Freedom Bank of Virginia
10/25/2024 | Press release | Distributed by Public on 10/25/2024 06:36
Freedom Financial Holdings Announces Earnings for Third Quarter of 2024
FAIRFAX, Va., Oct. 25, 2024/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 $344,919 or $0.05 per diluted share for the third quarter compared to net income of $2,044,233, or $0.28 per diluted share for the three months ended June 30, 2024, and net income of $1,318,378 or $0.18 per diluted share for the three months ended September 30, 2023. Pre-tax, pre-provision income1 was $860,696 in the third quarter compared to pre-tax, pre-provision income of $1,353,529 in the prior quarter. Net income for the nine months ended September 30, 2024, was $3,553,378 or $0.49 per diluted share, compared to $4,325,088 or $0.59 per diluted share for the nine months, ended September 30, 2023.
Joseph J. Thomas, President, and CEO, commented, "We continue to make improvements in our personnel, products, and loan portfolio to meet the regulatory requirements of the Federal Deposit Insurance Corporation Improvement Act ("FDICIA"), while also addressing customer deposit behavior and any economic headwinds. Specifically, we added two new industry leaders in commercial banking, prepared for the launch of our new digital banking platform in October 2024, and introduced additional controls and enterprise risk infrastructure. This has translated into balance sheet strength in high Tier 1 Capital of 13.21%, low loan-to-deposit ratio of 86.44% and a higher allowance for loan losses to loans held-for-investment of 1.12%. However, the additional cost and investments have taxed our profitability in the third quarter with non-recurring costs of approximately $337,000 related to additional personnel, consulting fees related to FDICIA, software costs related to the new online banking platform, as well as legal fees for loan workouts. Excluding these non-recurring costs, non-interest expenses would have been flat to the prior quarter. We are certainly not satisfied with our run rate levels of profitability, but through all of this we have increased Tangible Book Value per share2 by 10.63% on an annualized basis to $11.64 on September 30, 2024, compared to $10.78 on December 31, 2023, achieving one of our central financial goals.
Third Quarter 2024 Highlights include:
- The Company posted net income of $344,919 or $0.05 per diluted share for the third quarter compared to net income of $2,044,243 or $0.28 per diluted share for the three months ended June 30, 2024, and net income of $1,318,378 or $0.18 per diluted share for the three months ending September 30, 2023. Pre-tax, pre-provision income was $860,696 in the third quarter compared to pre-tax, pre-provision income of $1,353,529 in the prior quarter.
- Tangible Book Value per share increased during the quarter to $11.64 on September 30, 2024, compared to $10.78 on December 31, 2023.
- Return on Average Assets ("ROAA") was 0.12% for the quarter ended September 30, 2024, compared to ROAA of 0.75% for the quarter ended June 30, 2024, and 0.49% for the three months ended September 30, 2023.
- Return on Average Equity ("ROAE") was 1.70% for the quarter ended September 30, 2024, compared to ROAE of 10.71% for the three months ended June 30, 2024, and 6.75% for the three months ended September 30, 2023.
- Total Assets were $1.10 billion on September 30, 2024, an increase of $15.93 million or 1.47% from total assets on December 31, 2023.
- Loans held-for-investment (excluding PPP loans) were flat during the quarter.
- Total deposits increased by $8.41 million or by 0.96% during the quarter. Non-interest-bearing demand deposits increased by $7.57 million from the linked quarter to $144.05 million and represented 16.23% of total deposits on September 30, 2024.
- The net interest margin3 decreased in the third quarter to 2.32%, lower by 9 basis points compared to the linked quarter and lower by 27 basis points compared to the same period in 2023. The decrease in the net interest margin across linked quarters was primarily related to an increase in funding costs related to higher levels of borrowings during the quarter. The cost of deposits declined by 2 basis points compared to the linked quarter.
- The cost of funds was 3.76% for the third quarter, higher by 15 basis points compared to the linked quarter and higher by 40 basis points compared to the same period in 2023, as a decline in deposit costs was more than offset by an increase in borrowing costs.
- Non-interest income decreased by 5.25% compared to the linked quarter and increased by 41.30% compared to the same period in 2023. The decrease in non-interest income in the third quarter of 2024 compared to the linked quarter was primarily due to lower revenue from mortgage loans, as mortgage activity slowed in the third quarter. The increase in non-interest income in the third quarter compared to the calendar quarter was due to an increase in mortgage revenue in the third quarter, stemming from stronger mortgage activity, in addition to greater SBIC income in the third quarter of 2024.
- Non-interest expense in the third quarter increased by $339,555 or by 5.61% compared to the linked quarter and increased by 13.88% compared to the same period in 2023. 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, 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 Ratio4 was 88.13% for the quarter ended September 30, 2024, compared to 81.72% for the linked quarter and 76.43% for the same period in 2023.
- Uninsured deposits were 22.51% of total deposits and total available secured liquidity5 was 150.84% of uninsured deposits on September 30, 2024.
- Net charge offs were flat in the third quarter and were 0.01% of average loans compared to 0.01% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 1.61% on September 30, 2024, compared to 1.49% on June 30, 2024, and 0.92% on September 30, 2023. The ratio of non-performing assets to total assets was 1.14% on September 30, 2024, compared to 1.06% on June 30, 2024, and 0.66% on September 30, 2023.
- The Company recognized a provision for loan losses of $546,439, primarily related to specific reserves for two loan relationships.
- The ratio of the allowance for loan losses to loans held-for-investment was 1.12% compared to 1.06% in the linked quarter.
- The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.23%, Common Equity Tier 1 ratio of 13.21%, Tier 1 Risk Based Capital ratio of 13.21% and a Total Capital ratio of 14.22%.
Net Interest Income
The Company recorded net interest income of $6.09 million for the third quarter of 2024, lower by 1.44% compared to the linked quarter, and lower by 6.55% compared to the same period in 2023. The net interest margin in the third quarter of 2024 was 2.32%, lower by 9 basis points compared to the linked quarter and lower by 27 basis points compared to the same period in 2023.
The following factors contributed to the changes in net interest margin during the third quarter of 2024 compared to the linked and calendar quarters.
- Yields on average earning assets were 5.93% in the third quarter of 2024, higher by 3 basis points compared to the linked quarter, and higher by 10 basis points compared to the calendar quarter. The increase in yields on average earning assets in the third quarter was primarily due to higher loan yields during the quarter.
- Loan yields increased by 8 basis points to 6.30% from 6.22% in the linked quarter, while yields on investment securities decreased by 7 basis points to 4.85% from 4.92% in the linked quarter. Loan yields increased by 10 basis points, while yields on investment securities increased by 4 basis points compared to the calendar quarter.
