The Freedom Bank of Virginia Announces Earnings for the Second Quarter of 2019

FAIRFAX, VA / ACCESSWIRE / July 30, 2019 / The Freedom Bank of Virginia (OTCQX:FDVA), (the “Bank” or “Freedom”) today announced net income of $509,075, or $0.07 per diluted share, for the quarter ended June 30, 2019.

Joseph J. Thomas, President and CEO, commented “We are pleased to see the efforts of the restructuring plan and new innovation strategy take hold resulting in a 20.03% increase in pre-tax profits in the second quarter of 2019 to $629,837 compared to the prior quarter and resumed growth of our balance sheet with a 15.61% annualized increase in total loans to $403.2 million and a 49.31% annualized increase in DDA accounts to $82.8 million, both compared to the prior quarter. The gains in pre-tax income were driven by a 50.18% increase in non-interest income to $1.4 million due to strong production results in our residential mortgage business and a reduction of 2.71% in non-interest expenses, both compared to the prior quarter. However, conditions in banking remain challenging for top line revenue as net interest income declined 8.22% to $3.77 million for the second quarter of 2019 compared to the previous quarter, and we have work to do in order to earn more lead client relationships and remix deposits so as to increase C&I loans and lower the cost of core deposits,” continued Thomas.

Second Quarter 2019 Highlights include:

Net income for the quarter was $509,075 or $0.07 per diluted share compared to $515,986 or $0.07 per diluted share for the first quarter of 2019, and $700,197 or $0.10 per diluted share, for the quarter ended June 30, 2018. Net income for the six months ended June 30, 2019 was $1,025,061 or $0.14 per diluted share compared to $1,008,425 or $0.15 per diluted share for the six months ended June 30, 2018;
Return on Average Assets (“ROAA”) was 0.42% for the quarter ended June 30, 2019 compared to 0.43% for the previous quarter and 0.55% for the quarter ended June 30, 2018. ROAA was 0.43% for the six months ended June 30, 2019 compared to 0.39% for the six months ended June 30, 2018;
Return on Average Equity (“ROAE”) was 3.36% for the quarter ended June 30, 2019 compared to 3.51% for the previous quarter and 5.07% for the quarter ended June 30, 2018. ROAE was 3.44% for the six months ended June 30, 2019 compared to 3.66% for the six months ended June 30, 2018;
Total assets were $489.91 million on June 30, 2019, higher by $11.09 million or 2.32% compared to December 31, 2018;

Loans receivable increased by $11.61 million or by 3.08% during the second quarter, while loans held-for-sale increased by $3.53 million or by 33.44% in the second quarter;

Available-for-sale Securities decreased by $7.18 million or by 13.25% during the quarter;

Total deposits increased by $3.18 million or by 0.80% in the second quarter;

Non-interest bearing demand deposits increased by $8.97 million during the quarter to $81.75 million, and comprised 20.52% of total deposits at June 30, 2019;

The net interest margin was 3.27% for the quarter, lower by 33 basis points compared to the previous quarter and by 32 basis points compared to the same quarter in 2018;

Non-interest income increased by 50.18% compared to the previous quarter, and by 20.23% compared to the same period in 2018, primarily due to higher revenue from the sale of mortgage loans and a gain on sale of investment securities during the second quarter;

Non-interest expenses decreased by 2.71% and by 9.59% compared to the previous quarter and the same period in 2018, respectively. The Efficiency Ratio was 84.97% for the quarter ended June 30, 2019 compared to 89.59% for the previous quarter and 85.65% for the same period in 2018;

The Bank recognized a provision for loan losses of $147,500 during the second quarter. The allowance for loan and lease losses (“ALLL”) was 1.14% of loans receivable at June 30, 2019 compared to 1.16% of loans receivable at December 31, 2018;

Asset quality remains strong with the ratio of non-performing assets to total assets at 0.65% as of June 30, 2019 compared to a ratio of 0.69% as of December 31, 2018;

Capital ratios continue to be strong, and above regulatory minimums for well-capitalized banks: Total Risk Based Capital ratio of 15.98%, Tier 1 Risk Based Capital ratio of 14.91%, Common Equity Tier 1 ratio of 14.91% and Tier 1 Leverage ratio of 12.71% at June 30, 2019.

