Birmingham Bloomfield Bancshares, Inc. Announces Results for Period Ended September 30, 2015
BIRMINGHAM , MI--(Marketwired - October 20, 2015) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and nine month periods ended September 30, 2015.
The Company reported net income of $512,000 or $0.27 per common share for the third quarter of 2015 compared to net income of $453,000 or $0.24 per common share for the same period of 2014. Net income for the nine month period ended September 30, 2015 was $1,388,000 or $0.74 per common share compared to $1,168,000 or $0.63 per common share for the same period last year. The results were a function of an increase in core earnings, improved operating fundamentals and strong earning asset growth.
Chief Executive Officer, Rob Farr, issued the results and commented: "The performance is a product of our ability to execute our strategic plan and deliver on our core mission of providing valuable solutions to meet the needs of our customers. This has resulted in continued improvement in our financial performance, including substantial growth in the loan portfolio. Net income for the first nine months of 2015 represented record earnings for the Company and produced a pre-tax, pre-provision ROA of 1.61%. We have also been able to improve the efficiency of our operation and introduce new technology to enhance the user experience. We recently released mobile banking for both retail and business customers. This new service will helps us meet the demands of our customers and make banking more convenient. We are always looking for opportunities to provide the best service to our customers and generate lasting value for our shareholders."
Results of Operation
The Company reported net interest income of $2.323 million for the third quarter of 2015, a 19.2% increase compared to the same quarter of 2014 and 8.6% increase from the second quarter of 2015. Net interest margin for the quarter was 4.12% compared to 4.00% for the most recent linked quarter. The margin expansion was the result of additional fee income generated on the loan portfolio. Net interest income for the first nine months of 2015 was $6.532 million, an increase of 15.9% relative to the same period of 2014. The increase was the direct result of earning asset growth.
The Company did not provide any provision expense during the quarter. Total provision expense for the year to date period ending September 30, 2015 was $525,000 and the allowance coverage ratio was 1.23%. There have been no net charge offs during the period and the amount of nonaccrual loans remained flat.
Total non-interest income for the third quarter of 2015 was $174,000, compared to $197,000 for the same period of 2014. The modest decline is a function of reduced SBA loan volume during the quarter. For the year to date period ending September 30, 2015 total non-interest income was $972,000, an increase of $421,000 or 76.3% 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 third quarter of 2015 was $1.693 million, compared to $1.408 million in 2014. Year to date non-interest expense for 2015 was $4.807 million, an increase of 11.1% relative to the same period in 2014. The increase in expenses was the result of hiring additional personnel to support growth, investment in new technology for product delivery and costs associated with increased volume.
Balance Sheet
Total assets as of September 30, 2015 were $235.9 million, an increase of $31.2 million from the prior year and 13.9% from December 31, 2014. Total portfolio loans reached $210.2 million at the end of the third quarter, an increase of $7.4 million on sequential basis from June and 15.0% from December 31, 2014. The growth is a function of improved economic conditions, increased demand in the market and proactive business development efforts. The asset quality of the Company remains solid. There have been no charge offs and total non-performing loans remained flat during the quarter. Total deposits as of September 30, 2015 were $212.0 million, an increase of $7.0 million from the second quarter of 2015 and $26.0 million from December 31, 2014. The growth was the result of expanding existing relationships, improved product options and greater visibility in primary market area. 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)
