Freedom Bank Earns Record Quarterly Profits

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.

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
 
UNAUDITED
September 30, 2011   September 30, 2010
ASSETS
 
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
Loans receivable 149,538,098 136,707,966
Allowance for possible loan losses   (2,021,135 )   (1,723,007 )
Net Loans 147,516,963 134,984,959
Premises & equipment, net 234,041 340,695
Accrued interest & other receivables 440,886 480,973
Other assets 1,525,278 1,600,715
Deferred Tax Asset   612,000     -  
 
Total Assets $ 200,913,660   $ 176,147,204  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing deposits $ 31,773,798 $ 28,660,581
Interest Checking 38,848,386 17,321,751
Savings deposits 1,161,586 889,691
Time deposits   105,621,794     108,149,495  
Total Deposits 177,405,564 155,021,518
 
Other accrued expenses 471,848 514,651
Accrued interest payable   59,385     92,048  
Total Liabilities   177,936,797     155,628,217  
 
Stockholders' Equity:
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
 
UNAUDITED
 
For the three months ended For the nine months ended
September 30, September 30,
2011   2010 2011   2010
Interest Income
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 Expense
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
 
Other Income
Service charges & other income 199,542 157,337 387,696 339,892
 
 
Operating Expenses
Officers & employee compensation & benefits 856,012 783,257 2,533,616 2,306,892
Occupancy expense 130,926 139,477 400,565 404,150
Equipment & depreciation expense 52,212 55,087 170,092 179,521
Insurance expense 62,185 80,999 200,299 258,309
Professional fees 68,119 26,225 191,467 (5,137 )
Data & item processing 137,717 136,609 389,081 388,210
Business development 32,429 34,789 97,244 87,058
Franchise tax 48,840 44,871 154,115 149,265
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 $ 618,321 $ 561,600 $ 1,420,358 $ 1,381,351  
 
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
 

Contacts

Freedom Bank of Virginia
Craig S. Underhill, President & CEO
703-242-5300

Release Summary

Freedom Bank Earns Record Quarterly Profits

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Contacts

Freedom Bank of Virginia
Craig S. Underhill, President & CEO
703-242-5300