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Birmingham Bloomfield Bancshares, Inc. Announces 2014 First Quarter Results

BIRMINGHAM, MI -- (Marketwired) -- 04/11/14 -- Birmingham Bloomfield Bancshares, Inc. (OTCQB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced results for the quarter ended March 31, 2014. The Corporation reported net income of $370,000 or $0.20 per share of common stock for the first quarter of 2014, compared to net income of $287,000 or $0.16 per share for the first quarter of 2013.

Chief Executive Officer, Rob Farr, issued the results and commented, "We reported another strong quarter as the core earnings of the Company continue to improve as a result of higher profit margins and improved operating efficiency. The results produced an ROA of 0.81% and book value reached $7.60 as of March 31, 2014. We are focused on improving the fundamental performance of the Bank by increasing market share, providing meaningful solutions to our customers and creating value for our shareholders."

Results of Operation

Total net interest income for the first quarter of 2014 increased 15.2% to $1.817 million, compared to $1.577 million for the first quarter of 2013. The increase in net interest income was the result of profitable growth in the earning assets portfolio. Net interest margin for the quarter was 4.23% compared to 4.24% for the most recent linked quarter and 4.56% for the first quarter of 2013. The margin compression was a result of a reduction in loan yields due to the current rate environment and competitive banking landscape.

The Company did not record provision expense during the quarter and the allowance relative to total loans was 1.16% at March 31, 2014.

The Company generated non-interest income of $220,000 during the first three months of 2014, compared to $185,000 for the same period in 2013. The additional earnings were the result of an increase in SBA loan volume sold in the secondary market generating higher revenue.

Total non-interest expense for the first quarter of 2014 was $1.458 million, an increase of $156,000 compared to the same period of the prior year. The increase in expenses were the result of hiring new personnel to facilitate asset growth, investment in new products and services to attract new customers and infrastructure expansion to accommodate the increased capacity.

Balance Sheet

Total assets as of March 31, 2014 were $194.2 million, a 23.7% increase from the prior year. The growth was the result of dedicated efforts to increase our presence in the local community and meeting the credit demands of the market by expanding product options. Total portfolio loans reached $161.4 million at the end of the first quarter, an increase of $31.8 million from the prior year. The growth was primarily concentrated in commercial, lease and mortgage related loans. Total deposits as of March 31, 2014 were $174.8 million, an increase of 25.7% from 2013. Loan quality also improved during the quarter as the level of non-performing assets declined 2.6% from December 31, 2013 and $541,000 from the first quarter of 2013. The Bank continues to be classified as well capitalized based on regulatory guidelines and is a recommended institution by Bauer Financial.

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. The Company assumes no responsibility to update forward-looking statements.

(Unaudited Consolidated Financial Statements Follow)


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

                                   March 31,    December 31,     March 31,
                                     2014           2013           2013
                                 ------------   ------------   ------------
ASSETS
    Cash and due from banks      $ 24,767,841   $ 22,585,199   $ 18,653,780
    Federal funds sold                      -              -              -
                                 ------------   ------------   ------------
  Total cash and cash
   equivalents                     24,767,841     22,585,199     18,653,780

    Securities available-for-
     sale                           3,553,478      2,626,716      3,635,855
    Securities held-to-maturity             -              -              -
    Federal Home Loan Bank
     Stock                            248,000        248,000        218,100
                                 ------------   ------------   ------------
  Total securities                  3,801,478      2,874,716      3,853,955

  Loans held for sale                       -              -              -

  Portfolio loans
    Consumer loans                  1,590,885      1,697,269      2,314,027
    Mortgage loans                 23,746,386     21,615,166     16,655,996
    Commercial leases              16,204,219     13,719,232      5,389,220
    Commercial loans              119,882,248    121,796,101    105,278,261
                                 ------------   ------------   ------------
  Total loans                     161,423,738    158,827,768    129,637,504
    Less: Allowance for loan
     loss                           1,868,587      1,868,587      2,054,350
                                 ------------   ------------   ------------
  Net loans                       159,555,151    156,959,181    127,583,154

