Birmingham Bloomfield Bancshares, Inc. Announces Record Earnings for Fiscal Year 2015
BIRMINGHAM , MI--(Marketwired - January 12, 2016) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and full year period ended December 31, 2015. The Company reported an increase in net income of 22.1% on growth in total revenue and improved operating fundamentals.
The Company reported net income of $542,000 or $0.29 per common share for the fourth quarter of 2015 compared to net income of $413,000 or $0.22 per common share for the same period of 2014. Net income for the twelve month period ended December 31, 2015 was $1,931,000 or $1.03 per common share compared to $1,581,000 or $0.85 per common share for the same period last year. The full year results represent record earnings for the Company and on a pre- tax, pre-provision basis, net income for 2015 increased 34.8% relative to 2014.
Chief Executive Officer, Rob Farr, issued the results and commented: "This was another strong year for the organization. We generated record profits, improved the core operations, delivered solid portfolio growth and addressed the SBLF investment without negatively impacting our shareholders. The full year results produced a pre-tax, pre-provision ROA of 1.57% and a pre- tax, pre-provision Return on Average Common Equity of 22.1%. Earnings per share were $1.03 and book value reached $9.28. It has been an exciting and productive year. We are very pleased with our performance and look forward to continuing to deliver superior value for our shareholders."
Results of Operation
The Company reported net interest income of $2.378 million for the fourth quarter of 2015, a 13.9% increase compared to the same quarter of 2014 and 2.4% increase from the third quarter of 2015. Net interest margin for the quarter was 3.99% compared to 4.12% for the most recent linked quarter. The margin compression was the result of a reduction in loan yields due to market pressure and modestly higher funding costs. Net interest income for the full year of 2015 was $8.911 million, an increase of 15.4% relative to the same period of 2014. The increase was the direct result of earning asset growth.
The Company provided $81,000 in provision expense during the quarter. Total provision expense for the year to date period ending December 31, 2015 was $606,000 and the allowance coverage ratio was 1.14%. The provision expense is a function of new loan volume and additional reserves required for an impaired loan. The gross amount of nonaccrual loans declined during the fourth quarter as the Company charged off $141,000 in balances. Total non-performing loans were 0.94% of total loans at December 31, 2015 compared to 1.06% for the third quarter of 2015.
Total non-interest income for the fourth quarter of 2015 was $333,000, compared to $174,000 for the same period of 2014. The increase was a function of additional SBA revenue. For the year to date period ending December 31, 2015 total non-interest income was $1,305,000, an increase of $580,000 or 80% relative to the prior period. The increase is primarily the result of additional income from the sale of SBA and mortgage loans in the secondary market.
Total non-interest expense for the fourth quarter of 2015 was $1.806 million, compared to $1.450 million in 2014. Year to date non-interest expense for 2015 was $6.613 million, an increase of 14.5% relative to the same period in 2014. The increase in expenses were the result of hiring additional personnel to support growth, investing in marketing efforts to expand our visibility in the community, costs associated with increased volume and investments in new technology.
