Freedom Financial Holdings Announces Earnings for Fourth Quarter and Full Year 2023

Rhea-AI Summary

Freedom Financial Holdings (FDVA) announced a net loss of $2,006,393, or -$0.27 per diluted share for the three months ended December 31, 2023. Despite the loss, tangible book value per share increased by 2.70% during the quarter. The Company recognized a provision for loan losses of $4,751,441 in the fourth quarter, largely related to a single relationship. Net income for the full year 2023 was $2,318,695 or $0.32 per diluted share, compared to $10,563,572 or $1.45 per diluted share for the full year 2022. Total assets were $1.08 billion on December 31, 2023, an increase of $99.60 million or 10.11% from total assets on December 31, 2022.

Positive

• Tangible book value per share increased by 2.70% during the quarter and by 2.01% in 2023.
• Total assets were $1.08 billion on December 31, 2023, an increase of $99.60 million or 10.11% from total assets on December 31, 2022.

Negative

• The Company recognized a provision for loan losses of $4,751,441 in the fourth quarter, largely related to a single relationship.
• Net income for the full year 2023 was $2,318,695 or $0.32 per diluted share, compared to $10,563,572 or $1.45 per diluted share for the full year 2022.

FAIRFAX, Va., Jan. 26, 2024 /PRNewswire/ -- Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced a net loss of $2,006,393, or -$0.27 per diluted share for the three months ended December 31, 2023. Pre-provision pretax income¹ for the fourth quarter was $2,031,758 compared to pre-provision, pretax income of $1,730,376 in the prior quarter. The Company recognized a provision for loan losses of $4,751,441 in the fourth quarter, largely related to a single relationship. This resulted in a net loss of $2,006,393, or -$0.27 per diluted share, for the three months ended December 31, 2023. This compares to net income of $1,318,378 or $0.18 per diluted share, for the linked quarter and net income of $2,861,939 or $0.39 per diluted share for the three months ended December 31, 2022. Net income for the full year 2023, was $2,318,695 or $0.32 per diluted share, compared to $10,563,572 or $1.45 per diluted share for the full year 2022. Pre-provision, pretax income for the full year 2023 was $7,909,843 compared to pre-provision, pretax income of $14,501,159 for the full year 2022. Despite the loss in the fourth quarter, tangible book value per share² increased by 2.70% during the quarter and by 2.01% in 2023.

Joseph J. Thomas, President, and CEO, commented, "We are disappointed with the bottom-line results in the fourth quarter that were negatively impacted by the resolution of our single, legacy non-accrual relationship where we were the victim of an apparent fraud by the borrower. Given current industry trends, we also decided to take a number of proactive steps to ensure that we accelerate improvement in asset quality and earnings in 2024. However, we are encouraged by the Company's underlying operating performance in the fourth quarter that demonstrated positive momentum as we increased pre-tax pre-provision earnings by 17.4% as compared to the third quarter, driven by net interest margin expansion of 3 basis points to 2.62% and an increase in non-interest income increase of 25.62% compared to the linked quarter. As a result, and even with an after-tax loss in the quarter, we increased tangible book value per share by an annualized rate of 10.8% to $10.64 per share on December 31, 2023, aided by a reduction in AOCI in the quarter, which we expect to accelerate in 2024 based upon our proactive actions and performance trends in the fourth quarter."

Fourth Quarter and Full Year 2023 Highlights include:

