MESSAGE FROM THE PRESIDENT
Dear Clients, Shareholders and Colleagues,
Despite the generally less favorable market environment in 2018, BHF Bank still generally met its targets posting satisfactory net income of P21.43 Million. The Bank managed to have reasonable results of operations while providing competitive interest rates to client-borrowers and while the cost of funds in 2018 has almost doubled from that of the previous year.
We continued to serve and provide financial assistance and services to the Pangasinenses and the people of neighboring provinces especially those engaged in budding businesses and those in the sector of agriculture.
We have also strengthened compliance to BSP and all other external supervisory bodies by strengthening and enhancing the Bank’s IT systems. We were able to balance performance and compliance and made sure that the Bank’s stability and going-concern is still the foremost priority.
I was also chosen by the member-banks of Rural Bankers’ Association of the Philippines (RBAP) as its President. Within my tenure as the President of RBAP, I was able to travel and was able to meet our fellow rural bankers and this became an avenue to share some of the Bank’s best practices and at the same time the opportunity to learn the best practices of successful and larger rural banks.
Within my tenure in RBAP as President, I made sure that all member-banks felt that RBAP is one with them and is built for them and helped RBAP grow as an institution. Some of the initiatives we pursued in the RBAP were the conduct of focused group discussions wherein we listened to the concerns of each member-banks, pushing for digitization through the use of cloud-based core banking systems (CBS), financial inclusion and partnering with government and non-government sponsors and benefactors who could help the rural banks grow and be able to cope up and be relevant at this age and time despite the ever-changing landscape of the playing field.
BHF Bank shall also continue in ensuring that our dear employees are not only competent but also happy people. As a move toward this, the Bank is now currently seeking partnership with premier insurance companies for actuarial services for our employees to help them ensure security and stability in life while being employed and up to the life after retirement.
In 2018, we continued to reach our goals and progress while we ensure that the Bank as a whole operates and practices safe and sound operation. Moving forward, BHF Bank shall continue the good things it started in the past years and to continue in providing effective and timely services to its clients. In lending, the Bank still sees the SME, Housing and Agricultural Loans as its main drivers for growth and revenue.
Lastly, I would like to extend my sincerest gratitude to our management team and to all employees of the Bank for their invaluable contribution and dedication.
Yours truly,
FINANCIAL HIGHLIGHTS
(In Thousand Pesos)
| PARTICULARS | 2018 | 2017 | |
| Profitability | |||
| Total Net Interest Income | 54,091 | 56,826 | |
| Total Non-interest Income | 23,378 | 30,305 | |
| Total Non-interest Expenses | 54,034 | 54,980 | |
| Pre-provision Profit | 23,435 | 32,151 | |
| Allowance for Credit Losses | 2,001 | 1,204 | |
| Net Income | 21,434 | 30,947 | |
| Selected Balance Sheet Data | |||
| Liquid Assets | 70,145 | 79,635 | |
| Gross Loans | 454,050 | 424,859 | |
| Total Assets | 681,125 | 658,115 | |
| Deposits | 145,710 | 225,453 | |
| Bills Payable – DOSRI | 127,313 | 39,000 | |
| Bills Payable – Banks | 40,000 | 45,000 | |
| Total Equity | 318,341 | 306,800 | |
| Selected Ratios | |||
| Return on Equity | 6.86% | 10.55% | |
| Return on Assets | 3.20% | 4.70% | |
| Capital Adequacy Ratio | 40.31% | 39.78% | |
| Per Common Share Data | |||
| Net Income per Share: | 133.96 | 193.42 | |
| Book Value | 1,989.63 | 1,917.50 | |
| Others | |||
| Cash Dividends Declared | 0 | 0 | |
| Headcount | 73 | 74 | |
| Officers | 33 | 33 | |
| Staff | 40 | 41 | |
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL PERFORMANCE REVIEW
The Bank was not exempted from the external events that happened and affected not only the banking industry as a whole but also the lives of very Filipino – the train law that was passed to law to support the Build, Build, Build Program; rice supply shortage that eventually resulted to the surging rice prices; successive oil price hikes which consequently resulted to the price increases in almost all basic commodities; higher tax rates for some mostly sought products by the public.
