
The Company provided $180,000 in provision expense during the third quarter of 2013, a decrease of $150,000 compared to the same period last year. Total provision expense for the year to date period ending September 30, 2013 was $280,000, compared to $400,000 for the nine month period in 2012. The current year provision expense was specifically related to new loan volume. Net loan charges offs for the year to date period totaled $336,000.
Total non-interest income for the third quarter of 2013 was $210,000, compared to $300,000 for the same period of 2012. The decrease was a function of reduced loan volume related to commercial SBA and residential mortgage loans sold in the secondary market. Total non-interest income for the year to date period ending September 30, 2013 was $610,000, a decrease of $286,000 from the prior period. The reduction in revenue was a result of a decline in mortgage and SBA loan activity. In addition, the Company recognized a $150,000 gain in 2012 related to the sale of an ORE property.
Total non-interest expense for the third quarter of 2013 was $1.358 million, compared to $1.394 million for the most recent linked quarter and $1.248 million for the same period of 2012. The quarter over quarter decline in expenses for 2013 was a result of focused efforts by the Company to improve efficiency and lower the operating cost burden. Year to date non-interest expense for 2013 was $4.054 million, an increase of $251,000 relative to 2012. The increase in expenses are a result of the Company's growth, specifically hiring new personnel, expanding infrastructure capacity and investments in new products and applications.
Balance Sheet
Total assets as of September 30, 2013 were $182.7 million, an increase of 23.0% from the prior year and 19.6% from December 31, 2012. The growth was a result of improved market penetration due to focused business development efforts and expanded product options. Total portfolio loans reached $151.5 million at the end of the current quarter, an increase of $13.5 million from the most recent linked quarter and 27.9% or $33.1 million from September 30, 2012. The increase was primarily concentrated in commercial real estate, mortgage related loans and commercial leases. The asset quality of the Company remains solid, total non-performing loans have declined and the allowance for loan loss was 1.31% of total portfolio loans as the end of the period. Total deposits as of September 30, 2013 were $163.8 million, an increase of 24.9% from the prior year. The growth was a function of our expanded presence in the community, targeted marketing programs and increased activity in the wholesale market. The Bank continues to be classified as well capitalized based on regulatory guidelines with a Tier 1 ratio of 8.71% and remains a 5-Star rated institution from 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 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)
September 30, December 31, September 30,
2013 2012 2012
ASSETS
Cash and due from banks $ 23,426,914 $ 15,539,072 $ 20,841,410
Federal funds sold - - -
Total cash and cash equivalents 23,426,914 15,539,072 20,841,410
Securities available-for-sale 3,007,173 3,725,923 3,837,942
Securities held-to-maturity - - -
Federal Home Loan Bank Stock 248,000 218,100 218,100
Total securities 3,255,173 3,944,023 4,056,042
Loans held for sale - - -
Portfolio loans
Consumer loans 1,692,481 1,801,991 1,380,152
Mortgage loans 18,260,586 16,203,001 16,222,484
Commercial leases 11,759,921 1,346,177 -
Commercial loans 119,810,689 108,926,273 100,837,254
Total loans 151,523,677 128,277,442 118,439,890
Less: Allowance for loan loss 1,988,587 2,044,350 1,974,350
Net loans 149,535,090 126,233,092 116,465,540
Premises and equipment, net 1,148,428 1,277,802 1,326,624
Bank owned life insurance 2,238,172 2,182,513 2,162,296
Accrued interest receivable and other assets 3,088,983 3,596,576 3,644,739
TOTAL ASSETS $ 182,692,760 $ 152,773,078 $ 148,496,651
LIABILITIES
Deposits
Noninterest-bearing $ 30,224,120 $ 23,947,132 $ 21,733,611
Interest-bearing 133,611,792 110,955,051 109,413,057
