BIRMINGHAM, MI--(Marketwired - Jan 17, 2014) - Birmingham Bloomfield Bancshares, Inc. (
The Company reported net income of $421,000 or $0.23 per common share for the fourth quarter of 2013 compared to net income of $337,000 or $0.18 per common share for the same period of 2012. Net income for the year to date period ended December 31, 2013 was $1,207,000 or $0.66 per common share compared to $1,019,000 or $0.56 per common share for the same period last year. The full year results represent record earnings for the Company and an increase in net income of 18.5% relative to 2012.
Chief Executive Officer, Rob Farr, issued the results and commented, "We are excited to announce another record year for the Company. The performance was driven by improved profit margins, growth in earnings assets and an increase in core revenue. The Company delivered a Return on Average Common Equity of 9.69% and a pre-tax, pre-provision ROA of 1.21%. Book value reached $7.41 at year end and per share earnings increased 17.8% year over year. We are proud of our performance and it is a reflection of our core believe in delivering superior bank service and meaningful solutions to our customers through the dedication and performance of our experienced staff. We look forward to the opportunities in 2014 and continuing to create value for our shareholders."
Results of Operation
The Company reported net interest income of $1.823 million for the fourth quarter of 2013, an 18.1% increase relative to the same quarter of 2012. The improvement was the result of portfolio loan growth. Net interest margin for the quarter was 4.24% compared to 4.36% for the most recent linked quarter and 4.59% for the fourth quarter of 2012. Net interest income for the full year of 2013 was $6.791 million, an increase of $851,000 compared to the same period of 2012. Net interest margin for the year to date period ended December 31, 2013 was 4.40% compared to 4.73% in 2012. The margin compression experienced by the Company is a result of the evolving product mix of the balance sheet, competitive pricing conditions and challenging rate environment.
The Company reversed $120,000 in provision expense during the fourth quarter of 2013, as collateral values on impaired loans improved. Total provision expense for the year to date period ending December 31, 2013 was $160,000, compared to $470,000 for the twelve month period in 2012. The net reduction in provision expense is attributable to improved market values and a reduction in problem credits requiring a valuation reserve. The Company charged off $336,000 in impaired loans during 2013.
Total non-interest income for the fourth quarter of 2013 was $252,000, compared to $210,000 for the most recent linked quarter and $348,000 for the same period of 2012. Total non-interest income for the year to date period ending December 31, 2013 was $862,000, compared to $1.243 million for the prior year. The decrease was a function of reduced loan volume related to commercial SBA and residential mortgage loans sold in the secondary market In addition, the Company recognized a gain on the sale of an ORE property in 2012 totaling $150,000.
Total non-interest expense for the fourth quarter of 2013 was $1.543 million, compared to $1.296 million for the same quarter of 2012. Year to date non-interest expense for 2013 was $5.597 million, an increase of $498,000 relative to the same period in 2012. The increase in expenses were the result of hiring new personnel to accommodate growth, infrastructure expansion, investment in new technology and providing additional resources for business marketing effort.
