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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM
10-KSB
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2006
 Commission
File Number 333-128127
 BIRMINGHAM BLOOMFIELD BANCSHARES, INC.
  Michigan
    
    20-3993452(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 33583 Woodward Avenue, Birmingham. MI 48009
  (248) 723-7200
     o
 þ o
 þ
 o þ
    Documents Incorporated by Reference:




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Disclosure Regarding Forward Looking Statements




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TABLE OF CONTENTS  PART IITEM 1. Description of BusinessITEM 2. Description of PropertyITEM 3. Legal ProceedingsITEM 4. Submission of Matters to a Vote of Security HoldersPART IIITEM 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity SecuritiesITEM 6. Managements Discussion and Analysis or Plan of OperationITEM 7. Financial StatementsITEM 8. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureITEM 8A. Controls and ProceduresITEM 8B. Other InformationPART IIIITEM 9. Directors and Executive Officers, Promoters, and Control Persons; Compliance With Section 16(a) of the Exchange ActITEM 10. Executive CompensationITEM 11. Security Ownership of Certain Beneficial Owners and ManagementITEM 12. Certain Relationships and Related Transactions, and Director IndependenceITEM 13. ExhibitsITEM 14. Principal Accounting Fees and ServicesSIGNATURESExhibit IndexComputation of Per Share Earnings2006 Shareholder ReportProxy Statement to ShareholdersList of SubsidiariesCertification of Chief Executive OfficerCertification of Chief Financial OfficerSection 1350 Certification    Table of Contents  BIRMIGNHAM BLOOMFIELD BANCSHARES, INC.
 
 PART I
 
 ITEM 1. Description of Business.
 Overview
    Philosophy and strategy
   
    
    Capitalizing on the diverse community involvement, professional expertise and
personal and business contacts of our directors, organizers and executive officers;
    
    Hiring and retaining experienced and qualified banking personnel;
    
    Providing individualized attention with consistent, local decision-making authority;
    
    Utilizing technology and strategic outsourcing to provide a broad array of
convenient products and services;
    
    Operating from highly visible and accessible banking offices in close proximity to
a concentration of targeted commercial businesses and professionals;
    
    Attracting its initial customer base by offering competitive interest rates on
deposit accounts;
    
    Implementing a strong marketing program.




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Market opportunities
 Primary service areas
 Local economy
  Competition




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Business strategy
 Management philosophy
 Operating strategy
 
    
    Experienced senior management. The Banks senior management possesses extensive
experience in banking industry, as well as substantial business and banking contacts
in our primary service areas.
    
    Quality employees. Bank of Birmingham will strive to hire highly trained and
seasoned staff.
    
    Community-oriented board of directors. All of the Banks directors are either
experienced bankers or local business and community leaders. Many of its directors
are residents of our primary service areas, and most have significant business ties to
the Banks primary service areas, enabling them to be sensitive and responsive to the
needs of the community. Additionally, the board of directors represents a wide variety
of business experience and community involvement.
    
    Highly visible sites. The main office is highly visible and located in close
proximity to major traffic arteries. The main office is located at 33583 Woodward
Avenue, Birmingham, Michigan in an area that provides easy access to potential banking
customers traveling in the Birmingham area. The Bank also operates another
full-service banking office at 4145 West Maple, Bloomfield Township, Michigan, to
serve the expanding Bloomfield area. We believe that these sites give the Bank a
highly visible presence in a market that is dominated by branch offices of Banks
headquartered out of the area. We believe this will enhance the Banks image as a
strong competitor.
    
    Individual customer focus. Bank of Birmingham focuses on providing individual
service and attention to our target customers, which include local businesses,
professionals and individuals. The Banks products and services are delivered
personally though two full-service offices and supported by effective technical and
non-technical service delivery systems. Clients will enjoy the convenience of on-site
visits by the Banks business relationship managers, a courier service for non-cash
deposits and business consultation services.
    
    Financial and information center.Bank of Birmingham serves as a financial and
information center for the community, and will assemble and sponsor professionals to
conduct seminars and workshops on a variety of subjects of interest to assist members
of our community in developing or enhancing their personal and professional
effectiveness.
 Growth strategies




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
    
    Capitalize on community orientation. We plan to capitalize on the Banks position
as an independent, locally-owned community bank to attract individuals, professionals
and local business customers that may be underserved by larger banking institutions in
our market area.
    
