The Freedom Bank of Virginia Announces Earnings for the First Quarter of 2019

FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX:FDVA), (the “Bank” or “Freedom”) today announced net income of $515,986, or $0.07 per diluted share, for the quarter ended March 31, 2019.

Joseph J. Thomas, President and CEO, remarked, “After four months of restructuring in 2018, our first quarter 2019 financial results reflect the revamped Board and Management team’s efforts to improve the performance and profitability of the Bank. While we have more ground to make up, the improvement in ROAA to 0.43% is a reflection of our ability to remix our loans and deposits to improve margin, revitalize loan origination in our residential mortgage division, and reduce operating costs across all categories. Notably, these results included $175 thousand in non-recurring expenses related to a separation agreement with our Chief Lending Officer in March. The annualized growth in our demand deposits of 34.6% during the first quarter reflects the success of our experienced teammates at Freedom to create lead relationships and that our investment in new digital products and solutions is resonating with our clients and prospects. With our strengthened and stabilized management and infrastructure now squarely in place, we anticipate future growth in loan and deposit balances driven by current commercial and community banking associates and new banking professionals joining the Bank.”

First Quarter 2019 Highlights include:

• Net income for the quarter was $515,986 or $0.07 per diluted share, compared to $15,251 for the fourth quarter of 2018, equivalent to $0.00 per diluted share, and compared to $308,206, or $0.05 per diluted share, for the same period in 2018;
• Return on Average Assets (“ROAA”) was 0.43% for the quarter ended March 31, 2019 compared to 0.01% for the previous quarter and 0.24% for the quarter ended March 31, 2018;
• Return on Average Equity (“ROAE”) was 3.51% for the quarter ended March 31, 2019 compared to 0.10% for the previous quarter and 2.24% for the same period in 2018;
• Total assets were $477.90 million on March 31, 2019, relatively unchanged compared to December 31, 2018;
• Loans receivable declined by $16.62 million or by 4.22% during the quarter, while loans held-for-sale increased by $6.15 million or by 139.2% compared to December 31, 2018;
• Securities increased by $5.97 million or by 12.39% during the quarter;
• Total deposits decreased by $5.50 million or by 1.37% since December 31, 2018, primarily due to runoff in high cost interest-bearing deposits;
• Non-interest bearing demand deposits increased by $5.77 million during the quarter to $72.8 million, and comprised 18.41% of total deposits at March 31, 2019;
• The net interest margin was 3.42% for the quarter, higher by 4 basis points compared to the previous quarter and by 12 basis points compared to the same quarter in 2018;
• Non-interest income increased by 27.92% compared to the previous quarter, and by 41.54% compared to the same period in 2018, primarily due to higher revenue from the sale of mortgage loans and income from Bank-Owned Life Insurance (“BOLI”);
• Non-interest expenses decreased by 2.04% and by 2.48% compared to the previous quarter and the same period in 2018, respectively. The Efficiency Ratio was 86.83% for the quarter ended March 31, 2019 compared to 91.67% for the previous quarter and 93.15% for the same period in 2018;
• The Bank’s allowance for loan and lease losses (“ALLL”) was 1.19% of loans receivable at March 31, 2019 compared to 1.16% of loans receivable at December 31, 2018;
• Asset quality remains strong with the ratio of non-performing assets to total assets at 0.62% as of March 31, 2019 compared to a ratio of 0.69% as of December 31, 2018;
• Capital ratios continue to be strong, and above regulatory minimums for well-capitalized banks: Total Risk Based Capital ratio of 16.42%, Tier 1 Risk Based Capital ratio of 15.28%, Common Equity Tier 1 ratio of 15.28% and Tier 1 Leverage ratio of 12.61% at March 31, 2019.

Net Interest Income
The Bank recorded net interest income of $4.08 million for the first quarter of 2019, a decrease of 4.43% compared to the previous quarter and lower by 6.05% compared to the same period in 2018, primarily due to a decline in earning assets. The net interest margin in the first quarter of 2019 was 3.42%, higher by 4 basis points compared to the previous quarter, and higher by 12 basis points compared to the same period in 2018.

