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Hemet Bancorp Announces Quarterly Dividend and Second Quarter Earnings

July 28, 2023

Hemet Bancorp, parent company of HCN Bank, is pleased to announce a cash dividend of $3.25 per share of common stock. The dividend will be paid to shareholders of record as of July 27, 2023.

The company also reports strong second quarter financial results, with unaudited net income of $11,863,000, an increase of 20.4% from $9,853,000 in the same period of the prior year. This increase reflects HCN Bank's improved margins and the consistent performance of its loan portfolio, which reported non-performing loans at 0.00%.

As of June 30, 2023, total assets were $906 million, compared to $971.3 million at the end of last year. Moreover, total stockholders’ equity increased from $83.2 million to $88.9 million during the first half of 2023.

Regarding the company’s performance and on the overall banking industry, Kevin R. Farrenkopf, CEO of HCN Bank and Vice Chairman of Hemet Bancorp commented, “Fortunately, the banking industry has stabilized following the problems several banks experienced in March. Of the 4,527 community banks in the nation (assets under $10 billion), not one has failed. We see this as a good sign. We also see that banks are tending to fall into two categories: ones that have essentially stopped lending due to liquidity or other concerns, and ones that are financially healthy and feel there is an opportunity to capitalize on the comparative lack of bank competition. We fall squarely into the second category and feel we can select loan requests that have higher return/risk trade-offs. Simultaneously, like virtually all banks, we are experiencing higher funding costs due to the Federal Reserve’s commitment to cure inflation by keeping short-term interest rates high. We believe short-term rates may remain elevated through the end of the year, but funding costs may begin to come down in 2024, which would improve our margin. Given the nature of our balance sheet, we are positioned very well.”

We appreciated your continued support of Hemet Bancorp.

About HCN Bank:

HCN Bank, formerly known as The Bank of Hemet, is a full-service community bank that has been serving the Hemet community since 1974. With a commitment to personalized service, innovative solutions, and strong community relationships, HCN Bank offers a comprehensive range of financial services to individuals, businesses, and organizations.

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