WHITTIER, Calif., Jan. 30 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (OTC:FHLB) (BULLETIN BOARD: FHLB) reported results for the
fourth quarter of 2007, its fifth full quarter of operations, since
opening on September 18, 2006. As of December 31, 2007, the bank
reported total assets of $45.5 million, an increase of 89% from
$24.1 million on December 31, 2006. The bank's overall deposits
grew over the last year by 248% to $31.0 million from $8.9 million
as of December 31, 2006. During the same time period noninterest
bearing deposits increased 351% from $2.9 million on December 31,
2006 to $12.9 million as of December 31, 2007. Interest bearing
deposits advanced 199% from $6.0 million on December 31, 2006 to
$18.0 million on December 31, 2007. As of December 31, 2007,
noninterest bearing deposits comprised over 42% of the bank's total
deposit base. The bank's loan portfolio, net of an allowance for
loan losses, also continued to grow, increasing 307% from $4.5
million as of December 31, 2006, to $18.3 million as of December
31, 2007. Of the $18.3 million in net loans, $7.4 million or 40%
are categorized as commercial and industrial and $9.3 million or
51% are loans to local businesses which are secured by real estate.
The bank has an additional $17.0 million in unfunded loan
commitments and no residential 'sub-prime' mortgage loans. For the
year ended December 31, 2007, the bank reported a net loss of
$1,069,000, which includes a loan loss provision of $175,000, or
($0.66) per share of common stock. For the four months ended
December 31, 2006, the bank reported a net loss of $596,000,
including a loan loss provision of $57,000, or ($0.37) 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 pleased with the continued growth and performance
of Friendly Hills Bank," commented Jeffrey K. Ball, Chief Executive
Officer of the bank. "With strong liquidity, an impressive base of
core deposits and a diversified loan portfolio, the bank is well
positioned for this current period of economic uncertainty. We do
not have any sub-prime loans in our portfolio and over 40% of our
deposit base is in non-interest bearing accounts. This is a result
of the bank's continued strategic focus on relationship banking
with local businesses and professionals." 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, regulatory matters and those discussed in
filings by the bank with the Federal Deposit Insurance Corporation.
Friendly Hills Bank Balance Sheet (Unaudited) 12/31/07 12/31/06
Assets Cash and cash equivalents $1,357,598 $558,545 Fed funds sold
7,365,000 9,015,000 Investment securities available-for-sale
17,339,953 8,802,262 Loans, net of unearned income 18,492,128
4,543,658 Allowance for loan losses (231,271) (56,686) Net loans
18,260,857 4,486,972 Premises and equipment, net 960,604 1,061,661
Accrued interest receivable and other assets 218,935 174,284 Total
Assets $45,502,947 $24,098,724 Liabilities Deposits
Noninterest-bearing deposits $12,935,372 $2,865,127
Interest-bearing deposits 18,025,172 6,021,210 Accrued interest
payable and other liabilities 94,927 135,477 Total Liabilities
$31,055,471 $9,021,814 Stockholders' Equity Common stock
$15,957,620 $15,957,620 Accumulated deficit (2,014,325) (945,306)
Additional paid-in-capital 303,591 84,102 Accumulated other
comprehensive gain (loss) 200,593 (19,506) Total Stockholders'
Equity 14,447,479 15,076,910 Total Liability & Stockholders'
Equity $45,502,950 $24,098,724 Friendly Hills Bank Statement of
Operations (Unaudited) For the twelve For the four months ended
months ended 12/31/07 12/31/06 Interest Income $1,975,009 $297,095
Interest Expense 422,176 35,294 Net Interest Income 1,552,833
261,801 Provision for Credit Losses 174,585 56,686 Net Interest
Income after Provision for Credit Losses 1,378,248 205,115 Other
Income 57,105 8,370 Operating Expenses 2,502,662 809,894 Loss
before Provision for Income Taxes (1,067,309) (596,409) Provision
for Income Taxes (1,708) (0) Net Loss $(1,069,017) $(596,409) Basic
Income (Loss) Per Share $(0.66) $(0.37) Book Value Per Share $8.94
$9.33 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/
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