Results Increase in Net Profit 15.8% from Prior Year
Fueled by growth in both loans and deposits over this quarter
last year, The Freedom Bank of Virginia (Bank) (OTC.QB:FDVA) earned
a net profit of $348,215 for the quarter ending March 31, 2014.
This is a 15.8% increase over the March 31, 2013 net profit of
$300,596, and its twentieth consecutive profitable quarter.
Total assets increased 22.4% to $293,553,695 at March 31, 2014,
up from $239,780,059 at March 31, 2013. Asset growth was funded
mainly through a $52,485,463 increase in deposits. More than half
of the asset growth was funded through increased transaction
accounts, which tend to be stable funding for banks. Non-interest
checking account balances soared from $33,195,790 at March 31, 2013
to $49,192,423 at March 31, 2014, a $15,996,633 (48.2%) increase.
Much of the rise in checking account balances was from the bank’s
government contracting clients.
Interest bearing money market account balances grew $12,670,466
(33.3%) to $50,674,832 for the same period. Certificates of Deposit
rose $23,192,997 (16.4%) to $164,201,126 at March 31, 2014.
Although interest rates on deposits declined in 2014 from 2013, the
increase in interest bearing deposits caused interest expense to
rise $46,243 (9.6%) to $529,086.
According to CEO Craig Underhill, “The bank is improving asset
quality while achieving strong loan growth.” Gross loans receivable
increased $61,439,171 (33.5%) to $244,735,023 at March 31, 2014, up
from $183,295,852 at March 31, 2013. Loan growth increased total
interest income $589,195 (22.9%) in 2014 versus the prior year.
Increased higher yielding loans allowed the bank to reduce
investment securities by $10,187,507 (30.4%) to $23,297,947 from
the prior year.
Freedom Bank’s loan quality continued improving during its
impressive growth. Past due loans declined to 0.0% at March 31,
2014, down from 0.27% at March 31, 2013. Loans no longer accruing
interest decreased to 0.49% of loans at March 31, 2014, down from
1.09% of loans at March 31, 2013. The Bank had no real estate owned
at quarter end. However, the large increase in new loans required
the bank to increase the provision for loan losses by $30,000 in
2014 over the prior year. Still, net interest income after
provision for loan losses was up $512,951 or 25.4%. Reduced fees on
mortgages sold led to a $161,010 (65.2%) drop in non-interest
income. Non-operating expenses rose $304,322 (15.5%) led by a
$177,250 (14.7%) increase in payroll due to additional lending
staff, leaving net profit up 15.8%.
The Bank continues its tradition of maintaining a strong capital
base to serve the needs of its customers and stockholders. Capital
continues to increase, growing $1,025,301 (4.0%) over the same
period in the prior year to $26,580,469. Regulatory Capital
minimums for Tier 1 Leverage Ratio, Risk Based Capital Tier 1, and
Risk Based Capital Tier 2 are 5.0%, 6.0% and 10.0% respectively, to
be considered well capitalized. At March 31, 2014 the ratios for
the Bank were 9.22%, 11.08% and 12.15% respectively, all in the
well capitalized category.
Freedom Bank is a community-oriented, locally-owned bank with
locations in Fairfax and Vienna, Virginia. Another banking center
will open this year in Reston, 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 UNAUDITED
March 31, 2014
March 31, 2013 ASSETS Cash and due from
banks $ 5,022,619 $ 6,970,034 Federal funds sold 15,824,000
8,794,000 Interest Bearing Balances with Banks 1,021,073 1,017,009
Investment securities available for sale, at fair value 23,297,947
33,485,453 Investment securities held to maturity 35,399 292,997
Federal Reserve Bank stock 783,600 757,950 Loans held for sale
121,000 2,624,808 Loans receivable 244,735,023 183,295,852
Allowance for possible loan losses (2,590,115 )
(2,305,040 ) Net Loans 242,144,908 180,990,812 Premises and
equipment, net 276,405 204,595 Accrued interest and other
receivables 671,251 697,770 Other assets 1,244,185 1,274,209 Bank
Owned Life Insurance 2,115,308 2,058,422 Deferred Tax Asset
996,000 612,000
Total Assets $
293,553,695 $ 239,780,059
LIABILITIES AND
STOCKHOLDERS' EQUITY Liabilities: Demand deposits: Non-interest
bearing deposits $ 49,192,423 $ 33,195,790 Interest Checking
50,674,832 38,004,367 Savings deposits 1,839,060 1,213,692 Time
deposits 164,201,126 141,008,129
Total Deposits
265,907,441 213,421,978 Other accrued expenses 982,625
721,648 Accrued interest payable 83,160 81,265
Total Liabilities
266,973,226 214,224,891
Stockholders' Equity:
Common stock, $3.47 par value (5,000,000
shares authorized:
3,468,149 shares issued and outstanding
March 31, 2014
3,439,340 shares issued and outstanding
March 31, 2013)
12,042,200 11,942,228 Additional paid-in capital 16,371,940
16,284,302 Accumulated other comprehensive income (305,401 )
276,297 Retained earnings (deficit) (1,528,270 )
(2,947,659 )
Total Stockholders' Equity
26,580,469 25,555,168
Total
Liabilities and Stockholders' Equity $ 293,553,695 $
239,780,059
The Freedom Bank of
Virginia Statements of Operations UNAUDITED
For the three months ended March 31,
2014 2013 Interest Income
Interest and fees on loans $ 3,019,245 $ 2,464,375 Interest on
investment securities 135,880 101,361 Interest on Federal funds
sold 7,561 7,755 Total Interest Income 3,162,686
2,573,491
Interest Expense Interest on deposits
529,086 482,842 Net Interest Income 2,633,600
2,090,649
Provision for Possible Loan Losses
100,000 70,000 Net Interest Income after Provision
for Possible Loan Losses 2,533,600 2,020,649
Other
Income Service charges and other income 72,071 231,538 Increase
in cash surrender value of bank-owned life insurance 13,704
15,247 Total Other Income 85,775 246,785
Operating
Expenses Officers and employee compensation and benefits
1,381,670 1,204,421 Occupancy expense 136,555 124,995 Equipment and
depreciation expense 77,409 52,704 Insurance expense 55,469 51,529
Professional fees 229,505 139,537 Data and item processing 182,916
176,641 Business development 50,425 48,046 Franchise tax 63,748
59,661 Other operating expenses 93,463 109,304 Total
Operating Expenses 2,271,160 1,966,838 Income
before Income Taxes 348,215 300,596
Provision for Income
Taxes - -
Net Income $ 348,215 $
300,596
Net Income Per Common Share $ 0.10 $ 0.09
Net Income Per Diluted Share $ 0.10 $ 0.09
Freedom Bank of VirginiaCraig S. Underhill, President &
CEO703-242-5300
Freedom Financial (QX) (USOTC:FDVA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Freedom Financial (QX) (USOTC:FDVA)
Historical Stock Chart
From Jul 2023 to Jul 2024