Friendly Hills Bank Reports Year End Results; Announces the Opening of a New Loan Production Office
February 12 2014 - 7:00AM
Friendly Hills Bank (the "bank") (OTCBB:FHLB) reported results for
the year ended December 31, 2013, after completing its seventh full
year of operations since opening on September 18, 2006. The bank
also announced that it has opened a new Loan Production Office
located in Orange County.
For the twelve month period ending December 31, 2013, the bank
reported a profit of $372,000 or $0.23 per diluted share of common
stock. This figure includes a $99,000 provision for loan losses,
$129,000 increase in the value of interest rate caps, and a
$181,000 gain on securities sold. The bank reported a profit of
$145,000 or $0.09 per diluted share of common stock for the twelve
months ended December 31, 2012. This figure includes a $213,000
provision for loan losses and a $74,000 increase in the value of
interest rate caps.
Excluding the provision for loan losses, adjustments to the
carrying value of interest rate caps, and investment securities
gains ("Core Earnings"), the bank reported net income of $161,000
for the twelve months ended December 31, 2013 compared to a net
income of $284,000 for the same period in 2012.
As of December 31, 2013, the bank reported total assets of
$107.9 million, a 3% increase from $104.7 million as of December
31, 2012. The bank's loan portfolio, net of unearned income,
decreased 4% from $60.0 million as of December 31, 2012, to $57.6
million as of December 31, 2013. The portfolio remains diversified
with $21.9 million or 38% in Commercial & Industrial Loans to
local businesses (including $15.5 million in Owner Occupied
Commercial Real Estate Loans), $17.2 million or 30% in Residential
Real Estate Loans to investors and $12.5 million or 22% in
Commercial Real Estate Loans to investors. The bank has an
additional $17.8 million in unfunded loan commitments.
The bank's overall deposit base has grown 4% in the twelve
months ended December 31, 2013, from $82.8 million as of December
31, 2012, to $86.3 million as of December 31, 2013. Non-interest
bearing deposits continue to form a substantial part of the deposit
base (43%), growing from $33.7 million to $37.4 million as of
December 31, 2013. During the same time period interest-bearing
deposits decreased from $49.1 million to $48.9 million on December
31, 2013. The bank has no deposits which were sourced through
brokers or other wholesale funding sources.
At December 31, 2013, shareholders' equity was $12.5 million and
the bank's total risk-based capital ratio was 20%, 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.
"While market conditions have made quality loan growth a
challenge during the past year," commented Jeffrey K. Ball, Chief
Executive Officer, "we feel the company is properly positioned for
potential market changes and future growth. Quality loan
growth is a challenge throughout the industry and we are
positioning our bank to be able to capture expanded opportunities
and selectively grow our portfolio. But we are doing so with a
focus on maintaining sound risk management, particularly in the
areas of credit risk and interest rate risk."
"As part of our effort to grow the loan portfolio, we are
pleased to announce the opening of a Loan Production Office in
Irvine, California, effective February 3, 2014. This office
will enable us to more effectively broaden our geographic reach in
pursuit of new loan relationship opportunities and is complemented
by an expanded team of qualified professionals who are focused on
the quality loan growth we need."
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) |
|
|
|
|
12/31/2013 |
12/31/2012 |
ASSETS |
|
|
Cash and due from banks |
$3,217 |
$3,679 |
Interest bearing deposits with other
financial institutions |
5,893 |
7,515 |
Cash and Cash Equivalents |
9,110 |
11,194 |
Investment securities available-for-sale |
37,750 |
29,906 |
Federal Home Loan Bank stock |
646 |
605 |
Loans, net of unearned income |
57,635 |
59,991 |
Allowance for loan losses |
(1,457) |
(1,168) |
Net Loans |
56,178 |
58,823 |
Premises and equipment, net |
561 |
627 |
Accrued interest receivable and other
assets |
3,667 |
3,552 |
Total Assets |
$107,912 |
$104,707 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
Liabilities |
|
|
Deposits |
|
|
Noninterest-bearing deposits |
$37,436 |
$33,698 |
Interest-bearing deposits |
48,911 |
49,092 |
Total Deposits |
86,347 |
82,790 |
FHLB advances |
8,750 |
8,750 |
Accrued interest payable and other
liabilities |
333 |
326 |
Total Liabilities |
95,430 |
91,866 |
Shareholders' Equity |
|
|
Common stock, no par value, 10,000,000
shares authorized: |
|
|
1,616,000 shares issued and
outstanding |
15,958 |
15,958 |
Additional paid-in-capital |
1,090 |
1,076 |
Accumulated deficit |
(4,295) |
(4,668) |
Accumulated other comprehensive income
(loss) |
(271) |
475 |
Total Shareholders'
Equity |
12,482 |
12,841 |
Total Liabilities and
Shareholders' Equity |
$107,912 |
$104,707 |
|
|
|
Book Value Per Share |
$7.72 |
$7.95 |
|
|
|
|
Friendly Hills
Bank |
Statements of
Operations (Unaudited) |
(in thousands,
except per share information) |
|
|
|
|
For the twelve months ended |
For the twelve months ended |
|
12/31/2013 |
12/31/2012 |
Interest Income |
$3,806 |
$4,142 |
Interest Expense |
422 |
497 |
Net Interest Income |
3,384 |
3,645 |
Provision for Loan Losses |
99 |
213 |
Net Interest Income after Provision for
Loan Losses |
3,285 |
3,432 |
|
|
|
Other Income |
303 |
273 |
Operating Expenses |
3,525 |
3,633 |
Gain on Investment Securities & Hedging
Contracts |
310 |
74 |
Earnings before Provision for Income
Taxes |
373 |
146 |
Income Tax Expense |
1 |
1 |
Net Earnings |
$372 |
$145 |
|
|
|
Basic and Diluted Earnings Per Share |
$0.23 |
$0.09 |
CONTACT: Jeffrey K. Ball (President & CEO)
Daniel L. Erickson (EVP & CFO)
(562) 947-1920
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