BIRMINGHAM, MI--(Marketwired - Jan 20, 2015) - Birmingham Bloomfield Bancshares, Inc. (
The Company reported net income of $413,000 or $0.22 per common share for the fourth quarter of 2014 compared to net income of $421,000 or $0.23 per common share for the same period of 2013. On a pre-tax, pre-provision basis, net income for the quarter increased 52.4% relative to the fourth quarter of 2013. Net income for the year to date period ended December 31, 2014 was $1,581,000 or $0.85 per common share compared to $1,207,000 or $0.66 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 30.9% relative to 2013.
Chief Executive Officer, Rob Farr, issued the results and commented, "This was another solid year for the organization. We exceeded $200.0 million in total assets, delivered record profitability on strong asset growth, improved profit margins and a more efficient cost structure. The Company reported a pre-tax, pre-provision ROA of 1.32% and book value reached $8.24. Year to date earnings per share increased 29.4% over 2013 and our stock price was $7.75 at December 31, 2014, representing year over year growth of 51.1%. We are proud of the results and look forward to building on the momentum in 2015."
Results of Operation
The Company reported net interest income of $2.089 million for the fourth quarter of 2014, an increase of 14.6% compared to the same quarter of 2013 and a 7.2% increase relative to the third quarter of 2014. Net interest margin for the quarter was 4.17% compared to 3.92% for the most recent linked quarter. This is the second consecutive quarter of margin expansion and is a function of positive improvement in the earning asset mix of the Company's balance sheet. Net interest income for the full year of 2014 was $7.724 million, an increase of 13.8% relative to the same period of 2013. The increase was the direct result of growth in earning assets.
The Company provided $167,000 in provision expense during the fourth quarter of 2014 and $192,000 for the year to date period ending December 31, 2014. The amount of provision expense recorded in 2014 was entirely a function of new loan growth. The Company did not report any charge offs during the year and the overall aggregate level of non-performing loans declined to 0.10% of total loans.
Total non-interest income for the fourth quarter of 2014 was $174,000, compared to $252,000 for the same period of 2013. For the year to date period ending December 31, 2014 total non-interest income was $725,000, a decrease of $137,000 relative to the prior year. The decrease was a result of reduced loan volume related to commercial SBA loans sold in the secondary market and a decline in residential mortgage brokerage fees. Service charges on deposit products have increased relative to the prior year due to aggregate growth in the portfolio and other income experienced modest growth during the period.
Total non-interest expense for the fourth quarter of 2014 was $1.450 million, compared to $1.408 million for the most recent linked quarter and $1.460 million for the second quarter of 2014. Year to date non-interest expense for 2014 was $5.776 million, an increase of $180,000 or 3.2% relative to 2013. Management's focus in 2014 was on controlling costs and improving operational efficiency. The increase in expenses during the year are a result of an investment in the Company's infrastructure to accommodate growth, including adding additional personnel, products and services.
Balance Sheet
Total assets as of December 31, 2014 were $207.0 million, an increase of 9.7% from the prior year. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $182.8 million at the end of the fourth quarter, an increase of $12.2 million from September 30, 2014 and a 15.1% increase from fourth quarter of 2013. The growth was a result of our focused business development efforts, favorable market conditions and diverse product options. Total deposits as of December 31, 2014 were $186.0 million, an increase of $16.4 million from 2013. The growth was a function of our personalized, service based approach and ability to successfully expand relationships with existing customers. The Bank continues to be classified as well capitalized based on regulatory guidelines and is a recommended institution by Bauer Financial.
Birmingham Bloomfield Bancshares, Inc. is the holding company for Bank of Birmingham, a full-service community bank serving Oakland County. Bank of Birmingham is dedicated to providing financial services to small and medium sized businesses; their owners and employees; professionals; and individuals who work or reside in the Oakland County market area. Every Bank of Birmingham customer has a relationship manager who serves a single point of contact empowered to provide all the bank's services. Birmingham Bloomfield Bancshares, Inc. marketmakers include Monroe Securities, Chicago; Boenning & Scattergood, Philadelphia; Stockcross Financial Services.
Forward-Looking Statements
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include: changes in interest rates and interest-rate relationships; changes in the national and local economy; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and other factors. The Company assumes no responsibility to update forward-looking statements.