Total deposits 163,835,912 134,902,183 131,146,668
Short term borrowings - - -
Accrued interest payable, taxes and other liabilities 1,048,141 867,356 667,533
Total liabilities 164,884,053 135,769,539 131,814,201
SHAREHOLDERS' EQUITY
Senior preferred stock, series D 4,621,000 4,621,000 4,621,000
Common Stock, no par value 17,163,818 17,105,618 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 36,490 76,066 91,669
Additional paid in capital - share based payments 493,154 493,154 493,154
Accumulated deficit (4,505,755 ) (5,292,299 ) (5,628,991 )
Total shareholders' equity 17,808,707 17,003,539 16,682,451
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 182,692,760 $ 152,773,078 $ 148,496,651
Book value per share $ 7.18 $ 6.74 $ 6.61
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
2013 2012 2013 2012
Interest Income
Interest and fees on loans
Commercial loans $ 1,612,221 $ 1,507,071 $ 4,632,213 $ 4,422,140
Commercial leases 134,191 - 260,245 -
Installment loans 25,525 18,358 84,820 52,636
Mortgage loans 104,106 69,602 291,028 181,095
Home Equity loans 87,101 90,632 259,595 278,370
Late charges and fees 6,034 28,230 32,218 62,483
Total loan interest and fee income 1,969,178 1,713,893 5,560,119 4,996,724
Interest bearing deposits 8,477 7,317 23,453 13,907
Federal Funds Sold - - - -
Interest on investment securities
Taxable 19,691 23,309 63,395 72,249
Tax-exempt 961 992 2,906 3,000
Total investment income 20,652 24,301 66,301 75,249
Total interest income 1,998,307 1,745,511 5,649,873 5,085,880
Interest Expense
Interest on deposits 246,129 238,608 682,739 689,555
Interest on borrowed funds - - - 64
Total interest expense 246,129 238,608 682,739 689,619
Net Interest Income 1,752,178 1,506,903 4,967,134 4,396,261
Provision for loan losses 180,000 330,000 280,000 400,000
Net Interest Income After Provision for Loan Losses 1,572,178 1,176,903 4,687,134 3,996,261
Non-interest Income
Service charge income 18,562 19,413 55,482 58,710
Mortgage banking activities 49,999 77,165 159,187 274,032
SBA loan sales 111,074 173,099 305,635 321,848
Other income 30,747 30,031 89,436 240,733
Total non-interest income 210,382 299,708 609,740 895,323
Non-interest Expense
Salaries and employee benefits 775,072 653,234 2,268,242 2,055,073
Occupancy expense 120,358 122,137 368,404 356,804
Equipment expense 50,885 49,950 158,736 150,229
Advertising 48,458 81,712 158,470 172,180
Data Processing 76,883 63,178 201,588 180,219
Professional fees 118,545 102,328 400,483 378,629
Loan origination expense 39,600 48,091 98,306 155,147
Regulatory Assessments 36,624 25,270 100,491 74,245
Other expense 91,263 102,264 298,983 280,363
Total non-interest expense 1,357,688 1,248,164 4,053,703 3,802,889
Net Income Before Income Taxes 424,872 228,447 1,243,171 1,088,695
Income tax expense 145,377 78,700 421,969 361,351
Net Income 279,495 149,747 821,202 727,344
Dividend on preferred stock 11,553 11,552 34,658 44,936
Net Income applicable to common shareholders $ 267,942 $ 138,195 $ 786,544 $ 682,408
Income per share - basic $ 0.15 $ 0.08 $ 0.43 $ 0.38
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
September 30, Change
2013 2012 Amount Percentage
INCOME STATEMENT
Interest Income $ 5,650 $ 5,086 $ 564 11.1 %
Interest Expense 683 690 (7 ) -1.0 %
Net Interest Income 4,967 4,396 571 13.0 %
Provision for loan loss 280 400 (120 ) -30.0 %
Non-interest income 610 895 (286 ) -31.9 %
Non-interest expense 4,054 3,803 251 6.6 %
Net Income before Income Taxes 1,243 1,089 154 14.2 %
Income tax expense 422 361 61 16.8 %
Net Income 821 727 94 12.9 %
Dividend on preferred stock 35 45 (10 ) -22.9 %
Net Income - common shareholders $ 787 $ 682 $ 104 15.3 %
Income per share - basic & diluted $ 0.43 $ 0.38 $ 0.05 14.6 %
BALANCE SHEET DATA
Total assets 182,693 148,497 34,196 23.0 %
Average Assets 163,490 135,682 27,808 20.5 %
Total loans 151,524 118,440 33,084 27.9 %
Allowance for loan loss (ALLL) 1,989 1,974 14 0.7 %
Total deposits 163,836 131,147 32,689 24.9 %
Other borrowings - - - 0.0 %
Shareholders' equity 17,809 16,682 1,126 6.8 %
Average Equity 17,409 16,449 959 5.8 %
ASSET QUALITY
