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 $1,122,930 or $0.16 per diluted share for the third quarter compared to net income of $799,896 or $0.11 per diluted share for the three months ended June 30, 2025, and net income of $344,919 or $0.05 per diluted share for the three months ended September 30, 2024. Net income for the nine months ended September 30, 2025, was $3,942,171 or $0.55 per diluted share, compared to $3,553,378 or $0.49 per diluted share for the nine months ended September 30, 2024.
Joseph J. Thomas, President, and CEO, commented, “Our team worked hard in the third quarter to achieve improved financial results by expanding net interest margin and growing C&I loans, while also reducing wholesale funding and addressing problem loans. The company's net income for the third quarter increased 40.4% over the second quarter of 2025 and 225.6% compared to the third quarter 2024. Our net interest margin for the quarter increased 34 basis points to 2.66% compared to third quarter of 2024. Improvements were partially achieved through a reduction in wholesale deposits of $127.3 million or 36.5% during the first nine months of the year. The Bank produced $31 million in new commercial loan balances in the third quarter compared to $16 million in the second quarter of 2025, reflecting continued client confidence. Loans Held for Investment were flat in the quarter as a result of the payment and resolution of $6.7 million in Classified Assets in the quarter. We continue to contribute to our allowance as we work through problem assets and navigate a period elevated risk and weakening economic conditions in our market. Our levels of liquidity and capital continue to provide resiliency at a time of market uncertainty. The reduction in short term rates that occurred at the end of the third quarter is expected to positively impact margin and earnings in the year ahead.”
Third Quarter 2025 Highlights include:
— The Company posted net income of $1,122,930 or $0.16 per diluted share for the third quarter compared to net income of $799,896 or $0.11 per diluted share for the three months ended June 30, 2025, and net income of $344,919 or $0.05 per diluted share for the three months ending September 30, 2024.
— Tangible Book Value per share1 increased during the quarter to $12.45 on September 30, 2025, compared to $12.01 on June 30, 2025.
— Return on Average Assets (“ROAA”) was 0.41% for the quarter ended September 30, 2025, compared to ROAA of 0.29% for the quarter ended June 30, 2025, and 0.12% for the three months ended September 30, 2024.
— Return on Average Equity (“ROAE”) was 5.57% for the quarter ended September 30, 2025, compared to ROAE of 3.97% for the three months ended June 30, 2025, and 1.70% for the three months ended September 30, 2024.
— Total Assets were $1.03 billion on September 30, 2025, a decrease of $40.7 million or 3.80% from total assets on June 30, 2025 as the Bank reduced brokered funding.
— Loans held-for-investment (excluding PPP loans) decreased by $737 thousand or 0.10% during the quarter.
— Total deposits decreased by $63.2 million or by 6.89% during the quarter, $62.9 million of which was the intentional reduction in brokered CDs.
— Non-interest-bearing demand deposits decreased by $210 thousand from the linked quarter to $126.71 million and represented 14.82% of total deposits on September 30, 2025.
— The net interest margin2 was flat in the third quarter at 2.66%, same as the linked quarter and increased by 34 basis points compared to the same period in 2024. The change from the prior year's third quarter represents improvements in the cost of funds as the Bank has decreased its use of wholesale funding and rate reductions in overnight cost of funds in the capital markets.
— The cost of funds was 3.19% for the second and third quarter, and lower by 57 basis points compared to the same period in 2024, as wholesale funding use was reduced and the market rate environment came down.
— Non-interest income increased by 8.47% compared to the linked quarter and increased by 23.4% compared to the same period in 2024. The increase in non-interest income in the third quarter of 2025 compared to the linked quarter was primarily due to higher revenue from BOLI products and an increase in the value of investments in SBIC's.
— Non-interest expense in the third quarter decreased by 0.38% compared to the linked quarter and increased by 0.99% compared to the same period in 2024. The decrease in non-interest expense compared to the linked quarter and prior calendar quarter was primarily due to savings in professional fees and outside services.
— The Efficiency Ratio3 was 77.43% for the quarter ended September 30, 2025, compared to 77.57% for the linked quarter and 88.13% for the same period in 2024.
