Freedom Bank Celebrates 16th Consecutive Quarterly Profit

Bank Produces Strong Loan Growth.

FAIRFAX, Va.--()--Freedom Bank of Virginia (Bank) (Bulletin Board:FDVA.OB) earned a Net profit before taxes of $300,596 for the quarter ending March 31, 2013, its sixteenth consecutive quarterly profit. Net profit at March 31, 2012 was $308,772. Improving asset quality, allowed less to be put in the Provision for loan losses, which helped offset increased salary expense from hiring additional lenders versus the prior year.

The Bank generated significant loan growth over the trailing twelve months. Gross loans receivable increased to $183,295,852, which was up 18.5% from $154,468,808 at March 31, 2012. According to CEO Craig Underhill, “The Bank significantly increased the size of its lending staff in the second half of 2012 and is realizing significant loan growth from that investment.” In addition to the staff hired in 2012, the Bank hired two more experienced commercial lenders in the first quarter of 2013 to continue to accelerate loan growth.

Total assets increased 10.4% to $239,780,059 up from $217,266,197 at March 31, 2012. Investment securities increased $8,154,889 (32.2%) to $33,485,453 and Bank Owned Life Insurance increased $1,058,422 (105.8%) during the same period, which along with loan growth increased these assets of the Bank by $37,860,355 (20.8%) since March 31, 2012. The growth in assets was partially funded by $20,670,596 (10.7%) growth in deposits. The Bank also decreased low yielding Federal Funds by $17,971,000 (-67.1%) to fund the growth of higher yielding assets compared with March 31, 2012.

Capital continues to be strong, growing $1,558,970 (6.5%) over the same period in the prior year to $25,555,169. 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 March 31, 2013 the ratios for the Bank were 10.59%, 13.28 % and 14.49% 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.

About Freedom Bank

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 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, 2013     March 31, 2012
   
ASSETS
Cash and due from banks $ 6,970,034 $ 5,034,081
Federal funds sold 8,794,000 26,765,000
Interest Bearing Balances with Banks 1,017,009 1,010,573

Investment securities available for sale, at fair value

33,485,453 25,330,564
Investment securities held to maturity 292,997 527,271
Federal Reserve Bank stock 757,950 710,950
Loans held for sale 2,624,808 1,841,400
Loans receivable 183,295,852 154,648,808
Allowance for possible loan losses   (2,305,040 )   (2,303,164 )
Net Loans 180,990,812 152,345,644
Premises and equipment, net 204,595 203,556
Accrued interest and other receivables 697,770 583,584
Other assets 1,274,209 1,301,574
Bank Owned Life Insurance 2,058,422 1,000,000
Deferred Tax Asset   612,000     612,000  
 
Total Assets $ 239,780,059   $ 217,266,197  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing deposits $ 33,195,790 $ 32,768,881
Interest Checking 38,004,367 36,014,310
Savings deposits 1,213,692 1,329,353
Time deposits   141,008,129     122,638,838  

Total Deposits

213,421,978 192,751,382
 
Other accrued expenses 721,648 444,458
Accrued interest payable   81,265     74,159  
Total Liabilities   214,224,891     193,269,999  
 
Stockholders' Equity:

Common stock, $4.17 par value. (5,000,000 shares authorized):

2,866,117 shares issued and outstanding March 31, 2013
2,836,404 shares issued and outstanding March 31, 2012 11,942,228 11,818,325
Additional paid-in capital 16,284,302 16,184,810
Accumulated other comprehensive income 276,298 124,800
Retained earnings (deficit)   (2,947,659 )   (4,131,737 )
 
Total Stockholders' Equity   25,555,169     23,996,198  
 
Total Liabilities and Stockholders' Equity $ 239,780,059   $ 217,266,197  
 
 
The Freedom Bank of Virginia
Statements of Operations
UNAUDITED
 
 
    For the three months ended
March 31,
2013     2012
Interest Income
Interest and fees on loans $ 2,464,375 $ 2,298,783
Interest on investment securities 101,361 143,640
Interest on Federal funds sold   7,755   13,786
Total Interest Income 2,573,491 2,456,209
 
Interest Expense
Interest on deposits   482,842   521,929
 
Net Interest Income 2,090,649 1,934,280
 
Provision for Possible Loan Losses   70,000   266,000
 
Net Interest Income after
Provision for Possible Loan Losses 2,020,649 1,668,280
 
Other Income
Service charges and other income 231,538 203,945
Increase in cash surrender value of bank-owned life insurance   15,247   -
Total Other Income 246,785 203,945
 
Operating Expenses
Officers and employee compensation and benefits 1,204,421 949,615
Occupancy expense 124,995 133,051
Equipment and depreciation expense 52,704 48,243
Insurance expense 51,529 41,389
Professional fees 139,537 85,307
Data and item processing 176,641 151,913
Business development 48,046 34,196
Franchise tax 59,661 50,340
Other operating expenses   109,304   69,399
Total Operating Expenses   1,966,838   1,563,453
 
Income before Income Taxes 300,596 308,772
Provision for Income Taxes   -   -
 
Net Income $ 300,596 $ 308,772
 
Net Income Per Common Share $ 0.10 $ 0.11
 
Net Income Per Diluted Share $ 0.10 $ 0.11
 

Contacts

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

Release Summary

Freedom Bank Celebrates 16th Consecutive Quarterly Profit

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Contacts

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