Freedom Financial Holdings(OTCQX: FDVA), (the “Company” or “Freedom”), the holding company for The Freedom Bank of Virginia (the “Bank”) today announced net income of $799,896 or $0.11 per diluted share for the second quarter compared to net income of $2,019,348, or $0.28 per diluted share for the three months ended March 31, 2025, and net income of $2,044,233 or $0.28 per diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025, was $2,819,240 or $0.39 per diluted share, compared to $3,208,460 or $0.44 per diluted share for the six months ended June 30, 2024.
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Joseph J. Thomas, President, and CEO, commented, “While proactively increasing our loan loss provision negatively impacted our bottom line results, our second quarter performance reflects strong improvement in core profitability as pre-tax, pre-provision income1 of $1.84 million increased by 35.7% compared to the same quarter in 2024, driven by a 25-basis point increase in net interest margin to 2.66% and a 7.8% increase in non-interest income in the quarter compared to last year. With payoffs in problem loans, run-off in the investment portfolio, and increased core deposit inflows, we repaid higher cost brokered time deposits and borrowings to reduce cost of funds by 42 basis points compared to 2024. While loan demand remained tepid in the second quarter, the investments in our team and technology and improvement in the company's balance sheet resilience will enable us to meet current and new customer demand and achieve higher levels of loan and deposit growth as the economy stabilizes in the second half of 2025.”
Second Quarter 2025 Highlights include:
— The Company posted net income of $799,896 or $0.11 per diluted share for the second quarter compared to net income of $2,019,348 or $0.28 per diluted share for the three months ended March 31, 2025, and net income of $2,044,233 or $0.28 per diluted share for the three months ending June 30, 2024.
— Tangible Book Value per share2 increased during the quarter to $12.01 on June 30, 2025, compared to $11.87 on March 31, 2025.
— Return on Average Assets (“ROAA”) was 0.29% for the quarter ended June 30, 2025, compared to ROAA of 0.76% for the quarter ended March 31, 2025, and 0.75% for the three months ended June 30, 2024.
— Return on Average Equity (“ROAE”) was 3.97% for the quarter ended June 30, 2025, compared to ROAE of 9.95% for the three months ended March 31, 2025, and 10.71% for the three months ended June 30, 2024.
— Total Assets were $1.07 billion on June 30, 2025, a decrease of $18.41 million or 1.69% from total assets on December 31, 2024.
— Loans held-for-investment (excludingPPP loans) decreased by $10.59 million or 1.41% during the quarter.
— Total deposits increased by $7.38 million or by 0.81% during the quarter, indicating results from our marketing efforts.
— Non-interest-bearing demand deposits decreased by $15.58 million from the linked quarter to $126.92 million and represented 13.82% of total deposits on June 30, 2025.
— The net interest margin3 decreased in the second quarter to 2.66%, lower by 37 basis points compared to the linked quarter and increased by 25 basis points compared to the same period in 2024. The decrease in the net interest margin across linked quarters was primarily related to interest income recovery during the first quarter. The change from the prior year's second quarter represents improvements in cost of funds as the Bank has decreased its use of wholesale funding.
— The cost of funds was 3.19% for the second quarter, lower by 4 basis points compared to the linked quarter and lower by 42 basis points compared to the same period in 2024, as the reduction of wholesale funding continued.
— Non-interest income increased by 34.14% compared to the linked quarter and increased by 7.79% compared to the same period in 2024. The increase in non-interest income in the second quarter of 2025 compared to the linked quarter was primarily due to higher revenue from mortgage loans and an increase in the value of investments inSBIC's.
— Non-interest expense in the second quarter increased by 5.49% compared to the linked quarter and increased by 4.95% compared to the same period in 2024. The increase in non-interest expense compared to the linked quarter and prior calendar quarter was primarily due to higher expenses related to data processing costs and compensation expense.
— The Efficiency Ratio4 was 77.57% for the quarter ended June 30, 2025, compared to 69.22% for the linked quarter and 81.72% for the same period in 2024.
— Uninsured deposits were 22.76% of total deposits and total liquidity5 was 167.83% of uninsured deposits on June 30, 2025.
— Net charge offs decreased in the second quarter and were 0.01% of average loans compared to 0.03% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 1.45% on June 30, 2025, compared to 1.45% on March 31, 2025, and 1.49% on June 30, 2024. The ratio of non-performing assets to total assets was 0.98% on June 30, 2025, compared to 1.01% on March 31, 2025, and 1.06% on June 30, 2024.
