Friendly Hills Bank Reports Second Quarter Results; Announces David B. Quizon as New EVP/Chief Credit Officer

WHITTIER, Calif., Aug. 05, 2016 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the second quarter of 2016.

For the six month period ending June 30, 2016, the bank reported net income of $206,000 or $0.11 per diluted share of common stock. This figure includes a $36,000 net gain on securities sold. The bank reported net income of $174,000 or $0.09 per diluted share of common stock for the six months ended June 30, 2015. This figure includes a $22,000 increase in the value of the interest rate caps, a $31,000 net gain on securities sold, and a $43,000 gain on other real estate owned. The bank also announced that David B. Quizon has joined the management team as Executive Vice President/Chief Credit Officer following the retirement of L.E. “Bill” Thackery on June 30, 2016.

As of June 30, 2016, the bank reported total assets of $141.7 million, a 9% increase from $129.5 million as of June 30, 2015. The bank’s loan portfolio, net of unearned income, increased 16% from $67.8 million as of June 30, 2015, to $78.3 million as of June 30, 2016. The portfolio remains diversified with $37.3 million or 48% in Commercial & Industrial Loans to local businesses (including $23.0 million in Owner Occupied Commercial Real Estate Loans), $17.3 million or 22% in Residential Real Estate Loans to investors and $16.8 million or 22% in Commercial Real Estate Loans to investors. The bank has an additional $21.5 million in unfunded loan commitments.

The bank’s overall deposit base has increased 11% in the twelve months ended June 30, 2016, from $100.9 million as of June 30, 2015, to $112.3 million as of June 30, 2016. Non-interest bearing deposits continue to form a substantial part of the deposit base (51%), growing from $47.2 million to $57.7 million as of June 30, 2016. During the same time period interest-bearing deposits increased from $53.7 million to $54.6 million on June 30, 2016. The bank has no deposits which were sourced through brokers or other wholesale funding sources.

At June 30, 2016, shareholders’ equity was $15.8 million and the bank’s total risk-based capital ratio was 17%, 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.

“The bank was able to recognize strong growth in the loan portfolio while maintaining our strong underwriting standards in a market which remains highly competitive,” commented Jeffrey K. Ball, Chief Executive Officer. “This growth is expected to enhance our Net Interest Margin. Our deposit base remains strong with continued volatility which is attributable to having such a large percentage of core deposits. We are also pleased to welcome David Quizon to our team as Chief Credit Officer. David brings an extensive amount of experience in many aspects of commercial credit with an appreciation for the unique requirements our clients expect from us as a community bank. He is taking an important role following the retirement of Bill Thackery who we wish to thank for his many years of dedicated service in the establishment and development of Friendly Hills Bank as both an executive officer and a founding director.”

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)
6/30/16 12/31/15 6/30/15
Cash and due from banks$ 3,516 $ 3,904 $ 4,058
Interest bearing deposits with other financial institutions 22,088 4,529 9,515
Cash and Cash Equivalents 25,604 8,433 13,573
Investment securities available-for-sale 31,912 43,312 42,030
Federal Home Loan Bank stock 779 753 753
Federal Reserve Bank stock 457 455 455
Loans, net of unearned income 78,334 67,876 67,796
Allowance for loan losses (1,525) (1,595) (1,595)
Net Loans 76,809 66,281 66,201
Premises and equipment, net 234 211 288
Accrued interest receivable and other assets 5,877 6,134 6,180
Total Assets$141,672 $125,579 $129,480
Noninterest-bearing deposits$57,716 $ 42,531 $ 47,207
Interest-bearing deposits 54,614 54,354 53,672
Total Deposits 112,330 96,885 100,879
FHLB advances 13,000 13,000 13,000
Accrued interest payable and other liabilities 542 452 466
Total Liabilities 125,872 110,337 114,345
Shareholders’ Equity
Common stock, no par value, 10,000,000 shares authorized:
1,939,193 shares issued and outstanding 15,958 15,958 15,958
Additional paid-in-capital 1,091 1,091 1,091
Accumulated deficit (1,445) (1,651) (1,871)
Accumulated other comprehensive income (loss) 196 (156) (43)
Total Shareholders’ Equity 15,800 15,242 15,135
Total Liabilities and Shareholders’ Equity$141,672 $125,579 $129,480
Book Per Share$ 8.15 $ 7.86 $ 7.80

Friendly Hills Bank
Statements of Operations (Unaudited)
(in thousands, except per share information)
For the six For the six
months ended months ended
6/30/16 6/30/15
Interest Income$ 2,205 $ 2,128
Interest Expense (153) (159)
Net Interest Income 2,052 1,969
Provision for Loan Losses 0 0
Net Interest Income after Provision for Loan Losses 2,052 1,969
Noninterest Income 229 177
Noninterest Expense (1,992) (1,974)
Non-Recurring Items 36 96
Income before Provision for Income Taxes 325 268
(Provision) Benefit for Income Taxes (119) (94)
Net Income$ 206 $ 174
Basic and Diluted Earnings Per Share$ 0.11 $ 0.09

Contacts: Jeffrey K. Ball (President & CEO) Daniel L. Erickson (EVP & CFO) (562) 947-1920

Source:Friendly Hills Bank