Friendly Hills Bank Reports First Quarter Results


WHITTIER, Calif., May 04, 2016 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB:FHLB) reported results for the first quarter of 2016.

For the three month period ending March 31, 2016, the bank reported net income of $80,000 or $0.04 per diluted share of common stock.  The bank reported net income of $65,000 or $0.03 per diluted share of common stock for the three months ended March 31, 2015.  This figure includes a $13,000 increase in the value of the interest rate caps and a $31,000 net gain on securities sold. 

As of March 31, 2016, the bank reported total assets of $127.0 million, an 8% increase from $117.0 million as of March 31, 2015.  The bank’s loan portfolio, net of unearned income, increased 7% from $64.9 million as of March 31, 2015, to $69.4 million as of March 31, 2015.  The portfolio remains diversified with $33.1 million or 48% in Commercial & Industrial Loans to local businesses (including $19.6 million in Owner Occupied Commercial Real Estate Loans), $17.5 million or 25% in Residential Real Estate Loans to investors and $12.7 million or 18% in Commercial Real Estate Loans to investors.  The bank has an additional $23.7 million in unfunded loan commitments.

The bank’s overall deposit base has increased 12% in the twelve months ended March 31, 2016, from $89.5 million as of March 31, 2015, to $100.0 million as of March 31, 2016.  Non-interest bearing deposits continue to form a substantial part of the deposit base (46%), growing from $38.7 million to $46.0 million as of March 31, 2016.  During the same time period interest-bearing deposits increased from $50.8 million to $54.0 million on March 31, 2016.   The bank has no deposits which were sourced through brokers or other wholesale funding sources. 

At March 31, 2016, shareholders’ equity was $15.5 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 continues to selectively grow its loan portfolio in the midst of a highly competitive market,” commented Jeffrey K. Ball, Chief Executive Officer. “While market conditions suggest lower underwriting standards by many lenders we remain committed to the standards which have preserved the strong capital position of the bank. This is consistent with our strategic focus on long term shareholder value and reflects our continued concern about the instability of the overall economy. Asset quality remains strong and the bank is well positioned for future growth opportunities including the development of our payroll services product which provides for more diversification of revenue sources during this sustained period of low interest rates.”

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 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.



Friendly Hills Bank
Balance Sheets (Unaudited)
(in thousands, except per share information)
   

3/31/16
 

12/31/15
 

3/31/15
ASSETS      
Cash and due from banks$  3,645  $  3,904  $  3,598 
Interest bearing deposits with other financial institutions 5,802   4,529   4,966 
Cash and Cash Equivalents 9,447   8,433   8,564 
Investment securities available-for-sale 42,226   43,312   37,961 
Federal Home Loan Bank stock 753   753   677 
Federal Reserve Bank stock 457   455   393 
Loans, net of unearned income 69,393   67,876   64,919 
Allowance for loan losses (1,595)  (1,595)  (1,595)
Net Loans 67,798   66,281   63,324 
Premises and equipment, net 205   211     322 
Accrued interest receivable and other assets 6,068   6,134   5,775 
Total Assets$126,954  $125,579  $117,016 
        
LIABILITIES AND SHAREHOLDERS’ EQUITY     
Liabilities      
Deposits      
Noninterest-bearing deposits$46,022  $  42,531  $  38,731 
Interest-bearing deposits 53,970   54,354   50,814 
Total Deposits 99,992   96,885   89,545 
FHLB advances 11,000   13,000   11,750 
Accrued interest payable and other liabilities 474   452   397 
Total Liabilities 111,466     110,337    101,692 
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 (1,571)  (1,651)  (1,980)
Accumulated other comprehensive income (loss) 10   (156)  255 
Total Shareholders’ Equity 15,488   15,242   15,324 
Total Liabilities and Shareholders’ Equity$126,954  $125,579  $117,016 
        
Book Value Per Share$  7.99  $  7.86  $  7.90 
            


Friendly Hills Bank
Statements of Operations (Unaudited)
 (in thousands, except per share information)
      
   For the three For the three
   months ended months ended
   3/31/16 3/31/15
Interest Income$ 1,091  $ 1,041 
Interest Expense 74   82 
Net Interest Income 1,017   959 
Provision for Loan Losses 0   0 
Net Interest Income after Provision for Loan Losses   1,017      959 
        
Noninterest Income 119   66 
Noninterest Expense 1,012   973 
Non-Recurring Items 0   44 
Income before Provision for Income Taxes 124   96 
(Provision) Benefit for Income Taxes (44)  (31)
Net Income$  80  $   65 
      
Basic and Diluted Earnings Per Share$ 0.04  $ 0.03 
        

 


            

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