FAIRFAX VIENNA
2012 FINANCIAL RESULTS
FINANCIAL HIGHLIGHTS
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$120
$0
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$240
$220
$200
$180
$160
$140
$0
TOTAL LOAN GROWTH
$140,074,925
$154,407,193
$171,901,847
2010
2011
Year
2012
TOTAL ASSET GROWTH
$238,642,144
$207,557,264
$171,350,118
2010
2011
Year
2012
Freedom Bank oF Virginia • 2012 annual report
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$225
$205
$185
$165
$145
$125
$0
TOTAL DEMAND DEPOSIT GROWTH
(non-interest bearing)
$29,797,798
$25,392,303
$34,951,109
2010
2011
Year
2012
TOTAL DEPOSIT GROWTH
$212,575,742
$183,146,322
$149,122,963
2010
2011
Year
2012
Financial HigHligHtS
a letter to our
SHAREHOLDERS
On behalf Of the bOard Of directOrs and emplOyees Of the freedOm bank Of Virginia,
we are pleased to report our results for 2012. Freedom Bank had another year of strong financial performance in 2012, its
third consecutive year of profitability. Total assets, loans and checking account balances all ended at record highs. Asset
quality also improved, in terms of both timely payments and a reduction in non-performing assets. The Bank’s capital
exceeded $25,000,000 for the first time at a year end.
Stockholder’s equity at December 31, 2012 was $25,264,084, up 6.61% from $23,697,402 at December 31, 2011. Year end book
value per share was $8.81, up 5.51% from $8.35 the prior year. Capital continues to be a strength of the Bank. Regulatory capital
minimums to be considered well capitalized for Tier 1 Leverage Ratio, Risk Based Capital Tier 1, and Risk Based Capital
Tier 2 are 5.0%, 6.0% and 10.0% respectively. At December 31, 2012, the ratios for the Bank were 11.06%, 13.80% and 15.03%
respectively, all in the well capitalized category. The Bank continues its tradition of maintaining a strong capital base to serve
the needs of its customers and stockholders.
The Bank has focused for many years on serving the banking needs of the government contractors in the region. Deposits
increased over the prior year by 16.05% in part because of this customer base. Non-interest bearing deposits increased
$9,558,806 (37.64%) to $34,951,109, while interest bearing checking accounts dropped $5,071,905 (12.17%) to $36,601,864 and
time deposits increased $29,429,419 (21.55%) to $139,555,489 at December 31, 2012.
Because of our growth in deposits and shareholder’s equity, the assets of the Bank grew to $238,642,144 at December 31, 2012
up 14.98% from $207,557,264 at year end 2011.
Investment Securities Available for Sale increased $13,533,997 (89.13%) to $28,717,795 at December 31, 2012. Double digit gross
loan growth for the year resulted from the Bank’s investment in additional business development and lending officers. New
lenders made a significant contribution in the fourth quarter particularly with loans to medical professionals. These loans
helped gross loans increase 11.33% to $171,901,847 at year end, up from $154,407,193 at December 31, 2011. The Bank also
increased the Provision for Possible Loan Losses by $340,200 over the prior year and had an increased compensation expense
of $270,000 in the fourth quarter.
Asset quality improved significantly in 2012. Loans on which the Bank is no longer accruing interest was halved from 2.43% of
total loans at December 31, 2011 to 1.21% at December 31, 2012. Loans past due for regularly scheduled payments declined from
1.67% at December 31, 2011 to 0.23% at December 31, 2012.
The Bank earned a net profit in 2012 of $1,192,000 ($0.42 per share), down from $1,900,300 in 2011 ($0.67 per share), which is due
principally to the highlighted investments the Bank made in additional staff and improving asset quality. Barring deterioration
in the local economy, the Bank’s achievements position it for continuing growth in 2013 by adding staff and locations.
In addition, the Bank has formed an investment banking subsidiary, FBV Capital Partners, Inc., which, when approved by
the Financial Industry Regulatory Authority (FINRA), will provide merger and acquisitions advisory services. Building on
our success in the government contracting market, this subsidiary will focus primarily on this industry segment. To lead the
effort, the Bank hired Robert N. Rubin, a well-known and successful investment banker with over twenty years experience
assisting companies with mergers and acquisitions in the local market. The Bank is seeking FINRA approval to acquire a
broker dealer license which it expects to receive in the near future. Although merger and acquisition transactions have long
lead times and revenues from these services will not be immediate, we believe our industry knowledge and relationships will
enable the Bank to enhance its market penetration and generate fee income from these services.
The Board of Directors approved new deferred compensation plans in 2012, effective for 2013, for both the Board and the
executive officers that include an option to invest in the Bank’s stock. The plans do not provide any additional compensation,
but change the present means of compensation. The Board members now have the option to participate in a deferred
compensation plan that includes a Freedom Bank Stock Fund, among other investment options. We are pleased to inform you
that 100% of eligible directors agreed to participate in the Freedom Bank Stock Fund for 2013. A similar plan was offered to
executives who were allowed to defer up to fifteen percent of compensation into a deferred compensation plan that includes
a Freedom Bank Stock Fund, among other investment options. Like the directors, 100% of eligible current employees elected
to participate in the Freedom Bank Stock Fund. These new plans are expected to increase the volume of shares traded and
provide a strong economic incentive to both management and directors to increase the value of the Bank’s shares over time.
We thank you for your continued support of the Bank and hope to see you at our annual meeting.
Craig S. Underhill
president & ceO
Richard C. Litman
chairman
TABLE OF
CONTENTS
Independent Auditor’s Report
2
Financial Statements
balance sheets
statements of operations
statements of comprehensive income
statements of changes in stockholders’ equity
statements of cash flows
notes to financial statements
3
5
6
7
8
11
Shareholder & Company Information
38
INDEPENDENT
AUDITOR’S
REPORT
To The Board of direcTors & sTockholders
The Freedom Bank of Virginia
Vienna, Virginia
We have audited the accompanying financial statements of The Freedom Bank of Virginia, which comprise the balance
sheets as of December 31, 2012 and 2011, and the related statements of operations, comprehensive income, changes in stock-
holders’ equity and cash flows for the years then ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
2
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in ac-
cordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by manage-
ment, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
The Freedom Bank of Virginia as of December 31, 2012 and 2011, and the results of its operations and its cash flows for the
years then ended in accordance with accounting principles generally accepted in the United States of America.
Thompson, Greenspon & Co., P.C.
Fairfax, Virginia
March 20, 2013
independent auditor’S report
FINANCIAL
STATEMENTS
Balance Sheets
YEARS ENDED DECEMBER 31
2012 & 2011
Assets
2012 ($)
2011 ($)
Cash and Due from Banks
1 0,884,094
1 6, 1 2 8,03 2
Interest Bearing Deposits with Banks
1 ,0 1 6,006
1 ,007,33 9
Federal Funds Sold
1 8,78 8,000
1 5,75 3,000
Securities available-for-Sale
28,7 1 7, 7 9 5
1 5, 1 83,7 98
3
Securities Held-to-maturity
Federal reserve Bank Stock (at cost)
loans Held for Sale
loans receivable
348,6 1 6
746,6 50
666, 1 5 2
689,350
3,656,8 2 9
3,007,500
1 7 1 ,90 1 ,84 7
1 54,40 7, 1 9 3
allowance for possible loan losses
(2,236,8 22)
(2,03 7, 1 64)
net lOans
169,665,02 5
152,370,029
Bank premises and equipment (net)
accrued interest receivable
deferred tax asset
Other Assets
1 99,500
607, 2 7 6
6 1 2,000
2 1 3,8 5 7
5 1 9,450
6 1 2,000
1 ,357, 1 7 8
1 ,406,7 5 7
Bank-owned life insurance
2,043, 1 7 5
—
tOtal assets
238,642, 1 44
207,557,264
Financial StatementS
liAbilities
Deposits
Demand Deposits
non-interest Bearing
Interest Bearing
Savings Deposits
Time Deposits
tOtal depOsits
other accrued expenses
accrued interest payable
tOtal liabilities
2012 ($)
2011 ($)
34,95 1 , 1 09
25,39 2,30 3
36,60 1 , 864
4 1 ,67 3, 7 70
1 ,46 7, 280
1 ,269,06 5
139,5 5 5,48 9
1 1 4,8 1 1 , 1 8 4
2 1 2,5 75,7 4 2
1 8 3, 1 46,3 2 2
73 2,4 6 6
654,8 9 8
69,8 5 2
58,64 2
2 1 3,378,060
183,859,86 2
4
stockholders’ equity
common stock ( $4.17 par value, 5,000,000 shares authorized:
(2,866,117 Shares issued & outstanding [2012];
2,836,404 Shares issued & outstanding [2011])
1 1 ,94 2,2 2 8
1 1 ,8 1 8,3 2 5
additional paid-in capital
1 6,284,30 3
1 6, 1 84,8 1 0
accumulated other comprehensive income (net)
285,80 9
1 34,7 7 6
retained deficit
(3,248,2 56)
(4,440,509)
tOtal stOckhOlders’ equity
25,264 ,084
23,69 7,40 2
tOtal liabilities & stOckhOlders’ equity
238,642, 1 44
207,55 7,2 64
NOTE: The Notes to Financial Statements are an integral part of these statements.
