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Freedom Financial Holdings Announces Earnings for Second Quarter of 2025

News Provided by PR Newswire2025-07-30

Freedom Financial Holdings Announces Earnings for Second Quarter of 2025

[30-July-2025]

FAIRFAX, Va., July 30, 2025 /PRNewswire/ -- Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced net income of $799,896 or $0.11 per diluted share for the second quarter compared to net income of $2,019,348, or $0.28 per diluted share for the three months ended March 31, 2025, and net income of $2,044,233 or $0.28 per diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025, was $2,819,240 or $0.39 per diluted share, compared to $3,208,460 or $0.44 per diluted share for the six months ended June 30, 2024.

Joseph J. Thomas, President, and CEO, commented, "While proactively increasing our loan loss provision negatively impacted our bottom line results, our second quarter performance reflects strong improvement in core profitability as pre-tax, pre-provision income1 of $1.84 million increased by 35.7% compared to the same quarter in 2024, driven by a 25-basis point increase in net interest margin to 2.66% and a 7.8% increase in non-interest income in the quarter compared to last year. With payoffs in problem loans, run-off in the investment portfolio, and increased core deposit inflows, we repaid higher cost brokered time deposits and borrowings to reduce cost of funds by 42 basis points compared to 2024. While loan demand remained tepid in the second quarter, the investments in our team and technology and improvement in the company's balance sheet resilience will enable us to meet current and new customer demand and achieve higher levels of loan and deposit growth as the economy stabilizes in the second half of 2025."

Second Quarter 2025 Highlights include:

The Company posted net income of $799,896 or $0.11 per diluted share for the second quarter compared to net income of $2,019,348 or $0.28 per diluted share for the three months ended March 31, 2025, and net income of $2,044,233 or $0.28 per diluted share for the three months ending June 30, 2024.
Tangible Book Value per share² increased during the quarter to $12.01 on June 30, 2025, compared to $11.87 on March 31, 2025.
Return on Average Assets ("ROAA") was 0.29% for the quarter ended June 30, 2025, compared to ROAA of 0.76% for the quarter ended March 31, 2025, and 0.75% for the three months ended June 30, 2024.
Return on Average Equity ("ROAE") was 3.97% for the quarter ended June 30, 2025, compared to ROAE of 9.95% for the three months ended March 31, 2025, and 10.71% for the three months ended June 30, 2024.
Total Assets were $1.07 billion on June 30, 2025, a decrease of $18.41 million or 1.69% from total assets on December 31, 2024.
Loans held-for-investment (excluding PPP loans) decreased by $10.59 million or 1.41% during the quarter.
Total deposits increased by $7.38 million or by 0.81% during the quarter, indicating results from our marketing efforts.
Non-interest-bearing demand deposits decreased by $15.58 million from the linked quarter to $126.92 million and represented 13.82% of total deposits on June 30, 2025.
The net interest margin³ decreased in the second quarter to 2.66%, lower by 37 basis points compared to the linked quarter and increased by 25 basis points compared to the same period in 2024. The decrease in the net interest margin across linked quarters was primarily related to interest income recovery during the first quarter. The change from the prior year's second quarter represents improvements in cost of funds as the Bank has decreased its use of wholesale funding.
The cost of funds was 3.19% for the second quarter, lower by 4 basis points compared to the linked quarter and lower by 42 basis points compared to the same period in 2024, as the reduction of wholesale funding continued.
Non-interest income increased by 34.14% compared to the linked quarter and increased by 7.79% compared to the same period in 2024. The increase in non-interest income in the second quarter of 2025 compared to the linked quarter was primarily due to higher revenue from mortgage loans and an increase in the value of investments in SBIC's.
Non-interest expense in the second quarter increased by 5.49% compared to the linked quarter and increased by 4.95% compared to the same period in 2024. The increase in non-interest expense compared to the linked quarter and prior calendar quarter was primarily due to higher expenses related to data processing costs and compensation expense.
The Efficiency Ratio⁴ was 77.57% for the quarter ended June 30, 2025, compared to 69.22% for the linked quarter and 81.72% for the same period in 2024.
Uninsured deposits were 22.76% of total deposits and total liquidity⁵ was 167.83% of uninsured deposits on June 30, 2025.
Net charge offs decreased in the second quarter and were 0.01% of average loans compared to 0.03% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 1.45% on June 30, 2025, compared to 1.45% on March 31, 2025, and 1.49% on June 30, 2024. The ratio of non-performing assets to total assets was 0.98% on June 30, 2025, compared to 1.01% on March 31, 2025, and 1.06% on June 30, 2024.
The Company had a loan loss provision of $688,865 in the second quarter, which increased the allowance for credit losses, due in part to the increase in specific reserves related to two loans, while nearly half of the increase was related to the increase in qualitative factors in the model for changes in the outlook of general economic conditions.
The ratio of the allowance for credit losses to loans held-for-investment was 0.96% compared to 0.88% in the linked quarter.
The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.66%, Common Equity Tier 1 ratio of 14.30%, Tier 1 Risk Based Capital ratio of 14.30% and a Total Capital ratio of 15.20%.