— Uninsured deposits were 24.51% of total deposits and total liquidity4 was 136.91% of uninsured deposits on September 30, 2025.
— Net charge offs increased in the third quarter and were 0.13% of average loans compared to 0.01% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 2.30% on September 30, 2025, compared to 1.45% on June 30, 2025, and 1.52% on September 30, 2024. The ratio of non-performing assets to total assets was 1.65% on September 30, 2025, compared to 0.98% on June 30, 2025, and 1.07% on September 30, 2024.
— The Company had a loan loss provision of $496,824 in the third quarter, due to the charge-off of one consumer and one commercial loan. This was partially offset by reduction in the provision for unfunded commitments as those expired or were funded, and a reversal of a specific reserve for one corporate bond that was upgraded in the quarter.
— The ratio of the allowance for credit losses to loans held-for-investment was 0.96% compared to 0.96% in the linked quarter.
— The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 11.23%, Common Equity Tier 1 ratio of 14.64%, Tier 1 Risk Based Capital ratio of 14.64% and a Total Capital ratio of 15.53%.
Net Interest Income The Company recorded net interest income of $6.75 million for the third quarter, lower by 1.85% compared to the linked quarter, and higher by 10.66% compared to the same period in 2024. The net interest margin in the third quarter of 2025 was 2.66%, flat compared to the linked quarter and higher by 34 basis points compared to the same period in 2024.
The following factors contributed to the changes in net interest margin during the third quarter of 2025 compared to the linked and calendar quarters.
— Yields on average earning assets were 5.72% in the third quarter of 2025, lower by 1 basis point compared to the linked quarter, and lower by 21 basis points compared to the calendar quarter. The decline in yields on average earning assets in the third quarter was primarily due to reduction in market rates in the economic environment.
— Loan yields increased by 2 basis points to 6.22% from 6.20% in the linked quarter, while yields on investment securities decreased by 10 basis points to 4.29% from 4.39% in the linked quarter. Loan yields decreased by 8 basis points, while yields on investment securities decreased by 56 basis points compared to the calendar quarter.
— Cost of funds remained flat 3.19% in both the 2nd and 3rd quarter, and was lower by 57 basis points compared to the calendar quarter.
Non-interest Income Non-interest income was $1.42 million for the third quarter, an increase of 8.47% when compared to the linked quarter and an increase of 23.40% when compared to the same period in 2024. The increase in non-interest income in the third quarter of 2025 compared to the linked quarter was primarily due to an increase in the value of investments in SBIC's and BOLI income.
Total Revenue5 Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 0.2% compared to the linked quarter and higher by 12.69% compared to the calendar quarter in 2024. The decrease in total revenue compared to the linked quarter was primarily due to lower average earning assets in the quarter. The increase over the prior year quarter stems improvements in both Net Interest Income, the improvement in margin, and from increased non-interest income via SBIC and BOLI income.
Non-interest Expense Non-interest expense in the third quarter decreased by 0.38% compared to the linked quarter and decreased by 0.99% compared to the same period in 2024. The decrease in non-interest expense compared to both the linked and calendar quarters was primarily due to lower expense on professional fees and outside services.
The Efficiency Ratio was 77.43% for the quarter ended September 30, 2025, compared to 77.57% for the linked quarter and 88.13% for the same period in 2024.
Asset Quality Non-accrual loans increased in the third quarter to 2.3% of loans held-for-investment compared to 1.45% of loans held-for-investment at the end of the linked quarter, as five loans in the quarter went on non-accrual. 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 1.65% of total assets as of September 30, 2025, compared to 0.98% of total assets, at the end of the linked quarter.
The Company recognized a provision for loan losses of $496,824 related to two charged off loans in the quarter, partially offset by the release of specific reserves on an upgraded corporate bond and the reduction in provisions for unfunded commitments.
The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 0.96% as of September 30, 2025, compared to the ratio of Allowance for Credit Losses to loans held-for-investment of 0.96% as of June 30, 2025.
Total Assets Total assets on September 30, 2025 were $1.03 billion compared to total assets of $1.07 billion on June 30, 2025.
