Birmingham Bloomfield Bancshares, Inc. Announces Record Pre-Tax Income for 2012

Birmingham Bloomfield Bancshares, Inc. Announces Record Pre-Tax Income for 2012 
BIRMINGHAM, MI -- (Marketwire) -- 01/28/13 --  Birmingham Bloomfield
Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company
for Bank of Birmingham, today announced unaudited results for the
quarter and year to date periods ended December 31, 2012. The
performance delivered record pre-tax net income and significant
growth in the loan portfolio.  
The Company reported net income of $337,000 or $0.18 per common share
for the fourth quarter of 2012 compared to net income of $2,965,000
or $1.64 per common share for the same period of 2011. Net income for
the year to date period ended December 31, 2012 was $1,019,000 or
$0.56 per common share compared to $3,750,000 or $2.08 per common
share for the same period last year. The prior year results were
positively impacted by the recognition of the Company's deferred tax
asset recorded in the fourth quarter of 2011; the adjustment totaled
$2,885,000 or $1.60 per share. Excluding the impact of income taxes,
pre-tax net income before preferred dividends was $1,614,000 for the
period ended December 31, 2012 compared to $1,049,000 for 2011. This
represents a year over year increase of 53.8%. 
Chief Executive Officer, Rob Farr, issued the results and commented,
"2012 was a very successful year for the organization. We were able
to report record pre-tax earnings, realize substantial growth in
total assets as a result of quality loan opportunities and improve
net interest margin by implementing strategic actions to enhance the
profitability of the balance sheet. Our pre-tax, pre-provision Return
on Average Assets for 2012 was 1.48% compared to 1.08% in 2011 and
book value reached $6.79. We also expanded our product options during
the year to better service the needs of the community and diversify
our revenue sources. Overall, this was an outstanding year for the
Bank and provides us momentum moving into 2013." 
Results of Operation 
The Company reported net interest income of $1.544 million for the
fourth quarter of 2012, a 14.3% increase relative to the same quarter
of 2011. The improvement was the result of portfolio loan growth and
a reduction in funding costs. Net interest margin for the quarter was
4.59% compared to 4.65% for the most recent linked quarter. The
compression was a result of the competitive pricing environment and
product mix of the balance sheet. Net interest income for the full
year of 2012 was $5.940 million, an increase of 15.5% compared to the
same period of 2011. Net interest margin for the year to date period
ended December 31, 2012 was 4.73% compared to 4.51% in 2011. The
increased margin was a direct result of a reduction in deposit costs. 
The Company provided $70,000 in provision expense during the fourth
quarter of 2012, a decrease of $5,000 compared to the same period
last year and $260,000 less than the third quarter of 2012. Total
provision expense for the year to date period ending December 31,
2012 was $470,000, compared to $234,000 for the twelve month period
in 2011. The increase in provision expense is attributable to new
loan volume and additional reserve requirements on collaterally
deficient impaired loans. There have been no net charge offs during
2012 compared to $108,000 for 2011.  
The Company continues to generate substantial revenue from
non-interest income activity. Total non-interest income for the
fourth quarter of 2012 was $348,000, compared to $309,000 during the
same period of 2011. The increase was a result of higher revenue from
the sale of SBA and residential mortgage loans in the secondary
market and earnings on Bank Owned Life Insurance. Total non-interest
income for the year to date period ending December 31, 2012 was
$1,243,000, an increase of $10,000 from 2011. The modest improvement
was a function of an increase in deposit fee income, earnings on Bank
Owned Life Insurance and gain on the sale of a bank owned property,
despite a reduction in revenue from loan sales on SBA and residential
mortgages due to lower volume.  
Total non-interest expense for the fourth quarter of 2012 was $1.296
million, compared to $1.484 million for the same quarter of 2011. The
decrease was a result of a reduction in the number of personnel and
lower origination costs due to a decrease in loan volume associated
with mortgage loans originated for sale. Year to date non-interest
expense for 2012 was $5.098 million, an increase of $7,000 relative
to the same period in 2011. The nominal increase was the result of
investments in operating system technology, dedicating resources to
business marketing efforts and additional professional fees
associated with strategic initiatives. However, several categories
did experience a decrease in costs during the period, including
salaries and occupancy expense due to a reduction in personnel and
elimination of loan production offices.  
Balance Sheet  
Total assets as of December 31, 2012 were $152.8 million, a 22.8%
increase from December 31, 2011. The net growth in total assets was
the result of an increase in loan and deposit balances. Total
portfolio loans reached $128.3 million in 2012, an increase of $21.9
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 loan product options. The asset quality of the Company
remains excellent; no charge offs were reported in 2012 and the
allowance for loan loss was 1.59% of the portfolio. Total deposits as
of December 31, 2012 were $134.9 million, an increase of 25.3% from
the same period in 2011. The Bank continues to be classified as well
capitalized based on regulatory guidelines and the Tier 1 ratio was
9.03% 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, 
                                                    2012           2011     
                                               -------------  ------------- 
ASSETS                                                                      
    Cash and due from banks                    $  15,539,072  $   4,693,585 
    Federal funds sold                                     -              - 
                                               -------------  ------------- 
  Total cash and cash equivalents                 15,539,072      4,693,585 
                                                                            