Inflation rate is soaring higher and higher as the year progressed. Funders have increased their interest rates on borrowings. The Bank’s cost of funds from its Bills Payable from other Banks has almost tripled during the year.
BSP has also mandated all BSFIs, particularly rural banks, to comply with the minimum liquidity ratio of 20% which means that stock of liquid assets (.i.e. cash) shall be at least 20% of the total balance sheet liabilities. This prompted the Bank to gradually increase its stock of liquid assets by the last quarter of 2018.
Despite the challenges, the BHF Bank posted a net profit of P21.43 Million with a return on assets of 3.20%, around twice more than the industry average for the year. The Bank has maintained a very robust capitalization having a 46.74% and 40.31% Total Capital to Total Assets and Capital Adequacy Ratio, respectively, with both being more than twice the industry average. Despite the very high capital ratios, the Bank was still able to post a very satisfactory Return on Equity (ROE) of 6.86%.
LENDING
The Bank was able to post a 7% increase in gross loans on year-to-year basis. Collateralized loans such as the SME, Housing and Tunnel Ventilated Poultry/Piggery Loan (Agri) as well as the unsecured salary loan remained as the bread and butter of the Bank. Total assets increased by 3.5% from P658.12 Million to P681.12 Million. Small-Medium Enterprises Loan consist the largest part of the pie with 27%, followed by Salary Loan and Agri-Agra Loan 24% and 20%, respectively.
The bank still sees the above three loan product classification as the driver for growth for the Bank in the foreseeable future especially the Tunnel Ventilated Program.
FUNDING
The Bank has satisfactorily maintained enough funding source and liquidity. With increasing interest rate in Bills Payable from Commercial Banks (from 2.55% in the first quarter to 6.125% in the third quarter) the Bank has instead solicited from Stockholders for their excess funds which can be availed at interest rates way lower than those offered by bigger banks.
The Bank was able to maintain excellent and better-the-industry liquidity ratios:
| Particulars | BHF Bank | Industry |
| Cash & Due from Banks to Deposits | 48.1% | 31.1% |
| Loans to Deposits/Bills Payable-DOSRI | 166.3% | 78.2% |
SHARE CAPITAL AND RETAINED EARNINGS
The Bank’s Common Stock was already fully subscribed and paid. Increase in total capital is mainly due to the favourable results of operations for the year.
CAPITAL ADEQUACY RATIO (CAR)
The Bank’s CAR stands at 40.1%, more than double of the industry standard average and around four times the industry minimum requirement. The Bank has not declared any cash dividend.
The Bank’s CAR increased by 1.34 percentage points or 3.38% increase from the previous year’s CAR.
INCOME SOURCES
The Bank still generates its income in its core operations which is lending. The Bank was able to generate interest income of P62.81 Million from around P534.30 Million earning assets or an earning asset yield of 11.76%. Non-Interest Income amounts to P25.07 Million comprised of service fees and gain on sale of ROPA. Gain on sale of ROPA alone attributed to P15.58 Million in income.
The Bank generated most of its loans from (a) Salary Loans – P20.49 Million; (b) SME Loans – P14.40 Million; (c) Agri-Agra Loans – P12.48 Million and (d) Housing Loan – P10.50 Million.
RISK MANAGEMENT
Under existing rules and regulations, the Bank’s Risk Management System is supervised by the Board of Directors through the President and the Chief Operating Officer of the Bank. The Bank acknowledges that the business risks and risk management and risk mitigation are necessary to sustain long-term success. The Bank has improved its ranks and hired services of competent professionals as advisers. Through the years, the Bank has ensured effective risk management by ensuring that necessary measures and internal controls are in place and complied by all people in the Bank.