Balance Sheet
Total assets as of December 31, 2015 were $244.2 million, an increase of $37.1 million from the prior year. Total portfolio loans reached $222.1 million at the end of the fourth quarter, an increase of $11.9 million on sequential basis from September and 21.6% from December 31, 2014. The growth is a function of favorable market conditions, an improved economic environment and diverse product options. Total deposits as of December 31, 2015 were $220.5 million, an increase of $8.5 million from the third quarter of 2015 and $34.4 million from December 31, 2014. The growth was the result of providing superior customer service, expanding our presence in the market and capturing a greater portion of existing relationships. 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)
December 31, December 31,
2015 2014
---------------- ----------------
ASSETS
Cash and due from banks $ 14,232,848 $ 15,593,072
Federal funds sold - -
---------------- ----------------
Total cash and cash equivalents 14,232,848 15,593,072
Securities available-for-sale 3,933,083 4,804,691
Federal Home Loan Bank Stock 243,300 281,900
---------------- ----------------
Total securities 4,176,383 5,086,591
Portfolio loans
Consumer loans 2,355,187 2,104,262
Mortgage loans 35,060,825 24,597,099
Commercial leases 35,940,633 27,234,054
Commercial loans 148,782,782 128,819,717
---------------- ----------------
Total loans 222,139,427 182,755,132
Less: Allowance for loan loss 2,525,350 2,060,587
---------------- ----------------
Net loans 219,614,077 180,694,545
Premises and equipment, net 996,183 1,097,025
Bank owned life insurance 2,389,018 2,323,240
Deferred Tax Asset 1,202,501 1,052,423
Accrued interest receivable and other
assets 1,592,630 1,176,587
---------------- ----------------
TOTAL ASSETS $ 244,203,640 $ 207,023,483
================ ================
LIABILITIES
Deposits
Noninterest-bearing $ 57,526,790 $ 45,886,004
Interest-bearing 162,960,444 140,140,219
------------------ ------------------
Total deposits 220,487,234 186,026,224
Other Borrowings 4,621,000 -
Accrued interest payable, taxes and
other liabilities 1,718,161 1,069,698
------------------ ------------------
Total liabilities 226,826,395 187,095,922
SHAREHOLDERS' EQUITY
Senior preferred stock, series D - 4,621,000
Common Stock, no par value 17,412,285 17,281,679
Authorized - 9,000,000 shares,
Issued and outstanding -
1,872,632 and 1,857,128 shares
respectively
Accumulated other comprehensive
income 23,808 35,634
Additional paid in capital - share
based payments 514,454 493,154
Accumulated deficit (573,302) (2,503,906)
------------------ ------------------
Total shareholders' equity 17,377,245 19,927,561
------------------ ------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 244,203,640 $ 207,023,483
================== ==================
Book value per share $9.28 $8.24
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months For the twelve months
ended ended
--------------------- ---------------------
December 31, December 31,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
Interest Income
Interest and fees on loans
Commercial loans $1,846,494 $1,701,146 $7,077,836 $6,548,241
Commercial leases 454,774 301,635 1,539,358 948,737
Consumer loans 33,684 33,132 121,197 118,612
Mortgage loans 223,520 147,062 713,995 570,958
Home Equity loans 117,906 110,556 443,018 414,813
Late charges and fees 5,971 14,260 115,906 29,461
---------- ---------- ---------- ----------
Total loan interest and fee 10,011,31
income 2,682,349 2,307,791 0 8,630,822
Interest bearing deposits 11,375 9,481 45,233 33,699
Federal Funds Sold - 4,156 62 19,085
Interest on investment
securities
Taxable 18,709 25,225 84,528 97,530
Tax-exempt - - - 1,258
---------- ---------- ---------- ----------