Freedom Bank oF Virginia • 2012 annual report
Statements of Operations
YEARS ENDED DECEMBER 31
2012 & 2011
interest income
interest & Fees on loans
2012 ($)
2011 ($)
9,305 ,59 5
9, 1 1 0,3 1 2
interest on investment Securities
5 74 ,36 1
399,4 2 7
interest on Federal Funds Sold
40,9 93
38,6 6 2
tOtal interest incOme
9,920,949
9,548,40 1
interest expense
Interest on Deposits
2,008,65 3
1 ,86 1 ,8 2 8
net interest incOme
7,91 2,2 96
7,686,5 7 3
provision for possible loAn losses
688,200
348,000
5
net interest incOme after
7,224,096
7,338,5 7 3
other income
Service charges & other income
83 2,64 1
568,02 8
increase in cash Surrender Value of
Bank-owned life insurance
4 3, 1 75
—
tOtal Other incOme
875 ,8 1 6
568,02 8
operAting expenses
officers & employee compensation & Benefits
4,094,03 1
3,406,08 9
occupancy expense
equipment & depreciation expense
insurance expense
5 1 0,7 76
1 88,44 2
1 79, 1 05
530,3 2 8
2 1 8, 75 2
24 1 ,8 78
Financial StatementS
operAting expenses cont’d
2012 ($)
2011 ($)
professional Fees
data & item processing
Business development
Franchise taxes
other operating expenses
548,74 8
607,38 8
1 2 3,4 5 5
22 6 , 1 1 0
429,604
398,5 68
534,008
1 24,8 5 1
202,9 5 5
348,8 7 2
tOtal Operating expenses
6,907,659
6,006,30 1
incOme befOre incOme taxes
1 ,1 92,2 53
1,900,300
income tAx expense
—
—
NEt iNCoME
1 ,1 92,2 53
1,900,300
NEt iNCoME pER CoMMoN ShARE
6
NEt iNCoME pER DilutED ShARE
0.42
0.42
0.67
0.67
Statements of Comprehensive Income
YEARS ENDED DECEMBER 31
2012 & 2011
2012 ($)
2011 ($)
net income
1 , 1 92,25 3
1,900,300
other comprehensive income:
(unrealized holding gain arising during the year, net
of tax expense of $81,326 in 2012 and $26,179 in 2011
1 5 1,0 3 3
48, 6 1 7
cOmprehensiVe incOme
1,3 43,28 6
1,94 8,9 1 7
NOTE: The Notes to Financial Statements are an integral part of these statements.
Freedom Bank oF Virginia • 2012 annual report
Statements of Changes
in Stockholders’ Equity
YEARS ENDED DECEMBER 31
2012 & 2011
shAres of
common
stock ($)
common stock
($)
AdditionAl
pAid-in
cApitAl ($)
AccumulAted
other
comprehensive
income ($)
retAined
eArnings ($)
(deficit)
totAl
stockholders’
equity ($)
bAlAnce
(dec. 31, 2010)
net income
comprehensive income
*2,357, 3 6 1
1 1 ,786,805
16,042,863
8 6, 1 5 9
(6,340,809)
2 1 ,575,0 1 8
—
—
—
—
—
—
—
1 ,900,300
1,900,300
48,6 1 7
—
48,6 1 7
issuance of common Stock
6,304
3 1 ,5 20
3,205
Stock-based compensation
—
—
1 3 8,742
—
—
—
—
34,7 2 5
1 38 ,74 2
*2,3 63,665
1 1 ,81 8,3 2 5
16,1 84,8 1 0
134,7 7 6
(4,440,509)
23,697,402
7
bAlAnce
(dec. 31, 2011)
net income
comprehensive income
—
—
—
—
—
—
—
—
Six-for-five Stock Split
472,7 39
issuance of common Stock
2 9 ,7 1 3
12 3,903
65,0 59
Stock-based compensation
—
—
34,434
—
1 , 1 92 , 2 5 3
1 , 1 9 2, 2 53
1 5 1 ,0 3 3
—
—
—
—
—
—
1 5 1 ,03 3
—
1 8 8,9 6 2
—
34,4 34
bAlAnce
(dec. 31, 2012)
2,86 6 , 1 1 7
1 1 ,942,22 8
1 6,284,303
285,809
(3,248,256)
25,264,084
*Shares of common stock retroactively adjusted for the six-for-five stock split is
2,836,404 and 2,828,833 as of December 31, 2011 and 2010, respectively.
NOTE: The Notes to Financial Statements are an integral part of these statements.
Financial StatementS
Statements of
Cash Flows
YEARS ENDED DECEMBER 31
2012 & 2011
cAsh flows from operAting Activities
2012 ($)
2011 ($)
Net Income
1 , 1 92 ,2 5 3
1,900,300
Non-Cash Items Included in Net Income
depreciation & amortization
85, 8 9 5
1 08,9 9 8
provision for possible loan losses
68 8,200
348,000
net amortization of available-for-Sale Securities
42 2,3 7 5
6 7,42 0
gain on Sale of available-for-Sale Securities
(7,872)
(72,500)
Stock-based compensation expense
34,434
1 3 8 ,7 4 2
8
increase in cash Surrender Value of Bank-owned life insurance
(43,175)
—
(Increase) Decrease in
loans Held for Sale
accrued interest receivable
Other Assets
Increase (Decrease) in
other accrued expenses
accrued interest payable
(649, 329)
(2,0 1 4,949)
(87 ,826)
(2 , 1 5 7)
49,5 7 9
1 2 5, 1 0 2
(3,758)
47, 8 1 7
1 1 , 2 1 0
(1 2, 5 93)
net cash prOVided by Operating actiVities
1,69 1 , 98 6
634, 1 80
NOTE: The Notes to Financial Statements are an integral part of these statements.
Freedom Bank oF Virginia • 2012 annual report cAsh flows from investing Activities
2012 ($)
2011 ($)
Federal Funds Sold (net)
(3,035,000)
1 ,459,000
Interest Bearing Deposit with Banks
(8,66 7)
(1,007, 339)
loan organizations (net)
(1 7,983 , 1 96)
(14,378,457)
purchase of available-for-Sale Securities
(1 1 , 223,645)
maturities, calls & paydowns of Securities available-for-Sale
10,330, 5 73
8 1 4, 8 7 8
proceeds from Sales of Securities available-for-Sale
2, 1 39,5 6 7
1 ,072,500
purchase of Bank-owned life insurance
(2,000,000)
—
paydowns of Held-to-maturity Securities
3 1 7,5 3 6
1 ,338,3 3 7
purchase of Federal reserve Bank Stock
(57,300)
(73 , 750)
acquisition of Bank equipment
(7 1 ,5 38)
(7,0 8 1 )
net cash used by inVesting actiVities
(36,554,306)
(22,005,5 57)
cAsh flows from finAncing Activities
9
increase in deposits (net)
common Stock issuance
29,429,420
34,023, 3 5 9
1 88,9 6 2
34, 7 2 5
net cash prOVided by financing actiVities
29,6 1 8,3 8 2
34,058,084
net (decreAse) increAse in
cAsh & due from bAnks
(5,243,9 3 8)
1 2,686,70 7
cash & due frOm banks (beginning Of year)
1 6, 1 28,03 2
3,44 1 , 32 5
cash & due frOm banks (end Of year)
10,884,094
1 6,1 28,03 2
NOTE: The Notes to Financial Statements are an integral part of these statements.
Financial StatementS
noncAsh investing Activity
2012 ($)
2011 ($)
unrealized gain On securities
aVailable-fOr-sale (net)
1 5 1 ,03 3
48,6 1 7
supplementAl informAtion
cash paid during the year fOr interest
1,997,443
1 ,874,4 2 1
cash paid during the year fOr incOme taxes
1 60,000
80,000
10
NOTE: The Notes to Financial Statements are an integral part of these statements.
