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Freedom Financial Holdings Announces Earnings for Fourth Quarter and Full Year 2022
Freedom Financial Holdings Announces Earnings for Fourth Quarter and Full Year 2022
PR Newswire
FAIRFAX, Va., Jan. 27, 2023
FAIRFAX, Va., Jan. 27, 2023 /PRNewswire/ — Freedom Financial Holdings (OTCQX: FDVA), (the “Company” or “Freedom”), the hold…

Freedom Financial Holdings Announces Earnings for Fourth Quarter and Full Year 2022
PR Newswire
FAIRFAX, Va., Jan. 27, 2023
FAIRFAX, Va., Jan. 27, 2023 /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 $2,861,940, or $0.39 per diluted share, for the three months ended December 31, 2022. This compares to net income of $2,689,950 or $0.37 per diluted share, for the linked quarter and net income of $2,743,088 or $0.37 per diluted share for the three months ended December 31, 2021. Net income for the full year 2022 was $10,563,572 or $1.45 per diluted share compared to net income of $10,727,961 or $1.46 per diluted share for the full year 2021. Tangible book value per share in the fourth quarter of 2022 was higher by 4.72% from the prior quarter but was lower by 8.91% compared to the same period in 2021, primarily due to changes in Accumulated Other Comprehensive Income ("AOCI").
Joseph J. Thomas, President, and CEO, commented, "I am proud of the entire Freedom Bank team that worked diligently to deliver strong fourth quarter earnings that were higher by 6.39% compared to the prior quarter, and an increase in tangible book value per share1, excluding changes in AOCI of 13.29%, to $12.87, on December 31, 2022. Full year earnings of $10.56 million reflect our core bank's profitability, which was strong compared to the prior year, with loan growth of 21.78%, a 10-basis point increase in net interest margin2 to 3.63%, and an improvement in the efficiency ratio3 to 61.11% in 2022 from 63.14% in the prior year. These results enabled the Company to overcome a $5.2 million decline in mortgage revenue in 2022 compared to 2021, in part offset by a solid contribution from the SBA lending business which delivered an increase in gain on sale revenue of 127.94% compared to the prior year. We accomplished all of this while maintaining a strong allowance for loan losses at 1.10% of total loans (excluding PPP loans) and Tier 1 Capital Ratio at 13.37%, all of which are important as the economic environment becomes more challenging and uncertain."
Fourth Quarter and Full Year 2022 Highlights include:
- Net income for the fourth quarter was $2,861,940 or $0.39 per diluted share compared to net income of $2,689,950 or $0.37 per diluted share in the linked quarter and net income of $2,743,088 or $0.37 per diluted share for the three months ending December 31, 2021.
- Net income for the full year 2022 was lower by 1.53% compared to the full year 2021. Net income was $10,563,572 or $1.45 per diluted share compared to net income of $10,727,961 or $1.46 per diluted share for the full year 2021.
- Return on Average Assets ("ROAA") was 1.17% for the quarter ended December 31, 2022, compared to 1.15% for the linked quarter and 1.22% for the three months ended December 31, 2021. ROAA for the full year 2022 was 1.16% compared to 1.27% for the full year 2021.
- Return on Average Equity ("ROAE") was 15.51% for the three months ended December 31, 2022, compared to 13.81% for the linked quarter and 13.11% for the three months ended December 31, 2021. ROAE for the full year 2022 was 13.55% compared to 13.60% for the full year 2021.
- Total assets were $985.06 million on December 31, 2022, an increase of $108.39 million or 12.36% from total assets on December 31, 2021.
- Loans held-for-investment (excluding PPP loans) increased by $36.91 million or 5.62% during the quarter and by $124.16 million or 21.78% for the full year 2022 on continued strong portfolio loan growth.
- PPP loan balances decreased by $25.53 million during 2022 on loan forgiveness and mortgage loans held for sale decreased by $8.23 million during the year, on continued decline in mortgage activity.
- Cash balances at the Federal Reserve decreased by $18.99 million during the fourth quarter.
- Available for sale investment securities were unchanged during the fourth quarter and increased by $10.04 million in 2022.
- Total deposits increased by $10.40 million or by 1.24% in the fourth quarter and increased by $147.30 million or 20.99% for the full year 2022. Non-interest-bearing demand deposits decreased by $17.31 million from the linked quarter to $187.42 million and were lower by $34.75 million for the full year 2022 and represented 22.08% of total deposits on December 31, 2022.
- The net interest margin decreased in the fourth quarter to 3.49%, lower by 22 basis points compared to the linked quarter and lower by 25 basis points compared to the same period in 2021. The decrease in the net interest margin across linked and calendar quarters was primarily due to an increase in funding costs.
- The cost of funds was 1.69% for the fourth quarter, higher by 77 basis points compared to the linked quarter and higher by 136 basis points compared to the same period in 2021, as deposit costs increased, partially offset by income from balance sheet hedges.
- Cost of funds was 0.89% for the full year 2022 compared to 0.40% for the full year 2021, primarily due to increased deposit costs across all deposit categories in 2022.
- Non-interest income decreased by 4.32% compared to the linked quarter and decreased by 38.31% compared to the same period in 2021. Non-interest income in the full year 2022 was lower by 41.39% compared to the prior year. The decrease in non-interest income in 2022 was primarily due to lower mortgage revenue stemming from a slowdown in mortgage activity in 2022 resulting from higher rates and tight housing inventory, compared to the prior year, as well as lower gain-on-sale revenue from SBA loans. Premiums in the secondary market were lower in 2022, which led to more SBA loan originations being retained on the balance sheet.
- Non-interest expense in the fourth quarter decreased by 3.09% compared to the linked quarter and decreased by 12.21% compared to the same period in 2021. Non-interest expenses for the full year 2022 were lower by 5.63% compared to the prior year. The decrease in non-interest expense for linked and calendar quarters, as well as the full year was primarily due to lower performance related costs, such as commissions paid to mortgage loan officers and mortgage settlement costs, as well as lower fees for legal and other professional services.
- The Efficiency Ratio was 58.44% for the quarter ended December 31, 2022, compared to 59.19% for the linked quarter and 62.62% for the same period in 2021. The efficiency ratio for the full year 2022 was 61.11% compared to 63.14% for the full year 2021.
- Credit metrics improved in the fourth quarter causing the ratio of non-performing assets to total assets to decrease to 0.88% on December 31, 2022, compared to 1.01% on December 31, 2021. Most of the Company's non-accrual loan balances comprise a single relationship and various workout solutions are currently being implemented to resolve this relationship.
- As a result of an increase in loans held-for-investment during the quarter and an assessment of the risks in the held-for-investment loan portfolio, the Company recognized a $327,000 provision for loan losses during the fourth quarter and the ratio of the allowance for loan and lease losses to loans held-for-investment was 1.09% (or 1.10% excluding PPP loans, which carry a full faith and credit guarantee of the US Government) compared to 1.12% in the linked quarter (or 1.13% excluding PPP loans).
- The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 11.32%, Common Equity Tier 1 ratio of 13.37%, Tier 1 Risk Based Capital ratio of 13.37% and a Total Capital ratio of 14.28%.
