Freedom Financial Holdings Announces Earnings for First Quarter of 2025

Freedom Financial Holdings Announces Earnings for First Quarter of 2025

FAIRFAX, Va., April 29, 2025 - 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 $2,019,348 or $0.28 per diluted share for the first quarter compared to net income of $1,156,906, or $0.16 per diluted share for the three months ended December 31, 2024, and net income of $1,164,226 or $0.16 per diluted share for the three months ended March 31, 2024.

Joseph J. Thomas, President, and CEO, commented, "We are pleased to start off 2025 with strong results with net income increasing 73.4% over the comparable quarter in 2024 sustaining the momentum we gained in the second half of last year. We continue to see improvement in our cost of funds dropping 23 basis points in the first quarter enabling net interest margin expansion of 59 basis points to 3.03%. Despite the challenging economic environment, we continue to see improvement in the credit quality of our loan portfolio with non-accrual loans down 22% to $10.7 million. Our entire team is working hard to grow local, core deposits and we experienced a 26% annualized increase in non-interest deposits in the quarter. With our organic core deposit growth, cash flow from investments, and loan pre-payments, we are driving improved financial performance and franchise profile."

First Quarter 2025 Highlights include:

  • The Company posted net income of $2,019,348 or $0.28 per diluted share for the first quarter compared to net income of $1,156,906 or $0.16 per diluted share for the three months ended December 31, 2024, and net income of $1,164,226 or $0.16 per diluted share for the three months ending March 31, 2024.

  • Tangible Book Value per share increased during the quarter to $11.87 on March 31, 2025, compared to $11.39 on December 31, 2024.

  • Return on Average Assets ("ROAA") was 0.76% for the quarter ended March 31, 2025, compared to ROAA of 0.41% for the quarter ended December 31, 2024, and 0.43% for the three months ended March 31, 2024.

  • Return on Average Equity ("ROAE") was 9.95% for the quarter ended March 31, 2025, compared to ROAE of 5.58% for the three months ended December 31, 2024, and 6.05% for the three months ended March 31, 2024.

  • Total Assets were $1.08 billion on March 31, 2025, a decrease of $8.3 million or 0.77% from total assets on December 31, 2024.

  • Loans held-for-investment (excluding PPP loans) decreased by $15.1 million or 1.96% during the quarter.

  • Total deposits increased by $1.34 million or by 0.15% during the quarter. Non-interest-bearing demand deposits increased by $8.83 million during the quarter to $142.5 million and represented 15.64% of total deposits on March 31, 2025.

  • The net interest margin1 increased in the first quarter to 3.03%, higher by 59 basis points compared to the linked quarter and higher by 49 basis points compared to the same period in 2024. The increase in the net interest margin across linked quarters was a result of lower funding costs and recognition of previously uncollected interest from problem loan resolutions, with such interest contributing 41 basis points to the net interest margin.

  • The cost of funds was 3.23% for the first quarter, lower by 23 basis points compared to the linked quarter and lower by 37 basis points compared to the same period in 2024, as a result of a decline in deposit costs and borrowing costs.

  • Non-interest income decreased by 23% compared to the linked quarter and decreased by 16.70% compared to the same period in 2024. The decrease in non-interest income in the first quarter of 2025 was primarily due to lower revenue from the gain on sale of SBA loans and bank service charges and fees.

  • Non-interest expense decreased by $447,994 in the first quarter or by 6.93% compared to the linked quarter and decreased by 3.3% compared to the same period in 2024. The decrease in expenses compared to the linked quarter was largely due to a reduction in non-recurring expenses in prior periods primarily related to software costs for the new online banking platform, consulting fees related to FDICIA, and legal fees related to loan workouts. Excluding these non-recurring costs, non-interest expenses would have been flat to the prior quarter.

  • The Efficiency Ratio2 was 69.22% for the quarter ended March 31, 2025, compared to 84.07% for the linked quarter and 80.64% for the same period in 2024.

  • Uninsured deposits were 22.50% of total deposits and total liquidity to uninsured deposits3 was 122.33% of uninsured deposits on March 31, 2025.

