Freedom Financial Holdings Announces Earnings for Third Quarter of 2025

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10/31/2025 - 08:30 AM

FAIRFAX, Va., Oct. 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 $1,122,930 or $0.16 per diluted share for the third quarter compared to net income of $799,896 or $0.11 per diluted share for the three months ended June 30, 2025, and net income of $344,919 or $0.05 per diluted share for the three months ended September 30, 2024. Net income for the nine months ended September 30, 2025, was $3,942,171 or $0.55 per diluted share, compared to $3,553,378 or $0.49 per diluted share for the nine months ended September 30, 2024.

Joseph J. Thomas, President, and CEO, commented, "Our team worked hard in the third quarter to achieve improved financial results by expanding net interest margin and growing C&I loans, while also reducing wholesale funding and addressing problem loans. The company's net income for the third quarter increased 40.4% over the second quarter of 2025 and 225.6% compared to the third quarter 2024. Our net interest margin for the quarter increased 34 basis points to 2.66% compared to third quarter of 2024. Improvements were partially achieved through a reduction in wholesale deposits of $127.3 million or 36.5% during the first nine months of the year. The Bank produced $31 million in new commercial loan balances in the third quarter compared to $16 million in the second quarter of 2025, reflecting continued client confidence. Loans Held for Investment were flat in the quarter as a result of the payment and resolution of $6.7 million in Classified Assets in the quarter. We continue to contribute to our allowance as we work through problem assets and navigate a period elevated risk and weakening economic conditions in our market. Our levels of liquidity and capital continue to provide resiliency at a time of market uncertainty. The reduction in short term rates that occurred at the end of the third quarter is expected to positively impact margin and earnings in the year ahead."

Third Quarter 2025 Highlights include:

The Company posted net income of $1,122,930 or $0.16 per diluted share for the third quarter compared to net income of $799,896 or $0.11 per diluted share for the three months ended June 30, 2025, and net income of $344,919 or $0.05 per diluted share for the three months ending September 30, 2024.
Tangible Book Value per share¹ increased during the quarter to $12.45 on September 30, 2025, compared to $12.01 on June 30, 2025.
Return on Average Assets ("ROAA") was 0.41% for the quarter ended September 30, 2025, compared to ROAA of 0.29% for the quarter ended June 30, 2025, and 0.12% for the three months ended September 30, 2024.
Return on Average Equity ("ROAE") was 5.57% for the quarter ended September 30, 2025, compared to ROAE of 3.97% for the three months ended June 30, 2025, and 1.70% for the three months ended September 30, 2024.
Total Assets were $1.03 billion on September 30, 2025, a decrease of $40.7 million or 3.80% from total assets on June 30, 2025 as the Bank reduced brokered funding.
Loans held-for-investment (excluding PPP loans) decreased by $737 thousand or 0.10% during the quarter.
Total deposits decreased by $63.2 million or by 6.89% during the quarter, $62.9 million of which was the intentional reduction in brokered CDs.
Non-interest-bearing demand deposits decreased by $210 thousand from the linked quarter to $126.71 million and represented 14.82% of total deposits on September 30, 2025.
The net interest margin² was flat in the third quarter at 2.66%, same as the linked quarter and increased by 34 basis points compared to the same period in 2024. The change from the prior year's third quarter represents improvements in the cost of funds as the Bank has decreased its use of wholesale funding and rate reductions in overnight cost of funds in the capital markets.
The cost of funds was 3.19% for the second and third quarter, and lower by 57 basis points compared to the same period in 2024, as wholesale funding use was reduced and the market rate environment came down.
Non-interest income increased by 8.47% compared to the linked quarter and increased by 23.4% compared to the same period in 2024. The increase in non-interest income in the third quarter of 2025 compared to the linked quarter was primarily due to higher revenue from BOLI products and an increase in the value of investments in SBIC's.
Non-interest expense in the third quarter decreased by 0.38% compared to the linked quarter and increased by 0.99% compared to the same period in 2024. The decrease in non-interest expense compared to the linked quarter and prior calendar quarter was primarily due to savings in professional fees and outside services.
The Efficiency Ratio3 was 77.43% for the quarter ended September 30, 2025, compared to 77.57% for the linked quarter and 88.13% for the same period in 2024.
Uninsured deposits were 24.51% of total deposits and total liquidity⁴ was 136.91% of uninsured deposits on September 30, 2025.
Net charge offs increased in the third quarter and were 0.13% of average loans compared to 0.01% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 2.30% on September 30, 2025, compared to 1.45% on June 30, 2025, and 1.52% on September 30, 2024. The ratio of non-performing assets to total assets was 1.65% on September 30, 2025, compared to 0.98% on June 30, 2025, and 1.07% on September 30, 2024.
The Company had a loan loss provision of $496,824 in the third quarter, due to the charge-off of one consumer and one commercial loan. This was partially offset by reduction in the provision for unfunded commitments as those expired or were funded, and a reversal of a specific reserve for one corporate bond that was upgraded in the quarter.
The ratio of the allowance for credit losses to loans held-for-investment was 0.96% compared to 0.96% in the linked quarter.
The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 11.23%, Common Equity Tier 1 ratio of 14.64%, Tier 1 Risk Based Capital ratio of 14.64% and a Total Capital ratio of 15.53%.

