Freedom Financial Holdings Announces Earnings for First Quarter of 2026
MCLEAN, Va., April 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 income of $1,160,338 or $0.16 per diluted share for the first quarter compared to a net loss of $3,567,973, or $0.50 per diluted share for the three months ended December 31, 2025, and net income of $2,019,348 or $0.28 per diluted share for the three months ended March 31, 2025. Comparisons to prior quarters are challenging since the fourth quarter of 2025 included an unexpected $6.9 million credit provision and the first quarter of 2025 included the non-recurring recovery and recognition of almost $1.04 million of interest income from previously charged off loans and recovery of legal expenses, which contributed almost $0.12 per diluted share that quarter.
Joseph J. Thomas, President, and CEO, commented, "We are pleased to start off 2026, our 25th anniversary year, with favorable net income trends, improving net interest margin, and stabilizing credit quality. Net income increased $4.728 million after last quarter's loss on the recognition of a $6.9 million credit provision. We continue to see improvement in our cost of funds dropping 15 basis points in the first quarter, enabling net interest margin expansion of 3 basis points to 2.73%. Despite the changing and uncertain economic environment, we continue to see improvement in the credit quality of our loan portfolio with non-accrual loans down 28% to $19.2 million. Our entire team is working hard to grow loans and we experienced a 2.97% increase in net loans in the quarter including growth in the Held for Sale mortgage portfolio. We were pleased with the increase in mortgage activity with gain on sale and fee revenue that increased by 30% to $942,257 in the first quarter of 2026 from $680,766 in the fourth quarter of 2025 as mortgage rates decreased. Our team is taking the steps necessary to help clients manage through higher rates and inflation, changes in credit markets, and increasing technology risks and opportunities.
First Quarter 2026 Highlights include:
- The Company posted net income of $1,160,338 or $0.16 per diluted share for the first quarter compared to a net loss of $3,567,973, or $0.50 per diluted share for the three months ended December 31, 2025, and net income of $2,019,348 or $0.28 per diluted share for the three months ended March 31, 2025
- Tangible Book Value per share remained relatively flat during the quarter at $12.08 on March 31, 2026, compared to $12.05 on December 31, 2025, as quarter to date earnings were largely offset by changes in valuation on the available for sale portfolio and share buybacks were offset by shares vested in the quarter.
- Return on Average Assets ("ROAA") was 0.44% for the quarter ended March 31, 2026, compared to ROAA of (1.37%) for the quarter ended December 31, 2025, and 0.76% for the three months ended March 31, 2025.
- Return on Average Equity ("ROAE") was 5.57% for the quarter ended March 31, 2026, compared to ROAE of (15.96%) for the three months ended December 31, 2025, and 9.95% for the three months ended March 31, 2025.
- Total Assets were $1.053 billion on March 31, 2026, a decrease of $13 million or 1.2% from total assets on December 31, 2025, mostly due to using excess cash assets to repay FHLB advances.
- Gross Loans held-for-investment increased by $8.4 million or 1.1% during the quarter.
- Total deposits increased by $3.1 million or by 0.34% during the quarter. Non-interest-bearing demand deposits decreased by $178 thousand during the quarter to $149.3 million and represented 16.28% of total deposits on March 31, 2026.
- The net interest margin1 increased in the first quarter to 2.73%, higher by 3 basis points compared to the linked quarter and lower by 30 basis points compared to the same period in 2025. The increase in the net interest margin across linked quarters was a result of lower funding costs, while the decrease for the same period a year ago is related to the recognition of previously uncollected interest from problem loan resolutions, with such interest contributing 41 basis points to the net interest margin at that time.
- The cost of funds was 2.84% for the first quarter, lower by 15 basis points compared to the linked quarter and lower by 39 basis points compared to the same period in 2025, as a result of a decline in deposit costs and borrowing costs.
- Non-interest income increased by 20% compared to the linked quarter and decreased by 44% compared to the same period in 2025. The increase in non-interest income in the first quarter of 2026 was primarily due to higher net revenue from the mortgage unit.
- Non-interest expense increased by $1.19 million in the first quarter or by 21% compared to the linked quarter and increased by 13% compared to the same period in 2025. The increase in expenses compared to the linked quarter was largely due to increased accruals for annual bonuses over the prior quarter where there was only minimal bonus expense due to the net loss in the quarter, increased commission expense and lender credits resulting from increased mortgage activity, increased health insurance premiums, and increased FDIC insurance expense due to the deterioration in credit quality in Q4.
