Friendly Hills Bank Reports Fourth Quarter Results; Announces Dan McGregor as New Chief Credit Officer
WHITTIER, Calif., Feb. 10, 2017 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the fourth quarter of 2016.
For the twelve month period ending December 31, 2016, the bank reported net income of $705,000 or $0.36 per diluted share of common stock. This figure includes a $200,000 tax benefit resulting from a reduction in the bank’s deferred tax valuation allowance and a $36,000 net gain on securities sold. The bank reported net income of $394,000 or $0.20 per diluted share of common stock for the twelve months ended December 31, 2015. This figure includes a $22,000 increase in the value of the interest rate caps and a $43,000 gain on other real estate owned.
As of December 31, 2016, the bank reported total assets of $143.2 million, a 14% increase from $125.6 million as of December 31, 2015. The bank’s loan portfolio, net of unearned income, increased 10% from $67.9 million as of December 31, 2015, to $75.0 million as of December 31, 2016. The portfolio remains diversified with $28.6 million or 38% in Commercial & Industrial Loans to local businesses (including $16.6 million in Owner Occupied Commercial Real Estate Loans), $18.2 million or 24% in Residential Real Estate Loans to investors and $23.1 million or 31% in Commercial Real Estate Loans to investors. The bank has an additional $22.8 million in unfunded loan commitments.
The bank’s overall deposit base has increased 19% in the twelve months ended December 31, 2016, from $96.9 million as of December 31, 2015, to $115.5 million as of December 31, 2016. Non-interest bearing deposits continue to form a substantial part of the deposit base (41%), growing from $42.5 million to $47.5 million as of December 31, 2016. During the same time period interest-bearing deposits increased from $54.4 million to $68.0 million on December 31, 2016. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At December 31, 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 had a very strong quarter in terms of growth which is attributable to improving economic conditions in our local markets,” commented Jeffrey K. Ball, Chief Executive Officer. “Most importantly we have been able to achieve this growth while maintaining a strong balance sheet with consistent underwriting standards and continued diversification of our loan portfolio. Our deposit base continues to be focused on core deposits which tend to have higher volatility but also provide a low cost funding source which we feel will continue to benefit the bank in a rising interest rate environment. To help us effectively manage this growth we are pleased to welcome Dan McGregor to our team as an Executive Vice President and Chief Credit Officer. Having worked over 30 years in the banking industry he brings tremendous experience in credit management and community banking which will be valuable as we continue to selectively grow the bank.”
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) | ||||||||||
| 12/31/16 | 12/31/15 | |||||||||
| ASSETS | ||||||||||
| Cash and due from banks | $ | 4,747 | $ | 3,904 | ||||||
| Interest bearing deposits with other financial institutions | 14,818 | 4,529 | ||||||||
| Cash and Cash Equivalents | 19,565 | 8,433 | ||||||||
| Investment securities available-for-sale | 42,183 | 43,312 | ||||||||
| Federal Home Loan Bank stock Federal Reserve Bank stock |
779 474 |
753 455 |
||||||||
| Loans, net of unearned income | 74,986 | 67,876 | ||||||||
| Allowance for loan losses | (1,525 | ) | (1,595 | ) | ||||||
| Net Loans | 73,461 | 66,281 | ||||||||
| Premises and equipment, net | 244 | 211 | ||||||||
| Accrued interest receivable and other assets | 6,461 | 6,134 | ||||||||
| Total Assets | $ | 143,167 | $ | 125,579 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Liabilities | ||||||||||
| Deposits | ||||||||||
| Noninterest-bearing deposits | $ | 47,517 | $ | 42,531 | ||||||
| Interest-bearing deposits | 68,012 | 54,354 | ||||||||
| Total Deposits | 115,529 | 96,885 | ||||||||
| FHLB advances | 11,000 | 13,000 | ||||||||
| Accrued interest payable and other liabilities | 772 | 452 | ||||||||
| Total Liabilities | 127,301 | 110,337 | ||||||||
| Shareholders’ Equity | ||||||||||
| Common stock, no par value, 10,000,000 shares authorized: | ||||||||||
| 1,939,200 shares issued and outstanding | 15,958 | 15,958 | ||||||||
| Additional paid-in-capital | 1,091 | 1,091 | ||||||||
| Accumulated deficit | (946 | ) | (1,651 | ) | ||||||
| Accumulated other comprehensive income (loss) | (237 | ) | (156 | ) | ||||||
| Total Shareholders’ Equity | 15,866 | 15,242 | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | 143,167 | $ | 125,579 | ||||||
| Book Value Per Share | $ | 8.18 | $ | 7.86 | ||||||
| Friendly Hills Bank | |||||||||
| Statements of Operations (Unaudited) | |||||||||
| (in thousands, except per share information) | |||||||||
| For the twelve | For the twelve | ||||||||
| months ended | months ended | ||||||||
| 12/31/16 | 12/31/15 | ||||||||
| Interest Income | $ | 4,577 | $ | 4,396 | |||||
| Interest Expense | 318 | 305 | |||||||
| Net Interest Income | 4,259 | 4,091 | |||||||
| Provision for Loan Losses | 0 | 0 | |||||||
| Net Interest Income after Provision for Loan Losses | 4,259 | 4,091 | |||||||
| Noninterest Income | 447 | 459 | |||||||
| Noninterest Expense | 3,931 | 3,998 | |||||||
| Non-Recurring Items | 35 | 67 | |||||||
| Income before Provision for Income Taxes | 810 | 619 | |||||||
| (Provision) Benefit for Income Taxes | (105 | ) | (225 | ) | |||||
| Net Income | $ | 705 | $ | 394 | |||||
| Basic and Diluted Earnings Per Share | $ | 0.36 | $ | 0.20 | |||||
Contacts: Jeffrey K. Ball (President & CEO) Daniel L. Erickson (EVP & CFO) (562) 947-1920
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