Net Interest Income
The Company recorded net interest income of $6.75 million for the third quarter, lower by 1.85% compared to the linked quarter, and higher by 10.66% compared to the same period in 2024. The net interest margin in the third quarter of 2025 was 2.66%, flat compared to the linked quarter and higher by 34 basis points compared to the same period in 2024.

The following factors contributed to the changes in net interest margin during the third quarter of 2025 compared to the linked and calendar quarters.

Yields on average earning assets were 5.72% in the third quarter of 2025, lower by 1 basis point compared to the linked quarter, and lower by 21 basis points compared to the calendar quarter. The decline in yields on average earning assets in the third quarter was primarily due to reduction in market rates in the economic environment.
Loan yields increased by 2 basis points to 6.22% from 6.20% in the linked quarter, while yields on investment securities decreased by 10 basis points to 4.29% from 4.39% in the linked quarter. Loan yields decreased by 8 basis points, while yields on investment securities decreased by 56 basis points compared to the calendar quarter.
Cost of funds remained flat 3.19% in both the 2^nd and 3^rd quarter, and was lower by 57 basis points compared to the calendar quarter.

Non-interest Income
Non-interest income was $1.42 million for the third quarter, an increase of 8.47% when compared to the linked quarter and an increase of 23.40% when compared to the same period in 2024. The increase in non-interest income in the third quarter of 2025 compared to the linked quarter was primarily due to an increase in the value of investments in SBIC's and BOLI income.

Total Revenue ⁵Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 0.2% compared to the linked quarter and higher by 12.69% compared to the calendar quarter in 2024. The decrease in total revenue compared to the linked quarter was primarily due to lower average earning assets in the quarter. The increase over the prior year quarter stems improvements in both Net Interest Income, the improvement in margin, and from increased non-interest income via SBIC and BOLI income.

Non-interest Expense
Non-interest expense in the third quarter decreased by 0.38% compared to the linked quarter and decreased by 0.99% compared to the same period in 2024. The decrease in non-interest expense compared to both the linked and calendar quarters was primarily due to lower expense on professional fees and outside services.

The Efficiency Ratio was 77.43% for the quarter ended September 30, 2025, compared to 77.57% for the linked quarter and 88.13% for the same period in 2024.

Asset Quality
Non-accrual loans increased in the third quarter to 2.3% of loans held-for-investment compared to 1.45% of loans held-for-investment at the end of the linked quarter, as five loans in the quarter went on non-accrual. 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 1.65% of total assets as of September 30, 2025, compared to 0.98% of total assets, at the end of the linked quarter.

The Company recognized a provision for loan losses of $496,824 related to two charged off loans in the quarter, partially offset by the release of specific reserves on an upgraded corporate bond and the reduction in provisions for unfunded commitments.

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

Total Assets
Total assets on September 30, 2025 were $1.03 billion compared to total assets of $1.07 billion on June 30, 2025.

Total Liabilities
Total liabilities on September 30, 2025, were $944.17 million compared to total liabilities of $987.96 million on June 30, 2025, and total liabilities of $1.01 billion on December 31, 2024. Total deposits were $855.02 million on September 30, 2025, compared to total deposits of $918.25 million on June 30, 2025, and total deposits of $909.53 million on December 31, 2024. Non-interest-bearing demand deposits decreased by $210 thousand during the third quarter and comprised 14.82% of total deposits at the end of the third quarter. Federal Home Loan Bank borrowings increased by $20 million during the quarter.

Stockholders' Equity and Capital
Stockholders' equity as of September 30, 2025, was $87.19 million compared to $84.12 million on March 31, 2025, and stockholders' equity of $81.44 million on December 31, 2024. AOCI improved by $1.8 million over the quarter as rates came down and the bonds moved closer to maturity. The tangible book value of the Company's common stock on September 30, 2025, was $12.45 per share compared to $12.01 on June 30, 2025, and tangible book value per share of $11.39 on December 31, 2024. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on June 30, 2025, was $14.58 per share compared to $14.39 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 or third quarter. As of September 30, 2025, the Company had repurchased 214,400 of the 250,000 shares authorized for repurchase under the program. Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.

