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 First Quarter 2024 Financial Results By: Affinity Bancshares, Inc. via Business Wire April 26, 2024 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 $1.3 million for the three months ended March 31, 2024, as compared to $1.7 million for the three months ended March 31, 2023. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240426283380/en/ At or for the three months ended, Performance Ratios: March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income (in thousands) $ 1,335 $ 1,514 $ 1,623 $ 1,590 $ 1,722 Diluted earnings per share 0.20 0.23 0.25 0.24 0.26 Common book value per share 19.21 18.94 18.50 18.34 18.02 Tangible book value per share (1) 16.36 16.08 15.63 15.47 15.20 Total assets (in thousands) 869,547 843,258 855,431 876,905 932,302 Return on average assets 0.63 % 0.70 % 0.74 % 0.71 % 0.84 % Return on average equity 4.38 % 5.03 % 5.42 % 5.37 % 5.90 % Equity to assets 14.18 % 14.41 % 13.85 % 13.45 % 12.69 % Tangible equity to tangible assets (1) 12.33 % 12.50 % 11.95 % 11.59 % 10.92 % Net interest margin 3.38 % 3.32 % 3.36 % 3.17 % 3.58 % Efficiency ratio 75.96 % 74.30 % 71.78 % 71.68 % 69.73 % (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 $1.3 million for three months ended March 31, 2024 as compared to $1.7 million for the three months ended March 31, 2023, as a result of an increase in deposit interest expense partially offset by an increase in interest income. Results of Operations Net interest income was $6.7 million for the three months ended March 31, 2024 compared to $6.9 million for the three months ended March 31, 2023. The decrease was due to an increase in deposit costs, partially offset by an increase in interest income. Net interest margin for the three months ended March 31, 2024 decreased to 3.38% from 3.58% for the three months ended March 31, 2023. The decreases in the margin relate to increases in our costs of funds exceeding our increases in our yield on interest-earning assets. Noninterest income increased $32,000 to $584,000 for the three months ended March 31, 2024. Non-interest expense increased $376,000 to $5.6 million for the three months ended March 31, 2024 compared to the respective period in 2023, due to increases in salaries, data processing and other expenses offset by decreases in occupancy expenses. Financial Condition Total assets increased $26.3 million to $869.5 million at March 31, 2024 from $843.3 million at December 31, 2023, as we increased cash to further enhance liquidity and experienced loan growth. Total gross loans increased $14.6 million to $674.5 million at March 31, 2024 from $659.9 million at December 31, 2023. The increase was due to steady loan demand. Non-owner occupied office loans totaled $26.4 million at March 31, 2024; average LTV on these loans is 41.0%, including $10.5 million medical/dental tenants and $15.9 million to other various tenants. Investment securities held-to-maturity unrealized losses were $301,000, net of tax. Investment securities available-for-sale unrealized losses were $6.3 million, net of tax. Cash and cash equivalents increased to $61.4 million at March 31, 2024 from $50.0 million at December 31, 2023, primarily due to an increase in deposits. Deposits increased by $13.0 million to $687.4 million at March 31, 2024 compared to $674.4 million at December 31, 2023, with $11.3 million of the increase in demand deposits. Uninsured deposits were approximately $107.1 million at March 31, 2024 and represented 15.6% of total deposits. Borrowings increased by $11.8 million to $51.8 million at March 31, 2024 compared to $40.0 million at December 31, 2023 as we continue to evaluate borrowing needs related to enhancing bank liquidity. Asset Quality Non-performing loans decreased to $7.2 million at March 31, 2024 from $7.4 million at December 31, 2023. The allowance for credit losses as a percentage of non-performing loans was 120.0% at March 31, 2024, as compared to 120.1% at December 31, 2023. Allowance for credit losses to total loans decreased to 1.27% at March 31, 2024 from 1.35% at December 31, 2023. Net loan charge-offs were $326,000 for the three months ended March 31, 2024, as compared to net loan charge-offs of $91,000 for the three months ended March 31, 2023. 