Friendly Hills Bank reported unaudited earnings results for the nine months ended September 30, 2009. For the period, the company reported net loss was $1.04 million or $0.64 basic and diluted loss per share against $579,000 or $0.36 basic and diluted loss per share for the same period a year ago. Net interest income was $2.1 million against $1.8 million for the same period a year ago. Loss before provision for income taxes was $1.03 million against $578,000 for the same period a year ago. As on September 30, 2009, book value per share was $8.31 against $8.60 per share. The bank also announced that Daniel L. Erickson has joined the executive management team as Executive Vice President/Chief Financial Officer. Mr. Erickson brings an extensive amount of experience in financial, technological and operational management with community banks.

Friendly Hills Bank reported unaudited earnings results for the six months ended June 30, 2009. For the six months, the company has posted net loss of $736,000 or $0.46 basic and diluted per share on net interest income of $1,292,000 compared to net loss of $439,000 or $0.27 basic and diluted per share on net interest income of $1,147,000 for the same period a year ago. Loss before provision for income tax was $735,000 compared to $438,000 for the same period a year ago. The increase in reserves reflects the growth in the loan portfolio and an increased provision reflective of management's cautionary position towards potential risks associated with current economic conditions. The net loss numbers also reflect the impact of a special deposit insurance assessment which is being imposed on all insured institutions by the Federal Deposit Insurance Corporation and the recurring effect of accounting rules that require companies to include stock compensation as an expense. Book value per share was $8.35 compared to $8.51 for the same period a year ago.

Friendly Hills Bank reported unaudited earnings results for the first quarter ended March 31, 2009. The company's primary source of income is net interest income which increased by 13% from $533,811 in the three months ended March 31, 2008, to $600,719 in the three months ended March 31, 2009. For the quarter ending March 31, 2009, the bank reported a net loss of $419,216, or $0.26 per diluted share of common stock. This figure includes a loan loss provision of $174,281 for the three months ended March 31, 2009, which was 203% higher than the $57,470 provision for the same period one year earlier. The bank reported a net loss of $251,819, or $0.16 per diluted share of common stock for the three months ended March 31, 2008. The increase in reserves reflects the growth in the loan portfolio and an increased provision reflective of management's cautionary position towards potential risks associated with current economic conditions. The net loss numbers also reflect the impact of accounting rules that require companies to include stock compensation as an expense. Loss before Provision for Income Taxes was $419,000 against loss before Provision for Income Taxes was $251,000 for the same period a year ago.