SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of Affinity Bancshares, Inc. – AFBI
- NEW YORK, July 16, 2024 (GLOBE NEWSWIRE) -- Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Affinity Bancshares, Inc. ( Nasdaq : AFBI ) , relating to its proposed merger with Atlanta Postal Credit Union (“APCU”). Under the terms of the agreement, APCU will pay Affinity an aggregate amount estimated to provide Affinity with sufficient cash to pay Affinity shareholders $22.50 per share, subject to potential increase for levels of tax payments.
- 07/16/2024
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SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of Affinity Bancshares, Inc. - AFBI
- NEW YORK , July 15, 2024 /PRNewswire/ -- Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Affinity Bancshares, Inc. (Nasdaq: AFBI ), relating to its proposed merger with Atlanta Postal Credit Union ("APCU").
- 07/15/2024
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AFBI Stock Alert: Halper Sadeh LLC Is Investigating Whether the Sale of Affinity Bank Is Fair to Shareholders
- NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of Affinity Bank, a wholly-owned subsidiary of Affinity Bancshares, Inc. (NASDAQ: AFBI), to Atlanta Postal Credit Union is fair to Affinity shareholders. The transaction is structured as a purchase and assumption agreement whereby Atlanta Postal is expected to acquire substantially all assets and assume substantially all liabilities of Affinity Bank in an all-cash transaction. Halper Sade.
- 05/30/2024
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APCU/Center Parc Credit Union Announces Definitive Agreement to Acquire Affinity Bank
- ATLANTA--(BUSINESS WIRE)--APCU/Center Parc Credit Union Announces Definitive Agreement to Acquire Affinity Bank.
- 05/30/2024
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Affinity Bancshares, Inc. Announces First Quarter 2024 Financial Results
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. Announces First Quarter 2024 Financial Results.
- 04/26/2024
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Affinity Bancshares, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results.
- 02/01/2024
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Affinity Bancshares, Inc. Announces Third Quarter 2023 Financial Results
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. Announces Third Quarter 2023 Financial Results.
- 10/26/2023
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Affinity Bancshares, Inc. Announces Second Quarter 2023 Financial Results
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. Announces Second Quarter 2023 Financial Results.
- 07/27/2023
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Affinity Bancshares, Inc. Announces First Quarter 2023 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 $1.7 million for the three months ended March 31, 2023, as compared to $1.8 million for the three months ended March 31, 2022. At or for the three months ended, Performance Ratios: March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Net income (in thousands) $ 1,722 $ 1,699 $ 1,861 $ 1,783 $ 1,791 Diluted earnings per share 0.26 0.26 0.27 0.27 0.26 Common book value per share 18.02 17.73 17.37 17.51 17.58 Tangible book value per share (1) 15.20 14.92 14.57 14.68 14.75 Total assets (in thousands) 932,302 791,283 776,390 766,679 760,208 Return on average assets 0.84 % 0.84 % 0.95 % 0.95 % 0.97 % Return on average equity 5.90 % 5.78 % 6.30 % 6.13 % 5.97 % Equity to assets 12.69 % 14.80 % 14.84 % 15.05 % 15.31 % Tangible equity to tangible assets (1) 10.92 % 12.75 % 12.75 % 12.93 % 13.17 % Net interest margin 3.58 % 3.85 % 4.12 % 4.06 % 4.47 % Efficiency ratio 69.73 % 71.38 % 67.62 % 67.23 % 69.00 % (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 $1.7 million for the three months ended March 31, 2023, as compared to $1.8 million for the three months ended March 31, 2022, as a result of an increase in deposit interest expense offset by an increase in interest income and decreases in noninterest expenses. Operating net income was $1.7 million and $0.26 diluted earnings per share for the three months ended March 31, 2023, as compared to $1.5 million and $0.22 diluted earnings per share for the three months ended March 31, 2022. Results of Operations Net interest income was $6.9 million for the three months ended March 31, 2023 compared to $7.8 million for the three months ended March 31, 2022, due to an increase in deposit costs and recognition of remaining purchase accounting fair value discounts upon the payoff of acquired Federal Home Loan Bank (FHLB) advances in the first quarter of 2022, partially offset by an increase in interest income on loans. Net interest margin for the three months ended March 31, 2023 decreased to 3.58% from 4.53% for the three months ended March 31, 2022. The Company anticipates it will experience continued margin compression in 2023 as a result of recent increases in market interest rates along with the mark on the FHLB advances from acquisition that was recognized upon payoff in first quarter 2022. Noninterest income was $552 thousand for the three months ended March 31, 2023 and $595 thousand for the three months ended March 31, 2022. The decrease was attributable to a decrease in mortgage fee income. Non-interest expense was $5.2 million and $5.8 million for the three months ended March 31, 2023 and 2022, respectively. The decrease was a result of the FHLB prepayment penalties paid in first quarter 2022. Financial Condition Total assets increased $141.0 million to $932.3 million at March 31, 2023 from $791.3 million at December 31, 2022 to further enhance liquidity. Total net loans increased $15.3 million to $652.2 million at March 31, 2023 from $636.9 million at December 31, 2022. The increase was due to steady loan demand. Non-owner occupied office loans totaled $26.2 million at March 31, 2023; average LTV on these loans is 45%; $10.4 million medical/ dental tenants $15.8 million to other various tenants. $10.4 million medical/ dental tenants $15.8 million to other various tenants. Investment securities held-to-maturity unrealized losses were $1.3 million, net of tax. Investment securities available-for-sale unrealized losses were $6.2 million, net of tax. Cash and cash equivalents increased to $136.9 million at March 31, 2023 from $26.3 million at December 31, 2023, primarily due to an increase in deposits. Deposits increased by $93.6 million to $750.8 million at March 31, 2023 compared to $657.2 million at December 31, 2022, in part due to increases in certificates of deposits of $116.2 million offset by $22.6 million decreases in non-time deposits, as customers increased deposits in higher-yielding accounts during the current interest rate environment. The certificates of deposits increase included brokered deposits totaling $85.6 million with an average life of three years and an average interest rate of 5.07%. Uninsured deposits were approximately $91.9 million and represented 12.1% of total deposits. Borrowings increased by $45.0 million to $55.0 million at March 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 $6.9 million at March 31, 2023 from $6.7 million at December 31, 2022. The allowance for credit losses as a percentage of non-performing loans was 145.49% at March 31, 2023, as compared to 138.8% at December 31, 2022. Allowance for credit losses decreased to 1.40% at March 31, 2023 from 1.46% of total loans at December 31, 2022. Net loan charge-offs were $91 thousand for the three months ended March 31, 2023, as compared to $3 thousand for the three months ended March 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; 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, 2023 2022 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 651,750 $ 8,291 5.16 % $ 586,762 $ 6,996 4.84 % Investment securities held-to-maturity 32,898 503 6.20 % — — — Investment securities available-for-sale 48,844 411 3.41 % 48,648 260 2.14 % Interest-earning deposits and federal funds 45,758 488 4.32 % 48,231 17 0.14 % Other investments 2,643 35 5.39 % 1,000 6 2.33 % Total interest-earning assets 781,893 9,728 5.05 % 684,641 7,279 4.25 % Non-interest-earning assets 51,044 62,343 Total assets 832,937 $ 746,984 Interest-bearing liabilities: Interest-bearing checking accounts $ 91,856 $ 45 0.20 % $ 96,273 $ 42 0.17 % Money market accounts 139,495 661 1.92 % 144,455 88 0.25 % Savings accounts 95,897 552 2.34 % 86,195 83 0.38 % Certificates of deposit 149,058 1,056 2.87 % 94,465 290 1.23 % Total interest-bearing deposits 476,306 2,314 1.97 % 421,388 503 0.48 % FHLB advances and other borrowings 46,723 516 4.48 % 8,821 (975 ) (44.20 )% Total