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 March 31, 2024 2023 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 664,660 $ 9,499 5.75 % $ 651,750 $ 8,291 5.16 % Investment securities held-to-maturity 34,213 528 6.21 % 32,898 503 6.20 % Investment securities available-for-sale 48,169 463 3.87 % 48,844 411 3.41 % Interest-earning deposits and federal funds 50,083 647 5.20 % 45,758 488 4.32 % Other investments 5,447 84 6.20 % 2,643 35 5.39 % Total interest-earning assets 802,572 11,221 5.62 % 781,893 9,728 5.05 % Non-interest-earning assets 52,145 51,044 Total assets $ 854,717 $ 832,937 Interest-bearing liabilities: Interest-bearing checking accounts $ 88,057 $ 103 0.47 % $ 91,856 $ 45 0.20 % Money market accounts 140,600 1,086 3.11 % 139,495 661 1.92 % Savings accounts 74,412 528 2.85 % 95,897 552 2.34 % Certificates of deposit 219,806 2,285 4.18 % 149,058 1,056 2.87 % Total interest-bearing deposits 522,875 4,002 3.08 % 476,306 2,314 1.97 % FHLB advances and other borrowings 52,615 470 3.59 % 46,723 516 4.48 % Total interest-bearing liabilities 575,490 4,472 3.13 % 523,029 2,830 2.19 % Non-interest-bearing liabilities 156,697 191,659 Total liabilities 732,187 714,688 Total stockholders' equity 122,530 118,249 Total liabilities and stockholders' equity $ 854,717 $ 832,937 Net interest rate spread 2.49 % 2.86 % Net interest income $ 6,749 $ 6,898 Net interest margin 3.38 % 3.58 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets (unaudited) March 31, 2024 December 31, 2023 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 6,388 $ 6,030 Interest-earning deposits in other depository institutions 55,007 43,995 Cash and cash equivalents 61,395 50,025 Investment securities available-for-sale 48,239 48,561 Investment securities held-to-maturity (estimated fair value of $33,873, net of allowance for credit losses of $45 at March 31, 2024 and estimated fair value of $33,835, net of allowance for credit losses of $45 at December 31, 2023) 34,230 34,206 Other investments 5,480 5,434 Loans 674,498 659,876 Allowance for credit loss on loans (8,595 ) (8,921 ) Net loans 665,903 650,955 Other real estate owned 2,850 2,850 Premises and equipment, net 3,691 3,797 Bank owned life insurance 16,184 16,086 Intangible assets 18,318 18,366 Other assets 13,257 12,978 Total assets $ 869,547 $ 843,258 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 164,568 $ 154,689 Interest-bearing checking 86,734 85,362 Money market accounts 144,689 138,673 Savings accounts 74,282 74,768 Certificates of deposit 217,171 220,951 Total deposits 687,444 674,443 Federal Home Loan Bank advances and other borrowings 51,837 40,000 Accrued interest payable and other liabilities 6,966 7,299 Total liabilities 746,247 721,742 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,416,628 issued and outstanding at March 31, 2024 and December 31, 2023) 64 64 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 61,409 61,026 Unearned ESOP shares (4,535 ) (4,587 ) Retained earnings 72,680 71,345 Accumulated other comprehensive loss (6,318 ) (6,332 ) Total stockholders' equity 123,300 121,516 Total liabilities and stockholders' equity $ 869,547 $ 843,258 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended March 31, 2024 2023 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,499 $ 8,291 Investment securities 1,075 949 Interest-earning deposits 647 488 Total interest income 11,221 9,728 Interest expense: Deposits 4,002 2,314 FHLB advances and other borrowings 470 516 Total interest expense 4,472 2,830 Net interest income before provision for credit losses 