WHITTIER, Calif., May 2, 2011 /PRNewswire/ -- Friendly Hills Bank
(OTCBB: FHLB) reported results for the first quarter of 2011.
For the three month period ending March
31, 2011, the bank reported a profit of $171,000 or $0.11
per diluted share of common stock. This figure includes a
$28,000 increase in the value of an
interest rate cap which was purchased in 2010. The provision
for credit losses for the three months ended March 31, 2011, of $1,000 was 98% less than the $37,000 provision for the same period one year
earlier. The bank reported a profit of $507,000, or $0.31
per diluted share of common stock for the three months ended
March 31, 2010. This figure
includes a $454,000 gain on the sale
of investment securities.
As of March 31, 2011, the bank
reported total assets of $98.1
million, a 9% increase from $90.2
million as of March 31, 2010.
The bank's loan portfolio, net of unearned income, grew 5%
from $59.5 million as of March 31, 2010, to $62.3
million as of March 31,
2011. The portfolio remains diversified with $25.1 million or 40% in Commercial &
Industrial Loans to local businesses (including $15.0 million in Owner Occupied Commercial Real
Estate Loans), $20.5 million or 33%
in Residential Real Estate Loans to investors and $12.4 million or 20% in Commercial Real Estate
Loans to investors. The bank has an additional $17.5 million in unfunded loan commitments.
The bank's overall deposit base has grown 8% in the twelve
months ended March 31, 2011, from
$71.2 million as of March 31, 2010, to $77.2
million as of March 31, 2011.
Non-interest bearing deposits continue to form a substantial
part of the deposit base (33%), growing from $22.0 million to $25.7 million as of March 31, 2011. During the same time period
interest-bearing deposits grew from $49.2
million to $51.4 million on March 31,
2011. The bank has no deposits which were sourced
through brokers or other wholesale funding sources.
At March 31, 2011, shareholders'
equity was $11.9 million and the
bank's total risk-based capital ratio was 19.83%, 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 making some difficult decisions in the past year which
had a short-term impact on the bank's profitability," commented
Jeffrey K. Ball, Chief Executive
Officer, "we continued to grow and improve our operating
efficiencies. The long-term benefit of these decisions has
resulted in a banking franchise which has demonstrated
profitability while mitigating the increased risks associated with
asset quality and changes in interest rates. While there is
still a heightened level of uncertainty in the current environment,
we remain committed to the strength of our business model which
focuses more on client relationships and less on transactional
opportunities. This strategy provides a sound platform for
our Board of Directors to continue their focus on enhancing
long-term shareholder value."
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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3/31/11
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12/31/10
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3/31/10
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ASSETS
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Cash and due from
banks
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$ 2,788
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$ 1,713
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$ 2,045
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Interest bearing deposits
with other financial institutions
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4,900
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2,508
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1,133
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Cash and Cash
Equivalents
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7,688
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4,221
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3,178
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Investment securities
available-for-sale
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27,246
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28,334
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26,630
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Federal Home Loan Bank
stock
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521
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483
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314
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Loans, net of unearned
income
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62,264
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61,296
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59,480
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Allowance for loan
losses
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(1,371)
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(1,371)
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(1,193)
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Net Loans
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60,893
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59,925
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58,287
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Premises and equipment,
net
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836
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880
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969
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Accrued interest
receivable and other assets
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894
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780
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836
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Total
Assets
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$ 98,078
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$ 94,623
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$ 90,214
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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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$ 25,744
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$ 22,908
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$ 21,979
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Interest-bearing
deposits
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51,441
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50,890
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49,200
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Total Deposits
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77,185
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73,798
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71,179
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FHLB advances
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8,750
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8,750
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5,750
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Accrued interest payable
and other liabilities
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260
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297
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205
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Total
Liabilities
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86,195
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82,845
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77,134
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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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1,016
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1,004
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848
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Accumulated
deficit
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(4,790)
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(4,962)
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(3,801)
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Accumulated other
comprehensive income
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(301)
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(222)
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75
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Total
Shareholders' Equity
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11,883
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11,778
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13,080
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Total
Liabilities and Shareholders' Equity
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$ 98,078
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$ 94,623
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$ 90,214
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Book Value
Per Share
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$ 7.35
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$ 7.29
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$ 8.09
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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
three
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For the
three
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months
ended
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months
ended
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3/31/11
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3/31/10
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Interest Income
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$
1,160
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$ 1,101
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Interest
Expense
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160
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137
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Net Interest
Income
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1,000
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964
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Provision for Credit
Losses
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1
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37
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Net Interest Income after
Provision for Credit Losses
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999
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927
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Other Income
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37
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47
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Operating
Expenses
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893
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921
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Gain on Securities &
Hedging Contracts
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28
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454
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Earnings before Provision
for Income Taxes
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171
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507
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Provision for Income
Taxes
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0
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0
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Net Earnings
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$
171
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$
507
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Basic and Diluted Earnings
Per Share
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$
0.11
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$
0.31
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SOURCE Friendly Hills Bank