Total investment income 18,709 25,225 84,528 98,788
10,141,13
Total interest income 2,712,433 2,346,653 3 8,782,394
Interest Expense
Interest on deposits 329,497 257,787 1,225,859 1,057,997
Interest on borrowed funds 4,505 17 4,506 17
---------- ---------- ---------- ----------
Total interest expense 334,002 257,804 1,230,365 1,058,014
---------- ---------- ---------- ----------
Net Interest Income 2,378,431 2,088,849 8,910,768 7,724,380
Provision for loan losses 80,809 167,000 605,809 192,000
---------- ---------- ---------- ----------
Net Interest Income After
Provision for Loan Losses 2,297,622 1,921,849 8,304,959 7,532,380
Non-interest Income
Service charge income 26,060 24,350 102,821 121,675
Mortgage banking activities 15,111 15,284 109,902 83,639
SBA loan sales 259,706 99,443 963,248 392,732
Other income 31,793 34,451 128,781 126,817
---------- ---------- ---------- ----------
Total non-interest income 332,670 173,528 1,304,752 724,863
Non-interest Expense
Salaries and employee
benefits 982,424 798,808 3,653,625 3,205,502
Occupancy expense 137,303 127,266 537,688 521,595
Equipment expense 65,202 41,823 208,456 171,901
Advertising 89,298 55,139 269,263 213,113
Data Processing 98,260 64,363 343,545 276,526
Professional fees 169,403 168,100 645,768 589,382
Loan origination expense 48,440 26,411 227,201 189,302
Regulatory Assessments 56,385 39,053 203,765 153,018
Other expense 159,214 129,361 523,847 455,876
---------- ---------- ---------- ----------
Total non-interest expense 1,805,929 1,450,324 6,613,158 5,776,215
Net Income Before Income Taxes 824,363 645,053 2,996,553 2,481,028
Income tax expense 271,741 220,888 1,020,893 853,870
---------- ---------- ---------- ----------
Net Income 552,622 424,165 1,975,660 1,627,158
Dividend on preferred stock 10,397 11,552 45,055 46,210
---------- ---------- ---------- ----------
Net Income applicable to
common shareholders $ 542,225 $ 412,613 $1,930,605 $1,580,948
========== ========== ========== ==========
Income per share - basic $ 0.29 $ 0.22 $ 1.03 $ 0.85
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
---------------------------------------------
December 31, Change
----------------------- ---------------------
2015 2014 Amount Percentage
----------- ----------- ---------- ----------
INCOME STATEMENT
Interest Income $ 10,141 $ 8,782 $ 1,359 15.5%
Interest Expense 1,230 1,058 172 16.3%
----------- ----------- ----------
Net Interest Income 8,911 7,724 1,186 15.4%
Provision for loan loss 606 192 414 215.5%
Non-interest income 1,305 725 580 80.0%
Non-interest expense 6,613 5,776 837 14.5%
----------- ----------- ----------
Net Income before Income
Taxes 2,997 2,481 516 20.8%
Income tax expense 1,021 854 167 19.6%
----------- ----------- ----------
Net Income 1,976 1,627 349 21.4%
Dividend on preferred
stock 45 46 (1) -2.5%
----------- ----------- ----------
Net Income - common
shareholders $ 1,931 $ 1,581 $ 350 22.1%
=========== =========== ==========
Income per share - basic &
diluted $ 1.03 $ 0.85 $ 0.18 21.1%
=========== =========== ==========
BALANCE SHEET DATA
Total assets 244,204 207,023 37,180 18.0%
Average Assets 229,818 202,943 26,874 13.2%
Total loans 222,139 182,755 39,384 21.6%
Allowance for loan loss
(ALLL) 2,525 2,061 465 22.6%
Total deposits 220,487 186,026 34,461 18.5%
Other borrowings 4,621 - 4,621 0.0%
Shareholders' equity 17,377 19,928 (2,550) -12.8%
ASSET QUALITY
Other real estate owned
(OREO) - - - 0.0%
Net charge-offs 141 - 141 0.0%
Non-accrual loans 2,083 187 1,896 1015.0%
(2)Non-performing assets (NPA) 2,083 187 1,896 1015.0%
Non-accrual loans / total
loans 0.94% 0.10% 0.84% 817.3%
Allowance for loan loss /
total loans 1.14% 1.13% 0.01% 0.8%
PERFORMANCE MEASUREMENTS
Net interest margin (tax
equivalent) 4.05% 4.06% -0.01% -0.2%
(1)Return on average assets
