Birmingham Bloomfield Bancshares, Inc. Announces 2016 First Quarter Results
/EINPresswire.com/ -- BIRMINGHAM , MI--(Marketwired - April 19, 2016) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced results for the quarter ended March 31, 2016. The Company reported net income of $313,000 or $0.17 per share of common stock for the first quarter of 2016. On a pre-tax, pre-provision basis, net income was $887,000, a 10.7% increase compared to the same period of 2015.
Chief Executive Officer, Rob Farr, issued the results and commented, "The core operations remain very strong with a pre-tax, pre-provision ROA of 1.37%. This is a result of our efficient cost structure and strong profit margin performance driven by revenue growth. We also continue to experience expansion in our market as total assets reached $273.9 million at the end of the quarter, an increase of 31% since March of 2015. Book value was $9.46 as of March 31
Results of Operation
Total net interest income for the first quarter of 2016 increased 15.9% to $2.399 million, compared to $2.070 million for the first quarter of 2015. The increase in net interest income was the result of continued growth in the loan portfolio. Net interest margin for the quarter was 3.85% compared to 3.99% for the most recent linked quarter and 4.10% for the first quarter of 2015. The margin compression is a result of the competitive market conditions affecting loan pricing and additional funding costs associated with the term debt facility used to redeem the SBLF preferred investment.
The Company provided $410,000 in provision expense during the quarter and the allowance relative to total loans was 1.29% at March 31, 2016. The provision expense is a function of new loan volume and additional reserves required for one impaired loan. There have been no net charge offs during the period and total nonaccrual loans remained unchanged from December 31, 2015.
The Company generated non-interest income of $222,000 during the first three months of 2016, compared to $236,000 for the same period in 2015. The reduction in revenue is primarily the result of a decrease in the volume of mortgage loans sold in the secondary market.
Total non-interest expense for the first quarter of 2016 was $1.734 million, an increase of $229,000 relative to the same period of 2015. The increase was a function of investments in the infrastructure of the organization to support future growth. The major contributors to the additional expenses were salaries, data processing costs and professional fees.
Balance Sheet
Total assets as of March 31, 2016 were $273.9 million, an increase of $29.7 million from the most recent linked quarter and 30.7% from the first quarter of 2015. Total portfolio loans reached $227.1 million at the end of the first quarter, an increase of $4.9 million from December 31, 2015 and 19.8% from March 31, 2015. The growth is a function of the favorable economic conditions in our core market, increased promotional efforts and our community oriented approach to providing valuable solutions for our customers. Total non-performing loans remained flat during the quarter and represent to 0.92% of the portfolio. Total deposits as of March 31, 2016 were $249.8 million, an increase of $61.9 million from the first quarter of 2015. The growth is related to the successful implementation of strategic initiatives focused on generating core deposits in our market. 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 Raymond James, Chicago; 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)
March 31, December 31, March 31,
2016 2015 2015
---------------- --------------- ---------------
ASSETS
----------------------------
Cash and due from banks $ 39,367,001 $ 14,232,848 $ 11,496,596
Federal funds sold - - -
---------------- --------------- ---------------
Total cash and cash
equivalents 39,367,001 14,232,848 11,496,596
Securities available-
for-sale 3,845,883 3,933,083 4,743,644
