Hank's Trading account

[10 bagger]

Added 2 positions today.. BBBI and CSTI.. BBBI is a small well run little bank and CSTI has much higher prices looking forward.. CSTI @ Ave. Price on 1500 was $11.58,, would of bought more but it got away from me.. BBBI bought 776 @ Ave. of $5.78 ..


Birmingham Bloomfield Bancshares, Inc. Announces Results for Period Ending December 31, 2013

BIRMINGHAM, MI -- (Marketwired) -- 01/17/14 -- Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced unaudited results for the quarter and year to date periods ended December 31, 2013. The performance delivered record earnings and substantial earning asset growth.

The Company reported net income of $421,000 or $0.23 per common share for the fourth quarter of 2013 compared to net income of $337,000 or $0.18 per common share for the same period of 2012. Net income for the year to date period ended December 31, 2013 was $1,207,000 or $0.66 per common share compared to $1,019,000 or $0.56 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 18.5% relative to 2012.

Chief Executive Officer, Rob Farr, issued the results and commented, "We are excited to announce another record year for the Company. The performance was driven by improved profit margins, growth in earnings assets and an increase in core revenue. The Company delivered a Return on Average Common Equity of 9.69% and a pre-tax, pre-provision ROA of 1.21%. Book value reached $7.41 at year end and per share earnings increased 17.8% year over year. We are proud of our performance and it is a reflection of our core believe in delivering superior bank service and meaningful solutions to our customers through the dedication and performance of our experienced staff. We look forward to the opportunities in 2014 and continuing to create value for our shareholders."

Results of Operation

The Company reported net interest income of $1.823 million for the fourth quarter of 2013, an 18.1% increase relative to the same quarter of 2012. The improvement was the result of portfolio loan growth. Net interest margin for the quarter was 4.24% compared to 4.36% for the most recent linked quarter and 4.59% for the fourth quarter of 2012. Net interest income for the full year of 2013 was $6.791 million, an increase of $851,000 compared to the same period of 2012. Net interest margin for the year to date period ended December 31, 2013 was 4.40% compared to 4.73% in 2012. The margin compression experienced by the Company is a result of the evolving product mix of the balance sheet, competitive pricing conditions and challenging rate environment.

The Company reversed $120,000 in provision expense during the fourth quarter of 2013, as collateral values on impaired loans improved. Total provision expense for the year to date period ending December 31, 2013 was $160,000, compared to $470,000 for the twelve month period in 2012. The net reduction in provision expense is attributable to improved market values and a reduction in problem credits requiring a valuation reserve. The Company charged off $336,000 in impaired loans during 2013.

Total non-interest income for the fourth quarter of 2013 was $252,000, compared to $210,000 for the most recent linked quarter and $348,000 for the same period of 2012. Total non-interest income for the year to date period ending December 31, 2013 was $862,000, compared to $1.243 million for the prior year. The decrease was a function of reduced loan volume related to commercial SBA and residential mortgage loans sold in the secondary market In addition, the Company recognized a gain on the sale of an ORE property in 2012 totaling $150,000.

Total non-interest expense for the fourth quarter of 2013 was $1.543 million, compared to $1.296 million for the same quarter of 2012. Year to date non-interest expense for 2013 was $5.597 million, an increase of $498,000 relative to the same period in 2012. The increase in expenses were the result of hiring new personnel to accommodate growth, infrastructure expansion, investment in new technology and providing additional resources for business marketing effort.

Balance Sheet

Total assets as of December 31, 2013 were $188.7 million, a 23.5% increase from December 31, 2012. The net growth in total assets was the result of an increase in loan and deposit balances. Total portfolio loans reached $158.8 million in 2013, an increase of $30.6 million from the prior year. The growth was primarily concentrated in commercial, lease and mortgage related loans. The new loan activity was achieved by expanding loan product options and focusing on the credit needs of our local market. The asset quality of the Company remains strong and the allowance for loan loss was 1.18% of the portfolio. Total deposits as of December 31, 2013 were $169.6 million, an increase of 25.7% from the same period in 2012. The Bank continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 8.40% 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 Raymond James, Chicago; 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 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)



Birmingham Bloomfield Bancshares, Inc.
Consolidated Balance Sheet (Unaudited)