  • Net charge offs were 0.03% of average loans compared to 0.26% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 1.45% on March 31, 2025, compared to 1.78% on December 31, 2024, and 1.74% on March 31, 2024. The ratio of non-performing assets to total assets was 1.01% on March 31, 2025, compared to 1.25% on December 31, 2024, and 1.21% on March 31, 2024.

  • The Company recognized a provision for loan losses of $284,683, primarily related to specific reserves for one loan relationship.

  • The ratio of the allowance for loan losses to loans held-for-investment was 0.88% compared to 0.85% in the linked quarter.

  • The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.76%, Common Equity Tier 1 ratio of 14.14%, Tier 1 Risk Based Capital ratio of 14.14% and a Total Capital ratio of 14.95% as of March 31, 2025.

Net Interest Income

The Company recorded net interest income of $7.72 million for the first quarter of 2025, higher by 20.17% compared to the linked quarter, and lower by 17.91% compared to the same period in 2024. The net interest margin in the first quarter of 2025 was 3.03%, higher by 59 basis points compared to the linked quarter and higher by 49 basis points compared to the same period in 2024.

The following factors contributed to the changes in net interest margin during the first quarter of 2025 compared to the linked and calendar quarters.

  • Yields on average earning assets were 6.11% in the first quarter of 2025, higher by 35 basis points compared to the linked quarter, and higher by 12 basis points compared to the prior year calendar quarter. The increase in yields on average earning assets in the first quarter was primarily due to recognition of uncollected interest from problem loan resolutions.

  • Loan yields increased by 59 basis points to 6.74% from 6.15% in the linked quarter, while yields on investment securities decreased by 14 basis points to 4.55% from 4.69% in the linked quarter. Loan yields increased by 35 basis points, while yields on investment securities decreased by 33 basis points compared to the calendar quarter.

  • Cost of funds decreased by 23 basis points to 3.23% from 3.46% in the linked quarter, and by 37 basis points compared to the prior year quarter, due to lower deposit costs.

Non-interest Income

Non-interest income was $1 million for the first quarter, a decrease of 23% when compared to the linked quarter and an increase of 16.70% when compared to the same period in 2024. The decrease in non-interest income in the first quarter of 2025 compared to the linked quarter was due to lower revenue from the gain on sale of SBA loans and bank service charges and fees.

Total Revenue⁴

Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 13.04% compared to the linked quarter and higher by 12.65% compared to the calendar quarter in 2024. The increase in total revenue compared to the linked quarter was due to an increase in the net interest margin.

Non-interest Expense

Non-interest expense in the first quarter decreased by $447,995 or by 6.93% compared to the linked quarter and decreased by 3.30% compared to the same period in 2024. The increase in expenses compared to the linked quarter was largely non-recurring and primarily related to personnel costs, an increase in software costs for the new online banking platform, consulting fees related to FDICIA compliance, and legal fees related to loan workouts. Excluding these non-recurring costs, non-interest expenses would have been flat to the prior quarter. The increase in expenses compared to the calendar quarter primarily related to higher compensation costs, higher occupancy costs and higher professional fees, largely related to legal fees and accounting fees related to FDICIA.

The Efficiency Ratio was 69.22% for the quarter ended March 31, 2025, compared to 84.07% for the linked quarter and 80.64% for the same period in 2024.

Asset Quality

Non-accrual loans decreased in the first quarter and were 1.45% of loans held-for-investment compared to 1.78% of loans held-for-investment at the end of the linked quarter. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, and OREO assets) were 1.01% of total assets as of March 31, 2025, compared to 1.25% of total assets, at the end of the linked quarter.

The Company recognized a provision for loan losses of $284,683, primarily related to specific reserves for one loan relationship.

The Company's ratio of Allowance for Loan Losses to loans held-for-investment was 0.88% as of March 31, 2025, compared to the ratio of Allowance for Loan Losses to loans held-for-investment of 0.85% as of December 31, 2024.

