FAIRFAX, Va., Jan. 30, 2026 /PRNewswire/ -- Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced net loss of $3,567,973 or $0.50 per diluted share for the fourth quarter compared to net income of $1,122,930 or $0.16 per diluted share for the three months ended September 30, 2025, and net income of $1,156,906 or $0.16 per diluted share for the three months ended December 31, 2024. Net income for the twelve months ended December 31, 2025, was $374,197 or $0.05 per diluted share, compared to $4,710,286 or $0.64 per diluted share for the twelve months ended December 31, 2024.
Joseph J. Thomas, President, and CEO, commented, "Our core bank experienced strong financial results in the fourth quarter with pre-provision, pre-tax income1 ("PPNR") for the fourth quarter of $2.2 million up 84.4% over fourth quarter of 2025 and 22.6% over third quarter 2025. Pre-provision, pre-tax income for the full year 2025 was $8.62 million and increase of 74.6% over 2024. In addition, the bank demonstrated positive momentum in the year, growing core deposits by $111MM, or 19%, and reducing higher cost, brokered funding by $97 million and borrowings by $25 million, which enabled improvement in our Net Interest margin by 35 bps, from 2.41% to 2.76% for the full year. In the fourth quarter alone, we increased C&I loan balances by 13.6% (now 23% of total loans) and Non-Interest Bearing Deposits by 18.0% (now 16% of total deposits). Through strong expense management, we also improved our efficiency ratio from 83.59% to 73.83%. Unfortunately, at the end of the year, we learned of adverse developments in a large, syndicated loan exposure for one commercial borrower originated in 2022. Based upon recent performance and provided projections, we downgraded the loan to non-accrual and set up a specific reserve of $5.925 million, which is 50% of our total exposure to correspond to and corresponds with the terms of the currently proposed corporate restructuring. We will continue to evaluate the credit to determine if this level of specific reserve remains appropriate as we evaluate workout and litigation strategies. This one particular credit issue does not represent a systemic issue or reflect other correlated risks with ongoing lending operations or local economy. The Bank's Total Risk Based Capital ratio increased to 15.08% at year-end compared to 14.35% at FYE 2024 and we remain well positioned form a liquidity standpoint at loan-to-deposit ratio of 83.4%. Our bank remains safe and sound and open for business to serve customers and communities and the improvement in core results over prior period reflects the outstanding work of employees across the company. Our Board of Directors authorized an additional 250,000 shares to repurchase under the Company's share buyback program and believes this represents a disciplined capital management strategy for our shareholders."
Fourth Quarter and Full Year 2025 Highlights include:
- The Company posted net income of ($3,567,973) or ($0.50) per diluted share in the fourth quarter compared to net income of 1,122,930 or $0.16 per diluted share for the three months ended September 30, 2025, and net income of $1,156,906 or $0.16 per diluted share for the three months ended December 31, 2024.
- Net income for the full year 2025 was $374,197 or $0.05 per diluted share compared to net income of $4,710,286 or $0.64 per diluted share for the full year 2024.
- Return on Average Assets ("ROAA") was (1.37%) for the quarter ended December 31, 2025, compared to 0.41% for the linked quarter and 0.41% for the three months ended December 31, 2024. ROAA for the full year 2025 was 0.04% compared to 0.43% for the full year 2024.
- Return on Average Equity ("ROAE") was (15.96%) for the three months ended December 31, 2025, compared to 5.57% for the linked quarter and 5.58% for the three months ended December 31, 2024. ROAE for the full year 2025 was 0.44% compared to 5.93% for the full year 2024.
- Total Assets were $1.066 billion on December 31, 2025, a decrease of $24.4 million or 2.23% from total assets of 1.09 billion on December 31, 2024.
- Loans held-for-investment increased by $21.2 million or 2.86% during the quarter and decreased by $5.34 million or 0.70% for the full year 2025.
- Total deposits increased by $59.2 million or by 6.93% in the fourth quarter and increased by $4.7 million or 0.52% for the full year 2025. Non-interest-bearing demand deposits increased by $22.8 million from the linked quarter to $149.52 million and increased by $15.9 million for the full year 2025 and represented 16.3% of total deposits on December 31, 2025 as compared to 14.7% of deposits at December 31, 2024.
- Tangible book value per share decreased by 3.0% during the fourth quarter to $12.08 per share from $12.45 per share and increased by 6.06% in 2025 to $12.08 per share from $11.39 per share. The tangible common equity ratio was 7.91% at the end of 2025 and 7.47% at the end of 2024.
- The net interest margin2 increased in the fourth quarter to 2.70%, higher by 4 basis points compared to the linked quarter and higher by 25 basis points compared to the same period in 2024. The increase in the net interest margin was 35 basis points, to 2.76% in 2025 from 2.41% in 2024.
