FAIRFAX, Va.–(BUSINESS WIRE)–
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 Banks 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.
Investment securities available for sale, at fair value
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Freedom Bank Celebrates 16th Consecutive Quarterly Profit