#United States #Fairfax #Q1 2025 #Freedom Financial #Virginia Bank

Freedom Financial Holdings Reports Strong Q1 2025 Earnings

April 29, 2025, brought exciting news from Freedom Financial Holdings (OTCQX: FDVA), the parent company of The Freedom Bank of Virginia. The company announced impressive earnings for the first quarter of 2025, with net income soaring to $2,019,348, or $0.28 per diluted share. This represents a striking increase of 73.4% compared to the previous year and a notable improvement over the $1,156,906, or $0.16 per diluted share, reported for Q4 2024. The growth signals a strong start to the year, maintaining the positive momentum from the second half of 2024.

Joseph J. Thomas, President and CEO, expressed optimism about the results, stating, "We are pleased to start off 2025 with strong results with net income increasing 73.4% over the comparable quarter in 2024 sustaining the momentum we gained in the second half of last year." This sentiment reflects a confident outlook for the company amid a challenging economic environment.

Key Financial Highlights

The firstquarter results show several key improvements for Freedom Financial Holdings:

• - Strong Earnings: The net income of $2,019,348 signifies a substantial compared to $1,164,226 from Q1 2024.
• - Increase in Book Value: Tangible Book Value per share climbed to $11.87, increasing from $11.39 at the end of 2024.
• - Enhanced Financial Metrics: The Return on Average Assets (ROAA) reached 0.76%, a significant uptick from 0.41% in the prior quarter and 0.43% year-over-year. Additionally, Return on Average Equity (ROAE) improved to 9.95% from 5.58% and 6.05%.

Cost Management and Loan Portfolio Quality

Despite prevailing economic challenges, Freedom Financial Holdings saw a reduction in the cost of funds, declining by 23 basis points to 3.23%. This drop, alongside a net interest margin expansion to 3.03%, demonstrates effective cost management strategies. Non-accrual loans dropped by 22%, indicating positive trends in the company's loan portfolio, with non-accrual loans reporting at $10.7 million.

The efficiency ratio improved significantly to 69.22% from 84.07% in the previous quarter, showcasing the effectiveness of operational strategies implemented by the company.

Liquidity and Capital Ratios

Freedom Financial Holdings maintains strong liquidity with total assets reported at $1.08 billion, down slightly by 0.77% from the end of last year. Total deposits increased by $1.34 million, indicating stability in the company's funding base. Furthermore, the company remains well-capitalized with robust capital ratios exceeding regulatory requirements. The leverage ratio stood at 10.76%, with a Common Equity Tier 1 ratio of 14.14%.

The company notably implemented a stock buyback program, repurchasing 177,692 shares in the first quarter and affirming their commitment to disciplined capital management. The Board believes that this program enhances shareholder value while supporting their strategy to sustain growth.

Conclusion

In summary, Freedom Financial Holdings has made a strong impression with its Q1 2025 earnings report. The substantial increase in net income, improved key financial metrics, and effective management of costs and assets reflect the company’s resilience and capability to thrive under pressure. As Freedom continues to focus on enhancing its financial performance, stakeholders and potential investors may find the current trajectory of the financial institution an attractive opportunity for the future.

For further information about their banking services, you can visit Freedom Bank's website at www.freedom.bank.