BIRMINGHAM, MI -- (Marketwired) -- 07/14/14 -- 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 For the six months
ended 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
------------------------------------------------------
December September
June 30, March 31, 31, 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:
Robert M. Farr
Chief Executive Officer
Birmingham Bloomfield Bancshares, Inc.
248-283-6430
