FT Markets Data
Freedom Bank of Virginia

Freedom Financial Holdings Announces Earnings for First Quarter of 2025

FAIRFAX, Va. , April 29, 2025 /PRNewswire/ -- 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 $2,019,348 or $0.28 per diluted share for the first quarter compared to net income of $1,156,906, or $0.16 per diluted share for the three months ended December 31, 2024, and net income of $1,164,226 or $0.16 per diluted share for the three months ended March 31, 2024.

Joseph J. Thomas, President, and CEO, commented, "We are pleased to start off 2025 with strong results with net income increasing 73.4% over the comparable quarter in 2024 sustaining the momentum we gained in the second half of last year.   We continue to see improvement in our cost of funds dropping 23 basis points in the first quarter enabling net interest margin expansion of 59 basis points to 3.03%.  Despite the challenging economic environment,  we continue to see improvement in the credit quality of our loan portfolio with non-accrual loans down 22% to $10.7 million.  Our entire team is working hard to grow local, core deposits and we experienced a 26% annualized increase in non-interest deposits in the quarter.  With our organic core deposit growth, cash flow from investments, and loan pre-payments, we are driving improved financial performance and franchise profile."

First Quarter 2025 Highlights include:

  • The Company posted net income of $2,019,348 or $0.28 per diluted share for the first quarter compared to net income of $1,156,906 or $0.16 per diluted share for the three months ended December 31, 2024, and net income of $1,164,226 or $0.16 per diluted share for the three months ending March 31, 2024.
  • Tangible Book Value per share increased during the quarter to $11.87 on March 31, 2025, compared to $11.39 on December 31, 2024.
  • Return on Average Assets ("ROAA") was 0.76% for the quarter ended March 31, 2025, compared to ROAA of 0.41% for the quarter ended December 31, 2024, and 0.43% for the three months ended March 31, 2024.
  • Return on Average Equity ("ROAE") was 9.95% for the quarter ended March 31, 2025, compared to ROAE of 5.58% for the three months ended December 31, 2024, and 6.05% for the three months ended March 31, 2024.
  • Total Assets were $1.08 billion on March 31, 2025, a decrease of $8.3 million or 0.77% from total assets on December 31, 2024.
  • Loans held-for-investment (excluding PPP loans) decreased by $15.1 million or 1.96% during the quarter.
  • Total deposits increased by $1.34 million or by 0.15% during the quarter. Non-interest-bearing demand deposits increased by $8.83 million during the quarter to $142.5 million and represented 15.64% of total deposits on March 31, 2025.
  • The net interest margin1 increased in the first quarter to 3.03%, higher by 59 basis points compared to the linked quarter and higher by 49 basis points compared to the same period in 2024. The increase in the net interest margin across linked quarters was a result of lower funding costs and recognition of previously uncollected interest from problem loan resolutions, with such interest contributing 41 basis points to the net interest margin.
  • The cost of funds was 3.23% for the first quarter, lower by 23 basis points compared to the linked quarter and lower by 37 basis points compared to the same period in 2024, as a result of a decline in deposit costs and borrowing costs.
  • Non-interest income decreased by 23% compared to the linked quarter and decreased by 16.70% compared to the same period in 2024. The decrease in non-interest income in the first quarter of 2025 was primarily due to lower revenue from the gain on sale of SBA loans and bank service charges and fees.
  • Non-interest expense decreased by $447,994 in the first quarter or by 6.93% compared to the linked quarter and decreased by 3.3% compared to the same period in 2024. The decrease in expenses compared to the linked quarter was largely due to a reduction in non-recurring expenses in prior periods primarily related to software costs for the new online banking platform, consulting fees related to FDICIA, and legal fees related to loan workouts. Excluding these non-recurring costs, non-interest expenses would have been flat to the prior quarter.
  • The Efficiency Ratio2 was 69.22% for the quarter ended March 31, 2025, compared to 84.07% for the linked quarter and 80.64% for the same period in 2024.
  • Uninsured deposits were 22.50% of total deposits and total liquidity to uninsured deposits3 was 122.33% of uninsured deposits on March 31, 2025.
  • Net charge offs were 0.03% of average loans compared to 0.26% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 1.45% on March 31, 2025, compared to 1.78% on December 31, 2024, and 1.74% on March 31, 2024. The ratio of non-performing assets to total assets was 1.01% on March 31, 2025, compared to 1.25% on December 31, 2024, and 1.21% on March 31, 2024.
  • The Company recognized a provision for loan losses of $284,683, primarily related to specific reserves for one loan relationship.
  • The ratio of the allowance for loan losses to loans held-for-investment was 0.88% compared to 0.85% in the linked quarter.
  • The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.76%, Common Equity Tier 1 ratio of 14.14%, Tier 1 Risk Based Capital ratio of 14.14% and a Total Capital ratio of 14.95% as of March 31, 2025.