— The Company had a loan loss provision of $688,865 in the second quarter, which increased the allowance for credit losses, due in part to the increase in specific reserves related to two loans, while nearly half of the increase was related to the increase in qualitative factors in the model for changes in the outlook of general economic conditions.
— The ratio of the allowance for credit losses to loans held-for-investment was 0.96% compared to 0.88% in the linked quarter.
— The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.66%, Common Equity Tier 1 ratio of 14.30%, Tier 1 Risk Based Capital ratio of 14.30% and a Total Capital ratio of 15.20%.
Net Interest Income The Company recorded net interest income of $6.88 million for the second quarter of 2025, lower by 10.93% compared to the linked quarter, and higher by 11.12% compared to the same period in 2024. The net interest margin in the second quarter of 2025 was 2.66%, lower by 37 basis points compared to the linked quarter and higher by 25 basis points compared to the same period in 2024.
The following factors contributed to the changes in net interest margin during the second quarter of 2024 compared to the linked and calendar quarters.
— Yields on average earning assets were 5.73% in the second quarter of 2025, lower by 38 basis points compared to the linked quarter, and lower by 17 basis points compared to the calendar quarter. The decline in yields on average earning assets in the second quarter was primarily due to non-recurring interest income being recognized in the first quarter.
— Loan yields decreased by 54 basis points to 6.20% from 6.74% in the linked quarter, while yields on investment securities decreased by 16 basis points to 4.39% from 4.55% in the linked quarter. Loan yields decreased by 17 basis points, while yields on investment securities decreased by 53 basis points compared to the calendar quarter.
— Cost of funds decreased by 4 basis points to 3.19% from 3.23% in the linked quarter, and by 42 basis points compared to the calendar quarter. The decrease was primarily due to a decline in costs for time deposits and borrowings, partially offset by an increase in costs for non-maturity deposits.
Non-interest Income Non-interest income was $1.31 million for the second quarter, an increase of 34.14% when compared to the linked quarter and an increase of 7.79% when compared to the same period in 2024. The increase in non-interest income in the second quarter of 2025 compared to the linked quarter was primarily due to higher revenue from mortgage loans and an increase in the value of investments in SBIC's.
Total Revenue6 Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 5.86% compared to the linked quarter and higher by 10.57% compared to the calendar quarter in 2024. The decrease in total revenue compared to the linked quarter was primarily due to non-recurring interest recognized in the first quarter.
Non-interest Expense Non-interest expense in the second quarter increased by 5.49% compared to the linked quarter and increased by 4.95% compared to the same period in 2024. The increase in non-interest expense compared to both the linked and calendar quarters was primarily due to compensation and data processing expense
The Efficiency Ratio was 77.57% for the quarter ended June 30, 2025, compared to 69.22% for the linked quarter and 81.72% for the same period in 2024.
Asset Quality Non-accrual loans were unchanged in the second quarter and were 1.45% of loans held-for-investment compared to 1.45% of loans held-for-investment at the end of the linked quarter. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, and OREO assets) were 0.98% of total assets as of June 30, 2025, compared to 1.01% of total assets, at the end of the linked quarter.
The Company recognized a provision for loan losses of $688,865, related to specific reserves for two loan relationships, but largely due to the adjustment in qualitative factors in our model for a weakening economic outlook.
The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 0.96% as of June 30, 2025, compared to the ratio of Allowance for Credit Losses to loans held-for-investment of 0.88% as of March 31, 2025.
Total Assets Total assets on June 30, 2025, were $1.07 billion compared to total assets of $1.08 billion on March 31, 2025.
Total Liabilities Total liabilities on June 30, 2025, were $987.96 million compared to total liabilities of $999.01 million on March 31, 2025, and total liabilities of $1.01 billion on December 31, 2024. Total deposits were $918.25 million on June 30, 2025, compared to total deposits of $910.87 million on March 31, 2025, and total deposits of $909.53 million on December 31, 2024. Non-interest-bearing demand deposits decreased by $15.58 million during the second quarter and comprised 13.82% of total deposits at the end of the second quarter. Other interest-bearing demand deposits increased by $80.68 million, savings deposits decreased by $5.48 million and time deposits decreased by $52.25 million during the quarter. Federal Home Loan Bank borrowings decreased by $15 million during the quarter.
Stockholders' Equity and Capital Stockholders' equity as of June 30, 2025, was $84.12 million compared to $83.13 million on March 31, 2025, and stockholders' equity of $81.44 million on December 31, 2024. AOCI was relatively unchanged during the second quarter. The tangible book valueof the Company's common stock on June 30, 2025, was $12.01 per share compared to $11.87 on March 31, 2025, and tangible book value per share of $11.39 on December 31, 2024. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on June 30, 2025, was $14.39 per share compared to $14.26 on March 31, 2025, and $13.94 per share on December 31, 2024.
