Affinity Bancshares, Inc. Announces Fourth Quarter 2025 Financial Results
COVINGTON, Ga.--( BUSINESS WIRE)--Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $2.1 million for the three months ended December 31, 2025, as compared to $1.3 million for the three months ended December 31, 2024.
At or for the three months ended,
Performance Ratios:
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net income (in thousands)
$
2,132
$
2,217
$
2,152
$
1,831
$
1,345
Diluted earnings per share
0.34
0.34
0.33
0.28
0.20
Operating income (1)
2,510
2,389
2,316
1,996
1,738
Adjusted diluted earnings per share (1)
0.40
0.37
0.36
0.30
0.26
Common book value per share
20.84
20.25
19.66
19.25
20.14
Tangible book value per share (1)
17.89
17.34
16.80
16.40
17.30
Total assets (in thousands)
881,697
925,221
933,799
912,496
866,817
Return on average assets
0.92
%
0.94
%
0.94
%
0.83
%
0.61
%
Return on average equity
6.69
%
7.03
%
7.01
%
5.68
%
4.14
%
Equity to assets
14.41
%
13.55
%
13.29
%
13.40
%
14.90
%
Tangible equity to tangible assets (1)
12.62
%
11.83
%
11.58
%
11.65
%
13.08
%
Net interest margin
3.77
%
3.49
%
3.57
%
3.52
%
3.56
%
Efficiency ratio
63.55
%
64.96
%
65.72
%
68.55
%
75.95
%
(1) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.
Net Income
Results of Operations
Financial Condition
Asset Quality
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; the effects of an extended U.S. Government shutdown; 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 December 31,
2025
2024
Average
Outstanding
Balance
Interest
Average
Yield/Rate
Average
Outstanding
Balance
Interest
Average
Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans
$
740,016
$
11,814
6.33
%
$
704,198
$
10,774
6.09
%
Investment securities held-to-maturity
10,395
128
4.89
%
29,238
451
6.14
%
Investment securities available-for-sale
42,280
451
4.23
%
46,455
402
3.44
%
Interest-earning deposits and federal funds
70,417
673
3.79
%
44,260
495
4.45
%
Other investments
6,260
95
6.02
%
6,172
105
6.77
%
Total interest-earning assets
869,368
13,161
6.01
%
830,323
12,227
5.86
%
Non-interest-earning assets
46,429
47,331
Total assets
$
915,797
$
877,654
Interest-bearing liabilities:
Interest-bearing checking accounts
$
90,543
$
123
0.54
%
$
83,529
$
104
0.50
%
Money market accounts
167,973
1,228
2.90
%
152,305
1,264
3.30
%
Savings accounts
94,932
721
3.01
%
73,533
529
2.86
%
Certificates of deposit
229,503
2,312
4.00
%
214,165
2,272
4.22
%
Total interest-bearing deposits
582,951
4,384
2.98
%
523,532
4,169
3.17
%
FHLB advances and other borrowings
54,000
525
3.86
%
58,815
625
4.23
%
Total interest-bearing liabilities
636,951
4,909
3.06
%
582,347
4,794
3.27
%
Non-interest-bearing liabilities
152,362
166,088
Total liabilities
789,313
748,435
Total stockholders' equity
126,484
129,219
Total liabilities and stockholders' equity
$
915,797
$
877,654
Net interest rate spread
2.95
%
2.59
%
Net interest income
$
8,252
$
7,433
Net interest margin
3.77
%
3.56
%
For the Year Ended December 31,
2025
2024
Average
Outstanding
Balance
Interest
Average
Yield/Rate
Average
Outstanding
Balance
Interest
Average
Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans
$
728,818
$
44,876
6.16
%
$
687,487
$
41,349
6.01
%
Investment securities held-to-maturity
21,797
1,330
6.10
%
32,723
2,018
6.17
%
Investment securities available-for-sale
40,560
1,495
3.69
%
47,449
1,778
3.75
%
Interest-earning deposits and federal funds
70,591
2,926
4.15
%
49,385
2,459
4.98
%
Other investments
6,231
382
6.13
%
5,801
369
6.36
%
Total interest-earning assets
867,997
51,009
5.88
%
822,845
47,973
5.83
%
Non-interest-earning assets
47,708
49,505
Total assets
$
915,705
$
872,350
Interest-bearing liabilities:
Interest-bearing checking accounts
$
85,552
$
429
0.50
%
$
87,058
$
448
0.51
%
Money market accounts
165,222
4,950
3.00
%
147,049
4,760
3.24
%
Savings accounts
87,611
2,570
2.93
%
73,176
2,091
2.86
%
Certificates of deposit
242,720
9,831
4.05
%
217,517
9,157
4.21
%
Total interest-bearing deposits
581,105
17,780
3.06
%
524,800
16,456
3.14
%
FHLB advances and other borrowings
54,211
2,092
3.86
%
55,104
2,351
4.27
%
Total interest-bearing liabilities
635,316
19,872
3.13
%
579,904
18,807
3.24
%
Non-interest-bearing liabilities
154,016
166,702
Total liabilities
789,332
746,606
Total stockholders' equity
126,373
125,744
Total liabilities and stockholders' equity
$
915,705
$
872,350
Net interest rate spread
2.75
%
2.59
%
Net interest income
$
31,137
$
29,166
Net interest margin
3.59
%
3.54
%
AFFINITY BANCSHARES, INC.
