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 2023 Financial Results By: Affinity Bancshares, Inc. via Business Wire October 26, 2023 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 $1.6 million for the three months ended September 30, 2023, as compared to $1.9 million for the three months ended September 30, 2022. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231026824553/en/ At or for the three months ended, Performance Ratios: September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Net income (in thousands) $ 1,623 $ 1,590 $ 1,722 $ 1,699 $ 1,861 Diluted earnings per share 0.25 0.24 0.26 0.26 0.27 Common book value per share 18.50 18.34 18.02 17.73 17.37 Tangible book value per share (1) 15.63 15.47 15.20 14.92 14.57 Total assets (in thousands) 855,431 876,905 932,302 791,283 776,390 Return on average assets 0.74 % 0.71 % 0.84 % 0.84 % 0.95 % Return on average equity 5.42 % 5.37 % 5.90 % 5.78 % 6.30 % Equity to assets 13.85 % 13.45 % 12.69 % 14.80 % 14.84 % Tangible equity to tangible assets (1) 11.95 % 11.59 % 10.92 % 12.75 % 12.75 % Net interest margin 3.36 % 3.17 % 3.58 % 3.85 % 4.12 % Efficiency ratio 71.78 % 71.68 % 69.73 % 71.38 % 67.62 % (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 $1.6 million for the three months ended September 30, 2023, as compared to $1.9 million for the three months ended September 30, 2022, as a result of an increase in deposit interest expense offset by an increase in interest income. Net income was $4.9 million for nine months ended September 30, 2023 as compared to $5.4 million for the nine months ended September 30, 2022, as a result of an increase in deposit interest expense and recognition of the remaining fair value mark on the acquired Federal Home Loan Bank advances that was recognized upon payoff during the first quarter 2022, partially offset by an increase in interest income. Results of Operations Net interest income was $6.9 million for the three months ended September 30, 2023 compared to $7.5 million for the three months ended September 30, 2022. The decrease was due to an increase in deposit costs partially offset by an increase in interest income. Net interest income was $20.5 million for the nine months ended September 30, 2023 compared to $22.4 million for the nine months ended September 30, 2022. The decrease was due to an increase in deposit costs and recognition of the remaining fair value mark on acquired FHLB advances that was recognized upon payoff during the first quarter of 2022, partially offset by an increase in interest income. Net interest margin for the three months ended September 30, 2023 decreased to 3.36% from 4.12% for the three months ended September 30, 2022. Net interest margin for the nine months ended September 30, 2023 decreased to 3.36% from 4.24% for the nine months ended September 30, 2022. The decreases in the margin relate to increases in our costs of funds exceeding our increases in our yield on interest-earning assets. The decrease in the margin for the nine months ended September 30, 2023 was also impacted by the fair value mark on the FHLB advances from acquisition that was recognized upon payoff during the first quarter of 2022. Adjusted net interest margin for the nine months ended September 30, 2023 (see Non-GAAP reconciliation) decreased 59 basis points from 3.95% at nine months ended September 30, 2022 to 3.36%. Noninterest income increased $37,000 to $630,000 for the three months ended September 30, 2023 and remained stable at $1.8 million for the nine months ended September 30, 2023 and 2022. Non-interest expense decreased $84,000 to $5.4 million for the three months ended September 30, 2023 compared to the respective period in 2022, due to decreases in salaries, occupancy, and advertising expenses offset by increases in data processing and other expenses. Non-interest expense decreased $601,000 to $15.9 million for the nine months ended September 30, 2023 compared to the respective period in 2022 and was a result of the FHLB prepayment penalties paid in first quarter 2022 and decreases in salaries expense. Financial Condition Total assets increased $64.1 million to $855.4 million at September 30, 2023 from $791.3 million at December 31, 2022, as we increased cash to further enhance liquidity. Total gross loans increased $14.8 million to $661.0 million at September 30, 2023 from $646.2 million at December 31, 2022. The increase was due to steady loan demand. Non-owner occupied office loans totaled $25.4 million at September 30, 2023; average LTV on these loans is 43.0% $9.3 million medical/dental tenants $16.1 million to other various tenants. Investment securities held-to-maturity unrealized losses were $970,000, net of tax. Investment securities available-for-sale unrealized losses were $7.8 million, net of tax. Cash and cash equivalents increased to $61.5 million at September 30, 2023 from $26.3 million at December 31, 2022, primarily due to an increase in deposits. Deposits increased by $51.9 million to $709.0 million at September 30, 2023 compared to $657.2 million at December 