FAIRFAX, Va. (Jan. 28, 2022) Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced net income of $2,743,088, or $0.37 per diluted share, for the three months ended December 31, 2021. This compares to net income of $2,890,281 or $0.39 per diluted share, for the linked quarter and net income of $2,413,775 or $0.33 per diluted share for the three months ending December 31, 2020. Net income for the full year 2021 was $10,727,961 or $1.44 per diluted share compared to net income of $7,364,477 or $1.01 per diluted share for the full year 2020.
Joseph J. Thomas, President and CEO, commented, "We accomplished many milestones as a company in 2021, including celebrating our 20th anniversary, forming a new holding company, issuing $20 million in subordinated debt, and reporting record full-year earnings per share of $1.44, a 45.67% increase compared to full year 2020 results. Our talented team of bankers was able to deliver organic loan growth (excluding PPP loans) of 26.89% while also reducing cost of funds to 0.40% for the full year 2021 compared to 0.87% in 2020. With solid expense control driving efficiency ratio down to 62.62%, the company achieved ROAA and ROAE for the full year 2021 of 1.27% and 13.60%, respectively, compared to 1.12% and 10.84% for the full year 2020. On the heels of these results, the Company's board has authorized a stock repurchase of up to 250,000 shares as a strategic means of deploying our new capital. We remain confident in our future growth and earning potential, and I am excited to enter 2022 focused on serving our clients with abundant talent and leading technology."
The Board of Directors has approved a repurchase program of up to 250,000 shares of the Company's common stock, which represented 3.79% of the 6,589,757 million voting shares that were outstanding as of December 31, 2021. The funding for this stock repurchase will come from cash currently at the holding company sourced from the $20 million subordinated debt issue in the fourth quarter of 2021 and, as necessary, an upstream dividend from the Bank. Shares will be purchased in accordance with the SEC's Rule 10b-18.
Pre-tax, pre-provision net income, which is a non-GAAP measure decreased by 5.76% to $3,658,435 for the fourth quarter of 2021 compared to pre-tax, pre-provision net income of $3,882,322 in the linked quarter, primarily due to a decrease in non-interest income in the fourth quarter and increased by 9.99% compared to $3,325,866 for the fourth quarter of 2020.
Pre-tax, pre-provision net income is a non-GAAP financial measure that the Bank views as an important metric to assess its performance. The following table provides a reconciliation of this measure to net income, the most directly comparable financial measure in accordance with GAAP.
Reconciliation of Pre-Tax, Pre-Provision Net Income |
||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
For the three |
For the three |
For the three |
||||||
months ended |
months ended |
months ended |
||||||
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
||||||
After-tax Income |
$ |
2,743,088 |
$ |
2,890,281 |
$ |
2,413,775 |
||
Income Taxes |
560,347 |
763,041 |
674,091 |
|||||
Provision for Loan Losses |
355,000 |
229,000 |
238,000 |
|||||
Pre-tax, Pre-provision Net Income |
$ |
3,658,435 |
$ |
3,882,322 |
$ |
3,325,866 |
||
In the second quarter of 2020, the Company processed and funded 510 PPP loans (referred to as 2020 PPP loans), with balances of $106.37 million. The interest rate on these 2020 PPP loans was 1% and the term varied from two to five years. The SBA also paid processing fees which were deferred over the term of the loans. The loans were fully guaranteed and could be forgiven in whole or in part by the SBA.
In December of 2020, Congress approved a renewal of the PPP loan program with different rules and requirements for small businesses to receive loans, referred to as round two PPP loans. These 2021 PPP loans were also fully guaranteed and may be forgiven in whole or in part by the SBA. The interest rate on the loans was 1% and the term was five years. As with 2020 PPP loans, the SBA paid processing fees which are being deferred over the term of the loans. The Company originated $53.89 million of round two PPP loans during 2021.
Beginning in January of 2021, the Company began to process loan forgiveness applications from borrowers of 2020 PPP loans and round two PPP loans. As of December 31, 2021, the SBA had forgiven 638 of these PPP loans with balances of $102.75 million, and the Company had recognized income from acceleration of processing fees of $2.51 million.
The Company recorded net interest income of $8.02 million for the fourth quarter of 2021, an increase of 14.71% compared to the linked quarter, and 45.43% higher than the same period in 2020. The net interest margin in the fourth quarter of 2021 was 3.74%, higher by 31 basis points compared to the linked quarter and higher by 68 basis points compared to the same period in 2020. Income from PPP loan forgiveness during the fourth quarter was $755,510(from $19.75 million of PPP loans forgiven by the SBA), compared to PPP loan forgiveness income of $667,746 (from $27.92 million of PPP loans forgiven by the SBA) during the third quarter of 2021. Excluding the PPP loans, the net interest margin in the fourth quarter would have been 3.49%.
The following factors contributed to the changes in net interest margin during the fourth quarter of 2021 compared to the linked quarter:
Non-interest income was $1.76 million for the fourth quarter, lower by 32.39% compared to the linked quarter and lower by 62.67% compared to the same period in 2020. The lower non-interest income across linked quarters was primarily due to lower mortgage and SBA gain-on-sale revenue, while the decline in non-interest income compared to the calendar quarter was largely due to lower mortgage gain-on-sale and fee revenue, stemming from a decline in mortgage activity.
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 1.92% compared to the linked quarter, primarily due to higher net interest income, and lower by 4.42% compared to the same period in 2020.
Non-interest expenses in the fourth quarter of 2021 were higher by 7.14% compared to the linked quarter and decreased by 11.35% compared to the same period in 2020. The increase in non-interest expenses in the fourth quarter compared to the prior quarter was largely due to costs related to the formation of the holding company, which was completed in the fourth quarter of 2021.
The Efficiency Ratio was 62.62% for the quarter ended December 31, 2021, compared to 59.57% for the prior quarter and 67.52% for the same period in 2020.
Non-accrual loans increased to $8,890,960 or 1.48% of loans held-for-investment as of December 31, 2021, compared to $879,078 or 0.15% of loans held-for-investment at the end of the linked quarter. The increase in non-accrual loans in the fourth quarter was entirely due to a single relationship on which the bank is adequately secured and as a result we did not recognize any impairment. We are actively pursuing a workout on this relationship. There were no troubled debt restructurings ("TDRs") as of December 31, 2021. On December 31, 2021, there were no loans that were 90 days or more past due and accruing. There was no Other Real Estate Owned ("OREO") on the balance sheet as of December 31, 2021. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, loans that are TDRs but not on non-accrual, and OREO assets) were $879,089 or 0.10% of total assets at September 30, 2021 compared to $8,890,960 or 1.01% of assets, at the end of the linked quarter.
In 2020, in accordance with the spirit and provisions of the CARES Act, the Company allowed borrowers who had been impacted by the COVID-19 pandemic to defer loan payments for six months. All of those borrowers had resumed loan payments and there were no loans on payment deferrals as of December 31, 2021.
Following an assessment of the collectability of the loans held-for-investment at the end of the fourth quarter, it was determined that a $355,000 provision for loan losses was necessary to account for loan growth and changes to environmental factors. The Company booked a provision of $229,000 in the third quarter of 2021. The Company's ALLL ratio was 1.08% of loans held-for-investment (or 1.14% of loans held-for investment excluding PPP loans) as of December 31, 2021 compared to an ALLL ratio of 1.05% at September 30, 2021 (or 1.17% of loans held-for-investment excluding PPP loans).
Total assets at December 31, 2021 were $876.85 million compared to $846.60 million on September 30, 2021. Changes in major asset categories during linked quarters were as follows:
Total liabilities at December 31, 2021 were $792.69 million compared to total liabilities of $765.15 million on September 30, 2021. Total deposits were $701.69 million compared to total deposits of $675.50 million on September 30, 2021. Non-interest bearing demand deposits increased by $5.78 million during the quarter, and comprised 31.66% of total deposits at the end of the quarter, compared to 35.19% of total deposits on December 31, 2020. Other interest bearing demand deposits increased by $40.06 million, while time deposits declined by $20.70 million during the quarter. Federal Home Loan Bank advances increased by $10.00 million during the quarter, while PPP Liquidity Facility term advances decreased by $25.80 million, in line with PPP loan forgiveness. The Company issued subordinated debt during the fourth quarter of 2021. The subordinated debt balance, net of issuance costs, was $19.62 million on December 31, 2021.
Stockholders' equity at December 31, 2021 was $84.16 million compared to $81.45 million on September 30, 2021. Additional paid-in capital was $59.88 million on December 31, 2021 compared to $59.56 million on September 30, 2021. Accumulated Other Comprehensive Income ("AOCI"), which generally comprises unrealized gains and losses on available-for-sale securities and derivative positions, decreased by $361,021 on net unrealized losses during the fourth quarter of 2021. Retained earnings were $23.55 million on December 31, 2021 compared to $20.81 million at the end of the prior quarter. Total shares issued and outstanding were 7,262,757 on December 31, 2021 compared to 7,312,565 shares on September 30, 2021. The tangible book value of the Company's common stock at December 31, 2021 was $11.59 per share compared to $11.14 per share on September 30, 2021 and $10.09 per share on December 31, 2020.
As of December 31, 2021 of the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios on December 31, 2021 and September 30, 2021 were as follows:
December 31, 2021 |
September 30, 2021 |
|
Total Capital Ratio |
15.42% |
13.68% |
Tier 1 Capital Ratio |
14.49% |
12.73% |
Common Equity |
||
Tier 1 Capital Ratio |
14.49% |
12.73% |
Leverage Ratio |
11.85% |
10.47% |
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; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth, including as a result of COVID-19; 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; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company 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 Company 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. Some of the financial tables in this document reflect classifications to accounts to improve consistency in financial reporting.
