BIRMINGHAM, MI -- (Marketwire) -- 01/28/13 -- Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and year to date periods ended December 31, 2012. The performance delivered record pre-tax net income and significant growth in the loan portfolio.
The Company reported net income of $337,000 or $0.18 per common share for the fourth quarter of 2012 compared to net income of $2,965,000 or $1.64 per common share for the same period of 2011. Net income for the year to date period ended December 31, 2012 was $1,019,000 or $0.56 per common share compared to $3,750,000 or $2.08 per common share for the same period last year. The prior year results were positively impacted by the recognition of the Company's deferred tax asset recorded in the fourth quarter of 2011; the adjustment totaled $2,885,000 or $1.60 per share. Excluding the impact of income taxes, pre-tax net income before preferred dividends was $1,614,000 for the period ended December 31, 2012 compared to $1,049,000 for 2011. This represents a year over year increase of 53.8%.
Chief Executive Officer, Rob Farr, issued the results and commented, "2012 was a very successful year for the organization. We were able to report record pre-tax earnings, realize substantial growth in total assets as a result of quality loan opportunities and improve net interest margin by implementing strategic actions to enhance the profitability of the balance sheet. Our pre-tax, pre-provision Return on Average Assets for 2012 was 1.48% compared to 1.08% in 2011 and book value reached $6.79. We also expanded our product options during the year to better service the needs of the community and diversify our revenue sources. Overall, this was an outstanding year for the Bank and provides us momentum moving into 2013."
Results of Operation
The Company reported net interest income of $1.544 million for the fourth quarter of 2012, a 14.3% increase relative to the same quarter of 2011. The improvement was the result of portfolio loan growth and a reduction in funding costs. Net interest margin for the quarter was 4.59% compared to 4.65% for the most recent linked quarter. The compression was a result of the competitive pricing environment and product mix of the balance sheet. Net interest income for the full year of 2012 was $5.940 million, an increase of 15.5% compared to the same period of 2011. Net interest margin for the year to date period ended December 31, 2012 was 4.73% compared to 4.51% in 2011. The increased margin was a direct result of a reduction in deposit costs.
The Company provided $70,000 in provision expense during the fourth quarter of 2012, a decrease of $5,000 compared to the same period last year and $260,000 less than the third quarter of 2012. Total provision expense for the year to date period ending December 31, 2012 was $470,000, compared to $234,000 for the twelve month period in 2011. The increase in provision expense is attributable to new loan volume and additional reserve requirements on collaterally deficient impaired loans. There have been no net charge offs during 2012 compared to $108,000 for 2011.
The Company continues to generate substantial revenue from non-interest income activity. Total non-interest income for the fourth quarter of 2012 was $348,000, compared to $309,000 during the same period of 2011. The increase was a result of higher revenue from the sale of SBA and residential mortgage loans in the secondary market and earnings on Bank Owned Life Insurance. Total non-interest income for the year to date period ending December 31, 2012 was $1,243,000, an increase of $10,000 from 2011. The modest improvement was a function of an increase in deposit fee income, earnings on Bank Owned Life Insurance and gain on the sale of a bank owned property, despite a reduction in revenue from loan sales on SBA and residential mortgages due to lower volume.
Total non-interest expense for the fourth quarter of 2012 was $1.296 million, compared to $1.484 million for the same quarter of 2011. The decrease was a result of a reduction in the number of personnel and lower origination costs due to a decrease in loan volume associated with mortgage loans originated for sale. Year to date non-interest expense for 2012 was $5.098 million, an increase of $7,000 relative to the same period in 2011. The nominal increase was the result of investments in operating system technology, dedicating resources to business marketing efforts and additional professional fees associated with strategic initiatives. However, several categories did experience a decrease in costs during the period, including salaries and occupancy expense due to a reduction in personnel and elimination of loan production offices.
Balance Sheet
Total assets as of December 31, 2012 were $152.8 million, a 22.8% increase from December 31, 2011. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $128.3 million in 2012, an increase of $21.9 million from the prior year. The growth was primarily concentrated in commercial real estate and mortgage related loans. The new loan activity was achieved by focusing on organic opportunities in our core markets, increasing business development efforts and by expanding loan product options. The asset quality of the Company remains excellent; no charge offs were reported in 2012 and the allowance for loan loss was 1.59% of the portfolio. Total deposits as of December 31, 2012 were $134.9 million, an increase of 25.3% from the same period in 2011. The Bank continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 9.03% for the quarter.
