COVINGTON, Ga.--(BUSINESS WIRE)--October 24, 2025--
Affinity Bancshares, Inc. (NASDAQ:"AFBI") (the "Company"), the holding company for Affinity Bank (the "Bank"), today announced net income of $2.2 million for the three months ended September 30, 2025, as compared to $1.7 million for the three months ended September 30, 2024.
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At or for the three months ended,
----------------------------------------------------------------------
March
Performance September June 30, 31, December September
Ratios: 30, 2025 2025 2025 31, 2024 30, 2024
---------- -------- -------- --------- -----------
Net income (in
thousands) $ 2,217 $ 2,152 $ 1,831 $ 1,345 $ 1,730
Diluted earnings
per share 0.34 0.33 0.28 0.20 0.26
Operating income
(1) 2,389 2,316 1,996 1,738 1,883
Adjusted diluted
earnings per
share (1) 0.37 0.36 0.30 0.26 0.29
Common book
value per
share 20.25 19.66 19.25 20.14 20.02
Tangible book
value per share
(1) 17.34 16.80 16.40 17.30 17.18
Total assets (in
thousands) 925,221 933,799 912,496 866,817 878,561
Return on
average assets 0.94% 0.94% 0.83% 0.61% 0.78%
Return on
average equity 7.03% 7.01% 5.68% 4.14% 5.43%
Equity to assets 13.55% 13.29% 13.40% 14.90% 14.61%
Tangible equity
to tangible
assets (1) 11.83% 11.58% 11.65% 13.08% 12.80%
Net interest
margin 3.49% 3.57% 3.52% 3.56% 3.52%
Efficiency ratio 64.96% 65.72% 68.55% 75.95% 71.48%
(1) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial
Measures" for more information and reconciliation to GAAP.
Net Income
-- Net income was $6.2 million for nine months ended September 30, 2025 as
compared to $4.1 million for the nine months ended September 30, 2024, as
a result of an increase in net interest income along with a decrease in
noninterest expenses primarily due to merger-related expenses for the
2024 period offset by a decrease in noninterest income.
-- Operating income for the nine months ended September 30, 2025 was $6.7
million as compared to $5.0 million for the nine months ended September
30, 2024.
-- Net income was $2.2 million for three months ended September 30, 2025
as compared to $1.7 million for the three months ended September 30,
2024, as a result of an increase in net interest income along with a
decrease in noninterest expenses.
-- Operating income for the three months ended September 30, 2025 was $2.4
million as compared to $1.9 million for the three months ended September
30, 2024.
Results of Operations
-- Net interest income was $22.9 million for the nine months ended
September 30, 2025 compared to $21.7 million for the nine months ended
September 30, 2024. The increase was due to an increase in interest
income on loans and interest-earning deposits offset by increases in
deposit costs and a decrease in interest income on investment
securities.
-- Net interest margin for the nine months ended September 30, 2025
decreased one basis point to 3.53% from 3.54% for the nine months ended
September 30, 2024.
-- Noninterest income decreased $246,000 to $1.6 million for the nine
months ended September 30, 2025, primarily due to lower service charges
on deposit accounts and the absence of a gain on the sale of other real
estate recorded in 2024.
-- Non-interest expense decreased $1.7 million to $16.3 million for the
nine months ended September 30, 2025 compared to the 2024 period, due
mainly to a decrease in other expenses, and specifically merger-related
expenses.
-- Net interest income was $7.8 million for the three months ended
September 30, 2025 compared to $7.4 million for the three months ended
September 30, 2024. The increase was due to an increase in interest
income on loans and interest-earning deposits, partially offset by
increases in deposit costs and a decrease in interest income on
investment securities.
-- Net interest margin for the three months ended September 30, 2025
decreased to 3.49% from 3.52% for the three months ended September 30,
2024. The decrease in the margin relates to a decrease in our yield on
interest earning deposits, which was offset by decreases in yields on our
interest-bearing liabilities.
-- Noninterest income increased $22,000 to $588,000 for the three months
ended September 30, 2025.
-- Non-interest expense decreased $275,000 to $5.4 million for the three
months ended September 30, 2025 compared to the 2024 period, due mainly
to a decrease in other fees.
Financial Condition
-- Total assets increased $58.4 million to $925.2 million at September 30,
2025 from $866.8 million at December 31, 2024, as we experienced loan
growth and an increase in interest earning deposits which was funded from
growth in our deposits.
-- Total gross loans increased $15.4 million to $729.5 million at
September 30, 2025 from $714.1 million at December 31, 2024. The increase
was due to steady loan demand in construction and consumer loans, and
commercial loans secured by real estate - owner occupied.
