##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2010
 Commission File Number 000-52584
 BIRMINGHAM BLOOMFIELD BANCSHARES, INC.
 
 Michigan
    
    20-1132959(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 33583 Woodward Avenue, Birmingham, MI 48009
 
 (248) 723-7200
  þ o
  o o
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company þ
  o þ




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##### 



INDEX
 PART I  FINANCIAL INFORMATION
    
    
    3ITEM 1. FINANCIAL STATEMENTS
    
    
    3ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    15ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    22ITEM 4T. CONTROLS AND PROCEDURES
    
    
    23PART II. OTHER INFORMATION
    
    
    24ITEM 1. LEGAL PROCEEDINGS
    
    
    24ITEM 1A. RISK FACTORS
    
    
    24ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    
    
    24ITEM 3. DEFAULTS UPON SENIOR SECURITIES
    
    
    24ITEM 4. [RESERVED]
    
    
    24ITEM 5. OTHER INFORMATION
    
    
    24ITEM 6. EXHIBITS
    
    
    25EX-31.1EX-31.2EX-32.1
  2




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 BIRMINGHAM BLOOMFIELD BANCSHARES, INC
CONSOLIDATED BALANCE SHEETS
 March 31,
    
    
    December 31,2010
    
    
    2009(unaudited)AssetsCash and cash equivalentsCash
    
    $
    5,283,928
    
    
    $
    4,644,416Federal funds sold
    
    
    2,238,858
    
    
    
    3,113,785Total cash and cash equivalents
    
    
    7,522,786
    
    
    
    7,758,201Securities, (Note 3)
    
    
    3,796,028
    
    
    
    3,835,082Net Loans (Note 4)
    
    
    84,898,147
    
    
    
    78,482,031Premises & equipment (Note 6)
    
    
    1,444,071
    
    
    
    1,488,689Interest receivable and other assets
    
    
    1,148,941
    
    
    
    1,072,770Total assets
    
    $
    98,809,973
    
    
    $
    92,636,773Liabilities and Shareholders EquityDeposits (Note 5)Non-interest bearing
    
    $
    9,320,275
    
    
    $
    8,494,903Interest bearing
    
    
    78,412,227
    
    
    
    72,970,583Total deposits
    
    
    87,732,502
    
    
    
    81,465,486Interest payable and other liabilities
    
    
    359,774
    
    
    
    443,354Total liabilities
    
    
    88,092,276
    
    
    
    81,908,840Shareholders equitySenior cumulative perpetual preferred stock series A
$1,000 liquidation value per share, 5%Authorized, issued and outstanding  1,635 shares
    
    
    1,635,000
    
    
    
    1,635,000Discount on senior preferred stock series A
    
    
    (74,827
    )
    
    
    (79,427
    )Warrant cumulative perpetual preferred stock series B
$1,000 liquidation value per share, 9%Authorized, issued and outstanding  82 shares
    
    
    82,000
    
    
    
    82,000Premium on warrant preferred stock series B
    
    
    8,134
    
    
    
    8,634Senior cumulative perpetual preferred stock series C
$1,000 liquidation value per share, 5%Authorized, issued and outstanding  1,744 shares
    
    
    1,744,000
    
    
    
    1,744,000Common stock, no par valueAuthorized  4,500,000 sharesIssued and outstanding  1,800,000 shares
    
    
    17,034,330
    
    
    
    17,034,330Additional paid in capital  share based payments
    
    
    493,154
    
    
    
    489,459Accumulated deficit
    
    
    (10,317,548
    )
    
    
    (10,299,436
    )Accumulated other comprehensive income
    
    
    113,454
    
    
    
    113,373Total shareholders equity
    
    
    10,717,697
    
    
    
    10,727,933Total liabilities and shareholders equity
    
    $
    98,809,973
    
    
    $
    92,636,773
  3




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
 For the Three Months EndedMarch 31,2010
    
    
    2009Interest IncomeLoans, including fees
    
    $
    1,242,148
    
    
    $
    842,821Taxable securities
    
    
    34,698
    
    
    
    37,406Federal funds sold
    
    
    729
    
    
    
    891Correspondent bank
    
    
    5,605
    
    
    
    1,340Total interest income
    
    
    1,283,180
    
    
    
    882,458Interest expenseDeposits
    
    
    324,246
    
    
    
    339,591Total interest expense
    
    
    324,246
    
    
    
