Affinity Bancshares, Inc. Announces Third Quarter 2025 Financial Results
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, | ||||||||||||||||||||
Performance Ratios: | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 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 | Interest | Average | Average | Interest | Average | |||||||||||||||||||
(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 | Interest | Average | Average | Interest | Average | |||||||||||||||||||
(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 | 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; | 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 September 30, | Nine Months Ended | ||||||||||||||||
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 Reconciliation | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | September 30, 2025 | September 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/
Edward J. Cooney
Chief Executive Officer
(678) 742-9990
NASDAQ: AFBI
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