Freedom Financial Holdings Announces Earnings for Fourth Quarter and Full Year 2024

PR Newswire

Fri, Jan 31, 2025, 6:30 AM 24 min read

FAIRFAX, Va., Jan. 31, 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 $1,156,906, or $0.16 per diluted share for the three months ended December 31, 2024. This compares to net income of $344,919 or $0.05 per diluted share, for the linked quarter and a net loss of $2,006,392 or -$0.27 per diluted share for the three months ended December 31, 2023. Net income for the full year 2024, was $4,710,284 or $0.64 per diluted share, compared to $2,318,660 or $0.32 per diluted share for the full year 2023.

Freedom Financial Logo (PRNewsfoto/Freedom Financial Holdings)

Joseph J. Thomas, President, and CEO, commented, "In 2024 our team was focused on digesting growth from new client acquisitions, investing in talent and technology in the changing economic environment, and enhancing internal controls as a part of crossing $1.0 billion in total assets. Despite the lower net interest margin and higher overhead expenses, full year net income was up 103.2% over 2023. We experienced favorable operating trends in the fourth quarter with net income higher by 235.41% over the prior quarter to $1.16 million due to an expansion of net interest margin by 12 basis points, non-interest income increasing 10.14% on higher mortgage and SBIC income, and only a modest increase of 1.2% in non-interest expenses. Excluding AOCI adjustments, the tangible book value¹ of the Company's common stock on December 31, 2024, was $13.94 per share compared to $13.25 per share on December 31, 2023, and the company continues to have an open share buyback program with 213,000 shares remaining to be purchased at year-end."

Fourth Quarter and Full Year 2024 Highlights include:

The Company posted net income of $1,156,906 or $0.16 per diluted share in the fourth quarter compared to net income of $344,919 or $0.05 per diluted share in the linked quarter and a net loss of $2,006,392 or -$0.27 per diluted share for the three months ending December 31, 2023.
Net income for the full year 2024 was $4,710,284 or $0.64 per diluted share compared to net income of $2,318,660 or $0.32 per diluted share for the full year 2023.
Return on Average Assets ("ROAA") was 0.41% for the quarter ended December 31, 2024, compared to 0.12% for the linked quarter and -0.73% for the three months ended December 31, 2023. ROAA for the full year 2024 was 0.43% compared to 0.22% for the full year 2023.
Return on Average Equity ("ROAE") was 5.58% for the three months ended December 31, 2024, compared to 1.70% for the linked quarter and -10.51% for the three months ended December 31, 2023. ROAE for the full year 2024 was 5.93% compared to 3.01% for the full year 2023.
Total Assets were $1.09 billion on December 31, 2024, an increase of $5.82 million or 0.54% from total assets on December 31, 2023.
Loans held-for-investment (excluding PPP loans) decreased by $8.16 million or 1.05% during the quarter and decreased by $1.75 million or 0.23% for the full year 2024.
Total deposits increased by $21.74 million or by 2.45% in the fourth quarter and decreased by $11.53 million or 1.25% for the full year 2024. Non-interest-bearing demand deposits decreased by $10.39 million from the linked quarter to $133.67 million and were lower by $10.29 million for the full year 2024 and represented 14.70% of total deposits on December 31, 2024.
Tangible book value per share decreased by 0.21% during the fourth quarter and increased by 5.66% in 2024. The tangible common equity ratio was 7.47% at the end of the quarter.
The net interest margin² increased in the fourth quarter to 2.44%, higher by 12 basis points compared to the linked quarter and lower by 18 basis points compared to the same period in 2023. The increase in the net interest margin across linked quarters was primarily due to a decline in funding costs that outpaced the decrease in yields on earning assets.
The cost of funds was 3.46% for the fourth quarter, lower by 30 basis points compared to the linked quarter and lower by 4 basis points compared to the same period in 2023, as deposit costs decreased for interest bearing demand deposits and borrowings, driven by the Federal Reserve's reductions to the Federal Funds rate.
Non-interest income increased by 10.14% compared to the linked quarter and increased by 23.88% compared to the same period in 2023. Non-interest income in the full year 2024 was higher by 23.62% compared to the prior year. The increase in non-interest income in the fourth quarter of 2024 compared to the linked quarter was primarily due to higher operating income related to SBIC investments, while the increase in non-interest income relative to the calendar quarter was due to higher gain-on-sale revenue from mortgage loans in the current quarter. The increase in non-interest income in 2024 was primarily due to higher gain-on-sale revenue from mortgage and SBA loans as well as higher operating income from SBIC investments.
Non-interest expense in the fourth quarter increased by 1.21% compared to the linked quarter and increased by 12.25% compared to the same period in 2023. The increase in non-interest expense for linked and calendar quarters, was primarily due to a combination of higher expenses related to compensation and data processing.
The Efficiency Ratio³was 84.07% for the quarter ended December 31, 2024, compared to 88.13% for the linked quarter and 73.93% for the same period in 2023. The Efficiency Ratio for the full year 2024 was 83.59% compared to 74.56% for the full year 2023.
Uninsured deposits declined and were 21.55% of total deposits on December 31, 2024, compared to 25.65% on December 31, 2023.
Total available secured liquidity⁴ increased and was 162.14% of uninsured deposits on December 31, 2024, compared to 130.30% on December 31, 2023.
The Company charged off $2.04 million of loans in the fourth quarter and charge offs to average loans increased to 0.26% compared to 0.01% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 1.78% on December 31, 2024, compared to 1.72% on December 31, 2023. Seven of the loans that were on non-accrual include guaranteed portions of SBA loans, carrying the full faith and credit of the United States. Non-accrual loans with SBA guarantees totaled $4,008,365. Total SBA loans on nonaccrual were $5,101,906. The ratio of non-performing assets to total assets was 1.25% on December 31, 2024, compared to 1.22% on December 31, 2023.
Following an assessment of the collectability of loans held-for-investment and investment securities, the Company had a negative provision for credit losses of $14,922 in the fourth quarter, which reduced the allowance for credit losses.
The ratio of the allowance for credit losses to loans held-for-investment was 0.85% compared to 1.12% in the linked quarter.
The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.39%, Common Equity Tier 1 ratio of 13.57%, Tier 1 Risk Based Capital ratio of 13.55% and a Total Capital ratio of 14.35%.