- Cost of funds increased by 15 basis points to 3.76% from 3.61% in the linked quarter, and by 40 basis points compared to the calendar quarter, as declines in deposit costs were more than offset by higher borrowing costs. The bank had $80 million in pay-fixed, receive floating swaps and $20 million of a receive fixed, pay floating interest rate swap at the end of the third quarter.
Non-interest Income
Non-interest income was $1.15 million for the third quarter, a decrease of 5.25% when compared to the linked quarter and an increase of 41.30% when compared to the same period in 2023. The decrease in non-interest income in the third quarter of 2024 compared to the linked quarter was primarily due to lower revenue from mortgage loans as mortgage activity slowed in the third quarter. The increase in non-interest income in the third quarter compared to the calendar quarter was due to an increase in mortgage revenue in the third quarter, stemming from stronger mortgage activity, in addition to greater SBIC income in the third quarter of 2024.
Total Revenue6
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 2.07% compared to the linked quarter and lower by 1.23% compared to the calendar quarter in 2023. The decrease in total revenue compared to the linked quarter was due to a decrease in the net interest margin and lower mortgage revenue.
Non-interest Expense
Non-interest expense in the third quarter increased by $339,555 or by 5.61% compared to the linked quarter and increased by 13.88% compared to the same period in 2023. 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, 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 88.13% for the quarter ended September 30, 2024, compared to 81.72% for the linked quarter and 76.43% for the same period in 2023.
Asset Quality
Non-accrual loans increased in the third quarter and were at $12,499,125 or 1.61% of loans held-for-investment compared to $11,570,865 or 1.49% of loans held-for-investment at the end of the linked quarter. As of September 30, 2024, 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 September 30, 2024. 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 $12,499,125 or 1.14% of total assets as of September 30, 2024, compared to $11,570,865 or 1.06% of total assets, at the end of the linked quarter.
The Company recognized a provision for loan losses of $546,439, primarily related to specific reserves for two loan relationships.
The Company's ratio of Allowance for Loan Losses to loans held-for-investment was 1.12% as of September 30, 2024, compared to the ratio of Allowance for Loan Losses to loans held-for-investment of 1.06% as of June 30, 2024.
Total Assets
Total assets on September 30, 2024, were $1.10 billion compared to total assets of $1.08 billion on December 31, 2023. Changes in major asset categories since December 31, 2023, were as follows:
- Interest bearing deposits at banks decreased by $1.39 million.
- Available for sale investment balances increased by $7.15 million.
- Other loans held-for investment increased by $6.41 million
Total Liabilities
Total liabilities on September 30, 2024, were $1.02 billion compared to total liabilities of $1.00 billion on December 31, 2023. Total deposits were $887.79 million on September 30, 2024, compared to total deposits of $879.38 million on June 30, 2024, and total deposits of $921.06 million on December 31, 2023. Non-interest-bearing demand deposits increased by $7.57 million during the third quarter and comprised 16.23% of total deposits at the end of the third quarter. Other interest-bearing demand deposits were relatively unchanged, savings deposits decreased by $746,513 and time deposits increased by $2.17 million during the quarter. Federal Home Loan Bank borrowings were flat during the quarter while borrowings from the Federal Reserve Bank of Richmond declined by $5.03 million.
Stockholders' Equity and Capital
Stockholders' equity as of September 30, 2024, was $83.03 million compared to $79.30 million on June 30, 2024, and stockholders' equity of $77.23 million on December 31, 2023. AOCI improved during the third 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 September 30, 2024, was $11.64 per share compared to $11.11 on June 30, 2024, and tangible book value per share of $10.78 on December 31, 2023. Excluding AOCI losses/gains, the tangible book value of the Company's common stock on September 30, 2024, was $13.78 per share compared to $13.70 on June 30, 2024, and $13.25 per share on December 31, 2023.
Stock Buyback Program
In the third quarter, the Company did not purchase any shares pursuant to its authorized 250,000 share repurchase program. As of September 30, 2024, the Company had repurchased 36,708 shares, pursuant to the program. Our Board of Directors believes that share buyback program represents continued disciplined capital management strategy for the company.
Capital Ratios
