WHITTIER, Calif., Aug. 07, 2017 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the second quarter of 2017.
For the six month period ending June 30, 2017, the bank reported net income of $323,000 or $0.17 per diluted share of common stock. The bank reported net income of $206,000 or $0.11 per diluted share of common stock for the six months ended June 30, 2016. This figure includes a $36,000 net gain on securities sold.
As of June 30, 2017, the bank reported total assets of $155.1 million, a 9% increase from $141.7 million as of June 30, 2016. The bank’s loan portfolio, net of unearned income, increased 8% from $78.3 million as of June 30, 2016, to $85.0 million as of June 30, 2017. The portfolio remains diversified with $31.9 million or 38% in Commercial & Industrial Loans to local businesses (including $19.3 million in Owner Occupied Commercial Real Estate Loans), $23.0 million or 27% in Residential Real Estate Loans to investors and $22.6 million or 27% in Commercial Real Estate Loans to investors. The bank has an additional $20.9 million in unfunded loan commitments.
The bank’s overall deposit base has increased 4% in the twelve months ended June 30, 2017, from $112.3 million as of June 30, 2016, to $117.3 million as of June 30, 2017. Non-interest bearing deposits continue to form a substantial part of the deposit base (39%), decreasing from $57.7 million to $45.9 million as of June 30, 2017. During the same time period interest-bearing deposits increased from $54.6 million to $71.4 million on June 30, 2017. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At June 30, 2017, shareholders’ equity was $16.4 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 experienced a drop in deposits during the second quarter which was caused by cyclicality and was not the result of any specific trends,” commented Jeffrey K. Ball, Chief Executive Officer. “With such a large percentage of the deposit base being in core deposits it is not unusual for the bank to experience such volatility which usually occurs within our reporting period and not at quarter-end. We are able to mitigate this risk with a sound liquidity strategy that includes a variety of funding sources and a comfortable loan-to-deposit ratio of 72%. Overall, the bank’s balance sheet continues to be strong with plenty of liquidity and capital to support further growth opportunities.”
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) | |||||||||||||
| 6/30/17 | 12/31/16 | 6/30/16 | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 3,746 | $ | 4,747 | $ | 3,516 | |||||||
| Interest bearing deposits with other financial institutions | 20,408 | 14,818 | 22,088 | ||||||||||
| Cash and Cash Equivalents | 24,154 | 19,565 | 25,604 | ||||||||||
| Investment securities available-for-sale | 39,857 | 42,183 | 31,912 | ||||||||||
| Federal Home Loan Bank stock | 835 | 779 | 779 | ||||||||||
| Federal Reserve Bank stock | 476 | 474 | 457 | ||||||||||
| Loans, net of unearned income | 84,986 | 74,986 | 78,334 | ||||||||||
| Allowance for loan losses | (1,525 | ) | (1,525 | ) | (1,525 | ) | |||||||
| Net Loans | 83,461 | 73,461 | 76,809 | ||||||||||
| Premises and equipment, net | 319 | 244 | 234 | ||||||||||
| Accrued interest receivable and other assets | 5,996 | 6,156 | 5,877 | ||||||||||
| Total Assets | $ | 155,098 | $ | 142,862 | $ | 141,672 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Liabilities | |||||||||||||
| Deposits | |||||||||||||
| Noninterest-bearing deposits | $ | 45,888 | $ | 47,517 | $ | 57,716 | |||||||
| Interest-bearing deposits | 71,408 | 68,012 | 54,614 | ||||||||||
| Total Deposits | 117,296 | 115,529 | 112,330 | ||||||||||
| FHLB advances | 21,000 | 11,000 | 13,000 | ||||||||||
| Accrued interest payable and other liabilities | 424 | 467 | 542 | ||||||||||
| Total Liabilities | 138,720 | 126,996 | 125,872 | ||||||||||
| 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 | (623 | ) | (946 | ) | (1,445 | ) | |||||||
| Accumulated other comprehensive income (loss) | (48 | ) | (237 | ) | 196 | ||||||||
| Total Shareholders’ Equity | 16,378 | 15,866 | 15,800 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 155,098 | $ | 142,862 | $ | 141,672 | |||||||
| Book Per Share | $ | 8.45 | $ | 8.18 | $ | 8.15 | |||||||
| Friendly Hills Bank | |||||||||
| Statements of Operations (Unaudited) | |||||||||
| (in thousands, except per share information) | |||||||||
| For the six | For the six | ||||||||
| months ended | months ended | ||||||||
| 6/30/17 | 6/30/16 | ||||||||
| Interest Income | $ | 2,462 | $ | 2,205 | |||||
| Interest Expense | (168 | ) | (153 | ) | |||||
| Net Interest Income | 2,294 | 2,052 | |||||||
| Provision for Loan Losses | 0 | 0 | |||||||
| Net Interest Income after Provision for Loan Losses | 2,294 | 2,052 | |||||||
| Noninterest Income | 244 | 229 | |||||||
| Noninterest Expense | (2,012 | ) | (1,992 | ) | |||||
| Non-Recurring Items | 0 | 36 | |||||||
| Income before Provision for Income Taxes | 526 | 325 | |||||||
| (Provision) Benefit for Income Taxes | (203 | ) | (119 | ) | |||||
| Net Income | $ | 323 | $ | 206 | |||||
| Basic and Diluted Earnings Per Share | $ | 0.17 | $ | 0.11 | |||||