    Securities available-for-sale                  3,725,923      4,594,761 
    Securities held-to-maturity                            -              - 
    Federal Home Loan Bank Stock                     218,100        169,900 
                                               -------------  ------------- 
  Total securities                                 3,944,023      4,764,661 
                                                                            
  Loans held for sale                                      -      2,484,829 
                                                                            
  Portfolio loans                                                           
    Consumer loans                                 1,801,991      1,305,501 
    Mortgage loans                                16,203,001     11,572,620 
    Commercial loans                             110,272,450     93,419,805 
                                               -------------  ------------- 
  Total loans                                    128,277,442    106,297,926 
    Less: Allowance for loan loss                  2,044,350      1,574,350 
                                               -------------  ------------- 
  Net loans                                      126,233,092    104,723,576 
                                                                            
    Premises and equipment, net                    1,277,802      1,395,187 
    Bank owned life insurance                      2,182,513      2,100,000 
    Accrued interest receivable and other                                   
     assets                                        3,596,576      4,235,623 
                                               -------------  ------------- 
                                                                            
  TOTAL ASSETS                                 $ 152,773,078  $ 124,397,461 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
LIABILITIES                                                                 
  Deposits                                                                  
    Noninterest-bearing                        $  23,947,132  $  19,662,283 
    Interest-bearing                             110,955,051     88,015,546 
                                               -------------  ------------- 
  Total deposits                                 134,902,183    107,677,829 
                                                                            
    Short term borrowings                                  -              - 
    Accrued interest payable, taxes and other                               
     liabilities                                     867,356        755,090 
                                               -------------  ------------- 
  Total liabilities                              135,769,539    108,432,919 
                                                                            
SHAREHOLDERS' EQUITY                                                        
    Senior preferred stock, series D               4,621,000      4,621,000 
    Common Stock, no par value                    17,105,618     17,066,618 
    Authorized - 9,000,000 shares, Issued and                               
     outstanding - 1,824,662 and 1,812,662                                  
     shares respectively                                                    
    Accumulated other comprehensive income            76,066         95,168 
    Additional paid in capital - share based                                
     payments                                        493,154        493,154 
    Accumulated deficit                           (5,292,299)    (6,311,398)
                                               -------------  ------------- 
  Total shareholders' equity                      17,003,539     15,964,542 
                                               -------------  ------------- 
                                                                            
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 152,773,078  $ 124,397,461 
                                               =============  ============= 
                                                                            
Book value per share                           $        6.79  $        6.26 
                                                                            
                                                                            
                                                                            
                   Birmingham Bloomfield Bancshares, Inc.                   
                Consolidated Statement of Income (Unaudited)                
                                                                            
                             For the three months    For the twelve months  
                                    ended                    ended          
                           -----------------------  ----------------------- 
                                 December 31,             December 31,      
                           -----------------------  ----------------------- 
                               2012        2011         2012        2011    
                           ----------- -----------  ----------- ----------- 
Interest Income                                                             
    Interest and fees on                                                    
     loans                                                                  
      Commercial loans     $ 1,521,837 $ 1,447,603  $ 5,943,977 $ 5,681,704 
      Installment loans         22,447      18,791       75,083      61,959 
      Mortgage loans            85,839      29,878      266,934      86,382 
      Home Equity loans         85,124      96,215      363,494     385,921 
      Late charges and                                                      
       fees                     23,303       6,370       85,786      27,610 
                           ----------- -----------  ----------- ----------- 
  Total loan interest and                                                   
   fee income                1,738,550   1,598,857    6,735,274   6,243,576 
                                                                            