December 31, December 31,
2013 2012
------------- -------------
ASSETS
Cash and due from banks $ 22,585,199 $ 15,539,072
Federal funds sold - -
------------- -------------
Total cash and cash equivalents 22,585,199 15,539,072

Securities available-for-sale 2,626,716 3,725,923
Securities held-to-maturity - -
Federal Home Loan Bank Stock 248,000 218,100
------------- -------------
Total securities 2,874,716 3,944,023

Loans held for sale - -

Portfolio loans
Consumer loans 1,697,269 1,801,991
Mortgage loans 21,615,166 16,203,001
Commercial leases 13,719,232 1,346,177
Commercial loans 121,796,101 108,926,273
------------- -------------
Total loans 158,827,768 128,277,442
Less: Allowance for loan loss 1,868,587 2,044,350
------------- -------------
Net loans 156,959,181 126,233,092

Premises and equipment, net 1,224,764 1,277,802
Bank owned life insurance 2,256,410 2,182,513
Deferred Tax Asset 1,687,277 2,306,762
Accrued interest receivable and other
assets 1,091,237 1,289,814
------------- -------------

TOTAL ASSETS $ 188,678,784 $ 152,773,078
============= =============



LIABILITIES
Deposits
Noninterest-bearing $ 39,235,022 $ 23,947,132
Interest-bearing 130,376,667 110,955,051
------------- -------------
Total deposits 169,611,689 134,902,183

Short term borrowings - -
Accrued interest payable, taxes and other
liabilities 842,164 867,356
------------- -------------
Total liabilities 170,453,853 135,769,539

SHAREHOLDERS' EQUITY
Senior preferred stock, series D 4,621,000 4,621,000
Common Stock, no par value 17,163,818 17,105,618
Authorized - 9,000,000 shares, Issued and
outstanding - 1,836,662 1,824,662 and
1,824,662 shares respectively
Accumulated other comprehensive income 31,813 76,066
Additional paid in capital - share based
payments 493,154 493,154
Accumulated deficit (4,084,854) (5,292,299)
------------- -------------
Total shareholders' equity 18,224,931 17,003,539
------------- -------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 188,678,784 $ 152,773,078
============= =============

Book value per share $ 7.41 $ 6.79



Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)

For the three months For the nine months
ended ended
------------------------ -----------------------
December 31, December 31,
------------------------ -----------------------
2013 2012 2013 2012
----------- ----------- ----------- -----------
Interest Income
Interest and fees on
loans
Commercial loans $ 1,668,979 $ 1,516,114 $ 6,301,192 $ 5,938,254
Commercial leases 150,702 5,723 410,947 5,723
Installment loans 26,863 22,447 111,683 75,083
Mortgage loans 114,917 85,839 405,945 266,934
Home Equity loans 88,405 85,124 348,000 363,494
Late charges and fees 5,831 23,303 38,049 85,786
----------- ----------- ----------- -----------
Total loan interest and
fee income 2,055,697 1,738,550 7,615,816 6,735,274

Interest bearing
deposits 10,288 7,572 33,741 21,479
Federal Funds Sold - - - -

Interest on investment
securities
Taxable 18,019 23,424 81,414 95,673
Tax-exempt 953 985 3,859 3,985
----------- ----------- ----------- -----------
Total investment income 18,972 24,409 85,273 99,658

Total interest income 2,084,957 1,770,532 7,734,830 6,856,412

Interest Expense
Interest on deposits 261,538 227,006 944,277 916,561
Interest on borrowed
funds - - - 64
----------- ----------- ----------- -----------
Total interest expense 261,538 227,006 944,277 916,625
----------- ----------- ----------- -----------

Net Interest Income 1,823,420 1,543,526 6,790,554 5,939,787
Provision for loan
losses (120,000) 70,000 160,000 470,000
----------- ----------- ----------- -----------
Net Interest Income After
Provision for Loan
Losses 1,943,420 1,473,526 6,630,554 5,469,787

Non-interest Income
Service charge income 23,490 19,912 78,972 78,622
Mortgage banking
activities 22,955 81,525 182,142 355,557
SBA loan sales 174,975 215,618 480,610 537,466
Other income 30,734 30,603 120,170 271,336
----------- ----------- ----------- -----------
Total non-interest income 252,154 347,658 861,894 1,242,981