Total Liabilities Total liabilities on September 30, 2025, were $944.17 million compared to total liabilities of $987.96 million on June 30, 2025, and total liabilities of $1.01 billion on December 31, 2024. Total deposits were $855.02 million on September 30, 2025, compared to total deposits of $918.25 million on June 30, 2025, and total deposits of $909.53 million on December 31, 2024. Non-interest-bearing demand deposits decreased by $210 thousand during the third quarter and comprised 14.82% of total deposits at the end of the third quarter. Federal Home Loan Bank borrowings increased by $20 million during the quarter.
Stockholders' Equity and Capital Stockholders' equity as of September 30, 2025, was $87.19 million compared to $84.12 million on March 31, 2025, and stockholders' equity of $81.44 million on December 31, 2024. AOCI improved by $1.8 million over the quarter as rates came down and the bonds moved closer to maturity. The tangible book valueof the Company's common stock on September 30, 2025, was $12.45 per share compared to $12.01 on June 30, 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 $14.58 per share compared to $14.39 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 or third quarter. As of September 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 September 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 September 30, 2025, and December 31, 2024, were as follows:
September 30, 2025 December 31, 2024Total Capital Ratio 15.53% 14.35%Tier 1 Capital Ratio 14.64% 13.57%Common Equity Tier 1 Capital Ratio 14.64% 13.57%Leverage Ratio 11.23% 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) September 30, June 30, December 31, 2025 2025 2024ASSETSCash and Due from Banks $ 4,818,837 $ 10,668,471 $ 5,685,008Interest Bearing Deposits with Banks 18,496,712 48,991,785 23,004,874Securities Available-for-Sale 187,268,762 193,740,578 209,687,859Securities Held-to-Maturity 19,343,569 19,475,547 20,315,651Restricted Stock Investments 6,385,300 5,065,300 6,249,000Loans Held for Sale 7,183,273 4,882,264 5,963,969PPP Loans Held for Investment 125,403 133,049 159,825Other Loans Held for Investment 741,335,198 742,071,827 767,737,719Allowance for Loan Losses (7,137,980) (7,188,387) (6,534,757)Net Loans 741,505,894 739,898,753 767,326,756Bank Premises and Equipment, net 692,681 717,599 767,773Accrued Interest Receivable 4,264,875 4,567,221 4,155,077Deferred Tax Asset 6,063,117 6,587,963 7,560,441Bank-Owned Life Insurance 28,236,091 28,004,541 27,560,616Right of Use Asset, net 1,419,569 1,572,800 1,874,403Other Assets 12,867,243 12,791,140 16,299,753Total Assets $ 1,031,362,649 $ 1,072,081,698 $ 1,090,487,211LIABILITIES AND STOCKHOLDERS' EQUITY – -DepositsDemand DepositsNon-interest Bearing $ 126,711,971 $ 126,922,031 133,665,194Interest Bearing $ 549,852,965 552,796,334 $ 475,397,117Savings Deposits $ 1,988,586 2,550,937 3,866,241Time Deposits $ 176,467,460 235,975,996 296,603,142Total Deposits 855,020,982 918,245,298 909,531,694Federal Home Loan Bank Advances 60,000,000 40,000,000 65,000,000Other Borrowings 125,403 133,049 159,825Subordinated Debt (Net of Issuance Costs) 19,909,087 19,889,606 19,850,643Accrued Interest Payable 1,098,199 2,014,296 2,445,741Lease Liability 1,520,701 1,694,646 2,013,912Other Liabilities 6,495,085 5,981,294 10,045,990Total Liabilities $ 944,169,457 $ 987,958,189 1,009,047,805Stockholders' EquityPreferred