Subsequent Event
In the first days of January, the bank finalized the resolution of a Classified relationship amounting to $2,483,155 in combined exposure that included $1,736,192 of nonaccrual principal. The resolution of this 18-month workout resulted in the payment of nonaccrual interest of $233,825 and the recognition of an additional $388,955 in late charges, forbearance fees, and previously expensed legal fees. The bank will recognize this total income of $629,056 in the first quarter and not incur any loss of principal, interest, or third-party expense in the resolution of this relationship.

Net Interest Income
The Company recorded net interest income of $6.42 million for the fourth quarter of 2024, higher by 5.34% compared to the linked quarter, and lower by 5.10% compared to the same period in 2023. The net interest margin in the fourth quarter of 2024 was 2.44%, higher by 12 basis points compared to the linked quarter and lower by 18 basis points compared to the same period in 2023. The net interest margin for the full year 2024 was 2.43%, lower by 34 basis points compared to 2023.

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

Yields on average earning assets decreased to 5.76% compared to 5.93% in the linked quarter and 5.99% in the calendar quarter. Lower yields on investment securities and loans, driven by the Federal Reserve's actions in 2024 to reduce the target Federal Funds rate drove the decrease in yields on earning assets.
Loan yields decreased by 15 basis points to 6.15% from 6.30% in the linked quarter, while yields on investment securities decreased by 16 basis points to 4.69% from 4.85% in the linked quarter. Loan yields decreased by 14 basis points, while yields on investment securities decreased by 41 basis points compared to the calendar quarter.
Cost of funds decreased by 30 basis points to 3.46% from 3.76% in the linked quarter and decreased by 4 basis points compared to the calendar quarter, primarily due to lower rates on interest checking and money market accounts and a reduction in borrowings during the current quarter. The decrease in deposit expense was partially offset by interest income from balance sheet hedges, in the form of interest rate swaps, whereby the bank pays a fixed rate and receives the Federal Funds effective rate for the duration of the swaps. The notional amount of the interest rate swaps was $100 million with a weighted average remaining term of 2.20 years, as of December 31, 2024.

The following factors contributed to the changes in net interest margin during the full year 2024 compared to the prior year:

Yields on average earning assets increased by 17 basis points to 5.90% compared to 5.73% in the prior year, driven by higher yields on loans, investments, and interest earning cash balances.
Loan yields increased by 20 basis points to 6.27% from 6.07% in the prior year, while yields on investment securities increased by 8 basis points to 4.83% from 4.75% in the prior year.
Cost of funds increased by 52 basis points to 3.61%, from 3.09% in the prior year, on higher deposit and borrowing costs.

Non-interest Income
Non-interest income was $1.27 million for the fourth quarter, an increase of 10.14% when compared to the linked quarter and an increase of 23.88% when compared to the same period in 2023. Non-interest income in 2024 was higher by 23.62% compared to the prior year. The increase in non-interest income in the fourth quarter of 2024 compared to the linked quarter was primarily due to higher operating income related to SBIC investments, while the increase in non-interest income relative to the calendar quarter was due to higher gain-on-sale revenue from mortgage loans in the current quarter. The increase in non-interest income in 2024 was primarily due to higher gain-on-sale revenue from mortgage and SBA loans as well as higher operating income from SBIC investments.

Total Revenue⁵Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 6.10% compared to the linked quarter and lower by 1.28% compared to the calendar quarter in 2023. The increase in revenue compared to the linked quarter was primarily due to an increase in the net interest margin and higher non-interest income during the fourth quarter. The lower revenue compared to the calendar quarter was due to lower net interest income, resulting from net interest margin compression compared to the calendar quarter.

Total revenue for the full year 2024 was lower by 3.26% compared to 2023, primarily due to net interest margin compression related to higher funding costs in 2024.