• The Company posted a loss of $2,006,393 or -$0.27 per diluted share in the fourth quarter compared to net income of $1,318,378 or $0.18 per diluted share in the linked quarter and net income of $2,861,939 or $0.39 per diluted share for the three months ending December 31, 2022.
• The Company posted pre-provision, pretax income of $2,031,758 compared to pre-provision, pretax income of $1,730,376 in the prior quarter, representing an increase of 17.42% during that period. The Company recognized a provision for loan losses of $4,751,441 in the fourth quarter, largely related to a single relationship. As a result, the Company posted a loss of $2,006,393 or -$0.27 per diluted share in the fourth quarter compared to net income of $1,318,378 or $0.18 per diluted share in the linked quarter and net income of $2,861,939 or $0.39 per diluted share for the three months ending December 31, 2022.
• Net income for the full year 2023 was $2,318,695 or $0.32 per diluted share compared to net income of $10,563,572 or $1.45 per diluted share for the full year 2022.
• Return on Average Assets ("ROAA") was -0.73% for the quarter ended December 31, 2023, compared to 0.49% for the linked quarter and 1.17% for the three months ended December 31, 2022. ROAA for the full year 2023 was 0.22% compared to 1.16% for the full year 2022.
• Return on Average Equity ("ROAE") was -10.51% for the three months ended December 31, 2023, compared to 6.75% for the linked quarter and 15.51% for the three months ended December 31, 2022. ROAE for the full year 2023 was 3.01% compared to 13.55% for the full year 2022.
• Total Assets were $1.08 billion on December 31, 2023, an increase of $99.60 million or 10.11% from total assets on December 31, 2022.
• Loans held-for-investment (excluding PPP loans) increased by $13.62 million or 1.80% during the quarter and by $75.31 million or 10.85% for the full year 2023 on continued strong portfolio loan growth.
• Uninsured deposits⁵ were 25.65% of total deposits and total available secured liquidity was 130.30% of uninsured deposits on December 31, 2023.
• Tangible book value per share² increased by 2.70% during the fourth quarter and by 2.01% in 2023. The tangible common equity ratio (adjusted for unrealized losses on held-to-maturity securities) was at 7.12% at the end of the quarter.
• Total deposits decreased by $5.30 million or by 0.59% in the fourth quarter and increased by $72.06 million or 8.49% for the full year 2023. Non-interest-bearing demand deposits decreased by $24.15 million from the linked quarter to $143.96 million and were lower by $43.46 million for the full year 2023 and represented 15.63% of total deposits on December 31, 2023.
• The net interest margin³ increased in the fourth quarter to 2.62%, higher by 3 basis points compared to the linked quarter and lower by 87 basis points compared to the same period in 2022. The increase in the net interest margin across linked quarters was primarily due to increases in the yield on earning assets that more than offset the increase in funding costs during the fourth quarter.
• The cost of funds was 3.50% for the fourth quarter, higher by 14 basis points compared to the linked quarter and higher by 181 basis points compared to the same period in 2022, as deposit costs increased, partially offset by income from balance sheet hedges.
• Non-interest income increased by 25.62% compared to the linked quarter and decreased by 5.68% compared to the same period in 2022. Non-interest income in the full year 2023 was lower by 31.65% compared to the prior year. The increase in non-interest income in the fourth quarter of 2023 compared to the linked quarter was primarily due to higher operating income related to SBIC investments, while the decrease in non-interest income relative to the calendar quarter was due to lower gain-on-sale revenue from mortgage and SBA loans, as continued market volatility and higher yields, led to the Company electing to retain more mortgage and SBA loans on the balance sheet in 2023. The decrease in non-interest income in 2023 was primarily due to lower mortgage revenue stemming from a slowdown in mortgage activity in 2023 resulting from higher rates and tight housing inventory, compared to the prior year, as well as lower gain-on-sale revenue from SBA loans. Premiums in the secondary market were lower in 2023, which led to more SBA loan originations being retained on the balance sheet.
• Non-interest expense in the fourth quarter increased by 2.69% compared to the linked quarter and increased by 7.13% compared to the same period in 2022. The increase in non-interest expense for linked and calendar quarters, was primarily due to a combination of higher expenses related to legal fees and charge offs of receivables related to loans that were in workout.
• The Efficiency Ratio⁴ was 73.93% for the quarter ended December 31, 2023, compared to 76.43% for the linked quarter and 58.44% for the same period in 2022. The Efficiency Ratio for the full year 2023 was 74.56% compared to 61.11% for the full year 2022.
• Net charge offs increased in the fourth quarter and were 0.19% of average loans. The ratio of non-accrual loans to loans held-for-investment was 1.72% on December 31, 2023, compared to 1.23% on December 31, 2022. The ratio of non-performing assets to total assets was 1.22% on December 31, 2023, compared to 0.88% on December 31, 2022.
• The Company recognized a $4,751,441 provision for loan losses during the fourth quarter and the ratio of the allowance for credit losses to loans held-for-investment was 1.37% compared to 0.95% in the linked quarter. The provision and increase in non-performing assets were largely related to a single relationship.
• The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.26%, Common Equity Tier 1 ratio of 12.65%, Tier 1 Risk Based Capital ratio of 12.65% and a Total Capital ratio of 13.82%.

Net Interest Income
The Company recorded net interest income of $6.77 million for the fourth quarter of 2023, higher by 3.71% compared to the linked quarter, and lower by 16.62% compared to the same period in 2022. The net interest margin in the fourth quarter of 2023 was 2.62%, higher by 3 basis points compared to the linked quarter and lower by 87 basis points compared to the same period in 2022. The net interest margin for the full year 2023 was 2.77%, lower by 86 basis points compared to 2022.

The following factors contributed to the changes in net interest margin during the fourth quarter of 2023 compared to the linked and calendar quarters.

• Yields on average earning assets increased to 5.99% compared to 5.83% in the linked quarter and 5.11% in the calendar quarter. Higher yields on investment securities and loans drove the increase in yields on earning assets.
• Loan yields increased by 9 basis points to 6.29% from 6.20% in the linked quarter, while yields on investment securities increased by 29 basis points to 5.10% from 4.81% in the linked quarter. Loan yields increased by 82 basis points, while yields on investment securities increased by 99 basis points compared to the calendar quarter. Repricing of loans and securities in the higher rate environment was the primary reason for higher yields on these asset categories.
• Cost of funds increased by 14 basis points to 3.50% from 3.36% in the linked quarter, and by 181 basis points compared to the calendar quarter, primarily due to rising rates on interest checking, money market and time deposit accounts and a decrease in non-interest-bearing deposits. The increase in deposit expense was partially offset by interest income from balance sheet hedges, in the form of interest rate swaps, whereby the bank pays a fixed rate and receives the Federal Funds effective rate for the duration of the swaps. The notional amount of the interest rate swaps was $80 million with a weighted average remaining term of 3.01 years, as of December 31, 2023.

The following factors contributed to the changes in net interest margin during the full year 2023 compared to the prior year:

• Yields on average earning assets increased by 126 basis points to 5.73% compared to 4.47% in the prior year, driven by higher yields on loans, investments, and interest earning cash balances.
• Loan yields increased by 104 basis points to 6.07% from 5.03% in the prior year, while yields on investment securities increased by 155 basis points to 4.75% from 3.20% in the prior year.
• Cost of funds increased by 220 basis points to 3.09%, from 0.89% in the prior year, on higher deposit and borrowing costs.

Non-interest Income
Non-interest income was $1.03 million for the fourth quarter, an increase of 25.62% when compared to the linked quarter and a decrease of 5.68% when compared to the same period in 2022. Non-interest income in 2023 was lower by 31.65% compared to the prior year. The increase in non-interest income in the fourth quarter of 2023 compared to the linked quarter was primarily due to higher operating income related to SBIC investments, while the decrease in non-interest income relative to the calendar quarter was due to lower gain-on-sale revenue from mortgage and SBA loans, as continued market volatility and higher yields, led to the Company electing to retain more mortgage and SBA loans on the balance sheet in 2023. The decrease in non-interest income in 2023 was primarily due to lower mortgage revenue stemming from a slowdown in mortgage activity in 2023 resulting from higher rates and tight housing inventory, compared to the prior year, as well as lower gain-on-sale revenue from SBA loans. Premiums in the secondary market were lower in 2023, which led to more SBA loan originations being retained on the balance sheet.

