WHITTIER, Calif., July 24 CA-Friendly-Hills
WHITTIER, Calif., July 24 /PRNewswire-FirstCall/ -- Friendly Hills Bank
(OTC Bulletin Board: FHLB) reported results for the second quarter of 2008,
its seventh full quarter of operations, since opening on September 18, 2006.
As of June 30, 2008, the bank reported total assets of $55.5 million, a 22%
increase from $45.5 million as of December 31, 2007.
The bank's overall deposit base has grown over 34% in the current year
from $31.0 million as of December 31, 2007, to $41.6 million as of June 30,
2008. Non-interest bearing core deposits continue to form a substantial part
of the deposit base (35%) growing from $12.9 million at year-end to $14.5
million as of June 30, 2008. During the same time period interest bearing
deposits advanced over 50% from $18.0 million to $27.1 million on June 30,
2008. The bank has no deposits which were sourced through brokers or
originated on the basis of above-market rate programs.
The bank's loan portfolio, net of an allowance for loan losses, also
continued to grow, increasing over 61% from $18.3 million as of December 31,
2007, to $29.5 million as of June 30, 2008. The portfolio remains diversified
with $8.9 million or 32% in Commercial & Industrial Loans to local businesses
and $14.6 million or 49.5% in Commercial Real Estate Loans. Owner Occupied
properties represent the largest component of the Commercial Real Estate
Portfolio (over 52%) with $7.6 million outstanding as of June 30, 2008. The
bank has an additional $14.3 million in unfunded loan commitments and no non-
performing loans or residential 'sub-prime' mortgage loans.
The bank's primary generator of income is Net Interest Income which
increased by over 65% from $693,563 in the six months ending June 30, 2007, to
$1,146,744 in the six months ending June 30, 2008. This increase was a
contributing factor in the bank reducing its net loss by 28% from $607,229, or
($0.38) per share of common stock for the six months ending June 30, 2007, to
$438,919, or ($0.27) per share of common stock. These figures include a loan
loss provision of $142,199 for the six months ending June 30, 2008, which was
86% higher than the $76,230 provision for the same period one year earlier.
The increase in reserves reflects the growth in the loan portfolio as the bank
maintained its Allowance for Loan Losses at 1.25% of loans outstanding. The
net loss numbers also reflect the impact of accounting rules that require
companies to include stock compensation as an expense.
"We are proud of the bank's growth in the midst of a challenging economic
environment and credit our great staff of employees for this achievement",
commented Jeffrey K. Ball, Chief Executive Officer. "Most notably the bank
has made significant strides in the development of its loan portfolio while
preserving the strength of our deposit base. This growth, which has been
achieved while maintaining our diligent underwriting standards, was a
significant factor in the improvement of our Net Interest Income. While we
are mindful of the many challenges facing the industry, we are seeing the
results of our positioning the bank with a consultative relationship approach
to commercial banking which provides us with a unique advantage during these
uncertain times. We have developed our deposit base to provide a low cost of
funds without the need for brokered deposits or above-market rate promotions.
A conservative approach which we feel will be enhanced by the market's
emerging concern for bank safety and appreciation of our style of
sophisticated relationship management."
Friendly Hills Bank is a community bank which was formed to primarily
serve the Southern California communities of Whittier, La Habra, Santa Fe
Springs and La Habra Heights, as well as the surrounding markets of Los
Angeles and Orange Counties. 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 at 16011 E.
Whittier Blvd. in Whittier, California. For more information on the Bank,
please visit http://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.
Friendly Hills Bank
Balance Sheet
(Unaudited)
6/30/08 12/31/076/30/07
Assets
Cash and cash equivalents $3,048,483 $1,357,598 $1,473,621
Fed funds sold 5,970,000 7,365,000 15,005,000
Investment securities
available-for-sale15,705,340 17,339,953 8,989,077
Loans, net of unearned income 29,836,647 18,492,128 10,622,050
Allowance for loan losses (373,470) (231,271) (132,916)
Net loans 29,463,177 18,260,857 10,489,134
Premises and equipment, net 947,024 960,604 1,036,538
Accrued interest receivable and
other assets 331,346 218,938152,956
Total Assets $55,465,370 $45,502,950$37,146,326
Liabilities
Deposits
Noninterest-bearing
deposits $14,532,655 $12,935,372$10,497,259
Interest-bearing deposits27,078,142 18,025,171 12,180,439
Accrued interest payable and
other liabilities 97,690 94,926 69,266
Total Liabilities $41,708,487 $31,055,469 22,746,964
Stockholders' Equity
Common stock $15,957,620 $15,957,620$15,957,620
Accumulated deficit(2,453,244) (2,014,323)(1,552,537)
Additional paid-in-capital429,591 303,591195,102
Accumulated other comprehensive
gain (loss) (177,084)200,593 (200,823)
Total Stockholders' Equity 13,756,883 14,447,481 14,399,362
Total Liability &
Stockholders' Equity $55,465,370 $45,502,950$37,146,326
Friendly Hills Bank
Statement of Operations
(Unaudited)
For the six For the six
months ended months ended
6/30/08 6/30/07
Interest Income $1,350,253 $836,720
Interest Expense203,509 143,157
Net Interest Income 1,146,744 693,563
Provision for Credit Losses 142,199 76,230
Net Interest Income after Provision for
Credit Losses 1,004,545 617,333
Other Income 58,336 20,086
Operating Expenses1,537,9301,243,840
Gain (Loss) on Securities36,934-
Loss before Provision for Income Taxes (438,115)(606,421)
Provision for Income Taxes (804)(808)
Net Loss$(438,919) $(607,229)
Basic Income (Loss) Per Share$(0.27) $(0.38)
Book Value Per Share $8.51$8.91
Shares Outstanding1,616,0001,616,000
SOURCE Friendly Hills Bank
