251 0 Kommentare Birmingham Bloomfield Bancshares, Inc. Announces Record Earnings for Period Ended June 30, 2015

BIRMINGHAM, MI--(Marketwired - July 28, 2015) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and six month periods ended June 30, 2015. The Company experienced solid asset growth and generated record earnings on an increase in core earnings.

The Company reported net income of $588,000 or $0.31 per common share for the second quarter of 2015 compared to net income of $345,000 or $0.19 per common share for the same period of 2014. Net income for the six month period ended June 30, 2015 was $876,000 or $0.47 per common share compared to $716,000 or $0.39 per common share for the same period last year.

Chief Executive Officer, Rob Farr, issued the results and commented: "The performance represents record earnings for the Bank and produced a pre-tax, pre-provision ROA of 1.74%. The results are the product of higher profit margins, improved efficiency and growth in earning assets. Net Income on a pre-tax, pre-provision basis increased 68% from 2014 and total assets have grown $23.3 million over the past twelve months. We have also seen positive movement in the market and currently trade at a premium to book value. This was a solid start to 2015 and we are focused on maintaining the momentum for the remainder of the year."

Results of Operation

The Company reported net interest income of $2.140 million for the second quarter of 2015, a 14.5% increase compared to the same quarter of 2014 and 3.4% increase from the first quarter of 2015. Net interest margin for the quarter was 4.00% compared to 4.10% for the most recent linked quarter and 4.17% for December 31, 2014. The margin compression is a function of changes in the earning asset mix of the Company's balance sheet, competitive pricing environment and marginally higher funding costs. Net interest income for the first six months of 2015 was $4.210 million, an increase of 14.2% relative to the same period of 2014. The increase was the direct result of earning asset growth.

The Company provided $180,000 in provision expense during the quarter as the result of new loan volume. Total provision expense for the year to date period ending June 30, 2015 was $525,000 and the allowance coverage ratio was 1.27%. There have been no net charge offs during the period and total nonaccrual loans remained flat relative to the first quarter of 2015.

Total non-interest income for the second quarter of 2015 was $562,000, compared to $134,000 for the same period of 2014. For the year to date period ending June 30, 2015 total non-interest income was $798,000, an increase of $443,000 relative to the prior period. The increase is primarily a result of additional income from the sale of SBA loans in the secondary market.

Total non-interest expense for the second quarter of 2015 was $1.610 million, compared to $1.460 million in 2014. Year to date non-interest expense for 2015 was $3.115 million, an increase of $196,000 relative to the same period in 2014. The increase in expenses was the result of hiring additional personnel to support growth, investing in our marketing efforts to promote the bank, engaging professionals to assist with the banks long term strategic initiatives and additional collection costs associated with resolving a problem loan.

Balance Sheet

Total assets as of June 30, 2015 were $228.3 million, an increase of $23.2 million from the prior year and 10.3% from December 31, 2014. The growth was a result of our strong foundation, quality product options and expanding presence in our core market. Total portfolio loans reached $202.8 million at the end of the second quarter, an increase of $13.3 million from first quarter and $36.9 million from June 30, 2014. The increase is due to improved economic conditions, strong marketing approach and superior service. The asset quality of the Company remains solid. There have been no charge offs and total non-performing loans remained flat relative to March 31, 2015. Total deposits as of June 30, 2015 were $204.9 million, an increase of $19.9 million from the same period in 2014. The growth was a function of our more visible profile in the community, expansion of existing relationships and aggressive pursuit of new customers. 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 as a single point of contact empowered to provide all the bank's services. Birmingham Bloomfield Bancshares, Inc. Market Makers 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,
					2015			2014			2014
ASSETS
		Cash and due from banks		$	17,428,891		$	15,593,072		$	21,468,556
		Federal funds sold			-			-			7,554,641
	Total cash and cash equivalents				17,428,891			15,593,072			29,023,197

		Securities available-for-sale			4,380,578			4,804,691			5,750,600
		Federal Home Loan Bank Stock			243,300			281,900			281,900
	Total securities				4,623,878			5,086,591			6,032,500

	Portfolio loans
		Consumer loans			2,055,653			2,104,262			2,220,995
		Mortgage loans			27,411,925			24,597,099			22,614,476
		Commercial leases			32,466,654			27,234,054			18,140,055
		Commercial loans			140,904,476			128,819,717			122,952,339
	Total loans				202,838,708			182,755,132			165,927,865
		Less: Allowance for loan loss			2,585,587			2,060,587			1,868,587
	Net loans				200,253,121			180,694,545			164,059,278

		Premises and equipment, net			1,033,857			1,097,025			1,177,896
		Bank owned life insurance			2,356,060			2,323,240			2,289,728
		Deferred Tax Asset			1,249,940			1,052,423			1,299,194
		Accrued interest receivable and other assets			1,376,604			1,176,587			1,192,496


	TOTAL ASSETS			$	228,322,351		$	207,023,483		$	205,074,289

LIABILITIES
	Deposits
		Noninterest-bearing		$	50,573,628		$	45,886,004		$	40,264,315
		Interest-bearing			154,390,799			140,140,219			144,832,427
	Total deposits				204,964,427			186,026,223			185,096,742

		Short term borrowings			-			-			-
		Accrued interest payable, taxes and other liabilities			2,427,274			1,069,698			912,604
	Total liabilities				207,391,701			187,095,922			186,009,346

SHAREHOLDERS' EQUITY
		Senior preferred stock, series D			4,621,000			4,621,000			4,621,000
		Common Stock, no par value			17,412,285			17,281,679			17,281,679
			Authorized - 9,000,000 shares, Issued and outstanding - 1,872,632, 1,857,128 and 1,857,128 shares respectively
		Accumulated other comprehensive income			32,064			35,634			38,190
		Additional paid in capital - share based payments			493,154			493,154			493,154
		Accumulated deficit			(1,627,853	)		(2,503,906	)		(3,369,080	)
	Total shareholders' equity				20,930,650			19,927,561			19,064,943

	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	228,322,351		$	207,023,483		$	205,074,289

Book value per share					$8.71			$8.24			$7.78


Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)

				For the three months ended				For the six months ended
				June 30,				June 30,
					2015		2014		2015		2014
Interest Income
		Interest and fees on loans
			Commercial loans	$	1,760,658	$	1,614,734	$	3,437,884	$	3,208,661
			Commercial leases		356,663		211,136		677,768		393,937
			Consumer loans		27,337		29,678		55,389		54,124
			Mortgage loans		155,400		143,521		298,512		285,421
			Home Equity loans		108,800		99,948		215,075		195,485
			Late charges and fees		6,857		5,189		33,173		9,310
	Total loan interest and fee income				2,415,715		2,104,206		4,717,801		4,146,938

		Interest bearing deposits			12,116		8,775		23,495		16,945
		Federal Funds Sold			-		6,814		62		6,814

		Interest on investment securities
			Taxable		22,485		26,322		45,906		45,499
			Tax-exempt		-		316		-		1,258
	Total investment income				22,485		26,638		45,906		46,757

	Total interest income				2,450,315		2,146,433		4,787,264		4,217,454

Interest Expense
		Interest on deposits			310,301		276,707		577,499		530,614
		Interest on borrowed funds			-		-		1		-
	Total interest expense				310,301		276,707		577,500		530,614

	Net Interest Income				2,140,014		1,869,726		4,209,764		3,686,840
		Provision for loan losses			180,000		-		525,000		-
	Net Interest Income After Provision for Loan Losses				1,960,014		1,869,726		3,684,764		3,686,840

Non-interest Income
		Service charge income			24,777		50,493		51,286		72,765
		Mortgage banking activities			25,132		21,466		53,348		51,059
		SBA loan sales			478,634		30,141		627,506		169,505
		Other income			33,161		32,151		65,683		61,291
	Total non-interest income				561,704		134,251		797,823		354,620

