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 Fourth Quarter and Full Year 2023 Financial Results By: Affinity Bancshares, Inc. via Business Wire February 01, 2024 at 16:30 PM EST Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), February 1, 2024, the holding company for Affinity Bank (the “Bank”), today announced net income of $1.5 million for the three months ended December 31, 2023, as compared to $1.7 million for the three months ended December 31, 2022. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240201215970/en/ At or for the three months ended, Performance Ratios: December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income (in thousands) $ 1,514 $ 1,623 $ 1,590 $ 1,722 $ 1,699 Diluted earnings per share 0.23 0.25 0.24 0.26 0.26 Common book value per share 18.94 18.50 18.34 18.02 17.73 Tangible book value per share (1) 16.08 15.63 15.47 15.20 14.92 Total assets (in thousands) 843,258 855,431 876,905 932,302 791,283 Return on average assets 0.70 % 0.74 % 0.71 % 0.84 % 0.84 % Return on average equity 5.03 % 5.42 % 5.37 % 5.90 % 5.78 % Equity to assets 14.41 % 13.85 % 13.45 % 12.69 % 14.80 % Tangible equity to tangible assets (1) 12.50 % 11.95 % 11.59 % 10.92 % 12.75 % Net interest margin 3.32 % 3.36 % 3.17 % 3.58 % 3.85 % Efficiency ratio 74.30 % 71.78 % 71.68 % 69.73 % 71.38 % (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 $1.5 million for the three months ended December 31, 2023, as compared to $1.7 million for the three months ended December 31, 2022, as a result of an increase in deposit interest expense offset partially by an increase in interest income. Net income was $6.4 million for the year ended December 31, 2023 as compared to $7.1 million for the year ended December 31, 2022, as a result of an increase in deposit interest expense and recognition of the remaining fair value mark on acquired Federal Home Loan Bank ("FHLB") 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 $6.7 million for the three months ended December 31, 2023 compared to $7.3 million for the three months ended December 31, 2022. The decrease was due to an increase in deposit costs partially offset by an increase in interest income. Net interest income was $27.2 million for the year ended December 31, 2023 compared to $29.8 million for the year ended December 31, 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 December 31, 2023 decreased to 3.32% from 3.85% for the three months ended December 31, 2022. Net interest margin for the year ended December 31, 2023 decreased to 3.35% from 4.14% for the year ended December 31, 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 year ended December 31, 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 year ended December 31, 2023 (see Non-GAAP reconciliation) decreased 65 basis points from 4.00% for the year ended December 31, 2022 to 3.35%. Noninterest income increased $40,000 to $606,000 for the three months ended December 31, 2023 and had an increase of $64,000 to $2.5 million for the year ended December 31, 2023 as compared to 2022. Non-interest expense decreased $209,000 to $5.4 million for the three months ended December 31, 2023 compared to the same 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 $808,000 to $21.3 million for the year ended December 31, 2023 compared to 2022 and was a result of the FHLB prepayment penalties paid in the first quarter of 2022 and decreases in advertising expense and other expenses. Financial Condition Total assets increased $52.0 million to $843.3 million at December 31, 2023 from $791.3 million at December 31, 2022, as we increased cash to further enhance liquidity. Total gross loans increased $13.6 million to $659.9 million at December 31, 2023 from $646.2 million at December 31, 2022. Non-owner occupied office loans totaled $26.7 million at December 31, 2023; average loan-to-value ratio on these loans is 41.0%, including $11.0 million medical/dental tenants and $15.7 million to other various tenants. Investment securities held-to-maturity unrealized losses were $277,000, net of tax. Investment securities available-for-sale unrealized losses were $6.3 million, net of tax. Cash and cash equivalents increased $23.7 million to $50.0 million at December 31, 2023 from $26.3 million at December 31, 2022, primarily due to an increase in deposits and borrowings. Deposits increased by $17.2 million to $674.4 million at December 31, 2023 compared to $657.2 million at December 31, 2022, in part due to an increase in certificates of deposits of $95.0 million offset by a $77.7 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 2.4 years and an average interest rate of 4.87%. Uninsured deposits were approximately $95.5 million