Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Affinity Bancshares, Inc. Announces Third Quarter 2022 Financial Results By: Affinity Bancshares, Inc. via Business Wire October 26, 2022 at 16:30 PM EDT Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021. For the nine months ended September 30, 2022, net income was $5.4 million, as compared to $6.3 million for the nine months ended September 30, 2021. At or for the three months ended, Performance Ratios: September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Net income (in thousands) $ 1,861 $ 1,783 $ 1,791 $ 1,318 $ 1,805 Diluted earnings per share 0.27 0.27 0.26 0.20 0.26 Common book value per share 17.37 17.51 17.58 17.60 17.42 Tangible book value per share (1) 14.57 14.68 14.75 14.87 14.69 Total assets (in thousands) 776,390 766,679 760,208 788,088 789,965 Return on average assets 0.95 % 0.95 % 0.97 % 0.66 % 0.91 % Return on average equity 6.30 % 6.13 % 5.97 % 4.36 % 6.00 % Equity to assets 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Tangible equity to tangible assets (1) 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % Net interest margin 4.12 % 4.06 % 4.47 % 3.60 % 3.74 % Efficiency ratio 67.62 % 67.23 % 69.00 % 74.29 % 65.87 % (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 $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan-related interest and fee income, partially offset by a decrease in interest expense. Net income was $5.4 million for the nine months ended September 30, 2022, as compared to $6.3 million for the nine months ended September 30, 2021, as a result of lower interest and fee income on PPP loans, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. Results of Operations Net interest income was $7.5 million for the three months ended September 30, 2022 compared to $6.9 million for the three months ended September 30, 2021 due to an increase in loan interest, partially offset by a decrease in PPP loan-related interest and fee income. Net interest income was $22.4 million for the nine months ended September 30, 2022 compared to $22.6 million for the nine months ended September 30, 2021. The decrease for the nine months ended September 30, 2022 compared to the same period in 2021 was a result of a decrease in PPP loan-related interest and fee income, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. The Company’s net interest margin increased to 4.12% from 3.78% for the three months ended September 30, 2022 and 2021. Net interest margin for the nine months ended September 30, 2022 increased slightly to 4.24% from 4.17% for the nine months ended September 30, 2021. Noninterest income was $593 thousand for the three months ended September 30, 2022 and $771 thousand for the three months ended September 30, 2021. For the nine months ended September 30, 2022, noninterest income was $1.8 million compared to $2.1 million for the nine months ended September 30, 2021. The decreases were a result of the Company recognizing gains on sale of other real estate and death benefits received from bank owned life insurance in previous periods. Non-interest expense was $5.5 million and $5.0 million for the three months ended September 30, 2022 and 2021. Non-interest expense was $16.5 million and $15.6 million for the nine months ended September 30, 2022 and 2021. The increases were due in part to the increases in salaries and employee benefits as a result of the Company’s strategic initiative to attract and retain talent. Financial Condition Total assets decreased $11.7 million to $776.4 million at September 30, 2022 from $788.1 million at December 31, 2021. Total net loans increased $65.3 million to $641.1 million at September 30, 2022 from $575.8 million at December 31, 2021 due primarily to strategic lending staff hires made to diversify our loan portfolio. Deposits increased by $31.2 million to $646.0 million at September 30, 2022 compared to $614.8 million at December 31, 2021. Borrowings decreased by $39.0 million to $10.0 million at September 30, 2022 compared to $49.0 million at December 31, 2021 as we repaid Federal Home Loan Bank borrowings. Asset Quality Non-performing loans remained unchanged at $7.0 million at September 30, 2022 and December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 132.8% at September 30, 2022, as compared to 122.1% at December 31, 2021. Allowance for loan losses was 1.43% of total loans at September 30, 2022, as compared to 1.46% of total loans at December 31, 2021. Net loan recoveries were $108,000 for the nine months ended September 30, 2022, as compared to $295,000 for the nine months ended September 30, 2021. 