stock, $0.01 par value, 5,000,000 shares authorized:0 Shares Issued and Outstanding, September 30, 2025, June 30, 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 September 30, 2025, June 30, 2025, and December 31, 2024 respectively 70,021 70,021 71,501Non-Voting Common Stock: – -0 Shares Issued and Outstanding at September 30, 2025, June 30, 2025,and December 31, 2024 respectively) -Additional Paid-in Capital 56,800,773 56,630,385 58,347,356Accumulated Other Comprehensive Income, Net (14,881,004) (16,657,368) (18,240,683)Retained Earnings 45,203,402 44,080,472 41,261,232Total Stockholders' Equity $ 87,193,192.52 $ 84,123,509.55 81,439,406Total Liabilities and Stockholders' Equity $ 1,031,362,649 $ 1,072,081,698 $ 1,090,487,211
FREEDOM FINANCIAL HOLDINGSCONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Unaudited) (Unaudited) (Unaudited) For the three For the three For the nine For the nine months ended months ended months ended months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024Interest IncomeInterest and Fees on Loans $ 11,671,310 $ 12,358,391 $ 36,048,818 $ 36,534,919Interest on Investment Securities $ 2,307,732 2,932,219 $ 7,371,904 8,731,004Interest on Deposits with Other Banks $ 507,622 390,373 $ 1,520,740 1,094,445Total Interest Income 14,486,664 15,680,983 44,941,462 46,360,368Interest ExpenseInterest on Deposits $ 7,036,552 7,968,925 $ 21,257,818 23,858,749Interest on Borrowings $ 701,474 1,613,452 $ 2,338,844 3,667,858Total Interest Expense 7,738,026 9,582,377 23,596,662 27,526,607Net Interest Income 6,748,638 6,098,606 21,344,800 18,833,761Provision/(Recovery) for Loan Losses $ 496,824 546,439 $ 1,470,372 649,044Net Interest Income AfterProvision for Loan Losses 6,251,814 5,552,167 19,874,428 19,482,805Non-Interest IncomeMortgage Loan Gain-on-Sale and Fee Revenue 718,684 649,097 2,173,755 1,931,187SBA Gain-on-Sale Revenue – – – 287,032Service Charges and Other Income $ 453,981 255,889 $ 798,103 594,271Gain on Sale of Securities – – – 1,816Servicing Income 19,060 36,752 66,207 114,273Swap Fee Income – – – -Increase in Cash Surrender Value of Bank-owned Life Insurance 231,549 211,642 675,474 616,402Total Non-interest Income 1,423,274 1,153,380 3,713,539 3,544,981Total Revenue 8,171,913 7,251,986 25,058,339 22,378,742Non-Interest ExpensesOfficer and Employee Compensationand Benefits $ 4,067,037 3,674,499 $ 11,589,333 10,953,786Occupancy Expense $ 246,378 233,807 $ 732,820 880,916Equipment and Depreciation Expense $ 16,039 285,083 $ 41,384 666,387Insurance Expense $ 244,170 232,774 $ 690,281 686,040Professional Fees $ 291,975 532,379 $ 1,322,188 1,627,717Data and Item Processing $ 540,506 433,431 $ 1,674,211 1,090,292Advertising $ 112,566 172,136 $ 347,357 449,488Franchise Taxes and State Assessment Fees $ 334,422 329,056 $ 963,080 915,768Mortgage Fees and Settlements 106,266 123,853 280,814 302,471Other Operating Expense $ 368,343 374,273 $ 1,058,790 1,096,487Total Non-interest Expenses 6,327,702 6,391,291 18,700,258 18,669,352Income Before Income Taxes 1,347,386 314,256 4,887,709 4,358,434Income Tax Expense/(Benefit) 224,456 (30,663) 945,538 805,056Net Income $ 1,122,930 $ 344,919 $ 3,942,172 $ 3,553,378Earnings per Common Share – Basic $ 0.16 $ 0.05 $ 0.55 $ 0.49Earnings per Common Share – Diluted $ 0.16 $ 0.05 $ 0.55 $ 0.49Weighted-Average Common SharesOutstanding – Basic 7,134,446 7,263,880 7,141,452 7,271,981Weighted-Average Common SharesOutstanding – Diluted 7,184,688 7,299,553 7,194,576 7,314,290