As of September 30, 2024, 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 September 30, 2024, and December 31, 2023, were as follows:
|
|
September 30, 2024 |
December 31, 2023 |
|
|
|
|
|
Total Capital Ratio |
14.22 % |
13.82 % |
|
|
|
|
|
Tier 1 Capital Ratio |
13.21 % |
12.65 % |
|
|
|
|
|
Common Equity Tier 1 Capital Ratio |
13.21 % |
12.65 % |
|
|
|
|
|
Leverage Ratio |
10.23 % |
10.26 % |
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.
|
|
FREEDOM FINANCIAL HOLDINGS |
||||
|
|
CONSOLIDATED BALANCE SHEETS |
||||
|
|
|
||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
September 30, |
|
June 30, |
|
December 31, |
|
|
2024 |
|
2024 |
|
2023 |
|
ASSETS |
|
|
|
|
|
|
Cash and Due from Banks |
$ 5,083,860 |
|
$ 4,105,473 |
|
$ 2,442,050 |
|
Interest Bearing Deposits with Banks |
20,415,164 |
|
10,749,717 |
|
21,806,078 |
|
Securities Available-for-Sale |
218,409,166 |
|
218,707,957 |
|
211,263,518 |
|
Securities Held-to-Maturity |
20,355,393 |
|
20,759,365 |
|
20,114,269 |
|
Restricted Stock Investments |
6,249,000 |
|
6,264,100 |
|
4,769,900 |
|
Loans Held for Sale |
5,322,703 |
|
3,743,127 |
|
6,663,929 |
|
PPP Loans Held for Investment |
184,896 |
|
209,907 |
|
259,794 |
|
Other Loans Held for Investment |
775,892,983 |
|
775,367,896 |
|
769,484,088 |
|
Allowance for Loan Losses |
(8,683,189) |
|
$ (8,235,506) |
|
(10,519,335) |
|
Net Loans |
767,394,689 |
|
767,342,297 |
|
759,224,547 |
|
Bank Premises and Equipment, net |
794,326 |
|
821,033 |
|
878,957 |
|
Accrued Interest Receivable |
4,369,935 |
|
4,452,526 |
|
3,721,730 |
|
Deferred Tax Asset |
6,705,782 |
|
8,016,767 |
|
7,954,018 |
|
Bank-Owned Life Insurance |
27,347,741 |
|
27,136,099 |
|
26,731,339 |
|
Right of Use Asset, net |
2,022,926 |
|
2,368,629 |
|
1,987,075 |
|
Other Assets |
16,125,726 |
|
21,640,688 |
|
17,110,642 |
|
Total Assets |
$ 1,100,596,411 |
|
$ 1,096,107,778 |
|
$ 1,084,668,051 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Demand Deposits |
|
|
|
|
|
|
Non-interest Bearing |
$ 144,054,842 |
|
$ 136,487,673 |
|
$ 143,956,306 |
|
Interest Bearing |
453,373,867 |
|
453,948,791 |
|
519,339,202 |
|
Savings Deposits |
3,209,559 |
|
3,956,072 |
|
4,120,770 |
|
Time Deposits |
287,152,155 |
|
284,987,090 |
|
253,641,860 |
|
Total Deposits |
887,790,424 |
|
879,379,626 |
|
921,058,138 |
|
Federal Home Loan Bank Advances |
65,000,000 |
|
65,000,000 |
|
35,000,000 |
|
Other Borrowings |
30,184,896 |
|
35,209,907 |
|
15,270,576 |
|
Subordinated Debt (Net of Issuance Costs) |
19,811,162 |
|
19,791,681 |
|
19,752,719 |
|
Accrued Interest Payable |
2,880,604 |
|
3,698,422 |
|
2,842,646 |
|
Lease Liability |
2,156,004 |
|
2,483,255 |
|
1,925,672 |
|
Other Liabilities |
9,747,107 |
|
11,241,252 |
|
11,590,247 |
|
Total Liabilities |
$ 1,017,570,197 |
|
$ 1,016,804,143 |
|
$ 1,007,439,998 |
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
Preferred stock, $0.01 par value, 5,000,000 shares authorized: |
|
|
|
|
|
|
0 Shares Issued and Outstanding, September 30, 2024, June 30, 2024 and December 31, 2023 |
|
|
|
|
|
|
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: |
|
|
|
|
|
|
6,466,105, 6,622,542 and 6,582,677 Shares Issued and Outstanding |
|
|
|
|
|
|
at September 30, 2024, June 30, 2024, and December 31, 2023 respectively |
|
|
|
|
|
|
(Includes 128,982, 140,484 and 88,993 Unvested Shares on September 30, 2024, June 30, 2024, |
|
|
|
|
|
|
and December 31, 2023 respectively) |
64,661 |
|
64,640 |
|
64,937 |
|
Non-Voting Common Stock: |
|
|
|
|
|
|
673,000 Shares Issued and Outstanding at September 30, 2024, June 30, 2024, and December 31, 2023 |
|
|
|
|
|
|
respectively) |
6,730 |
|
6,730 |
|
6,730 |
|
Additional Paid-in Capital |
58,147,353 |
|
57,939,140 |
|
58,320,419 |
|
Accumulated Other Comprehensive Income, Net |
(15,296,856) |
|
(18,466,282) |
|
(17,715,015) |
|
Retained Earnings |
40,104,326 |
|
39,759,407 |
|
36,550,983 |
|
Total Stockholders' Equity |
83,026,214 |
|
79,303,635 |
|
77,228,054 |
|
Total Liabilities and Stockholders' Equity |
$ 1,100,596,411 |
|
$ 1,096,107,778 |
|
$ 1,084,668,051 |
|
|
|
FREEDOM FINANCIAL HOLDINGS |
||||||
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
For the three |
|
For the three |
|
For the nine |
|
For the nine |
|
|
|
months ended |
|
months ended |
|
months ended |
|
months ended |
|
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans |
|
$ 12,358,391 |
|
$ 11,513,273 |
|
$ 36,534,919 |
|
$ 32,353,378 |
|
Interest on Investment Securities |
|
2,932,219 |
|
2,730,411 |
|
8,731,004 |
|
7,418,816 |
|
Interest on Deposits with Other Banks |
|
390,373 |
|
471,031 |
|
1,094,445 |
|
1,236,258 |
|
Total Interest Income |
|
15,680,983 |
|
14,714,715 |
|
46,360,368 |
|
41,008,452 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
Interest on Deposits |
|
7,968,925 |
|
7,829,199 |
|
23,858,749 |
|
19,496,776 |
|
Interest on Borrowings |
|
1,613,452 |
|
359,191 |
|
3,667,858 |
|
1,089,153 |
|
Total Interest Expense |
|
9,582,377 |
|
8,188,390 |
|
27,526,607 |
|
20,585,929 |
