Birmingham Bloomfield Bancshares, Inc. Announces results for period ended September 30, 2016

/EINPresswire.com/ -- BIRMINGHAM, MI--(Marketwired - October 18, 2016) - 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, 2016.

The Company reported net income of $618,000 or $0.33 per common share for the third quarter of 2016 compared to net income of $512,000 or $0.27 per common share for the same period of 2015. Net income for the nine month period ended September 30, 2016 was $1,180,000 or $0.63 per common share compared to $1,388,000 or $0.74 per common share for the same period last year.

Chief Executive Officer, Rob Farr, issued the results and commented: "This was a very strong quarter for the bank and our core operations continue to improve. We reported a pre-tax, pre-provision ROA of 1.31% and experienced an increase of 28% in total assets. Loan growth remains robust, increasing $36 million over the past year and driving the expansion in our total revenue. On an adjusted basis, excluding one-time costs associated with the pending merger transaction, year to date earnings represent a record performance for the Bank."

Results of Operation

The Company reported net interest income of $2.666 million for the third quarter of 2016, a 14.8% increase compared to the same quarter of 2015 and 7.1% increase from the second quarter of 2016. Net interest margin for the quarter was 3.95% compared to 3.82% 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 2016 was $7.554 million, an increase of 15.6% relative to the same period of 2015. The increase was the direct result of earning asset growth.

The Company provided $30,000 in provision expense during the quarter. Total provision expense for the year to date period ending September 30, 2016 was $845,000, compared to $525,000 for the same period of 2015. The increase is a function of charge off activity and net loan growth. A total of $833,000 in charge offs was recorded as of September 30, 2016; isolated to one problem loan that has been resolved. Total non-performing loans have significantly declined and represent 0.12% of the total portfolio at quarter end.

Total non-interest income for the third quarter of 2016 was $451,000, compared to $174,000 for the same period of 2015. The increase is a function of additional SBA loan sales during the quarter. For the year to date period ending September 30, 2016 total non-interest income was $891,000, a decline of $81,000 relative to the prior period. The decrease is directly related to the reduction in SBA loan volume.

Total non-interest expense for the third quarter of 2016 was $2.139 million, compared to $1.692 million in 2015. Year to date non-interest expense for 2016 was $5.793 million, an increase of $986,000 relative to the same period in 2015. The increase is related to the Company's growth, including costs associated with supporting additional volume and investments in new technology. Professional fees experienced a significant increase primarily due to one-time expenses connected to the merger.

Balance Sheet

Total assets as of September 30, 2016 were $301.6 million, an increase of $65.7 million from the prior year and 23.5% from December 31, 2015. Total portfolio loans reached $246.1 million at the end of the third quarter, an increase of $7.9 million on a sequential basis from June and 10.8% from December 31, 2015. 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 continues to improve and non-performing loans have declined $1.7 million in 2016. Total deposits as of September 30, 2016 were $274.9 million, an increase of $25.5 million from the second quarter of 2016 and 24.7% from December 31, 2015. The growth was the result of expanding existing relationships, greater visibility in our primary market area and success in executing core deposit initiatives targeting specific deposit 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)


				September 30,		December 31,		September 30,
				2016		2015		2015
ASSETS
		Cash and due from banks		$	49,262,508	$	14,232,848	$	17,725,835
		Federal funds sold			-		-		-
	Total cash and cash equivalents				49,262,508		14,232,848		17,725,835

		Securities available-for-sale			2,620,629		3,933,083		4,270,543
		Federal Home Loan Bank Stock			251,900		243,300		243,300
	Total securities				2,872,529		4,176,383		4,513,843

	Portfolio loans
		Consumer loans			3,482,311		2,355,187		2,399,146
		Mortgage loans			38,613,952		35,060,825		31,142,666
		Commercial leases			36,552,168		35,940,633		36,079,690
		Commercial loans			167,423,151		148,782,782		140,577,018
	Total loans				246,071,582		222,139,427		210,198,520
		Less: Allowance for loan loss			2,537,698		2,525,350		2,585,587
	Net loans				243,533,884		219,614,077		207,612,933

