BIRMINGHAM, MI--(Marketwired - Apr 21, 2015) - Birmingham Bloomfield Bancshares, Inc. (
Chief Executive Officer, Rob Farr, issued the results and commented, "The core fundamentals continue to improve as reflected in the increase in our pre-tax, pre-provision net income. This is driven by our earning asset growth, solid profit margins and improved operating efficiency. We experienced strong loan growth for the quarter and reported a pre-tax, pre-provision ROA of 1.51%. Book value at March 31, 2015 reached $8.40, an increase of $0.80 over the past twelve months and our stock price has increased over 40% during this same period. We are focused on building value for our shareholders and continue to look for opportunities to enhance the organization."
Results of Operation
Total net interest income for the first quarter of 2015 increased 13.9% to $2.07 million, compared to $1.817 million for the first quarter of 2014. The increase in net interest income was the result of profitable growth in the earning asset portfolio. Net interest margin for the quarter was 4.10% compared to 4.17% for the most recent linked quarter and 4.23% for the first quarter of 2014. The margin compression was the result of the current rate environment, competitive banking landscape and change in the mix of the portfolio.
The Company provided $345,000 in provision expense during the quarter and the allowance relative to total loans was 1.27% at March 31, 2015. The provision expense is a function of new loan volume and additional reserves required for an impaired loan. There have been no net charge offs during the period, but total nonaccrual loans increased as the result of uncertainty associated with the future performance of a large loan relationship.
The Company generated non-interest income of $236,000 during the first three months of 2015, compared to $220,000 for the same period in 2014. The additional earnings were the result of an increase in mortgage and SBA loan volume sold in the secondary market generating higher revenue.
Total non-interest expense for the first quarter of 2015 was $1.505 million, an increase of $55,000 compared to the most recent linked quarter and 3.2% relative to the same period of 2014. The primary source of the increase was in salary expense as the organization invests in personnel to accommodate growth.
Balance Sheet
Total assets as of March 31, 2015 were $209.5 million, an increase of $15.3 million from the prior year. Total portfolio loans reached $189.6 million at the end of the first quarter, an increase of $6.8 million from December 31, 2014 and 17.4% from March 31, 2014. The growth is a function of our broad product options, strong presence in the business community and superior service from our knowledgeable staff. Total deposits as of March 31, 2015 were $187.9 million, an increase of $13.2 million from the first quarter of 2014. Total non-performing loans increased during the quarter to 1.18% of the portfolio as the result of the deterioration in one large loan relationship. 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, | |||||||||||||
2015 | 2014 | 2014 | |||||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 11,496,596 | $ | 15,593,072 | $ | 24,767,841 | |||||||||