- The Efficiency Ratio2 was 81.88% for the quarter ended March 31, 2026, compared to 71.29% for the linked quarter and 69.22% for the same period in 2025, which included the aforementioned interest income and legal expense recoveries.
- Uninsured deposits were 27.11% of total deposits and total liquidity to uninsured deposits3 was 117.18% of uninsured deposits on March 31, 2026.
- Net charge offs were 0.81% of average loans compared to 0.03% in the prior quarter as the Company recognized the $6.2 million in charge-offs mostly related to the large loan that had been provisioned for in the prior quarter. No additional expense was recognized in relation to this credit in Q1 and this charge-off was met with the commensurate amelioration in our allowance for credit losses. The ratio of non-accrual loans to loans held-for-investment was 2.50% on March 31, 2026, compared to 3.51% on December 31, 2025, and 1.45% on March 31, 2025. The ratio of non-performing assets to total assets was 1.95% on March 31, 2026, compared to 2.51% on December 31, 2025, and 1.01% on March 31, 2025.
- The Company recognized a provision for loan losses of $59,336, related to changes in the overall portfolio including loan growth.
- The ratio of the allowance for loan losses to loans held-for-investment was 1.00% at March 31, 2026 compared to 1.82% at the end of the linked quarter.
- The Bank continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.70%, Common Equity Tier 1 ratio of 13.50%, Tier 1 Risk Based Capital ratio of 13.50% and a Total Capital ratio of 14.42% as of March 31, 2026. Common Equity Tier 1, Tier 1 Risk Based Capital, and Total Capital ratios are down by 32 basis points, 32 basis points, and 66 basis points, respectively, due to the Bank holding higher average assets in the quarter, higher risk weighted assets at quarter end due to loan growth, lower Tier 2 capital as the allowance for credit losses that was included in capital at 2025 year end was abated due to the charge-off, and the charge-off causing a portion of our deferred tax asset to be disallowed for capital purposes.
Net Interest Income
The Company recorded net interest income of $6.895 million for the first quarter of 2026, higher by 2.97% compared to the linked quarter, and lower by 10.68% compared to the same period in 2025. The net interest margin in the first quarter of 2026 was 2.73%, higher by 3 basis points compared to the linked quarter and lower by 30 basis points compared to the same period in 2025.
The following factors contributed to the changes in net interest margin during the first quarter of 2026 compared to the linked and calendar quarters.
- Yields on average earning assets were 5.44% in the first quarter of 2026, lower by 11 basis points compared to the linked quarter, and lower by 67 basis points compared to the prior year calendar quarter. The decrease in yields on average earning assets in the first quarter compared to the linked quarter was primarily due to increased cash and decreased securities held on the balance sheet in the first quarter. The decrease over the calendar quarter is largely due to the recognition of uncollected interest from problem loan resolutions in the prior year calendar quarter which added 41 basis points to the earning asset yield in that quarter. The remaining difference stems from interest rate decreases on cash and floating rate securities and loans that took place over the course of the year.
- Loan yields decreased by 1 basis point to 5.97% from 5.98% in the linked quarter, while yields on investment securities decreased by 26 basis points to 3.97% from 4.23% in the linked quarter. Loan yields decreased by 77 basis points, while yields on investment securities decreased by 58 basis points compared to the calendar quarter.
- Cost of funds decreased by 15 basis points to 2.84% from 2.99% in the linked quarter, and by 39 basis points compared to the prior year quarter, due to lower deposit and borrowing costs.
Non-interest Income
Non-interest income was $1.4 million for the first quarter, an increase of 20% when compared to the linked quarter and an increase of 44% when compared to the same period in 2025. The increase in non-interest income in the first quarter of 2026 compared to the linked quarter and the prior calendar quarter was due to higher revenue from the gain on sale of mortgage loans.
Total Revenue4
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 5.47% compared to the linked quarter and lower by 4.5% compared to the calendar quarter in 2025. The increase in total revenue compared to the linked quarter was due to an increase in the net interest margin, contributing to the increase of $199 thousand in net interest income over the linked quarter and $232 thousand in increased non-interest income largely from the gain on sale of residential mortgages. The decrease compared to the prior calendar quarter is due to the extraordinary recovery of $1.04 million of previously uncollected interest from problem loan resolutions.
