This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Freedom Bank Reports Third Consecutive Year Of Profitability In 2012

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. 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.

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 Bank’s 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.

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.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,048.93 -22.29 -0.13%
S&P 500 1,969.75 -8.05 -0.41%
NASDAQ 4,487.3880 -18.4640 -0.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs