The Freedom Bank of Virginia Announces Earnings for the Third Quarter of 2020

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The Freedom Bank of Virginia (OTCQX:FDVA) reported a net income of $2,575,370, or $0.35 per diluted share, for Q3 2020, a 68.82% increase from the previous quarter and 176.22% year-over-year. Year-to-date earnings reached $4,950,701, up 152.92% from 2019. Key metrics include a Return on Average Assets of 1.45% and Return on Average Equity of 14.89%, with total assets at $751.58 million. Non-interest income surged 54.64% from Q2 2020, driven by mortgage division success. Despite increased expenses, the efficiency ratio improved to 69.22%, while asset quality remains strong.

Positive

Net income increased by 68.82% quarter-over-quarter and 176.22% year-over-year.
Return on Average Assets rose to 1.45% from 0.92% in the previous quarter.
Total assets grew by $251.19 million since December 31, 2019.
Non-interest income surged by 54.64% compared to the prior quarter.

Negative

Non-interest expenses increased by 32.23% compared to the previous quarter.
Loans held-for-investment decreased by $9.25 million during the quarter.

10/30/2020 - 08:30 AM

FAIRFAX, VA / ACCESSWIRE / October 30, 2020 / The Freedom Bank of Virginia (OTCQX:FDVA), (the "Bank" or "Freedom") today announced net income of $2,575,370, or $0.35 per diluted share, for the three months ended September 30, 2020. This compares to net income of $1,525,525 or $0.21 per diluted share, for the prior quarter and net income of $932,348 or $0.13 per diluted share for the three months ending September 30, 2019. The Bank reported net income of $4,950,701 or $0.68 per diluted share for the nine months ended September 30, 2020 compared to net income of $1,957,409 or $0.27 per diluted share for the nine months ended September 30, 2019.

Joseph J. Thomas, President and CEO, commented "Despite the challenging headwinds of COVID-19 and the adverse economic environment, Freedom Bank was able to push forward with third quarter Return on Average Assets of 1.45% and Return on Average Equity of 14.89%, resulting in an 17.91% annualized increase in our tangible book value per share to $9.75 in the third quarter. Stronger earnings were driven by a 54.64% increase in non-interest revenue tied to the success of our mortgage division as well as disciplined control on deposit and overhead costs. The Bank's third quarter efficiency ratio of 69.22% compares to an efficiency ratio of 81.39% for the comparable period in 2019. Our asset quality remains pristine with total non-performing assets down again to $3.69 million or 0.49% of total assets at September 30, 2020 and we did not require any addition to our reserve for loan losses, which was 1.32% to loans held-for-investment, excluding PPP loans as of September 30, 2020. We also opened a new Sales Office in Manassas to expand the bank's foot print into Prince William County and our team continues to work tirelessly on behalf of clients, serving to build our core client portfolio of entrepreneurs and small businesses."

Third Quarter Highlights include:

