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8-K - FORM 8-K - Birmingham Bloomfield Bancshares | k50603e8vk.htm |
Exhibit 99.1
Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
July 26, 2011
For Immediate Release:
|
Contact: | Robert M. Farr Chief Executive Officer Birmingham Bloomfield Bancshares, Inc. 248-283-6430 |
Birmingham Bloomfield Bancshares, Inc.
Announces Continued Profitability with Second Quarter Results
Announces Continued Profitability with Second Quarter Results
BIRMINGHAM, MI Birmingham Bloomfield Bancshares, Inc. (OTC Bulletin Board: BBBI.OB) (the
Company), the holding company for Bank of Birmingham, today announced continued profitability and
record earnings for the first six months of 2011. The favorable results are a product of improved
margins, lower loan loss provision expense and increased noninterest income.
The Company reported net income of $261,000 or $0.15 per common share for the second quarter of
2011 compared to net income of $85,000 or $0.05 per common share for the same period of 2010. Net
income for the six month period ended June 30, 2011 was $676,000 or $0.38 per common share compared
to $67,000 or $0.04 per common share for the same period last year.
Results of Operation
The Company continues to experience an increase in net interest income as a result of growth in the
loan portfolio, higher yields on earning assets and lower net funding costs. Net interest income
for the second quarter of 2011 was $1.251 million an increase of 17.3% compared to the same period
last year. Net interest margin continued the trend of quarterly improvement reaching 4.51% for the
period. Net interest income for the first six months of 2011 increased 24.6% to $2.511 million
compared to the same period ended June 30, 2010. Net interest margin for the six month period ended
June 30, 2011 was 4.50% compared to 4.08% for the same period last year.
Provision expense for the second quarter of 2011 was $15,000, a decrease of $162,000 from the same
period last year and $24,000 less than March 31, 2011. Total provision expense for the year to date
period ending June 30, 2011 was $54,000 a reduction of $235,000 relative to same period of 2010.
The lower provision expense reported for the current year is directly attributable to the improved
credit quality of the loan portfolio and limited number of nonperforming assets. The Company did
not experience any charge offs during the first six months of 2011, compared to $296,000 for the
same period last year.
Revenue from non-interest income sources continue to positively impact the performance
5
Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
of the Company. Noninterest income for the second quarter of 2011 was $280,000 an increase of $243,000
compared to the same period last year. Total non-interest income for the six month period ended
June 30, 2011 reached $605,000, an increase of $541,000 relative to the same period of 2010. The
improvement is a result of an increase in the volume of residential loans sold in the secondary
market and Small Business Administration (SBA) loan activity. Mortgage related income for the
three and six month period ended June 30, 2011 was $47,000 and $59,000, respectively. SBA loan
sales generated revenue of $209,000 during the second quarter of 2011 and $501,000 for the six
month period ended June 30, 2011. The mortgage and SBA revenue sources are new for the Company in
2011.
Total non-interest expense for the second quarter of 2011 was $1.207 million, an increase of
$414,000 compared to the same period of last year and marginally higher than the $1.083 million
reported at March 31, 2011. Year to date non-interest expense for 2011 totaled $2.290 million, an
increase of $664,000 relative to the same period last year. The increase in expenses relative to
the prior year periods are the result of costs associated with developing the mortgage division,
adding additional loan production offices for mortgage activity, hiring additional personnel and
engaging professionals to assist the Company with strategic objectives.
Balance Sheet
Total assets as of June 30, 2011 were $118.604 million, a modest increase from the period ended
March 31, 2011, and a 7.5% increase from December 31, 2010. The balance sheet growth is the direct
result of an increase in loan and deposit balances. The Company continues to focus on generating
core, organic growth in our primary markets, by providing a diverse portfolio of products. The
asset quality of the Company remains strong. Nonperforming assets as of June 30, 2011 totaled
$298,000 and the allowance for loan loss represented 1.50% of total loans. At June 30, 2011 the
Companys book value was $4.60 and the subsidiary Bank continues to be classified as well
capitalized based on regulatory capital guidelines.
Chief Executive Officer Rob Farr issued the results and commented we are excited to report the
positive results of the Company for the first six months of 2011. We have been able to achieve a
Return on Average Assets before preferred dividends of 1.34% and maintain a strong margin given the
difficult interest rate environment and economy. Our core profitability continues to perform above
peer and provide value to the franchise. The results of the Company are a direct result of the
strategic initiatives management and the Board have implemented over the past 12 months. We look
forward to the remainder of the 2011 and the future of the organization.
