Friendly Hills Bancorp Reports Financial Results for the First Quarter of 2022

Rhea-AI Summary

Friendly Hills Bancorp (OTC Pink: FHLB) reported its first quarter 2022 results, showing a net loss of $130,000 compared to a net income of $240,000 in Q1 2021. Total assets fell to $282 million, down $11 million from the previous quarter, while total loans rose 12% to $100 million. Total deposits increased slightly to $258 million, with noninterest-bearing deposits at 51% of total deposits. The bank achieved a risk-based capital ratio of 14.7%, qualifying as 'well-capitalized'. The company is implementing a strategic plan aimed at loan portfolio growth and expansion in the San Diego market.

Positive

• Total loans increased 12% to $100 million compared to $89 million in December 2021.
• The total risk-based capital ratio was 14.7%, indicating a well-capitalized status.
• Formation of a specialty lending group to focus on commercial trucks and vehicles.

Negative

• Reported a net loss of $130,000 for Q1 2022, down from a net income of $240,000 in Q1 2021.
• Total assets decreased by $11 million from the previous quarter.

WHITTIER, Calif., May 03, 2022 (GLOBE NEWSWIRE) -- Friendly Hills Bancorp (the “Company”) (OTC Pink: FHLB), the holding company for Friendly Hills Bank (the “Bank”) today reported consolidated results for the first quarter of 2022. The comparability of consolidated financial information for the first quarter of 2022 to the same period of 2021 is affected by the acquisition of three branch offices from Bank of Southern California with $82 million in deposits effective September 24, 2021, after which the related operating results are also reflected in these consolidated financials.

First Quarter 2022 Highlights:

• Total assets ended the quarter at $282 million, down $11 million from the prior quarter as a result of paying off higher cost FHLB Advances.  
• Total loans increased 12% to $100 million as of March 31, 2022, from $89 million as of December 31, 2021.
• Total deposits ended the quarter at $258 million up slightly from the prior quarter, and noninterest-bearing deposits continue to reflect strong, relationship-based deposit sources at 51% of total deposits.
• Total risk-based capital ratio was 14.7% and considered “well-capitalized”, the highest regulatory capital category.
• Formed a specialty lending group dedicated to providing financing solutions for commercial trucks and vehicles.
  

For the first quarter ended March 31, 2022, the Company reported a net loss of $130,000 compared to net income of $240,000 for the comparable three months ended March 31, 2021. “During the first quarter of 2022, we established the framework for the Company, by executing upon our strategic plan to achieve faster growth in the loan portfolio and expansion into the San Diego market to better position the company for long-term growth and success. This included the addition of a new executive leadership team, the formation of a specialty lending group, and the hiring of key positions,” said Nathan Rogge, President and Chief Executive Officer of Friendly Hills Bank.

“Looking back on the first quarter of 2022, the Company delivered solid loan growth. Our lending portfolio grew from $89 million as of December 31, 2021, to $100 million as of March 31, 2022. The loan portfolio remains diversified with $37 million in Commercial Loans (including $26.5 million in Owner Occupied Commercial Real Estate Loans), $36.7 million in Other Commercial Real Estate Loans, and $25.9 million in Residential Real Estate Loans.

“As we look ahead, the Company is well positioned to continue to drive organic growth. We remain focused on enhancing shareholder value and are excited for continued opportunities on the road ahead.”

ABOUT FRIENDLY HILLS BANK

Friendly Hills Bank, a wholly owned subsidiary of Friendly Hills Bancorp, is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. With a history that spans 16 years, the bank offers a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. Friendly Hills Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit 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. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.  

Contacts

Investor Relations Contact
Jim Burgess
858.461.7301
jburgess@friendlyhillsbank.com

Media Relations Contact
Amanda Conover
562.501.9062
aconover@friendlyhillsbank.com

--- Summary Financial Table Follows ---

Friendly Hills Bancorp
Consolidated Balance Sheets (Unaudited)
(in thousands, except per share information)
			3/31/2022				12/31/2021				3/30/2021
ASSETS
Cash and due from banks			$	4,347			$	6,499			$	3,200
Interest bearing deposits with other financial institutions				41,341				58,529				56,252
Cash and cash equivalents				45,688				65,028				59,452
Debt securities				124,089				126,858				19,744
Loans				99,544				88,923				127,186
Allowance for loan losses				(1,800	)			(1,800	)			(1,603	)
Loans, net				97,744				87,123				125,583
Restricted stock and equity securities				2,632				2,632				2,632
Premises, equipment and right of use asset, net				2,467				2,313				797
Bank owned life insurance				4,978				4,951				4,870
Goodwill and core deposit intangible				1,771				1,788				384
Accrued interest receivable and other assets				2,840				2,326				660
Total Assets			$	282,209			$	293,019			$	214,122
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing deposits			$	132,531			$	134,625			$	89,340
Interest-bearing deposits				125,699				122,935				82,055
Total deposits				258,230				257,560				171,395
FHLB advances				-				12,000				20,500
Accrued interest payable and other liabilities				4,126				3,730				1,480
Total Liabilities				262,356				273,290				193,375
Total Shareholders' Equity				19,853				19,729				20,747
Total Liabilities and Shareholders' Equity			$	282,209			$	293,019			$	214,122
Common Shares Outstanding				2,053,393				2,006,393				2,006,393
Book Value Per Share			$	9.67			$	9.83			$	10.34
Friendly Hills Bancorp
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share information)
			For the three								For the three
			months ended								months ended
			3/31/2022								3/30/2021
Interest income			$	1,699							$	1,474
Interest expense				116								135
Net Interest Income				1,583								1,339
Provision for loan losses				-								-
Net Interest Income After Provision for Loan Losses		1,583										1,339
Noninterest income				680								118
Noninterest expense				2,465								1,126
Income before Provision for Income Taxes				(202	)							331
Provision for (benefit from) income taxes				(72	)							91
Net Income			$	(130	)						$	240
Earnings Per Share Basic			$	(0.06	)						$	0.12

FAQ

What were the financial results for FHLB in Q1 2022?

FHLB reported a net loss of $130,000 in Q1 2022, down from a net income of $240,000 in Q1 2021.

How did total assets of FHLB change in Q1 2022?

Total assets decreased to $282 million, down $11 million from the prior quarter.

What is the current status of FHLB's loan portfolio?

The loan portfolio increased by 12% to $100 million as of March 31, 2022.

What is the risk-based capital ratio for FHLB?

The risk-based capital ratio for FHLB was reported at 14.7%, qualifying it as well-capitalized.

What strategic plans did FHLB announce moving forward?

FHLB is focusing on loan portfolio growth and expanding into the San Diego market.