WHITTIER, Calif., July 23 /PRNewswire-FirstCall/ -- Friendly Hills
Bank (OTC:FHLB) (BULLETIN BOARD: FHLB) reported results for the
second quarter of 2007, its third full quarter of operations. The
bank opened for business on September 18, 2006. As of June 30,
2007, the bank reported total assets of $37.1 million, an increase
of 13% from $32.7 million on March 31, 2007. The bank's deposits
grew to $22.7 million or 27% from $17.8 million as of March 31,
2007. Noninterest-bearing deposits increased from $8.7 million on
March 31, 2007 to $10.5 million as of June 30, 2007, an increase of
21%. Interest bearing deposits advanced 33% from $9.2 million on
March 31, 2007 to $12.2 million on June 30, 2007. The bank's loan
portfolio continued to grow, increasing $4.8 million from March 31,
2007, or 84% to $10.5 million at June 30, 2007. Of the $10.5
million in loans, $5.7 million or 54% are commercial and industrial
loans to local businesses. The bank has an additional $8.4 million
in unfunded loan commitments and no residential 'sub prime'
mortgage loans. For the six months ended June 30, 2007, the bank
reported a net loss of $607,000, which includes a loan loss
provision of $76,000, or ($0.38) per share of common stock. For the
three months ended June 30, 2007, the bank reported a net loss of
$303,000, including a loan loss provision of $50,000, or ($0.19)
per share of common stock. These numbers also reflect the impact of
accounting rules that requires companies to include stock
compensation as an expense. "We have been very pleased with the
continued growth of the bank." commented Jeffrey K. Ball, Chief
Executive Officer of the Bank. "We believe our strong relationships
with the local communities have helped increase not only our
deposits but also our commercial loans which are relationship
driven. We believe this establishes a strong foundation for the
continued growth and development of the bank." 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:///
http://www.friendlyhillsbank.com/ or call 562-947-1920. Friendly
Hills Bank Balance Sheet (Unaudited) 3/31/07 6/30/07 Assets Cash
and cash equivalents $ 1,344,566 $ 1,473,621 Fed funds sold
16,015,000 15,005,000 Investment securities available-for-sale
8,454,737 8,989,077 Loans, net of unearned income 5,773,660
10,622,050 Allowance for loan losses (82,775) (132,916) Net loans
5,690,885 10,489,135 Premises and equipment, net 1,074,361
1,036,538 Accrued interest receivable and other assets 160,953
152,956 Total Assets $32,740,502 $37,146,326 Liabilities Deposits
Noninterest-bearing deposits $ 8,666,339 $10,497,259
Interest-bearing deposits 9,161,699 12,180,439 Accrued interest
payable and other liabilities 78,855 69,266 Total Liabilities
17,906,863 22,746,964 Stockholders' Equity Common stock 15,957,620
15,957,620 Accumulated deficit (1,249,074) (1,552,537) Additional
paid-in-capital 139,602 195,102 Accumulated other comprehensive
loss (14,539) (200,823) Total Stockholders' Equity 14,833,609
14,399,362 Total Liability & Stockholders' Equity $32,740,502
$37,146,326 Friendly Hills Bank Statement of Operations (Unaudited)
For the three For the six months ended months ended 3/31/07 6/30/07
Interest Income $ 378,724 $ 836,720 Interest Expense 56,113 143,157
Net Interest Income 322,611 693,563 Provision for Credit Losses
26,089 76,230 Net Interest Income after Provision for Credit Losses
296,522 617,333 Other Income 13,300 20,086 Operating Expenses
613,590 1,243,840 Loss before Provision for Income Taxes (303,768)
(606,421) Provision for Income Taxes (808) Net Loss (303,768)
$(607,229) Basic Income (Loss) Per Share $ (0.19) $ (0.38) Book
Value Per Share $ 9.18 $ 8.91 Shares Outstanding 1,616,000
1,616,000 The numbers in this press release are unaudited. Certain
statements in this press release, including statements 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, regulatory matters and those
discussed in filings by the Bank with the Federal Deposit Insurance
Corporation. 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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