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
6,098,606 |
|
6,526,325 |
|
18,833,761 |
|
20,422,523 |
|
Provision for (Recovery of) Loan Losses |
|
(546,439) |
|
(205,000) |
|
649,044 |
|
(986,000) |
|
Net Interest Income After |
|
|
|
|
|
|
|
|
|
Provision for Loan Losses |
|
5,552,167 |
|
6,321,325 |
|
19,482,805 |
|
19,436,523 |
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
Mortgage Loan Gain-on-Sale and Fee Revenue |
649,097 |
|
470,800 |
|
1,931,187 |
|
1,619,007 |
|
|
SBA Gain-on-Sale Revenue |
|
- |
|
- |
|
287,032 |
|
- |
|
Service Charges and Other Income |
|
255,889 |
|
99,563 |
|
594,271 |
|
348,579 |
|
Gain on Sale of Securities |
|
- |
|
- |
|
1,816 |
|
- |
|
Servicing Income |
|
36,752 |
|
57,106 |
|
114,273 |
|
187,210 |
|
Swap Fee Income |
|
- |
|
- |
|
- |
|
- |
|
Increase in Cash Surrender Value of Bank- |
|
|
|
|
|
|
|
|
|
owned Life Insurance |
|
211,642 |
|
188,781 |
|
616,402 |
|
715,155 |
|
Total Non-interest Income |
|
1,153,380 |
|
816,250 |
|
3,544,981 |
|
2,869,951 |
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
7,251,986 |
|
7,342,575 |
|
22,378,742 |
|
23,292,474 |
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expenses |
|
|
|
|
|
|
|
|
|
Officer and Employee Compensation |
|
|
|
|
|
|
|
|
|
and Benefits |
|
3,674,499 |
|
3,410,564 |
|
10,953,786 |
|
11,029,253 |
|
Occupancy Expense |
|
233,807 |
|
188,413 |
|
880,916 |
|
554,820 |
|
Equipment and Depreciation Expense |
|
285,083 |
|
213,363 |
|
666,387 |
|
543,759 |
|
Insurance Expense |
|
232,774 |
|
276,713 |
|
686,040 |
|
568,335 |
|
Professional Fees |
|
532,379 |
|
365,316 |
|
1,627,717 |
|
1,040,801 |
|
Data and Item Processing |
|
433,431 |
|
355,733 |
|
1,090,292 |
|
999,639 |
|
Advertising |
|
172,136 |
|
105,183 |
|
449,488 |
|
357,569 |
|
Franchise Taxes and State Assessment Fees |
|
329,056 |
|
304,432 |
|
915,768 |
|
877,221 |
|
Mortgage Fees and Settlements |
|
123,853 |
|
83,250 |
|
302,471 |
|
283,869 |
|
Other Operating Expense |
|
374,273 |
|
309,232 |
|
1,096,487 |
|
1,159,120 |
|
Total Non-interest Expenses |
|
6,391,291 |
|
5,612,199 |
|
18,669,352 |
|
17,414,386 |
|
Income Before Income Taxes |
|
314,256 |
|
1,525,376 |
|
4,358,434 |
|
4,892,088 |
|
Income Tax Expense/(Benefit) |
|
(30,663) |
|
206,998 |
|
805,056 |
|
566,998 |
|
Net Income |
|
$ 344,919 |
|
$ 1,318,378 |
|
$ 3,553,378 |
|
$ 4,325,090 |
|
Earnings per Common Share - Basic |
|
$ 0.05 |
|
$ 0.18 |
|
$ 0.49 |
|
$ 0.60 |
|
Earnings per Common Share - Diluted |
|
$ 0.05 |
|
$ 0.18 |
|
$ 0.49 |
|
$ 0.59 |
|
Weighted-Average Common Shares |
|
|
|
|
|
|
|
|
|
Outstanding - Basic |
|
7,263,880 |
|
7,277,022 |
|
7,271,981 |
|
7,250,615 |
|
Weighted-Average Common Shares |
|
|
|
|
|
|
|
|
|
Outstanding - Diluted |
|
7,299,553 |
|
7,293,482 |
|
7,314,290 |
|
7,287,642 |
|
|
|
||||||||
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
For the three |
|
For the three |
|
For the three |
|
For the three |
|
For the three |
|
|
months ended |
|
months ended |
|
months ended |
|
months ended |
|
months ended |
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans |
$ 12,358,391 |
|
$ 11,893,288 |
|
$ 12,283,239 |
|
$ 12,076,745 |
|
$ 11,513,273 |
|
Interest on Investment Securities |
2,932,219 |
|
2,927,306 |
|
2,871,479 |
|
2,933,870 |
|
2,730,411 |
|
Interest on Deposits with Other Banks |
390,373 |
|
375,815 |
|
328,257 |
|
502,411 |
|
471,031 |
|
Total Interest Income |
15,680,983 |
|
15,196,409 |
|
15,482,975 |
|
15,513,026 |
|
14,714,715 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
Interest on Deposits |
7,968,925 |
|
7,865,934 |
|
8,023,891 |
|
8,108,762 |
|
7,829,199 |
|
Interest on Borrowings |
1,613,452 |
|
1,142,481 |
|
911,926 |
|
634,972 |
|
359,191 |
|
Total Interest Expense |
9,582,377 |
|
9,008,415 |
|
8,935,816 |
|
8,743,734 |
|
8,188,390 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
6,098,606 |
|
6,187,994 |
|
6,547,159 |
|
6,769,292 |
|
6,526,325 |
|
Provision for (Recovery of) Loan Losses |
(546,439) |
|
1,167,997 |
|
27,486 |
|
(4,751,441) |
|
(205,000) |
|
Net Interest Income after |
|
|
|
|
|
|
|
|
|
|
Provision/Recovery for Loan Losses |
5,552,167 |
|
7,355,991 |
|
6,574,645 |
|
2,017,851 |
|
6,321,325 |
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
Mortgage Loan Gain-on-Sale and Fee Revenue |
649,097 |
|
745,366 |
|
536,724 |
|
467,874 |
|
470,800 |
|
SBA Gain-on-Sale Revenue |
- |
|
- |
|
287,032 |
|
- |
|
- |
|
Service Charges and Other Income |
255,889 |
|
221,022 |
|
117,361 |
|
326,205 |
|
99,563 |
|
Gains on Sale of Securities |
- |
|
1,816 |
|
- |
|
|
|
- |
|
Servicing Income |
36,752 |
|
42,268 |
|
35,253 |
|
39,525 |
|
57,106 |
|
Swap Fee Income |
- |
|
- |
|
- |
|
- |
|
- |
|
Increase in Cash Surrender Value of Bank- |
|
|
|
|
|
|
|
|
|
|
owned Life Insurance |
211,642 |
|
206,796 |
|
197,963 |
|
191,788 |
|
188,781 |
|
Total Non-interest Income |
1,153,380 |
|
1,217,268 |
|
1,174,334 |
|
1,025,392 |
|
816,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue5 |