31, 2022, in part due to an increase in certificates of deposits of $96.3 million offset by a $44.5 million decrease in non-time deposits, as customers increased deposits in higher-yielding accounts during the current interest rate environment. The certificates of deposit increase included brokered deposits issued in 2023 totaling $72.4 million. Brokered deposits have an average life of 2.6 years and an average interest rate of 4.87%. Uninsured deposits were approximately $98.7 million at September 30, 2023 and represented 13.9% of total deposits. Borrowings increased by $10.0 million to $20.0 million at September 30, 2023 compared to $10.0 million at December 31, 2022 as we continue to evaluate borrowing needs related to enhancing bank liquidity. Asset Quality Non-performing loans increased to $7.6 million at September 30, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 120.6% at September 30, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses to total loans decreased to 1.39% at September 30, 2023 from 1.46% at December 31, 2022. Net loan charge-offs were $114,000 for the nine months ended September 30, 2023, as compared to net recoveries of $108,000 for the nine months ended September 30, 2022. 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; 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, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 660,456 $ 9,113 5.47 % $ 639,115 $ 7,734 4.80 % Investment securities held-to-maturity 34,158 525 6.10 % — — — Investment securities available-for-sale 49,242 461 3.71 % 44,690 289 2.56 % Interest-earning deposits and federal funds 68,892 889 5.12 % 39,384 189 1.91 % Other investments 2,053 36 6.96 % 1,163 12 4.19 % Total interest-earning assets 814,801 11,024 5.37 % 724,352 8,224 4.50 % Non-interest-earning assets 51,971 49,770 Total assets $ 866,772 $ 774,122 Interest-bearing liabilities: Interest-bearing checking accounts $ 90,682 $ 73 0.32 % $ 98,473 $ 47 0.19 % Money market accounts 142,346 987 2.75 % 159,478 100 0.25 % Savings accounts 81,756 569 2.76 % 83,484 187 0.89 % Certificates of deposit 232,276 2,286 3.90 % 89,871 291 1.28 % Total interest-bearing deposits 547,060 3,915 2.84 % 431,306 625 0.57 % FHLB advances and other borrowings 20,000 208 4.13 % 13,696 73 2.12 % Total interest-bearing liabilities 567,060 4,123 2.88 % 445,002 698 0.62 % Non-interest-bearing liabilities 180,868 211,986 Total liabilities 747,928 656,988 Total stockholders' equity 118,844 117,134 Total liabilities and stockholders' equity $ 866,772 $ 774,122 Net interest rate spread 2.49 % 3.88 % Net interest income $ 6,901 $ 7,526 Net interest margin 3.36 % 4.12 % For the Nine Months Ended September 30, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 659,416 $ 26,131 5.30 % $ 616,141 $ 22,013 4.78 % Investment securities held-to-maturity 33,733 1,549 6.14 % — — — Investment securities available-for-sale 49,616 1,299 3.50 % 46,585 827 2.37 % Interest-earning deposits and federal funds 69,340 2,527 4.87 % 43,125 286 0.89 % Other investments 2,285 109 6.38 % 1,117 30 3.57 % Total interest-earning assets 814,390 31,615 5.19 % 706,968 23,156 4.38 % Non-interest-earning assets 51,675 51,687 Total assets $ 866,065 $ 758,655 Interest-bearing liabilities: Interest-bearing checking accounts $ 92,614 $ 172 0.25 % $ 97,463 $ 134 0.18 % Money market accounts 139,726 2,472 2.37 % 151,654 282 0.25 % Savings accounts 88,528 1,680 2.54 % 84,042 356 0.57 % Certificates of deposit 207,734 5,691 3.66 % 91,493 840 1.23 % Total interest-bearing deposits 528,602 10,015 2.53 % 424,652 1,612 0.51 % FHLB advances and other borrowings 33,975 1,109 4.36 % 12,350 (874 ) -9.46 % Total interest-bearing liabilities 562,577 11,124 2.64 % 437,002 738 0.23 % Non-interest-bearing liabilities 184,871 203,164 Total liabilities 747,448 640,166 Total stockholders' equity 118,617 118,489 Total liabilities and stockholders' equity $ 866,065 $ 758,655 Net interest rate spread 2.55 % 4.15 % Net interest income $ 20,491 $ 22,418 Net interest margin 3.36 % 4.24 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2023 December 31, 2022 (unaudited) (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 5,441 $ 2,928 Interest-earning deposits in other depository institutions 56,062 23,396 Cash and cash equivalents 61,503 26,324 Investment securities available-for-sale 48,012 46,200 Investment securities held-to-maturity (estimated fair value of $32,925, net of allowance for credit losses of $42 at September 30, 2023 and estimated fair value of $26,251 at December 31, 2022) 34,183 26,527 Other investments 4,885 1,082 Loans 661,016 646,234 Allowance for credit loss on loans (9,211 ) (9,325 ) Net loans 651,805 636,909 Other real estate owned 2,901 2,901 Premises and equipment, net 3,872 4,257 Bank owned life insurance 15,991 15,724 Intangible assets 18,414 18,558 Other assets 13,865 12,801 Total assets $ 855,431 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 170,654 $ 190,297 Interest-bearing checking 92,177 91,167 Money market accounts 144,439 148,097 Savings accounts 79,446 101,622 Certificates of deposit 