Freedom Financial Holdings Announces Earnings for Second Quarter of 2026

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Jul 31, 2026, 08:30 ET

MCLEAN, Va., July 31, 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 $289,621 or $0.04 per diluted share for the second quarter compared to net income of $1,160,338, or $0.16 per diluted share for the three months ended March 31, 2026, and net income of $799,896 or $0.11 per diluted share for the three months ended June 30, 2025. The current quarter included a write down on the carrying value of the firm's OREO of $668,301, from $1,302,801 to its appraised land value of $634,500. The quarter also saw an increase in the firm's allowance for loan loss with provision expense of $538,805, $385,208 of which was due in part to an increase in C&I loan balances and unfunded commitments for future loans and $153,597 due to from net charge-offs in the quarter.

Joseph J. Thomas, President, and CEO, commented, "The company experienced revenue growth in the quarter of 5.49% compared to prior year calendar quarter. Adjusted for the write down in our only OREO asset, we reported Pre-tax, Pre-Provision Net Income of $1,560,746 which is 3.69% better than linked quarter. For the second quarter of 2026, our Yield on Earning Assets improved to 5.57% in the quarter from 5.44% in Q1 due to improvement in asset mix, which translated into a net interest margin improvement of 10 basis points, to 2.83% from 2.73% in the prior quarter. In addition, our mortgage division had a very strong quarter that closed 112 mortgages and $54 million of loan volume, increasing gain on sale revenue by 14.6% compared to the prior quarter. We remain vigilant in our efforts to improve asset quality and believe we have eliminated future volatility in our earnings from this quarter's OREO and provision expense. At the same time, our entire team is focused on improving our net interest margin through core deposit growth, better deposit mix and reduced deposit costs. We celebrated the grand opening of our new branch and corporate headquarters in Tysons Corner this quarter and the 25^th anniversary of Freedom Bank on July 23, 2026. We are well positioned for the future as a relationship-driven, technology-enabled bank serving entrepreneurs, businesses, and families throughout Northern Virginia with experienced bankers who understand our client's dreams, quick, local decisions, and flexible, innovative solutions delivered with exceptional service.

Second Quarter 2026 Highlights include:

The Company posted net income of $289,621 or $0.04 per diluted share for the second quarter compared to net income of $1,160,338 or $0.16 per diluted share for the three months ended March 31, 2026, and net income of $799,896 or $0.11 per diluted share for the three months ended June 30, 2025.
Tangible Book Value per share improved during the quarter by $0.12 to $12.20 on June 30, 2026, compared to $12.08 on March 31, 2026, with quarter-to-date earnings and improvement on the valuation of the available for sale portfolio.
Return on Average Assets ("ROAA") was 0.11% for the quarter ended June 30, 2026, compared to ROAA of 0.44% for the quarter ended March 31, 2026, and 0.29% for the three months ended June 30, 2025.
Return on Average Equity ("ROAE") was 1.38% for the quarter ended June 30, 2026, compared to ROAE of 5.57% for the three months ended March 31, 2025, and 3.97% for the three months ended June 30, 2025.
Total Assets were $1.039 billion on June 30, 2026, a decrease of $14 million or 1.33% from total assets on March 31, 2026, as cash and securities came down and brokered deposit balances were reduced.
Gross Loans held-for-investment decreased by $7.3 million or 0.94% during the quarter.
Total deposits decreased by $42 million or by 4.64% during the quarter, led by a $30 million reduction in brokered deposits. Non-interest-bearing demand deposits decreased by $7.3 million during the quarter to $142.1 million and represented 16.24% of total deposits on June 30, 2026.
The net interest margin¹ increased in the second quarter to 2.83%, higher by 10 basis points compared to the linked quarter and by 18 basis points compared to the same period in 2025. The increase in the net interest margin across linked quarters was a result of holding less low margin assets, while the decrease for the same period a year ago is related to cost of funds reductions. The cost of funds was 2.85% for the second quarter, higher by 1 basis point compared to the linked quarter and lower by 35 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 17% compared to the linked quarter and by 26% compared to the same period in 2025. The increase in non-interest income in the second quarter of 2026 was primarily due to higher net revenue from the mortgage unit along with gains in the Bank's SBIC investments.
Non-interest expense increased by $943 thousand in the second quarter or by 14% compared to the linked quarter and increased by 22% compared to the same period in 2025. The increase in expenses compared to the linked quarter was largely due to the $668 thousand write down in the Bank's OREO valuation. Professional Fees were also elevated in the quarter and the Bank increased its marketing expense to promote its new Tysons Corner location.
The Efficiency Ratio²was 89.67% for the quarter ended June 30, 2026, compared to 81.88% for the linked quarter and 77.57% for the same period in 2025. Excluding the OREO write-down, the efficiency ratio would have been similar to the prior period at 81.93%.
Uninsured deposits were 24.9% of total deposits and total liquidity to uninsured deposits³ was 118.71% of uninsured deposits on June 30, 2026.
Net charge offs were 0.02% of average loans compared to 0.81% in the prior quarter which had the $6.2 million in charge-offs mostly related to one large loan that had been provisioned for in 2025. The ratio of non-accrual loans to loans held-for-investment was 3.32% on June 30, 2026, compared to 2.46% on March 31, 2026, and 1.45% on June 30, 2025. The ratio of non-performing assets to total assets was 2.57% on June 30, 2026, compared to 1.95% on March 31, 2026, and 0.98% on June 30, 2025.
The Company recognized a provision for loan losses of $538,805, related to changes in the overall portfolio including C&I loan growth.
The ratio of the allowance for loan losses to loans held-for-investment was 1.06% at June 30, 2026 compared to 1.00% 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 11.06%, Common Equity Tier 1 ratio of 13.66%, Tier 1 Risk Based Capital ratio of 13.66% and a Total Capital ratio of 14.63% as of June 30, 2026. Common Equity Tier 1, Tier 1 Risk Based Capital, and Total Capital ratios are up by 16 basis points, 16 basis points, and 21 basis points, respectively, due to the Bank holding lower average assets in the quarter, and accumulating earnings.