Non-interest Expense
Non-interest expense in the fourth quarter increased by 1.21% compared to the linked quarter and increased by 12.25% compared to the same period in 2023. The increase in non-interest expense for linked and calendar quarters, was primarily due to a combination of higher expenses related to compensation and data processing. Non-interest expense for the full year 2024 were higher by 8.46% compared to the prior year, primarily due to higher occupancy costs and professional fees.

The Efficiency Ratio was 84.07% for the quarter ended December 31, 2024, compared to 88.13% for the linked quarter and 73.93% for the same period in 2023. The Efficiency Ratio for the full year 2024 was 83.59% compared to 74.56% for the full year 2023.

Asset Quality
Non-accrual loans in the fourth quarter were $13,672,696 or 1.78% of loans held-for-investment compared to $11,797,958 or 1.52% of loans held-for-investment at the end of the linked quarter. As of December 31, 2024, there were no loans that were 90 days or more past due and accruing. Seven of the loans that were on non-accrual include guaranteed portions of SBA loans, carrying the full faith and credit of the United States. Non-accrual loans with SBA guarantees totaled $4,008,365. Total SBA loans on nonaccrual were $5,101,906. There was no Other Real Estate Owned ("OREO") on the balance sheet as of December 31, 2024. 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 $13,672,696 or 1.25% of total assets as of December 31, 2024, compared to $11,797,958 or 1.07% of total assets, at the end of the linked quarter.

The Company charged off $2.04 million of loans in the fourth quarter and charge offs to average loans increased to 0.26% compared to 0.01% in the prior quarter. Following an assessment of the collectability of loans held-for-investment and investment securities, the Company had a negative provision for credit losses of $14,922 in the fourth quarter, which reduced the allowance for credit losses.

The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 0.85% as of December 31 2024, compared to the ratio of Allowance for Credit Losses to loans held-for-investment of 1.37% as of December 31, 2023.

Total Assets
Total assets as of December 31, 2024, were $1.09 billion compared to $1.10 billion on September 30, 2024, and total assets of $1.08 million on December 31, 2023. Changes in major asset categories since December 31, 2023, were as follows:

Interest bearing deposits at banks increased by $1.20 million.
Available for sale investment balances decreased by $1.58 million.
Other loans held-for investment decreased by $8.16 million

Total Liabilities
Total liabilities as of December 31, 2024, were $1,009.05 million compared to total liabilities of $1,017.57 million on September 30, 2024, and $1,007.44 million on December 31, 2023. Total deposits were $909.53 million on December 31, 2024, compared to $887.79 million on September 30, 2024, and total deposits of $921.06 million as of December 31, 2023. Non-interest-bearing demand deposits decreased by $10.39 million during the fourth quarter and comprised 14.70% of total deposits at the end of the fourth quarter. Other interest-bearing demand deposits increased by $22.02 million, savings deposits were relatively unchanged and time deposits increased by $9.45 million during the quarter. Federal Home Loan Bank borrowings were unchanged during the quarter, while the Company paid off all borrowings from the Federal Reserve Bank of Richmond related to the Bank Term Funding program during the quarter.

Stockholders' Equity and Capital
Stockholders' equity as of December 31, 2024, was $81.44 million compared to $83.03 million on September 30, 2024, and stockholders' equity of $77.23 million on December 31, 2023. AOCI decreased during the fourth quarter as there was an increase in unrealized losses on available-for-sale securities. The tangible book value of the Company's common stock on December 31, 2024, was $11.39 per share compared to $11.64 on September 30, 2024, and tangible book value per share of $10.78 on December 31, 2023. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on December 31, 2024, was $13.94 per share compared to $13.78 on September 30, 2024, and $13.25 per share on December 31, 2023.

As of December 31, 2024, 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 December 31, 2024 and December 31, 2023, were as follows:

	December 31, 2024	December 31, 2023

Total Capital Ratio	14.35 %	13.82 %

Tier 1 Capital Ratio	13.57 %	12,65 %

Common Equity Tier 1 Capital Ratio	13.57 %	12.65 %

Leverage Ratio	10.39 %	10.26 %

About Freedom Financial Holdings, Inc.

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

Forward Looking Statements

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of COVID-19 and the impact of geopolitical conflicts, such as the war between Russia and Ukraine; adverse developments in the financial services industry such as the recent bank failures; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for loan and lease losses; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Company may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.


FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED BALANCE SHEETS

	(Unaudited)	(Unaudited)	(Audited)
	December 31,	September 30,	December 31,
	2024	2024	2023
ASSETS
Cash and Due from Banks	$ 5,685,008	$ 5,083,860	$ 2,442,050
Interest Bearing Deposits with Banks	23,004,874	20,415,164	21,806,078
Securities Available-for-Sale	209,687,859	218,409,166	211,263,518
Securities Held-to-Maturity	20,315,651	20,355,393	20,114,269
Restricted Stock Investments	6,249,000	6,249,000	4,769,900
Loans Held for Sale	5,963,969	5,322,703	6,663,929
PPP Loans Held for Investment	159,825	184,896	259,794
Other Loans Held for Investment	767,737,719	775,892,983	769,484,088
Allowance for Credit Losses	(6,534,757)	(8,683,189)	(10,519,335)
Net Loans	761,362,787	767,394,689	759,224,547
Bank Premises and Equipment, net	767,773	794,326	878,957
Accrued Interest Receivable	4,155,077	4,369,935	3,721,730
Deferred Tax Asset	7,776,395	6,705,782	7,954,018
Bank-Owned Life Insurance	27,560,616	27,347,741	26,731,339
Right of Use Asset, net	1,874,403	2,022,926	1,987,075
Other Assets	16,083,800	16,125,726	17,110,642
Total Assets	$ 1,090,487,212	$ 1,100,596,411	$ 1,084,668,051
LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
Demand Deposits
Non-interest Bearing	$ 133,665,194	$ 144,054,842	$ 143,956,306
Interest Bearing	475,397,117	453,373,867	519,339,202
Savings Deposits	3,866,241	3,209,559	4,120,770
Time Deposits	296,603,143	287,152,155	253,641,860
Total Deposits	909,531,694	887,790,424	921,058,138
Federal Home Loan Bank Advances	65,000,000	65,000,000	35,000,000
Other Borrowings	159,825	30,184,896	15,270,576
Subordinated Debt (Net of Issuance Costs)	19,850,643	19,811,162	19,752,719
Accrued Interest Payable	2,445,742	2,880,604	2,842,646
Lease Liability	2,013,912	2,156,004	1,925,672
Other Liabilities	10,045,990	9,747,107	11,590,247
Total Liabilities	$ 1,009,047,807	$ 1,017,570,197	$ 1,007,439,998
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized:
0 Shares Issued and Outstanding, December 31, 2024, September 30, 2024 and December 31, 2023
Common Stock, $0.01 Par Value, 25,000,000 Shares:
23,000,000 Shares Voting and 2,000,000 Shares Non-voting.
Voting Common Stock:
7,150,105, 6,466,105 and 6,493,684 Shares Issued and Outstanding
at December 31, 2024, September 30, 2024 and December 31, 2023 respectively
(Includes 118,032, 128,982 and 88,993 Unvested Shares on December 31, 2024, September 30, 2024
and December 31, 2023 respectively)	71,501	64,661	64,937
Non-Voting Common Stock:
0, 673,000 and 673,000 Shares Issued and Outstanding at December 31, 2024, September 30, 2024
and December 31, 2023 respectively)	-	6,730	6,730
Additional Paid-in Capital	58,347,356	58,147,353	58,320,419
Accumulated Other Comprehensive Income, Net	(18,240,684)	(15,296,856)	(17,715,015)
Retained Earnings	41,261,232	40,104,326	36,550,983
Total Stockholders' Equity	81,439,405	83,026,214	77,228,054
Total Liabilities and Stockholders' Equity	$ 1,090,487,212	$ 1,100,596,411	$ 1,084,668,051

	FREEDOM FINANCIAL HOLDINGS
	CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the twelve	For the twelve
	months ended	months ended	months ended	months ended
	December 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Interest Income
Interest and Fees on Loans	$ 11,991,578	$ 12,076,710	$ 48,526,496	$ 44,430,088
Interest on Investment Securities	2,798,420	2,933,870	11,529,424	10,352,686
Interest on Deposits with Other Banks	446,184	502,411	1,540,629	1,738,669
Total Interest Income	15,236,182	15,512,991	61,596,549	56,521,443
Interest Expense
Interest on Deposits	7,628,382	8,108,762	31,487,131	27,605,539
Interest on Borrowings	1,183,419	634,972	4,851,277	1,724,125
Total Interest Expense	8,811,801	8,743,734	36,338,408	29,329,664

Net Interest Income	6,424,381	6,769,257	25,258,141	27,191,779
Provision for Credit Losses	(14,922)	4,751,441	(663,966)	5,737,441
Net Interest Income after
Provision for Credit Losses	6,439,303	2,017,816	25,922,107	21,454,338
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	769,060	467,874	2,700,247	2,086,881
SBA Gain-on-Sale Revenue	-	-	287,032	-
Service Charges and Other Income	252,275	326,206	846,548	674,783
Gain on Sale of Securities	-	-	1,816	-
Servicing Income	36,090	39,524	150,363	226,734
Swap Fee Income	-	-	-	-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	212,876	191,788	829,278	906,943
Total Non-interest Income	1,270,301	1,025,392	4,815,284	3,895,341

