AG真人官方

FAIRFAX, Va., July 30, 2025 /PRNewswire/ -- 听(翱罢颁蚕齿: 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. 听

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.听 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.听 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听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听 first quarter.听 The change from the prior year's second quarter represents听 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听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.听 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. 听
• 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 听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.听 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 Revenue⁶
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. 听

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. 听

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 听$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听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听 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.听 As of June 30, 2025, the Company had repurchased 214,400 of the 250,000 shares authorized for repurchase under the program.听 Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.听

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:

听

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听.

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;听 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.

听

听

听

听