Federal funds sold | - | - | - | ||||||||||||
Total cash and cash equivalents | 11,496,596 | 15,593,072 | 24,767,841 | ||||||||||||
Securities available-for-sale | 4,743,644 | 4,804,691 | 3,553,478 | ||||||||||||
Federal Home Loan Bank Stock | 281,900 | 281,900 | 248,000 | ||||||||||||
Total securities | 5,025,544 | 5,086,591 | 3,801,478 | ||||||||||||
Portfolio loans | |||||||||||||||
Consumer loans | 2,146,893 | 2,104,262 | 1,590,885 | ||||||||||||
Mortgage loans | 24,159,534 | 24,597,099 | 23,746,386 | ||||||||||||
Commercial leases | 27,318,069 | 27,234,054 | 16,204,219 | ||||||||||||
Commercial loans | 135,963,771 | 128,819,717 | 119,882,248 | ||||||||||||
Total loans | 189,588,267 | 182,755,132 | 161,423,738 | ||||||||||||
Less: Allowance for loan loss | 2,405,587 | 2,060,587 | 1,868,587 | ||||||||||||
Net loans | 187,182,680 | 180,694,545 | 159,555,151 | ||||||||||||
Premises and equipment, net | 1,077,830 | 1,097,025 | 1,229,103 | ||||||||||||
Bank owned life insurance | 2,339,548 | 2,323,240 | 2,272,967 | ||||||||||||
Deferred Tax Asset | 1,159,450 | 1,052,423 | 1,487,375 | ||||||||||||
Accrued interest receivable and other assets | 1,248,262 | 1,176,587 | 1,118,468 | ||||||||||||
TOTAL ASSETS | $ | 209,529,910 | $ | 207,023,483 | $ | 194,232,383 | |||||||||
LIABILITIES | |||||||||||||||
Deposits | |||||||||||||||
Noninterest-bearing | $ | 45,402,460 | $ | 45,886,004 | $ | 39,937,216 | |||||||||
Interest-bearing | 142,561,877 | 140,140,219 | 134,818,744 | ||||||||||||
Total deposits | 187,964,337 | 186,026,223 | 174,755,960 | ||||||||||||
Short term borrowings | - | - | - | ||||||||||||
Accrued interest payable, taxes and other liabilities | 1,302,171 | 1,069,698 | 828,051 | ||||||||||||
Total liabilities | 189,266,508 | 187,095,922 | 175,584,011 | ||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||
Senior preferred stock, series D | 4,621,000 | 4,621,000 | 4,621,000 | ||||||||||||
Common Stock, no par value | 17,316,585 | 17,281,679 | 17,212,379 | ||||||||||||
Authorized - 9,000,000 shares, Issued and outstanding - 1,861,632 | |||||||||||||||
1,857,128 and 1,846,128 shares respectively | |||||||||||||||
Accumulated other comprehensive income | 48,156 | 35,634 | 36,319 | ||||||||||||
Additional paid in capital - share based payments | 493,154 | 493,154 | 493,154 | ||||||||||||
Accumulated deficit | (2,215,492 | ) | (2,503,906 | ) | (3,714,480 | ) | |||||||||
Total shareholders' equity | 20,263,403 | 19,927,561 | 18,648,372 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 209,529,910 | $ | 207,023,483 | $ | 194,232,383 | |||||||||
Book value per share | $ | 8.40 | $ | 8.24 | $ | 7.60 | |||||||||
Birmingham Bloomfield Bancshares, Inc. | |||||||||
Consolidated Statement of Income (Unaudited) | |||||||||
For the three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest Income | |||||||||
Interest and fees on loans | |||||||||
Commercial loans | $ | 1,677,226 | $ | 1,593,927 | |||||
Commercial leases | 321,105 | 182,801 | |||||||
Consumer loans | 28,052 | 24,446 | |||||||
Mortgage loans | 143,112 | 141,900 | |||||||
Home Equity loans | 106,275 | 95,537 | |||||||
Late charges and fees | 26,316 | 4,121 | |||||||
Total loan interest and fee income | 2,302,087 | 2,042,732 | |||||||