September 30, December 31, September 30,
2015 2014 2014
------------------- ----------------- -----------------
ASSETS
-------------------
Cash and due
from banks $ 17,725,835 $ 15,593,072 $ 14,733,906
Federal funds
sold - - 9,705,254
----------------- ----------------- -----------------
Total cash and
cash equivalents 17,725,835 15,593,072 24,439,160
Securities
available-for-
sale 4,270,543 4,804,691 5,639,151
Federal Home
Loan Bank
Stock 243,300 281,900 281,900
----------------- ----------------- -----------------
Total securities 4,513,843 5,086,591 5,921,051
Portfolio loans
Consumer loans 2,399,146 2,104,262 2,167,569
Mortgage loans 31,142,666 24,597,099 25,224,271
Commercial
leases 36,079,690 27,234,054 22,281,188
Commercial
loans 140,577,018 128,819,717 120,879,481
----------------- ----------------- -----------------
Total loans 210,198,520 182,755,132 170,552,509
Less: Allowance
for loan loss 2,585,587 2,060,587 1,893,587
----------------- ----------------- -----------------
Net loans 207,612,933 180,694,545 168,658,922
Premises and
equipment, net 1,030,550 1,097,025 1,142,424
Bank owned life
insurance 2,372,527 2,323,240 2,306,461
Deferred Tax
Asset 1,272,424 1,052,423 1,054,254
Accrued
interest
receivable and
other assets 1,358,858 1,176,587 1,192,272
----------------- ----------------- -----------------
TOTAL ASSETS $ 235,886,970 $ 207,023,483 $ 204,714,544
----------------- ----------------- -----------------
LIABILITIES
-----------------------
Deposits
Noninterest-bearing $ 54,407,723 $ 45,886,004 $ 43,891,012
Interest-bearing 157,608,784 140,140,220 140,431,650
--------------- ---------------- ----------------
Total deposits 212,016,507 186,026,224 184,322,662
Short term
borrowings - - -
Accrued interest
payable, taxes and
other liabilities 2,411,731 1,069,698 880,675
--------------- ---------------- ----------------
Total liabilities 214,428,237 187,095,922 185,203,337
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 37,169 35,634 31,892
Additional paid in
capital - share
based payments 503,804 493,154 493,154
Accumulated deficit (1,115,525) (2,503,906) (2,916,518)
--------------- ---------------- ----------------
Total shareholders'
equity 21,458,733 19,927,561 19,511,207
--------------- ---------------- ----------------
TOTAL LIABILITIES AND $ $ $
SHAREHOLDERS' EQUITY 235,886,970 207,023,483 204,714,544
--------------- ---------------- ----------------
Book value per share $8.99 $8.24 $8.02
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
---------------------------- ---------------------------
2015 2014 2015 2014
------------- ------------- ------------- ------------
Interest Income
-----------------
Interest and
fees on loans
Commercial
loans $ 1,793,458 $ 1,638,434 $ 5,231,342 $ 4,847,095
Commercial
leases 406,816 253,165 1,084,584 647,102
Consumer
loans 32,124 31,356 87,513 85,480
Mortgage
loans 191,963 138,475 490,475 423,896
Home Equity
loans 110,037 108,772 325,112 304,257
Late charges
and fees 76,762 5,891 109,935 15,201
------------- ------------- ------------- ------------
Total loan
interest and
fee income 2,611,160 2,176,093 7,328,961 6,323,031
Interest
bearing
deposits 10,363 7,273 33,858 24,218
Federal Funds
Sold - 8,115 62 14,929
Interest on
investment
securities
Taxable 19,913 26,806 65,819 72,305
Tax-exempt - - - 1,258
------------- ------------- ------------- ------------
Total
investment
income 19,913 26,806 65,819 73,563
Total interest
income 2,641,436 2,218,287 7,428,700 6,435,741
Interest Expense
-----------------
Interest on
deposits 318,863 269,596 896,362 800,210
Interest on
borrowed
funds - - 1 -
------------- ------------- ------------- ------------
Total interest
expense 318,863 269,596 896,363 800,210
------------- ------------- ------------- ------------
Net Interest
Income 2,322,573 1,948,691 6,532,337 5,635,531
Provision for
loan losses - 25,000 525,000 25,000
------------- ------------- ------------- ------------
Net Interest
Income After
Provision for
Loan Losses 2,322,573 1,923,691 6,007,337 5,610,531
Non-interest
Income
-----------------
Service
charge
income 25,475 24,560 76,761 97,325