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
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Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
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 banks services.
Birmingham Bloomfield Bancshares, Inc. marketmakers include Howe Barnes Hoefer and Arnett (acquired
by Raymond James), Chicago; Monroe Securities, Chicago; Hill, Thompson, Magid & Co; Jersey City,
New Jersey; 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 Corporations filings with the Securities and Exchange
Commission, available free via EDGAR. The Corporation assumes no responsibility to update
forward-looking statements.
(Unaudited Consolidated Financial Statements Follow)
7
Birmingham Bloomfield Bancshares, Inc.
Consolidated Balance Sheet (Unaudited)
Consolidated Balance Sheet (Unaudited)
June 30, | December 31, | June 30, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
ASSETS |
||||||||||||
Cash and due from banks |
$ | 13,251,574 | $ | 5,300,368 | $ | 15,250,255 | ||||||
Federal funds sold |
| 65,936 | 34,492 | |||||||||
Total cash and cash equivalents |
13,251,574 | 5,366,304 | 15,284,747 | |||||||||
Securities available-for-sale |
2,951,686 | 3,200,002 | 4,030,157 | |||||||||
Securities held-to-maturity |
| | | |||||||||
Federal Home Loan Bank Stock |
169,900 | 160,200 | 162,100 | |||||||||
Total securities |
3,121,586 | 3,360,202 | 4,192,257 | |||||||||
Loans held for Sale |
793,209 | 322,500 | | |||||||||
Portfolio loans |
||||||||||||
Consumer loans |
1,065,737 | 1,054,573 | 793,309 | |||||||||
Mortgage loans |
10,545,335 | 11,335,007 | 10,592,809 | |||||||||
Commercial loans |
88,467,511 | 87,989,098 | 78,818,713 | |||||||||
Total loans |
100,078,583 | 100,378,678 | 90,204,831 | |||||||||
Less: Allowance for loan loss |
1,502,099 | 1,448,096 | 1,167,482 | |||||||||
Net loans |
98,576,484 | 98,930,582 | 89,037,349 | |||||||||
Premises and equipment, net |
1,480,407 | 1,359,510 | 1,408,849 | |||||||||
Accrued interest receivable and other assets |
1,380,689 | 995,438 | 1,066,513 | |||||||||
TOTAL ASSETS |
$ | 118,603,949 | $ | 110,334,536 | $ | 110,989,715 | ||||||
LIABILITIES |
||||||||||||
Deposits |
||||||||||||
Noninterest-bearing |
$ | 16,374,765 | $ | 14,190,295 | $ | 11,815,643 | ||||||
Interest-bearing |
89,930,476 | 83,060,199 | 87,988,239 | |||||||||
Total deposits |
106,305,241 | 97,250,494 | 99,803,882 | |||||||||
Short term borrowings |
| 1,469,095 | | |||||||||
Accrued interest payable, taxes and other liabilities |
602,245 | 629,422 | 363,905 | |||||||||
Total liabilities |
106,907,486 | 99,349,011 | 100,167,787 | |||||||||
SHAREHOLDERS EQUITY |
||||||||||||
Senior preferred stock A |
1,635,000 | 1,635,000 | 1,635,000 | |||||||||
Discount on senior preferred stock A |
(51,826 | ) | (61,027 | ) | (70,176 | ) | ||||||
Warrant preferred stock B |
82,000 | 82,000 | 82,000 | |||||||||
Premium on warrant preferred stock B |
5,633 | 6,634 | 7,628 | |||||||||
Senior preferred stock C |
1,744,000 | 1,744,000 | 1,744,000 | |||||||||
Discount on senior preferred stock C |
| | | |||||||||
Common Stock, no par value |
17,034,330 | 17,034,330 | 17,034,330 | |||||||||
Authorized 4,500,000 shares |
||||||||||||
Issued and outstanding 1,800,000 shares |
||||||||||||
Accumulated other comprehensive income |
139,975 | 112,908 | 128,195 | |||||||||