		Premises and equipment, net			909,143		996,183		1,030,550
		Bank owned life insurance			2,437,426		2,389,018		2,372,527
		Deferred Tax Asset			1,126,998		1,202,501		1,272,424
		Accrued interest receivable and other assets			1,475,043		1,592,630		1,358,858

	TOTAL ASSETS			$	301,617,531	$	244,203,640	$	235,886,970



LIABILITIES
	Deposits
		Noninterest-bearing		$	65,153,314	$	57,526,790	$	54,407,723
		Interest-bearing			209,716,133		162,960,444		157,608,784
	Total deposits				274,869,447		220,487,234		212,016,507

		Other Borrowings			5,684,678		4,621,000		-
		Accrued interest payable, taxes and other liabilities			2,338,650		1,718,161		2,411,731
	Total liabilities				282,892,775		226,826,395		214,428,237

SHAREHOLDERS' EQUITY
		Senior preferred stock, series D			-		-		4,621,000
		Common Stock, no par value			17,541,404		17,412,285		17,412,285
			Authorized -- 9,000,000 shares, Issued and outstanding -- 1,887,610
			1,872,632 and 1,872,632 shares respectively
		Accumulated other comprehensive income			29,913		23,808		37,169
		Additional paid in capital -- share based payments			546,404		514,454		503,804
		Accumulated deficit			607,035		(573,302)		(1,115,525)
	Total shareholders' equity				18,724,756		17,377,245		21,458,733

	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	301,617,531	$	244,203,640	$	235,886,970

Book value per share				$	9.92	$	9.28	$	8.99


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

				For the three months ended				For the nine months ended
				September 30,				September 30,
				2016		2015		2016		2015
Interest Income
		Interest and fees on loans
			Commercial loans	$	2,055,590	$	1,793,458	$	5,877,868	$	5,231,342
			Commercial leases		456,645		406,816		1,344,013		1,084,584
			Consumer loans		43,601		32,124		114,407		87,513
			Mortgage loans		238,091		191,963		720,573		490,475
			Home Equity loans		154,335		110,037		446,772		325,112
			Late charges and fees		73,044		76,762		99,588		109,935
	Total loan interest and fee income				3,021,306		2,611,160		8,603,221		7,328,961

		Interest bearing deposits			29,628		10,363		85,779		33,858
		Federal Funds Sold			-		-		-		62

		Interest on investment securities
			Taxable		14,109		19,913		47,385		65,819
			Tax-exempt		-		-		-		-
	Total investment income				14,109		19,913		47,385		65,819

	Total interest income				3,065,043		2,641,436		8,736,385		7,428,700

Interest Expense
		Interest on deposits			343,646		318,863		1,036,794		896,362
		Interest on borrowed funds			55,197		-		145,655		1
	Total interest expense				398,843		318,863		1,182,449		896,363

	Net Interest Income				2,666,200		2,322,573		7,553,936		6,532,337
		Provision for loan losses			30,000		-		845,000		525,000
	Net Interest Income After Provision for Loan Losses				2,636,200		2,322,573		6,708,936		6,007,337

Non-interest Income
		Service charge income			28,855		25,475		79,240		76,761
		Mortgage banking activities			45,216		41,443		97,546		94,791
		SBA loan sales			343,927		76,036		614,309		703,542
		Other income			33,342		31,305		100,351		96,988
	Total non-interest income				451,340		174,259		891,446		972,082

Non-interest Expense
		Salaries and employee benefits			1,046,171		905,510		3,079,910		2,671,201
		Occupancy expense			124,643		126,832		386,458		400,385
		Equipment expense			46,425		48,324		126,090		143,254
		Advertising			56,085		45,772		203,523		179,965
		Data Processing			100,356		95,677		302,859		245,285
		Professional fees			461,256		204,721		944,326		476,365
		Loan origination expense			103,497		82,519		209,989		178,761
		Regulatory Assessments			59,735		62,151		176,155		147,380
		Other expense			140,544		121,003		364,001		364,633
	Total non-interest expense				2,138,712		1,692,509		5,793,311		4,807,229

