WHITTIER, Calif., Jan. 31, 2012 /PRNewswire/ -- Friendly Hills Bank
(the "bank") (OTCBB: FHLB) reported results for the year ended
December 31, 2011, after completing
its fifth full year of operations since opening on September 18, 2006.
For the twelve month period ending December 31, 2011, the bank reported a profit of
$149,000 or $0.09 per diluted share of common stock.
This figure includes a $169,000
provision for loan losses, $48,000
loss on the sale of investment securities, and a $147,000 decrease in the value of interest rate
caps. The bank reported a loss of $654,000 or $0.40
per diluted share of common stock for the twelve months ended
December 31, 2010. This figure
includes a $1,182,000 provision for
loan losses, a $537,000 gain on the
sale of investment securities, and a $149,000 decrease in the value of an interest
rate cap.
Excluding the provision for loan losses, investment securities
gains and losses, and adjustments to the carrying value of interest
rate caps ("Core Earnings"), the bank reported net income of
$513,000 for the twelve months ended
December 31, 2011 compared to a
profit of $140,000 for the same
period in 2010.
As of December 31, 2011, the bank
reported total assets of $98.0
million, a 4% increase from $94.6
million as of December 31,
2010. The bank's loan portfolio, net of unearned
income, decreased 1% from $61.3
million as of December 31,
2010, to $60.9 million as of
December 31, 2011. The
portfolio remains diversified with $26.5
million or 44% in Commercial & Industrial Loans to local
businesses (including $15.8 million
in Owner Occupied Commercial Real Estate Loans), $19.6 million or 32% in Residential Real Estate
Loans to investors and $9.9 million
or 16% in Commercial Real Estate Loans to investors. The bank
has an additional $12.0 million in
unfunded loan commitments.
The bank's overall deposit base has grown 3% in the twelve
months ended December 31, 2011, from
$73.8 million as of December 31, 2010, to $76.4 million as of December 31, 2011. Non-interest bearing
deposits continue to form a substantial part of the deposit base
(35.5%), growing from $22.9 million to $27.1
million as of December 31,
2011. During the same time period interest-bearing
deposits decreased from $50.9 million
to $49.3 million on December 31, 2011. The bank has no deposits
which were sourced through brokers or other wholesale funding
sources.
At December 31, 2011,
shareholders' equity was $12.6
million and the bank's total risk-based capital ratio was
19.5%, 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.
"The environment for community banks presented some significant
challenges over the past year," commented Jeffrey K. Ball, Chief Executive Officer, "but
we remain confident in the future opportunities for our company.
At the beginning of the past year our Board of Directors
supported management's recommendation to prioritize profitability
over growth. This decision was driven by the economic
conditions of our market and resulted in a modest 4% increase in
the size of the balance sheet with a 266% increase in the Core
Earnings of the company. While the environment remains
challenging, the company is well positioned to pursue additional
opportunities for earnings growth with sufficient capital and
liquidity to support further enhancement of our relationship driven
model."
"Since establishing our company the economics of community
banking have changed dramatically," Ball continued. "Margins
are slimmer, regulations are more restrictive with higher costs for
monitoring and compliance while the business environment in our
market area is less robust. Our Board of Directors has
responded to these changing conditions while remaining committed to
the delivery of shareholder value. Maintaining our focus on a
consultative approach while broadening our product offering are key
strategies we have identified in maintaining a community bank
platform which can deliver meaningful profitability for our
shareholders. We appreciate the continued support of our
clients, our employees and our investors as we remain committed to
making Friendly Hills Bank the best place to do business, the best
place to work and the best place to invest".
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.
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|
Friendly
Hills Bank
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|
Balance
Sheets (Unaudited)
|
|
(in
thousands, except per share information)
|
|
|
|
|
12/31/11
|
|
12/31/10
|
|
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|
ASSETS
|
|
|
|
|
|
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|
Cash and due from
banks
|
$ 2,305
|
|
$ 1,713
|
|
|
|
Interest bearing deposits
with other financial institutions
|
4,575
|
|
2,508
|
|
|
|
|
|
Cash and Cash
Equivalents
|
6,880
|
|
4,221
|
|
|
|
Investment securities
available-for-sale
|
26,826
|
|
28,334
|
|
|
|
Federal Home Loan Bank
stock
|
610
|
|
483
|
|
|
|
Loans, net of unearned
income
|
60,916
|
|
61,296
|
|
|
|
Allowance for loan
losses
|
(1,677)
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|
(1,371)
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|
|
|
|
|
Net Loans
|
59,239
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|
59,925
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|
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Premises and equipment,
net
|
739
|
|
880
|
|
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Accrued interest
receivable and other assets
|
3,673
|
|
780
|
|
|
|
|
|
Total
Assets
|
$ 97,967
|
|
$ 94,623
|
|
|
|
|
|
|
|
|
|
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LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
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Liabilities
|
|
|
|
|
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|
Deposits
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 27,111
|
|
$ 22,908
|
|
|
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|
Interest-bearing
deposits
|
49,269
|
|
50,890
|
|
|
|
|
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Total Deposits
|
76,380
|
|
73,798
|
|
|
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FHLB advances
|
8,750
|
|
8,750
|
|
|
|
Accrued interest payable
and other liabilities
|
247
|
|
297
|
|
|
|
|
|
Total
Liabilities
|
85,377
|
|
82,845
|
|
|
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Shareholders'
Equity
|
|
|
|
|
|
|
|
Common stock, no par
value, 10,000,000 shares authorized:
|
|
|
|
|
|
|
|
1,616,000 shares issued and
outstanding
|
15,958
|
|
15,958
|
|
|
|
|
Additional
paid-in-capital
|
1,053
|
|
1,004
|
|
|
|
|
Accumulated
deficit
|
(4,813)
|
|
(4,962)
|
|
|
|
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Accumulated other
comprehensive income (loss)
|
392
|
|
(222)
|
|
|
|
|
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Total
Shareholders' Equity
|
12,590
|
|
11,778
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$97,967
|
|
$ 94,623
|
|
|
|
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|
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Book Value
Per Share
|
$ 7.79
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|
$ 7.29
|
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Friendly
Hills Bank
|
|
Statements
of Operations (Unaudited)
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(in
thousands, except per share information)
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For the
twelve
months
ended
|
|
For the
twelve
months
ended
|
|
|
|
12/31/11
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|
12/31/10
|
|
Interest Income
|
$
4,648
|
|
$
4,536
|
|
Interest
Expense
|
610
|
|
706
|
|
|
Net Interest
Income
|
4,038
|
|
3,830
|
|
Provision for Loan
Losses
|
169
|
|
1,182
|
|
|
Net Interest Income after
Provision for Loan Losses
|
3,868
|
|
2,648
|
|
Other Income
|
186
|
|
172
|
|
Operating
Expenses
|
3,649
|
|
3,861
|
|
Gain (Loss) on Investment
Securities & Hedging Contracts
|
(196)
|
|
388
|
|
Earnings (Loss) before
Provision for Income Taxes
|
210
|
|
(653)
|
|
Income Tax
Expense
|
61
|
|
1
|
|
|
Net Earnings
(Loss)
|
$
149
|
|
$
(654)
|
|
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|
|
|
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|
Basic and Diluted Earnings
(Loss) Per Share
|
$
0.09
|
|
$
(0.40)
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SOURCE Friendly Hills Bank