WHITTIER, Calif., April 23 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (OTC:FHLB) (BULLETIN BOARD: FHLB) reported results for the
first quarter of 2008, its sixth full quarter of operations, since
opening on September 18, 2006. As of March 31, 2008, the bank
reported total assets of $49.2 million, an increase of 8% from
$45.5 million on December 31, 2007. The bank's overall deposit base
grew over 11% in the past quarter to $34.6 million from $31.1
million as of December 31, 2007. Non-interest bearing deposits
increased 12% from $12.9 million on December 31, 2007 to $14.4
million as of March 31, 2008. During the same time period interest
bearing deposits advanced 11% from $18.0 million to $20.1 million
on March 31, 2008. The bank's core deposit base remains strong with
over 42% in non-interest bearing accounts and 3.7% in Certificates
of Deposit over $100,000. 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 25% from $18.3
million as of December 31, 2007, to $22.8 million as of March 31,
2008. The portfolio remains diversified with $6.3 million or 28% in
Commercial and Industrial Loans to local businesses and $12.1
million in Commercial Real Estate loans of which $7.1 million or
31% in Owner Occupied properties. The bank has an additional $17.4
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 $322,611 in the quarter ended March 31, 2007, to $533,811
in the quarter ended March 31, 2008. For the most recent quarter
ending March 31, 2008, the bank reported a net loss of $251,819, or
($0.16) per share of common stock. This figure includes a loan loss
provision of $57,470 and was 17% lower than the March 31, 2007,
quarter end loss of $303,764 (which included a loan loss provision
of $26,089). The net loss numbers reflect the impact of accounting
rules that require companies to include stock compensation as an
expense. "The first quarter of 2008 has provided some unique
challenges for the banking industry as a result of increasing
concerns about the overall health of the economy and a dramatic 200
basis point drop in the Targeted Fed Funds Rate," commented Jeffrey
K. Ball, Chief Executive Officer. "We are proud of the bank's
performance during this time as we were able to continue our growth
while maintaining a large percentage of non-interest bearing
accounts which represent over 42% of our deposit base. On the asset
side we experienced meaningful growth in our loan portfolio while
maintaining our consistent underwriting standards and
diversification in loan type. This loan growth helped offset the
market decline in overall yields and the additional expenses we are
incurring to support our continued growth." 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
Consolidated Balance Sheet (Unaudited) 3/31/08 12/31/07 3/31/07
Assets Cash and cash equivalents $2,017,026 $ 1,357,598 $1,344,566
Fed funds sold 2,575,000 7,365,000 16,015,000 Investment securities
available-for-sale 20,582,479 17,339,953 8,454,737 Loans, net of
unearned income 23,072,868 18,492,128 5,773,660 Allowance for loan
losses (288,741) (231,271) (82,775) Net loans 22,784,127 18,260,857
5,690,885 Premises and equipment, net 931,381 960,604 1,074,361
Accrued interest receivable and other assets 314,530 218,938
160,953 Total Assets $49,204,543 $45,502,950 $32,740,502
Liabilities Deposits Noninterest-bearing deposits $14,439,028
$12,935,372 $8,666,339 Interest-bearing deposits 20,080,818
18,025,171 9,161,699 Accrued interest payable and other liabilities
93,702 94,926 78,855 Total Liabilities $34,613,548 $31,055,469
17,906,893 Stockholders' Equity Common stock $15,957,620
$15,957,620 $15,957,620 Accumulated deficit (2,266,144) (2,014,323)
(1,249,074) Additional paid-in-capital 366,591 303,591 139,602
Accumulated other comprehensive gain (loss) 532,928 200,593
(14,539) Total Stockholders' Equity 14,590,995 14,447,481
14,833,609 Total Liability & Stockholders' Equity $49,204,543
$45,502,950 $32,740,502 Friendly Hills Bank Statement of Operations
(Unaudited) For the three For the three months ended months ended
3/31/08 3/31/07 Interest Income $645,846 $378,723 Interest Expense
112,035 56,112 Net Interest Income 533,811 322,611 Provision for
Credit Losses 57,470 26,089 Net Interest Income after Provision for
Credit Losses 476,341 296,522 Other Income 26,780 13,300 Operating
Expenses 754,138 613,586 Loss before Provision for Income Taxes
(251,017) (303,764) Provision for Income Taxes (802) 0 Net Loss $
(251,819) $(303,764) Basic Income (Loss) Per Share $(0.16) $ (0.19)
Book Value Per Share $9.03 $8.94 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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