#USA #Q3 2025 #Fairfax, Virginia #Freedom Bank #Freedom Financial

Freedom Financial Holdings Reports Earnings for Q3 2025

Freedom Financial Holdings, the parent company of The Freedom Bank of Virginia, has announced impressive earnings for the third quarter of 2025, highlighting a robust financial performance despite challenging market conditions. With a net income of $1,122,930 or $0.16 per diluted share, the company has shown a substantial increase from $799,896 or $0.11 per diluted share in the prior quarter and $344,919 or $0.05 per diluted share in the same quarter of 2024.

Joseph J. Thomas, the President and CEO, praised the efforts of the team, stating that they worked diligently to enhance financial outcomes through expanding net interest margin and increasing commercial loans while also effectively managing problem loans and reducing reliance on wholesale funding. This strategy contributed to a remarkable 40.4% quarter-over-quarter growth in net income and an impressive 225.6% increase compared to the same period last year.

Financial Highlights

• - Net Income: $1,122,930 for Q3 2025, a 40.4% increase over Q2 2025 and 225.6% increase year-over-year.
• - Net Interest Margin: Improved by 34 basis points, reaching 2.66% compared to the same quarter last year.
• - Commercial Loans Growth: Successfully produced $31 million in new commercial loan balances in Q3 compared to $16 million in Q2 2025.

The decrease in wholesale deposits by 36.5% - amounting to $127.3 million - during the first nine months of the year, alongside strategic reduction in problematic assets, has strengthened the bank's financial standing. Moreover, these moves are intended to navigate through the economic uncertainties while ensuring liquidity and stability.

Asset Management and Costs

Key figures also indicate a slight decline in total assets, decreasing by $40.7 million or 3.80% from the previous quarter to $1.03 billion as the bank continued to limit brokered funding. Loans held for investment saw a marginal decrease of $737 thousand or 0.10%. Moreover, total deposits fell by $63.2 million, a deliberate cut in brokered CDs making up almost the entire drop.

Despite these reductions, the bank has maintained healthy liquidity levels, evidenced by total liquidity being 136.91% of uninsured deposits on September 30, 2025. Furthermore, the net charge-off rate increased to 0.13% from 0.01% in the previous quarter, representing a need for continued vigilance in asset management.

Non-interest Income and Expenses

For the third quarter, total non-interest income rose by 8.47% compared to the previous quarter and increased by 23.4% year-over-year, reaching $1.42 million. This growth stemmed from heightened revenue from Bank-Owned Life Insurance (BOLI) and the increase in investments.

On the expense side, non-interest expenses decreased by 0.38% quarter-over-quarter due to savings in professional fees and outside services while still increasing slightly compared to the same quarter last year. The efficiency ratio remained stable at 77.43%, marginally improved from 88.13% a year prior.

Looking Ahead

As the Company navigates through a period of increased economic risk, it is well-capitalized with strong capital ratios, maintaining a leverage ratio of 11.23% and common equity tier 1 ratio at 14.64%. The decline in short-term interest rates observed at the end of Q3 is projected to positively influence net interest margins and earnings into 2026.

In conclusion, Freedom Financial Holdings is strategically positioned to continue its focus on profitability through careful asset management, improved efficiency, and a commitment to enhancing client relationships amid a potentially volatile economic landscape.