Net Interest Income

The Company recorded net interest income of $6.979 million for the second quarter of 2026, higher by 1.21% compared to the linked quarter, and by 1.5% compared to the same period in 2025. The net interest margin in the first quarter of 2026 was 2.83%, higher by 10 basis points compared to the linked quarter and by 18 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 5.57% in the second quarter of 2026, higher by 13 basis points compared to the linked quarter, and lower by 16 basis points compared to the prior year calendar quarter. The increase in yields on average earning assets in the second quarter compared to the linked quarter was primarily due to decreased cash and decreased securities held on the balance sheet in the quarter. The decrease over the calendar quarter is largely due to interest rate decreases on cash and floating rate securities and loans that took place over the second half of 2025.
Loan yields increased by 4 basis point to 6.01% from 5.97% in the linked quarter, while yields on investment securities increased by 4 basis points to 4.01% from 3.97% in the linked quarter. Loan yields decreased by 19 basis points, while yields on investment securities decreased by 38 basis points compared to the calendar quarter.
Cost of funds increased by 1 basis point to 2.85% from 2.84% in the linked quarter, and by 35 basis points compared to the prior year quarter, due to lower deposit and borrowing costs.

Non-interest Income

Non-interest income was $1.66 million for the first quarter, an increase of 17% when compared to the linked quarter and an increase of 26% when compared to the same period in 2025. The increase in non-interest income in the second 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 and SBIC investment income.

Total Revenue⁴

Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 3.98% compared to the linked quarter and by 5.49% compared to the calendar quarter in 2025. The increase in total revenue compared to the linked and calendar quarter was due to an increase in the net interest margin and from the gain on sale of residential mortgages.

Non-interest Expense

Non-interest expense in the second quarter increased by $943 thousand or by 13.9% compared to the linked quarter and increased by 21.9% compared to the same period in 2025. The increase in expenses compared to the linked quarter and calendar quarter was largely attributable to the $668 thousand OREO write-down. We also increased our marketing expenses related to promoting the new location and saw an increase in Professional Fees.

The Efficiency Ratio² was 89.67% for the quarter ended June 30, 2026, compared to 81.88% for the linked quarter and 77.57% for the same period in 2025. If not for the OREO expense in the quarter, the Bank would have had a 81.93% efficiency ratio.