interest-bearing liabilities 523,029 2,830 2.19 % 430,209 (472 ) (0.44 )% Non-interest-bearing liabilities 191,659 195,024 Total liabilities 714,688 625,233 Total stockholders' equity 118,249 121,751 Total liabilities and stockholders' equity $ 832,937 $ 746,984 Net interest rate spread 2.86 % 4.69 % Net interest income $ 6,898 $ 7,751 Net interest margin 3.58 % 4.53 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets (unaudited) March 31, 2023 December 31, 2022 (Dollars in thousands except per share amounts) Assets Cash and due from banks $ 5,714 $ 2,928 Interest-earning deposits in other depository institutions 131,172 23,396 Cash and cash equivalents 136,886 26,324 Investment securities available-for-sale 51,154 46,200 Investment securities held-to-maturity (estimated fair value of $32,507) 34,119 26,527 Other investments 2,996 1,082 Loans, net 652,192 636,909 Other real estate owned 2,901 2,901 Premises and equipment, net 4,156 4,257 Bank owned life insurance 15,811 15,724 Intangible assets 18,510 18,558 Other assets 13,577 12,801 Total assets $ 932,302 $ 791,283 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 183,862 $ 190,297 Interest-bearing checking 97,537 91,167 Money market accounts 134,872 148,097 Savings accounts 92,382 101,622 Certificates of deposit 242,186 125,989 Total deposits 750,839 657,172 Federal Home Loan Bank advances and other borrowings 55,000 10,025 Accrued interest payable and other liabilities 8,153 6,983 Total liabilities 813,992 674,180 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,566,137 issued and outstanding at March 31, 2023 and 6,605,384 issued and outstanding at December 31, 2022) 66 66 Preferred stock (10,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 62,549 63,130 Unearned ESOP shares (4,743 ) (4,795 ) Retained earnings 66,619 65,357 Accumulated other comprehensive loss (6,181 ) (6,655 ) Total stockholders' equity 118,310 117,103 Total liabilities and stockholders' equity $ 932,302 $ 791,283 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended March 31, 2023 2022 (Dollars in thousands except per share amounts) Interest income: Loans, including fees $ 8,291 $ 6,996 Investment securities 949 266 Interest-earning deposits 488 17 Total interest income 9,728 7,279 Interest expense: Deposits 2,314 503 FHLB advances and other borrowings 516 (975 ) Total interest expense 2,830 (472 ) Net interest income before provision for credit losses 6,898 7,751 Provision for credit losses 7 250 Net interest income after provision for credit losses 6,891 7,501 Noninterest income: Service charges on deposit accounts 391 392 Other 161 203 Total noninterest income 552 595 Noninterest expenses: Salaries and employee benefits 3,004 3,008 Occupancy 644 582 Advertising 97 80 Data processing 493 494 FHLB prepayment penalties — 647 Other 956 947 Total noninterest expenses 5,194 5,758 Income before income taxes 2,249 2,338 Income tax expense 527 547 Net income $ 1,722 $ 1,791 Weighted average common shares outstanding Basic 6,599,672 6,806,405 Diluted 6,681,680 6,908,665 Basic earnings per share $ 0.26 $ 0.26 Diluted earnings per share $ 0.26 $ 0.26 Explanation of Certain Unaudited Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table below for details on the earnings impact of these items. At or For the Period Ending Non-GAAP Reconciliation March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Operating net income reconciliation Net income (GAAP) $ 1,722 $ 1,699 $ 1,861 $ 1,783 $ 1,791 FHLB mark from called borrowings — — — — 988 FHLB prepayment penalties — — — — 647 Income tax expense — — — — (87 ) Operating net income $ 1,722 $ 1,699 $ 1,861 $ 1,783 $ 1,537 Weighted average diluted shares 6,681,680 6,708,922 6,752,152 6,684,721 6,908,665 Adjusted earnings per share $ 0.26 $ 0.26 $ 0.27 $ 0.27 $ 0.22 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 18.02 $ 17.73 $ 17.37 $ 17.51 $ 17.58 Effect of goodwill and other intangibles (2.82 ) (2.81 ) (2.80 ) (2.83 ) (2.83 ) Tangible book value per common share $ 15.20 $ 14.92 $ 14.57 $ 14.68 $ 14.75 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 12.69 % 14.80 % 14.84 % 15.05 % 15.31 % Effect of goodwill and other intangibles (1.77 )% (2.05 )% (2.09 )% (2.12 )% (2.14 )% Tangible equity to tangible assets (1) 10.92 % 12.75 % 12.75 % 12.93 % 13.17 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets.
- 04/27/2023
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Affinity Bancshares, Inc. Announces Fourth Quarter and Full Year 2022 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 $1.7 million for the three months ended December 31, 2022, as compared to $1.3 million for the three months ended December 31, 2021. For the year ended December 31, 2022, net income was $7.1 million, as compared to $7.6 million for the year ended December 31, 2021. At or for the three months ended, Performance Ratios: December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Net income (in thousands) $ 1,699 $ 1,861 $ 1,783 $ 1,791 $ 1,318 Diluted earnings per share 0.26 0.27 0.27 0.26 0.20 Common book value per share 17.73 17.37 17.51 17.58 17.60 Tangible book value per share (1) 14.92 14.57 14.68 14.75 14.87 Total assets (in thousands) 791,283 776,390 766,679 760,208 788,088 Return on average assets 0.84 % 0.95 % 0.95 % 0.97 % 0.66 % Return on average equity 5.78 % 6.30 % 6.13 % 5.97 % 4.36 % Equity to assets 14.80 % 14.84 % 15.05 % 15.31 % 15.35 % Tangible equity to tangible assets (1) 12.75 % 12.75 % 12.93 % 13.17 % 13.29 % Net interest margin 3.85 % 4.12 % 4.06 % 4.47 % 3.60 % Efficiency ratio 71.38 % 67.62 % 67.23 % 69.00 % 74.29 % (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 $1.7 million for the three months ended December 31, 2022, as compared to $1.3 million for the three months ended December 31, 2021, as a result of an increase in interest income partially offset by an increase in deposit interest expense. Net income was $7.1 million for the year ended December 31, 2022, as compared to $7.6 million for the year ended December 31, 2021, as a result of lower interest and fee income on PPP loans and an increase in salaries and employee benefits, partially offset by a decrease in interest expense primarily related to the recognition of remaining purchase accounting fair value discounts upon the payoff of acquired Federal Home Loan Bank advances. Results of Operations Net interest income was $7.3 million for the three months ended December 31, 2022 compared to $6.7 million for the three months ended December 31, 2021 due to an increase in loan interest, partially offset by a decrease in PPP loan-related interest and fee income. Net interest income was $29.8 million for the year ended December 31, 2022 compared to $29.3 million for the year ended December 31, 2021. The increase was a result of the recognition of remaining purchase accounting fair value discounts upon the payoff of acquired Federal Home Loan Bank advances, off set by the lower fee income on PPP loans. The Company’s net interest margin increased to 3.85% from 3.57% for the three months ended December 31, 2022 and 2021. Net interest margin for the year ended December 31, 2022 increased slightly to 4.14% from 4.04% for the year ended December 31, 2021. The Company anticipates it will experience margin compression in 2023 as a result of recent increases in market interest rates. Noninterest income was $566 thousand for the three months ended December 31, 2022 and $572 thousand for the three months ended December 31, 2021. For the year ended December 31, 2022, noninterest income was $2.4 million compared to $2.7 million for the year ended December 31, 2021. The decreases were a result of the Company recognizing gains on sale of other real estate and death benefits received from bank owned life insurance in previous periods. Non-interest expense was $5.6 million and $5.4 million for the three months ended December 31, 2022 and 2021, respectively. Non-interest expense was $22.1 million and $21.0 million for the year ended December 31, 2022 and 2021, respectively. The increases were due in part to the increases in salaries and employee benefits as a result of the Company’s strategic initiative to attract and retain talent. In fourth quarter, the Company implemented an arbitrage strategy where $31.5 million in securities with 6.05% average yield was purchased using funds of $34.9 million in brokered deposits with average yield of 4.50%. The brokered deposits have optional call dates ranging from six to twelve months. Financial Condition Total assets increased $3.2 million to $791.3 million at December 31, 2022 from $788.1 million at December 31, 2021. Total net loans increased $61.1 million to $636.9 million at December 31, 2022 