Stock Buyback Program In the first quarter, the Company purchased 177,692 shares pursuant to its previously announced share repurchase program, but made no repurchases in the second quarter. As of June 30, 2025, the Company had repurchased 214,400 of the 250,000 shares authorized for repurchase under the program. Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.
Capital Ratios As of June 30, 2025, the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of June 30, 2025, and December 31, 2024, were as follows:
June 30, 2025 December 31, 2024Total Capital Ratio 15.20% 14.35%Tier 1 Capital Ratio 14.30% 13.57%Common Equity Tier 1 Capital Ratio 14.30% 13.57%Leverage Ratio 10.66% 10.39%
About Freedom Financial Holdings, Inc.
Freedom Financial Holdings, Inc. is the holding company of The Freedom Bank of Virginia, a community bank with locations in Fairfax, Reston, Chantilly, Vienna, and Manassas, Virginia. For information about deposits, loans and other services, visit the website atwww.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 Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of the impact of geopolitical conflicts, such as the war between Russia and Ukraine and the conflict in the Middle East; U.S. and global trade policies and changes, including the impact of the imposition of or changes in tariffs and trade barriers, adverse developments in the financial services industry such as the bank failures in 2023; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for credit losses; acquisition or loss of key production personnel; whether we realize the expected impact of our investments in technology and personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Company may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
FREEDOM FINANCIAL HOLDINGSCONSOLIDATED BALANCE SHEETS (Unaudited) (Unaudited) (Audited) June 30, March 31, December 31, 2025 2025 2024ASSETSCash and Due from Banks $ 10,668,471 $ 6,456,093 $ 5,685,008Interest Bearing Deposits with Banks 48,991,785 39,016,262 23,004,874Securities Available-for-Sale 193,740,578 203,807,955 209,687,859Securities Held-to-Maturity 19,475,547 19,852,060 20,315,651Restricted Stock Investments 5,065,300 5,777,800 6,249,000Loans Held for Sale 4,882,264 5,487,972 5,963,969PPP Loans Held for Investment 133,049 137,066 159,825Other Loans Held for Investment 742,071,827 752,664,602 767,737,719Allowance for Loan Losses (7,188,387) (6,592,220) (6,534,757)Net Loans 739,898,753 751,697,420 761,362,787Bank Premises and Equipment, net 717,599 742,588 767,773Accrued Interest Receivable 4,567,221 3,991,413 4,155,077Deferred Tax Asset 6,587,963 7,230,083 7,560,441Bank-Owned Life Insurance 28,004,541 27,781,480 27,560,616Right of Use Asset, net 1,572,800 3,361,641 1,874,403Other Assets 12,791,140 12,428,097 16,299,753Total Assets $ 1,072,081,698 $ 1,082,142,892 $ 1,090,487,211LIABILITIES AND STOCKHOLDERS' EQUITY -DepositsDemand DepositsNon-interest Bearing $ 126,922,031 $ 142,497,191 133,665,194Interest Bearing 552,796,334 472,115,491 $ 475,397,117Savings Deposits 2,550,937 8,034,522 3,866,241Time Deposits 235,975,996 288,222,304 296,603,142Total Deposits 918,245,298 910,869,508 909,531,694Federal Home Loan Bank Advances 40,000,000 55,000,000 65,000,000Other Borrowings 133,049 146,377 159,825Subordinated Debt (Net of Issuance Costs) 19,889,606 19,870,125 19,850,643Accrued Interest Payable 2,014,296 1,846,477 2,445,741Lease Liability 1,694,646 1,855,161 2,013,912Other Liabilities 5,981,294 9,420,497 10,045,990Total Liabilities $ 987,958,189 $ 999,008,145 1,009,047,805Stockholders' EquityPreferred