Balance Sheet
Total assets as of December 31, 2013 were $188.7 million, a 23.5% increase from December 31, 2012. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $158.8 million in 2013, an increase of $30.6 million from the prior year. The growth was primarily concentrated in commercial, lease and mortgage related loans. The new loan activity was achieved by expanding loan product options and focusing on the credit needs of our local market. The asset quality of the Company remains strong and the allowance for loan loss was 1.18% of the portfolio. Total deposits as of December 31, 2013 were $169.6 million, an increase of 25.7% from the same period in 2012. The Bank continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 8.40% 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, | |||||||||
2013 | 2012 | |||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 22,585,199 | $ | 15,539,072 | ||||||
Federal funds sold | - | - | ||||||||
Total cash and cash equivalents | 22,585,199 | 15,539,072 | ||||||||
Securities available-for-sale | 2,626,716 | 3,725,923 | ||||||||
Securities held-to-maturity | - | - | ||||||||
Federal Home Loan Bank Stock | 248,000 | 218,100 | ||||||||
Total securities | 2,874,716 | 3,944,023 | ||||||||
Loans held for sale | - | - | ||||||||
Portfolio loans | ||||||||||
Consumer loans | 1,697,269 | 1,801,991 | ||||||||
Mortgage loans | 21,615,166 | 16,203,001 | ||||||||
Commercial leases | 13,719,232 | 1,346,177 | ||||||||
Commercial loans | 121,796,101 | 108,926,273 | ||||||||
Total loans | 158,827,768 | 128,277,442 | ||||||||
Less: Allowance for loan loss | 1,868,587 | 2,044,350 | ||||||||
Net loans | 156,959,181 | 126,233,092 | ||||||||
Premises and equipment, net | 1,224,764 | 1,277,802 | ||||||||
Bank owned life insurance | 2,256,410 | 2,182,513 | ||||||||
Deferred Tax Asset | 1,687,277 | 2,306,762 | ||||||||
Accrued interest receivable and other assets | 1,091,237 | 1,289,814 | ||||||||
TOTAL ASSETS | $ | 188,678,784 | $ | 152,773,078 | ||||||
LIABILITIES | ||||||||||
Deposits | ||||||||||
Noninterest-bearing | $ | 39,235,022 | $ | 23,947,132 | ||||||
Interest-bearing | 130,376,667 | 110,955,051 | ||||||||
Total deposits | 169,611,689 | 134,902,183 | ||||||||
Short term borrowings | - | - | ||||||||
Accrued interest payable, taxes and other liabilities | 842,164 | 867,356 | ||||||||
Total liabilities | 170,453,853 | 135,769,539 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Senior preferred stock, series D | 4,621,000 | 4,621,000 | ||||||||
Common Stock, no par value | 17,163,818 | 17,105,618 | ||||||||
Authorized - 9,000,000 shares, Issued and outstanding - 1,836,662 1,824,662 and 1,824,662 shares respectively | ||||||||||
Accumulated other comprehensive income | 31,813 | 76,066 | ||||||||
Additional paid in capital - share based payments | 493,154 | 493,154 | ||||||||
Accumulated deficit | (4,084,854 | ) | (5,292,299 | ) | ||||||
Total shareholders' equity | 18,224,931 | 17,003,539 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 188,678,784 | $ | 152,773,078 | ||||||
Book value per share | $ | 7.41 | $ | 6.79 | ||||||
Birmingham Bloomfield Bancshares, Inc. | ||||||||||||||||
Consolidated Statement of Income (Unaudited) | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | ||||||||||||||||
Commercial loans | $ | 1,668,979 | $ | 1,516,114 | $ | 6,301,192 | $ | 5,938,254 | ||||||||
Commercial leases | 150,702 | 5,723 | 410,947 | 5,723 | ||||||||||||
Installment loans | 26,863 | 22,447 | 111,683 | 75,083 | ||||||||||||