FREEDOM FINANCIAL HOLDINGS |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) December 31, 2021 |
(Unaudited) September 30, 2021 |
(Audited) December 31, 2020 |
||||
ASSETS |
||||||
Cash and Due from Banks |
$ |
2,536,450 |
$ |
2,430,918 |
$ |
1,792,660 |
Interest Bearing Deposits with Banks |
31,696,892 |
61,753,387 |
25,543,295 |
|||
Securities Available-for-Sale |
171,532,394 |
137,253,597 |
97,188,125 |
|||
Securities Held-to-Maturity |
18,012,874 |
18,497,540 |
16,132,367 |
|||
Restricted Stock Investments |
3,321,250 |
2,951,550 |
3,607,800 |
|||
Loans Held for Sale |
13,297,125 |
22,191,469 |
45,047,711 |
|||
PPP Loans Held for Investment |
32,355,450 |
57,809,131 |
101,215,376 |
|||
Other Loans Held for Investment |
570,013,870 |
512,670,067 |
449,211,475 |
|||
Allowance for Loan Losses |
(6,486,120) |
(6,011,021) |
(5,454,925) |
|||
Net Loans |
595,883,200 |
564,468,177 |
544,971,926 |
|||
Bank Premises and Equipment, net |
1,139,204 |
1,182,250 |
1,298,409 |
|||
Accrued Interest Receivable |
2,466,712 |
2,304,786 |
2,868,868 |
|||
Deferred Tax Asset |
1,804,238 |
1,223,546 |
1,154,078 |
|||
Bank-Owned Life Insurance |
24,579,879 |
20,428,825 |
17,035,214 |
|||
Right of Use Asset, net |
2,704,888 |
2,943,456 |
3,258,817 |
|||
Other Assets |
7,870,617 |
8,972,651 |
7,145,687 |
|||
Total Assets |
$ |
876,845,723 |
$ |
846,602,152 |
767,044,957 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Deposits |
||||||
Demand Deposits |
||||||
Non-interest Bearing |
222,167,095 |
216,387,250 |
$ |
192,987,984 |
||
Interest Bearing |
300,361,978 |
260,304,062 |
176,424,255 |
|||
Savings Deposits |
5,841,800 |
4,780,274 |
2,962,303 |
|||
Time Deposits |
173,322,527 |
194,024,810 |
176,114,292 |
|||
Total Deposits |
701,693,400 |
675,496,396 |
548,488,834 |
|||
Federal Home Loan Bank Advances |
29,035,714 |
19,035,714 |
30,071,429 |
|||
PPP Liquidity Facility Advances |
32,055,915 |
57,857,132 |
101,951,020 |
|||
Subordinated Debt (Net of Issuance Costs) |
19,616,869 |
- |
- |
|||
Accrued Interest Payable |
294,237 |
268,170 |
480,816 |
|||
Lease Liability |
2,823,885 |
3,060,286 |
3,347,075 |
|||
Other Liabilities |
7,166,978 |
9,429,531 |
9,247,507 |
|||
Total Liabilities |
$ |
792,686,998 |
765,147,229 |
693,586,681 |
||
Stockholders' Equity |
||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; |
||||||
0 Shares Issued and Outstanding, December 31, 2021, September 30, 2021, |
||||||
and December 31, 2020 |
- |
|||||
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: |
||||||
6,589,757, 6,639,565, and 6,610,647 Shares Issued and Outstanding |
||||||
at December 31, 2021, September 30, 2021, and December 31, 2020 respectively |
||||||
(Includes 106,171, 102,455, and 100,002 Unvested Shares at December 31, 2021, |
||||||
September 30, 2021 and December 31, 2020, respectively) |
65,898 |
65,371 |
65,106 |
|||
Non-Voting Common Stock: |
||||||
673,000 Shares Issued and Outstanding December 31, 2021, September 30, 2021, |
||||||
and December 31, 2020 |
6,730 |
6,730 |
6,730 |
|||
Additional Paid-in Capital |
59,884,615 |
59,563,407 |
59,223,538 |
|||
Accumulated Other Comprehensive Income, Net |
651,272 |
1,012,293 |
1,340,654 |
|||
Retained Earnings |
23,550,210 |
20,807,122 |
12,822,248 |
|||
Total Stockholders' Equity |
84,158,725 |
81,454,923 |
73,458,276 |
|||
Total Liabilities and Stockholders' Equity |
$ |
876,845,723 |
$ |
846,602,152 |
767,044,957 |
|
FREEDOM FINANCIAL HOLDINGS |
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
|||||||||
For the three |
For the three |
For the twelve |
For the twelve |
|||||||||
months ended |
