updated 2/9/2011 3:17:18 PM ET 2011-02-09T20:17:18

BIRMINGHAM, Mich., Feb. 9, 2011 (GLOBE NEWSWIRE) -- Birmingham Bloomfield Bancshares, Inc. (OTCBB:BBBI), the holding company for Bank of Birmingham, today reported substantial improvement in earnings and performance indices for 2010.

The announcement was made by Robert E. Farr, President & Chief Executive Officer.

2010 The Corporation reported net income of $238,000, and $0.13 per diluted common share, a sharp turnaround from the year-earlier net loss of $1,988,000, or $1.10 per diluted common share. The positive earnings represent the Corporation's first full year of profitability and the third consecutive quarter of net income.

The positive earnings results reflect double-digit increases in both net interest income and noninterest income, plus a reduction in non-interest expense. Net interest income rose 63.6% to $4,412,000, from $2,697,000 for 2009. The improvement was aided by a fractional reduction in interest expense, reflecting successful growth in local deposits, versus wholesale deposits which traditionally carry higher interest burdens. Non-interest income increased 47.3% to $126,000, from $85,000 at the close of 2009. The improvement in net interest income reflects a 26% jump in total loans, plus a 23% rise in net interest margin. Net interest margin stood at a healthy 4.3% at the close of the year.

Q4-2010Net income rose to $121,000, or $0.07 per diluted common share, from a net loss of $1,045,000, or $0.58 per diluted common share, for Q4-2009. Included in the Q4-2009 net loss is a onetime charge of $609,330 for the consolidation of the Bloomfield branch office into the headquarters on Woodward in Birmingham.

Key balance-sheet entries were likewise positive. At the close of the quarter, total assets were up 19.1% to $110,335,000, as the Corporation continued its focus on quality organic loan growth in core market areas. Deposits jumped 19.4% to $97,250,000. Total loans increased 26% to $100,379,000. The 2010 loan total includes SBA lending. The Corporation expanded the portfolio of products available to customers by providing SBA lending to commercial customers. Additionally, the Corporation started a residential mortgage lending operation, which also represents a new, growing lending market for the Bank.  

Mr. Farr noted that the Bank has a laser focus on credit quality. Non-performing assets totaled only $298,000 at 2010, representing only 0.30% of total loans outstanding. The Bank is well provisioned with the allowance for loan losses at 1.44% and 1.47% at the close of 2010 and 2009, respectively. Most importantly, the Bank remained well capitalized and maintains an 8.2% Tier 1 capital ratio.

Mr. Farr said the Bank is generally optimistic about 2011.

"The auto industry has re-awakened and domestic production is increasing. We are well positioned in the heart of a dynamic market. Oakland County is consistently ranked among the nation's most affluent counties. We have a strong team, which is now concentrated in one location. This will generate new synergy. We are well capitalized, including the $3.4 million in TARP dollars that will help us to continue to grow our balance sheet. We have pristine asset quality. We expect our SBA lending to increase substantially. In fact, we expect to record a first-half 2011 gain on the sale of the guaranteed portion of SBA loans sold in the fourth quarter of 2010. We also expect our new residential mortgage operations to contribute to profitability 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 size 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 as a single point of contact empowered to provide all the bank's services.

Birmingham Bloomfield Bancshares, Inc. marketmakers include Howe Barnes Hoefer and Arnett, 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. 

(Financial schedules follow)

 

Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
         
  Year to Date
  December 31, Change
  2010 2009 Amount Percentage
INCOME STATEMENT        
Interest Income  $ 5,752  $ 4,043  $ 1,709 42.3%
Interest Expense  1,340  1,345  (5) -0.4%
Net Interest Income  4,412  2,697  1,714 63.6%
Provision for loan loss  594  480  113 23.6%
Non-interest income  126  85  40 47.3%
Non-interest expense  3,513  4,215  (702) -16.7%
Income (loss) before Income Taxes  431  (1,913)  2,344 122.5%
Income tax expense  --   --   --  0.0%
Net Income (Loss)  431  (1,913)  2,344 122.5%
Dividend and accretion on preferred stock  193  75  117 156.1%
Net Income (Loss) - common shareholders  $ 238  $ (1,988)  $ 2,226 112.0%
         
