FT Markets Data
Freedom Bank of Virginia

Freedom Financial Holdings Announces Earnings for Second Quarter of 2025

FAIRFAX, Va. , July 30, 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 $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.  

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 (excluding PPP 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 in SBIC'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 Revenue 6
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 value of 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, 2024


Total 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 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 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 HOLDINGS

CONSOLIDATED BALANCE SHEETS














(Unaudited)


(Unaudited)


(Audited)


June 30,


March 31,


December 31,


2025


2025


2024

ASSETS






Cash and Due from Banks

$                                  10,668,471


$                                     6,456,093


$                                     5,685,008

Interest Bearing Deposits with Banks

48,991,785


39,016,262


23,004,874

Securities Available-for-Sale

193,740,578


203,807,955


209,687,859

Securities Held-to-Maturity

19,475,547


19,852,060


20,315,651

Restricted Stock Investments

5,065,300


5,777,800


6,249,000

Loans Held for Sale

4,882,264


5,487,972


5,963,969

PPP Loans Held for Investment

133,049


137,066


159,825

Other Loans Held for Investment

742,071,827


752,664,602


767,737,719

Allowance for Loan Losses

(7,188,387)


(6,592,220)


(6,534,757)

Net Loans

739,898,753


751,697,420


761,362,787

Bank Premises and Equipment, net

717,599


742,588


767,773

Accrued Interest Receivable

4,567,221


3,991,413


4,155,077

Deferred Tax Asset

6,587,963


7,230,083


7,560,441

Bank-Owned Life Insurance

28,004,541


27,781,480


27,560,616

Right of Use Asset, net

1,572,800


3,361,641


1,874,403

Other Assets

12,791,140


12,428,097


16,299,753

Total Assets

$        1,072,081,698


$        1,082,142,892


$        1,090,487,211







LIABILITIES AND STOCKHOLDERS' EQUITY

-





Deposits






Demand Deposits






Non-interest Bearing

$                    126,922,031


$                    142,497,191


133,665,194

Interest Bearing

552,796,334


472,115,491


$                    475,397,117

Savings Deposits

2,550,937


8,034,522


3,866,241

Time Deposits

235,975,996


288,222,304


296,603,142

Total Deposits

918,245,298


910,869,508


909,531,694

Federal Home Loan Bank Advances

40,000,000


55,000,000


65,000,000

Other Borrowings

133,049


146,377


159,825

Subordinated Debt (Net of Issuance Costs)

19,889,606


19,870,125


19,850,643

Accrued Interest Payable

2,014,296


1,846,477


2,445,741

Lease Liability

1,694,646


1,855,161


2,013,912

Other Liabilities

5,981,294


9,420,497


10,045,990

Total Liabilities

$            987,958,189


$            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, June 30, 2025, March 31, 2025 and December 31, 2024






Common 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 Outstanding






    at June 30, 2025, March 31, 2025 and December 31, 2024 respectively

70,021


70,021


71,501

Non-Voting Common Stock:

-


-



0 Shares Issued and Outstanding at June 30, 2025, March 31, 2025






 and December 31, 2024 respectively)





-

 Additional Paid-in Capital

56,630,385


56,532,591


58,347,356

Accumulated Other Comprehensive Income, Net

(16,657,368)


(16,748,443)


(18,240,683)

Retained Earnings

44,080,472


43,280,578


41,261,232

Total Stockholders' Equity

$        84,123,509.55


83,134,747


81,439,406

Total Liabilities and Stockholders' Equity

$        1,072,081,698


$        1,082,142,892


$        1,090,487,211

 

FREEDOM FINANCIAL HOLDINGS

CONSOLIDATED 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, 2024

Interest Income









Interest and Fees on Loans


$                       11,673,927


$                       11,893,288


$                       24,377,509


$                       24,176,527

Interest on Investment Securities


2,450,914


2,927,306


5,064,172


5,798,785

Interest on Deposits with Other Banks


750,611


375,815


1,013,118


704,072

Total Interest Income


14,875,452


15,196,409


30,454,799


30,679,384

Interest Expense









Interest on Deposits


7,275,073


7,865,934


14,221,266


15,889,824

Interest on Borrowings


724,216


1,142,481


1,637,370


2,054,407

Total Interest Expense


7,999,289


9,008,415


15,858,637


17,944,231










Net Interest Income


6,876,162


6,187,994


14,596,162


12,735,154

Provision/(Recovery) for Loan Losses


688,865


(1,167,997)


973,548


(1,195,483)

Net Interest Income After









Provision for Loan Losses


6,187,298


7,355,991


13,622,614


13,930,637

Non-Interest Income









Mortgage Loan Gain-on-Sale and Fee Revenue

797,759


745,366


1,455,072


1,282,090

 SBA Gain-on-Sale Revenue


-


-


-


287,032

Service Charges and Other Income


270,230


221,022


344,121


353,445

Gain on Sale of Securities


-


1,816


-


(13,246)

