Freedom Financial Hldgs. Inc. (FDVA)

[Enterprising Investor]

Freedom Bank Has Record Pre-Tax Earnings for First Half of 2015 (7/21/15)

FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX:FDVA) continued its impressive record of growth through June 30, 2015 with total assets of $381,368,227, up (26.9%) from $300,555,167 a year earlier. Gains occurred across the bank’s major earning asset groups of marketable securities, loans held for sale and loans receivable. Marketable securities consisting of bonds increased to $32,520,056 up 72.8% from $18,823,922 a year earlier. Strong performance by the mortgage division increased loans available for sale at June 30, 2015 to $10,264,722, up from $459,000 the prior year. The bank’s highest yielding asset, loans receivable, grew to $306,080,492 at June 30, 2015, up 21.0% from $253,070,371 at June 30, 2014.

The bank continues maintaining high quality credit standards. Past due loans were only 0.04% at June 30, 2015 and non-performing assets for the bank were only 0.17%. Both of these measures of asset quality are superior to the bank’s peer group and better than national averages.

More loans generated total interest income of $7,973,176 at June 30, 2015, up 21.8% from $6,543,869 the prior year. Non interest income of $1,198,192 at June 30, 2015 increased $954,811 primarily due to an $885,485 increase in fees from mortgage banking operations from the prior year.

Richard Hutchison, Chief Mortgage Officer of Freedom Bank Mortgage, added, “We have assembled a great group of people here at Freedom Bank Mortgage, many of whom previously worked together. We look forward to continuing to build our team and are pleased we have been able to contribute to the bank’s overall profitability in a short period of time.”

Large increases in assets were funded by more deposits and capital. Non-interest bearing checking deposits were $53,421,966 at June 30, 2015 compared with $48,823,404 a year earlier. Interest bearing checking deposits were $75,990,493, up 51.5% from $50,145,053 the prior year. Certificates of Deposits increased to $215,697,857 at June 30, 2015 from $170,554,825 same period prior year. Capital increased to $32,163,397 at June 30, 2015, up $5,027,031(18.5%) from the $27,136,366 balance at June 30, 2014.

The bank earned a record pre-tax net income of $904,881 at June 30, 2015, up from $828,592 for the first half of 2014. Net income after tax was $597,381 at June 30, 2015. Freedom Bank earned a pre-tax net income of $688,857 for the quarter ended June 30, 2015 up (43.4%) from the $480,377 pre-tax net income for the same period the prior year. The bank incurred no income tax expense in 2014. Net income after taxes was $454,857 for the quarter ended June 30, 2015. This was the bank’s twenty-fifth consecutive quarterly net profit.

CEO Craig Underhill indicated, “The bank made a substantial investment in its mortgage division in the first quarter of 2015, which affected net income for that quarter. We began realizing a return on that investment in the second quarter. Strong mortgage banking revenue and loan production were the primary drivers increasing profitability.”

Freedom Bank is a community-oriented, locally-owned bank with locations in Fairfax, Vienna, and Reston Virginia. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.

http://www.businesswire.com/news/home/20150721006622/en/Freedom-Bank-Record%C2%A0Pre-Tax-Earnings%C2%A0for-2015#.Vb_BPiHbKUk