    Interest bearing                                                        
     deposits                    7,572       5,059       21,479      20,350 
    Federal Funds Sold               -           -            -          13 
                                                                            
    Interest on investment                                                  
     securities                                                             
      Taxable                   23,424      24,237       95,673      99,023 
      Tax-exempt                   985       1,808        3,985       2,216 
                           ----------- -----------  ----------- ----------- 
  Total investment income       24,409      26,045       99,658     101,239 
                                                                            
  Total interest income      1,770,532   1,629,961    6,856,412   6,365,178 
                                                                            
Interest Expense                                                            
    Interest on deposits       227,006     279,386      916,561   1,208,513 
    Interest on borrowed                                                    
     funds                           -         196           64      14,705 
                           ----------- -----------  ----------- ----------- 
  Total interest expense       227,006     279,582      916,625   1,223,218 
                           ----------- -----------  ----------- ----------- 
                                                                            
  Net Interest Income        1,543,526   1,350,379    5,939,787   5,141,960 
    Provision for loan                                                      
     losses                     70,000      75,000      470,000     234,000 
                           ----------- -----------  ----------- ----------- 
  Net Interest Income                                                       
   After Provision for                                                      
   Loan Losses               1,473,526   1,275,379    5,469,787   4,907,960 
                                                                            
Non-interest Income                                                         
    Service charge income       19,912      16,074       78,622      55,443 
    Mortgage banking                                                        
     activities                 81,525     267,193      355,557     434,338 
    SBA loan sales             215,618      14,704      537,466     701,588 
    Other income                30,603      10,973      271,336      41,399 
                           ----------- -----------  ----------- ----------- 
  Total non-interest                                                        
   income                      347,658     308,944    1,242,981   1,232,768 
                                                                            
Non-interest Expense                                                        
    Salaries and employee                                                   
     benefits                  631,181     800,178    2,686,254   2,755,204 
    Occupancy expense          124,336     129,655      481,140     518,634 
    Equipment expense           50,886      47,364      201,115     180,674 
    Advertising                100,618      81,057      272,798     191,076 
    Data Processing             79,730      56,227      259,949     223,179 
    Professional fees          125,918     110,035      504,547     473,438 
    Loan origination                                                        
     expense                    40,312     138,051      195,459     224,324 
    Regulatory Assessments      31,377      12,010      105,622     127,941 
    Other expense              111,165     109,302      391,528     396,805 
                           ----------- -----------  ----------- ----------- 
  Total non-interest                                                        
   expense                   1,295,523   1,483,879    5,098,412   5,091,275 
                                                                            
  Net Income Before Income                                                  
   Taxes                       525,661     100,444    1,614,356   1,049,453 
    Income tax expense                                                      
     (benefit)                 177,417  (2,884,715)     538,768  (2,884,715)
                           ----------- -----------  ----------- ----------- 
  Net Income                   348,244   2,985,159    1,075,588   3,934,168 
    Dividend and accretion                                                  
     on preferred stock         11,553      19,732       56,489     184,092 
                           ----------- -----------  ----------- ----------- 
  Net Income applicable to                                                  
   common shareholders     $   336,691 $ 2,965,427  $ 1,019,099 $ 3,750,076 
                           =========== ===========  =========== =========== 
                                                                            
Income per share - basic   $      0.18 $      1.64  $      0.56 $      2.08 
                                                                            
                                                                            

 
                                                                            
                   Birmingham Bloomfield Bancshares, Inc.                   
             Financial Summary and Selected Ratios (Unaudited)              
                (Dollars in thousands except per share data)                
                                                                            