- The cost of funds was 2.99% for the fourth quarter, lower by 20 basis points compared to the linked quarter and lower by 47 basis points compared to the same period in 2024, as deposit costs decreased for interest bearing demand deposits and borrowings, driven by the Federal Reserve's reductions to the Federal Funds rate and the Bank's ability to substitute core deposits for brokered funds and borrowings.
- Non-interest income decreased by 17.1% compared to the linked quarter and decreased by 7.2% compared to the same period in 2024. Non-interest income in the full year 2025 was higher by 1.61% compared to the prior year. The decrease in non-interest income in the fourth quarter of 2025 compared to the linked quarter was primarily due to Service Charges and Other Income that included higher valuation gains related to SBIC investments in the third quarter, while the increase in non-interest income relative to the prior year was due to higher swap fee income and gain on sale of securities that also reside in that category.
- Non-interest expense in the fourth quarter decreased by 11.27% compared to the linked quarter and decreased by 13.2% compared to the same period in 2024. The decrease in non-interest expense for linked and calendar quarters was primarily due to lower expenses related to incentive compensation related to Bank's earnings performance, lower FDIC insurance expense due to the reduction in brokered deposits and lower advertising expense.
- The Efficiency Ratio3 was 71.29% for the quarter ended December 31, 2025, compared to 77.43% for the linked quarter and 84.07% for the same period in 2024. The Efficiency Ratio for the full year 2025 was 73.83% compared to 83.59% for the full year 2024.
- Uninsured deposits increased with the increase in core deposits and were 29.43% of total deposits on December 31, 2025, compared to 21.55% on December 31, 2024.
- Total available secured liquidity4 was 130.31% of uninsured deposits on December 31, 2025, compared to 162.14% on December 31, 2024.
- The Company charged off $197 thousand of loans in the fourth quarter and charge offs to average loans decreased to 0.03% compared to 0.13% in the prior quarter. Total charge offs for the year of 2025 were $1.14 million or 0.15% of average loans.
- The ratio of non-accrual loans to loans held-for-investment was 3.51% on December 31, 2025, compared to 1.78% on December 31, 2024. Eight of the loans that were on non-accrual include guaranteed portions of SBA loans, carrying the full faith and credit of the United States. Non-accrual loans with SBA guarantees totaled $11,474,689, supported by guarantees amounting to $9,128,683, or 80% guaranteed.
- Following an assessment of the collectability of loans held-for-investment and investment securities, the Company had a provision for credit losses of $6,941,897 in the fourth quarter, which roughly doubled the allowance for credit losses from the prior quarter and the prior year, related almost entirely to one large syndicated loan that was placed on non-accrual in the quarter, where negotiations with the lead bank and the borrower are ongoing.
- The ratio of the allowance for credit losses to loans held-for-investment was 1.82% compared to 0.96% in the linked quarter and 0.85% in the prior year.
- The Bank continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 11.05%, Common Equity Tier 1 ratio of 13.82%, Tier 1 Risk Based Capital ratio of 13.82% and a Total Capital ratio of 15.08%.
Net Interest Income
The Company recorded net interest income of $6.70 million for the fourth quarter of 2025, lower by 0.77% compared to the linked quarter, and higher by 4.3% compared to the same period in 2024. The net interest margin in the fourth quarter of 2025 was 2.70%, higher by 4 basis points compared to the linked quarter and higher by 26 basis points compared to the same period in 2024. The net interest margin for the full year 2025 was 2.76%, higher by 35 basis points compared to 2024.
The following factors contributed to the changes in net interest margin during the fourth quarter of 2025 compared to the linked and calendar quarters.
- Yields on average earning assets decreased to 5.55% compared to 5.72% in the linked quarter and 5.76% in the calendar quarter. Lower yields on cash, investment securities and loans, driven by the Federal Reserve's actions in 2025 to reduce the target Federal Funds rate drove the decrease in yields on earning assets as assets repriced. We also had to reverse out interest income related to additional nonaccrual loans that contributed to 12 basis points of yield reduction in the quarter.
- Loan yields decreased by 24 basis points to 5.98% from 6.22% in the linked quarter, while yields on investment securities decreased by 6 basis points to 4.23% from 4.29% in the linked quarter. Loan yields decreased by 17 basis points, while yields on investment securities decreased by 46 basis points compared to the calendar quarter.
- Cost of funds decreased by 20 basis points to 2.99% from 3.19% in the linked quarter and decreased by 47 basis points compared to the calendar quarter, primarily due to lower rates on interest checking and money market accounts and a reduction in borrowings during the current quarter.
The following factors contributed to the changes in net interest margin during the full year 2025 compared to the prior year:
- Yields on average earning assets decreased by 10 basis points to 5.78% compared to 5.88% in the prior year, driven by lower yields on investments and interest earning cash balances.
- Loan yields increased by 1 basis points to 6.28% from 6.27% in the prior year, while yields on investment securities decreased by 39 basis points to 4.37% from 4.76% in the prior year.