 Servicing Income


21,045


42,268


47,147


77,522

Swap Fee Income


-


-


-


-

Increase in Cash Surrender Value of Bank-









owned Life Insurance


223,061


206,796


443,925


404,760

Total Non-interest Income


1,312,094


1,217,268


2,290,265


2,391,603










Total Revenue


8,188,257


7,405,262


16,886,427


15,126,757










Non-Interest Expenses









Officer and Employee Compensation









and Benefits


3,752,761


3,544,148


7,522,296


7,279,287

Occupancy Expense


244,279


255,233


486,442


647,109

Equipment and Depreciation Expense


16,619


185,959


25,345


53,081

Insurance Expense


220,346


229,259


446,112


453,266

Professional Fees


559,904


568,765


1,030,213


1,095,339

Data and Item Processing


595,492


395,579


1,133,705


985,084

Advertising 


151,676


162,354


234,791


277,352

Franchise Taxes and State Assessment Fees


314,444


276,843


628,658


586,713

Mortgage Fees and Settlements


99,819


83,617


174,548


178,617

Other Operating Expense


396,213


349,979


690,447


722,214

Total Non-interest Expenses


6,351,552


6,051,736


12,372,557


12,278,062

Income Before Income Taxes


1,147,840


2,521,523


3,540,322


4,044,178

Income Tax Expense/(Benefit)


347,943


477,293


721,082


835,718

Net Income


$                                 799,896


$                             2,044,230


$                             2,819,240


$                             3,208,460

Earnings per Common Share - Basic


$                                        0.11


$                                        0.28


$                                        0.39


$                                        0.44

Earnings per Common Share - Diluted


$                                        0.11


$                                        0.28


$                                        0.39


$                                        0.44

Weighted-Average Common Shares









Outstanding - Basic


7,137,779


7,267,044


7,151,171


7,276,076

Weighted-Average Common Shares









Outstanding - Diluted


7,140,491


7,305,392


7,153,655


7,314,424

 

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


June 30, 2025


March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024

Interest Income










Interest and Fees on Loans

$                           11,673,927


$                 12,703,493


$                 11,991,578


$                 12,358,391


$                 11,893,288

Interest on Investment Securities

2,450,914


2,613,258


2,798,420


2,932,219


2,927,306

Interest on Deposits with Other Banks 

750,610


262,507


446,184


390,373


375,815

Total Interest Income

14,875,451


15,579,258


15,236,182


15,680,983


15,196,409

Interest Expense










Interest on Deposits

7,275,073


6,946,194


7,628,382


7,968,925


7,865,934

Interest on Borrowings

724,216


913,154


1,183,419


1,613,452


1,142,481

Total Interest Expense

7,999,289


7,859,348


8,811,801


9,582,377


9,008,415











Net Interest Income

6,876,162


7,719,910


6,424,381


6,098,606


6,187,994

Provision/(Recovery) for Loan Losses

688,865


284,683


14,922


546,439


(1,167,997)

Net Interest Income after










Provision/Recovery for Loan Losses

6,187,297


7,435,227


6,409,459


5,552,166


7,355,991

Non-Interest Income










Mortgage Loan Gain-on-Sale and Fee Revenue

797,759


654,530


769,060


649,097


745,366

 SBA Gain-on-Sale Revenue

-


-


-


-


-

Service Charges and Other Income

270,230


70,334


252,275


255,889


221,022

Gains on Sale of Securities

-


-


-


-


1,816

Servicing Income

21,045


32,442


36,090


36,752


42,268

Swap Fee Income

-


-


-


-


-

Increase in Cash Surrender Value of Bank-










owned Life Insurance

223,061


220,864


212,876


211,642


206,796

Total Non-interest Income

1,312,094


978,170


1,270,301


1,153,380


1,217,268











Total Revenue5

8,188,256


$                       8,698,080


$                       7,694,682


$                       7,251,986


$                       7,405,262











Non-Interest Expenses










Officer and Employee Compensation










and Benefits

3,752,761


3,769,535


3,905,728


3,674,499


3,544,148

Occupancy Expense

244,279


242,163


233,967


233,807


255,233

Equipment and Depreciation Expense

16,619


8,726


20,951


16,648


32,420

Insurance Expense

220,346


225,766


228,224


232,774


229,259

Professional Fees

559,904


470,310


451,065


532,379


568,765

Data and Item Processing

595,492


538,213


684,698


701,865


549,118

Advertising

151,676


83,115


90,368


172,136


162,354

Franchise Taxes and State Assessment Fees

314,443


314,214


316,976


329,056


276,843

Mortgage Fees and Settlements

99,819


87,258


119,037


123,853


83,617

Other Operating Expense

396,213


281,611


417,893


374,273


349,979

Total Non-interest Expenses

6,351,552


6,020,911


6,468,907


6,391,291


6,051,736

Income before Income Taxes

1,147,840


2,392,486


1,210,853


314,256


2,521,526

Income Tax Expense

347,943


373,138


83,793


(30,663)


