Freedom Bank Celebrates 13th Consecutive Quarterly Profit

Bank Continues Profit Trend and Produces Strong Asset Growth

FAIRFAX, Va.--()--The Freedom Bank of Virginia (Bank) (Bulletin Board:FDVA.OB) earned a Net Profit Before Taxes of $252,083 for the quarter ending June 30, 2012, its thirteenth consecutive quarterly profit. Net Profit for the quarter ending June 30, 2011 was $386,395. Net Profit Before Taxes was $560,855 for the first half of 2012 compared to a Net Profit for the first half of 2011 of $802,037. The reduction in profit was principally due to an increase in the provision for loan losses. According to CEO Craig S. Underhill, “The Bank continues to be profitable and is growing during a challenging economy.”

Total Assets increased 18% to $206,560,467, up from $174,913,192 at June 30, 2011. Loans Receivable increased $17,447,975 (12.5%) to $157,026,486 and Investment Securities increased $20,099,420 (175%) to $31,584,026 during the same period. The growth in assets was funded by $29,666,827 growth in deposits (19.5%). Non Interest Checking increased $4,508,951 (14.8%) to $34,889,239. Certificates of Deposit growth was $24,608,276 (26.1%).

Capital continues to be strong, growing $1,896,511 (8.4%) over the same period in the prior year to $24,409,278. 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 June 30, 2012, the ratios for the Bank were 11.29%, 14.54% and 15.80% 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
 
  June 30, 2012   June 30, 2011
ASSETS  
Cash and due from banks $ 2,871,644 $ 3,268,385
Federal funds sold 8,776,000 16,737,000
Interest bearing balances with banks 1,012,820 1,000,813
Investment securities available for sale, at fair value 31,129,001 10,611,672
Investment securities held to maturity 455,025 872,934
Federal Reserve Bank stock 719,900 659,850
Loans held for sale 1,836,478 1,242,325
Loans receivable 157,026,486 139,578,511
Allowance for possible loan losses   (2,119,622 )   (1,970,153 )
Net Loans 154,906,864 137,608,358
Premises and equipment, net 215,502 257,091
Accrued interest and other receivables 643,367 523,171
Other assets 3,381,866 1,519,593
Deferred tax asset   612,000     612,000  
 
Total Assets $ 206,560,467   $ 174,913,192  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing deposits 34,889,239 30,380,288
Interest Checking 26,278,244 26,158,957
Savings deposits 1,445,136 1,014,823
Time deposits   118,864,983     94,256,707  
Total Deposits 181,477,602 151,810,775
 
Other accrued expenses 601,522 520,096
Accrued interest payable   72,065     69,554  
Total Liabilities   182,151,189     152,400,425  
 
Stockholders' Equity

Common stock, $4.17 par value. (5,000,000 shares authorized: issued and outstanding 2,846,117 shares for June 30, 2012 and 2,842,398 shares for June 30, 2011)

11,858,828 11,843,325
Additional paid-in capital 16,213,270 16,065,218
Accumulated other comprehensive income 216,833 142,996
Retained earnings (deficit)   (3,879,653 )   (5,538,772 )
 
Total Stockholders' Equity   24,409,278     22,512,767  
 
Total Liabilities and Stockholders' Equity $ 206,560,467   $ 174,913,192  
 
 
The Freedom Bank of Virginia
Statements of Operations
UNAUDITED
 
  For the three months ended For the six months ended
June 30, June 30,
2012   2011 2012   2011
   
Interest Income
Interest and fees on loans $ 2,317,251 $ 2,248,951 $ 4,616,034 $ 4,561,313
Interest on investment securities 170,401 92,691 314,041 174,130
Interest on Federal funds sold   11,837   9,059   25,623   17,833
Total Interest Income 2,499,489 2,350,701 4,955,698 4,753,276
 
Interest Expense
Interest on deposits   516,163   453,485   1,038,092   932,759
 
Net Interest Income 1,983,326 1,897,216 3,917,606 3,820,517
 
Provision for Possible Loan Losses   305,000   128,000   571,000   313,000
 
Net Interest Income after
Provision for Possible Loan Losses 1,678,326 1,769,216 3,346,606 3,507,517
 
Other Income
Service charges and other income 216,058 71,457 420,003 188,154
 
Operating Expenses
Officers and employee compensation and benefits 919,118 841,444 1,868,733 1,677,604
Occupancy expense 126,878 133,521 259,929 269,639
Equipment and depreciation expense 48,126 54,873 96,369 117,880
Insurance expense 44,191 66,820 85,580 138,114
Professional fees 141,686 65,518 226,993 123,348
Data and item processing 151,985 125,585 303,898 251,364
Business development 31,914 33,067 66,110 64,815
Franchise tax 56,447 52,404 106,787 105,275
Other operating expenses   121,956   81,046   191,355   145,595
Total Operating Expenses   1,642,301   1,454,278   3,205,754   2,893,634
 
Income before Income Taxes 252,083 386,395 560,855 802,037
Provision for Income Taxes   -   -   -   -
 
Net Income $ 252,083 $ 386,395 $ 560,855 $ 802,037
 
Net Income Per Common Share $ 0.09 $ 0.14 $ 0.20 $ 0.28
 
Net Income Per Diluted Share $ 0.09 $ 0.14 $ 0.20 $ 0.28
 

Contacts

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

Release Summary

Freedom Bank Celebrates 13th Consecutive Quarterly Profit

Sharing

Contacts

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