WHITTIER, Calif., Oct. 31 /PRNewswire-FirstCall/ -- Friendly Hills Bank
(OTC Bulletin Board: FHLB) reported results for the third quarter of 2008, its
eighth full quarter of operations, since opening on September 18, 2006. As of
September 30, 2008, the bank reported total assets of $60.9 million, a 34%
increase from $45.5 million as of December 31, 2007.
The bank's overall deposit base has grown over 41% in the nine months
ended September 30, 2008, from $31.5 million as of December 31, 2007, to $46.9
million as of September 30, 2008. Non-interest bearing deposits continue to
form a substantial part of the deposit base (37%), growing from $12.9 million
at year-end to $17.4 million as of September 30, 2008. During the same time
period interest bearing deposits advanced over 60% from $18.0 million to $29.5
million on September 30, 2008. 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, more than doubling from $18.3 million as of December 31,
2007, to $36.8 million as of September 30, 2008. The portfolio remains
diversified with $9.8 million or 26% in Commercial & Industrial Loans to local
businesses and $16.7 million or 45% in Commercial Real Estate Loans. Owner
Occupied properties represent the largest component of the Commercial Real
Estate Portfolio (over 52%) with $8.5 million outstanding. The bank has an
additional $17.0 million in unfunded loan commitments with no non-performing
loans or residential 'sub-prime' mortgage loans.
The bank's primary source of income is Net Interest Income which increased
by over 67% from $1.1 million in the nine months ended September 30, 2007, to
$1.8 million in the nine months ended September 30, 2008. This increase was a
contributing factor in the bank reducing its net loss for the nine months
ended September 30, 2008, by 32% from $854,610, or ($0.53) per diluted share
of common stock for the nine months ended September 30, 2007, to $578,916, or
($0.36) per diluted share of common stock. These figures include a loan loss
provision of $237,313 for the nine months ended September 30, 2008, which was
115% higher than the $110,227 provision for the same period one year earlier.
The increase in reserves reflects the growth in the loan portfolio as the bank
maintained its Allowance for Loan Losses at 1.25% of loans outstanding.
