Attached files
| file | filename |
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| 8-K - FORM 8-K - Birmingham Bloomfield Bancshares | d344554d8k.htm |
Exhibit 99.1
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Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
April 26, 2012
| For Immediate Release: |
Contact: | Robert M. Farr | ||||||
| Chief Executive Officer | ||||||||
| Birmingham Bloomfield Bancshares, Inc. | ||||||||
| 248-283-6430 |
Birmingham Bloomfield Bancshares, Inc.
Announces Unaudited First Quarter Results
BIRMINGHAM, MI—Birmingham Bloomfield Bancshares, Inc. (OTC Bulletin Board: BBBI.OB) (“the Company”), the holding company for Bank of Birmingham, today announced first quarter net income for the period ended March 31, 2012. The favorable results are a product of improved margins, lower loan loss provision expense and an increase in non-interest income.
The Corporation reported net income of $336,000 or $0.19 per share of common stock for the first quarter of 2012, compared to net income of $414,000 or $0.23 per share for the first quarter of 2011. The overall performance was impacted by the recognition of income tax expense in 2012 not required in 2011. Excluding tax expense of $171,000 for the period, pre-tax net income after preferred dividends was $507,000, an increase of 22.5% from March 31, 2011.
Chief Executive Officer, Rob Farr, issued the results and commented, “On a pre-tax basis the performance represents our most profitable quarter. We have been successful in producing positive results as we continue to grow the institution, diversify our earnings and generate improvement in net interest margin. The pre-tax, pre-provision Return on Average Assets was 1.71% for the quarter and our book value reached $6.44. Overall we are pleased with the results and look forward to the remainder of 2012.”
Results of Operation
Total net interest income for the first quarter of 2012 increased 10.6% to $1.394 million compared to $1.260 million for the first quarter of 2011. The increase in net interest income was a result of earning assets growth and a reduction in funding costs. Net interest margin increased from 4.49% in the first quarter of 2011 to 4.80% during the current quarter. This was achieved by improving the asset mix of the balance sheet and lowering the aggregate cost of deposits.
The Company continues to be successful in generating significant revenue from non-interest income sources. Non-interest income totaled $484,000 for the first quarter of 2012, compared to $325,000 for the same period in 2011. The majority of the revenue was generated from SBA loan sales, mortgage banking activity and a gain of $150,000 on the sale of a foreclosed property. The Company participates in the SBA 7(a) program and recognized $122,000 in gain on sale and servicing income during the first quarter of 2012. Mortgage banking income represents the premium received on selling qualified residential loans in the secondary market. This generated $163,000 in revenue for the period ended March 31, 2012 compared to $12,000 in 2011. This was a function of increased loan volume due to the low interest rate environment.
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Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
Total non-interest expense for the first quarter of 2012 was $1.338 million, an increase of $255,000 compared to the same period of the prior year. This was a result of additional costs associated with increased volume from residential mortgage activity, adding new personnel to generate growth, expanding services, and dedicating resources to business development efforts to improve franchise awareness.
Balance Sheet
Total assets as of March 31, 2012 were $128.663 million, a 10.4% increase from the prior year. The balance sheet growth was a direct the result of an increase in loan and deposit balances. Total portfolio loans reached $106.628 million at the end of the first quarter, an increase of $8.423 million from the prior year. The growth was primarily concentrated in commercial real estate and mortgage related loans. The Company continues to focus on quality opportunities in our primary market as credit conditions have modestly improved. The asset quality of the Company remains solid; there were no non-performing asset outstanding and the allowance for loan loss was 1.50% of total portfolio loans. Total deposits as of March 31, 2012 were $111.774 million, an increase of 6.9% from 2011. The Bank also continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 10.13% 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 Howe Barnes Hoefer and Arnett (acquired by Raymond James), Chicago; Monroe Securities, Chicago; and Hudson Securities, Inc., Jersey City, New Jersey.
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)
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Birmingham Bloomfield Bancshares, Inc.