    Premises and equipment, net     1,229,103      1,224,764      1,242,552
    Bank owned life insurance       2,272,967      2,256,410      2,201,155
    Deferred Tax Asset              1,487,375      1,687,277      2,159,756
    Accrued interest receivable
     and other assets               1,118,468      1,091,237      1,290,366
                                 ------------   ------------   ------------

  TOTAL ASSETS                   $194,232,383   $188,678,784   $156,984,717
                                 ============   ============   ============



LIABILITIES
  Deposits
    Noninterest-bearing          $ 39,937,216   $ 39,235,022   $ 22,329,268
    Interest-bearing              134,818,744    130,376,667    116,662,327
                                 ------------   ------------   ------------
  Total deposits                  174,755,960    169,611,689    138,991,595

    Short term borrowings                   -              -              -
    Accrued interest payable,
     taxes and other
     liabilities                      828,051        842,164        711,928
                                 ------------   ------------   ------------
  Total liabilities               175,584,011    170,453,853    139,703,523

SHAREHOLDERS' EQUITY
    Senior preferred stock,
     series D                       4,621,000      4,621,000      4,621,000
    Common Stock, no par value     17,212,379     17,163,818     17,105,618
      Authorized - 9,000,000
       shares, Issued and
       outstanding - 1,846,128
      1,836,662 and 1,824,662
       shares respectively
    Accumulated other
     comprehensive income              36,319         31,813         67,144
    Additional paid in capital
     - share based payments           493,154        493,154        493,154
    Accumulated deficit            (3,714,480)    (4,084,854)    (5,005,722)
                                 ------------   ------------   ------------
  Total shareholders' equity       18,648,372     18,224,931     17,281,194
                                 ------------   ------------   ------------

TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY            $194,232,383   $188,678,784   $156,984,717
                                 ============   ============   ============

Book value per share             $       7.60   $       7.41   $       6.94



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

                                                 For the three months ended
                                                ----------------------------
                                                          March 31,
                                                ----------------------------
                                                     2014           2013
                                                -------------  -------------
Interest Income
    Interest and fees on loans
      Commercial loans                          $   1,593,927  $   1,519,249
      Commercial leases                               182,801         30,615
      Installment loans                                24,446         29,622
      Mortgage loans                                  141,900         86,593
      Home Equity loans                                95,537         84,253
      Late charges and fees                             4,121         11,230
                                                -------------  -------------
  Total loan interest and fee income                2,042,732      1,761,562

    Interest bearing deposits                           8,170          7,117
    Federal Funds Sold                                      -              -

    Interest on investment securities
      Taxable                                          19,177         22,175
      Tax-exempt                                          942            977
                                                -------------  -------------
  Total investment income                              20,119         23,152

  Total interest income                             2,071,021      1,791,831

Interest Expense
    Interest on deposits                              253,907        214,624
    Interest on borrowed funds                              -              -
                                                -------------  -------------
  Total interest expense                              253,907        214,624
                                                -------------  -------------

  Net Interest Income                               1,817,114      1,577,207
    Provision for loan losses                               -         10,000
                                                -------------  -------------
  Net Interest Income After Provision for Loan
   Losses                                           1,817,114      1,567,207

Non-interest Income
    Service charge income                              22,272         18,416
    Mortgage banking activities                        29,593         52,616
    SBA loan sales                                    139,364         84,972
    Other income                                       29,140         28,534
                                                -------------  -------------
  Total non-interest income                           220,369        184,538

Non-interest Expense
    Salaries and employee benefits                    822,433        716,553
    Occupancy expense                                 143,488        126,913
    Equipment expense                                  47,085         54,847
    Advertising                                        46,216         50,933
    Data Processing                                    71,570         61,447
    Professional fees                                 136,814        137,716
    Loan origination expense                           46,386         28,732
    Regulatory Assessments                             37,384         31,241
    Other expense                                     106,600         93,631
                                                -------------  -------------
  Total non-interest expense                        1,457,976      1,302,013

  Net Income Before Income Taxes                      579,507        449,732
    Income tax expense                                197,581        151,602
                                                -------------  -------------
  Net Income                                          381,926        298,130
    Dividend on preferred stock                        11,553         11,553
                                                -------------  -------------
  Net Income applicable to common shareholders  $     370,373  $     286,577
                                                =============  =============

