WHITTIER, Calif., July 29, 2011 /PRNewswire/ -- Friendly Hills Bank
(the "bank") (OTCBB: FHLB) announced unaudited financial results
for the second quarter of 2011.
For the six month period ending June 30,
2011, the bank reported a loss of $23,000 or $0.01
per diluted share of common stock. This figure includes a
$173,000 provision for credit losses,
$41,000 loss on the sale of an
investment security, and a $62,000
decrease in the value of interest rate caps. The bank
reported a profit of $361,000 or
$0.22 per diluted share of common
stock for the six months ended June 30,
2010. This figure includes a $83,000 provision for credit losses, a
$514,000 gain on the sale of
investment securities, and a $152,000
decrease in the value of an interest rate cap.
Excluding the provision for credit losses, securities gains and
losses, and adjustments to the carrying value of interest rate
caps, the bank reported net income of $253,000 for the six months ended June 30, 2011 compared to net income of
$82,000 for the same period in
2010.
As of June, 30 2011, the bank reported total assets of
$99.6 million, a 7% increase from
$93.1 million as of June 30, 2010. The bank's loan portfolio,
net of unearned income, grew 1% from $61.8
million as of June 30, 2010,
to $62.3 million as of June 30, 2011. The portfolio remains
diversified with $27.0 million or 43%
in Commercial & Industrial Loans to local businesses (including
$16.8 million in Owner Occupied
Commercial Real Estate Loans), $20.4
million or 33% in Residential Real Estate Loans to investors
and $10.3 million or 17% in
Commercial Real Estate Loans to investors. The bank has an
additional $16.4 million in unfunded
loan commitments.
The bank's overall deposit base has grown 10% in the twelve
months ended June 30, 2011, from
$70.9 million as of June 30, 2010, to $78.2
million as of June 30, 2011.
Non-interest bearing deposits continue to form a substantial
part of the deposit base (34%), growing from $22.5 million to $26.3 million as of June 30, 2011. During the same time period
interest-bearing deposits grew from $48.4
million to $51.9 million on
June 30, 2011. The bank has no
deposits which were sourced through brokers or other wholesale
funding sources.
At June 30, 2011, shareholders'
equity was $12.4 million and the
bank's total risk-based capital ratio was 19.47%, 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.
"With a continued focus on enhancing long-term shareholder
value," commented Jeffrey K. Ball,
Chief Executive Officer, "we are encouraged by the bank's
performance during this period of economic uncertainty. We
have continued to take the short-term steps necessary to
appropriately address the current credit risk in our primary
markets while mitigating the uncontrollable risks associated with
potential changes in the interest rate environment. While
these actions have had a negative impact on our short-term
performance, the profitability of our core operations continues to
grow as we remain focused on managing the loan portfolio and
controlling expenses."
The bank is also reporting the resignation of H.A. ("Hal")
Beisswenger from the Board of Directors. Mr. Beisswenger has
served as Chairman of the Board since the inception of the bank and
the board has accepted his request to resign so that he can focus
on his health and his family. He will continue to be involved
with the bank as a Chairman Emeritus but will not be a voting
member of the board. W.C. ("Chris") Greenbeck, who is also a
Founding Director of the bank, will now serve as the Chairman of
the Board.
"Hal Beisswenger has been a
valuable mentor for me throughout my career in banking", continued
Mr. Ball, "and an important contributor towards the establishment
and development of Friendly Hills Bank. The Board of
Directors respects his need to step back from these
responsibilities but is also appreciative of his continued
involvement with the success of our company. He makes this
transition to Chairman Emeritus with the bank being well positioned
for the current environment and I am confident in the leadership
Chris Greenbeck will provide as we
continue our focus on enhancing shareholder value."
Company Profile:
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.
Friendly
Hills Bank
|
|
Balance
Sheets (Unaudited)
|
|
(in
thousands, except per share information)
|
|
|
|
|
6/30/11
|
|
12/31/10
|
|
6/30/10
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$ 2,989
|
|
$ 1,713
|
|
$ 3,100
|
|
Interest bearing deposits
with other financial institutions
|
8,188
|
|
2,508
|
|
3,339
|
|
|
|
Cash and Cash
Equivalents
|
11,177
|
|
4,221
|
|
6,439
|
|
Investment securities
available-for-sale
|
25,242
|
|
28,334
|
|
23,763
|
|
Federal Home Loan Bank
stock
|
610
|
|
483
|
|
483
|
|
Loans, net of unearned
income
|
62,279
|
|
61,296
|
|
61,826
|
|
Allowance for loan
losses
|
(1,408)
|
|
(1,371)
|
|
(1,240)
|
|
|
|
Net Loans
|
60,871
|
|
59,925
|
|
60,586
|
|
Premises and equipment,
net
|
789
|
|
880
|
|
919
|
|
Accrued interest
receivable and other assets
|
888
|
|
780
|
|
905
|
|
|
|
Total
Assets
|
$ 99,577
|
|
$ 94,623
|
|
$ 93,095
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 26,324
|
|
$ 22,908
|
|
$ 22,488
|
|
|
Interest-bearing
deposits
|
51,882
|
|
50,890
|
|
48,368
|
|
|
|
Total Deposits
|
78,206
|
|
73,798
|
|
70,856
|
|
FHLB advances
|
8,750
|
|
8,750
|
|
8,750
|
|
Accrued interest payable
and other liabilities
|
229
|
|
297
|
|
177
|
|
|
|
Total
Liabilities
|
87,185
|
|
82,845
|
|
79,783
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
Common stock, no par
value, 10,000,000 shares authorized:
|
|
|
|
|
|
|
|
1,616,000 shares issued and
outstanding
|
15,958
|
|
15,958
|
|
15,958
|
|
|
Additional
paid-in-capital
|
1,028
|
|
1,004
|
|
900
|
|
|
Accumulated
deficit
|
(4,984)
|
|
(4,962)
|
|
(3,947)
|
|
|
Accumulated other
comprehensive income
|
390
|
|
(222)
|
|
401
|
|
|
|
Total
Shareholders' Equity
|
12,392
|
|
11,778
|
|
13,312
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$ 99,577
|
|
$ 94,623
|
|
$ 93,095
|
|
|
|
|
|
|
|
|
|
|
Book Value
Per Share
|
$ 7.67
|
|
$ 7.29
|
|
$ 8.24
|
|
|
|
|
|
|
|
|
|
Friendly
Hills Bank
|
|
Statements
of Operations (Unaudited)
|
|
(in
thousands, except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
For the
six
|
|
For the
six
|
|
|
|
|
months
ended
|
|
months
ended
|
|
|
|
|
6/30/11
|
|
6/30/10
|
|
Interest Income
|
$
2,318
|
|
$ 2,238
|
|
Interest
Expense
|
321
|
|
331
|
|
|
Net Interest
Income
|
1,997
|
|
1,907
|
|
Provision for Credit
Losses
|
173
|
|
83
|
|
|
Net Interest Income after
Provision for Credit Losses
|
1,824
|
|
1,824
|
|
Other Income
|
84
|
|
94
|
|
Operating
Expenses
|
1,817
|
|
1,918
|
|
Gain (Loss) on Securities
& Hedging Contracts
|
(103)
|
|
362
|
|
Earnings (Loss) before
Provision for Income Taxes
|
(12)
|
|
362
|
|
Provision for Income
Taxes
|
(11)
|
|
(1)
|
|
|
|
Net Earnings
(Loss)
|
$
(23)
|
|
$
361
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings
(Loss) Per Share
|
$
(0.01)
|
|
$
0.22
|
|
|
|
|
|
|
|
SOURCE Friendly Hills Bank