Net income increased by 68.82% compared to the prior quarter and by 176.22% compared to the same period in 2019. Net income for the third quarter was $2,575,370 or $0.35 per diluted share compared to net income of $1,525,505 or $0.21 per diluted share in the prior quarter and net income of $932,348 or $0.13 per diluted share for the three months ended September 30, 2019;
Net income for the first nine months of 2020 increased by 152.92% compared to the same period in 2019. Net income was $4,950,701 or $0.68 per diluted shares, compared to net income of $1,957,409 or $0.27 per diluted share for the same period in 2019;
Return on Average Assets ("ROAA") was 1.45% for the quarter ended September 30, 2020 compared to 0.92% for the prior quarter and 0.75% for the three months ended September 30, 2019;
Return on Average Equity ("ROAE") was 14.89% for the three months ended September 30, 2020 compared to 9.24% for the prior quarter and 6.34% for the three months ended September 30, 2019;
Total assets were $751.58 million on September 30, 2020, an increase of $251.19 million from December 31, 2019;
Total loans increased by $26.43 million or by 4.84% during the quarter, , while loans held-for-inve4stment declined by $9.25 million or by 1.79% during the quarter. Mortgage loans held-for-sale increased by $35.67 million or by 111.86% while PPP loan balances increased by $2.76 million, offset by a decrease of $12.01 million in other loans held-for-investment during the quarter;
Loan payment deferrals related to COVID-19 continue to decline steadily. In the second quarter of 2020, in accordance with the spirit and provisions of the CARES Act, the Bank allowed borrowers who had been impacted by the COVD-19 pandemic, to defer loan payments for six months. . Based upon a review of earnings releases, it appears that many other banks chose, instead, to provide shorter payment deferrals of up to 3 months to similarly impacted borrowers. As a result, the payment deferrals granted in the second quarter had longer terms that end in the fourth quarter of 2020. During the third quarter of 2020, 15 of the loans that had been granted payment deferrals in the prior quarter had resumed contractual payments, while 9 additional loans were granted payment deferrals in the third quarter. Interest continues accruing during the deferral period. As of September 30, 2020, 90 loans for a total of $73.07 million were on payment deferrals, all of which will end in the fourth quarter. This compares to 96 loans or $89.35 million on June 30, 2020;
Investment securities increased by $21.52 million during the third quarter;
Total deposits increased by $46.97 million or by 9.63% in the third quarter. Non-interest bearing demand deposits increased by $22.39 million to $176.22 million and represented 32.95% of total deposits at the end of the quarter;
The net interest margin increased in the third quarter to 3.13%, higher by 20 basis points compared to the previous quarter and lower by 39 basis points compared to the same period in 2019. The improvement in the net interest margin across linked quarters was primarily due to a reduction in the cost of funds, accompanied by higher yields on earning assets. Excluding PPP loans, the net interest margin would have been higher by 9 basis points to 3.22% during the third quarter;
The cost of funds was 0.73% for the third quarter, lower by 15 basis points compared to the previous quarter and lower by 91 basis points compared to the same period in 2019, as deposit and borrowing costs continue to decline across the board;
Non-interest income increased by 54.64% compared to the previous quarter and increased by 175.14% compared to the same period in 2019, primarily due to higher revenue from the sale of mortgage loans and higher income from Bank Owned Life Insurance;
Revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, increased by 29.84% compared to the prior quarter, and by 71.53% compared to the same period in 2019;
Non-interest expense increased by 32.23% compared to the previous quarter and increased by 45.87% compared to the same period in 2019, primarily due to higher performance based compensation and mortgage costs: specifically, an increase in commissions paid to mortgage loan officers and mortgage settlement costs as well as higher accruals for performance based compensation. Excluding these costs, non-interest expense in the third quarter of 2020 increased by $340,160 or by 9.06%, compared to the previous quarter and increased by 6.06% compared to the same period in 2019;
The Efficiency Ratio was 69.22% for the quarter ended September 30, 2020, compared to 67.97% for the prior quarter and 81.39% for the same period in 2019;
As a result of a decline in loans held-for-investment during the quarter and an assessment of the risks in the held-for-investment loan portfolio, the Bank did not recognize any provision for loan losses during the third quarter and the ratio of the allowance for loan and lease losses to loans held-for-investment increased to 1.04% (or 1.32% excluding PPP loans, which carry a full faith and guarantee by the US Government) compared to 1.02% in the previous quarter (or 1.28% excluding PPP loans);
The Bank continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 11.57%, Common Equity Tier 1 ratio of 14.10%, Tier 1 Risk Based Capital ratio of 14.10% and a Total Capital ratio of 15.17%.

Net Interest Income

The Bank recorded net interest income of $5.32 million for the third quarter of 2020, an increase of 12.66% compared to the previous quarter, and 26.32% higher than the same period in 2019. The net interest margin in the third quarter of 2020 was 3.13%, higher by 20 basis points compared to the previous quarter and lower by 39 basis points compared to the same period in 2019. Excluding PPP loans, the net interest margin would have been higher by 9 basis points to 3.22% during the third quarter.