Net Interest Income

The Bank recorded net interest income of $3.77 for the second quarter of 2019, a decrease of 8.22% compared to the previous quarter and lower by 16.38% compared to the same period in 2018. The net interest margin in the second quarter of 2019 was 3.27%, lower by 33 basis points compared to the previous quarter, and lower by 32 basis points compared to the same period in 2018.

The following factors contributed to the changes in net interest margin during the second quarter of 2019 compared to the previous quarter:

Yields on average earning assets decreased by 23 basis points to 4.76% compared to 4.99% in the previous quarter, primarily due to a decline in loan yields during the second quarter.

Loan yields decreased by 25 basis points to 5.17% from 5.42% in the previous quarter, while yields on investment securities decreased by 3 basis points to 2.80%, from 2.83% in the previous quarter. The decline in loan yields was related to reversal of interest income on loans that had been placed on nonaccrual during the quarter, payoffs of consumer loans and lower yields on loans held-for-sale.

Cost of funds increased by 12 basis points to 1.66%, from 1.54% in the previous quarter, primarily due to higher costs related to time deposits.

The following factors contributed to the changes in net interest margin during the second quarter of 2019 compared to the same period in 2018:

Yields on average earning assets increased by 13 basis points to 4.76% compared to 4.63% in the quarter ended June 30, 2018.

Loan yields decreased by 3 basis points to 5.17% from 5.20% in the quarter ended June 30, 2018, while yields on investment securities increased by 19 basis points to 2.80%, from 2.61% in the quarter ended June 30, 2018.

Cost of funds increased by 49 basis points to 1.66%, from 1.17% in the quarter ended June 30, 2018, primarily due to higher costs related to time deposits.

Non-interest Income

Non-interest income increased by 50.18% compared to the previous quarter and was higher by 20.23% compared to the quarter ended June 30, 2018. The principal contributors to the increase in non-interest income were higher gain-on-sale revenue from mortgage loans and a gain from sale of investment securities during the quarter. The proceeds of the sale of investment securities were redeployed into higher yielding loans.

Total revenue from the gain on sale of mortgage loans increased by 46.96% compared to the previous quarter, and by 8.45% compared to the same period in 2018. The increase in gain-on-sale revenue was driven by the higher volume of mortgage originations during the second quarter of 2019.

Non-interest Expenses

Non-interest expenses decreased by 2.71% compared to the previous quarter and by 9.59% compared to the same period in 2018. Non-interest expenses decreased by 6.12% for the first six months of 2019 compared to the same period in 2018.

Principal categories of non-interest expenses that changed in the second quarter of 2019 were the following:

Compensation costs decreased by 7.54% compared to the previous quarter and by 9.16% compared to the same period in 2018.

Professional fees were also lower by 24.58% compared to the previous quarter, and by 33.92% compared to the same period in 2018.

Equipment and depreciation expenses increased in the second quarter of 2019 primarily due to licensing of on-line banking software.

Business development expenses also increased in the second quarter of 2019 primarily due to costs related to advertising and rebranding.

Income Taxes

Income tax expense was $120,769 in the second quarter of 2019, equivalent to an effective tax rate of 19.17% compared to tax expense of $114,300, equivalent to an effective tax rate of 14.03% for the same period in 2018.

Asset Quality

Non-accrual loans were $3.05 million or 0.76% of total loans at the end of the second quarter of 2019, compared to $2.48 million or 0.64% at the end of the prior quarter. As of June 30, 2019, there were no troubled debt restructurings (“TDRs”) not on nonaccrual compared to two TDRs not on non-accrual with a balance of $460,805, or 0.12% of total loans, at the end of the prior quarter. On June 30, 2019 there were $148,321 of loans that were 90 days or more past due and not on no-accrual, equivalent to 0.04% of total loans, compared to no loans that were 90 days or more past due and not on non-accrual on March 31, 2019. Additionally, there was no other real estate owned (“OREO”) on the balance sheet on June 30, 2019 or March 31, 2019. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and not on non-accrual, loans that were TDRs but not on non-accrual, and OREO assets) were $3.19 million or 0.65% of total assets at June 30, 2019 compared to $2.94 million or 0.62% of total assets, at the end of the previous quarter.

The Bank recognized a provision for loan and lease losses of $147,500 during the second quarter, compared to no provision in the prior quarter. The Bank’s ALLL was 1.14% of loans receivable at June 30, 2019, compared to 1.16% of loans receivable at December 31, 2018 and 1.09% of loans receivable on June 30, 2018.