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 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Interest IncomeInterest and Fees on Loans $ 11,671,310 $ 11,673,927 $ 12,703,493 $ 11,991,578 $ 12,358,391Interest on Investment Securities $ 2,307,732 2,450,914 2,613,258 2,798,420 2,932,219Interest on Deposits with Other Banks $ 507,622 750,610 262,507 446,184 390,373Total Interest Income 14,486,664 14,875,451 15,579,258 15,236,182 15,680,983Interest ExpenseInterest on Deposits 7,036,552 7,275,073 6,946,194 7,628,382 7,968,925Interest on Borrowings 701,474 724,216 913,154 1,183,419 1,613,452Total Interest Expense 7,738,026 7,999,289 7,859,348 8,811,801 9,582,377Net Interest Income 6,748,638 6,876,162 7,719,910 6,424,381 6,098,606Provision/(Recovery) for Loan Losses 496,824 688,865 284,683 14,922 546,439Net Interest Income afterProvision/Recovery for Loan Losses 6,251,814 6,187,297 7,435,227 6,409,459 5,552,167Non-Interest IncomeMortgage Loan Gain-on-Sale and Fee Revenue 718,684 797,759 654,530 769,060 649,097SBA Gain-on-Sale Revenue – – – – -Service Charges and Other Income 453,981 270,230 70,334 252,275 255,889Gains on Sale of Securities – – – – -Servicing Income 19,060 21,045 32,442 36,090 36,752Swap Fee Income – – – – -Increase in Cash Surrender Value of Bank-owned Life Insurance 231,549 223,061 220,864 212,876 211,642Total Non-interest Income 1,423,274 1,312,095 978,170 1,270,301 1,153,380Total Revenue5 8,171,912 8,188,257 $ 8,698,080 $ 7,694,682 $ 7,251,986Non-Interest ExpensesOfficer and Employee Compensationand Benefits 4,067,037 3,752,761 3,769,535 3,905,728 3,674,499Occupancy Expense 246,378 244,279 242,163 233,967 233,807Equipment and Depreciation Expense 16,039 16,619 8,726 20,951 16,647Insurance Expense 244,170 220,346 225,766 228,224 232,774Professional Fees 291,975 559,904 470,310 451,065 532,379Data and Item Processing 540,506 595,492 538,213 684,698 701,865Advertising 112,566 151,676 83,115 90,368 172,136Franchise Taxes and State Assessment Fees 334,422 314,444 314,214 316,976 329,056Mortgage Fees and Settlements 106,266 99,819 87,258 119,037 123,853Other Operating Expense 368,343 396,213 281,611 417,893 374,273Total Non-interest Expenses 6,327,702 6,351,552 6,020,911 6,468,907 6,391,290Income before Income Taxes 1,347,386 1,147,840 2,392,486 1,210,853 314,257Income Tax Expense 224,456 347,943 373,138 83,793 (30,663)Net Income $ 1,122,930 $ 799,897 $ 2,019,348 $ 1,127,060 $ 344,920Earnings per Common Share – Basic $ 0.16 $ 0.11 $ 0.28 $ 0.16 $ 0.05Earnings per Common Share – Diluted $ 0.16 $ 0.11 $ 0.28 $ 0.16 $ 0.05Weighted-Average Common SharesOutstanding – Basic 7,134,446 7,137,779 7,283,696 7,268,087 7,263,880Weighted-Average Common SharesOutstanding – Diluted 7,184,688 7,140,491 7,285,900 7,324,559 7,299,553
Average Balances, Income and Expenses, Yields and Rates(Unaudited) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 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 $46,853,763 $507,622 4.30% $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%Investments (Tax Exempt) $19,928,687 $155,780 3.10% $19,843,159 $156,555 3.16% $20,214,201 157,089 3.15% 20,664,409 201,561 3.88% 20,716,896 203,062 3.90%Investments (Taxable) $193,341,006 $2,151,952 4.42% $204,066,557 $2,294,359 4.51% $212,629,949 2,456,170 4.68% 220,415,008 2,639,187 