Birmingham Bloomfield Bancshares - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - Birmingham Bloomfield Bancshares	d303397d8k.htm

Exhibit 99.1


		Birmingham Bloomfield Bancshares, Inc.
		33583 Woodward Avenue
		Birmingham, MI 48009
		248-723-7200


February 21, 2012

For Immediate Release:	Contact:	Robert M. Farr
		Chief Executive Officer
		Birmingham Bloomfield Bancshares, Inc.
		248-283-6430

Birmingham Bloomfield Bancshares, Inc.

Announces Unaudited Fourth Quarter and Full Year Results for 2011

BIRMINGHAM, MI - Birmingham Bloomfield Bancshares, Inc. (OTC Bulletin Board: BBBI.OB) (“the Company”), the holding company for Bank of Birmingham, today announced results for the fourth quarter and full year period ending December 31, 2011. The performance reflects the improved earnings capacity of the organization as a result of an increase in margin, addition of new revenue sources and expanded product options.

The Company reported net income of $2,965,000 or $1.64 per common share for the fourth quarter of 2011 compared to net income of $121,000 or $0.07 per common share for the same period of 2010. Net income for the twelve month period ended December 31, 2011 was $3,750,000 or $2.08 per common share compared to $238,000 or $0.13 per common share for the same period last year. The results were positively impacted by the reversal of the Company’s Deferred Tax Asset valuation reserve representing $2,885,000 or $1.60 per common share in the fourth quarter of 2011. Excluding the impact of the one-time tax adjustment, full year net income after preferred dividends was $865,000 or $0.48 per common share.

Results of Operation

Net interest income, the core revenue of the Company continues to improve as a result of earning asset growth, reductions in funding costs and a more favorable asset mix. Net interest income for the fourth quarter of 2011 was $1.350 million an increase of 10.1% from the same period of 2010 and a 5.4% increase from the third quarter of 2011. Net interest margin improved to 4.61% for the fourth quarter of 2011 compared to 4.46% for the same period in 2010. For the year to date period ended December 31, 2011, net interest income increased 16.6% to $5,142,000 from $4,412,000 in 2010. Net interest margin for the full year of 2011 was 4.51% compared to 4.22% in 2010, an increase of 6.8% .

Provision expense for the fourth quarter of 2011 was $75,000, an increase of $26,000 from the same period in 2010 and $30,000 less than the previous quarter. The Company provided $234,000 in provision expense during 2011, a reduction of $360,000 from 2010. The decrease is directly related to the quality of the portfolio and a reduction in charge off volume. As of December 31, 2011, the Company had no non-accrual loans and net charge offs totaled $108,000, compared to $296,000 in 2010.

Birmingham Bloomfield Bancshares, Inc.

33583 Woodward Avenue

Birmingham, MI 48009

248-723-7200

Non-interest income continues to provide a significant contribution to the organization. Total non-interest income for the fourth quarter of 2011 was $309,000 an increase of $272,000 compared to the same period last year. Total non-interest income for the year to date period ending December 31, 2011 was $1,233,000 compared to $126,000 in 2010. The significant increase is attributable to new revenue from SBA loan sales and increased activity from the mortgage banking activity. The Company engaged in originating, selling and servicing the guaranteed portion of SBA 7(a) loans to investors during 2011 and recognized $702,000 in gain on sale and servicing income. Mortgage banking income represents the premium received on selling qualified residential loans in the secondary market. This generated $434,000 in revenue during 2011 compared to $12,000 in 2010. The increase was a result of higher volumes due to the low interest rate environment.

Total non-interest expense for the fourth quarter of 2011 was $1.484 million, an increase of $438,000 compared to the same period of the prior year. For the year ended December 31, 2011, total non-interest expense was $5,091,000 compared to $3,513,000 for 2010, an increase of $1,579,000. The increase was a result of additional costs associated with developing the residential mortgage operation, adding new personnel to accommodate future growth, expansion of the main office and increased business marketing efforts to improve franchise recognition.

Balance Sheet

Total assets as of December 31, 2011 were $124.397 million, a 12.7% increase from the prior year. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $106.298 million in 2011, an increase of $5.919 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 the product profile of the Company. The asset quality of the Company remains strong; nonperforming assets totaled $298,000 and the allowance for loan loss marginally increased to 1.48% of total portfolio loans. Total deposits were $107.678 million as of December 31, 2011 an increase of 10.7% from 2010. The growth was primarily in DDA and CD accounts and used to fund new loan activity. At December 31, 2011 the Company’s book value was $6.26 and the subsidiary bank continues to be classified as well capitalized based on regulatory guidelines.