Net Interest Income
The Company recorded net interest income of $6.88 million for the second quarter of 2025, lower by 10.93% compared to the linked quarter, and higher by 11.12% compared to the same period in 2024. The net interest margin in the second quarter of 2025 was 2.66%, lower by 37 basis points compared to the linked quarter and higher by 25 basis points compared to the same period in 2024.

The following factors contributed to the changes in net interest margin during the second quarter of 2024 compared to the linked and calendar quarters.

Yields on average earning assets were 5.73% in the second quarter of 2025, lower by 38 basis points compared to the linked quarter, and lower by 17 basis points compared to the calendar quarter. The decline in yields on average earning assets in the second quarter was primarily due to non-recurring interest income being recognized in the first quarter.
Loan yields decreased by 54 basis points to 6.20% from 6.74% in the linked quarter, while yields on investment securities decreased by 16 basis points to 4.39% from 4.55% in the linked quarter. Loan yields decreased by 17 basis points, while yields on investment securities decreased by 53 basis points compared to the calendar quarter.
Cost of funds decreased by 4 basis points to 3.19% from 3.23% in the linked quarter, and by 42 basis points compared to the calendar quarter. The decrease was primarily due to a decline in costs for time deposits and borrowings, partially offset by an increase in costs for non-maturity deposits.

Non-interest Income
Non-interest income was $1.31 million for the second quarter, an increase of 34.14% when compared to the linked quarter and an increase of 7.79% when compared to the same period in 2024. The increase in non-interest income in the second quarter of 2025 compared to the linked quarter was primarily due to higher revenue from mortgage loans and an increase in the value of investments in SBIC's.

Total Revenue ⁶
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 5.86% compared to the linked quarter and higher by 10.57% compared to the calendar quarter in 2024. The decrease in total revenue compared to the linked quarter was primarily due to non-recurring interest recognized in the first quarter.

Non-interest Expense
Non-interest expense in the second quarter increased by 5.49% compared to the linked quarter and increased by 4.95% compared to the same period in 2024. The increase in non-interest expense compared to both the linked and calendar quarters was primarily due to compensation and data processing expense

The Efficiency Ratio was 77.57% for the quarter ended June 30, 2025, compared to 69.22% for the linked quarter and 81.72% for the same period in 2024.

Asset Quality
Non-accrual loans were unchanged in the second quarter and were 1.45% of loans held-for-investment compared to 1.45% of loans held-for-investment at the end of the linked quarter. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, and OREO assets) were 0.98% of total assets as of June 30, 2025, compared to 1.01% of total assets, at the end of the linked quarter.

The Company recognized a provision for loan losses of $688,865, related to specific reserves for two loan relationships, but largely due to the adjustment in qualitative factors in our model for a weakening economic outlook.

The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 0.96% as of June 30, 2025, compared to the ratio of Allowance for Credit Losses to loans held-for-investment of 0.88% as of March 31, 2025.

Total Assets
Total assets on June 30, 2025, were $1.07 billion compared to total assets of $1.08 billion on March 31, 2025.

Total Liabilities
Total liabilities on June 30, 2025, were $987.96 million compared to total liabilities of $999.01 million on March 31, 2025, and total liabilities of $1.01 billion on December 31, 2024. Total deposits were $918.25 million on June 30, 2025, compared to total deposits of $910.87 million on March 31, 2025, and total deposits of $909.53 million on December 31, 2024. Non-interest-bearing demand deposits decreased by $15.58 million during the second quarter and comprised 13.82% of total deposits at the end of the second quarter. Other interest-bearing demand deposits increased by $80.68 million, savings deposits decreased by $5.48 million and time deposits decreased by $52.25 million during the quarter. Federal Home Loan Bank borrowings decreased by $15 million during the quarter.

Stockholders' Equity and Capital
Stockholders' equity as of June 30, 2025, was $84.12 million compared to $83.13 million on March 31, 2025, and stockholders' equity of $81.44 million on December 31, 2024. AOCI was relatively unchanged during the second quarter. The tangible book value of the Company's common stock on June 30, 2025, was $12.01 per share compared to $11.87 on March 31, 2025, and tangible book value per share of $11.39 on December 31, 2024. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on June 30, 2025, was $14.39 per share compared to $14.26 on March 31, 2025, and $13.94 per share on December 31, 2024.