The Bank’s risk management is based on what the Bank is willing to bear for a given benefit. The Bank’s corporate/corporate governance structure is in line with the risks the Bank faces and will be facing for the foreseeable future. Senior Officer and Department Heads are designated as risk officers of their respective units and shall report to the President all risk related matters on a timely manner. The following are the Unit Heads designated as risk officers of their Department:
Rufino Mar T. Gumayagay, COO
(and Branch Heads) – Branches
Jemelle E. Gregorio, Credit Head – Credit
Rowena F. Estrada, HRD Head – HR Head
Jose M. Maer, AMO – ROPA
Crisostomo V. Prado, RMU Head – Remedial
Ma. Cristina M. Guarin, Accounting Head – Accounting
Ranjo B. Robosa, MIS Head – MIS/IT
The Internal Audit and the Compliance Office continuously assess the effectiveness and compliance with the policies, procedures and controls set under the Risk Management System of the Bank. The Compliance Officer shall likewise act as the Anti-Money Laundering (AML) Officer of the Bank.
BHF Bank’s primary direction is to maintain its resiliency and relevance in the rural banking industry by maintaining excellent capital ratios, liquidity ratios and profit ratios and all other basic financial ratios.
CORPORATE GOVERNANCE
BHF Bank is committed to ensuring that the institution complies with regulatory provisions and practices safe and sound banking which is necessary in achieving the Bank’s goals and objectives.
With good governance, the bank shall be able to raise investor confidence, achieve high sustained growth, and maximize the value of the company to its shareholders.
The Board of Directors, Senior Management of BHF Bank down to the staffs adhere to the highest standards, principles and practices of good governance. It hails from the regime of adhering to the Fairness, Accountability and Transparency in the conduct of its business, dealing fairly with clients, investors and stakeholders as well as the general public it serves. To achieve good governance, the Bank enforces compliance culture and discipline and self assessment in its policies, processes and procedures.
CORPORATE GOVERNANCE STRUCTURE
BOARD OF DIRECTORS
The Board of Directors carries the responsibility of ensuring that good governance principles are carried out throughout the Bank and is responsible for the overall leadership and direction of the Bank to ensure long-term success by satisfying the clients’ needs while upholding its reputation.
The main mandate of the Board is to implement strategic plans of the Bank, risk management strategies and good governance strategies. The Board is likewise responsible in strategizing the corporate structure of the Bank, developing and implementing plan of succession, approving major strategies and policies and overseeing all major risk-taking activities.
The Board continuously and periodically reviews practices, policies and procedures by the Bank.
The Bank’s Board of Directors is currently composed of eleven (11) directors with a balance of skills, knowledge and experience among its members to perform their decision-making responsibilities. All members are at least with bachelor’s degree – most are in the fields of Commerce.
The members of the Board are elected by the stockholders during annual stockholders meeting with each member holding an office for one year. Each member of the Board is subject to the qualifications set by the Bangko Sentral ng Pilipinas and other existing laws and regulations of the land. Independent Directors are non-executive directors and are independent of Management.
Directors shall serve for one (1) year and until their successors are elected and qualified. A director shall hold office for such period unless before his term expires he resigns, is removed from office, become incapacitated for reason of sickness or death, or otherwise disqualified by law or by the Bangko Sentral or by removal from office by a vote of the stockholders representing at least two-thirds (2/3) of the outstanding capital stock in the manner provided for in the Corporation Code of the Philippines.
Any vacancy occurring in the Board of Directors other than by removal by stockholders or by expiration of term, may be filled by the vote of at least a majority of the remaining directors, if still constituting a quorum; otherwise said vacancy must be filled by stockholders in a regular or special meeting called for purpose. A director so selected to fill a vacancy shall serve only the unexpired term of his predecessor in office.