at December 31, 2023 and represented 14.0% of total deposits, excluding deposits collateralized by public funds and internal accounts. Borrowings increased by $30.0 million to $40.0 million at December 31, 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 $7.4 million at December 31, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 120.1% at December 31, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses to total loans decreased to 1.35% at December 31, 2023 from 1.46% at December 31, 2022. Net loan charge-offs were $404,000 for the year ended December 31, 2023, as compared to net recoveries of $62,000 for the year ended December 31, 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; the effects of any 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 December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 661,913 $ 9,290 5.57 % $ 650,922 $ 8,032 4.90 % Investment securities held-to-maturity 34,194 528 6.13 % 8,809 130 5.85 % Investment securities available-for-sale 47,268 473 3.97 % 42,653 323 3.00 % Interest-earning deposits and federal funds 53,442 709 5.26 % 53,238 485 3.61 % Other investments 5,177 83 6.36 % 758 8 4.19 % Total interest-earning assets 801,994 11,083 5.48 % 756,380 8,978 4.71 % Non-interest-earning assets 52,938 50,538 Total assets $ 854,932 $ 806,918 Interest-bearing liabilities: Interest-bearing checking accounts $ 90,298 $ 99 0.43 % $ 95,200 $ 42 0.18 % Money market accounts 143,312 1,069 2.96 % 161,901 470 1.15 % Savings accounts 76,732 558 2.89 % 103,772 499 1.91 % Certificates of deposit 221,817 2,352 4.21 % 117,102 610 2.07 % Total interest-bearing deposits 532,159 4,078 3.04 % 477,975 1,621 1.35 % FHLB advances and other borrowings 29,348 300 4.06 % 2,717 20 2.92 % Total interest-bearing liabilities 561,507 4,378 3.09 % 480,692 1,641 1.35 % Non-interest-bearing liabilities 174,077 209,683 Total liabilities 735,584 690,375 Total stockholders' equity 119,348 116,543 Total liabilities and stockholders' equity $ 854,932 $ 806,918 Net interest rate spread 2.39 % 3.36 % Net interest income $ 6,705 $ 7,337 Net interest margin 3.32 % 3.85 % For the Year Ended December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 660,045 $ 35,422 5.37 % $ 624,908 $ 30,045 4.81 % Investment securities held-to-maturity 33,850 2,078 6.14 % 2,220 130 5.86 % Investment securities available-for-sale 49,024 1,772 3.61 % 45,594 1,150 2.52 % Interest-earning deposits and federal funds 65,333 3,236 4.95 % 45,674 771 1.69 % Other investments 3,014 192 6.37 % 1,027 38 3.70 % Total interest-earning assets 811,266 42,700 5.26 % 719,423 32,134 4.47 % Non-interest-earning assets 51,987 51,397 Total assets $ 863,253 $ 770,820 Interest-bearing liabilities: Interest-bearing checking accounts $ 92,030 $ 271 0.29 % $ 96,892 $ 176 0.18 % Money market accounts 140,630 3,542 2.52 % 154,237 752 0.49 % Savings accounts 85,555 2,238 2.62 % 89,015 856 0.96 % Certificates of deposit 211,285 8,042 3.81 % 97,948 1,449 1.48 % Total interest-bearing deposits 529,500 14,093 2.66 % 438,092 3,233 0.74 % FHLB advances and other borrowings 32,808 1,409 4.29 % 9,887 (854 ) (8.64 )% Total interest-bearing liabilities 562,308 15,502 2.76 % 447,979 2,379 0.53 % Non-interest-bearing liabilities 182,144 204,842 Total liabilities 744,452 652,821 Total stockholders' equity 118,801 117,999 Total liabilities and stockholders' equity $ 863,253 $ 770,820 Net interest rate spread 2.50 % 3.94 % Net interest income $ 27,198 $ 29,755 Net interest margin 3.35 % 4.14 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets December 31, 2023 December 31, 2022 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 6,030 $ 2,928 Interest-earning deposits in other depository institutions 43,995 23,396 Cash and cash equivalents 50,025 26,324 Investment securities available-for-sale 48,561 46,200 Investment securities held-to-maturity (estimated fair value of $33,835, net of allowance for credit losses of $45 at December 31, 2023 and estimated fair value of $26,251 at December 31, 2022) 34,206 26,527 Other investments 5,434 1,082 Loans 659,876 646,234 Allowance for credit loss on loans (8,921 ) (9,325 ) Net loans 650,955 636,909 Other real estate owned 2,850 2,901 Premises and equipment, net 3,797 4,257 Bank owned life insurance 16,086 15,724 Intangible assets 18,366 18,558 Other assets 12,978 12,801 Total assets $ 843,258 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 154,689 $ 190,297 Interest-bearing checking 85,362 91,167 Money market accounts 138,673 148,097 Savings accounts 74,768 101,622 Certificates of deposit 220,951 125,989 Total deposits 674,443 657,172 Federal Home Loan Bank advances and other borrowings 40,000 10,025 Accrued interest