Other real estate owned (OREO) - - - 0.0 %
Net charge-offs 336 - 336 0.0 %
Non-accrual loans 316 708 (392 ) -55.4 %
(2) Non-performing assets (NPA) 316 708 (392 ) -55.4 %
Non-accrual loans / total loans 0.21 % 0.60 % -0.39 % -65.2 %
Allowance for loan loss / total loans 1.31 % 1.67 % -0.35 % -21.3 %
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent) 4.47 % 4.78 % -0.31 % -6.5 %
(1) Return on average assets (annualized) 0.67 % 0.72 % -0.05 % -6.9 %
(3) Return on average assets (annualized) 1.25 % 1.47 % -0.22 % -15.0 %
(1) Return on average common equity (annualized) 8.59 % 8.21 % 0.38 % 4.6 %
(3) Return on average common equity (annualized) 15.93 % 16.81 % -0.88 % -5.2 %
Efficiency ratio 72.7 % 71.9 % 0.82 % 1.1 %
Total loans / Total deposits 92.5 % 90.3 % 2.17 % 2.4 %
Tier 1 Leverage Ratio (Bank only) 8.71 % 9.20 % -0.49 % -5.33 %
Equity / Assets 9.75 % 11.23 % -1.49 % -13.2 %
Tangible common equity / Total assets 7.22 % 8.12 % -0.90 % -11.1 %
Book value per share $ 7.18 $ 6.61 $ 0.57 8.6 %
Stock price $ 5.70 $ 4.55 $ 1.15 25.3 %
Stock price / book value (%) 79.4 % 68.8 % 10.55 % 15.3 %
Income per share - basic & diluted $ 0.43 $ 0.38 $ 0.05 14.6 %
Income per share - basic & diluted (LTM) $ 0.61 $ 2.01 $ (1.40 ) -69.7 %
Price to earnings ratio (P/E) (year to date) 9.9x 9.1x 0.8x 9.3 %
Shares outstanding 1,836,662 1,824,662 12,000 0.7 %
Average shares outstanding 1,828,838 1,817,874 10,964 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
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
INCOME STATEMENT
Interest Income $ 1,998 $ 1,860 $ 1,792 $ 1,771 $ 1,746
Interest Expense 246 222 215 227 239
Net Interest Income 1,752 1,638 1,577 1,544 1,507
Provision for loan loss 180 90 10 70 330
Non-interest income 210 215 185 348 300
Non-interest expense 1,358 1,394 1,302 1,296 1,248
Net Income before Income Taxes 425 369 450 526 228
Income tax expense 145 125 152 177 79
Net Income 279 244 298 348 150
Dividend on preferred stock 12 12 12 12 12
Net Income applicable to common shareholders $ 268 $ 232 $ 287 $ 337 $ 138
Income per share - basic & diluted $ 0.15 $ 0.13 $ 0.16 $ 0.18 $ 0.08
BALANCE SHEET DATA
Total assets 182,693 164,588 156,985 152,773 148,497
Average Assets 175,007 160,953 154,282 154,452 146,057
Total loans 151,524 138,017 129,638 128,277 118,440
Allowance for loan loss (ALLL) 1,989 2,144 2,054 2,044 1,974
Total deposits 163,836 146,171 138,992 134,902 131,147
Other borrowings - - - - -
Shareholders' equity 17,809 17,546 17,281 17,004 16,682
Average Equity 17,682 17,399 17,139 16,822 16,728
ASSET QUALITY
Other real estate owned (OREO) - - - - -
Net charge-offs 336 - - - -
Non-accrual loans 316 732 732 764 708
(2) Non-performing assets (NPA) 316 732 732 764 708
Non-accrual loans / total loans 0.21 % 0.53 % 0.56 % 0.60 % 0.60 %
Allowance for loan loss / total loans 1.31 % 1.55 % 1.58 % 1.59 % 1.67 %
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent) 4.36 % 4.50 % 4.56 % 4.59 % 4.65 %
(1) Return on average assets (annualized) 0.63 % 0.61 % 0.78 % 0.90 % 0.41 %
(3) Return on average assets (annualized) 1.37 % 1.14 % 1.21 % 1.53 % 1.52 %
(1) Return on average common equity (annualized) 8.49 % 7.65 % 9.66 % 11.35 % 4.92 %
(3) Return on average common equity (annualized) 18.37 % 14.39 % 14.89 % 19.42 % 18.35 %
Efficiency ratio 69.2 % 75.2 % 73.9 % 68.5 % 69.1 %
Total loans / Total deposits 92.5 % 94.4 % 93.3 % 95.1 % 90.3 %
Tier 1 Leverage Ratio (Bank only) 8.71 % 9.21 % 9.36 % 9.03 % 9.20 %
Equity / Assets 9.75 % 10.66 % 11.01 % 11.13 % 11.23 %
Tangible common equity / Total assets 7.22 % 7.85 % 8.06 % 8.11 % 8.12 %
Book value per share $ 7.18 $ 7.04 $ 6.94 $ 6.79 $ 6.61
Stock price $ 5.70 $ 4.30 $ 4.95 $ 4.60 $ 4.55
Stock price / book value (%) 79.4 % 61.1 % 71.3 % 67.8 % 68.8 %
Income per share - basic & diluted $ 0.15 $ 0.13 $ 0.16 $ 0.18 $ 0.08
Shares outstanding 1,836,662 1,836,662 1,824,662 1,824,662 1,824,662
Average shares outstanding 1,836,662 1,825,058 1,824,662 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:
Robert M. Farr
Chief Executive Officer
Birmingham Bloomfield Bancshares, Inc.
248-283-6430
