Birmingham Bloomfield Bancshares (BBBI) 8-K Announces Third Quarter Results

EXHIBIT 99.1

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

October 18, 2011

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

Birmingham Bloomfield Bancshares, Inc.

Announces Third Quarter Results

BIRMINGHAM,MI - Birmingham Bloomfield Bancshares, Inc. (OTC Bulletin Board: BBBI.OB) (“the Company”), the holding company for Bank of Birmingham, today announced results for the three and nine month periods ending September 30, 2011. The performance produced record earnings and represents the sixth consecutive quarter of profitability.

The Company reported net income of $109,000 or $0.06 per common share for the third quarter of 2011 compared to net income of $50,000 or $0.03 per common share for the same period of 2010. Net income for the nine month period ended September 30, 2011 was $785,000 or $0.44 per common share compared to $117,000 or $0.06 per common share for the same period last year.

Results of Operation

The Company reported net interest income of $1.281 million for the third quarter of 2011, a 9.5% increase relative to the same quarter of 2010 and a 2.4% increase compared to the most recent linked quarter. The improvement is a direct result of loan growth and lower cumulative funding costs. Net interest margin for the three month period ended September 30, 2011 was 4.44%, marginally lower than the second quarter of 2011 as the Company experienced mild rate compression due to lower asset yields and a change in the mix of the balance sheet. Net interest income for the first nine months of 2011 was $3.792 million, an increase of 19.0% relative to the same period of 2010. The increase in core revenue is a result of earning asset growth and a reduction in deposit expense. Net interest margin for the year to date period ended September 30, 2011 was 4.48% compared to 4.19% for the same period of 2010.

The Company provided $105,000 in provision expense during the third quarter of 2011, a decrease of $151,000 from the same period last year. Total provision expense for the year to date period ending September 30, 2011 was $159,000, compared to $545,000 for same period of 2010. The decrease in provision expense is attributable to the limited number of classified assets and reduction in charge off activity. Net charge offs in 2011 totaled $108,000, compared to $296,000 for the same period last year.

The Company continues to generate significant revenue from non-interest income sources. Net-interest income for the third quarter of 2011 was $319,000, compared to $24,000 for the same quarter in 2010. Total non-interest income for the year to date period ending September 30, 2011

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

was $924,000 a significant increase relative to the $88,000 reported for the same period last year. The increase for both periods presented is the result of revenue from SBA loan sales and mortgage banking activity; new products offered by the Company in 2011. Income from the sale of residential mortgages in the secondary market totaled $108,000 and $167,000 for the three and nine month periods respectively. The Company also continues to participate in the Small Business Administrative loan program to generate additional revenue. In 2011, the Company earned $186,000 and $687,000, respectively on sales of SBA loans for the quarter and year to date periods presented.

Total non-interest expense for the third quarter of 2011 was $1.317 million, an increase of $477,000 compared to the prior year. Year to date non-interest expense for 2011 totaled $3.607 million, compared to $2.467 million for the same period last year. The increase in expenses are the result of costs associated with developing the mortgage division, expanding office space at the main branch location, hiring additional personnel to accommodate anticipated growth and engaging professionals to assist the Company with strategic initiatives.

Balance Sheet

Total assets as of September 30, 2011 were $124.743 million, a 5.2% increase from the period ended June 30, 2011, and a 13.1% increase from December 31, 2010. The balance sheet growth is a result of successfully attracting core deposits to fund new loan volume. Although the current lending market remains soft, quality opportunities are available. The Company continues to focus on generating organic growth in our primary markets by offering a variety of products and providing exceptional customer service.

The asset quality of the Company remains strong. Nonperforming assets at the end of the quarter totaled $298,000 and the allowance for loan loss represented 1.46% of total loans. At September 30, 2011 the Company’s book value was $4.65 and the subsidiary bank continues to be classified as well capitalized based on regulatory guidelines.