Net Interest Income
The Company recorded net interest income of $7.72 million for the first quarter of 2025, higher by 20.17% compared to the linked quarter, and lower by 17.91% compared to the same period in 2024. The net interest margin in the first quarter of 2025 was 3.03%, higher by 59 basis points compared to the linked quarter and higher by 49 basis points compared to the same period in 2024.

The following factors contributed to the changes in net interest margin during the first quarter of 2025 compared to the linked and calendar quarters.

  • Yields on average earning assets were 6.11% in the first quarter of 2025, higher by 35 basis points compared to the linked quarter, and higher by 12 basis points compared to the prior year calendar quarter. The increase in yields on average earning assets in the first quarter was primarily due to recognition of uncollected interest from problem loan resolutions.
  • Loan yields increased by 59 basis points to 6.74% from 6.15% in the linked quarter, while yields on investment securities decreased by 14 basis points to 4.55% from 4.69% in the linked quarter. Loan yields increased by 35 basis points, while yields on investment securities decreased by 33 basis points compared to the calendar quarter.
  • Cost of funds decreased by 23 basis points to 3.23% from 3.46% in the linked quarter, and by 37 basis points compared to the prior year quarter, due to lower deposit costs.

Non-interest Income
Non-interest income was $1 million for the first quarter, a decrease of 23% when compared to the linked quarter and an increase of 16.70% when compared to the same period in 2024. The decrease in non-interest income in the first quarter of 2025 compared to the linked quarter was due to lower revenue from the gain on sale of SBA loans and bank service charges and fees.

Total Revenue 4
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 13.04% compared to the linked quarter and higher by 12.65% compared to the calendar quarter in 2024. The increase in total revenue compared to the linked quarter was due to an increase in the net interest margin.

Non-interest Expense
Non-interest expense in the first quarter decreased by $447,995 or by 6.93% compared to the linked quarter and decreased by 3.30% compared to the same period in 2024. The increase in expenses compared to the linked quarter was largely non-recurring and primarily related to personnel costs, an increase in software costs for the new online banking platform, consulting fees related to FDICIA compliance, and legal fees related to loan workouts. Excluding these non-recurring costs, non-interest expenses would have been flat to the prior quarter. The increase in expenses compared to the calendar quarter primarily related to higher compensation costs, higher occupancy costs and higher professional fees, largely related to legal fees and accounting fees related to FDICIA.

The Efficiency Ratio was 69.22% for the quarter ended March 31, 2025, compared to 84.07% for the linked quarter and 80.64% for the same period in 2024.  

Asset Quality
Non-accrual loans decreased in the first quarter and were 1.45% of loans held-for-investment compared to 1.78% 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 1.01% of total assets as of March 31, 2025, compared to 1.25% of total assets, at the end of the linked quarter.

The Company recognized a provision for loan losses of $284,683, primarily related to specific reserves for one loan relationship.

The Company's ratio of Allowance for Loan Losses to loans held-for-investment was 0.88% as of March 31, 2025, compared to the ratio of Allowance for Loan Losses to loans held-for-investment of 0.85% as of December 31, 2024.

Total Assets
Total assets on March 31, 2025, were $1.08 billion compared to total assets of $1.09 billion on December 31, 2024.  Changes in major asset categories since December 31, 2024, were as follows:

  • Interest bearing deposits at banks decreased by $16.0 million.
  • Available for sale investment balances decreased by $5.88 million.
  • Other loans held-for investment decreased by $15.07 million

Total Liabilities
Total liabilities on March 31, 2025, were $1.00 billion compared to total liabilities of $1.01 billion on December 31, 2024. Total deposits were $910.87 million on March 31, 2025, compared to total deposits of $909.53 million on December 31, 2024. Non-interest-bearing demand deposits increased by $8.83 million during the first quarter and comprised 15.64% of total deposits at the end of the first quarter. Other interest-bearing demand deposits decreased by $3.28 million and time deposits decreased by $8.38 million during the quarter. Federal Home Loan Bank borrowings decreased during the quarter by $10.0 million.

