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Holding companies

Freedom Financial Holdings Reports Strong Earnings in Second Quarter 2024

Strategic Insights

— 2 min read

Freedom Financial Holdings, the holding company for The Freedom Bank of Virginia, announced net income of $2,044,233 or $0.28 per diluted share for the second quarter of 2024, representing a significant improvement of 75.6% compared to the linked quarter and 15.5% ahead of the calendar quarter. The strong earnings were achieved in part through a reserve release related to the favorable resolution of the company's largest non-performing loan.

Key Takeaways:

  • Net income for the second quarter of 2024 was $2,044,233 or $0.28 per diluted share, representing a 75.6% increase compared to the linked quarter and a 15.5% increase compared to the same period in 2023.
  • Tangible Book Value per share increased to $11.11 on June 30, 2024, from $10.78 on December 31, 2023.
  • Return on Average Assets (ROAA) was 0.75% for the quarter ended June 30, 2024, compared to 0.43% for the linked quarter and 0.69% for the same period in 2023.
  • Return on Average Equity (ROAE) was 10.71% for the quarter ended June 30, 2024, compared to 6.05% for the linked quarter and 9.15% for the same period in 2023.
  • Total Assets were $1.10 billion on June 30, 2024, an increase of $11.44 million or 1.05% from total assets on December 31, 2023.
  • Loans held-for-investment (excluding PPP loans) increased by $14.99 million or 1.97% during the quarter.
  • The net interest margin decreased in the second quarter to 2.41%, lower by 13 basis points compared to the linked quarter and lower by 35 basis points compared to the same period in 2023.
  • The cost of funds was 3.61% for the second quarter, higher by 1 basis point compared to the linked quarter and higher by 56 basis points compared to the same period in 2023.
  • Non-interest income increased by 3.66% compared to the linked quarter and increased by 9.47% compared to the same period in 2023.
  • Non-interest expense in the second quarter decreased by 2.80% compared to the linked quarter and increased by 12.27% compared to the same period in 2023.
  • The Efficiency Ratio was 81.72% for the quarter ended June 30, 2024, compared to 80.64% for the linked quarter and 69.02% for the same period in 2023.
  • Uninsured deposits were 22.76% of total deposits and total available secured liquidity was 150.53% of uninsured deposits on June 30, 2024.
  • Net charge offs decreased in the second quarter and were 0.01% of average loans compared to 0.14% in the prior quarter.
  • The ratio of non-accrual loans to loans held-for-investment was 1.49% on June 30, 2024, compared to 1.74% on March 31, 2024, and 0.93% on June 30, 2023.

Statistics:

  • Net income: $2,044,233 (0.28 per diluted share)
  • Return on Average Assets (ROAA): 0.75% (0.43% linked quarter, 0.69% same period 2023)
  • Return on Average Equity (ROAE): 10.71% (6.05% linked quarter, 9.15% same period 2023)
  • Total Assets: $1.10 billion (increase of $11.44 million or 1.05% from December 31, 2023)
  • Loans held-for-investment (excluding PPP loans): $14.99 million increase or 1.97% during the quarter
  • Net interest margin: 2.41% (13 basis points lower than linked quarter, 35 basis points lower than same period 2023)
  • Cost of funds: 3.61% (1 basis point higher than linked quarter, 56 basis points higher than same period 2023)
  • Non-interest income: $x% increase compared to linked quarter and $x% increase compared to same period 2023
  • Non-interest expense: $x% decrease compared to linked quarter and $x% increase compared to same period 2023
  • Efficiency Ratio: 81.72% (80.64% linked quarter, 69.02% same period 2023)
  • Uninsured deposits: 22.76% of total deposits
  • Total available secured liquidity: 150.53% of uninsured deposits
  • Net charge offs: 0.01% of average loans (0.14% prior quarter)

Sources:

  • Freedom Financial Holdings news release
  • OTCQX: FDVA
  • The Freedom Bank of Virginia
  • Joseph J. Thomas, President, and CEO

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