WHITTIER, Calif., Aug. 14, 2020 (GLOBE NEWSWIRE) -- Friendly Hills Bank (the “bank”) (OTCBB: FHLB) reported results for the second quarter of 2020.
For the six month period ending June 30, 2020, the bank reported net income of $388,000 or $0.19 per diluted share of common stock. This figure includes a $150,000 provision for loan losses. The bank reported net income of $619,000 or $0.31 per diluted share of common stock for the six months ended June 30, 2019.
As of June 30, 2020, the bank reported total assets of $235.0 million, a 50% increase from $157.0 million as of June 30, 2019. The bank’s loan portfolio, net of unearned income, increased 43% from $98.2 million as of June 30, 2019, to $140.6 million as of June 30, 2020. This figure includes $47.7 million in Paycheck Protection Program loans. The portfolio remains diversified with $79.8 million or 56% in Commercial & Industrial Loans to local businesses (including $23.6 million in Owner Occupied Commercial Real Estate Loans), $37.4 million or 26% in Commercial Real Estate Loans to investors and $19.7 million or 14% in Residential Real Estate Loans to investors. The bank has an additional $21.9 million in unfunded loan commitments.
The bank’s overall deposit base has increased 37% in the twelve months ended June 30, 2020, from $116.0 million as of June 30, 2019, to $159.0 million as of June 30, 2020. Non-interest bearing deposits remain a substantial part of the deposit base (50%), increasing from $46.6 million as of June 30, 2019, to $79.2 million as of June 30, 2020. During the same time period, interest-bearing deposits increased from $69.4 million as of June 30, 2019, to $79.8 million on June 30, 2020.
At June 30, 2020, shareholders’ equity was $19.9 million and the bank’s total risk-based capital ratio was 20%, 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.
“Market conditions continue to be very unstable as a result of the COVID-19 pandemic situation,” commented Jeffrey K. Ball, Chief Executive Officer. “The company has been very responsive to the needs of its clients and local businesses by being an active participant in the Paycheck Protection Program which is a primary factor in the loan growth we have experienced in the last few months. At the same time we have experienced significant growth in deposits as consumers and businesses look for safe places to hold their available funds. During more challenging times we often see business owners finding greater value in community bank relationships which we believe provides opportunities for selective growth. Interest rate margins are a primary driver of profitability and are expected to remain compressed for the foreseeable future. Government relief programs have provided substantial support for the local market but in recognition of the heightened risk environment we have prudently increased our loan loss reserves as capital and liquidity remain strong and well above regulatory guidelines.”
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.
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) | |||||||||||||
| 6/30/20 | 12/31/19 | 6/30/19 | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 3,999 | $ | 3,203 | $ | 4,558 | |||||||
| Interest bearing deposits with other financial institutions | 54,754 | 20,855 | 4,055 | ||||||||||
| Cash and Cash Equivalents | 58,753 | 24,058 | 8,613 | ||||||||||
| Investment securities available-for-sale | 26,355 | 32,778 | 43,476 | ||||||||||
| Investment securities held-to-maturity | 2,000 | 0 | 0 | ||||||||||
| Federal Home Loan Bank and other restricted stock | 2,632 | 2,705 | 2,705 | ||||||||||
| Loans, net of unearned income | 140,643 | 93,988 | 98,163 | ||||||||||
| Allowance for loan losses | (1,464 | ) | (1,332 | ) | (1,525 | ) | |||||||
| Net Loans | 139,179 | 92,656 | 96,638 | ||||||||||
| Premises and equipment, net | 502 | 313 | 614 | ||||||||||
| Bank Owned Life Insurance | 4,786 | 4,730 | 3,679 | ||||||||||
| Deferred tax asset | (229 | ) | 19 | 236 | |||||||||
| Accrued interest receivable and other assets | 1,059 | 1,175 | 1,008 | ||||||||||
| Total Assets | $ | 235,037 | $ | 158,434 | $ | 156,969 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Liabilities | |||||||||||||
| Deposits | |||||||||||||
| Noninterest-bearing deposits | $ | 79,226 | $ | 54,281 | $ | 46,483 | |||||||
| Interest-bearing deposits | 79,751 | 63,932 | 69,492 | ||||||||||
| Total Deposits | 158,977 | 118,213 | 115,975 | ||||||||||
| Borrowed Funds | 55,279 | 20,531 | 21,570 | ||||||||||
| Accrued interest payable and other liabilities | 868 | 644 | 934 | ||||||||||
| Total Liabilities | 215,124 | 139,388 | 138,479 | ||||||||||
| Shareholders’ Equity | |||||||||||||
| Common stock, no par value, 10,000,000 shares authorized: | |||||||||||||
| 2,006,393 shares issued and outstanding as of 6/30/20 1,997,993 shares issued and outstanding as of 6/30/19 | 15,958 | 15,958 | 15,958 | ||||||||||
| Additional paid-in-capital | 1,537 | 1,470 | 1,436 | ||||||||||
| Accumulated earnings | 2,047 | 1,660 | 1,176 | ||||||||||
| Accumulated other comprehensive income (loss) | 371 | (42 | ) | (80 | ) | ||||||||
| Total Shareholders’ Equity | 19,913 | 19,046 | 18,490 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 235,037 | $ | 158,434 | $ | 156,969 | |||||||
| Book Value Per Share | $ | 9.92 | $ | 9.53 | $ | 9.25 | |||||||
| Friendly Hills Bank | |||||||||
| Statements of Operations (Unaudited) | |||||||||
| (in thousands, except per share information) | |||||||||
| For the six | For the six | ||||||||
| months ended | months ended | ||||||||
| 6/30/20 | 6/30/19 | ||||||||
| Interest Income | $ | 2,825 | $ | 3,040 | |||||
| Interest Expense | 373 | 289 | |||||||
| Net Interest Income | 2,452 | 2,751 | |||||||
| Provision for Loan Losses | 150 | 0 | |||||||
| Net Interest Income after Provision for Loan Losses | 2,302 | 2,751 | |||||||
| Noninterest Income | 328 | 247 | |||||||
| Noninterest Expense | 2,058 | 2,177 | |||||||
| Non-Recurring Items | 0 | 44 | |||||||
| Income before Provision for Income Taxes | 572 | 865 | |||||||
| (Provision) Benefit for Income Taxes | (184 | ) | (246 | ) | |||||
| Net Income | $ | 388 | $ | 619 | |||||
| Basic and Diluted Earnings Per Share | $ | 0.19 | $ | 0.31 | |||||