Federal Home Loan Bank
Stock 243,300 243,300 281,900
---------------- --------------- ---------------
Total securities 4,089,183 4,176,383 5,025,544
Portfolio loans
Consumer loans 2,339,420 2,355,187 2,146,893
Mortgage loans 39,514,931 35,060,825 24,159,534
Commercial leases 36,073,592 35,940,633 27,318,069
Commercial loans 149,124,086 148,782,782 135,963,771
---------------- --------------- ---------------
Total loans 227,052,029 222,139,427 189,588,267
Less: Allowance for loan
loss 2,935,350 2,525,350 2,405,587
---------------- --------------- ---------------
Net loans 224,116,679 219,614,077 187,182,680
Premises and equipment,
net 970,757 996,183 1,077,830
Bank owned life
insurance 2,404,936 2,389,018 2,339,548
Deferred Tax Asset 1,310,684 1,202,501 1,159,450
Accrued interest
receivable and other
assets 1,634,946 1,592,630 1,248,262
---------------- --------------- ---------------
TOTAL ASSETS $ 273,894,186 $ 244,203,640 $ 209,529,910
================ =============== ===============
LIABILITIES
----------------------------
Deposits
Noninterest-bearing $ 61,426,407 $ 57,526,790 $ 45,402,460
Interest-bearing 188,403,225 162,960,444 142,561,877
---------------- --------------- ---------------
Total deposits 249,829,632 220,487,234 187,964,337
Other Borrowings 4,526,178 4,621,000 -
Accrued interest
payable, taxes and
other liabilities 1,794,580 1,718,161 1,302,171
---------------- --------------- ---------------
Total liabilities 256,150,390 226,826,395 189,266,508
SHAREHOLDERS' EQUITY
----------------------------
Senior preferred stock,
series D - - 4,621,000
Common Stock, no par value 17,446,694 17,412,285 17,316,585
Authorized -- 9,000,000
shares, Issued and
outstanding --
1,876,610
1,872,632 and 1,861,632
shares respectively
Accumulated other
comprehensive income 31,850 23,808 48,156
Additional paid in capital
-- share based payments 525,104 514,454 493,154
Accumulated deficit (259,852) (573,302) (2,215,492)
---------------- --------------- ---------------
Total shareholders' equity 17,743,797 17,377,245 20,263,403
---------------- --------------- ---------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 273,894,186 $ 244,203,640 $ 209,529,910
================ =============== ===============
Book value per share $ 9.46 $ 9.28 $ 8.40
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months ended
-----------------------------
March 31,
-----------------------------
2016 2015
-------------- --------------
Interest Income
-----------------------------------------------
Interest and fees on loans
Commercial loans $ 1,884,723 $ 1,677,226
Commercial leases 440,163 321,105
Consumer loans 34,094 28,052
Mortgage loans 233,746 143,112
Home Equity loans 139,712 106,275
Late charges and fees 19,580 26,316
-------------- --------------
Total loan interest and fee income 2,752,017 2,302,087
Interest bearing deposits 23,193 11,380
Federal Funds Sold - 62
Interest on investment securities
Taxable 16,944 23,421
Tax-exempt - -
-------------- --------------
Total investment income 16,944 23,421
Total interest income 2,792,154 2,336,949
Interest Expense
-----------------------------------------------
Interest on deposits 348,419 267,198
Interest on borrowed funds 45,166 1
-------------- --------------
Total interest expense 393,585 267,199
-------------- --------------
Net Interest Income 2,398,569 2,069,750
Provision for loan losses 410,000 345,000
-------------- --------------
Net Interest Income After Provision for Loan
Losses 1,988,569 1,724,750
Non-interest Income
-----------------------------------------------
Service charge income 24,104 26,509
Mortgage banking activities 7,749 28,216
SBA loan sales 158,554 148,872
Other income 31,589 32,522
-------------- --------------
Total non-interest income 221,996 236,119
Non-interest Expense
-----------------------------------------------
Salaries and employee benefits 980,159 871,056
Occupancy expense 136,780 133,713
Equipment expense 31,830 45,057