$ 7,251,986 |
|
$ 7,405,262 |
|
$ 7,721,494 |
|
$ 7,794,684 |
|
$ 7,342,575 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expenses |
|
|
|
|
|
|
|
|
|
|
Officer and Employee Compensation |
|
|
|
|
|
|
|
|
|
|
and Benefits |
3,674,499 |
|
3,544,148 |
|
3,735,139 |
|
3,293,628 |
|
3,410,564 |
|
Occupancy Expense |
233,807 |
|
255,233 |
|
391,876 |
|
191,674 |
|
188,413 |
|
Equipment and Depreciation Expense |
285,083 |
|
185,959 |
|
195,345 |
|
212,999 |
|
213,363 |
|
Insurance Expense |
232,774 |
|
229,259 |
|
224,007 |
|
237,133 |
|
276,713 |
|
Professional Fees |
532,379 |
|
568,765 |
|
526,574 |
|
524,328 |
|
365,316 |
|
Data and Item Processing |
433,431 |
|
395,579 |
|
261,282 |
|
323,605 |
|
355,733 |
|
Advertising |
172,136 |
|
162,354 |
|
114,999 |
|
116,107 |
|
105,183 |
|
Franchise Taxes and State Assessment Fees |
329,056 |
|
276,843 |
|
309,869 |
|
313,043 |
|
304,432 |
|
Mortgage Fees and Settlements |
123,853 |
|
83,617 |
|
95,001 |
|
36,328 |
|
83,250 |
|
Other Operating Expense |
374,273 |
|
349,979 |
|
372,234 |
|
514,081 |
|
309,231 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-interest Expenses |
6,391,291 |
|
6,051,736 |
|
6,226,327 |
|
5,762,926 |
|
5,612,198 |
|
Income before Income Taxes |
314,256 |
|
2,521,526 |
|
1,522,651 |
|
(2,719,683) |
|
1,525,375 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
(30,663) |
|
477,293 |
|
358,425 |
|
(713,291) |
|
206,998 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ 344,919 |
|
$ 2,044,233 |
|
$ 1,164,226 |
|
$ (2,006,392) |
|
$ 1,318,378 |
|
Earnings per Common Share - Basic |
$ 0.05 |
|
$ 0.28 |
|
$ 0.16 |
|
$ (0.27) |
|
$ 0.18 |
|
Earnings per Common Share - Diluted |
$ 0.05 |
|
$ 0.28 |
|
$ 0.16 |
|
$ (0.27) |
|
$ 0.18 |
|
Weighted-Average Common Shares |
|
|
|
|
|
|
|
|
|
|
Outstanding - Basic |
7,263,880 |
|
7,267,044 |
|
7,285,108 |
|
7,335,949 |
|
7,277,022 |
|
Weighted-Average Common Shares |
|
|
|
|
|
|
|
|
|
|
Outstanding - Diluted |
7,299,553 |
|
7,305,392 |
|
7,325,415 |
|
7,361,422 |
|
7,293,482 |
|
Average Balances, Income and Expenses, Yields and Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
September 30, 2024 |
|
|
|
|
|
June 30, 2024 |
|
|
|
|
|
March 31, 2024 |
|
|
|
|
|
December 31, 2023 |
|
|
|
|
|
September 30, 2023 |
|
|
|
|
|
|
|
Average Balance |
|
Income/ |
|
Yield |
|
Average Balance |
|
Income/ |
|
Yield |
|
Average Balance |
|
Income/ |
|
Yield |
|
Average Balance |
|
Income/ |
|
Yield |
|
Average Balance |
|
Income/ |
|
Yield |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ 29,674,932 |
|
$ 390,373 |
|
5.23 % |
|
$ 26,916,165 |
|
$ 375,815 |
|
5.62 % |
|
$ 28,655,861 |
|
$ 328,257 |
|
4.61 % |
|
$ 36,921,568 |
|
$ 502,411 |
|
5.40 % |
|
$ 38,989,836 |
|
$ 471,031 |
|
4.79 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments (Tax Exempt) |
|
20,716,896 |
|
203,062 |
|
|
|
20,889,466 |
|
204,795 |
|
|
|
21,297,872 |
|
204,625 |
|
|
|
20,012,255 |
|
195,353 |
|
|
|
20,763,539 |
|
197,591 |
|
|
|
Investments (Taxable) |
|
223,526,525 |
|
2,771,800 |
|
|
|
222,105,603 |
|
2,765,518 |
|
|
|
219,134,075 |
|
2,709,825 |
|
|
|
211,208,265 |
|
2,779,541 |
|
|
|
208,005,473 |
|
2,574,314 |
|
|
|
Total Investments |
|
244,243,421 |
|
2,974,862 |
|
4.85 % |
|
242,995,069 |
|
2,970,313 |
|
4.92 % |
|
240,431,947 |
|
2,914,450 |
|
4.88 % |
|
231,220,520 |
|
2,974,894 |
|
5.10 % |
|
228,769,012 |
|
2,771,905 |
|
4.81 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans |
|
780,143,594 |
|
12,358,391 |
|
6.30 % |
|
768,712,204 |
|
11,893,288 |
|
6.22 % |
|
773,171,917 |
|
12,283,239 |
|
6.39 % |
|
761,583,960 |
|
$12,076,745 |
|
6.29 % |
|
736,781,506 |
|
11,513,273 |
|
6.20 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning Assets |
|
1,054,061,947 |
|
15,723,626 |
|
5.93 % |
|
1,038,623,438 |
|
15,239,416 |
|
5.90 % |
|
1,042,259,725 |
|
15,525,946 |
|
5.99 % |
|
1,029,726,048 |
|
15,554,050 |
|
5.99 % |
|
1,004,540,354 |
|
14,756,209 |
|
5.83 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ 1,111,788,038 |
|
|
|
|
|
$ 1,096,367,899 |
|
|
|
|
|
$ 1,093,119,403 |
|
|
|
|
|
$ 1,084,945,735 |
|
|
|
|
|
$ 1,062,975,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Checking |
|
$ 204,529,638 |
|
$ 2,268,166 |
|
4.41 % |
|
$ 226,698,645 |
|
$ 2,476,138 |
|
4.39 % |
|
$ 229,520,401 |
|
$ 2,515,315 |
|
4.41 % |
|
$ 221,430,570 |
|
$ 2,364,166 |
|
4.24 % |
|
$ 213,956,322 |
|
$ 2,130,491 |
|
3.95 % |
|
Money Market |
|
259,041,124 |
|
2,686,977 |
|
4.13 % |
|
230,692,880 |
|
2,480,219 |
|
4.32 % |
|
274,088,309 |
|
2,930,085 |
|
4.30 % |
|
288,937,873 |
|
2,738,774 |
|
3.76 % |
|
289,350,365 |
|
3,130,570 |
|
4.29 % |
|
Savings |
|
3,098,470 |
|
1,188 |
|
0.15 % |
|
2,544,712 |
|
993 |
|
0.16 % |
|
3,416,245 |
|
1,129 |
|
0.13 % |
|
4,155,974 |
|
1,238 |
|
0.12 % |
|
4,344,566 |
|
1,310 |
|
0.12 % |
|
Time Deposits |
|
286,346,982 |
|
3,012,594 |
|
4.19 % |
|
287,465,021 |
|
2,908,583 |
|
4.07 % |
|
261,965,440 |
|
2,577,362 |
|