Stock Buyback Program
In the first quarter, the Company purchased 177,692 shares pursuant to its previously announced share repurchase program, but made no repurchases in the second quarter. As of June 30, 2025, the Company had repurchased 214,400 of the 250,000 shares authorized for repurchase under the program. Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.

Capital Ratios
As of June 30, 2025, the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of June 30, 2025, and December 31, 2024, were as follows:

	June 30, 2025	December 31, 2024
Total Capital Ratio	15.20 %	14.35 %

Tier 1 Capital Ratio	14.30 %	13.57 %

Common Equity Tier 1 Capital Ratio	14.30 %	13.57 %

Leverage Ratio	10.66 %	10.39 %

About Freedom Financial Holdings, Inc.

Freedom Financial Holdings, Inc. is the holding company of The Freedom Bank of Virginia, a community bank with locations in Fairfax, Reston, Chantilly, Vienna, and Manassas, Virginia. For information about deposits, loans and other services, visit the website at www.freedom.bank.

Forward Looking Statements

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of the impact of geopolitical conflicts, such as the war between Russia and Ukraine and the conflict in the Middle East; U.S. and global trade policies and changes, including the impact of the imposition of or changes in tariffs and trade barriers, adverse developments in the financial services industry such as the bank failures in 2023; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for credit losses; acquisition or loss of key production personnel; whether we realize the expected impact of our investments in technology and personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Company may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED BALANCE SHEETS


	(Unaudited)	(Unaudited)	(Audited)
	June 30,	March 31,	December 31,
	2025	2025	2024
ASSETS
Cash and Due from Banks	$ 10,668,471	$ 6,456,093	$ 5,685,008
Interest Bearing Deposits with Banks	48,991,785	39,016,262	23,004,874
Securities Available-for-Sale	193,740,578	203,807,955	209,687,859
Securities Held-to-Maturity	19,475,547	19,852,060	20,315,651
Restricted Stock Investments	5,065,300	5,777,800	6,249,000
Loans Held for Sale	4,882,264	5,487,972	5,963,969
PPP Loans Held for Investment	133,049	137,066	159,825
Other Loans Held for Investment	742,071,827	752,664,602	767,737,719
Allowance for Loan Losses	(7,188,387)	(6,592,220)	(6,534,757)
Net Loans	739,898,753	751,697,420	761,362,787
Bank Premises and Equipment, net	717,599	742,588	767,773
Accrued Interest Receivable	4,567,221	3,991,413	4,155,077
Deferred Tax Asset	6,587,963	7,230,083	7,560,441
Bank-Owned Life Insurance	28,004,541	27,781,480	27,560,616
Right of Use Asset, net	1,572,800	3,361,641	1,874,403
Other Assets	12,791,140	12,428,097	16,299,753
Total Assets	$ 1,072,081,698	$ 1,082,142,892	$ 1,090,487,211

LIABILITIES AND STOCKHOLDERS' EQUITY	-
Deposits
Demand Deposits
Non-interest Bearing	$ 126,922,031	$ 142,497,191	133,665,194
Interest Bearing	552,796,334	472,115,491	$ 475,397,117
Savings Deposits	2,550,937	8,034,522	3,866,241
Time Deposits	235,975,996	288,222,304	296,603,142
Total Deposits	918,245,298	910,869,508	909,531,694
Federal Home Loan Bank Advances	40,000,000	55,000,000	65,000,000
Other Borrowings	133,049	146,377	159,825
Subordinated Debt (Net of Issuance Costs)	19,889,606	19,870,125	19,850,643
Accrued Interest Payable	2,014,296	1,846,477	2,445,741
Lease Liability	1,694,646	1,855,161	2,013,912
Other Liabilities	5,981,294	9,420,497	10,045,990
Total Liabilities	$ 987,958,189	$ 999,008,145	1,009,047,805
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized:
0 Shares Issued and Outstanding, June 30, 2025, March 31, 2025 and December 31, 2024
Common Stock, $0.01 Par Value, 25,000,000 Shares authorized:
23,000,000 Shares Voting and 2,000,000 Shares Non-voting.
Voting Common Stock:
7,002,103 , 7,002,103 and 7,268,087 Shares Issued and Outstanding
at June 30, 2025, March 31, 2025 and December 31, 2024 respectively	70,021	70,021	71,501
Non-Voting Common Stock:	-	-
0 Shares Issued and Outstanding at June 30, 2025, March 31, 2025
and December 31, 2024 respectively)			-
Additional Paid-in Capital	56,630,385	56,532,591	58,347,356
Accumulated Other Comprehensive Income, Net	(16,657,368)	(16,748,443)	(18,240,683)
Retained Earnings	44,080,472	43,280,578	41,261,232
Total Stockholders' Equity	$ 84,123,509.55	83,134,747	81,439,406
Total Liabilities and Stockholders' Equity	$ 1,072,081,698	$ 1,082,142,892	$ 1,090,487,211

