WHITTIER, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (OTC:FHLB) (BULLETIN BOARD: FHLB) reported results for the
third quarter of 2007, completing its first full year of
operations. The bank opened for business on September 16, 2006. As
of September 30, 2007, the bank reported total assets of $41.5
million, an increase of 72% from $24.1 million on December 31,
2006. The bank's overall deposits grew over the last nine months by
204% to $27.1 million from $8.9 million as of December 31, 2006.
During the same time period noninterest bearing deposits increased
234% from $2.9 million on December 31, 2006 to $9.6 million as of
September 30, 2007. Interest bearing deposits advanced 191% from
$6.0 million on December 31, 2006 to $17.5 million on September 30,
2007. As of September 30, 2007, noninterest bearing deposits
comprised over 35% of the bank's total deposit base. The bank's
loan portfolio, net of an allowance for loan losses, also continued
to grow, increasing 194% from $4.5 million as of December 31, 2006,
to $13.2 million as of September 30, 2007. Of the $13.2 million in
net loans, $5.0 million or 38% are classified as commercial and
industrial and $7.7 million or 58% are loans to local businesses
which are secured by real estate. The bank has an additional $15.3
million in unfunded loan commitments and no residential 'sub-prime'
mortgage loans. For the nine months ended September 30, 2007, the
bank reported a net loss of $855,000, which includes a loan loss
provision of $110,000, or ($0.53) per share of common stock. For
the three months ended September 30, 2007, the bank reported a net
loss of $247,000, including a loan loss provision of $34,000, or
($0.15) per share of common stock. These numbers also reflect the
impact of accounting rules that require companies to include stock
compensation as an expense. "We are very proud of the bank's
performance during its first full year of operations," commented
Jeffrey K. Ball, Chief Executive Officer of the Bank. "We have
maintained our focus on relationship banking with local businesses
and professionals. This approach has provided a strong base of
lower cost deposits during a period of time in which many
institutions, particularly at this stage of development, tend to
have a higher cost of funds. Our business model has also enabled us
to establish a well-diversified portfolio of loans with a focus on
local businesses for which we are providing all of their commercial
banking needs." 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. Friendly Hills Bank Balance Sheet (Unaudited) 9/30/07
12/31/06 Assets Cash and cash equivalents $1,486,188 $558,545 Fed
funds sold 13,825,000 9,015,000 Investment securities
available-for-sale 11,855,776 8,802,262 Loans, net of unearned
income 13,365,651 4,543,658 Allowance for loan losses (166,913)
(56,686) Net loans 13,198,738 4,486,972 Premises and equipment, net
986,309 1,061,661 Accrued interest receivable and other assets
188,739 174,284 Total Assets $41,540,750 $24,098,724 Liabilities
Deposits Noninterest-bearing deposits $9,562,144 $2,865,127
Interest-bearing deposits 17,531,193 6,021,210 Accrued interest
payable and other liabilities 61,314 135,477 Total Liabilities
$27,154,651 $9,021,814 Stockholders' Equity Common stock
$15,957,620 $15,957,620 Accumulated deficit (1,799,918) (945,306)
Additional paid-in-capital 250,602 84,102 Accumulated other
comprehensive loss (22,205) (19,506) Total Stockholders' Equity
14,386,099 15,076,910 Total Liability & Stockholders' Equity
$41,540,750 $24,098,724 Friendly Hills Bank Statement of Operations
(Unaudited) For the three For the nine months ended months ended
9/30/07 9/30/07 Interest Income $532,377 $1,369,097 Interest
Expense 127,149 270,306 Net Interest Income 405,228 1,098,791
Provision for Credit Losses 33,996 110,227 Net Interest Income
after Provision for Credit Losses 371,232 988,564 Other Income
11,721 31,807 Operating Expenses 630,332 1,874,171 Loss before
Provision for Income Taxes (247,379) (853,800) Provision for Income
Taxes (2) (810) Net Loss $(247,381) $(854,610) Basic Income (Loss)
Per Share $(0.15) $(0.53) Book Value Per Share $8.90 $8.90 Shares
Outstanding 1,616,000 1,616,000 DATASOURCE: Friendly Hills Bank
CONTACT: Jeffrey K. Ball, Chief Executive Officer, or George W.
Peterson, Chief Financial Officer, both of Friendly Hills Bank,
+1-562-947-1920 Web site: http://www.friendlyhillsbank.com/
Copyright