1. FDVA reported Q4 2024 net income of $1.16 million, significantly up. 2. Net income for 2024 increased 103.2% compared to 2023. 3. Non-interest income up 10.14% in Q4 due to mortgage revenue. 4. Tangible book value rose to $13.94 per share from $13.25. 5. The company remains well-capitalized with strong capital ratios.
Positive earnings growth and improved financial metrics can attract investors, enhancing FDVA's stock value.
Strong performance indicators can boost investor confidence, impacting stock prices positively.
Immediate investor sentiment may improve from quarterly performance, likely influencing short-term trading.
Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced net income of $1,156,906, or $0.16 per diluted share for the three months ended December 31, 2024. This compares to net income of $344,919 or $0.05 per diluted share, for the linked quarter and a net loss of $2,006,392 or -$0.27 per diluted share for the three months ended December 31, 2023. Net income for the full year 2024 was $4,710,284 or $0.64 per diluted share, compared to $2,318,660 or $0.32 per diluted share for the full year 2023.
Joseph J. Thomas, President, and CEO, commented, "In 2024 our team was focused on digesting growth from new client acquisitions, investing in talent and technology in the changing economic environment, and enhancing internal controls as a part of crossing $1.0 billion in total assets. Despite the lower net interest margin and higher overhead expenses, full year net income was up 103.2% over 2023. We experienced favorable operating trends in the fourth quarter with net income higher by 235.41% over the prior quarter to $1.16 million due to an expansion of net interest margin by 12 basis points, non-interest income increasing 10.14% on higher mortgage and SBIC income, and only a modest increase of 1.2% in non-interest expenses. Excluding AOCI adjustments, the tangible book value of the Company's common stock on December 31, 2024, was $13.94 per share compared to $13.25 per share on December 31, 2023, and the company continues to have an open share buyback program with 213,000 shares remaining to be purchased at year-end."
In the first days of January, the bank finalized the resolution of a Classified relationship amounting to $2,483,155 in combined exposure that included $1,736,192 of nonaccrual principal. The resolution of this 18-month workout resulted in the payment of nonaccrual interest of $233,825 and the recognition of an additional $388,955 in late charges, forbearance fees, and previously expensed legal fees. The bank will recognize this total income of $629,056 in the first quarter and not incur any loss of principal, interest, or third-party expense in the resolution of this relationship.
The Company recorded net interest income of $6.42 million for the fourth quarter of 2024, higher by 5.34% compared to the linked quarter, and lower by 5.10% compared to the same period in 2023. The net interest margin in the fourth quarter of 2024 was 2.44%, higher by 12 basis points compared to the linked quarter and lower by 18 basis points compared to the same period in 2023. The net interest margin for the full year 2024 was 2.43%, lower by 34 basis points compared to 2023.
Non-interest income was $1.27 million for the fourth quarter, an increase of 10.14% when compared to the linked quarter and an increase of 23.88% when compared to the same period in 2023. Non-interest income in 2024 was higher by 23.62% compared to the prior year.
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 6.10% compared to the linked quarter and lower by 1.28% compared to the calendar quarter in 2023. 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 lower net interest income, resulting from net interest margin compression compared to the calendar quarter.
Non-interest expense in the fourth quarter increased by 1.21% compared to the linked quarter and increased by 12.25% compared to the same period in 2023. The increase in non-interest expense for linked and calendar quarters was primarily due to a combination of higher expenses related to compensation and data processing.
Stockholders' equity as of December 31, 2024, was $81.44 million compared to $83.03 million on September 30, 2024, and stockholders' equity of $77.23 million on December 31, 2023.
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. For information about deposits, loans and other services, visit the website at www.freedom.bank.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. 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.
Joseph J. Thomas
President & Chief Executive Officer
703-667-4161: Phone
[email protected]: Email
SOURCE Freedom Financial Holdings