Friendly Hills Bank Reports Third Quarter Results
November 15 2013 - 8:00AM
Friendly Hills Bank (the "bank") (OTCBB:FHLB) reported results for
the third quarter of 2013.
For the nine month period ending September 30, 2013, the bank
reported a profit of $311,000 or $0.19 per diluted share of common
stock. This figure includes a $97,000 increase in the value of
interest rate caps, a $181,000 gain on securities sold, and a
$99,000 provision for loan losses. The bank reported a profit of
$313,000 or $0.19 per diluted share of common stock for the nine
months ended September 30, 2012. This figure includes a $42,000
increase in the value of interest rate caps and a $84,000 recapture
of provision for loan losses.
As of September 30, 2013, the bank reported total assets of
$105.5 million, a 5% increase from $100.1 million as of September
30, 2012. The bank's loan portfolio, net of unearned income,
increased 3% from $58.3 million as of September 30, 2012, to $60.0
million as of September 30, 2013. The portfolio remains diversified
with $24.0 million or 40% in Commercial & Industrial Loans to
local businesses (including $16.2 million in Owner Occupied
Commercial Real Estate Loans), $17.7 million or 29% in Residential
Real Estate Loans to investors and $13.1 million or 22% in
Commercial Real Estate Loans to investors. The bank has an
additional $17.1 million in unfunded loan commitments.
The bank's overall deposit base has increased 8% in the twelve
months ended September 30, 2013, from $77.9 million as of September
30, 2012, to $83.8 million as of September 30, 2013. Non-interest
bearing deposits continue to form a substantial part of the deposit
base (43%), growing from $30.9 million to $36.0 million as of
September 30, 2013. During the same time period
interest-bearing deposits increased 2% from $47.0 million to $47.8
million on September 30, 2013. The bank has no deposits
which were sourced through brokers or other wholesale funding
sources.
At September 30, 2013, shareholders' equity was $12.7 million
and the bank's total risk-based capital ratio was 19%,
significantly exceeding the "well-capitalized" level of 10%
prescribed under current 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.
"Narrowing interest rate margins continued to have a significant
impact on the bank's primary revenue driver which is Net Interest
Income during the third quarter," commented Jeffrey K. Ball, Chief
Executive Officer. "However, we are beginning to see
improvement in quality loan demand and anticipate this trend will
continue into the coming year. We continue to keep a close
monitor on our expenses while staffing the bank appropriately for
increased loan activity. The bank is well positioned in terms
of capital, liquidity and staffing to support increased growth
while remaining committed to maintaining our strong underwriting
standards with a focus on 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 at 16011 E. Whittier Blvd.
in Whittier, California with an additional branch office at 12070
East Telegraph Road, Suite #100 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) |
|
|
|
|
|
9/30/13 |
12/31/12 |
9/30/12 |
ASSETS |
|
|
|
Cash and due from banks |
$ 5,519 |
$ 3,679 |
$ 2,327 |
Interest bearing deposits with other
financial institutions |
5,930 |
7,515 |
3,607 |
Cash and Cash Equivalents |
11,449 |
11,194 |
5,934 |
Investment securities available-for-sale |
30,748 |
29,906 |
32,571 |
Federal Home Loan Bank stock |
600 |
605 |
605 |
Loans, net of unearned income |
59,996 |
59,991 |
58,321 |
Allowance for loan losses |
(1,457) |
(1,168) |
(1,572) |
Net Loans |
58,539 |
58,823 |
56,749 |
Premises and equipment, net |
574 |
627 |
662 |
Accrued interest receivable and other
assets |
3,625 |
3,552 |
3,588 |
Total
Assets |
$ 105,535 |
$ 104,707 |
$ 100,109 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Liabilities |
|
|
|
Deposits |
|
|
|
Noninterest-bearing
deposits |
$ 36,039 |
$ 33,698 |
$ 30,887 |
Interest-bearing deposits |
47,759 |
49,092 |
47,029 |
Total Deposits |
83,798 |
82,790 |
77,916 |
FHLB advances |
8,750 |
8,750 |
8,750 |
Accrued interest payable and other
liabilities |
329 |
326 |
315 |
Total
Liabilities |
92,877 |
91,866 |
86,981 |
Shareholders' Equity |
|
|
|
Common stock, no par value,
10,000,000 shares authorized: |
|
|
|
1,616,000 shares issued and
outstanding |
15,958 |
15,958 |
15,958 |
Additional paid-in-capital |
1,086 |
1,076 |
1,073 |
Accumulated deficit |
(4,357) |
(4,668) |
(4,500) |
Accumulated other comprehensive
income |
(29) |
475 |
597 |
Total Shareholders'
Equity |
12,658 |
12,841 |
13,128 |
Total Liabilities and
Shareholders' Equity |
$ 105,535 |
$ 104,707 |
$ 100,109 |
|
|
|
|
Book Value Per Share |
$ 7.83 |
$ 7.95 |
$ 8.12 |
|
Friendly Hills
Bank |
Statements of
Operations (Unaudited) |
(in thousands,
except per share information) |
|
|
|
|
For the nine months ended
9/30/13 |
For the nine months ended
9/30/12 |
Interest Income |
$ 2,831 |
$ 3,143 |
Interest Expense |
318 |
377 |
Net Interest Income |
2,513 |
2,766 |
Provision for Credit Losses |
99 |
(84) |
Net Interest Income after
Provision for Credit Losses |
2,414 |
2,850 |
|
|
|
Other Income |
233 |
207 |
Operating Expenses |
2,614 |
2,785 |
Investment Securities and Hedging Contracts
Gains |
279 |
42 |
Earnings before Provision for Income
Taxes |
312 |
314 |
Income Tax Expense |
(1) |
(1) |
Net Earnings |
$ 311 |
$ 313 |
|
|
|
Basic and Diluted Earnings Per Share |
$ 0.19 |
$ 0.19 |
CONTACT: Jeffrey K. Ball (President & CEO)
Daniel L. Erickson (EVP & CFO)
(562) 947-1920