Asset Quality

Non-accrual loans increased in the second quarter and were 3.32% of loans held-for-investment compared to 2.46% 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 2.57% of total assets as of June 30, 2026, compared to 1.95% of total assets, at the end of the linked quarter.

The Company recognized a provision for loan losses of $538,805, primarily related to changes in the overall portfolio mix.

The Company's ratio of Allowance for Loan Losses to loans held-for-investment was 1.06% as of June 30, 2026, compared to the ratio of Allowance for Loan Losses to loans held-for-investment of 1.00% as of March 31, 2026.

Total Assets

Total assets on June 30, 2026, were $1.039 billion compared to total assets of $1.053 billion on March 31, 2026. Changes in major asset categories since March 31, 2026, were as follows:

Interest bearing deposits at banks decreased by $6.7 million.
Investment balances decreased by $6.5 million.
Gross loans held-for investment decreased by $7.27 million
Residential mortgage loans held for sale increased by $1.74 million

Total Liabilities

Total liabilities on June 30, 2026, were $953.72 million compared to total liabilities of $968.58 million on March 31, 2026. Total deposits were $874.82 million on June 30, 2026, compared to total deposits of $917.36 million on March 31, 2026. Non-interest-bearing demand deposits decreased by $7.3 million during the second quarter and comprised 16.23% of total deposits at the end of the second quarter. Brokered Deposits decreased by $30.0 million while Federal Home Loan Bank borrowings increased by $25.0 million.

Stockholders' Equity and Capital

Stockholders' equity as of June 30, 2026, was $85.15 million compared to $84.25 million on March 31, 2026. AOCI increased during the second quarter as there was a slight decrease in unrealized losses on available-for-sale securities. The tangible book value of the Company's common stock on June 30, 2026, was $12.20 per share compared to $12.08 on March 31, 2026. Excluding AOCI losses/gains⁵, the tangible book value of the Company's common stock on June 30, 2026, was $14.29 per share compared to $14.18 on March 31, 2026.

Stock Buyback Program

In the second quarter, the Company did not have any purchases under its previously announced share repurchase program. As of June 30, 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 Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.

Capital Ratios

As of June 30, 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 June 30, 2026, and March 31, 2026, were as follows:

	June 30, 2026	March 31, 2026
Total Capital Ratio	14.63 %	14.42 %
Tier 1 Capital Ratio	13.66 %	13.50 %
Common Equity Tier 1 Capital Ratio	13.66 %	13.50 %
Leverage Ratio	11.06 %	10.70 %

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; 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; 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)
	June 30,	March 31,	December 31,
	2026	2026	2025
ASSETS
Cash and Due from Banks	$ 5,458,898	$ 4,527,248	$ 4,540,452
Interest Bearing Deposits with Banks	26,936,559	33,646,083	70,078,398
Securities Available-for-Sale	150,739,160	156,852,319	158,446,651
Securities Held-to-Maturity	17,846,586	18,242,410	19,242,952
Restricted Stock Investments	5,655,600	4,468,100	5,435,300
Loans Held for Sale	13,812,357	12,077,102	4,283,305
PPP Loans Held for Investment	112,661	112,661	117,738
Other Loans Held for Investment	763,549,261	770,827,073	762,435,469
Allowance for Loan Losses	(8,058,550)	(7,696,395)	(13,897,689)
Net Loans	769,415,729	775,320,441	752,938,823
Bank Premises and Equipment, net	1,499,670	1,189,003	728,030
Accrued Interest Receivable	4,525,299	4,463,908	4,059,501
Deferred Tax Asset	7,542,341	7,579,833	7,428,794
Bank-Owned Life Insurance	28,936,144	28,700,809	28,469,911
Right of Use Asset, net	5,339,622	5,657,815	1,582,514
Other Assets	14,970,136	12,178,246	12,931,701
Total Assets	$ 1,038,865,744	$1,052,826,215	$ 1,065,883,027
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand Deposits
Non-interest Bearing	$ 142,064,271	$ 149,338,747	$ 149,516,366
Interest Bearing	540,859,808	548,420,087	555,799,698
Savings Deposits	2,151,753	2,289,866	1,989,696
Time Deposits	189,748,053	217,315,240	206,958,024
Total Deposits	874,823,885	917,363,940	914,263,784
Federal Home Loan Bank Advances	45,000,000	20,000,000	40,000,000
Other Borrowings	-	112,661	117,737
Subordinated Debt (Net of Issuance Costs)	19,967,531	19,948,049	19,928,568
Accrued Interest Payable	546,253	887,034	913,813
Lease Liability	5,697,751	5,878,842	1,666,836
Other Liabilities	7,682,523	4,385,636	4,852,310
Total Liabilities	$ 953,717,943	$ 968,576,162	$ 981,743,048
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized:
0 Shares Issued and Outstanding, June 30, 2026, March 31, 2026 and December 31, 2025
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:
6,978,754 , 6,973,747 and 6,984,013 Shares Issued and Outstanding
at June 30, 2026, March 31, 2026 and December 31, 2025 respectively	69,788	69,737	69,840
Non-Voting Common Stock:	-	-	-
0 Shares Issued and Outstanding at June 30, 2026, March 31, 2026
and December 31, 2025 respectively)
Additional Paid-in Capital	56,565,519	56,029,673	56,624,236
Accumulated Other Comprehensive Income, Net	(14,573,309)	(14,645,539)	(14,189,941)
Retained Earnings	43,085,803	42,796,182	41,635,844
Total Stockholders' Equity	$ 85,147,801	$ 84,250,053	$ 84,139,979
Total Liabilities and Stockholders' Equity	$ 1,038,865,744	$1,052,826,215	$ 1,065,883,027