Advertising 59,898 67,110
Data Processing 97,694 69,478
Professional fees 141,843 117,774
Loan origination expense 57,590 45,014
Regulatory Assessments 53,874 42,040
Other expense 173,911 113,760
-------------- --------------
Total non-interest expense 1,733,579 1,505,002
Net Income Before Income Taxes 476,986 455,867
Income tax expense 163,537 155,901
-------------- --------------
Net Income 313,449 299,966
Dividend on preferred stock - 11,553
-------------- --------------
Net Income applicable to common shareholders $ 313,449 $ 288,413
============== ==============
Income per share -- basic $ 0.17 $ 0.16
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
-------------------------------------------------
March 31, Change
-------------------------- ----------------------
2016 2015 Amount Percentage
------------- ------------ --------- ------------
INCOME STATEMENT
---------------------------
Interest Income $ 2,792 $ 2,337 $ 455 19.5%
Interest Expense 394 267 126 47.3%
------------- ------------ ---------
Net Interest Income 2,399 2,070 329 15.9%
Provision for loan
loss 410 345 65 18.8%
Non-interest income 222 236 (14) -6.0%
Non-interest expense 1,734 1,505 229 15.2%
------------- ------------ ---------
Net Income before
Income Taxes 477 456 21 4.6%
Income tax expense 164 156 8 4.9%
------------- ------------ ---------
Net Income 313 300 13 4.5%
Dividend on preferred
stock - 12 (12) -100.0%
------------- ------------ ---------
Net Income -- common
shareholders $ 313 $ 288 $ 25 8.7%
------------- ------------ ---------
Income per share --
basic & diluted $ 0.17 $ 0.16 $ 0.01 7.8%
------------- ------------ ---------
BALANCE SHEET DATA
---------------------------
Total assets 273,894 209,530 64,364 30.7%
Average Assets 261,080 214,806 46,274 21.5%
Total loans 227,052 189,588 37,464 19.8%
Allowance for loan loss
(ALLL) 2,935 2,406 530 22.0%
Total deposits 249,830 187,964 61,865 32.9%
Other borrowings 4,526 - 4,526 0.0%
Shareholders' equity 17,744 20,263 (2,520) -12.4%
ASSET QUALITY
---------------------------
Other real estate owned
(OREO) - - - 0.0%
Net charge-offs - - - 0.0%
Non-accrual loans 2,083 2,237 (154) -6.9%
Non-performing assets
(2) (NPA) 2,083 2,237 (154) -6.9%
Non-accrual loans /
total loans 0.92% 1.18% -0.26% -22.2%
Allowance for loan loss
/ total loans 1.29% 1.27% 0.02% 1.9%
PERFORMANCE MEASUREMENTS
---------------------------
Net interest margin
(tax equivalent) 3.85% 4.10% -0.25% -6.1%
Return on average
(1) assets (annualized) 0.48% 0.57% -0.08% -14.7%
Return on average
(3) assets (annualized) 1.37% 1.51% -0.15% -9.6%
Return on average
common equity
(1) (annualized) 7.16% 7.83% -0.67% -8.5%
Return on average
common equity
(3) (annualized) 20.26% 20.90% -0.63% -3.0%
Efficiency ratio 66.2% 65.3% 0.88% 1.4%
Total loans / Total
deposits 90.9% 100.9% -9.98% -9.9%
Equity / Assets 6.48% 9.67% -3.19% -33.0%
Tangible common equity
/ Total assets 6.48% 7.47% -0.99% -13.2%
Book value per share $ 9.46 $ 8.40 $ 1.05 12.5%
Stock price $ 8.79 $ 8.40 $ 0.39 4.6%
Stock price / book
value (%) 93.0% 100.0% -7.01% -7.0%
Income per share --
basic & diluted $ 0.17 $ 0.16 $ 0.01 7.8%
Income per share --
basic & diluted (LTM) $ 1.04 $ 0.81 $ 0.23 28.4%
Price to earnings ratio
(P/E) (year to date) 13.1x 13.4x -0.3x -2.1%
Shares outstanding 1,876,610 1,861,632 14,978 0.8%
Average shares
outstanding 1,875,386 1,860,181 15,205 0.8%
(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
March 31, December 31, 30,
2016 2015 2015
------------- ------------- -------------
INCOME STATEMENT
-----------------------------------
Interest Income $ 2,792 $ 2,712 $ 2,641
Interest Expense 394 334 319
------------- ------------- -------------
Net Interest Income 2,399 2,378 2,323
Provision for loan loss 410 81 -
Non-interest income 222 333 174
Non-interest expense 1,734 1,806 1,693
------------- ------------- -------------
Net Income before Income Taxes 477 824 804
Income tax expense 164 272 280
