FAIRFAX, Va.--(BUSINESS WIRE)-- <\/p>\n
The Freedom Bank of Virginia (Bulletin Board:FDVA.OB): finished its third consecutive year and fifteenth consecutive profitable quarter on December 31, 2012. <\/p>\n
Assets grew to $238,642,144 at December 31, 2012. This was up 14.98% from $207,557,264 at the prior period. The investment in additional lending officers resulted in double digit loan growth for the year. New lenders made a particularly strong contribution in the fourth quarter with loans to medical professionals. Gross loans increased 11.33% to $171,901,847 up from $154,407,193 at December 31, 2011. In addition to strong loan growth, Investment Securities Available for Sale increased $13,533,997 (89.13%) to $28,717,795 at December 31, 2012. <\/p>\n
Deposit growth was strong for the year at 16.05%. Non-interest bearing deposits increased $9,558,806 (37.64%) to $34,951,109. This growth was due primarily to the Banks strong penetration of the government contracting market. The Bank has focused on this market for many years and strong deposit growth in 2012 resulted from this long term effort. Time deposits increased $29,429,419 (21.55%) to $139,555,489 at December 31, 2012. Part of the strong growth in these areas was reduced by a decline in interest bearing checking accounts, which dropped $5,071,905 (12.17%) to $36,601,864 during the year. <\/p>\n
Net profit declined for the year primarily due to investments the Bank made in loan growth and improving asset quality. The Bank increased its lending staff by 80% late in the year. This helped increase loan production, but also increased compensation expense by $270,000 in the fourth quarter. The Bank earned a net profit in 2012 of $1,192,000 ($0.42 per share), down from $1,900,300 in 2010 ($0.67 per share). Asset quality improved greatly. Loans on which the Bank is no longer accruing interest was halved from 2.43% at December 31, 2011 to 1.21% at December 31, 2012. Loans past due for regularly scheduled payments declined from 1.67% at December 31, 2011 to 0.23% at December 31, 2012. Although the result positioned the Bank well for the coming year, it did require the Bank to increase the Provision for Possible Loan Losses by $340,200 over the prior year. <\/p>\n
Stockholders Equity exceeded $25,000,000 for the first time for the year ending December 31, 2012. Stockholders Equity was $25,264,084 up 6.61% from $23,697,402 at 12\/31\/2011. Year end book value per share was $8.81, up from $8.07 the prior year. <\/p>\n
Capital continues to be a strength of the Bank. Regulatory capital minimums to be considered well capitalized 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. At 12\/31\/2012 the ratios for the Bank were 11.06%, 13.80% and 15.03% 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. <\/p>\n
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 the Banks website at http:\/\/www.freedombankva.com<\/a>. <\/p>\n 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. <\/p>\n<\/p>\n <\/p>\n Continue reading here:<\/p>\n Freedom Bank Reports Third Consecutive Year of Profitability in 2012<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" FAIRFAX, Va.--(BUSINESS WIRE)-- The Freedom Bank of Virginia (Bulletin Board:FDVA.OB): finished its third consecutive year and fifteenth consecutive profitable quarter on December 31, 2012. Assets grew to $238,642,144 at December 31, 2012 Continue reading