stock, $0.01 par value, 5,000,000 shares authorized:0 Shares Issued and Outstanding, June 30, 2025, March 31, 2025 and December 31, 2024Common Stock, $0.01 Par Value, 25,000,000 Shares authorized:23,000,000 Shares Voting and 2,000,000 Shares Non-voting.Voting Common Stock:7,002,103 , 7,002,103 and 7,268,087 Shares Issued and Outstandingat June 30, 2025, March 31, 2025 and December 31, 2024 respectively 70,021 70,021 71,501Non-Voting Common Stock: – -0 Shares Issued and Outstanding at June 30, 2025, March 31, 2025and December 31, 2024 respectively) -Additional Paid-in Capital 56,630,385 56,532,591 58,347,356Accumulated Other Comprehensive Income, Net (16,657,368) (16,748,443) (18,240,683)Retained Earnings 44,080,472 43,280,578 41,261,232Total Stockholders' Equity $ 84,123,509.55 83,134,747 81,439,406Total Liabilities and Stockholders' Equity $ 1,072,081,698 $ 1,082,142,892 $ 1,090,487,211
FREEDOM FINANCIAL HOLDINGSCONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Unaudited) (Unaudited) (Unaudited) For the three For the three For the six For the six months ended months ended months ended months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024Interest IncomeInterest and Fees on Loans $ 11,673,927 $ 11,893,288 $ 24,377,509 $ 24,176,527Interest on Investment Securities 2,450,914 2,927,306 5,064,172 5,798,785Interest on Deposits with Other Banks 750,611 375,815 1,013,118 704,072Total Interest Income 14,875,452 15,196,409 30,454,799 30,679,384Interest ExpenseInterest on Deposits 7,275,073 7,865,934 14,221,266 15,889,824Interest on Borrowings 724,216 1,142,481 1,637,370 2,054,407Total Interest Expense 7,999,289 9,008,415 15,858,637 17,944,231Net Interest Income 6,876,162 6,187,994 14,596,162 12,735,154Provision/(Recovery) for Loan Losses 688,865 (1,167,997) 973,548 (1,195,483)Net Interest Income AfterProvision for Loan Losses 6,187,298 7,355,991 13,622,614 13,930,637Non-Interest IncomeMortgage Loan Gain-on-Sale and Fee Revenue 797,759 745,366 1,455,072 1,282,090SBA Gain-on-Sale Revenue – – – 287,032Service Charges and Other Income 270,230 221,022 344,121 353,445Gain on Sale of Securities – 1,816 – (13,246)Servicing Income 21,045 42,268 47,147 77,522Swap Fee Income – – – -Increase in Cash Surrender Value of Bank-owned Life Insurance 223,061 206,796 443,925 404,760Total Non-interest Income 1,312,094 1,217,268 2,290,265 2,391,603Total Revenue 8,188,257 7,405,262 16,886,427 15,126,757Non-Interest ExpensesOfficer and Employee Compensationand Benefits 3,752,761 3,544,148 7,522,296 7,279,287Occupancy Expense 244,279 255,233 486,442 647,109Equipment and Depreciation Expense 16,619 185,959 25,345 53,081Insurance Expense 220,346 229,259 446,112 453,266Professional Fees 559,904 568,765 1,030,213 1,095,339Data and Item Processing 595,492 395,579 1,133,705 985,084Advertising 151,676 162,354 234,791 277,352Franchise Taxes and State Assessment Fees 314,444 276,843 628,658 586,713Mortgage Fees and Settlements 99,819 83,617 174,548 178,617Other Operating Expense 396,213 349,979 690,447 722,214Total Non-interest Expenses 6,351,552 6,051,736 12,372,557 12,278,062Income Before Income Taxes 1,147,840 2,521,523 3,540,322 4,044,178Income Tax Expense/(Benefit) 347,943 477,293 721,082 835,718Net Income $ 799,896 $ 2,044,230 $ 2,819,240 $ 3,208,460Earnings per Common Share – Basic $ 0.11 $ 0.28 $ 0.39 $ 0.44Earnings per Common Share – Diluted $ 0.11 $ 0.28 $ 0.39 $ 0.44Weighted-Average Common SharesOutstanding – Basic 7,137,779 7,267,044 7,151,171 7,276,076Weighted-Average Common SharesOutstanding – Diluted 7,140,491 7,305,392 7,153,655 7,314,424