    339,591Net interest income
    
    
    958,934
    
    
    
    542,867Provision for loan losses
    
    
    112,405
    
    
    
    33,500Net interest income after
provision for loan losses
    
    
    846,529
    
    
    
    509,367Non-interest incomeLoan fees and charges
    
    
    8,415
    
    
    
    3,180Deposit fees and charges
    
    
    20,268
    
    
    
    17,711Other income
    
    
    6,753
    
    
    
    4,812Total non-interest income
    
    
    35,436
    
    
    
    25,703Non-interest expenseSalaries and benefits
    
    
    419,045
    
    
    
    371,328Occupancy & equipment expense
    
    
    154,211
    
    
    
    213,467FAS 123R share based payments
    
    
    3,695
    
    
    
    6,650Data processing expense
    
    
    55,550
    
    
    
    53,896Advertising and public relations
    
    
    5,279
    
    
    
    34,132Professional fees
    
    
    79,712
    
    
    
    80,519Printing and office supplies
    
    
    5,951
    
    
    
    9,018Other expense
    
    
    129,183
    
    
    
    79,011Total non-interest expense
    
    
    852,626
    
    
    
    848,021Net earnings before taxes
    
    
    29,339
    
    
    
    (312,951
    )Income taxes
    
    
    
    
    
    
    Net income (loss)
    
    $
    29,339
    
    
    $
    (312,951
    )Dividend on senior preferred stock
    
    
    (43,351
    )
    
    
    Accretion of discount on preferred stock
    
    
    (4,100
    )
    
    
    Effective dividend on preferred stock
    
    
    (47,451
    )
    
    
    Net loss applicable to common
shareholders
    
    $
    (18,112
    )
    
    $
    (312,951
    )Basic loss per share
    
    $
    (0.01
    )
    
    $
    (0.17
    )Diluted loss per share
    
    $
    (0.01
    )
    
    $
    (0.17
    )
  4




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
January 1, 2010 to March 31, 2010
(Unaudited)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon
    
    
    Paid in
    
    
    Accumulated
    
    
    ComprehensivePreferred Stock
    
    
    Stock
    
    
    Capital
    
    
    Deficit
    
    
    Income
    
    
    TotalBalance at December 31, 2009
    
    $
    3,390,207
    
    
    $
    17,034,330
    
    
    $
    489,459
    
    
    $
    (10,299,436
    )
    
    $
    113,373
    
    
    $
    10,727,933Amortization of senior pref stock A
    
    
    4,600
    
    
    
    
    
    
    
    
    
    
    
    (4,600
    )
    
    
    
    
    
    
    Accretion of warrant pref stock B
    
    
    (500
    )
    
    
    
    
    
    
    
    
    
    
    500
    
    
    
    
    
    
    
    Preferred dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (43,351
    )
    
    
    
    
    
    
    (43,351
    )Share based payments expense
    
    
    
    
    
    
    
    
    
    
    3,695
    
    
    
    
    
    
    
    
    
    
    
    3,695Comprehensive income:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,339
    
    
    
    
    
    
    
    29,339Unrealized gain on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    81
    
    
    
    81Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,420Balance at March 31,2010
    
    $
    3,394,307
    
    
    $
    17,034,330
    
    
    $
    493,154
    
    
    $
    (10,317,548
    )
    
    $
    113,454
    
    
    $
    10,717,697
  5




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 For the Three Months Ended March 31,2010
    
    
    2009Cash flows from operating activitiesNet income (loss)
    
    $
    29,339
    
    
    $
    (312,951
    )Share based payments expense
    
    
    3,695
    
    
    
    6,650Provision for loan losses
    
    
    112,405
    
    
    
    33,500Accretion of securities
    
    
    (2,018
    )
    
    
    (1,005
    )Gain on sales or calls of securities
    
    
    
    
    
    
    (1,152
    )Depreciation expense
    
    
    44,618
    
    
    
    75,225Net (increase) decrease in other assets
    
    
    (76,171
    )
    
    
    30,552Net decrease in other liabilities
    
    
    (83,580
    )
    
    
    (35,026
    )Net cash provided by (used in) operating activities
    
    
    28,288
    
    
    
    (204,207
    )Cash flows from investing activitiesIncrease in loans
    
    
    (6,528,521
    )
    
    
    (2,630,632
    )Purchase of securities
    
    
    (352,546
    )
    
