FAIRFAX, Va.--()--The Freedom Bank of Virginia (Bank) (Bulletin Board:FDVA.OB) earned a pre-tax net profit in 2011 of $1,900,300 ($0.80 per share), up from $1,821,514 in 2010 ($0.77 per share).
“The Bank’s investment in new lending staff paid off in 2011 through improved loan growth. These same lenders also generated new deposit customers, resulting in significant increases in transaction account balances held by the Bank.”
Freedom Bank took a tax benefit of $612,000 in 2010 that increased net profit after taxes to $2,433,514 in 2010. No benefits were taken for taxes in 2011. This is the second consecutive year of profit as well as the eleventh consecutive profitable quarter for the Bank.
Assets broke the $200 million level at $207,557,264 at 12/31/2011, up 21.1% from $171,350,118 at 12/31/2010. Gross loans increased to $157,414,693 at 12/31/2011, up 11.6% from $141,067,476 at 12/31/2011. Stockholder’s Equity increased to $23,697,402, up 9.8% from $21,575,018 at 12/31/2010. Book value per share was $10.03 per share at 12/31/2011, up from $9.15 the prior year. All were at record levels at 12/31/2011.
Primary drivers for the increased interest income were a $16,347,217 increase in loans and an $8,077,806 increase in investment securities held at 12/31/2011 versus the prior year.
At 12/31/2011 deposits in transaction accounts were $67,066,073, up 37% from $48,836,933 the prior year. Total deposits grew by 22.8% over year end levels for 2010.
CEO Craig S. Underhill said, “The Bank’s investment in new lending staff paid off in 2011 through improved loan growth. These same lenders also generated new deposit customers, resulting in significant increases in transaction account balances held by the Bank.”
Capital continues to be the strength of the Bank. Regulatory capital minimums to be considered well capitalized 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 12/31/2011 the ratios for the Bank were 12.85%, 14.44% and 14.52% respectively, all in the well capitalized category. This compares favorably to the 12/31/2010 levels of 12.49%, 14.85% and 14.91% respectively. The Bank continues its tradition of 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.
|The Freedom Bank of Virginia|
|Statements of Financial Condition|
|December 31, 2011||December 31, 2010|
|Cash and due from banks||$||16,128,032||$||3,441,325|
|Federal funds sold||15,753,000||17,212,000|
|Interest Bearing Balances with Banks||1,007,339||-|
|Investment securities available for sale, at fair value||15,183,798||5,767,655|
|Investment securities held to maturity||666,152||2,004,489|
|Federal Reserve Bank stock||689,350||615,600|
|Allowance for possible loan losses||(2,037,164||)||(1,735,353||)|
|Bank Premises and equipment, net||213,857||315,774|
|Accrued interest and other receivables||519,450||517,293|
|Deferred Tax Asset||612,000||612,000|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Non-interest bearing deposits||$||25,392,303||$||29,797,798|
|Other accrued expenses||654,898||580,902|
|Accrued interest payable||58,642||71,235|
Common stock, $5 par value. (5,000,000 shares authorized: 2,363,665 shares issued and outstanding, December 31, 2011 2,357,361 shares issued and outstanding, December 31, 2010)
|Additional paid-in capital||16,184,810||16,042,863|
|Accumulated other comprehensive income||134,776||86,159|
|Retained earnings (deficit)||(4,440,509||)||(6,340,809||)|
|Total Stockholders' Equity||23,697,402||21,575,018|
|Total Liabilities and Stockholders' Equity||$||207,557,264||$||171,350,118|
|The Freedom Bank of Virginia|
|Statements of Operations|
|For the three months ended||For the year ended|
|December 31,||December 31,|
|Interest and fees on loans||$||2,313,214||$||2,170,347||$||9,110,312||$||8,730,192|
|Interest on investment securities||117,583||86,812||399,427||379,702|
|Interest on Federal funds sold||12,508||13,603||38,662||46,035|
|Total Interest Income||2,443,305||2,270,762||9,548,401||9,155,929|
|Interest on deposits||487,861||541,206||1,861,828||2,197,618|
|Net Interest Income||1,955,444||1,729,556||7,686,573||6,958,311|
|Provision for Possible Loan Losses||15,000||-||348,000||200,000|
|Net Interest Income after|
|Provision for Possible Loan Losses||1,940,444||1,729,556||7,338,573||6,758,311|
|Service charges and other income||180,332||208,536||568,028||548,428|
|Officers and employee compensation and benefits||872,473||849,263||3,406,089||3,156,155|
|Equipment and depreciation expense||48,660||55,120||218,752||234,641|
|Data and item processing||144,927||137,349||534,008||525,559|
|Other operating expenses||119,884||60,371||348,872||279,399|
|Total Operating Expenses||1,640,834||1,497,929||6,006,301||5,485,225|
|Income before Income Taxes||479,942||440,163||1,900,300||1,821,514|
|Income Tax (Benefit) Expense||-||(612,000||)||-||(612,000||)|
|Net Income Per Common Share||$||0.20||$||0.45||$||0.80||$||1.03|
|Net Income Per Diluted Share||$||0.20||$||0.45||$||0.80||$||1.03|