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the six	For the six
	months ended	months ended	months ended	months ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Interest Income
Interest and Fees on Loans	$ 11,650,836	$ 11,673,927	$ 22,927,087	$ 24,377,509
Interest on Investment Securities	1,787,268	2,450,914	3,560,347	5,064,172
Interest on Deposits with Other Banks	285,510	750,611	988,900	1,013,118
Total Interest Income	13,723,614	14,875,452	27,476,334	30,454,799
Interest Expense
Interest on Deposits	6,151,712	7,275,073	12,491,753	14,221,266
Interest on Borrowings	592,778	724,216	1,110,069	1,637,370
Total Interest Expense	6,744,490	7,999,289	13,601,822	15,858,637

Net Interest Income	6,979,124	6,876,162	13,874,512	14,596,162
Provision/(Recovery) for Loan Losses	538,805	688,865	598,141	973,548
Net Interest Income After
Provision for Loan Losses	6,440,319	6,187,298	13,276,371	13,622,614
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	1,079,890	797,759	2,022,147	1,455,072
SBA Gain-on-Sale Revenue	-	-	-	-
Service Charges and Other Income	327,093	270,230	547,834	344,121
Servicing Income	16,001	21,045	33,494	47,147
Increase in Cash Surrender Value of Bank-
owned Life Insurance	235,334	223,061	466,233	443,925
Total Non-interest Income	1,658,318	1,312,094	3,069,708	2,290,265

Total Revenue	8,637,442	8,188,257	16,944,220	16,886,427

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	4,373,967	3,752,761	8,777,587	7,522,296
Occupancy Expense	375,936	244,279	740,877	486,442
Equipment and Depreciation Expense	11,336	16,619	22,048	25,345
Insurance Expense	245,402	220,346	452,001	446,112
Professional Fees	439,501	559,904	785,807	1,030,213
Data and Item Processing	587,093	595,492	1,118,056	1,133,705
Advertising	109,791	151,676	191,391	234,791
Franchise Taxes and State Assessment Fees	329,846	314,444	656,415	628,658
Mortgage Fees and Settlements	153,051	99,819	227,890	174,548
Other Operating Expense	1,119,074	396,213	1,574,469	690,447
Total Non-interest Expenses	7,744,997	6,351,552	14,546,541	12,372,557
Income Before Income Taxes	353,640	1,147,840	1,799,538	3,540,322
Income Tax Expense/(Benefit)	64,019	347,943	349,579	721,082
Net Income	$ 289,621	$ 799,896	$ 1,449,959	$ 2,819,240
Earnings per Common Share - Basic	$ 0.04	$ 0.11	$ 0.20	$ 0.39
Earnings per Common Share - Diluted	$ 0.04	$ 0.11	$ 0.20	$ 0.39
Weighted-Average Common Shares
Outstanding - Basic	7,098,594	7,137,779	7,101,643	7,151,171
Weighted-Average Common Shares
Outstanding - Diluted	7,124,543	7,140,491	7,175,023	7,153,655

