Freedom Bank Announces 2012 Third Quarter Earnings

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Freedom Bank Announces 2012 Third Quarter Earnings

FAIRFAX, Va.--(BUSINESS WIRE)-- The Freedom Bank of Virginia (Bank) (Bulletin Board: FDVA.OB) earned a Net Profit Before Taxes of $452,617 for the quarter ending September 30, 2012, its fourteenth consecutive quarterly profit. Net Profit for the quarter ended September 30, 2011 was $618,321. Net Profit Before Taxes was $1,013,472 for the first nine months of 2012 compared to a Net Profit for the first nine months of 2011 of $1,420,358. The reduction in profit in 2012 versus 2011 was principally due to an increase in the provision for loan losses as well as expenses associated with hiring additional commercial lenders in the third quarter.

Financial Highlights

  • Total assets increased from $200,913,660 at September 30, 2011 to $218,243,386 at September 30, 2012.
  • Investment Securities Available for Sale increased from $11,325,335 at September 30, 2011 to $30,631,566 at September 30, 2012.
  • Loans Receivable increased from $148,612,798 at September 30, 2011 to $157,209,916 at September 30, 2012.
  • Asset quality remains strong with non performing assets decreasing to 1.05% of total assets at September 30, 2012, down from 1.95% at September 30, 2011.
  • Non Interest Bearing Deposits increased $6,646,676 (20.92%) to $38,420,474 between September 30, 2011 and September 30, 2012.
  • Total deposits increased $15,247,247 (8.59%) to $193,356,884 between September 30, 2011 and September 30, 2012.
  • Total capital increased $1,909,639 (8.31%) over the past year to $24,886,502 at September 30, 2012, up from $22,976,660 at September 30, 2011.
  • 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, 2012 the ratios for the Bank were 11.51%, 14.67%% and 15.92%% respectively, all in the well capitalized category.

According to CEO Craig Underhill, "The Bank continues to grow and be profitable despite the challenging economy. The Bank hired two additional commercial bankers during the third quarter as part of its growth plan. Subsequent to the end of the quarter, Freedom Bank also hired Kevin Curtis, Executive Vice President Corporate Banking, to accelerate future commercial loan growth."

In 2012 the Bank made a decision to deregister its shares under the Jumpstart Our Business Startups Act (JOBS). The Bank filed its application on June 26, 2012 and deregistration became effective September 26, 2012. The Bank's requirement to file reports with the Federal Reserve including forms 10-K, 10-Q and 8-K has been suspended. However, the Bank will continue to provide quarterly press releases of financial performance and to post annual and quarterly financial reports on our website at www.freedombankva.com. As part of our effort to be more environmentally responsible, we will now mail out quarterly reports only upon request.

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, 2012 September 30, 2011
ASSETS
Cash and due from banks$3,837,765$18,072,108
Federal funds sold19,780,00018,742,000
Interest bearing balances with banks1,014,9861,004,071
Investment securities available for sale, at fair value30,631,56611,325,335
Investment securities held to maturity403,670765,578
Federal Reserve Bank stock732,300675,400
Loans held for sale1,864,850925,300
Loans receivable157,209,916148,612,798
Allowance for possible loan losses (2,136,821) (2,021,135)
Net Loans155,073,095146,591,663
Premises and equipment, net207,380234,041
Accrued interest and other receivables660,303440,886
Other assets3,425,4711,525,278
Deferred tax asset 612,000  612,000 
 
Total Assets$218,243,386 $200,913,660 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Non-interest bearing deposits38,420,47431,773,798
Interest Checking33,848,44738,848,386
Savings deposits1,525,1171,161,586
Time deposits 118,858,773  105,621,794 
Total Deposits192,652,811177,405,564
 
Other accrued expenses633,388471,848
Accrued interest payable 70,685  59,385 
Total Liabilities 193,356,884  177,936,797 
 
Stockholders' Equity

Common stock, $4.17 par value. (5,000,000 shares authorized: issued and outstanding 2,856,117 shares for September 30, 2012 and 2,836,398 shares for September 30, 2011)

11,858,82811,818,325
Additional paid-in capital16,247,70316,046,069
Accumulated other comprehensive income207,00932,920
Retained earnings (deficit) (3,427,038) (4,920,451)
 
Total Stockholders' Equity 24,886,502  22,976,863 
 
Total Liabilities and Stockholders' Equity$218,243,386 $200,913,660 
    
The Freedom Bank of Virginia
Statements of Operations
UNAUDITED
 
For the three months endedFor the nine months ended
September 30,September 30,
2012 20112012 2011
 
Interest Income
Interest and fees on loans$2,323,266$2,235,785$6,939,300$6,797,098
Interest on investment securities148,077107,714462,118281,844
Interest on Federal funds sold 5,767 8,321 31,390 26,154
Total Interest Income2,477,1102,351,8207,432,8087,105,096
 
Interest Expense
Interest on deposits 486,584 441,208 1,524,676 1,373,967
 
Net Interest Income1,990,5261,910,6125,908,1325,731,129
 
Provision for Possible Loan Losses 17,200 20,000 588,200 333,000
 
Net Interest Income after
Provision for Possible Loan Losses1,973,3261,890,6125,319,9325,398,129
 
Other Income
Service charges and other income268,629199,542688,632387,696
 
Operating Expenses
Officers and employee compensation and benefits1,083,321856,0122,952,0542,533,616
Occupancy expense126,549130,926386,478400,565
Equipment and depreciation expense41,79952,212138,168170,092
Insurance expense43,58862,185129,168200,299
Professional fees142,58168,119369,574191,467
Data and item processing149,254137,717453,152389,081
Business development31,22432,42997,33497,244
Franchise tax59,66248,840166,449154,115
Other operating expenses 111,360 83,393 302,715 228,988
Total Operating Expenses 1,789,338 1,471,833 4,995,092 4,365,467
 
Income before Income Taxes452,617618,3211,013,4721,420,358
Provision for Income Taxes - - - -
 
Net Income$452,617$618,321$1,013,472$1,420,358
 
Net Income Per Common Share$0.16$0.22$0.36$0.50
 
Net Income Per Diluted Share$0.16$0.22$0.36$0.28
 



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

KEYWORDS:   United States  North America  Virginia

INDUSTRY KEYWORDS:

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