from $575.8 million at December 31, 2021. The increase was due to non-PPP loans increasing $79 million, offset by a continuing decline in PPP loans as such loans continued to be repaid. Deposits increased by $44.4 million to $657.2 million at December 31, 2022 compared to $612.8 million at December 31, 2021, in part due to increases in CDs of $29.2 million and in savings of $14.9 million. Borrowings decreased by $39.0 million to $10.0 million at December 31, 2022 compared to $49.0 million at December 31, 2021 as we repaid Federal Home Loan Bank borrowings. Asset Quality Non-performing loans decreased to $6.7 million at December 31, 2022 from $7.0 million December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 138.8% at December 31, 2022, as compared to 122.7% at December 31, 2021. Allowance for loan losses remained consistent at 1.46% of total loans at December 31, 2022, and 2021. Net loan recoveries were $62,000 for the year ended December 31, 2022, as compared to $1.1 million for the year ended December 31, 2021. About Affinity Bancshares, Inc. The Company is a Maryland corporation based in Covington, Georgia. The Company’s banking subsidiary, Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets. Forward-Looking Statements In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describe the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in general economic conditions, interest rates and inflation; changes in asset quality; our ability to access cost-effective funding; fluctuations in real estate values; changes in laws or regulations; changes in technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; and the effects of natural disasters and geopolitical events, including terrorism, conflict and acts of war. These risks and other uncertainties are further discussed in the reports that the Company files with the Securities and Exchange Commission. Average Balance Sheets The following tables set forth average balance sheets, average annualized yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are monthly average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. For the Three Months Ended December 31, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 650,922 $ 8,032 4.90% $ 576,358 $ 7,060 4.86% Investment securities held-to-maturity 8,809 130 5.85% — — — Investment securities available-for-sale 42,653 323 3.00% 46,191 237 2.04% Interest-earning deposits and federal funds 53,238 485 3.61% 115,390 46 0.16% Other investments 758 8 4.19% 2,476 23 3.69% Total interest-earning assets 756,380 8,977 4.71% 740,415 7,366 3.95% Non-interest-earning assets 50,538 56,127 Total assets $ 806,918 $ 796,542 Interest-bearing liabilities: Interest-bearing checking accounts $ 95,200 $ 42 0.18% $ 90,924 $ 47 0.21% Money market accounts $ 161,901 470 1.15% 142,447 91 0.25% Savings accounts $ 103,772 499 1.91% 90,992 93 0.41% Certificates of deposit $ 117,102 610 2.07% 99,235 339 1.36% Total interest-bearing deposits $ 477,975 1,621 1.35% 423,598 570 0.53% FHLB advances and other borrowings $ 2,717 20 2.92% 49,007 132 1.07% Total interest-bearing liabilities $ 480,692 1,641 1.35% 472,605 702 0.59% Non-interest-bearing liabilities 209,683 203,108 Total liabilities 690,375 675,713 Total stockholders' equity 116,543 120,829 Total liabilities and stockholders' equity $ 806,918 $ 796,542 Net interest rate spread 3.36% 3.36% Net interest income $ 7,336 $ 6,664 Net interest-earning assets $ 275,688 $ 267,810 Net interest margin 3.85% 3.57% For the Year Ended December 31, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 624,908 $ 30,045 4.81% $ 588,976 $ 31,484 5.35% Investment securities held-to-maturity 2,220 130 5.86% — — — Investment securities available-for-sale 45,594 1,150 2.52% 35,109 709 2.02% Interest-earning deposits and federal funds 45,674 771 1.69% 98,554 180 0.18% Other investments 1,027 38 3.70% 2,324 80 3.43% Total interest-earning assets 719,423 32,134 4.47% 724,963 32,453 4.48% Non-interest-earning assets 51,397 63,373 Total assets $ 770,820 $ 788,336 Interest-bearing liabilities: Interest-bearing checking accounts $ 96,892 $ 176 0.18% $ 88,852 $ 185 0.21% Money market accounts 154,237 752 0.49% 133,835 469 0.35% Savings accounts 89,015 856 0.96% 93,113 403 0.43% Certificates of deposit 97,948 1,449 1.48% 110,742 1,623 1.47% Total interest-bearing deposits 438,092 3,233 0.74% 426,542 2,680 0.63% FHLB advances and other borrowings 9,887 (854) (8.64)% 44,811 497 1.11% Total interest-bearing liabilities 447,979 2,379 0.53% 471,353 3,177 0.67% Non-interest-bearing liabilities 204,842 200,756 Total liabilities 652,821 672,109 Total stockholders' equity 117,999 116,227 Total liabilities and stockholders' equity $ 770,820 $ 788,336 Net interest rate spread 3.94% 3.81% Net interest income $ 29,755 $ 29,276 Net interest-earning assets $ 271,443 $ 253,610 Net interest margin 4.14% 4.04% AFFINITY BANCSHARES, INC. Consolidated Balance Sheets (unaudited) December 31, 2022 December 31, 2021 (In thousands except share amounts) Assets Cash and due from banks $ 2,928 $ 16,239 Interest-earning deposits in other depository institutions 23,396 95,537 Cash and cash equivalents 26,324 111,776 Investment securities held-to-maturity (estimated fair value of $26,251) 26,527 — Investment securities available-for-sale 46,200 48,557 Other investments 1,082 2,476 Loans, net 636,909 575,825 Other real estate owned 2,901 3,538 Premises and equipment, net 4,257 3,783 Bank owned life insurance 15,724 15,377 Intangible assets 18,558 18,749 Other assets 12,801 8,007 Total assets $ 791,283 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 190,297 $ 193,940 Interest-bearing checking 91,167 89,384 Money market accounts 148,097 145,969 Savings accounts 101,622 86,745 Certificates of deposit 125,989 96,758 Total deposits 657,172 612,796 Federal Home Loan Bank advances and other borrowings 10,025 48,988 Accrued interest payable and other liabilities 6,983 5,336 Total liabilities 674,180 667,120 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,605,384 issued and outstanding at December 31, 2022 and 6,872,634 issued and outstanding at December 31, 2021) 66 69 Preferred stock (1,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 63,130 68,038 Unearned ESOP shares (4,795 ) (5,004 ) Retained earnings 65,357 58,223 Accumulated other comprehensive loss (6,655 ) (358 ) Total stockholders' equity 117,103 120,968 Total liabilities and stockholders' equity $ 791,283 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In thousands except per share amounts) Interest income: Loans, including fees $ 8,032 $ 7,060 $ 30,045 $ 31,484 Investment securities 461 260 1,318 789 Interest-earning deposits 485 46 771 180 Total interest income 8,978 7,366 32,134 32,453 Interest expense: Deposits 1,621 570 3,233 2,680 FHLB advances and other borrowings 20 132 (854 ) 497 Total interest expense 1,641 702 2,379 3,177 Net interest income before provision for loan losses 7,337 6,664 29,755 29,276 Provision for loan losses 50 100 704 1,075 Net interest income after provision for loan losses 7,287 6,564 29,051 28,201 Noninterest income: Service charges on deposit accounts 406 380 1,611 1,506 Other 160 192 791 1,172 Total noninterest income 566 572 2,402 2,678 Noninterest expenses: Salaries and employee benefits 3,002 2,866 12,221 10,663 Occupancy 725 606 2,523 2,935 Advertising 150 43 476 339 Data processing 471 457 1,947 1,975 Write-down of premises and equipment — 311 — 1,199 FHLB prepayment penalties — — 647 — Other 1,293 1,093 4,312 3,857 Total noninterest expenses 5,641 5,376 22,126 20,968 Income before income taxes 2,212 1,760 9,327 9,911 Income tax expense 513 442 2,193 2,338 Net income $ 1,699 $ 1,318 $ 7,134 $ 7,573 Weighted average common shares outstanding Basic 6,628,847 6,872,634 6,669,389 6,911,576 Diluted 6,708,922 6,956,955 6,761,771 6,969,402 Basic earnings per share $ 0.26 $ 0.19 $ 1.07 $ 1.10 Diluted earnings per share $ 0.26 $ 0.18 $ 1.06 $ 1.09 Explanation of Certain Unaudited Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table below for details on the earnings impact of these items. At or For the Period Ending Non-GAAP Reconciliation December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 17.73 $ 17.37 $ 17.51 $ 17.58 $ 17.60 Effect of goodwill and other intangibles (2.81 ) (2.80 ) (2.83 ) (2.83 ) (2.73 ) Tangible book value per common share $ 14.92 $ 14.57 $ 14.68 $ 14.75 $ 14.87 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.80 % 14.84 % 15.05 % 15.31 % 15.35 % Effect of goodwill and other intangibles (2.05 )% (2.09 )% (2.12 )% (2.14 )% (2.06 )% Tangible equity to tangible assets (1) 12.75 % 12.75 % 12.93 % 13.17 % 13.29 % (1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets.
