EXHIBIT 99.1
Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
April 20, 2011
For Immediate Release: | Contact: | Robert M. Farr | ||
Chief Executive Officer | ||||
Birmingham Bloomfield Bancshares, Inc. | ||||
248-283-6430 |
Birmingham Bloomfield Bancshares, Inc.
Announces Record First Quarter
Announces Record First Quarter
BIRMINGHAM, MI— Birmingham Bloomfield Bancshares, Inc. (BBBI.OB), the holding company for Bank of Birmingham, today reported record net income for the first quarter of 2011 and the fourth consecutive quarter of profitability.
The Corporation reported net income of $414,297 or $0.23 per share of common stock for the first quarter of 2011, compared to a net loss of $18,112 or $0.01 per share for the first quarter of 2010. The results were positively impacted by improved net interest margin, lower provision for loan loss expense and significant non-interest income production.
Results of Operation
The Corporation achieved a Return on Average Assets “ROA” before preferred dividends of 1.62% for the first quarter of 2011 compared to a 0.12% ROA for the same period last year and a 0.60% ROA for the fourth quarter of 2010. The improvement was directly attributable to an increase in core operating revenue and lower loan loss provision.
Total net interest income for the first quarter of 2011 increased 32.8% to $1.260 million compared to 949,000 for the first quarter of 2010. The net interest income growth was realized by improving the overall net interest margin on earnings assets and organically increasing the asset size of the organization through local loan production. Net interest margin increased from 4.06% in the first quarter of 2010 to 4.49% in the current quarter. This continues a trend the Corporation has experienced over the past 5 linked quarters.
Provision expense declined $73,000 during the current quarter relative to the first quarter of 2010 as the Corporation did not experience any charge offs and overall credit quality improved.
Non-interest income increased $298,000 in the first quarter of 2011 compared to the same period of last year as a result of the sale of residential mortgage originations in the secondary market and Small Business Administration “SBA” loan activity. The Corporation added a residential mortgage operation to the portfolio of products available to customers in the fall of 2010 and was able to generate revenue of $11,000 in the first quarter of 2011. In addition, the Corporation successfully sold the guaranteed balance of originated SBA loans to investors for a premium in the first quarter of 2011 and produced additional non-interest income of $291,000.
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Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
Total non-interest expense during the first quarter of 2011 increased to $1.083 million from $834,000 for the same period of last year. The increased operating costs were mainly the result of the added costs associated with the mortgage division, hiring additional personnel, implementing new marketing initiatives and utilizing various consultants to assist the Corporation in addressing key strategies. Despite the increased operating costs, the Corporation’s efficiency ratio, a measurement of the cost to generate revenue, declined to 68.4% during the most recent quarter, a positive trend.
Balance Sheet
The Corporation continues to experience quality growth in our core markets as total assets reached $116.521 million as of March 31, 2011 an increase of $17.711 million from the same quarter last year and $6.186 from December 31, 2010. The increase is the direct result of growth in loan and deposit balances. Total loans over the past 12 months have grown $12.052 million as the Corporation concentrates lending efforts on organic, local loan opportunities. In addition, the profile of products available to customers continues to expand as the Bank offers more options for residential mortgage and commercial customers, including SBA products. The subsidiary Bank also remains well capitalized based on regulatory capital guidelines.
Chief Executive Officer Rob Farr issued the results and commented “the Corporation is positively positioned to benefit from an improving economy. We have a strong capital position and ability to make quality loans for customers in our market. The first quarter results reflect the Corporation’s successful implementation of our strategic plan and addition of new income sources to diversify earnings. The Bank has expanded the loan options available to customers with the addition of the residential mortgage division and SBA lending products. Our core revenue represented by our net interest margin remains above peers and continues to provide a strong foundation for the organization. We are optimistic about our possibilities in 2011.”
Birmingham Bloomfield Bancshares, Inc. is the holding company for Bank of Birmingham, a full-service community bank serving Birmingham, Bloomfield Hills, Beverly Hills and Franklin. 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 Birmingham / Bloomfield 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; Hill, Thompson, Magid & Co; Jersey City, New Jersey; and Hudson Securities, Inc., Jersey City, New Jersey.
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Birmingham Bloomfield Bancshares, Inc. 33583 Woodward Avenue Birmingham, MI 48009 248-723-7200 |
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 Corporation’s filings with the Securities and Exchange Commission, available free via EDGAR. The Corporation assumes no responsibility to update forward-looking statements.
(Unaudited Consolidated Financial Statements Follow)
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Birmingham Bloomfield Bancshares, Inc.