Consolidated Balance Sheet (Unaudited)
| March 31, 2012 |
December 31, 2011 |
March 31, 2011 |
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| ASSETS |
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| Cash and due from banks |
$ | 11,436,761 | $ | 4,693,585 | $ | 14,036,879 | ||||||
| Federal funds sold |
— | — | — | |||||||||
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| Total cash and cash equivalents |
11,436,761 | 4,693,585 | 14,036,879 | |||||||||
| Securities available-for-sale |
4,513,638 | 4,594,761 | 3,150,652 | |||||||||
| Securities held-to-maturity |
— | — | — | |||||||||
| Federal Home Loan Bank Stock |
169,900 | 169,900 | 160,200 | |||||||||
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| Total securities |
4,683,538 | 4,764,661 | 3,310,852 | |||||||||
| Loans held for sale |
199,479 | 2,484,829 | — | |||||||||
| Portfolio loans |
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| Consumer loans |
1,081,458 | 1,305,501 | 813,491 | |||||||||
| Mortgage loans |
13,325,469 | 11,572,620 | 11,257,843 | |||||||||
| Commercial loans |
92,221,207 | 93,419,805 | 86,133,771 | |||||||||
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| Total loans |
106,628,134 | 106,297,926 | 98,205,105 | |||||||||
| Less: Allowance for loan loss |
1,594,350 | 1,574,350 | 1,487,099 | |||||||||
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| Net loans |
105,033,784 | 104,723,576 | 96,718,007 | |||||||||
| Premises and equipment, net |
1,350,946 | 1,395,187 | 1,435,426 | |||||||||
| Accrued interest receivable and other assets |
5,958,663 | 6,335,623 | 1,019,575 | |||||||||
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| TOTAL ASSETS |
$ | 128,663,171 | $ | 124,397,461 | $ | 116,520,738 | ||||||
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| LIABILITIES |
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| Deposits |
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| Noninterest-bearing |
$ | 18,750,714 | $ | 19,662,283 | $ | 12,477,840 | ||||||
| Interest-bearing |
93,023,218 | 88,015,546 | 92,110,155 | |||||||||
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| Total deposits |
111,773,932 | 107,677,829 | 104,587,995 | |||||||||
| Short term borrowings |
— | — | — | |||||||||
| Accrued interest payable, taxes and other liabilities |
592,595 | 755,090 | 529,559 | |||||||||
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| Total liabilities |
112,366,527 | 108,432,919 | 105,117,554 | |||||||||
| SHAREHOLDERS’ EQUITY |
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| Senior preferred stock A |
1,635,000 | |||||||||||
| Discount on senior preferred stock A |
(56,427 | ) | ||||||||||
| Warrant preferred stock B |
82,000 | |||||||||||
| Premium on warrant preferred stock B |
6,133 | |||||||||||
| Senior preferred stock C |
1,744,000 | |||||||||||
| Senior preferred stock, series D |
4,621,000 | 4,621,000 | — | |||||||||
| Common Stock, no par value |
17,066,618 | 17,066,618 | 17,034,330 | |||||||||
| Authorized – 4,500,000 shares, Issued and outstanding – 1,812,662 1,812,662 and 1,800,000 shares respectively |
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| Accumulated other comprehensive income |
90,876 | 95,168 | 112,171 | |||||||||
| Additional paid in capital-share based payments |
493,154 | 493,154 | 493,154 | |||||||||
| Accumulated deficit |
(5,975,004 | ) | (6,311,398 | ) | (9,647,177 | ) | ||||||
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| Total shareholders’ equity |
16,296,644 | 15,964,542 | 11,403,185 | |||||||||
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 128,663,171 | $ | 124,397,461 | $ | 116,520,738 | ||||||
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| Book value per share |
$ | 6.44 | $ | 6.26 | $ | 4.44 | ||||||