- 02/10/2023
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Affinity Bancshares, Inc. Adopts Second Stock Repurchase Program
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. (the “Company”), the holding company for Affinity Bank, today announced that its Board of Directors has adopted a second stock repurchase program. Under the repurchase program, the Company may repurchase up to 331,997 shares of its common stock, or approximately 5% of the current outstanding shares. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares. 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 Certain statements contained herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “may,” “will,” “would,” “intend,” “believe,” “expect,” “plan,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. These statements are based upon the current beliefs and expectations of Company management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: the effects of any pandemic disease, natural disaster, war, act of terrorism, accident, or similar action or event; those related to the real estate and economic environment, particularly in the market areas in which the Company operates; fiscal and monetary policies of the U.S. Government; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; inflation; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov. The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above or other factors could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically disclaims any obligation to publicly release the results of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
- 10/31/2022
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Affinity Bancshares, Inc. Announces Third Quarter 2022 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 $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021. For the nine months ended September 30, 2022, net income was $5.4 million, as compared to $6.3 million for the nine months ended September 30, 2021. At or for the three months ended, Performance Ratios: September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Net income (in thousands) $ 1,861 $ 1,783 $ 1,791 $ 1,318 $ 1,805 Diluted earnings per share 0.27 0.27 0.26 0.20 0.26 Common book value per share 17.37 17.51 17.58 17.60 17.42 Tangible book value per share (1) 14.57 14.68 14.75 14.87 14.69 Total assets (in thousands) 776,390 766,679 760,208 788,088 789,965 Return on average assets 0.95 % 0.95 % 0.97 % 0.66 % 0.91 % Return on average equity 6.30 % 6.13 % 5.97 % 4.36 % 6.00 % Equity to assets 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Tangible equity to tangible assets (1) 12.75 % 12.93 % 13.17 % 13.29 % 13.08 % Net interest margin 4.12 % 4.06 % 4.47 % 3.60 % 3.74 % Efficiency ratio 67.62 % 67.23 % 69.00 % 74.29 % 65.87 % (1) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP. Net Income Net income was $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan-related interest and fee income, partially offset by a decrease in interest expense. Net income was $5.4 million for the nine months ended September 30, 2022, as compared to $6.3 million for the nine months ended September 30, 2021, as a result of lower interest and fee income on PPP loans, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. Results of Operations Net interest income was $7.5 million for the three months ended September 30, 2022 compared to $6.9 million for the three months ended September 30, 2021 due to an increase in loan interest, partially offset by a decrease in PPP loan-related interest and fee income. Net interest income was $22.4 million for the nine months ended September 30, 2022 compared to $22.6 million for the nine months ended September 30, 2021. The decrease for the nine months ended September 30, 2022 compared to the same period in 2021 was a result of a decrease in PPP loan-related interest and fee income, partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. The Company’s net interest margin increased to 4.12% from 3.78% for the three months ended September 30, 2022 and 2021. Net interest margin for the nine months ended September 30, 2022 increased slightly to 4.24% from 4.17% for the nine months ended September 30, 2021. Noninterest income was $593 thousand for the three months ended September 30, 2022 and $771 thousand for the three months ended September 30, 2021. For the nine months ended September 30, 2022, noninterest income was $1.8 million compared to $2.1 million for the nine months ended September 30, 2021. The decreases were a result of the Company recognizing gains on sale of other real estate and death benefits received from bank owned life insurance in previous periods. Non-interest expense was $5.5 million and $5.0 million for the three months ended September 30, 2022 and 2021. Non-interest expense was $16.5 million and $15.6 million for the nine months ended September 30, 2022 and 2021. The increases were due in part to the increases in salaries and employee benefits as a result of the Company’s strategic initiative to attract and retain talent. Financial Condition Total assets decreased $11.7 million to $776.4 million at September 30, 2022 from $788.1 million at December 31, 2021. Total net loans increased $65.3 million to $641.1 million at September 30, 2022 from $575.8 million at December 31, 2021 due primarily to strategic lending staff hires made to diversify our loan portfolio. Deposits increased by $31.2 million to $646.0 million at September 30, 2022 compared to $614.8 million at December 31, 2021. Borrowings decreased by $39.0 million to $10.0 million at September 30, 2022 compared to $49.0 million at December 31, 2021 as we repaid Federal Home Loan Bank borrowings. Asset Quality Non-performing loans remained unchanged at $7.0 million at September 30, 2022 and December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 132.8% at September 30, 2022, as compared to 122.1% at December 31, 2021. Allowance for loan losses was 1.43% of total loans at September 30, 2022, as compared to 1.46% of total loans at December 31, 2021. Net loan recoveries were $108,000 for the nine months ended September 30, 2022, as compared to $295,000 for the nine months ended September 30, 2021. About Affinity Bancshares, Inc. The Company is a Maryland corporation based in Covington, Georgia. The Company’s banking subsidiary, Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets. Forward-Looking Statements In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describe the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in general economic conditions, interest rates and inflation; changes in asset quality; our ability to access cost-effective funding; fluctuations in real estate values; changes in laws or regulations; changes in technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; and the effects of natural disasters and geopolitical events, including terrorism, conflict and acts of war. These risks and other uncertainties are further discussed in the reports that the Company files with the Securities and Exchange Commission. Average Balance Sheets The following tables set forth average balance sheets, average annualized yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are monthly average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. For the Three Months Ended September 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 639,115 $ 7,734 4.80 % $ 568,442 $ 7,332 5.12 % Securities 44,690 289 2.56 % 40,569 216 2.13 % Interest-earning deposits 39,384 189 1.91 % 115,330 53 0.18 % Other investments 1,163 12 4.19 % 2,476 21 3.37 % Total interest-earning assets 724,352 8,224 4.50 % 726,817 7,622 4.19 % Non-interest-earning assets 49,770 64,408 Total assets $ 774,122 $ 791,225 Interest-bearing liabilities: Interest-bearing checking accounts $ 98,473 $ 47 0.19 % $ 83,519 $ 43 0.21 % Market rate checking accounts 159,478 100 0.25 % 136,984 117 0.34 % Savings accounts 83,484 187 0.89 % 93,717 100 0.43 % Certificates of deposit 89,871 291 1.28 % 105,285 369 1.40 % Total interest-bearing deposits 431,306 625 0.57 % 419,505 629 0.60 % FHLB advances 13,696 73 2.12 % 49,039 132 1.07 % Total interest-bearing liabilities 445,002 698 0.62 % 468,544 761 0.65 % Non-interest-bearing liabilities 211,986 203,336 Total liabilities 656,988 671,880 Total stockholders' equity 117,134 119,345 Total liabilities and stockholders' equity $ 774,122 $ 791,225 Net interest rate spread 3.88 % 3.54 % Net interest