Total Revenue	7,694,682	7,794,649	30,073,425	31,087,120

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	3,905,728	3,293,628	14,859,514	14,322,882
Occupancy Expense	233,967	191,674	1,114,883	746,494
Equipment and Depreciation Expense	20,951	23,287	90,680	112,340
Insurance Expense	228,224	237,133	914,264	805,468
Professional Fees	451,065	524,328	2,078,782	1,565,129
Data and Item Processing	684,698	513,318	2,371,647	1,967,662
Advertising	90,368	116,107	539,856	473,676
Franchise Taxes and State Assessment Fees	316,976	313,043	1,232,744	1,190,263
Mortgage Fees and Settlements	119,037	36,328	421,507	320,197
Other Operating Expense	417,893	514,081	1,514,380	1,673,201
Total Non-interest Expenses	6,468,907	5,762,927	25,138,257	23,177,312
Income Before Income Taxes	1,240,697	(2,719,719)	5,599,134	2,172,367
Income Tax Expense/(Benefit)	83,793	(713,291)	888,848	(146,293)
Net Income	$ 1,156,906	$ (2,006,428)	$ 4,710,286	$ 2,318,660
Earnings per Common Share - Basic	$ 0.16	$ (0.27)	$ 0.65	$ 0.32
Earnings per Common Share - Diluted	$ 0.16	$ (0.27)	$ 0.64	$ 0.32
Weighted-Average Common Shares
Outstanding - Basic	7,268,087	7,335,949	7,270,960	7,292,638
Weighted-Average Common Shares
Outstanding - Diluted	7,324,559	7,361,422	7,327,432	7,320,455


Efficiency Ratio	84.07 %	73.93 %	83.59 %	74.56 %

		FREEDOM FINANCIAL HOLDINGS
		CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the three	For the three	For the three
	months ended	months ended	months ended	months ended	months ended
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Interest Income
Interest and Fees on Loans	$ 11,991,578	$ 12,358,391	$ 11,893,288	$ 12,283,239	$ 12,076,745
Interest on Investment Securities	2,798,420	2,932,219	2,927,306	2,871,479	2,933,870
Interest on Deposits with Other Banks	446,184	390,373	375,815	328,257	502,411
Total Interest Income	15,236,182	15,680,983	15,196,409	15,482,975	15,513,026

Interest Expense
Interest on Deposits	7,628,382	7,968,925	7,865,934	8,023,891	8,108,762
Interest on Borrowings	1,183,419	1,613,452	1,142,481	911,926	634,972
Total Interest Expense	8,811,801	9,582,377...	9,008,415	8,935,817	8,743,734

Net Interest Income	6,424,381	6,098,606	6,187,994	6,547,158	6,769,292
Provision for Credit Losses	(14,922)	546,439	(1,167,997)	(27,486)	4,751,441
Net Interest Income after
Provision/Recovery for Credit Losses	6,439,303	5,552,167	7,355,991	6,574,644	2,017,851
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	769,060	649,097	745,366	536,724	467,874
SBA Gain-on-Sale Revenue	-	-	-	287,032	-
Service Charges and Other Income	252,275	255,889	221,022	117,361	326,205
Gains on Sale of Securities	-	-	1,816	-
Servicing Income	36,090	36,752	42,268	35,253	39,525
Swap Fee Income	-	-	-	-	-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	212,876	211,642	206,796	197,963	191,788
Total Non-interest Income	1,270,301	1,153,380	1,217,268	1,174,333	1,025,392


Total Revenue⁵	$ 7,694,682	$ 7,251,986	$ 7,405,262	$ 7,721,491	$ 7,794,684

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	3,905,728	3,674,499	3,544,148	3,735,139	3,293,628
Occupancy Expense	233,967	233,807	255,233	391,876	191,674
Equipment and Depreciation Expense	20,951	285,083	185,959	195,345	212,999
Insurance Expense	228,224	232,774	229,259	224,007	237,133
Professional Fees	451,065	532,379	568,765	526,574	524,328
Data and Item Processing	684,698	433,431	395,579	261,282	323,605
Advertising	90,368	172,136	162,354	114,999	116,107
Franchise Taxes and State Assessment Fees	316,976	329,056	276,843	309,869	313,043
Mortgage Fees and Settlements	119,037	123,853	83,617	95,001	36,328
Other Operating Expense	417,893	374,273	349,979	372,234	514,081

Total Non-interest Expenses	6,468,906	6,391,291	6,051,736	6,226,326	5,762,926
Income before Income Taxes	1,240,697	314,256	2,521,526	1,522,651	(2,719,683)

Income Tax Expense	83,793	(30,663)	477,293	358,425	(713,291)

Net Income	$ 1,156,906	$ 344,919	2,044,233	$ 1,164,226	$ (2,006,392)
Earnings per Common Share - Basic	$ 0.16	$ 0.05	$ 0.28	$ 0.16	$ (0.27)
Earnings per Common Share - Diluted	$ 0.16	$ 0.05	$ 0.28	$ 0.16	$ (0.27)
Weighted-Average Common Shares
Outstanding - Basic	7,268,087	7,263,880	7,267,044	7,285,108	7,335,949
Weighted-Average Common Shares
Outstanding - Diluted	7,324,559	7,299,553	7,305,392	7,325,415	7,361,422

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

	Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	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	$ 39,134,308	$ 446,184	4.54 %	$ 29,674,932	$ 390,373	5.23 %	$ 26,916,165	$ 375,815	5.62 %	$ 28,655,861	$ 328,257	4.61 %	$ 36,921,568	$ 502,411	5.40 %