Total Assets

Total assets at June 30, 2019 were $489.91 million compared to $477.90 million on March 31, 2019 and $478.81 million on December 31, 2018. Changes in major asset categories during linked quarters were as follows:

Cash balances and deposits with other banks increased by $3.53 million during the quarter.

The available-for-sale securities portfolio decreased by $7.18 million compared to March 31, 2019, as the Bank sold bonds during the quarter for a gain. Proceeds from the sale were deployed into higher yielding loans.

Loans receivable increased by $11.61 million during the quarter.

Loans held-for-sale increased by $3.53 million during the quarter.

Total Liabilities

Total liabilities at June 30, 2019 were $428.66 million, compared to total liabilities of $417.62 million on March 31, 2019 and compared to total liabilities of $419.70 million on December 31, 2018. Total deposits were $398.41 million on June 30, 2019 compared to $395.23 million on March 31, 2019, and compared to total deposits of $400.73 million on December 31, 2018. On a linked quarter basis, interest bearing demand deposits declined by $9.58 million, with the bulk of the decline occurring in money market balances, while time deposits increased by $3.73 million. The decline in high cost interest bearing deposits was partially offset by an increase in non-interest bearing deposits during the quarter. Non-interest bearing demand deposits increased during the quarter by $8.97 million to $81.75 million and comprised 20.52% of total deposits at the end of the quarter, compared to 18.41% of total deposits on March 31, 2019 and 16.72% of total deposits on December 31, 2018. Federal Home Loan Bank advances increased by $7.85 million during the quarter.

Stockholders’ Equity and Capital

Stockholders’ equity at June 30, 2019 was $61.25 million compared to $60.29 million on March 31, 2019 and $59.11 million on December 31, 2018. Additional paid in capital at June 30, 2019 was $57.66 million compared to $57.53 million on March 31, 2019 and compared to $57.42 million on December 31, 2018. Accumulated Other Comprehensive Income (“AOCI”), which generally comprises unrealized gains and losses on available-for-sale securities on the balance sheet, increased by $330,081 on lower unrealized losses during the quarter and has increased by $870,921 since December 31, 2018. Total shares issued and outstanding were 7,122,102 on June 30, 2019 compared to 6,981,602 on December 31, 2018. The book value of the Bank’s common stock at June 30, 2019 was $8.60 compared to $8.47 per share on December 31, 2018.

As of June 30, 2019, all of the Bank’s capital ratios were well above regulatory minimum capital ratios for well capitalized banks. The Bank’s capital ratios on June 30, 2019 and December 31, 2018 were as follows:

June 30, 2019

December 31, 2018

Total Capital Ratio

15.98%

15.85%

Tier 1 Capital Ratio

14.91%

14.73%

Common Equity
Tier 1 Capital Ratio

14.91%

14.73%

Leverage Ratio

12.71%

12.15%

About Freedom Bank

Freedom Bank is a community-oriented bank with locations in Fairfax, Reston, Chantilly and Vienna, Virginia. Freedom Bank also has a mortgage division headquartered in Chantilly. For information about Freedom Bank’s deposit and loan services, visit the Bank’s website at www.freedombankva.com.

Forward Looking Statements

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, the adequacy or inadequacy of our allowance for loan and lease losses, and acquisition or loss of key production personnel. The Bank cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Bank 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.

Contact:

Joseph J. Thomas
President & Chief Executive Officer
703-667-4161: Phone
jthomas@freedombankva.com: Email

THE FREEDOM BANK OF VIRGINIA
CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Audited)

June 30,

March 31,

December 31,

2019

2018

ASSETS

Cash and Due from Banks

$
1,451,117

$
1,796,929

$
1,270,559

Interest Bearing Deposits with Banks

17,686,061

13,804,921

14,376,684

Securities Available-for-Sale

46,997,845

54,177,183

48,204,339

Restricted Stock Investments

3,277,800

3,041,300

3,076,000

Loans Held for Sale

14,094,057

10,562,219

4,415,520

Loans Receivable

389,069,949

377,458,580

394,080,457

Allowance for Loan Losses

(4,435,737
)

(4,509,489
)

(4,572,392
)

