Freedom Financial Holdings Announces Results for Fourth Quarter and Full Year of 2025

Core Insights - Freedom Financial Holdings reported a net loss of $3,567,973 or $0.50 per diluted share for Q4 2025, a significant decline from a net income of $1,122,930 or $0.16 per diluted share in Q3 2025 and $1,156,906 or $0.16 per diluted share in Q4 2024 [1][6] - For the full year 2025, the company achieved a net income of $374,197 or $0.05 per diluted share, down from $4,710,286 or $0.64 per diluted share in 2024 [1][6] Financial Performance - The bank's pre-provision, pre-tax income (PPNR) for Q4 2025 was $2.2 million, an increase of 84.4% from Q4 2024 and 22.6% from Q3 2025 [2] - Total revenue for the full year 2025 increased by 9.51% compared to 2024, primarily due to net interest margin expansion related to lower funding costs [9] Net Interest Income - Net interest income for Q4 2025 was $6.70 million, a decrease of 0.77% from Q3 2025 but an increase of 4.3% from Q4 2024 [4] - The net interest margin for Q4 2025 was 2.70%, up 4 basis points from Q3 2025 and 26 basis points from Q4 2024 [4] Asset Quality - Non-accrual loans increased to $26,767,487 or 3.51% of loans held-for-investment, up from 2.30% in the previous quarter, primarily due to one large syndicated loan [12] - The ratio of the allowance for credit losses to loans held-for-investment was 1.82% as of December 31, 2025, compared to 0.85% in the prior year [13] Deposits and Borrowings - Total deposits increased by $59.2 million or 6.93% in Q4 2025, with non-interest-bearing demand deposits rising to 16.3% of total deposits [14] - Borrowings decreased by $25 million during the quarter, reflecting a shift towards core deposits [20] Capital and Equity - The bank's Total Risk Based Capital ratio increased to 15.08% at year-end 2025, compared to 14.35% at the end of 2024 [2][16] - Stockholders' equity as of December 31, 2025, was $84.34 million, a decrease from $87.19 million at the end of Q3 2025 [15] Share Buyback Program - The company repurchased 29,400 shares in Q4 2025 and a total of 207,092 shares for the full year at an average price of $10.51 per share [17]