Stockholders' Equity and Capital
Stockholders' equity as of March 31, 2025, was $81.11 million compared to $81.44 million on December 31, 2024. AOCI improved during the first quarter as there was a decrease in unrealized losses on available-for-sale securities. The tangible book value of the Company's common stock on March 31, 2025, was $11.87 per share compared to $11.39 on December 31, 2024. Excluding AOCI losses/gains5, the tangible book value of the Company's common stock on March 31, 2025, was $14.26 per share compared to $13.94 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.  As of March 31, 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 March 31, 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 March 31, 2025, and December 31, 2024, were as follows:

March 31, 2025

December 31, 2024




Total Capital Ratio

14.95 %

14.35 %




Tier 1 Capital Ratio

14.14 %

13.57 %




Common Equity Tier 1 Capital Ratio

14.14 %

13.57 %




Leverage Ratio

10.76 %

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 at www.freedom.bank.

Forward Looking Statements

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the 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 COVID-19 and the impact of geopolitical conflicts, such as the war between Russia and Ukraine;  adverse developments in the financial services industry such as the recent bank failures; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for loan and lease losses; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, 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.

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

 

FREEDOM FINANCIAL HOLDINGS


CONSOLIDATED BALANCE SHEETS






(Unaudited)


(Audited)


March 31,


December 31,


2025


2024

ASSETS




Cash and Due from Banks

$                6,456,093


$                 5,685,008

Interest Bearing Deposits with Banks

39,016,262


23,004,874

Securities Available-for-Sale

203,807,955


209,687,859

Securities Held-to-Maturity

19,852,060


20,315,651

Restricted Stock Investments

5,777,800


6,249,000

Loans Held for Sale

5,487,972


5,963,969

PPP Loans Held for Investment 

137,066


159,825

Other Loans Held for Investment 

752,664,602


767,737,719

Allowance for Credit Losses

(6,592,220)


(6,534,757)

Net Loans

751,697,420


761,362,787

Bank Premises and Equipment, net

742,588


767,773

Accrued Interest Receivable

3,991,413


4,155,077

Deferred Tax Asset

7,230,083


7,560,441

Bank-Owned Life Insurance

27,781,480


27,560,616

Right of Use Asset, net

3,361,641


1,874,403

Other Assets

12,428,097


16,299,753

Total Assets

$                1,082,142,892


$                1,090,487,211

LIABILITIES AND STOCKHOLDERS' EQUITY




Deposits




Demand Deposits




Non-interest Bearing

$                142,497,191


$                133,665,194

Interest Bearing

472,115,491


475,397,117

Savings Deposits

8,034,522


3,866,241

Time Deposits

288,222,304


296,603,142

Total Deposits

910,869,508


909,531,694

Federal Home Loan Bank Advances

55,000,000


65,000,000

Other Borrowings

146,377


159,825

Subordinated Debt (Net of Issuance Costs)

19,870,125


19,850,643

Accrued Interest Payable

$                1,846,477


2,445,741

Lease Liability

1,855,161


2,013,912

Other Liabilities

9,420,497


10,045,990

Total Liabilities

$           999,008,145


$                1,009,047,805

Stockholders' Equity




Preferred stock, $0.01 par value, 5,000,000 shares authorized:



0 Shares Issued and Outstanding, March 31, 2025 and December 31, 2024




Common Stock, $0.01 Par Value, 25,000,000 Shares:




23,000,000 Shares Voting and 2,000,000 Shares Non-voting.



Voting Common Stock:




7,002,103 and 7,268,087 Shares Issued and Outstanding

    at March 31, 2025 and December 31, 2024 respectively

    (Includes 135,343 and 118,032 Unvested Shares
    on March 31, 2025, December 31, 2024

70,021


71,501

Non-Voting Common Stock:

 0 Shares Issued and Outstanding at
 March 31, 2025 and December 31, 2024 

 respectively)

 

-


 

-

 Additional Paid-in Capital 

56,532,591


58,347,356

Accumulated Other Comprehensive Income, Net

(16,748,443)


(18,240,683)

Retained Earnings

43,280,578


41,261,232

Total Stockholders' Equity

83,134,747


81,439,406

Total Liabilities and Stockholders' Equity

$                1,082,142,892


$                1,090,487,211

 