Capital Ratios
As of September 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 September 30, 2025, and December 31, 2024, were as follows:

	September 30, 2025	December 31, 2024
Total Capital Ratio	15.53 %	14.35 %

Tier 1 Capital Ratio	14.64 %	13.57 %

Common Equity Tier 1 Capital Ratio	14.64 %	13.57 %

Leverage Ratio	11.23 %	10.39 %

About Freedom Financial Holdings, Inc.

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

Forward Looking Statements

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

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED BALANCE SHEETS


	(Unaudited)	(Unaudited)	(Audited)
	September 30,	June 30,	December 31,
	2025	2025	2024
ASSETS
Cash and Due from Banks	$ 4,818,837	$ 10,668,471	$ 5,685,008
Interest Bearing Deposits with Banks	18,496,712	48,991,785	23,004,874
Securities Available-for-Sale	187,268,762	193,740,578	209,687,859
Securities Held-to-Maturity	19,343,569	19,475,547	20,315,651
Restricted Stock Investments	6,385,300	5,065,300	6,249,000
Loans Held for Sale	7,183,273	4,882,264	5,963,969
PPP Loans Held for Investment	125,403	133,049	159,825
Other Loans Held for Investment	741,335,198	742,071,827	767,737,719
Allowance for Loan Losses	(7,137,980)	(7,188,387)	(6,534,757)
Net Loans	741,505,894	739,898,753	767,326,756
Bank Premises and Equipment, net	692,681	717,599	767,773
Accrued Interest Receivable	4,264,875	4,567,221	4,155,077
Deferred Tax Asset	6,063,117	6,587,963	7,560,441
Bank-Owned Life Insurance	28,236,091	28,004,541	27,560,616
Right of Use Asset, net	1,419,569	1,572,800	1,874,403
Other Assets	12,867,243	12,791,140	16,299,753
Total Assets	$ 1,031,362,649	$ 1,072,081,698	$ 1,090,487,211

LIABILITIES AND STOCKHOLDERS' EQUITY	-	-
Deposits
Demand Deposits
Non-interest Bearing	$ 126,711,971	$ 126,922,031	133,665,194
Interest Bearing	$ 549,852,965	552,796,334	$ 475,397,117
Savings Deposits	$ 1,988,586	2,550,937	3,866,241
Time Deposits	$ 176,467,460	235,975,996	296,603,142
Total Deposits	855,020,982	918,245,298	909,531,694
Federal Home Loan Bank Advances	60,000,000	40,000,000	65,000,000
Other Borrowings	125,403	133,049	159,825
Subordinated Debt (Net of Issuance Costs)	19,909,087	19,889,606	19,850,643
Accrued Interest Payable	1,098,199	2,014,296	2,445,741
Lease Liability	1,520,701	1,694,646	2,013,912
Other Liabilities	6,495,085	5,981,294	10,045,990
Total Liabilities	$ 944,169,457	$ 987,958,189	1,009,047,805
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized:
0 Shares Issued and Outstanding, September 30, 2025, June 30, 2025, and December 31, 2024
Common Stock, $0.01 Par Value, 25,000,000 Shares authorized:
23,000,000 Shares Voting and 2,000,000 Shares Non-voting.
Voting Common Stock:
7,002,103 , 7,002,103 and 7,268,087 Shares Issued and Outstanding
at September 30, 2025, June 30, 2025, and December 31, 2024 respectively	70,021	70,021	71,501
Non-Voting Common Stock:	-	-
0 Shares Issued and Outstanding at September 30, 2025, June 30, 2025,
and December 31, 2024 respectively)			-
Additional Paid-in Capital	56,800,773	56,630,385	58,347,356
Accumulated Other Comprehensive Income, Net	(14,881,004)	(16,657,368)	(18,240,683)
Retained Earnings	45,203,402	44,080,472	41,261,232
Total Stockholders' Equity	$ 87,193,192.52	$ 84,123,509.55	81,439,406
Total Liabilities and Stockholders' Equity	$ 1,031,362,649	$ 1,072,081,698	$ 1,090,487,211

FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS

	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	For the three	For the three	For the nine	For the nine
	months ended	months ended	months ended	months ended
	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
Interest Income
Interest and Fees on Loans	$ 11,671,310	$ 12,358,391	$ 36,048,818	$ 36,534,919
Interest on Investment Securities	$ 2,307,732	2,932,219	$ 7,371,904	8,731,004
Interest on Deposits with Other Banks	$ 507,622	390,373	$ 1,520,740	1,094,445
Total Interest Income	14,486,664	15,680,983	44,941,462	46,360,368
Interest Expense
Interest on Deposits	$ 7,036,552	7,968,925	$ 21,257,818	23,858,749
Interest on Borrowings	$ 701,474	1,613,452	$ 2,338,844	3,667,858
Total Interest Expense	7,738,026	9,582,377	23,596,662	27,526,607

Net Interest Income	6,748,638	6,098,606	21,344,800	18,833,761
Provision/(Recovery) for Loan Losses	$ 496,824	546,439	$ 1,470,372	649,044
Net Interest Income After
Provision for Loan Losses	6,251,814	5,552,167	19,874,428	19,482,805
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	718,684	649,097	2,173,755	1,931,187
SBA Gain-on-Sale Revenue	-	-	-	287,032
Service Charges and Other Income	$ 453,981	255,889	$ 798,103	594,271
Gain on Sale of Securities	-	-	-	1,816
Servicing Income	19,060	36,752	66,207	114,273
Swap Fee Income	-	-	-	-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	231,549	211,642	675,474	616,402
Total Non-interest Income	1,423,274	1,153,380	3,713,539	3,544,981

Total Revenue	8,171,913	7,251,986	25,058,339	22,378,742

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	$ 4,067,037	3,674,499	$ 11,589,333	10,953,786
Occupancy Expense	$ 246,378	233,807	$ 732,820	880,916
Equipment and Depreciation Expense	$ 16,039	285,083	$ 41,384	666,387
Insurance Expense	$ 244,170	232,774	$ 690,281	686,040
Professional Fees	$ 291,975	532,379	$ 1,322,188	1,627,717
Data and Item Processing	$ 540,506	433,431	$ 1,674,211	1,090,292
Advertising	$ 112,566	172,136	$ 347,357	449,488
Franchise Taxes and State Assessment Fees	$ 334,422	329,056	$ 963,080	915,768
Mortgage Fees and Settlements	106,266	123,853	280,814	302,471
Other Operating Expense	$ 368,343	374,273	$ 1,058,790	1,096,487
Total Non-interest Expenses	6,327,702	6,391,291	18,700,258	18,669,352
Income Before Income Taxes	1,347,386	314,256	4,887,709	4,358,434
Income Tax Expense/(Benefit)	224,456	(30,663)	945,538	805,056
Net Income	$ 1,122,930	$ 344,919	$ 3,942,172	$ 3,553,378
Earnings per Common Share - Basic	$ 0.16	$ 0.05	$ 0.55	$ 0.49
Earnings per Common Share - Diluted	$ 0.16	$ 0.05	$ 0.55	$ 0.49
Weighted-Average Common Shares
Outstanding - Basic	7,134,446	7,263,880	7,141,452	7,271,981
Weighted-Average Common Shares
Outstanding - Diluted	7,184,688	7,299,553	7,194,576	7,314,290

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
	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024
Interest Income
Interest and Fees on Loans	$ 11,671,310	$ 11,673,927	$ 12,703,493	$ 11,991,578	$ 12,358,391
Interest on Investment Securities	$ 2,307,732	2,450,914	2,613,258	2,798,420	2,932,219
Interest on Deposits with Other Banks	$ 507,622	750,610	262,507	446,184	390,373
Total Interest Income	14,486,664	14,875,451	15,579,258	15,236,182	15,680,983
Interest Expense
Interest on Deposits	7,036,552	7,275,073	6,946,194	7,628,382	7,968,925
Interest on Borrowings	701,474	724,216	913,154	1,183,419	1,613,452
Total Interest Expense	7,738,026	7,999,289	7,859,348	8,811,801	9,582,377

Net Interest Income	6,748,638	6,876,162	7,719,910	6,424,381	6,098,606
Provision/(Recovery) for Loan Losses	496,824	688,865	284,683	14,922	546,439
Net Interest Income after
Provision/Recovery for Loan Losses	6,251,814	6,187,297	7,435,227	6,409,459	5,552,167
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	718,684	797,759	654,530	769,060	649,097
SBA Gain-on-Sale Revenue	-	-	-	-	-
Service Charges and Other Income	453,981	270,230	70,334	252,275	255,889
Gains on Sale of Securities	-	-	-	-	-
Servicing Income	19,060	21,045	32,442	36,090	36,752
Swap Fee Income	-	-	-	-	-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	231,549	223,061	220,864	212,876	211,642
Total Non-interest Income	1,423,274	1,312,095	978,170	1,270,301	1,153,380