Interest bearing deposits | 11,380 | 8,170 | |||||||
Federal Funds Sold | 62 | - | |||||||
Interest on investment securities | |||||||||
Taxable | 23,421 | 19,177 | |||||||
Tax-exempt | - | 942 | |||||||
Total investment income | 23,421 | 20,119 | |||||||
Total interest income | 2,336,949 | 2,071,021 | |||||||
Interest Expense | |||||||||
Interest on deposits | 267,198 | 253,907 | |||||||
Interest on borrowed funds | 1 | - | |||||||
Total interest expense | 267,199 | 253,907 | |||||||
Net Interest Income | 2,069,750 | 1,817,114 | |||||||
Provision for loan losses | 345,000 | - | |||||||
Net Interest Income After Provision for Loan Losses | 1,724,750 | 1,817,114 | |||||||
Non-interest Income | |||||||||
Service charge income | 26,509 | 22,272 | |||||||
Mortgage banking activities | 28,216 | 29,593 | |||||||
SBA loan sales | 148,872 | 139,364 | |||||||
Other income | 32,522 | 29,140 | |||||||
Total non-interest income | 236,119 | 220,369 | |||||||
Non-interest Expense | |||||||||
Salaries and employee benefits | 871,056 | 822,433 | |||||||
Occupancy expense | 133,713 | 143,488 | |||||||
Equipment expense | 45,057 | 47,085 | |||||||
Advertising | 67,110 | 46,216 | |||||||
Data Processing | 69,478 | 71,570 | |||||||
Professional fees | 117,774 | 136,814 | |||||||
Loan origination expense | 45,014 | 46,386 | |||||||
Regulatory Assessments | 42,040 | 37,384 | |||||||
Other expense | 113,760 | 106,600 | |||||||
Total non-interest expense | 1,505,002 | 1,457,976 | |||||||
Net Income Before Income Taxes | 455,867 | 579,507 | |||||||
Income tax expense | 155,901 | 197,581 | |||||||
Net Income | 299,966 | 381,926 | |||||||
Dividend on preferred stock | 11,553 | 11,553 | |||||||
Net Income applicable to common shareholders | $ | 288,413 | $ | 370,373 | |||||
Income per share - basic | $ | 0.16 | $ | 0.20 | |||||
Birmingham Bloomfield Bancshares, Inc. | |||||||||||||||||
Financial Summary and Selected Ratios (Unaudited) | |||||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||||
Year to Date | |||||||||||||||||
March 31, | Change | ||||||||||||||||
2015 | 2014 | Amount | Percentage | ||||||||||||||
INCOME STATEMENT | |||||||||||||||||
Interest Income | $ | 2,337 | $ | 2,071 | $ | 266 | 12.8 | % | |||||||||
Interest Expense | 267 | 254 | 13 | 5.2 | % | ||||||||||||
Net Interest Income | 2,070 | 1,817 | 253 | 13.9 | % | ||||||||||||
Provision for loan loss | 345 | - | 345 | 0.0 | % | ||||||||||||
Non-interest income | 236 | 220 | 16 | 7.1 | % | ||||||||||||
Non-interest expense | 1,505 | 1,458 | 47 | 3.2 | % | ||||||||||||
Net Income before Income Taxes | 456 | 580 | (124 | ) | -21.3 | % | |||||||||||
Income tax expense | 156 | 198 | (42 | ) | -21.1 | % | |||||||||||
Net Income | 300 | 382 | (82 | ) | -21.5 | % | |||||||||||
Dividend on preferred stock | 12 | 12 | - | 0.0 | % | ||||||||||||
Net Income - common shareholders | $ | 288 | $ | 370 | $ | (82 | ) | -22.1 | % | ||||||||
Income per share - basic & diluted | $ | 0.16 | $ | 0.20 | $ | (0.05 | ) | -22.8 | % | ||||||||
BALANCE SHEET DATA | |||||||||||||||||
Total assets | 209,530 | 194,232 | 15,298 | 7.9 | % | ||||||||||||
Average Assets | 214,806 | 192,378 | 22,428 | 11.7 | % | ||||||||||||
Total loans | 189,588 | 161,424 | 28,165 | 17.4 | % | ||||||||||||