Chief Executive Officer, Rob Farr issued the results and commented, “The Company reported our sixth consecutive quarter of profitability and record earnings for the first nine months of 2011. Our margin remains very strong despite the current rate environment and we achieved a Return on Average Assets before preferred dividends of 1.08% for the year to date period. We have been successful in diversifying our revenue and growing the balance sheet despite a depressed market. The strategic initiatives we established at the beginning of the year are having a material impact on the performance of the Company and provide a strong foundation for the future of the franchise. We are excited about our prospects as we move forward and believe we are in a good position to take advantage of future opportunities.”

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;

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

professionals; and individuals who work or reside in the Oakland County market area. Every Bank of Birmingham customer has a relationship manager who serves a single point of contact empowered to provide all the bank’s services.

Birmingham Bloomfield Bancshares, Inc. marketmakers include Howe Barnes Hoefer and Arnett (acquired by Raymond James), Chicago; Monroe Securities, Chicago; Hill, Thompson, Magid & Co; Jersey City, New Jersey; and Hudson Securities, Inc., Jersey City, New Jersey.

Forward-Looking Statements

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include: changes in interest rates and interest-rate relationships; changes in the national and local economy; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and other factors included in the 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)

Birmingham Bloomfield Bancshares, Inc.

Consolidated Balance Sheet (Unaudited)

	September 30, 2011			December 31, 2010			September 30, 2010
ASSETS
Cash and due from banks	$	15,212,448		$	5,300,368		$	11,661,891
Federal funds sold		—			65,936			50,299
Total cash and cash equivalents		15,212,448			5,366,304			11,712,190
Securities available-for-sale		4,182,261			3,200,002			3,801,572
Securities held-to-maturity		—			—��			—
Federal Home Loan Bank Stock		169,900			160,200			162,100
Total securities		4,352,161			3,360,202			3,963,672
Loans held for Sale		1,232,221			322,500			—
Portfolio loans
Consumer loans		1,165,438			1,054,573			1,048,882
Mortgage loans		10,641,099			11,335,007			11,203,167
Commercial loans		90,773,268			87,989,098			82,032,057
Total loans		102,579,805			100,378,678			94,284,106
Less: Allowance for loan loss		1,499,350			1,448,096			1,424,006
Net loans		101,080,455			98,930,582			92,860,100
Premises and equipment, net		1,446,008			1,359,510			1,366,918
Accrued interest receivable and other assets		1,419,754			995,438			1,351,593
TOTAL ASSETS	$	124,743,047		$	110,334,536		$	111,254,473
LIABILITIES
Deposits
Noninterest-bearing	$	15,830,438		$	14,190,295		$	12,708,760
Interest-bearing		95,340,302			83,060,199			87,288,547
Total deposits		111,170,740			97,250,494			99,997,307
Short term borrowings		—			1,469,095			—
Accrued interest payable, taxes and other liabilities		516,351			629,422			358,610
Total liabilities		111,687,091			99,349,011			100,355,917
SHAREHOLDERS’ EQUITY
Senior preferred stock A		—			1,635,000			1,635,000
Discount on senior preferred stock A		—			(61,027	)		(65,474	)
Warrant preferred stock B		—			82,000			82,000
Premium on warrant preferred stock B		—			6,634			7,117
Senior preferred stock C		—			1,744,000			1,744,000
Discount on senior preferred stock C		—			—			—
Senior preferred stock D		4,621,000			—			—
Common Stock, no par value		17,066,618			17,034,330			17,034,330
Authorized – 4,500,000 shares, Issued and outstanding – 1,812,662
1,800,000 and 1,800,000 shares respectively
Accumulated other comprehensive income		152,009			112,908			150,965
Additional paid in capital		—			—			—
Additional paid in capital - share based payments		493,154			493,154			493,154
Accumulated deficit		(9,276,825	)		(10,061,474	)		(10,182,536	)
Total shareholders’ equity		13,055,956			10,985,525			10,898,556
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	124,743,047		$	110,334,536		$	111,254,473
		—			—			—
Book value per share	$	4.65		$	4.21		$	4.16

Birmingham Bloomfield Bancshares, Inc.

