WHITTIER, Calif., Feb. 4, 2011 /PRNewswire/ -- Friendly Hills Bank
(OTC Bulletin Board: FHLB) reported results for the year ended
December 31, 2010, after completing
its fourth full year of operations since opening on September 18, 2006.
For the twelve month period ending December 31, 2010, the bank reported a loss of
$654,000 or ($0.40) per diluted share of common stock.
This figure includes a $537,000
gain on the sale of investment securities and a $149,000 decrease in the value of an interest
rate cap which was purchased during the second quarter. The
provision for credit losses for the twelve months ended
December 31, 2010, of $1,082,000 was 7% more than the $1,007,000 provision for the same period one year
earlier. The bank reported a net loss of $1,510,000, or ($0.93) per diluted share of common stock for the
twelve months ended December 31,
2009.
As of December 31, 2010, the bank
reported total assets of $94.7
million, a 17% increase from $81.0
million as of December 31,
2009. The bank's loan portfolio, net of unearned
income, grew 6% from $57.7 million as
of December 31, 2009, to $61.3 million as of December 31, 2010. The portfolio remains
diversified with $23.7 million or 39%
in Commercial & Industrial Loans to local businesses (including
$14.2 million in Owner Occupied
Commercial Real Estate Loans), $19.3
million or 32% in Residential Real Estate Loans to investors
and $14.3 million or 23% in
Commercial Real Estate Loans to investors. The bank has an
additional $19.2 million in unfunded
loan commitments.
The bank's overall deposit base has grown 9% in the twelve
months ended December 31, 2010, from
$67.9 million as of December 31, 2009, to $73.8 million as of December 31, 2010. Non-interest bearing
deposits continue to form a substantial part of the deposit base
(31%), growing from $22.1 million to $22.9
million as of December 31,
2010. During the same time period interest-bearing
deposits grew from $45.8 million to $50.9
million on December 31, 2010.
The bank has no deposits which were sourced through brokers
or other wholesale funding sources.
At December 31, 2010,
shareholders' equity was $11.8
million and the bank's total risk-based capital ratio was
19.70%, 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.
"While this past year was very challenging for the financial
services industry as a whole," commented Jeffrey K. Ball, Chief Executive Officer, "the
bank demonstrated strong resilience to market pressures and further
solidified the value of its community bank model. Maintaining
its perspective on long-term shareholder value, our Board of
Directors' continued their emphasis on risk management – most
notably in credit risk and interest rate risk. This
perspective resulted in specific actions which negatively impacted
earnings in the short-term. But we feel that those difficult
decisions will serve to strengthen the bank and its opportunities
for the long term. In the meantime, we have grown to a base
level of operating profitability which is reflected in the fact
that the sum of Net Interest Income and Non-Interest Income
exceeded Non-Interest Expenses through the year. This
accomplishment is attributable to the consistent focus of our
traditional community bank model - a strategy which emphasizes
client relationships with less reliance on transactional
opportunities. While we anticipate that there will be a
continued environment of heightened uncertainty in our national and
local economies, we are confident in the bank's position to meet
those challenges as reflected in our current level of capital,
liquidity and human resources. As we enter our fifth full
year of business, we appreciate the continued support of our
shareholders, clients and communities that we serve."
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.
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Friendly
Hills Bank
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Balance
Sheets
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(Unaudited)
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(in thousands, except per share
information)
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12/31/10
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12/31/09
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ASSETS
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Cash and due from
banks
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$ 1,713
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$ 1,954
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Interest bearing deposits
with other financial institutions
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2,508
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1,915
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Cash and Cash
Equivalents
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4,221
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3,869
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Investment securities
available-for-sale
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28,334
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18,465
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Federal home Loan Bank
stock
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483
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314
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Loans, net of unearned
income
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61,296
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57,691
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Allowance for loan
losses
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(1,271)
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(1,156)
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Net Loans
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60,025
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56,535
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Premises and equipment,
net
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880
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1,014
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Accrued interest
receivable and other assets
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780
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795
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Total
Assets
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$ 94,723
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$ 80,992
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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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$ 22,908
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$ 22,061
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Interest-bearing
deposits
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50,890
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45,832
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Total Deposits
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73,798
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67,893
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FHLB advances
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8,750
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0
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Accrued interest payable
and other liabilities
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397
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218
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Total
Liabilities
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82,945
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68,111
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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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Additional
paid-in-capital
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1,004
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795
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Accumulated
deficit
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(4,962)
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(4,308)
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Accumulated other
comprehensive income
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(222)
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436
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Total
Shareholders' Equity
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11,778
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12,881
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Total
Liabilities and Shareholders' Equity
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$ 94,723
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$ 80,992
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Book Value
Per Share
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$ 7.29
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$ 7.97
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Friendly
Hills Bank
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Statements
of Operations
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(Unaudited)
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(in thousands, except per
share information)
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For the
twelve
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For the
twelve
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months
ended
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months
ended
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12/31/10
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12/31/09
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Interest Income
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$ 4,536
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$ 3,463
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Interest
Expense
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706
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489
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Net Interest
Income
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3,830
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2,974
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Provision for Credit
Losses
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1,082
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1,007
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Net Interest Income after
Provision for Credit Losses
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2,748
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1,967
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Other Income
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172
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147
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Operating
Expenses
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3,961
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3,623
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Gain (Loss) on Securities
& Hedging Contracts
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388
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0
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Earnings (Loss) before
Provision for Income Taxes
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(653)
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(1,509)
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Provision for Income
Taxes
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(1)
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(1)
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Net Earnings
(Loss)
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$ (654)
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$
(1,510)
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Basic and Diluted Earnings
(Loss) Per Share
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$ (0.40)
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$ (0.93)
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SOURCE Friendly Hills Bank