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 technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; 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, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 639,115 $ 7,734 4.80 % $ 568,442 $ 7,332 5.12 % Securities 44,690 289 2.56 % 40,569 216 2.13 % Interest-earning deposits 39,384 189 1.91 % 115,330 53 0.18 % Other investments 1,163 12 4.19 % 2,476 21 3.37 % Total interest-earning assets 724,352 8,224 4.50 % 726,817 7,622 4.19 % Non-interest-earning assets 49,770 64,408 Total assets $ 774,122 $ 791,225 Interest-bearing liabilities: Interest-bearing checking accounts $ 98,473 $ 47 0.19 % $ 83,519 $ 43 0.21 % Market rate checking accounts 159,478 100 0.25 % 136,984 117 0.34 % Savings accounts 83,484 187 0.89 % 93,717 100 0.43 % Certificates of deposit 89,871 291 1.28 % 105,285 369 1.40 % Total interest-bearing deposits 431,306 625 0.57 % 419,505 629 0.60 % FHLB advances 13,696 73 2.12 % 49,039 132 1.07 % Total interest-bearing liabilities 445,002 698 0.62 % 468,544 761 0.65 % Non-interest-bearing liabilities 211,986 203,336 Total liabilities 656,988 671,880 Total stockholders' equity 117,134 119,345 Total liabilities and stockholders' equity $ 774,122 $ 791,225 Net interest rate spread 3.88 % 3.54 % Net interest income $ 7,526 $ 6,861 Net interest-earning assets $ 279,350 $ 258,273 Net interest margin 4.12 % 3.78 % For the Nine Months Ended September 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 616,141 $ 22,013 4.78 % $ 596,024 $ 24,424 5.48 % Securities 46,585 827 2.37 % 31,374 472 2.01 % Interest-earning deposits 43,125 286 0.89 % 92,880 134 0.19 % Other investments 1,117 30 3.57 % 2,273 57 3.32 % Total interest-earning assets 706,968 23,156 4.38 % 722,551 25,087 4.63 % Non-interest-earning assets 51,687 63,028 Total assets $ 758,655 $ 785,579 Interest-bearing liabilities: Interest-bearing checking accounts $ 97,463 $ 134 0.18 % $ 88,154 $ 138 0.21 % Market rate checking accounts 151,654 282 0.25 % 130,933 378 0.39 % Savings accounts 84,042 356 0.57 % 93,823 310 0.44 % Certificates of deposit 91,493 840 1.23 % 114,623 1,284 1.49 % Total interest-bearing deposits 424,652 1,612 0.51 % 427,533 2,110 0.66 % FHLB advances 12,304 (875 ) (9.50 )% 41,471 350 1.13 % Other borrowings 46 1 3.43 % 1,927 15 1.01 % Total interest-bearing liabilities 437,002 738 0.23 % 470,931 2,475 0.69 % Non-interest-bearing liabilities 203,164 199,971 Total liabilities 640,166 670,902 Total stockholders' equity 118,489 114,677 Total liabilities and stockholders' equity $ 758,655 $ 785,579 Net interest rate spread 4.15 % 3.94 % Net interest income $ 22,418 $ 22,612 Net interest margin 4.24 % 4.17 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2022 December 31, 2021 (unaudited) (In thousands) Assets Cash and due from bank $ 6,887 $ 16,239 Interest-earning deposits in other depository institutions 33,619 95,537 Cash and cash equivalents 40,506 111,776 Investment securities available-for-sale 41,878 48,557 Other investments 1,025 2,476 Loans, net 641,062 575,825 Other real estate owned 3,538 3,538 Premises and equipment, net 4,069 3,783 Bank owned life insurance 15,637 15,377 Intangible assets 18,606 18,749 Other assets 10,069 8,007 Total assets $ 776,390 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 204,781 $ 193,940 Interest-bearing checking 93,235 91,387 Market rate checking 160,377 145,969 Savings accounts 88,840 86,745 Certificates of deposit 98,784 96,758 Total deposits 646,017 614,799 Federal Home Loan Bank advances 