FREEDOM FINANCIAL HOLDINGSCONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) For the three For the three For the three For the three For the three months ended months ended months ended months ended months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Interest IncomeInterest and Fees on Loans $ 11,673,927 $ 12,703,493 $ 11,991,578 $ 12,358,391 $ 11,893,288Interest on Investment Securities 2,450,914 2,613,258 2,798,420 2,932,219 2,927,306Interest on Deposits with Other Banks 750,610 262,507 446,184 390,373 375,815Total Interest Income 14,875,451 15,579,258 15,236,182 15,680,983 15,196,409Interest ExpenseInterest on Deposits 7,275,073 6,946,194 7,628,382 7,968,925 7,865,934Interest on Borrowings 724,216 913,154 1,183,419 1,613,452 1,142,481Total Interest Expense 7,999,289 7,859,348 8,811,801 9,582,377 9,008,415Net Interest Income 6,876,162 7,719,910 6,424,381 6,098,606 6,187,994Provision/(Recovery) for Loan Losses 688,865 284,683 14,922 546,439 (1,167,997)Net Interest Income afterProvision/Recovery for Loan Losses 6,187,297 7,435,227 6,409,459 5,552,166 7,355,991Non-Interest IncomeMortgage Loan Gain-on-Sale and Fee Revenue 797,759 654,530 769,060 649,097 745,366SBA Gain-on-Sale Revenue – – – – -Service Charges and Other Income 270,230 70,334 252,275 255,889 221,022Gains on Sale of Securities – – – – 1,816Servicing Income 21,045 32,442 36,090 36,752 42,268Swap Fee Income – – – – -Increase in Cash Surrender Value of Bank-owned Life Insurance 223,061 220,864 212,876 211,642 206,796Total Non-interest Income 1,312,094 978,170 1,270,301 1,153,380 1,217,268Total Revenue5 8,188,256 $ 8,698,080 $ 7,694,682 $ 7,251,986 $ 7,405,262Non-Interest ExpensesOfficer and Employee Compensationand Benefits 3,752,761 3,769,535 3,905,728 3,674,499 3,544,148Occupancy Expense 244,279 242,163 233,967 233,807 255,233Equipment and Depreciation Expense 16,619 8,726 20,951 16,648 32,420Insurance Expense 220,346 225,766 228,224 232,774 229,259Professional Fees 559,904 470,310 451,065 532,379 568,765Data and Item Processing 595,492 538,213 684,698 701,865 549,118Advertising 151,676 83,115 90,368 172,136 162,354Franchise Taxes and State Assessment Fees 314,443 314,214 316,976 329,056 276,843Mortgage Fees and Settlements 99,819 87,258 119,037 123,853 83,617Other Operating Expense 396,213 281,611 417,893 374,273 349,979Total Non-interest Expenses 6,351,552 6,020,911 6,468,907 6,391,291 6,051,736Income before Income Taxes 1,147,840 2,392,486 1,210,853 314,256 2,521,526Income Tax Expense 347,943 373,138 83,793 (30,663) 477,293Net Income $ 799,896 $ 2,019,348 $ 1,127,060 $ 344,919 $ 2,044,233Earnings per Common Share – Basic $ 0.11 $ 0.28 $ 0.16 $ 0.05 $ 0.28Earnings per Common Share – Diluted $ 0.11 $ 0.28 $ 0.16 $ 0.05 $ 0.28Weighted-Average Common SharesOutstanding – Basic 7,137,779 7,283,696 7,268,087 7,263,880 7,267,044Weighted-Average Common SharesOutstanding – Diluted 7,140,491 7,285,900 7,324,559 7,299,553 7,305,392
Average Balances, Income and Expenses, Yields and Rates(Unaudited) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Average Balance Income/ Yield Average Balance Income/ Yield Average Balance Income/ Yield Average Balance Income/ Yield Average Balance Income/ Yield Expense Expense Expense Expense ExpenseAssetsCash $65,570,216 $750,611 4.59% $36,901,243 $ 262,507 2.89% $ 39,134,308 $ 446,184 4.54% $ 29,674,932 $ 390,373 5.23% $ 26,916,165 $ 375,815 5.62%Investments (Tax Exempt) $19,843,159 $156,555 $20,214,201 157,089 20,664,409 201,561 20,716,896 203,062 20,889,466 204,795Investments (Taxable) $204,066,557 $2,294,359 $212,629,949 2,456,170 220,415,008 2,639,187 