Total Assets

Total assets on March 31, 2025, were $1.08 billion compared to total assets of $1.09 billion on December 31, 2024. Changes in major asset categories since December 31, 2024, were as follows:

  • Interest bearing deposits at banks decreased by $16.0 million.

  • Available for sale investment balances decreased by $5.88 million.

  • Other loans held-for investment decreased by $15.07 million

Total Liabilities

Total liabilities on March 31, 2025, were $1.00 billion compared to total liabilities of $1.01 billion on December 31, 2024. Total deposits were $910.87 million on March 31, 2025, compared to total deposits of $909.53 million on December 31, 2024. Non-interest-bearing demand deposits increased by $8.83 million during the first quarter and comprised 15.64% of total deposits at the end of the first quarter. Other interest-bearing demand deposits decreased by $3.28 million and time deposits decreased by $8.38 million during the quarter. Federal Home Loan Bank borrowings decreased during the quarter by $10.0 million.

Stockholders' Equity and Capital

Stockholders' equity as of March 31, 2025, was $81.11 million compared to $81.44 million on December 31, 2024. AOCI improved during the first quarter as there was a decrease in unrealized losses on available-for-sale securities. The tangible book value of the Company's common stock on March 31, 2025, was $11.87 per share compared to $11.39 on December 31, 2024. Excluding AOCI losses/gains5, the tangible book value of the Company's common stock on March 31, 2025, was $14.26 per share compared to $13.94 on December 31, 2024.

Stock Buyback Program

In the first quarter, the Company purchased 177,692 shares pursuant to its previously announced share repurchase program. As of March 31, 2025, the Company had repurchased 214,400 of the 250,000 shares authorized for repurchase under the program. Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company.

Capital Ratios

As of March 31, 2025, the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of March 31, 2025, and December 31, 2024, were as follows:

Capital Ratios
Item March 31, 2025 December 31, 2024
Total Capital Ratio 14.95 % 14.35 %
Tier 1 Capital Ratio 14.14 % 13.57 %
Common Equity Tier 1 Capital Ratio 14.14 % 13.57 %
Leverage Ratio 10.76 % 10.39 %

About Freedom Financial Holdings, Inc.

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.

Forward Looking Statements

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: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of COVID-19 and the impact of geopolitical conflicts, such as the war between Russia and Ukraine; adverse developments in the financial services industry such as the recent bank failures; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for loan and lease losses; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; 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. In addition, our past results of operations are not necessarily indicative of future performance.

Assets

Number of Assets
ASSETS (Unaudited)
March 31, 2025		 (Audited)
December 31, 2024
Cash and Due from Banks $6,456,093 $5,685,008
Interest Bearing Deposits with Banks 39,016,262 23,004,874
Securities Available-for-Sale 203,807,955 209,687,859
Securities Held-to-Maturity 19,852,060 20,315,651
Restricted Stock Investments 5,777,800 6,249,000
Loans Held for Sale 5,487,972 5,963,969
PPP Loans Held for Investment 137,066 159,825
Other Loans Held for Investment 752,664,602 767,737,719
Allowance for Credit Losses -6,592,220 -6,534,757
Net Loans 751,697,420 761,362,787
Bank Premises and Equipment, net 742,588 767,773
Accrued Interest Receivable 3,991,413 4,155,077
Deferred Tax Asset 7,230,083 7,560,441
Bank-Owned Life Insurance 27,781,480 27,560,616
Right of Use Asset, net 3,361,641 1,874,403
Other Assets 12,428,097 16,299,753
Total Assets $1,082,142,892 $1,090,487,211
LIABILITIES AND STOCKHOLDERS' EQUITY
 

Deposits

Total Deposits
Demand Deposits (Unaudited)
March 31, 2025		 (Audited)
December 31, 2024
Non-interest Bearing $142,497,191 $133,665,194
Interest Bearing 472,115,491 475,397,117
Savings Deposits 8,034,522 3,866,241
Time Deposits 288,222,304 296,603,142
Total Deposits 910,869,508 909,531,694
Federal Home Loan Bank Advances 55,000,000 65,000,000
Other Borrowings 146,377 159,825
Subordinated Debt (Net of Issuance Costs) 19,870,125 19,850,643
Accrued Interest Payable $1,846,477 2,445,741
Lease Liability 1,855,161 2,013,912
Other Liabilities 9,420,497 10,045,990
Total Liabilities $999,008,145 $1,009,047,805
 