Mortgage loans | 114,917 | 85,839 | 405,945 | 266,934 | ||||||||||||
Home Equity loans | 88,405 | 85,124 | 348,000 | 363,494 | ||||||||||||
Late charges and fees | 5,831 | 23,303 | 38,049 | 85,786 | ||||||||||||
Total loan interest and fee income | 2,055,697 | 1,738,550 | 7,615,816 | 6,735,274 | ||||||||||||
Interest bearing deposits | 10,288 | 7,572 | 33,741 | 21,479 | ||||||||||||
Federal Funds Sold | - | - | - | - | ||||||||||||
Interest on investment securities | ||||||||||||||||
Taxable | 18,019 | 23,424 | 81,414 | 95,673 | ||||||||||||
Tax-exempt | 953 | 985 | 3,859 | 3,985 | ||||||||||||
Total investment income | 18,972 | 24,409 | 85,273 | 99,658 | ||||||||||||
Total interest income | 2,084,957 | 1,770,532 | 7,734,830 | 6,856,412 | ||||||||||||
Interest Expense | ||||||||||||||||
Interest on deposits | 261,538 | 227,006 | 944,277 | 916,561 | ||||||||||||
Interest on borrowed funds | - | - | - | 64 | ||||||||||||
Total interest expense | 261,538 | 227,006 | 944,277 | 916,625 | ||||||||||||
Net Interest Income | 1,823,420 | 1,543,526 | 6,790,554 | 5,939,787 | ||||||||||||
Provision for loan losses | (120,000 | ) | 70,000 | 160,000 | 470,000 | |||||||||||
Net Interest Income After Provision for Loan Losses | 1,943,420 | 1,473,526 | 6,630,554 | 5,469,787 | ||||||||||||
Non-interest Income | ||||||||||||||||
Service charge income | 23,490 | 19,912 | 78,972 | 78,622 | ||||||||||||
Mortgage banking activities | 22,955 | 81,525 | 182,142 | 355,557 | ||||||||||||
SBA loan sales | 174,975 | 215,618 | 480,610 | 537,466 | ||||||||||||
Other income | 30,734 | 30,603 | 120,170 | 271,336 | ||||||||||||
Total non-interest income | 252,154 | 347,658 | 861,894 | 1,242,981 | ||||||||||||
Non-interest Expense | ||||||||||||||||
Salaries and employee benefits | 776,331 | 631,181 | 3,044,573 | 2,686,254 | ||||||||||||
Occupancy expense | 130,575 | 124,336 | 498,979 | 481,140 | ||||||||||||
Equipment expense | 48,820 | 50,886 | 207,556 | 201,115 | ||||||||||||
Advertising | 81,036 | 100,618 | 239,506 | 272,798 | ||||||||||||
Data Processing | 97,333 | 79,730 | 298,921 | 259,949 | ||||||||||||
Professional fees | 113,882 | 125,918 | 514,365 | 504,547 | ||||||||||||
Loan origination expense | 132,161 | 40,312 | 230,467 | 195,459 | ||||||||||||
Regulatory Assessments | 39,178 | 31,377 | 139,669 | 105,622 | ||||||||||||
Other expense | 123,490 | 111,165 | 422,473 | 391,528 | ||||||||||||
Total non-interest expense | 1,542,807 | 1,295,523 | 5,596,510 | 5,098,412 | ||||||||||||
Net Income Before Income Taxes | 652,767 | 525,661 | 1,895,938 | 1,614,356 | ||||||||||||
Income tax expense | 220,313 | 177,417 | 642,282 | 538,768 | ||||||||||||
Net Income | 432,454 | 348,244 | 1,253,656 | 1,075,588 | ||||||||||||
Dividend on preferred stock | 11,552 | 11,553 | 46,210 | 56,489 | ||||||||||||
Net Income applicable to common shareholders | $ | 420,902 | $ | 336,691 | $ | 1,207,446 | $ | 1,019,099 | ||||||||
Income per share - basic | $ | 0.23 | $ | 0.18 | $ | 0.66 | $ | 0.56 | ||||||||
Birmingham Bloomfield Bancshares, Inc. | |||||||||||||||||
Financial Summary and Selected Ratios (Unaudited) | |||||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||||
Year to Date | |||||||||||||||||
December 31, | Change | ||||||||||||||||
2013 | 2012 | Amount | Percentage | ||||||||||||||
INCOME STATEMENT | |||||||||||||||||
Interest Income | $ | 7,735 | $ | 6,856 | $ | 878 | 12.8 | % | |||||||||
Interest Expense | 944 | 917 | 28 | 3.0 | % | ||||||||||||
Net Interest Income | 6,791 | 5,940 | 851 | 14.3 | % | ||||||||||||