6,749 6,898 Provision for credit losses — 7 Net interest income after provision for credit losses 6,749 6,891 Noninterest income: Service charges on deposit accounts 395 391 Other 189 161 Total noninterest income 584 552 Noninterest expenses: Salaries and employee benefits 3,179 3,004 Occupancy 618 644 Data processing 511 493 Other 1,262 1,053 Total noninterest expenses 5,570 5,194 Income before income taxes 1,763 2,249 Income tax expense 428 527 Net income $ 1,335 $ 1,722 Weighted average common shares outstanding Basic 6,416,628 6,599,672 Diluted 6,524,332 6,681,680 Basic earnings per share $ 0.21 $ 0.26 Diluted earnings per share $ 0.20 $ 0.26 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 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 19.21 $ 18.94 $ 18.50 $ 18.34 $ 18.02 Effect of goodwill and other intangibles (2.85 ) (2.86 ) (2.87 ) (2.87 ) (2.82 ) Tangible book value per common share $ 16.36 $ 16.08 $ 15.63 $ 15.47 $ 15.20 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.18 % 14.41 % 13.85 % 13.45 % 12.69 % Effect of goodwill and other intangibles (1.85 )% (1.91 )% (1.90 )% (1.86 )% (1.77 )% Tangible equity to tangible assets (1) 12.33 % 12.50 % 11.95 % 11.59 % 10.92 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. View source version on businesswire.com: https://www.businesswire.com/news/home/20240426283380/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 First Quarter 2024 Financial Results By: Affinity Bancshares, Inc. via Business Wire April 26, 2024 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 $1.3 million for the three months ended March 31, 2024, as compared to $1.7 million for the three months ended March 31, 2023. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240426283380/en/ At or for the three months ended, Performance Ratios: March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income (in thousands) $ 1,335 $ 1,514 $ 1,623 $ 1,590 $ 1,722 Diluted earnings per share 0.20 0.23 0.25 0.24 0.26 Common book value per share 19.21 18.94 18.50 18.34 18.02 Tangible book value per share (1) 16.36 16.08 15.63 15.47 15.20 Total assets (in thousands) 869,547 843,258 855,431 876,905 932,302 Return on average assets 0.63 % 0.70 % 0.74 % 0.71 % 0.84 % Return on average equity 4.38 % 5.03 % 5.42 % 5.37 % 5.90 % Equity to assets 14.18 % 14.41 % 13.85 % 13.45 % 12.69 % Tangible equity to tangible assets (1) 12.33 % 12.50 % 11.95 % 11.59 % 10.92 % Net interest margin 3.38 % 3.32 % 3.36 % 3.17 % 3.58 % Efficiency ratio 75.96 % 74.30 % 71.78 % 71.68 % 69.73 % (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 $1.3 million for three months ended March 31, 2024 as compared to $1.7 million for the three months ended March 31, 2023, as a result of an increase in deposit interest expense partially offset by an increase in interest income. Results of Operations Net interest income was $6.7 million for the three months ended March 31, 2024 compared to $6.9 million for the three months ended March 31, 2023. The decrease was due to an increase in deposit costs, partially offset by an increase in interest income. Net interest margin for the three months ended March 31, 2024 decreased to 3.38% from 3.58% for the three months ended March 31, 2023. The decreases in the margin relate to increases in our costs of funds exceeding our increases in our yield on interest-earning assets. Noninterest income increased $32,000 to $584,000 for the three months ended March 31, 2024. Non-interest expense increased $376,000 to $5.6 million for the three months ended March 31, 2024 compared to the respective period in 2023, due to increases in salaries, data processing and other expenses offset by decreases in occupancy expenses. Financial Condition Total assets increased $26.3 million to $869.5 million at March 31, 2024 from $843.3 million at December 31, 2023, as we increased cash to further enhance liquidity and experienced loan growth. Total gross