Net Interest Income
The Company recorded net interest income of $8.11 million for the fourth quarter of 2022, lower by 1.52% compared to the linked quarter, and 1.16% higher than the same period in 2021. The net interest margin in the fourth quarter of 2022 was 3.49%, lower by 22 basis points compared to the linked quarter and lower by 25 basis points compared to the same period in 2021. The net interest margin for the full year 2022 was 3.63%, higher by 10 basis points compared to 2021.
The following factors contributed to the changes in net interest margin during the fourth quarter of 2022 compared to the linked and calendar quarters:
- Yields on average earning assets increased by 53 basis points to 5.11% compared to 4.58% in the linked quarter. Yields on average earning assets increased by 106 basis points in 2022 compared to the calendar quarter. Higher yields on investment securities, loans and cash balances at the Federal Reserve drove the increase in yields on earning assets.
- Loan yields increased by 33 basis points to 5.47% from 5.14% in the linked quarter, while yields on investment securities increased by 82 basis points to 4.11% from 3.29% in the linked quarter. Loan yields increased by 36 basis points, while yields on investment securities increased by 157 basis points compared to the calendar quarter. Repricing of loans and securities in the higher rate environment was the primary reason for higher yields on these asset categories.
- Cost of funds increased by 77 basis points to 1.69% from 0.92% in the linked quarter, and by 136 basis points compared to the calendar quarter, due to rising rates on interest checking and money market deposit accounts. The increase in deposit expense was partially offset by interest income from balance sheet hedges, in the form of interest rate swaps, whereby the bank pays a fixed rate and receives the Federal Funds effective rate for the duration of the swaps. The notional amount of the interest rate swaps was $50 million with a weighted average remaining term of 4.20 years, as of December 31, 2022.
The following factors contributed to the changes in net interest margin during the full year 2022 compared to the prior year:
- Yields on average earning assets increased by 57 basis points to 4.47% compared to 3.90% in the prior year, driven by higher yields on loans, investments, and interest earning cash balances.
- Loan yields increased by 35 basis points to 5.03% from 4.68% in the prior year, while yields on investment securities increased by 87 basis points to 3.21% from 2.34% in the prior year.
- Cost of funds increased by 49 basis points to 0.89%, from 0.40% in the prior year, on higher deposit and borrowing costs.
Non-interest Income
Non-interest income was $1.09 million for the fourth quarter, a decrease of 4.32% when compared to the linked quarter and a decrease of 38.31% when compared to the same period in 2021. Non-interest income in 2022 was lower by 41.39% compared to the prior year. The decrease in non-interest income compared to linked and calendar quarters, as well to the prior year, was primarily due to lower mortgage revenue stemming from a slowdown in mortgage activity. Additionally, secondary market premiums for SBA loans decreased during 2022, and the Company elected to retain more SBA loans on its balance sheet instead of selling them into the secondary market.
Total Revenue4
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 1.86% compared to the linked quarter and lower by 5.94% compared to the calendar quarter in 2021, primarily due to a decline in non-interest income stemming from reduced mortgage activity. Total revenue for the full year 2022 was lower by 2.49% compared to 2021, primarily due to lower non-interest income, also related to a decline in mortgage activity, compared to the prior year.
Non-interest Expenses
Non-interest expenses in the fourth quarter of 2022 decreased by 3.09% compared to the linked quarter and decreased by 12.21% compared to the same period in 2021. Non-interest expenses for the full year 2022 were lower by 5.63% compared to the prior year. The decrease in non-interest expense for linked and calendar quarters, as well as the full year was primarily due to lower performance related costs, such as commissions paid to mortgage loan officers and mortgage settlement costs, as well as lower fees for legal and other professional services.
The Efficiency Ratio was 58.44% for the quarter ended December 31, 2022, compared to 59.19% for the prior quarter and 62.62% for the same period in 2021. The Efficiency Ratio for the full year 2022 was 61.11% compared to 63.14% for 2021.
Asset Quality
- Non-accrual loans were $8,638,559 or 1.23% of loans held-for-investment as of December 31, 2022, compared to $8,677,688 or 1.31% of loans held-for-investment at the end of the linked quarter. There were no troubled debt restructurings ("TDRs") as of December 31, 2022. As of December 31, 2022, there were no loans that were 90 days or more past due and accruing. There was no Other Real Estate Owned ("OREO") on the balance sheet as of December 31, 2022. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, loans that are TDRs but not on non-accrual, and OREO assets) were $8,638,559 or 0.88% of total assets as of December 31, 2022, compared to $8,677,688 or 0.90% of assets, at the end of the linked quarter. Most of the Company's non-accrual loan balances comprise a single relationship and various workout solutions are currently being implemented to resolve this relationship.
Following an assessment of the collectability of the loans held-for-investment at the end of the third quarter, it was determined that a $327,000 provision for loan losses was necessary to account for loan growth and changes to environmental factors. The Company booked a provision of $355,000 in the third quarter of 2022. The Company's ALLL ratio was 1.09% of loans held-for-investment (or 1.10% of loans held-for investment excluding PPP loans) as of December 31, 2022, compared to an ALLL ratio of 1.12% as of September 30, 2022 (or 1.13% of loans held-for-investment excluding PPP loans).
The Company adopted ASU 2016-13, Topic 326, Financial Instruments – Credit Losses, effective January 1, 2023. The accounting standard requires the use of the current expected credit losses methodology (CECL) for estimating allowances for credit losses. We do not expect that the adoption of CECL will have a material impact on the Company's allowance for credit losses.
Total Assets
Total assets as of December 31, 2022, were $985.06 million compared to $964.28 million as of September 30, 2022. Changes in major asset categories during linked quarters were as follows:
- Cash balances at the Federal Reserve and Federal Home Loan Banks decreased by $18.99 million, as the Company deployed excess liquidity to fund loan growth.
- Available for sale investment balances were flat.
- Other loans held-for investment grew by $36.91 million.
- Mortgage loans held-for-sale increased by $1.96 million.
Total Liabilities
Total liabilities as of December 31, 2022, were $910.12 million compared to total liabilities of $891.79 million as of September 30, 2022. Total deposits were $848.90 million compared to total deposits of $838.60 million as of September 30, 2022. Non-interest-bearing demand deposits decreased by $17.31 million during the quarter and comprised 22.08% of total deposits at the end of 2022. Other interest-bearing demand deposits increased by $50.90 million, savings deposits were flat and time deposits decreased by $23.12 million during the quarter. Federal Home Loan Bank advances increased by $10.00 million during the quarter.
Stockholders' Equity and Capital
Stockholders' equity as of December 31, 2022, was $74.95 million compared to $72.49 million as of September 30, 2022. Additional paid-in capital was $58.24 million on December 31, 2022, compared to $58.45 million as of September 30, 2022. Accumulated Other Comprehensive Income ("AOCI"), which generally comprises unrealized gains and losses on available-for-sale securities and derivative positions, was generally unchanged during the fourth quarter of 2022. Retained earnings were $34.11 million on December 31, 2022, compared to $31.25 million at the end of the prior quarter. Total shares issued and outstanding were 7,184,259 as of December 31, 2022, compared to 7,281,606 shares as of September 30, 2022. The tangible book value of the Company's common stock on December 31, 2022, was $10.43 per share compared to $9.96 per share on September 30, 2022, and $11.59 per share on December 31, 2021. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on December 31, 2022, was $12.87 per share compared to $12.33 per share on September 30, 2022, and $11.36 per share on December 31, 2021.
