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Freedom Financial Holdings Reports Strong Q1 2026 Earnings Amid Economic Challenges

MCLEAN, Va., April 30, 2026 – Freedom Financial Holdings (OTCQX: FDVA), the parent company of The Freedom Bank of Virginia, has announced its financial results for the first quarter of 2026, revealing a significant net income of $1,160,338, equating to $0.16 per diluted share. This marks a remarkable turnaround from a net loss of $3,567,973 or $0.50 per diluted share recorded in the previous quarter, as well as a solid increase from the net income of $2,019,348 or $0.28 per diluted share from the same period last year.

The substantial improvement in financial performance can largely be attributed to an increase in net interest income and a decrease in non-accrual loans. Joseph J. Thomas, President, and CEO, expressed optimism about the bank's positive trajectory, stating: "We are pleased to start off 2026, our 25th anniversary year, with favorable net income trends, improving net interest margin, and stabilizing credit quality."

Highlights of Q1 2026

• - Net Income: $1,160,338, reflecting a recovery from the previous quarter's loss of $3.57 million.
• - Return on Average Assets (ROAA): Improved to 0.44% compared to (1.37%) in Q4 2025.
• - Return on Average Equity (ROAE): Rebounded to 5.57%, a significant rise from the negative return observed last quarter.
• - Total Assets: Reported at $1.053 billion, a decrease of $13 million or 1.2% from the previous quarter.
• - Gross Loans: Increased by $8.4 million or 1.1% during the quarter, indicating healthy loan growth.
• - Net Interest Margin: Expanded to 2.73%, up by 3 basis points from the last quarter, driven by a drop in funding costs.

The bank's total deposits saw a modest uptick of $3.1 million, bringing the total deposits to $917.36 million at the end of Q1 2026. However, non-interest-bearing demand deposits fell slightly to $149.3 million, accounting for 16.28% of total deposits.

Despite these positive trends, the bank acknowledged that comparisons to prior quarters can be complex due to one-time adjustments in previous results. For example, the fourth quarter of 2025 included an atypical $6.9 million credit provision. Nonetheless, Thomas highlighted the bank’s commitment to maintaining a robust loan portfolio and adapting to current market conditions, stating, "Our team is taking the steps necessary to help clients manage through higher rates and inflation, changes in credit markets, and increasing technology risks and opportunities."

Expense Management and Future Outlook

Total non-interest expenses increased by 21% compared to the previous quarter, primarily due to higher accruals for bonuses, increased mortgage activity, and elevated health insurance premiums. The Efficiency Ratio stood at 81.88% for the quarter, reflecting the challenges of cost management alongside growth efforts.

Looking ahead, Freedom Financial is focused on capitalizing on the growth of its mortgage unit, which saw a 30% increase in gain on sale and fee revenue this quarter, reaching $942,257 compared to $680,766 in Q4 2025. With the goal of enhancing shareholder value, the bank has repurchased shares under its previously announced share buyback program, demonstrating its belief in a disciplined capital management strategy.

Conclusion

With a stable capital base and a strategic focus on improving credit quality and managing costs, Freedom Financial Holdings is well-positioned to navigate the evolving economic landscape. As the bank celebrates its 25th anniversary, its initial earnings report of 2026 reflects a cautious optimism, demonstrating resilience and growth potential amidst a challenging financial environment.

For more information on the latest updates and reports from Freedom Financial Holdings, visit their website at www.freedom.bank.