Non-interest Expense
Non-interest expense in the first quarter increased by $1.19 million or by 21.14% compared to the linked quarter and increased by 12.96% compared to the same period in 2025. The increase in expenses compared to the linked quarter was largely related to accrual expenses for annual bonuses that were curtailed in the prior quarter given the net loss experienced, and increased expenses related to increased mortgage activity, including commission expense, appraisal fees, and lender credits. Salary expenses are up due to annual raises taking effect and increased hiring related to the opening of the new location in Tysons Corner, VA. The new location resulted in additional occupancy expenses related to pre-opening, and the Bank also experienced annual escalations in our other leased locations and from lease renewals. Health insurance premiums have risen over the rates paid in 2025. We also increased our marketing expenses related to promoting the new location and planning for our 25th anniversary year.
The Efficiency Ratio2 was 81.88% for the quarter ended March 31, 2026, compared to 71.29% for the linked quarter and 69.22% for the same period in 2025.
Asset Quality
Non-accrual loans decreased in the first quarter and were 2.46% of loans held-for-investment compared to 3.51% of loans held-for-investment at the end of the linked quarter as we recognized charge-offs. 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 1.95% of total assets as of March 31, 2026, compared to 2.51% of total assets, at the end of the linked quarter.
The Company recognized a provision for loan losses of $59,336, primarily related to changes in the overall portfolio, including loan growth.
The Company's ratio of Allowance for Loan Losses to loans held-for-investment was 1.00% as of March 31, 2026, compared to the ratio of Allowance for Loan Losses to loans held-for-investment of 1.82% as of December 31, 2025.
Total Assets
Total assets on March 31, 2026, were $1.053 billion compared to total assets of $1.065 billion on December 31, 2025. Changes in major asset categories since December 31, 2025, were as follows:
- Interest bearing deposits at banks decreased by $36.4 million.
- Investment balances decreased by $3.56 million.
- Gross loans held-for investment increased by $8.39 million
- Residential mortgage loans held for sale increased by $7.794 million
Total Liabilities
Total liabilities on March 31, 2026, were $968.58 million compared to total liabilities of $981.79 million on December 31, 2025. Total deposits were $917.36 million on March 31, 2026, compared to total deposits of $914.26 million on December 31, 2025. Non-interest-bearing demand deposits decreased by $178 thousand during the first quarter and comprised 16.28% of total deposits at the end of the first quarter. Other core interest-bearing demand deposits decreased by $31.8 million and core time deposits decreased by $2.3 million during the quarter. Brokered Deposits increased by $37.4 million while Federal Home Loan Bank borrowings decreased by $20.0 million.
Stockholders' Equity and Capital
Stockholders' equity as of March 31, 2026, was $84.25 million compared to $84.14 million on December 31, 2025. AOCI decreased during the first quarter as there was an increase in unrealized losses on available-for-sale securities due to rising interest rates in the quarter. The tangible book value of the Company's common stock on March 31, 2026, was $12.08 per share compared to $12.05 on December 31, 2025. Excluding AOCI losses/gains5, the tangible book value of the Company's common stock on March 31, 2026, was $14.18 per share compared to $14.08 on December 31, 2025.