In 2022, the Company repurchased 173,400 shares of its common stock, pursuant to a Board-authorized stock repurchase plan of 250,000 shares.
As of December 31, 2022, 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 December 31, 2022, and September 30, 2022, were as follows:
December 31, 2022 | September 30, 2022 | |
Total Capital Ratio | 14.28 % | 14.55 % |
Tier 1 Capital Ratio | 13.37 % | 13.62 % |
Common Equity | ||
Tier 1 Capital Ratio | 13.37 % | 13.62 % |
Leverage Ratio | 11.32 % | 11.59 % |
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. The Freedom Bank of Virginia also has a mortgage division headquartered in Chantilly, Virginia and an SBA division headquartered in Harrison, NY. 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 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; 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. Some of the financial tables in this document reflect classifications to accounts to improve consistency in financial reporting.
FREEDOM FINANCIAL HOLDINGS | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | (Unaudited) | (Audited) | |||||||
December 31, | September 30, | December 31, | |||||||
2022 | 2022 | 2021 | |||||||
ASSETS | |||||||||
Cash and Due from Banks | $ | 2,099,062 | $ | 1,959,084 | $ | 2,536,450 | |||
Interest Bearing Deposits with Banks | 32,674,953 | 51,668,557 | 31,696,891 | ||||||
Securities Available-for-Sale | 181,558,037 | 181,558,490 | 171,532,394 | ||||||
Securities Held-to-Maturity | 17,096,010 | 17,586,727 | 18,012,874 | ||||||
Restricted Stock Investments | 3,889,200 | 3,389,200 | 3,321,250 | ||||||
Loans Held for Sale | 5,064,385 | 3,107,940 | 13,297,125 | ||||||
PPP Loans Held for Investment | 5,829,662 | 6,824,897 | 32,355,451 | ||||||
Other Loans Held for Investment | 694,173,347 | 657,263,342 | 570,013,870 | ||||||
Allowance for Loan Losses | (7,614,120) | (7,407,120) | (6,486,120) | ||||||
Net Loans | 692,388,889 | 656,681,120 | 595,883,201 | ||||||
Bank Premises and Equipment, net | 989,072 | 1,018,840 | 1,139,204 | ||||||
Accrued Interest Receivable | 3,784,076 | 2,822,515 | 2,466,712 | ||||||
Deferred Tax Asset | 1,982,776 | 1,842,093 | 1,631,115 | ||||||
Bank-Owned Life Insurance | 26,248,974 | 26,090,001 | 24,579,879 | ||||||
Right of Use Asset, net | 1,736,285 | 1,980,602 | 2,704,888 | ||||||
Other Assets | 15,551,415 | 14,573,695 | 7,870,617 | ||||||
Total Assets | $ | 985,063,133 | $ | 964,278,863 | $ | 876,672,600 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Deposits | |||||||||
Demand Deposits | |||||||||
Non-interest Bearing | $ | 187,416,628 | $ | 204,729,740 | 222,167,095 | ||||
Interest Bearing | 409,760,573 | 358,864,223 | 300,361,979 | ||||||
Savings Deposits | 5,977,828 | 6,044,616 | 5,841,800 | ||||||
Time Deposits | 245,840,048 | 268,956,966 | 173,322,527 | ||||||
Total Deposits | 848,995,078 | 838,595,544 | 701,693,401 | ||||||
Federal Home Loan Bank Advances | 25,000,000 | 15,000,000 | 29,035,714 | ||||||
Other Borrowings | 5,826,298 | 7,075,513 | 32,055,915 | ||||||
Subordinated Debt (Net of Issuance Costs) | 19,674,794 | 19,675,313 | 19,616,869 | ||||||
Accrued Interest Payable | 1,265,796 | 741,780 | 294,237 | ||||||
Lease Liability | 1,862,773 | 2,088,416 | 2,823,885 | ||||||
Other Liabilities | 7,492,264 | 8,612,267 | 6,993,855 | ||||||
Total Liabilities | $ | 910,117,002 | $ | 891,788,834 | $ | 792,513,876 | |||
Stockholders' Equity | |||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized: | |||||||||
0 Shares Issued and Outstanding, December 31, 2022, September 30, 2022, and December 31, 2021, | |||||||||
Common Stock, $0.01 Par Value, 25,000,000 Shares: | |||||||||
23,000,000 Shares Voting and 2,000,000 Shares Non-voting. | |||||||||
Voting Common Stock: | |||||||||
6,511,259, 6,608,606 and 6,676,545 Shares Issued and Outstanding | |||||||||
at December 31, 2022, September 30, 2022 and December 31, 2021 respectively | |||||||||
(Includes 93,003, 93,003, and 106,171 Unvested Shares on December 31, 2022, September 30, 2022, and | |||||||||
December 31, 2021, respectively) | 65,160 | 65,156 | 65,898 | ||||||
Non-Voting Common Stock: | |||||||||
673,000 Shares Issued and Outstanding at December 31, 2022, September 30, 2022, | |||||||||
and December 31, 2021 | 6,730 | 6,730 | 6,730 | ||||||
Additional Paid-in Capital | 58,241,451 | 58,454,038 | 59,884,615 | ||||||
Accumulated Other Comprehensive Income, Net | (17,480,993) | (17,287,737) | 651,272 | ||||||
Retained Earnings | 34,113,783 | 31,251,842 | 23,550,209 | ||||||
Total Stockholders' Equity | 74,946,131 | 72,490,030 | 84,158,724 | ||||||
Total Liabilities and Stockholders' Equity | $ | 985,063,133 | $ | 964,278,863 | $ | 876,672,600 |
FREEDOM FINANCIAL HOLDINGS | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
For the three | For the three | For the twelve | For the twelve | |||||||||
months ended | months ended | months ended | months ended | |||||||||
December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||
Interest Income | ||||||||||||
Interest and Fees on Loans | $ | 9,503,228 | $ | 7,556,406 | $ | 32,213,808 | $ | 28,335,210 | ||||
Interest on Investment Securities | 2,061,298 | 1,092,427 | 6,111,756 | 3,135,735 | ||||||||