477,293

Net Income

$                                     799,896


$                       2,019,348


$                       1,127,060


$                          344,919


$                       2,044,233

Earnings per Common Share - Basic

$                                            0.11


$                                 0.28


$                                 0.16


$                                 0.05


$                                 0.28

Earnings per Common Share - Diluted

$                                            0.11


$                                 0.28


$                                 0.16


$                                 0.05


$                                 0.28

Weighted-Average Common Shares










Outstanding - Basic

7,137,779


7,283,696


7,268,087


7,263,880


7,267,044

Weighted-Average Common Shares










Outstanding - 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/
Expense


Yield


Average Balance


Income/
Expense


Yield


Average Balance


Income/
Expense


Yield


Average Balance


Income/
Expense


Yield


Average Balance


Income/
Expense


Yield

Assets






























Cash

$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


204,795



Investments (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


2,765,518



Total 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






$          1,096,367,899



































Liabilities






























Interest 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






$              146,541,629



































Cost 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


Yield

Assets

























Cash


$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


$409,420



Investments (Taxable)


$204,066,557


$2,294,359




$222,105,603


$2,765,518




$208,324,597


$4,750,529




$220,619,839


$5,475,343



Total 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







$1,100,110,176























Liabilities

























Interest 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






$      146,294,904






























Cost 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, 2024

Loans 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 Ratios






Uninsured 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 Data






Tangible Book Value

$12.01

$11.87

$11.39

$11.64

$11.11

Tangible Book Value (ex AOCI)

$14.39

$14.26

$13.94

$13.78

$13.70

Share Price Data






Closing Price

$11.26

$9.90

$10.32

$11.50

$9.75

Book Value Multiple

94 %

83 %

91 %

99 %

88 %

Common Stock Data






Outstanding Shares at End of Period

7,002,103

7,002,103

7,150,055

7,133,105

7,137,030

Weighted Average shares outstanding, basic

7,137,779

7,283,696

7,268,087

7,263,880

7,267,044

Weighted Average shares outstanding, diluted

7,140,491

7,285,900

7,324,559

7,299,553

7,305,392

Capital 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 Quality






Net 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:



























1 Pre-tax, Pre-Provision Income (Non-GAAP)





Quarter Ending










June 30, 2025


March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024








Net  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)


477,293




























Pre-tax,Pre-Provision Income (non-GAAP)

$                1,836,704


$                2,677,169


$                1,225,775


$                   860,696


$         1,353,529




























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





Quarter Ending










June 30, 2025


March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024








Shareholder's Equity

$              84,123,510


$              83,134,747


$              81,439,406


$              83,026,214


$       79,303,635








Outstanding Shares at End of Period

7,002,103


7,002,103


7,150,055


7,133,105


7,137,030








Tangible Book Value (GAAP)

$                        12.01


$                        11.87


$                        11.39


$                        11.64


$                 11.11








Accumulated 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 Ending

Income on Tax Exempt Securities


June 30, 2025


March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024





June 30, 2025


June 30, 2024

Tax Equivalent Adjustment


$                   123,678


$                   124,101


$                   159,233


$                   160,419


$             161,788





$                   255,519


$                   323,442

Income 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


$409,420





















3 Net Interest Margin



















Average 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


$        1,040,441,581

Yield 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 assets






























4 Efficiency 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, 2024

Net Interest Income



$                6,876,162


$                7,719,910


$                6,424,381


$                6,098,606


$         6,187,994





$              14,596,162


$              12,735,154

Non-Interest Income



1,312,094


978,170


1,270,301


1,153,380


1,217,268





2,290,265


2,391,603

Total Revenue



$                8,188,256


$                8,698,079


$                7,694,682


$                7,251,986


$         7,405,262





$              16,886,427


$              15,126,757

Non-Interest Expense



6,351,552


6,020,911


6,468,907


6,391,291


6,051,736





12,372,557


12,278,062

Efficiency Ratio (Non-GAAP)


77.57 %


69.22 %


84.07 %


88.13 %


81.72 %





73.27 %


81.17 %





















5 Liquidity Ratios (Non-GAAP)






Quarter Ending










June 30, 2025


March 31, 2025


December 31, 2024


September 30, 2024


June 30, 2024








Available-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.




























6 Total 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, 2024

Net Interest Income



$                6,876,162


$                7,719,910


$                6,424,381


$                6,098,606


$         6,187,994





$              14,596,162


$              12,735,154

Non-Interest Income



1,312,094


978,170


1,270,301


1,153,380


1,217,268





2,290,265


2,391,603

Total 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 Clark
Executive Vice President & Chief Financial Officer
Phone: 703-667-4119
Email: sclark@freedom.bank

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SOURCE Freedom Financial Holdings