Consolidated Statement of Income (Unaudited)

	For the three months ended September 30,				For the nine months ended September 30,
	2011		2010		2011		2010
Interest Income
Interest and fees on loans
Commercial loans	$	1,419,136	$	1,330,539	$	4,234,101	$	3,696,518
Installment loans		16,621		13,270		43,168		32,195
Mortgage loans		21,335		20,201		56,504		56,070
Home Equity loans		94,114		94,064		289,706		272,625
Late charges and fees		3,460		2,953		21,240		16,515
Total loan interest and fee income		1,554,666		1,461,027		4,644,719		4,073,923
Interest bearing deposits		4,940		9,967		15,291		21,283
Federal Funds Sold		—		51		13		1,299
Interest on investment securities
Taxable		22,064		35,215		74,786		101,270
Tax-exempt		408		—		408		—
Total investment income		22,472		35,215		75,194		101,270
Total interest income		1,582,078		1,506,260		4,735,217		4,197,775
Interest Expense
Interest on deposits		301,195		336,660		929,127		1,012,639
Interest on borrowed funds		—		—		14,509		—
Total interest expense		301,195		336,660		943,636		1,012,639
Net Interest Income		1,280,883		1,169,600		3,791,581		3,185,136
Provision for loan losses		105,000		255,652		159,000		544,949
Net Interest Income After Provision for Loan Losses		1,175,883		913,948		3,632,581		2,640,187
Non-interest Income
Service charge income		15,208		14,576		39,369		36,654
Mortgage banking activities		108,384		—		167,145		—
SBA loan sales		186,151		—		686,884		—
Other income		8,808		9,896		30,426		51,718
Total non-interest income		318,551		24,472		923,824		88,372
Non-interest Expense
Salaries and employee benefits		729,641		400,185		1,955,026		1,157,192
Occupancy expense		145,294		109,796		388,979		330,271
Equipment expense		55,722		33,601		133,310		103,670
Advertising		29,276		24,727		110,019		76,967
Data Processing		57,379		56,870		166,952		162,000
Professional fees		105,963		81,234		363,403		247,622
Loan origination expense		37,223		18,346		86,273		58,601
Other expense		156,963		115,721		403,434		330,405
Total non-interest expense		1,317,461		840,480		3,607,396		2,466,728
Net Income Before Income Taxes		176,973		97,940		949,009		261,831
Income tax expense		—		—		—		—
Net Income		176,973		97,940		949,009		261,831
Dividend and accretion on preferred stock		67,995		48,273		164,360		144,931
Net Income applicable to common shareholders	$	108,978	$	49,667	$	784,649	$	116,900
Income per share - basic	$	0.06	$	0.03	$	0.44	$	0.06

Birmingham Bloomfield Bancshares, Inc.

Financial Summary and Selected Ratios (Unaudited)

(Dollars in thousands except per share data)

	Year to Date
	September 30,						Change
	2011			2010			Amount			Percentage
INCOME STATEMENT
Interest Income	$	4,735		$	4,198		$	537			12.8	%
Interest Expense		944			1,013			(69	)		-6.8	%
Net Interest Income		3,792			3,185			606			19.0	%
Provision for loan loss		159			545			(386	)		-70.8	%
Non-interest income		924			88			835			945.4	%
Non-interest expense		3,607			2,467			1,141			46.2	%
Net Income before Income Taxes		949			262			687			262.5	%
Income tax expense		—			—			—			0.0	%
Net Income		949			262			687			262.5	%
Dividend and accretion on preferred stock		164			145			19			13.4	%
Net Income - common shareholders	$	785		$	117		$	668			571.2	%
Income per share - basic & diluted	$	0.44		$	0.06		$	0.37			571.0	%
BALANCE SHEET DATA
Total assets		124,743			111,254			13,489			12.1	%
Average Assets		118,010			104,903			13,107			12.5	%
Total loans		102,580			94,284			8,296			8.8	%
Allowance for loan loss (ALLL)		1,499			1,424			75			5.3	%
Total deposits		111,171			99,997			11,173			11.2	%
Other borrowings		—			—			—			0.0	%
Shareholders’ equity		13,056			10,899			2,157			19.8	%
Average Equity		11,728			10,785			943			8.7	%
ASSET QUALITY
Other real estate owned (OREO)		298			—			298			0.0	%
Net charge-offs		108			296			(188	)		-63.5	%
Non-accrual loans		—			298			(298	)		-100.0	%
(2) Non-performing assets (NPA)		298			298			(0	)		-0.1	%
Non-accrual loans / total loans		0.00	%		0.32	%		-0.32	%		-100.0	%
Allowance for loan loss / total loans		1.46	%		1.51	%		-0.05	%		-3.2	%
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent)		4.48	%		4.19	%		0.29	%		6.9	%
(1) Return on average assets (annualized)		1.08	%		0.33	%		0.75	%		223.6	%
(1) Return on average common equity (annualized)		15.80	%		4.74	%		11.06	%		233.5	%
Efficiency ratio		76.50	%		75.35	%		1.15	%		1.5	%
Tier 1 Leverage Ratio (Bank only)		9.22	%		8.19	%		1.03	%		12.58	%
Equity / Assets		10.47	%		9.80	%		0.67	%		6.8	%
Total loans / Total deposits		92.3	%		94.3	%		-2.01	%		-2.1	%
Book value per share	$	4.65		$	4.16		$	0.49			11.7	%
Income (loss) per share - basic & diluted	$	0.44		$	0.06		$	0.37			571.0	%
Shares outstanding		1,812,662			1,800,000			12,662			0.7	%

