Friendly Hills Bank Reports Fourth Quarter Results
WHITTIER, Calif., Feb. 12, 2021 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “Company”) (OTCBB: FHLB) reported results for the fourth quarter of 2020.
For the twelve month period ending December 31, 2020, the Company reported net income of $1.0 million or $0.51 per diluted share of common stock. This figure includes a $150,000 provision for loan losses. The Company reported net income of $1.1 million or $0.55 per diluted share of common stock for the twelve months ended December 31, 2019, which included a $125,000 provision for loan losses.
As of December 31, 2020, the Company reported total assets of $204.4 million, a 29% increase from $158.4 million as of December 31, 2019. The Company’s loan portfolio, net of unearned income, increased 31% from $94.0 million as of December 31, 2019, to $123.2 million as of December 31, 2020. This figure includes $28.8 million in Paycheck Protection Program loans. The portfolio remains diversified with $59.2 million or 48% in Commercial & Industrial Loans to local businesses (including $23.5 million in Owner Occupied Commercial Real Estate Loans), $20.7 million or 17% in Residential Real Estate Loans to investors and $39.4 million or 32% in Commercial Real Estate Loans to investors. The Company has an additional $20.9 million in unfunded loan commitments.
The Company’s overall deposit base has increased 37% in the twelve months ended December 31, 2020, from $118.2 million as of December 31, 2019, to $161.5 million as of December 31, 2020. Non-interest bearing deposits remain a substantial part of the deposit base (49%), increasing from $54.3 million to $79.0 million as of December 31, 2020. During the same time period, interest-bearing deposits increased from $63.9 million to $82.5 million on December 31, 2020. The Company has no deposits which were sourced through brokers.
At December 31, 2020, shareholders’ equity was $20.4 million and the Company’s total risk-based capital ratio was 20%, significantly exceeding the “well-capitalized” level of 10% prescribed under regulatory requirements. Book value per share increased 7% from $9.53 as of December 31, 2019, to $10.18 per share as of December 31, 2020. The Company also continues to maintain a substantial liquidity position, which is supplemented by the availability of collateralized borrowings and other potential sources of liquidity.
“We are pleased to report record growth and continued profitability for the past year,” commented Jeffrey K. Ball, Chief Executive Officer. “Through the COVID-19 pandemic, we have focused on maintaining a strong balance sheet. That strength is reflected in our ability to accommodate the recent growth in deposits without the need for additional capital. We raised our loan loss reserves during the year in response to the uncertainty caused by the pandemic but asset quality continues to remain strong. Profitability related to the growth in deposits has been offset by narrowing interest rate margins, which are the result of current monetary policies, which are outside of our control and expected to continue for the near-term. During the past year, the Bank was a local leader in the Paycheck Protection Program, which has proven to be essential for many of our local businesses and we are continuing that leadership into the newest round of funding for that government loan program.”
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 Company 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 Company is headquartered in Whittier, California with an additional branch office in Santa Fe Springs, California. For more information on the Company, 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 Company, 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 Company'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) | |||||||||||
12/31/20 | 12/31/19 | ||||||||||
| ASSETS | |||||||||||
| Cash and due from Banks | $ | 2,596 | $ | 3,203 | |||||||
| Interest bearing deposits with other financial institutions | 48,316 | 20,855 | |||||||||
| Cash and Cash Equivalents | 50,912 | 24,058 | |||||||||
| Investment securities available-for-sale | 20,070 | 32,778 | |||||||||
| Investment securities held-to-maturity | 2,000 | 0 | |||||||||
| Federal Home Loan Bank and other restricted stock | 2,632 | 2,705 | |||||||||
| Loans, net of unearned income | 123,230 | 93,988 | |||||||||
| Allowance for loan losses | (1,464 | ) | (1,332 | ) | |||||||
| Net Loans | 121,766 | 92,656 | |||||||||
| Premises and equipment, net | 851 | 313 | |||||||||
| Bank Owned Life Insurance | 4,843 | 4,730 | |||||||||
| Deferred tax asset | 154 | 19 | |||||||||
| Accrued interest receivable and other assets | 1,134 | 1,175 | |||||||||
| Total Assets | $ | 204,362 | $ | 158,434 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
| Deposits | |||||||||||
| Noninterest-bearing deposits | $ | 78,997 | $ | 54,281 | |||||||
| Interest-bearing deposits | 82,532 | 63,932 | |||||||||
| Total Deposits | 161,529 | 118,213 | |||||||||
| Borrowed Funds | 21,111 | 20,531 | |||||||||
| Accrued interest payable and other liabilities | 1,288 | 644 | |||||||||
| Total Liabilities | 183,928 | 139,388 | |||||||||
| Shareholders’ Equity | |||||||||||
| Common stock, no par value, 10,000,000 shares authorized: | |||||||||||
| 2,006,393 shares issued and outstanding as of 12/31/20 | 15,958 | 15,958 | |||||||||
| 1,997,993 shares issued and outstanding as of 12/31/19 | |||||||||||
| Additional paid-in-capital | 1,570 | 1,470 | |||||||||
| Accumulated deficit | 2,682 | 1,660 | |||||||||
| Accumulated other comprehensive income (loss) | 224 | (42 | ) | ||||||||
| Total Shareholders’ Equity | 20,434 | 19,046 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 204,362 | $ | 158,434 | |||||||
| Book Value Per Share | $ | 10.18 | $ | 9.53 | |||||||
| Friendly Hills Bank | |||||||||
| Statements of Operations (Unaudited) | |||||||||
| (in thousands, except per share information) | |||||||||
| For the twelve | For the twelve | ||||||||
| months ended | months ended | ||||||||
| 12/31/20 | 12/31/19 | ||||||||
| Interest Income | $ | 6,167 | $ | 6,144 | |||||
| Interest Expense | 735 | 656 | |||||||
| Net Interest Income | 5,432 | 5,488 | |||||||
| Provision for Loan Losses | 150 | 125 | |||||||
| Net Interest Income after Provision for Loan Losses | 5,282 | 5,363 | |||||||
| Noninterest Income | 604 | 537 | |||||||
| Noninterest Expense | 4,477 | 4,416 | |||||||
| Non-Recurring Items | 0 | 50 | |||||||
| Income before Provision for Income Taxes | 1,409 | 1,534 | |||||||
| (Provision) Benefit for Income Taxes | (387 | ) | (431 | ) | |||||
| Net Income | $ | 1,022 | $ | 1,103 | |||||
| Basic and Diluted Earnings Per Share | $ | 0.51 | $ | 0.55 | |||||
Contacts:
Jeffrey K. Ball (President & CEO)
Viktor Uehlinger (EVP & CFO)
(562) 947-1920