Freedom Bank oF Virginia • 2012 annual report
Notes to Financial Statements
DECEMBER 31
2012 & 2011
1. Nature of Operations & Summary of Significant Accounting Policies
The accounting and reporting policies of The Freedom Bank of Virginia (the Bank) conform to generally accepted
accounting principles (GAAP) and reflect practices of the banking industry. The policies are summarized below.
Nature of operatioNs
The Freedom Bank of Virginia is a state chartered bank and a member of the Federal Reserve and is subject to the rules
and regulations of the Virginia State Banking Commission, the Federal Reserve and the Federal Deposit Insurance
Corporation (FDIC). The Bank provides banking services at its branch offices in Vienna and Fairfax, Virginia, and serves
customers primarily in the Northern Virginia area. The Bank was in organization during the period January 27, 2000
through July 22, 2001, and opened for business on July 23, 2001.
use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires manage-
ment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of con-
tingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from those estimates.
The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible
to significant changes in the economic environment and market conditions. In connection with the determination of the
estimated losses on loans, management obtains independent appraisals for significant collateral.
11
iNterest BeariN g Deposits with BaNks
The Bank maintains an interest bearing deposit with another institution in Virginia. Interest bearing deposits are valued
at cost. Interest income is recorded as interest income on investment securities.
securities
Debt securities are classified as held-to-maturity when the Bank has the positive intent and ability to hold the securities
to maturity. Securities held-to-maturity are carried at amortized cost.
Debt securities not classified as held-to-maturity or trading securities are classified as available-for-sale. Securities avail-
able-for-sale are carried at fair value with unrealized gains and losses reported in other comprehensive income. Realized
gains (losses) on securities available-for-sale are included in other income (expense) and, when applicable, are reported as
a reclassification adjustment, net of tax, in other comprehensive income.
The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating
the interest method over the period to maturity. Declines in the fair value of individual held-to-maturity and available-
for-sale securities below their cost that are deemed to be other than temporary result in write-downs of the individual
securities to their fair value. The related write-downs are included in earnings as realized losses. Gains and losses on sales
of securities are recorded on the trade date and are determined using the specific-identification method.
Federal Reserve stock is considered a restricted investment security, is carried at cost and is evaluated annually for
impairment. The stock is required in order to be a member of the Federal Reserve.
LoaNs aND LoaN fees
Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally
are stated at the principal amount outstanding, less the allowance for loan losses and net deferred loan fees. Interest on
loans is generally computed using the simple interest method.
Financial StatementS Loan origination and commitment fees, as well as certain direct origination costs, are deferred and amortized as a yield
adjustment over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued
when a loan is placed on non-accrual status.
The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent,
unless the credit is well secured and in process of collection. Other personal loans are typically charged off no later than
180 days past due. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal
or interest is considered doubtful.
All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest
income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for
return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are
brought current and future payments are reasonably assured.
LoaNs heLD for saLe
Loans held for sale consist primarily of residential mortgage loans, which are secured by one-to-four family residential
real estate. Loans held for sale are carried at the lower of aggregate cost, net of purchase discounts or premiums, deferred
fees, and deferred origination costs, or fair value. The Bank sells its mortgage loans forward to investors and the estimated
fair value is largely dependent upon the terms of these outstanding loan purchase commitments, as well as movement
in market interest rates. Income from loans sold is included in service charges and other income on the financial state-
ments. Income from loans sold was $564,431 and $290,709 for the years ended December 31, 2012 and 2011, respectively.
aLLowaNce for LoaN Losses
The allowance for loan losses is maintained at a level that, in management’s judgment, is adequate to absorb credit losses
inherent in the loan portfolio. The amount of the allowance is based on management’s ongoing evaluation of the collect-
ability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience,
specific impaired loans, economic conditions, and other risks inherent in the portfolio.
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable
to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agree-
ment. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated
cash flows. Although management uses available information to recognize losses on loans, because of uncertainties
associated with local economic conditions, collateral values, and future cash flows on impaired loans, it is reasonably
possible that a material change could occur in the allowance for loan losses in the near term. However, the amount of the
change that is reasonably possible cannot be estimated. The allowance is increased by a provision for loan losses, which is
charged to expense and reduced by charge-offs, net of recoveries. Changes in the allowance relating to impaired loans are
charged or credited to the provision for loan losses. Past due status is determined based on contractual terms.
BaNk premises aND equipmeNt
Bank premises and equipment are stated at cost, less accumulated depreciation and amortization. Leasehold improve-
ments are amortized over the shorter of the asset life or lease term using the straight-line method. Furniture and
equipment are depreciated over estimated useful lives of three to seven years using the straight-line method. The Bank
depreciates premises and equipment using accelerated methods for income tax reporting.
Expenditures for maintenance, repairs and improvements that do not materially extend the useful lives of bank premises
and equipment are charged to earnings. When bank premises or equipment are sold or otherwise disposed of, the cost
and related accumulated depreciation or amortization are removed from the accounts, and the effect is reflected in
current earnings.
Leases that meet certain specified criteria are accounted for as capital assets and liabilities, and those not meeting the
criteria are accounted for as operating leases.
12
Freedom Bank oF Virginia • 2012 annual report other reaL e state owNeD
Real estate properties acquired through or in lieu of loan foreclosures are initially recorded at the fair value less esti-
mated selling cost at the date of foreclosure. Any write-downs based on the asset’s fair value at the date of acquisition are
charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management and
property held for sale is carried at the lower of the new cost basis or fair value less cost to sell. Impairment losses on prop-
erty to be held and used are measured as the amount by which the carrying amount of a property exceeds its fair value.
Costs of significant property improvements are capitalized, whereas costs relating to holding property are expensed.
The portion of interest costs relating to development of real estate is capitalized. Valuations are periodically performed
by management, and any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the
carrying value of a property to the lower of its cost or fair value less cost to sell. The Bank owned no other real estate at
December 31, 2012 and 2011.
other assets
Included in other assets is approximately $604,000 and $739,000 as of December 31, 2012 and 2011, respectively, of pre-
paid expense related to the required prepayment of the FDIC premium through the fourth quarter of 2012.
BaNk-owNeD Life iNsura Nce
The Bank entered into bank-owned life insurance policies during 2012 that are maintained by two counterparties. Under
the bank-owned life insurance policies, executives or other key individuals are the insured and the Bank is the owner and
beneficiary of each policy. As such, the insured has no claim to either the insurance policy, cash value, or a portion of the
policy’s death proceeds. The increase in the cash surrender value over time is recorded as other non-interest income. The
Bank monitors the financial strength and condition of both counterparties.
stockhoLDers’ equity
At December 31, 2012, warrants were outstanding and exercisable to purchase 278,507 shares of common stock at $11.04
per share if exercised by January 15, 2015, and 53,880 shares of common stock at $11.04 per share if exercised by February
16, 2015. The amounts and number of warrants have been adjusted for the six-for-five stock split that was effective on
February 16, 2012.
13
Comprehensive income represents all changes in equity that result from recognized transactions and other economic
events of the period. Other comprehensive income refers to revenues, expenses, gains and losses that under accounting
principles generally accepted in the United States of America are included in comprehensive income but excluded from
net income, such as unrealized gains and losses on certain investments in debt and equity securities.
iNcome taxes
Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes
currently due plus deferred taxes related primarily to differences between the basis of the net operating losses carryfor-
ward and allowance for loan losses. The deferred tax assets and liabilities represent the future tax return consequences
of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.
Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets
or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and
liabilities are adjusted through the provision for income taxes.
Management has determined that recent profitability and projections of future taxable income will be adequate to absorb
a portion of the Bank’s net operating loss carryforward included in the deferred tax asset.
The Bank files an income tax return in the U.S. Federal jurisdiction. The Bank pays state franchise tax in lieu of state
income taxes. Currently, the 2011, 2010 and 2009 income tax returns are open and subject to examination. The Bank is
not currently under audit by any income tax jurisdiction.
The Bank has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements, and no
interest and penalties have been recorded in the accompanying financial statements related to uncertain tax positions.
Financial StatementS earNiNgs per share (eps)
Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-
average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur
if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings of the Bank. The Bank does not have any contracts or options
with a dilutive effect; therefore, basic EPS and diluted EPS are equal.
stock-BaseD compeNsatioN
The Bank recognizes the cost of employee services received in exchange for an award of equity instruments in the finan-
cial statements over the period the employee is required to perform the services in exchange for the award (presumptively
the vesting period). The Bank also measures the cost of employee services received in exchange for an award based on the
grant-date fair value of the award.
empLoymeNt coNtracts
In August 2010, the Bank entered into an employment agreement with the Bank’s current President. The agreement
provides for a base salary, a performance bonus, annual adjustments to compensation and other benefits. The agreement
has an initial term of 17 months and will be automatically renewed for successive 12 month terms until employment is
terminated under specific conditions as provided in the agreement.
