WHITTIER, Calif., Aug. 3, 2012 /PRNewswire/ -- Friendly Hills
Bank (the "bank") (OTCBB: FHLB) reported results for the second
quarter of 2012.
For the six month period ending June 30,
2012, the bank reported a profit of $172,000 or $0.11
per diluted share of common stock. This figure includes a
$20,000 increase in the value of the
interest rate caps. The bank reported a loss of $23,000 or $0.01
per diluted share of common stock for the six months ended
June 30, 2011. This figure
includes a $173,000 provision for
credit losses, a $62,000 decrease in
the value of an interest rate cap, and a $41,000 loss on the sale of securities.
As of June 30, 2012, the bank
reported total assets of $98.9
million, a 1% decrease from $99.6
million as of June 30,
2011. The bank's loan portfolio, net of unearned income,
decreased 8% from $62.3 million as of
June 30, 2011, to $57.3 million as of June
30, 2012. The portfolio remains diversified with
$27.5 million or 48% in Commercial
& Industrial Loans to local businesses (including $17.1 million in Owner Occupied Commercial Real
Estate Loans), $16.1 million or 28%
in Residential Real Estate Loans to investors and $9.0 million or 16% in Commercial Real Estate
Loans to investors. The bank has an additional $13.8 million in unfunded loan commitments.
The bank's overall deposit base has decreased by 1% in the
twelve months ended June 30, 2012,
from $78.2 million as of June 30, 2011, to $77.1
million as of June 30,
2012. Non-interest bearing deposits continue to form a
substantial part of the deposit base (38.5%), growing from
$26.3 million to $29.7 million as of
June 30, 2012. During the same
time period interest-bearing deposits decreased from $51.9 million to $47.4
million on June 30,
2012. The bank has no deposits which were sourced
through brokers or other wholesale funding sources.
At June 30, 2012, shareholders'
equity was $12.9 million and the
bank's total risk-based capital ratio was 20.3%, significantly
exceeding the minimum "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.
"Low asset yields and opportunities for growth continue to be a
significant challenge as we maintain our consistent underwriting
standards through difficult market conditions," commented
Jeffrey K. Ball, Chief Executive
Officer. "The current interest rate environment, coupled with
a competitive market for qualifying loans, has resulted in lower
yields on all asset classifications. This has led to the
prudent decrease in the bank's balance sheet – particularly in the
form of interest bearing deposits. We continue to benefit
from a low cost of funds while tightly managing expenses and
maintaining an appropriate interest rate risk profile through this
current environment. The bank remains well positioned in
terms of capital, liquidity and reserves with a continued focus on
long-term shareholder value."
Company Profile:
Friendly Hills Bank is a community bank which was formed to
primarily serve the Southern
California communities of eastern Los Angeles County and northern Orange
County. 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.
Friendly Hills Bank
|
Balance
Sheets (Unaudited)
|
(in
thousands, except per share information)
|
|
|
|
6/30/12
|
|
12/31/11
|
|
6/30/11
|
ASSETS
|
|
|
|
|
|
|
Cash and
due from banks
|
$
2,499
|
|
$
2,305
|
|
$
2,989
|
Interest
bearing deposits with other financial institutions
|
10,750
|
|
4,575
|
|
8,188
|
|
|
Cash and
Cash Equivalents
|
13,249
|
|
6,880
|
|
11,177
|
Investment
securities available-for-sale
|
25,282
|
|
26,826
|
|
25,242
|
Federal
Home Loan Bank stock
|
605
|
|
610
|
|
610
|
Loans, net
of unearned income
|
57,348
|
|
60,916
|
|
62,279
|
Allowance
for loan losses
|
(1,812)
|
|
(1,677)
|
|
(1,408)
|
|
|
Net
Loans
|
55,536
|
|
59,239
|
|
60,871
|
Premises
and equipment, net
|
690
|
|
739
|
|
789
|
Accrued
interest receivable and other assets
|
3,552
|
|
3,673
|
|
888
|
|
|
Total
Assets
|
$
98,914
|
|
$
97,967
|
|
$
99,577
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
$
29,687
|
|
$
27,111
|
|
$
26,324
|
|
Interest-bearing deposits
|
47,377
|
|
49,269
|
|
51,882
|
|
|
Total
Deposits
|
77,064
|
|
76,380
|
|
78,206
|
FHLB
advances
|
8,750
|
|
8,750
|
|
8,750
|
Accrued
interest payable and other liabilities
|
245
|
|
247
|
|
229
|
|
|
Total
Liabilities
|
86,059
|
|
85,377
|
|
87,185
|
Shareholders' Equity
|
|
|
|
|
|
|
Common
stock, no par value, 10,000,000 shares authorized:
|
|
|
|
|
|
|
1,616,000 shares issued and outstanding
|
15,958
|
|
15,958
|
|
15,958
|
|
Additional
paid-in-capital
|
1,066
|
|
1,053
|
|
1,028
|
|
Accumulated deficit
|
(4,640)
|
|
(4,813)
|
|
(4,984)
|
|
Accumulated other comprehensive income
|
471
|
|
392
|
|
390
|
|
|
Total
Shareholders' Equity
|
12,855
|
|
12,590
|
|
12,392
|
|
|
Total
Liabilities and Shareholders' Equity
|
$98,914
|
|
$
97,967
|
|
$
99,577
|
|
|
|
|
|
|
|
|
Book
Value Per Share
|
$
7.95
|
|
$
7.79
|
|
$
7.67
|
Friendly Hills Bank
|
Statements of Operations
(Unaudited)
|
(in
thousands, except per share information)
|
|
|
|
|
|
|
|
|
|
For the
six
|
|
For the
six
|
|
|
|
months
ended
|
|
months
ended
|
|
|
|
6/30/12
|
|
6/30/11
|
Interest
Income
|
$
2,125
|
|
$
2,318
|
Interest
Expense
|
256
|
|
321
|
|
Net
Interest Income
|
1,869
|
|
1,997
|
Provision
for Credit Losses
|
0
|
|
173
|
|
Net
Interest Income after Provision for Credit Losses
|
1,869
|
|
1,824
|
|
|
|
|
|
Other
Income
|
139
|
|
84
|
Operating
Expenses
|
1,855
|
|
1,817
|
Gain
(Loss) on Securities & Hedging Contracts
|
20
|
|
(103)
|
Earnings
before Provision for Income Taxes
|
173
|
|
(12)
|
Income Tax
Expense
|
(1)
|
|
(11)
|
|
Net
Earnings
|
$
172
|
|
$
(23)
|
|
|
|
|
|
|
Basic and
Diluted Earnings Per Share
|
$
0.11
|
|
$
(0.01)
|
SOURCE Friendly Hills Bank