MEMBERS OF THE BOARD
| Name | Type | No. of shares | Percentage |
| Armando B. Bonifacio, M.D. | Executive | 22,857 | 14.286% |
| Remigio B. Bonifacio, Jr. | Executive | 22,854 | 14.284% |
| Aurora B. Bonifacio | Executive | 11 | 00.007% |
| Rosemarie B. Bonifacio | Non-Executive | 22,854 | 14.284% |
| Daisy B. Araneta | Non-Executive | 22,854 | 14.284% |
| Emelda B. Mendoza | Non-Executive | 22,854 | 14.284% |
| Cherie B. Estrada | Executive | 22,854 | 14.284% |
| Reynaldo B. Bonifacio | Non-Executive | 22,854 | 14.284% |
| Rodylin C. Antipuesto (+) | Independent | 2 | 00.001% |
| Laurence C. Tueres | Independent | 2 | 00.001% |
| Florentino Felix M. Cuison, Jr. | Independent | 2 | 00.001% |
| Total | 159,998 | 99.999% |
- EMELDA B. MENDOZA
Chairman
Filipino, 53 years old
Ms. Emelda B. Mendoza was elected as the Chairman of the Board in July 2018. She was a Director of the Bank since 2008. She currently has interests and holds other positions in other entities. She is a Consultant of BHF Pawnshop, Director of BHF Corporation, General Manager and Owner of Bloomfield Hotel, Treasurer of Outlook Drive Residences, Inc. and the President of R&E Premier Land Corporation.
She is a graduate of Fine Arts at the University of the Philippines. She attended various seminars including corporate governance and Anti-Money Laundering.
- ARMANDO B. BONIFACIO
Director / President
Filipino, 51 years old
He was a member of the Board since the inception of the Bank in 1997 and has been the most active member of the Board being the Chairman and the President since 2006 up to 2017. He has more than 20 years of banking experience and is also currently a stockholder of BHF Pawnshop, BHF Corporation and the BHF Family Plaza, Inc. He attended various seminars on rural banking, corporate governance and anti-money laundering. Recently, he was elected as the President of the Rural Bankers Association of the Philippines (RBAP).
Dr. Bonifacio is a graduate of B.S. Medical Technology (1988) and Doctor of Medicine (1992).
- AURORA B. BONIFACIO
Director / Special Assistant to the President
Filipino, 81 years old
Ms. Aurora B. Bonifacio is a native of Pampanga. She initiated the founding of the Bank. She earned her degree in Commerce Management from the Far Eastern University. She’s been a very active member of the Board since the birth of the Bank and currently the Special Assistant to the President (SAP). She has a wide knowledge in businesses backed up by almost six (6) decades of experience in business administration and management in top executive level. She has been into retail and merchandizing, real estate, banking, mall operations, pawnshops and others.
- REMIGIO B. BONIFACIO, JR.
Director
Filipino, 48 years old
Mr. Remigio B. Bonifacio, Jr. has been a member of the Board since the inception of the Bank. He is a graduate of B.S. Business Administration from Luzon Colleges. Prior to joining the BHF Bank in 1997, he has been a Director of the BHF Corporation in 1995 and holds the position up to the present. Currently, he is also a Stockholder of BHF Pawnshop. He is a member of the Bank’s Credit Committee. He attended various seminars including corporate governance.
- ROSEMARIE B BONIFACIO
Director
Filipino, 46 years old
Ms. Rosemarie B. Bonifacio has been a member of the Board since the inception of the Bank. She earned her Master’s Degree in Entrepreneurship from Asian Institute of Management. Currently, she is a Director of BHF Corporation and a Stockholder of BHF Pawnshop, Inc. She attended various seminars including corporate governance.
- DAISY B. ARANETA
Director
Filipino, 56 years old
Ms. Daisy B. Araneta earned her Degree on Business Administration from Maryknoll College. She was elected as a Director of the Bank since 2008. She was also previously appointed as member of the Credit Committee in the past. She is currently a stockholder of BHF Tarlac Group, Inc. and BHF 3B & A, Inc.
- CHERIE B. ESTRADA
Director / Treasurer
Filipino, 55 years old
Ms. Cherie B. Estrada was appointed as the Treasurer of the Bank. She is a graduate of Maryknoll College with a degree in Business Administration. She was elected as a Director of the Bank since 2008. She is also a Director of BHF Corporation and Stockholder of BHF Pawnshop. She is also a stockholder of CB Mall.