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the six	For the six
	months ended	months ended	months ended	months ended
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Interest Income
Interest and Fees on Loans	$ 11,673,927	$ 11,893,288	$ 24,377,509	$ 24,176,527
Interest on Investment Securities	2,450,914	2,927,306	5,064,172	5,798,785
Interest on Deposits with Other Banks	750,611	375,815	1,013,118	704,072
Total Interest Income	14,875,452	15,196,409	30,454,799	30,679,384
Interest Expense
Interest on Deposits	7,275,073	7,865,934	14,221,266	15,889,824
Interest on Borrowings	724,216	1,142,481	1,637,370	2,054,407
Total Interest Expense	7,999,289	9,008,415	15,858,637	17,944,231

Net Interest Income	6,876,162	6,187,994	14,596,162	12,735,154
Provision/(Recovery) for Loan Losses	688,865	(1,167,997)	973,548	(1,195,483)
Net Interest Income After
Provision for Loan Losses	6,187,298	7,355,991	13,622,614	13,930,637
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	797,759	745,366	1,455,072	1,282,090
SBA Gain-on-Sale Revenue	-	-	-	287,032
Service Charges and Other Income	270,230	221,022	344,121	353,445
Gain on Sale of Securities	-	1,816	-	(13,246)
Servicing Income	21,045	42,268	47,147	77,522
Swap Fee Income	-	-	-	-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	223,061	206,796	443,925	404,760
Total Non-interest Income	1,312,094	1,217,268	2,290,265	2,391,603

Total Revenue	8,188,257	7,405,262	16,886,427	15,126,757

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	3,752,761	3,544,148	7,522,296	7,279,287
Occupancy Expense	244,279	255,233	486,442	647,109
Equipment and Depreciation Expense	16,619	185,959	25,345	53,081
Insurance Expense	220,346	229,259	446,112	453,266
Professional Fees	559,904	568,765	1,030,213	1,095,339
Data and Item Processing	595,492	395,579	1,133,705	985,084
Advertising	151,676	162,354	234,791	277,352
Franchise Taxes and State Assessment Fees	314,444	276,843	628,658	586,713
Mortgage Fees and Settlements	99,819	83,617	174,548	178,617
Other Operating Expense	396,213	349,979	690,447	722,214
Total Non-interest Expenses	6,351,552	6,051,736	12,372,557	12,278,062
Income Before Income Taxes	1,147,840	2,521,523	3,540,322	4,044,178
Income Tax Expense/(Benefit)	347,943	477,293	721,082	835,718
Net Income	$ 799,896	$ 2,044,230	$ 2,819,240	$ 3,208,460
Earnings per Common Share - Basic	$ 0.11	$ 0.28	$ 0.39	$ 0.44
Earnings per Common Share - Diluted	$ 0.11	$ 0.28	$ 0.39	$ 0.44
Weighted-Average Common Shares
Outstanding - Basic	7,137,779	7,267,044	7,151,171	7,276,076
Weighted-Average Common Shares
Outstanding - Diluted	7,140,491	7,305,392	7,153,655	7,314,424

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the three	For the three	For the three
	months ended	months ended	months ended	months ended	months ended
	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024
Interest Income
Interest and Fees on Loans	$ 11,673,927	$ 12,703,493	$ 11,991,578	$ 12,358,391	$ 11,893,288
Interest on Investment Securities	2,450,914	2,613,258	2,798,420	2,932,219	2,927,306
Interest on Deposits with Other Banks	750,610	262,507	446,184	390,373	375,815
Total Interest Income	14,875,451	15,579,258	15,236,182	15,680,983	15,196,409
Interest Expense
Interest on Deposits	7,275,073	6,946,194	7,628,382	7,968,925	7,865,934
Interest on Borrowings	724,216	913,154	1,183,419	1,613,452	1,142,481
Total Interest Expense	7,999,289	7,859,348	8,811,801	9,582,377	9,008,415