Allowance for loan loss (ALLL) | 2,406 | 1,869 | 537 | 28.7 | % | ||||||||||||
Total deposits | 187,964 | 174,756 | 13,208 | 7.6 | % | ||||||||||||
Other borrowings | - | - | - | 0.0 | % | ||||||||||||
Shareholders' equity | 20,263 | 18,648 | 1,615 | 8.7 | % | ||||||||||||
Average Equity | 20,163 | 18,459 | 1,704 | 9.2 | % | ||||||||||||
ASSET QUALITY | |||||||||||||||||
Other real estate owned (OREO) | - | - | - | 0.0 | % | ||||||||||||
Net charge-offs | - | - | - | 0.0 | % | ||||||||||||
Non-accrual loans | 2,237 | 223 | 2,014 | 904.7 | % | ||||||||||||
(2) | Non-performing assets (NPA) | 2,237 | 223 | 2,014 | 904.7 | % | |||||||||||
Non-accrual loans / total loans | 1.18 | % | 0.14 | % | 1.04 | % | 755.4 | % | |||||||||
Allowance for loan loss / total loans | 1.27 | % | 1.16 | % | 0.11 | % | 9.6 | % | |||||||||
PERFORMANCE MEASUREMENTS | |||||||||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.23 | % | -0.13 | % | -3.1 | % | |||||||||
(1) | Return on average assets (annualized) | 0.57 | % | 0.81 | % | -0.24 | % | -29.6 | % | ||||||||
(3) | Return on average assets (annualized) | 1.51 | % | 1.22 | % | 0.29 | % | 23.8 | % | ||||||||
(1) | Return on average common equity (annualized) | 7.83 | % | 11.19 | % | -3.36 | % | -30.0 | % | ||||||||
(3) | Return on average common equity (annualized) | 20.90 | % | 16.98 | % | 3.92 | % | 23.1 | % | ||||||||
Efficiency ratio | 65.3 | % | 71.6 | % | -6.29 | % | -8.8 | % | |||||||||
Total loans / Total deposits | 100.9 | % | 92.4 | % | 8.49 | % | 9.2 | % | |||||||||
Tier 1 Leverage Ratio (Bank only) | 8.65 | % | 8.67 | % | -0.02 | % | -0.23 | % | |||||||||
Equity / Assets | 9.67 | % | 9.60 | % | 0.07 | % | 0.7 | % | |||||||||
Tangible common equity / Total assets | 7.47 | % | 7.22 | % | 0.24 | % | 3.4 | % | |||||||||
Book value per share | $ | 8.40 | $ | 7.60 | $ | 0.80 | 10.6 | % | |||||||||
Stock price | $ | 8.40 | $ | 5.95 | $ | 2.45 | 41.2 | % | |||||||||
Stock price / book value (%) | 100.0 | % | 78.3 | % | 21.68 | % | 27.7 | % | |||||||||
Income per share - basic & diluted | $ | 0.16 | $ | 0.20 | $ | (0.05 | ) | -22.8 | % | ||||||||
Income per share - basic & diluted (LTM) | $ | 0.81 | $ | 0.70 | $ | 0.11 | 15.7 | % | |||||||||
Price to earnings ratio (P/E) (year to date) | 13.4x | 7.3x | 6.1x | 82.9 | % | ||||||||||||
Shares outstanding | 1,861,632 | 1,846,128 | 15,504 | 0.8 | % | ||||||||||||
Average shares outstanding | 1,860,181 | 1,844,130 | 16,051 | 0.9 | % | ||||||||||||
(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, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||||
Interest Income | $ | 2,337 | $ | 2,347 | $ | 2,218 | $ | 2,146 | $ | 2,071 | ||||||||||||
Interest Expense | 567 | 258 | 270 | 277 | 254 | |||||||||||||||||
Net Interest Income | 2,070 | 2,089 | 1,949 | 1,870 | 1,817 | |||||||||||||||||
Provision for loan loss | 345 | 167 | 25 | - | - | |||||||||||||||||
Non-interest income | 236 | 174 | 197 | 134 | 220 | |||||||||||||||||
Non-interest expense | 1,505 | 1,450 | 1,408 | 1,460 | 1,458 | |||||||||||||||||
Net Income before Income Taxes | 456 | 645 | 712 | 544 | 580 | |||||||||||||||||
Income tax expense | 156 | 221 | 248 | 187 | 198 | |||||||||||||||||
Net Income | 300 | 424 | 464 | 357 | 382 | |||||||||||||||||