    Emphasize local decision-making. The Bank will emphasize local decision-making by
experienced bankers. This will help the Bank attract local businesses and
service-minded customers.
    
    Attract experienced lending officers. Bank of Birmingham has hired experienced,
well-trained lending officers capable of soliciting loan business immediately.
    
    Offer fee-generating products and services. The Banks range of services, pricing
strategies, interest rates paid and charged and hours of operation will be structured
to attract its target customers and increase its market share. Bank of Birmingham
will strive to offer the small business person, professional, entrepreneur and
consumer the best loan services available while charging competitively for these
services and utilizing technology and strategic outsourcing to increase fee revenues.
 Lending services
 Lending policy
  Lending limits
 
    
    15% of the banks capital and surplus; or
    
    upon a 2/3 vote of the Banks board of directors, 25% of its capital and surplus.
  Credit risks




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Real estate loans
 
    
    Commercial real estate. Commercial real estate loan terms generally will be
limited to five years or less, although payments may be structured on a longer
amortization basis. Interest rates may be fixed or adjustable, although rates
typically will not be fixed for a period exceeding 12 months. The Bank generally will
require personal guarantees from the principal owners of the property supported by a
review by Bank management of the principal owners personal financial statements.
Risks associated with commercial real estate loans include fluctuations in the value
of real estate, new job creation trends, tenant vacancy rates and the quality of the
borrowers management. The Bank will limit its risk by analyzing borrowers cash flow
and collateral value on an ongoing basis.
    
    Construction and development loans. Bank of Birmingham will consider making
owner-occupied construction loans with a pre-approved take-out loan. The Bank will
also consider construction and development loans on a pre-sold basis. If the borrower
has entered into an agreement to sell the property prior to beginning construction,
then the loan is considered to be on a pre-sold basis. If the borrower has not
entered into an agreement to sell the property prior to beginning construction, then
the loan is considered to be on a speculative basis. Construction and development
loans are generally made with a term of six to twelve months and interest is paid
quarterly. The ratio of the loan principal to the value of the collateral as
established by independent appraisal typically will not exceed industry standards.
Speculative loans will be based on the borrowers financial strength and cash flow
position. Loan proceeds will be disbursed based on the percentage of completion and
only after the project has been inspected by an experienced construction lender or
third-party inspector. Risks associated with construction loans include fluctuations
in the value of real estate and new job creation trends.
    
    Residential real estate. The Banks residential real estate loans will consist of
residential second mortgage loans, residential construction loans and traditional
mortgage lending for one-to-four family residences. The Bank expects that any
long-term fixed rate mortgages will be underwritten for resale to the secondary
market. It will offer primarily adjustable rate mortgages. The majority of fixed
rate loans will be sold in the secondary mortgage market. All loans will be made in
accordance with our appraisal policy with the ratio of the loan principal to the value
of collateral as established by independent appraisal not exceeding 80%, unless the
borrower has private mortgage insurance. The Bank expects that these loan-to-value
ratios will be sufficient to compensate for fluctuations in real estate market value
and to minimize losses that could result from a downturn in the residential real
estate market.
 Commercial loans




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Consumer loans
 Investments
  Asset and liability management
  Deposit services
  Other banking services




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Employees
  SUPERVISION AND REGULATION
 General
      The Corporation
 General .
 Investments and Activities .




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Capital Requirements .




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The Bank
 General .
 Business Activities .
 Branching .
  Loans to One Borrower .
 Enforcement .




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Assessments and Fees .
 Regulatory Capital Requirements .
     Prompt Corrective Regulatory Action .




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Deposit Insurance .
 Payment of Dividends by the Bank .
  Loans to Directors, Executive Officers, and Principal Shareholders .




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Certain Transactions With Related Parties .
  Standards for Safety and Soundness .
 Reserve Requirement .
 
    
    for transaction accounts totaling $8.5 million or less, a reserve of 0%; and
    
    for transaction accounts in excess of $8.5 million up to and including $45.8 million, a
reserve of 3%; and
    
    for transaction accounts totaling in excess of $45. million, a reserve requirement of
$1.119 million plus 10% against that portion of the total transaction accounts greater
than $45.8 million.
  
