Freedom Bank of Virginia reports Q4 net loss on loan issue

Overview

• Community bank's Q4 net loss driven by large syndicated loan issue

• Pre-provision, pre-tax income for Q4 grew 84.4% yr/yr

• Company authorized 250,000 share buyback program

Outlook

• Freedom Bank expects to continue evaluating credit reserves for a large syndicated loan

• Company plans to repurchase another 250,000 shares in 2026

• Freedom Bank remains well-capitalized with a Total Capital Ratio of 15.08%

Result Drivers

• SYNDICATED LOAN ISSUE - A large syndicated loan was downgraded to non-accrual, leading to a significant reserve setup and contributing to the Q4 net loss

• CORE DEPOSIT GROWTH - The bank grew core deposits by $111 mln, reducing reliance on higher-cost brokered funding, improving net interest margin

• EXPENSE MANAGEMENT - Non-interest expenses decreased significantly, improving the efficiency ratio from 83.59% to 73.83%

Key Details

Press Release: ID:nPn60wCkWa

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