10,000 48,988 Accrued interest payable and other liabilities 5,152 3,333 Total liabilities 661,169 667,120 Stockholders' equity: Preferred stock (10,000,000 shares authorized, no shares outstanding at September 30, 2022 and December 31, 2021) — — Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,634,885 issued and outstanding at September 30, 2022 and 6,872,634 issued and outstanding at December 31, 2021) 65 69 Additional paid in capital 63,289 68,038 Unearned ESOP shares (4,847 ) (5,004 ) Retained earnings 63,658 58,223 Accumulated other comprehensive loss (6,944 ) (358 ) Total stockholders' equity 115,221 120,968 Total liabilities and stockholders' equity $ 776,390 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Interest income: Loans, including fees $ 7,734 $ 7,332 $ 22,013 $ 24,424 Investment securities 301 237 857 529 Interest-earning deposits 189 53 286 134 Total interest income 8,224 7,622 23,156 25,087 Interest expense: Deposits 625 629 1,612 2,110 Borrowings 73 132 (874 ) 365 Total interest expense 698 761 738 2,475 Net interest income before provision for loan losses 7,526 6,861 22,418 22,612 Provision for loan losses 187 225 654 975 Net interest income after provision for loan losses 7,339 6,636 21,764 21,637 Noninterest income: Service charges on deposit accounts 420 416 1,205 1,126 Other 173 355 631 980 Total noninterest income 593 771 1,836 2,106 Noninterest expenses: Salaries and employee benefits 3,187 2,777 9,219 7,797 Occupancy 675 633 1,798 2,329 Advertising 128 116 326 296 Data processing 486 520 1,476 1,518 Writedown of premises and equipment — 14 — 888 FHLB prepayment penalties — — 647 — Other 1,014 967 3,019 2,764 Total noninterest expenses 5,490 5,027 16,485 15,592 Income before income taxes 2,442 2,380 7,115 8,151 Income tax expense 581 575 1,680 1,896 Net income $ 1,861 $ 1,805 $ 5,435 $ 6,255 Weighted average common shares outstanding Basic Diluted Basic earnings per share $ 0.28 $ 0.26 $ 0.81 $ 0.90 Diluted earnings per share $ 0.27 $ 0.26 $ 0.80 $ 0.89 Explanation of Certain Unaudited Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this 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 table below for details on the earnings impact of these items. Non-GAAP Reconciliation September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 17.37 $ 17.51 $ 17.58 $ 17.60 $ 17.42 Effect of goodwill and other intangibles (2.80 ) (2.83 ) (2.83 ) (2.73 ) (2.73 ) Tangible book value per common share $ 14.57 $ 14.68 $ 14.75 $ 14.87 $ 14.69 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Effect of goodwill and other intangibles (2.09 )% (2.12 )% (2.14 )% (2.06 )% (2.07 )% Tangible equity to tangible assets 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005921/en/Contacts Edward J. Cooney Chief Executive Officer (678)742-9990 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Affinity Bancshares, Inc. Announces Third Quarter 2022 Financial Results By: Affinity Bancshares, Inc. via Business Wire October 26, 2022 at 16:30 PM EDT Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021. For the nine months ended September 30, 2022, net income was $5.4 million, as compared to $6.3 million for the nine months ended September 30, 2021. At or for the three months ended, Performance Ratios: September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Net income (in thousands) $ 1,861 $ 1,783 $ 1,791 $ 1,318 $ 1,805 Diluted earnings per share 0.27 0.27 0.26 0.20 0.26 Common book value per share 17.37 17.51 17.58 17.60 17.42 Tangible book value per share (1) 14.57 14.68 14.75 14.87 14.69 Total assets (in thousands) 776,390 766,679 760,208 788,088 789,965 Return on average assets 0.95 % 0.95 % 0.97 % 0.66 % 0.91 % Return on average equity 6.30 % 6.13 % 5.97 % 4.36 % 6.00 % Equity to assets 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Tangible equity to tangible assets (1) 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % Net interest margin 4.12 % 4.06 % 4.47 % 3.60 % 3.74 % Efficiency ratio 67.62 % 67.23 % 69.00 % 74.29 % 65.87 % (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 $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan-related interest and fee income, partially offset by a decrease in interest expense. Net income was $5.4 million for the nine months ended September 30, 2022, as compared to $6.3 million for the nine months ended September 30, 2021, as a result of lower interest and fee income on PPP loans, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. Results of Operations Net interest income was $7.5 million for the three months ended September 30, 2022 compared to $6.9 million for the three months ended September 30, 2021 due to an increase in loan interest, partially offset by a decrease in PPP loan-related interest and fee income. Net interest income was $22.4 million for the nine months ended September 30, 2022 compared to $22.6 million for the nine months ended September 30, 2021. The decrease for the nine months ended September 30, 2022 compared to the same period in 2021 was a result of a decrease in PPP loan-related interest and fee income, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. The Company’s net interest margin increased to 4.12% from 3.78% for the three months ended September 30, 2022 and 2021. Net interest margin for the nine months ended September 30, 2022 increased slightly to 4.24% from 4.17% for the nine months ended September 30, 2021. Noninterest income was $593 thousand for the three months ended September 30, 2022 and $771 thousand for the three months ended September 30, 2021. For the nine months ended September 30, 2022, noninterest income was $1.8 million compared to $2.1 million for the nine months ended September 30, 2021. The decreases were a result of the Company recognizing gains on sale of other real estate and death benefits received from bank owned life insurance in previous periods. Non-interest expense was $5.5 million and $5.0 million for the three months ended September 30, 2022 and 2021. Non-interest expense was $16.5 million and $15.6 million for the nine months ended September 30, 2022 and 2021. The increases were due in part to the increases in salaries and employee benefits as a result of the Company’s strategic initiative to attract and retain talent. Financial Condition Total assets decreased $11.7 million to $776.4 million at September 30, 2022 from $788.1 million at December 31, 2021. Total net loans increased $65.3 million to $641.1 million at September 30, 2022 from $575.8 million at December 31, 2021 due primarily to strategic lending staff hires made to diversify our loan portfolio. Deposits increased by $31.2 million to $646.0 million at September 30, 2022 compared to $614.8 million at December 31, 2021. Borrowings decreased by $39.0 million to $10.0 million at September 30, 2022 compared to $49.0 million at December 31, 2021 as we repaid Federal Home Loan Bank borrowings. Asset Quality Non-performing loans remained unchanged at $7.0 million at September 30, 2022 and December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 132.8% at September 30, 2022, as compared to 122.1% at December 31, 2021. Allowance for loan losses was 1.43% of total loans at September 30, 2022, as compared to 1.46% of total loans at December 31, 2021. Net loan recoveries were $108,000 for the nine months ended September 30, 2022, as compared to $295,000 for the nine months ended September 30, 2021. 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 technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; 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, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 639,115 $ 7,734 4.80 % $ 568,442 $ 7,332 5.12 % Securities 44,690 289 2.56 % 40,569 216 2.13 % Interest-earning deposits 39,384 189 1.91 % 115,330 53 0.18 % Other investments 1,163 12 4.19 % 2,476 21 3.37 % Total interest-earning assets 724,352 8,224 4.50 % 726,817 7,622 4.19 % Non-interest-earning assets 49,770 64,408 Total assets $ 774,122 $ 791,225 Interest-bearing liabilities: Interest-bearing checking accounts $ 98,473 $ 47 0.19 % $ 83,519 $ 43 0.21 % Market rate checking accounts 159,478 100 