Total Revenue⁶ 
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 6.16% compared to the linked quarter and lower by 15.32% compared to the calendar quarter in 2022. The increase in revenue compared to the linked quarter was primarily due to an increase in the net interest margin and higher non-interest income during the fourth quarter. The lower revenue compared to the calendar quarter was due to a combination of lower net interest income, resulting from net interest margin compression, as well as a decline in non-interest income stemming from a combination of reduced mortgage and SBA loan activity and the Company electing to hold more mortgage and SBA loans on its balance sheet in 2023.

Total revenue for the full year 2023 was lower by 16.63% compared to 2022, primarily due to margin compression related to higher funding costs and lower non-interest income, also related to a decline in mortgage activity and the Company electing to hold more mortgage and SBA loans on its balance sheet, compared to the prior year.

Non-interest Expense
Non-interest expense in the fourth quarter increased by 2.69% compared to the linked quarter and increased by 7.13% compared to the same period in 2022. The increase in non-interest expense for linked and calendar quarters, was primarily due to a combination of higher expenses related to legal fees and charge offs of receivables related to loans that were in workout. Non-interest expense for the full year 2023 were higher by 1.72% compared to the prior year.

The Efficiency Ratio was 73.93% for the quarter ended December 31, 2023, compared to 76.43% for the linked quarter and 58.44% for the same period in 2022. The Efficiency Ratio for the full year 2023 was 74.56% compared to 61.11% for the full year 2022.

Asset Quality
Non-accrual loans increased in the fourth quarter to $13,209,892 or 1.72% of loans held-for-investment compared to $6,947,841 or 0.92% of loans held-for-investment at the end of the linked quarter. As of December 31, 2023, there were no loans that were 90 days or more past due and accruing. There was no Other Real Estate Owned ("OREO") on the balance sheet as of December 31, 2023. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, and OREO assets) were $13,209,892 or 1.22% of total assets as of December 31, 2023, compared to $6,947,841 or 0.66% of total assets, at the end of the linked quarter.

Following an assessment of the collectability of the loans held-for-investment at the end of the fourth quarter, it was determined that a $4,751,441 provision for loan losses was necessary due to apparent fraud and collateral deficiencies on one large non-accrual relationship and to account for loan growth and changes to environmental factors. The Company booked a provision of $205,000 in the third quarter of 2023.

With respect to the non-accrual relationship, the bank provided five loans amounting to more than $9.0 MM to the borrower for two businesses and one commercial real estate property starting in January 2020, the largest of which is an office building in Suitland, Maryland. A protracted debtor interrogatory process was exacerbated by a bankruptcy petition that was recently dismissed, misappropriation of funds, material misrepresentations and inaccurate documents.

Only two loans remain following the sale of related collateral, one of the loans has a pending sales contract on underlying collateral, and the remaining loan is undergoing a substitute trustee sale of the office building. In the fourth quarter, we charged off $1,103,015 related to deficiencies in collateral sales of the business loans and recorded a specific reserve of $2,627,748 related to the real estate loan in advance of the trustee sale. We have taken appropriate steps as a bank with respect to our rights under these loans and have also filed notice of a potential claim with our Fidelity Bond provider.

The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 1.37% as of December 31 2023, compared to the ratio of Allowance for Loan and Lease Losses to loans held-for-investment of 1.09% as of December 31, 2022.

Total Assets
Total assets as of December 31, 2023, were $1.08 billion compared to $1.06 billion on September 30, 2023, and total assets of $985.06 million on December 31, 2022. Changes in major asset categories since December 31, 2022, were as follows:

• Interest bearing deposits at banks decreased by $10.87 million on funding of strong loan growth.
• Available for sale investment balances increased by $29.70 million.
• Other loans held-for investment grew by $75.31 million

Total Liabilities
Total liabilities as of December 31, 2023, were $1,007.44 million compared to total liabilities of $983.40 million on September 30, 2023, and $910.12 million on December 31, 2022. Total deposits were $921.06 million on December 31, 2023, compared to $926.36 million on September 30, 2023, and total deposits of $848.90 million as of December 31, 2022. Non-interest-bearing demand deposits decreased by $24.15 million during the fourth quarter and comprised 15.63% of total deposits at the end of the fourth quarter. Other interest-bearing demand deposits increased by $20.14 million, savings deposits were relatively unchanged and time deposits decreased by $1.36 million during the quarter. Federal Home Loan Bank borrowings increased by $15 million during the quarter as did borrowings from the Federal Reserve Bank of Richmond.

Stockholders' Equity and Capital
Stockholders' equity as of December 31, 2023 was $77.23 million compared to $75.57 million on September 30, 2023, and $74.95 million as of December 31, 2022. The increase was due to Accumulated Other Comprehensive Income ("AOCI"), which generally comprises unrealized gains and losses on available-for-sale securities and derivative positions. AOCI increased during the fourth quarter of 2023 due to a decline in unrealized losses related to available-for-sale securities. The tangible book value of the Company's common stock on December 31, 2023, was $10.64 per share compared to $10.43 per share on December 31, 2022. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on December 31, 2023, was $13.09 per share compared to $12.87 per share on December 31, 2022.

As of December 31, 2023, the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of December 31, 2023, and December 31, 2022, were as follows:

	December 31, 2023	December 31, 2022
Total Capital Ratio	13.82 %	14.28 %
Tier 1 Capital Ratio	12.65 %	13.37 %
Common Equity Tier 1 Capital Ratio	12.65 %	13.37 %
Leverage Ratio	10.26 %	11.32 %

About Freedom Financial Holdings, Inc.

Freedom Financial Holdings, Inc. is the holding company of The Freedom Bank of Virginia, a community bank with locations in Fairfax, Reston, Chantilly, Vienna, and Manassas, Virginia. The Freedom Bank of Virginia also has an SBA division headquartered in Harrison, NY. For information about deposits, loans and other services, visit the website at www.freedom.bank.