- REYNALDO B. BONIFACIO
Director
Filipino, 58 years old
Mr. Reynaldo B. Bonifacio is a graduated of Business Management from the Ateneo De Manila University. He was elected as a Director from 2008. He is very active in the business world as he is also the long time Executive Vice-President of BHF Corporation and the Chairman and Chief Executive Officer of BHF Prime Group Corporation while also a Stockholder of BHF Pawnshop.
He attended various seminars including Corporate Governance and Risk Management for Rural Banks.
- RODYLIN C. ANTIPUESTO (+)
Independent Director
Filipino, 53 years old
Ms. Rodylin C. Antipuesto was a Certified Public Accountant earning his degree in Accountancy from the University of Sto. Tomas. She is now in the Public Accountancy for more than 20 years. To start her career in accounting, she put-up the Antipuesto Accounting Office in 1996. She is currently serving as member of the Bank’s Audit Committee. She is an Independent Director of the Bank. She attended seminars on Corporate Governance. Her wide expertise includes accounting and taxation.
- LAURENCE C. TUERES
Independent Director
Filipino, 50 years old
Mr. Laurence C. Tueres is Political Science graduate at San Sebastian College. He started his banking profession in 1990 when hired as an Account Officer of Planters Development Bank. He was hired as Manager by Philippine Business Bank in 1997. After his banking stint, he was hired as Senior Manager by Digitel Telecommunications from 1999 to 2005. On May 2005, Mr. Tueres started the GSL Trademart Corporation and assumed as the President.
Currently, he is elected as Independent Director. He is now an Independent Director of the Bank for at least 5 years now.
- FLORENTINO FELIX M. CUISON, JR.
Independent Director
Filipino, 47 years old
Mr. Florentino Felix M. Cuison, Jr. is a Business Administration graduate from University of Sto. Tomas. He is the current Chairman of the Audit Committee. He is with the Bank as Independent Director since 2013.
Prior to joining the Bank, he was hired as Draftsman by the City Assessor’s Office- Tax Mapping Division in Dagupan City from 1992 to 1993. He was hired as Credit Investigator by Landbank from October 1993 to January 2005. After his stint with Landbank, he was hired as Operations Manager while also being a Stockholder of The Joshua Tree Bar and Restaurant for two (2) years from 2004 to 2006. He later had a short employment stints in Philippine Postal Savings Bank, Inc. and Security Bank.
- JASON MEJIA
Corporate Secretary
Filipino, 49 years old
Atty. Jason Mejia was appointed as the Corporate Secretary of the Bank. He earned his Bachelor of Laws degree from Lyceum of the Philippines. He also holds positions from other companies.
The members of the Board actively participate in the governance of the Bank. Executive Directors are very much involved in the day-to-day operations while independent directors contribute in the check-and-balance, i.e. self assessment functions.
BOARD COMMITTEES
There are two (2) committees helping the Board in discharging its duties and responsibilities in running the Bank. Each committee operates and conducts its business under procedures and guidelines duly approved by the Board and according to the rules set by the BSP. Below are the compositions of the committees.
- CREDIT COMMITTEE
The Credit Committee’s primary responsibility is to oversee the review, extension and management of credit/loans being undertaken by the Bank. The Credit Committee recommends policies, procedures, and guidelines to the Board of Directors which will reduce credit risk, enhance credit facilities, quality loans, competitiveness and profitability for the Bank.
The Credit Committee oversees the implementation of credit policies, procedures and guidelines and recommends enhancements from time to time. The Credit Committee approves loan within its approving authority limit and recommends approval of loans that requires Board level approvals.
Chairman: Dr. Armando B. Bonifacio
Members: Cherie B. Estrada; Remigio B. Bonifacio, Jr.