Interest Income

Interest Income Year
Interest Income (Unaudited)
For the three months ended March 31, 2025		 (Unaudited)
For the three months ended March 31, 2024
Interest and Fees on Loans $12,703,493 $12,283,239
Interest on Investment Securities 2,613,258 2,871,479
Interest on Deposits with Other Banks 262,507 328,257
Total Interest Income 15,579,258 15,482,975
Interest Expense
Interest on Deposits 6,946,194 8,023,891
Interest on Borrowings 913,154 911,927
Total Interest Expense 7,859,348 8,935,817
Net Interest Income 7,719,910 6,547,158
Provision for Credit Losses -284,683 27,486
Net Interest Income after
Provision for Credit Losses 7,435,227 6,574,644
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue 654,530 536,724
SBA Gain-on-Sale Revenue - 287,032
Service Charges and Other Income 70,334 117,361
Gain on Sale of Securities - -
Servicing Income 32,442 35,253
Swap Fee Income - -
Increase in Cash Surrender Value of Bank-
owned Life Insurance 220,864 197,963
Total Non-interest Income 978,170 1,174,333
Total Revenue6 8,698,080 7,721,491
Non-Interest Expenses
Officer and Employee Compensation
and Benefits 3,769,535 3,735,139
Occupancy Expense 242,163 391,876
Equipment and Depreciation Expense 8,726 20,661
Insurance Expense 225,766 224,007
Professional Fees 470,310 526,574
Data and Item Processing 538,213 435,967
Advertising 83,115 114,999
Franchise Taxes and State Assessment Fees 314,214 309,869
Mortgage Fees and Settlements 87,258 95,001
Other Operating Expense 281,611 372,233
Total Non-interest Expenses 6,020,911 6,226,326
Income Before Income Taxes 2,392,486 1,522,651
Income Tax Expense/(Benefit) 373,138 358,425
Net Income $2,019,348 $1,164,226
Earnings per Common Share - Basic $0.28 $0.16
Earnings per Common Share - Diluted $0.28 $0.16
Weighted-Average Common Shares
Outstanding - Basic 7,283,696 7,285,108
Weighted-Average Common Shares
Outstanding - Diluted 7,285,900 7,325,415
Efficiency Ratio 69.22 % 80.64 %
 

Non interest Expenses

Non interest expenses
Item (Unaudited)
For the three months ended March 31, 2025		 (Unaudited)
For the three months ended March 31, 2024
Officer and Employee Compensation and Benefits 3,769,535 3,735,139
Occupancy Expense 242,163 391,876
Equipment and Depreciation Expense 8,726 20,661
Insurance Expense 225,766 224,007
Professional Fees 470,310 526,574
Data and Item Processing 538,213 435,967
Advertising 83,115 114,999
Franchise Taxes and State Assessment Fees 314,214 309,869
Mortgage Fees and Settlements 87,258 95,001
Other Operating Expense 281,611 372,233
Total Non-interest Expenses 6,020,911 6,226,326
Income Before Income Taxes 2,392,486 1,522,651
Income Tax Expense/(Benefit) 373,138 358,425
Net Income $2,019,348 $1,164,226
Earnings per Common Share - Basic $0.28 $0.16
Earnings per Common Share - Diluted $0.28 $0.16
Weighted-Average Common Shares
Outstanding - Basic 7,283,696 7,285,108
Weighted-Average Common Shares
Outstanding - Diluted 7,285,900 7,325,415
Efficiency Ratio 69.22 % 80.64 %
 