222,329 125,989 Total deposits 709,045 657,172 Federal Home Loan Bank advances and other borrowings 20,000 10,025 Accrued interest payable and other liabilities 7,910 6,983 Total liabilities 736,955 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,404,961 issued and outstanding at September 30, 2023 and 6,605,384 issued and outstanding at December 31, 2022) 64 66 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 60,978 63,130 Unearned ESOP shares (4,639 ) (4,795 ) Retained earnings 69,832 65,357 Accumulated other comprehensive loss (7,759 ) (6,655 ) Total stockholders' equity 118,476 117,103 Total liabilities and stockholders' equity $ 855,431 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,113 $ 7,734 $ 26,131 $ 22,013 Investment securities 1,022 301 2,957 857 Interest-earning deposits 889 189 2,527 286 Total interest income 11,024 8,224 31,615 23,156 Interest expense: Deposits 3,915 625 10,015 1,612 FHLB advances and other borrowings 208 73 1,109 (874 ) Total interest expense 4,123 698 11,124 738 Net interest income before provision for credit losses 6,901 7,526 20,491 22,418 Provision for credit losses — 187 7 654 Net interest income after provision for credit losses 6,901 7,339 20,484 21,764 Noninterest income: Service charges on deposit accounts 426 420 1,222 1,205 Other 204 173 638 631 Total noninterest income 630 593 1,860 1,836 Noninterest expenses: Salaries and employee benefits 3,007 3,187 9,047 9,219 Occupancy 637 675 1,919 1,798 Advertising 59 128 238 326 Data processing 525 486 1,504 1,476 FHLB prepayment penalties — — — 647 Other 1,178 1,014 3,176 3,019 Total noninterest expenses 5,406 5,490 15,884 16,485 Income before income taxes 2,125 2,442 6,460 7,115 Income tax expense 502 581 1,525 1,680 Net income $ 1,623 $ 1,861 $ 4,935 $ 5,435 Weighted average common shares outstanding Basic 6,417,754 6,652,811 6,500,562 6,683,052 Diluted 6,493,114 6,752,152 6,575,923 6,782,393 Basic earnings per share $ 0.25 $ 0.28 $ 0.76 $ 0.81 Diluted earnings per share $ 0.25 $ 0.27 $ 0.75 $ 0.80 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 Non-GAAP Reconciliation September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.50 $ 18.34 $ 18.02 $ 17.73 $ 17.37 Effect of goodwill and other intangibles (2.87 ) (2.87 ) (2.82 ) (2.81 ) (2.80 ) Tangible book value per common share $ 15.63 $ 15.47 $ 15.20 $ 14.92 $ 14.57 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 13.85 % 13.45 % 12.69 % 14.80 % 14.84 % Effect of goodwill and other intangibles (1.90 )% (1.86 )% (1.77 )% (2.05 )% (2.09 )% Tangible equity to tangible assets (1) 11.95 % 11.59 % 10.92 % 12.75 % 12.75 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. For the Nine Months Ended September 30, 2023 2022 Operating net income reconciliation Net income (GAAP) $ 4,935 $ 5,435 FHLB mark from called borrowings — (988 ) FHLB prepayment penalties — 647 Income tax expense — 87 Operating net income $ 4,935 $ 5,181 Weighted average diluted shares 6,575,923 6,782,393 Adjusted diluted earnings per share $ 0.75 $ 0.76 Net interest income $ 20,491 $ 22,418 FHLB mark from called borrowings — (988 ) Adjusted Net interest income $ 20,491 $ 21,430 Adjusted Net interest income reconciliation Net interest margin (GAAP) 3.36 % 4.24 % Effect of FHLB mark from called borrowings 0.00 (0.29 ) Adjusted Net interest margin 3.36 % 3.95 % View source version on businesswire.com: https://www.businesswire.com/news/home/20231026824553/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 2023 Financial Results By: Affinity Bancshares, Inc. via Business Wire October 26, 2023 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 $1.6 million for the three months ended September 30, 2023, as compared to $1.9 million for the three months ended September 30, 2022. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231026824553/en/ At or for the three months ended, Performance Ratios: September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Net income (in thousands) $ 1,623 $ 1,590 $ 1,722 $ 1,699 $ 1,861 Diluted earnings per share 0.25 0.24 0.26 0.26 0.27 Common book value per share 18.50 18.34 18.02 17.73 17.37 Tangible book value per share (1) 15.63 15.47 15.20 14.92 14.57 Total assets (in thousands) 855,431 876,905 932,302 791,283 776,390 Return on average assets 0.74 % 0.71 % 0.84 % 0.84 % 0.95 % Return on average equity 5.42 % 5.37 % 5.90 % 5.78 % 6.30 % Equity to assets 13.85 % 13.45 % 12.69 % 14.80 % 14.84 % Tangible equity to tangible assets (1) 11.95 % 11.59 % 10.92 % 12.75 % 12.75 % Net interest margin 3.36 % 3.17 % 3.58 % 3.85 % 4.12 % Efficiency ratio 71.78 % 71.68 % 69.73 % 71.38 % 67.62 % (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 $1.6 million for the three months ended September 30, 2023, as compared to $1.9 million for the three months ended September 30, 2022, as a result of an increase in deposit interest expense offset by an increase in interest income. Net income was $4.9 million for nine months ended September 30, 2023 as compared to $5.4 million for the nine months ended September 30, 2022, as a result of an increase in