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Freedom Financial Holdings Q2 2025 Earnings Overview

On July 30, 2025, Freedom Financial Holdings (OTCQX: FDVA), the parent company of The Freedom Bank of Virginia, announced its earnings for the second quarter of 2025. The report demonstrated significant shifts in financial performance compared to both previous quarters and the same period in the prior year.

Key Financial Highlights

In the second quarter, the Company reported a net income of $799,896, or $0.11 per diluted share. This reflects a decrease from the $2,019,348 or $0.28 per diluted share earned in the preceding quarter and also is lower than the $2,044,233, or $0.28 per diluted share, achieved in the same quarter last year. For the first half of 2025, net income totaled $2,819,240, equating to $0.39 per diluted share, a reduction from $3,208,460 or $0.44 per diluted share for the first half of 2024.

Joseph J. Thomas, President and CEO, commented on the results, indicating that proactive adjustments to their loan loss provision negatively influenced profitability. However, he emphasized that there was significant improvement in core profitability, citing a 35.7% increase in pre-tax, pre-provision income of $1.84 million from the same quarter last year.

Performance Metrics

Among the notable metrics:

• - The tangible book value per share climbed to $12.01, up from $11.87 at the end of Q1 2025.
• - The Return on Average Assets (ROAA) declined to 0.29%, down from 0.76% in Q1 2025.
• - The Return on Average Equity (ROAE) also saw a decrease to 3.97%, compared to 9.95% in the previous quarter.
• - Total assets were at $1.07 billion, reflecting a decrease of $18.41 million or 1.69% from the close of 2024.

Despite these challenges, total deposits increased by $7.38 million, or by 0.81% during the quarter, showcasing positive outcomes from marketing initiatives.

Driving Factors Behind Earnings

The decreased loan demand was a prominent factor affecting earnings, with loans held-for-investment (excluding Paycheck Protection Program loans) down by $10.59 million, or 1.41%. However, improvements in non-interest income were notable, increasing by 34.14% compared to the previous quarter and 7.79% year-on-year.

The Company has made strategic investments in team development and technology to adapt to current market conditions, fostering resilience within their balance sheet. Looking ahead, the leadership is optimistic about achieving loan and deposit growth as economic stability is anticipated in the latter half of 2025.

Non-Interest Income and Expenses

The Company attributed a significant portion of its non-interest income growth to increased mortgage loan revenue and improved investment valuations. However, the non-interest expenses rose 5.49% from last quarter, largely due to heightened costs linked to data processing and employee compensation.

Conclusion and Future Outlook

In summary, while Freedom Financial Holdings has encountered headwinds in profitability during Q2 2025, key strategic decisions show promise for future growth. Leadership remains focused on stabilizing loan demand and enhancing overall service offerings, thus positioning the Company to weather fluctuating economic landscapes effectively.

For more insights on deposits, loans, and Company services, visit Freedom Bank.