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the three	For the three	For the three
	months ended	months ended	months ended	months ended	months ended
	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025	June 30, 2025
Interest Income
Interest and Fees on Loans	$ 11,650,836	$ 11,276,251	$ 11,337,250	$ 11,671,310	$ 11,673,927
Interest on Investment Securities	1,787,268	1,773,078	2,224,322	2,307,732	2,450,914
Interest on Deposits with Other Banks	285,510	703,390	214,396	507,622	750,610
Total Interest Income	13,723,614	13,752,719	13,775,968	14,486,664	14,875,451
Interest Expense
Interest on Deposits	6,151,712	6,340,041	6,260,656	7,036,552	7,275,073
Interest on Borrowings	592,778	517,291	818,943	701,474	724,216
Total Interest Expense	6,744,490	6,857,332	7,079,599	7,738,026	7,999,289

Net Interest Income	6,979,124	6,895,387	6,696,369	6,748,638	6,876,162
Provision/(Recovery) for Loan Losses	538,805	59,336	6,941,897	496,824	688,865
Net Interest Income After
Provision for Loan Losses	6,440,319	6,836,051	(245,528)	6,251,814	6,187,297
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	1,079,890	942,257	680,766	718,684	797,759
SBA Gain-on-Sale Revenue	-	-	-	-	-
Service Charges and Other Income	327,093	220,740	246,568	453,981	270,230
Servicing Income	16,001	17,493	18,303	19,060	21,045
Increase in Cash Surrender Value of Bank-
owned Life Insurance	235,334	230,899	233,820	231,549	223,061
Total Non-interest Income	1,658,318	1,411,389	1,179,457	1,423,274	1,312,095

Total Revenue	8,637,442	8,306,776	7,875,826	8,171,912	8,188,257

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	4,373,967	4,403,621	3,562,780	4,067,037	3,752,761
Occupancy Expense	375,936	364,940	239,846	246,378	244,279
Equipment and Depreciation Expense	11,336	10,712	12,898	16,039	16,619
Insurance Expense	245,402	206,599	126,852	244,170	220,346
Professional Fees	439,501	346,305	375,040	291,975	559,904
Data and Item Processing	587,093	530,962	523,717	540,506	595,492
Advertising	109,791	81,600	63,476	112,566	151,676
Franchise Taxes and State Assessment Fees	329,846	326,569	324,569	334,422	314,444
Mortgage Fees and Settlements	153,051	74,839	70,037	106,266	99,819
Other Operating Expense	1,119,074	455,395	315,610	368,343	396,213
Total Non-interest Expenses	7,744,997	6,801,542	5,614,825	6,327,702	6,351,552
Income Before Income Taxes	353,640	1,445,898	(4,680,896)	1,347,386	1,147,840
Income Tax Expense/(Benefit)	64,019	285,560	(1,112,923)	224,456	347,943
Net Income (Loss)	$ 289,621	$ 1,160,338	$ (3,567,973)	$ 1,122,930	$ 799,897
Earnings (Loss) per Common Share - Basic	$ 0.04	$ 0.16	$ (0.50)	$ 0.16	$ 0.11
Earnings (Loss) per Common Share - Diluted	$ 0.04	$ 0.16	$ (0.50)	$ 0.16	$ 0.11
Weighted-Average Common Shares
Outstanding - Basic	7,098,594	7,104,820	7,121,482	7,134,446	7,137,779
Weighted-Average Common Shares
Outstanding - Diluted	7,124,543	7,174,318	7,183,791	7,184,688	7,140,491

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)

	Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield
Assets
Cash	$32,056,464	$277,476	3.47 %	$78,256,733	$703,390	3.65 %	$23,427,239	$214,395	3.63 %	$46,853,763	$507,622	4.30 %

