Birmingham Bloomfield Bancshares, the holding company for Bank of Birmingham, announced results for the first quarter ended March 31, 2015. Net income was $288,000 or $0.16 per share of common stock.
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On a pre-tax, pre-provision basis, net income was $801,000, a 38.2% increase compared to the same period of 2014.
Total net interest income for the first quarter of 2015 increased 13.9% to $2.07 million, compared to $1.817 million for the first quarter of 2014. The increase in net interest income was the result of profitable growth in the earning asset portfolio.
Net interest margin for the quarter was 4.10% compared to 4.17% for the most recent linked quarter and 4.23% for the first quarter of 2014. The margin compression was the result of the current rate environment, competitive banking landscape and change in the mix of the portfolio.
The company provided $345,000 in provision expense during the quarter and the allowance relative to total loans was 1.27% at March 31, 2015. The provision expense is a function of new loan volume and additional reserves required for an impaired loan.
There have been no net charge offs during the period, but total nonaccrual loans increased as the result of uncertainty associated with the future performance of a large loan relationship.
The company generated non-interest income of $236,000 during the first three months of 2015, compared to $220,000 for the same period in 2014. The additional earnings were the result of an increase in mortgage and SBA loan volume sold in the secondary market generating higher revenue.
Total non-interest expense for the first quarter of 2015 was $1.505 million, an increase of $55,000 compared to the most recent linked quarter and 3.2% relative to the same period of 2014. The primary source of the increase was in salary expense as the organization invests in personnel to accommodate growth.
Total assets as of March 31, 2015 were $209.5 million, an increase of $15.3 million from the prior year. Total portfolio loans reached $189.6 million at the end of the first quarter, an increase of $6.8 million from December 31, 2014 and 17.4% from March 31, 2014. The growth is a function of company's broad product options, strong presence in the business community and superior service from company's knowledgeable staff.
Total deposits as of March 31, 2015 were $187.9 million, an increase of $13.2 million from the first quarter of 2014. Total non-performing loans increased during the quarter to 1.18% of the portfolio as the result of the deterioration in one large loan relationship. The Bank continues to be classified as well capitalized based on regulatory guidelines and is a recommended institution by Bauer Financial. ■