Net Loans

384,634,112

372,949,091

389,508,065

Bank Premises and Equipment, net

1,618,940

1,678,539

1,748,935

Other Real Estate Owned

–

Accrued Interest Receivable

1,368,964

1,363,329

1,229,534

Deferred Tax Asset

864,642

1,247,513

Bank-Owned Life Insurance

12,589,855

12,493,532

12,401,317

Other Assets

5,322,137

5,170,809

1,336,521

Total Assets

489,905,630

$
477,902,494

$
478,814,987

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities

Deposits

Demand deposits

Non-interest bearing

$
81,750,368

$
72,778,632

$
67,012,857

Interest bearing

112,197,895

121,777,996

128,403,357

Savings deposits

2,544,341

2,481,822

3,023,239

Time deposits

201,914,936

198,188,774

202,292,311

Total Deposits

398,407,542

395,227,224

400,731,764

Federal Home Loan Bank advances

24,850,000

17,000,000

17,142,857

Other accrued expenses

4,768,419

4,981,062

1,607,492

Accrued interest payable

630,123

408,730

218,537

Total Liabilities

428,656,083

417,617,016

419,700,650

Stockholders’ Equity

Preferred stock, $0.01 par value, 5,000,000 shares authorized;

0 shares issued and outstanding, 2019 and 2018

–

Common stock, $0.01 par value, 25,000,000 shares:

23,000,000 shares voting and 2,000,000 shares non-voting.

Voting Common Stock:

6,449,102, 6,323,602, and 6,308,602 shares issued and outstanding

at June 30, 2019, March 31, 2019 and December 31, 2018, respectively

(includes 125,000, 115,000 and 115,000 unvested shares at June 30, 2019,

March 31, 2019 and December 31, 2018 respectively)

63,236

63,086

Non-Voting Common Stock:

673,000 shares issued and outstanding June 30, 2019

March 31, 2019 and December 31 2018

6,730

Additional paid-in capital

57,655,145

57,530,232

57,416,068

Accumulated other comprehensive loss, net

(253,180
)

(583,261
)

(1,124,101
)

