NEWS RELEASE TRANSMITTED BY Marketwire

FOR: BIRMINGHAM BLOOMFIELD BANCSHARES, INC

Birmingham Bloomfield Bancshares, Inc. Announces Unaudited First Quarter Results

APR 26, 2012 - 13:57 ET

BIRMINGHAM, MI--(Marketwire - April 26, 2012) - Birmingham Bloomfield Bancshares, Inc. (OTCBB: BBBI) ("the Company"), the holding company for Bank of Birmingham, today announced first quarter net income for the period ended March 31, 2012. The favorable results are a product of improved margins, lower loan loss provision expense and an increase in non-interest income.

The Corporation reported net income of $336,000 or $0.19 per share of common stock for the first quarter of 2012, compared to net income of $414,000 or $0.23 per share for the first quarter of 2011. The overall performance was impacted by the recognition of income tax expense in 2012 not required in 2011. Excluding tax expense of $171,000 for the period, pre-tax net income after preferred dividends was $507,000, an increase of 22.5% from March 31, 2011.

Chief Executive Officer, Rob Farr, issued the results and commented, "On a pre-tax basis the performance represents our most profitable quarter. We have been successful in producing positive results as we continue to grow the institution, diversify our earnings and generate improvement in net interest margin. The pre-tax, pre-provision Return on Average Assets was 1.71% for the quarter and our book value reached $6.44. Overall we are pleased with the results and look forward to the remainder of 2012."

Results of Operation

Total net interest income for the first quarter of 2012 increased 10.6% to $1.394 million compared to $1.260 million for the first quarter of 2011. The increase in net interest income was a result of earning assets growth and a reduction in funding costs. Net interest margin increased from 4.49% in the first quarter of 2011 to 4.80% during the current quarter. This was achieved by improving the asset mix of the balance sheet and lowering the aggregate cost of deposits.

The Company continues to be successful in generating significant revenue from non-interest income sources. Non-interest income totaled $484,000 for the first quarter of 2012, compared to $325,000 for the same period in 2011. The majority of the revenue was generated from SBA loan sales, mortgage banking activity and a gain of $150,000 on the sale of a foreclosed property. The Company participates in the SBA 7(a) program and recognized $122,000 in gain on sale and servicing income during the first quarter of 2012. Mortgage banking income represents the premium received on selling qualified residential loans in the secondary market. This generated $163,000 in revenue for the period ended March 31, 2012 compared to $12,000 in 2011. This was a function of increased loan volume due to the low interest rate environment.

Total non-interest expense for the first quarter of 2012 was $1.338 million, an increase of $255,000 compared to the same period of the prior year. This was a result of additional costs associated with increased volume from residential mortgage activity, adding new personnel to generate growth, expanding services, and dedicating resources to business development efforts to improve franchise awareness.

Balance Sheet

Total assets as of March 31, 2012 were $128.663 million, a 10.4% increase from the prior year. The balance sheet growth was a direct result of an increase in loan and deposit balances. Total portfolio loans reached $106.628 million at the end of the first quarter, an increase of $8.423 million from the prior year. The growth was primarily concentrated in commercial real estate and mortgage related loans. The Company continues to focus on quality opportunities in our primary market as credit conditions have modestly improved. The asset quality of the Company remains solid; there were no non-performing assets outstanding and the allowance for loan loss was 1.50% of total portfolio loans. Total deposits as of March 31, 2012 were $111.774 million, an increase of 6.9% from 2011. The Bank also continues to be classified as well capitalized based on regulatory guidelines and the Tier 1 ratio was 10.13% 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)

Birmingham Bloomfield Bancshares, Inc.
Consolidated Balance Sheet (Unaudited)
				March 31,				December 31,				March 31,
				2012				2011				2011
ASSETS
		Cash and due from banks		$	11,436,761			$	4,693,585			$	14,036,879
		Federal funds sold			-				-				-
	Total cash and cash equivalents				11,436,761				4,693,585				14,036,879
		Securities available-for-sale			4,513,638				4,594,761				3,150,652
		Securities held-to-maturity			-				-				-
		Federal Home Loan Bank Stock			169,900				169,900				160,200
	Total securities				4,683,538				4,764,661				3,310,852
	Loans held for sale				199,479				2,484,829				-
	Portfolio loans
		Consumer loans			1,081,458				1,305,501				813,491
		Mortgage loans			13,325,469				11,572,620				11,257,843
		Commercial loans			92,221,207				93,419,805				86,133,771
	Total loans				106,628,134				106,297,926				98,205,105
		Less: Allowance for loan loss			1,594,350				1,574,350				1,487,099
	Net loans				105,033,784				104,723,576				96,718,007
		Premises and equipment, net			1,350,946				1,395,187				1,435,426
		Accrued interest receivable and other assets			5,958,663				6,335,623				1,019,575
	TOTAL ASSETS			$	128,663,171			$	124,397,461			$	116,520,738
LIABILITIES
	Deposits
		Noninterest-bearing		$	18,750,714			$	19,662,283			$	12,477,840
		Interest-bearing			93,023,218				88,015,546				92,110,155
	Total deposits				111,773,932				107,677,829				104,587,995
		Short term borrowings			-				-				-
		Accrued interest payable, taxes and other liabilities			592,595				755,090				529,559
	Total liabilities				112,366,527				108,432,919				105,117,554
SHAREHOLDERS' EQUITY
		Senior preferred stock A											1,635,000
		Discount on senior preferred stock A											(56,427	)
		Warrant preferred stock B											82,000
		Premium on warrant preferred stock B											6,133
		Senior preferred stock C											1,744,000
		Senior preferred stock, series D			4,621,000				4,621,000				-
		Common Stock, no par value			17,066,618				17,066,618				17,034,330
		Authorized - 4,500,000 shares, Issued and outstanding - 1,812,662
		1,812,662 and 1,800,000 shares respectively
		Accumulated other comprehensive income			90,876				95,168				112,171
		Additional paid in capital - share based payments			493,154				493,154				493,154
		Accumulated deficit			(5,975,004	)			(6,311,398	)			(9,647,177	)
	Total shareholders' equity				16,296,644				15,964,542				11,403,185
	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	128,663,171			$	124,397,461			$	116,520,738
					-				-				-
Book value per share				$	6.44			$	6.26			$	4.44