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 included in the Company's filings with the Securities and Exchange Commission, available free via EDGAR. 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,
2012 2011
------------- -------------
ASSETS
Cash and due from banks $ 15,539,072 $ 4,693,585
Federal funds sold - -
------------- -------------
Total cash and cash equivalents 15,539,072 4,693,585
Securities available-for-sale 3,725,923 4,594,761
Securities held-to-maturity - -
Federal Home Loan Bank Stock 218,100 169,900
------------- -------------
Total securities 3,944,023 4,764,661
Loans held for sale - 2,484,829
Portfolio loans
Consumer loans 1,801,991 1,305,501
Mortgage loans 16,203,001 11,572,620
Commercial loans 110,272,450 93,419,805
------------- -------------
Total loans 128,277,442 106,297,926
Less: Allowance for loan loss 2,044,350 1,574,350
------------- -------------
Net loans 126,233,092 104,723,576
Premises and equipment, net 1,277,802 1,395,187
Bank owned life insurance 2,182,513 2,100,000
Accrued interest receivable and other
assets 3,596,576 4,235,623
------------- -------------
TOTAL ASSETS $ 152,773,078 $ 124,397,461
============= =============
LIABILITIES
Deposits
Noninterest-bearing $ 23,947,132 $ 19,662,283
Interest-bearing 110,955,051 88,015,546
------------- -------------
Total deposits 134,902,183 107,677,829
Short term borrowings - -
Accrued interest payable, taxes and other
liabilities 867,356 755,090
------------- -------------
Total liabilities 135,769,539 108,432,919
SHAREHOLDERS' EQUITY
Senior preferred stock, series D 4,621,000 4,621,000
Common Stock, no par value 17,105,618 17,066,618
Authorized - 9,000,000 shares, Issued and
outstanding - 1,824,662 and 1,812,662
shares respectively
Accumulated other comprehensive income 76,066 95,168
Additional paid in capital - share based
payments 493,154 493,154
Accumulated deficit (5,292,299) (6,311,398)
------------- -------------
Total shareholders' equity 17,003,539 15,964,542
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 152,773,078 $ 124,397,461
============= =============
Book value per share $ 6.79 $ 6.26
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
For the three months For the twelve months
ended ended
----------------------- -----------------------
December 31, December 31,
----------------------- -----------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Interest Income
Interest and fees on
loans
Commercial loans $ 1,521,837 $ 1,447,603 $ 5,943,977 $ 5,681,704
Installment loans 22,447 18,791 75,083 61,959
Mortgage loans 85,839 29,878 266,934 86,382
Home Equity loans 85,124 96,215 363,494 385,921
Late charges and
fees 23,303 6,370 85,786 27,610
----------- ----------- ----------- -----------
Total loan interest and
fee income 1,738,550 1,598,857 6,735,274 6,243,576
Interest bearing
deposits 7,572 5,059 21,479 20,350
Federal Funds Sold - - - 13
Interest on investment
securities
Taxable 23,424 24,237 95,673 99,023
Tax-exempt 985 1,808 3,985 2,216
----------- ----------- ----------- -----------
Total investment income 24,409 26,045 99,658 101,239
Total interest income 1,770,532 1,629,961 6,856,412 6,365,178
Interest Expense
Interest on deposits 227,006 279,386 916,561 1,208,513
Interest on borrowed
funds - 196 64 14,705
----------- ----------- ----------- -----------
Total interest expense 227,006 279,582 916,625 1,223,218
----------- ----------- ----------- -----------
Net Interest Income 1,543,526 1,350,379 5,939,787 5,141,960
Provision for loan
losses 70,000 75,000 470,000 234,000
----------- ----------- ----------- -----------
Net Interest Income