Non-interest Expense
Salaries and employee
benefits 776,331 631,181 3,044,573 2,686,254
Occupancy expense 130,575 124,336 498,979 481,140
Equipment expense 48,820 50,886 207,556 201,115
Advertising 81,036 100,618 239,506 272,798
Data Processing 97,333 79,730 298,921 259,949
Professional fees 113,882 125,918 514,365 504,547
Loan origination
expense 132,161 40,312 230,467 195,459
Regulatory Assessments 39,178 31,377 139,669 105,622
Other expense 123,490 111,165 422,473 391,528
----------- ----------- ----------- -----------
Total non-interest
expense 1,542,807 1,295,523 5,596,510 5,098,412

Net Income Before Income
Taxes 652,767 525,661 1,895,938 1,614,356
Income tax expense 220,313 177,417 642,282 538,768
----------- ----------- ----------- -----------
Net Income 432,454 348,244 1,253,656 1,075,588
Dividend on preferred
stock 11,552 11,553 46,210 56,489
----------- ----------- ----------- -----------
Net Income applicable to
common shareholders $ 420,902 $ 336,691 $ 1,207,446 $ 1,019,099
=========== =========== =========== ===========

Income per share - basic $ 0.23 $ 0.18 $ 0.66 $ 0.56



Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)

Year to Date
----------------------------------------------
December 31, Change
---------------------- ----------------------
2013 2012 Amount Percentage
---------- ---------- ---------- ----------
INCOME STATEMENT
Interest Income $ 7,735 $ 6,856 $ 878 12.8%
Interest Expense 944 917 28 3.0%
---------- ---------- ----------
Net Interest Income 6,791 5,940 851 14.3%
Provision for loan loss 160 470 (310) -66.0%
Non-interest income 862 1,243 (381) -30.7%
Non-interest expense 5,597 5,098 498 9.8%
---------- ---------- ----------
Net Income before Income
Taxes 1,896 1,614 282 17.4%
Income tax expense 642 539 104 19.2%
---------- ---------- ----------
Net Income 1,254 1,076 178 16.6%
Dividend on preferred
stock 46 56 (10) -18.2%
---------- ---------- ----------
Net Income - common
shareholders $ 1,207 $ 1,019 $ 188 18.5%
========== ========== ==========

Income per share - basic
& diluted $ 0.66 $ 0.56 $ 0.10 17.8%
========== ========== ==========

BALANCE SHEET DATA
Total assets 188,679 152,773 35,906 23.5%
Average Assets 170,554 140,400 30,154 21.5%
Total loans 158,828 128,277 30,550 23.8%
Allowance for loan loss
(ALLL) 1,869 2,044 (176) -8.6%
Total deposits 169,612 134,902 34,710 25.7%
Other borrowings - - - 0.0%
Shareholders' equity 18,225 17,004 1,221 7.2%
Average Equity 17,599 16,543 1,056 6.4%

ASSET QUALITY
Other real estate owned
(OREO) - - - 0.0%
Net charge-offs 336 - 336 0.0%
Non-accrual loans 229 764 (535) -70.0%
(2)Non-performing assets
(NPA) 229 764 (535) -70.0%
Non-accrual loans / total
loans 0.14% 0.60% -0.45% -75.8%
Allowance for loan loss /
total loans 1.18% 1.59% -0.42% -26.2%

PERFORMANCE MEASUREMENTS
Net interest margin (tax
equivalent) 4.40% 4.73% -0.33% -7.0%
(1)Return on average assets
(annualized) 0.74% 0.77% -0.03% -3.9%
(3)Return on average assets
(annualized) 1.21% 1.48% -0.27% -18.2%
(1)Return on average common
equity (annualized) 9.69% 9.02% 0.67% 7.4%
(3)Return on average common
equity (annualized) 15.89% 17.48% -1.59% -9.1%
Efficiency ratio 73.1% 71.0% 2.15% 3.0%
Total loans / Total
deposits 93.6% 95.1% -1.45% -1.5%
Tier 1 Leverage Ratio
(Bank only) 8.40% 9.03% -0.63% -6.98%
Equity / Assets 9.66% 11.13% -1.47% -13.2%
Tangible common equity /
Total assets 7.21% 8.11% -0.90% -11.0%