Forward Looking Statements

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of COVID-19 and the impact of geopolitical conflicts, such as the war between Russia and Ukraine; adverse developments in the financial services industry such as the recent bank failures; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for loan and lease losses; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Company may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance. Some of the financial tables in this document reflect classifications to accounts to improve consistency in financial reporting.

	FREEDOM FINANCIAL HOLDINGS
	CONSOLIDATED BALANCE SHEETS
	(Unaudited)		(Unaudited)			(Audited)
	December 31,		September 30,			December 31,
	2023		2023			2022
ASSETS
Cash and Due from Banks	$                                    2,442,050		$                                    1,916,716			$                                       2,099,062
Interest Bearing Deposits with Banks	21,806,078		12,880,986			32,674,953
Securities Available-for-Sale	211,263,518		206,038,021			181,558,037
Securities Held-to-Maturity	20,114,269		20,598,991			17,096,010
Restricted Stock Investments	4,769,900		4,057,450			3,889,200
Loans Held for Sale	6,663,929		3,487,878			5,064,385
PPP Loans Held for Investment	259,794		278,090			5,829,662
Other Loans Held for Investment	769,484,088		755,863,604			694,173,347
Allowance for Credit Losses	(10,519,335)		(7,214,359)			(7,614,120)
Net Loans	759,224,547		748,927,335			692,388,889
Bank Premises and Equipment, net	878,957		910,365			989,072
Accrued Interest Receivable	3,721,730		3,699,397			3,784,076
Deferred Tax Asset	7,954,018		8,750,083			1,982,776
Bank-Owned Life Insurance	26,731,339		26,539,551			26,248,974
Right of Use Asset, net	1,987,075		2,097,713			1,736,285
Other Assets	17,110,642		19,068,451			15,551,415
Total Assets	$                             1,084,668,051		$                             1,058,972,938			$                                   985,063,133
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand Deposits
Non-interest Bearing	$                                143,956,306		$                                168,104,722			$                                   187,416,628
Interest Bearing	519,339,202		499,194,764			409,760,573
Savings Deposits	4,120,770		4,060,321			5,977,828
Time Deposits	253,641,860		255,000,491			245,840,048
Total Deposits	921,058,138		926,360,299			848,995,078
Federal Home Loan Bank Advances	35,000,000		20,000,000			25,000,000
Other Borrowings	15,270,576		278,090			5,826,298
Subordinated Debt (Net of Issuance Costs)	19,752,719		19,753,237			19,674,794
Accrued Interest Payable	2,842,646		2,291,470			1,265,796
Lease Liability	1,925,672		2,036,523			1,862,773
Other Liabilities	11,590,247		12,680,286			13,060,825
Total Liabilities	$                             1,007,439,998		$                                983,399,904			$                                   915,685,564
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized:
0 Shares Issued and Outstanding, December 31, September 30, and December 31, 2022
Common Stock, $0.01 Par Value, 25,000,000 Shares:
23,000,000 Shares Voting and 2,000,000 Shares Non-voting.
Voting Common Stock:
6,582,677, 6,619,677, and 6,583,328 Shares Issued and Outstanding
at December 31, September 30 2023, and December 31, 2022 respectively
(Includes 88,993, 94,343, and 72,069 Unvested Shares on December 31, 2023, September 30, 2023,
and December 31, 2022 respectively)	64,937		65,253			65,160
Non-Voting Common Stock:
673,000, 673,000, 673,000 Shares Issued and Outstanding at December 31, 2023, September 30, 2023,
and December 31, 2022 respectively)	6,730		6,730			6,730
Additional Paid-in Capital	58,320,419		58,541,534			58,241,451
Accumulated Other Comprehensive Income, Net	(17,715,015)		(21,597,860)			(17,480,993)
Retained Earnings	36,550,983		38,557,376			34,113,783
Total Stockholders' Equity	77,228,054		75,573,033			74,946,131
Total Liabilities and Stockholders' Equity	$                             1,084,668,051		$                             1,058,972,938			$                                   985,063,133

 

		FREEDOM FINANCIAL HOLDINGS
		CONSOLIDATED STATEMENTS OF OPERATIONS
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
		For the three		For the three		For the twelve		For the twelve
		months ended		months ended		months ended		months ended
		December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Interest Income
Interest and Fees on Loans		$                       12,076,745		$                         9,503,228		$                       44,430,123		$                           32,213,808
Interest on Investment Securities		2,933,870		2,061,298		10,352,686		6,111,756
Interest on Deposits with Other Banks		502,411		339,592		1,738,669		601,382
Total Interest Income		15,513,026		11,904,118		56,521,478		38,926,946
Interest Expense
Interest on Deposits		8,108,762		3,450,103		27,605,539		6,171,984
Interest on Borrowings		634,972		336,525		1,724,125		1,167,032
Total Interest Expense		8,743,734		3,786,628		29,329,664		7,339,016
Net Interest Income		6,769,291		8,117,490		27,191,814		31,587,930
Provision for Loan Losses		(4,751,441)		(327,000)		(5,737,441)		(1,248,000)
Net Interest Income After
Provision for Loan Losses		2,017,850		7,790,490		21,454,373		30,339,930
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue		467,874		357,654		2,086,881		3,091,941
SBA Gain-on-Sale Revenue		-		404,409		-		997,967
Service Charges and Other Income		326,205		92,245		674,784		622,369
Gain on Sale of Securities		-		20,503		-		30,972
Servicing Income		39,525		53,322		226,734		218,190
Swap Fee Income		-		-		-		68,404
Increase in Cash Surrender Value of Bank-
owned Life Insurance		191,788		158,972		906,943		669,094
Total Non-interest Income		1,025,392		1,087,105		3,895,342		5,698,937
Total Revenue		7,794,683		9,204,595		31,087,156		37,286,867
Non-Interest Expenses
Officer and Employee Compensation
and Benefits		3,293,628		3,495,260		14,322,882		15,160,439
Occupancy Expense		191,674		318,462		746,494		1,266,050
Equipment and Depreciation Expense		212,999		179,679		756,758		705,170
Insurance Expense		237,133		140,926		805,468		363,099
Professional Fees		524,328		238,732		1,565,129		1,062,306
Data and Item Processing		323,605		304,767		1,323,244		1,212,233
Advertising		116,107		124,450		473,676		448,904
Franchise Taxes and State Assessment Fees		313,043		282,796		1,190,263		990,442
Mortgage Fees and Settlements		36,328		23,156		320,197		355,710
Other Operating Expense		514,081		271,395		1,673,201		1,221,355
Total Non-interest Expenses		5,762,926		5,379,622		23,177,313		22,785,708
Income Before Income Taxes		(2,719,684)		3,497,972		2,172,403		13,253,159
Income Tax Expense/(Benefit)		(713,291)		636,033		(146,293)		2,689,588
Net Income		$                             (2,006,393)		$                               2,861,939		$                               2,318,696		$                             10,563,572
Earnings per Common Share - Basic		$                                      (0.27)		$                                        0.40		$                                        0.32		$                                        1.45
Earnings per Common Share - Diluted		$                                      (0.27)		$                                        0.39		$                                        0.32		$                                        1.45
Weighted-Average Common Shares
Outstanding - Basic		7,335,949		7,238,807		7,292,638		7,285,726
Weighted-Average Common Shares
Outstanding - Diluted		7,361,422		7,252,669		7,320,455		7,307,659
Efficiency Ratio		73.93 %		58.44 %		74.56 %		61.11 %