The Bank has also entered into employment agreements with certain other key employees. The agreements provide for
base salary, performance bonuses and other benefits. The terms of the agreements range from one to two years with op-
tions to extend for additional one year periods until employment is terminated under specific conditions as provided in
the agreements.
statemeNts of cash fLows
14
The Bank considers all cash and amounts due from banks, excluding interest-bearing deposits in other banks and Federal
funds sold, to be cash equivalents for purposes of the statements of cash flows. The Freedom Bank of Virginia periodi-
cally has bank deposits, including short-term investments, in excess of Federally insured limits.
off-BaLaNce sheet creDit reLateD fi NaNciaL iNstrumeNts
In the ordinary course of business, the Bank has entered into commitments to extend credit, including commitments
under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments
are recorded when they are funded.
suBsequeNt eveNts
The date to which events occurring after December 31, 2012, the date of the most recent balance sheet, have been evalu-
ated for possible adjustment to the financial statements or disclosure is March 20, 2013, which is the date on which the
financial statements were available to be issued.
2. Restriction of Cash & Due From Banks
The Bank is required to maintain reserve funds in cash or on deposit with the Federal Reserve. The required reserve at
December 31, 2012 and 2011 was $1,024,000 and $712,000, respectively.
Freedom Bank oF Virginia • 2012 annual report
3. Securities Available-for-Sale & Held-to-Maturity
The amortized cost and fair values of securities as shown in the balance sheets of the Bank are as follows:
Amortized costs
($)
gross unreAlized
gAins ($)
gross unreAlized
losses ($)
fAir vAlue ($)
dec. 31, 2012
Available-for-Sale
u.S. gov’t & agency Securities
2,500,000
24,2 3 3
corporate Securities
1,75 8,685
7 1 ,0 1 6
—
—
2,524,23 3
1,829, 70 1
mortgage-backed Securities
19,22 7, 7 70
295,9 1 5
(3 9, 1 3 4)
19,484,55 1
municipal Securities
534,4 7 8
1 5,9 6 2
SBa loan pools
4,2 57 , 1 5 5
7 1 , 7 1 5
—
—
550,440
4,328,870
tOtal aVailable-fOr-sale
28,278,08 8
478,8 4 1
(39,1 34)
28, 7 1 7,795
Held-to-Maturity
mortgage-backed Securities
348, 6 1 6
8,03 6
—
356,652
15
tOtal inVestment securities
28,626,704
486,87 7
(3 9, 1 34)
29,074,447
dec. 31, 2011
Available-for-Sale
u.S. gov’t & agency Securities
4,000,000
32,4 5 1
—
4,032, 45 1
corporate Securities
2,036,3 5 9
42, 7 1 9
(7,2 92)
2,07 1 ,7 8 6
mortgage-backed Securities
8,940,09 2
149, 3 8 3
(9, 9 1 4)
9,079, 56 1
tOtal aVailable-fOr-sale
14,976,4 5 1
224,55 3
(1 7,206)
1 5,1 83,798
Held-to-Maturity
mortgage-backed Securities
666, 1 5 2
23,206
—
689,3 58
tOtal inVestment securities
15,642,60 3
247,75 9
(1 7,206)
15,873,1 5 6
Financial StatementS
The amortized cost and estimated fair value of debt securities at December 31, 2012, by contractual maturity, are as follows:
Amounts Maturing in:
1 Year or less
after 1 Year - 5 Years
after 5 Years - 10 Years
after 10 Years
AvAilAble-for-sAle
held-to-mAturity
Amortized costs
($)
gross unreAlized
gAins ($)
gross unreAlized
losses ($)
fAir vAlue ($)
8 1 3, 03 5
828, 65 8
3,44 5, 650
3,525 , 276
5 34 ,478
550,440
4,25 7, 1 5 5
4,3 28,8 70
9,050,3 1 8
9,233,24 4
—
—
—
—
—
—
—
—
—
—
mortgage-backed Securities
19,227,7 70
1 9,48 4, 5 5 1
348,616
356,652
28, 278,08 8
28, 7 1 7,795
348,616
356,652
16
Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obliga-
tions with or without call or prepayment penalties.
At December 31, 2012 and 2011, U.S. Government and agency securities and mortgage backed securities with a carrying
value of $19,804,687 and $6,897,234, respectively, were pledged to secure public deposits and for other purposes required
or permitted by law.
Information pertaining to securities with gross unrealized losses at December 31, 2012, aggregated by investment category
and length of time that individual securities have been in a continuous loss position, is as follows:
less thAn twelve months
over twelve months
gross unreAlized
losses ($)
fAir vAlue ($)
gross unreAlized
losses ($)
fAir vAlue ($)
Available-for-Sale
corporate Securities
—
—
mortgage-backed Securities
39, 134
2,245,542
Held-to-Maturity
mortgage-backed Securities
—
—
—
—
—
—
—
—
Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently
when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the
extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer,
and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for
any anticipated recovery in fair value.
Freedom Bank oF Virginia • 2012 annual report
At December 31, 2012, four debt securities with an unrealized loss for less than one year depreciated less than two percent
from the Bank amortized cost basis. The securities are secured by mortgage loans. These unrealized losses relate
principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management
considers whether the securities are issued by the Federal government or its agencies, whether downgrades by bond rating
agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to
hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, management feels that
the unrealized losses on the securities are not deemed to be other-than-temporary.
4. Loans Receivable
Loans receivable include the following:
commercial
consumer & other
Real Estate
subtOtal
deferred loan Fees
tOtals
2012 ($)
2011 ($)
37,6 1 5 , 0 1 3
36,236,920
5,39 5 , 1 0 5
1 ,6 8 7 ,1 04
1 29, 1 80 , 1 6 2
1 1 6 ,773,498
17 2,1 90,2 80
154,697, 522
(288,433)
(290,329)
17 1 ,90 1 ,8 47
154,407, 193
17
Commercial and industrial loans: The commercial lending portfolio consists primarily of commercial and industrial
loans for the financing of accounts receivable, property, plant and equipment. Commercial loans typically are made
on the basis of the borrower’s ability to repay the loan from the cash flow from its business and are secured by business
assets, such as commercial real estate, accounts receivable, equipment and inventory, the values of which may fluctuate
over time and generally cannot be appraised with as much precision as residential real estate. To manage these risks, the
Bank’s policy is to secure commercial loans originated with both the assets of the business, which are subject to the risks
described above, and other additional collateral and guarantees that may be available.
Real estate - commercial loans: Commercial real estate loans are primarily secured by various types of commercial real
estate, including office, retail, warehouse, industrial and other non-residential types of properties and are made to the
owners and/or occupiers of such property. The repayment of loans secured by income-producing properties is typically
dependent upon the successful operation of a business or real estate project, and thus may be subject to adverse condi-
tions in the commercial real estate market or in the general economy. The Bank generally requires personal guarantees
or endorsements with respect to these loans and loan-to-value ratios for commercial real estate loans, which generally do
not exceed 80 percent.
Real estate - residential and home equity loans: This portfolio consists of residential first and second mortgage loans,
residential construction loans and home equity lines of credit and term loans secured primarily by the residences of
borrowers. Residential mortgage loans and home equity lines of credit secured by owner-occupied property generally are
made with a loan-to-value ratio of up to 80 percent.