(Unaudited Consolidated Financial Statements Follow)
Birmingham Bloomfield Bancshares, Inc. | |||||||||||
Consolidated Balance Sheet (Unaudited) | |||||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 15,593,072 | $ | 22,585,199 | |||||||
Federal funds sold | - | - | |||||||||
Total cash and cash equivalents | 15,593,072 | 22,585,199 | |||||||||
Securities available-for-sale | 4,804,691 | 2,626,716 | |||||||||
Securities held-to-maturity | - | - | |||||||||
Federal Home Loan Bank Stock | 281,900 | 248,000 | |||||||||
Total securities | 5,086,591 | 2,874,716 | |||||||||
Portfolio loans | |||||||||||
Consumer loans | 2,104,262 | 1,697,269 | |||||||||
Mortgage loans | 24,597,099 | 21,615,166 | |||||||||
Commercial leases | 27,234,054 | 13,719,232 | |||||||||
Commercial loans | 128,819,717 | 121,796,101 | |||||||||
Total loans | 182,755,132 | 158,827,768 | |||||||||
Less: Allowance for loan loss | 2,060,587 | 1,868,587 | |||||||||
Net loans | 180,694,545 | 156,959,181 | |||||||||
Premises and equipment, net | 1,097,025 | 1,224,764 | |||||||||
Bank owned life insurance | 2,323,240 | 2,256,410 | |||||||||
Deferred Tax Asset | 1,052,423 | 1,687,277 | |||||||||
Accrued interest receivable and other assets | 1,176,587 | 1,091,237 | |||||||||
TOTAL ASSETS | $ | 207,023,483 | $ | 188,678,784 | |||||||
LIABILITIES | |||||||||||
Deposits | |||||||||||
Noninterest-bearing | $ | 45,886,004 | $ | 39,235,022 | |||||||
Interest-bearing | 140,140,219 | 130,376,667 | |||||||||
Total deposits | 186,026,224 | 169,611,689 | |||||||||
Short term borrowings | - | - | |||||||||
Accrued interest payable, taxes and other liabilities | 1,069,698 | 842,164 | |||||||||
Total liabilities | 187,095,922 | 170,453,853 | |||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Senior preferred stock, series D | 4,621,000 | 4,621,000 | |||||||||
Common Stock, no par value | 17,281,679 | 17,163,818 | |||||||||
Authorized - 9,000,000 shares, Issued and outstanding - 1,857,128 and 1,836,662 shares respectively | |||||||||||
Accumulated other comprehensive income | 35,634 | 31,813 | |||||||||
Additional paid in capital - share based payments | 493,154 | 493,154 | |||||||||
Accumulated deficit | (2,503,906 | ) | (4,084,854 | ) | |||||||
Total shareholders' equity | 19,927,561 | 18,224,931 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 207,023,483 | $ | 188,678,784 | |||||||
Book value per share | $ | 8.24 | $ | 7.41 | |||||||
Birmingham Bloomfield Bancshares, Inc. | ||||||||||||||||
Consolidated Statement of Income (Unaudited) | ||||||||||||||||
For the three months ended | For the twelve months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | ||||||||||||||||
Commercial loans | $ | 1,701,146 | $ | 1,668,979 | $ | 6,548,241 | $ | 6,301,192 | ||||||||
Commercial leases | 301,635 | 150,702 | 948,737 | 410,947 | ||||||||||||
Consumer loans | 33,132 | 26,863 | 118,612 | 111,683 | ||||||||||||
Mortgage loans | 147,062 | 114,917 | 570,958 | 405,945 | ||||||||||||
Home Equity loans | 110,556 | 88,405 | 414,813 | 348,000 | ||||||||||||
Late charges and fees | 14,260 | 5,831 | 29,461 | 38,049 | ||||||||||||
Total loan interest and fee income | 2,307,791 | 2,055,697 | 8,630,822 | 7,615,816 | ||||||||||||
Interest bearing deposits | 9,481 | 10,288 | 33,699 | 33,741 | ||||||||||||
Federal Funds Sold | 4,156 | - | 19,085 | - | ||||||||||||
Interest on investment securities | ||||||||||||||||
