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CST: 19/11/2019 04:47:13   

Friendly Hills Bank Reports Third Quarter Results

10 Days ago

WHITTIER, Calif., Nov. 08, 2019 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB: FHLB) reported results for the third quarter of 2019.

For the nine months period ending September 30, 2019, the bank reported net income of $933,000 or $0.47 per diluted share of common stock.  The bank reported net income of $587,000 or $0.30 per diluted share of common stock for the nine months ended September 30, 2018.    

As of September 30, 2019, the bank reported total assets of $160.2 million, a 3% increase from $155.4 million as of September 30, 2018.  The bank’s loan portfolio, net of unearned income, increased 32% from $78.0 million as of September 30, 2018, to $102.9 million as of September 30, 2019.  The portfolio remains diversified with $34.0 million or 33% in Commercial & Industrial Loans to local businesses (including $20.9 million in Owner Occupied Commercial Real Estate Loans), $43.2 million or 42% in Commercial Real Estate Loans to investors and $20.7 million or 20% in Residential Real Estate Loans to investors.  The bank has an additional $22.1 million in unfunded loan commitments.

The bank’s overall deposit base has decreased 1% from $120.5 million to $119.9 million in the twelve months ended September 30, 2019.  Non-interest bearing deposits remain a substantial part of the deposit base (45%), increasing from $50.1 million as of September 30, 2018, to $53.5 million as of September 30, 2019.  During the same time period, interest-bearing deposits decreased from $70.4 million as of September 30, 2018, to $66.4 million on September 30, 2019.  

At September 30, 2019, shareholders’ equity was $18.9 million and the bank’s total risk-based capital ratio was 19%, 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.

“We are pleased to report continued growth in our loan portfolio over the past quarter which is the primary contributor to the increase in earnings,” commented Jeffrey K. Ball, Chief Executive Officer.  “This growth has been achieved while maintaining a consistent underwriting approach to our loan portfolio with a continued focus on asset quality and a strong balance sheet.  Although deposits decreased slightly in comparison to a year ago, the composition of this funding base continues to be favorable with a large percentage of deposits in core deposits.  The bank has sufficient liquidity and capital to support the continued selective growth of the company.”

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 to provide the market with an alternative to the larger financial institutions in the area.  In addition to traditional banking services, Friendly Hills Bank also offers Business Services products which allow small-to-medium size businesses to operate more efficiently.  The bank is headquartered in Whittier, California with an additional branch office 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.

Contacts:                                                                                                                                        
Jeffrey K. Ball (President & CEO)                                                                                              
Viktor Uehlinger (EVP & CFO)                                                                                                   
(562) 947-1920

Friendly Hills Bank
Balance Sheets (Unaudited)
(in thousands, except per share information)
      9/30/19   12/31/18   9/30/18
ASSETS            
Cash and due from banks $   5,309     $  3,278     $    3,427  
Interest bearing deposits with other financial institutions   9,821       3,450       21,987  
    Cash and Cash Equivalents   15,130       6,728       25,414  
Investment securities available-for-sale   34,436       53,462       45,371  
Federal Home Loan Bank and other restricted stock   2,705       2,590       2,430  
Loans, net of unearned income   102,912       86,135       77,965  
Allowance for loan losses   (1,525 )     (1,525 )     (1,525 )
    Net Loans   101,387       84,610       76,440  
Premises and equipment, net   578       335         352  
Bank owned life insurance   4,702       3,637         3,616  
Deferred tax asset   305       177       808  
Accrued interest receivable and other assets   1,003       1,074       991  
    Total Assets $ 160,246     $ 152,613     $ 155,422  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Liabilities            
Deposits            
  Noninterest-bearing deposits $ 53,472     $   43,803     $   50,111  
  Interest-bearing deposits   66,370       78,438       70,395  
    Total Deposits   119,842       122,241       120,506  
FHLB advances   20,551       12,750       17,750  
Accrued interest payable and other liabilities   993       629       1,035  
    Total Liabilities   141,386         135,620        139,291  
Shareholders’ Equity          
  Common stock, no par value, 10,000,000 shares authorized:          
  1,997,993 shares issued and outstanding as of 9/30/19   15,958       15,958       15,958  
  1,979,993 shares issued and outstanding as of 12/31/18          
  Additional paid-in-capital   1,454       1,293       1,293  
  Accumulated deficit   1,490       557       237  
  Accumulated other comprehensive income (loss)   (42 )     (815 )     (1,357 )
    Total Shareholders’ Equity   18,860       16,993       16,131  
    Total Liabilities and Shareholders’ Equity $ 160,246     $ 152,613     $ 155,422  
               
Book Value Per Share $    9.44     $    8.58     $    8.15  



Friendly Hills Bank
Statements of Operations (Unaudited)
 (in thousands, except per share information)
           
      For the nine   For the nine
      months ended   months ended
      9/30/19   9/30/18
Interest Income $  4,632     $  4,017  
Interest Expense   478       342  
  Net Interest Income   4,154       3,675  
Provision for Loan Losses   0       0  
  Net Interest Income after Provision for Loan Losses     4,154          3,675     
                 
Noninterest Income   379       350  
Noninterest Expense   3,280       3,214  
Non-Recurring Items   50       1  
Income before Provision for Income Taxes   1,303       812  
(Provision) Benefit for Income Taxes   (370 )     (225 )
  Net Income $    933     $    587  
           
Basic and Diluted Earnings Per Share $    0.47     $  0.30  

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