Interest Income

Interest Income Quarter
Item (Unaudited)
For the three months ended March 31, 2025		 (Unaudited)
For the three months ended December 31, 2024		 (Unaudited)
For the three months ended September 30, 2024		 (Unaudited)
For the three months ended June 30, 2024		 (Unaudited)
For the three months ended March 31, 2024
Interest and Fees on Loans $12,703,493 $11,991,578 $12,358,391 $11,893,288 $12,283,239
Interest on Investment Securities 2,613,258 2,798,420 2,932,219 2,927,306 2,871,479
Interest on Deposits with Other Banks 262,507 446,184 390,373 375,815 328,257
Total Interest Income 15,579,258 15,236,182 15,680,983 15,196,409 15,482,975
Interest Expense
Interest on Deposits 6,946,194 7,628,382 7,968,925 7,865,934 8,023,891
Interest on Borrowings 913,154 1,183,419 1,613,452 1,142,481 911,926
Total Interest Expense 7,859,348 8,811,801 9,582,377 9,008,415 8,935,817
Net Interest Income 7,719,910 6,424,381 6,098,606 6,187,994 6,547,158
Provision for Credit Losses -284,683 -14,922 546,439 -1,167,997 -27,486
Net Interest Income after
Provision/Recovery for Credit Losses 7,435,227 6,439,303 5,552,167 7,355,991 6,574,644
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue 654,530 769,060 649,097 745,366 536,724
SBA Gain-on-Sale Revenue - - - - 287,032
Service Charges and Other Income 70,334 252,275 255,889 221,022 117,361
Gains on Sale of Securities - - - 1,816 -
Servicing Income 32,442 36,090 36,752 42,268 35,253
Swap Fee Income - - - - -
Increase in Cash Surrender Value of Bank-
owned Life Insurance 220,864 212,876 211,642 206,796 197,963
Total Non-interest Income 978,170 1,270,301 1,153,380 1,217,268 1,174,333
Total Revenue5 $8,698,080 $7,694,682 $7,251,986 $7,405,262 $7,721,491
 

Non-Interest Expenses

Non-Interest Expenses Quarter
Item (Unaudited)
For the three months ended March 31, 2025		 (Unaudited)
For the three months ended December 31, 2024		 (Unaudited)
For the three months ended September 30, 2024		 (Unaudited)
For the three months ended June 30, 2024		 (Unaudited)
For the three months ended March 31, 2024
Officer and Employee Compensation and Benefits 3,769,535 3,905,728 3,674,499 3,544,148 3,735,139
Occupancy Expense 242,163 233,967 233,807 255,233 391,876
Equipment and Depreciation Expense 8,726 20,951 285,083 185,959 20,661
Insurance Expense 225,766 228,224 232,774 229,259 224,007
Professional Fees 470,310 451,065 532,379 568,765 526,574
Data and Item Processing 538,213 684,698 433,431 395,579 435,967
Advertising 83,115 90,368 172,136 162,354 114,999
Franchise Taxes and State Assessment Fees 314,214 316,976 329,056 276,843 309,869
Mortgage Fees and Settlements 87,258 119,037 123,853 83,617 95,001
Other Operating Expense 281,611 417,893 374,273 349,979 372,233
Total Non-interest Expenses 6,020,911 6,468,907 6,391,291 6,051,736 6,226,326
Income before Income Taxes 2,392,486 1,240,697 314,256 2,521,526 1,522,651
Income Tax Expense 373,138 83,793 -30,663 477,293 358,425
Net Income $2,019,348 $1,156,904 $344,919 $2,044,233 $1,164,226
Earnings per Common Share - Basic $0.28 $0.16 $0.05 $0.28 $0.16
Earnings per Common Share - Diluted $0.28 $0.16 $0.05 $0.28 $0.16
Weighted-Average Common Shares
Outstanding - Basic 7,283,696 7,268,087 7,263,880 7,267,044 7,285,108
Weighted-Average Common Shares
Outstanding - Diluted 7,285,900 7,324,559 7,299,553 7,305,392 7,325,415
 

Selected Financial Data by Quarter Ended: (Unaudited)