Total Revenue⁵	8,171,912	8,188,257	$ 8,698,080	$ 7,694,682	$ 7,251,986

Non-Interest Expenses
Officer and Employee Compensation
and Benefits	4,067,037	3,752,761	3,769,535	3,905,728	3,674,499
Occupancy Expense	246,378	244,279	242,163	233,967	233,807
Equipment and Depreciation Expense	16,039	16,619	8,726	20,951	16,647
Insurance Expense	244,170	220,346	225,766	228,224	232,774
Professional Fees	291,975	559,904	470,310	451,065	532,379
Data and Item Processing	540,506	595,492	538,213	684,698	701,865
Advertising	112,566	151,676	83,115	90,368	172,136
Franchise Taxes and State Assessment Fees	334,422	314,444	314,214	316,976	329,056
Mortgage Fees and Settlements	106,266	99,819	87,258	119,037	123,853
Other Operating Expense	368,343	396,213	281,611	417,893	374,273
Total Non-interest Expenses	6,327,702	6,351,552	6,020,911	6,468,907	6,391,290
Income before Income Taxes	1,347,386	1,147,840	2,392,486	1,210,853	314,257
Income Tax Expense	224,456	347,943	373,138	83,793	(30,663)
Net Income	$ 1,122,930	$ 799,897	$ 2,019,348	$ 1,127,060	$ 344,920
Earnings per Common Share - Basic	$ 0.16	$ 0.11	$ 0.28	$ 0.16	$ 0.05
Earnings per Common Share - Diluted	$ 0.16	$ 0.11	$ 0.28	$ 0.16	$ 0.05
Weighted-Average Common Shares
Outstanding - Basic	7,134,446	7,137,779	7,283,696	7,268,087	7,263,880
Weighted-Average Common Shares
Outstanding - Diluted	7,184,688	7,140,491	7,285,900	7,324,559	7,299,553

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

	Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended			Three Months Ended
	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield
Assets
Cash	$46,853,763	$507,622	4.30 %	$65,570,216	$750,611	4.59 %	$36,901,243	$ 262,507	2.89 %	$ 39,134,308	$ 446,184	4.54 %	$ 29,674,932	$ 390,373	5.23 %

Investments (Tax Exempt)	$19,928,687	$155,780	3.10 %	$19,843,159	$156,555	3.16 %	$20,214,201	157,089	3.15 %	20,664,409	201,561	3.88 %	20,716,896	203,062	3.90 %
Investments (Taxable)	$193,341,006	$2,151,952	4.42 %	$204,066,557	$2,294,359	4.51 %	$212,629,949	2,456,170	4.68 %	220,415,008	2,639,187	4.86 %	223,526,525	2,771,800	5.03 %
Total Investments	$213,269,693	$2,307,732	4.29 %	223,909,716	2,450,914	4.39 %	$232,844,150	2,613,259	4.55 %	241,079,417	2,840,748	4.69 %	244,243,421	2,974,862	4.85 %

Total Loans	$744,905,635	$11,671,310	6.22 %	$755,231,852	$11,673,926	6.20 %	$764,147,542	12,703,493	6.74 %	775,756,877	$11,991,578	6.15 %	780,143,594	12,358,391	6.30 %

Earning Assets	$1,005,029,091	$14,486,664	5.72 %	$1,044,711,784	$14,875,451	5.73 %	$1,033,892,935	15,579,258	6.11 %	1,055,970,602	15,278,510	5.76 %	1,054,061,947	15,723,626	5.93 %



Assets	$1,058,353,304			$1,100,110,176			$1,083,851,440			$ 1,110,466,582			$ 1,111,788,038

Liabilities
Interest Checking	$127,149,614	$998,124	3.11 %	$125,175,008	$979,587	3.13 %	$211,572,944	$ 929,609	1.78 %	$ 209,540,976	$ 2,092,017	3.97 %	$ 204,529,638	$ 2,268,166	4.41 %
Money Market	$320,887,145	$2,722,629	3.37 %	$396,798,385	$3,620,383	3.65 %	$259,289,920	1,924,822	3.01 %	257,016,702	2,412,389	3.73 %	259,041,124	2,686,977	4.13 %
Savings	$2,415,353	$1,051	0.17 %	$6,727,490	$1,503	0.09 %	$4,398,923	1,178	0.11 %	3,151,116	1,185	0.15 %	3,098,470	1,188	0.15 %
Time Deposits	$317,448,404	$3,314,747	4.14 %	$272,467,884	$2,673,600	3.93 %	$294,336,342	4,090,584	5.64 %	291,606,111	3,122,791	4.26 %	286,346,982	3,012,594	4.19 %
Interest Bearing Deposits	$767,900,516	$7,036,551	3.64 %	801,168,767	$7,275,073	3.63 %	$769,598,129	6,946,193	3.66 %	761,314,905	7,628,382	3.99 %	753,016,214	7,968,925	4.21 %