The following factors contributed to the changes in net interest margin during the first quarter of 2019 compared to the previous quarter:

• Yields on average earning assets increased by 17 basis points to 4.81% compared to 4.64% in the previous quarter.
• Loan yields increased by 17 basis points to 5.22% from 5.05% in the previous quarter, while yields on investment securities increased by 16 basis points to 2.76%, from 2.60% in the previous quarter.
• Cost of funds increased by 13 basis points to 1.54%, from 1.41% in the previous quarter, primarily due to higher costs related to time deposits.

The following factors contributed to the changes in net interest margin during the first quarter of 2019 compared to the same period in 2018:

• Yields on average earning assets increased by 48 basis points to 4.81% compared to 4.33% in the quarter ended March 31, 2018.
• Loan yields increased by 23 basis points to 5.22% from 4.99% in the quarter ended March 31, 2018, while yields on investment securities increased by 38 basis points to 2.76%, from 2.38% in the quarter ended March 31, 2018.
• Cost of funds increased by 40 basis points to 1.54%, from 1.14% in the quarter ended March 31, 2018, primarily due to higher costs related to time deposits.

Non-interest Income
Non-interest income increased by 27.92% compared to the previous quarter and was higher by 41.54% compared to the quarter ended March 31, 2018. The principal contributors to the increase in non-interest income were higher gain-on-sale revenue from mortgage loans and an increase in the cash surrender value of BOLI. The Bank purchased $10 million of BOLI in the fourth quarter of 2018.

• Total revenue from the gain on sale of mortgage loans increased by 18.99% compared to the previous quarter, and by 37.94% compared to the same period in 2018. The increase in gain-on-sale revenue was driven by the higher volume of mortgage originations during the first quarter of 2019, accompanied by an increase in margins.

Non-interest Expenses
Non-interest expenses decreased by 2.04% compared to the previous quarter and by 2.48% compared to the same period in 2018. Principal categories of non-interest expenses that changed were the following:

• Compensation costs increased by 3.84% compared to the previous quarter and by 8.90% compared to the same period in 2018. The compensation costs in the first quarter of 2019 include $175,198 in severance expenses related to a separation agreement with our Chief Lending Officer. Excluding the $175,198 in severance expenses would have resulted in compensation costs for the first quarter that were lower by 2.36% compared to the previous quarter.
• Professional fees were also lower by 32.47% compared to the previous quarter, and by 48.80% compared to the same period in 2018.
• Equipment and depreciation expenses increased in the first quarter of 2019 primarily due to licensing of on-line banking software.

Income Taxes
Income tax expense was $8,756 in the first quarter of 2019 compared to a benefit of $11,606 in the previous quarter and tax expense of $81,600 in the same period in 2018. The tax expense in the first quarter of 2019 included a benefit of $84,166 related to the exercise of non-qualified stock options. Excluding this tax benefit, the effective tax rate in the first quarter of 2019 would have been 17.71% compared to an effective tax rate of 20.93% for the same period in 2018.

Asset Quality
Non-accrual loans were $2.48 million at the end of the first quarter of 2019, compared to $2.84 million at the end of the prior quarter, and $557,349 on March 31, 2018. As of March 31, 2019, there were two troubled debt restructurings (“TDRs”) not on non-accrual with a balance of $560,805, or 0.12% of total loans, compared to $460,805, or 0.12% of total loans on December 31, 2018, and $77,046, or 0.02% of total loans on March 31, 2018. On March 31, 2019, December 31, 2018 and March 31, 2018, there were no loans that were 90 days or more past due and not on non-accrual. Additionally, there was no other real estate owned (“OREO”) on the balance sheet on March 31, 2019, December 31, 2018 or March 31, 2018. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and not on non-accrual, loans that were TDRs but not on non-accrual, and OREO assets) were $2.94 million or 0.62% of total assets, compared to $3.30 million or 0.69% of total assets at December 31, 2018, and $634,395 or 0.12% of total assets at March 31, 2018.

The Bank did not recognize a provision for loan and lease losses for the first quarter of 2019, compared to a provision of $406,000 during the previous quarter, following a review of its loan portfolio. The Bank’s ALLL was 1.19% of loans receivable at March 31, 2019, compared to 1.16% of loans receivable at December 31, 2018 and 1.14% of loans receivable on March 31, 2018.