Additional paid in capital |
| | | |||||||||
Additional paid in capital share based payments |
493,154 | 493,154 | 493,154 | |||||||||
Accumulated deficit |
(9,385,803 | ) | (10,061,474 | ) | (10,232,203 | ) | ||||||
Total shareholders equity |
11,696,463 | 10,985,525 | 10,821,928 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 118,603,949 | $ | 110,334,536 | $ | 110,989,715 | ||||||
Book value per share |
$ | 4.60 | $ | 4.21 | $ | 4.12 |
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
Consolidated Statement of Income (Unaudited)
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest Income |
||||||||||||||||
Interest and fees on loans |
||||||||||||||||
Commercial loans |
$ | 1,401,178 | $ | 1,256,460 | $ | 2,814,965 | $ | 2,365,979 | ||||||||
Installment loans |
13,459 | 10,476 | 26,547 | 18,925 | ||||||||||||
Mortgage loans |
15,644 | 18,860 | 35,169 | 35,869 | ||||||||||||
Home Equity loans |
97,661 | 89,812 | 195,592 | 178,561 | ||||||||||||
Late charges and fees |
6,302 | 5,149 | 17,780 | 13,562 | ||||||||||||
Total loan interest and fee income |
1,534,244 | 1,380,757 | 3,090,053 | 2,612,896 | ||||||||||||
Interest bearing deposits |
5,733 | 5,711 | 10,351 | 11,316 | ||||||||||||
Federal Funds Sold |
| 519 | 13 | 1,248 | ||||||||||||
Interest on investment securities |
||||||||||||||||
Taxable |
24,811 | 31,357 | 52,722 | 66,055 | ||||||||||||
Tax-exempt |
| | | | ||||||||||||
Total investment income |
24,811 | 31,357 | 52,722 | 66,055 | ||||||||||||
Total interest income |
1,564,788 | 1,418,344 | 3,153,139 | 2,691,515 | ||||||||||||
Interest Expense |
||||||||||||||||
Interest on deposits |
313,877 | 351,733 | 627,932 | 675,979 | ||||||||||||
Interest on borrowed funds |
| | 14,509 | | ||||||||||||
Total interest expense |
313,877 | 351,733 | 642,441 | 675,979 | ||||||||||||
Net Interest Income |
1,250,911 | 1,066,611 | 2,510,698 | 2,015,536 | ||||||||||||
Provision for loan losses |
15,000 | 176,892 | 54,000 | 289,297 | ||||||||||||
Net Interest Income After Provision for Loan Losses |
1,235,911 | 889,719 | 2,456,698 | 1,726,239 | ||||||||||||
Non-interest Income |
||||||||||||||||
Service charge income |
12,589 | 12,443 | 24,161 | 22,078 | ||||||||||||
Mortgage banking activities |
47,322 | | 58,761 | | ||||||||||||
Other income |
220,253 | 24,435 | 522,351 | 41,822 | ||||||||||||
Total non-interest income |
280,164 | 36,878 | 605,273 | 63,900 | ||||||||||||
Non-interest Expense |
||||||||||||||||
Salaries and employee benefits |
643,368 | 356,383 | 1,225,385 | 757,007 | ||||||||||||
Occupancy expense |
125,583 | 101,841 | 243,685 | 220,475 | ||||||||||||
Equipment expense |
42,188 | 34,492 | 77,588 | 70,069 | ||||||||||||
Loss on branch closing |
| | | | ||||||||||||
Advertising |
44,697 | 46,960 | 80,743 | 52,240 | ||||||||||||
Data Processing |
60,560 | 49,580 | 109,573 | 105,130 | ||||||||||||
Professional fees |
145,916 | 98,177 | 257,440 | 166,388 | ||||||||||||
Other expense |
144,207 | 104,612 | 295,521 | 254,939 | ||||||||||||
Total non-interest expense |
1,206,519 | 792,045 | 2,289,935 | 1,626,248 | ||||||||||||
Net Income (Loss) Before Income Taxes |
309,556 | 134,552 | 772,036 | 163,891 | ||||||||||||
Income tax expense |
| | | | ||||||||||||
Net Income (Loss) |
309,556 | 134,552 | 772,036 | 163,891 | ||||||||||||
Dividend and accretion on preferred stock |
48,182 | 49,207 | 96,365 | 96,658 | ||||||||||||