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
| For the three months ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| Interest Income |
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| Interest and fees on loans |
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| Commercial loans |
$ | 1,427,677 | $ | 1,413,787 | ||||
| Installment loans |
18,057 | 13,088 | ||||||
| Mortgage loans |
49,718 | 19,525 | ||||||
| Home Equity loans |
94,222 | 97,931 | ||||||
| Late charges and fees |
2,643 | 11,478 | ||||||
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| Total loan interest and fee income |
1,592,317 | 1,555,809 | ||||||
| Interest bearing deposits |
3,414 | 4,618 | ||||||
| Federal Funds Sold |
— | 13 | ||||||
| Interest on investment securities |
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| Taxable |
24,688 | 27,911 | ||||||
| Tax-exempt |
1,008 | — | ||||||
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| Total investment income |
25,696 | 27,911 | ||||||
| Total interest income |
1,621,427 | 1,588,351 | ||||||
| Interest Expense |
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| Interest on deposits |
227,557 | 314,055 | ||||||
| Interest on borrowed funds |
64 | 14,509 | ||||||
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| Total interest expense |
227,621 | 328,564 | ||||||
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| Net Interest Income |
1,393,806 | 1,259,787 | ||||||
| Provision for loan losses |
20,000 | 39,000 | ||||||
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| Net Interest Income After Provision for Loan Losses |
1,373,806 | 1,220,787 | ||||||
| Non-interest Income |
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| Service charge income |
18,798 | 11,572 | ||||||
| Mortgage banking activities |
162,828 | 11,439 | ||||||
| SBA loan sales |
121,791 | 291,294 | ||||||
| Other income |
180,572 | 10,804 | ||||||
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| Total non-interest income |
483,989 | 325,109 | ||||||
| Non-interest Expense |
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| Salaries and employee benefits |
761,670 | 582,017 | ||||||
| Occupancy expense |
119,731 | 118,102 | ||||||
| Equipment expense |
49,152 | 35,400 | ||||||
| Advertising |
42,594 | 36,046 | ||||||
| Data Processing |
59,002 | 49,013 | ||||||
| Professional fees |
117,034 | 111,524 | ||||||
| Loan origination expense |
69,012 | 26,369 | ||||||
| Regulatory Assessments |
25,260 | 48,426 | ||||||
| Other expense |
95,040 | 76,519 | ||||||
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| Total non-interest expense |
1,338,495 | 1,083,416 | ||||||
| Net Income Before Income Taxes |
519,300 | 462,480 | ||||||
| Income tax expense |
171,353 | — | ||||||
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| Net Income |
347,947 | 462,480 | ||||||
| Dividend and accretion on preferred stock |
11,553 | 48,183 | ||||||
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| Net Income applicable to common shareholders |
$ | 336,394 | $ | 414,297 | ||||
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| Income per share - basic |
$ | 0.19 | $ | 0.23 | ||||
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
| Year to Date | ||||||||||||||||
| March 31, | Change | |||||||||||||||
| 2012 | 2011 | Amount | Percentage | |||||||||||||
| INCOME STATEMENT |
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| Interest Income |
$ | 1,621 | $ | 1,588 | $ | 33 | 2.1 | % | ||||||||
| Interest Expense |
228 | 329 | (101 | ) | -30.7 | % | ||||||||||
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| Net Interest Income |
1,394 | 1,260 | 134 | 10.6 | % | |||||||||||
| Provision for loan loss |
20 | 39 | (19 | ) | -48.7 | % | ||||||||||
| Non-interest income |
484 | 325 | 159 | 48.9 | % | |||||||||||