- Cost of funds decreased by 46 basis points to 3.15%, from 3.61% in the prior year, on lower deposit and borrowing costs and the addition of core deposit and reduction of brokered funding.
Non-interest Income
Non-interest income was $1.18 million for the fourth quarter, a decrease of 17.13% when compared to the linked quarter and a decrease of 7.15% when compared to the same period in 2024. Non-interest income in 2025 was higher by 1.61% compared to the prior year. The decrease in non-interest income in the fourth quarter of 2025 compared to the linked quarter was primarily due to higher Service Charges and Other Income in the third quarter related to SBIC investments, while the decrease in non-interest income relative to the calendar quarter was due to lower gain-on-sale revenue from mortgage loans in the current quarter. The increase in non-interest income in 2025 was primarily due to higher swap fee income and gain on sale of securities.
Total Revenue3
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 3.65% compared to the linked quarter and higher by 2.35% compared to the calendar quarter in 2024. The decrease in revenue compared to the linked quarter was primarily due to the decrease in interest income stemming from one large loan going into non-accrual in the fourth quarter. The higher revenue compared to the calendar quarter was due to swap fee income and gain on sale of securities sold in the fourth quarter of 2025.
Total revenue for the full year 2025 was higher by 9.51% compared to 2024, primarily due to net interest margin expansion related to lower funding costs in 2025.
Non-interest Expense
Non-interest expense in the fourth quarter decreased by 11.27% compared to the linked quarter and decreased by 13.20% compared to the same period in 2024. The decrease in non-interest expense for linked and calendar quarters was primarily due to a combination of lower expenses related to incentive compensation, advertising, and FDIC insurance. Non-interest expense for the full year 2025 was lower by 3.27% compared to the prior year, primarily due to previously mentioned factors and also lower professional fees.
The Efficiency Ratio was 71.29% for the quarter ended December 31, 2025, compared to 77.43% for the linked quarter and 84.07% for the same period in 2024. The Efficiency Ratio for the full year 2025 was 73.83% compared to 83.59% for the full year 2024.
Asset Quality
Non-accrual loans in the fourth quarter were $26,767,487 or 3.51% of loans held-for-investment compared to $16,400,753 or 2.30% of loans held-for-investment at the end of the linked quarter, primarily attributed to one large syndicated loan. Eight of the loans that were on non-accrual include guaranteed portions of SBA loans, carrying the full faith and credit of the United States. Non-accrual loans with SBA guarantees totaled $11,474,689, supported by guarantees amounting to $9,128,683, or 80% guaranteed. Other Real Estate Owned ("OREO") was $1,302,801 as of December 31, 2025. 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 $28,070,288 or 2.51% of total assets as of December 31, 2025, compared to 1.65% of total assets, at the end of the linked quarter and 1.25% as of December 31, 2024.
The Company charged off $197 thousand of loans in the fourth quarter and charge offs to average loans decreased to 0.03% compared to 0.13% in the prior quarter. Total charge offs for 2025 were $1.14 million, or 0.15% of average loans.
The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 1.82% as of December 31 2025, compared to the ratio of Allowance for Credit Losses to loans held-for-investment of 0.85% as of December 31, 2024.
Total Assets
Total assets as of December 31, 2025, were $1.07 billion compared to $1.03 billion on September 30, 2025, and total assets of $1.09 million on December 31, 2024. Changes in major balance sheet categories since December 31, 2024, were as follows:
- Non-Interest bearing deposits increased by $15.8 million.
- Interest bearing core deposits at banks increased by $86.0 million.
- Interest bearing wholesale deposits decreased by $97.1 million.
- Borrowings decreased by $25.0 million.
- Investment balances decreased by $52.1 million.
- Cash and Due from Banks increased by $45.4 million.
- Other loans held-for investment decreased by $8.16 million
Total Liabilities
Total liabilities as of December 31, 2025, were $981.8 million compared to total liabilities of $944.2 million on September 30, 2025, and $1.01 billion on December 31, 2024. Total deposits were $914.3 million on December 31, 2025, compared to $855.0 million on September 30, 2025, and total deposits of $909.5 as of December 31, 2024. Non-interest-bearing demand deposits increased by $22.8 million during the fourth quarter and comprised 16.3% of total deposits at the end of the fourth quarter. Other interest-bearing deposits increased by $36.4 million in the quarter. Federal Home Loan Bank borrowings decreased by $20 million during the quarter.
Stockholders' Equity and Capital
Stockholders' equity as of December 31, 2025, was $84.34 million compared to $87.19 million on September 30, 2025, and stockholders' equity of $81.44 million on December 31, 2024. AOCI increased during the fourth quarter as there was a decrease in unrealized losses on available-for-sale securities of $893 thousand. The tangible book value of the Company's common stock on December 31, 2025, was $12.08 per share compared to $12.45 on September 30, 2025, and tangible book value per share of $11.39 on December 31, 2024. Excluding AOCI losses/gains5, the tangible book value of the Company's common stock on December 31, 2025 was $14.08 per share compared to $14.58 on September 30, 2025, and $13.94 per share on December 31, 2024.