Interest on Deposits with Other Banks | 339,592 | 35,908 | 601,382 | 86,903 | ||||||||
Total Interest Income | 11,904,118 | 8,684,741 | 38,926,946 | 31,557,848 | ||||||||
Interest Expense | ||||||||||||
Interest on Deposits | 3,685,412 | 470,791 | 6,512,624 | 2,275,780 | ||||||||
Interest on Borrowings | 101,216 | 189,834 | 826,392 | 766,060 | ||||||||
Total Interest Expense | 3,786,628 | 660,625 | 7,339,016 | 3,041,840 | ||||||||
Net Interest Income | 8,117,490 | 8,024,116 | 31,587,930 | 28,516,009 | ||||||||
Provision for Loan Losses | (327,000) | (355,000) | (1,248,000) | (839,000) | ||||||||
Net Interest Income After | ||||||||||||
Provision for Loan Losses | 7,790,490 | 7,669,116 | 30,339,930 | 27,677,009 | ||||||||
Non-Interest Income | ||||||||||||
Mortgage Loan Gain-on-Sale and Fee Revenue | 357,654 | 1,456,195 | 3,091,941 | 8,286,068 | ||||||||
SBA Gain-on-Sale Revenue | 404,409 | - | 997,967 | 437,825 | ||||||||
Service Charges and Other Income | 92,235 | 95,335 | 622,369 | 254,911 | ||||||||
Gain on Sale of Securities | 20,503 | 6,315 | 30,972 | 7,432 | ||||||||
Servicing Income | 53,332 | 53,479 | 218,190 | 192,413 | ||||||||
Swap Fee Income | - | - | 68,404 | - | ||||||||
Increase in Cash Surrender Value of Bank- | ||||||||||||
owned Life Insurance | 158,972 | 151,054 | 669,094 | 544,665 | ||||||||
Total Non-interest Income | 1,087,106 | 1,762,377 | 5,698,937 | 9,723,314 | ||||||||
Non-Interest Expenses | ||||||||||||
Officer and Employee Compensation | ||||||||||||
and Benefits | 3,495,260 | 4,055,344 | 15,160,439 | 16,341,245 | ||||||||
Occupancy Expense | 318,462 | 317,038 | 1,266,050 | 1,232,056 | ||||||||
Equipment and Depreciation Expense | 179,679 | 170,335 | 705,170 | 662,050 | ||||||||
Insurance Expense | 140,926 | 74,357 | 363,099 | 267,583 | ||||||||
Professional Fees | 238,732 | 470,786 | 1,062,306 | 1,365,057 | ||||||||
Data and Item Processing | 304,767 | 299,120 | 1,212,233 | 1,181,347 | ||||||||
Advertising | 124,450 | 80,569 | 448,904 | 329,059 | ||||||||
Franchise Taxes and State Assessment Fees | 282,796 | 200,084 | 990,442 | 778,069 | ||||||||
Mortgage Fees and Settlements | 23,156 | 172,967 | 355,710 | 1,141,200 | ||||||||
Other Operating Expense | 271,396 | 287,458 | 1,221,355 | 847,150 | ||||||||
Total Non-interest Expenses | 5,379,623 | 6,128,057 | 22,785,708 | 24,144,815 | ||||||||
Income Before Income Taxes | 3,497,972 | 3,303,435 | 13,253,160 | 13,255,507 | ||||||||
Income Tax Expense | 636,033 | 560,347 | 2,689,588 | 2,527,546 | ||||||||
Net Income | $ | 2,861,939 | $ | 2,743,088 | $ | 10,563,572 | $ | 10,727,961 | ||||
Earnings per Common Share - Basic | $ | 0.40 | $ | 0.37 | $ | 1.45 | $ | 1.47 | ||||
Earnings per Common Share - Diluted | $ | 0.39 | $ | 0.37 | $ | 1.45 | $ | 1.46 | ||||
Weighted-Average Common Shares | ||||||||||||
Outstanding - Basic | 7,238,807 | 7,336,016 | 7,285,726 | 7,316,505 | ||||||||
Weighted-Average Common Shares | ||||||||||||
Outstanding - Diluted | 7,252,669 | 7,380,138 | 7,307,659 | 7,363,536 | ||||||||
Efficiency Ratio | 58.44 % | 62.62 % | 61.11 % | 63.14 % |
FREEDOM FINANCIAL HOLDINGS | ||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
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months ended | months ended | months ended | months ended | months ended | ||||||||||
December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||
Interest Income | ||||||||||||||
Interest and Fees on Loans | $ | 9,503,228 | $ | 8,408,971 | $ | 7,159,610 | $ | 7,141,999 | $ | 7,556,406 | ||||
Interest on Investment Securities | 2,061,298 | 1,626,322 | 1,278,759 | 1,145,377 | 1,092,427 | |||||||||
Interest on Deposits with Other Banks | 339,592 | 171,644 | 74,550 | 15,596 | 35,908 | |||||||||
Total Interest Income | 11,904,118 | 10,206,937 | 8,512,919 | 8,302,972 | 8,684,741 | |||||||||
Interest Expense | ||||||||||||||
Interest on Deposits | 3,685,412 | 1,735,027 | 673,396 | 418,788 | 470,791 | |||||||||
Interest on Borrowings | 101,216 | 229,283 | 225,115 | 270,778 | 189,834 | |||||||||
Total Interest Expense | 3,786,628 | 1,964,310 | 898,511 | 689,566 | 660,625 | |||||||||
Net Interest Income | 8,117,490 | 8,242,627 | 7,614,408 | 7,613,406 | 8,024,116 | |||||||||
Provision for Loan Losses | (327,000) | (382,000) | (375,000) | (164,000) | (355,000) | |||||||||
Net Interest Income after | ||||||||||||||
Provision for Loan Losses | 7,790,490 | 7,860,627 | 7,239,408 | 7,449,406 | 7,669,116 | |||||||||
Non-Interest Income | ||||||||||||||
Mortgage Loan Gain-on-Sale and Fee Revenue | 357,654 | 710,149 | 986,160 | 1,037,978 | 1,456,195 | |||||||||
SBA Gain-on-Sale Revenue | 404,409 | 63,727 | 263,806 | 266,023 | - | |||||||||
Service Charges and Other Income | 92,235 | 52,755 | 175,853 | 301,396 | 95,335 | |||||||||
Gains on Sale of Securities | 20,503 | 10,600 | - | - | 6,315 | |||||||||
Servicing Income | 53,332 | 54,792 | 57,917 | 52,149 | 53,479 | |||||||||
Swap Fee Income | - | 68,404 | - | - | - | |||||||||
Increase in Cash Surrender Value of Bank- | ||||||||||||||
owned Life Insurance | 158,972 | 175,815 | 173,679 | 160,628 | 151,054 | |||||||||
Total Non-interest Income | 1,087,106 | 1,136,243 | 1,657,415 | 1,818,174 | 1,762,378 | |||||||||
Total Revenue4 | $ | 9,204,596 | $ | 9,378,870 | $ | 9,271,823 | $ | 9,431,580 | $ | 9,786,494 | ||||
