WHITTIER, Calif., July 24 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (OTC:FHLB) (BULLETIN BOARD: FHLB) reported results for the
second quarter of 2008, its seventh full quarter of operations,
since opening on September 18, 2006. As of June 30, 2008, the bank
reported total assets of $55.5 million, a 22% increase from $45.5
million as of December 31, 2007. The bank's overall deposit base
has grown over 34% in the current year from $31.0 million as of
December 31, 2007, to $41.6 million as of June 30, 2008.
Non-interest bearing core deposits continue to form a substantial
part of the deposit base (35%) growing from $12.9 million at
year-end to $14.5 million as of June 30, 2008. During the same time
period interest bearing deposits advanced over 50% from $18.0
million to $27.1 million on June 30, 2008. The bank has no deposits
which were sourced through brokers or originated on the basis of
above-market rate programs. The bank's loan portfolio, net of an
allowance for loan losses, also continued to grow, increasing over
61% from $18.3 million as of December 31, 2007, to $29.5 million as
of June 30, 2008. The portfolio remains diversified with $8.9
million or 32% in Commercial & Industrial Loans to local
businesses and $14.6 million or 49.5% in Commercial Real Estate
Loans. Owner Occupied properties represent the largest component of
the Commercial Real Estate Portfolio (over 52%) with $7.6 million
outstanding as of June 30, 2008. The bank has an additional $14.3
million in unfunded loan commitments and no non- performing loans
or residential 'sub-prime' mortgage loans. The bank's primary
generator of income is Net Interest Income which increased by over
65% from $693,563 in the six months ending June 30, 2007, to
$1,146,744 in the six months ending June 30, 2008. This increase
was a contributing factor in the bank reducing its net loss by 28%
from $607,229, or ($0.38) per share of common stock for the six
months ending June 30, 2007, to $438,919, or ($0.27) per share of
common stock. These figures include a loan loss provision of
$142,199 for the six months ending June 30, 2008, which was 86%
higher than the $76,230 provision for the same period one year
earlier. The increase in reserves reflects the growth in the loan
portfolio as the bank maintained its Allowance for Loan Losses at
1.25% of loans outstanding. The net loss numbers also reflect the
impact of accounting rules that require companies to include stock
compensation as an expense. "We are proud of the bank's growth in
the midst of a challenging economic environment and credit our
great staff of employees for this achievement", commented Jeffrey
K. Ball, Chief Executive Officer. "Most notably the bank has made
significant strides in the development of its loan portfolio while
preserving the strength of our deposit base. This growth, which has
been achieved while maintaining our diligent underwriting
standards, was a significant factor in the improvement of our Net
Interest Income. While we are mindful of the many challenges facing
the industry, we are seeing the results of our positioning the bank
with a consultative relationship approach to commercial banking
which provides us with a unique advantage during these uncertain
times. We have developed our deposit base to provide a low cost of
funds without the need for brokered deposits or above-market rate
promotions. A conservative approach which we feel will be enhanced
by the market's emerging concern for bank safety and appreciation
of our style of sophisticated relationship management." 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, and regulatory matters. Friendly Hills Bank
Balance Sheet (Unaudited) 6/30/08 12/31/07 6/30/07 Assets Cash and
cash equivalents $3,048,483 $1,357,598 $1,473,621 Fed funds sold
5,970,000 7,365,000 15,005,000 Investment securities
available-for-sale 15,705,340 17,339,953 8,989,077 Loans, net of
unearned income 29,836,647 18,492,128 10,622,050 Allowance for loan
losses (373,470) (231,271) (132,916) Net loans 29,463,177
18,260,857 10,489,134 Premises and equipment, net 947,024 960,604
1,036,538 Accrued interest receivable and other assets 331,346
218,938 152,956 Total Assets $55,465,370 $45,502,950 $37,146,326
Liabilities Deposits Noninterest-bearing deposits $14,532,655
$12,935,372 $10,497,259 Interest-bearing deposits 27,078,142
18,025,171 12,180,439 Accrued interest payable and other
liabilities 97,690 94,926 69,266 Total Liabilities $41,708,487
$31,055,469 22,746,964 Stockholders' Equity Common stock
$15,957,620 $15,957,620 $15,957,620 Accumulated deficit (2,453,244)
(2,014,323) (1,552,537) Additional paid-in-capital 429,591 303,591
195,102 Accumulated other comprehensive gain (loss) (177,084)
200,593 (200,823) Total Stockholders' Equity 13,756,883 14,447,481
14,399,362 Total Liability & Stockholders' Equity $55,465,370
$45,502,950 $37,146,326 Friendly Hills Bank Statement of Operations
(Unaudited) For the six For the six months ended months ended
6/30/08 6/30/07 Interest Income $1,350,253 $836,720 Interest
Expense 203,509 143,157 Net Interest Income 1,146,744 693,563
Provision for Credit Losses 142,199 76,230 Net Interest Income
after Provision for Credit Losses 1,004,545 617,333 Other Income
58,336 20,086 Operating Expenses 1,537,930 1,243,840 Gain (Loss) on
Securities 36,934 - Loss before Provision for Income Taxes
(438,115) (606,421) Provision for Income Taxes (804) (808) Net Loss
$(438,919) $(607,229) Basic Income (Loss) Per Share $(0.27) $(0.38)
Book Value Per Share $8.51 $8.91 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