| Non-interest expense |
1,338 | 1,083 | 255 | 23.5 | % | |||||||||||
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| Net Income before Income Taxes |
519 | 462 | 57 | 12.3 | % | |||||||||||
| Income tax expense |
171 | — | 171 | 0.0 | % | |||||||||||
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| Net Income |
348 | 462 | (115 | ) | -24.8 | % | ||||||||||
| Dividend and accretion on preferred stock |
12 | 48 | (37 | ) | -76.0 | % | ||||||||||
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| Net Income - common shareholders |
$ | 336 | $ | 414 | $ | (78 | ) | -18.8 | % | |||||||
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| Income per share - basic & diluted |
$ | 0.19 | $ | 0.23 | $ | (0.04 | ) | -19.0 | % | |||||||
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| BALANCE SHEET DATA |
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| Total assets |
128,663 | 116,521 | 12,142 | 10.4 | % | |||||||||||
| Average Assets |
126,499 | 115,435 | 11,064 | 9.6 | % | |||||||||||
| Total loans |
106,628 | 98,205 | 8,423 | 8.6 | % | |||||||||||
| Allowance for loan loss (ALLL) |
1,594 | 1,487 | 107 | 7.2 | % | |||||||||||
| Total deposits |
111,774 | 104,588 | 7,186 | 6.9 | % | |||||||||||
| Other borrowings |
— | — | — | 0.0 | % | |||||||||||
| Shareholders’ equity |
16,297 | 11,403 | 4,893 | 42.9 | % | |||||||||||
| Average Equity |
16,206 | 11,167 | 5,039 | 45.1 | % | |||||||||||
| ASSET QUALITY |
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| Other real estate owned (OREO) |
— | — | — | 0.0 | % | |||||||||||
| Net charge-offs |
— | — | — | 0.0 | % | |||||||||||
| Non-accrual loans |
— | 298 | (298 | ) | -100.0 | % | ||||||||||
| (2) Non-performing assets (NPA) |
— | 298 | (298 | ) | -100.0 | % | ||||||||||
| Non-accrual loans / total loans |
0.00 | % | 0.30 | % | -0.30 | % | -100.0 | % | ||||||||
| Allowance for loan loss / total loans |
1.50 | % | 1.51 | % | -0.02 | % | -1.3 | % | ||||||||
| PERFORMANCE MEASUREMENTS |
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| Net interest margin (tax equivalent) |
4.80 | % | 4.49 | % | 0.31 | % | 6.9 | % | ||||||||
| (1) Return on average assets (annualized) |
1.11 | % | 1.62 | % | -0.51 | % | -31.7 | % | ||||||||
| (3) Return on average assets (annualized) |
1.71 | % | 1.76 | % | -0.05 | % | -2.9 | % | ||||||||
| (1) Return on average common equity (annualized) |
12.08 | % | 24.17 | % | -12.09 | % | -50.0 | % | ||||||||
| (3) Return on average common equity (annualized) |
18.72 | % | 26.21 | % | -7.49 | % | -28.6 | % | ||||||||
| Efficiency ratio |
71.28 | % | 68.36 | % | 2.92 | % | 4.3 | % | ||||||||
| Tier 1 Leverage Ratio (Bank only) |
10.13 | % | 8.33 | % | 1.80 | % | 21.61 | % | ||||||||
| Equity / Assets |
12.67 | % | 9.79 | % | 2.88 | % | 29.4 | % | ||||||||
| Total loans / Total deposits |
95.4 | % | 93.9 | % | 1.50 | % | 1.6 | % | ||||||||
| Book value per share |
$ | 6.44 | $ | 4.44 | $ | 2.00 | 45.1 | % | ||||||||
| Income (loss) per share - basic & diluted |
$ | 0.19 | $ | 0.23 | $ | (0.04 | ) | -19.0 | % | |||||||
| Shares outstanding |
1,812,662 | 1,800,000 | 12,662 | 0.7 | % | |||||||||||
| Average shares outstanding |
1,812,662 | 1,800,000 | 12,662 | 0.7 | % | |||||||||||
| (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 | ||||||||||||||||||||
| March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
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| INCOME STATEMENT |
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| Interest Income |
$ | 1,621 | $ | 1,630 | $ | 1,582 | $ | 1,565 | $ | 1,588 | ||||||||||
| Interest Expense |
228 | 280 | 301 | 314 | 329 | |||||||||||||||
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| Net Interest Income |
1,394 | 1,350 | 1,281 | 1,251 | 1,260 | |||||||||||||||