FREEDOM FINANCIAL HOLDINGS


CONSOLIDATED STATEMENTS OF OPERATIONS







(Unaudited)


(Unaudited)



For the three


For the three



months ended


months ended



March 31, 2025


March 31, 2024


Interest Income





Interest and Fees on Loans

$                            12,703,493


$                                              12,283,239


Interest on Investment Securities

2,613,258


2,871,479


Interest on Deposits with Other Banks

262,507


328,257


Total Interest Income

15,579,258


15,482,975


Interest Expense





Interest on Deposits

6,946,194


8,023,891


Interest on Borrowings

913,154


911,927


Total Interest Expense

7,859,348


8,935,817







Net Interest Income

7,719,910


6,547,158


Provision for Credit Losses

(284,683)


27,486


Net Interest Income after





Provision for Credit Losses

7,435,227


6,574,644


Non-Interest Income





Mortgage Loan Gain-on-Sale and Fee Revenue

654,530


536,724


 SBA Gain-on-Sale Revenue

-


287,032


Service Charges and Other Income

70,334


117,361


Gain on Sale of Securities

-


-


 Servicing Income

32,442


35,253


Swap Fee Income

-


-


Increase in Cash Surrender Value of Bank-





owned Life Insurance

220,864


197,963


Total Non-interest Income

978,170


1,174,333







Total Revenue6

8,698,080


7,721,491







Non-Interest Expenses





Officer and Employee Compensation





and Benefits

3,769,535


3,735,139


Occupancy Expense

242,163


391,876


Equipment and Depreciation Expense

8,726


20,661


Insurance Expense

225,766


224,007


Professional Fees

470,310


526,574


Data and Item Processing

538,213


435,967


Advertising  

83,115


114,999


Franchise Taxes and State Assessment Fees

314,214


309,869


Mortgage Fees and Settlements

87,258


95,001


Other Operating Expense

281,611


372,233


Total Non-interest Expenses

6,020,911


6,226,326


Income Before Income Taxes

2,392,486


1,522,651


Income Tax Expense/(Benefit)

373,138


358,425


Net Income

$                                  2,019,348


$                                                    1,164,226


Earnings per Common Share - Basic

$                                            0.28


$                                                              0.16


Earnings per Common Share - Diluted

$                                            0.28


$                                                              0.16


Weighted-Average Common Shares





Outstanding - Basic

7,283,696


7,285,108


Weighted-Average Common Shares 





Outstanding - Diluted

7,285,900


7,325,415












Efficiency Ratio

69.22 %


80.64 %


 

FREEDOM FINANCIAL HOLDINGS

CONSOLIDATED 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


March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024


March 31, 2024

Interest Income










Interest and Fees on Loans

$                 12,703,493


$                            11,991,578


$                 12,358,391


$                 11,893,288


$                 12,283,239

Interest on Investment Securities

2,613,258


2,798,420


2,932,219


2,927,306


2,871,479

Interest on Deposits with Other Banks  

262,507


446,184


390,373


375,815


328,257

Total Interest Income

15,579,258


15,236,182


15,680,983


15,196,409


15,482,975











Interest Expense










Interest on Deposits

6,946,194


7,628,382


7,968,925


7,865,934


8,023,891

Interest on Borrowings

913,154


1,183,419


1,613,452


1,142,481


911,926

Total Interest Expense

7,859,348


8,811,801


9,582,377


9,008,415


8,935,817











Net Interest Income

7,719,910


6,424,381


6,098,606


6,187,994


6,547,158

Provision for Credit Losses

(284,683)


(14,922)


546,439


(1,167,997)


(27,486)