Non-interest Expense
		Salaries and employee benefits			894,635		811,890		1,765,691		1,634,323
		Occupancy expense			139,840		125,909		273,553		269,397
		Equipment expense			49,873		43,857		94,930		90,942
		Advertising			67,083		65,400		134,193		111,616
		Data Processing			80,130		80,811		149,608		152,381
		Professional fees			153,870		136,524		271,644		273,338
		Loan origination expense			51,228		52,205		96,242		98,591
		Regulatory Assessments			43,189		38,410		85,229		75,794
		Other expense			129,867		104,801		243,627		211,401
	Total non-interest expense				1,609,715		1,459,807		3,114,717		2,917,783

	Net Income Before Income Taxes				912,003		544,170		1,367,870		1,123,677
		Income tax expense			312,813		187,217		468,714		384,798
	Net Income				599,190		356,953		899,156		738,879
		Dividend on preferred stock			11,552		11,552		23,105		23,105
	Net Income applicable to common shareholders			$	587,638	$	345,401	$	876,051	$	715,774

Income per share - basic				$	0.31	$	0.19	$	0.47	$	0.39


Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)

			Year to Date
			June 30,				Change
			2015		2014		Amount		Percentage
INCOME STATEMENT
		Interest Income	$	4,787	$	4,217	$	570	13.5%
		Interest Expense		578		531		47	8.8%
	Net Interest Income			4,210		3,687		523	14.2%
		Provision for loan loss		525		-		525	0.0%
		Non-interest income		798		355		443	125.0%
		Non-interest expense		3,115		2,918		197	6.7%
	Net Income before Income Taxes			1,368		1,124		244	21.7%
		Income tax expense		469		385		84	21.8%
	Net Income			899		739		160	21.7%
		Dividend on preferred stock		23		23		-	0.0%
	Net Income - common shareholders		$	876	$	716	$	160	22.4%

	Income per share - basic & diluted		$	0.47	$	0.39	$	0.08	21.4%

BALANCE SHEET DATA
	Total assets			228,322		205,074		23,248	11.3%
	Average Assets			219,335		198,321		21,014	10.6%
	Total loans			202,839		165,928		36,911	22.2%
	Allowance for loan loss (ALLL)			2,586		1,869		717	38.4%
	Total deposits			204,964		185,097		19,868	10.7%
	Other borrowings			-		-		-	0.0%
	Shareholders' equity			20,931		19,065		1,866	9.8%

ASSET QUALITY
	Other real estate owned (OREO)			-		-		-	0.0%
	Net charge-offs			-		-		-	0.0%
	Non-accrual loans			2,237		192		2,045	1064.6%
(2) Non-performing assets (NPA)				2,237		192		2,045	1064.6%
	Non-accrual loans / total loans			1.10%		0.12%		0.99%	852.7%
	Allowance for loan loss / total loans			1.27%		1.13%		0.15%	13.2%

PERFORMANCE MEASUREMENTS
	Net interest margin (tax equivalent)			4.04%		4.05%		-0.01%	-0.2%
(1) Return on average assets (annualized)				0.83%		0.75%		0.08%	10.7%
(3) Return on average assets (annualized)				1.74%		1.14%		0.60%	52.6%
(1) Return on average common equity (annualized)				11.50%		10.63%		0.87%	8.2%
(3) Return on average common equity (annualized)				24.21%		16.16%		8.05%	49.8%
	Efficiency ratio			62.2%		72.2%		-10.00%	-13.8%
(3) Profit Margin				37.8%		27.8%		10.00%	36.0%
	Total loans / Total deposits			99.0%		89.6%		9.32%	10.4%
	Equity / Assets			9.17%		9.30%		-0.13%	-1.4%
	Tangible common equity / Total assets			7.14%		7.04%		0.10%	1.4%