(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)

	Quarter Ended
	September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010
INCOME STATEMENT
Interest Income	$	1,582		$	1,565		$	1,588		$	1,554		$	1,506
Interest Expense		301			314			329			327			337
Net Interest Income		1,281			1,251			1,260			1,226			1,170
Provision for loan loss		105			15			39			49			256
Non-interest income		319			280			325			37			24
Non-interest expense		1,317			1,207			1,083			1,046			840
Net Income before Income Taxes		177			310			462			169			98
Income tax expense		—			—			—			—			—
Net Income		177			310			462			169			98
Dividend and accretion on preferred stock		68			48			48			48			48
Net Income applicable to common shareholders	$	109		$	261		$	414		$	121		$	50
Income per share - basic & diluted	$	0.06		$	0.15		$	0.23		$	0.07		$	0.03
BALANCE SHEET DATA
Total assets		124,743			118,604			116,521			110,335			111,254
Average Assets		121,526			117,002			115,435			111,366			110,091
Total loans		102,580			100,079			98,205			100,379			94,284
Allowance for loan loss (ALLL)		1,499			1,502			1,487			1,448			1,424
Total deposits		111,171			106,305			104,588			97,250			99,997
Other borrowings		—			—			—			1,469			—
Shareholders’ equity		13,056			11,696			11,403			10,986			10,899
Average Equity		12,520			11,481			11,167			10,942			10,860
ASSET QUALITY
Other real estate owned (OREO)		298			298			—			—			—
Net charge-offs		108			—			—			24			—
Non-accrual loans		—			—			298			298			298
(2) Non-performing assets (NPA)		298			298			298			298			298
Non-accrual loans / total loans		0.00	%		0.00	%		0.30	%		0.30	%		0.32	%
Allowance for loan loss / total loans		1.46	%		1.50	%		1.51	%		1.44	%		1.51	%
PERFORMANCE MEASUREMENTS
Net interest margin (tax equivalent)		4.44	%		4.51	%		4.49	%		4.46	%		4.32	%
(1) Return on average assets (annualized)		0.58	%		1.06	%		1.62	%		0.60	%		0.35	%
(1) Return on average common equity (annualized)		8.49	%		15.39	%		24.17	%		8.89	%		5.21	%
Efficiency ratio		82.37	%		78.80	%		68.36	%		82.78	%		70.39	%
Tier 1 Leverage Ratio (Bank only)		9.22	%		8.54	%		8.33	%		8.15	%		8.19	%
Equity / Assets		10.47	%		9.86	%		9.79	%		9.96	%		9.80	%
Total loans / Total deposits		92.3	%		94.1	%		93.9	%		103.2	%		94.3	%
Book value per share	$	4.65		$	4.60		$	4.44		$	4.21		$	4.16
Income (loss) per share - basic & diluted	$	0.06		$	0.15		$	0.23		$	0.07		$	0.03
Shares outstanding		1,812,662			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.