Friendly Hills Bank Reports First Quarter Results
May 21 2014 - 3:00PM
Friendly Hills Bank (the "bank") (OTCBB:FHLB) reported results for
the first quarter of 2014.
For the three month period ending March 31, 2014, the bank
reported a profit of $183,000 or $0.11 per diluted share of common
stock. This figure includes a $32,000 increase in the value of the
interest rate caps and a $23,000 gain on securities sold. The bank
reported a loss of $47,000 or ($0.03) per diluted share of common
stock for the three months ended March 31, 2013. This figure
includes a $33,000 increase in the value of the interest rate caps
and a $99,000 provision for loan loss.
As of March 31, 2014, the bank reported total assets of $108.2
million, a 5% increase from $102.6 million as of March 31, 2013.
The bank's loan portfolio, net of unearned income, decreased 4%
from $60.9 million as of March 31, 2013, to $58.7 million as of
March 31, 2014. The portfolio remains diversified with $24.1
million or 41% in Commercial & Industrial Loans to local
businesses (including $17.1 million in Owner Occupied Commercial
Real Estate Loans), $17.0 million or 29% in Residential Real Estate
Loans to investors and $11.7 million or 20% in Commercial Real
Estate Loans to investors. The bank has an additional $18.3 million
in unfunded loan commitments.
The bank's overall deposit base has increased 7% in the twelve
months ended March 31, 2014, from $80.8 million as of March 31,
2013, to $86.2 million as of March 31, 2014. Non-interest
bearing deposits continue to form a substantial part of the deposit
base (40%), growing from $33.4 million to $34.7 million as of March
31, 2014. During the same time period interest-bearing
deposits increased from $47.4 million to $51.5 million on March 31,
2014. The bank has no deposits which were sourced
through brokers or other wholesale funding sources.
At March 31, 2014, shareholders' equity was $12.9 million and
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 are pleased to report increased earnings for the start of
the new year," commented Jeffrey K. Ball, Chief Executive Officer,
"resulting primarily from an increase in net interest income.
Although margins and quality loan growth continue to be a challenge
with this prolonged low interest rate environment, we continue to
manage the bank's exposure to future interest rate changes while
remaining properly positioned for anticipated 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
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) |
|
|
|
|
|
3/31/14 |
12/31/13 |
3/31/13 |
ASSETS |
|
|
|
Cash and due from banks |
$ 3,757 |
$ 3,217 |
$ 2,923 |
Interest bearing deposits with other
financial institutions |
6,516 |
5,893 |
6,161 |
Cash and Cash Equivalents |
10,273 |
9,110 |
9,084 |
Investment securities available-for-sale |
35,844 |
37,750 |
29,011 |
Federal Home Loan Bank stock |
600 |
646 |
605 |
Loans, net of unearned income |
58,669 |
57,635 |
60,939 |
Allowance for loan losses |
(1,452) |
(1,457) |
(1,266) |
Net Loans |
57,217 |
56,178 |
59,673 |
Premises and equipment, net |
548 |
561 |
620 |
Accrued interest receivable and other
assets |
3,714 |
3,667 |
3,631 |
Total
Assets |
$ 108,196 |
$ 107,912 |
$ 102,624 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Liabilities |
|
|
|
Deposits |
|
|
|
Noninterest-bearing
deposits |
$ 34,661 |
$ 37,436 |
$ 33,383 |
Interest-bearing deposits |
51,545 |
48,911 |
47,398 |
Total Deposits |
86,206 |
86,347 |
80,781 |
FHLB advances |
8,750 |
8,750 |
8,750 |
Accrued interest payable and other
liabilities |
342 |
333 |
321 |
Total
Liabilities |
95,298 |
95,430 |
89,852 |
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 |
1,090 |
1,090 |
1,079 |
Accumulated deficit |
(4,112) |
(4,295) |
(4,715) |
Accumulated other comprehensive
income (loss) |
(38) |
(271) |
450 |
Total Shareholders'
Equity |
12,898 |
12,482 |
12,772 |
Total Liabilities and
Shareholders' Equity |
$ 108,196 |
$ 107,912 |
$ 102,624 |
|
|
|
|
Book Value Per Share |
$ 7.98 |
$ 7.72 |
$ 7.90 |
|
Friendly Hills
Bank |
Statements of
Operations (Unaudited) |
(in thousands,
except per share information) |
|
|
|
|
For the three months ended
3/31/14 |
For the three months ended
3/31/13 |
Interest Income |
$ 1,038 |
$ 933 |
Interest Expense |
103 |
112 |
Net Interest Income |
935 |
821 |
Provision for Credit Losses |
0 |
99 |
Net Interest Income after
Provision for Credit Losses |
935 |
722 |
|
|
|
Other Income |
147 |
67 |
Operating Expenses |
955 |
869 |
Gain on Investment Securities and Hedging
Contracts |
56 |
33 |
Earnings (Loss) before Provision for Income
Taxes |
183 |
(47) |
Income Tax Expense |
0 |
0 |
Net Earnings (Loss) |
$ 183 |
$ (47) |
|
|
|
Basic and Diluted Earnings (Loss) Per
Share |
$ 0.11 |
$ (0.03) |
CONTACT: Jeffrey K. Ball (President & CEO)
Daniel L. Erickson (EVP & CFO)
(562) 947-1920