223,526,525 2,771,800 222,105,603 2,765,518Total Investments 223,909,716 2,450,914 4.39% $232,844,150 2,613,258 4.55% 241,079,417 2,840,748 4.69% 244,243,421 2,974,862 4.85% 242,995,069 2,970,313 4.92%Total Loans $755,231,852 $11,673,926 6.20% $764,147,542 12,703,493 6.74% 775,756,877 $11,991,578 6.15% 780,143,594 12,358,391 6.30% 768,712,204 11,893,288 6.22%Earning Assets 1,044,711,785 $14,875,451 5.73% $1,033,892,386 15,579,258 6.11% 1,055,970,602 15,278,510 5.76% 1,054,061,947 15,723,626 5.93% 1,038,623,438 15,239,416 5.90%Assets $1,100,110,176 $1,083,851,440 $ 1,110,466,582 $ 1,111,788,038 $ 1,096,367,899LiabilitiesInterest Checking $125,175,008 $979,587 3.13% $211,572,944 $ 929,609 1.78% $ 209,540,976 $ 2,092,017 3.97% $ 204,529,638 $ 2,268,166 4.41% $ 226,698,645 $ 2,476,138 4.39%Money Market $396,798,385 $3,620,383 3.65% $259,289,920 1,924,822 3.01% 257,016,702 2,412,389 3.73% 259,041,124 2,686,977 4.13% 230,692,880 2,480,219 4.32%Savings $6,727,490 $1,503 0.09% $4,398,923 1,178 0.11% 3,151,116 1,185 0.15% 3,098,470 1,188 0.15% 2,544,712 993 0.16%Time Deposits $272,467,884 $2,673,600 3.93% $294,336,342 4,090,584 5.64% 291,606,111 3,122,791 4.26% 286,346,982 3,012,594 4.19% 287,465,021 2,908,583 4.07%Interest Bearing Deposits 801,168,767 $7,275,073 3.63% $769,598,129 6,946,193 3.66% 761,314,905 7,628,382 3.99% 753,016,214 7,968,925 4.21% 747,401,258 7,865,933 4.23%Borrowings $63,255,808 $724,216 4.59% $78,341,429 $ 913,154 4.73% $ 98,205,747 $ 1,183,419 4.79% $ 118,452,626 $ 1,613,452 5.42% $ 108,848,304 $ 1,142,481 4.22%Interest Bearing Liabilities 864,424,575 $7,999,289 3.71% $847,939,558 7,859,347 3.76% 859,520,652 8,811,801 4.08% 871,468,840 9,582,377 4.37% 856,249,562 9,008,414 4.23%Non Interest Bearing Deposits $ 140,837,354 $139,885,803 $ 153,895,858 $ 143,171,313 $ 146,541,629Cost of Funds 3.19% 3.23% 3.46% 3.76% 3.61%Net Interest Margin $ 6,876,162 2.66% $ 7,719,911 3.03% $ 6,466,709 2.44% $ 6,141,249 2.32% $ 6,231,002 2.41%
Average Balances, Income and Expenses, Yields and Rates(Unaudited) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Average Balance Income/ Expense Yield Average Balance Income/ Expense Yield Average Balance Income/ Expense Yield Average Balance Income/ Expense YieldAssetsCash $65,570,216 $750,610 4.59% $26,916,165 $375,815 5.62% $47,777,734 $1,013,118 4.28% $27,786,013 $704,072 5.10%Investments (Tax Exempt) $19,843,159 $156,555 $20,889,466 $204,795 $20,027,655 $323,442 $21,093,669 $409,420Investments (Taxable) $204,066,557 $2,294,359 $222,105,603 $2,765,518 $208,324,597 $4,750,529 $220,619,839 $5,475,343Total Investments 223,909,716 2,450,914 4.39% 242,995,069 2,970,313 4.92% $228,352,252 5,073,971 4.47% 241,713,508 5,884,763 4.90%Total Loans $755,231,852 $11,673,927 6.20% $768,712,204 $11,893,288 6.22% $759,665,068 $24,377,509 6.47% $770,942,060 $24,176,527 6.31%Earning Assets 1,044,711,785 $14,875,451 5.73% 1,038,623,438 15,239,416 5.90% 1,035,795,053 30,464,596 5.95% 1,040,441,581 30,765,362 5.95%Assets 1,096,367,899 $1,092,025,722 1,094,738,954 $1,100,110,176LiabilitiesInterest Checking $125,175,008 $979,587 3.13% $226,698,645 $2,476,138 4.39% $123,980,287 $1,909,186 3.08% $228,109,523 $4,991,453 4.40%Money Market $396,798,385 $3,620,383 3.65% $230,692,880 $2,480,219 4.32% $372,579,031 $6,779,987 3.64% $252,390,594 $5,410,303 4.31%Savings $6,727,490 $1,503 0.09% $2,544,712 $993 0.16% $5,569,639 $2,658 0.10% $2,980,478 $2,123 0.14%Time Deposits $272,467,884 $2,673,600 3.93% $287,465,021 $2,908,583 4.07% $283,341,703 $5,529,389 3.90% $274,715,231 $5,485,945 4.02%Interest Bearing Deposits 801,168,767 $7,275,073 3.63% 747,401,258 7,865,933 4.23% 785,470,660 14,221,219 3.62% 758,195,826 15,889,824 4.21%Borrowings $63,255,808 $724,216 4.59% $108,848,304 $1,142,481 4.22% $70,756,945 $1,637,370 4.67% $96,434,660 $2,054,407 4.28%Interest Bearing Liabilities 864,424,575 $7,999,289 3.71% 856,249,562 9,008,414 4.23% 856,227,605 15,858,589 3.70% 854,630,486 17,944,231 4.22%Non Interest Bearing Deposits $ 140,837,354 $ 146,541,629 $ 167,639,041 $ 146,294,904Cost of Funds 3.19% 3.61% 3.21% 3.61%Net Interest Margin $ 6,876,162 2.66% $ 6,231,002 2.41% $ 14,606,007 2.86% $ 12,821,131 2.48%
Selected Financial Data by Quarter Ended:(Unaudited)Balance Sheet Ratios June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Loans held-for-investment to Deposits 80.83% 82.65% 84.43% 87.42% 88.20%Income Statement Ratios (Quarterly)Return on Average Assets (ROAA) 0.29% 0.76% 0.41% 0.12% 0.75%Return on Average Equity (ROAE) 3.97% 9.95% 5.58% 1.70% 10.71%Efficiency Ratio 77.57% 69.22% 84.07% 88.13% 81.72%Net Interest Margin 2.66% 3.03% 2.44% 2.32% 2.41%Yield on Average Earning Assets 5.73% 6.11% 5.76% 5.93% 5.90%Yield on Securities 4.39% 4.55% 4.69% 4.85% 4.92%Yield on Loans 6.20% 6.74% 6.15% 6.30% 6.22%Cost of Funds 3.19% 3.23% 3.46% 3.76% 3.61%Noninterest income to Total Revenue 16.02% 11.25% 16.51% 15.90% 16.44%Liquidity RatiosUninsured Deposits to Total Deposits 22.51% 22.50% 21.55% 22.51% 22.76%Total Liquidity to Uninsured Deposits 167.83% 122.33% 162.14% 150.84% 150.53%Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 252.65% 292.23% 264.35% 264.41% 317.68%Tangible Common Equity Ratio 7.85% 7.68% 7.47% 7.54% 7.24%Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities) 7.64% 7.50% 7.27% 7.38% 7.01%Available -for-Sale securities (as % of total securities) 90.87% 91.12% 91.16% 91.47% 91.33%Per Share DataTangible Book Value $12.01 $11.87 $11.39 $11.64 $11.11Tangible Book Value (ex AOCI) $14.39 $14.26 $13.94 $13.78 $13.70Share Price DataClosing Price $11.26 $9.90 $10.32 $11.50 $9.75Book Value Multiple 94% 83% 91% 99% 88%Common Stock DataOutstanding Shares at End of Period 7,002,103 7,002,103 7,150,055 7,133,105 7,137,030Weighted Average shares outstanding, basic 7,137,779 7,283,696 7,268,087 7,263,880 7,267,044Weighted Average shares outstanding, diluted 7,140,491 7,285,900 7,324,559 7,299,553 7,305,392Capital Ratios (Bank Only)Tier 1 Leverage ratio 10.66% 10.76% 10.39% 10.23% 10.28%Common Equity Tier 1 ratio 14.30% 14.14% 13.57% 13.21% 13.05%Tier 1 Risk Based Capital ratio 14.30% 14.14% 13.57% 13.21% 13.05%Total Risk Based Capital ratio 15.20% 14.95% 14.35% 14.22% 14.01%Credit QualityNet Charge-offs to Average Loans 0.01% 0.03% 0.26% 0.01% 0.01%Total Non-performing Loans to loans held-for-investment 1.45% 1.45% 1.78% 1.52% 1.49%Total Non-performing Assets to Total Assets 0.98% 1.01% 1.25% 1.07% 1.06%Nonaccrual Loans to loans held-for-investment 1.45% 1.45% 1.78% 1.52% 1.49%Provision for Loan Losses $688,865 $284,683 $14,922 $546,439 ($1,167,997)Allowance for Loan Losses to net loans held-for-investment 0.96% 0.88% 0.85% 1.12% 1.06%Allowance for Loan Losses to net loans held-for-investment (ex PPP loans) 0.96% 0.88% 0.85% 1.12% 1.06%