Stock Buyback Program
In the first quarter, the Company purchased 43,800 shares pursuant to its previously announced share repurchase program. As of March 31, 2026, the Company had repurchased 43,800 of the 250,000 shares currently authorized for repurchase under the program that was approved at the end of 2025. The Company purchased 29,400 shares in the fourth quarter of 2025 under its previous authorized 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, 2026, 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, 2026, and December 31, 2025, were as follows:
March 31, 2026 | December 31, 2025 | ||
Total Capital Ratio | 14.42 % | 15.08 % | |
Tier 1 Capital Ratio | 13.50 % | 13.82 % | |
Common Equity Tier 1 Capital Ratio | 13.50 % | 13.82 % | |
Leverage Ratio | 10.70 % | 11.05 % |
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, Tysons Corner, 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) | (Audited) | ||
March 31, | December 31, | ||
2026 | 2025 | ||
ASSETS | |||
Cash and Due from Banks | $ 4,527,248 | $ 4,540,452 | |
Interest Bearing Deposits with Banks | 33,646,083 | 70,078,398 | |
Securities Available-for-Sale | 156,852,319 | 158,446,651 | |
Securities Held-to-Maturity | 18,242,410 | 19,242,952 | |
Restricted Stock Investments | 4,468,100 | 5,435,300 | |
Loans Held for Sale | 12,077,102 | 4,283,305 | |
PPP Loans Held for Investment | 112,661 | 117,738 | |
Other Loans Held for Investment | 770,827,073 | 762,435,469 | |
Allowance for Credit Losses | (7,696,395) | (13,897,689) | |
Net Loans | 775,320,441 | 752,938,823 | |
Bank Premises and Equipment, net | 1,189,003 | 728,030 | |
Accrued Interest Receivable | 4,463,908 | 4,059,501 | |
Deferred Tax Asset | 7,579,833 | 7,428,794 | |
Bank-Owned Life Insurance | 28,700,809 | 28,469,911 | |
Right of Use Asset, net | 5,657,815 | 1,582,514 | |
Other Assets | 12,178,246 | 12,931,701 | |
Total Assets | $ 1,052,826,215 | $ 1,065,883,027 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Deposits | - | ||
Demand Deposits | |||
Non-interest Bearing | $ 149,338,747 | $ 149,516,366 | |
Interest Bearing | 548,420,087 | 555,799,698 | |
Savings Deposits | 2,289,866 | 1,989,696 | |
Time Deposits | 217,315,240 | 206,958,024 | |
Total Deposits | 917,363,940 | 914,263,784 | |
Federal Home Loan Bank Advances | 20,000,000 | 40,000,000 | |
Other Borrowings | 112,661 | 117,737 | |
Subordinated Debt (Net of Issuance Costs) | 19,948,049 | 19,928,568 | |
Accrued Interest Payable | $ 887,034 | 913,813 | |
Lease Liability | 5,878,842 | 1,666,836 | |
Other Liabilities | 4,385,636 | 4,852,310 | |
Total Liabilities | $ 968,576,162 | $ 981,743,048 | |
Stockholders' Equity | |||
Preferred stock, $0.01 par value, 5,000,000 shares authorized: | |||
0 Shares Issued and Outstanding, March 31, 2026 and | |||
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: | |||
6,973,747 and 6,984,013 Shares Issued and Outstanding | 69,737 | 69,840 | |
Non-Voting Common Stock: | - | - | |
0 Shares Issued and Outstanding at March 31, 2026 and | |||
Additional Paid-in Capital | 56,029,673 | 56,624,236 | |
Accumulated Other Comprehensive Income, Net | (14,645,539) | (14,189,941) | |
Retained Earnings | 42,796,182 | 41,635,844 | |
Total Stockholders' Equity | 84,250,053 | 84,139,979 | |
Total Liabilities and Stockholders' Equity | $ 1,052,826,215 | $ 1,065,883,027 | |
FREEDOM FINANCIAL HOLDINGS | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
(Unaudited) | (Unaudited) | |||
For the three | For the three | |||
months ended | months ended | |||
March 31, 2026 | March 31, 2025 | |||
Interest Income | ||||
Interest and Fees on Loans | $ 11,276,251 | $ 12,703,493 | ||