The following factors contributed to the changes in net interest margin during the third quarter of 2020 compared to the previous quarter:

Yields on average earning assets increased by 6 basis points to 3.81% compared to 3.75% in the previous quarter, primarily due to higher yields on investment securities, partially offset by lower loan yields.
Loan yields decreased by 25 basis points to 4.10% from 4.35% in the previous quarter, while yields on investment securities increased by 81 basis points to 3.32% from 2.51% in the previous quarter. Loan growth in the third quarter was largely concentrated in lower yielding residential mortgage loans held-for-sale and PPP loans, with a decrease in other loans held-for-investment as a result of payoff activity.
Cost of funds decreased by 15 basis points to 0.73%, from 0.88% in the previous quarter, primarily due to declines in deposit and borrowing costs across the board.

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

Loan yields decreased by 126 basis points to 4.10% from 5.36% in the third quarter of 2019, while yields on investment securities increased by 53 basis points to 3.32%, from 2.79% in the same period in 2019.
Cost of funds decreased by 91 basis points to 0.73%, from 1.64% in the third quarter of 2019, primarily due to higher non-interest bearing deposits and lower costs related to borrowings and interest bearing deposits.

Non-interest Income

Non-interest income was $5.05 million for the third quarter, higher by 54.64% compared to the previous quarter and higher by 175.14% compared to the same period in 2019. The principal contributor to the increase in non-interest income in the third quarter of 2020 compared to the previous quarter was higher gain-on-sale and fee revenue from mortgage loans, stemming from an increase in mortgage refinancing activity. Other factors that contributed to the increase in non-interest income was higher income from Bank Owned Life Insurance.

Non-interest Expenses

Non-interest expenses in the third quarter of 2020 increased by 32.23% compared to the previous quarter and increased by 45.87% compared to the same period in 2019. The increase was largely driven by higher performance based compensation and mortgage costs: specifically, increased commissions paid to mortgage loan officers and an increase in mortgage settlement costs on higher closed loan volume during the quarter, as well as increased accruals for performance based compensation. Excluding these costs, non-interest expense in the third quarter of 2020 increased more modestly, by $340,160 or by 9.06%, compared to the previous quarter and increased by 6.06% compared to the same period in 2019.

Additional categories of non-interest expenses that changed in the third quarter of 2020 were the following:

Professional fees were lower by 15.68% in the third quarter of 2020 compared to the previous quarter.
Data processing expenses in the third quarter were lower by 19.51% compared to the previous quarter.
Advertising expenses in the third quarter of 2020 increased relative to the previous quarter on higher media advertising.

The Efficiency Ratio was 69.22% for the quarter ended September 30, 2020, compared to 67.97% for the prior quarter and 81.39% for the same period in 2019.

The Efficiency ratio for the first nine months of 2020 was 70.58% compared to 85.07% for the same period in 2019.

Asset Quality

Non-accrual loans were $3.69 million or 0.64% of total loans at the end of the third quarter of 2020, compared to $3.97 million or 0.71% of total loans at the end of the prior quarter. There were no troubled debt restructurings ("TDRs") as of September 30, 2020. On September 30, 2020, there were no loans that were 90 days or more past due and accruing compared to one loan with a book balance of $80,000 that was 90 days or more past due and accruing, equivalent to 0.01% of total loans on June 30, 2020. There was no Other Real Estate Owned ("OREO") on the balance sheet as of September 30, 2020. 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 $3.69 million or 0.49% of total assets at September 30, 2020 compared to $3.97 million or 0.57% of total assets, at the end of the previous quarter.

Loan payment deferrals related to COVID-19 continue to decline steadily. In the second quarter of 2020, in accordance with the spirit and provisions of the CARES Act, the Bank allowed borrowers who had been impacted by the COVD-19 pandemic, to defer loan payments for six months. Based upon a review of earnings releases, it appears that many other banks chose, instead, to provide shorter payment deferrals of up to 3 months to similarly impacted borrowers. As a result, the payment deferrals granted in the second quarter had longer terms that end in the fourth quarter of 2020. During the third quarter of 2020, 15 of the loans that had been granted payment deferrals in the prior quarter had resumed contractual payments, while 9 additional loans were granted payment deferrals in the third quarter. Interest continues accruing during the deferral period. As of September 30, 2020, 90 loans for a total of $73.07 million were on payment deferrals, all of which will end in the fourth quarter. This compares to 96 loans or $89.35 million on June 30, 2020.