payable and other liabilities 7,299 6,983 Total liabilities 721,742 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,416,628 issued and outstanding at December 31, 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 61,026 63,130 Unearned ESOP shares (4,587 ) (4,795 ) Retained earnings 71,345 65,357 Accumulated other comprehensive loss (6,332 ) (6,655 ) Total stockholders' equity 121,516 117,103 Total liabilities and stockholders' equity $ 843,258 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,290 $ 8,032 $ 35,422 $ 30,045 Investment securities 1,084 461 4,042 1,318 Interest-earning deposits 709 485 3,236 771 Total interest income 11,083 8,978 42,700 32,134 Interest expense: Deposits 4,078 1,621 14,093 3,233 FHLB advances and other borrowings 300 20 1,409 (854 ) Total interest expense 4,378 1,641 15,502 2,379 Net interest income before provision for credit losses 6,705 7,337 27,198 29,755 Provision for credit losses (49 ) 50 (42 ) 704 Net interest income after provision for credit losses 6,754 7,287 27,240 29,051 Noninterest income: Service charges on deposit accounts 398 406 1,620 1,611 Other 208 160 846 791 Total noninterest income 606 566 2,466 2,402 Noninterest expenses: Salaries and employee benefits 3,205 3,002 12,252 12,221 Occupancy 584 725 2,503 2,523 Data processing 520 471 2,025 1,947 FHLB prepayment penalties — — — 647 Other 1,123 1,443 4,538 4,788 Total noninterest expenses 5,432 5,641 21,318 22,126 Income before income taxes 1,928 2,212 8,388 9,327 Income tax expense 414 513 1,940 2,193 Net income $ 1,514 $ 1,699 $ 6,448 $ 7,134 Weighted average common shares outstanding Basic 6,406,156 6,628,847 6,476,767 6,669,389 Diluted 6,486,442 6,708,922 6,557,053 6,761,771 Basic earnings per share $ 0.24 $ 0.26 $ 1.00 $ 1.07 Diluted earnings per share $ 0.23 $ 0.26 $ 0.98 $ 1.06 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 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.94 $ 18.50 $ 18.34 $ 18.02 $ 17.73 Effect of goodwill and other intangibles (2.86 ) (2.87 ) (2.87 ) (2.82 ) (2.81 ) Tangible book value per common share $ 16.08 $ 15.63 $ 15.47 $ 15.20 $ 14.92 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.41 % 13.85 % 13.45 % 12.69 % 14.80 % Effect of goodwill and other intangibles (1.91 )% (1.90 )% (1.86 )% (1.77 )% (2.05 )% Tangible equity to tangible assets (1) 12.50 % 11.95 % 11.59 % 10.92 % 12.75 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. For the Year Ended December 31, 2023 2022 Operating net income reconciliation Net income (GAAP) $ 6,448 $ 7,134 FHLB mark from called borrowings — (988 ) FHLB prepayment penalties — 647 Income tax expense — 87 Operating net income $ 6,448 $ 6,880 Weighted average diluted shares 6,557,053 6,761,771 Adjusted diluted earnings per share $ 0.98 $ 1.02 Net interest income $ 27,198 $ 29,755 FHLB mark from called borrowings — (988 ) Adjusted Net interest income $ 27,198 $ 28,767 Adjusted Net interest income reconciliation Net interest margin (GAAP) 3.35 % 4.14 % Effect of FHLB mark from called borrowings 0.00 (0.14 ) Adjusted Net interest margin 3.35 % 4.00 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240201215970/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. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Affinity Bancshares, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results By: Affinity Bancshares, Inc. via Business Wire February 01, 2024 at 16:30 PM EST Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), February 1, 2024, the holding company for Affinity Bank (the “Bank”), today announced net income of $1.5 million for the three months ended December 31, 2023, as compared to $1.7 million for the three months ended December 31, 2022. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240201215970/en/ At or for the three months ended, Performance Ratios: December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income (in thousands) $ 1,514 $ 1,623 $ 1,590 $ 1,722 $ 1,699 Diluted earnings per share 0.23 0.25 0.24 0.26 0.26 Common book value per share 18.94 18.50 18.34 18.02 17.73 Tangible book value per share (1) 16.08 15.63 15.47 15.20 14.92 Total assets (in thousands) 843,258 855,431 876,905 932,302 791,283 Return on average assets 0.70 % 0.74 % 0.71 % 0.84 % 0.84 % Return on average equity 5.03 % 5.42 % 5.37 % 5.90 % 5.78 % Equity to assets 14.41 % 13.85 % 13.45 % 12.69 % 14.80 % Tangible equity to tangible assets (1) 12.50 % 11.95 % 11.59 % 10.92 % 12.75 % Net interest margin 3.32 % 3.36 % 3.17 % 3.58 % 3.85 % Efficiency ratio 74.30 % 71.78 % 71.68 % 69.73 % 71.38 % (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 $1.5 million for the three months ended December 31, 2023, as compared to $1.7 million for the