Freedom Financial Holdings Announces Earnings for Second Quarter of 2026
Freedom Financial Holdings, the holding company for The Freedom Bank of Virginia, has reported a net income of $289,621, or $0.04 per diluted share, for the second quarter of 2026. This represents a decrease from the previous quarter’s net income of $1,160,338, or $0.16 per diluted share, and the year-over-year figure of $799,896, or $0.11 per diluted share. The current quarter's results included a significant write-down of $668,301 on the carrying value of Other Real Estate Owned (OREO), which was reduced to its appraised value of $634,500.
The company's President and CEO, Joseph J. Thomas, noted that the quarter experienced a revenue growth of 5.49% compared to the same quarter last year. He highlighted that adjusted for the OREO write-down, the Pre-tax, Pre-Provision Net Income was $1,560,746, showing a 3.69% improvement over the previous quarter. Thomas also pointed out improvements in the Yield on Earning Assets, which rose to 5.57%, and a net interest margin increase to 2.83% during the quarter.
Key financial highlights for the second quarter of 2026 include a decrease in total assets to $1.039 billion, a drop from $1.053 billion at the end of the previous quarter. Total loans held-for-investment decreased by $7.3 million, and total deposits saw a decline of $42 million. The company reported an increase in non-interest income, which rose by 17% compared to the previous quarter.
Expense figures showed a rise of $943,000, or 14%, compared to the linked quarter, largely due to the OREO write-down and increased marketing costs associated with promoting a new branch in Tysons Corner. The company reached a efficiency ratio of 89.67% for the quarter ended June 30, 2026, compared to 81.88% for the previous quarter.
Freedom Financial Holdings, which operates several locations across Northern Virginia, remains focused on improving asset quality and enhancing net interest margins by optimizing deposit growth and mix. The organization celebrated the grand opening of its new branch and headquarters as well as its 25th anniversary this quarter.