4.86% 223,526,525 2,771,800 5.03%Total Investments $213,269,693 $2,307,732 4.29% 223,909,716 2,450,914 4.39% $232,844,150 2,613,259 4.55% 241,079,417 2,840,748 4.69% 244,243,421 2,974,862 4.85%Total Loans $744,905,635 $11,671,310 6.22% $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%Earning Assets $1,005,029,091 $14,486,664 5.72% $1,044,711,784 $14,875,451 5.73% $1,033,892,935 15,579,258 6.11% 1,055,970,602 15,278,510 5.76% 1,054,061,947 15,723,626 5.93%Assets $1,058,353,304 $1,100,110,176 $1,083,851,440 $ 1,110,466,582 $ 1,111,788,038LiabilitiesInterest Checking $127,149,614 $998,124 3.11% $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%Money Market $320,887,145 $2,722,629 3.37% $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%Savings $2,415,353 $1,051 0.17% $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%Time Deposits $317,448,404 $3,314,747 4.14% $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%Interest Bearing Deposits $767,900,516 $7,036,551 3.64% 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%Borrowings $61,329,539 $ 701,474 4.54% $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%Interest Bearing Liabilities 829,230,055 $7,738,025 3.70% 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%Non Interest Bearing Deposits $ 133,933,651 $ 140,837,354 $139,885,803 $ 153,895,858 $ 143,171,313Cost of Funds 3.19% 3.19% 3.23% 3.46% 3.76%Net Interest Margin $6,748,638 2.66% $ 6,876,162 2.66% $ 7,719,911 3.03% $ 6,466,709 2.44% $ 6,141,249 2.32%
Average Balances, Income and Expenses, Yields and Rates(Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Average Balance Income/ Yield Average Balance Income/ Yield Average Balance Income/ Yield Average Balance Income/ Yield Expense Expense Expense ExpenseAssetsCash $46,853,763 $507,622 4.30% $29,674,932 $390,373 5.23% $47,466,359 $1,520,740 4.28% $28,420,248 $1,094,445 5.14%Investments (Tax Exempt) $19,928,687 $155,780 3.10% $20,716,896 $203,062 $19,994,303 $469,423 3.14% $20,967,161 $612,482Investments (Taxable) $193,341,006 $2,151,952 4.42% $223,526,525 $2,771,800 $203,275,182 $6,902,482 4.54% $221,595,806 $8,247,143Total Investments $213,269,693 $2,307,732 4.29% 244,243,421 2,974,862 4.85% $223,269,485 7,371,904 4.41% 242,562,967 8,859,625 4.88%Total Loans $744,905,635 $11,671,310 6.22% $780,143,594 $12,358,391 6.30% $754,691,193 $36,048,818 6.39% $774,031,626 $36,534,919 6.30%Earning Assets $1,005,029,091 $14,486,664 5.72% 1,054,061,947 15,723,626 5.93% $1,025,427,037 $44,941,463 5.86% 1,045,014,841 46,488,989 5.94%Assets 1,111,788,038 $1,080,678,240 1,100,466,584 $1,058,353,304LiabilitiesInterest Checking $127,149,614 $998,124 3.11% $204,529,638 $2,268,166 4.41% $125,048,338 $2,907,310 3.11% $220,192,189 $7,259,619 4.40%Money Market $320,887,145 $2,722,629 3.37% $259,041,124 $2,686,977 4.13% $281,254,921 $7,037,405 3.35% $254,623,619 $8,097,281 4.25%Savings $2,415,353 $1,051 0.17% $3,098,470 $1,188 0.15% $4,506,656 $3,756 0.11% $3,020,096 $3,311 0.15%Time Deposits $317,448,404 $3,314,747 4.14% $286,346,982 $3,012,594 4.19% $368,739,671 $11,309,346 4.10% $278,620,782 $8,498,539 4.07%Interest Bearing Deposits $767,900,516 $7,036,551 3.64% 753,016,214 7,968,925 4.21% 779,549,586 $21,257,817 3.65% 756,456,686 23,858,750 4.21%Borrowings $61,329,539 $701,474 4.54% $118,452,626 $1,613,452 5.42% $67,579,944 $2,338,844 4.63% $103,827,577 $3,667,858 4.72%Interest Bearing Liabilities 829,230,055 $7,738,025 3.70% 871,468,840 9,582,377 4.37% 847,129,530 23,596,661 3.71% 860,284,263 27,526,608 4.27%Non Interest Bearing Deposits $ 133,933,651 $ 143,171,313 $ 138,197,133 $ 145,246,107Cost of Funds 3.19% 3.76% 3.20% 3.66%Net Interest Margin $6,748,638 2.66% $ 6,141,249 2.32% $ 21,344,802 2.78% $ 18,962,381 2.42%