Consolidated Balance Sheet (Unaudited)
Consolidated Balance Sheet (Unaudited)
March 31, | ||||||||
2011 | 2010 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 14,036,879 | $ | 5,283,928 | ||||
Federal funds sold | — | 2,238,858 | ||||||
Total cash and cash equivalents | 14,036,879 | 7,522,786 | ||||||
Securities available-for-sale | 3,150,652 | 3,633,928 | ||||||
Securities held-to-maturity | — | — | ||||||
Federal Home Loan Bank Stock | 160,200 | 162,100 | ||||||
Total securities | 3,310,852 | 3,796,028 | ||||||
Loans held for Sale | — | — | ||||||
Portfolio loans | ||||||||
Consumer loans | 813,491 | 501,498 | ||||||
Mortgage loans | 11,257,843 | 10,604,172 | ||||||
Commercial loans | 86,133,771 | 75,047,441 | ||||||
Total loans | 98,205,105 | 86,153,111 | ||||||
Less: Allowance for loan loss | 1,487,099 | 1,254,964 | ||||||
Net loans | 96,718,007 | 84,898,147 | ||||||
Premises and equipment,net | 1,435,426 | 1,444,071 | ||||||
Accrued interest receivable and other assets | 1,019,575 | 1,148,941 | ||||||
TOTAL ASSETS | $ | 116,520,738 | $ | 98,809,973 | ||||
LIABILITIES | ||||||||
Deposits | ||||||||
Noninterest-bearing | $ | 12,477,840 | $ | 9,320,275 | ||||
Interest-bearing | 92,110,155 | 78,412,227 | ||||||
Total deposits | 104,587,995 | 87,732,502 | ||||||
Short term borrowings | — | — | ||||||
Accrued interest payable, taxes and other liabilities | 529,559 | 359,774 | ||||||
Total liabilities | 105,117,554 | 88,092,276 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Senior preferred stock A | 1,635,000 | 1,635,000 | ||||||
Discount on senior preferred stock A | (56,427 | ) | (74,827 | ) | ||||
Warrant preferred stock B | 82,000 | 82,000 | ||||||
Premium on warrant preferred stock B | 6,133 | 8,134 | ||||||
Senior preferred stock C | 1,744,000 | 1,744,000 | ||||||
Discount on senior preferred stock C | — | — | ||||||
Common Stock, no par value | 17,034,330 | 17,034,330 | ||||||
Authorized — 4,500,000 shares | ||||||||
Issued and outstanding — 1,800,000 shares | ||||||||
Accumulated other comprehensive income | 112,171 | 113,454 | ||||||
Additional paid in capital | — | — | ||||||
Additional paid in capital — share based payments | 493,154 | 493,154 | ||||||
Accumulated deficit | (9,647,177 | ) | (10,317,548 | ) | ||||
Total shareholders’ equity | 11,403,185 | 10,717,697 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 116,520,738 | $ | 98,809,973 | ||||
Book value per share | $ | 4.44 | $ | 4.07 |
Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
Consolidated Statement of Income (Unaudited)
Year to Date | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Interest Income | ||||||||
Interest and fees on loans | ||||||||
Commercial loans | $ | 1,413,787 | $ | 1,109,519 | ||||
Installment loans | 13,088 | 8,449 | ||||||
Mortgage loans | 19,525 | 17,009 | ||||||
Home Equity loans | 97,931 | 88,749 | ||||||
Late charges and fees | 11,478 | 8,413 | ||||||
Total loan interest and fee income | 1,555,809 | 1,232,139 | ||||||
Interest bearing deposits | 4,618 | 5,605 | ||||||
Federal Funds Sold | 13 | 729 | ||||||
Interest on investment securities | ||||||||
Taxable | 27,911 | 34,699 | ||||||
Tax-exempt | — | — | ||||||
Total investment income | 27,911 | 34,699 | ||||||
Total interest income | 1,588,351 | 1,273,172 | ||||||
Interest Expense | ||||||||
Interest on deposits | 314,055 | 324,246 | ||||||
Interest on borrowed funds | 14,509 | — | ||||||
Total interest expense | 328,564 | 324,246 | ||||||
Net Interest Income | 1,259,787 | 948,926 | ||||||
Provision for loan losses | 39,000 | 112,405 | ||||||
Net Interest Income After Provision for Loan Losses | 1,220,787 | 836,521 | ||||||
Non-interest Income | ||||||||
Service charge income | 11,572 | 9,635 | ||||||