    
    (790,000
    )Proceeds from sales, calls or maturities of securities
    
    
    393,699
    
    
    
    1,045,036Purchases of premises and equipment
    
    
    
    
    
    
    (11,765
    )Net cash used in investing activities
    
    
    (6,487,368
    )
    
    
    (2,387,361
    )Cash flows from financing activitiesIncrease in deposits
    
    
    6,267,016
    
    
    
    6,078,333Dividend on senior preferred stock
    
    
    (43,351
    )
    
    
    Net cash provided by financing activities
    
    
    6,223,665
    
    
    
    6,078,333(Decrease) increase in cash and cash equivalents
    
    
    (235,415
    )
    
    
    3,486,765Cash and cash equivalents at the
beginning of the period
    
    
    7,758,201
    
    
    
    4,663,497Cash and cash equivalents at the
end of the period
    
    $
    7,522,786
    
    
    $
    8,150,262Supplemental cash flow information:Cash paid for interest:
    
    $
    316,907
    
    
    $
    364,318
  6




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 1  Summary of Significant Accounting Policies
 Basis of Statement Presentation
    Principles of Consolidation
  Recent Accounting Developments
 Accounting Standards Update (ASU) No. 2009-16, Transfers and Servicing (Topic 860)  Accounting
for Transfers of Financial Assets.
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BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 2  Fair Value Accounting
 Valuation Hierarchy
  
    
    Level 1  inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active markets which the Corporation can participate.
    
    Level 2  inputs to the valuation methodology include quoted prices for similar assets
and liabilities in active markets, and inputs that are observable for the asset or
liability, either directly or indirectly, for substantially the full term of the financial
instrument.
    
    Level 3  inputs to the valuation methodology are unobservable and significant to the
fair value measurement, and include inputs that are available in situations where there is
little, if any, market activity for the related asset or liability.
   Assets
 Securities available for sale
    Quoted Prices in
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Significantfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    Inputs
    
    
    Balance atLevel 1
    
    
    Level 2
    
    
    Level 3
    
    
    March 31, 2010Securities available for sale
    
    $
    
    
    
    $
    3,634
    
    
    $
    
    
    
    $
    3,634
 8




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 2  Fair Value Accounting  continued
  Quoted Prices in
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Significant
    
    
    Change in fairfor Identical
    
    
    Observable
    
    
    Unobservable
    
    
    value for theAssets
    
    
    Inputs
    
    
    Inputs
    
    
    quarter endedLevel 1
    
    
    Level 2
    
    
    Level 3
    
    
    March 31, 2010Impaired Loans
    
    $
    
    
    
    $
    
    
    
    $
    200
    
    
    $
    0
 Note 3  Securities
  Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    fairMarch 31, 2010
    
    cost
    
    
    gains
    
    
    losses
    
    
    valueU.S. Government agency securities
    
    $
    2,354
    
    
    $
    13
    
    
    $
    
    
    
    $
    2,367Municipal securities
    
    
    200
    
    
    
    4
    
    
    
    
    
    
    
    204Mortgage backed securities
    
    
    967
    
    
    
    96
    
    
    
    
    
    
    
    1,063Corporate bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Sub-Total Available for Sale
    
    $
    3,521
    
    
    $
    113
    
    
    $
    
    
    
    $
    3,634FHLB Stock
    
    
    162
    
    
    
    
    
    
    
    
    
    
    
    162Total
    
    $
    3,683
    
    
    $
    113
    
    
    $
    
    
    
    $
    3,796
 Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    fairDecember 31, 2009
    
    cost
    
    
    gains
    
    
    losses
    
    
    valueU.S. Government agency securities
    
    $
    2,342
    
    
    $
    18
    
    
    $
    
    
    
    $
    2,360Municipal securities
    
    
    200
    
    
    
    4
    
    
    
    
    
    
    
    204Mortgage backed securities
    
    
    1,018
    
    
    
    91
    
    
    
    
    
    
    
    1,109Corporate bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Sub-Total Available for Sale
    
    $
    3,560
    
    
    $
    113
    
    
    $
    
    
    
    $
    3,673FHLB Stock
    
    
    162
    
    
    
    
    
    
    
    
    
    
    
    162Total
    
    $
    3,722
    
    
    $
    113
    
    
    $
    
    
    
    $
    3,835
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BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 3
 Securities  continued
   EstimatedAmortized
    
    
    faircost
    
    
    valueDue in one year or less
    
    $
    
    
    
