Freedom Bank Earns $2.4 Million in 2010

FAIRFAX, Va.--(BUSINESS WIRE)--Freedom Bank of Virginia (OTCBB:FDVA) reported Net Income of $2,433,514 in 2010. CEO, John T. Rohrback stated, “We are pleased to report the improved level of earnings achieved in 2010.” These unaudited results include Income of $1,821,514, before Income Taxes and a $612,000 tax benefit derived from a tax loss carry forward. Net Income in the Fourth Quarter of 2010 was $1,052,163, which included $440,163 of Pre-tax Income and the $612,000 tax benefit. In 2009, the Bank had a Net Loss of $3,630,535 for the year and $531,371 Net Income for the Fourth Quarter. Quarterly Net Income for the Four Quarters in 2010 was $362,253 in the First Quarter, $457,498 in the Second Quarter, $561,600 in the Third Quarter, and $1,052,163, including the tax benefit, in the Fourth Quarter. Freedom Bank has posted profits in each of the preceding seven quarters, after taking a $3,810,744 Provision for Loan Losses in the First Quarter, 2009.

“Freedom Bank’s capital remains strong with all capital ratios remaining above the 'Well Capitalized' regulatory ratios.”

Interest Income totaled $9,155,929 in 2010, compared to $8,199,336 in 2009. In the Fourth Quarter 2010, Interest Income was $2,270,762, compared to $2,173,218 in 2009. Interest Expense was $2,197,618 in 2010, compared to $2,879,159 in 2009. In the Fourth Quarter 2010, Interest Expense was $541,206, compared to $516,779 for the respective period.

The Provision for Possible Loan Losses improved significantly with $200,000 recorded for the year ending December 31, 2010, compared to $4,435,744 for the year ending December 31, 2009. No Provision was recorded in the Fourth Quarter 2010, compared to a Provision of $211,000 in the Fourth Quarter of 2009.

Other Income in 2010 totaled $548,428, compared to $572,448 in 2009. In the Fourth Quarter 2010, Other Income was $208,536, compared to $188,640. The Bank did not have any gain on sale of real estate in 2010, compared to $462,621 in 2009. During the Fourth Quarter 2009, the Gain on Sale of Other Real Estate Owned was $145,919. CEO Rohrback stated, “The Bank did not hold any OREO property in 2010.”

Total Operating Expense was $5,485,225 as of December 31, 2010, compared to $5,550,037 as of December 31, 2009. In the Fourth Quarter 2010, Total Operating Expense was $1,497,929, compared to $1,248,627 in the Fourth Quarter 2009.

For the year ended December 31, 2010, the Bank’s Net Income per Share was $1.03, compared to a Net Loss per Share of $1.54 for the year ended December 31, 2009. Net Income per Share for the Fourth Quarter 2010 was $0.44, compared to $0.23 in Fourth Quarter 2009.

Financial Condition

Cash, Federal Funds Sold and Investment Securities are primary and secondary sources of liquidity to meet obligations as they come due and are sources of funds for growth of loans outstanding. As of December 31, 2010, these assets totaled $28,425,469. Liquid assets were 16.5% of Total Assets. On December 31, 2009, the Bank held $20,863,589 in Cash, Federal Funds and Investment Securities, 13.3% of Total Assets. The Bank owned $615,600 of Federal Reserve Bank Stock at December 31, 2010, compared to $556,400 at the end of 2009.

Loans Receivable ended 2010, at $141,067,476, compared to $135,400,086 at the end of 2009. This modest 4.2% increase was underscored by extraordinary repayments of previously originated loans.

Other Assets including Premises and Equipment, Accrued Interest, Other Receivables, Other Assets, and Deferred Tax Asset totaled $2,976,926 as of December 31, 2010, compared to $2,369,485 as of December 31, 2009.

Total Deposits increased to $149,122,963 on December 31 2010, up from $137,431,805 on December 31, 2009. The $11.7 million deposit increase included $6.7 million in Time Deposits and $5.0 million in Transaction Account Deposits.

Total Stockholder’s Equity at December 31, 2010 was $21,575,018, compared to $19,059,028 on December 31, 2009, an increase of 13.20%. Book value per share was $9.15 at December 31, 2010. CEO Rohrback stated, “Freedom Bank’s capital remains strong with all capital ratios remaining above the 'Well Capitalized' regulatory ratios.” As of December 31, 2010, Tier 1 Leverage Ratio was 12.35%, more than double the ratio considered by regulators to be “Well Capitalized”. Tier 1 Risk Based Capital Ratio was 14.85%, more than 8% over the regulatory guidelines and Tier 2 Risk Based Capital Ratio was 16.05%, well above the 10% regulatory position.

CEO Rohrback stated “that during the last quarter of the year, the bank continued its plan to increase its loan and deposit growth by hiring two new commercial relationship managers. Along with the current business development officers, these individuals will specialize in servicing the financial needs of medical professionals, homeowners associations and government contracting.”

Freedom Bank is a community-oriented, locally-owned bank with locations in Fairfax and Vienna, Virginia. For information about Freedom Bank deposit and loans services, visit their website at www.freedombankva.com.