| Provision for loan loss |
20 | 75 | 105 | 15 | 39 | |||||||||||||||
| Non-interest income |
484 | 309 | 319 | 280 | 325 | |||||||||||||||
| Non-interest expense |
1,338 | 1,484 | 1,317 | 1,207 | 1,083 | |||||||||||||||
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| Net Income before Income Taxes |
519 | 100 | 177 | 310 | 462 | |||||||||||||||
| Income tax expense (benefit) |
171 | (2,885 | ) | — | — | — | ||||||||||||||
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| Net Income |
348 | 2,985 | 177 | 310 | 462 | |||||||||||||||
| Dividend and accretion on preferred stock |
12 | 20 | 68 | 48 | 48 | |||||||||||||||
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| Net Income applicable to common shareholders |
$ | 336 | $ | 2,965 | $ | 109 | $ | 261 | $ | 414 | ||||||||||
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| Income per share - basic & diluted |
$ | 0.19 | $ | 1.64 | $ | 0.06 | $ | 0.15 | $ | 0.23 | ||||||||||
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| BALANCE SHEET DATA |
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| Total assets |
128,663 | 124,397 | 124,743 | 118,604 | 116,521 | |||||||||||||||
| Average Assets |
126,499 | 123,317 | 121,526 | 117,002 | 115,435 | |||||||||||||||
| Total loans |
106,628 | 106,298 | 102,580 | 100,079 | 98,205 | |||||||||||||||
| Allowance for loan loss (ALLL) |
1,594 | 1,574 | 1,499 | 1,502 | 1,487 | |||||||||||||||
| Total deposits |
111,774 | 107,678 | 111,171 | 106,305 | 104,588 | |||||||||||||||
| Other borrowings |
— | — | — | — | — | |||||||||||||||
| Shareholders’ equity |
16,297 | 15,965 | 13,056 | 11,696 | 11,403 | |||||||||||||||
| Average Equity |
16,206 | 13,584 | 12,520 | 11,481 | 11,167 | |||||||||||||||
| ASSET QUALITY |
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| Other real estate owned (OREO) |
— | 298 | 298 | 298 | — | |||||||||||||||
| Net charge-offs |
— | — | 108 | — | — | |||||||||||||||
| Non-accrual loans |
— | — | — | — | 298 | |||||||||||||||
| (2) Non-performing assets (NPA) |
— | 298 | 298 | 298 | 298 | |||||||||||||||
| Non-accrual loans / total loans |
0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.30 | % | ||||||||||
| Allowance for loan loss / total loans |
1.50 | % | 1.48 | % | 1.46 | % | 1.50 | % | 1.51 | % | ||||||||||
| PERFORMANCE MEASUREMENTS |
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| Net interest margin (tax equivalent) |
4.80 | % | 4.61 | % | 4.44 | % | 4.51 | % | 4.49 | % | ||||||||||
| (1) Return on average assets (annualized) |
1.11 | % | 9.60 | % | 0.58 | % | 1.06 | % | 1.62 | % | ||||||||||
| (3) Return on average assets (annualized) |
1.71 | % | 0.56 | % | 0.92 | % | 1.11 | % | 1.76 | % | ||||||||||
| (1) Return on average common equity (annualized) |
12.08 | % | 132.13 | % | 8.50 | % | 15.39 | % | 24.17 | % | ||||||||||
| (3) Return on average common equity (annualized) |
18.72 | % | 7.77 | % | 13.54 | % | 16.13 | % | 26.21 | % | ||||||||||
| Efficiency ratio |
71.28 | % | 89.43 | % | 82.37 | % | 78.80 | % | 68.36 | % | ||||||||||
| Tier 1 Leverage Ratio (Bank only) |
10.13 | % | 9.94 | % | 9.22 | % | 8.54 | % | 8.33 | % | ||||||||||
| Equity / Assets |
12.67 | % | 12.83 | % | 10.47 | % | 9.86 | % | 9.79 | % | ||||||||||
| Total loans / Total deposits |
95.4 | % | 98.7 | % | 92.3 | % | 94.1 | % | 93.9 | % | ||||||||||
| Book value per share |
$ | 6.44 | $ | 6.26 | $ | 4.65 | $ | 4.60 | $ | 4.44 | ||||||||||
| Income (loss) per share - basic & diluted |
$ | 0.19 | $ | 1.64 | $ | 0.06 | $ | 0.15 | $ | 0.23 | ||||||||||
| Shares outstanding |
1,812,662 | 1,812,662 | 1,812,662 | 1,800,000 | 1,800,000 | |||||||||||||||
| Average shares outstanding |
1,812,662 | 1,812,662 | 1,801,652 | 1,800,000 | 1,800,000 | |||||||||||||||
| (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 |