deposit interest expense and recognition of the remaining fair value mark on the acquired Federal Home Loan Bank advances that was recognized upon payoff during the first quarter 2022, partially offset by an increase in interest income. Results of Operations Net interest income was $6.9 million for the three months ended September 30, 2023 compared to $7.5 million for the three months ended September 30, 2022. The decrease was due to an increase in deposit costs partially offset by an increase in interest income. Net interest income was $20.5 million for the nine months ended September 30, 2023 compared to $22.4 million for the nine months ended September 30, 2022. The decrease was due to an increase in deposit costs and recognition of the remaining fair value mark on acquired FHLB advances that was recognized upon payoff during the first quarter of 2022, partially offset by an increase in interest income. Net interest margin for the three months ended September 30, 2023 decreased to 3.36% from 4.12% for the three months ended September 30, 2022. Net interest margin for the nine months ended September 30, 2023 decreased to 3.36% from 4.24% for the nine months ended September 30, 2022. The decreases in the margin relate to increases in our costs of funds exceeding our increases in our yield on interest-earning assets. The decrease in the margin for the nine months ended September 30, 2023 was also impacted by the fair value mark on the FHLB advances from acquisition that was recognized upon payoff during the first quarter of 2022. Adjusted net interest margin for the nine months ended September 30, 2023 (see Non-GAAP reconciliation) decreased 59 basis points from 3.95% at nine months ended September 30, 2022 to 3.36%. Noninterest income increased $37,000 to $630,000 for the three months ended September 30, 2023 and remained stable at $1.8 million for the nine months ended September 30, 2023 and 2022. Non-interest expense decreased $84,000 to $5.4 million for the three months ended September 30, 2023 compared to the respective period in 2022, due to decreases in salaries, occupancy, and advertising expenses offset by increases in data processing and other expenses. Non-interest expense decreased $601,000 to $15.9 million for the nine months ended September 30, 2023 compared to the respective period in 2022 and was a result of the FHLB prepayment penalties paid in first quarter 2022 and decreases in salaries expense. Financial Condition Total assets increased $64.1 million to $855.4 million at September 30, 2023 from $791.3 million at December 31, 2022, as we increased cash to further enhance liquidity. Total gross loans increased $14.8 million to $661.0 million at September 30, 2023 from $646.2 million at December 31, 2022. The increase was due to steady loan demand. Non-owner occupied office loans totaled $25.4 million at September 30, 2023; average LTV on these loans is 43.0% $9.3 million medical/dental tenants $16.1 million to other various tenants. Investment securities held-to-maturity unrealized losses were $970,000, net of tax. Investment securities available-for-sale unrealized losses were $7.8 million, net of tax. Cash and cash equivalents increased to $61.5 million at September 30, 2023 from $26.3 million at December 31, 2022, primarily due to an increase in deposits. Deposits increased by $51.9 million to $709.0 million at September 30, 2023 compared to $657.2 million at December 31, 2022, in part due to an increase in certificates of deposits of $96.3 million offset by a $44.5 million decrease in non-time deposits, as customers increased deposits in higher-yielding accounts during the current interest rate environment. The certificates of deposit increase included brokered deposits issued in 2023 totaling $72.4 million. Brokered deposits have an average life of 2.6 years and an average interest rate of 4.87%. Uninsured deposits were approximately $98.7 million at September 30, 2023 and represented 13.9% of total deposits. Borrowings increased by $10.0 million to $20.0 million at September 30, 2023 compared to $10.0 million at December 31, 2022 as we continue to evaluate borrowing needs related to enhancing bank liquidity. Asset Quality Non-performing loans increased to $7.6 million at September 30, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 120.6% at September 30, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses to total loans decreased to 1.39% at September 30, 2023 from 1.46% at December 31, 2022. Net loan charge-offs were $114,000 for the nine months ended September 30, 2023, as compared to net recoveries of $108,000 for the nine months ended September 30, 2022. 