As of December 31, 2025, the Bank and the Holding Company's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of December 31, 2025 and December 31, 2024, were as follows:
December 31,
2025 December 31, 2024
Total Capital Ratio 15.08 % 14.35 %
Tier 1 Capital Ratio 13.82 % 13.57 %
Common Equity Tier 1 Capital Ratio 13.82 % 13.57 %
Leverage Ratio 11.05 % 10.39 %
Stock Buyback Program
In the fourth quarter, the Company purchased 29,400 shares pursuant to its previously announced share repurchase program, and 207,092 over the full year 2025 at a weighted average price of $10.51 per share. Between 2024 and 2025, the firm had repurchased 243,800 of the 250,000 shares authorized for repurchase under the program, and our Board of Directors reauthorized the Company to repurchase another 250,000 in 2026. Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.
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; the impact of any U.S. federal government shutdown; 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; 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)
December 31, September 30, December 31,
2025 2025 2024
ASSETS
Cash and Due from Banks $
4,015,453 $
4,818,837 $
5,685,008
Interest Bearing Deposits with Banks 70,078,398 18,496,712 23,004,874
Securities Available-for-Sale 158,446,651 187,268,762 209,687,859
Securities Held-to-Maturity 19,242,952 19,343,569 20,315,651
Restricted Stock Investments 5,435,300 6,385,300 6,249,000
Loans Held for Sale 4,283,305 7,183,273 5,963,969
PPP Loans Held for Investment 117,737 125,403 159,825
Other Loans Held for Investment 762,435,469 741,335,198 767,737,719
Allowance for Loan Losses (13,897,689) (7,137,980) (6,534,757)
Net Loans 752,938,822 741,505,894 767,326,756
Bank Premises and Equipment, net 728,030 692,681 767,773
Accrued Interest Receivable 4,059,501 4,264,875 4,155,077
Deferred Tax Asset 5,850,932 6,063,117 7,560,441
Bank-Owned Life Insurance 28,469,911 28,236,091 27,560,616
Right of Use Asset, net 1,582,514 1,419,569 1,874,403
Other Assets 15,278,531 12,867,243 16,299,753
Total Assets $
1,066,126,995 $
1,031,362,649 $
1,090,487,211
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand Deposits
Non-interest Bearing $
149,516,366 $
126,711,971 133,665,194
Interest Bearing $
555,799,698 $
549,852,965 $
475,397,117
Savings Deposits $
1,989,696 $
1,988,586 3,866,241
Time Deposits $
206,958,024 $
176,467,460 296,603,142
Total Deposits 914,263,784 855,020,982 909,531,694
Federal Home Loan Bank Advances 40,000,000 60,000,000 65,000,000
Other Borrowings 117,737 125,403 159,825
Subordinated Debt (Net of Issuance Costs) 19,928,568 19,909,087 19,850,643
Accrued Interest Payable 913,813 1,098,199 2,445,741
Lease Liability 1,666,836 1,520,701 2,013,912
Other Liabilities 4,894,394 6,495,085 10,045,990
Total Liabilities $
981,785,132 $
944,169,457 1,009,047,805
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized
0 Shares Issued and Outstanding, December 31, 2025, September 30, 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:
6,941,897, 7,002,103 and 7,150,055 Shares Issued and Outstanding
at December 31, 2025, September 30, 2025, and December 31, 2024 respectively 69,840 70,021 71,501
Non-Voting Common Stock:
0 Shares Issued and Outstanding at December 31, 2025, September 30, 2025,
and December 31, 2024 respectively)
Additional Paid-in Capital 56,624,236 56,800,773 58,347,356
Accumulated Other Comprehensive Income, Net (13,987,641) (14,881,004) (18,240,683)
Retained Earnings 41,635,428 45,203,402 41,261,232
Total Stockholders' Equity $
84,341,863 $
87,193,193 81,439,406
Total Liabilities and Stockholders' Equity $
1,066,126,995 $
1,031,362,649 $
1,090,487,211
FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
For the three For the three For the twelve For the twelve
months ended months ended months ended months ended
December 31, December 31, December 31, December 31,