months ended |
months ended |
months ended |
|||||||||
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
|||||||||
Interest Income |
||||||||||||
Interest and Fees on Loans |
$ |
7,556,406 |
$ |
5,931,405 |
$ |
28,335,210 |
$ |
22,133,659 |
||||
Interest on Investment Securities |
1,092,427 |
630,449 |
3,135,735 |
2,288,660 |
||||||||
Interest on Deposits with Other Banks |
35,908 |
10,083 |
86,903 |
109,557 |
||||||||
Total Interest Income |
8,684,741 |
6,571,937 |
31,557,848 |
24,531,876 |
||||||||
Interest Expense |
||||||||||||
Interest on Deposits |
470,791 |
827,779 |
2,275,780 |
4,238,596 |
||||||||
Interest on Borrowings |
189,834 |
226,724 |
766,060 |
824,708 |
||||||||
Total Interest Expense |
660,625 |
1,054,503 |
3,041,840 |
5,063,304 |
||||||||
Net Interest Income |
8,024,116 |
5,517,433 |
28,516,009 |
19,468,571 |
||||||||
Provision for Loan Losses |
(355,000) |
(238,000) |
(839,000) |
(1,492,000) |
||||||||
Net Interest Income After |
||||||||||||
Provision for Loan Losses |
7,669,116 |
5,279,433 |
27,677,009 |
17,976,571 |
||||||||
Non-Interest Income |
||||||||||||
Mortgage Loan Gain-on-Sale and Fee Revenue |
1,456,195 |
4,283,961 |
8,286,068 |
13,949,984 |
||||||||
SBA Gain-on-Sale Revenue |
- |
- |
437,825 |
- |
||||||||
Service Charges and Other Income |
95,335 |
30,535 |
254,911 |
118,322 |
||||||||
Gain on Sale of Securities |
6,315 |
3,921 |
7,432 |
46,703 |
||||||||
Servicing Income |
53,479 |
- |
192,413 |
- |
||||||||
Swap Fee Income |
- |
270,450 |
- |
657,712 |
||||||||
Increase in Cash Surrender Value of Bank- |
||||||||||||
owned Life Insurance |
151,054 |
132,555 |
544,665 |
639,213 |
||||||||
Total Non-interest Income |
1,762,378 |
4,721,422 |
9,723,314 |
15,411,934 |
||||||||
Non-Interest Expenses |
||||||||||||
Officer and Employee Compensation |
||||||||||||
and Benefits |
4,055,344 |
4,479,310 |
16,341,245 |
16,233,421 |
||||||||
Occupancy Expense |
317,038 |
294,601 |
1,232,056 |
1,194,320 |
||||||||
Equipment and Depreciation Expense |
170,335 |
227,758 |
662,050 |
735,374 |
||||||||
Insurance Expense |
74,357 |
49,008 |
267,583 |
196,442 |
||||||||
Professional Fees |
470,786 |
417,497 |
1,365,057 |
1,298,943 |
||||||||
Data and Item Processing |
299,120 |
322,373 |
1,181,347 |
1,012,601 |
||||||||
Advertising |
80,569 |
83,559 |
329,059 |
278,602 |
||||||||
Franchise Taxes and State Assessment Fees |
200,084 |
185,379 |
778,069 |
725,466 |
||||||||
Mortgage Fees and Settlements |
172,967 |
675,218 |
1,141,200 |
1,952,049 |
||||||||
Other Operating Expense |
287,459 |
178,286 |
847,150 |
678,284 |
||||||||
Total Non-interest Expenses |
6,128,059 |
6,912,989 |
24,144,816 |
24,305,502 |
||||||||
Income Before Income Taxes |
3,303,435 |
3,087,867 |
13,255,507 |
9,083,004 |
||||||||
Income Tax Expense |
560,347 |
674,091 |
2,527,546 |
1,718,526 |
||||||||
Net Income |
$ |
2,743,088 |
$ |
2,413,776 |
$ |
10,727,961 |
$ |
7,364,478 |
||||
Earnings per Common Share - Basic |
$ |
0.37 |
$ |
0.33 |
$ |
1.46 |
$ |
1.02 |
||||
Earnings per Common Share - Diluted |
$ |
0.37 |
$ |
0.33 |
$ |
1.44 |
$ |
1.01 |
||||
Weighted-Average Common Shares |
||||||||||||
Outstanding - Basic |
7,336,016 |
7,252,552 |
7,352,237 |
7,247,895 |
||||||||
Weighted-Average Common Shares |
||||||||||||
Outstanding - Diluted |
7,438,268 |
7,312,247 |
7,449,683 |
7,309,011 |
||||||||
FREEDOM FINANCIAL HOLDINGS |
||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||
For the three |
For the three |
For the three |
For the three |
For the three |
||||||||||
months ended |
months ended |
months ended |
months ended |
months ended |
||||||||||