three months ended December 31, 2022, as a result of an increase in deposit interest expense offset partially by an increase in interest income. Net income was $6.4 million for the year ended December 31, 2023 as compared to $7.1 million for the year ended December 31, 2022, as a result of an increase in deposit interest expense and recognition of the remaining fair value mark on acquired Federal Home Loan Bank ("FHLB") 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 $6.7 million for the three months ended December 31, 2023 compared to $7.3 million for the three months ended December 31, 2022. The decrease was due to an increase in deposit costs partially offset by an increase in interest income. Net interest income was $27.2 million for the year ended December 31, 2023 compared to $29.8 million for the year ended December 31, 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 December 31, 2023 decreased to 3.32% from 3.85% for the three months ended December 31, 2022. Net interest margin for the year ended December 31, 2023 decreased to 3.35% from 4.14% for the year ended December 31, 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 year ended December 31, 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 year ended December 31, 2023 (see Non-GAAP reconciliation) decreased 65 basis points from 4.00% for the year ended December 31, 2022 to 3.35%. Noninterest income increased $40,000 to $606,000 for the three months ended December 31, 2023 and had an increase of $64,000 to $2.5 million for the year ended December 31, 2023 as compared to 2022. Non-interest expense decreased $209,000 to $5.4 million for the three months ended December 31, 2023 compared to the same 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 $808,000 to $21.3 million for the year ended December 31, 2023 compared to 2022 and was a result of the FHLB prepayment penalties paid in the first quarter of 2022 and decreases in advertising expense and other expenses. Financial Condition Total assets increased $52.0 million to $843.3 million at December 31, 2023 from $791.3 million at December 31, 2022, as we increased cash to further enhance liquidity. Total gross loans increased $13.6 million to $659.9 million at December 31, 2023 from $646.2 million at December 31, 2022. Non-owner occupied office loans totaled $26.7 million at December 31, 2023; average loan-to-value ratio on these loans is 41.0%, including $11.0 million medical/dental tenants and $15.7 million to other various tenants. Investment securities held-to-maturity unrealized losses were $277,000, net of tax. Investment securities available-for-sale unrealized losses were $6.3 million, net of tax. Cash and cash equivalents increased $23.7 million to $50.0 million at December 31, 2023 from $26.3 million at December 31, 2022, primarily due to an increase in deposits and borrowings. Deposits increased by $17.2 million to $674.4 million at December 31, 2023 compared to $657.2 million at December 31, 2022, in part due to an increase in certificates of deposits of $95.0 million offset by a $77.7 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 2.4 years and an average interest rate of 4.87%. Uninsured deposits were approximately $95.5 million at December 31, 2023 and represented 14.0% of total deposits, excluding deposits collateralized by public funds and internal accounts. Borrowings increased by $30.0 million to $40.0 million at December 31, 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 $7.4 million at December 31, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 120.1% at December 31, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses to total loans decreased to 1.35% at December 31, 2023 from 1.46% at December 31, 2022. Net loan charge-offs were $404,000 for the year ended December 31, 2023, as compared to net recoveries of $62,000 for the year ended December 31, 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; the effects of any 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 December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 661,913 $ 9,290 5.57 % $ 650,922 $ 8,032 4.90 % Investment securities held-to-maturity 34,194 528 6.13 % 8,809 130 5.85 % Investment securities available-for-sale 47,268 473 3.97 % 42,653 323 3.00 % Interest-earning deposits and federal funds 53,442 709 5.26 % 53,238 485 3.61 % Other investments 5,177 83 6.36 % 758 8 4.19 % Total interest-earning assets 801,994 11,083 5.48 % 756,380 8,978 4.71 % Non-interest-earning assets 52,938 50,538 Total assets $ 854,932 $ 806,918 Interest-bearing liabilities: Interest-bearing checking accounts $ 90,298 $ 99 0.43 % $ 95,200 $ 42 0.18 % Money market accounts 143,312 1,069 2.96 % 161,901 