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Freedom Financial Holdings Reports on Q4 and Full Year 2025 Results

Freedom Financial Holdings, the parent company of The Freedom Bank of Virginia, recently released its financial results for the fourth quarter and the full year of 2025. The report was unveiled on January 30, 2026, and highlights some critical variances in performance metrics.

In the fourth quarter, the company reported a net loss of $3,567,973 or $0.50 per diluted share compared to a net income of $1,122,930 or $0.16 per diluted share just three months prior and a net income of $1,156,906 or $0.16 per diluted share for the same period in 2024. For the full year, Freedom Financial's net income amounted to $374,197 or $0.05 per diluted share, a stark decline from the $4,710,286 or $0.64 per diluted share reported in 2024.

Key Highlights of 2025 Performance

Joseph J. Thomas, President and CEO, addressed the contrasting outcomes, noting that the core bank demonstrated robust financial health in the last quarter of 2025. The pre-provision, pre-tax earnings (PPNR) surged to $2.2 million—an impressive increase of 84.4% compared to the previous quarter and a 22.6% rise from third quarter results. The total pre-provision pre-tax income for the entire year climbed to $8.62 million, reflecting a year-on-year increase of 74.6% from 2024.

In terms of deposit growth, the bank achieved an impressive increase of $111 million, marking a 19% rise. This positive momentum was paired with a decrease in costs associated with brokered funding, which fell by $97 million. Concurrently, the borrowings were down by $25 million, which led to an enhancement of the bank's net interest margin—up 35 basis points from 2.41% to 2.76% for the full year.

However, not all news was positive. The company reported a significant challenge due to a deterioration in a large syndicated loan, which was downgraded to non-accrual status towards the year's end. This issue, primarily involving one commercial borrower who took a loan in 2022, resulted in a specific reserve set up of $5.93 million—half of the total exposure. This event raised concerns about potential risks; however, Thomas stressed that this single credit issue does not signal systemic problems affecting other loans or the general economic landscape.

Acceptable Capital Ratios and Future Outlook

Despite the turbulent year, the bank maintained a strong capital position, with a Total Risk-Based Capital ratio reaching 15.08% at the end of 2025, up from 14.35% in the previous year. The loan-to-deposit ratio was reported at 83.4%, assuring that the bank remained well-positioned in terms of liquidity.

The board has also committed to shareholder value through share repurchase activities, authorizing an additional 250,000 shares under its buyback program. According to the board, this reflects a disciplined approach to capital management.

Conclusion

Overall, Freedom Financial Holdings' annual and quarterly results for 2025 present a mixed picture. While the company's primary banking operations continue to show strength, the impact of specific loan issues and a drop in net incomes are critical factors needing attention. As they move forward into 2026, the freedom bank remains cautious yet optimistic, focusing on operational efficiencies and overall financial health.

For more information about Freedom Financial Holdings and its services, please visit freedom.bank.