Interest on Investment Securities | 1,773,078 | 2,613,258 | ||
Interest on Deposits with Other Banks | 703,390 | 262,507 | ||
Total Interest Income | 13,752,719 | 15,579,258 | ||
Interest Expense | ||||
Interest on Deposits | 6,340,041 | 6,946,194 | ||
Interest on Borrowings | 517,291 | 913,154 | ||
Total Interest Expense | 6,857,332 | 7,859,348 | ||
Net Interest Income | 6,895,387 | 7,719,910 | ||
Provision/(Recovery) for Loan Losses | 59,336 | (284,683) | ||
Net Interest Income After | ||||
Provision for Loan Losses | 6,836,051 | 7,435,227 | ||
Non-Interest Income | ||||
Mortgage Loan Gain-on-Sale and Fee Revenue | 942,257 | 654,530 | ||
SBA Gain-on-Sale Revenue | - | - | ||
Service Charges and Other Income | 220,740 | 70,334 | ||
Servicing Income | 17,493 | 32,442 | ||
Increase in Cash Surrender Value of Bank- | ||||
owned Life Insurance | 230,899 | 220,864 | ||
Total Non-interest Income | 1,411,389 | 978,170 | ||
Total Revenue | 8,306,776 | 8,698,080 | ||
Non-Interest Expenses | ||||
Officer and Employee Compensation | 4,403,621 | 3,769,535 | ||
Occupancy Expense | 364,940 | 242,163 | ||
Equipment and Depreciation Expense | 10,712 | 8,726 | ||
Insurance Expense | 206,599 | 225,766 | ||
Professional Fees | 346,305 | 470,310 | ||
Data and Item Processing | 530,962 | 538,213 | ||
Advertising | 81,600 | 83,115 | ||
Franchise Taxes and State Assessment Fees | 326,569 | 314,214 | ||
Mortgage Fees and Settlements | 74,839 | 87,258 | ||
Other Operating Expense | 455,395 | 281,611 | ||
Total Non-interest Expenses | 6,801,542 | 6,020,911 | ||
Income Before Income Taxes | 1,445,898 | 2,392,486 | ||
Income Tax Expense/(Benefit) | 285,560 | 373,138 | ||
Net Income (Loss) | 1,160,338 | 2,019,348 | ||
Earnings (Loss) per Common Share - Basic | $ 0.16 | $ 0.28 | ||
Earnings (Loss) per Common Share - Diluted | $ 0.16 | $ 0.28 | ||
Weighted-Average Common Shares | ||||
Outstanding - Basic | 7,104,820 | 7,136,456 | ||
Weighted-Average Common Shares | ||||
Outstanding - Diluted | 7,174,318 | 7,193,284 | ||
FREEDOM FINANCIAL HOLDINGS | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(Unaudited) | (Audited) | (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, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||
Interest Income | |||||||||
Interest and Fees on Loans | $ 11,276,251 | $ 11,337,250 | $ 11,671,310 | $ 11,673,927 | $ 12,703,493 | ||||
Interest on Investment Securities | $ 1,773,078 | $ 2,224,322 | $ 2,307,732 | 2,450,914 | 2,613,258 | ||||
Interest on Deposits with Other Banks | $ 703,390 | $ 214,396 | $ 507,622 | 750,610 | 262,507 | ||||
Total Interest Income | 13,752,719 | 13,775,968 | 14,486,664 | 14,875,451 | 15,579,258 | ||||
Interest Expense | |||||||||
Interest on Deposits | $ 6,340,041 | $ 6,260,656 | 7,036,552 | 7,275,073 | 6,946,194 | ||||
Interest on Borrowings | $ 517,291 | $ 818,943 | 701,474 | 724,216 | 913,154 | ||||
Total Interest Expense | 6,857,332 | 7,079,599 | 7,738,026 | 7,999,289 | 7,859,348 | ||||
Net Interest Income | 6,895,387 | 6,696,369 | 6,748,638 | 6,876,162 | 7,719,910 | ||||
Provision/(Recovery) for Loan Losses | $ 59,336 | $ 6,941,897 | 496,824 | 688,865 | 284,683 | ||||
Net Interest Income After | |||||||||
Provision for Loan Losses | 6,836,051 | (245,528) | 6,251,814 | 6,187,297 | 7,435,227 | ||||
Non-Interest Income | |||||||||
Mortgage Loan Gain-on-Sale and Fee Revenue | 942,257 | 680,766 | 718,684 | 797,759 | 654,530 | ||||
SBA Gain-on-Sale Revenue | - | - | - | - | - | ||||
Service Charges and Other Income | $ 220,740 | $ 246,568 | 453,981 | 270,230 | 70,334 | ||||
Servicing Income | 17,493 | 18,303 | 19,060 | 21,045 | 32,442 | ||||
Increase in Cash Surrender Value of Bank- | |||||||||