income $ 7,526 $ 6,861 Net interest-earning assets $ 279,350 $ 258,273 Net interest margin 4.12 % 3.78 % For the Nine Months Ended September 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 616,141 $ 22,013 4.78 % $ 596,024 $ 24,424 5.48 % Securities 46,585 827 2.37 % 31,374 472 2.01 % Interest-earning deposits 43,125 286 0.89 % 92,880 134 0.19 % Other investments 1,117 30 3.57 % 2,273 57 3.32 % Total interest-earning assets 706,968 23,156 4.38 % 722,551 25,087 4.63 % Non-interest-earning assets 51,687 63,028 Total assets $ 758,655 $ 785,579 Interest-bearing liabilities: Interest-bearing checking accounts $ 97,463 $ 134 0.18 % $ 88,154 $ 138 0.21 % Market rate checking accounts 151,654 282 0.25 % 130,933 378 0.39 % Savings accounts 84,042 356 0.57 % 93,823 310 0.44 % Certificates of deposit 91,493 840 1.23 % 114,623 1,284 1.49 % Total interest-bearing deposits 424,652 1,612 0.51 % 427,533 2,110 0.66 % FHLB advances 12,304 (875 ) (9.50 )% 41,471 350 1.13 % Other borrowings 46 1 3.43 % 1,927 15 1.01 % Total interest-bearing liabilities 437,002 738 0.23 % 470,931 2,475 0.69 % Non-interest-bearing liabilities 203,164 199,971 Total liabilities 640,166 670,902 Total stockholders' equity 118,489 114,677 Total liabilities and stockholders' equity $ 758,655 $ 785,579 Net interest rate spread 4.15 % 3.94 % Net interest income $ 22,418 $ 22,612 Net interest margin 4.24 % 4.17 % AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2022 December 31, 2021 (unaudited) (In thousands) Assets Cash and due from bank $ 6,887 $ 16,239 Interest-earning deposits in other depository institutions 33,619 95,537 Cash and cash equivalents 40,506 111,776 Investment securities available-for-sale 41,878 48,557 Other investments 1,025 2,476 Loans, net 641,062 575,825 Other real estate owned 3,538 3,538 Premises and equipment, net 4,069 3,783 Bank owned life insurance 15,637 15,377 Intangible assets 18,606 18,749 Other assets 10,069 8,007 Total assets $ 776,390 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Non-interest-bearing checking $ 204,781 $ 193,940 Interest-bearing checking 93,235 91,387 Market rate checking 160,377 145,969 Savings accounts 88,840 86,745 Certificates of deposit 98,784 96,758 Total deposits 646,017 614,799 Federal Home Loan Bank advances 10,000 48,988 Accrued interest payable and other liabilities 5,152 3,333 Total liabilities 661,169 667,120 Stockholders' equity: Preferred stock (10,000,000 shares authorized, no shares outstanding at September 30, 2022 and December 31, 2021) — — Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,634,885 issued and outstanding at September 30, 2022 and 6,872,634 issued and outstanding at December 31, 2021) 65 69 Additional paid in capital 63,289 68,038 Unearned ESOP shares (4,847 ) (5,004 ) Retained earnings 63,658 58,223 Accumulated other comprehensive loss (6,944 ) (358 ) Total stockholders' equity 115,221 120,968 Total liabilities and stockholders' equity $ 776,390 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Interest income: Loans, including fees $ 7,734 $ 7,332 $ 22,013 $ 24,424 Investment securities 301 237 857 529 Interest-earning deposits 189 53 286 134 Total interest income 8,224 7,622 23,156 25,087 Interest expense: Deposits 625 629 1,612 2,110 Borrowings 73 132 (874 ) 365 Total interest expense 698 761 738 2,475 Net interest income before provision for loan losses 7,526 6,861 22,418 22,612 Provision for loan losses 187 225 654 975 Net interest income after provision for loan losses 7,339 6,636 21,764 21,637 Noninterest income: Service charges on deposit accounts 420 416 1,205 1,126 Other 173 355 631 980 Total noninterest income 593 771 1,836 2,106 Noninterest expenses: Salaries and employee benefits 3,187 2,777 9,219 7,797 Occupancy 675 633 1,798 2,329 Advertising 128 116 326 296 Data processing 486 520 1,476 1,518 Writedown of premises and equipment — 14 — 888 FHLB prepayment penalties — — 647 — Other 1,014 967 3,019 2,764 Total noninterest expenses 5,490 5,027 16,485 15,592 Income before income taxes 2,442 2,380 7,115 8,151 Income tax expense 581 575 1,680 1,896 Net income $ 1,861 $ 1,805 $ 5,435 $ 6,255 Weighted average common shares outstanding Basic Diluted Basic earnings per share $ 0.28 $ 0.26 $ 0.81 $ 0.90 Diluted earnings per share $ 0.27 $ 0.26 $ 0.80 $ 0.89 Explanation of Certain Unaudited Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table below for details on the earnings impact of these items. Non-GAAP Reconciliation September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Tangible book value per common share reconciliation Book Value per common share (GAAP) $ 17.37 $ 17.51 $ 17.58 $ 17.60 $ 17.42 Effect of goodwill and other intangibles (2.80 ) (2.83 ) (2.83 ) (2.73 ) (2.73 ) Tangible book value per common share $ 14.57 $ 14.68 $ 14.75 $ 14.87 $ 14.69 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 14.84 % 15.05 % 15.31 % 15.35 % 15.15 % Effect of goodwill and other intangibles (2.09 )% (2.12 )% (2.14 )% (2.06 )% (2.07 )% Tangible equity to tangible assets 12.75 % 12.93 % 13.17 % 13.29 % 13.08 %
- 10/26/2022
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Affinity Bancshares, Inc. Announces Second Quarter 2022 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 $1.8 million for the three months ended June 30, 2022 as compared to $2.3 million for the three months ended June 30, 2021. For the six months ended June 30, 2022, net income was $3.6 million as compared to $4.5 million for the six months ended June 30, 2021. For the three months ended, Performance Ratios: June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 Return on average assets (1) 0.95% 0.97% 0.66% 0.91% 1.18% Return on average equity (1) 6.13% 5.97% 4.36% 6.00% 7.95% Net interest margin (1) 4.06% 4.47% 3.60% 3.74% 4.06% Efficiency ratio 67.23% 69.00% 74.29% 65.87% 58.30% (1) Annualized. Results of Operations Net income was $1.8 million for the three months ended June 30, 2022, as compared to $2.3 million for the three months ended June 30, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan related interest and fee income as we have been receiving forgiveness payments for these loans partially offset by a decrease in interest expense. Net income was $3.6 million for the six months ended June 30, 2022, as compared to $4.5 million for the six months ended June 30, 2021, as a result of lower interest and fee income on PPP loans partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. Net Interest Income and Margin Net interest income decreased $269,000, and was $7.1 million for the three months ended June 30, 2022, compared to $7.4 million for the three months ended June 30, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan related interest and fee income as we have been receiving forgiveness payments for these loans partially offset by a decrease in interest expense. Net interest income decreased $859,000, and was $14.9 million for the six months ended June 30, 2022, compared to $15.8 million for the six months ended June 30, 2021, as a result of a decrease in PPP loan related interest and fee income as we have been receiving forgiveness payments for these loans partially offset by a decrease in interest expense primarily related to the recognition of remaining discounts upon the payoff of acquired Federal Home Loan Bank advances. Average interest-earning assets decreased by $27.1 million, and was $702.9 million for the three months ended June 30, 2022, compared to $730.0 for the three months ended June 30, 2021. Average interest-earning assets decreased by $29.1 million, and was $698.1 million for the six months ended June 30, 2022, compared to $727.2 million for the six months ended June 30, 2021. This decrease was a result of the decrease in PPP loans as forgiveness payments were received for both the three- and six-month periods ended June 30, 2022. The Company’s net interest margin remained constant at 4.06% for the three months ended June 30, 2022, and June 30, 2021. Net interest margin for the six months ended June 30, 2022, decreased to 4.27% from 4.33% for the six months ended June 30, 2021. For the three months ended June 30, 2022, the cost of average interest-bearing liabilities decreased to 0.47% from 0.70% for the three months ended June 30, 2021, as a result of paying off Federal Home Loan Bank advances and decreasing deposit rates related to the decrease in market rates. For the six months ended June 30, 2022, the cost of average