0.25 % 136,984 117 0.34 % Savings accounts 83,484 187 0.89 % 93,717 100 0.43 % Certificates of deposit 89,871 291 1.28 % 105,285 369 1.40 % Total interest-bearing deposits 431,306 625 0.57 % 419,505 629 0.60 % FHLB advances 13,696 73 2.12 % 49,039 132 1.07 % Total interest-bearing liabilities 445,002 698 0.62 % 468,544 761 0.65 % Non-interest-bearing liabilities 211,986 203,336 Total liabilities 656,988 671,880 Total stockholders' equity 117,134 119,345 Total liabilities and stockholders' equity $ 774,122 $ 791,225 Net interest rate spread 3.88 % 3.54 % Net interest income $ 7,526 $ 6,861 Net interest-earning assets $ 279,350 $ 258,273 Net interest margin 4.12 % 3.78 % For the Nine Months Ended September 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 616,141 $ 22,013 4.78 % $ 596,024 $ 24,424 5.48 % Securities 46,585 827 2.37 % 31,374 472 2.01 % Interest-earning deposits 43,125 286 0.89 % 92,880 134 0.19 % Other investments 1,117 30 3.57 % 2,273 57 3.32 % Total interest-earning assets 706,968 23,156 4.38 % 722,551 25,087 4.63 % Non-interest-earning assets 51,687 63,028 Total assets $ 758,655 $ 785,579 Interest-bearing liabilities: Interest-bearing checking accounts $ 97,463 $ 134 0.18 % $ 88,154 $ 138 0.21 % Market rate checking accounts 151,654 282 0.25 % 130,933 378 0.39 % Savings accounts 84,042 356 0.57 % 93,823 310 0.44 % Certificates of deposit 91,493 840 1.23 % 114,623 1,284 1.49 % Total interest-bearing deposits 424,652 1,612 0.51 % 427,533 2,110 0.66 % FHLB advances 12,304 (875 ) (9.50 )% 41,471 350 1.13 % Other borrowings 46 1 3.43 % 1,927 15 1.01 % Total interest-bearing liabilities 437,002 738 0.23 % 470,931 2,475 0.69 % Non-interest-bearing liabilities 203,164 199,971 Total liabilities 640,166 670,902 Total stockholders' equity 118,489 114,677 Total liabilities and stockholders' equity $ 758,655 $ 785,579 Net interest rate spread 4.15 % 3.94 % Net interest income $ 22,418 $ 22,612 Net interest margin 4.24 % 4.17 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2022 December 31, 2021 (unaudited) (In thousands) Assets Cash and due from bank $ 6,887 $ 16,239 Interest-earning deposits in other depository institutions 33,619 95,537 Cash and cash equivalents 40,506 111,776 Investment securities available-for-sale 41,878 48,557 Other investments 1,025 2,476 Loans, net 641,062 575,825 Other real estate owned 3,538 3,538 Premises and equipment, net 4,069 3,783 Bank owned life insurance 15,637 15,377 Intangible assets 18,606 18,749 Other assets 10,069 8,007 Total assets $ 776,390 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 204,781 $ 193,940 Interest-bearing checking 93,235 91,387 Market rate checking 160,377 145,969 Savings accounts 88,840 86,745 Certificates of deposit 98,784 96,758 Total deposits 646,017 614,799 Federal Home Loan Bank advances 10,000 48,988 Accrued interest payable and other liabilities 5,152 3,333 Total liabilities 661,169 667,120 Stockholders' equity: Preferred stock (10,000,000 shares authorized, no shares outstanding at September 30, 2022 and December 31, 2021) — — Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,634,885 issued and outstanding at September 30, 2022 and 6,872,634 issued and outstanding at December 31, 2021) 65 69 Additional paid in capital 63,289 68,038 Unearned ESOP shares (4,847 ) (5,004 ) Retained earnings 63,658 58,223 Accumulated other comprehensive loss (6,944 ) (358 ) Total stockholders' equity 115,221 120,968 Total liabilities and stockholders' equity $ 776,390 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Interest income: Loans, including fees $ 7,734 $ 7,332 $ 22,013 $ 24,424 Investment securities 301 237 857 529 Interest-earning deposits 189 53 286 134 Total interest income 8,224 7,622 23,156 25,087 Interest expense: Deposits 625 629 1,612 2,110 Borrowings 73 132 (874 ) 365 Total interest expense 698 761 738 2,475 Net interest income before provision for loan losses 7,526 6,861 22,418 22,612 Provision for loan losses 187 225 654 975 Net interest income after provision for loan losses 7,339 6,636 21,764 21,637 Noninterest income: Service charges on deposit accounts 420 416 1,205 1,126 Other 173 355 631 980 Total noninterest income 593 771 1,836 2,106 Noninterest expenses: Salaries and employee benefits 3,187 2,777 9,219 7,797 Occupancy 675 633 1,798 2,329 Advertising 128 116 326 296 Data processing 486 520 1,476 1,518 Writedown of premises and equipment — 14 — 888 FHLB prepayment penalties — — 647 — Other 1,014 967 3,019 2,764 Total noninterest expenses 5,490 5,027 16,485 15,592 Income before income taxes 2,442 2,380 7,115 8,151 Income tax expense 581 575 1,680 1,896 Net income $ 1,861 $ 1,805 $ 5,435 $ 6,255 Weighted average common shares outstanding Basic Diluted Basic earnings per share $ 0.28 $ 0.26 $ 0.81 $ 0.90 Diluted earnings per share $ 0.27 $ 0.26 $ 0.80 $ 0.89 Explanation of Certain Unaudited Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this 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 table below for details on the earnings impact of these items. Non-GAAP Reconciliation September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 17.37 $ 17.51 $ 17.58 $ 17.60 $ 17.42 Effect of goodwill and other intangibles (2.80 ) (2.83 ) (2.83 ) (2.73 ) (2.73 ) Tangible book value per common share $ 14.57 $ 14.68 $ 14.75 $ 14.87 $ 14.69 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Effect of goodwill and other intangibles (2.09 )% (2.12 )% (2.14 )% (2.06 )% (2.07 )% Tangible equity to tangible assets 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005921/en/Contacts Edward J. Cooney Chief Executive Officer (678)742-9990
Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021. For the nine months ended September 30, 2022, net income was $5.4 million, as compared to $6.3 million for the nine months ended September 30, 2021. At or for the three months ended, Performance Ratios: September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Net income (in thousands) $ 1,861 $ 1,783 $ 1,791 $ 1,318 $ 1,805 Diluted earnings per share 0.27 0.27 0.26 0.20 0.26 Common book value per share 17.37 17.51 17.58 17.60 17.42 Tangible book value per share (1) 14.57 14.68 14.75 14.87 14.69 Total assets (in thousands) 776,390 766,679 760,208 788,088 789,965 Return on average assets 0.95 % 0.95 % 0.97 % 0.66 % 0.91 % Return on average equity 6.30 % 6.13 % 5.97 % 4.36 % 6.00 % Equity to assets 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Tangible equity to tangible assets (1) 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % Net interest margin 4.12 % 4.06 % 4.47 % 3.60 % 3.74 % Efficiency ratio 67.62 % 67.23 % 69.00 % 74.29 % 65.87 % (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 $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan-related interest and fee income, partially offset by a decrease in interest expense. Net income was $5.4 million for the nine months ended September 30, 2022, as compared to $6.3 million for the nine months ended September 30, 2021, as a result of lower interest and fee income on PPP loans, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. Results of Operations Net interest income was $7.5 million for the three months ended September 30, 2022 compared to $6.9 million for the three months ended September 30, 2021 due to an increase in loan interest, partially offset by a decrease in PPP loan-related interest and fee income. Net interest income was $22.4 million for the nine months ended September 30, 2022 compared to $22.6 million for the nine months ended September 30, 2021. The decrease for the nine months ended September 30, 2022 compared to the same period in 2021 was a result of a decrease in PPP loan-related interest and fee income, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. The Company’s net interest margin increased to 4.12% from 3.78% for the three months ended September 30, 2022 and 2021. Net interest margin for the nine months ended September 30, 2022 increased slightly to 4.24% from 4.17% for the nine months ended September 30, 2021. Noninterest income was $593 thousand for the three months ended September 30, 2022 and $771 thousand for the three months ended