owned Life Insurance | 230,899 | 233,820 | 231,549 | 223,061 | 220,864 | ||||
Total Non-interest Income | 1,411,389 | 1,179,457 | 1,423,274 | 1,312,095 | 978,170 | ||||
Total Revenue | 8,306,776 | 7,875,826 | 8,171,912 | 8,188,257 | $ 8,698,080 | ||||
Non-Interest Expenses | |||||||||
Officer and Employee Compensation | |||||||||
and Benefits | $ 4,403,621 | $ 3,562,780 | 4,067,037 | 3,752,761 | 3,769,535 | ||||
Occupancy Expense | $ 364,940 | $ 239,846 | 246,378 | 244,279 | 242,163 | ||||
Equipment and Depreciation Expense | $ 10,712 | $ 12,898 | 16,039 | 16,619 | 8,726 | ||||
Insurance Expense | $ 206,599 | $ 126,852 | 244,170 | 220,346 | 225,766 | ||||
Professional Fees | $ 346,305 | $ 375,040 | 291,975 | 559,904 | 470,310 | ||||
Data and Item Processing | $ 530,962 | $ 523,717 | 540,506 | 595,492 | 538,213 | ||||
Advertising | $ 81,600 | $ 63,476 | 112,566 | 151,676 | 83,115 | ||||
Franchise Taxes and State Assessment Fees | $ 326,569 | $ 324,569 | 334,422 | 314,444 | 314,214 | ||||
Mortgage Fees and Settlements | 74,839 | 70,037 | 106,266 | 99,819 | 87,258 | ||||
Other Operating Expense | $ 455,395 | $ 315,610 | 368,343 | 396,213 | 281,611 | ||||
Total Non-interest Expenses | 6,801,542 | 5,614,825 | 6,327,702 | 6,351,552 | 6,020,911 | ||||
Income Before Income Taxes | 1,445,898 | (4,680,896) | 1,347,386 | 1,147,840 | 2,392,486 | ||||
Income Tax Expense/(Benefit) | 285,560 | (1,112,923) | 224,456 | 347,943 | 373,138 | ||||
Net Income (Loss) | $ 1,160,338 | $ (3,567,973) | $ 1,122,930 | $ 799,897 | $ 2,019,348 | ||||
Earnings (Loss) per Common Share - Basic | $ 0.16 | $ (0.50) | $ 0.16 | $ 0.11 | $ 0.28 | ||||
Earnings (Loss) per Common Share - Diluted | $ 0.16 | $ (0.50) | $ 0.16 | $ 0.11 | $ 0.28 | ||||
Weighted-Average Common Shares | |||||||||
Outstanding - Basic | 7,104,820 | 7,121,482 | 7,134,446 | 7,137,779 | 7,283,696 | ||||
Weighted-Average Common Shares | |||||||||
Outstanding - Diluted | 7,174,318 | 7,183,791 | 7,184,688 | 7,140,491 | 7,285,900 | ||||
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, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
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 | $78,256,733 | $703,390 | 3.65 % | $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 % | ||||||||||||||
Investments (Tax Exempt) | $19,983,529 | $150,924 | 3.06 % | $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 % | ||||||||||||||
Investments (Taxable) | $161,336,487 | $1,622,154 | 4.08 % | $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 % | ||||||||||||||
Total Investments | $181,320,016 | $1,773,078 | 3.97 % | 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 % | ||||||||||||||
Total Loans | $766,481,826 | $11,276,251 | 5.97 % | $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 % | ||||||||||||||
Earning Assets | $1,026,058,575 | $13,752,719 | 5.44 % | 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 % | ||||||||||||||
Assets | $1,075,063,057 | $1,160,338 | 0.44 % | $1,036,072,664 | (3,567,973) | -1.37 % | $1,058,353,304 | 1,122,930 | 0.42 % | $1,100,110,176 | 799,897 | 0.29 % | $ 1,083,851,440 | 2,019,348 | 0.76 % | ||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest Checking | $139,199,596 | $872,499 | 2.54 % | $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 % | ||||||||||||||
Money Market | $314,492,661 | $2,346,245 | 3.03 % | $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 % | ||||||||||||||
Savings | $2,092,200 | $1,087 | 0.21 % | $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 % | ||||||||||||||
Time Deposits | $334,036,792 | $3,120,209 | 3.79 % | $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 % | ||||||||||||||