    $
    Due in one year through five years
    
    
    2,554
    
    
    
    2,571Due in five years through ten years
    
    
    
    
    
    
    Due after ten years
    
    
    
    
    
    
    Subtotal
    
    
    2,554
    
    
    
    2,571Mortgage backed securities
    
    
    967
    
    
    
    1,063FHLB Stock
    
    
    162
    
    
    
    162Total Available for sale securities
    
    $
    3,683
    
    
    $
    3,796
 Note 4  Loans
  March 31,
    
    
    December 31,2010
    
    
    2009(unaudited)Mortgage loans on real estate:Residential 1 to 4 family
    
    $
    2,480
    
    
    $
    1,353Multifamily
    
    
    12,573
    
    
    
    12,647Commercial
    
    
    39,588
    
    
    
    35,917Construction
    
    
    2,134
    
    
    
    518Second mortgage
    
    
    169
    
    
    
    171Equity lines of credit
    
    
    12,269
    
    
    
    11,445Total mortgage loans on real estate
    
    
    69,213
    
    
    
    62,051Commercial loans
    
    
    16,684
    
    
    
    17,186Consumer installment loans
    
    
    400
    
    
    
    512Total loans
    
    
    86,297
    
    
    
    79,749Less:Allowance for loan losses
    
    
    1,255
    
    
    
    1,174Net deferred loan fees
    
    
    144
    
    
    
    93Net loans
    
    $
    84,898
    
    
    $
    78,482
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BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 4  Loans  continued
  Three months endedMarch 31,(unaudited)
    
    2010
    
    
    2009Balance at beginning of period
    
    $
    1,174
    
    
    $
    710Charge-offs
    
    
    (31
    )
    
    
    Recoveries
    
    
    
    
    
    
    Provision for loan losses
    
    
    112
    
    
    
    33Balance at end of period
    
    $
    1,255
    
    
    $
    743
  Note 5  Deposits
  March 31,
    
    
    December 31,2010
    
    
    2009(unaudited)Non-interest bearing deposits
    
    $
    9,320
    
    
    $
    8,495NOW accounts
    
    
    7,905
    
    
    
    7,894Savings and money market accounts
    
    
    23,472
    
    
    
    19,600Certificates of deposit <$100,000
    
    
    11,158
    
    
    
    13,240Certificates of deposit >$100,000
    
    
    35,877
    
    
    
    32,236Total
    
    $
    87,732
    
    
    $
    81,465
  <$100,000
    
    
    >$100,000
    
    
    TotalWithin 12 months
    
    $
    6,146
    
    
    $
    11,495
    
    
    $
    17,642> 12 months
    
    
    5,012
    
    
    
    24,382
    
    
    
    29,393Total
    
    $
    11,158
    
    
    $
    35,877
    
    
    $
    47,035
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BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 6  Leases and Commitments
   2010
    
    $
    1732011
    
    
    2302012
    
    
    2342013
    
    
    2392014
    
    
    244Thereafter
    
    
    2,976Total
    
    $
    4,096
 Note 7  Fair Value of Financial Instruments
   Cash
and Cash Equivalents
 Securities
 Loans
Receivable
 12




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BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 7  Fair Value of Financial Instruments  continued
 Deposit
Liabilities
 Accrued Interest
 Other Financial Instruments
  March 31, 2010
    
    December 31, 2009Estimated
    
    
    
    
    
    EstimatedCarrying
    
    Fair
    
    Carrying
    
    FairValue
    
    Value
    
    Value
    
    ValueFinancial assets:Cash and cash equivalents
    
    $
    7,523
    
    
    $
    7,523
    
    
    $
    7,758
    
    
    $
    7,758Securities available for
sale
    
    
    3,796
    
    
    
    3,796
    
    
    
    3,835
    
    
    
    3,835Loans
    
    
    84,898
    
    
    
    85,072
    
    
    
    78,482
    
    
    
    78,952Accrued interest
receivable
    
    
    355
    
    
    
    355
    
    
    
    335
    
    
    
    335Financial liabilities:Deposits
    
    
    87,732
    
    
    
    88,066
    
    
    
    81,465
    
    
    
    81,807Accrued interest payable
    
    
    84
    
    
    
    84
    
    
    
    77
    
    
    
    77
 13




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 Note 8  Minimum Regulatory Capital Requirements
   For Capital
    