interest-bearing liabilities decreased to 0.02% from 0.72% for the six months ended June 30, 2021, as a result of paying off Federal Home Loan Bank advances and recognizing $1.0 million in accretion from fair value adjustments on acquired advances. The total cost of deposits was 0.46% for the three months ended June 30, 2022, compared to 0.65% for the three months ended June 30, 2021. For the six months ended June 30, 2022, the total cost of deposits was 0.47% compared to 0.69% for the six months ended June 30, 2021. The decrease was due to decreasing deposit rates related to the decrease in market rates for both the three- and six-month periods ended June 30, 2022. Provision for Loan Losses For the three months ended June 30, 2022, the provision for loan loss expense was $217,000 compared to $300,000 for the three months ended June 30, 2021. For the six months ended June 30, 2022, the provision for loan loss expense was $467,000 compared to $750,000 for the six months ended June 30, 2021. We increased our provision expense in 2021 due to the uncertainty related to the COVID-19 pandemic. We continue to assess current economic conditions when determining the level of provision expense. Net loan charge offs were $25,000 for the six months ended June 30, 2022, compared to net loan recoveries of $276,000 for the six months ended June 30, 2021. Non-interest Income For the three months ended June 30, 2022, noninterest income increased $42,000 to $648,000 compared to $606,000 for the three months ended June 30, 2021. For the six months ended June 30, 2022, noninterest income decreased $91,000 to $1.2 million compared to $1.3 million for the six months ended June 30, 2021. This was a result of the decrease in other non-interest income as income was received in 2021 for a bank-owned life insurance death benefit claim and no such benefit claim was received in 2022. Non-interest Expense Operating expenses increased $564,000, and were $5.2 million for the three months ended June 30, 2022, compared to $4.7 million for the three months ended June 30, 2021. For the six months ended June 30, 2022, operating expenses increased $431,000, and were $11.0 million for the six months ended June 30, 2022, compared to $10.6 million for the six months ended June 30, 2021. The increase in salaries and employee benefits were due to the Company’s strategic initiative to attract and retain talent for both the three- and six-month periods ended June 30, 2022. Income Tax Expense We recorded income tax expense of $552,000 for three months ended June 30, 2022, compared to $725,000 for the three months ended June 30, 2021. For the six months ended June 30, 2022, income tax expense was $1.1 million compared to $1.3 million for the six months ended June 30, 2021. The lower tax expense for both the three- and six-month periods ended June 30, 2022, was primarily due to lower pretax income. Financial Condition Total assets decreased by $21.4 million to $766.7 million at June 30, 2022, from $788.1 million at December 31, 2021. The decrease was due primarily to a decrease in cash and cash equivalents of $56.4 million due to paying off Federal Home Loan Bank advances, partially offset by an increase in net loans. Cash and equivalents decreased $56.4 million, to $55.0 million at June 30, 2022, from $111.8 million at December 31, 2021, as excess liquidity was utilized to payoff Federal Home Loan Bank advances. Total investment securities available for sale decreased by $4.0 million at June 30, 2022, as compared to December 31, 2021, as our unrealized loss on the investment portfolio increased due to the rise in interest rates. Total net loans increased $38.5 million to $614.4 million at June 30, 2022 from $575.8 million at December 31, 2021, including Paycheck Protection Program (PPP) loans of $916,000 and $17.9 million at June 30, 2022 and December 31, 2021, respectively. Loans increased due to our continued success with our strategic initiatives to grow organically and diversify our loan portfolio. This includes adding additional lenders to our business development team. Deposits increased by $11.4 million to $626.2 million at June 30, 2022 compared to $614.8 million at December 31, 2021, which reflected an increase in interest-bearing, market rate, and non-interest-bearing deposits of $23.0 million. The loan-to-deposit ratio at June 30, 2022 was 98.1%, as compared to 93.7% at December 31, 2021. Stockholders’ equity decreased to $115.4 million at June 30, 2022, as compared to $121.0 million at December 31, 2021, primarily due to the decrease in additional paid in capital from the repurchase of 308,602 shares of common stock totaling $4.8 million with an average price per share of $15.48 as well as an increase in accumulated other comprehensive loss related to our investment portfolio. Asset Quality The Company’s non-performing loans remained constant at $7.0 million at June 30, 2022 and December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 129.5% at June 30, 2022, as compared to 122.1% at December 31, 2021. The Company’s allowance for loan losses was 1.44% of total loans at June 30, 2022, as compared to 1.46% of total loans at December 31, 2021. About Affinity Bancshares, Inc. The Company is a Maryland corporation based in Covington, Georgia. The Company’s banking subsidiary, Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets. Forward-Looking Statements In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describe the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in general economic conditions, interest rates and inflation; changes in asset quality; our ability to access cost-effective funding; fluctuations in real estate values; changes in laws or regulations; changes in technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; and the effects of natural disasters and geopolitical events. 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 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 June 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans excluding PPP loans $ 609,646 $ 7,212 4.73 % $ 505,912 $ 6,310 4.99 % PPP loans 3,750 71 7.58 % 107,154 1,687 6.30 % Securities 46,461 279 2.40 % 29,619 163 2.20 % Interest-earning deposits 41,856 79 0.76 % 84,950 39 0.18 % Other investments 1,187 12 3.95 % 2,346 18 3.06 % Total interest-earning assets 702,900 7,653 4.36 % 729,981 8,217 4.50 % Non-interest-earning assets 51,662 57,220 Total assets $ 754,562 $ 787,201 Interest-bearing liabilities: Savings accounts $ 82,478 87 0.42 % $ 93,598 103 0.44 % Interest-bearing checking accounts 97,618 45 0.19 % 84,571 44 0.21 % Market rate checking accounts 150,863 93 0.25 % 131,466 128 0.39 % Certificates of deposit 90,194 259 1.15 % 108,936 409 1.50 % Total interest-bearing deposits 421,153 484 0.46 % 418,571 684 0.65 % FHLB advances 14,341 27 0.76 % 45,610 123 1.08 % Other borrowings 137 1 1.71 % — — — Total interest-bearing liabilities 435,631 512 0.47 % 464,181 807 0.70 % Non-interest-bearing liabilities 202,296 206,119 Total liabilities 637,927 670,300 Total stockholders' equity 116,635 116,901 Total liabilities and stockholders' equity $ 754,562 $ 787,201 Net interest income $ 7,141 $ 7,410 Net interest rate spread (1) 3.89 % 3.80 % Net interest-earning assets (2) $ 267,269 $ 265,800 Net interest margin (3) 4.06 % 4.06 % Average interest-earning assets to interest- bearing liabilities 161.35 % 157.26 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. For the Six Months Ended June 30, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans excluding PPP loans $ 596,429 $ 14,004 4.70 % $ 501,596 $ 12,514 4.99 % PPP loans 8,035 275 6.84 % 115,260 4,577 7.94 % Securities 47,549 539 2.27 % 26,701 256 1.92 % Interest-earning deposits 45,026 97 0.43 % 81,469 82 0.20 % Other investments 1,094 17 3.21 % 2,169 36 3.29 % Total interest-earning assets 698,133 14,932 4.28 % 727,195 17,465 4.80 % Non-interest-earning assets 52,661 55,514 Total assets $ 750,794 $ 782,709 Interest-bearing liabilities: Savings accounts $ 84,326 169 0.40 % $ 93,881 210 0.45 % Interest-bearing checking accounts 96,949 87 0.18 % 90,509 95 0.21 % Market rate checking accounts 147,677 182 0.25 % 127,858 261 0.41 % Certificates of deposit 92,318 549 1.19 % 119,366 915 1.53 % Total interest-bearing deposits 421,270 987 0.47 % 431,614 1,481 0.69 % FHLB advances 11,596 (948 ) (16.35 )% 37,624 219 1.16 % Other borrowings 69 1 1.70 % 69 14 41.69 % Total interest-bearing liabilities 432,935 41 