Non-Interest Expenses | ||||||||||||||
Officer and Employee Compensation | ||||||||||||||
and Benefits | 3,495,260 | 3,655,913 | 4,005,945 | 4,003,321 | 4,055,344 | |||||||||
Occupancy Expense | 318,462 | 311,070 | 304,153 | 332,366 | 317,038 | |||||||||
Equipment and Depreciation Expense | 179,679 | 170,070 | 183,315 | 172,107 | 170,335 | |||||||||
Insurance Expense | 140,926 | 76,563 | 74,983 | 70,626 | 74,357 | |||||||||
Professional Fees | 238,732 | 251,597 | 323,647 | 248,329 | 470,786 | |||||||||
Data and Item Processing | 304,767 | 299,501 | 342,340 | 265,625 | 299,120 | |||||||||
Advertising | 124,450 | 104,119 | 114,966 | 105,369 | 80,569 | |||||||||
Franchise Taxes and State Assessment Fees | 282,796 | 282,912 | 224,636 | 200,099 | 200,084 | |||||||||
Mortgage Fees and Settlements | 23,156 | 97,495 | 129,210 | 105,849 | 172,967 | |||||||||
Other Operating Expense | 271,396 | 301,977 | 332,567 | 315,416 | 287,459 | |||||||||
Total Non-interest Expenses | 5,379,623 | 5,551,217 | 6,035,762 | 5,819,107 | 6,128,059 | |||||||||
Income before Income Taxes | 3,497,972 | 3,445,652 | 2,861,061 | 3,448,473 | 3,303,435 | |||||||||
Income Tax Expense | 636,033 | 755,702 | 633,677 | 664,176 | 560,347 | |||||||||
Net Income | $ | 2,861,939 | $ | 2,689,950 | $ | 2,227,385 | $ | 2,784,297 | $ | 2,743,088 | ||||
Earnings per Common Share - Basic | $ | 0.40 | $ | 0.37 | $ | 0.31 | $ | 0.38 | $ | 0.37 | ||||
Earnings per Common Share - Diluted | $ | 0.39 | $ | 0.37 | $ | 0.30 | $ | 0.38 | $ | 0.37 | ||||
Weighted-Average Common Shares | ||||||||||||||
Outstanding - Basic | 7,238,807 | 7,271,784 | 7,290,417 | 7,324,527 | 7,336,016 | |||||||||
Weighted-Average Common Shares | ||||||||||||||
Outstanding - Diluted | 7,252,669 | 7,285,786 | 7,312,200 | 7,362,290 | 7,380,138 |
Average Balances, Income and Expenses, Yields and Rates | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||
December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||
Average Balance | Income/ Expense | Yield | Average Balance | Income/ Expense | Yield | Average Balance | Income/ Expense | Yield | Average Balance | Income/ Expense | Yield | Average Balance | Income/ Expense | Yield | ||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash | $ 35,596,385 | $ 339,592 | 3.78 % | $ 37,133,361 | $ 171,644 | 1.83 % | $ 35,469,783 | $ 74,550 | 0.84 % | $ 40,375,846 | $ 15,596 | 0.16 % | $ 91,458,843 | $ 35,908 | 0.16 % | |||||||||||||||
Investments (Tax Exempt) | 20,664,285 | 184,800 | 21,615,440 | 186,314 | 22,199,648 | 187,816 | 23,331,336 | 187,632 | 23,460,432 | 190,195 | ||||||||||||||||||||
Investments (Taxable) | 182,096,499 | 1,915,306 | 179,086,818 | 1,479,134 | 167,905,374 | 1,130,385 | 165,979,811 | 957,745 | 153,582,906 | 942,173 | ||||||||||||||||||||
Total Investments | 202,760,784 | 2,100,106 | 4.11 % | 200,702,258 | 1,665,447 | 3.29 % | 190,105,022 | 1,318,201 | 2.78 % | 189,311,147 | 1,145,377 | 2.45 % | 177,043,338 | 1,132,368 | 2.54 % | |||||||||||||||
Total Loans | 689,158,712 | 9,503,228 | 5.47 % | 648,964,205 | 8,408,971 | 5.14 % | 615,110,994 | 7,159,610 | 4.67 % | 609,412,292 | 7,141,999 | 4.75 % | 586,725,477 | 7,556,406 | 5.11 % | |||||||||||||||
Earning Assets | 927,515,881 | 11,942,926 | 5.11 % | 886,799,824 | 10,246,063 | 4.58 % | 840,685,799 | 8,552,361 | 4.08 % | 839,099,285 | 8,302,972 | 4.01 % | 855,227,658 | 8,724,682 | 4.05 % | |||||||||||||||
Assets | $ 969,662,029 | $ 929,265,436 | $ 880,810,523 | $ 876,180,566 | $ 891,226,178 | |||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Interest Checking | $ 130,004,364 | $ 862,014 | 2.63 % | $ 132,342,702 | $ 458,605 | 1.37 % | $ 128,008,728 | $ 134,727 | 0.42 % | $ 110,305,411 | $ 48,246 | 0.18 % | $ 88,172,651 | $ 38,893 | 0.18 % | |||||||||||||||
Money Market | 240,285,109 | 1,383,701 | 2.28 % | 216,851,258 | 581,082 | 1.06 % | 203,094,067 | 180,932 | 0.36 % | 206,230,959 | 89,516 | 0.18 % | 202,560,648 | 85,450 | 0.17 % | |||||||||||||||
Savings | 6,108,935 | 3,067 | 0.20 % | 6,659,935 | 2,119 | 0.13 % | 8,303,586 | 2,147 | 0.10 % | 6,652,079 | 1,725 | 0.11 % | 5,336,531 | 1,431 | 0.11 % | |||||||||||||||
Time Deposits | 261,984,431 | 1,436,630 | 2.18 % | 218,365,002 | 693,221 | 1.26 % | 186,130,419 | 355,590 | 0.77 % | 174,009,190 | 279,301 | 0.65 % | 187,240,613 | 345,016 | 0.73 % | |||||||||||||||
Interest Bearing Deposits | 638,382,839 | 3,685,412 | 2.29 % | 574,218,895 | 1,735,027 | 1.20 % | 525,536,800 | 673,396 | 0.51 % | 497,197,639 | 418,788 | 0.34 % | 483,310,443 | 470,790 | 0.39 % | |||||||||||||||
Borrowings | $ 46,940,688 | $ 101,216 | 0.86 % | $ 53,279,949 | $ 229,283 | 1.72 % | $ 56,154,130 | $ 225,115 | 1.61 % | $ 71,634,636 | $ 270,778 | 1.53 % | $ 81,399,848 | $ 189,834 | 0.93 % | |||||||||||||||
Interest Bearing Liabilities | 685,323,527 | 3,786,628 | 2.19 % | 627,498,844 | 1,964,310 | 1.24 % | 581,690,931 | 898,511 | 0.62 % | 568,832,275 | 689,566 | 0.49 % | 564,710,291 | 660,624 | 0.46 % | |||||||||||||||
Non Interest Bearing Deposits | $ 202,342,666 | $ 215,426,363 | $ 212,429,933 | $ 213,315,104 | $ 231,181,073 | |||||||||||||||||||||||||
Cost of Funds | 1.69 % | 0.92 % | 0.45 % | 0.36 % | 0.33 % | |||||||||||||||||||||||||