Borrowings	$61,329,539	$ 701,474	4.54 %	$63,255,808	$724,216	4.59 %	$78,341,429	$ 913,154	4.73 %	$ 98,205,747	$ 1,183,419	4.79 %	$ 118,452,626	$ 1,613,452	5.42 %

Interest Bearing Liabilities	829,230,055	$7,738,025	3.70 %	864,424,575	$7,999,289	3.71 %	$847,939,558	7,859,347	3.76 %	859,520,652	8,811,801	4.08 %	871,468,840	9,582,377	4.37 %

Non Interest Bearing Deposits	$ 133,933,651			$ 140,837,354			$139,885,803			$ 153,895,858			$ 143,171,313

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

Net Interest Margin		$6,748,638	2.66 %		$ 6,876,162	2.66 %		$ 7,719,911	3.03 %		$ 6,466,709	2.44 %		$ 6,141,249	2.32 %

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

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield	Average Balance	Income/ Expense	Yield
Assets
Cash	$46,853,763	$507,622	4.30 %	$29,674,932	$390,373	5.23 %	$47,466,359	$1,520,740	4.28 %	$28,420,248	$1,094,445	5.14 %

Investments (Tax Exempt)	$19,928,687	$155,780	3.10 %	$20,716,896	$203,062		$19,994,303	$469,423	3.14 %	$20,967,161	$612,482
Investments (Taxable)	$193,341,006	$2,151,952	4.42 %	$223,526,525	$2,771,800		$203,275,182	$6,902,482	4.54 %	$221,595,806	$8,247,143
Total Investments	$213,269,693	$2,307,732	4.29 %	244,243,421	2,974,862	4.85 %	$223,269,485	7,371,904	4.41 %	242,562,967	8,859,625	4.88 %

Total Loans	$744,905,635	$11,671,310	6.22 %	$780,143,594	$12,358,391	6.30 %	$754,691,193	$36,048,818	6.39 %	$774,031,626	$36,534,919	6.30 %

Earning Assets	$1,005,029,091	$14,486,664	5.72 %	1,054,061,947	15,723,626	5.93 %	$1,025,427,037	$44,941,463	5.86 %	1,045,014,841	46,488,989	5.94 %

Assets				1,111,788,038			$1,080,678,240			1,100,466,584
	$1,058,353,304
Liabilities
Interest Checking	$127,149,614	$998,124	3.11 %	$204,529,638	$2,268,166	4.41 %	$125,048,338	$2,907,310	3.11 %	$220,192,189	$7,259,619	4.40 %
Money Market	$320,887,145	$2,722,629	3.37 %	$259,041,124	$2,686,977	4.13 %	$281,254,921	$7,037,405	3.35 %	$254,623,619	$8,097,281	4.25 %
Savings	$2,415,353	$1,051	0.17 %	$3,098,470	$1,188	0.15 %	$4,506,656	$3,756	0.11 %	$3,020,096	$3,311	0.15 %
Time Deposits	$317,448,404	$3,314,747	4.14 %	$286,346,982	$3,012,594	4.19 %	$368,739,671	$11,309,346	4.10 %	$278,620,782	$8,498,539	4.07 %
Interest Bearing Deposits	$767,900,516	$7,036,551	3.64 %	753,016,214	7,968,925	4.21 %	779,549,586	$21,257,817	3.65 %	756,456,686	23,858,750	4.21 %

Borrowings	$61,329,539	$701,474	4.54 %	$118,452,626	$1,613,452	5.42 %	$67,579,944	$2,338,844	4.63 %	$103,827,577	$3,667,858	4.72 %

Interest Bearing Liabilities	829,230,055	$7,738,025	3.70 %	871,468,840	9,582,377	4.37 %	847,129,530	23,596,661	3.71 %	860,284,263	27,526,608	4.27 %

Non Interest Bearing Deposits	$ 133,933,651			$ 143,171,313			$ 138,197,133			$ 145,246,107

