Birmingham Bloomfield Bancshares, Inc. (OTCMKTS:BBBI) announced results for the first quarter ended March 31, 2015. It reported net income of $288,000 for the first quarter of 2015. However, on a pre-tax, pre-provision basis, net income surged 38.2% compared to the same period of 2014.
The expert view
Rob Farr, the CEO of Birmingham said that there is continuous improvement in core fundamentals and it is reflected in the growth in the pre-tax, pre-provision net income. The growth is led by the earning asset growth, improving operating efficiency and solid profit margins. There was strong loan growth in the first quarter. The company recorded a pre-tax, pre-provision “ROA” of 1.51%. Moreover, the book value reached $8.40, a jump of $0.80 in the past one year. The stock price has surged more than 40% during this same period. Birmingham management is focused on enhancing value for the company’s shareholders and continues to look for attractive opportunities to enhance the organization.
The performance
Birmingham posted net interest income of $2.07 million against $1.817 million recorded in same quarter, a year ago. The increase can be attributed to profitable growth in the total earning asset portfolio. The net interest margin came at 4.10% compared to 4.23% for the first quarter of FY2014. The decline in margin was the impact of the current rate environment, change in the portfolio mix and competitive banking landscape.
The other details
Birmingham provided $345,000 in provision expense in 1Q2015 and the allowance associated to total loans was 1.27%. The Company’s non-interest income came at $236,000 compared to $220,000 for the same quarter in 2014. The improved earnings can be attributed to growth in mortgage and SBA loan volume offered in the secondary market. In last trading session, the stock price of BBBI declined 2.16% to close the trading session at $9.05 on share volume of 17,308.
