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.
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 Ratio3 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.
- 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 Revenue5
Total 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 | |||||||||||
Contact:
Joseph J. Thomas
President & Chief Executive Officer
703-667-4161: Phone
[email protected]: Email
SOURCE Freedom Financial Holdings
