WHITTIER, Calif., Feb. 6, 2015 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the "bank") (OTCBB:FHLB) reported results for the fourth quarter of 2014.
For the twelve month period ending December 31, 2014, the bank reported a profit of $2.3 million or $1.39 per diluted share of common stock which includes a tax benefit in the amount of $860,000. The tax benefit results from a reduction in the bank's deferred tax valuation allowance as it is more likely than not that the bank will utilize the benefit in the future. In addition, the bank recovered over $1 million in loan principal that had been previously charged-off. As a result, the bank released $850,000 in loan loss reserves. The bank reported a profit of $372,000 or $0.23 per diluted share of common stock for the twelve months ended December 31, 2013.
As of December 31, 2014, the bank reported total assets of $119.9 million, an 11% increase from $107.9 million as of December 31, 2013. The bank's loan portfolio, net of unearned income, increased 6% from $57.6 million as of December 31, 2013, to $60.9 million as of December 31, 2014. The portfolio remains diversified with $30.4 million or 50% in Commercial & Industrial Loans to local businesses (including $20.3 million in Owner Occupied Commercial Real Estate Loans), $15.2 million or 25% in Residential Real Estate Loans to investors and $8.3 million or 14% in Commercial Real Estate Loans to investors. The bank has an additional $20.3 million in unfunded loan commitments.
The bank's overall deposit base has increased 11% in the twelve months ended December 31, 2014, from $86.3 million as of December 31, 2013, to $95.6 million as of December 31, 2014. Non-interest bearing deposits continue to form a substantial part of the deposit base (41%), growing from $37.4 million to $39.2 million as of December 31, 2014. During the same time period interest-bearing deposits increased from $48.9 million to $56.3 million on December 31, 2014. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At December 31, 2014, shareholders' equity was $15.2 million or $9.39 book value per share. The bank's total risk-based capital ratio was 19%, 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.
"We have been able to recognize some milestones this past year which have had a positive impact on the net earnings of the company," commented Jeffrey K. Ball, Chief Executive Officer. "These milestones represent improvements in asset quality, double digit asset growth and the overall development of the bank. When coupled with a consistent base of core earnings the end result is a 22% increase in overall book value and book value per share since the end of 2013. Although the market continues to present significant challenges in the areas of quality loan generation and narrowing interest rate margins, we feel the company is well positioned in terms of capital and liquidity to support continued growth with a focus on the enhancement of long-term shareholder value."
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 and a loan production office in Irvine, 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) | ||
|
12/31/14 |
12/31/13 |
|
| ASSETS | ||
| Cash and due from banks | $ 4,912 | $ 3,217 |
| Interest bearing deposits with other financial institutions | 5,617 | 5,893 |
| Cash and Cash Equivalents | 10,529 | 9,110 |
| Investment securities available-for-sale | 43,829 | 37,750 |
| Federal Home Loan Bank stock | 677 | 646 |
| Federal Reserve Bank stock | 393 | 0 |
| Loans, net of unearned income | 60,868 | 57,635 |
| Allowance for loan losses | (1,595) | (1,457) |
| Net Loans | 59,273 | 56,178 |
| Premises and equipment, net | 362 | 561 |
| Accrued interest receivable and other assets | 4,840 | 3,667 |
| Total Assets | $ 119,903 | $ 107,912 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Liabilities | ||
| Deposits | ||
| Noninterest-bearing deposits | $ 39,222 | $ 37,436 |
| Interest-bearing deposits | 56,337 | 48,911 |
| Total Deposits | 95,559 | 86,347 |
| FHLB advances | 8,750 | 8,750 |
| Accrued interest payable and other liabilities | 422 | 333 |
| Total Liabilities | 104,731 | 95,430 |
| Shareholders' Equity | ||
| Common stock, no par value, 10,000,000 shares authorized: 1,616,000 shares issued and outstanding | 15,958 | 15,958 |
| Additional paid-in-capital | 1,091 | 1,090 |
| Accumulated deficit | (2,045) | (4,295) |
| Accumulated other comprehensive income (loss) | 168 | (271) |
| Total Shareholders' Equity | 15,172 | 12,482 |
| Total Liabilities and Shareholders' Equity | $ 119,903 | $ 107,912 |
| Book Value Per Share | $ 9.39 | $ 7.72 |
| Friendly Hills Bank | ||
| Statements of Operations (Unaudited) | ||
| (in thousands, except per share information) | ||
|
For the twelve months ended |
For the twelve months ended |
|
| 12/31/14 | 12/31/13 | |
| Interest Income | $ 4,161 | $ 3,806 |
| Interest Expense | 361 | 422 |
| Net Interest Income | 3,800 | 3,384 |
| Provision for Credit Losses (Benefit) | (850) | 99 |
| Net Interest Income after Provision for Loan Losses (Benefit) | 4,650 | 3,285 |
| Other Income | 487 | 303 |
| Operating Expenses | 3,872 | 3,525 |
| Gain on Investment Securities & Hedging Contracts | 125 | 310 |
| Earnings before Provision for Income Taxes | 1,390 | 373 |
| Income Tax Benefit (Expense) | 860 | (1) |
| Net Earnings | $ 2,250 | $ 372 |
| Basic and Diluted Earnings Per Share | $ 1.39 | $ 0.23 |