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; 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, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 660,456 $ 9,113 5.47 % $ 639,115 $ 7,734 4.80 % Investment securities held-to-maturity 34,158 525 6.10 % — — — Investment securities available-for-sale 49,242 461 3.71 % 44,690 289 2.56 % Interest-earning deposits and federal funds 68,892 889 5.12 % 39,384 189 1.91 % Other investments 2,053 36 6.96 % 1,163 12 4.19 % Total interest-earning assets 814,801 11,024 5.37 % 724,352 8,224 4.50 % Non-interest-earning assets 51,971 49,770 Total assets $ 866,772 $ 774,122 Interest-bearing liabilities: Interest-bearing checking accounts $ 90,682 $ 73 0.32 % $ 98,473 $ 47 0.19 % Money market accounts 142,346 987 2.75 % 159,478 100 0.25 % Savings accounts 81,756 569 2.76 % 83,484 187 0.89 % Certificates of deposit 232,276 2,286 3.90 % 89,871 291 1.28 % Total interest-bearing deposits 547,060 3,915 2.84 % 431,306 625 0.57 % FHLB advances and other borrowings 20,000 208 4.13 % 13,696 73 2.12 % Total interest-bearing liabilities 567,060 4,123 2.88 % 445,002 698 0.62 % Non-interest-bearing liabilities 180,868 211,986 Total liabilities 747,928 656,988 Total stockholders' equity 118,844 117,134 Total liabilities and stockholders' equity $ 866,772 $ 774,122 Net interest rate spread 2.49 % 3.88 % Net interest income $ 6,901 $ 7,526 Net interest margin 3.36 % 4.12 % For the Nine Months Ended September 30, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 659,416 $ 26,131 5.30 % $ 616,141 $ 22,013 4.78 % Investment securities held-to-maturity 33,733 1,549 6.14 % — — — Investment securities available-for-sale 49,616 1,299 3.50 % 46,585 827 2.37 % Interest-earning deposits and federal funds 69,340 2,527 4.87 % 43,125 286 0.89 % Other investments 2,285 109 6.38 % 1,117 30 3.57 % Total interest-earning assets 814,390 31,615 5.19 % 706,968 23,156 4.38 % Non-interest-earning assets 51,675 51,687 Total assets $ 866,065 $ 758,655 Interest-bearing liabilities: Interest-bearing checking accounts $ 92,614 $ 172 0.25 % $ 97,463 $ 134 0.18 % Money market accounts 139,726 2,472 2.37 % 151,654 282 0.25 % Savings accounts 88,528 1,680 2.54 % 84,042 356 0.57 % Certificates of deposit 207,734 5,691 3.66 % 91,493 840 1.23 % Total interest-bearing deposits 528,602 10,015 2.53 % 424,652 1,612 0.51 % FHLB advances and other borrowings 33,975 1,109 4.36 % 12,350 (874 ) -9.46 % Total interest-bearing liabilities 562,577 11,124 2.64 % 437,002 738 0.23 % Non-interest-bearing liabilities 184,871 203,164 Total liabilities 747,448 640,166 Total stockholders' equity 118,617 118,489 Total liabilities and stockholders' equity $ 866,065 $ 758,655 Net interest rate spread 2.55 % 4.15 % Net interest income $ 20,491 $ 22,418 Net interest margin 3.36 % 4.24 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2023 December 31, 2022 (unaudited) (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 5,441 $ 2,928 Interest-earning deposits in other depository institutions 56,062 23,396 Cash and cash equivalents 61,503 26,324 Investment securities available-for-sale 48,012 46,200 Investment securities held-to-maturity (estimated fair value of $32,925, net of allowance for credit losses of $42 at September 30, 2023 and estimated fair value of $26,251 at December 31, 2022) 34,183 26,527 Other investments 4,885 1,082 Loans 661,016 646,234 Allowance for credit loss on loans (9,211 ) (9,325 ) Net loans 651,805 636,909 Other real estate owned 2,901 2,901 Premises and equipment, net 3,872 4,257 Bank owned life insurance 15,991 15,724 Intangible assets 18,414 18,558 Other assets 13,865 12,801 Total assets $ 855,431 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 170,654 $ 190,297 Interest-bearing checking 92,177 91,167 Money market accounts 144,439 148,097 Savings accounts 79,446 101,622 Certificates of deposit 222,329 125,989 Total deposits 709,045 657,172 Federal Home Loan Bank advances and other borrowings 20,000 10,025 Accrued interest payable and other liabilities 7,910 6,983 Total liabilities 736,955 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,404,961 issued and outstanding at September 30, 2023 and 6,605,384 issued and outstanding at December 31, 2022) 64 66 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 60,978 63,130 Unearned ESOP shares (4,639 ) (4,795 ) Retained earnings 69,832 65,357 Accumulated other comprehensive loss (7,759 ) (6,655 ) Total stockholders' equity 118,476 117,103 Total liabilities and stockholders' equity $ 855,431 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,113 $ 7,734 $ 26,131 $ 22,013 Investment securities 1,022 301 2,957 857 Interest-earning deposits 889 189 2,527 286 Total interest income 11,024 8,224 31,615 23,156 Interest expense: Deposits 3,915 625 10,015 1,612 FHLB advances and other borrowings 208 73 1,109 (874 ) Total interest expense 4,123 698 11,124 738 Net interest income before provision for credit losses 6,901 7,526 20,491 22,418 Provision for credit losses — 187 7 654 Net interest income after provision for credit losses 6,901 7,339 20,484 21,764 Noninterest income: Service charges on deposit accounts 426 420 1,222 1,205 Other 204 173 638 631 Total noninterest income 630 593 1,860 1,836 Noninterest expenses: Salaries and employee benefits 3,007 3,187 9,047 9,219 Occupancy 637 675 1,919 1,798 Advertising 59 128 238 326 Data processing 525 486 1,504 1,476 FHLB prepayment penalties — — — 647 Other 1,178 1,014 3,176 3,019 Total noninterest expenses 5,406 5,490 15,884 