 

 

	FREEDOM FINANCIAL HOLDINGS
	CONSOLIDATED STATEMENTS OF OPERATIONS
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)
	For the three		For the three		For the three		For the three			For the three
	months ended		months ended		months ended		months ended			months ended
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023			December 31, 2022
Interest Income
Interest and Fees on Loans	$                      12,076,745		$                      11,513,273		$                      10,857,368		$                        9,982,737			$                        9,503,228
Interest on Investment Securities	2,933,870		2,730,411		2,522,682		2,165,723			2,061,298
Interest on Deposits with Other Banks	502,411		471,031		464,321		300,906			339,592
Total Interest Income	15,513,026		14,714,715		13,844,371		12,449,366			11,904,118
Interest Expense
Interest on Deposits	8,108,762		7,829,199		6,796,570		4,871,008			3,685,412
Interest on Borrowings	634,972		359,191		350,096		379,866			101,216
Total Interest Expense	8,743,734		8,188,390		7,146,666		5,250,874			3,786,628
Net Interest Income	6,769,292		6,526,324		6,697,705		7,198,492			8,117,490
Provision for Loan Losses	(4,751,441)		(205,000)		(238,000)		(543,000)			(327,000)
Net Interest Income after
Provision for Loan Losses	2,017,851		6,321,324		6,459,705		6,655,492			7,790,490
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue	467,874		470,800		769,649		378,558			357,654
SBA Gain-on-Sale Revenue	-		-		-		-			404,409
Service Charges and Other Income	326,205		99,563		94,428		154,588			92,235
Gains on Sale of Securities	-		-		-		-			20,503
Servicing Income	39,525		57,106		64,688		65,415			53,332
Swap Fee Income	-		-		-		-			-
Increase in Cash Surrender Value of Bank-
owned Life Insurance	191,788		188,781		183,235		343,140			158,972
Total Non-interest Income	1,025,392		816,250		1,112,000		941,701			1,087,106
Total Revenue5	$                        7,794,684		$                        7,342,574		$                       7,809,705		$                        8,140,192			$                        9,204,596
Non-Interest Expenses
Officer and Employee Compensation
and Benefits	3,293,628		3,410,564		3,469,477		4,149,212			3,495,260
Occupancy Expense	191,674		188,413		38,488		327,919			318,462
Equipment and Depreciation Expense	212,999		213,363		148,901		181,495			179,679
Insurance Expense	237,133		276,713		136,555		155,068			140,926
Professional Fees	524,328		365,316		325,405		350,080			238,732
Data and Item Processing	323,605		355,733		323,906		320,000			304,767
Advertising	116,107		105,183		133,907		118,479			124,450
Franchise Taxes and State Assessment Fees	313,043		304,432		290,049		282,739			282,796
Mortgage Fees and Settlements	36,328		83,250		141,333		59,286			23,156
Other Operating Expense	514,081		309,231		382,577		467,311			271,396
Total Non-interest Expenses	5,762,926		5,612,199		5,390,599		6,411,589			5,379,623
Income before Income Taxes	(2,719,684)		1,525,376		2,181,106		1,185,604			3,497,972
Income Tax Expense	(713,291)		206,998		411,031		(51,031)			636,033
Net Income	$                       (2,006,393)		$                        1,318,378		$                        1,770,075		$                        1,236,635			$                        2,861,939
Earnings per Common Share - Basic	$                                (0.27)		$                                 0.18		$                                 0.24		$                                 0.17			$                                 0.40
Earnings per Common Share - Diluted	$                                (0.27)		$                                 0.18		$                                 0.24		$                                 0.17			$                                 0.39
Weighted-Average Common Shares
Outstanding - Basic	7,335,949		7,277,022		7,307,802		7,280,803			7,238,807
Weighted-Average Common Shares
Outstanding - Diluted	7,361,422		7,293,482		7,317,113		7,317,805			7,252,669

 

Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
		Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended
		December 31, 2023						September 30, 2023						June 30, 2023						March 31, 2023						December 31, 2022
		Average Balance		Income/ Expense		Yield		Average Balance		Income/ Expense		Yield		Average Balance		Income/ Expense		Yield		Average Balance		Income/ Expense		Yield		Average Balance		Income/ Expense		Yield
Assets
Cash		$                                       36,921,568		$           502,411		5.40 %		$                                       38,989,836		$           471,031		4.79 %		$                                       36,370,275		$           464,321		5.12 %		$                                       31,062,495		$           300,906		3.93 %		$                                       35,596,385		$           339,592		3.78 %
Investments (Tax Exempt)		20,012,255		195,353				20,763,539		197,591				21,202,088		187,739				21,182,371		182,470				20,664,285		184,800
Investments (Taxable)		211,208,265		2,779,541				208,005,473		2,574,314				197,080,849		2,374,368				184,686,055		2,021,572				182,096,499		1,915,306
Total Investments		231,220,520		2,974,894		5.10 %		228,769,012		2,771,905		4.81 %		218,282,937		2,562,107		4.71 %		205,868,426		2,204,042		4.34 %		202,760,784		2,100,106		4.11 %
Total Loans		761,583,960		$12,076,745		6.29 %		736,781,506		11,513,273		6.20 %		726,201,568		10,857,368		6.00 %		703,610,368		9,982,737		5.75 %		689,158,712		9,503,228		5.47 %
Earning Assets		1,029,726,048		15,554,050		5.99 %		1,004,540,354		14,756,209		5.83 %		980,854,780		13,883,796		5.68 %		940,541,289		12,487,685		5.38 %		927,515,881		11,942,926		5.11 %
Assets		$                                  1,084,945,735						$                                  1,062,975,635						$                                  1,035,350,077						$                                     988,804,262						$                                     969,662,029
Liabilities
Interest Checking		$                                     221,430,570		$        2,364,166		4.24 %		$                                     213,956,322		$        2,130,491		3.95 %		$                                     197,224,144		$        1,892,301		3.85 %		$                                     154,625,978		$        1,320,093		3.46 %		$                                     130,004,364		$           862,014		2.63 %
Money Market		288,937,873		2,738,774		3.76 %		289,350,365		3,130,570		4.29 %		282,452,498		2,308,846		3.28 %		261,801,221		2,036,801		3.16 %		240,285,109		1,383,701		2.28 %
Savings		4,155,974		1,238		0.12 %		4,344,566		1,310		0.12 %		5,678,056		1,586		0.11 %		6,935,212		2,326		0.14 %		6,108,935		3,067		0.20 %
Time Deposits		258,903,945		3,004,586		4.60 %		248,550,686		2,566,827		4.10 %		239,305,940		2,593,837		4.35 %		248,679,942		1,511,787		2.47 %		261,984,431		1,436,630		2.18 %
Interest Bearing Deposits		773,428,362		8,108,764		4.16 %		756,201,939		7,829,198		4.11 %		724,660,638		6,796,570		3.76 %		672,042,353		4,871,007		2.94 %		638,382,839		3,685,412		2.29 %
Borrowings		$                                       56,817,293		$           634,972		4.43 %		$                                       40,480,346		$           359,191		3.52 %		$                                       45,865,355		$           350,096		3.06 %		$                                       49,125,142		$           379,866		3.14 %		$                                       46,940,688		$           101,216		0.86 %
Interest Bearing Liabilities		830,245,656		8,743,736		4.18 %		796,682,285		8,188,389		4.08 %		770,525,994		7,146,666		3.72 %		721,167,495		5,250,873		2.95 %		685,323,527		3,786,628		2.19 %
Non Interest Bearing Deposits		$                                     161,836,675						$                                     169,935,416						$                                     169,160,626						$                                     176,477,412						$                                     202,342,666
Cost of Funds						3.50 %						3.36 %						3.05 %						2.37 %						1.69 %
Net Interest Margin2				$       6,810,314		2.62 %				$        6,567,819		2.59 %				$       6,737,130		2.76 %				$       7,236,812		3.12 %				$        8,156,298		3.49 %
Shareholders Equity		$                                       75,770,938						$                                       77,445,100						$                                       77,557,760						$                                       76,928,018						$                                       73,185,633
2 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets

 

Average Balances, Income and  Expenses, Yields and Rates
(Unaudited)
	Three Months Ended						Three Months Ended								Twelve Months Ended						Twelve Months Ended
	December 31, 2023		Income /				December 31, 2022		Income /						December 31, 2023		Income /				December 31, 2022		Income /
	Average Balance		Expense		Yield		Average Balance		Expense		Yield				Average Balance		Expense		Yield		Average Balance		Expense		Yield
Assets
Cash	$              36,921,568		$       502,411		5.40 %		$              35,596,385		$       339,592		3.78 %				$                35,860,736		$   1,738,669		4.85 %		$                37,130,721		$       601,382		1.62 %
Investments (Tax Exempt)	20,012,255		195,353				20,664,285		184,800						20,786,785		763,153				21,944,446		746,561
Investments (Taxable)	211,208,265		2,779,541				182,096,499		1,915,306						200,339,079		9,749,795				173,825,855		5,521,973
Total Investments	231,220,520		2,974,894		5.10 %		202,760,784		2,100,106		4.11 %				221,125,864		10,512,948		4.75 %		195,770,302		6,268,534		3.20 %
Total Loans	761,583,960		12,076,745		6.29 %		689,158,712		9,503,228		5.47 %				732,216,161		44,430,123		6.07 %		640,902,781		32,213,808		5.03 %
Earning Assets	1,029,726,048		15,554,050		5.99 %		927,515,881		11,942,926		5.11 %				989,202,761		56,681,740		5.73 %		873,803,804		39,083,724		4.47 %
Assets	$         1,084,945,735						$            969,662,029								$           1,043,519,071						$              914,277,631
Liabilities
Interest Checking	$            221,430,570		$   2,364,166		4.24 %		$            130,004,364		$       862,014		2.63 %				$              197,028,897		$   7,707,052		3.91 %		$              126,903,635		$   1,503,592		1.18 %
Money Market	288,937,873		2,738,774		3.76 %		240,285,109		1,383,701		2.28 %				280,744,073		9,466,984		3.37 %		215,044,593		2,235,231		1.04 %
Savings	4,155,974		1,238		0.12 %		6,108,935		3,067		0.20 %				5,268,279		6,460		0.12 %		6,928,902		9,059		0.13 %
Time Deposits	258,903,945		3,004,586		4.60 %		261,984,431		1,436,630		2.18 %				248,887,291		10,425,044		4.19 %		210,385,871		2,764,742		1.31 %
Interest Bearing Deposits	773,428,362		8,108,762		4.16 %		638,382,841		3,685,412		2.29 %				731,928,540		27,605,540		3.77 %		559,263,001		6,512,624		1.16 %
Borrowings	$              56,817,293		634,972		4.43 %		$              46,940,688		101,216		0.86 %				$                48,072,327		1,724,125		3.59 %		$                56,924,498		826,392		1.45 %
Interest Bearing Liabilities	830,245,656		8,743,736		4.18 %		685,323,529		3,786,628		2.19 %				780,000,868		29,329,665		3.76 %		616,187,499		7,339,016		1.19 %
Non Interest Bearing Deposits	$            161,836,675						$            202,342,666								$              169,314,018						$              210,860,915
Cost of Funds					3.50 %						1.69 %								3.09 %						0.89 %
Net Interest Margin2			$   6,810,314		2.62 %				$    8,156,298		3.49 %						$ 27,352,075		2.77 %				$ 31,744,708		3.63 %
Shareholders Equity	$              75,770,938						$              73,185,633								$                76,923,708						$                77,978,391
ROAA	-0.73 %						1.17 %								0.22 %						1.16 %
ROAE	-10.51 %						15.51 %								3.01 %						13.55 %
2 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets

 

Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios	December 31, 2023	September 30, 2023	June 30, 2023	March 31, 2023	December 31, 2022
Loans held-for-investment to Deposits	83.57 %	81.63 %	80.45 %	81.18 %	82.45 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA)	-0.73 %	0.49 %	0.69 %	0.51 %	1.17 %
Return on Average Equity (ROAE)	-10.51 %	6.75 %	9.15 %	6.52 %	15.51 %
Efficiency Ratio3	73.93 %	76.43 %	69.02 %	78.76 %	58.44 %
Net Interest Margin2	2.62 %	2.59 %	2.76 %	3.12 %	3.49 %
Yield on Average Earning Assets	5.99 %	5.83 %	5.68 %	5.38 %	5.11 %
Yield on Securities	5.10 %	4.81 %	4.71 %	4.34 %	4.11 %
Yield on Loans	6.29 %	6.20 %	6.00 %	5.75 %	5.47 %
Cost of Funds	3.50 %	3.36 %	3.05 %	2.37 %	1.69 %
Noninterest income to Total Revenue	13.16 %	11.12 %	14.24 %	11.57 %	11.81 %
Liquidity Ratios4
Uninsured Deposits to Total Deposits	25.65 %	28.10 %	25.78 %	21.77 %	27.05 %
Total Liquidity6 to Uninsured Deposits	130.30 %	120.27 %	120.82 %	149.16 %	127.88 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	258.25 %	345.53 %	213.43 %	206.92 %	190.69 %
Tangible Common Equity Ratio	7.12 %	7.14 %	7.43 %	7.62 %	7.61 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)	6.88 %	6.83 %	7.16 %	7.38 %	7.36 %
Available -for-Sale securities (as % of total securities)	91.31 %	90.96 %	90.41 %	91.89 %	91.39 %
Per Share Data
Tangible Book Value	$10.64	$10.36	$10.75	$10.71	$10.43
Tangible Book Value (ex AOCI)1	$13.09	$13.32	$13.29	$13.02	$12.87
Share Price Data
Closing Price	$10.42	$10.61	$10.56	$13.95	$14.57
Book Value Multiple	98 %	102 %	98 %	130 %	140 %
Common Stock Data
Outstanding Shares at End of Period	7,255,677	7,292,677	7,296,845	7,214,466	7,256,328
Weighted Average shares outstanding, basic	7,335,949	7,277,022	7,307,802	7,280,803	7,238,807
Weighted Average shares outstanding, diluted	7,361,422	7,293,482	7,317,113	7,317,805	7,252,669
Capital Ratios (Bank Only)
Tier 1 Leverage ratio	10.26 %	10.64 %	10.99 %	11.30 %	11.32 %
Common Equity Tier 1 ratio	12.65 %	13.26 %	13.52 %	13.47 %	13.37 %
Tier 1 Risk Based Capital ratio	12.65 %	13.26 %	13.52 %	13.47 %	13.37 %
Total Risk Based Capital ratio	13.82 %	14.10 %	14.37 %	14.34 %	14.28 %
Credit Quality
Net Charge-offs to Average Loans	0.19 %	0.03 %	0.04 %	0.06 %	0.02 %
Total Non-performing Loans to loans held-for-investment	1.72 %	0.92 %	0.93 %	0.96 %	1.23 %
Total Non-performing Assets to Total Assets	1.22 %	0.66 %	0.65 %	0.67 %	0.88 %
Nonaccrual Loans to loans held-for-investment	1.72 %	0.92 %	0.93 %	0.96 %	1.23 %
Provision for Loan and Lease Losses	$4,751,441	$205,000	$238,000	$543,000	$327,000
Allowance for Loan and Lease Losses to net loans held-for-investment	1.37 %	0.95 %	0.98 %	1.01 %	1.09 %
Allowance for Loan and Lease Losses to net loans held-for-investment (ex PPP loans)	1.37 %	0.95 %	0.98 %	1.02 %	1.10 %
2 Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets
6 Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve and the Federal Home Loan Bank.