470 1.15 % Savings accounts 76,732 558 2.89 % 103,772 499 1.91 % Certificates of deposit 221,817 2,352 4.21 % 117,102 610 2.07 % Total interest-bearing deposits 532,159 4,078 3.04 % 477,975 1,621 1.35 % FHLB advances and other borrowings 29,348 300 4.06 % 2,717 20 2.92 % Total interest-bearing liabilities 561,507 4,378 3.09 % 480,692 1,641 1.35 % Non-interest-bearing liabilities 174,077 209,683 Total liabilities 735,584 690,375 Total stockholders' equity 119,348 116,543 Total liabilities and stockholders' equity $ 854,932 $ 806,918 Net interest rate spread 2.39 % 3.36 % Net interest income $ 6,705 $ 7,337 Net interest margin 3.32 % 3.85 % For the Year Ended December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 660,045 $ 35,422 5.37 % $ 624,908 $ 30,045 4.81 % Investment securities held-to-maturity 33,850 2,078 6.14 % 2,220 130 5.86 % Investment securities available-for-sale 49,024 1,772 3.61 % 45,594 1,150 2.52 % Interest-earning deposits and federal funds 65,333 3,236 4.95 % 45,674 771 1.69 % Other investments 3,014 192 6.37 % 1,027 38 3.70 % Total interest-earning assets 811,266 42,700 5.26 % 719,423 32,134 4.47 % Non-interest-earning assets 51,987 51,397 Total assets $ 863,253 $ 770,820 Interest-bearing liabilities: Interest-bearing checking accounts $ 92,030 $ 271 0.29 % $ 96,892 $ 176 0.18 % Money market accounts 140,630 3,542 2.52 % 154,237 752 0.49 % Savings accounts 85,555 2,238 2.62 % 89,015 856 0.96 % Certificates of deposit 211,285 8,042 3.81 % 97,948 1,449 1.48 % Total interest-bearing deposits 529,500 14,093 2.66 % 438,092 3,233 0.74 % FHLB advances and other borrowings 32,808 1,409 4.29 % 9,887 (854 ) (8.64 )% Total interest-bearing liabilities 562,308 15,502 2.76 % 447,979 2,379 0.53 % Non-interest-bearing liabilities 182,144 204,842 Total liabilities 744,452 652,821 Total stockholders' equity 118,801 117,999 Total liabilities and stockholders' equity $ 863,253 $ 770,820 Net interest rate spread 2.50 % 3.94 % Net interest income $ 27,198 $ 29,755 Net interest margin 3.35 % 4.14 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets December 31, 2023 December 31, 2022 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 6,030 $ 2,928 Interest-earning deposits in other depository institutions 43,995 23,396 Cash and cash equivalents 50,025 26,324 Investment securities available-for-sale 48,561 46,200 Investment securities held-to-maturity (estimated fair value of $33,835, net of allowance for credit losses of $45 at December 31, 2023 and estimated fair value of $26,251 at December 31, 2022) 34,206 26,527 Other investments 5,434 1,082 Loans 659,876 646,234 Allowance for credit loss on loans (8,921 ) (9,325 ) Net loans 650,955 636,909 Other real estate owned 2,850 2,901 Premises and equipment, net 3,797 4,257 Bank owned life insurance 16,086 15,724 Intangible assets 18,366 18,558 Other assets 12,978 12,801 Total assets $ 843,258 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 154,689 $ 190,297 Interest-bearing checking 85,362 91,167 Money market accounts 138,673 148,097 Savings accounts 74,768 101,622 Certificates of deposit 220,951 125,989 Total deposits 674,443 657,172 Federal Home Loan Bank advances and other borrowings 40,000 10,025 Accrued interest payable and other liabilities 7,299 6,983 Total liabilities 721,742 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,416,628 issued and outstanding at December 31, 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 61,026 63,130 Unearned ESOP shares (4,587 ) (4,795 ) Retained earnings 71,345 65,357 Accumulated other comprehensive loss (6,332 ) (6,655 ) Total stockholders' equity 121,516 117,103 Total liabilities and stockholders' equity $ 843,258 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,290 $ 8,032 $ 35,422 $ 30,045 Investment securities 1,084 461 4,042 1,318 Interest-earning deposits 709 485 3,236 771 Total interest income 11,083 8,978 42,700 32,134 Interest expense: Deposits 4,078 1,621 14,093 3,233 FHLB advances and other borrowings 300 20 1,409 (854 ) Total interest expense 4,378 1,641 15,502 2,379 Net interest income before provision for credit losses 6,705 7,337 27,198 29,755 Provision for credit losses (49 ) 50 (42 ) 704 Net interest income after provision for credit losses 6,754 7,287 27,240 29,051 Noninterest income: Service charges on deposit accounts 398 406 1,620 1,611 Other 208 160 846 791 Total noninterest income 606 566 2,466 2,402 Noninterest expenses: Salaries and employee benefits 3,205 3,002 12,252 12,221 Occupancy 584 725 2,503 2,523 Data processing 520 471 2,025 1,947 FHLB prepayment penalties — — — 647 Other 1,123 1,443 4,538 4,788 Total noninterest expenses 5,432 5,641 21,318 22,126 Income before income taxes 1,928 