Friendly Hills Bank in Whittier, Calif., has started offering payroll services to its clients.
The $117 million-asset bank said in a press release Monday that it formed a new division after buying service contracts and hiring the operational staff of So Cal Business Solutions, a local payroll provider in La Habra, Calif. The deal closed on April 1, the company said.
Friendly Hills plans to offer services to small and midsize business clients.
The bank said it views the deal as an opportunity to diversify its revenue, particularly as it faces net interest margin pressure.