Freedom Financial Holdings Reports Significant Annual Growth in Earnings for 2024
Freedom Financial Holdings Reports Significant Annual Growth in Earnings for 2024
In a notable financial turnaround, Freedom Financial Holdings (OTCQX: FDVA), the parent company of The Freedom Bank of Virginia, announced its earnings for the fourth quarter and the entire year of 2024, highlighting impressive growth in net income. The company recorded a net income of $4,710,284 or $0.64 per diluted share for the year, marking an increase from $2,318,660 or $0.32 per diluted share in 2023. The fourth quarter alone demonstrated a striking recovery, with net income rising to $1,156,906, compared to a significant net loss of $2,006,392 for the same period the previous year.
Joseph J. Thomas, the company's President and CEO, expressed optimism regarding this growth: “Our team focused on leveraging new client acquisitions while investing in technology and talent. We enhanced our internal controls and successfully crossed the $1 billion mark in total assets, despite facing challenges such as a lower net interest margin and increased overhead expenses.” His confidence is derived from the impressive operating trends observed in the last quarter, with net income climbing by 235.41% from the previous quarter.
Key Highlights from Full-Year 2024 Financials
- - Net income for Q4: $1,156,906, an increase of 235.41% from Q3 2024.
- - Annual net income: Totaled $4,710,284, representing a growth of 103.2% over 2023.
- - Return on Average Assets (ROAA): Increased to 0.41% in Q4 from 0.12% in Q3 2024.
- - Return on Average Equity (ROAE): Rose to 5.58% compared to 1.70% for the previous quarter.
From an asset perspective, total assets as of December 31, 2024, stood at $1.09 billion—a 0.54% increase from 2023. Meanwhile, total deposits showed a mixed performance; they increased by $21.74 million in the fourth quarter, despite a full-year decrease of $11.53 million.
Executive changes and shifts in client strategies also played a crucial role throughout 2024, with the fourth quarter seeing a notable increase of 10.14% in non-interest income. This spike was credited mainly to higher revenues from mortgage and Small Business Investment Company (SBIC) activities.
The company was cautious, allocating funds judiciously to withstand potential economic downturns. By maintaining a tangible book value of $13.94 per share (up from $13.25 in 2023), Freedom Financial Holdings has ensured an attractive capital position for future prospects. They reported a common equity Tier 1 ratio of 13.57%, far exceeding regulatory minimums.
Future Outlook
As Freedom Financial moves into 2025, it remains focused on sustaining growth while navigating the changing economic landscape. Their strategies include refining operations and optimizing their service offerings to meet evolving customer demands. Thomas concluded: “With our strong foundation and experienced team, we believe we are well-positioned to tackle the challenges of the coming year."
The investments and operational adjustments made in 2024 are likely to foster resilience and continue the growth trajectory of Freedom Financial Holdings in the upcoming financial year. Investors and stakeholders will keenly observe how the company adapts and evolves amidst market fluctuations, especially given the lessons learned from the fiscal year preceding this promising outlook.
Topics Financial Services & Investing）
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