2,212 8,388 9,327 Income tax expense 414 513 1,940 2,193 Net income $ 1,514 $ 1,699 $ 6,448 $ 7,134 Weighted average common shares outstanding Basic 6,406,156 6,628,847 6,476,767 6,669,389 Diluted 6,486,442 6,708,922 6,557,053 6,761,771 Basic earnings per share $ 0.24 $ 0.26 $ 1.00 $ 1.07 Diluted earnings per share $ 0.23 $ 0.26 $ 0.98 $ 1.06 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 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.94 $ 18.50 $ 18.34 $ 18.02 $ 17.73 Effect of goodwill and other intangibles (2.86 ) (2.87 ) (2.87 ) (2.82 ) (2.81 ) Tangible book value per common share $ 16.08 $ 15.63 $ 15.47 $ 15.20 $ 14.92 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.41 % 13.85 % 13.45 % 12.69 % 14.80 % Effect of goodwill and other intangibles (1.91 )% (1.90 )% (1.86 )% (1.77 )% (2.05 )% Tangible equity to tangible assets (1) 12.50 % 11.95 % 11.59 % 10.92 % 12.75 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. For the Year Ended December 31, 2023 2022 Operating net income reconciliation Net income (GAAP) $ 6,448 $ 7,134 FHLB mark from called borrowings — (988 ) FHLB prepayment penalties — 647 Income tax expense — 87 Operating net income $ 6,448 $ 6,880 Weighted average diluted shares 6,557,053 6,761,771 Adjusted diluted earnings per share $ 0.98 $ 1.02 Net interest income $ 27,198 $ 29,755 FHLB mark from called borrowings — (988 ) Adjusted Net interest income $ 27,198 $ 28,767 Adjusted Net interest income reconciliation Net interest margin (GAAP) 3.35 % 4.14 % Effect of FHLB mark from called borrowings 0.00 (0.14 ) Adjusted Net interest margin 3.35 % 4.00 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240201215970/en/Contacts Edward J. Cooney Chief Executive Officer (678) 742-9990
Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), February 1, 2024, the holding company for Affinity Bank (the “Bank”), today announced net income of $1.5 million for the three months ended December 31, 2023, as compared to $1.7 million for the three months ended December 31, 2022. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240201215970/en/ At or for the three months ended, Performance Ratios: December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income (in thousands) $ 1,514 $ 1,623 $ 1,590 $ 1,722 $ 1,699 Diluted earnings per share 0.23 0.25 0.24 0.26 0.26 Common book value per share 18.94 18.50 18.34 18.02 17.73 Tangible book value per share (1) 16.08 15.63 15.47 15.20 14.92 Total assets (in thousands) 843,258 855,431 876,905 932,302 791,283 Return on average assets 0.70 % 0.74 % 0.71 % 0.84 % 0.84 % Return on average equity 5.03 % 5.42 % 5.37 % 5.90 % 5.78 % Equity to assets 14.41 % 13.85 % 13.45 % 12.69 % 14.80 % Tangible equity to tangible assets (1) 12.50 % 11.95 % 11.59 % 10.92 % 12.75 % Net interest margin 3.32 % 3.36 % 3.17 % 3.58 % 3.85 % Efficiency ratio 74.30 % 71.78 % 71.68 % 69.73 % 71.38 % (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 $1.5 million for the three months ended December 31, 2023, as compared to $1.7 million for the three months ended December 31, 2022, as a result of an increase in deposit interest expense offset partially by an increase in interest income. Net income was $6.4 million for the year ended December 31, 2023 as compared to $7.1 million for the year ended December 31, 2022, as a result of an increase in deposit interest expense and recognition of the remaining fair value mark on acquired Federal Home Loan Bank ("FHLB") 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 $6.7 million for the three months ended December 31, 2023 compared to $7.3 million for the three months ended December 31, 2022. The decrease was due to an increase in deposit costs partially offset by an increase in interest income. Net interest income was $27.2 million for the year ended December 31, 2023 compared to $29.8 million for the year ended December 31, 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 December 31, 2023 decreased to 3.32% from 3.85% for the three months ended December 31, 2022. Net interest margin for the year ended December 31, 2023 decreased to 3.35% from 4.14% for the year ended December 31, 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 year ended December 31, 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 year ended December 31, 2023 (see Non-GAAP reconciliation) decreased 65 basis points from 4.00% for the year ended December 31, 2022 to 3.35%. Noninterest income increased $40,000 to $606,000 for the three months ended December 31, 2023 and had an increase of $64,000 to $2.5 million for the year ended December 31, 2023 as compared to 2022. Non-interest expense decreased $209,000 to $5.4 million for the three months ended December 31, 