(annualized) 0.86% 0.80% 0.06% 7.5%
(3)Return on average assets
(annualized) 1.57% 1.32% 0.25% 18.9%
(1)Return on average common
equity (annualized) 12.10% 11.25% 0.85% 7.6%
(3)Return on average common
equity (annualized) 22.07% 18.48% 3.59% 19.4%
Efficiency ratio 64.7% 68.4% -3.66% -5.4%
Total loans / Total
deposits 100.7% 98.2% 2.51% 2.6%
Equity / Assets 7.12% 9.63% -2.51% -26.1%
Tangible common equity /
Total assets 7.12% 7.39% -0.28% -3.8%
Book value per share $ 9.28 $ 8.24 $ 1.04 12.6%
Stock price $ 8.65 $ 7.75 $ 0.90 11.6%
Stock price / book value
(%) 93.2% 94.0% -0.81% -0.9%
Income per share - basic &
diluted $ 1.03 $ 0.85 $ 0.18 21.1%
Price to earnings ratio
(P/E) (year to date) 8.4x 9.1x -0.7x -7.8%
Shares outstanding 1,872,632 1,857,128 15,504 0.8%
Average shares outstanding 1,868,115 1,852,446 15,669 0.8%
/EINPresswire.com/ --
(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, December
31, 2015 30, 2015 2015 2015 31, 2014
INCOME STATEMENT
Interest Income $ 2,712 $ 2,641 $ 2,450 $ 2,337 $ 2,347
Interest Expense 334 319 310 267 258
---------- ---------- ---------- ---------- ----------
Net Interest
Income 2,378 2,323 2,140 2,070 2,089
Provision for
loan loss 81 - 180 345 167
Non-interest
income 333 174 562 236 174
Non-interest
expense 1,806 1,693 1,610 1,505 1,450
---------- ---------- ---------- ---------- ----------
Net Income before
Income Taxes 824 804 912 456 645
Income tax
expense 272 280 313 156 221
---------- ---------- ---------- ---------- ----------
Net Income 553 524 599 300 424
Dividend on
preferred stock 10 12 12 12 12
---------- ---------- ---------- ---------- ----------
Net Income
applicable to
common
shareholders $ 542 $ 512 $ 588 $ 288 $ 413
========== ========== ========== ========== ==========
Income per share -
basic & diluted $ 0.29 $ 0.27 $ 0.31 $ 0.16 $ 0.22
========== ========== ========== ========== ==========
BALANCE SHEET DATA
Total assets 244,204 235,887 228,322 209,530 207,023
Average Assets 246,503 233,756 223,792 214,806 208,493
Total loans 222,139 210,199 202,839 189,588 182,755
Allowance for loan
loss (ALLL) 2,525 2,586 2,586 2,406 2,061
Total deposits 220,487 212,017 204,964 187,964 186,026
Other borrowings 4,621 - - - -
Shareholders'
equity 17,377 21,459 20,931 20,263 19,928
ASSET QUALITY
Other real estate
owned (OREO) - - - - -
Net charge-offs 141 - - - -
Non-accrual loans 2,083 2,237 2,237 2,237 187
(2)Non-performing
assets (NPA) 2,083 2,237 2,237 2,237 187
Non-accrual loans
/ total loans 0.94% 1.06% 1.10% 1.18% 0.10%
Allowance for loan
loss / total
loans 1.14% 1.23% 1.27% 1.27% 1.13%
PERFORMANCE
MEASUREMENTS
Net interest
margin (tax
equivalent) 3.99% 4.12% 4.00% 4.10% 4.17%
(1)Return on average
assets
(annualized) 0.89% 0.89% 1.07% 0.57% 0.81%
(3)Return on average
assets
(annualized) 1.46% 1.37% 1.96% 1.51% 1.55%
(1)Return on average
common equity
(annualized) 12.79% 12.52% 15.03% 7.83% 11.13%
(3)Return on average
common equity
(annualized) 20.96% 19.22% 27.39% 20.90% 21.30%
Efficiency ratio 66.6% 67.8% 59.6% 65.3% 64.1%
Total loans /
Total deposits 100.7% 99.1% 99.0% 100.9% 98.2%
Equity / Assets 7.12% 9.10% 9.17% 9.67% 9.63%
Tangible common
equity / Total
assets 7.12% 7.14% 7.14% 7.47% 7.39%
Book value per
share $ 9.28 $ 8.99 $ 8.71 $ 8.40 $ 8.24
Stock price $ 8.65 $ 8.50 $ 9.05 $ 8.40 $ 7.75
Stock price / book
value (%) 93.2% 94.5% 103.9% 100.0% 94.0%
Income per share -
basic & diluted $ 0.29 $ 0.27 $ 0.31 $ 0.16 $ 0.22
Shares outstanding 1,872,632 1,872,632 1,872,632 1,861,632 1,857,128
Average shares
outstanding 1,872,632 1,872,632 1,866,830 1,860,181 1,857,128
(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 E. Farr
Chief Executive Officer
Birmingham Bloomfield Bancshares, Inc.
248-283-6430
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