loans increased $14.6 million to $674.5 million at March 31, 2024 from $659.9 million at December 31, 2023. The increase was due to steady loan demand. Non-owner occupied office loans totaled $26.4 million at March 31, 2024; average LTV on these loans is 41.0%, including $10.5 million medical/dental tenants and $15.9 million to other various tenants. Investment securities held-to-maturity unrealized losses were $301,000, net of tax. Investment securities available-for-sale unrealized losses were $6.3 million, net of tax. Cash and cash equivalents increased to $61.4 million at March 31, 2024 from $50.0 million at December 31, 2023, primarily due to an increase in deposits. Deposits increased by $13.0 million to $687.4 million at March 31, 2024 compared to $674.4 million at December 31, 2023, with $11.3 million of the increase in demand deposits. Uninsured deposits were approximately $107.1 million at March 31, 2024 and represented 15.6% of total deposits. Borrowings increased by $11.8 million to $51.8 million at March 31, 2024 compared to $40.0 million at December 31, 2023 as we continue to evaluate borrowing needs related to enhancing bank liquidity. Asset Quality Non-performing loans decreased to $7.2 million at March 31, 2024 from $7.4 million at December 31, 2023. The allowance for credit losses as a percentage of non-performing loans was 120.0% at March 31, 2024, as compared to 120.1% at December 31, 2023. Allowance for credit losses to total loans decreased to 1.27% at March 31, 2024 from 1.35% at December 31, 2023. Net loan charge-offs were $326,000 for the three months ended March 31, 2024, as compared to net loan charge-offs of $91,000 for the three months ended March 31, 2023. 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 March 31, 2024 2023 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 664,660 $ 9,499 5.75 % $ 651,750 $ 8,291 5.16 % Investment securities held-to-maturity 34,213 528 6.21 % 32,898 503 6.20 % Investment securities available-for-sale 48,169 463 3.87 % 48,844 411 3.41 % Interest-earning deposits and federal funds 50,083 647 5.20 % 45,758 488 4.32 % Other investments 5,447 84 6.20 % 2,643 35 5.39 % Total interest-earning assets 802,572 11,221 5.62 % 781,893 9,728 5.05 % Non-interest-earning assets 52,145 51,044 Total assets $ 854,717 $ 832,937 Interest-bearing liabilities: Interest-bearing checking accounts $ 88,057 $ 103 0.47 % $ 91,856 $ 45 0.20 % Money market accounts 140,600 1,086 3.11 % 139,495 661 1.92 % Savings accounts 74,412 528 2.85 % 95,897 552 2.34 % Certificates of deposit 219,806 2,285 4.18 % 149,058 1,056 2.87 % Total interest-bearing deposits 522,875 4,002 3.08 % 476,306 2,314 1.97 % FHLB advances and other borrowings 52,615 470 3.59 % 46,723 516 4.48 % Total interest-bearing liabilities 575,490 4,472 3.13 % 523,029 2,830 2.19 % Non-interest-bearing liabilities 156,697 191,659 Total liabilities 732,187 714,688 Total stockholders' equity 122,530 118,249 Total liabilities and stockholders' equity $ 854,717 $ 832,937 Net interest rate spread 2.49 % 2.86 % Net interest income $ 6,749 $ 6,898 Net interest margin 3.38 % 3.58 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets (unaudited) March 31, 2024 December 31, 2023 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 6,388 $ 6,030 Interest-earning deposits in other depository institutions 55,007 43,995 Cash and cash equivalents 61,395 50,025 Investment securities available-for-sale 48,239 48,561 Investment securities held-to-maturity (estimated fair value of $33,873, net of allowance for credit losses of $45 at March 31, 2024 and estimated fair value of $33,835, net of allowance for credit losses of $45 at December 31, 2023) 34,230 34,206 Other investments 5,480 5,434 Loans 674,498 659,876 Allowance for credit loss on loans (8,595 ) (8,921 ) Net loans 665,903 650,955 Other real estate owned 2,850 2,850 Premises and equipment, net 3,691 3,797 Bank owned life insurance 