WHITTIER, Calif., April 29 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (OTC Bulletin Board: FHLB) reported results for the first
quarter of 2010, after completing its third full year of operations
since opening on September 18, 2006.
For the three month period ending March
31, 2010, the bank reported a profit of $507,000 or $0.31
per diluted share of common stock. This figure includes a
$454,000 gain on the sale of
investment securities. The provision for credit losses for
the three months ended March 31,
2010, of $37,000 was 79% less
than the $174,000 provision for the
same period one year earlier. The prior year provision was
impacted by the increase in the Bank's allowance for loan losses
from 1.50% to 2.00% of gross loans as part of the Bank's overall
risk management process. The bank reported a net loss of
$419,000, or ($0.26) per diluted share of common stock for the
three months ended March 31, 2009.
As of March 31, 2010, the bank
reported total assets of $90.2
million, a 35% increase from $66.6
million as of March 31, 2009.
The bank's loan portfolio, net of unearned income, grew 63%
from $36.4 million as of March 31, 2009, to $59.5
million as of March 31,
2010. The portfolio remains diversified with $10.6 million or 18% in Commercial &
Industrial Loans to local businesses, $22.0
million or 37% in Residential Real Estate Loans to investors
and $23.4 million or 39% in
Commercial Real Estate Loans. Owner Occupied properties
represent the largest component of the Commercial Real Estate
Portfolio (25%) with $14.7 million
outstanding. The bank has an additional $20.2 million in unfunded loan commitments.
The bank's overall deposit base has grown over 36% in the twelve
months ended March 31, 2010, from
$52.5 million as of March 31, 2009, to $71.2
million as of March 31, 2010.
Non-interest bearing deposits continue to form a substantial
part of the deposit base (31%), growing from $19.2 million to $22.0 million as of March 31, 2010. During the same time period
interest-bearing deposits grew from $33.3
million to $49.2 million on March 31,
2010. The bank has no deposits which were sourced
through brokers or other wholesale funding sources.
At March 31, 2010, shareholders'
equity was $13.1 million and the
bank's total risk-based regulatory capital ratio was 21.42%,
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.
"Although the current environment remains very challenging in
the financial services industry, we are pleased to report that the
Bank has attained profitability," commented Jeffrey K. Ball, Chief Executive Officer.
"While our financial performance during the most recent
quarter was enhanced by a one-time gain from the sale of certain
securities in our investment portfolio, the underlying business of
the bank was profitable while maintaining a Loan Loss Allowance at
2% of Gross Loans. Furthermore, we have achieved this goal
while maintaining a sound capital position to support the continued
growth of the company. We remain focused on our business
model of consistent loan underwriting and quality service as other
banks have proven themselves to be less reliable for small business
owners and professionals in the markets that we serve. These
conditions have provided unique opportunities for the establishment
of quality banking relationships as we focus on the consistent
development of our franchise. While uncertainty continues to
hamper economic growth and conditions remain a challenge, we remain
focused on our core strategies and are proud to provide a sound
alternative for the business community. We are focused on the
development of shareholder value and feel that the bank is properly
positioned for the current environment and related
opportunities."
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 Southern
California. 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 with an
additional branch office at 12070 East Telegraph Road, Suite #100
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.
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Friendly Hills
Bank
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Balance
Sheets
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(Unaudited)
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(in thousands, except per share
information)
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3/31/10
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12/31/09
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3/31/09
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ASSETS
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Cash and due from
banks
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$
2,045
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$
1,954
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$
1,821
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Interest bearing
deposits with other financial institutions
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1,133
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1,915
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1,004
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Federal funds
sold
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0
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0
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12,240
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Cash and Cash
Equivalents
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3,178
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3,869
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15,065
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Investment
securities available-for-sale
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26,944
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18,779
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14,253
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Loans, net of
unearned income
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59,480
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57,691
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36,449
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Allowance for loan
losses
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(1,193)
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(1,156)
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(730)
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Net
Loans
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58,287
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56,535
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35,719
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Premises and
equipment, net
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969
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1,014
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1,215
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Accrued interest
receivable and other assets
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836
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795
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372
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Total
Assets
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$
90,214
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$
80,992
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$
66,624
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LIABILITIES AND
SHAREHOLDERS' EQUITY
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Liabilities
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Deposits
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Noninterest-bearing
deposits
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$
21,979
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$
22,061
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$
19,193
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Interest-bearing
deposits
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49,200
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45,832
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33,283
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Total
Deposits
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71,179
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67,893
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52,476
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FHLB
advances
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5,750
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0
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0
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Accrued interest
payable and other liabilities
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205
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218
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242
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Total
Liabilities
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77,134
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68,111
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52,718
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Shareholders'
Equity
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Common stock, no
par value, 10,000,000 shares authorized:
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1,616,000 shares issued and
outstanding
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15,958
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15,958
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15,958
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Additional
paid-in-capital
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848
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795
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605
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Accumulated
deficit
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(3,801)
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(4,308)
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(3,217)
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Accumulated other
comprehensive income
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75
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436
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560
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Total
Shareholders' Equity
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13,080
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12,881
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13,906
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Total Liabilities
and Shareholders' Equity
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$
90,214
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$
80,992
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$
66,624
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Book Value Per
Share
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$
8.09
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$
7.97
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$
8.61
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Friendly Hills
Bank
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Statements of
Operations
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(Unaudited)
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(in thousands,
except per share information)
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For the
three
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For the
three
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months
ended
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months
ended
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3/31/10
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3/31/09
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Interest
Income
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$
1,101
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$
717
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Interest
Expense
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137
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116
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Net Interest
Income
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964
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601
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Provision for
Credit Losses
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37
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174
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Net Interest
Income after Provision for Credit Losses
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927
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427
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Other
Income
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501
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33
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Operating
Expenses
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921
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879
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Earnings (Loss)
before Provision for Income Taxes
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507
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(419)
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Provision for
Income Taxes
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0
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0
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Net Earnings
(Loss)
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$
507
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$
(419)
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Basic and Diluted
Earnings (Loss) Per Share
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$
0.31
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$
(0.26)
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SOURCE Friendly Hills Bank