Net Interest Margin2 | $ 8,156,298 | 3.49 % | $ 8,281,753 | 3.71 % | $ 7,653,850 | 3.65 % | $ 7,613,406 | 3.68 % | $ 8,064,057 | 3.74 % | ||||||||||||||||||||
Shareholders Equity | $ 73,185,633 | $ 77,295,762 | $ 78,112,151 | $ 83,440,208 | $ 82,994,140 | |||||||||||||||||||||||||
2 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 |
Average Balances, Income and Expenses, Yields and Rates | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, 2022 | Income / | December 31, 2021 | Income / | December 31, 2022 | Income / | December 31, 2021 | Income / | ||||||||||||||||
Average Balance | Expense | Yield | Average Balance | Expense | Yield | Average Balance | Expense | Yield | Average Balance | Expense | Yield | ||||||||||||
Assets | |||||||||||||||||||||||
Cash | $ 35,596,385 | $ 339,592 | 3.78 % | $ 91,458,843 | $ 35,908 | 0.16 % | $ 37,130,721 | $ 601,382 | 1.62 % | $ 67,640,215 | $ 86,903 | 0.13 % | |||||||||||
Investments (Tax Exempt) | 20,664,285 | 184,800 | 23,460,432 | 190,195 | 21,944,446 | 746,561 | 24,492,967 | 668,682 | |||||||||||||||
Investments (Taxable) | 182,096,499 | 1,915,306 | 153,582,906 | 942,173 | 173,825,855 | 5,521,973 | 115,765,523 | 2,607,476 | |||||||||||||||
Total Investments | 202,760,784 | 2,100,106 | 4.11 % | 177,043,338 | 1,132,368 | 2.54 % | 195,770,302 | 6,268,534 | 3.20 % | 140,258,490 | 3,276,158 | 2.34 % | |||||||||||
Total Loans | 689,158,712 | 9,503,228 | 5.47 % | 586,725,477 | 7,556,406 | 5.11 % | 640,902,781 | 32,213,808 | 5.03 % | 605,029,296 | 28,335,210 | 4.68 % | |||||||||||
Earning Assets | 927,515,881 | 11,942,926 | 5.11 % | 855,227,658 | 8,724,682 | 4.05 % | 873,803,803 | 39,083,724 | 4.47 % | 812,928,001 | 31,698,271 | 3.90 % | |||||||||||
Assets | $ 969,662,029 | $ 891,226,178 | $ 914,277,631 | $ 845,256,803 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest Checking | $ 130,004,364 | 862,014 | 2.63 % | $ 88,172,651 | $ 38,893 | 0.18 % | $ 126,903,635 | $ 1,503,592 | 1.18 % | $ 47,966,245 | $ 77,669 | 0.16 % | |||||||||||
Money Market | 240,285,109 | 1,383,701 | 2.28 % | 202,560,648 | 85,450 | 0.17 % | 215,044,593 | 2,235,231 | 1.04 % | 176,412,939 | 292,283 | 0.17 % | |||||||||||
Savings | 6,108,935 | 3,067 | 0.20 % | 5,336,531 | 1,431 | 0.11 % | 6,928,902 | 9,059 | 0.13 % | 4,250,652 | 4,494 | 0.11 % | |||||||||||
Time Deposits | 261,984,431 | 1,436,630 | 2.18 % | 187,240,613 | 345,016 | 0.73 % | 210,385,871 | 2,764,742 | 1.31 % | 189,083,082 | 1,901,335 | 1.01 % | |||||||||||
Interest Bearing Deposits | 638,382,839 | 3,685,412 | 2.29 % | 483,310,443 | 470,790 | 0.39 % | 559,263,003 | 6,512,624 | 1.16 % | 417,712,918 | 2,275,781 | 0.54 % | |||||||||||
Borrowings | $ 46,940,688 | 101,216 | 0.86 % | $ 81,399,848 | 189,834 | 0.93 % | $ 56,924,498 | $ 826,392 | 1.45 % | $ 113,558,822 | $ 766,060 | 0.67 % | |||||||||||
Interest Bearing Liabilities | 685,323,527 | 3,786,628 | 2.19 % | 564,710,291 | 660,624 | 0.46 % | 616,187,501 | 7,339,016 | 1.19 % | 531,271,740 | 3,041,841 | 0.57 % | |||||||||||
Non Interest Bearing Deposits | $ 202,342,666 | $ 231,181,073 | $ 210,860,915 | $ 222,747,496 | |||||||||||||||||||
Cost of Funds | 1.69 % | 0.33 % | 0.89 % | 0.40 % | |||||||||||||||||||
Net Interest Margin2 | $ 8,156,298 | 3.49 % | $ 8,064,057 | 3.74 % | $ 31,744,708 | 3.63 % | $ 28,656,431 | 3.53 % | |||||||||||||||
Shareholders Equity | $ 73,185,633 | $ 82,994,140 | $ 77,978,391 | $ 78,908,655 | |||||||||||||||||||
ROAA | 1.17 % | 1.22 % | 1.16 % | 1.27 % | |||||||||||||||||||
ROAE | 15.51 % | 13.11 % | 13.55 % | 13.60 % | |||||||||||||||||||
2 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 |
Selected Financial Data by Quarter Ended: | |||||
(Unaudited) | |||||
Balance Sheet Ratios | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 |
Loans held-for-investment to Deposits | 82.45 % | 79.19 % | 83.49 % | 83.07 % | 85.85 % |
Income Statement Ratios (Quarterly) | |||||
Return on Average Assets (ROAA) | 1.17 % | 1.15 % | 1.01 % | 1.29 % | 1.22 % |
Return on Average Equity (ROAE) | 15.51 % | 13.81 % | 11.44 % | 13.53 % | 13.11 % |
Efficiency Ratio3 | 58.44 % | 59.19 % | 65.10 % | 61.70 % | 62.62 % |
Net Interest Margin2 | 3.49 % | 3.71 % | 3.65 % | 3.68 % | 3.74 % |
Yield on Average Earning Assets | 5.11 % | 4.58 % | 4.08 % | 4.01 % | 4.05 % |
Yield on Securities | 4.11 % | 3.29 % | 2.78 % | 2.45 % | 2.54 % |
Yield on Loans | 5.47 % | 5.14 % | 4.67 % | 4.75 % | 5.11 % |
Cost of Funds | 1.69 % | 0.92 % | 0.45 % | 0.36 % | 0.33 % |
Noninterest income to Total Revenue | 11.81 % | 12.11 % | 17.88 % | 19.28 % | 18.01 % |
Per Share Data | |||||
Tangible Book Value | $10.43 | $9.96 | $10.31 | $10.94 | $11.45 |
Tangible Book Value (ex AOCI)1 | $12.87 | $12.33 | $11.95 | $11.66 | $11.36 |
Share Price Data | |||||
Closing Price | $14.57 | $14.60 | $14.80 | $14.06 | $13.37 |
Book Value Multiple | 140 % | 147 % | 144 % | 129 % | 117 % |
Common Stock Data | |||||
Outstanding Shares at End of Period | 7,184,259 | 7,281,606 | 7,319,006 | 7,296,063 | 7,349,545 |
Weighted Average shares outstanding, basic | 7,238,807 | 7,271,784 | 7,290,417 | 7,324,527 | 7,336,016 |
Weighted Average shares outstanding, diluted | 7,252,669 | 7,285,786 | 7,312,200 | 7,362,290 | 7,438,268 |
Capital Ratios (Bank Only) | |||||
Tier 1 Leverage ratio | 11.32 % | 11.59 % | 11.95 % | 12.09 % | 11.85 % |