------------- ------------- -------------
Net Income 313 553 524
Dividend on preferred stock - 10 12
------------- ------------- -------------
Net Income applicable to common
shareholders $ 313 $ 542 $ 512
============= ============= =============
Income per share -- basic &
diluted $ 0.17 $ 0.29 $ 0.27
============= ============= =============
BALANCE SHEET DATA
-----------------------------------
Total assets 273,894 244,204 235,887
Average Assets 261,080 246,503 233,756
Total loans 227,052 222,139 210,199
Allowance for loan loss (ALLL) 2,935 2,525 2,586
Total deposits 249,830 220,487 212,017
Other borrowings 4,526 4,621 -
Shareholders' equity 17,744 17,377 21,459
ASSET QUALITY
-----------------------------------
Other real estate owned (OREO) - - -
Net charge-offs - 141 -
Non-accrual loans 2,083 2,083 2,237
(2) Non-performing assets (NPA) 2,083 2,083 2,237
Non-accrual loans / total loans 0.92% 0.94% 1.06%
Allowance for loan loss / total
loans 1.29% 1.14% 1.23%
PERFORMANCE MEASUREMENTS
-----------------------------------
Net interest margin (tax
equivalent) 3.85% 3.99% 4.12%
Return on average assets
(1) (annualized) 0.48% 0.89% 0.89%
Return on average assets
(3) (annualized) 1.37% 1.46% 1.37%
Return on average common equity
(1) (annualized) 7.16% 12.79% 12.52%
Return on average common equity
(3) (annualized) 20.26% 20.96% 19.22%
Efficiency ratio 66.2% 66.6% 67.8%
Total loans / Total deposits 90.9% 100.7% 99.1%
Equity / Assets 6.48% 7.12% 9.10%
Tangible common equity / Total
assets 6.48% 7.12% 7.14%
Book value per share $ 9.46 $ 9.28 $ 8.99
Stock price $ 8.79 $ 8.65 $ 8.50
Stock price / book value (%) 93.0% 93.2% 94.5%
Income per share -- basic &
diluted $ 0.17 $ 0.29 $ 0.27
Shares outstanding 1,876,610 1,872,632 1,872,632
Average shares outstanding 1,875,386 1,872,632 1,872,632
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Quarter Ended
----------------------------
June 30, March 31,
2015 2015
------------- -------------
INCOME STATEMENT
-----------------------------------
Interest Income $ 2,450 $ 2,337
Interest Expense 310 267
------------- -------------
Net Interest Income 2,140 2,070
Provision for loan loss 180 345
Non-interest income 562 236
Non-interest expense 1,610 1,505
------------- -------------
Net Income before Income Taxes 912 456
Income tax expense 313 156
------------- -------------
Net Income 599 300
Dividend on preferred stock 12 12
------------- -------------
Net Income applicable to common
shareholders $ 588 $ 288
============= =============
Income per share -- basic &
diluted $ 0.31 $ 0.16
============= =============
BALANCE SHEET DATA
-----------------------------------
Total assets 228,322 209,530
Average Assets 223,792 214,806
Total loans 202,839 189,588
Allowance for loan loss (ALLL) 2,586 2,406
Total deposits 204,964 187,964
Other borrowings - -
Shareholders' equity 20,931 20,263
ASSET QUALITY
-----------------------------------
Other real estate owned (OREO) - -
Net charge-offs - -
Non-accrual loans 2,237 2,237
(2) Non-performing assets (NPA) 2,237 2,237
Non-accrual loans / total loans 1.10% 1.18%
Allowance for loan loss / total
loans 1.27% 1.27%
PERFORMANCE MEASUREMENTS
-----------------------------------
Net interest margin (tax
equivalent) 4.00% 4.10%
Return on average assets
(1) (annualized) 1.07% 0.57%
Return on average assets
(3) (annualized) 1.96% 1.51%
Return on average common equity
(1) (annualized) 15.03% 7.83%
Return on average common equity
(3) (annualized) 27.39% 20.90%
Efficiency ratio 59.6% 65.3%
Total loans / Total deposits 99.0% 100.9%
Equity / Assets 9.17% 9.67%
Tangible common equity / Total
assets 7.14% 7.47%
Book value per share $ 8.71 $ 8.40
Stock price $ 9.05 $ 8.40
Stock price / book value (%) 103.9% 100.0%
Income per share -- basic &
diluted $ 0.31 $ 0.16
Shares outstanding 1,872,632 1,861,632
Average shares outstanding 1,866,830 1,860,181
(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
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