Investments (Tax Exempt)	20,664,409	201,561		20,716,896	203,062		20,889,466	204,795		21,297,872	204,625		20,012,255	195,353
Investments (Taxable)	220,415,008	2,639,187		223,526,525	2,771,800		222,105,603	2,765,518		219,134,075	2,709,825		211,208,265	2,779,541
Total Investments	241,079,417	2,840,748	4.69 %	244,243,421	2,974,862	4.85 %	242,995,069	2,970,313	4.92 %	240,431,947	2,914,450	4.88 %	231,220,520	2,974,894	5.10 %

Total Loans	775,756,877	11,991,578	6.15 %	780,143,594	12,358,391	6.30 %	768,712,204	11,893,288	6.22 %	773,171,917	12,283,239	6.39 %	761,583,960	$12,076,745	6.29 %

Earning Assets	1,055,970,602	15,278,510	5.76 %	1,054,061,947	15,723,626	5.93 %	1,038,623,438	15,239,416	5.90 %	1,042,259,725	15,525,946	5.99 %	1,029,726,048	15,554,050	5.99 %



Assets	$ 1,110,466,582			$ 1,111,788,038			$ 1,096,367,899			$ 1,093,119,403			$ 1,084,945,735

Liabilities
Interest Checking	$ 209,540,976	$ 2,092,017	3.97 %	$ 204,529,638	$ 2,268,166	4.41 %	$ 226,698,645	$ 2,476,138	4.39 %	$ 229,520,401	$ 2,515,315	4.41 %	$ 221,430,570	$ 2,364,166	4.24 %
Money Market	257,016,702	2,412,389	3.73 %	259,041,124	2,686,977	4.13 %	230,692,880	2,480,219	4.32 %	274,088,309	2,930,085	4.30 %	288,937,873	2,738,774	3.76 %
Savings	3,151,116	1,185	0.15 %	3,098,470	1,188	0.15 %	2,544,712	993	0.16 %	3,416,245	1,129	0.13 %	4,155,974	1,238	0.12 %
Time Deposits	291,606,111	3,122,791	4.26 %	286,346,982	3,012,594	4.19 %	287,465,021	2,908,583	4.07 %	261,965,440	2,577,362	3.96 %	258,903,945	3,004,586	4.60 %
Interest Bearing Deposits	761,314,905	7,628,382	3.99 %	753,016,214	7,968,925	4.21 %	747,401,258	7,865,933	4.23 %	768,990,395	8,023,891	4.20 %	773,428,362	8,108,764	4.16 %

Borrowings	$ 98,205,747	$ 1,183,419	4.79 %	$ 118,452,626	$ 1,613,452	5.42 %	$ 108,848,304	$ 1,142,481	4.22 %	$ 84,021,016	$ 911,926	4.37 %	$ 56,817,293	$ 634,972	4.43 %

Interest Bearing Liabilities	859,520,652	8,811,801	4.08 %	871,468,840	9,582,377	4.37 %	856,249,562	9,008,414	4.23 %	853,011,411	8,935,817	4.21 %	830,245,655	8,743,736	4.18 %

Non Interest Bearing Deposits	$ 153,895,858			$ 143,171,313			$ 146,541,629			$ 146,048,180			$ 161,836,675

Cost of Funds			3.46 %			3.76 %			3.61 %			3.60 %			3.50 %

Net Interest Margin		$ 6,466,709	2.44 %		$ 6,141,249	2.32 %		$ 6,231,002	2.41 %		$ 6,590,129	2.54 %		$ 6,810,314	2.62 %
Shareholders Equity	$ 82,536,219			$ 80,948,259			$ 76,737,805			$ 77,333,773			$ 75,770,938

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

	Three Months Ended			Three Months Ended			Twelve Months Ended			Twelve Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023

	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income /Expense	Yield	Average Balance	Income /Expense	Yield

Assets
Cash	$ 39,134,308	$ 446,184	4.54 %	$ 36,921,568	$ 502,411	5.40 %	$ 31,113,400	$ 1,540,629	4.95 %	$ 35,860,736	$ 1,738,669	4.85 %

Investments (Tax Exempt)	20,664,409	201,561		20,012,255	195,353		20,891,060	814,043		20,786,785	763,153
Investments (Taxable)	220,415,008	2,639,187		211,208,265	2,779,541		221,298,993	10,886,330		200,339,079	9,749,795
Total Investments	241,079,417	2,840,748	4.69 %	231,220,520	2,974,894	5.10 %	242,190,053	11,700,373	4.83 %	221,125,864	10,512,948	4.75 %

Total Loans	775,756,877	11,991,578	6.15 %	761,583,960	$12,076,745	6.29 %	774,465,296	48,526,496	6.27 %	732,216,161	44,430,123	6.07 %

Earning Assets	1,055,970,602	15,278,510	5.76 %	1,029,726,048	15,554,050	5.99 %	1,047,768,749	61,767,498	5.90 %	989,202,761	56,681,740	5.73 %