16,485 Income before income taxes 2,125 2,442 6,460 7,115 Income tax expense 502 581 1,525 1,680 Net income $ 1,623 $ 1,861 $ 4,935 $ 5,435 Weighted average common shares outstanding Basic 6,417,754 6,652,811 6,500,562 6,683,052 Diluted 6,493,114 6,752,152 6,575,923 6,782,393 Basic earnings per share $ 0.25 $ 0.28 $ 0.76 $ 0.81 Diluted earnings per share $ 0.25 $ 0.27 $ 0.75 $ 0.80 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 Non-GAAP Reconciliation September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.50 $ 18.34 $ 18.02 $ 17.73 $ 17.37 Effect of goodwill and other intangibles (2.87 ) (2.87 ) (2.82 ) (2.81 ) (2.80 ) Tangible book value per common share $ 15.63 $ 15.47 $ 15.20 $ 14.92 $ 14.57 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 13.85 % 13.45 % 12.69 % 14.80 % 14.84 % Effect of goodwill and other intangibles (1.90 )% (1.86 )% (1.77 )% (2.05 )% (2.09 )% Tangible equity to tangible assets (1) 11.95 % 11.59 % 10.92 % 12.75 % 12.75 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. For the Nine Months Ended September 30, 2023 2022 Operating net income reconciliation Net income (GAAP) $ 4,935 $ 5,435 FHLB mark from called borrowings — (988 ) FHLB prepayment penalties — 647 Income tax expense — 87 Operating net income $ 4,935 $ 5,181 Weighted average diluted shares 6,575,923 6,782,393 Adjusted diluted earnings per share $ 0.75 $ 0.76 Net interest income $ 20,491 $ 22,418 FHLB mark from called borrowings — (988 ) Adjusted Net interest income $ 20,491 $ 21,430 Adjusted Net interest income reconciliation Net interest margin (GAAP) 3.36 % 4.24 % Effect of FHLB mark from called borrowings 0.00 (0.29 ) Adjusted Net interest margin 3.36 % 3.95 % View source version on businesswire.com: https://www.businesswire.com/news/home/20231026824553/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 $1.6 million for the three months ended September 30, 2023, as compared to $1.9 million for the three months ended September 30, 2022. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231026824553/en/ At or for the three months ended, Performance Ratios: September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Net income (in thousands) $ 1,623 $ 1,590 $ 1,722 $ 1,699 $ 1,861 Diluted earnings per share 0.25 0.24 0.26 0.26 0.27 Common book value per share 18.50 18.34 18.02 17.73 17.37 Tangible book value per share (1) 15.63 15.47 15.20 14.92 14.57 Total assets (in thousands) 855,431 876,905 932,302 791,283 776,390 Return on average assets 0.74 % 0.71 % 0.84 % 0.84 % 0.95 % Return on average equity 5.42 % 5.37 % 5.90 % 5.78 % 6.30 % Equity to assets 13.85 % 13.45 % 12.69 % 14.80 % 14.84 % Tangible equity to tangible assets (1) 11.95 % 11.59 % 10.92 % 12.75 % 12.75 % Net interest margin 3.36 % 3.17 % 3.58 % 3.85 % 4.12 % Efficiency ratio 71.78 % 71.68 % 69.73 % 71.38 % 67.62 % (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 $1.6 million for the three months ended September 30, 2023, as compared to $1.9 million for the three months ended September 30, 2022, as a result of an increase in deposit interest expense offset by an increase in interest income. Net income was $4.9 million for nine months ended September 30, 2023 as compared to $5.4 million for the nine months ended September 30, 2022, as a result of an increase in deposit interest expense and recognition of the remaining fair value mark on the acquired Federal Home Loan Bank advances that was recognized upon payoff during the first quarter 2022, partially offset by an increase in interest income. Results of Operations Net interest income was $6.9 million for the three months ended September 30, 2023 compared to $7.5 million for the three months ended September 30, 2022. The decrease was due to an increase in deposit costs partially offset by an increase in interest income. Net interest income was $20.5 million for the nine months ended September 30, 2023 compared to $22.4 million for the nine months ended September 30, 2022. The decrease was due to an increase in deposit costs and recognition of the remaining fair value mark on acquired FHLB advances that was recognized upon payoff during the first quarter of 2022, partially offset by an increase in interest income. Net interest margin for the three months ended September 30, 2023 decreased to 3.36% from 4.12% for the three months ended September 30, 2022. Net interest margin for the nine months ended September 30, 2023 decreased to 3.36% from 4.24% for the nine months ended September 30, 2022. The decreases in the margin relate to increases in our costs of funds exceeding our increases in our yield on interest-earning assets. The decrease in the margin for the nine months ended September 30, 2023 was also impacted by the fair value mark on the FHLB advances from acquisition that was recognized upon payoff during the first quarter of 2022. Adjusted net interest margin for the nine months ended September 30, 2023 (see Non-GAAP reconciliation) decreased 59 basis points from 3.95% at nine months ended September 30, 2022 to 3.36%. Noninterest income increased $37,000 to $630,000 for