Freedom Bank Reports Third Consecutive Year Of Profitability In 2012

Stockholder’s Equity exceeded $25,000,000 for the first time for the year ending December 31, 2012. Stockholders Equity was $25,264,084 up 6.61% from $23,697,402 at 12/31/2011. Year end book value per share was $8.81, up from $8.07 the prior year.

Capital continues to be a strength of the Bank. Regulatory capital minimums to be considered well capitalized for Tier 1 Leverage Ratio, Risk Based Capital Tier 1, and Risk Based Capital Tier 2 are 5.0%, 6.0% and 10.0% respectively. At 12/31/2012 the ratios for the Bank were 11.06%, 13.80% and 15.03% respectively, all in the well capitalized category. The Bank continues its tradition of maintaining a strong capital base to serve the needs of its customers and stockholders.

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

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our quarterly and annual reports filed with the Board of Governors of the Federal Reserve System. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

The Freedom Bank of Virginia
Statements of Financial Condition
		December 31, 2012				December 31, 2011
ASSETS
Assets:
Cash and due from banks		$	10,884,094			$	16,128,032
Federal funds sold			18,788,000				15,753,000
Interest Bearing Balances with Banks			1,016,006				1,007,339
Investment securities available for sale, at fair value			28,717,795				15,183,798
Investment securities held to maturity			348,616				666,152
Federal Reserve Bank stock			746,650				689,350
Loans held for sale			3,656,829				3,007,500
Loans receivable			171,901,847				154,407,193
Allowance for possible loan losses			(2,236,822	)			(2,037,164	)
Net Loans			169,665,025				152,370,029
Bank Premises and equipment, net			199,500				213,857
Accrued interest and other receivables			607,276				519,450
Other assets			3,400,353				1,406,757
Deferred Tax Asset			612,000				612,000
Total Assets		$	238,642,144			$	207,557,264
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Demand deposits:
Non-interest bearing deposits		$	34,951,109			$	25,392,303
Interest Checking			36,601,864				41,673,770
Savings deposits			1,467,280				1,269,065
Time deposits			139,555,489				114,811,184
Total Deposits			212,575,742				183,146,322
Other accrued expenses			732,466				654,898
Accrued interest payable			69,852				58,642
Total Liabilities			213,378,060				183,859,862
Stockholders' Equity
Common stock, $5 par value. (5,000,000 shares authorized:
2,866,117 shares issued and outstanding, December 31, 2012
2,836,404 shares issued and outstanding, December 31, 2011)			11,942,228				11,818,325
Additional paid-in capital			16,284,303				16,184,810
Accumulated other comprehensive income			285,809				134,776
Retained earnings (deficit)			(3,248,256	)			(4,440,509	)
Total Stockholders' Equity			25,264,084				23,697,402
Total Liabilities and Stockholders' Equity		$	238,642,144			$	207,557,264

The Freedom Bank of Virginia
Statements of Operations
		For the year ended
		December 31,
		2012			2011
Interest Income
Interest and fees on loans		$	9,305,595		$	9,110,312
Interest on investment securities			574,361			399,427
Interest on Federal funds sold			40,993			38,662
Total Interest Income			9,920,949			9,548,401
Interest Expense
Interest on deposits			2,008,653			1,861,828
Net Interest Income			7,912,296			7,686,573
Provision for Possible Loan Losses			688,200			348,000
Net Interest Income after Provision for Possible Loan Losses			7,224,096			7,338,573
Other Income
Service charges and other income			875,816			568,028
Operating Expenses
Officers and employee compensation and benefits			4,094,031			3,406,089
Occupancy expense			510,776			530,328
Equipment and depreciation expense			188,442			218,752
Insurance expense			179,105			241,878
Professional fees			548,748			398,568
Data and item processing			607,388			534,008
Business development			123,455			124,851
Franchise tax			226,110			202,955
Other operating expenses			429,602			348,872
Total Operating Expenses			6,907,657			6,006,301
Income before Income Taxes			1,192,255			1,900,300
Income Tax (Benefit) Expense			-			-
Net Income		$	1,192,255		$	1,900,300
Net Income Per Common Share		$	0.42		$	0.67
Net Income Per Diluted Share		$	0.42		$	0.67

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