Total Assets
Total assets at March 31, 2019 were $477.90 million compared to $478.81 million on December 31, 2018. Changes in major asset categories during linked quarters were as follows:

• Cash balances and deposits with other banks were relatively unchanged compared to December 31, 2018.
• The securities portfolio increased by $5.97 million compared to December 31, 2018, as the Bank deployed excess liquidity into higher yielding investment securities.
• Loans receivable declined by $16.62 million on payoff activity during the quarter.
• Loans held-for-sale increased by $6.15 million during the quarter.
• Other assets increased by $3.83 million primarily due to the recording of a right-to-use lease asset as a result of adoption of ASC 842, the new lease accounting standard, in the first quarter of 2019.

Total Liabilities
Total liabilities at March 31, 2019 were $417.62 million, compared to total liabilities of $419.70 million on December 31, 2018. Total deposits were $395.23 million on March 31, 2019, compared to total deposits of $400.73 million on December 31, 2018. On a linked quarter basis, interest bearing demand deposits declined by $6.62 million, with the bulk of the decline occurring in money market balances, while time deposits decreased by $4.10 million. The decline in high cost interest bearing deposits was partially offset by an increase in non-interest bearing deposits during the quarter. Non-interest bearing demand deposits increased during the quarter by $5.76 million to $72.78 million and comprised 18.41% of total deposits at the end of the quarter, compared to 16.72% of total deposits on December 31, 2018. Federal Home Loan Bank advances were relatively unchanged during the quarter.

Stockholders’ Equity and Capital
Stockholders’ equity at March 31, 2019 was $60.28 million compared to $59.11 million on December 31, 2018. Additional paid in capital at March 31, 2019 was $57.53 million on March 31, 2019 compared to $57.42 million on December 31, 2018. Accumulated Other Comprehensive Income (“AOCI”), which generally comprises unrealized gains and losses on available-for-sale securities on the balance sheet, increased by $540,840 on lower unrealized losses during the quarter. Total shares issued and outstanding were 6,996,602 on March 31, 2019 compared to 6,981,602 on December 31, 2018. The book value of the Bank’s common stock at March 31, 2019 was $8.62 compared to $8.47 per share on December 31, 2018.

As of March 31, 2019, all of the Bank’s capital ratios were well above regulatory minimum capital ratios for well capitalized banks. The Bank’s capital ratios on March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019	December 31, 2018
Total Capital Ratio	16.42%	15.85%
Tier 1 Capital Ratio	15.28%	14.73%
Common Equity
Tier 1 Capital Ratio	15.28%	14.73%
Leverage Ratio	12.61%	12.15%

About Freedom Bank

Freedom Bank is a community-oriented bank with locations in Fairfax, Reston, Chantilly and Vienna, Virginia. Freedom Bank also has a mortgage division headquartered in Chantilly. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.

Forward Looking Statements

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, the adequacy or inadequacy of our allowance for loan and lease losses, and acquisition or loss of key production personnel. The Bank cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Bank 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
CONSOLIDATED BALANCE SHEETS
	(Unaudited)		(Audited)
	March 31,		December 31,
	2019		2018
ASSETS
Cash and Due from Banks	$	1,796,929	$	1,270,559
Interest Bearing Deposits with Banks		13,804,921		14,376,684
Securities Available-for-Sale		54,177,183		48,204,339
Restricted Stock Investments		3,041,300		3,076,000
Loans Held for Sale		10,562,219		4,415,520
Loans Receivable		377,458,580		394,080,457
Allowance for Loan Losses		(4,509,489)		(4,572,392)
Net Loans		372,949,091		389,508,065
Bank Premises and Equipment, net		1,678,539		1,748,935
Other Real Estate Owned		-		-
Accrued Interest Receivable		1,363,329		1,229,534
Deferred Tax Asset		864,642		1,247,513
Bank-Owned Life Insurance		12,493,532		12,401,317
Other Assets		5,170,809		1,336,521
Total Assets	$	477,902,494	$	478,814,987
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Demand deposits
Non-interest bearing	$	72,778,632	$	67,012,857
Interest bearing		121,777,996		128,403,357
Savings deposits		2,481,822		3,023,239
Time deposits		198,188,774		202,292,311
Total Deposits		395,227,224		400,731,764
Federal Home Loan Bank advances		17,000,000		17,142,857
Other accrued expenses		4,981,063		1,607,492
Accrued interest payable		408,730		218,537
Total Liabilities		417,617,016		419,700,650
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized;
0 shares issued and outstanding, 2019 and 2018		-		-
Common stock, $0.01 par value, 25,000,000 shares:
23,000,000 shares voting and 2,000,000 shares non-voting.
Voting Common Stock:
6,323,602 and 6,308,602 shares issued and outstanding
at March 31, 2019 and December 31, 2018, respectively
(includes 115,000 unvested shares at March 31, 2019 and
31-Dec-18		63,236		63,086
Non-Voting Common Stock:
673,000, 673,000 shares issued and outstanding March 31, 2019
and December 31 2018		6,730		6,730
Additional paid-in capital		57,530,232		57,416,068
Accumulated other comprehensive loss, net		(583,261)		(1,124,101)
Retained earnings		3,268,541		2,752,554
Total Stockholders' Equity		60,285,478		59,114,337
Total Liabilities and Stockholders' Equity	$	477,902,494	$	478,814,987