Birmingham Bloomfield Bancshares, Inc.
Consolidated Statement of Income (Unaudited)
					For the three months ended
					March 31,
					2012			2011
Interest Income
		Interest and fees on loans
			Commercial loans		$	1,427,677		$	1,413,787
			Installment loans			18,057			13,088
			Mortgage loans			49,718			19,525
			Home Equity loans			94,222			97,931
			Late charges and fees			2,643			11,478
	Total loan interest and fee income					1,592,317			1,555,809
		Interest bearing deposits				3,414			4,618
		Federal Funds Sold				-			13
		Interest on investment securities
			Taxable			24,688			27,911
			Tax-exempt			1,008			-
	Total investment income					25,696			27,911
	Total interest income					1,621,427			1,588,351
Interest Expense
		Interest on deposits				227,557			314,055
		Interest on borrowed funds				64			14,509
	Total interest expense					227,621			328,564
	Net Interest Income					1,393,806			1,259,787
		Provision for loan losses				20,000			39,000
	Net Interest Income After Provision for Loan Losses					1,373,806			1,220,787
Non-interest Income
		Service charge income				18,798			11,572
		Mortgage banking activities				162,828			11,439
		SBA loan sales				121,791			291,294
		Other income				180,572			10,804
	Total non-interest income					483,989			325,109
Non-interest Expense
		Salaries and employee benefits				761,670			582,017
		Occupancy expense				119,731			118,102
		Equipment expense				49,152			35,400
		Advertising				42,594			36,046
		Data Processing				59,002			49,013
		Professional fees				117,034			111,524
		Loan origination expense				69,012			26,369
		Regulatory Assessments				25,260			48,426
		Other expense				95,040			76,519
	Total non-interest expense					1,338,495			1,083,416
	Net Income Before Income Taxes					519,300			462,480
		Income tax expense				171,353			-
	Net Income					347,947			462,480
		Dividend and accretion on preferred stock				11,553			48,183
	Net Income applicable to common shareholders				$	336,394		$	414,297
Income per share - basic					$	0.19		$	0.23