Cost of Funds			3.19 %			3.76 %			3.20 %			3.66 %

Net Interest Margin		$6,748,638	2.66 %		$ 6,141,249	2.32 %		$ 21,344,802	2.78 %		$ 18,962,381	2.42 %

Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024
Loans held-for-investment to Deposits	86.72 %	80.83 %	82.65 %	84.43 %	87.42 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA)	0.41 %	0.29 %	0.76 %	0.41 %	0.12 %
Return on Average Equity (ROAE)	5.57 %	3.97 %	9.95 %	5.58 %	1.70 %
Efficiency Ratio	77.43 %	77.57 %	69.22 %	84.07 %	88.13 %
Net Interest Margin	2.66 %	2.66 %	3.03 %	2.44 %	2.32 %
Yield on Average Earning Assets	5.72 %	5.73 %	6.11 %	5.76 %	5.93 %
Yield on Securities	4.29 %	4.39 %	4.55 %	4.69 %	4.85 %
Yield on Loans	6.22 %	6.20 %	6.74 %	6.15 %	6.30 %
Cost of Funds	3.19 %	3.19 %	3.23 %	3.46 %	3.76 %
Noninterest income to Total Revenue	17.42 %	16.02 %	11.25 %	16.51 %	15.90 %
Liquidity Ratios
Uninsured Deposits to Total Deposits	24.51 %	22.51 %	22.50 %	21.55 %	22.51 %
Total Liquidity to Uninsured Deposits	136.91 %	167.83 %	122.33 %	162.14 %	150.84 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	209.14 %	252.65 %	292.23 %	264.35 %	264.41 %
Tangible Common Equity Ratio	8.45 %	7.85 %	7.68 %	7.47 %	7.54 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)	8.27 %	7.64 %	7.50 %	7.27 %	7.38 %

Available-for-Sale securities (as % of total securities)	90.64 %	90.87 %	91.12 %	91.16 %	91.47 %
Per Share Data
Tangible Book Value	$12.45	$12.01	$11.87	$11.39	$11.64
Tangible Book Value (ex AOCI)	$14.58	$14.39	$14.26	$13.94	$13.78
Share Price Data
Closing Price	$11.52	$11.26	$9.90	$10.32	$11.50
Book Value Multiple	93 %	94 %	83 %	91 %	99 %
Common Stock Data
Outstanding Shares at End of Period	7,002,103	7,002,103	7,002,103	7,150,055	7,133,105
Weighted Average shares outstanding, basic	7,134,446	7,137,779	7,283,696	7,268,087	7,263,880
Weighted Average shares outstanding, diluted	7,184,688	7,140,491	7,285,900	7,324,559	7,299,553
Capital Ratios (Bank Only)
Tier 1 Leverage ratio	11.23 %	10.66 %	10.76 %	10.39 %	10.23 %
Common Equity Tier 1 ratio	14.64 %	14.30 %	14.14 %	13.57 %	13.21 %
Tier 1 Risk Based Capital ratio	14.64 %	14.30 %	14.14 %	13.57 %	13.21 %
Total Risk Based Capital ratio	15.53 %	15.20 %	14.95 %	14.35 %	14.22 %
Credit Quality
Net Charge-offs to Average Loans	0.13 %	0.01 %	0.03 %	0.26 %	0.01 %
Total Non-performing Loans to loans held-for-investment	2.30 %	1.45 %	1.45 %	1.78 %	1.52 %
Total Non-performing Assets to Total Assets	1.65 %	0.98 %	1.01 %	1.25 %	1.07 %
Nonaccrual Loans to loans held-for-investment	2.30 %	1.45 %	1.45 %	1.78 %	1.52 %
Provision for Loan Losses	$496,824	$688,865	$284,683	$14,922	$546,439
Allowance for Loan Losses to net loans held-for-investment	0.96 %	0.96 %	0.88 %	0.85 %	1.12 %
Allowance for Loan Losses to net loans held-for-investment (ex PPP loans)	0.96 %	0.96 %	0.88 %	0.85 %	1.12 %

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

Pre-tax, Pre-Provision Income (Non-GAAP)	Quarter Ending
	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024
Net Income	$ 1,122,930	$ 799,896	$ 2,019,348	$ 1,127,060	$ 344,919
+ Provision Expense	496,824	688,865	284,683	14,922	546,439
+ Provision Expense
+ Income Tax Expense	224,456	347,943	373,138	83,793	(30,663)

Pre-tax,Pre-Provision Income (non-GAAP)	$ 1,844,211	$ 1,836,704	$ 2,677,169	$ 1,225,775	$ 860,696