September 30, 2021. For the nine months ended September 30, 2022, noninterest income was $1.8 million compared to $2.1 million for the nine months ended September 30, 2021. The decreases were a result of the Company recognizing gains on sale of other real estate and death benefits received from bank owned life insurance in previous periods. Non-interest expense was $5.5 million and $5.0 million for the three months ended September 30, 2022 and 2021. Non-interest expense was $16.5 million and $15.6 million for the nine months ended September 30, 2022 and 2021. The increases were due in part to the increases in salaries and employee benefits as a result of the Company’s strategic initiative to attract and retain talent. Financial Condition Total assets decreased $11.7 million to $776.4 million at September 30, 2022 from $788.1 million at December 31, 2021. Total net loans increased $65.3 million to $641.1 million at September 30, 2022 from $575.8 million at December 31, 2021 due primarily to strategic lending staff hires made to diversify our loan portfolio. Deposits increased by $31.2 million to $646.0 million at September 30, 2022 compared to $614.8 million at December 31, 2021. Borrowings decreased by $39.0 million to $10.0 million at September 30, 2022 compared to $49.0 million at December 31, 2021 as we repaid Federal Home Loan Bank borrowings. Asset Quality Non-performing loans remained unchanged at $7.0 million at September 30, 2022 and December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 132.8% at September 30, 2022, as compared to 122.1% at December 31, 2021. Allowance for loan losses was 1.43% of total loans at September 30, 2022, as compared to 1.46% of total loans at December 31, 2021. Net loan recoveries were $108,000 for the nine months ended September 30, 2022, as compared to $295,000 for the nine months ended September 30, 2021. 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 technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; 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, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 639,115 $ 7,734 4.80 % $ 568,442 $ 7,332 5.12 % Securities 44,690 289 2.56 % 40,569 216 2.13 % Interest-earning deposits 39,384 189 1.91 % 115,330 53 0.18 % Other investments 1,163 12 4.19 % 2,476 21 3.37 % Total interest-earning assets 724,352 8,224 4.50 % 726,817 7,622 4.19 % Non-interest-earning assets 49,770 64,408 Total assets $ 774,122 $ 791,225 Interest-bearing liabilities: Interest-bearing checking accounts $ 98,473 $ 47 0.19 % $ 83,519 $ 43 0.21 % Market rate checking accounts 159,478 100 0.25 % 136,984 117 0.34 % Savings accounts 83,484 187 0.89 % 93,717 100 0.43 % Certificates of deposit 89,871 291 1.28 % 105,285 369 1.40 % Total interest-bearing deposits 431,306 625 0.57 % 419,505 629 0.60 % FHLB advances 13,696 73 2.12 % 49,039 132 1.07 % Total interest-bearing liabilities 445,002 698 0.62 % 468,544 761 0.65 % Non-interest-bearing liabilities 211,986 203,336 Total liabilities 656,988 671,880 Total stockholders' equity 117,134 119,345 Total liabilities and stockholders' equity $ 774,122 $ 791,225 Net interest rate spread 3.88 % 3.54 % Net interest income $ 7,526 $ 6,861 Net interest-earning assets $ 279,350 $ 258,273 Net interest margin 4.12 % 3.78 % For the Nine Months Ended September 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 616,141 $ 22,013 4.78 % $ 596,024 $ 24,424 5.48 % Securities 46,585 827 2.37 % 31,374 472 2.01 % Interest-earning deposits 43,125 286 0.89 % 92,880 134 0.19 % Other investments 1,117 30 3.57 % 2,273 57 3.32 % Total interest-earning assets 706,968 23,156 4.38 % 722,551 25,087 4.63 % Non-interest-earning assets 51,687 63,028 Total assets $ 758,655 $ 785,579 Interest-bearing liabilities: Interest-bearing checking accounts $ 97,463 $ 134 0.18 % $ 88,154 $ 138 0.21 % Market rate checking accounts 151,654 282 0.25 % 130,933 378 0.39 % Savings accounts 84,042 356 0.57 % 93,823 310 0.44 % Certificates of deposit 91,493 840 1.23 % 114,623 1,284 1.49 % Total interest-bearing deposits 424,652 1,612 0.51 % 427,533 