Investments (Tax Exempt)	$19,253,217	$150,043	3.13 %	$19,983,529	$150,924	3.06 %	$20,215,951	$154,645	3.03 %	$19,928,687	$155,780	3.10 %
Investments (Taxable)	$160,163,550	$1,645,259	4.12 %	$161,336,487	$1,622,154	4.08 %	$188,641,324	$2,069,677	4.35 %	$193,341,006	$2,151,952	4.42 %
Total Investments	$179,416,767	$1,795,302	4.01 %	$181,320,016	$1,773,078	3.97 %	$208,857,275	$2,224,322	4.23 %	$213,269,693	$2,307,732	4.29 %

Total Loans	$777,241,247	$11,650,836	6.01 %	$766,481,826	$11,276,251	5.97 %	$752,172,975	$11,337,250	5.98 %	$744,905,635	$11,671,310	6.22 %

Earning Assets	$988,714,478	$13,723,614	5.57 %	$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 %



Assets	$1,047,065,095	$289,621	0.11 %	$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 %

Liabilities
Interest Checking	$128,410,952	$862,935	2.70 %	$139,199,596	$872,499	2.54 %	$151,579,307	$934,090	2.44 %	$127,149,614	$998,124	3.11 %
Money Market	$281,596,967	$2,111,939	3.01 %	$314,492,661	$2,346,245	3.03 %	$297,707,680	$2,468,165	3.29 %	$320,887,145	$2,722,629	3.37 %
Savings	$2,298,115	$1,120	0.20 %	$2,092,200	$1,087	0.21 %	$1,973,024	$1,045	0.21 %	$2,415,353	$1,051	0.17 %
Time Deposits	$338,730,230	$3,175,717	3.76 %	$334,036,792	$3,120,209	3.79 %	$285,497,039	$2,857,356	3.97 %	$317,448,404	$3,314,747	4.14 %
Interest Bearing Deposits	$751,036,264	$6,151,711	3.29 %	$789,821,247	$6,340,041	3.26 %	$736,757,050	$6,260,656	3.37 %	$767,900,516	$7,036,551	3.64 %

Borrowings	$61,577,333	$592,778	3.86 %	$55,160,259	$517,291	3.80 %	$76,844,331	$818,943	4.23 %	$61,329,539	$701,474	4.54 %

Interest Bearing Liabilities	$812,613,597	$6,744,490	3.33 %	$844,981,507	$6,857,332	3.29 %	$813,601,381	$7,079,599	3.45 %	$829,230,055	$7,738,025	3.70 %

Non Interest Bearing Deposits	$ 137,774,380			$ 135,220,445			$ 125,385,868			$ 133,933,651

Cost of Funds	$ 950,387,978	$ 6,744,490	2.85 %	$ 980,201,952	$ 6,857,332	2.84 %	$ 938,987,249	$ 7,079,599	2.99 %	$ 963,163,706	$ 7,738,025	3.19 %

Net Interest Margin	$988,714,479	$6,979,124	2.83 %	$1,026,058,575	$6,895,388	2.73 %	$984,457,489	$6,696,368	2.70 %	$1,005,029,091	$6,748,638	2.66 %

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025
	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield
Assets
Cash	$32,056,464	$277,476	3.47 %	$65,570,216	$750,611	4.59 %	$55,028,974	$980,866	3.59 %	$47,777,734	$1,013,118	4.28 %

Investments (Tax Exempt)	$19,253,217	$150,043	3.13 %	$19,843,159	$156,555	3.18 %	$19,616,356	$300,967	3.09 %	$20,027,655	$323,442	3.26 %
Investments (Taxable)	$160,163,550	$1,645,259	4.12 %	$204,066,557	$2,294,359	4.52 %	$160,746,778	$3,267,413	4.10 %	$208,324,597	$4,750,529	4.60 %
Total Investments	$179,416,767	$1,795,302	4.01 %	$223,909,716	$2,450,914	4.39 %	$180,363,134	$3,568,380	3.99 %	$228,352,252	$5,073,971	4.48 %

Total Loans	$777,241,247	$11,650,836	6.01 %	$755,231,852	$11,673,926	6.20 %	$771,891,259	$22,927,087	5.99 %	$759,665,068	$24,377,509	6.47 %