Net Interest Income after










Provision/Recovery for Credit Losses

7,435,227


6,439,303


5,552,167


7,355,991


6,574,644

Non-Interest Income










Mortgage Loan Gain-on-Sale and Fee Revenue

654,530


769,060


649,097


745,366


536,724

 SBA Gain-on-Sale Revenue

-


-


-


-


287,032

Service Charges and Other Income

70,334


252,275


255,889


221,022


117,361

Gains on Sale of Securities

-


-


-


1,816


-

Servicing Income

32,442


36,090


36,752


42,268


35,253

Swap Fee Income

-


-


-


-


-

Increase in Cash Surrender Value of Bank-










owned Life Insurance

220,864


212,876


211,642


206,796


197,963

Total Non-interest Income

978,170


1,270,301


1,153,380


1,217,268


1,174,333





















Total Revenue5

$                       8,698,080


$                                  7,694,682


$                       7,251,986


$                       7,405,262


$                       7,721,491











Non-Interest Expenses










Officer and Employee Compensation










and Benefits

3,769,535


3,905,728


3,674,499


3,544,148


3,735,139

Occupancy Expense

242,163


233,967


233,807


255,233


391,876

Equipment and Depreciation Expense

8,726


20,951


285,083


185,959


20,661

Insurance Expense

225,766


228,224


232,774


229,259


224,007

Professional Fees

470,310


451,065


532,379


568,765


526,574

Data and Item Processing

538,213


684,698


433,431


395,579


435,967

Advertising

83,115


90,368


172,136


162,354


114,999

Franchise Taxes and State Assessment Fees

314,214


316,976


329,056


276,843


309,869

Mortgage Fees and Settlements

87,258


119,037


123,853


83,617


95,001

Other Operating Expense

281,611


417,893


374,273


349,979


372,233











Total Non-interest Expenses

6,020,911


6,468,907


6,391,291


6,051,736


6,226,326

Income before Income Taxes

2,392,486


1,240,697


314,256


2,521,526


1,522,651











Income Tax Expense

373,138


83,793


(30,663)


477,293


358,425











Net Income

$                       2,019,348


$                                  1,156,904


$                          344,919


$                        2,044,233


$                       1,164,226

Earnings per Common Share - Basic

$                                 0.28


$                                            0.16


$                                 0.05


$                                 0.28


$                                 0.16

Earnings per Common Share - Diluted

$                                 0.28


$                                            0.16


$                                 0.05


$                                 0.28


$                                 0.16

Weighted-Average Common Shares










Outstanding - Basic

7,283,696


7,268,087


7,263,880


7,267,044


7,285,108

Weighted-Average Common Shares 










Outstanding - Diluted

7,285,900


7,324,559


7,299,553


7,305,392


7,325,415

 

Average Balances, Income and Expenses, Yields and Rates




























(Unaudited)





























































Three Months Ended




Three Months Ended








Three Months Ended






Three Months Ended






Three Months Ended






March 31, 2025




December 31, 2024








September 30, 2024






June 30, 2024






March 31, 2024






Average Balance

Income/
Expense

Yield


Average Balance


Income/
Expense


Yield




Average Balance


Income/
Expense


Yield


Average Balance


Income/
Expense


Yield


Average Balance


Income/
Expense


Yield

Assets






























Cash

$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 %


$               28,655,861


$           328,257


4.61 %































Investments (Tax Exempt)

$9,803,235

$188,489

7.80 %


20,664,409


201,561






20,716,896


203,062




20,889,466


204,795




21,297,872


204,625



Investments (Taxable)

$223,040,366

$2,424,769

4.41 %


220,415,008


2,639,187






223,526,525


2,771,800




222,105,603


2,765,518




219,134,075


2,709,825



Total Investments

$232,843,601

$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 %


240,431,947


2,914,450


4.88 %































Total Loans 

$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 %


773,171,917


12,283,239


6.39 %































Earning Assets

$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 %


1,042,259,725


15,525,946


5.99 %



























































































Assets

$1,083,851,440




$        1,110,466,582








$          1,111,788,038






$             1,096,367,899






$         1,093,119,403



































Liabilities






























Interest Checking

$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 %


$             229,520,401


$       2,515,315


4.41 %

Money Market

$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 %


274,088,309


2,930,085


4.30 %

Savings

$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 %


3,416,245


1,129


0.13 %

Time Deposits 

$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 %


261,965,440


2,577,362


3.96 %

Interest Bearing Deposits

$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 %


768,990,395


8,023,891


4.20 %































Borrowings

$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 %


$               84,021,016


$           911,926


4.37 %































Interest Bearing Liabilities

$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 %


853,011,411


8,935,817


4.21 %































Non Interest Bearing Deposits

$139,885,803




$            153,895,858








$              143,171,313






$                 146,541,629






$             146,048,180



































Cost of Funds



3.23 %






3.46 %








3.76 %






3.61 %






3.60 %































Net Interest Margin


$7,719,911

3.03 %




$         6,466,709


2.44 %






$       6,141,249


2.32 %




$       6,231,002


2.41 %




$       6,590,129


2.54 %

Shareholders Equity

$82,331,438




$              82,536,219








$                80,948,259






$                   76,737,805






$               77,333,773





 

