Freedom Bank Celebrates 12th Consecutive Quarterly Profit

Bank Produces Strong Asset Growth

FAIRFAX, Va.--()--The Freedom Bank of Virginia (Bank) (Bulletin Board:FDVA.OB) earned a Net Profit Before Taxes of $309,000 for the quarter ending March 31, 2012, its twelfth consecutive quarterly profit. Net Profit at March 31, 2011 was $416,000, with the reduction principally due to increased salary expense from a larger lending staff and an increase in the provision for loan losses. According to CEO Craig S. Underhill, “The Bank made a decision to accelerate growth last year and increased lending staff by 50% during the year. Loan production has increased and the Bank expects to realize a return on the investment made in new staff over time.”

Total Assets increased 20% to $217,266,000, up from $181,075,000 at March 31, 2011. Loans Receivable increased $9,941,000 (6.9%) to $154,649,000 and Investment Securities increased $16,719,000 (194.1%) to $26,331,000 during the same period. The growth in assets was funded by $34,155,000 growth in deposits (21.6%). Non Interest Checking increased $1,123,000 (3.6%) to $32,769,000. Interest Checking balances increased $4,043,000 (12.7%) and Certificates of Deposit growth was $28,668,000 (30.5%).

Capital continues to be strong, growing $2,001,000 (9.1%) over the same period in the prior year to $23,996,000. 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 to be considered well capitalized. At 3/31/2012 the ratios for the Bank were 11.19%, 14.32% and 15.57% respectively, all in the well capitalized category. 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
UNAUDITED
 
March 31, 2012   March 31, 2011
ASSETS
Cash and due from banks $ 5,034,081 $ 7,921,758
Federal funds sold 26,765,000 16,731,000
Interest bearing balances with banks 1,010,573 -
Investment securities available for sale, at fair value 25,330,564 8,611,925
Investment securities held to maturity 527,271 1,074,527
Federal Reserve Bank stock 710,950 647,300
Loans held for sale 1,841,400 452,000
Loans receivable 154,648,808 144,707,616
Allowance for possible loan losses   (2,303,164 )   (1,873,135 )
Net Loans 152,345,644 142,834,481
Premises and equipment, net 203,556 284,995
Accrued interest and other receivables 583,584 511,201
Other assets 2,301,574 1,393,442
Deferred tax asset   612,000     612,000  
 
Total Assets $ 217,266,197   $ 181,074,629  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing deposits 32,768,881 31,646,288
Interest Checking 36,014,310 31,971,378
Savings deposits 1,329,353 1,007,512
Time deposits   122,638,838     93,971,232  
Total Deposits 192,751,382 158,596,410
 
Other accrued expenses 444,458 401,751
Accrued interest payable   74,159     81,540  
Total Liabilities   193,269,999     159,079,701  
 
Stockholders' Equity

Common stock, $4.17 par value. (5,000,000 shares authorized: issued and outstanding 2,836,404 shares for March 31, 2012 and 2,828,833 shares for March 31, 2011)

11,818,325 11,786,805
Additional paid-in capital 16,184,810 16,042,863
Accumulated other comprehensive income 124,801 90,427
Retained earnings (deficit)   (4,131,738 )   (5,925,167 )
 
Total Stockholders' Equity   23,996,198     21,994,928  
 
Total Liabilities and Stockholders' Equity $ 217,266,197   $ 181,074,629  
   

The Freedom Bank of Virginia

Statements of Operations
UNAUDITED
 
For the three months ended
 
March 31, 2012   March 31, 2011
 
Interest Income
Interest and fees on loans $ 2,298,783 $ 2,312,362
Interest on investment securities 143,640 81,439
Interest on Federal funds sold   13,786   8,774
Total Interest Income 2,456,209 2,402,575
 
Interest Expense
Interest on deposits   521,929   479,274
 
Net Interest Income 1,934,280 1,923,301
 
Provision for Possible Loan Losses   266,000   185,000
 

Net Interest Income after Provision for Possible Loan Losses

1,668,280 1,738,301
 
Other Income
Service charges and other income 203,945 116,697
 
Operating Expenses
Officers and employee compensation and benefits 949,615 836,160
Occupancy expense 133,051 136,118
Equipment and depreciation expense 48,243 63,007
Insurance expense 41,389 71,294
Professional fees 85,307 57,830
Data and item processing 151,913 125,779
Business development 34,196 31,748
Franchise tax 50,340 52,871
Other operating expenses   69,399   64,549
Total Operating Expenses   1,563,453   1,439,356
 
Income before Income Taxes 308,772 415,642
Provision for Income Taxes   -   -
 
Net Income $ 308,772 $ 415,642
 
Net Income Per Common Share $ 0.11 $ 0.15
 
Net Income Per Diluted Share $ 0.11 $ 0.15

Contacts

Freedom Bank of Virginia
Craig S. Underhill, Chief Executive Officer
703-242-5300

Release Summary

Freedom Bank Celebrates 12th Consecutive Quarterly Profit

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Contacts

Freedom Bank of Virginia
Craig S. Underhill, Chief Executive Officer
703-242-5300