2023 compared to the same 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 $808,000 to $21.3 million for the year ended December 31, 2023 compared to 2022 and was a result of the FHLB prepayment penalties paid in the first quarter of 2022 and decreases in advertising expense and other expenses. Financial Condition Total assets increased $52.0 million to $843.3 million at December 31, 2023 from $791.3 million at December 31, 2022, as we increased cash to further enhance liquidity. Total gross loans increased $13.6 million to $659.9 million at December 31, 2023 from $646.2 million at December 31, 2022. Non-owner occupied office loans totaled $26.7 million at December 31, 2023; average loan-to-value ratio on these loans is 41.0%, including $11.0 million medical/dental tenants and $15.7 million to other various tenants. Investment securities held-to-maturity unrealized losses were $277,000, net of tax. Investment securities available-for-sale unrealized losses were $6.3 million, net of tax. Cash and cash equivalents increased $23.7 million to $50.0 million at December 31, 2023 from $26.3 million at December 31, 2022, primarily due to an increase in deposits and borrowings. Deposits increased by $17.2 million to $674.4 million at December 31, 2023 compared to $657.2 million at December 31, 2022, in part due to an increase in certificates of deposits of $95.0 million offset by a $77.7 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 2.4 years and an average interest rate of 4.87%. Uninsured deposits were approximately $95.5 million at December 31, 2023 and represented 14.0% of total deposits, excluding deposits collateralized by public funds and internal accounts. Borrowings increased by $30.0 million to $40.0 million at December 31, 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 $7.4 million at December 31, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 120.1% at December 31, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses to total loans decreased to 1.35% at December 31, 2023 from 1.46% at December 31, 2022. Net loan charge-offs were $404,000 for the year ended December 31, 2023, as compared to net recoveries of $62,000 for the year ended December 31, 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; the effects of any 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 December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 661,913 $ 9,290 5.57 % $ 650,922 $ 8,032 4.90 % Investment securities held-to-maturity 34,194 528 6.13 % 8,809 130 5.85 % Investment securities available-for-sale 47,268 473 3.97 % 42,653 323 3.00 % Interest-earning deposits and federal funds 53,442 709 5.26 % 53,238 485 3.61 % Other investments 5,177 83 6.36 % 758 8 4.19 % Total interest-earning assets 801,994 11,083 5.48 % 756,380 8,978 4.71 % Non-interest-earning assets 52,938 50,538 Total assets $ 854,932 $ 806,918 Interest-bearing liabilities: Interest-bearing checking accounts $ 90,298 $ 99 0.43 % $ 95,200 $ 42 0.18 % Money market accounts 143,312 1,069 2.96 % 161,901 470 1.15 % Savings accounts 76,732 558 2.89 % 103,772 499 1.91 % Certificates of deposit 221,817 2,352 4.21 % 117,102 610 2.07 % Total interest-bearing deposits 532,159 4,078 3.04 % 477,975 1,621 1.35 % FHLB advances and other borrowings 29,348 300 4.06 % 2,717 20 2.92 % Total interest-bearing liabilities 561,507 4,378 3.09 % 480,692 1,641 1.35 % Non-interest-bearing liabilities 174,077 209,683 Total liabilities 735,584 690,375 Total stockholders' equity 119,348 116,543 Total liabilities and stockholders' equity $ 854,932 $ 806,918 Net interest rate spread 2.39 % 3.36 % Net interest income $ 6,705 $ 7,337 Net interest margin 3.32 % 3.85 % For the Year Ended December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 660,045 $ 35,422 5.37 % $ 624,908 $ 30,045 4.81 % Investment securities held-to-maturity 33,850 2,078 6.14 % 2,220 130 5.86 % Investment securities available-for-sale 49,024 1,772 3.61 % 45,594 1,150 2.52 % Interest-earning deposits and federal funds 65,333 3,236 4.95 % 45,674 771 1.69 % Other investments 3,014 192 6.37 % 1,027 38 3.70 % Total interest-earning assets 811,266 42,700 5.26 % 719,423 32,134 4.47 % Non-interest-earning assets 51,987 51,397 Total assets $ 863,253 $ 770,820 Interest-bearing liabilities: Interest-bearing checking accounts $ 92,030 $ 271 0.29 % $ 96,892 $ 176 0.18 % Money market accounts 140,630 3,542 2.52 % 154,237 752 0.49 % Savings accounts 85,555 2,238 2.62 % 89,015 856 0.96 % Certificates of deposit 211,285 8,042 3.81 % 97,948 1,449 1.48 % Total interest-bearing deposits 529,500 14,093 2.66 % 438,092 3,233 0.74 % FHLB advances and other borrowings 32,808 1,409 4.29 % 9,887 (854 ) (8.64 )% Total interest-bearing