Friendly Hills Bank Reports Third Quarter Results
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
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