Earning Assets	$988,714,478	$13,723,614	5.57 %	$1,044,711,784	$14,875,451	5.73 %	$1,007,283,367	$27,476,333	5.50 %	$1,035,795,054	$30,464,598	5.93 %


Assets	$1,047,065,095	289,621	0.11 %	$1,100,110,176	799,897	0.29 %	$1,060,986,734	1,449,959	0.28 %	$1,092,025,722	2,819,240	0.52 %

Liabilities
Interest Checking	$128,410,952	$862,935	2.70 %	$125,175,008	$979,587	3.13 %	$133,775,471	$1,735,435	2.62 %	$123,980,287	$1,909,186	3.11 %
Money Market	$281,596,967	$2,111,939	3.01 %	$396,798,385	$3,620,383	3.65 %	$297,953,942	$4,458,185	3.02 %	$372,579,031	$6,779,987	3.67 %
Savings	$2,298,115	$1,120	0.20 %	$6,727,490	$1,503	0.09 %	$2,195,726	$2,207	0.20 %	$5,569,639	$2,658	0.10 %
Time Deposits	$338,730,231	$3,175,717	3.76 %	$272,467,884	$2,673,600	3.93 %	$336,396,476	$6,295,927	3.77 %	$283,341,703	$5,529,389	3.94 %
Interest Bearing Deposits	$751,036,265	$6,151,711	3.29 %	$801,168,767	$7,275,073	3.63 %	$770,321,615	$12,491,754	3.27 %	$785,470,660	$14,221,220	3.65 %

Borrowings	$61,577,333	$592,778	3.86 %	$63,255,808	$724,216	4.59 %	$58,386,523	$1,110,069	3.83 %	$70,756,945	$1,637,370	4.67 %

Interest Bearing Liabilities	$812,613,598	$6,744,490	3.33 %	$864,424,575	$7,999,289	3.71 %	$828,708,138	$13,601,822	3.31 %	$856,227,605	$15,858,590	3.73 %

Non Interest Bearing Deposits	$ 137,774,380			$ 140,837,354			$ 136,504,468			$ 167,639,041

Cost of Funds	$ 950,387,978	$ 6,744,490	2.85 %	$ 1,005,261,929	$ 7,999,289	3.19 %	$ 965,212,607	$ 13,601,822	2.84 %	$ 1,023,866,646	$ 15,858,590	3.12 %

Net Interest Margin	$988,714,479	$6,979,124	2.83 %	$1,044,711,784	$6,876,162	2.64 %	$1,007,283,366	$13,874,512	2.78 %	$1,035,795,054	$14,606,007	2.84 %

Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025	June 30, 2025
Loans held-for-investment to Deposits	87.29 %	84.04 %	83.41 %	86.72 %	80.83 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA)	0.11 %	0.44 %	-1.37 %	0.42 %	0.29 %
Return on Average Equity (ROAE)	1.38 %	5.57 %	-15.96 %	5.57 %	3.97 %
Efficiency Ratio	89.67 %	81.88 %	71.29 %	77.43 %	77.57 %
Net Interest Margin	2.83 %	2.73 %	2.70 %	2.66 %	2.66 %
Yield on Average Earning Assets	5.57 %	5.44 %	5.55 %	5.72 %	5.73 %
Yield on Securities	4.01 %	3.97 %	4.23 %	4.29 %	4.39 %
Yield on Loans	6.01 %	5.97 %	5.98 %	6.22 %	6.20 %
Cost of Funds	2.85 %	2.84 %	2.99 %	3.19 %	3.19 %
Noninterest income to Total Revenue	19.20 %	16.99 %	14.98 %	17.42 %	16.02 %
Liquidity Ratios
Uninsured Deposits to Total Deposits	24.90 %	27.11 %	29.43 %	24.51 %	22.51 %
Total Liquidity to Uninsured Deposits	118.71 %	117.18 %	130.31 %	136.91 %	167.83 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	166.82 %	206.16 %	251.78 %	209.14 %	252.65 %
Tangible Common Equity Ratio	8.20 %	8.00 %	7.91 %	8.45 %	7.85 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)	8.01 %	7.82 %	7.76 %	8.27 %	7.64 %

