WHITTIER, Calif., May 04, 2016 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the first quarter of 2016.
For the three month period ending March 31, 2016, the bank reported net income of $80,000 or $0.04 per diluted share of common stock. The bank reported net income of $65,000 or $0.03 per diluted share of common stock for the three months ended March 31, 2015. This figure includes a $13,000 increase in the value of the interest rate caps and a $31,000 net gain on securities sold.
As of March 31, 2016, the bank reported total assets of $127.0 million, an 8% increase from $117.0 million as of March 31, 2015. The bank’s loan portfolio, net of unearned income, increased 7% from $64.9 million as of March 31, 2015, to $69.4 million as of March 31, 2015. The portfolio remains diversified with $33.1 million or 48% in Commercial & Industrial Loans to local businesses (including $19.6 million in Owner Occupied Commercial Real Estate Loans), $17.5 million or 25% in Residential Real Estate Loans to investors and $12.7 million or 18% in Commercial Real Estate Loans to investors. The bank has an additional $23.7 million in unfunded loan commitments.
The bank’s overall deposit base has increased 12% in the twelve months ended March 31, 2016, from $89.5 million as of March 31, 2015, to $100.0 million as of March 31, 2016. Non-interest bearing deposits continue to form a substantial part of the deposit base (46%), growing from $38.7 million to $46.0 million as of March 31, 2016. During the same time period interest-bearing deposits increased from $50.8 million to $54.0 million on March 31, 2016. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At March 31, 2016, shareholders’ equity was $15.5 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 selectively grow its loan portfolio in the midst of a highly competitive market,” commented Jeffrey K. Ball, Chief Executive Officer. “While market conditions suggest lower underwriting standards by many lenders we remain committed to the standards which have preserved the strong capital position of the bank. This is consistent with our strategic focus on long term shareholder value and reflects our continued concern about the instability of the overall economy. Asset quality remains strong and the bank is well positioned for future growth opportunities including the development of our payroll services product which provides for more diversification of revenue sources during this sustained period of low interest rates.”
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) | |||||||||||||
3/31/16 | 12/31/15 | 3/31/15 | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 3,645 | $ | 3,904 | $ | 3,598 | |||||||
| Interest bearing deposits with other financial institutions | 5,802 | 4,529 | 4,966 | ||||||||||
| Cash and Cash Equivalents | 9,447 | 8,433 | 8,564 | ||||||||||
| Investment securities available-for-sale | 42,226 | 43,312 | 37,961 | ||||||||||
| Federal Home Loan Bank stock | 753 | 753 | 677 | ||||||||||
| Federal Reserve Bank stock | 457 | 455 | 393 | ||||||||||
| Loans, net of unearned income | 69,393 | 67,876 | 64,919 | ||||||||||
| Allowance for loan losses | (1,595 | ) | (1,595 | ) | (1,595 | ) | |||||||
| Net Loans | 67,798 | 66,281 | 63,324 | ||||||||||
| Premises and equipment, net | 205 | 211 | 322 | ||||||||||
| Accrued interest receivable and other assets | 6,068 | 6,134 | 5,775 | ||||||||||
| Total Assets | $ | 126,954 | $ | 125,579 | $ | 117,016 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Liabilities | |||||||||||||
| Deposits | |||||||||||||
| Noninterest-bearing deposits | $ | 46,022 | $ | 42,531 | $ | 38,731 | |||||||
| Interest-bearing deposits | 53,970 | 54,354 | 50,814 | ||||||||||
| Total Deposits | 99,992 | 96,885 | 89,545 | ||||||||||
| FHLB advances | 11,000 | 13,000 | 11,750 | ||||||||||
| Accrued interest payable and other liabilities | 474 | 452 | 397 | ||||||||||
| Total Liabilities | 111,466 | 110,337 | 101,692 | ||||||||||
| 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 | (1,571 | ) | (1,651 | ) | (1,980 | ) | |||||||
| Accumulated other comprehensive income (loss) | 10 | (156 | ) | 255 | |||||||||
| Total Shareholders’ Equity | 15,488 | 15,242 | 15,324 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 126,954 | $ | 125,579 | $ | 117,016 | |||||||
| Book Value Per Share | $ | 7.99 | $ | 7.86 | $ | 7.90 | |||||||
| Friendly Hills Bank | |||||||||
| Statements of Operations (Unaudited) | |||||||||
| (in thousands, except per share information) | |||||||||
| For the three | For the three | ||||||||
| months ended | months ended | ||||||||
| 3/31/16 | 3/31/15 | ||||||||
| Interest Income | $ | 1,091 | $ | 1,041 | |||||
| Interest Expense | 74 | 82 | |||||||
| Net Interest Income | 1,017 | 959 | |||||||
| Provision for Loan Losses | 0 | 0 | |||||||
| Net Interest Income after Provision for Loan Losses | 1,017 | 959 | |||||||
| Noninterest Income | 119 | 66 | |||||||
| Noninterest Expense | 1,012 | 973 | |||||||
| Non-Recurring Items | 0 | 44 | |||||||
| Income before Provision for Income Taxes | 124 | 96 | |||||||
| (Provision) Benefit for Income Taxes | (44 | ) | (31 | ) | |||||
| Net Income | $ | 80 | $ | 65 | |||||
| Basic and Diluted Earnings Per Share | $ | 0.04 | $ | 0.03 | |||||