Retained earnings

3,777,616

3,268,541

2,752,554

Total Stockholders’ Equity

61,249,547

60,285,478

59,114,337

Total Liabilities and Stockholders’ Equity

$
489,905,630

$
477,902,494

$
478,814,987

THE FREEDOM BANK OF VIRGINIA
CONSOLIDATED STATEMENTS OF OPERATIONS

For the quarter ended

For the six months ended

June 30,

2019

2018

2019

2018

Interest Income

Interest and fees on loans

$
5,022,245

$
5,268,814

$
10,226,963

$
10,386,582

Interest on investment securities

381,352

449,094

748,369

904,033

Interest on Federal funds sold

94,979

107,204

220,307

249,620

Total Interest Income

5,498,576

5,825,112

11,195,639

11,540,235

Interest Expense

Interest on deposits

1,606,953

1,231,777

3,108,272

2,505,552

Interest on borrowings

120,696

83,513

207,828

128,938

Total Interest Expense

1,727,649

1,315,290

3,316,100

2,634,490

Net Interest Income

3,770,927

4,509,823

7,879,539

8,905,745

Provision for Loan Losses

147,500

–

147,500

–

Net Interest Income after

7,732,039

8,905,745

Provision for Loan Losses

3,623,427

4,509,823

Non-Interest Income

Gain on sale of mortgage loans

1,168,251

1,077,193

1,963,191

1,653,469

Service charges and other income

32,462

73,695

74,893

108,617

Gains on sale of securities

103,034

–

105,722

–

Increase in cash surrender value of bank-

owned life insurance

96,324

13,585

188,539

27,122

Total Non-interest Income

1,400,071

1,164,473

2,332,344

1,789,207

Non-Interest Expenses

Officer and employee compensation

and benefits

2,711,905

2,985,202

5,644,898

5,678,471

Occupancy expense

288,213

277,968

563,989

551,080

Equipment and depreciation expense

277,717

184,298

463,238

325,868

Insurance expense

77,984

200,437

155,968

281,933

Professional fees

243,880

369,089

567,238

1,000,611

Data and item processing

187,073

294,419

439,620

571,776

Business development

124,276

70,108

159,545

140,685

Franchise taxes

98,717

138,310

240,604

269,465

Mortgage fees and settlements

198,771

140,155

330,652

265,636

Other operating expense

185,124

199,813

344,050

405,102

Total Non-interest Expenses

4,393,660

4,859,799

8,909,802

9,490,627

Income before Income Taxes

629,837

814,497

1,154,580

1,204,325

Income Tax Expense

120,769

114,300

129,525

195,900

Net Income

$
509,075

$
700,197

$
1,025,061

$
1,008,425

Earnings per Common Share – Basic

$
0.07

$
0.11

$
0.14

$
0.15

Earnings per Common Share – Diluted

$
0.07

$
0.10

$
0.14

$
0.15

Weighted-Average Common Shares

Outstanding – Basic

7,114,190

6,629,749

7,102,226

6,578,328

Weighted-Average Common Shares

Outstanding – Diluted

7,177,984

6,856,291

7,163,661

6,804,871

THE FREEDOM BANK OF VIRGINIA
CONSOLIDATED STATEMENTS OF OPERATIONS

For the quarter ended

June 30,

March 31,

December 31,

September 30,

June 30,

2019

2018

Interest Income

Interest and fees on loans

$
5,022,252

$
5,204,718

$
5,320,254

$
5,401,108

$
5,268,815

Interest on investment securities

381,352

367,017

337,702

498,506

449,094

Interest on Federal funds sold and Other

94,979

125,328

174,693

60,077

107,204

Total Interest Income

5,498,583

5,697,063

5,832,649

5,959,691

5,825,113

Interest Expense

Interest on deposits

1,606,953

1,501,319

1,457,042

1,389,640

1,231,777

Interest on borrowings

120,696

87,132

89,481

103,953

83,513

Total Interest Expense

1,727,649

1,588,451

1,546,523

1,493,593

1,315,290

Net Interest Income

3,770,934

4,108,612

4,286,126

4,466,098

4,509,823

Provision for Loan Losses

147,500

–

406,000

–

Net Interest Income after

Provision for Loan Losses

3,623,434

4,108,612

3,880,126

4,466,097

4,509,823

Non-Interest Income

Gain on sale of mortgage loans

1,168,251

794,939

668,073

846,653

1,077,193

Service charges and other income

32,462

42,431

43,196

36,079

73,695

Gains on sale of securities

103,034

2,688

–

(1,181,108
)

–

Increase in cash surrender value of bank-

owned life insurance

96,324

92,215

22,396

13,653

13,585

Total Non-interest Income

1,400,071

932,273

733,665

(284,723
)

1,164,473

Non-Interest Expenses

Officer and employee compensation

and benefits

2,711,906

2,932,994

2,824,480

3,151,302

2,985,202

Occupancy expense

288,213

275,776

269,963

277,941

277,968

Equipment and depreciation expense

277,717

185,521

172,048

166,369

184,298

Insurance expense

77,984

78,345

78,251

200,437

Professional fees

243,880

323,358

478,838

628,583

369,089

Data and item processing

187,073

252,547

312,108

365,946

294,419

Business development

124,276

35,269

57,289

47,320

70,108

Franchise taxes

98,717

141,887

141,886

138,310

Mortgage fees and settlements

198,771

131,881

95,353

137,423

140,155

Other operating expense

185,124

158,926

179,851

245,488

199,813

Total Non-interest Expenses

4,393,661

4,516,143

4,610,161

5,240,510

4,859,799

Income before Income Taxes

629,844

524,742

3,631

(1,059,135
)

814,497

Income Tax Expense

120,769

8,756

(11,605
)

(226,718
)

114,300

Net Income

$
509,075

$
515,986

$
15,235

$
(832,417
)

$
700,197

Earnings per Common Share – Basic

$
0.07

$
0.00

$
(0.12
)

$
0.11

Earnings per Common Share – Diluted

$
0.07

$
0.00

$
(0.12
)

$
0.10

Weighted-Average Common Shares

Outstanding – Basic

7,114,190

7,097,635

7,085,636

6,873,123

6,629,749

Weighted-Average Common Shares

Outstanding – Diluted

7,177,984

7,173,656

7,207,759

6,873,123

6,856,291

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)

Three Months Ended

June 30, 2019

March 31, 2019

Average Balance

Income/Expense

Yield

Average Balance

Income/Expense

Yield

Assets

Cash

$
19,212,889

$
94,979

1.98
%

$
20,706,435

$
125,328

2.45
%

Investments (Tax Exempt)

$
4,380,278

$
38,468

$
4,643,552

$
43,118

Investments (Taxable)

$
51,397,468

$
350,962

$
49,309,238

$
332,954

Total Investments

$
55,777,746

$
389,430

2.80
%

$
53,952,790

$
376,072

2.83
%

Loans (Tax Exempt)