Taxable | 25,225 | 18,019 | 97,530 | 81,414 | ||||||||||||
Tax-exempt | - | 953 | 1,258 | 3,859 | ||||||||||||
Total investment income | 25,225 | 18,972 | 98,788 | 85,273 | ||||||||||||
Total interest income | 2,346,653 | 2,084,957 | 8,782,394 | 7,734,830 | ||||||||||||
Interest Expense | ||||||||||||||||
Interest on deposits | 257,787 | 261,538 | 1,057,997 | 944,277 | ||||||||||||
Interest on borrowed funds | 17 | - | 17 | - | ||||||||||||
Total interest expense | 257,804 | 261,538 | 1,058,014 | 944,277 | ||||||||||||
Net Interest Income | 2,088,849 | 1,823,420 | 7,724,380 | 6,790,554 | ||||||||||||
Provision for loan losses | 167,000 | (120,000 | ) | 192,000 | 160,000 | |||||||||||
Net Interest Income After Provision for Loan Losses | 1,921,849 | 1,943,420 | 7,532,380 | 6,630,554 | ||||||||||||
Non-interest Income | ||||||||||||||||
Service charge income | 24,350 | 23,490 | 121,675 | 78,972 | ||||||||||||
Mortgage banking activities | 15,284 | 22,955 | 83,639 | 182,142 | ||||||||||||
SBA loan sales | 99,443 | 174,975 | 392,732 | 480,610 | ||||||||||||
Other income | 34,451 | 30,734 | 126,817 | 120,170 | ||||||||||||
Total non-interest income | 173,528 | 252,154 | 724,863 | 861,894 | ||||||||||||
Non-interest Expense | ||||||||||||||||
Salaries and employee benefits | 798,808 | 776,331 | 3,205,502 | 3,044,573 | ||||||||||||
Occupancy expense | 127,266 | 130,575 | 521,595 | 498,979 | ||||||||||||
Equipment expense | 41,823 | 48,820 | 171,901 | 207,556 | ||||||||||||
Advertising | 55,139 | 81,036 | 213,113 | 239,506 | ||||||||||||
Data Processing | 64,363 | 97,333 | 276,526 | 298,921 | ||||||||||||
Professional fees | 168,100 | 113,882 | 589,382 | 514,365 | ||||||||||||
Loan origination expense | 26,411 | 132,161 | 189,302 | 230,467 | ||||||||||||
Regulatory Assessments | 39,053 | 39,178 | 153,018 | 139,669 | ||||||||||||
Other expense | 129,361 | 123,490 | 455,876 | 422,473 | ||||||||||||
Total non-interest expense | 1,450,324 | 1,542,807 | 5,776,215 | 5,596,510 | ||||||||||||
Net Income Before Income Taxes | 645,053 | 652,767 | 2,481,028 | 1,895,938 | ||||||||||||
Income tax expense | 220,888 | 220,313 | 853,870 | 642,282 | ||||||||||||
Net Income | 424,165 | 432,454 | 1,627,158 | 1,253,656 | ||||||||||||
Dividend on preferred stock | 11,552 | 11,552 | 46,210 | 46,210 | ||||||||||||
Net Income applicable to common shareholders | $ | 412,613 | $ | 420,902 | $ | 1,580,948 | $ | 1,207,446 | ||||||||
Income per share - basic | $ | 0.22 | $ | 0.23 | $ | 0.85 | $ | 0.66 |
Birmingham Bloomfield Bancshares, Inc. | |||||||||||||||||
Financial Summary and Selected Ratios (Unaudited) | |||||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||||
Year to Date | |||||||||||||||||
December 31, | Change | ||||||||||||||||
2014 | 2013 | Amount | Percentage | ||||||||||||||
INCOME STATEMENT | |||||||||||||||||
Interest Income | $ | 8,782 | $ | 7,735 | $ | 1,048 | 13.5 | % | |||||||||
Interest Expense | 1,058 | 944 | 114 | 12.0 | % | ||||||||||||
Net Interest Income | 7,724 | 6,791 | 934 | 13.8 | % | ||||||||||||
Provision for loan loss | 192 | 160 | 32 | 20.0 | % | ||||||||||||
Non-interest income | 725 | 862 | (137 | ) | -15.9 | % | |||||||||||
Non-interest expense | 5,776 | 5,597 | 180 | 3.2 | % | ||||||||||||
Net Income before Income Taxes | 2,481 | 1,896 | 585 | 30.9 | % | ||||||||||||
Income tax expense | 854 | 642 | 212 | 32.9 | % | ||||||||||||