- AUDIT COMMITEE
The Audit Committee of the Bank provides oversight of the institution’s financial reporting, internal controls, as well as internal and external audit functions. The Audit Committee is primarily responsible for overseeing senior management in the establishment and maintaining of an adequate, effective and efficient internal control framework. It ensures that systems and processes are designed to provide assurance in areas including reporting, monitoring compliance with laws, regulations and internal policies, efficiency and effectiveness of operations, and safeguarding of assets.
The Audit Committee is accountable for setting up the bank’s internal audit department.
Chairman: Florentino Felix M. Cuison, Jr.
Members: Rosemarie B. Bonifacio; Rodylin C. Antipuesto (+)
DIRECTORS’S ATTENDANCE
| Name | Board | Credit Committee | Audit Committee | |||
| # of meetings= | # of meetings= | 30 | # of meetings= | |||
| Attended | Attended | Attended | ||||
| Armando B. Bonifacio, M.D. | 39 | 100% | 29 | 97% | ||
| Remigio B. Bonifacio, Jr. | 39 | 100% | 29 | 97% | ||
| Aurora B. Bonifacio | 39 | 100% | ||||
| Rosemarie B. Bonifacio (*) | 39 | 100% | 3 | 100% | ||
| Daisy B. Araneta | 0 | 0% | ||||
| Emelda B. Mendoza | 39 | 100% | ||||
| Cherie B. Estrada | 39 | 100% | 28 | 93% | ||
| Reynaldo B. Bonifacio | 39 | 100% | ||||
| Rodylin C. Antipuesto | 38 | 97% | 5 | 100% | ||
| Laurence C. Tueres | 39 | 100% | ||||
| Florentino Felix M. Cuison, Jr. | 39 | 100% | 5 | 100% | ||
(*) – Director Rosemarie B. Bonifacio joined the Audit Committee on July 2018. Has attended 3 out of three meetings from July to December 2018
PERFORMANCE ASSESSMENT AND REMUNERATION POLICY
The Bank assesses the performance of all Directors and Senior Officers as well as the Board Committees on a yearly basis. The Bank through the BOD yearly evaluates each director’s qualifications, personal attributes, functions and credit dealings with the Bank, meetings and trainings.
The BOD ensures that each Director meets all the qualifications and none of the disqualifications as a Director of a Bank and that each Director assigned to a Committee has the necessary qualifications. The BOD requires that all directors meet all qualifications set by the BSP.
The BOD requires each Director to be active in the performance of his or her duties and must demonstrate unbiased opinions and decisions concerning the Bank.
The Bank believes that regular assessment of the Board and its members provides a chance to reflect on and assess its areas of strength and weaknesses, helps the Board itself in clarifying and defining the overall standard of performance it requires from the Board and encourages all Directors to reflect on what the Board has accomplished so far.
To further equip all directors in performing their decision-making functions, all Directors are required to undergo necessary training to keep them updated of the ever-changing practices, policies and guidelines of safe and sound banking.
All Directors do not receive any salary, except for the President and the Special Assistant to the President. Each director is given per diem for each meeting attended. Compensation for the President and the SAP and any other increase or changes shall be upon the pre-approval of the Board.
RELATED PARTY TRANSACTIONS
BHF Bank recognizes that reputation is its most valuable asset, hence, observes a high standard of integrity in dealing with the public. The board of directors leads in establishing the tone of good governance from the top. The Board ensures that all Related Party Transactions (RPT) are conducted on an arm’s length and in accordance with regulatory requirements.
The Board evaluates proposed relate party transactions by considering the nature of the transaction and the right pricing mechanism applicable for the specific nature of transaction. It is important to avoid conflict of interest, as such, Directors who have direct or indirect interest on the related party transaction shall be excluded in the approval process.
Material Related Party transactions for the year include loans extended to Officers of the Bank:
| Name of Officer | Amount | Remarks |
| Ranjo B. Robosa | 250,000.00 | Car Benefit |
| Brenda T. Macalanda | 250,000.00 | Car Benefit |
| Fritzi Kay B. Simbulan | 22,000.00 | Hospitalization Assistance |
| Maribel P. Barlaan | 114,583.04 | Hospitalization Assistance |
SELF-ASSESSMENT FUNCTIONS
The self-assessment functions of the Bank are the Internal Audit and the Compliance Office. While the Internal Audit directly reports to the Audit Committee, the Compliance Office reports to the Board.