16,184 16,086 Intangible assets 18,318 18,366 Other assets 13,257 12,978 Total assets $ 869,547 $ 843,258 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 164,568 $ 154,689 Interest-bearing checking 86,734 85,362 Money market accounts 144,689 138,673 Savings accounts 74,282 74,768 Certificates of deposit 217,171 220,951 Total deposits 687,444 674,443 Federal Home Loan Bank advances and other borrowings 51,837 40,000 Accrued interest payable and other liabilities 6,966 7,299 Total liabilities 746,247 721,742 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,416,628 issued and outstanding at March 31, 2024 and December 31, 2023) 64 64 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 61,409 61,026 Unearned ESOP shares (4,535 ) (4,587 ) Retained earnings 72,680 71,345 Accumulated other comprehensive loss (6,318 ) (6,332 ) Total stockholders' equity 123,300 121,516 Total liabilities and stockholders' equity $ 869,547 $ 843,258 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended March 31, 2024 2023 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,499 $ 8,291 Investment securities 1,075 949 Interest-earning deposits 647 488 Total interest income 11,221 9,728 Interest expense: Deposits 4,002 2,314 FHLB advances and other borrowings 470 516 Total interest expense 4,472 2,830 Net interest income before provision for credit losses 6,749 6,898 Provision for credit losses — 7 Net interest income after provision for credit losses 6,749 6,891 Noninterest income: Service charges on deposit accounts 395 391 Other 189 161 Total noninterest income 584 552 Noninterest expenses: Salaries and employee benefits 3,179 3,004 Occupancy 618 644 Data processing 511 493 Other 1,262 1,053 Total noninterest expenses 5,570 5,194 Income before income taxes 1,763 2,249 Income tax expense 428 527 Net income $ 1,335 $ 1,722 Weighted average common shares outstanding Basic 6,416,628 6,599,672 Diluted 6,524,332 6,681,680 Basic earnings per share $ 0.21 $ 0.26 Diluted earnings per share $ 0.20 $ 0.26 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 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 19.21 $ 18.94 $ 18.50 $ 18.34 $ 18.02 Effect of goodwill and other intangibles (2.85 ) (2.86 ) (2.87 ) (2.87 ) (2.82 ) Tangible book value per common share $ 16.36 $ 16.08 $ 15.63 $ 15.47 $ 15.20 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.18 % 14.41 % 13.85 % 13.45 % 12.69 % Effect of goodwill and other intangibles (1.85 )% (1.91 )% (1.90 )% (1.86 )% (1.77 )% Tangible equity to tangible assets (1) 12.33 % 12.50 % 11.95 % 11.59 % 10.92 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. View source version on businesswire.com: https://www.businesswire.com/news/home/20240426283380/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 $1.3 million for the three months ended March 31, 2024, as compared to $1.7 million for the three months ended March 31, 2023. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240426283380/en/ At or for the three months ended, Performance Ratios: March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income (in thousands) $ 1,335 $ 1,514 $ 1,623 $ 1,590 $ 1,722 Diluted earnings per share 0.20 0.23 0.25 0.24 0.26 Common book value per share 19.21 18.94 18.50 18.34 18.02 Tangible book value per share (1) 16.36 16.08 15.63 15.47 15.20 Total assets (in thousands) 869,547 843,258 855,431 876,905 932,302 Return on average assets 0.63 % 0.70 % 0.74 % 0.71 % 0.84 % Return on average equity 4.38 % 5.03 % 5.42 % 5.37 % 5.90 % Equity to assets 14.18 % 14.41 % 13.85 % 13.45 % 12.69 % Tangible equity to tangible assets (1) 12.33 % 12.50 % 11.95 % 11.59 % 10.92 % Net interest margin 3.38 % 3.32 % 3.36 % 3.17 % 3.58 % Efficiency ratio 75.96 % 74.30 % 71.78 % 71.68 % 69.73 % (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 $1.3 million for three months ended March 31, 2024 as compared to $1.7 million for the three months ended March 31, 2023, as a