	Net Income Before Income Taxes				948,828		804,323		1,807,071		2,172,191
		Income tax expense			330,836		280,438		626,735		749,152
	Net Income				617,992		523,885		1,180,336		1,423,039
		Dividend on preferred stock			-		11,553		-		34,658
	Net Income applicable to common shareholders			$	617,992	$	512,332	$	1,180,336	$	1,388,381

Income per share - basic & diluted				$	0.33	$	0.27	$	0.63	$	0.74


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

			Year to Date
			September 30,						Change
			2016			2015			Amount			Percentage
INCOME STATEMENT
		Interest Income	$	8,736		$	7,429		$	1,308		17.6	%
		Interest Expense		1,182			896			286		31.9	%
	Net Interest Income			7,554			6,532			1,022		15.6	%
		Provision for loan loss		845			525			320		61.0	%
		Non-interest income		891			972			(81	)	-8.3	%
		Non-interest expense		5,793			4,807			986		20.5	%
	Net Income before Income Taxes			1,807			2,172			(365	)	-16.8	%
		Income tax expense		627			749			(122	)	-16.3	%
	Net Income			1,180			1,423			(243	)	-17.1	%
		Dividend on preferred stock		-			35			(35	)	-100.0	%
	Net Income - common shareholders		$	1,180		$	1,388		$	(208	)	-15.0	%

	Income per share - basic & diluted		$	0.63		$	0.74		$	(0.12	)	-15.7	%

BALANCE SHEET DATA
	Total assets			301,618			235,887			65,731		27.9	%
	Average Assets			271,215			224,195			47,020		21.0	%
	Total loans			246,072			210,199			35,873		17.1	%
	Allowance for loan loss (ALLL)			2,538			2,586			(48	)	-1.9	%
	Total deposits			274,869			212,017			62,853		29.6	%
	Other borrowings			5,685			-			5,685		0.0	%
	Shareholders' equity			18,725			21,459			(2,734	)	-12.7	%

ASSET QUALITY
	Other real estate owned (OREO)			-			-			-		0.0	%
	Net charge-offs			833			-			833		0.0	%
	Non-accrual loans			304			2,237			(1,933	)	-86.4	%
(2)	Non-performing assets (NPA)			304			2,237			(1,933	)	-86.4	%
	Non-accrual loans / total loans			0.12	%		1.06	%		-0.94	%	-88.4	%
	Allowance for loan loss / total loans			1.03	%		1.23	%		-0.20	%	-16.2	%

PERFORMANCE MEASUREMENTS
	Net interest margin (tax equivalent)			3.87	%		4.07	%		-0.20	%	-4.9	%
(1)	Return on average assets (annualized)			0.58	%		0.85	%		-0.27	%	-31.5	%
(3)	Return on average assets (annualized)			1.31	%		1.61	%		-0.30	%	-18.8	%
(1)	Return on average common equity (annualized)			8.77	%		11.86	%		-3.09	%	-26.0	%
(3)	Return on average common equity (annualized)			19.71	%		22.47	%		-2.76	%	-12.3	%
	Efficiency ratio			68.6	%		64.1	%		4.54	%	7.1	%
	Total loans / Total deposits			89.5	%		99.1	%		-9.62	%	-9.7	%
	Equity / Assets			6.21	%		9.10	%		-2.89	%	-31.8	%
	Tangible common equity / Total assets			6.21	%		7.14	%		-0.93	%	-13.0	%