-- Non-owner occupied office loans totaled $41.1 million at September 30,
2025; the average LTV on these loans is 45.5%, including
-- $15.6 million medical/dental tenants and
-- $25.5 million to other various tenants.
-- Investment securities held-to-maturity unrealized gains were $327,000,
net of tax. Investment securities available-for-sale unrealized losses
were $4.5 million, net of tax.
-- Cash and cash equivalents increased $43.4 million to $84.8 million at
September 30, 2025 from $41.4 million at December 31, 2024.
-- Deposits increased by $65.9 million to $739.4 million at September 30,
2025 compared to $673.5 million at December 31, 2024, with a $57.8
million net increase in demand deposits and a $8.1 million increase in
certificates of deposit.
-- Borrowings decreased by $4.8 million to $54.0 million at September 30,
2025 compared to $58.8 million at December 31, 2024 as an advance from
the Bank Term Funding program was repaid in full in the first quarter of
2025.
-- Equity decreased $3.7 million to $125.4 million at September 30, 2025
from $129.1 million at December 31, 2024 from payment of a $1.50 per
share dividend that was declared and paid in first quarter, along with
$4.1 million of common stock repurchases.
Asset Quality
-- Non-performing loans increased to $5.1 million at September 30, 2025
from $4.8 million at December 31, 2024.
-- The allowance for credit losses as a percentage of non-performing loans
was 168.4% at September 30, 2025, as compared to 177.9% at December 31,
2024.
-- The allowance for credit losses to total loans decreased to 1.17% at
September 30, 2025 from 1.19% at December 31, 2024.
-- Net loan charge-offs were $129,000 for the nine months ended September
30, 2025, as compared to net loan charge-offs of $523,000 for the nine
months ended September 30, 2024.
About Affinity Bancshares, Inc.
The Company is a Maryland corporation based in Covington, Georgia. The Company's banking subsidiary, Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets.
Forward-Looking Statements
In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describe the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "contemplate," "continue," "target" and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in general economic conditions, interest rates and inflation; changes in asset quality; our ability to access cost-effective funding; fluctuations in real estate values; changes in
laws or regulations; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; changes in technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; changes in the value of our goodwill and other intangible assets; the effects of an extended U.S. Government shutdown; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; and the effects of natural disasters and geopolitical events, including terrorism, conflict and acts of war. These risks and other uncertainties are further discussed in the reports that the Company files with the Securities and Exchange Commission.
Average Balance Sheets
The following tables set forth average balance sheets, average annualized yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are monthly average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense.
For the Three Months Ended September 30,
----------------------------------------------------------------------------
2025 2024
----------------------------------- -----------------------------------
Average Average
Outstanding Average Outstanding Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
----------- ---------- ---------- ----------- ---------- ----------
(Dollars in thousands)
Interest-earning
assets:
Loans $ 733,069 $ 11,219 6.07% $ 698,877 $ 10,596 6.03%
Investment securities
held-to-maturity 22,802 370 6.44% 33,235 511 6.12%
Investment securities
available-for-sale 40,993 365 3.53% 47,600 435 3.64%
Interest-earning
deposits and federal
funds 80,003 868 4.30% 52,250 668 5.09%
Other investments 6,250 98 6.22% 6,091 92 6.01%
---------- ------ ---------- ------
Total interest-earning
assets 883,117 12,920 5.80% 838,053 12,302 5.84%
Non-interest-earning
assets 48,683 47,471
---------- ----------
Total assets $ 931,800 $ 885,524
========== ==========
Interest-bearing
liabilities:
Interest-bearing
checking accounts $ 86,092 $ 123 0.57% $ 87,569 $ 127 0.58%
Money market accounts 169,791 1,302 3.04% 149,321 1,238 3.30%
Savings accounts 92,570 702 3.01% 71,003 509 2.85%
Certificates of
deposit 246,510 2,498 4.02% 217,307 2,313 4.23%
---------- ------ ---------- ------
Total interest-bearing
deposits 594,963 4,625 3.08% 525,200 4,187 3.17%
FHLB advances and
other borrowings 54,000 525 3.86% 63,323 701 4.40%
---------- ------ ---------- ------
