16.11.2016, 18:11
Friendly Hills Bank Reports Third Quarter Results
OREANDA-NEWS. Friendly Hills Bank (the "bank") (OTCBB:FHLB) reported results for the third quarter of 2016.
For the nine month period ending September 30, 2016, the bank reported net income of $328,000 or $0.17 per diluted share of common stock. This figure includes a $36,000 net gain on securities sold. The bank reported net income of $297,000 or $0.15 per diluted share of common stock for the nine months ended September 30, 2015. This figure includes a $22,000 increase in the value of the interest rate caps, a $31,000 net gain on securities sold, and a $43,000 gain on other real estate owned.
As of September 30, 2016, the bank reported total assets of $142.6 million, a 10% increase from $129.6 million as of September 30, 2015. The bank’s loan portfolio, net of unearned income, increased 15% from $68.8 million as of September 30, 2015, to $79.0 million as of September 30, 2016. The portfolio remains diversified with $30.8 million or 39% in Commercial & Industrial Loans to local businesses (including $20.0 million in Owner Occupied Commercial Real Estate Loans), $22.1 million or 28% in Commercial Real Estate Loans to investors and $18.5 million or 23% in Residential Real Estate Loans to investors. The bank has an additional $22.7 million in unfunded loan commitments.
The bank’s overall deposit base has increased 17% in the twelve months ended September 30, 2016, from $98.6 million as of September 30, 2015, to $115.1 million as of September 30, 2016. Non-interest bearing deposits continue to form a substantial part of the deposit base (42%), growing from $44.1 million to $48.1 million as of September 30, 2016. During the same time period interest-bearing deposits increased from $54.5 million to $67.0 million on September 30, 2016. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At September 30, 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 continues to experience strong growth in all facets of our business while maintaining a strong balance sheet," commented Jeffrey K. Ball, Chief Executive Officer. "We are particularly pleased to report significant growth in the bank’s loan portfolio which we have been able to achieve while maintaining our rigorous underwriting standards. Those standards are essential in recognizing the continued uncertainty of market conditions including the sustainability of a low interest rate environment. Meanwhile our deposit base continues to grow providing core funding for our lending platform while we are encouraged by the progress in our Payroll Processing business. That business line is designed to enhance fee income through what we anticipate will be a sustained period of contracting loan yields as the market continues to see growth in non-bank lenders."
The bank is also proud to announce that Jeffrey K. Ball, Chief Executive Officer, was recently elected to serve on the Board of Directors of the American Bankers Association in Washington, D.C. Mr. Ball currently serves as Vice Chairman of the national association’s Government Relations Council and previously served as Chairman of the California Bankers Association.
For the nine month period ending September 30, 2016, the bank reported net income of $328,000 or $0.17 per diluted share of common stock. This figure includes a $36,000 net gain on securities sold. The bank reported net income of $297,000 or $0.15 per diluted share of common stock for the nine months ended September 30, 2015. This figure includes a $22,000 increase in the value of the interest rate caps, a $31,000 net gain on securities sold, and a $43,000 gain on other real estate owned.
As of September 30, 2016, the bank reported total assets of $142.6 million, a 10% increase from $129.6 million as of September 30, 2015. The bank’s loan portfolio, net of unearned income, increased 15% from $68.8 million as of September 30, 2015, to $79.0 million as of September 30, 2016. The portfolio remains diversified with $30.8 million or 39% in Commercial & Industrial Loans to local businesses (including $20.0 million in Owner Occupied Commercial Real Estate Loans), $22.1 million or 28% in Commercial Real Estate Loans to investors and $18.5 million or 23% in Residential Real Estate Loans to investors. The bank has an additional $22.7 million in unfunded loan commitments.
The bank’s overall deposit base has increased 17% in the twelve months ended September 30, 2016, from $98.6 million as of September 30, 2015, to $115.1 million as of September 30, 2016. Non-interest bearing deposits continue to form a substantial part of the deposit base (42%), growing from $44.1 million to $48.1 million as of September 30, 2016. During the same time period interest-bearing deposits increased from $54.5 million to $67.0 million on September 30, 2016. The bank has no deposits which were sourced through brokers or other wholesale funding sources.
At September 30, 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 continues to experience strong growth in all facets of our business while maintaining a strong balance sheet," commented Jeffrey K. Ball, Chief Executive Officer. "We are particularly pleased to report significant growth in the bank’s loan portfolio which we have been able to achieve while maintaining our rigorous underwriting standards. Those standards are essential in recognizing the continued uncertainty of market conditions including the sustainability of a low interest rate environment. Meanwhile our deposit base continues to grow providing core funding for our lending platform while we are encouraged by the progress in our Payroll Processing business. That business line is designed to enhance fee income through what we anticipate will be a sustained period of contracting loan yields as the market continues to see growth in non-bank lenders."
The bank is also proud to announce that Jeffrey K. Ball, Chief Executive Officer, was recently elected to serve on the Board of Directors of the American Bankers Association in Washington, D.C. Mr. Ball currently serves as Vice Chairman of the national association’s Government Relations Council and previously served as Chairman of the California Bankers Association.
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