    To beActual
    
    Adequacy Purposes
    
    Well-CapitalizedAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    RatioAs of March 31, 2010Total risk-based capital
(to risk weighted assets)
Bank of Birmingham
    
    $
    9,601
    
    
    
    11.3
    %
    
    $
    6,804
    
    
    
    8.0
    %
    
    $
    8,505
    
    
    
    10.0
    %Tier I capital
(to risk weighted assets) 
Bank of Birmingham
    
    $
    8,536
    
    
    
    10.0
    %
    
    $
    3,402
    
    
    
    4.0
    %
    
    $
    5,103
    
    
    
    6.0
    %Tier I capital
(to average assets) 
Bank of Birmingham
    
    $
    8,536
    
    
    
    8.8
    %
    
    $
    3,896
    
    
    
    4.0
    %
    
    $
    4,870
    
    
    
    5.0
    %As of December 31, 2009Total risk-based capital
(to risk weighted assets) 
Bank of Birmingham
    
    $
    9,467
    
    
    
    12.0
    %
    
    $
    6,318
    
    
    
    8.0
    %
    
    $
    7,897
    
    
    
    10.0
    %Tier I capital
(to risk weighted assets) 
Bank of Birmingham
    
    $
    8,468
    
    
    
    10.7
    %
    
    $
    3,159
    
    
    
    4.0
    %
    
    $
    4,738
    
    
    
    6.0
    %Tier I capital
(to average assets) 
Bank of Birmingham
    
    $
    8,468
    
    
    
    9.4
    %
    
    $
    3,590
    
    
    
    4.0
    %
    
    $
    4,488
    
    
    
    5.0
    %
 14




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##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
 Disclosure Regarding Forward Looking Statements
   15




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.  Managements Discussion and Analysis of Financial Condition and Results of Operations
 OVERVIEW
   OPERATIONS
   FINANCIAL CONDITION
  16




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.  Managements Discussion and Analysis of Financial Condition and Results of Operations
 Cash and Cash Equivalents
  Investments
  Loans, Credit Quality and Allowance for Loan Losses
      17




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.
Managements Discussion and Analysis of Financial Condition and Results of Operations
   Premises and Equipment
  Deposits
  As of March 31,2010(000s omitted)
    
    Balance
    
    
    PercentageNoninterest bearing demand
    
    $
    9,320
    
    
    
    10.6
    %NOW accounts
    
    
    7,905
    
    
    
    9.0Money market
    
    
    8,803
    
    
    
    10.0Savings
    
    
    14,669
    
    
    
    16.7Time deposits under $100,000
    
    
    11,158
    
    
    
    12.8Time deposits over $100,000
    
    
    35,877
    
    
    
    40.9Total deposits
    
    $
    87,732
    
    
    
    100.0
    %
 18




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.
Managements Discussion and Analysis of Financial Condition and Results of Operations
 RESULTS OF OPERATIONS
Net Interest Income
   Three Months Ended March 31,2010
    
    
    2009Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    
    
    
    
    Yield/
    
    
    Balance
    
    
    
    
    
    
    Yield/(000s)
    
    
    Interest
    
    
    Rate
    
    
    (000s)
    
    
    Interest
    
    
    RateInterest-earning assetsLoans
    
    $
    80,923
    
    
    $
    1,242,148
    
    
    
    6.14
    %
    
    $
    58,414
    
    
    $
    842,821
    
    
    
    5.77
    %Securities
    
    
    3,837
    
    
    
    34,698
    
    
    
    3.62
    %
    
    
    3,378
    
    
    
    37,406
    
    
    
    4.43
    %Federal funds sold
    
    
    2,825
    
    
    
    729
    
    
    
    0.10
    %
    
    
    2,395
    
    
    
    891
    
    
    
    0.15
    %Interest-bearing balance withother financial institutions
    
    
    7,004
    
    
    
    5,605
    
    
    
    0.32
    %
    
    
    2,121
    
    
    
    1,340
    
    
    
    0.25
    %Total interest-earning assets
    
    
    94,589
    
    
    
    1,283,180
    
    
    
    5.43
    %
    
    
    66.308
    
    
    
    882,458
    
    
    
    5.32
    %Cash and due from banks
    
    
    1,598
    
    
    
    
    
    
    
    
    
    
    
    1,971All other assets
    
    
    1,333
    
    
    
    
    
    
    
