Freedom Bank Announces 2012 Third Quarter Earnings
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 sold | 19,780,000 | 18,742,000 | ||||||
Interest bearing balances with banks | 1,014,986 | 1,004,071 | ||||||
Investment securities available for sale, at fair value | 30,631,566 | 11,325,335 | ||||||
Investment securities held to maturity | 403,670 | 765,578 | ||||||
Federal Reserve Bank stock | 732,300 | 675,400 | ||||||
Loans held for sale | 1,864,850 | 925,300 | ||||||
Loans receivable | 157,209,916 | 148,612,798 | ||||||
Allowance for possible loan losses | (2,136,821 | ) | (2,021,135 | ) | ||||
Net Loans | 155,073,095 | 146,591,663 | ||||||
Premises and equipment, net | 207,380 | 234,041 | ||||||
Accrued interest and other receivables | 660,303 | 440,886 | ||||||
Other assets | 3,425,471 | 1,525,278 | ||||||
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 deposits | 38,420,474 | 31,773,798 | ||||||
Interest Checking | 33,848,447 | 38,848,386 | ||||||
Savings deposits | 1,525,117 | 1,161,586 | ||||||
Time deposits | 118,858,773 | 105,621,794 | ||||||
Total Deposits | 192,652,811 | 177,405,564 | ||||||
Other accrued expenses | 633,388 | 471,848 | ||||||
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) | 11,858,828 | 11,818,325 | ||||||
Additional paid-in capital | 16,247,703 | 16,046,069 | ||||||
Accumulated other comprehensive income | 207,009 | 32,920 | ||||||
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 ended | For the nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Interest Income | ||||||||||||
Interest and fees on loans | $ | 2,323,266 | $ | 2,235,785 | $ | 6,939,300 | $ | 6,797,098 | ||||
Interest on investment securities | 148,077 | 107,714 | 462,118 | 281,844 | ||||||||
Interest on Federal funds sold | 5,767 | 8,321 | 31,390 | 26,154 | ||||||||
Total Interest Income | 2,477,110 | 2,351,820 | 7,432,808 | 7,105,096 | ||||||||
Interest Expense | ||||||||||||
Interest on deposits | 486,584 | 441,208 | 1,524,676 | 1,373,967 | ||||||||
Net Interest Income | 1,990,526 | 1,910,612 | 5,908,132 | 5,731,129 | ||||||||
Provision for Possible Loan Losses | 17,200 | 20,000 | 588,200 | 333,000 | ||||||||
Net Interest Income after | ||||||||||||
Provision for Possible Loan Losses | 1,973,326 | 1,890,612 | 5,319,932 | 5,398,129 | ||||||||
Other Income | ||||||||||||
Service charges and other income | 268,629 | 199,542 | 688,632 | 387,696 | ||||||||
Operating Expenses | ||||||||||||
Officers and employee compensation and benefits | 1,083,321 | 856,012 | 2,952,054 | 2,533,616 | ||||||||
Occupancy expense | 126,549 | 130,926 | 386,478 | 400,565 | ||||||||
Equipment and depreciation expense | 41,799 | 52,212 | 138,168 | 170,092 | ||||||||
Insurance expense | 43,588 | 62,185 | 129,168 | 200,299 | ||||||||
Professional fees | 142,581 | 68,119 | 369,574 | 191,467 | ||||||||
Data and item processing | 149,254 | 137,717 | 453,152 | 389,081 | ||||||||
Business development | 31,224 | 32,429 | 97,334 | 97,244 | ||||||||
Franchise tax | 59,662 | 48,840 | 166,449 | 154,115 | ||||||||
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 Taxes | 452,617 | 618,321 | 1,013,472 | 1,420,358 | ||||||||
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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