Friendly Hills Bank Continues Growth Through Fourth Quarter
18 February 2010 - 12:00AM
PR Newswire (US)
WHITTIER, Calif., Feb. 17 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (BULLETIN BOARD: FHLB) reported results for the fourth quarter
of 2009, completing its third full year of operations since opening
on September 18, 2006. As of December 31, 2009, the bank reported
total assets of $81.0 million, a 28% increase from $63.5 million as
of December 31, 2008. The bank's overall deposit base has grown
over 38% in the twelve months ended December 31, 2009, from $49.1
million as of December 31, 2008, to $67.9 million as of December
31, 2009. Non-interest bearing deposits continue to form a
substantial part of the deposit base (33%), growing from $18.6
million to $22.1 million as of December 31, 2009. During the same
time period interest-bearing deposits grew from $30.5 million to
$45.8 million on December 31, 2009. 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 unearned
income, grew 56% from $37.0 million as of December 31, 2008, to
$57.7 million as of December 31, 2009. The portfolio remains
diversified with $11.8 million or 20% in Commercial &
Industrial Loans to local businesses, $20.3 million or 35% in
Residential Real Estate Loans to investors and $22.0 million or 38%
in Commercial Real Estate Loans. Owner Occupied properties
represent the largest component of the Commercial Real Estate
Portfolio (26%) with $14.9 million outstanding. The bank has an
additional $18.9 million in unfunded loan commitments. For the
twelve month period ending December 31, 2009, the bank reported a
net loss of $1,510,032 or ($0.93) per diluted share of common
stock. This figure includes a loan loss provision of $1,016,414 for
the twelve months ended December 31, 2009, which was 214% higher
than the $323,963 provision for the same period one year earlier.
The bank reported a net loss of $783,316, or ($0.48) per diluted
share of common stock for the twelve months ended December 31,
2008. The increase in the allowance for loan losses reflects the
growth in the loan portfolio, the reinstatement of reserve used to
cover charge-offs and an increased provision is reflective of
management's cautionary position towards potential risks associated
with current economic conditions. At December 31, 2009,
shareholders' equity was $12.9 million and the bank's total
risk-based regulatory capital ratio was 21.51%, 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. "This past year has been one of the
most challenging in the history of our industry," commented Jeffrey
K. Ball, Chief Executive Officer. "The combination of historically
low interest rates and an uncertain economic environment have
presented meaningful challenges. At this time it is difficult to
anticipate when those conditions will improve. But despite these
circumstances we have been able to continue the consistent growth
of our institution. A major component of commercial banking is the
management of risk and we have responded to the heightened risk
environment by remaining focused on our original business plan.
Diligent underwriting, strong service levels and active management
of our loan portfolio have enabled us to position the bank in a
manner which we believe will allow us to ride out the current risk
cycle and support the continued growth of our franchise. While it
has been difficult to witness the impact of the current economic
environment on our local markets, we are proud of our track record
in serving our clients while identifying opportunities for growth
as other institutions have compromised on service. We remain
focused on the establishment of sound commercial banking
relationships while maintaining strong liquidity and a low cost of
funds. Despite taking action from an accounting standpoint on some
of our loan assets where collateral values have been compromised
due to the uncertain environment, we remain confident in the
repayment capability of all of our borrowers." 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 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 Sheets (Unaudited) (in thousands, except per
share information) 12/31/09 12/31/08 -------- -------- Assets Cash
and cash equivalents $2,224 $2,678 Fed funds sold 1,645 6,980
Investment securities available-for-sale 18,779 15,527 Loans, net
of unearned income 57,691 36,987 ------ ------ Allowance for loan
losses (1,156) (555) ------ ---- Net loans 56,535 36,432 Premises
and equipment, net 1,014 1,259 Accrued interest receivable and
other assets 795 632 --- --- Total Assets $80,992 $63,508 =======
======= Liabilities Deposits: Non-interest-bearing deposits $22,093
$18,583 Interest-bearing deposits 45,800 30,475 ------ ------ Total
Deposits 67,893 49,058 Accrued interest payable and other
liabilities 218 155 --- --- Total Liabilities $68,111 $49,213
Stockholders' Equity Common stock, no par value, 10,000,000 shares
authorized; $15,958 $15,958 1,616,000 shares issued and outstanding
Accumulated deficit (4,308) (2,797) Additional paid-in-capital 795
543 Accumulated other comprehensive gain 436 591 --- --- Total
Stockholders' Equity 12,881 14,295 ------ ------ Total Liability
& Stockholders' Equity $80,992 $63,508 ======= ======= Book
Value Per Share $7.97 $8.85 Friendly Hills Bank Statements of
Operations (Unaudited) (in thousands, except per share information)
For the twelve For the twelve months ended months ended 12/31/09
12/31/08 -------------- -------------- Interest Income $ 3,463
$2,967 Interest Expense 489 438 ------- ------- Net Interest Income
2,974 2,529 Provision for Credit Losses 1,016 324 Net Interest
Income after Provision for Credit Losses 1,958 2,205 Other Income
147 125 Operating Expenses 3,614 3,149 Gain on Securities 0 37
------- ------- Loss before Provision for Income Taxes (1,509)
(782) Provision for Income Taxes (1) (1) ------- ------- Net Loss
$(1,510) $ (783) ======= ======= Basic (Loss) Per Share $(0.93)
$(0.48) ======= ======= DATASOURCE: Friendly Hills Bank CONTACT:
Jeffrey K. Ball, Chief Executive Officer, or Daniel L.Erickson,
Chief Financial Officer, both of Friendly Hills
Bank,+1-562-947-1920 Web Site: http://www.friendlyhillsbank.com/
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