Balance Sheet Ratios
Item March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
Loans held-for-investment to Deposits 82.65 % 84.43 % 87.42 % 88.20 % 85.07 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA) 0.76 % 0.41 % 0.12 % 0.75 % 0.43 %
Return on Average Equity (ROAE) 9.95 % 5.58 % 1.70 % 10.71 % 6.05 %
Efficiency Ratio 69.22 % 84.07 % 88.13 % 81.72 % 80.64 %
Net Interest Margin 3.03 % 2.44 % 2.32 % 2.41 % 2.54 %
Yield on Average Earning Assets 6.11 % 5.76 % 5.93 % 5.90 % 5.99 %
Yield on Securities 4.55 % 4.69 % 4.85 % 4.92 % 4.88 %
Yield on Loans 6.74 % 6.15 % 6.30 % 6.22 % 6.39 %
Cost of Funds 3.23 % 3.46 % 3.76 % 3.61 % 3.60 %
Noninterest income to Total Revenue 11.25 % 16.51 % 15.90 % 16.44 % 15.21 %
Liquidity Ratios
Uninsured Deposits to Total Deposits 22.50 % 21.55 % 22.51 % 22.76 % 24.31 %
Total Liquidity to Uninsured Deposits 122.33 % 162.14 % 150.84 % 150.53 % 156.40 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 292.23 % 264.35 % 264.41 % 317.68 % 386.89 %
Tangible Common Equity Ratio 7.68 % 7.47 % 7.54 % 7.24 % 7.09 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities) 7.50 % 7.27 % 7.38 % 7.01 % 6.85 %
Available -for-Sale securities (as % of total securities) 91.12 % 91.16 % 91.47 % 91.33 % 91.24 %
Per Share Data
Tangible Book Value $11.87 $11.39 $11.64 $11.11 $10.83
Tangible Book Value (ex AOCI) $14.26 $13.94 $13.78 $13.70 $13.39
Share Price Data
Closing Price $9.90 $10.32 $11.50 $9.75 $9.75
Book Value Multiple 98 % 91 % 99 % 88 % 92 %
Common Stock Data
Outstanding Shares at End of Period 7,002,103 7,150,055 7,133,105 7,137,030 7,155,058
Weighted Average shares outstanding, basic 7,283,696 7,268,087 7,263,880 7,267,044 7,285,108
Weighted Average shares outstanding, diluted 7,285,900 7,324,559 7,299,553 7,305,392 7,325,415
Capital Ratios (Bank Only)
Tier 1 Leverage ratio 10.76 % 10.39 % 10.23 % 10.28 % 10.26 %
Common Equity Tier 1 ratio 14.14 % 13.57 % 13.21 % 13.05 % 12.92 %
Tier 1 Risk Based Capital ratio 14.14 % 13.57 % 13.21 % 13.05 % 12.92 %
Total Risk Based Capital ratio 14.95 % 14.35 % 14.22 % 14.01 % 14.00 %
Credit Quality
Net Charge-offs to Average Loans 0.03 % 0.26 % 0.01 % 0.01 % 0.14 %
Total Non-performing Loans to loans held-for-investment 1.45 % 1.78 % 1.52 % 1.49 % 1.74 %
Total Non-performing Assets to Total Assets 1.01 % 1.25 % 1.07 % 1.06 % 1.21 %
Nonaccrual Loans to loans held-for-investment 1.45 % 1.78 % 1.52 % 1.49 % 1.74 %
Provision for Credit Losses -$284,683 -$14,922 $546,439 -$1,167,997 -$27,486
Allowance for Credit Losses to net loans held-for-investment 0.88 % 0.85 % 1.12 % 1.06 % 1.24 %
Allowance for Credit Losses to net loans held-for-investment (ex PPP loans) 0.88 % 0.85 % 1.12 % 1.06 % 1.24 %
 