	Book value per share		$	8.71	$	7.78	$	0.93	12.0%
	Stock price		$	9.05	$	6.50	$	2.55	39.2%
	Stock price / book value (%)			103.9%		83.6%		20.34%	24.3%
	Income per share - basic & diluted		$	0.47	$	0.39	$	0.08	21.4%
	Income per share - basic & diluted (LTM)		$	0.94	$	0.76	$	0.18	23.7%
	Price to earnings ratio (P/E) (year to date)			9.5x		8.3x		1.2x	14.7%
	Shares outstanding			1,872,632		1,857,128		15,504	0.8%
	Average shares outstanding			1,863,524		1,847,687		15,837	0.9%

(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
			June 30,		March 31,		December 31,		September 30,		June 30,
			2015		2015		2014		2014		2014
INCOME STATEMENT
		Interest Income	$	2,450	$	2,337	$	2,347	$	2,218	$	2,146
		Interest Expense		310		267		258		270		277
	Net Interest Income			2,140		2,070		2,089		1,949		1,870
		Provision for loan loss		180		345		167		25		-
		Non-interest income		562		236		174		197		134
		Non-interest expense		1,610		1,505		1,450		1,408		1,460
	Net Income before Income Taxes			912		456		645		712		544
		Income tax expense		313		156		221		248		187
	Net Income			599		300		424		464		357
		Dividend on preferred stock		12		12		12		12		12
	Net Income applicable to common shareholders		$	588	$	288	$	413	$	453	$	345

	Income per share - basic & diluted		$	0.31	$	0.16	$	0.22	$	0.24	$	0.19

BALANCE SHEET DATA
	Total assets			228,322		209,530		207,023		204,715		205,074
	Average Assets			223,792		214,806		208,493		206,489		204,198
	Total loans			202,839		189,588		182,755		170,553		165,928
	Allowance for loan loss (ALLL)			2,586		2,406		2,061		1,894		1,869
	Total deposits			204,964		187,964		186,026		184,323		185,097
	Other borrowings			-		-		-		-		-
	Shareholders' equity			20,931		20,263		19,928		19,511		19,065

ASSET QUALITY
	Other real estate owned (OREO)			-		-		-		-		-
	Net charge-offs			-		-		-		-		-
	Non-accrual loans			2,237		2,237		187		187		192
(2) Non-performing assets (NPA)				2,237		2,237		187		187		192
	Non-accrual loans / total loans			1.10%		1.18%		0.10%		0.11%		0.12%
	Allowance for loan loss / total loans			1.27%		1.27%		1.13%		1.11%		1.13%

PERFORMANCE MEASUREMENTS
	Net interest margin (tax equivalent)			4.00%		4.10%		4.17%		3.92%		3.95%
(1) Return on average assets (annualized)				1.07%		0.57%		0.81%		0.89%		0.70%
(3) Return on average assets (annualized)				1.96%		1.51%		1.55%		1.42%		1.07%
(1) Return on average common equity (annualized)				15.03%		7.83%		11.13%		12.55%		10.08%
(3) Return on average common equity (annualized)				27.39%		20.90%		21.30%		19.95%		15.37%
	Efficiency ratio			59.6%		65.3%		64.1%		65.6%		72.8%
(3) Profit Margin				40.4%		34.7%		35.9%		34.4%		27.2%
	Total loans / Total deposits			99.0%		100.9%		98.2%		92.5%		89.6%
	Equity / Assets			9.17%		9.67%		9.63%		9.53%		9.30%
	Tangible common equity / Total assets			7.14%		7.47%		7.39%		7.27%		7.04%

	Book value per share		$	8.71	$	8.40	$	8.24	$	8.02	$	7.78
	Stock price		$	9.05	$	8.40	$	7.75	$	7.05	$	6.50
	Stock price / book value (%)			103.9%		100.0%		94.0%		87.9%		83.6%
	Income per share - basic & diluted		$	0.31	$	0.16	$	0.22	$	0.24	$	0.19
	Shares outstanding			1,872,632		1,861,632		1,857,128		1,857,128		1,857,128
	Average shares outstanding			1,866,830		1,860,181		1,857,128		1,857,128		1,851,205