	Limited COVID-19 At-Risk Industry Exposure
Industry	Total Outstanding		% of Total Loans			Total Deferred Principal Balance		Deferred Principal Balance as of % of Total Industry

Retail	$	10,783,898		2	%	$	1,516,941		14	%

Restaurants	$	5,138,705		1	%	$	1,360,167		26	%

Fitness Centers	$	1,658,410		0	%	$	1,566,906		94	%

Hotels	$	5,138,705		1	%	$	4,738,705		92	%

Churches	$	17,986,460		3	%	$	6,504,091		36	%

Subtotal - September 30, 2020	$	40,706,177				$	15,686,810

The table above shows the Bank's loans to certain industry sectors that are likely to be most impacted by the COVID-19 outbreak and therefore deemed higher risk. These industry sectors include retail, restaurants, fitness centers, hotels, and churches. As of September 30, 2020, the Bank had $40.71 million of outstanding loans to these industry sectors, representing 3.11% of loans held-for-investment (or 3.95% of loans held-for-investment excluding PPP loans). Loan deferrals were $15.69 million or 38.54% of outstanding loans to borrowers in these higher risk industry sectors.

Following an assessment of the collectability of the loans held-for-investment at the end of the third quarter, it was determined that no provision for loan losses was necessary. The Bank booked a provision of $705,000 in the second quarter of 2020. The Bank's ALLL ratio was 1.04% of loans held-for-investment (or 1.32% of loans held-for investment excluding PPP loans) as of September 30, 2020 compared to an ALLL ratio of 1.02% at June 30, 2020 (or 1.28% of loans held-for-investment excluding PPP loans).

Total Assets

Total assets at September 30, 2020 were $751.58 million compared to $697.75 million on June 30, 2020. Changes in major asset categories during linked quarters were as follows:

Investment securities increased by $21.52 million, including $16.45 million in municipal bonds classified as held-to-maturity, as the bank deployed excess liquidity into investments.
Loans held-for-investment decreased by $9.25 million, including PPP loan growth of $2.76 million and a decrease in $12.01 million of other loans held-for-investment.

Total Liabilities

Total liabilities at September 30, 2020 were $681.05 million compared to total liabilities of $630.20 million on June 30, 2020. Total deposits were $534.87 million compared to total deposits of $487.90 million on June 30, 2020. On a linked quarter basis, interest bearing demand deposits increased by $28.67 million, with the bulk of the increase occurring in low cost interest checking and money market balances, while time deposits declined by $3.61 million. Non-interest bearing demand deposits increased during the quarter as well to $176.22 million, and comprised 32.95% of total deposits at the end of the quarter, compared to 31.53% of total deposits on June 30, 2020. The change in funding mix enables the Bank's cost of funds to benefit from lower interest rates. Federal Home Loan Bank advances declined slightly during the quarter, while PPP Liquidity Facility term advances increased as we funded the PPP loan growth that occurred in the third quarter.

Stockholders' Equity and Capital

Stockholders' equity at September 30, 2020 was $70.53 million compared to $67.55 million on June 30, 2020. Additional paid in capital at September 30, 2020 was $58.84 million on September 30, 2020 compared to $58.75 million on June 30, 2020. Accumulated Other Comprehensive Income ("AOCI"), which generally comprises unrealized gains and losses on available-for-sale securities on the balance sheet, increased by $316,441 on unrealized gains during the third quarter of 2020. Total shares issued and outstanding were 7,233,751 on September 30, 2020 compared to 7,238,751 shares on June 30, 2020, and 7,211,046 shares on September 30, 2019. The tangible book value of the Bank's common stock at September 30, 2020 was $9.75 per share compared to $9.33 per share on June 30, 2020 and $8.76 per share on September 30, 2019.