THE FREEDOM BANK OF VIRGINIA
CONSOLIDATED STATEMENTS OF OPERATIONS
	For the quarter ended		For the quarter ended
	March 31,		March 31,
	2019		2018
Interest Income
Interest and fees on loans	$	5,173,978	$	5,062,087
Interest on investment securities		492,345		596,889
Interest on Federal funds sold		-		466
Total Interest Income		5,666,323		5,659,442
Interest Expense
Interest on deposits		1,501,319		1,273,775
Interest on borrowings		87,132		45,426
Total Interest Expense		1,588,451		1,319,201
Net Interest Income		4,077,872		4,340,241
Provision for Loan Losses		-		-
Net Interest Income after
Provision for Loan Losses		4,077,872		4,340,241
Non-Interest Income
Gain on sale of mortgage loans		794,940		576,275
Service charges and other income		73,171		90,582
Gains on sale of securities		2,688		-
Increase in cash surrender value of bank-
owned life insurance		92,215		13,537
Total Non-interest Income		963,014		680,394
Non-Interest Expenses
Officer and employee compensation
and benefits		2,932,993		2,693,270
Occupancy expense		275,776		273,113
Equipment and depreciation expense		185,521		141,569
Insurance expense		77,984		81,496
Professional fees		323,358		631,522
Data and item processing		252,548		277,357
Business development		35,269		70,577
Franchise taxes		141,887		131,156
Mortgage fees and settlements		117,906		125,480
Other operating expense		172,902		205,289
Total Non-interest Expenses		4,516,144		4,630,829
Income before Income Taxes		524,742		389,806
Income Tax Expense		8,756		81,600
Net Income	$	515,986	$	308,206
Earnings per Common Share - Basic	$	0.07	$	0.05
Earnings per Common Share - Diluted	$	0.07	$	0.05
Weighted-Average Common Shares
Outstanding - Basic		7,097,602		6,526,908
Weighted-Average Common Shares
Outstanding - Diluted		7,173,623		6,847,521