2025 2024 2025 2024
Interest Income
Interest and Fees on Loans $
11,337,250 $
11,991,578 $
47,386,069 $
48,526,496
Interest on Investment Securities $
2,224,322 2,798,420 $
9,596,227 11,529,424
Interest on Deposits with Other Banks $
214,395 446,184 $
1,735,135 1,540,629
Total Interest Income 13,775,967 15,236,182 58,717,431 61,596,549
Interest Expense
Interest on Deposits $
6,260,656 7,628,382 $
27,518,474 31,487,131
Interest on Borrowings $
818,943 1,183,419 $
3,157,787 4,851,277
Total Interest Expense 7,079,599 8,811,801 30,676,261 36,338,408
Net Interest Income 6,696,368 6,424,381 28,041,170 25,258,141
Provision/(Recovery) for Loan Losses $
6,941,897 (14,922) $
8,412,269 (663,966)
Net Interest Income After (245,529) 6,439,303 19,628,901 25,922,107
Provision for Loan Losses
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue 680,766 769,060 2,854,521 2,700,247
SBA Gain-on-Sale Revenue 287,032
Service Charges and Other Income $
246,568 252,275 $
1,044,671 846,548
Servicing Income 18,303 36,090 84,510 150,363
Increase in Cash Surrender Value of Bank-
owned Life Insurance 233,820 212,876 909,294 829,278
Total Non-interest Income 1,179,457 1,270,301 4,892,996 4,815,284
Total Revenue 7,875,825 7,694,682 32,934,165 30,073,425
Non-Interest Expenses
Officer and Employee Compensation
and Benefits $
3,562,780 3,905,728 $
15,152,113 14,859,514
Occupancy Expense $
239,846 233,967 $
972,666 1,114,883
Equipment and Depreciation Expense $
12,898 20,951 $
54,282 90,680
Insurance Expense $
126,852 228,224 $
817,134 914,264
Professional Fees $
375,040 451,065 $
1,697,228 2,078,782
Data and Item Processing $
523,717 684,698 $
2,197,929 2,371,647
Advertising $
63,476 90,368 $
410,834 539,856
Franchise Taxes and State Assessment Fees $
324,569 316,976 $
1,287,649 1,232,744
Mortgage Fees and Settlements 70,037 119,037 350,851 421,507
Other Operating Expense $
315,610 417,893 $
1,374,400 1,514,380
Total Non-interest Expenses 5,614,825 6,468,907 24,315,086 25,138,257
Income Before Income Taxes (4,680,897) 1,240,697 206,811 5,599,134
Income Tax Expense/(Benefit) (1,112,923) 83,793 (167,386) 888,848
Net Income (Loss) $
(3,567,974) $
1,156,906 $
374,197 $
4,710,286
Earnings (Loss) per Common Share - Basic $
(0.50) $
0.16 $
0.05 $
0.65
Earnings (Loss) per Common Share - Diluted $
(0.50) $
0.16 $
0.05 $
0.64
Weighted-Average Common Shares
Outstanding - Basic 7,121,482 7,268,087 7,136,456 7,270,960
Weighted-Average Common Shares
Outstanding - Diluted 7,183,791 7,324,559 7,193,284 7,327,432
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
December 31, September 30, June 30, 2025 March 31, December 31,
2025 2025 2025 2024
Interest Income
Interest and Fees on Loans $
11,337,250 $
11,671,310 $
11,673,927 $
12,703,493 $
11,991,578
Interest on Investment Securities $
2,224,322 $
2,307,732 2,450,914 2,613,258 2,798,420
Interest on Deposits with Other Banks $
214,395 $
507,622 750,610 262,507 446,184
Total Interest Income 13,775,967 14,486,664 14,875,451 15,579,258 15,236,182
Interest Expense
Interest on Deposits $
6,260,656 7,036,552 7,275,073 6,946,194 7,628,382
Interest on Borrowings $
818,943 701,474 724,216 913,154 1,183,419
Total Interest Expense 7,079,599 7,738,026 7,999,289 7,859,348 8,811,801
Net Interest Income 6,696,368 6,748,638 6,876,162 7,719,910 6,424,381
Provision/(Recovery) for Loan Losses $
6,941,897 496,824 688,865 284,683 (14,922)
Net Interest Income After 7,435,227 6,439,303
Provision for Loan Losses (245,529) 6,251,814 6,187,297
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue 680,766 718,684 797,759 654,530 769,060
SBA Gain-on-Sale Revenue
Service Charges and Other Income $
246,568 453,981 270,230 70,334 252,275
Servicing Income 18,303 19,060 21,045 32,442 36,090
Increase in Cash Surrender Value of Bank-
owned Life Insurance 233,820 231,549 223,061 220,864 212,876