Mortgage
banking
activities 41,443 17,296 94,791 68,355
SBA loan
sales 76,036 123,784 703,542 293,289
Other income 31,305 31,075 96,988 92,366
------------- ------------- ------------- ------------
Total non-
interest
income 174,259 196,715 972,082 551,335
Non-interest
Expense
-----------------
Salaries and
employee
benefits 905,510 772,371 2,671,201 2,406,694
Occupancy
expense 126,832 124,932 400,385 394,329
Equipment
expense 48,324 39,136 143,254 130,078
Advertising 45,772 46,358 179,965 157,974
Data
Processing 95,677 59,782 245,285 212,163
Professional
fees 204,721 147,944 476,365 421,282
Loan
origination
expense 82,519 64,300 178,761 162,891
Regulatory
Assessments 62,151 38,171 147,380 113,965
Other expense 121,003 115,114 364,633 326,515
------------- ------------- ------------- ------------
Total non-
interest
expense 1,692,509 1,408,108 4,807,229 4,325,891
Net Income
Before Income
Taxes 804,323 712,298 2,172,191 1,835,975
Income tax
expense 280,438 248,184 749,152 632,982
------------- ------------- ------------- ------------
Net Income 523,885 464,114 1,423,039 1,202,993
Dividend on
preferred
stock 11,553 11,553 34,658 34,658
------------- ------------- ------------- ------------
Net Income
applicable to
common
shareholders $ 512,332 $ 452,561 $ 1,388,381 $ 1,168,335
------------- ------------- ------------- ------------
Income per share
- basic $ 0.27 $ 0.24 $ 0.74 $ 0.63
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
------------------------------------------------------
September 30, Change
---------------------------- ----------------------
Percentage
2015 2014 Amount
------------- ------------- ---------- ----------
INCOME STATEMENT
----------------------
Interest Income $ 7,429 $ 6,436 $ 993 15.4%
Interest Expense 896 800 96 12.0%
------------- ------------- ----------
Net Interest Income 6,532 5,636 897 15.9%
Provision for loan
loss 525 25 500 2000.0%
Non-interest
income 972 551 421 76.3%
Non-interest
expense 4,807 4,326 481 11.1%
------------- ------------- ----------
Net Income before
Income Taxes 2,172 1,836 336 18.3%
Income tax expense 749 633 116 18.4%
------------- ------------- ----------
Net Income 1,423 1,203 220 18.3%
Dividend on
preferred stock 35 35 - 0.0%
------------- ------------- ----------
Net Income - common
shareholders $ 1,388 $ 1,168 $ 220 18.8%
------------- ------------- ----------
Income per share -
basic & diluted $ 0.74 $ 0.63 $ 0.11 17.8%
------------- ------------- ----------
BALANCE SHEET DATA
----------------------
Total assets 235,887 204,715 31,172 15.2%
Average Assets 224,195 201,061 23,134 11.5%
Total loans 210,199 170,553 39,646 23.2%
Allowance for loan
loss (ALLL) 2,586 1,894 692 36.5%
Total deposits 212,017 184,323 27,694 15.0%
Other borrowings - - - 0.0%
Shareholders' equity 21,459 19,511 1,948 10.0%
ASSET QUALITY
----------------------
Other real estate
owned (OREO) - - - 0.0%
Net charge-offs - - - 0.0%
Non-accrual loans 2,237 187 2,050 1097.3%
(2) Non-performing
assets (NPA) 2,237 187 2,050 1097.3%
Non-accrual loans /
total loans 1.06% 0.11% 0.95% 871.5%
Allowance for loan
loss / total loans 1.23% 1.11% 0.12% 10.8%
PERFORMANCE
MEASUREMENTS
----------------------
Net interest margin
(tax equivalent) 4.07% 4.02% 0.05% 1.2%
(1) Return on
average assets
(annualized) 0.85% 0.80% 0.05% 6.3%
(3) Return on
average assets
(annualized) 1.61% 1.24% 0.37% 29.8%
(1) Return on
average common
equity (annualized) 11.86% 11.30% 0.56% 5.0%
(3) Return on
average common
equity (annualized) 22.47% 17.47% 5.00% 28.6%
Efficiency ratio 64.1% 69.9% -5.86% -8.4%
Total loans / Total
deposits 99.1% 92.5% 6.61% 7.1%
Equity / Assets 9.10% 9.53% -0.43% -4.6%
Tangible common
equity / Total
assets 7.14% 7.27% -0.14% -1.9%
Book value per share $ 8.99 $ 8.02 $ 0.97 12.1%
Stock price $ 8.50 $ 7.05 $ 1.45 20.6%
Stock price / book
value (%) 94.5% 87.9% 6.61% 7.5%
Income per share -
basic & diluted $ 0.74 $ 0.63 $ 0.11 17.8%
Income per share -
basic & diluted
(LTM) $ 0.97 $ 0.86 $ 0.11 12.8%
Price to earnings
ratio (P/E) (year
to date) 8.5x 8.4x 0.2x 2.3%
Shares outstanding 1,872,632 1,857,128 15,504 0.8%
Average shares
outstanding 1,866,593 1,850,868 15,725 0.8%
- Amount is computed on net income before preferred dividends.