$
4,618,618

$
61,329

$
618,161

$
12,184

Loans (Taxable)

$
385,967,635

$
4,973,795

$
388,736,646

$
5,195,092

Total Loans

$
390,586,253

$
5,035,124

5.17
%

$
389,354,807

$
5,207,276

5.42
%

Earning Assets

$
465,576,888

$
5,519,533

4.76
%

$
464,014,032

$
5,708,675

4.99
%

Assets

$
483,716,025

$
482,503,597

Liabilities

Interest Checking

$
7,006,451

$
9,307

0.53
%

$
6,933,095

$
9,165

0.54
%

Money Market

$
108,817,738

$
386,793

1.43
%

$
116,599,595

$
395,239

1.37
%

Savings

$
2,411,698

$
1,202

0.20
%

$
2,892,660

$
1,411

0.20
%

Time Deposits

$
201,531,076

$
1,209,651

2.38
%

$
199,846,160

$
1,095,504

2.22
%

Interest Bearing Deposits

$
319,766,963

$
1,606,953

2.02
%

$
326,271,510

$
1,501,319

1.87
%

FHLB Borrowings

$
21,830,769

$
120,696

2.22
%

$
17,131,746

$
87,131

2.06
%

Interest Bearing Liabilities

$
341,597,732

$
1,727,649

2.03
%

$
343,403,256

$
1,588,450

1.88
%

Non Interest Bearing Deposits

$
76,077,226

$
74,141,543

Cost of Funds

1.66
%

1.54
%

Net Interest Margin1

$
3,791,884

3.27
%

$
4,120,225

3.60
%

Shareholders Equity

$
60,715,800

$
59,571,345

1 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank’s net yield on its earning assets

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)

Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018

Average Balance

Income/Expense

Yield

Average Balance

Income/Expense

Yield

Average Balance

Income/Expense

Yield

Average Balance

Income/Expense

Yield

Assets

Cash

$
19,212,889

$
94,979

1.98
%

$
25,948,448

$
107,187

1.66
%

$
19,955,536

$
220,307

2.23
%

$
32,684,743

$
249,066

1.54
%

Investments (Tax Exempt)

$
4,380,278

$
38,468

$
29,528,418

$
233,585

$
4,511,188

$
81,586

$
29,699,338

$
468,122

Investments (Taxable)

$
51,397,468

$
350,962

$
46,917,665

$
264,561

$
50,359,121

$
683,916

$
47,370,267

$
534,217

Total Investments

$
55,777,746

$
389,430

2.80
%

$
76,446,083

$
498,146

2.61
%

$
54,870,309

$
765,502

2.81
%

$
77,069,605

$
1,002,339

2.62
%

Loans (Tax Exempt)

$
4,618,618

$
61,329

$
0

$
2,629,441

$
73,514

$
0

Loans (Taxable)

