WHITTIER, Calif., Nov. 16, 2016 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the third quarter of 2016.
For the nine month period ending September 30, 2016, the bank reported net income of $328,000 or $0.17 per diluted share of common stock. This figure includes a $36,000 net gain on securities sold. The bank reported net income of $297,000 or $0.15 per diluted share of common stock for the nine months ended September 30, 2015. This figure includes a $22,000 increase in the value of the interest rate caps, a $31,000 net gain on securities sold, and a $43,000 gain on other real estate owned.
As of September 30, 2016, the bank reported total assets of $142.6 million, a 10% increase from $129.6 million as of September 30, 2015. The bank’s loan portfolio, net of unearned income, increased 15% from $68.8 million as of September 30, 2015, to $79.0 million as of September 30, 2016. The portfolio remains diversified with $30.8 million or 39% in Commercial & Industrial Loans to local businesses (including $20.0 million in Owner Occupied Commercial Real Estate Loans), $22.1 million or 28% in Commercial Real Estate Loans to investors and $18.5 million or 23% in Residential Real Estate Loans to investors. The bank has an additional $22.7 million in unfunded loan commitments.
The bank’s overall deposit base has increased 17% in the twelve months ended September 30, 2016, from $98.6 million as of September 30, 2015, to $115.1 million as of September 30, 2016. Non-interest bearing deposits continue to form a substantial part of the deposit base (42%), growing from $44.1 million to $48.1 million as of September 30, 2016. During the same time period interest-bearing deposits increased from $54.5 million to $67.0 million on September 30, 2016. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At September 30, 2016, shareholders’ equity was $15.9 million and the bank’s total risk-based capital ratio was 17%, 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 continues to experience strong growth in all facets of our business while maintaining a strong balance sheet,” commented Jeffrey K. Ball, Chief Executive Officer. “We are particularly pleased to report significant growth in the bank’s loan portfolio which we have been able to achieve while maintaining our rigorous underwriting standards. Those standards are essential in recognizing the continued uncertainty of market conditions including the sustainability of a low interest rate environment. Meanwhile our deposit base continues to grow providing core funding for our lending platform while we are encouraged by the progress in our Payroll Processing business. That business line is designed to enhance fee income through what we anticipate will be a sustained period of contracting loan yields as the market continues to see growth in non-bank lenders.”
The bank is also proud to announce that Jeffrey K. Ball, Chief Executive Officer, was recently elected to serve on the Board of Directors of the American Bankers Association in Washington, D.C. Mr. Ball currently serves as Vice Chairman of the national association’s Government Relations Council and previously served as Chairman of the California Bankers Association.
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) | |||||||||||||
| 9/30/16 | 12/31/15 | 9/30/15 | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 4,026 | $ | 3,904 | $ | 5,363 | |||||||
| Interest bearing deposits with other financial institutions | 22,993 | 4,529 | 4,156 | ||||||||||
| Cash and Cash Equivalents | 27,019 | 8,433 | 9,519 | ||||||||||
| Investment securities available-for-sale | 30,624 | 43,312 | 45,252 | ||||||||||
| Federal Home Loan Bank stock | 779 | 753 | 753 | ||||||||||
| Federal Reserve Bank stock | 457 | 455 | 455 | ||||||||||
| Loans, net of unearned income | 79,019 | 67,876 | 68,841 | ||||||||||
| Allowance for loan losses | (1,525 | ) | (1,595 | ) | (1,595 | ) | |||||||
| Net Loans | 77,494 | 66,281 | 67,246 | ||||||||||
| Premises and equipment, net | 229 | 211 | 248 | ||||||||||
| Accrued interest receivable and other assets | 6,017 | 6,134 | 6,149 | ||||||||||
| Total Assets | $ | 142,619 | $ | 125,579 | $ | 129,622 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Liabilities | |||||||||||||
| Deposits | |||||||||||||
| Noninterest-bearing deposits | $ | 48,055 | $ | 42,531 | $ | 44,103 | |||||||
| Interest-bearing deposits | 67,047 | 54,354 | 54,541 | ||||||||||
| Total Deposits | 115,102 | 96,885 | 98,644 | ||||||||||
| FHLB advances | 11,000 | 13,000 | 15,000 | ||||||||||
| Accrued interest payable and other liabilities | 657 | 452 | 580 | ||||||||||
| Total Liabilities | 126,759 | 110,337 | 114,224 | ||||||||||
| Shareholders’ Equity | |||||||||||||
| Common stock, no par value, 10,000,000 shares authorized: | |||||||||||||
| 1,939,193 shares issued and outstanding | 15,958 | 15,958 | 15,958 | ||||||||||
| Additional paid-in-capital | 1,091 | 1,091 | 1,091 | ||||||||||
| Accumulated deficit | (1,323 | ) | (1,651 | ) | (1,748 | ) | |||||||
| Accumulated other comprehensive income (loss) | 134 | (156 | ) | 97 | |||||||||
| Total Shareholders’ Equity | 15,860 | 15,242 | 15,398 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 142,619 | $ | 125,579 | $ | 129,622 | |||||||
| Book Per Share | $ | 8.18 | $ | 7.86 | $ | 7.94 | |||||||
| Friendly Hills Bank | ||||||||||||
| Statements of Operations (Unaudited) | ||||||||||||
| (in thousands, except per share information) | ||||||||||||
| For the nine | For the nine | |||||||||||
| months ended | months ended | |||||||||||
| 9/30/16 | 9/30/15 | |||||||||||
| Interest Income | $ | 3,360 | $ | 3,260 | ||||||||
| Interest Expense | (234 | ) | 231 | |||||||||
| Net Interest Income | 3,126 | 3,029 | ||||||||||
| Provision for Loan Losses | 0 | 0 | ||||||||||
| Net Interest Income after Provision for Loan Losses | 3,126 | 3,029 | ||||||||||
| Noninterest Income | 335 | 338 | ||||||||||
| Noninterest Expense | (2,976 | ) | (2,997 | ) | ||||||||
| Non-Recurring Items | 36 | 96 | ||||||||||
| Income before Provision for Income Taxes | 521 | 466 | ||||||||||
| (Provision) Benefit for Income Taxes | (193 | ) | (169 | ) | ||||||||
| Net Income | $ | 328 | $ | 297 | ||||||||
| Basic and Diluted Earnings Per Share | $ | 0.17 | $ | 0.15 | ||||||||