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
||||||||||
Interest Income |
||||||||||||||
Interest and Fees on Loans |
$ |
7,556,406 |
$ |
6,914,453 |
$ |
6,951,964 |
$ |
6,912,386 |
$ |
5,931,405 |
||||
Interest on Investment Securities |
1,092,427 |
750,570 |
655,996 |
636,742 |
630,449 |
|||||||||
Interest on Deposits with Other Banks |
35,908 |
26,994 |
15,170 |
8,831 |
10,083 |
|||||||||
Total Interest Income |
8,684,741 |
7,692,017 |
7,623,130 |
7,557,959 |
6,571,937 |
|||||||||
Interest Expense |
||||||||||||||
Interest on Deposits |
470,791 |
546,168 |
582,997 |
675,824 |
827,780 |
|||||||||
Interest on Borrowings |
189,834 |
150,599 |
212,703 |
212,923 |
226,724 |
|||||||||
Total Interest Expense |
660,625 |
696,767 |
795,700 |
888,747 |
1,054,504 |
|||||||||
Net Interest Income |
8,024,116 |
6,995,249 |
6,827,430 |
6,669,212 |
5,517,433 |
|||||||||
Provision for Loan Losses |
(355,000) |
(229,000) |
(191,000) |
(64,000) |
(238,000) |
|||||||||
Net Interest Income after |
||||||||||||||
Provision for Loan Losses |
7,669,116 |
6,766,249 |
6,636,430 |
6,605,212 |
5,279,433 |
|||||||||
Non-Interest Income |
||||||||||||||
Mortgage Loan Gain-on-Sale and Fee Revenue |
1,456,195 |
1,995,535 |
2,012,153 |
2,822,186 |
4,283,961 |
|||||||||
SBA Gain-on-Sale Revenue |
- |
371,172 |
66,652 |
|||||||||||
Service Charges and Other Income |
95,335 |
67,374 |
43,501 |
48,702 |
30,535 |
|||||||||
Gains on Sale of Securities |
6,315 |
(13,493) |
1,726 |
12,885 |
3,921 |
|||||||||
Servicing Income |
53,479 |
44,443 |
42,847 |
51,643 |
- |
|||||||||
Swap Fee Income |
- |
- |
- |
- |
270,450 |
|||||||||
Increase in Cash Surrender Value of Bank- |
||||||||||||||
owned Life Insurance |
151,054 |
141,608 |
126,117 |
125,886 |
132,555 |
|||||||||
Total Non-interest Income |
1,762,378 |
2,606,639 |
2,292,996 |
3,061,302 |
4,721,422 |
|||||||||
Revenue |
$ |
9,786,494 |
$ |
9,601,889 |
$ |
9,120,426 |
$ |
9,730,514 |
$ |
10,238,855 |
||||
Non-Interest Expenses |
||||||||||||||
Officer and Employee Compensation |
||||||||||||||
and Benefits |
4,055,344 |
3,862,969 |
3,760,697 |
4,662,235 |
4,479,310 |
|||||||||
Occupancy Expense |
317,038 |
318,109 |
306,521 |
290,389 |
294,600 |
|||||||||
Equipment and Depreciation Expense |
170,335 |
176,379 |
159,420 |
155,916 |
227,758 |
|||||||||
Insurance Expense |
74,357 |
70,814 |
65,356 |
57,056 |
49,008 |
|||||||||
Professional Fees |
470,786 |
243,678 |
359,159 |
291,434 |
417,497 |
|||||||||
Data and Item Processing |
299,120 |
303,444 |
311,000 |
267,783 |
322,373 |
|||||||||
Advertising |
80,569 |
92,806 |
82,605 |
73,078 |
83,559 |
|||||||||
Franchise Taxes and State Assessment Fees |
200,084 |
200,048 |
192,508 |
185,429 |
185,379 |
|||||||||
Mortgage Fees and Settlements |
172,967 |
230,582 |
274,231 |
463,419 |
675,218 |
|||||||||
Other Operating Expense |
287,459 |
220,739 |
177,593 |
161,361 |
178,287 |
|||||||||
Total Non-interest Expenses |
6,128,059 |
5,719,568 |
5,689,090 |
6,608,100 |
6,912,989 |
|||||||||
Income before Income Taxes |
3,303,435 |
3,653,322 |
3,240,336 |
3,058,414 |
3,087,866 |
|||||||||
Income Tax Expense |
560,347 |
763,041 |
613,955 |
590,203 |
674,091 |
|||||||||
Net Income |
$ |
2,743,088 |
$ |
2,890,281 |
$ |
2,626,381 |
$ |
2,468,211 |
$ |
2,413,775 |
||||
Earnings per Common Share - Basic |
$ |
0.37 |
$ |
0.39 |
$ |
0.36 |
$ |
0.34 |
$ |
0.33 |
||||
Earnings per Common Share - Diluted |
$ |
0.37 |
$ |
0.39 |
$ |
0.36 |
$ |
0.34 |
$ |
0.33 |
||||
Weighted-Average Common Shares |
||||||||||||||
Outstanding - Basic |
7,336,016 |
7,341,635 |
7,306,710 |
7,295,190 |
7,252,552 |