As of September 30, 2020 of the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized banks. The Bank's capital ratios on September 30, 2020 and December 31, 2019 were as follows:

	September 30, 2020			December 31, 2019
Total Capital Ratio		15.17	%		16.24	%

Tier 1 Capital Ratio		14.10	%		15.26	%

Common Equity
Tier 1 Capital Ratio		14.10	%		15.26	%

Leverage Ratio		11.57	%		12.80	%

About Freedom Bank

Freedom Bank is a community-oriented bank with locations in Fairfax, Reston, Chantilly, Vienna and Manassas, 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.freedom.bank

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; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Bank 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 Bank's borrowers to satisfy their obligations to the Bank, on the value of collateral securing loans, on the demand for the Bank's loans or its other products and services, on incidents of cyberattack and fraud, on the Bank's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Bank's business operations and on financial markets and economic growth. 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. Some of the financial tables in this document reflect classifications to accounts to improve consistency in financial reporting.

Contact:

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

THE FREEDOM BANK OF VIRGINIA CONSOLIDATED BALANCE SHEETS


	(Unaudited)			(Unaudited)			(Audited)
	September 30,			June 30,			December 31,
	2020			2020			2019
ASSETS
Cash and Due from Banks	$	2,623,863		$	1,933,951		$	927,322
Interest Bearing Deposits with Banks		39,353,716			36,218,802			24,735,085
Securities Available-for-Sale		93,792,624			88,728,158			49,854,912
Securities Held-to-Maturity		16,450,629			-			-
Restricted Stock Investments		3,607,800			3,601,050			3,752,750
Loans Held for Sale		67,565,018			31,891,370			11,656,802
PPP Loans Held for Investment		107,351,052			104,586,120			-
Other Loans Held for Investment		397,224,188			409,237,515			392,941,874
Allowance for Loan Losses		(5,228,192	)		(5,225,692	)		(4,121,693	)
Net Loans		499,347,048			508,597,942			388,820,181
Bank Premises and Equipment, net		1,343,532			1,387,197			1,480,535
Accrued Interest Receivable		3,522,658			2,433,838			1,278,037
Deferred Tax Asset		702,684			897,958			857,698
Bank-Owned Life Insurance		16,902,659			17,013,098			12,783,605
Right of Use Asset, net		3,323,564			3,113,817			2,928,546
Other Assets		3,043,264			1,931,795			1,317,201
Total Assets		751,579,059			697,748,977			500,392,674
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Demand Deposits
Non-interest Bearing	$	176,221,554		$	153,835,083		$	80,630,053
Interest Bearing		179,147,383			150,476,495			112,605,618
Savings Deposits		2,819,368			3,295,441			2,153,939
Time Deposits		176,678,969			180,291,039			199,821,006
Total Deposits		534,867,274			487,898,058			395,210,616
Federal Home Loan Bank Advances		31,071,429			31,214,286			35,857,143
PPP Liquidity Facility Advances		107,351,042			104,687,489			-
Accrued Interest Payable		484,775			339,766			433,586
Lease Liability		3,401,335			3,182,552			2,981,132
Other Liabilities		4,359,502			2,874,217			1,883,782
Total Liabilities		681,050,583			630,196,367			436,366,259
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized;
0 Shares Issued and Outstanding, 2020 and 2019					-			-
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:
6,560,751, 6,565,751, and 6,548,046 Shares Issued and Outstanding
at September 30, 2020, June 30, 2020, and December 31, 2019, respectively
(Includes 113,335, 118,335, and 120,500 Unvested Shares at September 30, 2020
June 30, 2020, and December 31, 2019, respectively)		64,474			64,474			64,275
Non-Voting Common Stock:
673,000 Shares Issued and Outstanding September 30, 2020, June 30, 2020
and December 31, 2019		6,730			6,730			6,730
Additional Paid-in Capital		58,835,965			58,751,910			58,526,913
Accumulated Other Comprehensive Income (Loss), Net		1,212,834			896,393			(29,274	)
Retained Earnings		10,408,473			7,833,103			5,457,771
Total Stockholders' Equity		70,528,476			67,552,610			64,026,415
Total Liabilities and Stockholders' Equity		751,579,059			697,748,977			500,392,674