                                              Year to Date                  
                             ---------------------------------------------- 
                                  December 31,               Change         
                             ----------------------  ---------------------- 
                                2012        2011       Amount    Percentage 
                             ----------  ----------  ----------  ---------- 
INCOME STATEMENT                                                            
     Interest Income         $    6,856  $    6,365  $      491         7.7%
     Interest Expense               917       1,223        (307)      -25.1%
                             ----------  ----------  ----------             
   Net Interest Income            5,940       5,142         798        15.5%
     Provision for loan loss        470         234         236       100.9%
     Non-interest income          1,243       1,233          10         0.8%
     Non-interest expense         5,098       5,091           7         0.1%
                             ----------  ----------  ----------             
   Net Income before Income                                                 
    Taxes                         1,614       1,049         565        53.8%
     Income tax expense                                                     
      (benefit)                     539      (2,885)      3,423       118.7%
                             ----------  ----------  ----------             
   Net Income                     1,076       3,934      (2,859)      -72.7%
     Dividend and accretion                                                 
      on preferred stock             56         184        (128)      -69.3%
                             ----------  ----------  ----------             
   Net Income - common                                                      
    shareholders             $    1,019  $    3,750  $   (2,731)      -72.8%
                             ----------  ----------  ----------             
                                                                            
   Income per share - basic                                                 
    & diluted                $     0.56  $     2.08  $    (1.52)      -73.1%
                             ----------  ----------  ----------             
                                                                            
BALANCE SHEET DATA                                                          
   Total assets                 152,773     124,397      28,376        22.8%
   Average Assets               140,400     119,347      21,053        17.6%
   Total loans                  128,277     106,298      21,980        20.7%
   Allowance for loan loss                                                  
    (ALLL)                        2,044       1,574         470        29.9%
   Total deposits               134,902     107,678      27,224        25.3%
   Other borrowings                   -           -           -         0.0%
   Shareholders' equity          17,004      15,965       1,039         6.5%
   Average Equity                16,543      12,196       4,347        35.6%
                                                                            
ASSET QUALITY                                                               
   Other real estate owned                                                  
    (OREO)                            -         298        (298)     -100.0%
   Net charge-offs                    -         108        (108)     -100.0%
   Non-accrual loans                764           -         764         0.0%
(2)Non-performing assets                                                    
    (NPA)                           764         298         466       156.3%
   Non-accrual loans / total                                                
    loans                          0.60%       0.00%       0.60%        0.0%
   Allowance for loan loss /                                                
    total loans                    1.59%       1.48%       0.11%        7.6%
                                                                            
PERFORMANCE MEASUREMENTS                                                    
   Net interest margin (tax                                                 
    equivalent)                    4.73%       4.51%       0.22%        4.9%
(1)Return on average assets                                                 
    (annualized)                   0.77%       3.30%      -2.53%      -76.6%
(3)Return on average assets                                                 
    (annualized)                   1.48%       1.08%       0.40%       37.6%
(1)Return on average common                                                 
    equity (annualized)            9.02%      47.59%     -38.57%      -81.0%
(3)Return on average common                                                 
    equity (annualized)           17.48%      15.52%       1.96%       12.6%
   Efficiency ratio                71.0%       79.9%      -8.89%      -11.1%
   Total loans / Total                                                      
    deposits                       95.1%       98.7%      -3.63%       -3.7%
   Tier 1 Leverage Ratio                                                    
    (Bank only)                    9.03%       9.94%      -0.91%      -9.15%
   Equity / Assets                11.13%      12.83%      -1.70%      -13.3%
   Tangible common equity /                                                 
    Total assets                   8.11%       9.12%      -1.01%      -11.1%
                                                                            
   Book value per share      $     6.79  $     6.26  $     0.53         8.4%
   Stock price               $     4.60  $     3.00  $     1.60        53.3%
   Stock price / book value                                                 
    (%)                            67.8%       47.9%      19.85%       41.4%
   Income (loss) per share -                                                
    basic & diluted          $     0.56  $     2.08  $    (1.52)      -73.1%
   Price to earnings ratio                                                  
    (P/E)                          8.2x        1.4x        6.8x       470.1%
   Shares outstanding         1,824,662   1,812,662      12,000         0.7%
   Average shares                                                           
    outstanding               1,822,376   1,803,608      18,768         1.0%
                                                                            