Dividend on preferred stock | 12 | 12 | 12 | 12 | 12 | |||||||||||||||||
Net Income applicable to common shareholders | $ | 288 | $ | 413 | $ | 453 | $ | 345 | $ | 370 | ||||||||||||
Income per share - basic & diluted | $ | 0.16 | $ | 0.22 | $ | 0.24 | $ | 0.19 | $ | 0.20 | ||||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||||
Total assets | 209,530 | 207,023 | 204,715 | 205,074 | 194,232 | |||||||||||||||||
Average Assets | 214,806 | 208,493 | 206,489 | 204,198 | 192,378 | |||||||||||||||||
Total loans | 189,588 | 182,755 | 170,553 | 165,928 | 161,424 | |||||||||||||||||
Allowance for loan loss (ALLL) | 2,406 | 2,061 | 1,894 | 1,869 | 1,869 | |||||||||||||||||
Total deposits | 187,964 | 186,026 | 184,323 | 185,097 | 174,756 | |||||||||||||||||
Other borrowings | - | - | - | - | - | |||||||||||||||||
Shareholders' equity | 20,263 | 19,928 | 19,511 | 19,065 | 18,648 | |||||||||||||||||
Average Equity | 20,163 | 19,748 | 19,287 | 18,824 | 18,459 | |||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||
Other real estate owned (OREO) | - | - | - | - | - | |||||||||||||||||
Net charge-offs | - | - | - | - | - | |||||||||||||||||
Non-accrual loans | 2,237 | 187 | 187 | 192 | 223 | |||||||||||||||||
(2) | Non-performing assets (NPA) | 2,237 | 187 | 187 | 192 | 223 | ||||||||||||||||
Non-accrual loans / total loans | 1.18 | % | 0.10 | % | 0.11 | % | 0.12 | % | 0.14 | % | ||||||||||||
Allowance for loan loss / total loans | 1.27 | % | 1.13 | % | 1.11 | % | 1.13 | % | 1.16 | % | ||||||||||||
PERFORMANCE MEASUREMENTS | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.17 | % | 3.92 | % | 3.95 | % | 4.23 | % | ||||||||||||
(1) | Return on average assets (annualized) | 0.00 | % | 0.81 | % | 0.89 | % | 0.70 | % | 0.81 | % | |||||||||||
(3) | Return on average assets (annualized) | 0.00 | % | 1.55 | % | 1.42 | % | 1.07 | % | 1.22 | % | |||||||||||
(1) | Return on average common equity (annualized) | 0.00 | % | 11.13 | % | 12.55 | % | 10.08 | % | 11.19 | % | |||||||||||
(3) | Return on average common equity (annualized) | 0.00 | % | 21.30 | % | 19.95 | % | 15.37 | % | 16.98 | % | |||||||||||
Efficiency ratio | 65.3 | % | 64.1 | % | 65.6 | % | 72.8 | % | 71.6 | % | ||||||||||||
Total loans / Total deposits | 100.9 | % | 98.2 | % | 92.5 | % | 89.6 | % | 92.4 | % | ||||||||||||
Tier 1 Leverage Ratio (Bank only) | 8.65 | % | 8.61 | % | 8.49 | % | 8.36 | % | 8.67 | % | ||||||||||||
Equity / Assets | 9.67 | % | 9.63 | % | 9.53 | % | 9.30 | % | 9.60 | % | ||||||||||||
Tangible common equity / Total assets | 7.47 | % | 7.39 | % | 7.27 | % | 7.04 | % | 7.22 | % | ||||||||||||
Book value per share | $ | 8.40 | $ | 8.24 | $ | 8.02 | $ | 7.78 | $ | 7.60 | ||||||||||||
Stock price | $ | 8.40 | $ | 7.75 | $ | 7.05 | $ | 6.50 | $ | 5.95 | ||||||||||||
Stock price / book value (%) | 100.0 | % | 94.0 | % | 87.9 | % | 83.6 | % | 78.3 | % | ||||||||||||
Income per share - basic & diluted | $ | 0.16 | $ | 0.22 | $ | 0.24 | $ | 0.19 | $ | 0.20 | ||||||||||||
Shares outstanding | 1,861,632 | 1,857,128 | 1,857,128 | 1,857,128 | 1,846,128 | |||||||||||||||||
Average shares outstanding | 1,860,181 | 1,857,128 | 1,857,128 | 1,851,205 | 1,844,130 | |||||||||||||||||
(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. |