Selected Financial Data by Quarter Ended:






(Unaudited)






Balance Sheet Ratios

March 31, 2025

December 31, 2024

September 30, 2024

June 30, 2024

March 31, 2024

Loans held-for-investment to Deposits 

82.65 %

84.43 %

87.42 %

88.20 %

85.07 %

Income Statement Ratios (Quarterly)






Return on Average Assets (ROAA)

0.76 %

0.41 %

0.12 %

0.75 %

0.43 %

Return on Average Equity (ROAE)

9.95 %

5.58 %

1.70 %

10.71 %

6.05 %

Efficiency Ratio

69.22 %

84.07 %

88.13 %

81.72 %

80.64 %

Net Interest Margin

3.03 %

2.44 %

2.32 %

2.41 %

2.54 %

Yield on Average Earning Assets

6.11 %

5.76 %

5.93 %

5.90 %

5.99 %

Yield on Securities

4.55 %

4.69 %

4.85 %

4.92 %

4.88 %

Yield on Loans

6.74 %

6.15 %

6.30 %

6.22 %

6.39 %

Cost of Funds

3.23 %

3.46 %

3.76 %

3.61 %

3.60 %

Noninterest income to Total Revenue

11.25 %

16.51 %

15.90 %

16.44 %

15.21 %

Liquidity Ratios






Uninsured Deposits to Total Deposits

22.50 %

21.55 %

22.51 %

22.76 %

24.31 %

Total Liquidity to Uninsured Deposits

122.33 %

162.14 %

150.84 %

150.53 %

156.40 %

Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days

292.23 %

264.35 %

264.41 %

317.68 %

386.89 %

Tangible Common Equity Ratio 

7.68 %

7.47 %

7.54 %

7.24 %

7.09 %

Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)

7.50 %

7.27 %

7.38 %

7.01 %

6.85 %







Available -for-Sale securities (as % of total securities)

91.12 %

91.16 %

91.47 %

91.33 %

91.24 %

Per Share Data






Tangible Book Value

$11.87

$11.39

$11.64

$11.11

$10.83

Tangible Book Value (ex AOCI)

$14.26

$13.94

$13.78

$13.70

$13.39

Share Price Data






Closing Price

$9.90

$10.32

$11.50

$9.75

$9.75

Book Value Multiple

98 %

91 %

99 %

88 %

92 %

Common Stock Data






Outstanding Shares at End of Period

7,002,103

7,150,055

7,133,105

7,137,030

7,155,058

Weighted Average shares outstanding, basic

7,283,696

7,268,087

7,263,880

7,267,044

7,285,108

Weighted Average shares outstanding, diluted

7,285,900

7,324,559

7,299,553

7,305,392

7,325,415

Capital Ratios (Bank Only)






Tier 1 Leverage ratio

10.76 %

10.39 %

10.23 %

10.28 %

10.26 %

Common Equity Tier 1 ratio

14.14 %

13.57 %

13.21 %

13.05 %

12.92 %

Tier 1 Risk Based Capital ratio

14.14 %

13.57 %

13.21 %

13.05 %

12.92 %

Total Risk Based Capital ratio

14.95 %

14.35 %

14.22 %

14.01 %

14.00 %

Credit Quality






Net Charge-offs to Average Loans

0.03 %

0.26 %

0.01 %

0.01 %

0.14 %

Total Non-performing Loans to loans held-for-investment

1.45 %

1.78 %

1.52 %

1.49 %

1.74 %

Total Non-performing Assets to Total Assets

1.01 %

1.25 %

1.07 %

1.06 %

1.21 %

Nonaccrual Loans to loans held-for-investment

1.45 %

1.78 %

1.52 %

1.49 %

1.74 %

Provision for Credit Losses

($284,683)

($14,922)

$546,439

($1,167,997)

($27,486)

Allowance for Credit Losses to net loans held-for-investment

0.88 %

0.85 %

1.12 %

1.06 %

1.24 %

Allowance for Credit Losses to net loans held-for-investment (ex PPP loans)

0.88 %

0.85 %

1.12 %

1.06 %

1.24 %

 

FREEDOM FINANCIAL HOLDINGS, INC.