Mortgage banking activities | 11,439 | — | ||||||
Other income | 302,098 | 17,387 | ||||||
Total non-interest income | 325,109 | 27,022 | ||||||
Non-interest Expense | ||||||||
Salaries and employee benefits | 582,017 | 400,624 | ||||||
Occupancy expense | 118,102 | 118,634 | ||||||
Equipment expense | 35,400 | 35,577 | ||||||
Loss on branch closing | — | — | ||||||
Advertising | 36,046 | 5,280 | ||||||
Data Processing | 49,013 | 55,550 | ||||||
Professional fees | 111,524 | 68,211 | ||||||
Other expense | 151,314 | 150,327 | ||||||
Total non-interest expense | 1,083,416 | 834,203 | ||||||
NetIncome (Loss) Before Income Taxes | 462,480 | 29,339 | ||||||
Income tax expense | — | — | ||||||
Net Income (Loss) | 462,480 | 29,339 | ||||||
Dividend and accretion on preferred stock | 48,183 | 47,451 | ||||||
Net Income (Loss) applicable to common shareholders | $ | 414,297 | $ | (18,112 | ) | |||
Income (Loss) per share — basic | $ | 0.23 | $ | (0.01 | ) |
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Year to Date | ||||||||||||||||
March 31, | Change | |||||||||||||||
2011 | 2010 | Amount | Percentage | |||||||||||||
INCOME STATEMENT | ||||||||||||||||
Interest Income | $ | 1,588 | $ | 1,273 | $ | 315 | 24.8 | % | ||||||||
Interest Expense | 329 | 324 | 4 | 1.3 | % | |||||||||||
Net Interest Income | 1,260 | 949 | 311 | 32.8 | % | |||||||||||
Provision for loan loss | 39 | 112 | (73 | ) | -65.3 | % | ||||||||||
Non-interest income | 325 | 27 | 298 | 1103.1 | % | |||||||||||
Non-interest expense | 1,083 | 834 | 249 | 29.9 | % | |||||||||||
Income (loss) before Income Taxes | 462 | 29 | 433 | 1476.3 | % | |||||||||||
Income tax expense | — | — | — | 0.0 | % | |||||||||||
Net Income (Loss) | 462 | 29 | 433 | 1476.3 | % | |||||||||||
Dividend and accretion on preferred stock | 48 | 47 | 1 | 1.5 | % | |||||||||||
Net Income (Loss) — common shareholders | $ | 414 | $ | (18 | ) | $ | 432 | 2387.4 | % | |||||||
Income (loss) per share — basic & diluted | $ | 0.23 | $ | (0.01 | ) | $ | 0.24 | 2387.4 | % | |||||||
BALANCE SHEET DATA | ||||||||||||||||
Total assets | 116,521 | 98,810 | 17,711 | 17.9 | % | |||||||||||
Average Assets | 115,445 | 97,520 | 17,925 | 18.4 | % | |||||||||||
Total loans | 98,205 | 86,153 | 12,052 | 14.0 | % | |||||||||||
Allowance for loan loss (ALLL) | 1,487 | 1,255 | 232 | 18.5 | % | |||||||||||
Total deposits | 104,588 | 87,733 | 16,855 | 19.2 | % | |||||||||||
Other borrowings | — | — | — | 0.0 | % | |||||||||||
Shareholders’ equity | 11,403 | 10,718 | 685 | 6.4 | % | |||||||||||
Average Equity | 11,140 | 10,723 | 418 | 3.9 | % | |||||||||||
ASSET DUALITY | ||||||||||||||||
Other real estate owned (OREO) | — | — | — | 0.0 | % | |||||||||||
Net charge-offs | — | 31 | (31 | ) | -100.0 | % | ||||||||||
Non-accrual loans | 298 | — | 298 | 0.0 | % | |||||||||||
(2) Non-performing assets (NPA) | 298 | — | 298 | 0.0 | % | |||||||||||
Non-accrual loans / total loans | 0.30 | % | 0.00 | % | 0.30 | % | 0.0 | % | ||||||||
Allowance for loan loss / total loans | 1.51 | % | 1.46 | % | 0.06 | % | 4.0 | % | ||||||||
PERFORMANCE MEASUREMENTS | ||||||||||||||||
Net interest margin (tax equivalent) | 4.49 | % | 4.06 | % | 0.43 | % | 10.6 | % | ||||||||
(1) Return on average assets (annualized) | 1.62 | % | 0.12 | % | 1.50 | % | 1231.6 | % | ||||||||
(1) Return on average common equity (annualized) | 24.26 | % | 1.62 | % | 22.64 | % | 1394.5 | % | ||||||||
Efficiency ratio | 68.36 | % | 85.48 | % | -17.12 | % | 20.0 | % | ||||||||
Tier 1 Leverage Ratio (Bank only) | 8.33 | % | 8.80 | % | -0.47 | % | -5.34 | % | ||||||||
Equity / Assets | 9.79 | % | 10.85 | % | -1.06 | % | -9.8 | % | ||||||||
Total loans / Total deposits | 93.9 | % | 98.2 | % | -4.30 | % | -4.4 | % | ||||||||
Book value per share | $ | 4.44 | $ | 4.07 | $ | 0.37 | 9.1 | % | ||||||||