An analysis of the allowance for possible loan losses based on type or loan segment, which identifies certain loans that
are evaluated for individual or collective impairment, as of December 31 is as follows:
Financial StatementS commerciAl
reAl estAte-
reAl estAte-
reAl estAte-
& industriAl
($)
commerciAl
($)
construction
($)
residentiAl
($)
consumer
($)
unAllocAted
($)
totAl ($)
2012
Allowance for Possible Loan Losses
Beginning Balances
274,35 2
1 , 1 76, 1 35
258,405
300, 1 90
1 3,879
14,203
2,037, 1 64
charge-offs
—
—
(488,542)
—
—
—
—
—
—
—
—
—
(488,542)
—
provision
105,680
533,700
57,7 1 3
(29,549)
34,859
(14,203)
688,200
ending balance
380,032
1,221,293
3 1 6,1 1 8
270,64 1
48,738
—
2,236,822
individually evaluated for impairment
100,923
1 85,672
—
65,239
1 ,8 1 2
—
353,646
collectively evaluated for impairment
279,109
1,035,62 1
31 6, 1 1 8
205,402
46,926
—
1 ,883, 1 76
Loans Receivable
ending balance
37,615,0 1 3
92,966,709
10,386,789
25,826,664
5,395,105
—
172,1 90,280
individually evaluated for impairment
489,783
1 ,63 1,300
1 , 23 1 ,029
391 ,964
6,1 82
—
3,750,258
18
collectively evaluated for impairment
3 7, 1 25,230
9 1 , 335,409
9, 1 55,760
25,434,700
5,388,923
—
168,440,022
2011
Allowance for Possible Loan Losses
Beginning Balances
250,804
770,680
33 1 ,626
293,370
2 1 ,474
67,399
1, 735,353
charge-offs
recoveries
provision
(30,982)
32,0 1 1
—
—
(49,000)
1 , 782
—
—
—
—
—
—
(79,982)
33,793
22,5 1 9
405,455
(26,003)
6,820
(7,595)
(53,196)
348,000
ending balance
274,35 2
1 , 1 76,1 35
258,405
300,190
13,879
14,203
2,037,1 64
individually evaluated for impairment
—
3 1 4,422
—
72,073
—
—
386,495
collectively evaluated for impairment
274,35 2
86 1 ,7 1 3
258,405
228,117
1 3,879
14,203
1,650,669
Loans Receivable
ending balance
36,236,920
85,3 19,24 1
13,708,236
17,746,021
1,687, 104
—
154,697,522
individually evaluated for impairment
506,313
3,1 85,232
1 ,400,1 25
—
367,073
—
5,458,743
collectively evaluated for impairment
35,730,607
82, 1 34,009
1 2, 308,1 1 1
17,746,021
1 ,320,03 1
—
149,238,779
Freedom Bank oF Virginia • 2012 annual report
An analysis of non-accrual and past due loans is as follows at December 31:
30-59 dAys
pAst due ($)
60-89 dAys
pAst due ($)
more pAst due
($)
totAl
pAst due ($)
current ($)
finAncing re-
ceivAbles ($)
nonAccruAl
loAns ($)
90 dAys or
totAl
2012
Commercial Non-Real Estate
commercial & industrial
Commercial Real Estate
owner occupied
non-owner occupied
Construction
Residential
commercial
Consumer Non-Real Estate
automobile
Other
Residential
First trusts
equity lines
tOtal
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
37,615,013
37,615,013
489,78 3
—
35,690,444
35,690,444
—
57,276,265
57,276,265
—
—
—
9,273,622
9,273,622
1 ,23 1 ,02 9
—
1 , 1 1 3 , 1 6 7
1 ,1 1 3 ,1 6 7
—
6,182
6,182
272,759
278,941
6, 1 8 2
19
—
—
—
5,1 1 6 ,1 6 4
5 ,11 6 ,1 64
—
17,533,926
17,53 3,926
—
—
39 1,964
39 1,964
7,900,774
8,292,738
39 1 , 964
398,146
398,146
171,792,134
172,190,280
2,1 1 8,958
Financial StatementS
30-59 dAys
pAst due ($)
60-89 dAys
pAst due ($)
more pAst due
($)
totAl
pAst due ($)
current ($)
finAncing re-
ceivAbles ($)
nonAccruAl
loAns ($)
90 dAys or
totAl
2011
Commercial Non-Real Estate
commercial & industrial
—
—
—
—
36,236,920
36,236,920
506,3 1 3
Commercial Real Estate
owner occupied
41 8,403
288,249
978,838
1,685,490
3 1 ,1 96,99 1
32,882,48 1
978,838
non-owner occupied
Construction
Residential
commercial
Consumer Non-Real Estate
20
automobile
Other
Residential
First trusts
equity lines
—
—
—
—
1,428
—
—
—
—
—
—
—
—
—
—
—
—
52,436,759
52,436,759
—
—
8,6 1 6,200
8,6 16,200
1,400,1 25
575,094
575,094
4,5 1 6,942
5,092,036
575,094
—
—
—
—
329,689
329,689
1,428
1,355,987
1,357,4 1 5
—
9,330,217
9,330,217
—
—
—
367,073
367,073
8,048,732
8,415,805
367,073
tOtal
419,83 1
288,249
1,921,005
2,629,085
152,068,437
154,697,522
3,827,443
Freedom Bank oF Virginia • 2012 annual report
An analysis of impaired loans based on loan segment is as follows at December 31:
recorded
investment ($)
unpAid
principAl
bAlAnce ($)
relAted
AllowAnce for
loAn losses ($)
AverAge
recorded
investment ($)
interest
income
recognized ($)
2012
With No related Allowance Recorded
Construction
Residential
With an Allowance Recorded
Commercial Non-Real Estate
1,231,029
1,23 1,029
—
1,388,575
commercial & industrial
489,783
489,783
100,923
497,204
Commercial Real Estate
—
—
non-owner occupied
1,63 1,300
1,631,300
185,672
1,631,300
82,924
398,146
398,146
67,05 1
414,028
2,069
Consumer
tOtal
commercial non-real estate
489,783
489,783
100,923
497,204
residential construction
1,231,029
1,231,029
—
1,388,575
commercial real estate
1,63 1,300
1,631,300
185,672
1,631,300
82,924
Consumer
398,146
398,146
67,05 1
414,028
2,069
21
—
—
Financial StatementS
recorded
investment ($)
unpAid
principAl
bAlAnce ($)
relAted
AllowAnce for
loAn losses ($)
AverAge
recorded
investment ($)
interest
income
recognized ($)
2011
With No related Allowance Recorded
Commercial Non-Real Estate
commercial & industrial
506,3 1 3
506,3 1 3
—
514,397
Construction
Residential
With an Allowance Recorded
Commercial Real Estate
1,400,1 25
1,400,1 2 5
—
1,501,502
—
—
owner occupied
978,838
978,83 8
38,750
982,930
43,5 1 1
non-owner occupied
2,206,394
2,781,488
275,672
2,203,121
90,707
22
Consumer
tOtal
367,073
367, 252
72,073
367,252
2,380
commercial non-real estate
506,3 1 3
506,3 1 3
—
514,397
—
commercial real estate
3,185,232
3,760,326
314,422
3,186,05 1
134,2 1 8
construction
Consumer
1,400,1 25
1,400,1 2 5
—
1,501,502
—
367,073
367,25 2
72,073
367,252
2,380
No additional funds are committed to be advanced in connection with the impaired loans.
One of the most significant factors in assessing the Bank’s loan portfolio is the risk rating. The Bank uses the following
risk ratings to manage the credit quality of its loan portfolio: pass, special mention, substandard, doubtful and loss.
Special mention loans are those loans that have potential weakness that deserves management’s close attention. These
loans have potential weaknesses that may result in deterioration of the repayment prospects for the loan or the Bank’s
credit position at some future date. Substandard loans are inadequately protected by current sound worth, paying
capacity of the borrower, or pledged collateral. Doubtful loans have all the inherent weaknesses in the substandard
classification and collection or liquidation in full is highly questionable. Loss loans are considered uncollectible and of
such little value that continuance as an active asset is not warranted. All other loans not rated are considered to have a
pass rating.
Freedom Bank oF Virginia • 2012 annual report
An analysis of the credit quality indicators is as follows at December 31:
pAss ($)
speciAl
mention ($)
substAndArd ($)
doubtful ($)
loss ($)
2012
Commercial Non-Real Estate
commercial & industrial
35,8 18,776
1 ,306,454
489,783
Commercial Real Estate
owner occupied
3 1 ,000,674
4,689,769
—
non-owner occupied
48,590,585
5,079,38 1
3,606,300
Construction
Residential
commercial
Consumer Non-Real Estate
automobile
Other
Residential
First trusts
equity lines
8,042,593
1 , 1 1 3, 1 67
272,759
5 ,1 1 6,164
1 7,533,927
—
—
—
—
—
1,231,029
—
6,182
—
—
7,799,592
101 ,180
391,965
tOtal
155,288,237
11,1 76,784
5,725,259
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Financial StatementS
pAss ($)
speciAl
mention ($)
substAndArd ($)
doubtful ($)
loss ($)
2011
Commercial Non-Real Estate
commercial & industrial
35,268,280
462,327
506,3 13
Commercial Real Estate
owner occupied
28,301,984
3,601,659
978,838
non-owner occupied
43,806,859
4,723,506
3,906,394
Construction
Residential
commercial
Consumer Non-Real Estate
7, 2 1 6,075
5,092,036
—
—
24
automobile
328,952
737
Other
Residential
First trusts
equity lines
1 , 357,41 5
9,330,21 7
8,048,732
—
—
—
1,400,1 25
—
—
—
367,073
tOtal
138,750,550
8,788,229
7, 158,743
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
A loan modification is classified as a troubled debt restructuring (TDR) if both of the following exist: 1) the borrower is
experiencing financial difficulty, and 2) the Bank has granted a concession to the borrower. The assessment of whether
the above conditions exist is subjective and requires management’s judgment. TDRs are typically modified through
reductions in interest rates, reduction in payments, changing the payment terms or through extensions in term maturity.