- INTERNAL AUDIT
Head: Ma. Louela L. Paragas
The Internal Audit encourages and fosters compliance and discipline to all personnel of the Bank by conducting process, financial statement and transactions audit.
The Internal audit is committed to add value to the bank by contributing to the improvement of operational efficiency, risk management and internal control through independent and objective assurance and consulting activities. It uses a systematic and disciplined approached to evaluate and improve the effectiveness of risk management, control and governance process through the implementation of risk-based audit. The Internal Audit reports to the Audit Committee.
- COMPLIANCE OFFICE
Head: Fritzi Kay B. Simbulan
The Compliance Office is tasked to manage compliance processes. It is headed by the Chief Compliance Officer. The Compliance Office has the ability and authority to express and disclose compliance findings to the Board to whom it reports. It shall also have the authority to investigate any breaches or possible breaches to the compliance policy of the Bank.
The Compliance Office has ready access to information necessary to carry-out compliance responsibilities.
DIVIDENDS
The Bank has not declared nor paid any form of dividend during the year. Declaration of dividends shall be subject to existing laws and Bangko Sentral rules and regulations.
CONSUMER PROTECTION
BHF Rural Bank, Inc. recognizes the importance of customer protection in its financial dealings with clients. It fully supports the policy of the State and that of the Bangko Sentral Ng Pilipinas (BSP) to protect the interest of the consumers (customers), promote their welfare and to establish standards of conduct for the banking industry. Further, the Bank believes to the principle that the consumer is the life-blood of the Bank and for that reason, only the best services should be accorded to them.
For over two (2) decades since it was given authority to conduct banking services by the BSP, the Bank has shown so much concern and fairness to its clients whether small or big. It treats clients with utmost courtesy and committed to maintain their respect, trust and confidence.
The Board of Directors has the ultimate responsibility for the level of customer risk assumed by the Bank. Accordingly, the Board approves the Bank’s overall business strategies and significant policies, including those related to managing and taking customer risks. The Board provides clear guidance, develops and maintains sound customer protection risk management.
The Senior Management is tasked to implement programs to manage the customer compliance risks associated with the Bank’s business model. The Senior Management establishes and communicates strong awareness of, and need for, effective consumer protection risk controls and high ethical standards.
The Bank measures and analyses customer risks based on the frequency and severity of the risks. As adherence to consumer protection, the Bank sees to it that rights of clients are protected. The clients must have the right to information, right to choose, right to redress, right to education.
Right to information. The Bank provides clear and honest advertisement and promotion of its products and services. Product features, terms and conditions, benefits and even disadvantages are explained to clients so they can decide based on informed personal choice and guide them in their dealings with the Bank.
Right to choose. The Bank allows its clients to choose the type of deposits, loans and other services at competitive rates with an assurance of providing superb services.
Right to redress. BHF Rural Bank, Inc. acknowledges few instances of poor services extended to customers, such as; errors or mistakes committed by its personnel. In this regard, the Bank rectifies them and extends sincere apologies to the clients and refunds, pays or reimburses excess collection of loans, under payment of interest on deposits, among others.
Right to education. BHF Rural Bank, Inc. adequately educates its customers pertaining to features, terms, systems and procedures, and inherent risks of bank products and services, and his responsibilities as well.
The Bank has established its own policies to strengthen consumer protection especially on the disclosure and transparency, conflict of interest, protection of client information, fair treatment of customers, effective recourse, and consumer awareness.
Each BHF Bank Branches has its own Customer Assistance Officer (CAO). All clients are free to approach the CAO of the Branches for assistance, concerns, complaints and queries regarding the products, services and their other transactions with the Bank. Suggestion boxes are available in the Branches.
Contact numbers of the Branches are posted in the Branch and in the website which can be called by clients during banking hours, that is 9:00 am to 4:00 pm.