result of an increase in deposit interest expense partially offset by an increase in interest income. Results of Operations Net interest income was $6.7 million for the three months ended March 31, 2024 compared to $6.9 million for the three months ended March 31, 2023. The decrease was due to an increase in deposit costs, partially offset by an increase in interest income. Net interest margin for the three months ended March 31, 2024 decreased to 3.38% from 3.58% for the three months ended March 31, 2023. The decreases in the margin relate to increases in our costs of funds exceeding our increases in our yield on interest-earning assets. Noninterest income increased $32,000 to $584,000 for the three months ended March 31, 2024. Non-interest expense increased $376,000 to $5.6 million for the three months ended March 31, 2024 compared to the respective period in 2023, due to increases in salaries, data processing and other expenses offset by decreases in occupancy expenses. Financial Condition Total assets increased $26.3 million to $869.5 million at March 31, 2024 from $843.3 million at December 31, 2023, as we increased cash to further enhance liquidity and experienced loan growth. Total gross loans increased $14.6 million to $674.5 million at March 31, 2024 from $659.9 million at December 31, 2023. The increase was due to steady loan demand. Non-owner occupied office loans totaled $26.4 million at March 31, 2024; average LTV on these loans is 41.0%, including $10.5 million medical/dental tenants and $15.9 million to other various tenants. Investment securities held-to-maturity unrealized losses were $301,000, net of tax. Investment securities available-for-sale unrealized losses were $6.3 million, net of tax. Cash and cash equivalents increased to $61.4 million at March 31, 2024 from $50.0 million at December 31, 2023, primarily due to an increase in deposits. Deposits increased by $13.0 million to $687.4 million at March 31, 2024 compared to $674.4 million at December 31, 2023, with $11.3 million of the increase in demand deposits. Uninsured deposits were approximately $107.1 million at March 31, 2024 and represented 15.6% of total deposits. Borrowings increased by $11.8 million to $51.8 million at March 31, 2024 compared to $40.0 million at December 31, 2023 as we continue to evaluate borrowing needs related to enhancing bank liquidity. Asset Quality Non-performing loans decreased to $7.2 million at March 31, 2024 from $7.4 million at December 31, 2023. The allowance for credit losses as a percentage of non-performing loans was 120.0% at March 31, 2024, as compared to 120.1% at December 31, 2023. Allowance for credit losses to total loans decreased to 1.27% at March 31, 2024 from 1.35% at December 31, 2023. Net loan charge-offs were $326,000 for the three months ended March 31, 2024, as compared to net loan charge-offs of $91,000 for the three months ended March 31, 2023. 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 March 31, 2024 2023 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 664,660 $ 9,499 5.75 % $ 651,750 $ 8,291 5.16 % Investment securities held-to-maturity 34,213 528 6.21 % 32,898 503 6.20 % Investment securities available-for-sale 48,169 463 3.87 % 48,844 411 3.41 % Interest-earning deposits and federal funds 50,083 647 5.20 % 45,758 488 4.32 % Other investments 5,447 84 6.20 % 2,643 35 5.39 % Total interest-earning assets 802,572 11,221 5.62 % 781,893 9,728 5.05 % Non-interest-earning assets 52,145 51,044 Total assets $ 854,717 $ 832,937 Interest-bearing liabilities: Interest-bearing checking accounts $ 88,057 $ 103 0.47 % $ 91,856 $ 45 0.20 % Money market accounts 140,600 1,086 3.11 % 139,495 661 1.92 % Savings accounts 74,412 528 2.85 % 95,897 552 2.34 % Certificates of deposit 219,806 2,285 4.18 % 149,058 1,056 2.87 % Total interest-bearing deposits 522,875 4,002 3.08 % 476,306 2,314 1.97 % FHLB advances and other borrowings 52,615 470 3.59 % 