0.02 % 469,307 1,714 0.72 % Non-interest-bearing liabilities 198,680 201,098 Total liabilities 631,615 670,405 Total stockholders' equity 119,179 112,304 Total liabilities and stockholders' equity $ 750,794 $ 782,709 Net interest income $ 14,891 $ 15,751 Net interest rate spread (1) 4.26 % 4.08 % Net interest-earning assets (2) $ 265,197 $ 257,888 Net interest margin (3) 4.27 % 4.33 % Average interest-earning assets to interest-bearing liabilities 161.26 % 154.95 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. AFFINITY BANCSHARES, INC. Consolidated Balance Sheets June 30, 2022 December 31, 2021 (unaudited) (audited) (In thousands) Assets Cash and due from banks, including reserve requirement of $0 at June 30, 2022 and December 31, 2021 $ 8,111 $ 16,239 Interest-earning deposits in other depository institutions 47,288 95,537 Cash and cash equivalents 55,399 111,776 Investment securities available-for-sale 44,551 48,557 Other investments 1,400 2,476 Loans, net 614,358 575,825 Other real estate owned 3,538 3,538 Premises and equipment, net 4,048 3,783 Bank owned life insurance 15,549 15,377 Intangible assets 18,653 18,749 Accrued interest receivable and other assets 9,183 8,007 Total assets $ 766,679 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Savings accounts $ 82,742 $ 86,745 Interest-bearing checking 96,176 91,387 Market rate checking 159,900 145,969 Non-interest-bearing checking 198,177 193,940 Certificates of deposit 89,180 96,758 Total deposits 626,175 614,799 Federal Home Loan Bank advances 20,000 48,988 Accrued interest payable and other liabilities 5,133 3,333 Total liabilities 651,308 667,120 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,590,362 issued and outstanding at June 30, 2022 and 6,872,634 issued and outstanding at December 31, 2021 65 69 Preferred stock (10,000,000 shares authorized, no shares outstanding at June 30, 2022 and December 31, 2021 — — Additional paid in capital 63,497 68,038 Unearned ESOP shares (4,899 ) (5,004 ) Retained earnings 61,797 58,223 Accumulated other comprehensive loss (5,089 ) (358 ) Total stockholders' equity 115,371 120,968 Total liabilities and stockholders' equity $ 766,679 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Interest income: Loans, including fees $ 7,283 $ 7,997 $ 14,279 $ 17,091 Investment securities, including dividends 291 181 556 292 Interest-earning deposits 79 39 97 82 Total interest income 7,653 8,217 14,932 17,465 Interest expense: Deposits 484 684 987 1,481 Borrowings 28 123 (947 ) 233 Total interest expense 512 807 40 1,714 Net interest income before provision for loan losses 7,141 7,410 14,892 15,751 Provision for loan losses 217 300 467 750 Net interest income after provision for loan losses 6,924 7,110 14,425 15,001 Noninterest income: Service charges on deposit accounts 393 376 785 709 Other 255 230 458 625 Total noninterest income 648 606 1,243 1,334 Noninterest expenses: Salaries and employee benefits 2,959 2,511 5,901 4,894 Deferred compensation 64 62 131 126 Occupancy 541 644 1,123 1,696 Advertising 118 100 198 180 Data processing 497 517 990 999 Other real estate owned — 7 — 19 Net (gain) on sale of other real estate owned — (126 ) — (127 ) Legal and accounting 203 226 385 402 Organizational dues and subscriptions 133 91 264 161 Director compensation 51 50 102 100 Federal deposit insurance premiums 52 67 112 140 Writedown of premises and equipment — — — 873 FHLB prepayment penalties — — 647 — Other 619 524 1,142 1,101 Total noninterest expenses 5,237 4,673 10,995 10,564 Income before income taxes 2,335 3,043 4,673 5,771 Income tax expense 552 725 1,099 1,321 Net income $ 1,783 $ 2,318 $ 3,574 $ 4,450 Basic earnings per share $ 0.27 $ 0.34 $ 0.53 $ 0.65 Diluted earnings per share $ 0.27 $ 0.34 $ 0.53 $ 0.64 Explanation of Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income less interest and fees income on PPP loans provides a better comparison of the amount of the Company’s earnings. Management also believes that reported loans less PPP loans, deferred loan fees and other loan adjustments (consisting of loans in process), provides a better comparison of the amount of the Company’s loan portfolio. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items. June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 (In thousands) Non-GAAP Reconciliation Total Loans $ 623,359 $ 601,693 $ 584,384 $ 571,170 $ 590,011 Plus: Fair Value Marks 1,157 1,239 1,350 1,422 1,529 Deferred Loan fees 873 958 958 1,077 1,666 Less: Payroll Protection Program Loans 916 7,146 18,124 32,204 73,020 Indirect Auto Dealer Reserve 2,386 2,058 1,846 1,724 1,495 Other Loan Adjustments 82 69 224 102 447 Gross Loans $ 622,005 $ 594,617 $ 566,498 $ 539,639 $ 518,244 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 (In thousands) Non-GAAP Reconciliation Net Income $ 1,783 $ 1,791 $ 1,318 $ 1,805 $ 2,318 Less: PPP Interest Income 9 30 59 121 269 PPP Fee Income 62 174 271 741 1,419 Plus: Tax Effect 17 47 84 208 403 Non-GAAP Net Income $ 1,729 $ 1,634 $ 1,072 $ 1,151 $ 1,033 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 (In thousands) Non-GAAP Reconciliation Total Equity $ 115,371 $ 116,358 $ 120,968 $ 119,703 $ 117,635 Minus: Goodwill 17,219 17,219 17,219 17,219 17,219 Core Deposit Intangible 1,435 1,483 1,530 1,578 1,626 Tangible Common Equity 96,717 97,656 102,219 100,906 98,790 Divided By: Outstanding Shares 6,590 6,619 6,873 6,873 6,873 Tangible Book Value Per Share $ 14.68 $ 14.75 $ 14.87 $ 14.68 $ 14.37
- 07/26/2022
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Affinity Bancshares, Inc. Announces First Quarter 2022 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 $1.8 million for the three months ended March 31, 2022 as compared to $2.1 million for the three months ended March 31, 2021. For the three months ended, Performance Ratios: March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Return on average assets 0.97% 0.66% 0.91% 1.18% 1.11% Return on average equity 5.97% 4.36% 6.00% 7.95% 8.03% Net interest margin 4.53% 3.64% 3.78% 4.10% 4.65% Efficiency ratio 69.00% 74.29% 65.87% 58.30% 64.96% Results of Operations Net income was $1.8 million for the three months ended March 31, 2022, as compared to $2.1 million for the three months ended March 31, 2021, as a result of a decrease in Payroll Protection Program (PPP) loan related interest and fee income as we have been receiving forgiveness payments for these loans partially offset by a decrease in interest expense mostly related to the recognition of remaining discounts upon the payoff of acquired FHLB advances. Net Interest Income and Margin Net interest income decreased $590,000, and was $7.8 million for the three months ended March 31, 2022, compared to $8.3 million for the three months ended March 31, 2021. Average interest-earning assets decreased by $33.2 million, and was $684.6 million for the three months ended March 31, 2022 compared to $717.8 for the three months ended March 31, 2021. This decrease was a result of the decrease in PPP loans as forgiveness payments were received. Net interest margin for the three months ended March 31, 2022, decreased to 4.53% from 4.65% for the three months ended March 31, 2021. The decrease in net interest margin was primarily due to the decrease in PPP loans as forgiveness payments were received and partially offset by the decrease in interest expense from recognition of remaining discounts upon the payoff of acquired FHLB advances. For the three months ended March 31, 2022, the cost of average interest-bearing liabilities decreased to (0.44)% from 0.76% for the three months ended March 31, 2021, as a result of paying off Federal Home Loan Bank advances and recognizing $1.0 million in accretion from marks on acquired advances. The total cost of deposits was 0.48% for the three months ended March 31, 2022, compared to 0.72% for the three months ended March 31, 2021. The decrease was due to decreasing deposit rates related to the decrease in market rates. Provision for Loan Losses For the three months ended March 31, 2022, the provision for loan loss expense was $250,000 compared to $450,000 for the three months ended March 31, 2021. We increased our provision expense in 2021 due to the uncertainty related to the COVID-19 pandemic. As the economy began to improve in 2021 and continued to improve in 2022, less provision expense was required. Net loan charge offs were $3,000 for the three months ended March 31, 2022, compared to