Book value per share $ 7.41 $ 6.79 $ 0.62 9.1%
Stock price $ 5.13 $ 4.60 $ 0.53 11.5%
Stock price / book value
(%) 69.3% 67.8% 1.48% 2.2%
Income per share - basic
& diluted $ 0.66 $ 0.56 $ 0.10 17.8%
Price to earnings ratio
(P/E) (year to date) 7.8x 8.2x -0.4x -5.3%
Shares outstanding 1,836,662 1,824,662 12,000 0.7%
Average shares
outstanding 1,830,810 1,819,580 11,230 0.6%


(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 September December
31, 30, June 30, March 31, 31,
2013 2013 2013 2013 2012
---------- ---------- ---------- ---------- ----------
INCOME STATEMENT
Interest Income $ 2,085 $ 1,998 $ 1,860 $ 1,792 $ 1,771
Interest
Expense 262 246 222 215 227
---------- ---------- ---------- ---------- ----------
Net Interest
Income 1,823 1,752 1,638 1,577 1,544
Provision for
loan loss (120) 180 90 10 70
Non-interest
income 252 210 215 185 348
Non-interest
expense 1,543 1,358 1,394 1,302 1,296
---------- ---------- ---------- ---------- ----------
Net Income before
Income Taxes 653 425 369 450 526
Income tax 145
expense 220 125 152 177
---------- ---------- ---------- ---------- ----------
Net Income 432 279 244 298 348
Dividend on
preferred
stock 12 12 12 12 12
---------- ---------- ---------- ---------- ----------
Net Income
applicable to
common
shareholders $ 421 $ 268 $ 232 $ 287 $ 337
========== ========== ========== ========== ==========

Income per share
- basic &
diluted $ 0.23 $ 0.15 $ 0.13 $ 0.16 $ 0.18
========== ========== ========== ========== ==========

BALANCE SHEET DATA
Total assets 188,679 182,693 164,588 156,985 152,773
Average Assets 191,516 175,007 160,953 154,282 154,452
Total loans 158,828 151,524 138,017 129,638 128,277
Allowance for
loan loss (ALLL) 1,869 1,989 2,144 2,054 2,044
Total deposits 169,612 163,836 146,171 138,992 134,902
Other borrowings - - - - -
Shareholders'
equity 18,225 17,809 17,546 17,281 17,004
Average Equity 18,006 17,682 17,399 17,139 16,822

ASSET QUALITY
Other real estate
owned (OREO) - - - - -
Net charge-offs - 336 - - -
Non-accrual loans 229 316 732 732 764
(2)Non-performing
assets (NPA) 229 316 732 732 764
Non-accrual loans
/ total loans 0.14% 0.21% 0.53% 0.56% 0.60%
Allowance for
loan loss /
total loans 1.18% 1.31% 1.55% 1.58% 1.59%

PERFORMANCE
MEASUREMENTS
Net interest
margin (tax
equivalent) 4.24% 4.36% 4.50% 4.56% 4.59%
(1)Return on average
assets
(annualized) 0.90% 0.63% 0.61% 0.78% 0.90%
(3)Return on average
assets
(annualized) 1.10% 1.37% 1.14% 1.21% 1.53%
(1)Return on average
common equity
(annualized) 12.82% 8.49% 7.65% 9.66% 11.35%
(3)Return on average
common equity
(annualized) 15.79% 18.37% 14.39% 14.89% 19.42%
Efficiency ratio 74.3% 69.2% 75.2% 73.9% 68.5%
Total loans /
Total deposits 93.6% 92.5% 94.4% 93.3% 95.1%
Tier 1 Leverage
Ratio (Bank
only) 8.40% 8.71% 9.21% 9.36% 9.03%
Equity / Assets 9.66% 9.75% 10.66% 11.01% 11.13%
Tangible common
equity / Total
assets 7.21% 7.22% 7.85% 8.06% 8.11%

Book value per
share $ 7.41 $ 7.18 $ 7.04 $ 6.94 $ 6.79
Stock price $ 5.13 $ 5.70 $ 4.30 $ 4.95 $ 4.60
Stock price /
book value (%) 69.3% 79.4% 61.1% 71.3% 67.8%
Income per share
- basic &
diluted $ 0.23 $ 0.15 $ 0.13 $ 0.16 $ 0.18
Shares
outstanding 1,836,662 1,836,662 1,836,662 1,824,662 1,824,662
Average shares
outstanding 1,836,662 1,836,662 1,825,058 1,824,662 1,824,662

(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



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


Source: Birmingham Bloomfield Bancshares, Inc.