 ITEM 2. Description of Property.




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ITEM 3. Legal Proceedings.
  
 ITEM 4. Submission of Matters to a Vote of Security Holders.




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PART II
 
 ITEM 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases
of Equity Securities.
   Market
    
    DividendsInformation
    
    paid perYear
    
    Quarter
    
    High
    
    Low
    
    share2006
    
    Third
    
    $
    10.20
    
    
    $
    10.00
    
    
    
    Fourth
    
    $
    10.25
    
    
    $
    9.00
    
    
    
    
 Dividends
  Recent Sales of Unregistered Securities




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ITEM 6. Managements Discussion and Analysis or Plan of Operation.
  
 ITEM 7. Financial Statements.
  
 ITEM 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
  
 ITEM 8A. Controls and Procedures.
      
 ITEM 8B. Other Information




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PART III
 
 ITEM 9. Directors and Executive Officers, Promoters, and Control Persons;
Compliance With Section 16(a) of the Exchange Act.
 Directors and Executive Officers
 Audit Committee and Audit Committee Financial Expert
 Compliance with Section 16(a) of the Exchange Act.
 Code of Ethics
 
 ITEM 10. Executive Compensation.
  
 ITEM 11. Security Ownership of Certain Beneficial Owners and Management.
   
 ITEM 12. Certain Relationships and Related Transactions, and Director Independence.




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ITEM 13. Exhibits
 Number
    
    Description3.1
    
    Articles of incorporation are incorporated by reference from
Exhibit 3.1 of the Corporations Registration Statement on
Form SB-2/A dated October 27, 2005 (SEC File no. 333-128127)3.2
    
    Bylaws are incorporated by reference from Exhibit 3.2 of the
Corporations Registration Statement on Form SB-2 dated
September 6, 2005 (SEC File no. 333-128127)4.1
    
    Specimen common stock certificate is incorporated by reference
from Exhibit 4.1 of the Corporations Registration Statement
on Form SB-2 dated September 6, 2005 (SEC File no. 333-128127)4.2
    
    Form of Birmingham Bloomfield Bancorp, Inc. Organizers
Warrant Agreement is incorporated by reference from Exhibit
4.2 of the Corporations Registration Statement on Form SB-2
dated September 6, 2005 (SEC File no. 333-128127)4.3
    
    Form of Birmingham Bloomfield Bancorp, Inc. Shareholders
Warrant Agreement is incorporated by reference from Exhibit
4.3 of the Corporations Registration Statement on Form SB-2
dated September 6, 2005 (SEC File no. 333-128127)10.1
    
    Birmingham Bloomfield Bancorp, Inc. 2005 Stock Incentive Plan
is incorporated by reference from Exhibit 10.3 of the
Corporations Registration Statement on Form SB-2 dated
September 6, 2005 (SEC File no. 333-128127)+10.2
    
    Form of Employment Agreement by and between Birmingham
Bloomfield Bancorp, Inc. and Robert Farr is incorporated by
reference from Exhibit 10.4 of the Corporations Registration
Statement on Form SB-2 dated September 6, 2005 (SEC File no.
333-128127)+10.3
    
    Form of Employment Agreement by and between Birmingham
Bloomfield Bancorp, Inc. and Richard Miller is incorporated by
reference from Exhibit 10.5 of the Corporations Registration
Statement on Form SB-2 dated September 6, 2005 (SEC File no.
333-128127)+10.4
    
    Lease Agreement dated January 28, 2005, by and between Irving
I. Rosen Family Limited Partnership and Birmingham Bloomfield
Bancorp, Inc. is incorporated by reference from Exhibit 10.10
of the Corporations Registration Statement on Form SB-2 dated
September 6, 2005 (SEC File no. 333-128127)10.5
    
    Lease Agreement, by and between Birmingham Bloomfield Bancorp,
Inc. and Bloomfield Plaza is incorporated by reference from
Exhibit 10.11 of the Corporations Registration Statement on
Form SB-2 dated September 6, 2005 (SEC File no. 333-128127)10.6
    
    Data Processing Services Agreement, dated February 16, 2005,
by and between Rurbanc Data Services, Inc. and Bank of
Birmingham is incorporated by reference from Exhibit 10.12 of
the Corporations Registration Statement on Form SB-2 dated
September 6, 2005 (SEC File no. 333-128127)10.7
    