After Provision for
Loan Losses 1,473,526 1,275,379 5,469,787 4,907,960
Non-interest Income
Service charge income 19,912 16,074 78,622 55,443
Mortgage banking
activities 81,525 267,193 355,557 434,338
SBA loan sales 215,618 14,704 537,466 701,588
Other income 30,603 10,973 271,336 41,399
----------- ----------- ----------- -----------
Total non-interest
income 347,658 308,944 1,242,981 1,232,768
Non-interest Expense
Salaries and employee
benefits 631,181 800,178 2,686,254 2,755,204
Occupancy expense 124,336 129,655 481,140 518,634
Equipment expense 50,886 47,364 201,115 180,674
Advertising 100,618 81,057 272,798 191,076
Data Processing 79,730 56,227 259,949 223,179
Professional fees 125,918 110,035 504,547 473,438
Loan origination
expense 40,312 138,051 195,459 224,324
Regulatory Assessments 31,377 12,010 105,622 127,941
Other expense 111,165 109,302 391,528 396,805
----------- ----------- ----------- -----------
Total non-interest
expense 1,295,523 1,483,879 5,098,412 5,091,275
Net Income Before Income
Taxes 525,661 100,444 1,614,356 1,049,453
Income tax expense
(benefit) 177,417 (2,884,715) 538,768 (2,884,715)
----------- ----------- ----------- -----------
Net Income 348,244 2,985,159 1,075,588 3,934,168
Dividend and accretion
on preferred stock 11,553 19,732 56,489 184,092
----------- ----------- ----------- -----------
Net Income applicable to
common shareholders $ 336,691 $ 2,965,427 $ 1,019,099 $ 3,750,076
=========== =========== =========== ===========
Income per share - basic $ 0.18 $ 1.64 $ 0.56 $ 2.08
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date
----------------------------------------------
December 31, Change
---------------------- ----------------------
2012 2011 Amount Percentage
---------- ---------- ---------- ----------
INCOME STATEMENT
Interest Income $ 6,856 $ 6,365 $ 491 7.7%
Interest Expense 917 1,223 (307) -25.1%
---------- ---------- ----------
Net Interest Income 5,940 5,142 798 15.5%
Provision for loan loss 470 234 236 100.9%
Non-interest income 1,243 1,233 10 0.8%
Non-interest expense 5,098 5,091 7 0.1%
---------- ---------- ----------
Net Income before Income
Taxes 1,614 1,049 565 53.8%
Income tax expense
(benefit) 539 (2,885) 3,423 118.7%
---------- ---------- ----------
Net Income 1,076 3,934 (2,859) -72.7%
Dividend and accretion
on preferred stock 56 184 (128) -69.3%
---------- ---------- ----------
Net Income - common
shareholders $ 1,019 $ 3,750 $ (2,731) -72.8%
---------- ---------- ----------
Income per share - basic
& diluted $ 0.56 $ 2.08 $ (1.52) -73.1%
---------- ---------- ----------
BALANCE SHEET DATA
Total assets 152,773 124,397 28,376 22.8%
Average Assets 140,400 119,347 21,053 17.6%
Total loans 128,277 106,298 21,980 20.7%
Allowance for loan loss
(ALLL) 2,044 1,574 470 29.9%
Total deposits 134,902 107,678 27,224 25.3%
Other borrowings - - - 0.0%
Shareholders' equity 17,004 15,965 1,039 6.5%
Average Equity 16,543 12,196 4,347 35.6%
ASSET QUALITY
Other real estate owned
(OREO) - 298 (298) -100.0%
Net charge-offs - 108 (108) -100.0%
Non-accrual loans 764 - 764 0.0%
(2)Non-performing assets
(NPA) 764 298 466 156.3%
Non-accrual loans / total
loans 0.60% 0.00% 0.60% 0.0%
Allowance for loan loss /
total loans 1.59% 1.48% 0.11% 7.6%
PERFORMANCE MEASUREMENTS
Net interest margin (tax
equivalent) 4.73% 4.51% 0.22% 4.9%
(1)Return on average assets
(annualized) 0.77% 3.30% -2.53% -76.6%
(3)Return on average assets
(annualized) 1.48% 1.08% 0.40% 37.6%
(1)Return on average common
equity (annualized) 9.02% 47.59% -38.57% -81.0%
(3)Return on average common
equity (annualized) 17.48% 15.52% 1.96% 12.6%
Efficiency ratio 71.0% 79.9% -8.89% -11.1%