Provision for loan loss | 160 | 470 | (310 | ) | -66.0 | % | |||||||||||
Non-interest income | 862 | 1,243 | (381 | ) | -30.7 | % | |||||||||||
Non-interest expense | 5,597 | 5,098 | 498 | 9.8 | % | ||||||||||||
Net Income before Income Taxes | 1,896 | 1,614 | 282 | 17.4 | % | ||||||||||||
Income tax expense | 642 | 539 | 104 | 19.2 | % | ||||||||||||
Net Income | 1,254 | 1,076 | 178 | 16.6 | % | ||||||||||||
Dividend on preferred stock | 46 | 56 | (10 | ) | -18.2 | % | |||||||||||
Net Income - common shareholders | $ | 1,207 | $ | 1,019 | $ | 188 | 18.5 | % | |||||||||
Income per share - basic & diluted | $ | 0.66 | $ | 0.56 | $ | 0.10 | 17.8 | % | |||||||||
BALANCE SHEET DATA | |||||||||||||||||
Total assets | 188,679 | 152,773 | 35,906 | 23.5 | % | ||||||||||||
Average Assets | 170,554 | 140,400 | 30,154 | 21.5 | % | ||||||||||||
Total loans | 158,828 | 128,277 | 30,550 | 23.8 | % | ||||||||||||
Allowance for loan loss (ALLL) | 1,869 | 2,044 | (176 | ) | -8.6 | % | |||||||||||
Total deposits | 169,612 | 134,902 | 34,710 | 25.7 | % | ||||||||||||
Other borrowings | - | - | - | 0.0 | % | ||||||||||||
Shareholders' equity | 18,225 | 17,004 | 1,221 | 7.2 | % | ||||||||||||
Average Equity | 17,599 | 16,543 | 1,056 | 6.4 | % | ||||||||||||
ASSET QUALITY | |||||||||||||||||
Other real estate owned (OREO) | - | - | - | 0.0 | % | ||||||||||||
Net charge-offs | 336 | - | 336 | 0.0 | % | ||||||||||||
Non-accrual loans | 229 | 764 | (535 | ) | -70.0 | % | |||||||||||
(2) | Non-performing assets (NPA) | 229 | 764 | (535 | ) | -70.0 | % | ||||||||||
Non-accrual loans / total loans | 0.14 | % | 0.60 | % | -0.45 | % | -75.8 | % | |||||||||
Allowance for loan loss / total loans | 1.18 | % | 1.59 | % | -0.42 | % | -26.2 | % | |||||||||
PERFORMANCE MEASUREMENTS | |||||||||||||||||
Net interest margin (tax equivalent) | 4.40 | % | 4.73 | % | -0.33 | % | -7.0 | % | |||||||||
(1) | Return on average assets (annualized) | 0.74 | % | 0.77 | % | -0.03 | % | -3.9 | % | ||||||||
(3) | Return on average assets (annualized) | 1.21 | % | 1.48 | % | -0.27 | % | -18.2 | % | ||||||||
(1) | Return on average common equity (annualized) | 9.69 | % | 9.02 | % | 0.67 | % | 7.4 | % | ||||||||
(3) | Return on average common equity (annualized) | 15.89 | % | 17.48 | % | -1.59 | % | -9.1 | % | ||||||||
Efficiency ratio | 73.1 | % | 71.0 | % | 2.15 | % | 3.0 | % | |||||||||
Total loans / Total deposits | 93.6 | % | 95.1 | % | -1.45 | % | -1.5 | % | |||||||||
Tier 1 Leverage Ratio (Bank only) | 8.40 | % | 9.03 | % | -0.63 | % | -6.98 | % | |||||||||
Equity / Assets | 9.66 | % | 11.13 | % | -1.47 | % | -13.2 | % | |||||||||
Tangible common equity / Total assets | 7.21 | % | 8.11 | % | -0.90 | % | -11.0 | % | |||||||||
Book value per share | $ | 7.41 | $ | 6.79 | $ | 0.62 | 9.1 | % | |||||||||
Stock price | $ | 5.13 | $ | 4.60 | $ | 0.53 | 11.5 | % | |||||||||
Stock price / book value (%) | 69.3 | % | 67.8 | % | 1.48 | % | 2.2 | % | |||||||||
Income per share - basic & diluted | $ | 0.66 | $ | 0.56 | $ | 0.10 | 17.8 | % | |||||||||
Price to earnings ratio (P/E) (year to date) | 7.8x | 8.2x | -0.4x | -5.3 | % | ||||||||||||
Shares outstanding | 1,836,662 | 1,824,662 | 12,000 | 0.7 | % | ||||||||||||
Average shares outstanding | 1,830,810 | 1,819,580 | 11,230 | 0.6 | % | ||||||||||||
(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, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||
INCOME STATEMENT | ||||||||||||||||||
Interest Income | $ | 2,085 | $ | 1,998 | $ | 1,860 | $ | 1,792 | $ | 1,771 | ||||||||
Interest Expense | 262 | 246 | 222 | 215 | 227 | |||||||||||||