Freedom Bank oF Virginia • 2012 annual report
There were no loans modified as TDRs for the year ended December 31, 2012. An analysis of troubled debt restructurings
at December 31, 2011 is as follows:
number of
contrActs ($)
pre-modificAtion
outstAnding
recorded
investment($)
post-modificAtion
outstAnding
recorded
investment($)
commercial & industrial
commercial real estate
2
1
590,963
1,631,300
590,963
1,631,300
The 2011 TDRs are performing as expected post-modification with one of the loans remaining on nonaccrual. The Bank
has no additional funds committed to be advanced in connection with the troubled debt restructured loans.
The Bank has entered into transactions with certain directors, executive officers, significant stockholders and their
affiliates. Such transactions were made in the ordinary course of business on substantially the same terms and condi-
tions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other
customers and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable
features. The aggregate amount of loans outstanding to such related parties was $3,028,477 and $3,204,093 at December
31, 2012 and 2011, respectively. New loans made to such related parties, including loans held by new directors, amounted
to $425,544 and $3,116,244 and payments amounted to $601,160 and $3,548,807 at December 31, 2012 and 2011, respectively.
5. BANK PREMISES AND EQUIPMENT
Bank premises and equipment include the following:
25
Furniture & equipment
leasehold improvements
Software
tOtal cOst
less accumulated depreciation
2012 ($)
2011 ($)
1,1 52,437
1 33,489
30 1 ,762
1,084,629
1 30,959
300,562
1,587,688
1 , 5 1 6, 150
(1,388,188)
(1,302,293)
net bank premises & equipment
199,500
2 1 3, 857
Depreciation and amortization of bank premises and equipment charged to expense amounted to $85,895 and $108,998
in 2012 and 2011, respectfully.
Financial StatementS 6. DEPOSITS
Time deposits in denominations of $100,000 or more totaled $100,591,201 and $79,879,691 at December 31, 2012
and 2011, respectively.
The following are time deposits maturing in years ending December 31:
2013
2014
2015
2016
2017 & thereafter
tOtal
$94,3 15,858
2 3,040,81 0
2,593,337
1 7,94 1 , 078
1 ,664,406
$139,555,489
The Bank held related party deposits of approximately $5,581,000 and $3,921,000 at December 31, 2012 and 2011, respectively.
26
7. BORROWINGS
At December 31, 2012 and 2011, the Bank had $2,100,000 available under a line of credit Fed Funds facility to be used for
temporary, short-term needs with borrowing not to exceed seven consecutive business days. There were no borrowings
on this line at December 31, 2012 and 2011.
At December 31, 2012 and 2011, the Bank had an additional $2,000,000 available under a line of credit Fed Funds facility
to be used for temporary, short-term needs with borrowings not to exceed 30 consecutive calendar days. There were no
borrowings on this line at December 31, 2012 and 2011.
Freedom Bank oF Virginia • 2012 annual report 8. INCOME TAXES
Significant components of deferred income tax assets and liabilities are as follows at December 31:
deferred source
2012 ($)
2011 ($)
net operating loss carryforward
14,000
490,000
loan loss reserve
1,223,000
1 ,1 5 1,000
unearned loan Fees & costs (net)
98,000
99,000
depreciation
(19,000)
(17,000)
grOss deferred tax assets
1,316,000
1,723,000
Valuation allowance
(704,000)
( 1 ,111,000)
net deferred tax assets
612,000
612,000
The Bank has net operating losses carried forward of approximately $42,000 at December 31, 2012, which start to expire
in 2029. The Bank had a current year net operating loss carryforward benefit of $476,000.
27
The provision for income taxes consists of the following at December 31:
current tax expense
deferred tax expense
2012 ($)
2011 ($)
—
—
407,000
645,000
change in Valuation allowance
(407,000)
(645,000)
—
—
Financial StatementS The following is a reconciliation of the Federal statutory income tax rate to the effective tax rate as a percent of pre-tax
income for the years ended December 31:
Federal Statutory rate
permanent differences
change in Valuation allowance
effective tax rate
2012 (%)
2011 (%)
34%
—
(34)
0%
34%
—
(34)
0%
9. CAPITAL REQUIREMENTS
28
The Bank is subject to various regulatory capital requirements administered by Federal banking agencies. Failure to
meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by
regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital
adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital
guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated
under regulatory accounting practices. The Bank’s capital amounts and classification under the prompt corrective action
guidelines are also subject to qualitative judgments by the regulators about components, risk weightings and other fac-
tors.
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum
amounts and ratios of total risk-based capital and Tier 1 capital to risk-weighted assets (as defined in the regulations), and
Tier 1 capital to adjusted total assets (as defined). Management believes, as of December 31, 2012, that the Bank meets all
the capital adequacy requirements to which it is subject.
As of December 31, 2012, the Bank was categorized as well capitalized under the regulatory framework for prompt correc-
tive action. To remain categorized as well capitalized, the Bank will have to maintain minimum total risk-based, Tier 1
risk-based, and Tier 1 leverage ratios as disclosed in the following table. There are no conditions or events since the most
recent notification that management believes have changed the Bank’s prompt corrective action category.
Freedom Bank oF Virginia • 2012 annual report The Bank’s actual capital amounts and ratios as of December 31, 2012 and 2011 are as follows:
ActuAl
for cApitAl
AdequAcy purposes
minimum to be well
cApitAlized under
prompt corrective
Action provisions
Amount ($)
rAtio (%)
Amount ($)
rAtio (%)
Amount ($)
rAtio (%)
dec. 31, 2012
total capital (to risk weighted assets)
25,264,09 1
13.95
14,484,880
8.00
18,106,100
10.00
tier 1 capital (to risk weighted assets)
24,978,282
13.80
7,242,440
4.00
10,863,660
6.00
tier 1 capital (to average assets)
24,978,282
1 1.48
8,700,8 1 6
4.00
10,876,080
5.00
dec. 31, 2011
total capital (to risk weighted assets)
23,697,402
14.52
13,058,320
8.00
16,322,900
10.00
29
tier 1 capital (to risk weighted assets)
23,562,626
14.44
6,529,1 60
4.00
9,793,740
6.00
tier 1 capital (to average assets)
23,562,626
12.85
7,335,889
4.00
9,169,8 6 1
5.00
Financial StatementS
10. STOCK OPTION PLAN
In 2007, the Bank established the 2007 stock option and equity plan (the Plan) for executives, other employees, officers,
directors and consultants. Shares under the Plan may be granted at not less than 100 percent of the fair market value at
the grant date. The authorized and granted options under the Plan are as follows:
2007 plan
480,000
374,220
335,250
Authorized
grAnted
vested
The stock options shall not be exercisable more than ten years after the date such option is granted. Shares typically vest
over periods ranging from one to four years. At December 31, 2012, there was no unrecognized compensation expense
related to non-vested share-based compensation due to materiality.
Amounts and the number of options have been retrospectively adjusted for the six-for-five stock split that was effective
on February 16, 2012. The Bank canceled and reissued stock options granted in 2007.
The following summarizes the option activity under the Stock Option Plan:
30
outstAnding
(dec. 31, 2010)
Grants
exercised
canceled or expired
outstAnding
(dec. 31, 2011)
Grants
exercised
canceled or expired
outstAnding
(dec. 31, 2012)
number of
shAres ($)
option price
per shAre ($)
AverAge exercise
price ($)
179,280
183,000
—
—
362,280
1 10,820
—
(98,880)
10.58
8.28
—
—
9.42
8.64
—
1 2.2 1
—
8.28
—
—
9.42
8.64
—
1 2.2 1
374,220
8.45
8.45
Freedom Bank oF Virginia • 2012 annual report
The weighted average fair value of options granted during the year ended December 31, 2012 was $1.19. The weighted
average remaining contractual life of options outstanding as of December 31, 2012 is 9.5 years.
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as
expense on a straight-line basis over the requisite service period, which is the vesting period. The Bank uses the Black-
Scholes option pricing model to determine the fair value of stock options. The fair value of the stock based payment
awards is affected by the price of the stock and a number of financial assumptions and variables. These variables include
the risk-free interest rate, expected dividend rate, expected stock price volatility and the expected life of the options. The
following assumptions were used: a risk-free interest rate of 3.25 percent, an estimated dividend yield of zero percent, an
expected holding period of 10 years and volatility of 5.00 percent.
