BIRMINGHAM, MI — (Marketwire) — 07/25/12 — Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) (“the Company”), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and six month periods ended June 30, 2012. The performance generated an increase in pre-tax earnings and produced growth in portfolio loans.
The Company reported net income of $208,000 or $0.11 per common share for the second quarter of 2012 compared to net income of $261,000 or $0.15 per common share for the same period of 2011. Net income for the six month period ended June 30, 2012 was $544,000 or $0.30 per common share compared to $676,000 or $0.38 per common share for the same period last year. The overall performance was impacted by the recognition of income tax expense in 2012 not required in 2011. Excluding tax expense of $111,000 and $283,000 for the three and six month periods, pre-tax net income before preferred dividends was $341,000 and 860,000, respectively, this represents an increase of 10.1% and 11.4% relative to the comparable periods of 2011.
Chief Executive Officer, Rob Farr, issued the results and commented, “We continue to see positive improvements in the core operations of the Bank and the results for the first six months of 2012 represent a record profit for the Company on a pre-tax basis. We have been able to successfully grow the institution with quality loan opportunities and improve the profitability of the balance sheet. Our net interest margin was 4.91% for the quarter and total assets reached $139.9 million, an increase of 12.4% from December 31, 2011. The results demonstrate the earnings capacity of the Bank and our focus on increasing franchise value for our shareholders. We are optimistic about the remainder of 2012 and are excited about the future possibilities for the organization.”
Results of Operation
The Company reported net interest income of $1.496 million for the second quarter of 2012, a 19.6% increase relative to the same quarter of 2011 and a 7.3% increase compared to the most recent linked quarter. The improvement was the result of portfolio loan growth and a reduction in the average cost of deposits. Net interest margin for the quarter was 4.91%, the highest quarterly margin reported by the Company. This was achieved by improving the earning asset mix and lowering funding costs. Net interest income for the first six months of 2012 increased 15.1% to $2.889 million compared to the same period of 2011. Net interest margin for the year to date period ended June 30, 2012 was 4.86% compared to 4.50% in 2011.
Revenue from non-interest income sources continues to positively impact operating results. Total non-interest income for the three and six month periods ended June 30, 2012 was $112,000 and $596,000, respectively. Relative to 2011, total non-interest income declined for both reportable periods as a result of lower SBA loan volume but the impact of the lost revenue was offset by an increase in earnings on residential mortgages sold in the secondary market, additional ancillary fee income and a gain from the sale of a bank owned property. The additional Mortgage Banking income was the result of increased volume in sales of qualified residential loans due to the favorable interest rate environment.
Total non-interest expense for the second quarter of 2012 was $1.216 million, compared to $1.207 million for the second quarter of 2011 and $1.338 million for the first quarter of 2012. Year to date non-interest expense for 2012 was $2.555 million, an increase of $265,000 relative to the same period in 2011. The increase in expenses was the result of hiring new personnel to accommodate future growth, expansion of infrastructure, investment in operating systems to improve services, costs associated with additional volume from residential mortgage activity, and dedicating resources to business marketing efforts to increase market share in our local communities.
Balance Sheet
Total assets as of June 30, 2012 were $139.9 million, a 17.9% increase from the prior year. The increase was a result of a focused effort to generate core, organic loan growth in our primary market. Total portfolio loans reached $113.1 million at the end of the second quarter, an increase of $6.4 million from March 31, 2012 and $13.0 million from June 30, 2011. The increase was primarily concentrated in commercial real estate and mortgage related loans. The asset quality of the Company remains solid; there were no non-performing asset outstanding and the allowance for loan loss was 1.45% of total portfolio loans. Total deposits as of June 30, 2012 were $122.6 million, an increase of 15.4% from the same period in 2011. The Bank also continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 9.82% 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 Howe Barnes Hoefer and Arnett (acquired by Raymond James), Chicago; Monroe Securities, Chicago; 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 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)
Contact:
Robert M. Farr
Chief Executive Officer
Birmingham Bloomfield Bancshares, Inc.
248-283-6430