Common Equity Tier 1 ratio | 13.37 % | 13.62 % | 13.84 % | 14.23 % | 14.49 % |
Tier 1 Risk Based Capital ratio | 13.37 % | 13.62 % | 13.84 % | 14.23 % | 14.49 % |
Total Risk Based Capital ratio | 14.28 % | 14.55 % | 14.77 % | 15.15 % | 15.42 % |
Credit Quality | |||||
Net Charge-offs to Average Loans | 0.02 % | 0.00 % | 0.00 % | 0.00 % | -0.02 % |
Total Non-performing Loans to loans held-for-investment | 1.23 % | 1.31 % | 1.38 % | 1.48 % | 1.46 % |
Total Non-performing Assets to Total Assets | 0.88 % | 0.90 % | 0.97 % | 1.02 % | 1.00 % |
Nonaccrual Loans to loans held-for-investment | 1.23 % | 1.31 % | 1.38 % | 1.48 % | 1.46 % |
Provision for Loan and Lease Losses | $327,000 | $382,000 | $375,000 | $164,000 | $355,000 |
Allowance for Loan and Lease Losses to net loans held-for-investment | 1.09 % | 1.12 % | 1.11 % | 1.12 % | 1.08 % |
Allowance for Loan and Lease Losses to net loans held-for-investment (ex PPP loans) | 1.10 % | 1.13 % | 1.13 % | 1.15 % | 1.14 % |
2 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 | |||||
FREEDOM FINANCIAL HOLDINGS, INC. | ||||||||||||||||
CONSOLIDATED SELECTED FINANCIAL DATA | ||||||||||||||||
DEFINITIONS AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES: | ||||||||||||||||
1 Tangible Book Value (ex-AOCI) (non-GAAP) | As of | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||
Shareholder's Equity | 74,946,131 | 72,490,029 | 75,473,368 | 79,794,028 | 84,158,724 | |||||||||||
Outstanding Shares at End of Period | 7,184,259 | 7,281,606 | 7,319,006 | 7,296,063 | 7,349,545 | |||||||||||
Tangible Book Value (GAAP) | $ 10.43 | $ 9.96 | $ 10.31 | $ 10.94 | $ 11.45 | |||||||||||
Accumulated Other Comprehensive Income (Net) (AOCI) | (17,480,993) | (17,287,737) | (11,985,199) | (5,272,569) | 651,272 | |||||||||||
AOCI per share equivalent | (2.43) | (2.37) | (1.64) | (0.72) | 0.09 | |||||||||||
Tangible Book Value (ex-AOCI) (non-GAAP) | $ 12.87 | $ 12.32 | $ 11.95 | $ 11.67 | $ 11.37 | |||||||||||
2 Net interest income has been computed on a fully taxable equivalent basis ("FTE") using a 21% federal income tax rate for the 2022 and 2021 periods. | Quarter-to-Date | Year-to-Date | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||
Income on Tax Exempt Securities | $ 146,021 | $ 147,188 | $ 148,374 | $ 148,229 | $ 150,254 | $ 589,783 | $ 528,259 | |||||||||
Tax Equivalent Adjustment | 38,816 | 39,126 | 39,441 | 39,403 | 39,941 | 156,778 | 140,423 | |||||||||
Income on Tax Exempt Securities (Non-GAAP) | 184,837 | 186,314 | 187,816 | 187,632 | 190,195 | 746,561 | 668,682 | |||||||||
Average Earning Assets | 927,515,881 | 886,799,824 | 840,685,799 | 839,099,285 | 855,227,658 | 873,803,804 | 812,928,001 | |||||||||
Yield on Interest Earning Assets (GAAP) | 5.09 % | 4.57 % | 4.06 % | 4.01 % | 4.03 % | 4.45 % | 3.89 % | |||||||||
Yield on Interest-Earning Assets (FTE) (Non-GAAP) | 5.11 % | 4.58 % | 4.08 % | 4.03 % | 4.05 % | 4.47 % | 3.90 % | |||||||||
Net Interest Margin (NIM) (GAAP) | 3.47 % | 3.69 % | 3.69 % | 3.68 % | 3.72 % | 3.61 % | 3.52 % | |||||||||
Net Interest Margin (NIM) (FTE) (Non-GAAP) | 3.49 % | 3.71 % | 3.65 % | 3.70 % | 3.74 % | 3.63 % | 3.53 % | |||||||||
3 Efficiency Ratio (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||
Net Interest Income | 8,117,490 | 8,242,627 | 7,614,408 | 7,613,406 | 8,024,116 | 31,587,931 | 28,516,009 | |||||||||
Non-Interest Income | 1,087,106 | 1,136,242 | 1,657,415 | 1,818,174 | 1,762,378 | 5,698,938 | 9,723,314 | |||||||||
9,204,596 | 9,378,869 | 9,271,823 | 9,431,579 | 9,786,494 | 37,286,869 | 38,239,322 | ||||||||||
Non-Interest Expense | 5,379,623 | 5,551,217 | 6,035,762 | 5,819,107 | 6,128,059 | 22,785,709 | 24,144,816 | |||||||||
Efficiency Ratio (Non-GAAP) | 58.44 % | 59.19 % | 65.10 % | 61.70 % | 62.62 % | 61.11 % | 63.14 % | |||||||||
4 Total Revenues (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||
Net Interest Income | $ 8,117,490 | $ 8,242,627 | $ 7,614,408 | $ 7,613,406 | $ 8,024,116 | $ 31,587,931 | $ 28,516,009 | |||||||||
Non-Interest Income | 1,087,106 | 1,136,242 | 1,657,415 | 1,818,174 | 1,762,378 | 5,698,938 | 9,723,314 | |||||||||
Total Revenue (non-GAAP) | $ 9,204,596 | $ 9,378,869 | $ 9,271,823 | $ 9,431,579 | $ 9,786,494 | $ 37,286,869 | $ 38,239,322 | |||||||||
Contact:
Joseph J. Thomas
President & Chief Executive Officer
703-667-4161: Phone
jthomas@freedom.bank: Email
View original content to download multimedia:https://www.prnewswire.com/news-releases/freedom-financial-holdings-announces-earnings-for-fourth-quarter-and-full-year-2022-301732119.html
SOURCE Freedom Financial Holdings
Uncategorized
VanEck to donate 10% of profits from Ether ETF to core developers
The Protocol Guild, a team of over 150 Ethereum core developers, will be the beneficiary. VanEck argues that asset managers should give back some Ether…

The Protocol Guild, a team of over 150 Ethereum core developers, will be the beneficiary. VanEck argues that asset managers should give back some Ether ETF proceeds to the community.
Global asset manager VanEck will donate 10% of all profits from its upcoming Ether futures exchange-traded fund (ETF) to Ethereum core developers for 10 years, the company announced on X (formerly Twitter) on Sept. 29.
