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Wednesday, July 20, 2016 6:06:42 PM
Strong Asset Growth Continues
FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX:FDVA) had second quarter net income of $663,424, up 45.9% from $454,857 for the second quarter of 2015, and midyear net income of $1,065,875, up 78.4% from $597,381 earned through June 30, 2015.
CEO Craig Underhill indicated, “The Bank is leveraging its increased legal lending limit to grow its loan portfolio, while maintaining our stringent credit underwriting standards. We made $1 million in net income by midyear for the first time, and are increasing our return on equity for our shareholders in line with larger high performing peers.”
Revenue increases across all business lines contributed to the improved profitability.
• Investment income doubled to $0.62 million.
• Interest on loans increased $1.20 million (15%) to $8.86 million.
• Mortgage banking revenue increased $0.88 million (102.4%) to $1.74 million.
• Earnings per share for the quarter were $0.11 at June 30, 2016. This was unchanged from the second quarter of 2015 due to 1,887,119 additional shares outstanding at June 30, 2016 versus the prior year from a successful stock sale.
Asset growth accelerated in the second quarter of 2016, remaining far above the national average for the third consecutive year.
• Total assets increased 24.8% or $94.5 million to $475.8 million at June 30, 2016 from the prior year.
• Loans receivable, the Bank’s highest yielding asset, increased 19.8% from $306.1 million to $366.8 million.
• Loans held for sale from the mortgage division increased 74.9% from $10.3 million at June 30, 2015 to $17.9 million at June 30, 2016
• Marketable securities consisting of bonds increased to $55.9 million at June 30, 2016 up 72.0% from $32.5 million at June 30, 2015.
Asset growth was funded by increases in operating accounts and borrowings.
• Checking deposits rose $13.2 million (24.7%) over the prior year to $66.6 million.
• Interest checking balances increased $27.3 million to $103.3 million at June 30, 2016, up 36% from $76.0 million a year earlier.
• Certificates of deposit increased 3.3% from the prior year from $215.7 million to $222.8 million.
• The Bank began borrowing from FHLB Atlanta in 2016 both to hedge longer term loans as well as short term to fund the build up in loans held for sale. Borrowings were $24.1 million at June 30, 2016, up from $0 the prior year. It also borrowed $5 million on a Fed Funds facility at June 30, 2016.
• Equity increased to $50.4 million from $32.1 million the prior year due to retained earnings and a $16 million capital infusion. Book value per share was $8.17 at June 30, 2016, up from $7.52 at June 30, 2015.
Asset quality remains far superior to national averages. Loans past due more than thirty days were 0.18% of total loans for the quarter compared to 0.04% at June 30, 2015. Non performing assets were 0.20% of total assets at June 30, 2016 versus 0.17% the prior year.
Freedom Bank is a community-oriented bank with locations in Fairfax, Reston and Vienna, Virginia. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.
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http://www.businesswire.com/news/home/20160720006495/en/Freedom-Bank-Posts-Record-Q2-Midyear-Net
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