Interest Bearing Deposits | $789,821,247 | $6,340,041 | 3.26 % | 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 % | ||||||||||||||
Borrowings | $55,160,259 | $ 517,291 | 3.80 % | $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 % | ||||||||||||||
Interest Bearing Liabilities | $844,981,507 | $ 6,857,332 | 3.29 % | 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 % | ||||||||||||||
Non Interest Bearing Deposits | $ 135,220,445 | $ 125,385,868 | $ 133,933,651 | $140,837,354 | $ 139,885,803 | ||||||||||||||||||||||||
Cost of Funds | 2.84 % | 2.99 % | 3.19 % | 3.19 % | 3.23 % | ||||||||||||||||||||||||
Net Interest Margin | $1,026,058,575 | $6,895,388 | 2.73 % | $ 6,696,368 | 2.70 % | $ 6,748,638 | 2.66 % | $ 6,876,162 | 2.66 % | $ 7,719,911 | 3.03 % | ||||||||||||||||||
Selected Financial Data by Quarter Ended: | |||||
(Unaudited) | |||||
Balance Sheet Ratios | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
Loans held-for-investment to Deposits | 84.04 % | 83.41 % | 86.72 % | 80.83 % | 82.65 % |
Income Statement Ratios (Quarterly) | |||||
Return on Average Assets (ROAA) | 0.44 % | -1.37 % | 0.42 % | 0.29 % | 0.76 % |
Return on Average Equity (ROAE) | 5.57 % | -15.96 % | 5.57 % | 3.97 % | 9.95 % |
Efficiency Ratio | 81.88 % | 71.29 % | 77.43 % | 77.57 % | 69.22 % |
Net Interest Margin | 2.73 % | 2.70 % | 2.66 % | 2.66 % | 3.03 % |
Yield on Average Earning Assets | 5.44 % | 5.55 % | 5.72 % | 5.73 % | 6.11 % |
Yield on Securities | 3.97 % | 4.23 % | 4.29 % | 4.39 % | 4.55 % |
Yield on Loans | 5.97 % | 5.98 % | 6.22 % | 6.20 % | 6.74 % |
Cost of Funds | 2.84 % | 2.99 % | 3.19 % | 3.19 % | 3.23 % |
Noninterest income to Total Revenue | 16.99 % | 14.98 % | 17.42 % | 16.02 % | 11.25 % |
Liquidity Ratios | |||||
Uninsured Deposits to Total Deposits | 27.11 % | 29.43 % | 24.51 % | 22.51 % | 22.50 % |
Total Liquidity to Uninsured Deposits | 117.18 % | 130.31 % | 136.91 % | 167.83 % | 122.33 % |
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days | 206.16 % | 251.78 % | 209.14 % | 252.65 % | 292.23 % |
Tangible Common Equity Ratio | 8.00 % | 7.91 % | 8.45 % | 7.85 % | 7.68 % |
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities) | 7.82 % | 7.76 % | 8.27 % | 7.64 % | 7.50 % |
Available -for-Sale securities (as % of total securities) | 89.58 % | 89.17 % | 90.64 % | 90.87 % | 91.12 % |
Per Share Data | |||||
Tangible Book Value | $12.08 | $12.05 | $12.45 | $12.01 | $11.87 |
Tangible Book Value (ex AOCI) | $14.18 | $14.08 | $14.58 | $14.39 | $14.26 |
Share Price Data | |||||
Closing Price | $11.90 | $11.83 | $11.52 | $11.26 | $9.90 |
Book Value Multiple | 99 % | 98 % | 93 % | 94 % | 83 % |
Common Stock Data | |||||
Outstanding Shares at End of Period | 6,973,747 | 6,984,013 | 7,002,103 | 7,002,103 | 7,002,103 |
Weighted Average shares outstanding, basic | 7,104,820 | 7,136,456 | 7,134,446 | 7,137,779 | 7,283,696 |
Weighted Average shares outstanding, diluted | 7,174,318 | 7,193,284 | 7,184,688 | 7,140,491 | 7,285,900 |
Capital Ratios (Bank Only) | |||||
Tier 1 Leverage ratio | 10.70 % | 11.05 % | 11.23 % | 10.66 % | 10.76 % |
Common Equity Tier 1 ratio | 13.50 % | 13.82 % | 14.64 % | 14.30 % | 14.14 % |
Tier 1 Risk Based Capital ratio | 13.50 % | 13.82 % | 14.64 % | 14.30 % | 14.14 % |
Total Risk Based Capital ratio | 14.42 % | 15.08 % | 15.53 % | 15.20 % | 14.95 % |
Credit Quality | |||||
Net Charge-offs to Average Loans | 0.81 % | 0.03 % | 0.13 % | 0.01 % | 0.03 % |
Total Non-performing Loans to loans held-for-investment | 2.46 % | 3.51 % | 2.30 % | 1.45 % | 1.45 % |
Total Non-performing Assets to Total Assets | 1.95 % | 2.51 % | 1.65 % | 0.98 % | 1.01 % |
