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Friday, October 21, 2016 9:48:33 AM
Total Assets Grow $104 Million from the Prior Year’s Third Quarter
FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX:FDVA) earned a record net income of $719,205 for the third quarter ending September 30, 2016. This was up $186,213 (34.9%) from $532,992 earned for the same period one year earlier. Increased profitability resulted from continued improvement in interest income from loans and investments which increased $1,048,969 (24.0%). Non interest income, primarily generated through the gain on sale of mortgages, increased $756,702 (121%) from the prior year. While maintaining asset quality, increased loan volume required a loan loss provision of $515,500, up from $139,000 the prior year. Earnings per share were $0.12 for the quarter, unchanged from the prior year due to the higher share count from the bank’s successful stock offering in December 2015.
For the nine months ending September 30, 2016, net income was $1,785,080. This was up $654,707 (57.9%) from the prior year. Net income in the first nine months of 2016 already exceeds total net income for all of 2015. Banking and mortgage banking operations produced the strong results. Interest income from loans and investments increased $2,559,965 (20.7%) and additional non interest income from the gain on sale of mortgages was up $1,653,053 (101.6%) from the prior year. Strong loan growth in 2016 necessitated a larger provision for loan losses in 2016 to $925,500, up from $609,000 the prior year. Earnings per share through the third quarter of 2016 were $0.29 per share, up from $0.26 per share in 2015.
CEO Craig Underhill stated, “Positive operating leverage is fueling earnings growth. The upward trend in earnings per share continues even with the higher share count from our successful stock offering at the end of 2015. We have the capital to grow the bank and we are executing our plan to achieve scale for earning per share growth to enhance shareholder value.”
Total assets increased $103,934,364 (26.6%) to $494,027,493 at September 30, 2016 compared to September 30, 2015. The highest yielding asset of Loans Receivable grew $76,097,431 organically (23.7%) to $396,819,026 at September 30, 2016. Loans held for sale were $13,825,894, up from $6,141,110 the prior year. Investment Securities held for sale were $46,196,986, up 31.4% from $35,149,994 a year earlier.
Asset quality remains strong with non-performing assets comprising 0.22% of total assets at September 30, 2016. They were 0.09% of total assets at September 30, 2015. Past due loan balances still accruing interest were $0 at September 30, 2016 compared to $122,797.96 or 0.04% of total loans the prior year. Both of these metrics are far superior to national peers.
Large asset growth was funded by deposit growth, Federal Home Loan Bank advances and additional equity compared with the prior year. Non interest checking balances were $66,056,888 at September 30, 2016, up 14.2% from $57,859,877 a year earlier. Interest bearing checking account balances were $105,056,440, a $16,842,806 (19.1%) increase from $88,213,624 the prior year. Certificates of deposits were $241,037,751, up 17.6% from $205,050,631 a year earlier. Total deposits were $414,299,769 at September 30, 2016, versus $354,008,080 a year earlier.
Capital increased to $51,158,971 at September 30, 2016, a 55.6% improvement over the $32,881,109 level at September 30, 2015. Book value per share was $8.30 at September 30, 2016 and $7.68 at September 30, 2015.
Freedom Bank is a community-oriented, locally-owned 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/20161021005526/en/Freedom-Bank-Reports-Record-Net-Income-Quarter
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