|||||||||
Weighted-Average Common Shares |
||||||||||||||
Outstanding - Diluted |
7,438,268 |
7,395,062 |
7,354,389 |
7,334,463 |
7,312,247 |
|||||||||
Average Balances, Income and Expenses, Yields and Rates |
|||||||||||||||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
Three Months Ended |
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||||||||||||||
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||||||||||||||||
Average Balance |
Income/ Expense |
Yield |
Average Balance |
Income/ Expense |
Yield |
Average Balance |
Income/ Expense |
Yield |
Average Balance |
Income/ Expense |
Yield |
Average Balance |
Income/ Expense |
Yield |
|||||||||||||||||||||||||
Assets |
|||||||||||||||||||||||||||||||||||||||
Cash |
$ |
91,458,843 |
$ |
35,908 |
0.16% |
$ |
71,114,495 |
$ |
26,994 |
0.15% |
$ |
64,848,200 |
$ |
15,170 |
0.09% |
$ |
42,563,835 |
$ |
8,831 |
0.08% |
$ |
38,217,380 |
$ |
10,083 |
0.10% |
||||||||||||||
Investments (Tax Exempt) |
23,460,432 |
190,195 |
27,138,446 |
177,809 |
23,292,663 |
223,691 |
24,057,819 |
152,583 |
23,815,369 |
151,564 |
|||||||||||||||||||||||||||||
Investments (Taxable) |
153,582,906 |
942,173 |
113,180,210 |
610,101 |
103,971,494 |
479,280 |
91,675,593 |
516,202 |
90,609,147 |
510,714 |
|||||||||||||||||||||||||||||
Total Investments |
177,043,338 |
1,132,368 |
2.54% |
140,318,656 |
787,910 |
2.23% |
127,264,157 |
702,971 |
2.22% |
115,733,412 |
668,785 |
2.34% |
114,424,516 |
662,278 |
2.30% |
||||||||||||||||||||||||
Total Loans |
586,725,477 |
7,556,406 |
5.11% |
602,948,952 |
$6,914,454 |
4.55% |
622,826,541 |
$ |
6,951,964 |
4.48% |
607,880,043 |
$ |
6,912,386 |
4.61% |
569,936,960 |
5,931,405 |
4.14% |
||||||||||||||||||||||
Earning Assets |
855,227,658 |
8,724,682 |
4.05% |
814,382,103 |
7,729,358 |
3.77% |
814,938,898 |
7,670,105 |
3.78% |
766,177,290 |
7,590,002 |
4.02% |
722,578,856 |
6,603,766 |
3.64% |
||||||||||||||||||||||||
Assets |
$ |
891,226,178 |
$ |
847,472,317 |
$ |
846,402,419 |
$ |
794,829,492 |
$ |
747,427,986 |
|||||||||||||||||||||||||||||
Liabilities |
|||||||||||||||||||||||||||||||||||||||
Interest Checking |
$ |
88,172,651 |
38,893 |
0.18% |
$ |
36,659,322 |
12,240 |
0.13% |
$ |
34,272,772 |
10,907 |
0.13% |
$ |
32,270,173 |
15,629 |
0.20% |
$ |
39,206,072 |
15,165 |
0.15% |
|||||||||||||||||||
Money Market |
202,560,648 |
85,450 |
0.17% |
189,055,851 |
80,347 |
0.17% |
164,337,737 |
63,989 |
0.16% |
148,969,677 |
62,497 |
0.17% |
138,196,830 |
74,468 |
0.21% |
||||||||||||||||||||||||
Savings |
5,336,531 |
1,431 |
0.11% |
4,147,591 |
1,170 |
0.11% |
4,195,416 |
1,078 |
0.10% |
3,301,845 |
814 |
0.10% |
2,836,001 |
717 |
0.10% |
||||||||||||||||||||||||
Time Deposits |
187,240,613 |
345,016 |
0.73% |
197,133,663 |
452,411 |
0.91% |
197,180,571 |
507,023 |
1.03% |
172,994,520 |
596,885 |
1.40% |
175,514,471 |
737,430 |
1.67% |
||||||||||||||||||||||||
Interest Bearing Deposits |
483,310,443 |
470,790 |
0.38% |
426,996,427 |
546,168 |
0.51% |
399,986,496 |
582,997 |
0.58% |
357,536,215 |
675,825 |
0.77% |
355,753,374 |
827,780 |
0.93% |
||||||||||||||||||||||||
Borrowings |
$ |
81,399,848 |
189,834 |
0.93% |
$ |
101,033,443 |
150,599 |
0.59% |
$ |
138,398,143 |
212,703 |
0.62% |
$ |
134,120,845 |
212,923 |
0.64% |
$ |
135,328,997 |
226,724 |
0.67% |
|||||||||||||||||||
Interest Bearing Liabilities |
564,710,291 |
660,624 |
0.46% |
528,029,870 |
696,767 |
0.52% |
538,384,639 |
795,700 |
0.59% |
491,657,060 |
888,748 |
0.73% |
491,082,371 |
1,054,504 |
0.85% |
||||||||||||||||||||||||
Non Interest Bearing Deposits |
$ |
231,181,073 |
$ |
226,514,808 |
$ |
217,927,934 |
