Friendly Hills Bancorp Announces Hiring of Chief Executive Officer and Settlement With Shareholder Frank Kavanaugh

Rhea-AI Summary

Friendly Hills Bancorp (FHLB) announced the appointment of Nathan Rogge as President and CEO. The restructuring also led to a reformed Board of Directors, now comprising nine members. Frank Kavanaugh, a shareholder, has withdrawn all legal actions against the Company and the Bank as part of a Settlement Agreement. Rogge, who previously led Bank of Southern California, aims to enhance the bank's reputation as a business-friendly institution, focusing on growth and community services.

Positive

• Appointment of Nathan Rogge as President and CEO may lead to enhanced strategic direction.
• Restructuring of the Board of Directors to nine members could improve governance.
• Withdrawal of litigation by Frank Kavanaugh signals a resolution of past conflicts.

Negative

• None.

WHITTIER, Calif., Dec. 22, 2021 (GLOBE NEWSWIRE) -- Friendly Hills Bancorp (OTCBB: FHLB) (the “Company”), the parent company of Friendly Hills Bank (the “Bank”), announced today that Mr. Nathan Rogge has been appointed the Company’s and the Bank’s President and CEO. The Company, the Bank and Mr. Frank Kavanaugh, a shareholder, also jointly announced that they have entered into a Settlement Agreement pursuant to which the Company and the Bank have restructured their Board of Directors to nine members consisting of Jason Baker, Jeffrey Ball, Mercedes Broening, Richard Casford, William C. Greenbeck, Joe Matranga, Christopher Naghibi, Sara Nofeliyan and Nathan Rogge. Mr. Matranga will serve as Chairman and Mr. Ball will serve as Vice Chairman. As part of the agreement, Mr. Kavanaugh has agreed to withdraw all actions against the Company and the Bank.

“We are pleased to welcome Mr. Rogge to the Friendly Hills team,” stated Mr. Ball. “We have tremendous confidence in his ability to grow the Company while maintaining the high level of service and dedication to our communities that Friendly Hills Bank has become known for.”

Mr. Rogge commented: “Friendly Hills has a reputation for being a “business friendly” bank. I have worked in Southern California for most of my banking career, and I am excited to continue to grow this bank into the “bank of choice” for businesses in Southern California. This is a great time to be in community banking. After the last few years, businesses realize they can count on community banks like Friendly Hills. I know we can continue to build a solid company that helps the communities we serve, and provides value to our shareholders.”

“I appreciate the board’s focus on a strong replacement for Mr. Ball in Mr. Rogge. Their cooperation through a potentially adversarial process is a reflection of their individual commitment to the local community and the legacy of Friendly Hills Bank,” commented Mr. Kavanaugh. “I am confident in the direction of the Company with Mr. Rogge as the President/Chief Executive Officer.”

Prior to coming to Friendly Hills Bank, Mr. Rogge was the President and CEO for 15 years at Bank of Southern California where he took a 2 branch, $40 million bank under a regulatory order and turned it into a $1.5 billion bank with 13 locations throughout Southern California. Before that he was with First Republic Bank where he ran the Business Banking Group.

ABOUT FRIENDLY HILLS BANK
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 additional branch offices in Orange, Redlands and Santa Fe Springs, California. For more information on the Bank, please visit www.friendlyhillsbank.com or call 562-947-1920.

FORWARD-LOOKING STATEMENTS
This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and Friendly Hills Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: Friendly Hills Bank’s ability to (i) successfully realize the benefits of the branch acquisition, including customer acquisition and retention, (ii) identify a new Chief Executive Officer, (iii) execute on its business plans and (iv) achieve its business objectives, including managing costs associated with the branch acquisition; changes in general economic and financial market conditions, either nationally or locally, in areas in which Friendly Hills Bank conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect Friendly Hills Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Friendly Hills Bancorp undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances except as required by law.

Contacts:
Nathan Rogge (President & CEO)
Viktor Uehlinger (EVP & CFO)
(562) 947-1920

FAQ

Who is the new CEO of Friendly Hills Bancorp (FHLB)?

Nathan Rogge has been appointed as the new President and CEO of Friendly Hills Bancorp.

What changes were made to the Board of Directors of FHLB?

The Board of Directors has been restructured to consist of nine members as part of a Settlement Agreement.

What is the significance of Frank Kavanaugh withdrawing actions against FHLB?

Frank Kavanaugh's withdrawal of actions indicates a resolution of previous disputes, promoting stability for the company.

What are Nathan Rogge's plans for Friendly Hills Bank?

Nathan Rogge aims to grow Friendly Hills Bank and maintain its reputation as a 'business friendly' institution in Southern California.