Total Non-interest Income 1,179,457 1,423,274 1,312,095 978,170 1,270,301
8,698,080 7,694,682
Total Revenue 7,875,825 8,171,912 8,188,257
$
$
Non-Interest Expenses
Officer and Employee Compensation
and Benefits $
3,562,780 4,067,037 3,752,761 3,769,535 3,905,728
Occupancy Expense $
239,846 246,378 244,279 242,163 233,967
Equipment and Depreciation Expense $
12,898 16,039 16,619 8,726 20,951
Insurance Expense $
126,852 244,170 220,346 225,766 228,224
Professional Fees $
375,040 291,975 559,904 470,310 451,065
Data and Item Processing $
523,717 540,506 595,492 538,213 684,698
Advertising $
63,476 112,566 151,676 83,115 90,368
Franchise Taxes and State Assessment Fees $
324,569 334,422 314,444 314,214 316,976
Mortgage Fees and Settlements 70,037 106,266 99,819 87,258 119,037
Other Operating Expense $
315,610 368,343 396,213 281,611 417,893
Total Non-interest Expenses 5,614,825 6,327,702 6,351,552 6,020,911 6,468,907
Income Before Income Taxes (4,680,897) 1,347,386 1,147,840 2,392,486 1,240,697
Income Tax Expense/(Benefit) (1,112,923) 224,456 347,943 373,138 83,793
Net Income (Loss) $
(3,567,974) $
1,122,930 $
799,897 $
2,019,348 $
1,156,906
Earnings (Loss) per Common Share - Basic $
(0.50) $
0.16 $
0.11 $
0.28 $
0.16
Earnings (Loss) per Common Share - Diluted $
(0.50) $
0.16 $
0.11 $
0.28 $
0.16
Weighted-Average Common Shares
Outstanding - Basic 7,121,482 7,134,446 7,137,779 7,283,696 7,268,087
Weighted-Average Common Shares
Outstanding - Diluted 7,183,791 7,184,688 7,140,491 7,285,900 7,324,559
Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
December September 30, 2025 June 30, 2025 March 31, 2025 December
31, 2025 31, 2024
Income/ Income/ Income/ Income/ Income/
Average Balance Expense Yield Average Balance Expense Yield Average Balance Expense Yield Average Balance Expense Yield Average Balance Expense Yield
Assets
Cash $23,427,239 $214,395 3.63 % $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 %
Investments (Tax Exempt) $20,215,951 $154,645 3.03 % $19,928,687 $155,780 3.10 % $19,843,159 $156,555 3.18 % $20,214,201 157,089 3.07 % 20,664,409 201,561 3.00 %
Investments (Taxable) $188,641,324 $2,069,677 4.35 % $193,341,006 $2,151,952 4.42 % $204,066,557 $2,294,359 4.52 % $212,629,949 2,456,170 4.47 % 220,415,008 2,639,187 4.25 %
Total Investments $208,857,275 $2,224,322 4.23 % 213,269,693 2,307,732 4.29 % 223,909,716 2,450,914 4.39 % $232,844,150 2,613,258 4.55 % 241,079,417 2,840,748 4.69 %
Total Loans $752,172,975 $11,337,250 5.98 % $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 %
Earning Assets $984,457,489 $13,775,967 5.55 % 1,005,029,091 $14,486,664 5.72 % 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 %
Assets $1,036,072,664 $1,058,353,304 $1,100,110,176 $1,083,851,440 $1,110,466,582
Liabilities
Interest Checking $151,579,307 $934,090 2.44 % $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 %
Money Market $297,707,680 $2,468,165 3.29 % $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 %
Savings $1,973,024 $1,045 0.21 % $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 %
Time Deposits $285,497,039 $2,857,356 3.97 % $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 %
Interest Bearing Deposits $736,757,050 $6,260,656 3.37 % 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 %
Borrowings $76,844,331 $818,943 4.23 % $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 %
Interest Bearing Liabilities 813,601,381 $7,079,599 3.45 % 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 %
Non Interest Bearing Deposits $125,385,868 $133,933,651 $140,837,354 $139,885,803 $153,895,858
Cost of Funds 2.99 % 3.19 % 3.19 % 3.23 % 3.46 %
Net Interest Margin $6,696,368 2.70 % $6,748,638 2.66 % $6,876,162 2.66 % $7,719,911 3.03 % $6,466,709 2.44 %
Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Average Balance Income/ Expense Yield Average Balance Income/ Yield Average Balance Income/