Birmingham Bloomfield Bancshares, Inc.
Financial Summary and Selected Ratios (Unaudited)
(Dollars in thousands except per share data)
				Year to Date
				March 31,								Change
				2012				2011				Amount				Percentage
INCOME STATEMENT
		Interest Income		$	1,621			$	1,588			$	33			2.1	%
		Interest Expense			228				329				(101	)		-30.7	%
	Net Interest Income				1,394				1,260				134			10.6	%
		Provision for loan loss			20				39				(19	)		-48.7	%
		Non-interest income			484				325				159			48.9	%
		Non-interest expense			1,338				1,083				255			23.5	%
	Net Income before Income Taxes				519				462				57			12.3	%
		Income tax expense			171				-				171			0.0	%
	Net Income				348				462				(115	)		-24.8	%
		Dividend and accretion on preferred stock			12				48				(37	)		-76.0	%
	Net Income - common shareholders			$	336			$	414			$	(78	)		-18.8	%
	Income per share - basic & diluted			$	0.19			$	0.23			$	(0.04	)		-19.0	%
BALANCE SHEET DATA
	Total assets				128,663				116,521				12,142			10.4	%
	Average Assets				126,499				115,435				11,064			9.6	%
	Total loans				106,628				98,205				8,423			8.6	%
	Allowance for loan loss (ALLL)				1,594				1,487				107			7.2	%
	Total deposits				111,774				104,588				7,186			6.9	%
	Other borrowings				-				-				-			0.0	%
	Shareholders' equity				16,297				11,403				4,893			42.9	%
	Average Equity				16,206				11,167				5,039			45.1	%
ASSET QUALITY
	Other real estate owned (OREO)				-				-				-			0.0	%
	Net charge-offs				-				-				-			0.0	%
	Non-accrual loans				-				298				(298	)		-100.0	%
(2)	Non-performing assets (NPA)				-				298				(298	)		-100.0	%
	Non-accrual loans / total loans				0.00	%			0.30	%			-0.30	%		-100.0	%
	Allowance for loan loss / total loans				1.50	%			1.51	%			-0.02	%		-1.3	%
PERFORMANCE MEASUREMENTS
	Net interest margin (tax equivalent)				4.80	%			4.49	%			0.31	%		6.9	%
(1)	Return on average assets (annualized)				1.11	%			1.62	%			-0.51	%		-31.7	%
(3)	Return on average assets (annualized)				1.71	%			1.76	%			-0.05	%		-2.9	%
(1)	Return on average common equity (annualized)				12.08	%			24.17	%			-12.09	%		-50.0	%
(3)	Return on average common equity (annualized)				18.72	%			26.21	%			-7.49	%		-28.6	%
	Efficiency ratio				71.28	%			68.36	%			2.92	%		4.3	%
	Tier 1 Leverage Ratio (Bank only)				10.13	%			8.33	%			1.80	%		21.61	%
	Equity / Assets				12.67	%			9.79	%			2.88	%		29.4	%
	Total loans / Total deposits				95.4	%			93.9	%			1.50	%		1.6	%
	Book value per share			$	6.44			$	4.44			$	2.00			45.1	%
	Income (loss) per share - basic & diluted			$	0.19			$	0.23			$	(0.04	)		-19.0	%
	Shares outstanding				1,812,662				1,800,000				12,662			0.7	%
	Average shares outstanding				1,812,662				1,800,000				12,662			0.7	%
(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
				March 31,			December 31,			September 30,			June 30,			March 31,
				2012			2011			2011			2011			2011
INCOME STATEMENT
		Interest Income		$	1,621		$	1,630		$	1,582		$	1,565		$	1,588
		Interest Expense			228			280			301			314			329
	Net Interest Income				1,394			1,350			1,281			1,251			1,260
		Provision for loan loss			20			75			105			15			39
		Non-interest income			484			309			319			280			325
		Non-interest expense			1,338			1,484			1,317			1,207			1,083
	Net Income before Income Taxes				519			100			177			310			462
		Income tax expense (benefit)			171			(2,885	)		-			-			-
	Net Income				348			2,985			177			310			462
		Dividend and accretion on preferred stock			12			20			68			48			48
	Net Income applicable to common shareholders			$	336		$	2,965		$	109		$	261		$	414
	Income per share - basic & diluted			$	0.19		$	1.64		$	0.06		$	0.15		$	0.23
BALANCE SHEET DATA
	Total assets				128,663			124,397			124,743			118,604			116,521
	Average Assets				126,499			123,317			121,526			117,002			115,435
	Total loans				106,628			106,298			102,580			100,079			98,205
	Allowance for loan loss (ALLL)				1,594			1,574			1,499			1,502			1,487
	Total deposits				111,774			107,678			111,171			106,305			104,588
	Other borrowings				-			-			-			-			-
	Shareholders' equity				16,297			15,965			13,056			11,696			11,403
	Average Equity				16,206			13,584			12,520			11,481			11,167
ASSET QUALITY
	Other real estate owned (OREO)				-			298			298			298			-
	Net charge-offs				-			-			108			-			-
	Non-accrual loans				-			-			-			-			298
(2)	Non-performing assets (NPA)				-			298			298			298			298
	Non-accrual loans / total loans				0.00	%		0.00	%		0.00	%		0.00	%		0.30	%
	Allowance for loan loss / total loans				1.50	%		1.48	%		1.46	%		1.50	%		1.51	%
PERFORMANCE MEASUREMENTS
	Net interest margin (tax equivalent)				4.80	%		4.61	%		4.44	%		4.51	%		4.49	%
(1)	Return on average assets (annualized)				1.11	%		9.60	%		0.58	%		1.06	%		1.62	%
(3)	Return on average assets (annualized)				1.71	%		0.56	%		0.92	%		1.11	%		1.76	%
(1)	Return on average common equity (annualized)				12.08	%		132.13	%		8.50	%		15.39	%		24.17	%
(3)	Return on average common equity (annualized)				18.72	%		7.77	%		13.54	%		16.13	%		26.21	%
	Efficiency ratio				71.28	%		89.43	%		82.37	%		78.80	%		68.36	%
	Tier 1 Leverage Ratio (Bank only)				10.13	%		9.94	%		9.22	%		8.54	%		8.33	%
	Equity / Assets				12.67	%		12.83	%		10.47	%		9.86	%		9.79	%
	Total loans / Total deposits				95.4	%		98.7	%		92.3	%		94.1	%		93.9	%
	Book value per share			$	6.44		$	6.26		$	4.65		$	4.60		$	4.44
	Income (loss) per share - basic & diluted			$	0.19		$	1.64		$	0.06		$	0.15		$	0.23
	Shares outstanding				1,812,662			1,812,662			1,812,662			1,800,000			1,800,000
	Average shares outstanding				1,812,662			1,812,662			1,801,652			1,800,000			1,800,000
(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

FOR FURTHER INFORMATION PLEASE CONTACT:

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