THE FREEDOM BANK OF VIRGINIA
CONSOLIDATED STATEMENTS OF OPERATIONS
	For the quarter ended		For the quarter ended		For the quarter ended		For the quarter ended		For the quarter ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2019		2018		2018		2018		2018
Interest Income
Interest and fees on loans	$	5,173,978	$	5,301,122	$	5,390,476	$	5,263,052	$	5,062,087
Interest on investment securities		492,345		512,395		558,583		556,298		596,889
Interest on Federal funds sold		-		-		-		-		466
Total Interest Income		5,666,323		5,813,517		5,949,059		5,819,350		5,659,442
Interest Expense
Interest on deposits		1,501,319		1,457,064		1,389,640		1,231,777		1,273,775
Interest on borrowings		87,132		89,460		103,954		83,513		45,426
Total Interest Expense		1,588,451		1,546,524		1,493,594		1,315,290		1,319,201
Net Interest Income		4,077,872		4,266,993		4,455,465		4,504,061		4,340,241
Provision for Loan Losses		-		406,000		-		-		-
Net Interest Income after
Provision for Loan Losses		4,077,872		3,860,993		4,455,465		4,504,061		4,340,241
Non-Interest Income
Gain on sale of mortgage loans		794,940		668,073		846,654		1,077,193		576,275
Service charges and other income		73,171		62,342		46,719		79,490		90,582
Gains on sale of securities		2,688		-		(1,181,108)		-		-
Increase in cash surrender value of bank-
owned life insurance		92,215		22,396		13,652		13,585		13,537
Total Non-interest Income		963,014		752,811		(274,083)		1,170,268		680,394
Non-Interest Expenses
Officer and employee compensation
and benefits		2,932,993		2,824,477		3,151,301		2,985,202		2,693,270
Occupancy expense		275,776		269,963		277,941		277,968		273,113
Equipment and depreciation expense		185,521		172,048		166,368		184,298		141,569
Insurance expense		77,984		78,345		78,535		200,437		81,496
Professional fees		323,358		478,839		628,584		369,089		631,522
Data and item processing		252,548		312,108		365,946		294,419		277,357
Business development		35,269		57,289		47,320		70,108		70,577
Franchise taxes		141,887		141,886		141,887		138,310		131,156
Mortgage fees and settlements		117,906		95,353		137,423		140,155		125,480
Other operating expense		172,902		179,851		245,204		199,813		205,289
Total Non-interest Expenses		4,516,144		4,610,159		5,240,509		4,859,799		4,630,829
Income before Income Taxes		524,742		3,645		(1,059,127)		814,530		389,806
Income Tax Expense		8,756		(11,606)		(226,718)		114,300		81,600
Net Income	$	515,986	$	15,251	$	(832,409)	$	700,230	$	308,206
Earnings per Common Share - Basic	$	0.07	$	0.00	$	(0.12)	$	0.11	$	0.05
Earnings per Common Share - Diluted	$	0.07	$	0.00	$	(0.12)	$	0.10	$	0.05
Weighted-Average Common Shares
Outstanding - Basic		7,097,602		7,085,636		6,873,123		6,629,749		6,526,908
Weighted-Average Common Shares
Outstanding - Diluted		7,173,623		7,207,759		6,873,123		6,856,291		6,847,521

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
	Quarter Ended			Quarter Ended
	March 31, 2019			December 31, 2018
	Average Balance	Income/Expense	Yield	Average Balance	Income/Expense	Yield
Assets
Cash	$20,706,435	$125,328	2.45%	$32,879,357	$174,692	2.11%
Investments	$53,952,790	$367,018	2.76%	$51,616,117	$337,702	2.60%
Loans	$389,356,905	$5,010,729	5.22%	$404,471,545	$5,205,719	5.05%
Earning Assets	$464,016,130	$5,503,075	4.81%	$488,967,019	$5,718,113	4.64%
Assets	$482,503,597			$495,545,951
Liabilities
Interest Checking	$6,933,095	$9,165	0.54%	$6,493,346	$25,092	1.53%
Money Market	$116,599,595	$395,239	1.37%	$138,479,122	$448,482	1.28%
Savings	$2,892,660	$1,411	0.20%	$2,447,627	$1,233	0.20%
Time Deposits	$199,846,160	$1,095,504	2.22%	$199,890,149	$982,234	1.99%
Interest Bearing Deposits	$326,271,510	$1,501,319	1.87%	$347,310,244	$1,457,041	1.66%
FHLB Borrowings	$17,131,746	$87,131	2.06%	$17,211,379	$89,460	2.06%
Interest Bearing Liabilities	$343,403,256	$1,588,450	1.88%	$364,521,623	$1,546,501	1.68%
Non Interest Bearing Deposits	$74,141,543			$70,149,557
Cost of Funds	1.54%			1.41%
Net Interest Margin		$3,914,625	3.42%		$4,171,612	3.38%
Shareholders Equity	$59,571,345			$58,383,853