CONSOLIDATED SELECTED FINANCIAL DATA


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES













Quarter Ending

1 Net Interest Margin

March 31, 2025


December 31,2024


September 30,2024


June 30, 2024


March 31, 2024


Average Earning Assets

$       1,033,892,386


$        1,055,970,602


$        1,054,061,947


$        1,038,623,438


$       1,042,259,725


Yield on Interest Earning Assets (GAAP)

6.10 %


5.80 %


5.98 %


5.88 %


5.97 %


Yield on Interest-Earning Assets (FTE) (Non-GAAP)

6.11 %


5.76 %


5.93 %


5.90 %


5.99 %


Net Interest Margin (NIM) (GAAP)

3.02 %


2.45 %


2.33 %


2.40 %


2.53 %


Net Interest Margin (NIM) (FTE) (Non-GAAP)

3.03 %


2.44 %


2.32 %


2.41 %


2.54 %













1 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 assets






















2 Efficiency Ratio (Non-GAAP)

 Quarter Ending


March 31, 2025


December 31,2024


September 30,2024


June 30, 2024


March 31, 2024


Net Interest Income

$              7,719,910


$               6,424,381


$               6,098,606


$               6,187,994


$              6,547,158


Non-Interest Income

978,170


1,270,301


$               1,153,380


1,217,268


1,174,333


Total Revenue

$              8,698,080


$               7,694,682


$               7,251,986


$               7,405,262


$              7,721,491


Non-Interest Expense

6,020,911


6,468,907


$               6,391,291


6,051,736


6,226,326


Efficiency Ratio (Non-GAAP)

69.22 %


84.07 %


88.13 %


81.72 %


80.64 %













3 Liquidity Ratios (Non-GAAP)

Quarter Ending


March 31, 2025


December 31,2024


September 30,2024


June 30, 2024


March 31, 2024


Available-for-Sale Securities (as % of total securities)

91.12 %


91.16 %


91.47 %


91.33 %


91.31 %


Uninsured Deposits to Total Deposits

22.50 %


21.55 %


22.51 %


22.76 %


24.31 %


Total Liquidity to Uninsured Deposits

122.33 %


162.14 %


150.84 %


150.53 %


156.40 %


Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days

292.23 %


264.35 %


264.41 %


317.68 %


386.89 %


Tangible Common Equity Ratio

7.68 %


7.47 %


7.54 %


7.24 %


7.09 %


Tangible Common Equity Ratio(adjusted for unrealized losses 

7.50 %


7.27 %


7.38 %


7.01 %


6.85 %


on HTM Securities)






















4Total 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 Reserve Bank






















4 Total Revenue (Non-GAAP)

Quarter Ending


March 31, 2025


December 31,2024


September 30,2024


June 30, 2024


March 31, 2024


Net Interest Income

$              7,719,910


$               6,424,381


$               6,098,606


$               6,187,994


$              6,547,158


Non-Interest Income

978,170


1,270,301


$               1,153,380


1,217,268


1,174,333


Total Revenue (non-GAAP)

$              8,698,080


$               7,694,682


$               7,251,986


$               7,405,262


$              7,721,491













5 Tangible Book Value (ex-AOCI) (non-GAAP)

Quarter Ending


March 31, 2025


December 31,2024


September 30,2024


January 0, 1900


January 0, 1900


Shareholder's Equity

$            83,134,747


$             81,439,406


$             83,026,214


$             79,303,635


$            77,460,385


Outstanding Shares at End of Period

7,002,103


7,150,055


7,133,105


7,137,030


7,155,058


Tangible Book Value (GAAP)

$                     11.87


$                      11.39


$                      11.64


$                      11.11


$                     10.83


Accumulated Other Comprehensive Income (Net) (AOCI)

$          (16,748,443)


$           (18,240,683)


$           (15,296,856)


$           (18,466,282)


$          (18,326,721)


AOCI per share equivalent

(2.39)


(2.55)


(2.14)


(2.59)


(2.56)


Tangible Book Value (ex-AOCI) (non-GAAP)

$                     14.26


$                      13.94


$                      13.78


$                      13.70


$                     13.39














Quarter Ending

Income on Tax Exempt Securities

March 31, 2025


December 31,2024


September 30,2024


June 30, 2024


March 31, 2024


Tax Equivalent Adjustment

$                 157,089


$                  159,233


$                  160,419


$                  161,788


$                 161,654


Income on Tax Exempt Securities (Non-GAAP)

41,758


42,328


$                    42,643


43,007


42,971



$                 198,847


$                  201,561


$                  203,062


$                  204,795


$                 204,625


 

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SOURCE Freedom Financial Holdings