	Book value per share		$	9.92		$	8.99		$	0.93		10.3	%
	Stock price		$	16.26		$	8.50		$	7.76		91.3	%
	Stock price / book value (%)			163.9	%		94.5	%		69.38	%	73.4	%
	Income per share - basic & diluted		$	0.63		$	0.74		$	(0.12	)	-15.7	%
	Income per share - basic & diluted (LTM)		$	0.92		$	0.97		$	(0.05	)	-5.2	%
	Price to earnings ratio (P/E) (year to date)			19.4x			8.5x			10.9x		127.2	%
	Shares outstanding			1,887,610			1,872,632			14,978		0.8	%
	Average shares outstanding			1,882,828			1,866,593			16,235		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
			September 30,			June 30,			March 31,			December 31,			September 30,
			2016			2016			2016			2015			2015
INCOME STATEMENT
		Interest Income	$	3,065		$	2,879		$	2,792		$	2,712		$	2,641
		Interest Expense		399			390			394			334			319
	Net Interest Income			2,666			2,489			2,399			2,378			2,323
		Provision for loan loss		30			405			410			81			-
		Non-interest income		451			218			222			333			174
		Non-interest expense		2,139			1,921			1,734			1,806			1,693
	Net Income before Income Taxes			949			381			477			824			804
		Income tax expense		331			132			164			272			280
	Net Income			618			249			313			553			524
		Dividend on preferred stock		-			-			-			10			12
	Net Income applicable to common shareholders		$	618		$	249		$	313		$	542		$	512

	Income per share - basic & diluted		$	0.33		$	0.13		$	0.17		$	0.29		$	0.27

BALANCE SHEET DATA
	Total assets			301,618			274,650			273,894			244,204			235,887
	Average Assets			279,597			272,776			261,080			246,503			233,756
	Total loans			246,072			238,209			227,052			222,139			210,199
	Allowance for loan loss (ALLL)			2,538			2,788			2,935			2,525			2,586
	Total deposits			274,869			249,339			249,830			220,487			212,017
	Other borrowings			5,685			5,531			4,526			4,621			-
	Shareholders' equity			18,725			18,099			17,744			17,377			21,459

ASSET QUALITY
	Other real estate owned (OREO)			-			-			-			-			-
	Net charge-offs			280			553			-			141			-
	Non-accrual loans			304			968			2,083			2,083			2,237
(2)	Non-performing assets (NPA)			304			968			2,083			2,083			2,237
	Non-accrual loans / total loans			0.12	%		0.41	%		0.92	%		0.94	%		1.06	%
	Allowance for loan loss / total loans			1.03	%		1.17	%		1.29	%		1.14	%		1.23	%

PERFORMANCE MEASUREMENTS
	Net interest margin (tax equivalent)			3.95	%		3.82	%		3.85	%		3.99	%		4.12	%
(1)	Return on average assets (annualized)			0.88	%		0.37	%		0.48	%		0.89	%		0.89	%
(3)	Return on average assets (annualized)			1.39	%		1.16	%		1.37	%		1.46	%		1.37	%
(1)	Return on average common equity (annualized)			13.36	%		5.59	%		7.16	%		12.79	%		12.52	%
(3)	Return on average common equity (annualized)			21.16	%		17.65	%		20.26	%		20.96	%		19.22	%
	Efficiency ratio			68.6	%		71.0	%		66.2	%		66.6	%		67.8	%
	Total loans / Total deposits			89.5	%		95.5	%		90.9	%		100.7	%		99.1	%
	Equity / Assets			6.21	%		6.59	%		6.48	%		7.12	%		9.10	%
	Tangible common equity / Total assets			6.21	%		6.59	%		6.48	%		7.12	%		7.14	%

	Book value per share		$	9.92		$	9.59		$	9.46		$	9.28		$	8.99
	Stock price		$	16.26		$	9.15		$	8.79		$	8.65		$	8.50
	Stock price / book value (%)			163.9	%		95.4	%		93.0	%		93.2	%		94.5	%
	Income per share - basic & diluted		$	0.33		$	0.13		$	0.17		$	0.29		$	0.27
	Shares outstanding			1,887,610			1,887,610			1,876,610			1,872,632			1,872,632
	Average shares outstanding			1,887,610			1,885,434			1,875,386			1,872,632			1,872,632

(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

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