Net Income | 1,627 | 1,254 | 374 | 29.8 | % | ||||||||||||
Dividend on preferred stock | 46 | 46 | - | 0.0 | % | ||||||||||||
Net Income - common shareholders | $ | 1,581 | $ | 1,207 | $ | 374 | 30.9 | % | |||||||||
Income per share - basic & diluted | $ | 0.85 | $ | 0.66 | $ | 0.19 | 29.4 | % | |||||||||
BALANCE SHEET DATA | |||||||||||||||||
Total assets | 207,023 | 188,679 | 18,345 | 9.7 | % | ||||||||||||
Average Assets | 202,943 | 170,554 | 32,389 | 19.0 | % | ||||||||||||
Total loans | 182,755 | 158,828 | 23,927 | 15.1 | % | ||||||||||||
Allowance for loan loss (ALLL) | 2,061 | 1,869 | 192 | 10.3 | % | ||||||||||||
Total deposits | 186,026 | 169,612 | 16,415 | 9.7 | % | ||||||||||||
Other borrowings | - | - | - | 0.0 | % | ||||||||||||
Shareholders' equity | 19,928 | 18,225 | 1,703 | 9.3 | % | ||||||||||||
Average Equity | 19,083 | 17,599 | 1,484 | 8.4 | % | ||||||||||||
ASSET QUALITY | |||||||||||||||||
Other real estate owned (OREO) | - | - | - | 0.0 | % | ||||||||||||
Net charge-offs | - | 336 | (336 | ) | -100.0 | % | |||||||||||
Non-accrual loans | 187 | 229 | (42 | ) | -18.4 | % | |||||||||||
(2) | Non-performing assets (NPA) | 187 | 229 | (42 | ) | -18.4 | % | ||||||||||
Non-accrual loans / total loans | 0.10 | % | 0.14 | % | -0.04 | % | -29.0 | % | |||||||||
Allowance for loan loss / total loans | 1.13 | % | 1.18 | % | -0.05 | % | -4.2 | % | |||||||||
PERFORMANCE MEASUREMENTS | |||||||||||||||||
Net interest margin (tax equivalent) | 4.06 | % | 4.40 | % | -0.34 | % | -7.7 | % | |||||||||
(1) | Return on average assets (annualized) | 0.80 | % | 0.74 | % | 0.06 | % | 8.1 | % | ||||||||
(3) | Return on average assets (annualized) | 1.32 | % | 1.21 | % | 0.11 | % | 9.1 | % | ||||||||
(1) | Return on average common equity (annualized) | 11.25 | % | 9.69 | % | 1.56 | % | 16.1 | % | ||||||||
(3) | Return on average common equity (annualized) | 18.48 | % | 15.89 | % | 2.59 | % | 16.3 | % | ||||||||
Efficiency ratio | 68.4 | % | 73.1 | % | -4.77 | % | -6.5 | % | |||||||||
Total loans / Total deposits | 98.2 | % | 93.6 | % | 4.60 | % | 4.9 | % | |||||||||
Tier 1 Leverage Ratio (Bank only) | 8.61 | % | 8.40 | % | 0.21 | % | 2.50 | % | |||||||||
Equity / Assets | 9.63 | % | 9.66 | % | -0.03 | % | -0.3 | % | |||||||||
Tangible common equity / Total assets | 7.39 | % | 7.21 | % | 0.18 | % | 2.5 | % | |||||||||
Book value per share | $ | 8.24 | $ | 7.41 | $ | 0.84 | 11.3 | % | |||||||||
Stock price | $ | 7.75 | $ | 5.13 | $ | 2.62 | 51.1 | % | |||||||||
Stock price / book value (%) | 94.0 | % | 69.3 | % | 24.77 | % | 35.8 | % | |||||||||
Income per share - basic & diluted | $ | 0.85 | $ | 0.66 | $ | 0.19 | 29.4 | % | |||||||||
Price to earnings ratio (P/E) (year to date) | 9.1x | 7.8x | 1.3x | 16.7 | % | ||||||||||||
Shares outstanding | 1,857,128 | 1,836,662 | 20,466 | 1.1 | % | ||||||||||||
Average shares outstanding | 1,852,446 | 1,830,810 | 21,636 | 1.2 | % | ||||||||||||
(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, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | ||||||||||||||
INCOME STATEMENT | ||||||||||||||||||
Interest Income | $ | 2,347 | $ | 2,218 | $ | 2,146 | $ | 2,071 | $ | 2,085 | ||||||||
Interest Expense | 258 | 270 | 277 | 254 | 262 | |||||||||||||
Net Interest Income | 2,089 | 1,949 | 1,870 | 1,817 | 1,823 | |||||||||||||
Provision for loan loss | 167 | 25 | - | - | (120 | ) | ||||||||||||
Non-interest income | 174 | 197 | 134 | 220 | 252 | |||||||||||||