Available -for-Sale securities (as % of total securities)	89.41 %	89.58 %	89.17 %	90.64 %	90.87 %
Per Share Data
Tangible Book Value	$12.20	$12.08	$12.05	$12.45	$12.01
Tangible Book Value (ex AOCI)	$14.29	$14.18	$14.08	$14.58	$14.39
Share Price Data
Closing Price	$12.15	$11.90	$11.83	$11.52	$11.26
Book Value Multiple	100 %	99 %	98 %	93 %	94 %
Common Stock Data
Outstanding Shares at End of Period	6,978,754	6,973,747	6,984,013	7,002,103	7,002,103
Weighted Average shares outstanding, basic	7,098,594	7,104,820	7,136,456	7,134,446	7,137,779
Weighted Average shares outstanding, diluted	7,124,543	7,174,318	7,193,284	7,184,688	7,140,491
Capital Ratios (Bank Only)
Tier 1 Leverage ratio	11.06 %	10.70 %	11.05 %	11.23 %	10.66 %
Common Equity Tier 1 ratio	13.66 %	13.50 %	13.82 %	14.64 %	14.30 %
Tier 1 Risk Based Capital ratio	13.66 %	13.50 %	13.82 %	14.64 %	14.30 %
Total Risk Based Capital ratio	14.63 %	14.42 %	15.08 %	15.53 %	15.20 %
Credit Quality
Net Charge-offs to Average Loans	0.02 %	0.81 %	0.03 %	0.13 %	0.01 %
Total Non-performing Loans to loans held-for-investment	3.32 %	2.46 %	3.51 %	2.30 %	1.45 %
Total Non-performing Assets to Total Assets	2.57 %	1.95 %	2.51 %	1.65 %	0.98 %
Nonaccrual Loans to loans held-for-investment	3.32 %	2.50 %	3.51 %	2.30 %	1.45 %
Provision for Loan Losses	$538,805	$59,336	$6,941,897	$496,824	$688,865
Allowance for Loan Losses to net loans held-for-investment	1.06 %	1.00 %	1.82 %	0.96 %	0.96 %
Allowance for Loan Losses to net loans held-for-investment (ex PPP loans)	1.06 %	1.00 %	1.82 %	0.96 %	0.96 %

FREEDOM FINANCIAL HOLDINGS, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

	Quarter Ending
¹Net Interest Margin	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025	June 30, 2025
Average Earning Assets	$988,714,478	$ 1,026,058,575	$ 984,457,489	$ 1,005,029,091	$ 1,044,711,785
Yield on Interest Earning Assets (GAAP)	5.57 %	5.44 %	5.55 %	5.72 %	5.73 %
Net Interest Margin (NIM) (GAAP)	2.83 %	2.73 %	2.70 %	2.66 %	2.66 %


²Efficiency Ratio (Non-GAAP)		Quarter Ending
	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025	June 30, 2025
Net Interest Income	$ 6,979,124	$ 6,895,387	$ 6,696,369	$ 6,748,638	$ 6,876,162
Non-Interest Income	1,658,318	1,411,389	$ 1,179,457	1,423,274	1,312,095
Total Revenue	$ 8,637,442	$ 8,306,776	$ 7,875,826	$ 8,171,912	$ 8,188,257
Non-Interest Expense	7,744,997	6,801,542	$ 5,614,825	6,327,702	6,351,552
Efficiency Ratio (Non-GAAP)	89.67 %	81.88 %	71.29 %	77.43 %	77.57 %

³Liquidity Ratios (Non-GAAP)		Quarter Ending
	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025	June 30, 2025
Available-for-Sale Securities (as % of total securities)	89.41 %	89.58 %	89.17 %	90.64 %	90.87 %
Uninsured Deposits to Total Deposits	24.90 %	27.11 %	29.43 %	24.51 %	22.51 %
Total Liquidity to Uninsured Deposits	118.71 %	117.18 %	130.31 %	136.91 %	167.83 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	166.82 %	206.16 %	251.78 %	209.14 %	252.65 %
Tangible Common Equity Ratio	8.20 %	8.00 %	7.91 %	8.45 %	7.85 %
Tangible Common Equity Ratio(adjusted for unrealized losses	8.01 %	7.82 %	7.76 %	8.27 %	7.64 %
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