The expected volatility is based on the historical volatility of peer institutions. The risk-free interest rate is the implied
yield available on U.S. Treasury bonds with a remaining term equal to the expected term of the options granted. The ex-
pected life is based on the average of the contracted life and vesting schedule for the options granted. The dividend yield
assumption is based on expected dividend payouts.
The Bank’s compensation plan for the Board of Directors provides for payments for attending regularly scheduled meet-
ings of the Board of Directors as well as subcommittee meetings in the form of Bank stock.
For the years ended December 31, 2012 and 2011, the Bank recognized stock-based compensation expense of $34,434 and
$138,742, respectively.
11. OPERATING LEASES
In December 2010, the Bank exercised its second five-year option for the branch facility located at 502 Maple Avenue in
Vienna, Virginia. The agreement provides for a term of five years ending December 2015. The total base annual lease
payments for the second year of the extension are $66,774, increasing a maximum of five percent per annum thereafter.
The lease agreement includes approximately 1,862 square feet on the ground floor for the branch facility. The lease
agreement includes additional rent payments based on a pro rata portion of annual taxes and common area maintenance
charges.
31
In July 2011, the Bank renewed its lease for its loan operations on the second floor at 10555 Main Street in Fairfax, Virginia.
The agreement provides for an initial lease term of approximately five years commencing August 1, 2011 and ending July
31, 2016. Total base annual lease payments are $148,764 for the first year, increasing three percent per annum thereafter.
The lease agreement is for 6,072 square feet. The lease provides the right to renew for one period of five additional years
with the base rent at the current market rate. The agreement includes additional rent payments based on a pro rata
portion of annual taxes, common area maintenance charges, and utilities.
In October 2004, the Bank entered into a lease for its headquarters and an additional branch facility at 10555 Main Street
in Fairfax, Virginia. The agreement provides for an initial lease term of 10 years commencing January 1, 2005 and ending
December 31, 2014. Total base annual lease payments are $168,056 for the first year, increasing a maximum of three
percent per annum thereafter. The lease agreement is for 6,002 square feet. The agreement includes additional rent
payments based on a pro rata portion of annual taxes, common area maintenance charges, and utilities.
Financial StatementS The following are the future minimum lease payments at December 31, 2012:
yeArs ending december 31
2013
2014
2015
2016
tOtal
$449,767
464,732
245,755
97,67 1
$1,257,925
Rent expense amounted to $440,405 and $454,993 for the years ended December 31, 2012 and 2011, respectively.
12. FAIR VALUE MEASUREMENTS
32
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measure-
ments and Disclosures, provides a framework for measuring fair value. That framework provides a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. Fair value focuses on the price that would
be received to sell the asset or paid to transfer the liability regardless of whether an observable liquid market price existed
(an exit price). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three
levels of the fair value hierarchy under FASB ASC 820 are described below:
Level 1 – inputs to the valuation methodology are based upon unadjusted quoted prices for identical assets or liabilities in
active markets that the Bank has the ability to access.
Level 2 – inputs to the valuation methodology include: quotes prices for similar assets or liabilities in active markets,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices
that are observable for the asset or liability, and market-corroborated inputs. If the asset or liability has a specified
(contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3
assets and liabilities measured at fair value are based on one or more of three valuation techniques (market, cost, or income
approach). The market approach evaluates prices and other relevant information generated by market transactions
involving identical or comparable assets or liabilities. The cost approach evaluates the amount that would be required to
replace the service capacity of an asset (i.e. replacement cost). The income approach uses techniques that convert future
amounts to a single present amount based on market expectations (including present value techniques, option-pricing
models, and lattice models).
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any
input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observ-
able inputs and minimize the use of unobservable inputs.
Freedom Bank oF Virginia • 2012 annual report
The following describes the valuation techniques used by the Bank to measure certain financial assets and liabilities
recorded at fair value on a recurring basis in the financial statements:
Securities available-for-sale: Securities available-for-sale are recorded at fair value on a recurring basis. Fair value
measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available,
fair values are measured utilizing independent valuation techniques of identical or similar securities for which signifi-
cant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile
prices from various sources and may determine the fair value of identical or similar securities by using pricing models
that considers observable market data (Level 2).
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as
of December 31, 2012:
quoted prices
in Active
mArkets for
identicAl Assets
(level 1) ($)
significAnt
other
observAble
inputs
(level 2) ($)
significAnt
unobservAble
inputs
(level 3) ($)
fAir vAlue ($)
dec. 31, 2012
available-for-Sale Securities
28,717,795
—
28,717,795
dec. 31, 2011
available-for-Sale Securities
15,183,798
—
15,183,798
—
—
33
Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to
the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of
individual assets.
The following describes the valuation techniques used by the Bank to measure certain financial assets recorded at fair
value on a nonrecurring basis in the financial statements:
Impaired loans: Loans are designated as impaired when, in the judgment of management based on current
information and events, it is probable that all amounts due according to the contractual terms of the loan agreement
will not be collected. The measurement of loss associated with impaired loans can be based on either the observable
market price of the loan or the fair value of the collateral. Fair value is measured based on the value of the collateral
securing the loans. Collateral may be in the form of real estate or business assets, including equipment, inventory and
accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined
utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed
appraiser outside of the Bank using observable market data (Level 2). However, if the collateral is a house or building
in the process of construction, or if an appraisal of the real estate property is over two years old, then the fair value is
considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the
net book value on the applicable business’ financial statements if not considered significant using observable market
data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances
or aging reports (Level 3). Impaired loans allocated to the allowance for loan losses are measured at fair value on a
nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the
statements of operations.
Financial StatementS
The following table summarizes the Bank’s financial assets that were measured at fair value on a nonrecurring basis as of
December 31:
quoted prices
in Active
mArkets for
identicAl Assets
(level 1) ($)
significAnt
other
observAble
inputs
(level 2) ($)
significAnt
unobservAble
inputs
(level 3) ($)
fAir vAlue ($)
dec. 31, 2012
impaired loans
3,750,258
—
3,396,6 1 2
353,646
dec. 31, 2011
impaired loans
5,458,743
—
5,072,248
386,495
The following methods and assumptions were used by the Bank in estimating fair values of financial instruments as
disclosed herein:
Cash and due from banks: The carrying amounts of cash and due from banks approximate their fair value.
34
Interest bearing deposits with banks: The carrying amounts of interest bearing deposits with banks payable on
demand, consisting of money market deposits, approximate fair value. Fair value of fixed-rate certificates of deposit
is estimated based on discounted cash flow analyses using the remaining maturity of the underlying accounts and
interest rates currently offered on certificates of deposit with similar original maturities.
Securities available-for-sale and held-to-maturity: Fair values for securities are based on quoted market prices, where
available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instru-
ments.
Loans held for sale: The carrying amount is the lower of aggregate cost or fair value. The estimated fair value is
dependent upon the terms of the outstanding loan purchase commitments as well as movement in market interest rates.
Loans receivable: For variable-rate loans that reprice frequently and have no significant change in credit risk,
fair values are based on carrying values. Fair values for certain mortgage loans (for example, one to four family
residential), credit card loans and other consumer loans are based on quoted market prices of similar loans sold in
conjunction with securitization transactions, adjusted for differences in loan characteristics. Fair values for business
real estate and business loans are estimated using a discounted cash flow analyses, using interest rates currently being
offered for loans with similar terms to borrowers of similar credit quality. Fair values for impaired loans are estimated
using discounted cash flows analyses or underlying collateral values, where applicable.
Accrued interest: The carrying amounts of accrued interest approximate fair value.
Deposits: The carrying amounts of deposit liabilities payable on demand, consisting of money market deposits and
saving deposits, approximate fair value. Fair value of fixed-rate certificates of deposit is estimated based on discount-
ed cash flow analyses using the remaining maturity of the underlying accounts and interest rates currently offered on
certificates of deposit with similar original maturities.
Off-balance sheet financial instruments: At December 31, 2012 and 2011, the fair values of loan commitments and
standby letters of credit are immaterial. Therefore, they have not been included in the following table.