Nonaccrual Loans to loans held-for-investment | 2.50 % | 3.51 % | 2.30 % | 1.45 % | 1.45 % |
Provision for Loan Losses | $59,336 | $6,941,897 | $496,824 | $688,865 | $284,683 |
Allowance for Loan Losses to Loan held-for-investment | 1.00 % | 1.82 % | 0.96 % | 0.96 % | 0.88 % |
Allowance for Loan Losses to Loans held-for-investment (ex PPP loans) | 1.00 % | 1.82 % | 0.96 % | 0.96 % | 0.88 % |
FREEDOM FINANCIAL HOLDINGS, INC. | ||||||||||
CONSOLIDATED SELECTED FINANCIAL DATA | ||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||
Quarter Ending | ||||||||||
1Net Interest Margin | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||
Average Earning Assets | $1,026,058,575 | $ 984,457,489 | $ 1,005,029,091 | $ 1,044,711,785 | $ 1,033,892,386 | |||||
Yield on Interest Earning Assets (GAAP) | 5.44 % | 5.55 % | 5.72 % | 5.73 % | 6.11 % | |||||
Net Interest Margin (NIM) (GAAP) | 2.73 % | 2.70 % | 2.66 % | 2.66 % | 3.03 % | |||||
2Efficiency Ratio (Non-GAAP) | Quarter Ending | |||||||||
March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
Net Interest Income | $ 6,895,387 | $ 6,696,369 | $ 6,748,638 | $ 6,876,162 | $ 7,719,910 | |||||
Non-Interest Income | 1,411,389 | 1,179,457 | $ 1,423,274 | 1,312,095 | 978,170 | |||||
Total Revenue | $ 8,306,776 | $ 7,875,826 | $ 8,171,912 | $ 8,188,257 | $ 8,698,080 | |||||
Non-Interest Expense | 6,801,542 | 5,614,825 | $ 6,327,702 | 6,351,552 | 6,020,911 | |||||
Efficiency Ratio (Non-GAAP) | 81.88 % | 71.29 % | 77.43 % | 77.57 % | 69.22 % | |||||
3Liquidity Ratios (Non-GAAP) | Quarter Ending | |||||||||
March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
Available-for-Sale Securities (as % of total securities) | 89.58 % | 89.17 % | 90.64 % | 90.87 % | 91.12 % | |||||
Uninsured Deposits to Total Deposits | 27.11 % | 29.43 % | 24.51 % | 22.51 % | 22.50 % | |||||
Total Liquidity to Uninsured Deposits | 117.18 % | 130.31 % | 136.91 % | 167.83 % | 122.33 % | |||||
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days | 206.16 % | 251.78 % | 209.14 % | 252.65 % | 292.23 % | |||||
Tangible Common Equity Ratio | 8.00 % | 7.91 % | 8.45 % | 7.85 % | 7.68 % | |||||
Tangible Common Equity Ratio(adjusted for unrealized losses | 7.82 % | 7.76 % | 8.27 % | 7.64 % | 7.50 % | |||||
on HTM Securities) | ||||||||||
3Total 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. |
4Total Revenue (Non-GAAP) |
Quarter Ending | ||||||||||
March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
Net Interest Income | $ 6,895,387 | $ 6,696,369 | $ 6,748,638 | $ 6,876,162 | $ 7,719,910 | |||||
Non-Interest Income | 1,411,389 | 1,179,457 | 1,423,274 | 1,312,095 | 978,170 | |||||
Total Revenue (non-GAAP) | $ 8,306,776 | $ 7,875,826 | $ 8,171,912 | $ 8,188,257 | $ 8,698,079 | |||||
5Tangible Book Value (ex-AOCI) (non-GAAP) | Quarter Ending | |||||||||
March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
Shareholder's Equity | $ 84,250,053 | $ 84,139,979 | $ 87,193,193 | $ 84,123,510 | $ 83,134,747 | |||||
Outstanding Shares at End of Period | 6,973,747 | 6,984,013 | 7,002,103 | 7,002,103 | 7,002,103 | |||||
Tangible Book Value (GAAP) | $ 12.08 | $ 12.05 | $ 12.45 | $ 12.01 | $ 11.87 | |||||
Accumulated Other Comprehensive Income (Net) (AOCI) | $ (14,645,539) | $ (14,189,941) | $ (14,881,004) | $ (16,657,368) | $ (16,748,443) | |||||
AOCI per share equivalent | (2.10) | (2.03) | (2.13) | (2.38) | (2.39) | |||||
Tangible Book Value (ex-AOCI) (non-GAAP) | $ 14.18 | $ 14.08 | $ 14.58 | $ 14.39 | $ 14.26 | |||||
Contact:
Scott Clark
Senior Executive Vice President & Chief Financial Officer
Phone: 703-667-4119
Email: [email protected]
SOURCE Freedom Financial Holdings
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