Income (loss) per share — basic & diluted | $ | 0.23 | $ | (0.01 | ) | $ | 0.24 | 2387.4 | % | |||||||
Shares outstanding | 1,800,000 | 1,800,000 | — | 0.0 | % |
(1) | Amount is computed on net income before preferred dividends. | |
(2) | Non-performing assets includes non-accrual loans and other real estate owned. |
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
Quarter Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||
Interest Income | $ | 1,588 | $ | 1,554 | $ | 1,506 | $ | 1,418 | $ | 1,273 | ||||||||||
Interest Expense | 329 | 327 | 337 | 352 | 324 | |||||||||||||||
Net Interest Income | 1,260 | 1,226 | 1,170 | 1,067 | 949 | |||||||||||||||
Provision for loan loss | 39 | 49 | 256 | 177 | 112 | |||||||||||||||
Non-interest income | 325 | 37 | 24 | 37 | 27 | |||||||||||||||
Non-interest expense | 1,083 | 1,046 | 840 | 792 | 834 | |||||||||||||||
Income (loss) before Income Taxes | 462 | 169 | 98 | 135 | 29 | |||||||||||||||
Income tax expense | — | — | — | — | — | |||||||||||||||
Net Income (Loss) | 462 | 169 | 98 | 135 | 29 | |||||||||||||||
Dividend and accretion on preferred stock | 48 | 48 | 48 | 49 | 47 | |||||||||||||||
Net Income (Loss) applicable to common | $ | 414 | $ | 121 | $ | 50 | $ | 85 | $ | (18 | ) | |||||||||
Income (loss) per share — basic & diluted | $ | 0.23 | $ | 0.07 | $ | 0.03 | $ | 0.05 | $ | (0.01 | ) | |||||||||
BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | 116,521 | 110,335 | 111,254 | 100,168 | 98,810 | |||||||||||||||
Average Assets | 115,435 | 111,932 | 110,091 | 106,960 | 97,520 | |||||||||||||||
Total loans | 98,205 | 100,379 | 94,284 | 90,478 | 86,153 | |||||||||||||||
Allowance for loan loss (ALLL) | 1,487 | 1,448 | 1,424 | 1,167 | 1,255 | |||||||||||||||
Total deposits | 104,588 | 97,250 | 99,997 | 99,804 | 87,733 | |||||||||||||||
Other borrowings | — | 1,469 | — | — | — | |||||||||||||||
Shareholders’ equity | 11,403 | 10,986 | 10,899 | 10,822 | 10,718 | |||||||||||||||
Average Equity | 11,140 | 10,935 | 10,860 | 10,770 | 10,723 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Other real estate owned (OREO) | — | — | — | — | — | |||||||||||||||
Net charge-offs | — | 24 | — | 265 | 31 | |||||||||||||||
Non-accrual loans | 298 | 298 | — | — | — | |||||||||||||||
(2) Non-performing assets (NPA) | 298 | 298 | — | — | — | |||||||||||||||
Non-accrual loans / total loans | 0.30 | % | 0.30 | % | 0,00 | % | 0.00 | % | 0.00 | % | ||||||||||
Allowance for loan loss / total loans | 1.51 | % | 1.44 | % | 1.51 | % | 1.29 | % | 1.46 | % | ||||||||||
PERFORMANCE MEASUREMENTS | ||||||||||||||||||||
Net interest margin (tax equivalent) | 4.49 | % | 4.69 | % | 4.41 | % | 4.13 | % | 4.06 | % | ||||||||||
(1) Return on average assets (annualized) | 1.62 | % | 0.60 | % | 0.35 | % | 0.50 | % | 0.12 | % | ||||||||||
(1) Return on average common equity (annualized) | 24.26 | % | 8.89 | % | 5.21 | % | 7.32 | % | 1.62 | % | ||||||||||
Efficiency ratio | 68.36 | % | 82.78 | % | 70.39 | % | 71.78 | % | 85.48 | % | ||||||||||
Tier 1 Leverage Ratio (Bank only) | 8.33 | % | 8.15 | % | 8.20 | % | 8.50 | % | 8.80 | % | ||||||||||
Equity / Assets | 9.79 | % | 9.96 | % | 9.80 | % | 10.80 | % | 10.85 | % | ||||||||||
Total loans / Total deposits | 93.9 | % | 103.2 | % | 94.3 | % | 90.7 | % | 98.2 | % | ||||||||||
Book value per share | $ | 4.44 | $ | 4.21 | $ | 4.16 | $ | 4.12 | $ | 4.07 | ||||||||||
Income (loss) per share — basic & diluted | $ | 0.23 | $ | 0.07 | $ | 0.03 | $ | 0.05 | $ | (0.01 | ) | |||||||||
Shares outstanding | 1,800,000 | 1,800,000 | 1,800,000 | 1,800,000 | 1,800,000 |
(1) | Amount is computed on net income before preferred dividends. | |
(2) | Non-performing assets includes non-accrual loans and other real estate owned. |