the three months ended September 30, 2023 and remained stable at $1.8 million for the nine months ended September 30, 2023 and 2022. Non-interest expense decreased $84,000 to $5.4 million for the three months ended September 30, 2023 compared to the respective period in 2022, due to decreases in salaries, occupancy, and advertising expenses offset by increases in data processing and other expenses. Non-interest expense decreased $601,000 to $15.9 million for the nine months ended September 30, 2023 compared to the respective period in 2022 and was a result of the FHLB prepayment penalties paid in first quarter 2022 and decreases in salaries expense. Financial Condition Total assets increased $64.1 million to $855.4 million at September 30, 2023 from $791.3 million at December 31, 2022, as we increased cash to further enhance liquidity. Total gross loans increased $14.8 million to $661.0 million at September 30, 2023 from $646.2 million at December 31, 2022. The increase was due to steady loan demand. Non-owner occupied office loans totaled $25.4 million at September 30, 2023; average LTV on these loans is 43.0% $9.3 million medical/dental tenants $16.1 million to other various tenants. Investment securities held-to-maturity unrealized losses were $970,000, net of tax. Investment securities available-for-sale unrealized losses were $7.8 million, net of tax. Cash and cash equivalents increased to $61.5 million at September 30, 2023 from $26.3 million at December 31, 2022, primarily due to an increase in deposits. Deposits increased by $51.9 million to $709.0 million at September 30, 2023 compared to $657.2 million at December 31, 2022, in part due to an increase in certificates of deposits of $96.3 million offset by a $44.5 million decrease in non-time deposits, as customers increased deposits in higher-yielding accounts during the current interest rate environment. The certificates of deposit increase included brokered deposits issued in 2023 totaling $72.4 million. Brokered deposits have an average life of 2.6 years and an average interest rate of 4.87%. Uninsured deposits were approximately $98.7 million at September 30, 2023 and represented 13.9% of total deposits. Borrowings increased by $10.0 million to $20.0 million at September 30, 2023 compared to $10.0 million at December 31, 2022 as we continue to evaluate borrowing needs related to enhancing bank liquidity. Asset Quality Non-performing loans increased to $7.6 million at September 30, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 120.6% at September 30, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses to total loans decreased to 1.39% at September 30, 2023 from 1.46% at December 31, 2022. Net loan charge-offs were $114,000 for the nine months ended September 30, 2023, as compared to net recoveries of $108,000 for the nine months ended September 30, 2022. 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; 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, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 660,456 $ 9,113 5.47 % $ 639,115 $ 7,734 4.80 % Investment securities held-to-maturity 34,158 525 6.10 % — — — Investment securities available-for-sale 49,242 461 3.71 % 44,690 289 2.56 % Interest-earning deposits and federal funds 68,892 889 5.12 % 39,384 189 1.91 % Other investments 2,053 36 6.96 % 1,163 12 4.19 % Total interest-earning assets 814,801 11,024 5.37 % 724,352 8,224 4.50 % Non-interest-earning assets 51,971 49,770 Total assets $ 866,772 $ 774,122 Interest-bearing liabilities: Interest-bearing checking accounts $ 90,682 $ 73 0.32 % $ 98,473 $ 47 0.19 % Money market accounts 142,346 987 2.75 % 159,478 100 0.25 % Savings accounts 81,756 569 2.76 % 83,484 187 0.89 % Certificates of deposit 232,276 2,286 3.90 % 89,871 291 1.28 % Total interest-bearing deposits 547,060 3,915 2.84 % 431,306 625 0.57 % FHLB advances and other borrowings 20,000 208 4.13 % 13,696 73 2.12 % Total interest-bearing liabilities 567,060 4,123 2.88 % 445,002 698 0.62 % Non-interest-bearing liabilities 180,868 211,986 Total liabilities 747,928 656,988 Total stockholders' equity 118,844 117,134 Total liabilities and stockholders' equity $ 866,772 $ 774,122 Net interest rate spread 2.49 % 3.88 % Net interest income $ 6,901 $ 7,526 Net interest margin 3.36 % 4.12 % For the Nine Months Ended September 30, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 659,416 $ 26,131 5.30 % $ 616,141 $ 22,013 4.78 % Investment securities held-to-maturity 33,733 1,549 6.14 % — — — Investment securities available-for-sale 49,616 1,299 3.50 % 46,585 827 2.37 % Interest-earning deposits and federal funds 69,340 2,527 4.87 % 43,125 286 0.89 % Other investments 2,285 109 6.38 % 1,117 30 3.57 % Total interest-earning assets 814,390 31,615 5.19 % 706,968 23,156 4.38 % Non-interest-earning assets 51,675 51,687 Total assets $ 866,065 $ 758,655 Interest-bearing liabilities: Interest-bearing checking accounts $ 92,614 $ 172 0.25 % $ 97,463 $ 134 0.18 % Money market accounts 139,726 2,472 2.37 % 151,654 282 0.25 % Savings accounts 88,528 1,680 2.54 % 84,042 356 0.57 % Certificates of deposit 207,734 5,691 3.66 % 91,493 840 1.23 % Total interest-bearing deposits 528,602 10,015 2.53 % 424,652 1,612 0.51 % FHLB advances and other borrowings 33,975 1,109 4.36 % 12,350 (874 ) -9.46 % Total interest-bearing liabilities 562,577 11,124 2.64 % 437,002 738 0.23 % Non-interest-bearing liabilities 184,871 203,164 Total liabilities 747,448 640,166 Total stockholders' equity 118,617 118,489 Total liabilities and stockholders' equity $ 866,065 $ 758,655 Net interest rate spread 2.55 % 4.15 % Net interest income $ 20,491 $ 22,418 Net interest margin 3.36 % 4.24 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2023 December 31, 2022 (unaudited) (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 5,441 $ 2,928 Interest-earning deposits in other depository institutions 56,062 23,396 Cash and cash equivalents 61,503 26,324 Investment securities available-for-sale 48,012 46,200 Investment securities held-to-maturity (estimated fair value of $32,925, net of allowance for credit losses of $42 at September 30, 2023 and estimated fair value of $26,251 at December 31, 2022) 34,183 26,527 Other investments 4,885 1,082 Loans 661,016 646,234 Allowance for credit loss on loans (9,211 ) (9,325 ) Net loans 651,805 636,909 Other real estate owned 2,901 2,901 Premises and equipment, net 3,872 4,257 Bank owned life insurance 15,991 15,724 Intangible assets 18,414 18,558 Other assets 13,865 12,801 Total assets $ 855,431 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 170,654 $ 190,297 Interest-bearing checking 92,177 91,167 Money market accounts 144,439 148,097 Savings accounts 79,446 101,622 Certificates of deposit 222,329 125,989 Total deposits 709,045 657,172 Federal Home Loan Bank advances and other borrowings 20,000 10,025 Accrued interest payable and other liabilities 7,910 6,983 Total liabilities 736,955 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,404,961 issued and outstanding at September 30, 2023 and 6,605,384 issued and outstanding at December 31, 2022) 64 66 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 60,978 63,130 Unearned ESOP shares (4,639 ) (4,795 ) Retained earnings 69,832 65,357 Accumulated other comprehensive loss (7,759 ) (6,655 ) Total stockholders' equity 118,476 117,103 Total liabilities and stockholders' equity $ 855,431 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,113 $ 7,734 $ 26,131 $ 22,013 Investment securities 1,022 301 2,957 857 Interest-earning deposits 889 189 2,527 286 Total interest income 11,024 8,224 31,615 23,156 Interest expense: Deposits 3,915 625 10,015 1,612 FHLB advances and other borrowings 208 73 1,109 (874 ) Total interest expense 4,123 698 11,124 738 Net interest income before provision for credit losses 6,901 7,526 20,491 22,418 Provision for credit losses — 187 7 654 Net interest income after provision for credit losses 6,901 7,339 20,484 21,764 Noninterest income: Service charges on deposit accounts 426 420 1,222 1,205 Other 204 173 638 631 Total noninterest income 630 593 1,860 1,836 Noninterest expenses: Salaries and employee benefits 3,007 3,187 9,047 9,219 Occupancy 637 675 1,919 1,798 Advertising 59 128 238 326 Data processing 525 486 1,504 1,476 FHLB prepayment penalties — — — 647 Other 1,178 1,014 3,176 3,019 Total noninterest expenses 5,406 5,490 15,884 16,485 Income before income taxes 2,125 2,442 6,460 7,115 Income tax expense 502 581 1,525 1,680 Net income $ 1,623 $ 1,861 $ 4,935 $ 5,435 Weighted average common shares outstanding Basic 6,417,754 6,652,811 6,500,562 6,683,052 Diluted 6,493,114 6,752,152 6,575,923 6,782,393 Basic earnings per share $ 0.25 $ 0.28 $ 0.76 $ 0.81 Diluted earnings per share $ 0.25 $ 0.27 $ 0.75 $ 0.80 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 Non-GAAP Reconciliation September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.50 $ 18.34 $ 18.02 $ 17.73 $ 17.37 Effect of goodwill and other intangibles (2.87 ) (2.87 ) (2.82 ) (2.81 ) (2.80 ) Tangible book value per common share $ 15.63 $ 15.47 $ 15.20 $ 14.92 $ 14.57 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 13.85 % 13.45 % 12.69 % 14.80 % 14.84 % Effect of goodwill and other intangibles (1.90 )% (1.86 )% (1.77 )% (2.05 )% (2.09 )% Tangible equity to tangible assets (1) 11.95 % 11.59 % 10.92 % 12.75 % 12.75 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. For the Nine Months Ended September 30, 2023 2022 Operating net income reconciliation Net income (GAAP) $ 4,935 $ 5,435 FHLB mark from called borrowings — (988 ) FHLB prepayment penalties — 647 Income tax expense — 87 Operating net income $ 4,935 $ 5,181 Weighted average diluted shares 6,575,923 6,782,393 Adjusted diluted earnings per share $ 0.75 $ 0.76 Net interest income $ 20,491 $ 22,418 FHLB mark from called borrowings — (988 ) Adjusted Net interest income $ 20,491 $ 21,430 Adjusted Net interest income reconciliation Net interest margin (GAAP) 3.36 % 4.24 % Effect of FHLB mark from called borrowings 0.00 (0.29 ) Adjusted Net interest margin 3.36 % 3.95 % View source version on businesswire.com: https://www.businesswire.com/news/home/20231026824553/en/