    Item Processing Services Agreement, dated February 16, 2005,
by and between Rurbanc Data Services, Inc. and Bank of
Birmingham is incorporated by reference from Exhibit 10.13 of
the Corporations Registration Statement on Form SB-2 dated
September 6, 2005 (SEC File no. 333-128127)11
    
    Computation of Per Share Earnings13
    
    2006 Shareholder Report (except for portions of the 2006
Shareholder Report that are expressly incorporated by
reference into this Annual Report of Form 10-KSB, the 2006
Shareholder Report shall not be deemed filed as apart herof.)14
    
    Code of Ethics is incorporated by reference from Exhibit 14 of
the Corporations Annual Report on Form 10-KSB for the year
ended December 31, 2005 (SEC File no. 333-128127)20
    
    Other Documents  The Corporations Proxy Statement to
Shareholders dated March 19, 2007.




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Number
    
    Description21
    
    List of Subsidiaries31.1
    
    Certification of Chief Executive Officer Pursuant to Rule
15d-15(e) of the securities Exchange Act.31.2
    
    Certification of Chief Financial Officer Pursuant to Rule
15d-15(e) of the securities Exchange Act.32
    
    Certification Pursuant to Rule 14d-14(b) of the Securities
Exchange Act and 18 U.S.C. section 1350+
    
    Indicates a compensatory plan or contract.
 
 ITEM 14. Principal Accounting Fees and Services.




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BIRMINGHAM BLOOMFIELD BANCSHARES, INC.By:
    
    /s/  Robert E. FarrRobert E. FarrPresident and Chief Executive Officer
  SIGNATURE
    
    TITLE
    
    DATE/s/ Donald J. Abood
    
    Director
    
    March 29, 2007Donald J. Abood/s/ William R. Aikens
    
    Director
    
    March 29, 2007William R. Aikens/s/ Jane L. Brodsky
    
    Director
    
    March 29, 2007Jane L. Brodsky/s/ Harry Cendrowski
    
    Director
    
    March 29, 2007Harry Cendrowski/s/ Donald E. Copus
    
    Director
    
    March 29, 2007Donald E. Copus/s/ John M. Farr
    
    Director
    
    March 29, 2007John M. Farr/s/ Robert E. Farr
    
    Director, President & Chief Executive Officer
    
    March 29, 2007Robert E. Farr/s/ Charles Kaye
    
    Director
    
    March 29, 2007Charles Kaye/s/ Scott McCallum
    
    Director
    
    March 29, 2007Scott McCallum




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SIGNATURE
    
    TITLE
    
    DATE/s/ Richard J. Miller
    
    Director, Chief Financial Officer
    
    March 29, 2007Richard J. Miller/s/ Daniel P. ODonnell
    
    Director
    
    March 29, 2007Daniel P. ODonnell/s/ Charles T. Pryde
    
    Director
    
    March 29, 2007Charles T. Pryde/s/ Donald Ruff
    
    Director
    
    March 29, 2007Donald Ruff/s/ Walter F. Schwartz
    
    Director
    
    March 29, 2007Walter F. Schwartz/s/ Henry Spellman
    
    Director
    
    March 29, 2007Henry Spellman/s/ Robert Stapleton
    
    Director
    
    March 29, 2007Robert Stapleton




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Exhibit Index
 Number
    
    Description11
    
    Computation of Per Share Earnings13
    
    2006 Shareholder Report (except for portions of the 2006
Shareholder Report that are expressly incorporated by reference in
this Annual Report of Form 10-KSB, the 2006 Shareholder Report of
the Corporation shall not be deemed filed as apart therof.)20
    
    Other Documents  The Corporations Proxy Statement to Shareholders
dated March 19, 2007.21
    
    List of Subsidiaries31.1
    
    Certification of Chief Executive Officer Pursuant to Rule 15d-15(e)
of the securities Exchange Act.31.2
    
    Certification of Chief Financial Officer Pursuant to Rule 15d-15(e)
of the securities Exchange Act.32
    
    Certification Pursuant to Rule 14d-14(b) of the Securities Exchange
Act and 18 U.S.C. section 1350