Freedom Bank Earns Record Pre-Tax Income in Third Quarter (10/27/15)
Operating Leverage Increases Profitability
FAIRFAX, Va.--(BUSINESS WIRE)--The Freedom Bank of Virginia (OTCQX: FDVA) earned a record pre-tax net income of $807,992 for the quarter ending September 30, 2015. The bank showed strong performance in terms of net income, asset growth and core deposit expansion.
CEO Craig Underhill indicated, “Improving profitability resulted from operating leverage. Freedom built its lending and credit teams over the last two years and profitability is climbing as production rises without corresponding overhead increases. The magnitude of improvement is evident by earning more this quarter after income taxes than the bank did in the same quarter last year before taxes. The same lenders brought in operating accounts to the bank, increasing its core funding year over year.”
Financial Highlights
Operations
• Net pre-tax profit for the quarter ending September 30, 2015 was $807,992, an increase from $471,857 at September 30, 2014. Net profit after tax provision was $532,992 at September 30, 2015. There was no provision for income taxes required in 2014.
• Net pre-tax profit for the nine months ending September 30, 2015 was $1,712,873, up (31.7%) from $1,300,449 the prior year. Net profit after provision for income taxes was $1,130,373 at September 30, 2015. There was no provision for income taxes required in 2014.
• Net pre-tax profit was helped by strong mortgage banking revenue. Gain on loans sold and service charges increased to $1,888,739 at September 30, 2015, up from $338,768 the prior year.
Condition
• Loans Receivable increased 24.9% from $256,760,042 at September 30, 2014 to $320,721,595 at September 30, 2015.
• Total Assets increased 27.8% from $305,265,372 at September 30, 2014 to $390,093,129 at September 30, 2015.
• Asset quality remains strong with non-performing assets comprising 0.09% of total assets at September 30, 2015. This was down from 0.68% of total assets at September 30, 2014. Past due loans at September 30, 2015 were $122,797.96 or 0.04% of total loans. This was down from $123,309.74 or 0.5% the same period last year.
• Non-Interest Bearing Deposits increased $8,815,707 (18.0%) to $57,859,877 between September 30, 2014 and September 30, 2015.
• Interest Checking Deposits grew $39,380,374 (80.6%) to $88,213,634 between September 30, 2014 and September 30, 2015.
• Total capital rose $5,241,683 (19.0%) over the past year to $32,881,109, up from $27,639,426 at September 30, 2014. The book value per share was $7.68 per share at September 30, 2015, up from $7.24 at September 30, 2014.
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.
News 
Market Data 
Discover 
