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Freedom Bank of Virginia Stakes Its Flag in
Small Business Marketplace: Ready to Seize Opportunity Resulting from
Mergers
The Freedom Bank of Virginia (Bulletin Board:FDVA.OB) announced today that
it has successfully completed its action plan to empower the Bank to become
a leading Northern Virginia community bank serving small businesses in our
region.
In July 2006, James Monroe Bank merged into Mercantile Bank, which will soon
merge into PNC Bank. Six of the founding directors of James Monroe Bank,
together with Ategra Community Financial Institution Fund, LP, reached an
agreement in October 2006 with Freedom Bank to acquire over 38% of the Bank.
State and Federal regulators recently approved the transaction, which
allowed the group's investment of over $5.1 million and a restructuring of
the Bank's Board of Directors.
Staying on a 12 member Board are President and CEO, John T. Rohrback,
attorney H. Jason Gold, CPA G. Thomas Collins, Jr., consultants Cynthia
Carter Atwater and Michael A. Miranda, and William G. Dukas, founder of
Karin's Florist, who is Vice Chairman. They have been joined on the Board by
the six former James Monroe Bank directors: government contracting
executives, Drs. Terry L. Collins, David C. Karlgaard and Alvin E. Nashman,
CPA Norman P. Horn, and attorneys Russell E. Sherman and Richard C. Litman,
who is Chairman of the Board.
As part of the Bank's plan, an additional $9.1 million was raised in a
December 2006 private offering that was oversubscribed within a month. With
the regulatory approvals, and the $5.1 million investment and new directors,
the Bank has now accepted the subscriptions for this additional capital. The
$15 million in additional capital supplements over $8 million in capital the
Bank had before the October 2006 agreement. The additional capital increases
the Bank's legal lending limit to about $3.5 million, thereby enabling it to
offer larger loans to small businesses.
The bank's new chairman, Richard C. Litman, says the re-energized bank will
be people driven. "There is a void left by the sale of James Monroe Bank to
Mercantile Potomac Bank and that bank to PNC. Freedom Bank is ready to fill
that void and provide commercial and real estate loans to small business
owners, including government contractors and professionals. Our community
bank is all about personal service -- from relationship-oriented business
lending to responsive, experienced professional bankers. Plus, we have the
benefits of state-of-the-art technology. Freedom Bank customers are family.
Our mission is to help them succeed. We know our customers by name,
understand their business needs, and help them achieve their business
goals."
To help our customers grow and prosper, President and CEO, John T. Rohrback,
notes: "Our goal is to build relationships with our customers and empower
them with a whole range of value added banking products and services, such
as being able to make deposits from their offices and a robust web banking
interface, to competitive rates and quick turn around on lines of credit,
working capital, equipment and facilities financing."
This press release contains forward-looking statements. These
forward-looking statements include, but are not limited to, statements about
(i) the benefits of the transaction; (ii) Freedom's plans, objectives,
expectations and intentions and other statements that are not historical
facts; and (iii) other statements identified by words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates,"
"targets," "projects," or words of similar meaning generally intended to
identify forward-looking statements. These forward-looking statements are
based on the current beliefs and expectations and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are beyond the Bank's control. In addition,
these forward-looking statements are subject to assumptions with respect to
future business strategies and decisions that are subject to change. Actual
results may differ materially from the anticipated results discussed or
implied in these forward- looking statements because of numerous possible
uncertainties.
Freedom Bank of Virginia
John T. Rohrback, 703-242-5300
Or
The Borenstein Group, Inc.
Lana Sansur, 703-385-8178 x208
Source: Business Wire (February 8, 2007 - 12:23 PM EST)
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