$ |
215,148,589 |
$ |
177,583,960 |
|||||||||||||||||||||||||||||
Cost of Funds |
0.33% |
0.37% |
0.42% |
0.51% |
0.63% |
||||||||||||||||||||||||||||||||||
Net Interest Margin1 |
$ |
8,064,057 |
3.74% |
$ |
7,032,590 |
3.43% |
$ |
6,874,405 |
3.38% |
$ |
6,701,254 |
3.55% |
$ |
5,549,262 |
3.06% |
||||||||||||||||||||||||
Shareholders Equity |
$ |
82,994,140 |
$ |
80,866,605 |
$ |
77,178,196 |
$ |
74,480,607 |
$ |
71,511,341 |
|||||||||||||||||||||||||||||
1Net 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 |
Three Months Ended |
Twelve Months Ended |
Twelve Months Ended |
|||||||||||||||||||||||||||||
December 31, 2021 |
Income / |
December 30, 2020 |
Income / |
December 31, 2021 |
Income / |
December 30, 2020 |
Income / |
|||||||||||||||||||||||||
Average Balance |
Expense |
Yield |
Average Balance |
Expense |
Yield |
Average Balance |
Expense |
Yield |
Average Balance |
Expense |
Yield |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Cash |
$ |
91,458,843 |
$ |
35,908 |
0.16% |
$ |
38,217,380 |
$ |
10,083 |
0.10% |
$ |
67,640,215 |
$ |
86,903 |
0.13% |
$ |
38,093,605 |
$ |
109,557 |
0.29% |
||||||||||||
Investments (Tax Exempt) |
23,460,432 |
190,195 |
23,815,369 |
151,564 |
24,492,967 |
668,682 |
11,469,927 |
488,649 |
||||||||||||||||||||||||
Investments (Taxable) |
153,582,906 |
942,173 |
90,609,147 |
510,714 |
115,765,523 |
2,607,476 |
74,804,458 |
1,902,627 |
||||||||||||||||||||||||
Total Investments |
177,043,338 |
1,132,368 |
2.54% |
114,424,516 |
662,278 |
2.30% |
140,258,490 |
3,276,158 |
2.34% |
86,274,385 |
2,391,276 |
2.77% |
||||||||||||||||||||
Total Loans |
586,725,477 |
7,556,406 |
5.11% |
569,936,960 |
5,931,405 |
4.14% |
605,029,296 |
28,335,210 |
4.68% |
435,139,660 |
22,133,688 |
4.35% |
||||||||||||||||||||
Earning Assets |
855,227,658 |
8,724,682 |
4.05% |
722,578,856 |
6,603,766 |
3.64% |
812,928,001 |
31,698,271 |
3.90% |
633,431,247 |
24,634,521 |
3.89% |
||||||||||||||||||||
Assets |
$ |
891,226,178 |
$ |
747,427,986 |
$ |
845,256,803 |
$ |
656,218,698 |
||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Interest Checking |
$ |
88,172,651 |
38,893 |
0.18% |
$ |
39,206,072 |
15,165 |
0.15% |
$ |
47,966,245 |
77,669 |
0.16% |
$ |
28,215,189 |
57,146 |
0.20% |
||||||||||||||||
Money Market |
202,560,648 |
85,450 |
0.17% |
138,196,830 |
74,468 |
0.21% |
176,412,939 |
292,283 |
0.17% |
124,526,068 |
587,777 |
0.47% |
||||||||||||||||||||
Savings |
5,336,531 |
1,431 |
0.11% |
2,836,001 |
717 |
0.10% |
4,250,652 |
4,494 |
0.11% |
2,703,310 |
3,279 |
0.12% |
||||||||||||||||||||
Time Deposits |
187,240,613 |
345,016 |
0.73% |
175,514,471 |
737,430 |
1.67% |
189,083,082 |
1,901,335 |
1.01% |
183,086,149 |
3,590,396 |
1.96% |
||||||||||||||||||||
Interest Bearing Deposits |
483,310,443 |
470,790 |
0.38% |
355,753,374 |
827,780 |
0.93% |
417,712,918 |
2,275,781 |
0.54% |
338,530,716 |
4,238,597 |
1.25% |
||||||||||||||||||||
Borrowings |
81,399,848 |
189,834 |
0.93% |
135,328,997 |
226,724 |
0.67% |
113,558,822 |
766,060 |
0.67% |
105,749,331 |
824,708 |
0.78% |
||||||||||||||||||||
Interest Bearing Liabilities |
564,710,291 |
660,624 |
0.46% |
491,082,371 |
1,054,504 |
0.85% |
531,271,740 |
3,041,841 |
0.57% |
444,280,048 |
5,063,305 |
1.14% |
||||||||||||||||||||
Non Interest Bearing Deposits |
$ |
231,181,073 |
$ |
177,583,960 |
$ |
222,747,496 |
$ |
138,007,364 |
||||||||||||||||||||||||
Cost of Funds |
0.33% |
0.63% |
0.40% |
0.87% |
||||||||||||||||||||||||||||
Net Interest Margin1 |
$ |
8,064,057 |
3.74% |
$ |
5,549,262 |
3.06% |
$ |
28,656,431 |
3.53% |
$ |
19,571,217 |
3.09% |
||||||||||||||||||||
