Freedom Financial Holdings Announces Earnings for Second Quarter of 2024

Core Viewpoint - Freedom Financial Holdings reported strong earnings for the second quarter of 2024, with net income of $2,044,233 or $0.28 per diluted share, reflecting a significant increase compared to previous quarters and the same period last year [8]. Financial Performance - Net income for the six months ended June 30, 2024, was $3,208,460 or $0.44 per diluted share, compared to $3,006,710 or $0.41 per diluted share for the same period in 2023 [8]. - The company achieved a return on average assets (ROAA) of 0.75% for the quarter ended June 30, 2024, up from 0.43% in the previous quarter [8]. - Return on average equity (ROAE) was 10.71% for the quarter ended June 30, 2024, compared to 6.05% for the previous quarter [8]. Asset and Liability Management - Total assets increased to $1.10 billion on June 30, 2024, up by $11.44 million or 1.05% from December 31, 2023 [8][9]. - Total deposits decreased by $14.73 million or 1.65% during the quarter, largely due to seasonal activity [8]. - Non-interest-bearing demand deposits decreased by $5.21 million, representing 15.52% of total deposits on June 30, 2024 [8]. Capital Ratios - The company maintained strong capital ratios, with a leverage ratio of 10.28%, a common equity tier 1 ratio of 13.05%, and a total capital ratio of 14.01% as of June 30, 2024 [8][9]. - Tangible book value per share increased to $11.11 on June 30, 2024, compared to $10.78 on December 31, 2023 [8][9]. Loan Performance - Loans held-for-investment (excluding PPP loans) increased by $14.99 million or 1.97% during the quarter [8]. - The ratio of non-accrual loans to loans held-for-investment was 1.49% on June 30, 2024, down from 1.74% in the previous quarter [8][9]. - The company recorded a negative loan loss provision of $1,167,997 in the second quarter, reducing the allowance for losses [8][9]. Non-Interest Income and Expenses - Non-interest income increased by 3.66% compared to the linked quarter, primarily due to higher revenue from mortgage loans [8]. - Non-interest expense decreased by 2.80% compared to the linked quarter, attributed to lower compensation and occupancy costs [8].