Total interest-bearing
liabilities 648,963 5,150 3.15% 588,523 4,888 3.30%
Non-interest-bearing
liabilities 157,684 170,197
---------- ----------
Total liabilities 806,647 758,720
Total stockholders'
equity 125,153 126,804
---------- ----------
Total liabilities and
stockholders' equity $ 931,800 $ 885,524
========== ==========
Net interest rate
spread 2.65% 2.54%
Net interest income $ 7,770 $ 7,414
====== ======
Net interest margin 3.49% 3.52%
For the Nine Months Ended September 30,
----------------------------------------------------------------------------
2025 2024
----------------------------------- -----------------------------------
Average Average
Outstanding Average Outstanding Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
----------- ---------- ---------- ----------- ---------- ----------
(Dollars in thousands)
Interest-earning
assets:
Loans $ 725,044 $ 33,062 6.10% $ 681,876 $ 30,575 5.99%
Investment securities
held-to-maturity 25,640 1,202 6.27% 33,892 1,567 6.18%
Investment securities
available-for-sale 39,980 1,044 3.49% 47,783 1,377 3.85%
Interest-earning
deposits and federal
funds 70,650 2,253 4.26% 51,105 1,964 5.13%
Other investments 6,221 287 6.17% 5,676 263 6.19%
---------- ------ ---------- ------
Total interest-earning
assets 867,535 37,848 5.83% 820,332 35,746 5.82%
Non-interest-earning
assets 48,139 50,238
---------- ----------
Total assets $ 915,674 $ 870,570
========== ==========
Interest-bearing
liabilities:
Interest-bearing
checking accounts $ 83,870 $ 305 0.49% $ 88,243 $ 344 0.52%
Money market accounts 164,295 3,723 3.03% 145,284 3,496 3.21%
Savings accounts 85,144 1,849 2.90% 73,056 1,563 2.86%
Certificates of
deposit 247,174 7,519 4.07% 218,641 6,884 4.21%
---------- ------ ---------- ------
Total interest-bearing
deposits 580,483 13,396 3.09% 525,224 12,287 3.12%
FHLB advances and
other borrowings 54,282 1,567 3.86% 53,857 1,727 4.28%
---------- ------ ---------- ------
Total interest-bearing
liabilities 634,765 14,963 3.15% 579,081 14,014 3.23%
Non-interest-bearing
liabilities 154,574 166,911
---------- ----------
Total liabilities 789,339 745,992
Total stockholders'
equity 126,335 124,578
---------- ----------
Total liabilities and
stockholders' equity $ 915,674 $ 870,570
========== ==========
Net interest rate
spread 2.68% 2.59%
Net interest income $ 22,885 $ 21,732
====== ======
Net interest margin 3.53% 3.54%
AFFINITY BANCSHARES, INC.
Consolidated Balance Sheets
(unaudited)
September 30, 2025 December 31, 2024
--------------------- -----------------
(Dollars in thousands except per share
amounts)
Assets
Cash and due from banks $ 6,092 $ 7,092
Interest-earning deposits
in other depository
institutions 78,753 34,333
------ ------------- -------------
Cash and cash
equivalents 84,845 41,425
Investment securities
available-for-sale 44,668 36,502
Investment securities
held-to-maturity
(estimated fair value of
$19,692 net of allowance
for credit losses of $29
at September 30, 2025 and
estimated fair value of
$27,286 net of allowance
for credit losses of $45
at December 31, 2024) 19,225 27,299
Other investments 6,254 6,175
Loans 729,539 714,115
Allowance for credit loss
on loans (8,562) (8,496)
------ ------------- -------------
Net loans 720,977 705,619
Premises and equipment,
net 2,955 3,261
Bank owned life insurance 16,795 16,487
Intangible assets 18,032 18,175
Other assets 11,470 11,874
------ ------------- -------------
Total assets $ 925,221 $ 866,817
====== ============= =============
Liabilities and Stockholders' Equity
Liabilities:
Non-interest-bearing
checking $ 150,613 $ 151,395
Interest-bearing
checking 86,824 73,841
Money market accounts 176,477 148,752
Savings accounts 93,938 76,053
Certificates of
deposit 231,524 223,440
------ ------------- -------------
Total deposits 739,376 673,481
Federal Home Loan Bank
advances and other
borrowings 54,000 58,815
Accrued interest
payable and other
liabilities 6,440 5,406
------ ------------- -------------
Total liabilities 799,816 737,702
Stockholders' equity:
Common stock (par
value $0.01 per
share, 40,000,000
shares authorized;
6,193,686 issued and
outstanding at
September 30, 2025
and 6,409,598 issued
and outstanding at
December 31, 2024) 62 64
Preferred stock
(10,000,000 shares
authorized, no shares
outstanding) -- --
Additional paid in
capital 59,584 62,355
Unearned ESOP shares (3,742) (4,378)
Retained earnings 73,976 76,786
Accumulated other
comprehensive loss (4,475) (5,712)
------ ------------- -------------
Total stockholders'
equity 125,405 129,115
------ ------------- -------------
Total liabilities
and stockholders'
equity $ 925,221 $ 866,817
====== ============= =============
AFFINITY BANCSHARES, INC.