Assets	$ 1,110,466,582			$ 1,084,945,735			$ 1,102,980,245			$ 1,043,519,071

Liabilities
Interest Checking	$ 209,540,976	$ 2,092,017	3.97 %	$ 221,430,570	$ 2,364,166	4.24 %	$ 217,514,835	$ 9,351,636	4.30 %	$ 197,028,897	$ 7,707,052	3.91 %
Money Market	257,016,702	2,412,389	3.73 %	288,937,873	2,738,774	3.76 %	255,225,159	10,509,670	4.12 %	280,744,073	9,466,984	3.37 %
Savings	3,151,116	1,185	0.15 %	4,155,974	1,238	0.12 %	3,053,030	4,496	0.15 %	5,268,279	6,460	0.12 %
Time Deposits	291,606,111	3,122,791	4.26 %	258,903,945	3,004,586	4.60 %	281,884,854	11,621,330	4.12 %	248,887,291	10,425,044	4.19 %
Interest Bearing Deposits	761,314,905	7,628,382	3.99 %	773,428,362	8,108,764	4.16 %	757,677,877	31,487,131	4.16 %	731,928,540	27,605,540	3.77 %

Borrowings	$ 98,205,747	$ 1,183,419	4.79 %	$ 56,817,293	$ 634,972	3.50 %	102,414,440	$ 4,851,277	4.74 %	$ 48,072,327	1,724,125	3.59 %

Interest Bearing Liabilities	859,520,652	8,811,801	4.08 %	830,245,655	8,743,736	4.18 %	860,092,317	36,338,407	4.22 %	780,000,868	29,329,665	3.76 %

Non Interest Bearing Deposits	$ 153,895,858			$ 161,836,675			$ 147,420,361			$ 169,314,018

Cost of Funds			3.46 %			3.50 %			3.61 %			3.09 %

Net Interest Margin		$ 6,466,709	2.44 %		$ 6,810,314	2.62 %		$ 25,429,091	2.43 %		$ 27,352,075	2.77 %
Shareholders Equity	$ 82,536,219			$ 75,770,938			$ 79,401,873			$ 76,923,708
ROAA	0.41 %						0.43 %			0.22 %
ROAE	5.58 %						5.93 %			3.01 %

Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Loans held-for-investment to Deposits	84.43 %	87.42 %	88.20 %	85.07 %	83.57 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA)	0.41 %	0.12 %	0.75 %	0.43 %	-0.73 %
Return on Average Equity (ROAE)	5.58 %	1.70 %	10.71 %	6.05 %	-10.51 %
Efficiency Ratio	84.07 %	88.13 %	81.72 %	80.64 %	73.93 %
Net Interest Margin	2.44 %	2.32 %	2.41 %	2.54 %	2.62 %
Yield on Average Earning Assets	5.76 %	5.93 %	5.90 %	5.99 %	5.99 %
Yield on Securities	4.69 %	4.85 %	4.92 %	4.88 %	5.10 %
Yield on Loans	6.15 %	6.30 %	6.22 %	6.39 %	6.29 %
Cost of Funds	3.46 %	3.76 %	3.61 %	3.60 %	3.50 %
Noninterest income to Total Revenue	16.51 %	15.90 %	16.44 %	15.21 %	13.16 %
Liquidity Ratios
Uninsured Deposits to Total Deposits	21.55 %	22.51 %	22.76 %	24.31 %	25.65 %
Total Liquidity to Uninsured Deposits	162.14 %	150.84 %	150.53 %	156.40 %	130.30 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	264.35 %	264.41 %	317.68 %	386.89 %	258.25 %
Tangible Common Equity Ratio	7.47 %	7.54 %	7.24 %	7.09 %	7.12 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)	7.27 %	7.38 %	7.01 %	6.85 %	6.88 %

Available -for-Sale securities (as % of total securities)	91.16 %	91.47 %	91.33 %	91.24 %	91.31 %
Per Share Data
Tangible Book Value	$11.39	$11.64	$11.11	$10.83	$10.78
Tangible Book Value (ex AOCI)	$13.94	$13.78	$13.70	$13.39	$13.25
Share Price Data
Closing Price	$10.32	$11.50	$9.75	$9.75	$10.42
Book Value Multiple	91 %	99 %	88 %	92 %	97 %
Common Stock Data
Outstanding Shares at End of Period	7,150,055	7,133,105	7,137,030	7,155,058	7,166,684
Weighted Average shares outstanding, basic	7,268,087	7,263,880	7,267,044	7,285,108	7,335,949
Weighted Average shares outstanding, diluted	7,324,559	7,299,553	7,305,392	7,325,415	7,361,422
Capital Ratios (Bank Only)
Tier 1 Leverage ratio	10.39 %	10.23 %	10.28 %	10.26 %	10.26 %
Common Equity Tier 1 ratio	13.57 %	13.21 %	13.05 %	12.92 %	12.65 %
Tier 1 Risk Based Capital ratio	13.57 %	13.21 %	13.05 %	12.92 %	12.65 %
Total Risk Based Capital ratio	14.35 %	14.22 %	14.01 %	14.00 %	13.82 %
Credit Quality
Net Charge-offs to Average Loans	0.26 %	0.01 %	0.01 %	0.14 %	0.19 %
Total Non-performing Loans to loans held-for-investment	1.78 %	1.52 %	1.49 %	1.74 %	1.72 %
Total Non-performing Assets to Total Assets	1.25 %	1.07 %	1.06 %	1.21 %	1.22 %
Nonaccrual Loans to loans held-for-investment	1.78 %	1.52 %	1.49 %	1.74 %	1.72 %
Provision for Credit Losses	($14,922)	$546,439	($1,167,997)	($27,486)	$4,751,441
Allowance for Credit Losses to net loans held-for-investment	0.85 %	1.12 %	1.06 %	1.24 %	1.37 %
Allowance for Credit Losses to net loans held-for-investment (ex PPP loans)	0.85 %	1.12 %	1.06 %	1.24 %	1.37 %