Freedom Bank oF Virginia • 2012 annual report
The estimated fair values of the Bank’s financial instruments are as follows at December 31:
2012
2011
cArrying
Amount ($)
fAir vAlue ($)
cArrying
Amount ($)
fAir vAlue ($)
Financial Assets
cash & due from Banks
10,884,094
1 0,884,094
16,128,032
1 6,1 28,032
Interest Bearing Deposits with Banks
1 ,0 16,006
1 , 01 6,006
1 ,007,339
1,007,339
Federal Funds Sold
18, 788,000
1 8,788,000
1 5 ,753,000
15 , 753,000
Securities available-for-Sale
28,71 7,795
28 ,71 7,795
1 5 ,183,798
1 5 , 183,798
loans Held for Sale
3,656,829
3,656,829
3,007,500
3,007,500
Securities Held-to-maturity
348,6 1 6
356,652
666,1 5 2
689,358
loans receivable (net)
169,665,025
173,934,547
152,370,029
153,546,443
accrued interest receivable
607,276
607,276
5 1 9,450
51 9,450
Bank-owned life insurance
2,043,1 75
2,043 ,175
—
—
35
tOtal financial assets
235,726,81 6
240,004,374
204,635,300
205,834,920
Financial Liabilities
non-interest Bearing deposits
34,95 1 , 109
34,95 1 ,109
25,392,303
25,392,303
Interest Bearing Deposits
38,069,144
38,069,144
42,942,835
42,942,835
time deposits
139,555,489
1 3 7,310,039
1 1 4, 8 1 1 , 1 84
1 1 3,941 ,222
accrued interest payable
69,852
69,852
58,642
58,642
tOtal financial liabilities
21 2,645,594
210,400,144
183,204,964
182,335,002
Financial StatementS
13. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
In the normal course of business, the Bank has outstanding commitments and contingent liabilities, such as commit-
ments to extend credit and standby letters of credit, which are not included in the accompanying financial statements.
The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for
commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those
instruments. The Bank uses the same credit policies in making such commitments as it does for instruments that are
included in the balance sheets.
Financial instruments whose contract amount represents credit risk were approximately as follows:
commitments to extend credit
65,749,000
53,814,000
Standby letters of credit
899,000
1, 151 ,000
2012 ($)
2011 ($)
36
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition
established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may
require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total
commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s
creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon
extension of credit, is based on management’s credit evaluation. Collateral held varies, but may include accounts receiv-
able, inventory, property and equipment, and income-producing commercial properties.
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to
a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require
payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending
loan facilities to customers. The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the
same as that involved in making commitments to extend credit.
The Bank has not been required to perform on any financial guarantees during the past two years. The Bank has not
incurred any losses on its commitments in either 2012 or 2011.
Freedom Bank oF Virginia • 2012 annual report 14. RESTRICTION ON DIVIDENDS
The Bank is subject to certain restrictions on the amount of dividends that it may pay without prior regulatory approval.
At December 31, 2012 and 2011, capital was not available for payment of dividends.
15. DEFERRED BENEFITS
Effective July 1, 2002, the Bank adopted a contributory 401(k) savings plan covering substantially all employees, which
allows eligible employees to contribute up to 25 percent of their compensation. The Board of Directors may elect to
approve to match a portion of each employee’s contribution. The Bank elected to make a discretionary contribution of
$75,996 and $77,082 for the years ended December 31, 2012 and 2011, respectively.
In December 2012, the Bank adopted a directors’ deferred compensation plan. The plan became effective January 1, 2013.
There was no activity for 2012.
16. LEGAL CONTINGENCIES
Various legal claims can arise from time to time in the normal course of business which, in the opinion of management,
will have no material effect on the Bank’s financial statements.
37
Financial StatementS SHAREHOLDER &
COMPANY
INFORMATION
Board of direcTors
richard c. litman
Chairman
38
cynthia carter atwater
Corporate Secretary
daVid c. karlgaard, ph.d.
g. thOmas cOllins, jr.
michael a. miranda
terry l. cOllins, ph.d.
alVin e. nashman, ph.d.
h. jasOn gOld
jOhn t. rOhrback
nOrman p. hOrn
craig s. underhill
president & Chief Executive officer
Freedom Bank oF Virginia • 2012 annual report
Freedom Bank oF Virginia • 2012 annual report
execuTive officers
& senior ManageMenT
craig s. underhill
president &
Chief Executive officer
c. keVin curtis
Executive Vice president
Chief lending officer
debOrah a. free
Senior Vice president
Branch Administration officer
karin m. jOhns
Executive Vice president
Chief Financial officer
rObert d. willey, jr.
Executive Vice president
Commercial Banking
jOan e. liszka
Senior Vice president, human Resources
Assistant Corporate Secretary
coMMercial Banking
c. keVin curtis
Executive Vice president
Chief lending officer
NMlS# 1040247
james j. curry
Senior Vice president
james t. nelsOn, iii
Senior Vice president
michael j. underwOOd
Senior Vice president
stephen a. witt
Senior Vice president
Vishal m. gandhi
Vice president
michael a. marsden
Vice president
e. rObert musseman, jr.
Vice president
NMlS# 85152
39
loan adMinisTraTion
rObert d. willey, jr.
Executive Vice president
Senior Credit officer
kimberly j. ryman
Senior Vice president
Senior loan Administration & information officer
sally t. siVerOni
Vice president
portfolio Manager
SHareHolder & companY inFormation
james n. newsOme
Founding Chairman & CEo
2000-2003
Director Emeritus
jOhn f. carman
Founding Director &
Vice Chairman
2000-2006
In Memoriam
richard l. hall
Founding Director,
president, & Coo
2000-2003
In Memoriam
irVing bernstein
Founding Director
2000-2007
Director Emeritus
direcTors eMeriTus
With Deepest Appreciation for the
Directors Who Previously Served
william g. dukas
Founding Director
2000-2011
In Memoriam
geOrge c. dukas
Director
2002-2005
Director Emeritus
michael a. falke
Founding Director
2000-2002
timOthy p. hecht
Director
2005-2007
Director Emeritus
geOrge z. kOntzias
Director
2002-2006
Director Emeritus
advisory Board
russel e. sherman
Founding Director
2000-2007
In Memoriam
harry n. snyder, O.d.
Founding Director
2000-2007
james f. steffey
Founding Director
2000-2007
Director Emeritus
c. stephen templetOn
Founding Director
2000-2002
charles m. wright
Founding Director
2000-2002
Director Emeritus
arlene lyles pripetOn
daVid c. knapp
james f. steffey
darren bernstein
michael a. magnOtti
michael j. sulliVan
irVing bernstein
dOnald j. mayer
c. stephen templetOn
william c. bOgart
Owen michael mccall
thOmas j. tracy
lOuis m. cOcks, jr.
stephen w. mccarthy
stephen m. turner
jimmy b. cOntristan
usama h. misleh
rObert g. williams
jOhn r. herbert
elizabeth j. mOffett
charles m. wright
timOthy p. hecht
ali r. Oskuie
theOdOre a. yiannarakis
m. kurka
thOmas j. riley
40
Freedom Bank oF Virginia • 2012 annual report
MorTgage loan
geOrge j. decker
Vice president
Mortgage loan originator
NMlS# 525099
paige a. lutz
Mortgage loan originator
NMlS# 1052568
william t. rOgers
Mortgage loan originator
NMlS# 141858
fredric V. wilsOn
Mortgage loan originator
NMlS# 525100
operaTions
karin m. jOhns
Executive Vice president
Chief Financial officer
huMan resources, MarkeTing,
& shareholder relaTions
jOan e. liszka
Senior Vice president, human Resources
Assistant Corporate Secretary
41
Branches
debOrah a. free
Senior Vice president
Branch Administration officer
paula a. newsOme
Vice president
NMlS# 993276
karla V. wills
Vice president
g. VerOnika caVerO
Branch operations Manager
alfredO g. mOlina
Branch Manager
fBv capiTal advisors, inc.
rObert n. rubin
president, Subsidiary
SHareHolder & companY inFormation
cOrpOrate headquarters
10555 Main Street
Fairfax, VA 22030
703-242-5300
independent accOuntants
thompson, Greenspon & Co., p.C.
Fairfax, VA
transfer agent
American Stock transfer & trust Company
Shareholder Services - Admin 2 team
6201 Fifteenth Avenue
Brooklyn, NY 11219
800-937-5449
cOmmOn stOck
the common stock trades on the
otC Bulletin Board or otCBB
under the symbol “FDVA.”
annual meeting
July 30, 2013- 10:00a.m.
the Westwood Country Club
800 Maple Avenue East
Vienna, VA 22180
Freedom Bank oF Virginia • 2012 annual report
FAIRFAX
10555 Main Street
Fairfax, VA 22030
VIENNA
502 Maple Avenue W.
Vienna, VA 22180
703.242.5300
www.FreedomBankVA.com