2,110 0.66 % FHLB advances 12,304 (875 ) (9.50 )% 41,471 350 1.13 % Other borrowings 46 1 3.43 % 1,927 15 1.01 % Total interest-bearing liabilities 437,002 738 0.23 % 470,931 2,475 0.69 % Non-interest-bearing liabilities 203,164 199,971 Total liabilities 640,166 670,902 Total stockholders' equity 118,489 114,677 Total liabilities and stockholders' equity $ 758,655 $ 785,579 Net interest rate spread 4.15 % 3.94 % Net interest income $ 22,418 $ 22,612 Net interest margin 4.24 % 4.17 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2022 December 31, 2021 (unaudited) (In thousands) Assets Cash and due from bank $ 6,887 $ 16,239 Interest-earning deposits in other depository institutions 33,619 95,537 Cash and cash equivalents 40,506 111,776 Investment securities available-for-sale 41,878 48,557 Other investments 1,025 2,476 Loans, net 641,062 575,825 Other real estate owned 3,538 3,538 Premises and equipment, net 4,069 3,783 Bank owned life insurance 15,637 15,377 Intangible assets 18,606 18,749 Other assets 10,069 8,007 Total assets $ 776,390 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 204,781 $ 193,940 Interest-bearing checking 93,235 91,387 Market rate checking 160,377 145,969 Savings accounts 88,840 86,745 Certificates of deposit 98,784 96,758 Total deposits 646,017 614,799 Federal Home Loan Bank advances 10,000 48,988 Accrued interest payable and other liabilities 5,152 3,333 Total liabilities 661,169 667,120 Stockholders' equity: Preferred stock (10,000,000 shares authorized, no shares outstanding at September 30, 2022 and December 31, 2021) — — Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,634,885 issued and outstanding at September 30, 2022 and 6,872,634 issued and outstanding at December 31, 2021) 65 69 Additional paid in capital 63,289 68,038 Unearned ESOP shares (4,847 ) (5,004 ) Retained earnings 63,658 58,223 Accumulated other comprehensive loss (6,944 ) (358 ) Total stockholders' equity 115,221 120,968 Total liabilities and stockholders' equity $ 776,390 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Interest income: Loans, including fees $ 7,734 $ 7,332 $ 22,013 $ 24,424 Investment securities 301 237 857 529 Interest-earning deposits 189 53 286 134 Total interest income 8,224 7,622 23,156 25,087 Interest expense: Deposits 625 629 1,612 2,110 Borrowings 73 132 (874 ) 365 Total interest expense 698 761 738 2,475 Net interest income before provision for loan losses 7,526 6,861 22,418 22,612 Provision for loan losses 187 225 654 975 Net interest income after provision for loan losses 7,339 6,636 21,764 21,637 Noninterest income: Service charges on deposit accounts 420 416 1,205 1,126 Other 173 355 631 980 Total noninterest income 593 771 1,836 2,106 Noninterest expenses: Salaries and employee benefits 3,187 2,777 9,219 7,797 Occupancy 675 633 1,798 2,329 Advertising 128 116 326 296 Data processing 486 520 1,476 1,518 Writedown of premises and equipment — 14 — 888 FHLB prepayment penalties — — 647 — Other 1,014 967 3,019 2,764 Total noninterest expenses 5,490 5,027 16,485 15,592 Income before income taxes 2,442 2,380 7,115 8,151 Income tax expense 581 575 1,680 1,896 Net income $ 1,861 $ 1,805 $ 5,435 $ 6,255 Weighted average common shares outstanding Basic Diluted Basic earnings per share $ 0.28 $ 0.26 $ 0.81 $ 0.90 Diluted earnings per share $ 0.27 $ 0.26 $ 0.80 $ 0.89 Explanation of Certain Unaudited Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this 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 table below for details on the earnings impact of these items. Non-GAAP Reconciliation September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 17.37 $ 17.51 $ 17.58 $ 17.60 $ 17.42 Effect of goodwill and other intangibles (2.80 ) (2.83 ) (2.83 ) (2.73 ) (2.73 ) Tangible book value per common share $ 14.57 $ 14.68 $ 14.75 $ 14.87 $ 14.69 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Effect of goodwill and other intangibles (2.09 )% (2.12 )% (2.14 )% (2.06 )% (2.07 )% Tangible equity to tangible assets 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005921/en/