Selected Financial Data by Quarter Ended:(Unaudited)Balance Sheet Ratios September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Loans held-for-investment to Deposits 86.72% 80.83% 82.65% 84.43% 87.42%Income Statement Ratios (Quarterly)Return on Average Assets (ROAA) 0.41% 0.29% 0.76% 0.41% 0.12%Return on Average Equity (ROAE) 5.57% 3.97% 9.95% 5.58% 1.70%Efficiency Ratio 77.43% 77.57% 69.22% 84.07% 88.13%Net Interest Margin 2.66% 2.66% 3.03% 2.44% 2.32%Yield on Average Earning Assets 5.72% 5.73% 6.11% 5.76% 5.93%Yield on Securities 4.29% 4.39% 4.55% 4.69% 4.85%Yield on Loans 6.22% 6.20% 6.74% 6.15% 6.30%Cost of Funds 3.19% 3.19% 3.23% 3.46% 3.76%Noninterest income to Total Revenue 17.42% 16.02% 11.25% 16.51% 15.90%Liquidity RatiosUninsured Deposits to Total Deposits 24.51% 22.51% 22.50% 21.55% 22.51%Total Liquidity to Uninsured Deposits 136.91% 167.83% 122.33% 162.14% 150.84%Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 209.14% 252.65% 292.23% 264.35% 264.41%Tangible Common Equity Ratio 8.45% 7.85% 7.68% 7.47% 7.54%Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities) 8.27% 7.64% 7.50% 7.27% 7.38%Available-for-Sale securities (as % of total securities) 90.64% 90.87% 91.12% 91.16% 91.47%Per Share DataTangible Book Value $12.45 $12.01 $11.87 $11.39 $11.64Tangible Book Value (ex AOCI) $14.58 $14.39 $14.26 $13.94 $13.78Share Price DataClosing Price $11.52 $11.26 $9.90 $10.32 $11.50Book Value Multiple 93% 94% 83% 91% 99%Common Stock DataOutstanding Shares at End of Period 7,002,103 7,002,103 7,002,103 7,150,055 7,133,105Weighted Average shares outstanding, basic 7,134,446 7,137,779 7,283,696 7,268,087 7,263,880Weighted Average shares outstanding, diluted 7,184,688 7,140,491 7,285,900 7,324,559 7,299,553Capital Ratios (Bank Only)Tier 1 Leverage ratio 11.23% 10.66% 10.76% 10.39% 10.23%Common Equity Tier 1 ratio 14.64% 14.30% 14.14% 13.57% 13.21%Tier 1 Risk Based Capital ratio 14.64% 14.30% 14.14% 13.57% 13.21%Total Risk Based Capital ratio 15.53% 15.20% 14.95% 14.35% 14.22%Credit QualityNet Charge-offs to Average Loans 0.13% 0.01% 0.03% 0.26% 0.01%Total Non-performing Loans to loans held-for-investment 2.30% 1.45% 1.45% 1.78% 1.52%Total Non-performing Assets to Total Assets 1.65% 0.98% 1.01% 1.25% 1.07%Nonaccrual Loans to loans held-for-investment 2.30% 1.45% 1.45% 1.78% 1.52%Provision for Loan Losses $496,824 $688,865 $284,683 $14,922 $546,439Allowance for Loan Losses to net loans held-for-investment 0.96% 0.96% 0.88% 0.85% 1.12%Allowance for Loan Losses to net loans held-for-investment (ex PPP loans) 0.96% 0.96% 0.88% 0.85% 1.12%