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
	Quarter Ended			Quarter Ended
	March 31, 2019			March 31, 2018
	Average Balance	Income/Expense	Yield	Average Balance	Income/Expense	Yield
Assets
Cash	$20,706,435	$125,328	2.45%	$39,495,885	$141,413	1.45%
Investments	$53,952,790	$367,018	2.76%	$77,700,057	$455,476	2.38%
Loans	$389,356,905	$5,010,729	5.22%	$404,754,388	$4,975,556	4.99%
Earning Assets	$464,016,130	$5,503,075	4.81%	$521,950,330	$5,572,445	4.33%
Assets	$482,503,597			$526,109,962
Liabilities
Interest Checking	$6,933,095	$9,165	0.54%	$6,049,082	$7,034	0.47%
Money Market	$116,599,595	$395,239	1.37%	$178,265,278	$527,260	1.20%
Savings	$2,892,660	$1,411	0.20%	$2,150,831	$1,151	0.22%
Time Deposits	$199,846,160	$1,095,504	2.22%	$204,333,649	$738,330	1.47%
Interest Bearing Deposits	$326,271,510	$1,501,319	1.87%	$390,798,840	$1,273,775	1.32%
FHLB Borrowings	$17,131,746	$87,131	2.06%	$10,419,048	$45,425	1.77%
Interest Bearing Liabilities	$343,403,256	$1,588,450	1.88%	$402,217,888	$1,319,200	1.33%
Non Interest Bearing Deposits	$74,141,543			$68,058,978
Cost of Funds	1.54%			1.14%
Net Interest Margin		$3,914,625	3.42%		$4,253,245	3.30%
Shareholders Equity	$59,571,345				$55,786,998

Selected Financial Data by Quarter
(Unaudited)
	March 31, 2019	December 31, 2018	September 30, 2018	June 30, 2018	March 31, 2018
Balance Sheet Ratios	98.23%	99.44%	93.64%	94.62%	90.33%
Loans to Deposits
Income Statement Ratios
Return on Average Assets (ROAA)	0.43%	0.01%	-0.64%	0.55%	0.24%
Return on Average Equity (ROAE)	3.51%	0.10%	-5.74%	5.07%	2.24%
Efficiency Ratio	86.83%	91.67%	126.19%	85.65%	93.15%
Net Interest Margin	3.42%	3.38%	3.38%	3.46%	3.30%
Yield on Average Earning Assets	4.81%	4.64%	4.55%	4.48%	4.33%
Yield on Securities	2.76%	2.60%	2.50%	2.36%	2.38%
Yield on Loans	5.22%	5.05%	4.95%	5.05%	4.99%
Cost of Funds	1.54%	1.41%	1.31%	1.17%	1.14%
Per Share Data
Tangible Book Value	$8.62	$8.47	$8.36	$8.44	$8.39
Share Price Data
Closing Price	$10.00	$10.23	$12.12	$12.10	$12.68
Book Value Multiple	116%	121%	145%	143%	151%
Common Stock Data
Outstanding Shares at End of Period	6,996,602	6,981,602	6,950,165	6,719,644	6,526,908
Weighted Average shares outstanding, basic	7,097,602	7,085,636	6,873,123	6,629,749	6,526,908
Weighted Average shares outstanding, diluted	7,173,623	7,207,759	6,873,123	6,856,291	6,847,521
Capital Ratios
Tier 1 Leverage ratio	12.61%	12.15%	11.66%	11.37%	10.64%
Common Equity Tier 1 ratio	15.28%	14.73%	14.46%	14.03%	13.87%
Tier 1 Risk Based Capital ratio	15.28%	14.73%	14.46%	14.03%	13.87%
Total Risk Based Capital ratio	16.42%	15.85%	15.50%	15.09%	14.99%
Credit Quality
Net Charge-offs to Average Loans	0.02%	0.03%	0.01%	0.04%	0.01%
Total Non-performing Loans to Total Loans	0.76%	0.83%	1.45%	0.08%	0.16%
Total Non-performing Assets to Total Assets	0.62%	0.69%	1.38%	0.29%	0.12%
Nonaccrual Loans to Total Loans	0.64%	0.71%	1.07%	0.00%	0.14%
Allowance for Loan and Lease Losses to loans receivable	1.19%	1.16%	1.06%	1.09%	1.14%