liabilities 562,308 15,502 2.76 % 447,979 2,379 0.53 % Non-interest-bearing liabilities 182,144 204,842 Total liabilities 744,452 652,821 Total stockholders' equity 118,801 117,999 Total liabilities and stockholders' equity $ 863,253 $ 770,820 Net interest rate spread 2.50 % 3.94 % Net interest income $ 27,198 $ 29,755 Net interest margin 3.35 % 4.14 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets December 31, 2023 December 31, 2022 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 6,030 $ 2,928 Interest-earning deposits in other depository institutions 43,995 23,396 Cash and cash equivalents 50,025 26,324 Investment securities available-for-sale 48,561 46,200 Investment securities held-to-maturity (estimated fair value of $33,835, net of allowance for credit losses of $45 at December 31, 2023 and estimated fair value of $26,251 at December 31, 2022) 34,206 26,527 Other investments 5,434 1,082 Loans 659,876 646,234 Allowance for credit loss on loans (8,921 ) (9,325 ) Net loans 650,955 636,909 Other real estate owned 2,850 2,901 Premises and equipment, net 3,797 4,257 Bank owned life insurance 16,086 15,724 Intangible assets 18,366 18,558 Other assets 12,978 12,801 Total assets $ 843,258 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 154,689 $ 190,297 Interest-bearing checking 85,362 91,167 Money market accounts 138,673 148,097 Savings accounts 74,768 101,622 Certificates of deposit 220,951 125,989 Total deposits 674,443 657,172 Federal Home Loan Bank advances and other borrowings 40,000 10,025 Accrued interest payable and other liabilities 7,299 6,983 Total liabilities 721,742 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,416,628 issued and outstanding at December 31, 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 61,026 63,130 Unearned ESOP shares (4,587 ) (4,795 ) Retained earnings 71,345 65,357 Accumulated other comprehensive loss (6,332 ) (6,655 ) Total stockholders' equity 121,516 117,103 Total liabilities and stockholders' equity $ 843,258 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,290 $ 8,032 $ 35,422 $ 30,045 Investment securities 1,084 461 4,042 1,318 Interest-earning deposits 709 485 3,236 771 Total interest income 11,083 8,978 42,700 32,134 Interest expense: Deposits 4,078 1,621 14,093 3,233 FHLB advances and other borrowings 300 20 1,409 (854 ) Total interest expense 4,378 1,641 15,502 2,379 Net interest income before provision for credit losses 6,705 7,337 27,198 29,755 Provision for credit losses (49 ) 50 (42 ) 704 Net interest income after provision for credit losses 6,754 7,287 27,240 29,051 Noninterest income: Service charges on deposit accounts 398 406 1,620 1,611 Other 208 160 846 791 Total noninterest income 606 566 2,466 2,402 Noninterest expenses: Salaries and employee benefits 3,205 3,002 12,252 12,221 Occupancy 584 725 2,503 2,523 Data processing 520 471 2,025 1,947 FHLB prepayment penalties — — — 647 Other 1,123 1,443 4,538 4,788 Total noninterest expenses 5,432 5,641 21,318 22,126 Income before income taxes 1,928 2,212 8,388 9,327 Income tax expense 414 513 1,940 2,193 Net income $ 1,514 $ 1,699 $ 6,448 $ 7,134 Weighted average common shares outstanding Basic 6,406,156 6,628,847 6,476,767 6,669,389 Diluted 6,486,442 6,708,922 6,557,053 6,761,771 Basic earnings per share $ 0.24 $ 0.26 $ 1.00 $ 1.07 Diluted earnings per share $ 0.23 $ 0.26 $ 0.98 $ 1.06 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 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.94 $ 18.50 $ 18.34 $ 18.02 $ 17.73 Effect of goodwill and other intangibles (2.86 ) (2.87 ) (2.87 ) (2.82 ) (2.81 ) Tangible book value per common share $ 16.08 $ 15.63 $ 15.47 $ 15.20 $ 14.92 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.41 % 13.85 % 13.45 % 12.69 % 14.80 % Effect of goodwill and other intangibles (1.91 )% (1.90 )% (1.86 )% (1.77 )% (2.05 )% Tangible equity to tangible assets (1) 12.50 % 11.95 % 11.59 % 10.92 % 12.75 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. For the Year Ended December 31, 2023 2022 Operating net income reconciliation Net income (GAAP) $ 6,448 $ 7,134 FHLB mark from called borrowings — (988 ) FHLB prepayment penalties — 647 Income tax expense — 87 Operating net income $ 6,448 $ 6,880 Weighted average diluted shares 6,557,053 6,761,771 Adjusted diluted earnings per share $ 0.98 $ 1.02 Net interest income $ 27,198 $ 29,755 FHLB mark from called borrowings — (988 ) Adjusted Net interest income $ 27,198 $ 28,767 Adjusted Net interest income reconciliation Net interest margin (GAAP) 3.35 % 4.14 % Effect of FHLB mark from called borrowings 0.00 (0.14 ) Adjusted Net interest margin 3.35 % 4.00 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240201215970/en/