$
385,967,635

$
4,973,795

$
406,481,811

$
5,268,814

$
387,344,491

$
10,168,887

$
405,622,871

$
10,386,582

Total Loans

$
390,586,253

$
5,035,124

5.17
%

$
406,481,811

$
5,268,814

5.20
%

$
389,973,932

$
10,242,401

5.30
%

$
405,622,871

$
10,386,582

5.16
%

Earning Assets

$
465,576,888

$
5,519,533

4.76
%

$
508,876,342

$
5,874,147

4.63
%

$
464,799,777

$
11,228,210

4.87
%

$
515,377,219

$
11,637,987

4.55
%

Assets

$
483,716,025

$
512,688,968

$
483,113,160

$
519,362,390

Liabilities

Interest Checking

$
7,006,451

$
9,307

0.53
%

$
6,440,700

$
8,518

0.53
%

$
6,970,274

$
18,472

0.53
%

$
6,245,572

$
15,552

0.50
%

Money Market

$
108,817,738

$
386,793

1.43
%

$
170,661,593

$
510,601

1.20
%

$
112,815,492

$
782,032

1.40
%

$
174,442,431

$
1,037,861

1.20
%

Savings

$
2,411,698

$
1,202

0.20
%

$
2,232,634

$
1,112

0.20
%

$
2,650,850

$
2,613

0.20
%

$
2,191,958

$
2,263

0.21
%

Time Deposits

$
201,531,076

$
1,209,651

2.38
%

$
188,111,519

$
711,546

1.52
%

$
200,562,733

$
2,305,153

2.32
%

$
196,177,771

$
1,449,876

1.49
%

Interest Bearing Deposits

$
319,766,963

$
1,606,953

$
367,446,446

$
1,231,777

$
322,999,349

$
3,108,270

0.0194058

$
379,057,732

$
2,505,552

0.0133295

FHLB Borrowings

$
21,830,769

$
120,696

2.22
%

$
13,689,029

$
83,513

2.45
%

$
19,494,238

$
207,827

2.15
%

$
13,689,029

$
128,938

1.90
%

Interest Bearing Liabilities

$
341,597,732

$
1,727,649

2.03
%

$
381,135,475

$
1,315,290

1.38
%

$
342,493,587

$
3,316,097

1.95
%

$
392,746,761

$
2,634,490

1.35
%

Non Interest Bearing Deposits

$
76,077,226

$
71,555,526

$
75,114,731

$
69,816,911

Cost of Funds

1.66
%

1.17
%

1.60
%

1.15
%

Net Interest Margin1

$
3,791,884

3.27
%

$
4,558,857

3.59
%

$
7,912,113

3.43
%

$
9,003,497

3.52
%

Shareholders Equity

$
60,715,800

$
55,399,577

$
60,146,734

$
55,592,217

ROAA

0.42
%

0.55
%

0.43
%

0.39
%

ROAE

3.36
%

5.07
%

3.44
%

3.66
%

1 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank’s net yield on its earning assets

Selected Financial Data by Quarter Ended:
(Unaudited)

Balance Sheet Ratios

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

Loans to Deposits

101.19
%

98.18
%

99.44
%

93.64
%

94.62
%

Income Statement Ratios

Return on Average Assets (ROAA)

0.42
%

0.43
%

0.01
%

-0.64
%

0.55
%

Return on Average Equity (ROAE)

3.36
%

3.51
%

0.10
%

-5.74
%

5.07
%

Efficiency Ratio

84.97
%

89.59
%

91.84
%

125.33
%

85.65
%

Net Interest Margin1

3.27
%

3.60
%

3.49
%

3.54
%

3.59
%

Yield on Average Earning Assets

4.76
%

4.99
%

4.74
%

4.71
%

4.63
%

Yield on Securities

2.80
%

2.83
%

2.67
%

2.74
%

2.61
%

Yield on Loans

5.17
%

5.42
%

5.22
%

5.20
%

Cost of Funds

1.66
%

1.54
%

1.41
%

1.31
%

1.17
%

Per Share Data

Tangible Book Value

$
8.60

$
8.62

$
8.47

$
8.36

$
8.44

Share Price Data

Closing Price

$
9.98

$
10.00

$
10.23

$
12.12

$
12.10

Book Value Multiple

116
%

121
%

145
%

143
%

Common Stock Data

Outstanding Shares at End of Period

7,122,102

6,996,602

6,981,602

6,950,165

6,719,644

Weighted Average shares outstanding, basic

7,114,190

7,097,635

7,085,636

6,873,123

6,629,749

Weighted Average shares outstanding, diluted

7,177,984

7,173,656

7,207,759

6,873,123

6,856,291

Capital Ratios

Tier 1 Leverage ratio

12.71
%

12.61
%

12.15
%

11.66
%

11.37
%

Common Equity Tier 1 ratio

14.91
%

15.28
%

14.73
%

14.46
%

14.03
%

Tier 1 Risk Based Capital ratio

14.91
%

15.28
%

14.73
%

14.46
%

14.03
%

Total Risk Based Capital ratio

15.98
%

16.42
%

15.85
%

15.50
%

15.09
%

Credit Quality

Net Charge-offs to Average Loans

0.06
%

0.02
%

0.03
%

0.01
%

0.04
%

Total Non-performing Loans to Total Loans

0.79
%

0.76
%

0.83
%

1.45
%

0.08
%

Total Non-performing Assets to Total Assets

0.65
%

0.62
%

0.69
%

1.38
%

0.29
%

Nonaccrual Loans to Total Loans

0.76
%

0.64
%

0.71
%

1.07
%

0.00
%

Allowance for Loan and Lease Losses to loans receivable

1.14
%

1.19
%

1.16
%

1.06
%

1.09
%

1 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank’s net yield on its earning assets

SOURCE: Freedom Bank of VA

ReleaseID: 553842

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