WHITTIER, Calif., Nov. 8, 2011 /PRNewswire/ -- Friendly Hills Bank
(the "bank") (OTCBB: FHLB) announced unaudited financial results
for the third quarter of 2011.
For the nine month period ending September 30, 2011, the bank reported a profit of
$6,000 or zero dollars per diluted
share of common stock. This figure includes a $169,000 provision for credit losses,
$51,000 loss on the sale of
investment securities, and a $165,000
decrease in the value of interest rate caps. The bank
reported a loss of $794,000 or
$0.49 per diluted share of common
stock for the nine months ended September
30, 2010. This figure included a $1,082,000 provision for credit losses, a
$514,000 gain on the sale of
investment securities, and a $206,000
decrease in the value of an interest rate cap.
Excluding the provision for credit losses, investment securities
gains and losses, and adjustments to the carrying value of interest
rate caps, the bank reported net income of $391,000 for the nine months ended September 30, 2011 compared to a loss of
$21,000 for the same period in
2010.
As of September 30, 2011, the bank
reported total assets of $100.9
million, a 2% increase from $98.6
million as of September 30,
2010. The bank's loan portfolio, net of unearned
income, decreased 1% from $61.6
million as of September 30,
2010, to $61.1 million as of
September 30, 2011. The
portfolio remains diversified with $26.0
million or 42% in Commercial & Industrial Loans to local
businesses (including $16.7 million
in Owner Occupied Commercial Real Estate Loans), $20.1 million or 33% in Residential Real Estate
Loans to investors and $10.1 million
or 16.5% in Commercial Real Estate Loans to investors. The
bank has an additional $13.7 million
in unfunded loan commitments.
The bank's overall deposit base has grown 3% in the twelve
months ended September 30, 2011, from
$77.1 million as of September 30, 2010, to $79.4 million as of September 30, 2011. Non-interest bearing
deposits continue to form a substantial part of the deposit base
(35.5%), growing from $23.8 million to $28.2
million as of September 30,
2011. During the same time period interest-bearing
deposits decreased from $53.3 million
to $51.2 million on September 30, 2011. The bank has no
deposits which were sourced through brokers or other wholesale
funding sources.
At September 30, 2011,
shareholders' equity was $12.5
million and the bank's total risk-based capital ratio was
20.27%, 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.
"Despite significant challenges posed by the current economic
environment," commented Jeffrey K.
Ball, Chief Executive Officer, "we are encouraged by the
continued growth in the core earnings of the bank. We
continue to stay focused on enhancing the long term shareholder
value of the company by employing strategies intended to mitigate
certain uncontrollable risks while maintaining the strong
underwriting standards and expense limitations we have always
employed. With profitable core operations, a sound balance
sheet and excess capital, we are well positioned for both the
challenges and opportunities of our marketplace."
Company Profile:
Friendly Hills Bank is a community bank which was formed to
primarily serve the markets of Southeast
Los Angeles County and Northern
Orange County. 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 (Unaudited)
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(in
thousands, except per share information)
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9/30/11
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12/31/10
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9/30/10
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ASSETS
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Cash and due from
banks
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$ 3,183
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$ 1,713
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$ 2,506
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Interest bearing deposits
with other financial institutions
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16,936
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2,508
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8,726
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Cash and Cash
Equivalents
|
20,119
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4,221
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11,232
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Investment securities
available-for-sale
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19,348
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28,334
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24,744
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Federal Home Loan Bank
stock
|
610
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|
483
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|
483
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Loans, net of unearned
income
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61,145
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61,296
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61,624
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Allowance for loan
losses
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(1,708)
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(1,371)
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(1,236)
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Net Loans
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59,437
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59,925
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60,388
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Premises and equipment,
net
|
752
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|
880
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873
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Accrued interest
receivable and other assets
|
661
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|
780
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839
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Total
Assets
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$ 100,927
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$ 94,623
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$ 98,559
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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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$ 28,241
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$ 22,908
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$ 23,788
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Interest-bearing
deposits
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51,201
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50,890
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53,314
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Total Deposits
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79,442
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73,798
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77,102
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FHLB advances
|
8,750
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8,750
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8,750
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Accrued interest payable
and other liabilities
|
239
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|
297
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396
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Total
Liabilities
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88,431
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82,845
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86,248
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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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1,041
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1,004
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953
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Accumulated
deficit
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(4,956)
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(4,962)
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(5,102)
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Accumulated other
comprehensive income
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453
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(222)
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502
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|
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Total
Shareholders' Equity
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12,496
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|
11,778
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|
12,311
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|
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Total
Liabilities and Shareholders' Equity
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$100,927
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$ 94,623
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$ 98,559
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Book Value
Per Share
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$ 7.73
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$ 7.29
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$ 7.62
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Friendly
Hills Bank
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Statements
of Operations (Unaudited)
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(in
thousands, except per share information)
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For the
nine
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For the
nine
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months
ended
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months
ended
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9/30/11
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9/30/10
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Interest Income
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$
3,536
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|
$
3,412
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Interest
Expense
|
473
|
|
528
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Net Interest
Income
|
3,063
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|
2,884
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Provision for Credit
Losses
|
169
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|
1,082
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Net Interest Income after
Provision for Credit Losses
|
2,894
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|
1,802
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Other Income
|
133
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|
139
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Operating
Expenses
|
2,779
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3,043
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Gain (Loss) on Investment
Securities & Hedging Contracts
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(216)
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|
309
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Earnings (Loss) before
Provision for Income Taxes
|
32
|
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(793)
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Provision for Income
Taxes
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(26)
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(1)
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Net Earnings
(Loss)
|
$
6
|
|
$
(794)
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Basic and Diluted Earnings
(Loss) Per Share
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$
---
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$
(0.49)
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SOURCE Friendly Hills Bank