Freedom Bank Announces Strong Loan Growth Generates Increased Profits

Net Profit for the First Nine Months of 2013 Exceeds all of 2012

FAIRFAX, Va.--()--Freedom Bank of Virginia (Bank) (Bulletin Board:FDVA.OB) earned a net profit before taxes of $1,230,094 for the first nine months of 2013 compared to a net profit before taxes for the first nine months of 2012 of $1,013,472 and $1,192,253 earned for all of 2012.

Financial Highlights

  • Loans receivable increased 26.4% from $157,209,916 at September 30, 2012 to $198,698,833 at September 30, 2013.
  • Total assets increased 23.8% from $218,243,386 at September 30, 2012 to $270,175,474 at September 30, 2013.
  • Asset quality remains strong with non-performing assets decreasing to 0.50% of total assets at September 30, 2013, down from 1.05% at September 30, 2012.
  • Non-interest bearing deposits increased $7,202,006 (18.8%) to $45,622,480 between September 30, 2012 and September 30, 2013.
  • Interest checking deposits grew $9,728,545 (28.7%) to $43,576,993 between September 30, 2012 and September 30, 2013.
  • Total deposits increased $50,897,415 (26.4%) to $243,550,226 between September 30, 2012 and September 30, 2013.
  • Total capital increased $1,045,707 (4.20%) over the past year to $25,932,209 at September 30, 2013, up from $24,886,502 at September 30, 2012. The book value per share was $7.52 at September 30, 2013 up from $7.26 at September 30, 2012.
  • Capital continues to be the strength of the Bank. 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, 2013, the ratios for the Bank were 10.03%, 12.90% and 14.11%, respectively; all in the well capitalized category.

According to CEO Craig S. Underhill, “The Bank is realizing a return on the investment in additional lenders. The Bank has reduced investments in securities to fund our substantial growth over the past twelve months in higher yielding loans. The combination of strong loan growth and improving asset quality is increasing the profitability of the Bank.”

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 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
 
September 30, 2013 September 30, 2012
   
ASSETS
Cash and due from banks $ 14,745,000 $ 3,837,765
Federal funds sold 24,807,000 19,780,000
Interest Bearing Balances with Banks 1,019,050 1,014,986
Investment securities available for sale, at fair value 27,458,728 30,631,566
Investment securities held to maturity 57,913 403,670
Federal Reserve Bank stock 771,000 732,300
Loans held for sale - 1,864,850
Loans receivable 198,698,833 157,209,916
Allowance for possible loan losses   (2,456,325 )   (2,136,821 )
Net Loans 196,242,508 155,073,095
Premises and equipment, net 232,061 207,380
Accrued interest and other receivables 639,818 660,303
Other assets 1,330,735 1,397,901
Bank Owned Life Insurance 2,087,182 2,027,570
Deferred Tax Asset   784,479     612,000  
 
Total Assets $ 270,175,474   $ 218,243,386  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing deposits $ 45,622,480 $ 38,420,474
Interest Checking 43,576,993 33,848,447
Savings deposits 1,423,875 1,525,117
Time deposits   152,926,878     118,858,773  
Total Deposits 243,550,226 192,652,811
 
Other accrued expenses 583,912 633,388
Accrued interest payable   109,127     70,685  
Total Liabilities   244,243,265     193,356,884  
 
Stockholders' Equity:
Common stock, $3.47 par value. (5,000,000 shares authorized:
3,446,549 shares issued and outstanding September 30, 2013
3,427,340 shares issued and outstanding September 30, 2012) 11,967,248 11,858,828
Additional paid-in capital 16,303,442 16,247,703
Accumulated other comprehensive income (320,319 ) 207,009
Retained earnings (deficit)   (2,018,162 )   (3,427,038 )
 
Total Stockholders' Equity   25,932,209     24,886,502  
 
Total Liabilities and Stockholders' Equity $ 270,175,474   $ 218,243,386  
       
The Freedom Bank of Virginia
Statements of Operations
UNAUDITED
 
For the three months ended For the nine months ended
September 30, September 30,
2013   2012 2013   2012
 
Interest Income
Interest and fees on loans $ 2,651,167 $ 2,323,266 $ 7,957,311 $ 6,939,300
Interest on investment securities 120,176 148,077 358,181 462,118
Interest on Federal funds sold   10,433   5,767   22,538   31,390
Total Interest Income 2,781,776 2,477,110 8,338,030 7,432,808
 
Interest Expense
Interest on deposits   514,526   486,584   1,474,723   1,524,676
 
Net Interest Income 2,267,250 1,990,526 6,863,307 5,908,132
 
Provision for Possible Loan Losses   -   17,200   158,500   588,200
 
Net Interest Income after
Provision for Possible Loan Losses 2,267,250 1,973,326 6,704,807 5,319,932
 
Other Income
Service charges and other income 300,654 253,174 744,458 661,062
Increase in cash surrender value of bank-owned life insurance   14,318   15,455   44,007   27,570
Total Other Income 314,972 268,629 788,465 688,632
 
Operating Expenses
Officers and employee compensation and benefits 1,364,101 1,083,321 3,878,166 2,952,054
Occupancy expense 137,609 126,549 397,401 386,478
Equipment and depreciation expense 61,061 41,799 168,403 138,168
Insurance expense 51,828 43,588 156,264 129,168
Professional fees 147,570 142,581 423,762 369,574
Data and item processing 188,294 149,254 541,166 453,152
Business development 42,247 31,224 129,125 97,334
Franchise tax 63,748 59,662 184,432 166,449
Other operating expenses   121,979   111,360   384,459   302,715
Total Operating Expenses   2,178,437   1,789,338   6,263,178   4,995,092
 
Income before Income Taxes 403,785 452,617 1,230,094 1,013,472
Provision for Income Taxes   -   -   -   -
 
Net Income $ 403,785 $ 452,617 $ 1,230,094 $ 1,013,472
 
Net Income Per Common Share $ 0.12 $ 0.13 $ 0.36 $ 0.30
 
Net Income Per Diluted Share $ 0.12 $ 0.13 $ 0.36 $ 0.30

Contacts

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

Sharing

Contacts

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