Chief Executive Officer, Rob Farr issued the results and commented, “2011 was a very successful year for the Bank. We were able to generate meaningful asset growth, increase capital, improve margins, diversify earnings and maintain asset quality despite a difficult economic environment. This resulted in a pre-tax, pre-provision Return on Average Asset of 1.08%, earnings per share of $2.08 and a book value of $6.26. We are proud of what we accomplished and look forward to 2012.”

Birmingham Bloomfield Bancshares, Inc.

33583 Woodward Avenue

Birmingham, MI 48009

248-723-7200

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)

Birmingham Bloomfield Bancshares, Inc.

Consolidated Balance Sheet (Unaudited)


	December 31, 2011			December 31, 2010
ASSETS
Cash and due from banks	$	4,693,585		$	5,300,368
Federal funds sold		—			65,936

Total cash and cash equivalents		4,693,585			5,366,304
Securities available-for-sale		4,594,761			3,200,002
Securities held-to-maturity		—			—
Federal Home Loan Bank Stock		169,900			160,200

Total securities		4,764,661			3,360,202

Loans held for Sale		2,484,829			322,500

Portfolio loans
Consumer loans		1,305,501			1,054,573
Mortgage loans		11,572,620			11,335,006
Commercial loans		93,419,805			87,989,100

Total loans		106,297,926			100,378,678
Less: Allowance for loan loss		1,574,350			1,448,096

Net loans		104,723,576			98,930,582
Premises and equipment, net		1,395,187			1,359,510
Accrued interest receivable and other assets		6,335,623			995,438

*TOTAL ASSETS*	$	124,397,461		$	110,334,536


LIABILITIES
Deposits
Noninterest-bearing	$	19,662,283		$	14,190,296
Interest-bearing		88,015,546			83,060,199

Total deposits		107,677,829			97,250,495
Short term borrowings		—			1,469,095
Accrued interest payable, taxes and other liabilities		755,090			629,421

Total liabilities		108,432,919			99,349,011

SHAREHOLDERS’ EQUITY
Senior preferred stock, series A		—			1,635,000
Discount on senior preferred stock A		—			(61,027	)
Warrant preferred stock, series B		—			82,000
Premium on warrant preferred stock B		—			6,634
Senior preferred stock, series C		—			1,744,000
Discount on senior preferred stock C		—			—
Senior preferred stock, series D		4,621,000			—
Common Stock, no par value		17,066,618			17,034,330
Authorized – 4,500,000 shares, Issued and outstanding – 1,812,662 1,800,000 and 1,800,000 shares respectively
Accumulated other comprehensive income		95,168			112,908
Additional paid in capital		—			—
Additional paid in capital - share based payments		493,154			493,154
Accumulated deficit		(6,311,398	)		(10,061,474	)

Total shareholders’ equity		15,964,542			10,985,525

*TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY*	$	124,397,461		$	110,334,536

*Book value per share*	$	6.26		$	4.21

Birmingham Bloomfield Bancshares, Inc.

Consolidated Statement of Income (Unaudited)


	For the three months ended					For the twelve months ended
	December 31,					December 31,
	2011			2010		2011			2010
Interest Income
Interest and fees on loans
Commercial loans	$	1,447,603		$	1,377,251	$	5,681,704		$	5,073,769
Installment loans		18,791			13,953		61,959			46,148
Mortgage loans		29,878			19,793		86,382			75,863
Home Equity loans		96,215			96,669		385,921			369,294
Late charges and fees		6,370			6,408		27,610			22,923

*Total loan interest and fee income*		1,598,857			1,514,074		6,243,576			5,587,997

Interest bearing deposits		5,059			7,886		20,350			29,169
Federal Funds Sold		—			32		13			1,331

Interest on investment securities
Taxable		24,237			31,842		99,023			133,112
Tax-exempt		1,808			—		2,216			—

*Total investment income*		26,045			31,842		101,239			133,112

*Total interest income*		1,629,961			1,553,834		6,365,178			5,751,609

Interest Expense
Interest on deposits		279,386			324,905		1,208,513			1,337,544
Interest on borrowed funds		196			2,415		14,705			2,415

