WHITTIER, Calif., Nov. 08, 2019 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB: FHLB) reported results for the third quarter of 2019.

For the nine months period ending September 30, 2019, the bank reported net income of $933,000 or $0.47 per diluted share of common stock.  The bank reported net income of $587,000 or $0.30 per diluted share of common stock for the nine months ended September 30, 2018.    

As of September 30, 2019, the bank reported total assets of $160.2 million, a 3% increase from $155.4 million as of September 30, 2018.  The bank’s loan portfolio, net of unearned income, increased 32% from $78.0 million as of September 30, 2018, to $102.9 million as of September 30, 2019.  The portfolio remains diversified with $34.0 million or 33% in Commercial & Industrial Loans to local businesses (including $20.9 million in Owner Occupied Commercial Real Estate Loans), $43.2 million or 42% in Commercial Real Estate Loans to investors and $20.7 million or 20% in Residential Real Estate Loans to investors.  The bank has an additional $22.1 million in unfunded loan commitments.

The bank’s overall deposit base has decreased 1% from $120.5 million to $119.9 million in the twelve months ended September 30, 2019.  Non-interest bearing deposits remain a substantial part of the deposit base (45%), increasing from $50.1 million as of September 30, 2018, to $53.5 million as of September 30, 2019.  During the same time period, interest-bearing deposits decreased from $70.4 million as of September 30, 2018, to $66.4 million on September 30, 2019.  

At September 30, 2019, shareholders’ equity was $18.9 million and the bank’s total risk-based capital ratio was 19%, 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.

“We are pleased to report continued growth in our loan portfolio over the past quarter which is the primary contributor to the increase in earnings,” commented Jeffrey K. Ball, Chief Executive Officer.  “This growth has been achieved while maintaining a consistent underwriting approach to our loan portfolio with a continued focus on asset quality and a strong balance sheet.  Although deposits decreased slightly in comparison to a year ago, the composition of this funding base continues to be favorable with a large percentage of deposits in core deposits.  The bank has sufficient liquidity and capital to support the continued selective growth of the company.”

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 to provide the market with an alternative to the larger financial institutions in the area.  In addition to traditional banking services, Friendly Hills Bank also offers Business Services products which allow small-to-medium size businesses to operate more efficiently.  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.

Contacts:                                                                                                                                        
Jeffrey K. Ball (President & CEO)                                                                                              
Viktor Uehlinger (EVP & CFO)                                                                                                   
(562) 947-1920

Friendly Hills Bank
Balance Sheets (Unaudited)
(in thousands, except per share information)
   9/30/19 12/31/18 9/30/18
ASSETS      
Cash and due from banks$  5,309  $ 3,278  $   3,427 
Interest bearing deposits with other financial institutions 9,821   3,450   21,987 
  Cash and Cash Equivalents 15,130   6,728   25,414 
Investment securities available-for-sale 34,436   53,462   45,371 
Federal Home Loan Bank and other restricted stock 2,705   2,590   2,430 
Loans, net of unearned income 102,912   86,135   77,965 
Allowance for loan losses (1,525)  (1,525)  (1,525)
  Net Loans 101,387   84,610   76,440 
Premises and equipment, net 578   335     352 
Bank owned life insurance 4,702   3,637     3,616 
Deferred tax asset 305   177   808 
Accrued interest receivable and other assets 1,003   1,074   991 
  Total Assets$160,246  $152,613  $155,422 
        
LIABILITIES AND SHAREHOLDERS’ EQUITY     
Liabilities      
Deposits      
 Noninterest-bearing deposits$53,472  $  43,803  $  50,111 
 Interest-bearing deposits 66,370   78,438   70,395 
  Total Deposits 119,842   122,241   120,506 
FHLB advances 20,551   12,750   17,750 
Accrued interest payable and other liabilities 993   629   1,035 
  Total Liabilities 141,386     135,620    139,291 
Shareholders’ Equity     
 Common stock, no par value, 10,000,000 shares authorized:     
 1,997,993 shares issued and outstanding as of 9/30/19 15,958   15,958   15,958 
 1,979,993 shares issued and outstanding as of 12/31/18     
 Additional paid-in-capital 1,454   1,293   1,293 
 Accumulated deficit 1,490   557   237 
 Accumulated other comprehensive income (loss) (42)  (815)  (1,357)
  Total Shareholders’ Equity 18,860   16,993   16,131 
  Total Liabilities and Shareholders’ Equity$160,246  $152,613  $155,422 
        
Book Value Per Share$   9.44  $   8.58  $   8.15 



Friendly Hills Bank
Statements of Operations (Unaudited)
 (in thousands, except per share information)
      
   For the nine For the nine
   months ended months ended
   9/30/19 9/30/18
Interest Income$ 4,632  $ 4,017 
Interest Expense 478   342 
 Net Interest Income 4,154   3,675 
Provision for Loan Losses 0   0 
 Net Interest Income after Provision for Loan Losses   4,154      3,675    
         
Noninterest Income 379   350 
Noninterest Expense 3,280   3,214 
Non-Recurring Items 50   1 
Income before Provision for Income Taxes 1,303   812 
(Provision) Benefit for Income Taxes (370)  (225)
 Net Income$   933  $   587 
      
Basic and Diluted Earnings Per Share$   0.47  $ 0.30