FDVA Freedom Financial Holdings Inc (QX)

Freedom Bank of Virginia (Bank) (Bulletin Board:FDVA.OB) earned a Net profit before taxes of $300,596 for the quarter ending March 31, 2013, its sixteenth consecutive quarterly profit. Net profit at March 31, 2012 was $308,772. Improving asset quality, allowed less to be put in the Provision for loan losses, which helped offset increased salary expense from hiring additional lenders versus the prior year.

The Bank generated significant loan growth over the trailing twelve months. Gross loans receivable increased to $183,295,852, which was up 18.5% from $154,468,808 at March 31, 2012. According to CEO Craig Underhill, “The Bank significantly increased the size of its lending staff in the second half of 2012 and is realizing significant loan growth from that investment.” In addition to the staff hired in 2012, the Bank hired two more experienced commercial lenders in the first quarter of 2013 to continue to accelerate loan growth.

Total assets increased 10.4% to $239,780,059 up from $217,266,197 at March 31, 2012. Investment securities increased $8,154,889 (32.2%) to $33,485,453 and Bank Owned Life Insurance increased $1,058,422 (105.8%) during the same period, which along with loan growth increased these assets of the Bank by $37,860,355 (20.8%) since March 31, 2012. The growth in assets was partially funded by $20,670,596 (10.7%) growth in deposits. The Bank also decreased low yielding Federal Funds by $17,971,000 (-67.1%) to fund the growth of higher yielding assets compared with March 31, 2012.

Capital continues to be strong, growing $1,558,970 (6.5%) over the same period in the prior year to $25,555,169. 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, to be considered well capitalized. At March 31, 2013 the ratios for the Bank were 10.59%, 13.28 % and 14.49% respectively, all in the well capitalized category. The Bank continues its tradition of maintaining a strong capital base to serve the needs of its customers and stockholders.

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 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         March 31, 2013     March 31, 2012     ASSETS Cash and due from banks $ 6,970,034 $ 5,034,081 Federal funds sold 8,794,000 26,765,000 Interest Bearing Balances with Banks 1,017,009 1,010,573

Investment securities available for sale, at fair value

33,485,453 25,330,564 Investment securities held to maturity 292,997 527,271 Federal Reserve Bank stock 757,950 710,950 Loans held for sale 2,624,808 1,841,400 Loans receivable 183,295,852 154,648,808 Allowance for possible loan losses   (2,305,040 )   (2,303,164 ) Net Loans 180,990,812 152,345,644 Premises and equipment, net 204,595 203,556 Accrued interest and other receivables 697,770 583,584 Other assets 1,274,209 1,301,574 Bank Owned Life Insurance 2,058,422 1,000,000 Deferred Tax Asset   612,000     612,000     Total Assets $ 239,780,059   $ 217,266,197     LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Demand deposits: Non-interest bearing deposits $ 33,195,790 $ 32,768,881 Interest Checking 38,004,367 36,014,310 Savings deposits 1,213,692 1,329,353 Time deposits   141,008,129     122,638,838  

Total Deposits

213,421,978 192,751,382   Other accrued expenses 721,648 444,458 Accrued interest payable   81,265     74,159   Total Liabilities   214,224,891     193,269,999     Stockholders' Equity:

Common stock, $4.17 par value. (5,000,000 shares authorized):

2,866,117 shares issued and outstanding March 31, 2013 2,836,404 shares issued and outstanding March 31, 2012 11,942,228 11,818,325 Additional paid-in capital 16,284,302 16,184,810 Accumulated other comprehensive income 276,298 124,800 Retained earnings (deficit)   (2,947,659 )   (4,131,737 )   Total Stockholders' Equity   25,555,169     23,996,198     Total Liabilities and Stockholders' Equity $ 239,780,059   $ 217,266,197       The Freedom Bank of Virginia Statements of Operations UNAUDITED         For the three months ended March 31, 2013     2012 Interest Income Interest and fees on loans $ 2,464,375 $ 2,298,783 Interest on investment securities 101,361 143,640 Interest on Federal funds sold   7,755   13,786 Total Interest Income 2,573,491 2,456,209   Interest Expense Interest on deposits   482,842   521,929   Net Interest Income 2,090,649 1,934,280   Provision for Possible Loan Losses   70,000   266,000   Net Interest Income after Provision for Possible Loan Losses 2,020,649 1,668,280   Other Income Service charges and other income 231,538 203,945 Increase in cash surrender value of bank-owned life insurance   15,247   - Total Other Income 246,785 203,945   Operating Expenses Officers and employee compensation and benefits 1,204,421 949,615 Occupancy expense 124,995 133,051 Equipment and depreciation expense 52,704 48,243 Insurance expense 51,529 41,389 Professional fees 139,537 85,307 Data and item processing 176,641 151,913 Business development 48,046 34,196 Franchise tax 59,661 50,340 Other operating expenses   109,304   69,399 Total Operating Expenses   1,966,838   1,563,453   Income before Income Taxes 300,596 308,772 Provision for Income Taxes   -   -   Net Income $ 300,596 $ 308,772   Net Income Per Common Share $ 0.10 $ 0.11   Net Income Per Diluted Share $ 0.10 $ 0.11