THE FREEDOM BANK OF VIRGINIA CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)		(Unaudited)			(Unaudited)			(Unaudited)
	For the three		For the three			For the nine			For the nine
	months ended		months ended			months ended			months ended
	September 30, 2020		September 30, 2019			September 30, 2020			September 30, 2019
Interest Income
Interest and Fees on Loans	$	5,657,929	$	5,541,462		$	16,202,254		$	15,768,433
Interest on Investment Securities		799,976		343,288			1,658,211			1,091,658
Interest on Deposits with Other Banks		8,236		82,831			99,474			303,138
Total Interest Income		6,466,140		5,967,581			17,959,939			17,163,229
Interest Expense
Interest on Deposits		919,326		1,585,209			3,410,817			4,693,482
Interest on Borrowings		231,700		174,810			597,984			382,639
Total Interest Expense		1,151,026		1,760,019			4,008,801			5,076,121

Net Interest Income		5,315,115		4,207,562			13,951,138			12,087,108
Provision for Loan Losses		-		(47,000	)		(1,254,000	)		(194,500	)
Net Interest Income After
Provision for Loan Losses		5,315,115		4,160,562			12,697,138			11,892,608
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue		4,742,574		1,702,779			9,666,023			3,666,236
Service Charges and Other Income		14,802		36,262			87,787			110,890
Gain on Sale of Securities		17,174		-			42,782			105,722
Swap Fee Income		-		-			387,262			-
Increase in Cash Surrender Value of Bank-
owned Life Insurance		277,164		97,022			506,658			285,561
Total Non-interest Income		5,051,714		1,836,064			10,690,512			4,168,409
Non-Interest Expenses
Officer and Employee Compensation
and Benefits		5,065,021		3,064,244			11,754,111			8,709,142
Occupancy Expense		306,291		285,798			899,719			849,787
Equipment and Depreciation Expense		175,684		216,275			507,616			629,513
Insurance Expense		43,836		(48,502	)		147,433			107,466
Professional Fees		274,505		297,947			881,446			827,614
Data and Item Processing		230,152		245,178			690,228			660,751
Advertising		99,508		63,543			195,043			223,088
Franchise Taxes and State Assessment Fees		185,404		175,895			540,086			454,069
Mortgage Fees and Settlements		600,592		312,346			1,276,831			642,999
Other Operating Expense		194,777		306,439			499,998			724,539
Total Non-interest Expenses		7,175,770		4,919,163			17,392,513			13,828,968
Income Before Income Taxes		3,191,059		1,077,463			5,995,136			2,232,049
Income Tax Expense		615,689		145,115			1,044,435			274,640
Net Income	$	2,575,370	$	932,348		$	4,950,701		$	1,957,409
Earnings per Common Share - Basic	$	0.36	$	0.13		$	0.68		$	0.27
Earnings per Common Share - Diluted	$	0.35	$	0.13		$	0.68		$	0.27
Weighted-Average Common Shares
Outstanding - Basic		7,234,294		7,150,649			7,233,525			7,118,545
Weighted-Average Common Shares
Outstanding - Diluted		7,277,112		7,194,786			7,292,827			7,161,862

THE FREEDOM BANK OF VIRGINIA CONSOLIDATED STATEMENTS OF OPERATIONS


	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
	September 30, 2020		June 30, 2020			March 31, 2020			December 31, 2019		September 30, 2019
Interest Income
Interest and Fees on Loans	$	5,657,929	$	5,508,679		$	5,035,645		$	5,345,417	$	5,541,462
Interest on Investment Securities		799,976		500,293			357,942			278,164		343,288
Interest on Deposits with Other Banks		8,236		13,001			78,237			88,239		82,831
Total Interest Income		6,466,140		6,021,974			5,471,824			5,711,820		5,967,581

Interest Expense
Interest on Deposits		919,326		1,095,532			1,395,959			1,513,662		1,585,209
Interest on Borrowings		231,700		208,765			157,519			162,502		174,810
Total Interest Expense		1,151,026		1,304,297			1,553,478			1,676,164		1,760,019