Net Interest Income | 1,823 | 1,752 | 1,638 | 1,577 | 1,544 | |||||||||||||
Provision for loan loss | (120 | ) | 180 | 90 | 10 | 70 | ||||||||||||
Non-interest income | 252 | 210 | 215 | 185 | 348 | |||||||||||||
Non-interest expense | 1,543 | 1,358 | 1,394 | 1,302 | 1,296 | |||||||||||||
Net Income before Income Taxes | 653 | 425 | 369 | 450 | 526 | |||||||||||||
Income tax expense | 220 | 145 | 125 | 152 | 177 | |||||||||||||
Net Income | 432 | 279 | 244 | 298 | 348 | |||||||||||||
Dividend on preferred stock | 12 | 12 | 12 | 12 | 12 | |||||||||||||
Net Income applicable to common shareholders | $ | 421 | $ | 268 | $ | 232 | $ | 287 | $ | 337 | ||||||||
Income per share - basic & diluted | $ | 0.23 | $ | 0.15 | $ | 0.13 | $ | 0.16 | $ | 0.18 | ||||||||
BALANCE SHEET DATA | ||||||||||||||||||
Total assets | 188,679 | 182,693 | 164,588 | 156,985 | 152,773 | |||||||||||||
Average Assets | 191,516 | 175,007 | 160,953 | 154,282 | 154,452 | |||||||||||||
Total loans | 158,828 | 151,524 | 138,017 | 129,638 | 128,277 | |||||||||||||
Allowance for loan loss (ALLL) | 1,869 | 1,989 | 2,144 | 2,054 | 2,044 | |||||||||||||
Total deposits | 169,612 | 163,836 | 146,171 | 138,992 | 134,902 | |||||||||||||
Other borrowings | - | - | - | - | - | |||||||||||||
Shareholders' equity | 18,225 | 17,809 | 17,546 | 17,281 | 17,004 | |||||||||||||
Average Equity | 18,006 | 17,682 | 17,399 | 17,139 | 16,822 | |||||||||||||
ASSET QUALITY | ||||||||||||||||||
Other real estate owned (OREO) | - | - | - | - | - | |||||||||||||
Net charge-offs | - | 336 | - | - | - | |||||||||||||
Non-accrual loans | 229 | 316 | 732 | 732 | 764 | |||||||||||||
(2) | Non-performing assets (NPA) | 229 | 316 | 732 | 732 | 764 | ||||||||||||
Non-accrual loans / total loans | 0.14 | % | 0.21 | % | 0.53 | % | 0.56 | % | 0.60 | % | ||||||||
Allowance for loan loss / total loans | 1.18 | % | 1.31 | % | 1.55 | % | 1.58 | % | 1.59 | % | ||||||||
PERFORMANCE MEASUREMENTS | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.24 | % | 4.36 | % | 4.50 | % | 4.56 | % | 4.59 | % | ||||||||
(1) | Return on average assets (annualized) | 0.90 | % | 0.63 | % | 0.61 | % | 0.78 | % | 0.90 | % | |||||||
(3) | Return on average assets (annualized) | 1.10 | % | 1.37 | % | 1.14 | % | 1.21 | % | 1.53 | % | |||||||
(1) | Return on average common equity (annualized) | 12.82 | % | 8.49 | % | 7.65 | % | 9.66 | % | 11.35 | % | |||||||
(3) | Return on average common equity (annualized) | 15.79 | % | 18.37 | % | 14.39 | % | 14.89 | % | 19.42 | % | |||||||
Efficiency ratio | 74.3 | % | 69.2 | % | 75.2 | % | 73.9 | % | 68.5 | % | ||||||||
Total loans / Total deposits | 93.6 | % | 92.5 | % | 94.4 | % | 93.3 | % | 95.1 | % | ||||||||
Tier 1 Leverage Ratio (Bank only) | 8.40 | % | 8.71 | % | 9.21 | % | 9.36 | % | 9.03 | % | ||||||||
Equity / Assets | 9.66 | % | 9.75 | % | 10.66 | % | 11.01 | % | 11.13 | % | ||||||||
Tangible common equity / Total assets | 7.21 | % | 7.22 | % | 7.85 | % | 8.06 | % | 8.11 | % | ||||||||
Book value per share | $ | 7.41 | $ | 7.18 | $ | 7.04 | $ | 6.94 | $ | 6.79 | ||||||||
Stock price | $ | 5.13 | $ | 5.70 | $ | 4.30 | $ | 4.95 | $ | 4.60 | ||||||||
Stock price / book value (%) | 69.3 | % | 79.4 | % | 61.1 | % | 71.3 | % | 67.8 | % | ||||||||
Income per share - basic & diluted | $ | 0.23 | $ | 0.15 | $ | 0.13 | $ | 0.16 | $ | 0.18 | ||||||||
Shares outstanding | 1,836,662 | 1,836,662 | 1,836,662 | 1,824,662 | 1,824,662 | |||||||||||||
Average shares outstanding | 1,836,662 | 1,836,662 | 1,825,058 | 1,824,662 | 1,824,662 |
(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 |