Shareholders Equity |
$ |
82,994,140 |
$ |
71,511,341 |
$ |
78,908,655 |
$ |
67,908,517 |
||||||||||||||||||||||||
ROAA |
1.22% |
1.28% |
1.27% |
1.12% |
||||||||||||||||||||||||||||
ROAE |
13.11% |
13.43% |
13.60% |
10.84% |
||||||||||||||||||||||||||||
1Net 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 |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
Loans held-for-investment to Deposits |
85.85% |
84.45% |
96.14% |
95.51% |
100.35% |
Income Statement Ratios (Quarterly) |
|||||
Return on Average Assets (ROAA) |
1.22% |
1.35% |
1.24% |
1.26% |
1.28% |
Return on Average Equity (ROAE) |
13.11% |
14.18% |
13.65% |
13.44% |
13.43% |
Efficiency Ratio |
62.62% |
59.57% |
62.38% |
67.91% |
67.52% |
Net Interest Margin1 |
3.74% |
3.43% |
3.38% |
3.55% |
3.06% |
Yield on Average Earning Assets |
4.05% |
3.77% |
3.78% |
4.02% |
3.64% |
Yield on Securities |
2.54% |
2.23% |
2.22% |
2.34% |
2.30% |
Yield on Loans |
5.11% |
4.55% |
4.48% |
4.61% |
4.14% |
Cost of Funds |
0.33% |
0.37% |
0.42% |
0.51% |
0.63% |
Noninterest income to Total Revenue |
18.01% |
27.15% |
25.14% |
31.46% |
46.11% |
Per Share Data |
|||||
Tangible Book Value |
$11.59 |
$11.14 |
$10.81 |
$10.35 |
$10.09 |
Share Price Data |
|||||
Closing Price |
$13.37 |
$12.55 |
$11.98 |
$10.90 |
$9.10 |
Book Value Multiple |
115% |
113% |
111% |
105% |
90% |
Common Stock Data |
|||||
Outstanding Shares at End of Period |
7,262,757 |
7,312,565 |
7,305,581 |
7,307,915 |
7,283,647 |
Weighted Average shares outstanding, basic |
7,336,016 |
7,341,635 |
7,306,710 |
7,295,190 |
7,252,552 |
Weighted Average shares outstanding, diluted |
7,438,268 |
7,395,062 |
7,354,389 |
7,334,463 |
7,312,247 |
Capital Ratios |
|||||
Tier 1 Leverage ratio |
11.85% |
10.47% |
10.56% |
10.95% |
11.20% |
Common Equity Tier 1 ratio |
14.49% |
12.73% |
12.90% |
12.88% |
13.21% |
Tier 1 Risk Based Capital ratio |
14.49% |
12.73% |
12.90% |
12.88% |
13.21% |
Total Risk Based Capital ratio |
15.42% |
13.68% |
13.86% |
13.84% |
14.21% |
Credit Quality |
|||||
Net Charge-offs to Average Loans |
-0.02% |
0.00% |
0.00% |
0.00% |
0.00% |
Total Non-performing Loans to loans held-for-investment |
1.48% |
0.15% |
0.15% |
0.41% |
0.58% |
Total Non-performing Assets to Total Assets |
1.01% |
0.10% |
0.11% |
0.28% |
0.41% |
Nonaccrual Loans to loans held-for-investment |
1.48% |
0.15% |
0.15% |
0.41% |
0.58% |
Provision for Loan and Lease Losses |
$355,000 |
$229,000 |
$191,000 |
$64,000 |
$238,000 |
Allowance for Loan and Lease Losses to loans held-for-investment |
1.08% |
1.05% |
0.96% |
0.92% |
0.99% |
Allowance for Loan and Lease Losses to loans held-for-investment (ex PPP loans) |
1.14% |
1.17% |
1.15% |
1.16% |
1.21% |
1Net 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 |
|||||
Contact:
Joseph J. Thomas
President & Chief Executive Officer
Phone: 703-667-4161
Email : jthomas@freedom.bank
Please Note: E-mail is not a secure form of communication. Please do not send any confidential information using this form. This includes account numbers, social security numbers and password or PIN information.
10555 Main Street, Ste 100
Fairfax, VA 22030
(703) 667-4167
Map & Hours
502 Maple Avenue West
Vienna, VA 22180
(703) 667-4170
Map & Hours
11700 Plaza America Dr Ste 110
Reston, VA 20190
(703) 663-2300
Map & Hours
4090 Lafayette Center Drive,
Ste B Chantilly, VA 20151
(571) 395-4000
Map & Hours
Effective February 2, 2023
4090 Lafayette Center Drive, Ste B
Chantilly, VA 20151
(703) 766-6400
Map & Hours
10611 BaIls Ford Road Ste 110
Manassas, VA 20109
703-349-2210
Map & Hours
© 2024 The Freedom Bank of Virginia. All Rights Reserved.
