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Affinity Bancshares, Inc. Announces Second Quarter 2025 Financial Results

COVINGTON, Ga.--(BUSINESS WIRE)-- Affinity Bancshares, Inc. (NASDAQ:鈥淎FBI鈥�) (the 鈥淐ompany鈥�), the holding company for Affinity Bank (the 鈥淏ank鈥�), today announced net income of $2.2 million for the three months ended June 30, 2025, as compared to $1.0 million for the three months ended June 30, 2024.

Net Income

• Net income was $4.0 million for six months ended June 30, 2025 as compared to $2.4 million for the six months ended June 30, 2024, as a result of an increase in net interest income along with a decrease in noninterest expenses offset by a decrease in noninterest income.
• Operating income for the six months ended June 30, 2025 was $4.3 million as compared to $3.1 million for the six months ended June 30, 2024.
• Net income was $2.2 million for three months ended June 30, 2025 as compared to $1.0 million for the three months ended June 30, 2024, as a result of an increase in net interest income along with a decrease in noninterest expenses offset by a decrease in noninterest income.
• Operating income for the three months ended June 30, 2025 was $2.3 million as compared to $1.8 million for the three months ended June 30, 2024.

Results of Operations

• Net interest income was $15.1 million for the six months ended June 30, 2025 compared to $14.3 million for the six months ended June 30, 2024. The increase was due to an increase in interest income on loans and interest-earning deposits offset by increases in deposit and borrowing costs and a decrease in interest income on investment securities.
• Net interest margin for the six months ended June 30, 2025 and 2024 remained stable at 3.55%.
• Noninterest income decreased $269,000 to $1.0 million for the six months ended June 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 $1.5 million to $10.8 million for the six months ended June 30, 2025 compared to the 2024 period, due mainly to a decrease in other fees.
• Net interest income was $7.8 million for the three months ended June 30, 2025 compared to $7.6 million for the three months ended June 30, 2024. The increase was due to an increase in interest income on loans and interest-earning deposits, partially offset by increases in deposit and a decrease in interest income on investment securities.
• Net interest margin for the three months ended June 30, 2025 decreased to 3.57% from 3.71% for the three months ended June 30, 2024. The decrease in the margin relates to a decrease in our yield on earning assets decreasing 11 basis points while our deposits and borrowing cost of funds only decreased three basis points.
• Noninterest income decreased $166,000 to $540,000 for the three months ended June 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 $1.3 million to $5.5 million for the three months ended June 30, 2025 compared to the 2024 period, due mainly to a decrease in other fees.

Financial Condition

• Total assets increased $67.0 million to $933.8 million at June 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 $17.0 million to $731.1 million at June 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 $39.9 million at June 30, 2025; the average LTV on these loans is 48.8%, including
  • $15.8 million medical/dental tenants and
  • $24.1 million to other various tenants.
• Investment securities held-to-maturity unrealized gains were $240,000, net of tax. Investment securities available-for-sale unrealized losses were $5.0 million, net of tax.
• Cash and cash equivalents increased $48.2 million to $89.7 million at June 30, 2025 from $41.4 million at December 31, 2024.
• Deposits increased by $75.9 million to $749.3 million at June 30, 2025 compared to $673.5 million at December 31, 2024, with a $42.5 million net increase in demand deposits and a $33.4 million increase in certificates of deposits.
• Borrowings decreased by $4.8 million to $54.0 million at June 30, 2025 compared to $58.8 million at December 31, 2024 as an advance from the Bank Term Funding program was paid in full in first quarter of 2025.
• Equity decreased $5.0 million to $124.1 million at June 30, 2025 from $129.1 million at December 31, 2024 from payment of $1.50 per share dividend that was declared and paid in first quarter, along with $2.1 million common stock repurchases.

Asset Quality

• Non-performing loans decreased to $4.6 million at June 30, 2025 from $4.8 million at December 31, 2024.
• The allowance for credit losses as a percentage of non-performing loans was 187.1% at June 30, 2025, as compared to 177.9% at December 31, 2024.
• Allowance for credit losses to total loans decreased to 1.17% at June 30, 2025 from 1.19% at December 31, 2024.
• Net loan charge-offs were $79,000 for the six months ended June 30, 2025, as compared to net loan charge-offs of $460,000 for the six months ended June 30, 2024.

About Affinity Bancshares, Inc.

The Company is a Maryland corporation based in Covington, Georgia. The Company鈥檚 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 鈥渆stimate,鈥� 鈥減roject,鈥� 鈥渂elieve,鈥� 鈥渋ntend,鈥� 鈥渁nticipate,鈥� 鈥渁ssume,鈥� 鈥減lan,鈥� 鈥渟eek,鈥� 鈥渆xpect,鈥� 鈥渨ill,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渋ndicate,鈥� 鈥渨ould,鈥� 鈥渃ontemplate,鈥� 鈥渃ontinue,鈥� 鈥渢arget鈥� 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; 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.

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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鈥檚 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.

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View source version on businesswire.com:

Edward J. Cooney

Chief Executive Officer

(678) 742-9990

Source: Affinity Bancshares, Inc.