Net Interest Income	6,876,162	7,719,910	6,424,381	6,098,606	6,187,994
Provision/(Recovery) for Loan Losses	688,865	284,683	14,922	546,439	(1,167,997)
Net Interest Income after
Provision/Recovery for Loan Losses	6,187,297	7,435,227	6,409,459	5,552,166	7,355,991
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	797,759	654,530	769,060	649,097	745,366
SBA Gain-on-Sale Revenue	-	-	-	-	-
Service Charges and Other Income	270,230	70,334	252,275	255,889	221,022
Gains on Sale of Securities	-	-	-	-	1,816
Servicing Income	21,045	32,442	36,090	36,752	42,268
Swap Fee Income	-	-	-	-	-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	223,061	220,864	212,876	211,642	206,796
Total Non-interest Income	1,312,094	978,170	1,270,301	1,153,380	1,217,268

Total Revenue⁵	8,188,256	$ 8,698,080	$ 7,694,682	$ 7,251,986	$ 7,405,262

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	3,752,761	3,769,535	3,905,728	3,674,499	3,544,148
Occupancy Expense	244,279	242,163	233,967	233,807	255,233
Equipment and Depreciation Expense	16,619	8,726	20,951	16,648	32,420
Insurance Expense	220,346	225,766	228,224	232,774	229,259
Professional Fees	559,904	470,310	451,065	532,379	568,765
Data and Item Processing	595,492	538,213	684,698	701,865	549,118
Advertising	151,676	83,115	90,368	172,136	162,354
Franchise Taxes and State Assessment Fees	314,443	314,214	316,976	329,056	276,843
Mortgage Fees and Settlements	99,819	87,258	119,037	123,853	83,617
Other Operating Expense	396,213	281,611	417,893	374,273	349,979
Total Non-interest Expenses	6,351,552	6,020,911	6,468,907	6,391,291	6,051,736
Income before Income Taxes	1,147,840	2,392,486	1,210,853	314,256	2,521,526
Income Tax Expense	347,943	373,138	83,793	(30,663)	477,293
Net Income	$ 799,896	$ 2,019,348	$ 1,127,060	$ 344,919	$ 2,044,233
Earnings per Common Share - Basic	$ 0.11	$ 0.28	$ 0.16	$ 0.05	$ 0.28
Earnings per Common Share - Diluted	$ 0.11	$ 0.28	$ 0.16	$ 0.05	$ 0.28
Weighted-Average Common Shares
Outstanding - Basic	7,137,779	7,283,696	7,268,087	7,263,880	7,267,044
Weighted-Average Common Shares
Outstanding - Diluted	7,140,491	7,285,900	7,324,559	7,299,553	7,305,392

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

	Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield
Assets
Cash	$65,570,216	$750,611	4.59 %	$36,901,243	$ 262,507	2.89 %	$ 39,134,308	$ 446,184	4.54 %	$ 29,674,932	$ 390,373	5.23 %	$ 26,916,165	$ 375,815	5.62 %

Investments (Tax Exempt)	$19,843,159	$156,555		$20,214,201	157,089		20,664,409	201,561		20,716,896	203,062		20,889,466	204,795
Investments (Taxable)	$204,066,557	$2,294,359		$212,629,949	2,456,170		220,415,008	2,639,187		223,526,525	2,771,800		222,105,603	2,765,518
Total Investments	223,909,716	2,450,914	4.39 %	$232,844,150	2,613,258	4.55 %	241,079,417	2,840,748	4.69 %	244,243,421	2,974,862	4.85 %	242,995,069	2,970,313	4.92 %

Total Loans	$755,231,852	$11,673,926	6.20 %	$764,147,542	12,703,493	6.74 %	775,756,877	$11,991,578	6.15 %	780,143,594	12,358,391	6.30 %	768,712,204	11,893,288	6.22 %

Earning Assets	1,044,711,785	$14,875,451	5.73 %	$1,033,892,386	15,579,258	6.11 %	1,055,970,602	15,278,510	5.76 %	1,054,061,947	15,723,626	5.93 %	1,038,623,438	15,239,416	5.90 %



Assets	$1,100,110,176			$1,083,851,440			$ 1,110,466,582			$ 1,111,788,038			$ 1,096,367,899

Liabilities
Interest Checking	$125,175,008	$979,587	3.13 %	$211,572,944	$ 929,609	1.78 %	$ 209,540,976	$ 2,092,017	3.97 %	$ 204,529,638	$ 2,268,166	4.41 %	$ 226,698,645	$ 2,476,138	4.39 %
Money Market	$396,798,385	$3,620,383	3.65 %	$259,289,920	1,924,822	3.01 %	257,016,702	2,412,389	3.73 %	259,041,124	2,686,977	4.13 %	230,692,880	2,480,219	4.32 %
Savings	$6,727,490	$1,503	0.09 %	$4,398,923	1,178	0.11 %	3,151,116	1,185	0.15 %	3,098,470	1,188	0.15 %	2,544,712	993	0.16 %
Time Deposits	$272,467,884	$2,673,600	3.93 %	$294,336,342	4,090,584	5.64 %	291,606,111	3,122,791	4.26 %	286,346,982	3,012,594	4.19 %	287,465,021	2,908,583	4.07 %
Interest Bearing Deposits	801,168,767	$7,275,073	3.63 %	$769,598,129	6,946,193	3.66 %	761,314,905	7,628,382	3.99 %	753,016,214	7,968,925	4.21 %	747,401,258	7,865,933	4.23 %