Consolidated Statements of Income
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
(Dollars in thousands except per share
amounts)
Interest income:
Loans, including
fees $ 11,219 $ 10,596 $ 33,062 $ 30,575
Investment
securities 833 1,038 2,533 3,207
Interest-earning
deposits 868 668 2,253 1,964
--------- --------- --------- ---------
Total interest
income 12,920 12,302 37,848 35,746
--------- --------- --------- ---------
Interest expense:
Deposits 4,625 4,187 13,396 12,287
FHLB advances and
other borrowings 525 701 1,567 1,727
--------- --------- --------- ---------
Total interest
expense 5,150 4,888 14,963 14,014
--------- --------- --------- ---------
Net interest
income before
provision for
credit losses 7,770 7,414 22,885 21,732
--------- --------- --------- ---------
Provision for
credit losses 12 -- 79 213
--------- --------- --------- ---------
Net interest
income after
provision for
credit losses 7,758 7,414 22,806 21,519
--------- --------- --------- ---------
Noninterest income:
Service charges on
deposit accounts 367 364 1,020 1,150
Net gain on sale of
other real estate
owned -- -- -- 135
Other 221 202 589 570
--------- --------- --------- ---------
Total
noninterest
income 588 566 1,609 1,855
--------- --------- --------- ---------
Noninterest
expenses:
Salaries and
employee benefits 3,196 3,257 9,815 9,853
Occupancy 581 600 1,781 1,833
Data processing 531 520 1,624 1,538
Other 1,121 1,327 3,034 4,769
--------- --------- --------- ---------
Total
noninterest
expenses 5,429 5,704 16,254 17,993
--------- --------- --------- ---------
Income before
income taxes 2,917 2,276 8,161 5,381
Income tax expense 700 546 1,960 1,285
--------- --------- --------- ---------
Net income $ 2,217 $ 1,730 $ 6,201 $ 4,096
========= ========= ========= =========
Weighted average
common shares
outstanding
Basic 6,256,780 6,412,511 6,324,478 6,415,246
Diluted 6,427,697 6,611,468 6,481,644 6,555,096
Basic earnings per
share $ 0.35 $ 0.27 $ 0.98 $ 0.64
Diluted earnings per
share $ 0.34 $ 0.26 $ 0.96 $ 0.62
Explanation of Certain Unaudited Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. Additionally, the Company believes the following information is utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation tables below for details on the earnings impact of these items.
For the Three Months Ended For the Year Ended
----------------------------------------------------- --------------------
Non-GAAP September June 30, March 31, December September September September
Reconciliation 30, 2025 2025 2025 31, 2024 30, 2024 30, 2025 30, 2024
--------- --------- --------- --------- --------- --------- ---------
Operating net
income
reconciliation
Net income
(GAAP) $2,217 $2,152 $1,831 $1,345 $1,730 $6,201 $4,096
Net loss on
securities
available for
sale -- -- -- 385 -- -- --
ESOP
Compensation
expense related
to dividend 220 210 211 -- -- 641 --
Merger-related
expenses -- -- -- 119 196 -- 1,185
Income tax
expense (48) (46) (46) (111) (43) (140) (261)
--------- --------- --------- --------- --------- --------- ---------
Operating net
income $2,389 $2,316 $1,996 $1,738 $1,883 $6,702 $5,020
========= ========= ========= ========= ========= ========= =========
Weighted average
diluted shares 6,427,697 6,457,397 6,547,817 6,620,602 6,611,468 6,481,644 6,555,096
Adjusted diluted
earnings per
share $0.37 $0.36 $0.30 $0.26 $0.29 $1.03 $0.77
Tangible book value per common share reconciliation
Book Value per
common share
(GAAP) $20.25 $19.66 $19.25 $20.14 $20.02 $20.25 $20.02
Effect of
goodwill and
other
intangibles (2.91) (2.86) (2.85) (2.84) (2.84) (2.91) (2.84)
--------- --------- --------- --------- --------- --------- ---------
Tangible book
value per
common share $17.34 $16.80 $16.40 $17.30 $17.18 $17.34 $17.18
========= ========= ========= ========= ========= ========= =========
Tangible equity to tangible assets reconciliation
Equity to assets
(GAAP) 13.55% 13.29% 13.40% 14.90% 14.61% 13.55% 14.61%
Effect of
goodwill and
other
intangibles (1.72)% (1.71)% (1.75)% (1.81)% (1.81)% (1.72)% (1.81)%
--------- --------- --------- --------- --------- --------- ---------
Tangible equity
to tangible
assets (1) 11.83% 11.58% 11.65% 13.08% 12.80% 11.83% 12.80%
========= ========= ========= ========= ========= ========= =========
(1) Tangible assets is total assets less intangible assets. Tangible equity is total equity
less intangible assets.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251024389770/en/
CONTACT: Edward J. Cooney
Chief Executive Officer
(678) 742-9990
(END) Dow Jones Newswires
October 24, 2025 16:31 ET (20:31 GMT)