Consolidated Balance Sheets
(unaudited)
December 31, 2025
December 31, 2024
(Dollars in thousands except per share amounts)
Assets
Cash and due from banks
$
6,924
$
7,092
Interest-earning deposits in other depository institutions
46,926
34,333
Cash and cash equivalents
53,850
41,425
Investment securities available-for-sale
38,759
36,502
Investment securities held-to-maturity (estimated fair value of $27,286 net of allowance for credit losses of $45 at December 31, 2024)
—
27,299
Other investments
6,264
6,175
Loans
742,682
714,115
Allowance for credit loss on loans
(8,994
)
(8,496
)
Net loans
733,688
705,619
Premises and equipment, net
2,836
3,261
Bank owned life insurance
17,161
16,487
Intangible assets
17,984
18,175
Other assets
11,155
11,874
Total assets
$
881,697
$
866,817
Liabilities and Stockholders' Equity
Liabilities:
Non-interest-bearing checking
$
132,796
$
151,395
Interest-bearing checking
82,612
73,841
Money market accounts
157,439
148,752
Savings accounts
96,981
76,053
Certificates of deposit
225,177
223,440
Total deposits
695,005
673,481
Federal Home Loan Bank advances and other borrowings
54,000
58,815
Accrued interest payable and other liabilities
5,673
5,406
Total liabilities
754,678
737,702
Stockholders' equity:
Common stock (par value $0.01 per share, 40,000,000 shares authorized;
6,095,631 issued and outstanding at December 31, 2025 and 6,409,598 issued and outstanding at December 31, 2024)
61
64
Preferred stock (10,000,000 shares authorized, no shares outstanding)
—
—
Additional paid in capital
58,069
62,355
Unearned ESOP shares
(3,570
)
(4,378
)
Retained earnings
76,111
76,786
Accumulated other comprehensive loss
(3,652
)
(5,712
)
Total stockholders' equity
127,019
129,115
Total liabilities and stockholders' equity
$
881,697
$
866,817
AFFINITY BANCSHARES, INC.
Consolidated Statements of Income
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
(Dollars in thousands except per share amounts)
Interest income:
Loans, including fees
$
11,814
$
10,774
$
44,876
$
41,349
Investment securities
674
958
3,207
4,165
Interest-earning deposits
673
495
2,926
2,459
Total interest income
13,161
12,227
51,009
47,973
Interest expense:
Deposits
4,384
4,169
17,780
16,456
FHLB advances and other borrowings
525
625
2,092
2,351
Total interest expense
4,909
4,794
19,872
18,807
Net interest income before provision for credit losses
8,252
7,433
31,137
29,166
Provision for credit losses
46
225
125
438
Net interest income after provision for credit losses
8,206
7,208
31,012
28,728
Noninterest income:
Service charges on deposit accounts
364
371
1,384
1,520
Loss on sales of investment securities available for sale and held to maturity
(260
)
(385
)
(260
)
(385
)
Net gain on sale of other real estate owned
—
—
—
135
Other
211
175
800
745
Total noninterest income
315
161
1,924
2,015
Noninterest expenses:
Salaries and employee benefits
3,090
3,273
12,904
13,126
Occupancy
586
617
2,368
2,451
Data processing
579
549
2,203
2,087
Other
1,189
1,329
4,224
6,097
Total noninterest expenses
5,444
5,768
21,699
23,761
Income before income taxes
3,077
1,601
11,237
6,982
Income tax expense
945
256
2,905
1,541
Net income
$
2,132
$
1,345
$
8,332
$
5,441
Weighted average common shares outstanding
Basic
6,136,126
6,411,014
6,277,003
6,414,182
Diluted
6,322,749
6,620,602
6,445,771
6,575,406
Basic earnings per share
$
0.35
$
0.21
$
1.33
$
0.85
Diluted earnings per share
$
0.34
$
0.20
$
1.29
$
0.83
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
For the Year Ended
Non-GAAP Reconciliation
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Operating net income reconciliation
Net income (GAAP)
$
2,132
$
2,217
$
2,152
$
1,831
$
1,345
$
8,332
$
5,441
Net loss on securities available for sale and held to maturity
260
—
—
—
385
260
385
ESOP Compensation expense related to dividend
225
220
210
211
—
866
—
Merger-related expenses
—
—
—
—
119
—
1,304
Income tax expense
(107
)
(48
)
(46
)
(46
)
(111
)
(247
)
(372
)
Operating net income
$
2,510
$
2,389
$
2,316
$
1,996
$
1,738
$
9,211
$
6,758
Weighted average diluted shares
6,322,749
6,427,697
6,457,397
6,547,817
6,620,602
6,445,771
6,575,406
Adjusted diluted earnings per share
$
0.40
$
0.37
$
0.36
$
0.30
$
0.26
$
1.43
$
1.03
Tangible book value per common share reconciliation
Book Value per common share (GAAP)
$
20.84
$
20.25
$
19.66
$
19.25
$
20.14
$
20.84
$
20.14
Effect of goodwill and other intangibles
(2.95
)
(2.91
)
(2.86
)
(2.85
)
(2.84
)
(2.95
)
(2.84
)
Tangible book value per common share
$
17.89
$
17.34
$
16.80
$
16.40
$
17.30
$
17.89
$
17.30
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)
14.41
%
13.55
%
13.29
%
13.40
%
14.90
%
14.41
%
14.90
%
Effect of goodwill and other intangibles
(1.79
)%
(1.72
)%
(1.71
)%
(1.75
)%
(1.81
)%
(1.79
)%
(1.81
)%
Tangible equity to tangible assets (1)
12.62
%
11.83
%
11.58
%
11.65
%
13.08
%
12.62
%
13.08
%
(1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets.