FAIRFAX, Va.--(BUSINESS WIRE)--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.
- 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|
|September 30, 2013||September 30, 2012|
|Cash and due from banks||$||14,745,000||$||3,837,765|
|Federal funds sold||24,807,000||19,780,000|
|Interest Bearing Balances with Banks||1,019,050||1,014,986|
|Investment securities available for sale, at fair value||27,458,728||30,631,566|
|Investment securities held to maturity||57,913||403,670|
|Federal Reserve Bank stock||771,000||732,300|
|Loans held for sale||-||1,864,850|
|Allowance for possible loan losses||(2,456,325||)||(2,136,821||)|
|Premises and equipment, net||232,061||207,380|
|Accrued interest and other receivables||639,818||660,303|
|Bank Owned Life Insurance||2,087,182||2,027,570|
|Deferred Tax Asset||784,479||612,000|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Non-interest bearing deposits||$||45,622,480||$||38,420,474|
|Other accrued expenses||583,912||633,388|
|Accrued interest payable||109,127||70,685|
|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||$||218,243,386|
|The Freedom Bank of Virginia|
|Statements of Operations|
|For the three months ended||For the nine months ended|
|September 30,||September 30,|
|Interest and fees on loans||$||2,651,167||$||2,323,266||$||7,957,311||$||6,939,300|
|Interest on investment securities||120,176||148,077||358,181||462,118|
|Interest on Federal funds sold||10,433||5,767||22,538||31,390|
|Total Interest Income||2,781,776||2,477,110||8,338,030||7,432,808|
|Interest on deposits||514,526||486,584||1,474,723||1,524,676|
|Net Interest Income||2,267,250||1,990,526||6,863,307||5,908,132|
|Provision for Possible Loan Losses||-||17,200||158,500||588,200|
|Net Interest Income after|
|Provision for Possible Loan Losses||2,267,250||1,973,326||6,704,807||5,319,932|
|Service charges and other income||300,654||253,174||744,458||661,062|
|Increase in cash surrender value of bank-owned life insurance||14,318||15,455||44,007||27,570|
|Total Other Income||314,972||268,629||788,465||688,632|
|Officers and employee compensation and benefits||1,364,101||1,083,321||3,878,166||2,952,054|
|Equipment and depreciation expense||61,061||41,799||168,403||138,168|
|Data and item processing||188,294||149,254||541,166||453,152|
|Other operating expenses||121,979||111,360||384,459||302,715|
|Total Operating Expenses||2,178,437||1,789,338||6,263,178||4,995,092|
|Income before Income Taxes||403,785||452,617||1,230,094||1,013,472|
|Provision for Income Taxes||-||-||-||-|
|Net Income Per Common Share||$||0.12||$||0.13||$||0.36||$||0.30|
|Net Income Per Diluted Share||$||0.12||$||0.13||$||0.36||$||0.30|