Net Interest Income		5,315,115		4,717,677			3,918,346			4,035,657		4,207,562
Provision for Loan Losses		-		(705,000	)		(549,000	)		-		(47,000	)
Net Interest Income after
Provision for Loan Losses		5,315,115		4,012,677			3,369,346			4,035,657		4,160,562
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue		4,742,574		2,805,571			2,117,878			1,098,656		1,702,779
Service Charges and Other Income		14,802		33,923			39,062			44,337		36,262
Gains on Sale of Securities		17,174		-			25,608			-		-
Swap Fee Income		-		299,762			87,500			-		-
Increase in Cash Surrender Value of Bank-
owned Life Insurance		277,164		127,496			101,998			96,727		97,022
Total Non-interest Income		5,051,714		3,266,751			2,372,047			1,239,720		1,836,064


Revenue	$	10,366,829	$	7,984,428		$	6,290,393		$	5,275,377	$	6,043,626

Non-Interest Expenses
Officer and Employee Compensation
and Benefits		5,065,021		3,488,369			3,200,721			2,637,977		3,064,244
Occupancy Expense		306,291		300,634			292,794			293,058		285,798
Equipment and Depreciation Expense		175,684		147,910			184,022			261,871		216,275
Insurance Expense		43,836		51,263			52,335			10,760		(48,502	)
Professional Fees		274,505		325,545			281,396			278,594		297,947
Data and Item Processing		230,152		285,942			174,135			178,416		245,178
Advertising		99,508		36,732			58,804			113,194		63,543
Franchise Taxes and State Assessment Fees		185,404		178,812			175,870			175,920		175,895
Mortgage Fees and Settlements		600,592		454,866			221,374			200,192		312,346
Other Operating Expense		194,777		156,734			148,487			181,005		306,439

Total Non-interest Expenses		7,175,770		5,426,806			4,789,937			4,330,987		4,919,163
Income before Income Taxes		3,191,059		1,852,622			951,455			944,389		1,077,463

Income Tax Expense		615,689		327,097			101,649			196,581		145,115

Net Income	$	2,575,370	$	1,525,525		$	849,806		$	747,808	$	932,348
Earnings per Common Share - Basic	$	0.36	$	0.21		$	0.12		$	0.10	$	0.13
Earnings per Common Share - Diluted	$	0.35	$	0.21		$	0.11		$	0.10	$	0.13
Weighted-Average Common Shares
Outstanding - Basic		7,234,294		7,238,751			7,348,022			7,212,568		7,150,649
Weighted-Average Common Shares
Outstanding - Diluted		7,277,112		7,267,773			7,435,490			7,272,228		7,194,786

{ "@context": "https://schema.org", "@type": "FAQPage", "name": "The Freedom Bank of Virginia Announces Earnings for the Third Quarter of 2020 FAQs", "mainEntity": [ { "@type": "Question", "name": "What is Freedom Bank's net income for Q3 2020?", "acceptedAnswer": { "@type": "Answer", "text": "Freedom Bank reported a net income of $2,575,370 for Q3 2020." } }, { "@type": "Question", "name": "How did Freedom Bank's net income compare year-over-year?", "acceptedAnswer": { "@type": "Answer", "text": "Net income increased by 176.22% compared to Q3 2019." } }, { "@type": "Question", "name": "What was Freedom Bank's Return on Average Assets for Q3 2020?", "acceptedAnswer": { "@type": "Answer", "text": "The Return on Average Assets for Q3 2020 was 1.45%." } }, { "@type": "Question", "name": "What is the stock symbol for Freedom Bank?", "acceptedAnswer": { "@type": "Answer", "text": "The stock symbol for Freedom Bank is FDVA." } }, { "@type": "Question", "name": "How much did Freedom Bank's total assets increase by since December 31, 2019?", "acceptedAnswer": { "@type": "Answer", "text": "Total assets increased by $251.19 million since December 31, 2019." } } ] }