Expense Expense Yield Average Balance Income /Expense Yield
Assets
Cash $23,427,239 $214,395 3.63 % $39,134,308 $446,184 4.54 % $41,407,184 $1,735,135 4.19 % $31,113,400 $1,540,629 4.95 %
Investments (Tax Exempt) $20,215,951 $154,645 3.03 % $20,664,409 $201,561 $20,050,171 $624,068 3.11 % 20,891,060 814,043
Investments (Taxable) $188,641,324 $2,069,677 4.35 % $220,415,008 $2,639,187 $199,586,648 $8,972,159 4.50 % 221,298,993 10,886,330
Total Investments $208,857,275 $2,224,322 4.23 % 241,079,417 2,840,748 4.69 % $219,636,819 9,596,227 4.37 % 242,190,053 11,700,373 4.83 %
Total Loans $752,172,975 $11,337,250 5.98 % $775,756,877 $11,991,578 6.15 % $754,056,464 $47,386,069 6.28 % 774,465,296 48,526,496 6.27 %
Earning Assets $984,457,489 $13,775,967 5.55 % 1,055,970,602 15,278,510 5.76 % 1,015,100,467 58,717,431 5.78 % 1,047,768,749 61,767,498 5.90 %
Assets 1036072664 1,110,466,582 $1,069,435,191 $1,102,980,245
Liabilities
Interest Checking $151,579,307 $934,090 2.44 % $209,540,976 $2,092,017 3.97 % $131,735,596 $3,841,400 2.92 % $217,514,835 $9,351,636 4.30 %
Money Market $297,707,680 $2,468,165 3.29 % $257,016,702 $2,412,389 3.73 % $285,401,918 $9,505,570 3.33 % 255,225,159 10,509,670 4.12 %
Savings $1,973,024 $1,045 0.21 % $3,151,116 $1,185 0.15 % $3,868,042 $4,802 0.12 % 3,053,030 4,496 0.15 %
Time Deposits $285,497,039 $2,857,356 3.97 % $291,606,111 $3,122,791 4.26 % $347,757,966 $14,166,703 4.07 % 281,884,854 11,621,330 4.12 %
Interest Bearing Deposits $736,757,050 $6,260,656 3.37 % 761,314,905 7,628,382 3.99 % 768,763,522 27,518,474 3.58 % 757,677,877 31,487,131 4.16 %
Borrowings 76,844,331 818,943 4.23 % $98,205,747 $1,183,419 4.79 % $69,915,077 $3,157,787 4.52 % 102,414,440 $4,851,277 4.74 %
Interest Bearing Liabilities 813,601,381 7,079,599 3.45 % 859,520,652 8,811,801 4.08 % 838,678,599 30,676,262 3.66 % 860,092,317 36,338,407 4.22 %
Non Interest Bearing Deposits 125,385,868 $153,895,858 $134,967,992 $147,420,361
Cost of Funds 2.99 % 3.46 % 3.15 % 3.61 %
Net Interest Margin 6,696,368 2.70 % $6,466,709 2.44 % $28,041,170 2.76 % $25,429,091 2.43 %
Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios December 31, 2025 September 30, June 30,
2025 2025 March 31, 2025 December 31, 2024
Loans held-for-investment to Deposits 83.41 % 86.72 % 80.83 % 82.65 % 84.43 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA) -1.37 % 0.41 % 0.29 % 0.76 % 0.41 %
Return on Average Equity (ROAE) -15.96 % 5.57 % 3.97 % 9.95 % 5.58 %
Efficiency Ratio 71.29 % 77.43 % 77.57 % 69.22 % 84.07 %
Net Interest Margin 2.70 % 2.66 % 2.66 % 3.03 % 2.44 %
Yield on Average Earning Assets 5.55 % 5.72 % 5.73 % 6.11 % 5.76 %
Yield on Securities 4.23 % 4.29 % 4.39 % 4.55 % 4.69 %
Yield on Loans 5.98 % 6.22 % 6.20 % 6.74 % 6.15 %
Cost of Funds 2.99 % 3.19 % 3.19 % 3.23 % 3.46 %
Noninterest income to Total Revenue 14.98 % 17.42 % 16.02 % 11.25 % 16.51 %
Liquidity Ratios
Uninsured Deposits to Total Deposits 29.43 % 24.51 % 22.51 % 22.50 % 21.55 %
Total Liquidity to Uninsured Deposits 130.31 % 136.91 % 167.83 % 122.33 % 162.14 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 251.78 % 209.14 % 252.65 % 292.23 % 264.35 %
Tangible Common Equity Ratio 7.91 % 8.45 % 7.85 % 7.68 % 7.47 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities) 7.76 % 8.27 % 7.64 % 7.50 % 7.27 %
Available -for-Sale securities (as % of total securities) 89.17 % 90.64 % 90.87 % 91.12 % 91.16 %
Per Share Data
Tangible Book Value $12.08 $12.45 $12.01 $11.87 $11.39
Tangible Book Value (ex AOCI) $14.08 $14.58 $14.39 $0.00 $13.94
Share Price Data
Closing Price $11.83 $11.52 $11.26 $9.90 $10.32
Book Value Multiple 98 % 93 % 94 % 83 % 91 %
Common Stock Data
Outstanding Shares at End of Period 6,984,013 7,002,103 7,002,103 7,002,103 7,150,055
Weighted Average shares outstanding, basic 7,121,482 7,134,446 7,137,779 7,283,696 7,268,087