*Total interest expense*		279,582			327,320		1,223,218			1,339,959

*Net Interest Income*		1,350,379			1,226,514		5,141,960			4,411,650
Provision for loan losses		75,000			48,801		234,000			593,750

*Net Interest Income After Provision for Loan Losses*		1,275,379			1,177,713		4,907,960			3,817,900

Non-interest Income
Service charge income		16,074			15,612		55,443			52,266
Mortgage banking activities		267,194			12,002		434,339			12,002
SBA loan sales		14,704			—		701,588			—
Other income		10,973			9,562		41,399			61,280

*Total non-interest income*		308,944			37,176		1,232,768			125,548

Non-interest Expense
Salaries and employee benefits		800,178			484,752		2,755,204			1,641,944
Occupancy expense		129,655			112,185		518,634			442,456
Equipment expense		47,364			37,023		180,674			140,693
Advertising		81,057			37,645		191,076			114,612
Data Processing		56,227			28,530		223,179			190,530
Professional fees		110,035			131,634		473,438			379,256
Loan origination expense		138,051			19,417		224,324			78,018
Regulatory Assessments		12,010			95,574		127,941			217,436
Other expense		109,301			99,268		396,804			307,811

*Total non-interest expense*		1,483,879			1,046,028		5,091,275			3,512,756

*Net Income Before Income Taxes*		100,444			168,861		1,049,453			430,692
Income tax expense		(2,884,715	)		—		(2,884,715	)		—

*Net Income*		2,985,159			168,861		3,934,168			430,692
Dividend and accretion on preferred stock		19,732			47,799		184,092			192,730

*Net Income applicable to common shareholders*	$	2,965,427		$	121,062	$	3,750,076		$	237,962

*Income per share - basic*	$	1.64		$	0.07	$	2.08		$	0.13

Birmingham Bloomfield Bancshares, Inc.

Financial Summary and Selected Ratios (Unaudited)

(Dollars in thousands except per share data)


	Year to Date
	December 31,						Change
	2011			2010			Amount			Percentage
INCOME STATEMENT
Interest Income	$	6,365		$	5,752		$	614			10.7	%
Interest Expense		1,223			1,340			(117	)		-8.7	%

Net Interest Income		5,142			4,412			730			16.6	%
Provision for loan loss		234			594			(360	)		-60.6	%
Non-interest income		1,233			126			1,107			881.9	%
Non-interest expense		5,091			3,513			1,579			44.9	%

Net Income before Income Taxes		1,049			431			619			143.7	%
Income tax expense		(2,885	)		—			(2,885	)		0.0	%

Net Income		3,934			431			3,503			813.5	%
Dividend and accretion on preferred stock		184			193			(9	)		-4.5	%

Net Income - common shareholders	$	3,750		$	238		$	3,512			1475.9	%

Income per share - basic & diluted	$	2.08		$	0.13		$	1.95			1472.8	%


BALANCE SHEET DATA
Total assets		124,397			110,335			14,063			12.7	%
Average Assets		119,347			106,532			12,815			12.0	%
Total loans		106,298			100,379			5,919			5.9	%
Allowance for loan loss (ALLL)		1,574			1,448			126			8.7	%
Total deposits		107,678			97,250			10,427			10.7	%
Other borrowings		—			1,469			(1,469	)		-100.0	%
Shareholders’ equity		15,965			10,986			4,979			45.3	%
Average Equity		12,196			10,823			1,373			12.7	%

ASSET QUALITY
Other real estate owned (OREO)		298			—			298			0.0	%
Net charge-offs		108			296			(188	)		-63.5	%
Non-accrual loans		—			298			(298	)		-100.0	%
(2) Non-performing assets (NPA)		298			298			(0	)		-0.1	%
Non-accrual loans / total loans		0.00	%		0.30	%		-0.30	%		-100.0	%
Allowance for loan loss / total loans		1.48	%		1.44	%		0.04	%		2.7	%

PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent)		4.51	%		4.22	%		0.29	%		6.9	%
(1) Return on average assets (annualized)		3.30	%		0.40	%		2.90	%		716.3	%
(3) Return on average assets (annualized)		1.08	%		0.96	%		0.12	%		12.3	%
(1) Return on average common equity (annualized)		47.59	%		5.80	%		41.79	%		720.4	%
(3) Return on average common equity (annualized)		15.52	%		13.80	%		1.72	%		12.5	%
Efficiency ratio		79.87	%		77.42	%		2.45	%		3.2	%
Tier 1 Leverage Ratio (Bank only)		9.94	%		8.19	%		1.75	%		21.37	%
Equity / Assets		12.83	%		9.96	%		2.88	%		28.9	%
Total loans / Total deposits		98.7	%		103.2	%		-4.50	%		-4.4	%
Book value per share	$	6.26		$	4.21		$	2.05			48.6	%
Income (loss) per share - basic & diluted	$	2.08		$	0.13		$	1.95			1472.8	%
Shares outstanding		1,812,662			1,800,000			12,662			0.7	%
Average shares outstanding		1,803,608			1,800,000			3,608			0.2	%

(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 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010
INCOME STATEMENT
Interest Income	$	1,630		$	1,582		$	1,565		$	1,588		$	1,554
Interest Expense		280			301			314			329			327

Net Interest Income		1,350			1,281			1,251			1,260			1,226
Provision for loan loss		75			105			15			39			49
Non-interest income		309			319			280			325			37
Non-interest expense		1,484			1,317			1,207			1,083			1,046

Net Income before Income Taxes		100			177			310			462			169
Income tax expense		(2,885	)		—			—			—			—

Net Income		2,985			177			310			462			169
Dividend and accretion on preferred stock		20			68			48			48			48

Net Income applicable to common shareholders	$	2,965		$	109		$	261		$	414		$	121

Income per share - basic & diluted	$	1.64		$	0.06		$	0.15		$	0.23		$	0.07

BALANCE SHEET DATA
Total assets		124,397			124,743			118,604			116,521			110,335
Average Assets		123,317			121,526			117,002			115,435			111,366
Total loans		106,298			102,580			100,079			98,205			100,379
Allowance for loan loss (ALLL)		1,574			1,499			1,502			1,487			1,448
Total deposits		107,678			111,171			106,305			104,588			97,250
Other borrowings		—			—			—			—			1,469
Shareholders’ equity		15,965			13,056			11,696			11,403			10,986
Average Equity		13,584			12,520			11,481			11,167			10,942

ASSET QUALITY
Other real estate owned (OREO)		298			298			298			—			—
Net charge-offs		—			108			—			—			24
Non-accrual loans		—			—			—			298			298
(2) Non-performing assets (NPA)		298			298			298			298			298
Non-accrual loans / total loans		0.00	%		0.00	%		0.00	%		0.30	%		0.30	%
Allowance for loan loss / total loans		1.48	%		1.46	%		1.50	%		1.51	%		1.44	%

PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent)		4.61	%		4.44	%		4.51	%		4.49	%		4.46	%
(1) Return on average assets (annualized)		9.60	%		0.58	%		1.06	%		1.62	%		0.60	%
(3) Return on average assets (annualized)		0.56	%		0.92	%		1.11	%		1.76	%		0.78	%
(1) Return on average common equity (annualized)		132.13	%		8.50	%		15.39	%		24.17	%		8.89	%
(3) Return on average common equity (annualized)		7.77	%		13.54	%		16.13	%		26.21	%		11.45	%
Efficiency ratio		89.43	%		82.37	%		78.80	%		68.36	%		82.78	%
Tier 1 Leverage Ratio (Bank only)		9.94	%		9.22	%		8.54	%		8.33	%		8.15	%
Equity / Assets		12.83	%		10.47	%		9.86	%		9.79	%		9.96	%
Total loans / Total deposits		98.7	%		92.3	%		94.1	%		93.9	%		103.2	%
Book value per share	$	6.26		$	4.65		$	4.60		$	4.44		$	4.21
Income (loss) per share - basic & diluted	$	1.64		$	0.06		$	0.15		$	0.23		$	0.07
Shares outstanding		1,812,662			1,812,662			1,800,000			1,800,000			1,800,000
Average shares outstanding		1,812,662			1,801,652			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.

(3)	Amount is computed on pre-tax, pre-provision earnings before preferred dividends

Attached files

Stock widget

Investing forum

Birmingham Bloomfield Bancshares Reports