3.96 % |
|
258,903,945 |
|
3,004,586 |
|
4.60 % |
|
248,550,686 |
|
2,566,827 |
|
4.10 % |
|
Interest Bearing Deposits |
|
753,016,214 |
|
7,968,925 |
|
4.21 % |
|
747,401,258 |
|
7,865,933 |
|
4.23 % |
|
768,990,395 |
|
8,023,891 |
|
4.20 % |
|
773,428,362 |
|
8,108,764 |
|
4.16 % |
|
756,201,939 |
|
7,829,198 |
|
4.11 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
$ 118,452,626 |
|
$ 1,613,452 |
|
5.42 % |
|
$ 108,848,304 |
|
$ 1,142,481 |
|
4.22 % |
|
$ 84,021,016 |
|
$ 911,926 |
|
4.37 % |
|
$ 56,817,293 |
|
$ 634,972 |
|
4.43 % |
|
$ 40,480,346 |
|
$ 359,191 |
|
3.52 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities |
|
871,468,840 |
|
9,582,377 |
|
4.37 % |
|
856,249,562 |
|
9,008,414 |
|
4.23 % |
|
853,011,411 |
|
8,935,817 |
|
4.21 % |
|
830,245,656 |
|
8,743,736 |
|
4.18 % |
|
796,682,285 |
|
8,188,389 |
|
4.08 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non Interest Bearing Deposits |
|
$ 143,171,313 |
|
|
|
|
|
$ 146,541,629 |
|
|
|
|
|
$ 146,048,180 |
|
|
|
|
|
$ 161,836,675 |
|
|
|
|
|
$ 169,935,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Funds |
|
|
|
|
|
3.76 % |
|
|
|
|
|
3.61 % |
|
|
|
|
|
3.60 % |
|
|
|
|
|
3.50 % |
|
|
|
|
|
3.36 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin |
|
|
|
$ 6,141,249 |
|
2.32 % |
|
|
|
$ 6,231,002 |
|
2.41 % |
|
|
|
$ 6,590,129 |
|
2.54 % |
|
|
|
$ 6,810,314 |
|
2.62 % |
|
|
|
$ 6,567,819 |
|
2.59 % |
|
Shareholders Equity |
|
$ 80,948,259 |
|
|
|
|
|
$ 76,737,805 |
|
|
|
|
|
$ 77,333,773 |
|
|
|
|
|
$ 75,770,938 |
|
|
|
|
|
$ 77,445,100 |
|
|
|
|
|
Average Balances, Income and Expenses, Yields and Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
September 30, 2024 |
|
|
|
|
|
September 30, 2023 |
|
|
|
|
|
September 30, 2024 |
|
|
|
|
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance |
|
Income/ |
|
Yield |
|
Average Balance |
|
Income/ |
|
Yield |
|
Average Balance |
|
Income / |
|
Yield |
|
Average Balance |
|
Income / |
|
Yield |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ 29,674,932 |
|
$ 390,373 |
|
5.23 % |
|
$ 38,989,836 |
|
$ 471,031 |
|
4.79 % |
|
$ 28,420,248 |
|
$ 1,094,445 |
|
5.14 % |
|
$ 35,503,240 |
|
$ 1,236,258 |
|
4.66 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments (Tax Exempt) |
|
20,716,896 |
|
203,062 |
|
|
|
20,763,539 |
|
197,591 |
|
|
|
20,967,161 |
|
$612,482 |
|
|
|
21,047,798 |
|
567,800 |
|
|
|
Investments (Taxable) |
|
223,526,525 |
|
2,771,800 |
|
|
|
208,005,473 |
|
2,574,314 |
|
|
|
221,595,806 |
|
$8,247,143 |
|
|
|
196,676,203 |
|
6,970,254 |
|
|
|
Total Investments |
|
244,243,421 |
|
2,974,862 |
|
4.85 % |
|
228,769,012 |
|
2,771,905 |
|
4.81 % |
|
242,562,967 |
|
8,859,625 |
|
4.88 % |
|
217,724,001 |
|
7,538,054 |
|
4.63 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans |
|
780,143,594 |
|
12,358,391 |
|
6.30 % |
|
736,781,506 |
|
11,513,273 |
|
6.20 % |
|
774,031,626 |
|
36,534,919 |
|
6.30 % |
|
722,319,320 |
|
32,353,378 |
|
5.99 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning Assets |
|
1,054,061,947 |
|
15,723,626 |
|
5.93 % |
|
1,004,540,354 |
|
14,756,209 |
|
5.83 % |
|
$ 1,045,014,841 |
|
46,488,989 |
|
5.94 % |
|
975,546,561 |
|
41,127,690 |
|
5.64 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ 1,111,788,038 |
|
|
|
|
|
$ 1,062,975,635 |
|
|
|
|
|
$ 1,100,466,584 |
|
|
|
|
|
$ 1,029,315,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Checking |
|
$ 204,529,638 |
|
$ 2,268,166 |
|
4.41 % |
|
$ 213,956,322 |
|
$ 2,130,491 |
|
3.95 % |
|
$ 220,192,189 |
|
7,259,619 |
|
4.40 % |
|
$ 188,805,623 |
|
5,342,886 |
|
3.78 % |
|
Money Market |
|
259,041,124 |
|
2,686,977 |
|
4.13 % |
|
289,350,365 |
|
3,130,570 |
|
4.29 % |
|
254,623,619 |
|
8,097,281 |
|
4.25 % |
|
277,982,793 |
|
7,855,968 |
|
3.78 % |
|
Savings |
|
3,098,470 |
|
1,188 |
|
0.15 % |
|
4,344,566 |
|
1,310 |
|
0.12 % |
|
3,020,096 |
|
3,311 |
|
0.15 % |
|
5,643,122 |
|
5,222 |
|
0.12 % |
|
Time Deposits |
|
286,346,982 |
|
3,012,594 |
|
4.19 % |
|
248,550,686 |
|
2,566,827 |
|
4.10 % |
|
278,620,782 |
|
8,498,539 |
|
4.07 % |
|
245,511,716 |
|
6,292,700 |
|
3.43 % |
|
Interest Bearing Deposits |
|
753,016,214 |
|
7,968,925 |
|
4.21 % |
|
756,201,939 |
|
7,829,198 |
|
4.11 % |
|
756,456,686 |
|
23,858,750 |
|
4.21 % |
|
717,943,254 |
|
19,496,776 |
|
3.63 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
$ 118,452,626 |
|
$ 1,613,452 |
|
5.42 % |
|
$ 40,480,346 |
|
$ 359,191 |
|
3.36 % |
|
$ 103,827,577 |
|
$ 3,667,858 |
|
4.72 % |
|
$ 45,125,282 |
|
$ 1,089,153 |
|
3.23 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities |
|
871,468,840 |
|
9,582,377 |
|
4.37 % |
|
796,682,285 |
|
8,188,389 |
|
4.08 % |
|
860,284,263 |
|
27,526,608 |
|
4.27 % |
|
763,068,536 |
|
20,585,929 |
|
3.61 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non Interest Bearing Deposits |
|
$ 143,171,313 |
|
|
|
|
|
$ 169,935,416 |
|
|
|
|
|
$ 145,246,107 |
|
|
|
|
|
$ 171,833,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Funds |
|
|
|
|
|
