Friendly Hills Bank Reports First Quarter Results

WHITTIER, Calif., May 05, 2017 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the first quarter of 2017.

For the three month period ending March 31, 2017, the bank reported net income of $162,000 or $0.08 per diluted share of common stock. The bank reported net income of $80,000 or $0.04 per diluted share of common stock for the three months ended March 31, 2016.

As of March 31, 2017, the bank reported total assets of $155.7 million, a 23% increase from $127.0 million as of March 31, 2016. The bank’s loan portfolio, net of unearned income, increased 20% from $69.4 million as of March 31, 2016, to $83.0 million as of March 31, 2017. The portfolio remains diversified with $30.5 million or 37% in Commercial & Industrial Loans to local businesses (including $18.5 million in Owner Occupied Commercial Real Estate Loans), $22.6 million or 27% in Residential Real Estate Loans to investors and $24.0 million or 29% in Commercial Real Estate Loans to investors. The bank has an additional $23.1 million in unfunded loan commitments.

The bank’s overall deposit base has increased 23% in the twelve months ended March 31, 2017, from $100.0 million as of March 31, 2016, to $123.2 million as of March 31, 2017. Non-interest bearing deposits continue to form a substantial part of the deposit base (42%), growing from $46.0 million as of March 31, 2016, to $51.5 million as of March 31, 2017. During the same time period interest-bearing deposits increased from $54.0 million as of March 31, 2016, to $71.7 million on March 31, 2017. The bank has no deposits which were sourced through brokers or other wholesale funding sources.

At March 31, 2017, shareholders’ equity was $16.0 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 is off to a strong start this year with continued growth in loans and deposits,” commented Jeffrey K. Ball, Chief Executive Officer. “We have always been focused on the strength and quality of our balance sheet with consistent loan underwriting and an emphasis on core deposits. We believe this strategy, coupled with our focus on increasing fee income through our payroll division, will serve to continue building long-term shareholder value while providing a sound business alternative for the markets we serve.”

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)
3/31/17 12/31/16 3/31/16
Cash and due from banks$ 3,872 $ 4,747 $ 3,645
Interest bearing deposits with other financial institutions 21,868 14,818 5,802
Cash and Cash Equivalents 25,740 19,565 9,447
Investment securities available-for-sale 40,883 42,183 42,226
Federal Home Loan Bank stock 779 779 753
Federal Reserve Bank stock 476 474 457
Loans, net of unearned income 82,965 74,986 69,393
Allowance for loan losses (1,525) (1,525) (1,595)
Net Loans 81,440 73,461 67,798
Premises and equipment, net 285 244 205
Accrued interest receivable and other assets 6,077 6,156 6,068
Total Assets$155,680 $142,862 $126,954
Noninterest-bearing deposits$51,508 $ 47,517 $ 46,022
Interest-bearing deposits 71,683 68,012 53,970
Total Deposits 123,191 115,529 99,992
FHLB advances 16,000 11,000 11,000
Accrued interest payable and other liabilities 446 467 474
Total Liabilities 139,637 126,996 111,466
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 (783) (946) (1,571)
Accumulated other comprehensive income (loss) (223) (237) 10
Total Shareholders’ Equity 16,043 15,866 15,488
Total Liabilities and Shareholders’ Equity$155,680 $142,862 $126,954
Book Value Per Share$ 8.27 $ 8.18 $ 7.99

Friendly Hills Bank
Statements of Operations (Unaudited)
(in thousands, except per share information)
For the three For the three
months ended months ended
3/31/17 3/31/16
Interest Income $ 1,210 $ 1,091
Interest Expense 83 74
Net Interest Income 1,127 1,017
Provision for Loan Losses 0 0
Net Interest Income after Provision for Loan Losses 1,127 1,017
Noninterest Income 133 119
Noninterest Expense 996 1,012
Income before Provision for Income Taxes 264 124
(Provision) Benefit for Income Taxes (102) (44)
Net Income $ 162 $ 80
Basic and Diluted Earnings Per Share $ 0.08 $ 0.04

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

Source:Friendly Hills Bank