Freedom Financial Holdings Announces Earnings for First Quarter of 2025

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Apr 29, 2025, 08:30 ET

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 Ratio²was 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 Revenue⁴Total 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
[email protected]: 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
¹Net 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

²Efficiency 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 %

³Liquidity 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

⁴Total 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

⁵Tangible 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