Net Interest Margin

Net Interest Margin Earnings
Item March 31, 2025 December 31,2024 September 30,2024 June 30, 2024 March 31, 2024
Average Earning Assets $1,033,892,386 $1,055,970,602 $1,054,061,947 $1,038,623,438 $1,042,259,725
Yield on Interest Earning Assets (GAAP) 6.10 % 5.80 % 5.98 % 5.88 % 5.97 %
Yield on Interest-Earning Assets (FTE) (Non-GAAP) 6.11 % 5.76 % 5.93 % 5.90 % 5.99 %
Net Interest Margin (NIM) (GAAP) 3.02 % 2.45 % 2.33 % 2.40 % 2.53 %
Net Interest Margin (NIM) (FTE) (Non-GAAP) 3.03 % 2.44 % 2.32 % 2.41 % 2.54 %

Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Bank's net yield on its earning assets

 

Efficiency Ratio (Non-GAAP)

Efficiency Ratio (Non-GAAP)
Item March 31, 2025 December 31,2024 September 30,2024 June 30, 2024 March 31, 2024
Net Interest Income $7,719,910 $6,424,381 $6,098,606 $6,187,994 $6,547,158
Non-Interest Income 978,170 1,270,301 $1,153,380 1,217,268 1,174,333
Total Revenue $8,698,080 $7,694,682 $7,251,986 $7,405,262 $7,721,491
Non-Interest Expense 6,020,911 6,468,907 $6,391,291 6,051,736 6,226,326
Efficiency Ratio (Non-GAAP) 69.22 % 84.07 % 88.13 % 81.72 % 80.64 %
 

Liquidity Ratios (Non-GAAP)

Liquidity Ratios (Non-GAAP)
Item March 31, 2025 December 31,2024 September 30,2024 June 30, 2024 March 31, 2024
Available-for-Sale Securities (as % of total securities) 91.12 % 91.16 % 91.47 % 91.33 % 91.31 %
Uninsured Deposits to Total Deposits 22.50 % 21.55 % 22.51 % 22.76 % 24.31 %
Total Liquidity to Uninsured Deposits 122.33 % 162.14 % 150.84 % 150.53 % 156.40 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days 292.23 % 264.35 % 264.41 % 317.68 % 386.89 %
Tangible Common Equity Ratio 7.68 % 7.47 % 7.54 % 7.24 % 7.09 %
Tangible Common Equity Ratio(adjusted for unrealized losses on HTM Securities) 7.50 % 7.27 % 7.38 % 7.01 % 6.85 %

Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve and the Federal Reserve Bank

 

Total Revenue (Non-GAAP)

Total Revenue (Non-GAAP)
Item March 31, 2025 December 31,2024 September 30,2024 June 30, 2024 March 31, 2024
Net Interest Income $7,719,910 $6,424,381 $6,098,606 $6,187,994 $6,547,158
Non-Interest Income 978,170 1,270,301 $1,153,380 1,217,268 1,174,333
Total Revenue (non-GAAP) $8,698,080 $7,694,682 $7,251,986 $7,405,262 $7,721,491
 

Tangible Book Value (ex-AOCI) (non-GAAP)

Tangible Book Value (ex-AOCI) (
Item March 31, 2025 December 31,2024 September 30,2024 January 0, 1900 January 0, 1900
Shareholder's Equity $83,134,747 $81,439,406 $83,026,214 $79,303,635 $77,460,385
Outstanding Shares at End of Period 7,002,103 7,150,055 7,133,105 7,137,030 7,155,058
Tangible Book Value (GAAP) $11.87 $11.39 $11.64 $11.11 $10.83
Accumulated Other Comprehensive Income (Net) (AOCI) -$16,748,443 -$18,240,683 -$15,296,856 -$18,466,282 -$18,326,721
AOCI per share equivalent -2.39 -2.55 -2.14 -2.59 -2.56
Tangible Book Value (ex-AOCI) (non-GAAP) $14.26 $13.94 $13.78 $13.70 $13.39
 

Income on Tax Exempt Securities

Income on Tax Exempt Securities
Item March 31, 2025 December 31,2024 September 30,2024 June 30, 2024 March 31, 2024
Tax Equivalent Adjustment $157,089 $159,233 $160,419 $161,788 $161,654
Income on Tax Exempt Securities (Non-GAAP) 41,758 42,328 $42,643 43,007 42,971
$198,847 $201,561 $203,062 $204,795 $204,625
OMNICOMMANDER