(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   September                        December  
                         31,        30,     June 30,   March 31,     31,    
                        2012       2012       2012       2012       2011    
                     ---------- ---------- ---------- ---------- ---------- 
INCOME STATEMENT                                                            
     Interest Income $    1,771 $    1,746 $    1,719 $    1,621 $    1,630 
     Interest                                                               
      Expense               227        239        223        228        280 
                     ---------- ---------- ---------- ---------- ---------- 
   Net Interest                                                             
    Income                1,544      1,507      1,496      1,394      1,350 
     Provision for                                                          
      loan loss              70        330         50         20         75 
     Non-interest                                                           
      income                348        300        112        484        309 
     Non-interest                                                           
      expense             1,296      1,248      1,216      1,338      1,484 
                     ---------- ---------- ---------- ---------- ---------- 
   Net Income before                                                        
    Income Taxes            526        228        341        519        100 
     Income tax                                                             
      expense                                                               
      (benefit)             177         79        111        171     (2,885)
                     ---------- ---------- ---------- ---------- ---------- 
   Net Income               348        150        230        348      2,985 
     Dividend and                                                           
      accretion on                                                          
      preferred                                                             
      stock                  12         12         22         12         20 
                     ---------- ---------- ---------- ---------- ---------- 
   Net Income                                                               
    applicable to                                                           
    common                                                                  
    shareholders     $      337 $      138 $      208 $      336 $    2,965 
                     ========== ========== ========== ========== ========== 
                                                                            
   Income per share                                                         
    - basic &                                                               
    diluted          $     0.18 $     0.08 $     0.11 $     0.19 $     1.64 
                     ========== ========== ========== ========== ========== 
                                                                            
BALANCE SHEET DATA                                                          
   Total assets         152,773    148,497    139,851    128,663    124,397 
   Average Assets       154,452    146,057    134,375    126,499    123,317 
   Total loans          128,277    118,440    113,074    106,628    106,298 
   Allowance for                                                            
    loan loss (ALLL)      2,044      1,974      1,644      1,594      1,574 
   Total deposits       134,902    131,147    122,650    111,774    107,678 
   Other borrowings           -          -          -          -          - 
   Shareholders'                                                            
    equity               17,004     16,682     16,546     16,297     15,965 
   Average Equity        16,822     16,728     16,410     16,206     13,584 
                                                                            
ASSET QUALITY                                                               
   Other real estate                                                        
    owned (OREO)              -          -          -          -        298 
   Net charge-offs            -          -          -          -          - 
   Non-accrual loans        764        708          -          -          - 
(2)Non-performing                                                           
    assets (NPA)            764        708          -          -        298 
   Non-accrual loans                                                        
    / total loans          0.60%      0.60%      0.00%      0.00%      0.00%
   Allowance for                                                            
    loan loss /                                                             
    total loans            1.59%      1.67%      1.45%      1.50%      1.48%
                                                                            
PERFORMANCE                                                                 
 MEASUREMENTS                                                               
   Net interest                                                             
    margin (tax                                                             
    equivalent)            4.59%      4.65%      4.91%      4.80%      4.61%
(1)Return on average                                                        
    assets                                                                  
    (annualized)           0.90%      0.41%      0.69%      1.11%      9.60%
(3)Return on average                                                        
    assets                                                                  
    (annualized)           1.53%      1.52%      1.17%      1.71%      0.56%
(1)Return on average                                                        
    common equity                                                           
    (annualized)          11.35%      4.92%      7.84%     12.08%    132.13%
(3)Return on average                                                        
    common equity                                                           
    (annualized)          19.42%     18.35%     13.34%     18.72%      7.77%
   Efficiency ratio        68.5%      69.1%      75.7%      71.3%      89.4%
   Total loans /                                                            
    Total deposits         95.1%      90.3%      92.2%      95.4%      98.7%
   Tier 1 Leverage                                                          
    Ratio (Bank                                                             
    only)                  9.03%      9.20%      9.82%     10.13%      9.94%
   Equity / Assets        11.13%     11.23%     11.83%     12.67%     12.83%
   Tangible common                                                          
    equity / Total                                                          
    assets                 8.11%      8.12%      8.53%      9.07%      9.12%
                                                                            
   Book value per                                                           
    share            $     6.79 $     6.61 $     6.54 $     6.44 $     6.26 
   Stock price       $     4.60 $     4.55 $     3.30 $     3.02 $     3.00 
   Stock price /                                                            
    book value (%)         67.8%      68.8%      50.5%      46.9%      47.9%
   Income (loss) per                                                        
    share - basic &                                                         
    diluted          $     0.18 $     0.08 $     0.11 $     0.19 $     1.64 
   Shares                                                                   
    outstanding       1,824,662  1,824,662  1,824,662  1,812,662  1,812,662 
   Average shares                                                           
    outstanding       1,824,662  1,824,662  1,816,222  1,812,662  1,812,662 
                                                                            
                                                                            
(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                                                               

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