46,723 516 4.48 % Total interest-bearing liabilities 575,490 4,472 3.13 % 523,029 2,830 2.19 % Non-interest-bearing liabilities 156,697 191,659 Total liabilities 732,187 714,688 Total stockholders' equity 122,530 118,249 Total liabilities and stockholders' equity $ 854,717 $ 832,937 Net interest rate spread 2.49 % 2.86 % Net interest income $ 6,749 $ 6,898 Net interest margin 3.38 % 3.58 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets (unaudited) March 31, 2024 December 31, 2023 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 6,388 $ 6,030 Interest-earning deposits in other depository institutions 55,007 43,995 Cash and cash equivalents 61,395 50,025 Investment securities available-for-sale 48,239 48,561 Investment securities held-to-maturity (estimated fair value of $33,873, net of allowance for credit losses of $45 at March 31, 2024 and estimated fair value of $33,835, net of allowance for credit losses of $45 at December 31, 2023) 34,230 34,206 Other investments 5,480 5,434 Loans 674,498 659,876 Allowance for credit loss on loans (8,595 ) (8,921 ) Net loans 665,903 650,955 Other real estate owned 2,850 2,850 Premises and equipment, net 3,691 3,797 Bank owned life insurance 16,184 16,086 Intangible assets 18,318 18,366 Other assets 13,257 12,978 Total assets $ 869,547 $ 843,258 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 164,568 $ 154,689 Interest-bearing checking 86,734 85,362 Money market accounts 144,689 138,673 Savings accounts 74,282 74,768 Certificates of deposit 217,171 220,951 Total deposits 687,444 674,443 Federal Home Loan Bank advances and other borrowings 51,837 40,000 Accrued interest payable and other liabilities 6,966 7,299 Total liabilities 746,247 721,742 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,416,628 issued and outstanding at March 31, 2024 and December 31, 2023) 64 64 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 61,409 61,026 Unearned ESOP shares (4,535 ) (4,587 ) Retained earnings 72,680 71,345 Accumulated other comprehensive loss (6,318 ) (6,332 ) Total stockholders' equity 123,300 121,516 Total liabilities and stockholders' equity $ 869,547 $ 843,258 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended March 31, 2024 2023 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 9,499 $ 8,291 Investment securities 1,075 949 Interest-earning deposits 647 488 Total interest income 11,221 9,728 Interest expense: Deposits 4,002 2,314 FHLB advances and other borrowings 470 516 Total interest expense 4,472 2,830 Net interest income before provision for credit losses 6,749 6,898 Provision for credit losses — 7 Net interest income after provision for credit losses 6,749 6,891 Noninterest income: Service charges on deposit accounts 395 391 Other 189 161 Total noninterest income 584 552 Noninterest expenses: Salaries and employee benefits 3,179 3,004 Occupancy 618 644 Data processing 511 493 Other 1,262 1,053 Total noninterest expenses 5,570 5,194 Income before income taxes 1,763 2,249 Income tax expense 428 527 Net income $ 1,335 $ 1,722 Weighted average common shares outstanding Basic 6,416,628 6,599,672 Diluted 6,524,332 6,681,680 Basic earnings per share $ 0.21 $ 0.26 Diluted earnings per share $ 0.20 $ 0.26 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 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 19.21 $ 18.94 $ 18.50 $ 18.34 $ 18.02 Effect of goodwill and other intangibles (2.85 ) (2.86 ) (2.87 ) (2.87 ) (2.82 ) Tangible book value per common share $ 16.36 $ 16.08 $ 15.63 $ 15.47 $ 15.20 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.18 % 14.41 % 13.85 % 13.45 % 12.69 % Effect of goodwill and other intangibles (1.85 )% (1.91 )% (1.90 )% (1.86 )% (1.77 )% Tangible equity to tangible assets (1) 12.33 % 12.50 % 11.95 % 11.59 % 10.92 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets. View source version on businesswire.com: https://www.businesswire.com/news/home/20240426283380/en/