Non-interest expense | 1,450 | 1,408 | 1,460 | 1,458 | 1,543 | |||||||||||||
Net Income before Income Taxes | 645 | 712 | 544 | 580 | 653 | |||||||||||||
Income tax expense | 221 | 248 | 187 | 198 | 220 | |||||||||||||
Net Income | 424 | 464 | 357 | 382 | 432 | |||||||||||||
Dividend on preferred stock | 12 | 12 | 12 | 12 | 12 | |||||||||||||
Net Income applicable to common shareholders | $ | 413 | $ | 453 | $ | 345 | $ | 370 | $ | 421 | ||||||||
Income per share - basic & diluted | $ | 0.22 | $ | 0.24 | $ | 0.19 | $ | 0.20 | $ | 0.23 | ||||||||
BALANCE SHEET DATA | ||||||||||||||||||
Total assets | 207,023 | 204,715 | 205,074 | 194,232 | 188,679 | |||||||||||||
Average Assets | 208,493 | 206,489 | 204,198 | 192,378 | 191,516 | |||||||||||||
Total loans | 182,755 | 170,553 | 165,928 | 161,424 | 158,828 | |||||||||||||
Allowance for loan loss (ALLL) | 2,061 | 1,894 | 1,869 | 1,869 | 1,869 | |||||||||||||
Total deposits | 186,026 | 184,323 | 185,097 | 174,756 | 169,612 | |||||||||||||
Other borrowings | - | - | - | - | - | |||||||||||||
Shareholders' equity | 19,928 | 19,511 | 19,065 | 18,648 | 18,225 | |||||||||||||
Average Equity | 19,748 | 19,287 | 18,824 | 18,459 | 18,006 | |||||||||||||
ASSET QUALITY | ||||||||||||||||||
Other real estate owned (OREO) | - | - | - | - | - | |||||||||||||
Net charge-offs | - | - | - | - | - | |||||||||||||
Non-accrual loans | 187 | 187 | 192 | 223 | 229 | |||||||||||||
(2) | Non-performing assets (NPA) | 187 | 187 | 192 | 223 | 229 | ||||||||||||
Non-accrual loans / total loans | 0.10 | % | 0.11 | % | 0.12 | % | 0.14 | % | 0.14 | % | ||||||||
Allowance for loan loss / total loans | 1.13 | % | 1.11 | % | 1.13 | % | 1.16 | % | 1.18 | % | ||||||||
PERFORMANCE MEASUREMENTS | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.17 | % | 3.92 | % | 3.95 | % | 4.23 | % | 4.24 | % | ||||||||
(1) | Return on average assets (annualized) | 0.81 | % | 0.89 | % | 0.70 | % | 0.81 | % | 0.90 | % | |||||||
(3) | Return on average assets (annualized) | 1.55 | % | 1.42 | % | 1.07 | % | 1.22 | % | 1.10 | % | |||||||
(1) | Return on average common equity (annualized) | 11.13 | % | 12.55 | % | 10.08 | % | 11.19 | % | 12.82 | % | |||||||
(3) | Return on average common equity (annualized) | 21.30 | % | 19.95 | % | 15.37 | % | 16.98 | % | 15.79 | % | |||||||
Efficiency ratio | 64.1 | % | 65.6 | % | 72.8 | % | 71.6 | % | 74.3 | % | ||||||||
Total loans / Total deposits | 98.2 | % | 92.5 | % | 89.6 | % | 92.4 | % | 93.6 | % | ||||||||
Tier 1 Leverage Ratio (Bank only) | 8.61 | % | 8.49 | % | 8.36 | % | 8.67 | % | 8.40 | % | ||||||||
Equity / Assets | 9.63 | % | 9.53 | % | 9.30 | % | 9.60 | % | 9.66 | % | ||||||||
Tangible common equity / Total assets | 7.39 | % | 7.27 | % | 7.04 | % | 7.22 | % | 7.21 | % | ||||||||
Book value per share | $ | 8.24 | $ | 8.02 | $ | 7.78 | $ | 7.60 | $ | 7.41 | ||||||||
Stock price | $ | 7.75 | $ | 7.05 | $ | 6.50 | $ | 5.95 | $ | 5.13 | ||||||||
Stock price / book value (%) | 94.0 | % | 87.9 | % | 83.6 | % | 78.3 | % | 69.3 | % | ||||||||
Income per share - basic & diluted | $ | 0.22 | $ | 0.24 | $ | 0.19 | $ | 0.20 | $ | 0.23 | ||||||||
Shares outstanding | 1,857,128 | 1,857,128 | 1,857,128 | 1,846,128 | 1,836,662 | |||||||||||||
Average shares outstanding | 1,857,128 | 1,857,128 | 1,851,205 | 1,844,130 | 1,836,662 | |||||||||||||
(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 |