Net Income (Loss) applicable to common shareholders |
$ | 261,374 | $ | 85,345 | $ | 675,671 | $ | 67,233 | ||||||||
Income (Loss) per share basic |
$ | 0.15 | $ | 0.05 | $ | 0.38 | $ | 0.04 |
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date | ||||||||||||||||
June 30, | Change | |||||||||||||||
2011 | 2010 | Amount | Percentage | |||||||||||||
INCOME STATEMENT |
||||||||||||||||
Interest Income |
$ | 3,153 | $ | 2,692 | $ | 462 | 17.2 | % | ||||||||
Interest Expense |
642 | 676 | (34 | ) | -5.0 | % | ||||||||||
Net Interest Income |
2,511 | 2,016 | 495 | 24.6 | % | |||||||||||
Provision for loan loss |
54 | 289 | (235 | ) | -81.3 | % | ||||||||||
Non-interest income |
605 | 64 | 541 | 847.2 | % | |||||||||||
Non-interest expense |
2,290 | 1,626 | 664 | 40.8 | % | |||||||||||
Income (loss) before Income Taxes |
772 | 164 | 608 | 371.1 | % | |||||||||||
Income tax expense |
| | | 0.0 | % | |||||||||||
Net Income (Loss) |
772 | 164 | 608 | 371.1 | % | |||||||||||
Dividend and accretion
on preferred stock |
96 | 97 | (0 | ) | -0.3 | % | ||||||||||
Net Income (Loss) common shareholders |
$ | 676 | $ | 67 | $ | 608 | 905.0 | % | ||||||||
Income (loss) per share basic & diluted |
$ | 0.38 | $ | 0.04 | $ | 0.34 | 905.0 | % | ||||||||
BALANCE SHEET DATA |
||||||||||||||||
Total assets |
118,604 | 110,990 | 7,614 | 6.9 | % | |||||||||||
Average Assets |
116,223 | 102,266 | 13,957 | 13.6 | % | |||||||||||
Total loans |
100,079 | 90,205 | 9,874 | 10.9 | % | |||||||||||
Allowance for loan loss (ALLL) |
1,502 | 1,167 | 335 | 28.7 | % | |||||||||||
Total deposits |
106,305 | 99,804 | 6,501 | 6.5 | % | |||||||||||
Other borrowings |
| | | 0.0 | % | |||||||||||
Shareholders equity |
11,696 | 10,822 | 875 | 8.1 | % | |||||||||||
Average Equity |
11,325 | 10,746 | 579 | 5.4 | % | |||||||||||
ASSET QUALITY |
||||||||||||||||
Other real estate owned (OREO) |
298 | | 298 | 0.0 | % | |||||||||||
Net charge-offs |
| 296 | (296 | ) | -100.0 | % | ||||||||||
Non-accrual loans |
| | | 0.0 | % | |||||||||||
(2) Non-performing assets (NPA) |
298 | | 298 | 0.0 | % | |||||||||||
Non-accrual loans / total loans |
0.00 | % | 0.00 | % | 0.00 | % | 0.0 | % | ||||||||
Allowance for loan loss / total loans |
1.50 | % | 1.29 | % | 0.21 | % | 16.0 | % | ||||||||
PERFORMANCE MEASUREMENTS |
||||||||||||||||
Net interest margin (tax equivalent) |
4.50 | % | 4.08 | % | 0.42 | % | 10.3 | % | ||||||||
(1) Return on average assets (annualized) |
1.34 | % | 0.32 | % | 1.02 | % | 314.6 | % | ||||||||
(1) Return on average common equity (annualized) |
19.67 | % | 4.50 | % | 15.17 | % | 337.6 | % | ||||||||
Efficiency ratio |
73.49 | % | 78.21 | % | -4.72 | % | -6.0 | % | ||||||||
Tier 1 Leverage Ratio (Bank only) |
8.55 | % | 8.50 | % | 0.05 | % | 0.59 | % | ||||||||
Equity / Assets |
9.86 | % | 9.75 | % | 0.11 | % | 1.1 | % | ||||||||
Total loans / Total deposits |
94.1 | % | 90.4 | % | 3.76 | % | 4.2 | % | ||||||||
Book value per share |
$ | 4.60 | $ | 4.12 | $ | 0.48 | 11.6 | % | ||||||||
Income (loss) per share basic & diluted |
$ | 0.38 | $ | 0.04 | $ | 0.34 | 905.0 | % | ||||||||
Shares outstanding |
1,800,000 | 1,800,000 | | 0.0 | % |
(1) | Amount is computed on net income before preferred dividends. | |
(2) | Non-performing assets includes non-accrual loans and other real estate owned. |