Income per share - basic                        $        0.20  $        0.16



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

                                                Year to Date
                                -------------------------------------------
                                       March 31,               Change
                                ----------------------  -------------------
                                   2014        2013      Amount  Percentage
                                ----------  ----------  -------  ----------
INCOME STATEMENT
      Interest Income           $    2,071  $    1,792  $   279        15.6%
      Interest Expense                 254         215       39        18.3%
                                ----------  ----------  -------
    Net Interest Income              1,817       1,577      240        15.2%
      Provision for loan loss            -          10      (10)     -100.0%
      Non-interest income              220         185       36        19.4%
      Non-interest expense           1,458       1,302      156        12.0%
                                ----------  ----------  -------
    Net Income before Income
     Taxes                             580         450      130        28.9%
      Income tax expense               198         152       46        30.3%
                                ----------  ----------  -------
    Net Income                         382         298       84        28.1%
      Dividend on preferred
       stock                            12          12        -         0.0%
                                ----------  ----------  -------
    Net Income - common
     shareholders               $      370  $      287  $    84        29.2%
                                ==========  ==========  =======

    Income per share - basic &
     diluted                    $     0.20  $     0.16  $  0.04        27.9%
                                ==========  ==========  =======

BALANCE SHEET DATA
    Total assets                   194,232     156,985   37,248        23.7%
    Average Assets                 192,378     154,282   38,096        24.7%
    Total loans                    161,424     129,638   31,786        24.5%
    Allowance for loan loss
     (ALLL)                          1,869       2,054     (186)       -9.0%
    Total deposits                 174,756     138,992   35,764        25.7%
    Other borrowings                     -           -        -         0.0%
    Shareholders' equity            18,648      17,281    1,367         7.9%
    Average Equity                  18,459      17,139    1,320         7.7%

ASSET QUALITY
    Other real estate owned
     (OREO)                              -           -        -         0.0%
    Net charge-offs                      -           -        -         0.0%
    Non-accrual loans                  223         764     (541)      -70.9%
(2) Non-performing assets (NPA)        223         764     (541)      -70.9%
    Non-accrual loans / total
     loans                            0.14%       0.59%   -0.45%      -76.6%
    Allowance for loan loss /
     total loans                      1.16%       1.58%   -0.43%      -27.0%

PERFORMANCE MEASUREMENTS
    Net interest margin (tax
     equivalent)                      4.23%       4.56%   -0.33%       -7.2%
(1) Return on average assets
     (annualized)                     0.81%       0.78%    0.03%        3.8%
(3) Return on average assets
     (annualized)                     1.22%       1.21%    0.01%        0.8%
(1) Return on average common
     equity (annualized)             11.19%       9.66%    1.53%       15.8%
(3) Return on average common
     equity (annualized)             16.98%      14.89%    2.09%       14.0%
    Efficiency ratio                  71.6%       73.9%   -2.35%       -3.2%
    Total loans / Total
     deposits                         92.4%       93.3%   -0.90%       -1.0%
    Tier 1 Leverage Ratio (Bank
     only)                            8.67%       9.36%   -0.69%      -7.37%
    Equity / Assets                   9.60%      11.01%   -1.41%      -12.8%
    Tangible common equity /
     Total assets                     7.22%       8.06%   -0.84%      -10.4%

    Book value per share        $     7.60  $     6.94  $  0.66         9.5%
    Stock price                 $     5.95  $     4.95  $  1.00        20.2%
    Stock price / book value
     (%)                              78.3%       71.3%    6.97%        9.8%
    Income per share - basic &
     diluted                    $     0.20  $     0.16  $  0.04        27.9%
    Income per share - basic &
     diluted (LTM)              $     0.70  $     0.53  $  0.17        32.1%
    Price to earnings ratio
     (P/E) (year to date)             7.3x        7.8x    -0.5x        -6.0%
    Shares outstanding           1,846,128   1,824,662   21,466         1.2%
    Average shares outstanding   1,844,130   1,824,662   19,468         1.1%