FREEDOM FINANCIAL HOLDINGS, INC. CONSOLIDATED SELECTED FINANCIAL DATA RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:1Pre-tax, Pre-Provision Income (Non-GAAP) Quarter Ending June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Net Income $ 799,896 $ 2,019,348 $ 1,127,060 $ 344,919 $ 2,044,233+ Provision Expense 688,865 284,683 14,922 546,439 (1,167,997)+ Provision Expense+ Income Tax Expense 347,943 373,138 83,793 (30,663) 477,293Pre-tax,Pre-Provision Income (non-GAAP) $ 1,836,704 $ 2,677,169 $ 1,225,775 $ 860,696 $ 1,353,5292Tangible Book Value (ex-AOCI) (non-GAAP) Quarter Ending June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Shareholder's Equity $ 84,123,510 $ 83,134,747 $ 81,439,406 $ 83,026,214 $ 79,303,635Outstanding Shares at End of Period 7,002,103 7,002,103 7,150,055 7,133,105 7,137,030Tangible Book Value (GAAP) $ 12.01 $ 11.87 $ 11.39 $ 11.64 $ 11.11Accumulated Other Comprehensive Income (Net) (AOCI) $ (16,657,368) $ (16,748,443) $ (18,240,683) $ (15,296,856) $ (18,466,282)AOCI per share equivalent (2.38) (2.39) (2.55) (2.14) (2.59)Tangible Book Value (ex-AOCI) (non-GAAP) $ 14.39 $ 14.26 $ 13.94 $ 13.78 $ 13.70 Quarter Ending Year EndingIncome on Tax Exempt Securities June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 June 30, 2025 June 30, 2024Tax Equivalent Adjustment $ 123,678 $ 124,101 $ 159,233 $ 160,419 $ 161,788 $ 255,519 $ 323,442Income on Tax Exempt Securities (Non-GAAP) 32,877 32,988 42,328 42,643 43,007 67,923 85,978 $ 156,555 $ 157,089 $ 201,561 $ 203,062 $ 204,795 $323,442 $409,4203Net Interest MarginAverage Earning Assets $ 1,044,711,785 $ 1,033,892,386 $ 1,055,970,602 $ 1,054,061,947 $ 1,038,623,438 $ 1,035,795,053 $ 1,040,441,581Yield on Interest Earning Assets (GAAP) 5.71% 6.10% 5.80% 5.98% 5.88% 5.90% 5.95%Yield on Interest-Earning Assets (FTE) (Non-GAAP) 5.73% 6.11% 5.76% 5.93% 5.90% 5.95% 5.95%Net Interest Margin (NIM) (GAAP) 2.63% 3.02% 2.45% 2.33% 2.40% 2.82% 2.33%Net Interest Margin (NIM) (FTE) (Non-GAAP) 2.66% 3.03% 2.44% 2.32% 2.41% 2.86% 2.48%3 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets4Efficiency Ratio (Non-GAAP) Quarter Ending Year Ending June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 June 30, 2025 June 30, 2024Net Interest Income $ 6,876,162 $ 7,719,910 $ 6,424,381 $ 6,098,606 $ 6,187,994 $ 14,596,162 $ 12,735,154Non-Interest Income 1,312,094 978,170 1,270,301 1,153,380 1,217,268 2,290,265 2,391,603Total Revenue $ 8,188,256 $ 8,698,079 $ 7,694,682 $ 7,251,986 $ 7,405,262 $ 16,886,427 $ 15,126,757Non-Interest Expense 6,351,552 6,020,911 6,468,907 6,391,291 6,051,736 12,372,557 12,278,062Efficiency Ratio (Non-GAAP) 77.57% 69.22% 84.07% 88.13% 81.72% 73.27% 81.17%5Liquidity Ratios (Non-GAAP) Quarter Ending June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Available-for-Sale Securities (as % of total securities) 90.87% 91.12% 91.16% 91.47% 91.33%Uninsured Deposits to Total Deposits 22.51% 22.50% 21.55% 22.51% 22.76%Total Liquidity to Uninsured Deposits (Non-GAAP) 167.83% 122.33% 162.14% 150.84% 150.53%Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 252.65% 292.23% 264.35% 264.41% 317.68%Tangible Common Equity Ratio (Non-GAAP) 7.85% 7.68% 7.47% 7.54% 7.24%Tangible Common Equity Ratio(adjusted for unrealized losses 7.64% 7.50% 7.27% 7.38% 7.01%on HTM Securities) (Non-GAAP)5 Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve and the Federal Home Loan Bank.6Total Revenue (Non-GAAP) Quarter Ending Year-to-Date June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 June 30, 2025 June 30, 2024Net Interest Income $ 6,876,162 $ 7,719,910 $ 6,424,381 $ 6,098,606 $ 6,187,994 $ 14,596,162 $ 12,735,154Non-Interest Income 1,312,094 978,170 1,270,301 1,153,380 1,217,268 2,290,265 2,391,603Total Revenue (non-GAAP) $ 8,188,256 $ 8,698,080 $ 7,694,682 $ 7,251,986 $ 7,405,262 $ 16,886,427 $ 15,126,757
Contact:Scott ClarkExecutive Vice President & Chief Financial OfficerPhone: 703-667-4119Email: sclark@freedom.bank
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