3.76 % |
|
|
|
|
|
3.36 % |
|
|
|
|
|
3.66 % |
|
|
|
|
|
2.94 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin |
|
|
|
$ 6,141,249 |
|
2.32 % |
|
|
|
$ 6,567,819 |
|
2.59 % |
|
|
|
$ 18,962,381 |
|
2.42 % |
|
|
|
$ 20,541,761 |
|
2.82 % |
|
Shareholders Equity |
|
$ 80,948,259 |
|
|
|
|
|
$ 77,445,100 |
|
|
|
|
|
$ 78,349,465 |
|
|
|
|
|
$ 77,312,187 |
|
|
|
|
|
ROAA |
|
0.12 % |
|
|
|
|
|
|
|
|
|
|
|
0.43 % |
|
|
|
|
|
0.56 % |
|
|
|
|
|
ROAE |
|
1.70 % |
|
|
|
|
|
|
|
|
|
|
|
6.06 % |
|
|
|
|
|
7.48 % |
|
|
|
|
|
Selected Financial Data by Quarter Ended: |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
Balance Sheet Ratios |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|
Loans held-for-investment to Deposits |
87.42 % |
88.20 % |
85.07 % |
83.57 % |
81.63 % |
|
Income Statement Ratios (Quarterly) |
|
|
|
|
|
|
Return on Average Assets (ROAA) |
0.12 % |
0.75 % |
0.43 % |
-0.73 % |
0.49 % |
|
Return on Average Equity (ROAE) |
1.70 % |
10.71 % |
6.05 % |
-10.51 % |
6.75 % |
|
Efficiency Ratio |
88.13 % |
81.72 % |
80.64 % |
73.93 % |
76.43 % |
|
Net Interest Margin |
2.32 % |
2.41 % |
2.54 % |
2.62 % |
2.59 % |
|
Yield on Average Earning Assets |
5.93 % |
5.90 % |
5.99 % |
5.99 % |
5.83 % |
|
Yield on Securities |
4.85 % |
4.92 % |
4.88 % |
5.10 % |
4.81 % |
|
Yield on Loans |
6.30 % |
6.22 % |
6.39 % |
6.29 % |
6.20 % |
|
Cost of Funds |
3.76 % |
3.61 % |
3.60 % |
3.50 % |
3.36 % |
|
Noninterest income to Total Revenue |
15.90 % |
16.44 % |
15.21 % |
13.16 % |
11.12 % |
|
Liquidity Ratios |
|
|
|
|
|
|
Uninsured Deposits to Total Deposits |
22.51 % |
22.76 % |
24.31 % |
25.65 % |
28.10 % |
|
Total Liquidity to Uninsured Deposits |
150.84 % |
150.53 % |
156.40 % |
130.30 % |
120.27 % |
|
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days |
264.41 % |
317.68 % |
386.89 % |
258.25 % |
345.53 % |
|
Tangible Common Equity Ratio |
7.54 % |
7.24 % |
7.09 % |
7.12 % |
7.14 % |
|
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities) |
7.38 % |
7.01 % |
6.85 % |
6.88 % |
6.83 % |
|
|
|
|
|
|
|
|
Available -for-Sale securities (as % of total securities) |
91.47 % |
91.33 % |
91.24 % |
91.31 % |
90.96 % |
|
Per Share Data |
|
|
|
|
|
|
Tangible Book Value |
$11.64 |
$11.11 |
$10.83 |
$10.78 |
$10.50 |
|
Tangible Book Value (ex AOCI) |
$13.78 |
$13.70 |
$13.39 |
$13.25 |
$13.50 |
|
Share Price Data |
|
|
|
|
|
|
Closing Price |
$11.50 |
$9.75 |
$9.75 |
$10.42 |
$10.61 |
|
Book Value Multiple |
99 % |
88 % |
92 % |
97 % |
101 % |
|
Common Stock Data |
|
|
|
|
|
|
Outstanding Shares at End of Period |
7,133,105 |
7,137,030 |
7,155,058 |
7,166,684 |
7,198,334 |
|
Weighted Average shares outstanding, basic |
7,263,880 |
7,267,044 |
7,285,108 |
7,335,949 |
7,277,022 |
|
Weighted Average shares outstanding, diluted |
7,299,553 |
7,305,392 |
7,325,415 |
7,361,422 |
7,293,482 |
|
Capital Ratios (Bank Only) |
|
|
|
|
|
|
Tier 1 Leverage ratio |
10.23 % |
10.28 % |
10.26 % |
10.26 % |
10.64 % |
|
Common Equity Tier 1 ratio |
13.21 % |
13.05 % |
12.92 % |
12.65 % |
13.26 % |
|
Tier 1 Risk Based Capital ratio |
13.21 % |
13.05 % |
12.92 % |
12.65 % |
13.26 % |
|
Total Risk Based Capital ratio |
14.22 % |
14.01 % |
14.00 % |
13.82 % |
14.10 % |
|
Credit Quality |
|
|
|
|
|
|
Net Charge-offs to Average Loans |
0.01 % |
0.01 % |
0.14 % |
0.19 % |
0.03 % |
|
Total Non-performing Loans to loans held-for-investment |
1.61 % |
1.49 % |
1.74 % |
1.72 % |
0.92 % |
|
Total Non-performing Assets to Total Assets |
1.14 % |
1.06 % |
1.21 % |
1.22 % |
0.66 % |
|
Nonaccrual Loans to loans held-for-investment |
1.61 % |
1.49 % |
1.74 % |
1.72 % |
0.92 % |
|
Provision for (Recovery of) Loan Losses |
$546,439 |
-$1,167,997 |
-$27,486 |
$4,751,441 |
$205,000 |
|
Allowance for Loan Losses to net loans held-for-investment |
1.12 % |
1.06 % |
1.24 % |
1.37 % |
0.95 % |
|
Allowance for Loan Losses to net loans held-for-investment (ex PPP loans) |
1.12 % |
1.06 % |
1.24 % |
1.37 % |
0.95 % |
|
|
FREEDOM FINANCIAL HOLDINGS, INC. |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
1Pre-Provision, Pretax Income |
|
|
|
|
|
|
Quarter Ending |
|
Year Ending |
||||||||
|
|
|
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
|
|
$ 344,919 |
|
$ 2,044,233 |
|
$ 1,164,226 |
|
$ (2,006,392) |
|
$ 1,318,378 |
|
$ 3,553,378 |
|
$ 4,325,090 |
|
|
|
+ Income Tax Expense |
|
|
(30,663) |
|
477,293 |
|
358,425 |
|
(713,291) |
|
206,998 |
|
805,056 |
|
566,998 |
|
|
|
Pretax Income |
|
|
314,256 |
|
2,521,526 |
|
1,522,651 |
|
(2,719,683) |
|
1,525,375 |
|
4,358,434 |
|
4,892,088 |
|
|
|
+ Provision for Loan Losses |
|
(546,439) |
|
1,167,997 |
|
27,486 |
|
(4,751,441) |
|
(205,000) |
|
649,044 |
|
(986,000) |
|
||
|
Pre-Provision, Pretax Income |
|
860,695 |
|
1,353,529 |
|
1,495,165 |
|
2,031,758 |
|
1,730,375 |
|
3,709,390 |
|
5,878,088 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Tangible Book Value (ex-AOCI) (non-GAAP) |
|
|
|
|
|
|
Quarter Ending |
|
|
|
|
|
|||||
|
|
|