Income (loss) per share - basic & diluted  $ 0.13  $ (1.10)  $ 1.24 112.0%
         
BALANCE SHEET DATA        
Total assets  110,335  92,637  17,698 19.1%
Average Assets  106,532  80,312  26,220 32.6%
Total loans  100,379  79,656  20,723 26.0%
Allowance for loan loss (ALLL)  1,448  1,174  274 23.4%
Total deposits  97,250  81,465  15,785 19.4%
Other borrowings  1,469  --   1,469 0.0%
Shareholders' equity  10,986  10,728  258 2.4%
Average Equity  10,823  9,898  925 9.3%
         
ASSET QUALITY        
Other real estate owned (OREO)  --   --   --  0.0%
Net charge-offs  320  16  304 1897.0%
Non-accrual loans  298  --   298 0.0%
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 1.44% 1.47% -0.03% -2.1%
         
PERFORMANCE MEASUREMENTS        
Net interest margin (tax equivalent) 4.32% 3.51% 0.81% 23.1%
Return on average assets (annualized) 0.40% -2.38% 2.79% 117.0%
Return on average common equity (annualized) 5.80% -23.32% 29.12% 124.9%
Tier 1 Leverage Ratio (Bank only) 8.2% 9.4% -1.16% -12.3%
Equity / Assets 10.0% 11.6% -1.62% -14.0%
Total loans / Total deposits 103.2% 97.8% 5.44% 5.6%
Book value per share  $ 4.21  $ 4.08  $ 0.13 3.3%
Income (loss) per share - basic & diluted  $ 0.13  $ (1.10)  $ 1.24 112.0%
Shares outstanding  1,800,000  1,800,000  --  0.0%
 
Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
           
  Quarter Ended
  December 31,

2010
September 30,

2010
June 30,

2010
March 31,

2010
December 31,

2009
INCOME STATEMENT          
Interest Income  $ 1,501  $ 1,531  $ 1,436  $ 1,283  $ 1,153
Interest Expense  327  337  352  324  340
Net Interest Income  1,174  1,194  1,084  959  813
Provision for loan loss  49  256  177  112  300
Non-interest income  21  27  42  35  21
Non-interest expense  977  867  815  853  1,538
Income (loss) before Income Taxes  169  98  134  29  (1,004)
Income tax expense  --   --   --   --   -- 
Net Income (Loss)  169  98  134  29  (1,004)
Dividend and accretion on preferred stock  48  48  49  47  41
Net Income (Loss) applicable to common

shareholders
 $ 121  $ 50  $ 85  $ (18)  $ (1,045)
           
Income (loss) per share - basic & diluted  $ 0.07  $ 0.03  $ 0.05  $ (0.01)  $ (0.58)
           
BALANCE SHEET DATA          
Total assets  110,335  111,254  100,168  98,810  92,637
Average Assets  111,932  110,091  106,960  97,520  82,361
Total loans  100,379  94,284  90,478  86,441  79,656
Allowance for loan loss (ALLL)  1,448  1,424  1,167  1,255  1,174
Total deposits  97,250  99,997  99,804  87,733  81,465
Other borrowings  1,469  --   --   --   -- 
Shareholders' equity  10,986  10,899  10,822  10,718  10,728
Average Equity  10,935  10,860  10,770  10,723  9,500
           
ASSET QUALITY          
Other real estate owned  --   --   --   --   -- 
Net charge-offs  24  --   265  31  (2)
Non-accrual loans  298  --   --   --   -- 
Non-performing assets  298  --   --   --   -- 
Non-accrual loans / total loans 0.30% 0.00% 0.00% 0.00% 0.00%
Allowance for loan loss / total loans 1.44% 1.51% 1.29% 1.45% 1.47%
           
PERFORMANCE MEASUREMENTS          
Net interest margin (tax equivalent) 4.69% 4.41% 4.13% 4.06% 3.77%
Return on average assets (annualized) 0.60% 0.35% 0.50% 0.12% -4.84%
Return on average common equity (annualized) 8.9% 5.2% 7.3% 1.6% -50.7%
Tier 1 Leverage Ratio (Bank only) 8.2% 8.2% 8.5% 8.8% 9.4%
Equity / Assets 10.0% 9.8% 10.8% 10.8% 11.6%
Total loans / Total deposits 103.2% 94.3% 90.7% 98.5% 97.8%
Book value per share  $ 4.21  $ 4.16  $ 4.12  $ 4.07  $ 4.08
Income (loss) per share - basic & diluted  $ 0.07  $ 0.03  $ 0.05  $ (0.01)  $ (0.58)
Shares outstanding  1,800,000  1,800,000  1,800,000  1,800,000  1,800,000
CONTACT: Birmingham Bloomfield Bancshares, Inc.
         Rob Farr
         P: 248 283-6430

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