Total loans / Total
deposits 95.1% 98.7% -3.63% -3.7%
Tier 1 Leverage Ratio
(Bank only) 9.03% 9.94% -0.91% -9.15%
Equity / Assets 11.13% 12.83% -1.70% -13.3%
Tangible common equity /
Total assets 8.11% 9.12% -1.01% -11.1%
Book value per share $ 6.79 $ 6.26 $ 0.53 8.4%
Stock price $ 4.60 $ 3.00 $ 1.60 53.3%
Stock price / book value
(%) 67.8% 47.9% 19.85% 41.4%
Income (loss) per share -
basic & diluted $ 0.56 $ 2.08 $ (1.52) -73.1%
Price to earnings ratio
(P/E) 8.2x 1.4x 6.8x 470.1%
Shares outstanding 1,824,662 1,812,662 12,000 0.7%
Average shares
outstanding 1,822,376 1,803,608 18,768 1.0%
(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 December
31, 30, June 30, March 31, 31,
2012 2012 2012 2012 2011
---------- ---------- ---------- ---------- ----------
INCOME STATEMENT
Interest Income $ 1,771 $ 1,746 $ 1,719 $ 1,621 $ 1,630
Interest
Expense 227 239 223 228 280
---------- ---------- ---------- ---------- ----------
Net Interest
Income 1,544 1,507 1,496 1,394 1,350
Provision for
loan loss 70 330 50 20 75
Non-interest
income 348 300 112 484 309
Non-interest
expense 1,296 1,248 1,216 1,338 1,484
---------- ---------- ---------- ---------- ----------
Net Income before
Income Taxes 526 228 341 519 100
Income tax
expense
(benefit) 177 79 111 171 (2,885)
---------- ---------- ---------- ---------- ----------
Net Income 348 150 230 348 2,985
Dividend and
accretion on
preferred
stock 12 12 22 12 20
---------- ---------- ---------- ---------- ----------
Net Income
applicable to
common
shareholders $ 337 $ 138 $ 208 $ 336 $ 2,965
========== ========== ========== ========== ==========
Income per share
- basic &
diluted $ 0.18 $ 0.08 $ 0.11 $ 0.19 $ 1.64
========== ========== ========== ========== ==========
BALANCE SHEET DATA
Total assets 152,773 148,497 139,851 128,663 124,397
Average Assets 154,452 146,057 134,375 126,499 123,317
Total loans 128,277 118,440 113,074 106,628 106,298
Allowance for
loan loss (ALLL) 2,044 1,974 1,644 1,594 1,574
Total deposits 134,902 131,147 122,650 111,774 107,678
Other borrowings - - - - -
Shareholders'
equity 17,004 16,682 16,546 16,297 15,965
Average Equity 16,822 16,728 16,410 16,206 13,584
ASSET QUALITY
Other real estate
owned (OREO) - - - - 298
Net charge-offs - - - - -
Non-accrual loans 764 708 - - -
(2)Non-performing
assets (NPA) 764 708 - - 298
Non-accrual loans
/ total loans 0.60% 0.60% 0.00% 0.00% 0.00%
Allowance for
loan loss /
total loans 1.59% 1.67% 1.45% 1.50% 1.48%
PERFORMANCE
MEASUREMENTS
Net interest
margin (tax
equivalent) 4.59% 4.65% 4.91% 4.80% 4.61%
(1)Return on average
assets
(annualized) 0.90% 0.41% 0.69% 1.11% 9.60%
(3)Return on average
assets
(annualized) 1.53% 1.52% 1.17% 1.71% 0.56%
(1)Return on average
common equity
(annualized) 11.35% 4.92% 7.84% 12.08% 132.13%
(3)Return on average
common equity
(annualized) 19.42% 18.35% 13.34% 18.72% 7.77%
Efficiency ratio 68.5% 69.1% 75.7% 71.3% 89.4%
Total loans /
Total deposits 95.1% 90.3% 92.2% 95.4% 98.7%
Tier 1 Leverage
Ratio (Bank
only) 9.03% 9.20% 9.82% 10.13% 9.94%
Equity / Assets 11.13% 11.23% 11.83% 12.67% 12.83%
Tangible common
equity / Total
assets 8.11% 8.12% 8.53% 9.07% 9.12%
Book value per
share $ 6.79 $ 6.61 $ 6.54 $ 6.44 $ 6.26
Stock price $ 4.60 $ 4.55 $ 3.30 $ 3.02 $ 3.00
Stock price /
book value (%) 67.8% 68.8% 50.5% 46.9% 47.9%
Income (loss) per
share - basic &
diluted $ 0.18 $ 0.08 $ 0.11 $ 0.19 $ 1.64
Shares
outstanding 1,824,662 1,824,662 1,824,662 1,812,662 1,812,662
Average shares
outstanding 1,824,662 1,824,662 1,816,222 1,812,662 1,812,662
(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
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