FREEDOM FINANCIAL HOLDINGS, INC.CONSOLIDATED SELECTED FINANCIAL DATARECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:Pre-tax, Pre-Provision Income (Non-GAAP) Quarter Ending September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Net Income $ 1,122,930 $ 799,896 $ 2,019,348 $ 1,127,060 $ 344,919+ Provision Expense 496,824 688,865 284,683 14,922 546,439+ Provision Expense+ Income Tax Expense 224,456 347,943 373,138 83,793 (30,663)Pre-tax,Pre-Provision Income (non-GAAP) $ 1,844,211 $ 1,836,704 $ 2,677,169 $ 1,225,775 $ 860,6961Tangible Book Value (ex-AOCI) (non-GAAP) Quarter Ending September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Shareholder's Equity $ 87,193,193 $ 84,123,510 $ 83,134,747 $ 81,439,406 $ 83,026,214Outstanding Shares at End of Period 7,002,103 7,002,103 7,002,103 7,150,055 7,133,105Tangible Book Value (GAAP) $ 12.45 $ 12.01 $ 11.87 $ 11.39 $ 11.64Accumulated Other Comprehensive Income (Net) (AOCI) $ (14,881,004) $ (16,657,368) $ (16,748,443) $ (18,240,683) $ (15,296,856)AOCI per share equivalent (2.13) (2.38) (2.39) (2.55) (2.14)Tangible Book Value (ex-AOCI) (non-GAAP) $ 14.58 $ 14.39 $ 14.26 $ 13.94 $ 13.78 Quarter Ending Year EndingIncome on Tax Exempt Securities September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 September 30, 2025 September 30, 2024Tax Equivalent Adjustment $ 123,066 $ 123,678 $ 124,101 $ 159,233 $ 160,419 $ 370,844 $ 483,861Income on Tax Exempt Securities (Non-GAAP) 32,714 32,877 32,988 42,328 42,643 98,579 128,621 $ 155,780 $ 156,555 $ 157,089 $ 201,561 $ 203,062 $469,423 $612,4822Net Interest MarginAverage Earning Assets $1,005,029,091 $ 1,044,711,785 $ 1,033,892,935 $ 1,055,970,602 $ 1,054,061,947 $ 1,025,427,037 $ 1,045,014,841Yield on Interest-Earning Assets (FTE) (Non-GAAP) 5.72% 5.73% 6.11% 5.76% 5.93% 5.86% 5.94%Net Interest Margin (NIM) (FTE) (Non-GAAP) 2.66% 2.66% 3.03% 2.44% 2.32% 2.78% 2.42%2 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 assets3Efficiency Ratio (Non-GAAP) Quarter Ending Year Ending September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 September 30, 2025 September 30, 2024Net Interest Income $ 6,748,638 $ 6,876,162 $ 7,719,910 $ 7,719,910 $ 6,098,606 $ 21,344,800 $ 18,833,761Non-Interest Income 1,423,274 1,312,094 978,170 978,170 1,153,380 3,713,539 3,544,981Total Revenue $ 8,171,912 $ 8,188,256 $ 8,698,079 $ 8,698,080 $ 7,251,986 $ 25,058,339 $ 22,378,742Non-Interest Expense 6,327,702 6,351,552 6,020,911 6,020,911 6,391,291 18,700,258 18,669,352Efficiency Ratio (Non-GAAP) 77.43% 77.57% 69.22% 69.22% 88.13% 74.63% 83.42%4Liquidity Ratios (Non-GAAP) Quarter Ending September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Available-for-Sale Securities (as % of total securities) 90.64% 90.87% 91.12% 91.16% 91.47%Uninsured Deposits to Total Deposits 24.51% 22.51% 22.50% 21.55% 22.51%Total Liquidity to Uninsured Deposits (Non-GAAP) 136.91% 167.83% 122.33% 162.14% 150.84%Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 209.14% 252.65% 292.23% 264.35% 264.41%Tangible Common Equity Ratio (Non-GAAP) 8.45% 7.85% 7.68% 7.47% 7.54%Tangible Common Equity Ratio(adjusted for unrealized losses 8.27% 7.64% 7.50% 7.27% 7.38%on HTM Securities) (Non-GAAP)4 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.5Total Revenue (Non-GAAP) Quarter Ending Year-to-Date September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 September 30, 2025 September 30, 2024Net Interest Income $ 6,748,638 $ 6,876,162 $ 7,719,910 $ 6,424,381 $ 6,098,606 $ 21,344,800 $ 18,833,761Non-Interest Income 1,423,274 1,312,095 978,170 1,270,301 1,153,380 3,713,539 3,544,981Total Revenue (non-GAAP) $ 8,171,912 $ 8,188,257 $ 8,698,080 $ 7,694,682 $ 7,251,986 $ 25,058,339 $ 22,378,742
Contact:Scott ClarkExecutive Vice President & Chief Financial OfficerPhone: 703-667-4119Email: sclark@freedom.bank
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