(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
                      March 31,     31,        30,     June 30,   March 31,
                        2014       2013       2013       2013       2013
                     ---------- ---------- ---------- ---------- ----------
INCOME STATEMENT
     Interest Income $    2,071 $    2,085 $    1,998 $    1,860 $    1,792
     Interest
      Expense               254        262        246        222        215
                     ---------- ---------- ---------- ---------- ----------
    Net Interest
     Income               1,817      1,823      1,752      1,638      1,577
     Provision for
      loan loss               -       (120)       180         90         10
     Non-interest
      income                220        252        210        215        185
     Non-interest
      expense             1,458      1,543      1,358      1,394      1,302
                     ---------- ---------- ---------- ---------- ----------
    Net Income
     before Income
     Taxes                  580        653        425        369        450
     Income tax
      expense               198        220        145        125        152
                     ---------- ---------- ---------- ---------- ----------
    Net Income              382        432        279        244        298
     Dividend on
      preferred
      stock                  12         12         12         12         12
                     ---------- ---------- ---------- ---------- ----------
    Net Income
     applicable to
     common
     shareholders    $      370 $      421 $      268 $      232 $      287
                     ========== ========== ========== ========== ==========

    Income per share
     - basic &
     diluted         $     0.20 $     0.23 $     0.15 $     0.13 $     0.16
                     ========== ========== ========== ========== ==========

BALANCE SHEET DATA
    Total assets        194,232    188,679    182,693    164,588    156,985
    Average Assets      192,378    191,516    175,007    160,953    154,282
    Total loans         161,424    158,828    151,524    138,017    129,638
    Allowance for
     loan loss
     (ALLL)               1,869      1,869      1,989      2,144      2,054
    Total deposits      174,756    169,612    163,836    146,171    138,992
    Other borrowings          -          -          -          -          -
    Shareholders'
     equity              18,648     18,225     17,809     17,546     17,281
    Average Equity       18,459     18,006     17,682     17,399     17,139

ASSET QUALITY
    Other real
     estate owned
     (OREO)                   -          -          -          -          -
    Net charge-offs           -          -        336          -          -
    Non-accrual
     loans                  223        229        316        732        732
(2) Non-performing
     assets (NPA)           223        229        316        732        732
    Non-accrual
     loans / total
     loans                 0.14%      0.14%      0.21%      0.53%      0.56%
    Allowance for
     loan loss /
     total loans           1.16%      1.18%      1.31%      1.55%      1.58%

PERFORMANCE
 MEASUREMENTS
    Net interest
     margin (tax
     equivalent)           4.23%      4.24%      4.36%      4.50%      4.56%
(1) Return on
     average assets
     (annualized)          0.81%      0.90%      0.63%      0.61%      0.78%
(3) Return on
     average assets
     (annualized)          1.22%      1.10%      1.37%      1.14%      1.21%
(1) Return on
     average common
     equity
     (annualized)         11.19%     12.82%      8.49%      7.65%      9.66%
(3) Return on
     average common
     equity
     (annualized)         16.98%     15.79%     18.37%     14.39%     14.89%
    Efficiency ratio       71.6%      74.3%      69.2%      75.2%      73.9%
    Total loans /
     Total deposits        92.4%      93.6%      92.5%      94.4%      93.3%
    Tier 1 Leverage
     Ratio (Bank
     only)                 8.67%      8.40%      8.71%      9.21%      9.36%
    Equity / Assets        9.60%      9.66%      9.75%     10.66%     11.01%
    Tangible common
     equity / Total
     assets                7.22%      7.21%      7.22%      7.85%      8.06%

    Book value per
     share           $     7.60 $     7.41 $     7.18 $     7.04 $     6.94
    Stock price      $     5.95 $     5.13 $     5.70 $     4.30 $     4.95
    Stock price /
     book value (%)        78.3%      69.3%      79.4%      61.1%      71.3%
    Income per share
     - basic &
     diluted         $     0.20 $     0.23 $     0.15 $     0.13 $     0.16
    Shares
     outstanding      1,846,128  1,836,662  1,836,662  1,836,662  1,824,662
    Average shares
     outstanding      1,844,130  1,836,662  1,836,662  1,825,058  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

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