Weighted Average shares outstanding, diluted 7,183,791 7,184,688 7,140,491 7,285,900 7,324,559
Capital Ratios (Bank Only)
Tier 1 Leverage ratio 11.05 % 11.23 % 10.66 % 10.76 % 10.39 %
Common Equity Tier 1 ratio 13.82 % 14.64 % 14.30 % 14.14 % 13.57 %
Tier 1 Risk Based Capital ratio 13.82 % 14.64 % 14.30 % 14.14 % 13.57 %
Total Risk Based Capital ratio 15.08 % 15.53 % 15.20 % 14.95 % 14.35 %
Credit Quality
Net Charge-offs to Average Loans 0.03 % 0.13 % 0.01 % 0.03 % 0.26 %
Total Non-performing Loans to loans held-for-investment 3.51 % 2.30 % 1.45 % 1.45 % 1.78 %
Total Non-performing Assets to Total Assets 2.51 % 1.65 % 0.98 % 1.01 % 1.25 %
Nonaccrual Loans to loans held-for-investment 3.51 % 2.30 % 1.45 % 1.45 % 1.78 %
Provision for Loan Losses $6,941,897 $496,824 $688,865 $284,683 $14,922
Allowance for Loan Losses to Loan held-for-investment 1.82 % 0.96 % 0.96 % 0.88 % 0.85 %
Allowance for Loan Losses to Loans held-for-investment (ex PPP loans) 1.82 % 0.96 % 0.96 % 0.88 % 0.85 %
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 Quarter Ending
Year Ending
December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Net Income $(3,567,974) $1,122,930 $799,896 $2,019,348 $1,127,060 $374,197 $4,710,286
+ Provision Expense 6,941,897 496,824 688,865 284,683 14,922 8,412,269 (663,966)
+ Income Tax Expense (1,112,923) 224,456 347,943 373,138 83,793 (167,386) 888,848
Pre-tax,Pre-Provision Income (non-GAAP) $2,261,000 $1,844,211 $1,836,704 $2,677,169 $1,225,775 $8,619,080 $4,935,168
(2)
Net Interest Margin
Average Earning Assets $984,457,489 $1,005,029,091 $1,044,711,785 $1,033,892,935 $1,055,970,602 $1,015,100,467 $1,047,768,749
Yield on Interest-Earning Assets (FTE) (Non-GAAP) 5.55 % 5.72 % 5.73 % 6.11 % 5.76 % 5.78 % 5.90 %
Net Interest Margin (NIM) (FTE) (Non-GAAP) 2.70 % 2.66 % 2.66 % 3.03 % 2.44 % 2.76 % 2.43 %
(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 assets
(3)
Efficiency Ratio (Non-GAAP) Quarter Ending Year Ending
December 31, 2025 September 30,
2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Net Interest Income $6,696,368 $6,748,638 $6,876,162 $7,719,910 $6,424,381 $28,041,170 $25,258,141
Non-Interest Income 1,179,457 1,423,274 1,312,094 978,170 1,270,301 4,892,996 4,815,284
Total Revenue $7,875,825 $8,171,912 $8,188,256 $8,698,079 $7,694,682 $32,934,165 $30,073,426
Non-Interest Expense 5,614,825 6,327,702 6,351,552 6,020,911 6,468,907 24,315,086 25,138,257
Efficiency Ratio (Non-GAAP) 71.29 % 77.43 % 77.57 % 69.22 % 84.07 % 73.83 % 83.59 %
4
Liquidity Ratios (Non-GAAP) Quarter Ending
December 31, 2025 September 30,
2025 June 30, 2025 March 31, 2025 December 31, 2024
Available-for-Sale Securities (as % of total securities) 89.17 % 90.64 % 90.87 % 91.12 % 91.16 %
Uninsured Deposits to Total Deposits 29.43 % 24.51 % 22.51 % 22.50 % 21.55 %
Total Liquidity to Uninsured Deposits (Non-GAAP) 130.31 % 136.91 % 167.83 % 122.33 % 162.14 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 251.78 % 209.14 % 252.65 % 292.23 % 264.35 %
Tangible Common Equity Ratio (Non-GAAP) 7.91 % 8.45 % 7.85 % 7.68 % 7.47 %
Tangible Common Equity Ratio(adjusted for unrealized losses 7.76 % 8.27 % 7.64 % 7.50 % 7.27 %
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.
5
Tangible Book Value (ex-AOCI) (non-GAAP)
Quarter Ending
December 31, 2025 September 30,
2025 June 30, 2025 March 31, 2025 December 31, 2024
Shareholder's Equity $84,341,863 $87,193,193 $84,123,510 $83,134,747 $81,439,406
Outstanding Shares at End of Period 6,984,013 7,002,103 7,002,103 7,002,103 7,150,055
Tangible Book Value (GAAP) $12.08 $12.45 $12.01 $11.87 $11.39
Accumulated Other Comprehensive Income (Net) (AOCI) $(13,987,641) $(14,881,004) $(16,657,368) $(16,748,443) $(18,240,683)
AOCI per share equivalent (2.00) (2.13) (2.38) (2.39) (2.55)
Tangible Book Value (ex-AOCI) (non-GAAP) $14.08 $14.58 $14.39 $14.26 $13.94
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