The Board of Directors has appointed the Audit Committee to supervise the consumer protection risk management system and the senior management to report on any consumer complaints. The Compliance Officer and the Internal Auditor is likewise mandated to report on the assessment of the status of customer complaints and the effectiveness and efficiency of the existing policies, procedures and controls related to consumer protection.
ORGANIZATION CHART
PRODUCTS AND SERVICES
BHF Rural Bank, Inc. offers loans and deposits that suit the needs of the locale it caters.
Loans:
Agrarian Reform Loans – This refers to loans which meet the qualification requirements for agrarian reform loans under Subsection X341.4 and X341.5 of the Manual of Regulations for Banks (MORB). This loan product aims to help farmers improve their livelihood by providing them capital to finance their crop production and other food commodities.
Other Agricultural Credit Loans – This refers to loans granted to the Agricultural Sector Other than “1” above. This loan mainly includes:
- Tunnel Vent Program (TVP) – which caters poultry contract growers who are granted approvals from reputable integrators for the construction of tunnel ventilated poultry houses and acquisition of poultry machineries and equipment for this business venture.
- Farmers, Fishermen, Poultry and Hog raisers, Cattle and Goat breeders who are in need of funds for fish, rice, corn and vegetables production in the province of Pangasinan and nearby provinces.
- Others
Small & Medium Enterprises Loan – Loans granted to entities involved in business activities within major sectors of the economy of which the loan proceeds is to be used in the improvement and furtherance of its business activities. SME are those entities whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated must have a value falling under the following categories:
- Small – More than P3 Million to P15 Million
- Medium – More than P15 Million to P100 Million
Housing Loan – this loan product primarily caters clients who are in need of funds for acquisition and/or construction of houses.
Auto/Chattel Loan – This loan helps individuals in the acquisition of motor vehicles/cars as well as individuals who wish to buy farm machineries for improved farm mechanization which is very popular in the country nowadays.
Salary Loans (Unsecured) – This salary-loan product is extended to DepEd-salaried employees.
Other loans – loans that cannot be classified under the forgoing classifications or which the purpose is for general consumption.
Out-of-territorial loans outside Pangasinan and La Union or main area of operations are granted on a case-to-case basis. Loans of higher amount are likewise catered to clients outside Pangasinan and La Union.
Deposits
Regular Savings Account – is an interest bearing savings deposit withdrawable upon accomplishment of withdrawal slip and presentation of passbook.
Time Deposit – is an interest bearing deposit with specific maturity date evidenced by a certificate issued by the Bank in the name of the depositor.
BRANCH WEBSITE
FACEBOOK PAGE
https://www.facebook.com/bhfruralbankincdagupancity/
OFFICES AND BRANCHES
HEAD OFFICE
2F BHF Bank Bldg., Mac Arthur Hi-way,
Dagupan City, Pangasinan
(075) 522-9079
(075) 529-5966
DAGUPAN CITY BRANCH
1F BHF Bank Bldg., Mac Arthur Hi-way,
Dagupan City, Pangasinan
(075) 529-1833
(075) 529-3307
LINGAYEN BRANCH
BHF Bank Bldg., Avenida Rizal East,
Lingayen Pangasinan
(075) 662-0446
(075) 529-2687
URDANETA CITY BRANCH
BHF Bank Bldg., Mc Arthur Hi-Way corner Manuel Roxas St.,
Urdaneta City, Pangasinan
(075) 204-0956
TAYUG BRANCH
BHF Bldg., Mabini St., Brgy. Poblacion,
Tayug, Pangasinan
(075) 636-6804
MANGATAREM BRANCH
Calvo St., Poblacion,
Mangatarem, Pangasinan
(075) 632-1295
ROSARIO (LA UNION) BRANCH
BHF Bldg., Barangay Subusub,
Rosario, La Union
(072) 687-1122
ALAMINOS CITY BRANCH
BHB Bank Bldg., Quezon Avenue,
Alaminos City, Pangasinan
(075) 633-0497
