Birmingham Bloomfield Bancshares, Inc. Announces Unaudited

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Apr 24, 2013 at 12:15 PM

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