Friendly Hills Bank Reports First Quarter Results
WHITTIER, Calif., May 12, 2020 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB: FHLB) reported results for the first quarter of 2020.
For the three month period ending March 31, 2020, the bank reported net income of $164,000 or $0.08 per diluted share of common stock. The bank reported net income of $301,000 or $0.15 per diluted share of common stock for the three months ended March 31, 2019.
As of March 31, 2020, the bank reported total assets of $162.4 million, a 3% increase from $158.3 million as of March 31, 2019. The bank’s loan portfolio, net of unearned income, increased 12% from $89.0 million as of March 31, 2019, to $99.6 million as of March 31, 2020. The portfolio remains diversified with $34.8 million or 35% in Commercial & Industrial Loans to local businesses (including $24.5 million in Owner Occupied Commercial Real Estate Loans), $40.1 million or 40% in Commercial Real Estate Loans to investors and $19.8 million or 20% in Residential Real Estate Loans to investors. The bank has an additional $19.6 million in unfunded loan commitments.
The bank’s overall deposit base has decreased 4% in the twelve months ended March 31, 2020, from $123.0 million as of March 31, 2019, to $117.8 million as of March 31, 2020. Non-interest bearing deposits remain a substantial part of the deposit base (44%), increasing from $46.7 million as of March 31, 2019, to $51.7 million as of March 31, 2020. During the same time period, interest-bearing deposits decreased from $76.3 million as of March 31, 2019, to $66.1 million on March 31, 2020.
At March 31, 2020, shareholders’ equity was $19.9 million and the bank’s total risk-based capital ratio was 18%, 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.
“Over the past twelve months the company has grown Book Value per Share by over 13% from $8.79 as of March 31, 2019, to $9.95 as of March 31, 2020,” commented Jeffrey K. Ball, Chief Executive Officer. “This growth is attributable to the selective expansion of our loan portfolio and consistent profitability which is reflective of a strong balance sheet. Current market conditions are highly unstable as a result of the COVID-19 pandemic situation with market interest rates moving into record low territory. This has a negative impact on interest rate margins and further emphasizes our consistent approach to loan underwriting with strong asset quality. It is too early to assess the impact of this situation on the overall economy. But we feel that the bank is well positioned for this continued uncertainty with a strong capital and liquidity position. During challenging times the value of community bank relationships are more emphasized and we are well positioned to seek selective growth opportunities while serving our local communities.”
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. For more information on the bank, please visit 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) | |||||||||||||
| 3/31/20 | 12/31/19 | 3/31/19 | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 3,325 | $ | 3,203 | $ | 4,852 | |||||||
| Interest bearing deposits with other financial institutions | 20,083 | 20,855 | 5,580 | ||||||||||
| Cash and Cash Equivalents | 23,408 | 24,058 | 10,432 | ||||||||||
| Investment securities available-for-sale | 29,543 | 32,778 | 51,911 | ||||||||||
| Investment securities held-to-maturity | 2,000 | 0 | 0 | ||||||||||
| Federal Home Loan Bank and other restricted stock | 2,705 | 2,705 | 2,590 | ||||||||||
| Loans, net of unearned income | 99,620 | 93,988 | 89,044 | ||||||||||
| Allowance for loan losses | (1,332 | ) | (1,332 | ) | (1,525 | ) | |||||||
| Net Loans | 98,288 | 92,656 | 87,519 | ||||||||||
| Premises and equipment, net | 532 | 313 | 634 | ||||||||||
| Bank Owned Life Insurance | 4,758 | 4,730 | 3,658 | ||||||||||
| Deferred tax asset | 162 | 19 | 548 | ||||||||||
| Accrued interest receivable and other assets | 1,000 | 1,175 | 1,028 | ||||||||||
| Total Assets | $ | 162,396 | $ | 158,434 | $ | 158,320 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Liabilities | |||||||||||||
| Deposits | |||||||||||||
| Noninterest-bearing deposits | $ | 51,684 | $ | 54,281 | $ | 46,693 | |||||||
| Interest-bearing deposits | 66,097 | 63,932 | 76,336 | ||||||||||
| Total Deposits | 117,781 | 118,213 | 123,029 | ||||||||||
| FHLB advances | 23,511 | 20,531 | 16,590 | ||||||||||
| Accrued interest payable and other liabilities | 1,229 | 644 | 1,147 | ||||||||||
| Total Liabilities | 142,521 | 139,388 | 140,766 | ||||||||||
| Shareholders’ Equity | |||||||||||||
| Common stock, no par value, 10,000,000 shares authorized: | |||||||||||||
| 1,997,993 shares issued and outstanding as of 3/31/19 | 15,958 | 15,958 | 15,958 | ||||||||||
| Additional paid-in-capital | 1,487 | 1,470 | 1,419 | ||||||||||
| Accumulated deficit | 1,824 | 1,660 | 858 | ||||||||||
| Accumulated other comprehensive income (loss) | 606 | (42 | ) | (681 | ) | ||||||||
| Total Shareholders’ Equity | 19,876 | 19,046 | 17,554 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 162,396 | $ | 158,434 | $ | 158,320 | |||||||
| Book Value Per Share | $ | 9.95 | $ | 9.53 | $ | 8.79 | |||||||
| Friendly Hills Bank | ||||||||
| Statements of Operations (Unaudited) | ||||||||
| (in thousands, except per share information) | ||||||||
| For the three | For the three | |||||||
| months ended | months ended | |||||||
| 3/31/20 | 3/31/19 | |||||||
| Interest Income | $ | 1,423 | $ | 1,518 | ||||
| Interest Expense | 178 | 138 | ||||||
| Net Interest Income | 1,245 | 1,380 | ||||||
| Provision for Loan Losses | 0 | 0 | ||||||
| Net Interest Income after Provision for Loan Losses | 1,245 | 1,380 | ||||||
| Noninterest Income | 137 | 126 | ||||||
| Noninterest Expense | 1,159 | 1,085 | ||||||
| Non-Recurring Items | 0 | 0 | ||||||
| Income before Provision for Income Taxes | 223 | 421 | ||||||
| (Provision) Benefit for Income Taxes | (59 | ) | (120 | ) | ||||
| Net Income | $ | 164 | $ | 301 | ||||
| Basic and Diluted Earnings Per Share | $ | 0.08 | $ | 0.15 | ||||
Contacts:
Jeffrey K. Ball (President & CEO)
Viktor Uehlinger (EVP & CFO)
(562) 947-1920
