1. FDVA reported Q2 2025 net income of $799,896, a sharp decline. 2. Core profitability improved with a pre-tax income increase of 35.7% year-over-year. 3. Non-interest income increased by 34.14% from the previous quarter. 4. Loan loss provision rose to $688,865 amid economic outlook changes. 5. Tangible book value per share increased to $12.01, signaling financial stability.
The significant drop in net income and low ROAA indicate potential financial instability. Similar past instances have led to stock price declines.
The reported earnings highlight significant changes in FDVA's financials that will likely sway investor confidence.
Immediate financial results impact investor sentiment, likely leading to short-term stock price volatility.
FAIRFAX, Va., July 30, 2025 /PRNewswire/ -- 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 $799,896 or $0.11 per diluted share for the second quarter compared to net income of $2,019,348, or $0.28 per diluted share for the three months ended March 31, 2025, and net income of $2,044,233 or $0.28 per diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025, was $2,819,240 or $0.39 per diluted share, compared to $3,208,460 or $0.44 per diluted share for the six months ended June 30, 2024.
Joseph J. Thomas, President, and CEO, commented, "While proactively increasing our loan loss provision negatively impacted our bottom line results, our second quarter performance reflects strong improvement in core profitability as pre-tax, pre-provision income1 of $1.84 million increased by 35.7% compared to the same quarter in 2024, driven by a 25-basis point increase in net interest margin to 2.66% and a 7.8% increase in non-interest income in the quarter compared to last year. With payoffs in problem loans, run-off in the investment portfolio, and increased core deposit inflows, we repaid higher cost brokered time deposits and borrowings to reduce cost of funds by 42 basis points compared to 2024. While loan demand remained tepid in the second quarter, the investments in our team and technology and improvement in the company's balance sheet resilience will enable us to meet current and new customer demand and achieve higher levels of loan and deposit growth as the economy stabilizes in the second half of 2025."
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. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include...
Scott Clark
Executive Vice President & Chief Financial Officer
Phone: 703-667-4119
Email: scott.clark@freedom.bank