    
    
    
    
    1,822Total assets
    
    $
    97,520
    
    
    
    
    
    
    
    
    
    
    $
    70,101Interest-bearing liabilitiesNOW accounts
    
    $
    7,912
    
    
    
    10,572
    
    
    
    0.53
    %
    
    $
    7,559
    
    
    
    21,913
    
    
    
    1.16
    %Money market
    
    
    8,137
    
    
    
    13,343
    
    
    
    0.66
    %
    
    
    10,059
    
    
    
    34,532
    
    
    
    1.37
    %Savings
    
    
    13,498
    
    
    
    40,606
    
    
    
    1.20
    %
    
    
    3,793
    
    
    
    16,699
    
    
    
    1.76
    %Time deposits
    
    
    47,248
    
    
    
    259,725
    
    
    
    2.20
    %
    
    
    33,493
    
    
    
    266,447
    
    
    
    3.18
    %Total interest-bearing liabilities
    
    
    76,795
    
    
    
    324,246
    
    
    
    1.69
    %
    
    
    54,904
    
    
    
    339,591
    
    
    
    2.47
    %Non-interest bearing deposits
    
    
    9,554
    
    
    
    
    
    
    
    
    
    
    
    5,782All other liabilities
    
    
    385
    
    
    
    
    
    
    
    
    
    
    
    234Total liabilities
    
    
    86,734
    
    
    
    
    
    
    
    
    
    
    
    60,920Shareholders equity
    
    
    10,786
    
    
    
    
    
    
    
    
    
    
    
    9,181Total liabilities and shareholders
equity
    
    $
    97,520
    
    
    
    
    
    
    
    
    
    
    $
    70,101Net interest income
    
    
    
    
    
    $
    958,934
    
    
    
    
    
    
    
    
    
    
    $
    542,867Net spread
    
    
    
    
    
    
    
    
    
    
    3.74
    %
    
    
    
    
    
    
    
    
    
    
    2.85
    %Net interest margin (1)
    
    
    
    
    
    
    
    
    
    
    4.06
    %
    
    
    
    
    
    
    
    
    
    
    3.27
    %Ratio of interest-earning assets
to interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    123.17
    %
    
    
    
    
    
    
    
    
    
    
    120.77
    %
 
 (1)
    
    Net interest earnings divided by average interest-earning assets. 19




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.  Managements Discussion and Analysis of Financial Condition and Results of Operations
  Provision for Loans Losses
  Non-Interest Income
  Non-Interest Expense
  20




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.  Managements Discussion and Analysis of Financial Condition and Results of Operations
  Income Taxes
  LIQUIDITY AND CAPITAL RESOURCES; ASSET/LIABILITY MANAGEMENT
    21




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.  Managements Discussion and Analysis of Financial Condition and Results of Operations
   Off-Balance Sheet Arrangements
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    22




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##### Table of Contents



BIRMINGHAM BLOOMFIELD BANCSHARES, INC.  Managements Discussion and Analysis of Financial Condition and Results of Operations
  
 ITEM 4T. CONTROLS AND PROCEDURES
     23




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##### Table of Contents



PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS.
  
 ITEM 1A. RISK FACTORS.
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
  
 ITEM 4. [RESERVED].
 
 ITEM 5. OTHER INFORMATION.
  24




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##### Table of Contents



ITEM 6. EXHIBITS.
 Exhibit Number
    
    Description of Exhibit31.1
    
    Rule 13a-14(a) Certification of Chief Executive Officer.31.2
    
    Rule 13a-14(a) Certification of Chief Financial Officer.32.1
    
    Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
 25




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##### Table of Contents



SIGNATURES
  BIRMINGHAM BLOOMFIELD BANCSHARES, INC.Date: May 17, 2010
    By:
    /s/ Robert E. FarrRobert E. FarrChief Executive OfficerDate: May 17, 2010
    By:
    /s/ Deborah A. ThompsonDeborah A. ThompsonChief Financial Officer 26




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description of Exhibit31.1
    
    Certification pursuant to Rules 13a-15(f) and 15d-15(f) of
the Securities Exchange Act31.2
    
    Certification pursuant to Rules 13a-15(f) and 15d-15(f) of
the Securities Exchange Act32.1
    
    Certification pursuant to Rules 13a-14(b) or Rule 15d-14(b)
of the Securities Exchange Act and 18 U.S.C. §1350
 27