Borrowings	$63,255,808	$724,216	4.59 %	$78,341,429	$ 913,154	4.73 %	$ 98,205,747	$ 1,183,419	4.79 %	$ 118,452,626	$ 1,613,452	5.42 %	$ 108,848,304	$ 1,142,481	4.22 %

Interest Bearing Liabilities	864,424,575	$7,999,289	3.71 %	$847,939,558	7,859,347	3.76 %	859,520,652	8,811,801	4.08 %	871,468,840	9,582,377	4.37 %	856,249,562	9,008,414	4.23 %

Non Interest Bearing Deposits	$ 140,837,354			$139,885,803			$ 153,895,858			$ 143,171,313			$ 146,541,629

Cost of Funds			3.19 %			3.23 %			3.46 %			3.76 %			3.61 %

Net Interest Margin		$ 6,876,162	2.66 %		$ 7,719,911	3.03 %		$ 6,466,709	2.44 %		$ 6,141,249	2.32 %		$ 6,231,002	2.41 %

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

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024

	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield
Assets
Cash	$65,570,216	$750,610	4.59 %	$26,916,165	$375,815	5.62 %	$47,777,734	$1,013,118	4.28 %	$27,786,013	$704,072	5.10 %

Investments (Tax Exempt)	$19,843,159	$156,555		$20,889,466	$204,795		$20,027,655	$323,442		$21,093,669	$409,420
Investments (Taxable)	$204,066,557	$2,294,359		$222,105,603	$2,765,518		$208,324,597	$4,750,529		$220,619,839	$5,475,343
Total Investments	223,909,716	2,450,914	4.39 %	242,995,069	2,970,313	4.92 %	$228,352,252	5,073,971	4.47 %	241,713,508	5,884,763	4.90 %

Total Loans	$755,231,852	$11,673,927	6.20 %	$768,712,204	$11,893,288	6.22 %	$759,665,068	$24,377,509	6.47 %	$770,942,060	$24,176,527	6.31 %

Earning Assets	1,044,711,785	$14,875,451	5.73 %	1,038,623,438	15,239,416	5.90 %	1,035,795,053	30,464,596	5.95 %	1,040,441,581	30,765,362	5.95 %

Assets				1,096,367,899			$1,092,025,722			1,094,738,954
	$1,100,110,176
Liabilities
Interest Checking	$125,175,008	$979,587	3.13 %	$226,698,645	$2,476,138	4.39 %	$123,980,287	$1,909,186	3.08 %	$228,109,523	$4,991,453	4.40 %
Money Market	$396,798,385	$3,620,383	3.65 %	$230,692,880	$2,480,219	4.32 %	$372,579,031	$6,779,987	3.64 %	$252,390,594	$5,410,303	4.31 %
Savings	$6,727,490	$1,503	0.09 %	$2,544,712	$993	0.16 %	$5,569,639	$2,658	0.10 %	$2,980,478	$2,123	0.14 %
Time Deposits	$272,467,884	$2,673,600	3.93 %	$287,465,021	$2,908,583	4.07 %	$283,341,703	$5,529,389	3.90 %	$274,715,231	$5,485,945	4.02 %
Interest Bearing Deposits	801,168,767	$7,275,073	3.63 %	747,401,258	7,865,933	4.23 %	785,470,660	14,221,219	3.62 %	758,195,826	15,889,824	4.21 %

Borrowings	$63,255,808	$724,216	4.59 %	$108,848,304	$1,142,481	4.22 %	$70,756,945	$1,637,370	4.67 %	$96,434,660	$2,054,407	4.28 %

Interest Bearing Liabilities	864,424,575	$7,999,289	3.71 %	856,249,562	9,008,414	4.23 %	856,227,605	15,858,589	3.70 %	854,630,486	17,944,231	4.22 %

Non Interest Bearing Deposits	$ 140,837,354			$ 146,541,629			$ 167,639,041			$ 146,294,904

Cost of Funds			3.19 %			3.61 %			3.21 %			3.61 %

Net Interest Margin		$ 6,876,162	2.66 %		$ 6,231,002	2.41 %		$ 14,606,007	2.86 %		$ 12,821,131	2.48 %

Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024
Loans held-for-investment to Deposits	80.83 %	82.65 %	84.43 %	87.42 %	88.20 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA)	0.29 %	0.76 %	0.41 %	0.12 %	0.75 %
Return on Average Equity (ROAE)	3.97 %	9.95 %	5.58 %	1.70 %	10.71 %
Efficiency Ratio	77.57 %	69.22 %	84.07 %	88.13 %	81.72 %
Net Interest Margin	2.66 %	3.03 %	2.44 %	2.32 %	2.41 %
Yield on Average Earning Assets	5.73 %	6.11 %	5.76 %	5.93 %	5.90 %
Yield on Securities	4.39 %	4.55 %	4.69 %	4.85 %	4.92 %
Yield on Loans	6.20 %	6.74 %	6.15 %	6.30 %	6.22 %
Cost of Funds	3.19 %	3.23 %	3.46 %	3.76 %	3.61 %
Noninterest income to Total Revenue	16.02 %	11.25 %	16.51 %	15.90 %	16.44 %
Liquidity Ratios
Uninsured Deposits to Total Deposits	22.51 %	22.50 %	21.55 %	22.51 %	22.76 %
Total Liquidity to Uninsured Deposits	167.83 %	122.33 %	162.14 %	150.84 %	150.53 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	252.65 %	292.23 %	264.35 %	264.41 %	317.68 %
Tangible Common Equity Ratio	7.85 %	7.68 %	7.47 %	7.54 %	7.24 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)	7.64 %	7.50 %	7.27 %	7.38 %	7.01 %

Available -for-Sale securities (as % of total securities)	90.87 %	91.12 %	91.16 %	91.47 %	91.33 %
Per Share Data
Tangible Book Value	$12.01	$11.87	$11.39	$11.64	$11.11
Tangible Book Value (ex AOCI)	$14.39	$14.26	$13.94	$13.78	$13.70
Share Price Data
Closing Price	$11.26	$9.90	$10.32	$11.50	$9.75
Book Value Multiple	94 %	83 %	91 %	99 %	88 %
Common Stock Data
Outstanding Shares at End of Period	7,002,103	7,002,103	7,150,055	7,133,105	7,137,030
Weighted Average shares outstanding, basic	7,137,779	7,283,696	7,268,087	7,263,880	7,267,044
Weighted Average shares outstanding, diluted	7,140,491	7,285,900	7,324,559	7,299,553	7,305,392
Capital Ratios (Bank Only)
Tier 1 Leverage ratio	10.66 %	10.76 %	10.39 %	10.23 %	10.28 %
Common Equity Tier 1 ratio	14.30 %	14.14 %	13.57 %	13.21 %	13.05 %
Tier 1 Risk Based Capital ratio	14.30 %	14.14 %	13.57 %	13.21 %	13.05 %
Total Risk Based Capital ratio	15.20 %	14.95 %	14.35 %	14.22 %	14.01 %
Credit Quality
Net Charge-offs to Average Loans	0.01 %	0.03 %	0.26 %	0.01 %	0.01 %
Total Non-performing Loans to loans held-for-investment	1.45 %	1.45 %	1.78 %	1.52 %	1.49 %
Total Non-performing Assets to Total Assets	0.98 %	1.01 %	1.25 %	1.07 %	1.06 %
Nonaccrual Loans to loans held-for-investment	1.45 %	1.45 %	1.78 %	1.52 %	1.49 %
Provision for Loan Losses	$688,865	$284,683	$14,922	$546,439	($1,167,997)
Allowance for Loan Losses to net loans held-for-investment	0.96 %	0.88 %	0.85 %	1.12 %	1.06 %
Allowance for Loan Losses to net loans held-for-investment (ex PPP loans)	0.96 %	0.88 %	0.85 %	1.12 %	1.06 %

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

¹ Pre-tax, Pre-Provision Income (Non-GAAP)			Quarter Ending
	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024
Net Income	$ 799,896	$ 2,019,348	$ 1,127,060	$ 344,919	$ 2,044,233
+ Provision Expense	688,865	284,683	14,922	546,439	(1,167,997)
+ Provision Expense
+ Income Tax Expense	347,943	373,138	83,793	(30,663)	477,293

Pre-tax,Pre-Provision Income (non-GAAP)	$ 1,836,704	$ 2,677,169	$ 1,225,775	$ 860,696	$ 1,353,529