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Quarter Ended | ||||||||||||||||||||
June 30, | March 31 | December 31, | September 30, | June 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||
INCOME STATEMENT |
||||||||||||||||||||
Interest Income |
$ | 1,565 | $ | 1,588 | $ | 1,554 | $ | 1,506 | $ | 1,418 | ||||||||||
Interest Expense |
314 | 329 | 327 | 337 | 352 | |||||||||||||||
Net Interest Income |
1,251 | 1,260 | 1,226 | 1,170 | 1,067 | |||||||||||||||
Provision for loan loss |
15 | 39 | 49 | 256 | 177 | |||||||||||||||
Non-interest income |
280 | 325 | 37 | 24 | 37 | |||||||||||||||
Non-interest expense |
1,207 | 1,083 | 1,046 | 840 | 792 | |||||||||||||||
Income (loss) before Income Taxes |
310 | 462 | 169 | 98 | 135 | |||||||||||||||
Income tax expense |
| | | | | |||||||||||||||
Net Income (Loss) |
310 | 462 | 169 | 98 | 135 | |||||||||||||||
Dividend and accretion
on preferred stock |
48 | 48 | 48 | 48 | 49 | |||||||||||||||
Net Income (Loss) applicable to common |
$ | 261 | $ | 414 | $ | 121 | $ | 50 | $ | 85 | ||||||||||
Income (loss) per share basic & diluted |
$ | 0.15 | $ | 0.23 | $ | 0.07 | $ | 0.03 | $ | 0.05 | ||||||||||
BALANCE SHEET DATA |
||||||||||||||||||||
Total assets |
118,604 | 116,521 | 110,335 | 111,254 | 110,990 | |||||||||||||||
Average Assets |
117,002 | 115,435 | 111,366 | 110,091 | 106,960 | |||||||||||||||
Total loans |
100,079 | 98,205 | 100,379 | 94,284 | 90,205 | |||||||||||||||
Allowance for loan loss (ALLL) |
1,502 | 1,487 | 1,448 | 1,424 | 1,167 | |||||||||||||||
Total deposits |
106,305 | 104,588 | 97,250 | 99,997 | 99,804 | |||||||||||||||
Other borrowings |
| | 1,469 | | | |||||||||||||||
Shareholders equity |
11,696 | 11,403 | 10,986 | 10,899 | 10,822 | |||||||||||||||
Average Equity |
11,481 | 11,167 | 10,942 | 10,860 | 10,770 | |||||||||||||||
ASSET QUALITY |
||||||||||||||||||||
Other real estate owned (OREO) |
298 | | | 298 | | |||||||||||||||
Net charge-offs |
| | 24 | | 265 | |||||||||||||||
Non-accrual loans |
| 298 | 298 | | | |||||||||||||||
(2) Non-performing assets (NPA) |
298 | 298 | 298 | 298 | | |||||||||||||||
Non-accrual loans / total loans |
0.00 | % | 0.30 | % | 0.30 | % | 0.00 | % | 0.00 | % | ||||||||||
Allowance for loan loss / total loans |
1.50 | % | 1.51 | % | 1.44 | % | 1.51 | % | 1.29 | % | ||||||||||
PERFORMANCE MEASUREMENTS |
||||||||||||||||||||
Net interest margin (tax equivalent) |
4.51 | % | 4.49 | % | 4.69 | % | 4.41 | % | 4.13 | % | ||||||||||
(1) Return on average assets (annualized) |
1.06 | % | 1.62 | % | 0.60 | % | 0.35 | % | 0.50 | % | ||||||||||
(1) Return on average common equity (annualized) |
15.39 | % | 24.17 | % | 8.89 | % | 5.21 | % | 7.32 | % | ||||||||||
Efficiency ratio |
78.80 | % | 68.36 | % | 82.78 | % | 70.39 | % | 71.78 | % | ||||||||||
Tier 1 Leverage Ratio (Bank only) |
8.55 | % | 8.33 | % | 8.15 | % | 8.19 | % | 8.53 | % | ||||||||||
Equity / Assets |
9.86 | % | 9.79 | % | 9.96 | % | 9.80 | % | 9.75 | % | ||||||||||
Total loans / Total deposits |
94.1 | % | 93.9 | % | 103.2 | % | 94.3 | % | 90.4 | % | ||||||||||
Book value per share |
$ | 4.60 | $ | 4.44 | $ | 4.21 | $ | 4.16 | $ | 4.12 | ||||||||||
Income (loss) per share basic & diluted |
$ | 0.15 | $ | 0.23 | $ | 0.07 | $ | 0.03 | $ | 0.05 | ||||||||||
Shares outstanding |
1,800,000 | 1,800,000 | 1,800,000 | 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. |