The beneficiary will be the Protocol Guild, a group of over 150 developers maintaining Ethereum’s core technology. According to VanEck, it’s only fair for asset managers to return part of their proceeds to the community building the crypto protocol. It stated:
“If TradFi stands to gain from the efforts of Ethereum’s core contributors, it makes sense that we also give back to their work. We urge other asset managers/ETF issuers to consider also giving back in the same way.“
With this move, VanEck joins other crypto-native communities supporting the Ethereum network, including Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO and Nouns DAO.
According to a public dashboard tracking donations sent to the Guild’s mainnet, 4,846 contributions have generated over $12 million in donations. Funds are then distributed among its members according to a weighted ratio based on their contribution periods.
Big announcement!
— VanEck (@vaneck_us) September 29, 2023
We intend to donate 10% of our $EFUT ETF profits (https://t.co/gr652AkUvv) to @ProtocolGuild for at least 10 years.
Thank you, Ethereum contributors, for nearly a decade of relentless building & ongoing stewardship of this common infrastructure.
Details
The network core developers are reportedly working on Ethereum Improvement Proposal EIP-4844 (Proto-Danksharding). The upgrade will introduce a new kind of transaction type to Ethereum, promising to reduce transaction fees for layer-2 protocols.
VanEck disclosed its upcoming Ethereum Strategy ETF on Sept. 28, saying it will invest in Ether futures contracts. The fund will be actively managed by Greg Krenzer, head of active trading at VanEck, and is expected to be listed on the Chicago Board Options Exchange in the coming days.
Other traditional investment firms set to offer exposure to Ether futures include Valkyrie and Bitwise, while the line for a spot Ether ETF keeps growing with Invesco Galaxy, ARK 21Shares and VanEck waiting for regulatory approval. The United States Securities and Exchange Commission (SEC) recently delayed a decision on whether to approve a spot Ether product until December.
Magazine: Joe Lubin — The truth about ETH founders split and ‘Crypto Google’
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FTX exploiter moved over $17M in ETH in the last 24 hours
A significant portion of the 7,749 ETH, worth roughly $13 million, was directed toward the THORChain router and Railgun contract.
According…

A significant portion of the 7,749 ETH, worth roughly $13 million, was directed toward the THORChain router and Railgun contract.
According to recent information from Spot On Chain, an address linked to the FTX exploit identified as 0x3e9, has conducted transfers exceeding 10,000 Ether (ETH), worth roughly $17 million, across five different addresses since Sept. 30. The addresses had remained inactive for several months before the recent activity.
Within these transactions, a significant portion of 7,749 ETH, equivalent to $13 million, was directed toward the Thorchain router and Railgun contract. Furthermore, the exploiter engaged in a swap involving 2,500 ETH, valued at $4.19 million, converting it into 153.4 tBTC at an average rate of $27,281 per token. This address, which has recently become active, has exhibited noteworthy activity and is anticipated to continue transferring ETH, most likely to Thorchain.
At the time of the initial hack on Saturday, Sept. 30, the approximate losses amounted to nearly 50,000 ETH. This incident occurred just a short while before SBF's criminal trial scheduled for Oct. 2023.
FTX Exploiter 0x3e9 has transferred out a total of 10,250 $ETH ($17.1M) via 5 addresses over the past 24 hours:
— Spot On Chain (@spotonchain) October 1, 2023
- sent 7,749 $ETH ($13M) to the Thorchain router and Railgun contract
- swapped 2,500 $ETH ($4.19M) to 153.4 $tBTC at $27,281 on avg
Notably, the address has been… https://t.co/xzmDz8Vmma pic.twitter.com/4Ykp0zih6G
Nevertheless, these occurrences have generated a significant amount of downward pressure on the ETH price, which currently maintains a level slightly above $1,650. This situation arises as the market anticipates the introduction of Ethereum futures ETFs on Monday, Oct. 2.
FTX co-founder Sam Bankman-Fried, commonly known as SBF, is scheduled to go to trial in October. This comes after his arrest in The Bahamas and subsequent extradition to the United States, marking several months since these events occurred.
The trial is expected to last for six weeks, beginning with the selection of the jury on Oct. 3, followed by the initial court proceedings on Oct. 4. Bankman-Fried faces a total of seven charges connected to fraudulent activities, comprising two substantive charges and five conspiracy charges.
Related: Valkyrie backtracks on Ether futures contract purchases until ETF launch
During the legal proceedings, the FTX founder has consistently pleaded not guilty to all allegations. Despite numerous attempts to secure temporary release, Bankman-Fried continues to be held in custody at the Metropolitan Detention Center. His most recent request for release was denied by Judge Lewis Kaplan, citing concerns about the possibility of him fleeing.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
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SEC initiates legal action against FTX’s auditor
The SEC alleges that Prager Metis, an accounting firm engaged by bankrupt crypto exchange FTX in 2021, committed hundreds of violations related to auditor…

The SEC alleges that Prager Metis, an accounting firm engaged by bankrupt crypto exchange FTX in 2021, committed hundreds of violations related to auditor independence.
The United States Securities and Exchange Commission (SEC) has commenced legal proceedings against an accounting firm that had provided services to cryptocurrency exchange FTX before its bankruptcy declaration.
According to a Sept. 29 statement, the SEC alleged that accounting firm Prager Metis provided auditing services to its clients without maintaining the necessary independence as it continued to offer accounting services. This practice is prohibited under the auditor independence framework.

To prevent conflicts of interest, accounting and audit tasks must be kept clearly separate. However, the SEC claims that these entwined activities spanned over a period of approximately three years:
“As alleged in our complaint, over a period of nearly three years, Prager’s audits, reviews, and exams fell short of these fundamental principles. Our complaint is an important reminder that auditor independence is crucial to investor protection.”
While the statement doesn't explicitly mention FTX or any other clients, it does emphasize that there were allegedly "hundreds" of auditor independence violations throughout the three-year period.
Furthermore, a previous court filing pointed out that the FTX Group engaged Metis to audit FTX US and FTX at some point in 2021. Subsequently, FTX declared bankruptcy in November 2022.
The filing alleged that since former FTX CEO Sam Bankman-Fried publicly announced previous FTX audit results, Metis should have recognized that its work would be used by FTX to bolster public trust.
Related: FTX founder’s plea for temporary release should be denied, prosecution says
Concerns were previously reported about the material presented in FTX audit reports.
On Jan. 25, current FTX CEO John J. Ray III told a bankruptcy court that he had “substantial concerns as to the information presented in these audited financial statements.”
Furthermore, Senators Elizabeth Warren and Ron Wyden raised concerns about Prager Metis' impartiality. They argued that it functioned as an advocate for the crypto industry.
Meanwhile, a law firm that provided services to FTX has come under scrutiny in recent times.
In a Sept. 21 court filing, plaintiffs allege that U.S. based law firm, Fenwick & West, should be held partially liable for FTX's collapse because it reportedly exceeded the norm when it came to its service offerings to the exchange.
However, Fenwick & West asserts that it cannot be held accountable for a client's misconduct as long as its actions remain within the bounds of the client's representation.
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