Birmingham Bloomfield Bancshares, Inc. Announces U

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