FAIRFAX, Va.--()--The Freedom Bank of Virginia (Bulletin Board:FDVA.OB) earned a record third quarter net profit of $618,321 ($0.26 per share), a 10.0 % increase from $561,600 ($0.24 per share) for the same period last year. This is the tenth consecutive profitable quarter for the Bank.
“The Bank invested in staff in the first half of 2011 to support the growth of two of the Bank’s initiatives, the medical professionals practice and the government contractor group, both of which contributed to the growth in loans and operating deposits during the third quarter.”
Assets broke the $200 million level at $200,913,660 at the end of the third quarter, up from $176,147,204 for the same period the prior year. Gross loans increased to $149,538,098 at September 30, 2011, up from $136,707,966 at September 30, 2010. Stockholder’s Equity increased to $22,976,863, up from $20,518,987 as of the end of the third quarter last year. All were at record levels at September 30th.
Primary drivers for the quarter were increased interest income resulting from a $12,830,132 increase in loans since September 30, 2010, as well as a $72,500 gain on the sale of securities in the period.
Interest free demand deposits increased 11% from September 30, 2010 to $31,773,798. Including increases in money market accounts, total transaction accounts increased 54% from September 30, 2010 to $70,622,184. This allowed the Bank to reduce its more expensive CD balances by $2,527,701, yet still grow total deposits by 14% since September 30, 2010.
President & CEO Craig S. Underhill said, “The Bank invested in staff in the first half of 2011 to support the growth of two of the Bank’s initiatives, the medical professionals practice and the government contractor group, both of which contributed to the growth in loans and operating deposits during the third quarter."
Capital continues to be the strength of the Bank. Since December 31, 2009, Freedom Bank has increased its common equity by $3,917,835 (21%) to $22,976,863 as of September 30, 2011 through earnings. Book value per share grew to $9.72 per share at quarter end. Regulatory capital minimums for Tier 1 Leverage Ratio, Risk Based Capital Tier 1, and Risk Based Capital Tier 2 were 5.0%, 6.0% and 10.0% respectively. At September 30, 2011 the ratios for the Bank were 12.15%, 15.03% and 16.28% respectively, all in the well capitalized category. The Bank remains committed to maintaining a strong capital base to serve the needs of its customers and stockholders.
Freedom Bank is a community-oriented, locally-owned bank with locations in Fairfax and Vienna, Virginia. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our quarterly and annual reports filed with the Board of Governors of the Federal Reserve System. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
|Condensed Statement of Condition|
|As of September 30, 2011|
|September 30, 2011||September 30, 2010|
|Cash and due from banks||$||18,072,108||$||3,693,179|
|Federal funds sold||18,742,000||26,150,000|
|Interest Bearing Balances with Banks||1,004,071||-|
|Investment securities available for sale, at fair value||11,325,335||5,992,507|
|Investment securities held to maturity||765,578||2,306,026|
|Federal Reserve Bank stock||675,400||598,150|
|Allowance for possible loan losses||(2,021,135||)||(1,723,007||)|
|Premises & equipment, net||234,041||340,695|
|Accrued interest & other receivables||440,886||480,973|
|Deferred Tax Asset||612,000||-|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Non-interest bearing deposits||$||31,773,798||$||28,660,581|
|Other accrued expenses||471,848||514,651|
|Accrued interest payable||59,385||92,048|
|Common stock, $5 par value. (5,000,000 shares authorized:|
|2,363,665 shares issued and outstanding, September 30, 2011|
|2,357,361 shares issued and outstanding, September 30, 2010)||11,818,325||11,786,805|
|Additional paid-in capital||16,046,069||16,002,413|
|Accumulated other comprehensive income||32,920||122,741|
|Retained earnings (deficit)||(4,920,451||)||(7,392,972||)|
|Total Stockholders' Equity||22,976,863||20,518,987|
|Total Liabilities and Stockholders' Equity||$||200,913,660||$||176,147,204|
|Statement of Operations|
|As of September 30, 2011|
|For the three months ended||For the nine months ended|
|September 30,||September 30,|
|Interest & fees on loans||$||2,235,785||$||2,256,641||$||6,797,098||$||6,559,845|
|Interest on investment securities||107,714||102,502||281,844||292,890|
|Interest on Federal funds sold||8,321||14,132||26,154||32,432|
|Total Interest Income||2,351,820||2,373,275||7,105,096||6,885,167|
|Interest on deposits||441,208||585,087||1,373,967||1,656,412|
|Net Interest Income||1,910,612||1,788,188||5,731,129||5,228,755|
|Provision for Possible Loan Losses||20,000||-||333,000||200,000|
|Net Interest Income after|
|Provision for Possible Loan Losses||1,890,612||1,788,188||5,398,129||5,028,755|
|Service charges & other income||199,542||157,337||387,696||339,892|
|Officers & employee compensation & benefits||856,012||783,257||2,533,616||2,306,892|
|Equipment & depreciation expense||52,212||55,087||170,092||179,521|
|Data & item processing||137,717||136,609||389,081||388,210|
|Other operating expenses||83,393||82,611||228,988||219,028|
|Total Operating Expenses||1,471,833||1,383,925||4,365,467||3,987,296|
|Income before Income Taxes||618,321||561,600||1,420,358||1,381,351|
|Provision for Income Taxes||-||-||-||-|
|Net Income Per Common Share||$||0.26||$||0.24||$||0.60||$||0.59|
|Net Income Per Diluted Share||$||0.26||$||0.24||$||0.60||$||0.59|