² Tangible Book Value (ex-AOCI) (non-GAAP)			Quarter Ending
	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024
Shareholder's Equity	$ 84,123,510	$ 83,134,747	$ 81,439,406	$ 83,026,214	$ 79,303,635
Outstanding Shares at End of Period	7,002,103	7,002,103	7,150,055	7,133,105	7,137,030
Tangible Book Value (GAAP)	$ 12.01	$ 11.87	$ 11.39	$ 11.64	$ 11.11
Accumulated Other Comprehensive Income (Net) (AOCI)	$ (16,657,368)	$ (16,748,443)	$ (18,240,683)	$ (15,296,856)	$ (18,466,282)
AOCI per share equivalent	(2.38)	(2.39)	(2.55)	(2.14)	(2.59)
Tangible Book Value (ex-AOCI) (non-GAAP)	$ 14.39	$ 14.26	$ 13.94	$ 13.78	$ 13.70

			Quarter Ending			Year Ending
Income on Tax Exempt Securities	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	June 30, 2025	June 30, 2024
Tax Equivalent Adjustment	$ 123,678	$ 124,101	$ 159,233	$ 160,419	$ 161,788	$ 255,519	$ 323,442
Income on Tax Exempt Securities (Non-GAAP)	32,877	32,988	42,328	42,643	43,007	67,923	85,978
	$ 156,555	$ 157,089	$ 201,561	$ 203,062	$ 204,795	$323,442	$409,420

³ Net Interest Margin
Average Earning Assets	$ 1,044,711,785	$ 1,033,892,386	$ 1,055,970,602	$ 1,054,061,947	$ 1,038,623,438	$ 1,035,795,053	$ 1,040,441,581
Yield on Interest Earning Assets (GAAP)	5.71 %	6.10 %	5.80 %	5.98 %	5.88 %	5.90 %	5.95 %
Yield on Interest-Earning Assets (FTE) (Non-GAAP)	5.73 %	6.11 %	5.76 %	5.93 %	5.90 %	5.95 %	5.95 %
Net Interest Margin (NIM) (GAAP)	2.63 %	3.02 %	2.45 %	2.33 %	2.40 %	2.82 %	2.33 %
Net Interest Margin (NIM) (FTE) (Non-GAAP)	2.66 %	3.03 %	2.44 %	2.32 %	2.41 %	2.86 %	2.48 %

³ Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets

⁴ Efficiency Ratio (Non-GAAP)			Quarter Ending			Year Ending
	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	June 30, 2025	June 30, 2024
Net Interest Income	$ 6,876,162	$ 7,719,910	$ 6,424,381	$ 6,098,606	$ 6,187,994	$ 14,596,162	$ 12,735,154
Non-Interest Income	1,312,094	978,170	1,270,301	1,153,380	1,217,268	2,290,265	2,391,603
Total Revenue	$ 8,188,256	$ 8,698,079	$ 7,694,682	$ 7,251,986	$ 7,405,262	$ 16,886,427	$ 15,126,757
Non-Interest Expense	6,351,552	6,020,911	6,468,907	6,391,291	6,051,736	12,372,557	12,278,062
Efficiency Ratio (Non-GAAP)	77.57 %	69.22 %	84.07 %	88.13 %	81.72 %	73.27 %	81.17 %

⁵ Liquidity Ratios (Non-GAAP)			Quarter Ending
	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024
Available-for-Sale Securities (as % of total securities)	90.87 %	91.12 %	91.16 %	91.47 %	91.33 %
Uninsured Deposits to Total Deposits	22.51 %	22.50 %	21.55 %	22.51 %	22.76 %
Total Liquidity to Uninsured Deposits (Non-GAAP)	167.83 %	122.33 %	162.14 %	150.84 %	150.53 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	252.65 %	292.23 %	264.35 %	264.41 %	317.68 %
Tangible Common Equity Ratio (Non-GAAP)	7.85 %	7.68 %	7.47 %	7.54 %	7.24 %
Tangible Common Equity Ratio(adjusted for unrealized losses	7.64 %	7.50 %	7.27 %	7.38 %	7.01 %
on HTM Securities) (Non-GAAP)

⁵ Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve and the Federal Home Loan Bank.

⁶ Total Revenue (Non-GAAP)			Quarter Ending			Year-to-Date
	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	June 30, 2025	June 30, 2024
Net Interest Income	$ 6,876,162	$ 7,719,910	$ 6,424,381	$ 6,098,606	$ 6,187,994	$ 14,596,162	$ 12,735,154
Non-Interest Income	1,312,094	978,170	1,270,301	1,153,380	1,217,268	2,290,265	2,391,603
Total Revenue (non-GAAP)	$ 8,188,256	$ 8,698,080	$ 7,694,682	$ 7,251,986	$ 7,405,262	$ 16,886,427	$ 15,126,757