¹ Tangible Book Value (ex-AOCI) (non-GAAP)	Quarter Ending
	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024
Shareholder's Equity	$ 87,193,193	$ 84,123,510	$ 83,134,747	$ 81,439,406	$ 83,026,214
Outstanding Shares at End of Period	7,002,103	7,002,103	7,002,103	7,150,055	7,133,105
Tangible Book Value (GAAP)	$ 12.45	$ 12.01	$ 11.87	$ 11.39	$ 11.64
Accumulated Other Comprehensive Income (Net) (AOCI)	$ (14,881,004)	$ (16,657,368)	$ (16,748,443)	$ (18,240,683)	$ (15,296,856)
AOCI per share equivalent	(2.13)	(2.38)	(2.39)	(2.55)	(2.14)
Tangible Book Value (ex-AOCI) (non-GAAP)	$ 14.58	$ 14.39	$ 14.26	$ 13.94	$ 13.78

	Quarter Ending					Year Ending
Income on Tax Exempt Securities	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	September 30, 2025	September 30, 2024
Tax Equivalent Adjustment	$ 123,066	$ 123,678	$ 124,101	$ 159,233	$ 160,419	$ 370,844	$ 483,861
Income on Tax Exempt Securities (Non-GAAP)	32,714	32,877	32,988	42,328	42,643	98,579	128,621
	$ 155,780	$ 156,555	$ 157,089	$ 201,561	$ 203,062	$469,423	$612,482

² Net Interest Margin
Average Earning Assets	$1,005,029,091	$ 1,044,711,785	$ 1,033,892,935	$ 1,055,970,602	$ 1,054,061,947	$ 1,025,427,037	$ 1,045,014,841
Yield on Interest-Earning Assets (FTE) (Non-GAAP)	5.72 %	5.73 %	6.11 %	5.76 %	5.93 %	5.86 %	5.94 %
Net Interest Margin (NIM) (FTE) (Non-GAAP)	2.66 %	2.66 %	3.03 %	2.44 %	2.32 %	2.78 %	2.42 %

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

³ Efficiency Ratio (Non-GAAP)	Quarter Ending					Year Ending
	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	September 30, 2025	September 30, 2024
Net Interest Income	$ 6,748,638	$ 6,876,162	$ 7,719,910	$ 7,719,910	$ 6,098,606	$ 21,344,800	$ 18,833,761
Non-Interest Income	1,423,274	1,312,094	978,170	978,170	1,153,380	3,713,539	3,544,981
Total Revenue	$ 8,171,912	$ 8,188,256	$ 8,698,079	$ 8,698,080	$ 7,251,986	$ 25,058,339	$ 22,378,742
Non-Interest Expense	6,327,702	6,351,552	6,020,911	6,020,911	6,391,291	18,700,258	18,669,352
Efficiency Ratio (Non-GAAP)	77.43 %	77.57 %	69.22 %	69.22 %	88.13 %	74.63 %	83.42 %

⁴ Liquidity Ratios (Non-GAAP)	Quarter Ending
	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024
Available-for-Sale Securities (as % of total securities)	90.64 %	90.87 %	91.12 %	91.16 %	91.47 %
Uninsured Deposits to Total Deposits	24.51 %	22.51 %	22.50 %	21.55 %	22.51 %
Total Liquidity to Uninsured Deposits (Non-GAAP)	136.91 %	167.83 %	122.33 %	162.14 %	150.84 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	209.14 %	252.65 %	292.23 %	264.35 %	264.41 %
Tangible Common Equity Ratio (Non-GAAP)	8.45 %	7.85 %	7.68 %	7.47 %	7.54 %
Tangible Common Equity Ratio(adjusted for unrealized losses	8.27 %	7.64 %	7.50 %	7.27 %	7.38 %
on HTM Securities) (Non-GAAP)

⁴ Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve and the Federal Home Loan Bank.

⁵ Total Revenue (Non-GAAP)	Quarter Ending					Year-to-Date
	September 30, 2025	June 30, 2025	March 31, 2025	December 31, 2024	September 30, 2024	September 30, 2025	September 30, 2024
Net Interest Income	$ 6,748,638	$ 6,876,162	$ 7,719,910	$ 6,424,381	$ 6,098,606	$ 21,344,800	$ 18,833,761
Non-Interest Income	1,423,274	1,312,095	978,170	1,270,301	1,153,380	3,713,539	3,544,981
Total Revenue (non-GAAP)	$ 8,171,912	$ 8,188,257	$ 8,698,080	$ 7,694,682	$ 7,251,986	$ 25,058,339	$ 22,378,742