WHITTIER, Calif., March 04, 2016 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the fourth quarter of 2015. The bank also announced that the Board of Directors has approved a 20% stock dividend. The dividend is issuable on or about April 8, 2016, to shareholders of record as of March 18, 2016. The dividend will increase the number of outstanding shares of the Company by approximately 323,200 shares bringing the total shares outstanding to approximately 1,939,200 shares.
For the twelve month period ending December 31, 2015, the bank reported net income of $394,000 or $0.20 per diluted share of common stock. This figure includes a $23,000 increase in the value of the interest rate caps and a $44,000 gain on other real estate owned. The bank reported net income of $2.3 million or $1.16 per diluted share of common stock for the twelve months ended December 31, 2014. This figure includes an $860,000 tax credit, an $850,000 negative provision for loan loss, a $71,000 increase in the value of the interest rate caps and a $54,000 net gain on securities sold.
As of December 31, 2015, the bank reported total assets of $125.6 million, a 5% increase from $119.9 million as of December 31, 2014. The bank’s loan portfolio, net of unearned income, increased 12% from $60.9 million as of December 31, 2014, to $67.9 million as of December 31, 2015. The portfolio remains diversified with $33.2 million or 49% in Commercial & Industrial Loans to local businesses (including $19.2 million in Owner Occupied Commercial Real Estate Loans), $17.5 million or 26% in Residential Real Estate Loans to investors and $10.1 million or 15% in Commercial Real Estate Loans to investors. The bank has an additional $17.9 million in unfunded loan commitments.
The bank’s overall deposit base has increased 1% in the twelve months ended December 31, 2015, from $95.6 million as of December 31, 2014, to $96.9 million as of December 31, 2015. Non-interest bearing deposits continue to form a substantial part of the deposit base (44%), growing from $39.2 million to $42.5 million as of December 31, 2015. During the same time period, interest-bearing deposits decreased from $56.3 million to $54.4 million on December 31, 2015. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At December 31, 2015, shareholders’ equity was $15.2 million and the bank’s total risk-based capital ratio was 18%, significantly exceeding the “well-capitalized” level of 10% prescribed under regulatory requirements. The bank also continues to maintain substantial liquidity positions, retaining significant balances of liquidity as well as available collateralized borrowings and other potential sources of liquidity.
“The bank’s Net Interest Margin continues to be negatively impacted by a highly competitive loan market,” commented Jeffrey K. Ball, Chief Executive Officer. “While this has had an impact on the overall yield of our asset base we have maintained consistency in our underwriting standards despite competitive pressures in the markets we serve. We are proud of the work our team has done in loan and deposit generation while maintaining asset quality and a strong base of core deposits. The integration of our payroll services product provides an opportunity to diversify our sources of revenue during this period of declining asset yields. As our original investors approach the ten year anniversary of their initial investment in the bank, the board has approved a 20% stock dividend in recognition of our many loyal and dedicated shareholders.”
Company Profile:
Friendly Hills Bank is a community bank which was formed to primarily serve the Southern California communities of eastern Los Angeles County and northern Orange County. The bank was established in 2006 by prominent members of the local community who were seeking an alternative to the larger financial institutions in the area. The bank is headquartered in Whittier, California with an additional branch office in Santa Fe Springs, California. For more information on the bank, please visit www.friendlyhillsbank.com or call 562-947-1920.
Forward Looking Statements:
The numbers in this press release are unaudited. Statements such as those regarding the anticipated development and expansion of Friendly Hills Bank's business, and the intent, belief or current expectations of the bank, its directors or its officers, are "forward looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the bank's performance, including its ability to generate loan and deposit growth, changes in interest rates, and regulatory matters.
| Friendly Hills Bank | |||||||||||
| Balance Sheets (Unaudited) | |||||||||||
| (in thousands, except per share information) | |||||||||||
| 12/31/15 | 12/31/14 | ||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 3,904 | $ | 4,912 | |||||||
| Interest bearing deposits with other financial institutions | 4,529 | 5,617 | |||||||||
| Cash and Cash Equivalents | 8,433 | 10,529 | |||||||||
| Investment securities available-for-sale | 43,312 | 43,829 | |||||||||
| Federal Home Loan Bank stock Federal Reserve Bank stock | 753 455 | 677 393 | |||||||||
| Loans, net of unearned income | 67,876 | 60,868 | |||||||||
| Allowance for loan losses | (1,595 | ) | (1,595 | ) | |||||||
| Net Loans | 66,281 | 59,273 | |||||||||
| Premises and equipment, net | 211 | 362 | |||||||||
| Accrued interest receivable and other assets | 6,134 | 4,840 | |||||||||
| Total Assets | $ | 125,579 | $ | 119,903 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
| Deposits | |||||||||||
| Noninterest-bearing deposits | $ | 42,531 | $ | 39,222 | |||||||
| Interest-bearing deposits | 54,354 | 56,337 | |||||||||
| Total Deposits | 96,885 | 95,559 | |||||||||
| FHLB advances | 13,000 | 8,750 | |||||||||
| Accrued interest payable and other liabilities | 452 | 422 | |||||||||
| Total Liabilities | 110,337 | 104,731 | |||||||||
| Shareholders’ Equity | |||||||||||
| Common stock, no par value, 10,000,000 shares authorized: 1,939,200 shares issued and outstanding | 15,958 | 15,958 | |||||||||
| Additional paid-in-capital | 1,091 | 1,091 | |||||||||
| Accumulated deficit | (1,651 | ) | (2,045 | ) | |||||||
| Accumulated other comprehensive income (loss) | (156 | ) | 168 | ||||||||
| Total Shareholders’ Equity | 15,242 | 15,172 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 125,579 | $ | 119,903 | |||||||
| Book Value Per Share | $ | 7.86 | $ | 7.82 | |||||||
| Friendly Hills Bank | |||||||||
| Statements of Operations (Unaudited) | |||||||||
| (in thousands, except per share information) | |||||||||
| For the twelve | For the twelve | ||||||||
| months ended | months ended | ||||||||
| 12/31/15 | 12/31/14 | ||||||||
| Interest Income | $ | 4,396 | $ | 4,161 | |||||
| Interest Expense | 305 | 361 | |||||||
| Net Interest Income | 4,091 | 3,800 | |||||||
| Provision for Loan Losses | 0 | (850 | ) | ||||||
| Net Interest Income after Provision for Loan Losses | 4,091 | 4,650 | |||||||
| Noninterest Income | 459 | 487 | |||||||
| Noninterest Expense | 3,998 | 3,872 | |||||||
| Non-Recurring Items | 67 | 125 | |||||||
| Income before Provision for Income Taxes | 619 | 1,390 | |||||||
| (Provision) Benefit for Income Taxes | (225 | ) | 860 | ||||||
| Net Income | $ | 394 | $ | 2,250 | |||||
| Basic and Diluted Earnings Per Share | $ | 0.20 | $ | 1.16 | |||||