 

	FREEDOM FINANCIAL HOLDINGS, INC. CONSOLIDATED SELECTED FINANCIAL DATA RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES:
1 Pre-Provision, Pretax Income	Quarter Ending
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		Year Ending
											December 31, 2023		December 31, 2022
Net Income (GAAP)	$                (2,006,393)		$                 1,318,378		$        1,770,075		$        1,236,635		$               2,861,939		$                2,318,696		$              10,563,572
+ Income Tax Expense	(713,291)		206,998		411,031		(51,031)		636,033		(146,293)		2,689,588
Pretax Income	(2,719,684)		1,525,376		2,181,106		1,185,604		3,497,972		2,172,403		13,253,159
+ Provision for Loan Losses	(4,751,441)		(205,000)		(238,000)		(543,000)		(327,000)		(5,737,441)		(1,248,000)
Pre-Provision, Pretax Income	2,031,757		1,730,376		2,419,106		1,728,604		3,824,972		7,909,844		14,501,159
2 Tangible Book Value (ex-AOCI) (non-GAAP)	Quarter Ending
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Shareholder's Equity	$               77,228,054		$               75,573,033		$      77,399,123		$      77,256,026		$             74,946,131
Outstanding Shares at End of Period	7,255,677		7,292,677		7,197,834		7,214,466		7,184,259
Tangible Book Value (GAAP)	$                        10.64		$                        10.36		$               10.75		$               10.71		$                      10.43
Accumulated Other Comprehensive Income (Net) (AOCI)	$              (17,715,015)		$              (21,597,860)		$     (18,280,904)		$     (16,644,981)		$            (17,480,993)
AOCI per share equivalent	(2.44)		(2.96)		(2.54)		(2.31)		(2.43)
Tangible Book Value (ex-AOCI) (non-GAAP)	$                        13.09		$                        13.32		$               13.29		$               13.02		$                      12.87
2 Net interest income has been computed on a fully taxable equivalent basis ("FTE") using a 21% federal income tax rate for the 2023 and 2022 periods.	Quarter Ending										Year Ending
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Income on Tax Exempt Securities	$                    154,329		$                    156,097		$           148,314		$           144,151		$                  146,021		$                   602,891		$                   589,813
Tax Equivalent Adjustment	41,024		41,494		39,425		38,319		38,816		160,262		$                   156,786
Income on Tax Exempt Securities (Non-GAAP)	$                    195,353		$                    197,591		$           187,739		$           182,470		$                  184,837		$                   763,153		$                   746,598
3 Net Interest Margin
Average Earning Assets	$          1,029,726,048		$          1,004,540,354		$    980,854,780		$    940,541,289		$           927,515,881		$            989,202,761		$            873,803,804
Yield on Interest Earning Assets (GAAP)	5.98 %		5.81 %		5.66 %		5.37 %		5.09 %		5.71 %		4.45 %
Yield on Interest-Earning Assets (FTE) (Non-GAAP)	5.99 %		5.83 %		5.68 %		5.38 %		5.11 %		5.73 %		4.47 %
Net Interest Margin (NIM) (GAAP)	2.61 %		2.58 %		2.74 %		3.10 %		3.47 %		2.75 %		3.61 %
Net Interest Margin (NIM) (FTE) (Non-GAAP)	2.62 %		2.59 %		2.76 %		3.12 %		3.49 %		2.77 %		3.63 %
4 Efficiency Ratio (Non-GAAP)	Quarter Ending										Year Ending
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Net Interest Income	$                 6,769,292		$                 6,526,324		$        6,697,705		$        7,198,492		$               8,117,490		$              27,191,814		$              31,587,930
Non-Interest Income	1,025,392		816,250		1,112,000		941,701		1,087,106		3,895,342		5,698,937
Total Revenue	$                 7,794,684		$                 7,342,574		$        7,809,705		$        8,140,193		$               9,204,596		$              31,087,156		$              37,286,867
Non-Interest Expense	5,762,926		5,612,199		5,390,599		6,411,589		5,379,623		23,177,313		22,785,708
Efficiency Ratio (Non-GAAP)	73.93 %		76.43 %		69.02 %		78.76 %		58.44 %		74.56 %		61.11 %
5Liquidity Ratios (Non-GAAP)	Quarter Ending
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Available-for-Sale Securities (as % of total securities)	91.31 %		90.96 %		90.41 %		91.89 %		91.39 %
Uninsured Deposits to Total Deposits	25.65 %		28.10 %		25.78 %		21.77 %		27.05 %
Total Liquidity to Uninsured Deposits	130.30 %		120.27 %		120.82 %		149.16 %		127.88 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days	258.26 %		345.53 %		213.43 %		206.92 %		190.69 %
Tangible Common Equity Ratio	7.12 %		7.14 %		7.43 %		7.62 %		7.61 %
Tangible Common Equity Ratio(adjusted for unrealized losses	6.88 %		6.83 %		7.16 %		7.38 %		7.36 %
on HTM Securities)
6 Total Revenue (Non-GAAP)	Quarter Ending										Year-to-Date
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Net Interest Income	$                 6,769,291		$                 6,526,324		$        6,697,705		$        7,198,492		$               8,117,490		$              27,191,814		$              31,587,930
Non-Interest Income	1,025,392		816,250		1,112,000		941,701		1,087,106		3,895,342		5,698,937
Total Revenue (non-GAAP)	$                 7,794,683		$                 7,342,574		$        7,809,705		$        8,140,193		$               9,204,596		$              31,087,156		$              37,286,867

Contact:
Joseph J. Thomas
President & Chief Executive Officer
703-667-4161: Phone
jthomas@freedom.bank: Email

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SOURCE Freedom Financial Holdings

FAQ

What was Freedom Financial Holdings' net loss for the fourth quarter of 2023?

Freedom Financial Holdings announced a net loss of $2,006,393, or -$0.27 per diluted share for the three months ended December 31, 2023.

What was the net income for the full year 2023?

Net income for the full year 2023 was $2,318,695 or $0.32 per diluted share, compared to $10,563,572 or $1.45 per diluted share for the full year 2022.

What were the total assets as of December 31, 2023?

Total assets were $1.08 billion on December 31, 2023, an increase of $99.60 million or 10.11% from total assets on December 31, 2022.

What was the provision for loan losses in the fourth quarter of 2023?

The Company recognized a provision for loan losses of $4,751,441 in the fourth quarter, largely related to a single relationship.