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



¹Tangible Book Value (ex-AOCI) (non-GAAP)	Quarter Ending
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Shareholder's Equity	$ 81,439,405	$ 83,026,214	$ 79,303,635	$ 77,460,385	$ 77,228,054
Outstanding Shares at End of Period	7,150,055	7,133,105	7,137,030	7,155,058	7,166,684
Tangible Book Value (GAAP)	$ 11.39	$ 11.64	$ 11.11	$ 10.83	$ 10.78
Accumulated Other Comprehensive Income (Net) (AOCI)	$ (18,240,684)	$ (15,296,856)	$ (18,466,282)	$ (18,326,721)	$ (17,715,015)
AOCI per share equivalent	(2.55)	(2.14)	(2.59)	(2.56)	(2.47)
Tangible Book Value (ex-AOCI) (non-GAAP)	$ 13.94	$ 13.78	$ 13.70	$ 13.39	$ 13.25

	Quarter Ending					Year Ending
Income on Tax Exempt Securities	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Tax Equivalent Adjustment	$ 159,233	$ 160,419	$ 161,788	$ 161,654	$ 154,329	$ 643,094	$ 602,891
Income on Tax Exempt Securities (Non-GAAP)	42,328	42,643	43,007	42,971	41,024	170,949	$ 160,262
	$ 201,561	$ 203,062	$ 204,795	$ 204,625	$ 195,353	$ 814,043	$ 763,153

	Quarter Ending					Year Ending
²Net Interest Margin	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Average Earning Assets	$ 1,055,970,602	$ 1,054,061,947	$ 1,038,623,438	$ 1,042,259,725	$ 1,029,726,048	$ 1,047,768,749	$ 989,202,761
Yield on Interest Earning Assets (GAAP)	5.80 %	5.98 %	5.88 %	5.97 %	5.98 %	5.88 %	5.71 %
Yield on Interest-Earning Assets (FTE) (Non-GAAP)	5.76 %	5.93 %	5.90 %	5.99 %	5.99 %	5.90 %	5.73 %
Net Interest Margin (NIM) (GAAP)	2.45 %	2.33 %	2.40 %	2.53 %	2.61 %	2.41 %	2.75 %
Net Interest Margin (NIM) (FTE) (Non-GAAP)	2.44 %	2.32 %	2.41 %	2.54 %	2.62 %	2.43 %	2.77 %

² Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets

³Efficiency Ratio (Non-GAAP)	Quarter Ending					Year Ending
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Net Interest Income	$ 6,424,381	$ 6,098,606	$ 6,187,994	$ 6,547,158	$ 6,769,292	$ 25,258,141	$ 27,191,779
Non-Interest Income	1,270,301	1,153,380	1,217,268	1,174,333	1,025,392	4,815,284	3,895,341
Total Revenue	$ 7,694,682	$ 7,251,985	$ 7,405,262	$ 7,721,491	$ 7,794,684	$ 30,073,425	$ 31,087,120
Non-Interest Expense	6,468,906	6,391,291	6,051,736	6,226,326	5,762,926	25,138,257	23,177,312
Efficiency Ratio (Non-GAAP)	84.07 %	88.13 %	81.72 %	80.64 %	73.93 %	83.59 %	74.56 %

⁴Liquidity Ratios (Non-GAAP)	Quarter Ending
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023
Available-for-Sale Securities (as % of total securities)	91.16 %	91.47 %	91.33 %	91.31 %	91.31 %
Uninsured Deposits to Total Deposits	21.55 %	22.51 %	22.76 %	24.31 %	25.65 %
Total Liquidity to Uninsured Deposits	162.14 %	150.84 %	150.53 %	156.40 %	130.30 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	264.35 %	264.41 %	317.68 %	386.89 %	258.26 %
Tangible Common Equity Ratio	7.47 %	7.54 %	7.24 %	7.09 %	7.12 %
Tangible Common Equity Ratio(adjusted for unrealized losses	7.27 %	7.38 %	7.01 %	6.85 %	6.88 %
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 Home Loan Bank.

⁵Total Revenue (Non-GAAP)	Quarter Ending					Year Ending
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Net Interest Income	$ 6,424,381	$ 6,098,606	$ 6,187,994	$ 6,547,158	$ 6,769,292	$ 25,258,141	$ 27,191,779
Non-Interest Income	1,270,301	1,153,380	1,217,268	1,174,333	1,025,392	4,815,284	3,895,341
Total Revenue (non-GAAP)	$ 7,694,682	$ 7,251,985	$ 7,405,262	$ 7,721,491	$ 7,794,684	$ 30,073,426	$ 31,087,120