- Non-performing assets includes non-accrual loans and other real estate owned.
- 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,
September June 30, 2015 December September
30, 2015 2015 31, 2014 30, 2014
------------ ----------- ----------- ----------- -----------
INCOME STATEMENT
----------------
Interest
Income $ 2,641 $ 2,450 $ 2,337 $ 2,347 $ 2,218
Interest
Expense 319 310 267 258 270
----------- ----------- ----------- ----------- -----------
Net Interest
Income 2,323 2,140 2,070 2,089 1,949
Provision
for loan
loss - 180 345 167 25
Non-interest
income 174 562 236 174 197
Non-interest
expense 1,693 1,610 1,505 1,450 1,408
----------- ----------- ----------- ----------- -----------
Net Income
before Income
Taxes 804 912 456 645 712
Income tax
expense 280 313 156 221 248
----------- ----------- ----------- ----------- -----------
Net Income 524 599 300 424 464
Dividend on
preferred
stock 12 12 12 12 12
----------- ----------- ----------- ----------- -----------
Net Income
applicable to
common
shareholders $ 512 $ 588 $ 288 $ 413 $ 453
----------- ----------- ----------- ----------- -----------
Income per
share - basic
& diluted $ 0.27 $ 0.31 $ 0.16 $ 0.22 $ 0.24
----------- ----------- ----------- ----------- -----------
BALANCE SHEET
DATA
----------------
Total assets 235,887 228,322 209,530 207,023 204,715
Average Assets 233,756 223,792 214,806 208,493 206,489
Total loans 210,199 202,839 189,588 182,755 170,553
Allowance for
loan loss
(ALLL) 2,586 2,586 2,406 2,061 1,894
Total deposits 212,017 204,964 187,964 186,026 184,323
Other
borrowings - - - - -
Shareholders'
equity 21,459 20,931 20,263 19,928 19,511
ASSET QUALITY
----------------
Other real
estate owned
(OREO) - - - - -
Net charge-
offs - - - - -
Non-accrual
loans 2,237 2,237 2,237 187 187
(2) Non-
performing
assets (NPA) 2,237 2,237 2,237 187 187
Non-accrual
loans / total
loans 1.06% 1.10% 1.18% 0.10% 0.11%
Allowance for
loan loss /
total loans 1.23% 1.27% 1.27% 1.13% 1.11%
PERFORMANCE
MEASUREMENTS
----------------
Net interest
margin (tax
equivalent) 4.12% 4.00% 4.10% 4.17% 3.92%
(1) Return on
average
assets
(annualized) 0.89% 1.07% 0.57% 0.81% 0.89%
(3) Return on
average
assets
(annualized) 1.37% 1.96% 1.51% 1.55% 1.42%
(1) Return on
average
common equity
(annualized) 12.52% 15.03% 7.83% 11.13% 12.55%
(3) Return on
average
common equity
(annualized) 19.22% 27.39% 20.90% 21.30% 19.95%
Efficiency
ratio 67.8% 59.6% 65.3% 64.1% 65.6%
Total loans /
Total
deposits 99.1% 99.0% 100.9% 98.2% 92.5%
Equity /
Assets 9.10% 9.17% 9.67% 9.63% 9.53%
Tangible
common equity
/ Total
assets 7.14% 7.14% 7.47% 7.39% 7.27%
Book value per
share $ 8.99 $ 8.71 $ 8.40 $ 8.24 $ 8.02
Stock price $ 8.50 $ 9.05 $ 8.40 $ 7.75 $ 7.05
Stock price /
book value
(%) 94.5% 103.9% 100.0% 94.0% 87.9%
Income per
share - basic
& diluted $ 0.27 $ 0.31 $ 0.16 $ 0.22 $ 0.24
Shares
outstanding 1,872,632 1,872,632 1,861,632 1,857,128 1,857,128
Average shares
outstanding 1,872,632 1,866,830 1,860,181 1,857,128 1,857,128
- Amount is computed on net income before preferred dividends.
- Non-performing assets includes non-accrual loans and other real estate owned.
- Amount is computed on pre-tax, pre-provision earnings before preferred dividends
/EINPresswire.com/ -- Contact:
Robert E. Farr
Chief Executive Officer
Birmingham Bloomfield Bancshares, Inc.
248-283-6430
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