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
|
|
|
|
|
Shareholder's Equity |
$ 83,026,214 |
|
$ 79,303,635 |
|
$ 77,460,385 |
|
$ 77,228,054 |
|
$ 75,573,033 |
|
|
|
|
|
|||
|
Outstanding Shares at End of Period |
7,133,105 |
|
7,137,030 |
|
7,155,058 |
|
7,166,684 |
|
7,198,334 |
|
|
|
|
|
|||
|
Tangible Book Value (GAAP) |
$ 11.64 |
|
$ 11.11 |
|
$ 10.83 |
|
$ 10.78 |
|
$ 10.50 |
|
|
|
|
|
|||
|
Accumulated Other Comprehensive Income (Net) (AOCI) |
$ (15,296,856) |
|
$ (18,466,282) |
|
$ (18,326,721) |
|
$ (17,715,015) |
|
$ (21,597,860) |
|
|
|
|
|
|||
|
AOCI per share equivalent |
(2.14) |
|
(2.59) |
|
(2.56) |
|
(2.47) |
|
(3.00) |
|
|
|
|
|
|||
|
Tangible Book Value (ex-AOCI) (non-GAAP) |
$ 13.78 |
|
$ 13.70 |
|
$ 13.39 |
|
$ 13.25 |
|
$ 13.50 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ending |
|
Year Ending |
|
|||||||
|
Income on Tax Exempt Securities |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
||
|
Tax Equivalent Adjustment |
|
$ 160,419 |
|
$ 161,788 |
|
$ 161,654 |
|
$ 154,329 |
|
$ 156,097 |
|
$ 483,861 |
|
$ 602,891 |
|
||
|
Income on Tax Exempt Securities (Non-GAAP) |
42,643 |
|
43,007 |
|
42,971 |
|
41,024 |
|
41,494 |
|
128,621 |
|
$ 160,262 |
|
|||
|
|
|
|
|
$ 203,062 |
|
$ 204,795 |
|
$ 204,625 |
|
$ 195,353 |
|
$ 197,591 |
|
$ 612,482 |
|
$ 763,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Earning Assets |
|
$ 1,054,061,947 |
|
$ 1,038,623,438 |
|
$ 1,042,259,725 |
|
$ 1,029,726,048 |
|
$ 1,004,540,354 |
|
$ 1,045,014,841 |
|
$ 975,546,561 |
|
||
|
Yield on Interest Earning Assets (GAAP) |
5.98 % |
|
5.88 % |
|
5.97 % |
|
5.98 % |
|
5.81 % |
|
5.93 % |
|
5.64 % |
|
|||
|
Yield on Interest-Earning Assets (FTE) (Non-GAAP) |
5.93 % |
|
5.90 % |
|
5.99 % |
|
5.99 % |
|
5.83 % |
|
5.94 % |
|
5.64 % |
|
|||
|
Net Interest Margin (NIM) (GAAP) |
|
2.33 % |
|
2.40 % |
|
2.53 % |
|
2.61 % |
|
2.58 % |
|
2.41 % |
|
2.65 % |
|
||
|
Net Interest Margin (NIM) (FTE) (Non-GAAP) |
2.32 % |
|
2.41 % |
|
2.54 % |
|
2.62 % |
|
2.59 % |
|
2.42 % |
|
2.82 % |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 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 |
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Efficiency Ratio (Non-GAAP) |
|
|
|
|
|
|
|
Quarter Ending |
|
Year Ending |
|
||||||
|
|
|
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
|
Net Interest Income |
|
|
$ 6,098,606 |
|
$ 6,187,994 |
|
$ 6,547,159 |
|
$ 6,769,292 |
|
$ 6,526,324 |
|
$ 18,833,761 |
|
$ 20,422,523 |
|
|
|
Non-Interest Income |
|
|
1,153,380 |
|
1,217,268 |
|
1,174,334 |
|
1,025,392 |
|
816,250 |
|
3,544,981 |
|
2,869,951 |
|
|
|
Total Revenue |
|
|
$ 7,251,985 |
|
$ 7,405,262 |
|
$ 7,721,493 |
|
$ 7,794,684 |
|
$ 7,342,574 |
|
$ 22,378,742 |
|
$ 23,292,474 |
|
|
|
Non-Interest Expense |
|
|
6,391,291 |
|
6,051,736 |
|
6,226,327 |
|
5,762,926 |
|
5,612,199 |
|
18,669,352 |
|
17,414,386 |
|
|
|
Efficiency Ratio (Non-GAAP) |
|
88.13 % |
|
81.72 % |
|
80.64 % |
|
73.93 % |
|
76.43 % |
|
83.42 % |
|
74.76 % |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5Liquidity Ratios (Non-GAAP) |
|
|
|
|
|
|
|
Quarter Ending |
|
|
|
|
|
||||
|
|
|
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
|
|
|
|
|
Available-for-Sale Securities (as % of total securities) |
91.47 % |
|
91.33 % |
|
91.31 % |
|
91.31 % |
|
90.96 % |
|
|
|
|
|
|||
|
Uninsured Deposits to Total Deposits |
22.51 % |
|
22.76 % |
|
24.31 % |
|
25.65 % |
|
28.10 % |
|
|
|
|
|
|||
|
Total Liquidity to Uninsured Deposits |
150.84 % |
|
150.53 % |
|
156.40 % |
|
130.30 % |
|
120.27 % |
|
|
|
|
|
|||
|
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days |
264.41 % |
|
317.68 % |
|
386.89 % |
|
258.26 % |
|
345.53 % |
|
|
|
|
|
|||
|
Tangible Common Equity Ratio |
|
7.54 % |
|
7.24 % |
|
7.09 % |
|
7.12 % |
|
7.14 % |
|
|
|
|
|
||
|
Tangible Common Equity Ratio(adjusted for unrealized losses |
7.38 % |
|
7.01 % |
|
6.85 % |
|
6.88 % |
|
6.83 % |
|
|
|
|
|
|||
|
on HTM Securities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5Total 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 Home Loan Bank. |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6Total Revenue (Non-GAAP) |
|
|
|
|
|
|
|
Quarter Ending |
|
Year-to-Date |
|
||||||
|
|
|
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
|
Net Interest Income |
|
|
$ 6,098,606 |
|
$ 6,187,994 |
|
$ 6,547,159 |
|
$ 6,769,292 |
|
$ 6,526,324 |
|
$ 18,833,761 |
|
$ 20,422,523 |
|
|
|
Non-Interest Income |
|
|
1,153,380 |
|
1,217,268 |
|
1,174,334 |
|
1,025,392 |
|
816,250 |
|
3,544,981 |
|
2,869,951 |
|
|
|
Total Revenue (non-GAAP) |
|
$ 7,251,985 |
|
$ 7,405,262 |
|
$ 7,721,493 |
|
$ 7,794,684 |
|
$ 7,342,574 |
|
$ 22,378,742 |
|
$ 23,292,474 |
|
Contact:
Joseph J. Thomas
President & Chief Executive Officer
703-667-4161: Phone
[email protected]: Email
View original content to download multimedia:https://www.prnewswire.com/news-releases/freedom-financial-holdings-announces-earnings-for-third-quarter-of-2024-302286675.html
SOURCE Freedom Financial Holdings