net loan recoveries of $1.1 million for the three months ended March 31, 2021. The increase in net recoveries for 2021 was primarily driven by a $1.0 million recovery on a previously charged off commercial real estate loan. Non-interest Income For the three months ended March 31, 2022, noninterest income decreased $134,000 to $595,000 compared to $729,000 for the three months ended March 31, 2021. This was a result of the decrease in other non-interest income as income was received in 2021 for a bank-owned life insurance death benefit claim and no such benefit claim was received in 2022. Non-interest Expense Operating expenses decreased $134,000, and was $5.8 million for the three months ended March 31, 2022, compared to $5.9 million for the three months ended March 31, 2021, primarily as a result of a decrease in occupancy expense due to facilities consolidation partially offset by an increase in salaries and employee benefits due to the Company’s strategic initiative to attract and retain talent. Income Tax Expense We recorded income tax expense of $547,000 for three months ended March 31, 2022, compared to $596,000 for the three months ended March 31, 2021. The higher tax expense for the three months ended March 31, 2021, was primarily due to higher pretax income. Financial Condition Total assets decreased by $27.9 million to $760.2 million for the three months ended March 31, 2022, from $788.1 million at December 31, 2021. The decrease was due primarily to a decrease in cash and cash equivalents of $41.9 million due to paying off Federal Home Loan Bank advances and partially offset by an increase in net loans. Cash and equivalents decreased $41.9 million, to $69.9 million for the three months ended March 31, 2022, from $111.8 million at December 31, 2021, as excess liquidity was utilized to payoff Federal Home Loan Bank advances. Total investment securities available for sale decreased by $2.6 million for the three months ended March 31, 2022, as compared to December 31, 2021, as our unrealized loss on the investment portfolio increased. Total net loans increased $17.1 million to $592.9 million at March 31, 2022 from $575.8 million at December 31, 2021, including Paycheck Protection Program (PPP) loans of $7.1 million and $17.9 million at March 31, 2022 and December 31, 2021, respectively. Deposits increased by $13.2 million to $628.0 million at March 31, 2022 compared to $614.8 million at December 31, 2021, which reflected an increase in interest-bearing, market rate, and non-interest-bearing deposits of $17.7 million. The loan-to-deposit ratio at March 31, 2022 was 94.4%, as compared to 93.7% at December 31, 2021. Stockholders’ equity decreased to $116.4 million at March 31, 2022, as compared to $121.0 million at December 31, 2021, primarily due to the decrease in additional paid in capital from the repurchase of 253,779 shares of AFBI stock totaling $3.9 million with an average price per share of $15.53 as well as an increase in accumulated other comprehensive loss related to our investment portfolio. Asset Quality The Company’s non-performing loans decreased to $6.3 million at March 31, 2022, as compared to $7.0 million at December 31, 2021. The allowance for loan losses as a percentage of non-performing loans was 138.9% at March 31, 2022, as compared to 122.1% at December 31, 2021. The Company’s allowance for loan losses was 1.46% of total loans for both March 31, 2022 and December 31, 2021. About Affinity Bancshares, Inc. The Company is a Maryland corporation based in Covington, Georgia. The Company’s banking subsidiary, Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets. Average Balance Sheets The following table sets 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, 2022 2021 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans excluding PPP loans $ 574,393 $ 6,792 4.73 % $ 490,660 $ 6,204 5.06 % PPP loans 12,369 204 6.59 % 123,457 2,890 9.36 % Securities 48,648 260 2.14 % 23,751 94 1.59 % Interest-earning deposits 48,231 17 0.14 % 77,950 42 0.22 % Other investments 1,000 6 2.33 % 1,990 18 3.56 % Total interest-earning assets 684,641 7,279 4.25 % 717,808 9,248 5.15 % Non-interest-earning assets 62,343 62,054 Total assets $ 746,984 $ 779,862 Interest-bearing liabilities: Savings accounts $ 86,195 83 0.38 % $ 94,167 107 0.45 % Interest-bearing checking accounts 96,273 42 0.17 % 96,513 52 0.22 % Market rate checking accounts 144,455 88 0.25 % 124,209 133 0.43 % Certificates of deposit 94,465 290 1.23 % 129,913 506 1.56 % Total interest-bearing deposits 421,388 503 0.48 % 444,802 798 0.72 % FHLB advances (4) 8,821 (975 ) (44.20 )% 29,549 95 1.29 % PPPLF borrowings — — — 4,150 4 0.35 % Other borrowings — — — 1,555 10 2.69 % Total interest-bearing liabilities 430,209 (472 ) (0.44 )% 480,056 907 0.76 % Non-interest-bearing liabilities 195,024 192,150 Total liabilities 625,233 672,206 Total stockholders' equity 121,751 107,656 Total liabilities and stockholders' equity $ 746,984 $ 779,862 Net interest income $ 7,751 $ 8,341 Net interest rate spread (1) 4.69 % 4.39 % Net interest-earning assets (2) $ 254,432 $ 237,752 Net interest margin (3) 4.53 % 4.65 % Average interest-earning assets to interest-bearing liabilities 159.14 % 149.53 % Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. Net interest margin represents net interest income divided by average total interest-earning assets. Interest and yield/rate for FHLB advances is negative as a result of paying off FHLB advances and recognizing $1.0 million in accretion from the marks on acquired advances. AFFINITY BANCSHARES, INC. Consolidated Balance Sheets March 31, 2022 December 31, 2021 (unaudited) (audited) (In thousands) Assets Cash and due from banks, including reserve requirement of $0 at March 31, 2022 and December 31, 2021 $ 14,302 $ 16,239 Interest-earning deposits in other depository institutions 55,596 95,537 Cash and cash equivalents 69,898 111,776 Investment securities available-for-sale 45,911 48,557 Other investments 1,022 2,476 Loans, net 592,887 575,825 Other real estate owned 3,538 3,538 Premises and equipment, net 3,955 3,783 Bank owned life insurance 15,462 15,377 Intangible assets 18,701 18,749 Accrued interest receivable and other assets 8,834 8,007 Total assets $ 760,208 $ 788,088 Liabilities and Stockholders' Equity Liabilities: Savings accounts $ 86,717 $ 86,745 Interest-bearing checking 95,555 91,387 Market rate checking 151,443 145,969 Non-interest-bearing checking 202,042 193,940 Certificates of deposit 92,288 96,758 Total deposits 628,045 614,799 Federal Home Loan Bank advances 10,000 48,988 Accrued interest payable and other liabilities 5,805 3,333 Total liabilities 643,850 667,120 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,618,685 issued and outstanding at March 31, 2022 and 6,872,634 issued and outstanding at December 31, 2021) 66 69 Preferred stock (10,000,000 shares authorized, no shares outstanding at March 31, 2022 and December 31, 2021) — — Additional paid in capital 64,241 68,038 Unearned ESOP shares (4,952 ) (5,004 ) Retained earnings 60,014 58,223 Accumulated other comprehensive loss (3,011 ) (358 ) Total stockholders' equity 116,358 120,968 Total liabilities and stockholders' equity $ 760,208 $ 788,088 AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited) Three Months Ended March 31, 2022 2021 (In thousands) Interest income: Loans, including fees $ 6,996 $ 9,094 Investment securities, including dividends 266 112 Interest-earning deposits 17 42 Total interest income 7,279 9,248 Interest expense: Deposits 503 798 Borrowings (975 ) 109 Total interest expense (472 ) 907 Net interest income before provision for loan losses 7,751 8,341 Provision for loan losses 250 450 Net interest income after provision for loan losses 7,501 7,891 Noninterest income: Service charges on deposit accounts 392 334 Other 203 395 Total noninterest income 595 729 Noninterest expenses: Salaries and employee benefits 2,942 2,383 Deferred compensation 66 64 Occupancy 582 1,052 Advertising 80 80 Data processing 494 481 Other real estate owned — 12 Net (gain) loss on sale of other real estate owned — (1 ) Legal and accounting 182 177 Organizational dues and subscriptions 131 71 Director compensation 51 50 Federal deposit insurance premiums 60 73 Writedown of premises and equipment — 873 FHLB prepayment penalties 647 — Other 523 577 Total noninterest expenses 5,758 5,892 Income before income taxes 2,338 2,728 Income tax expense 547 596 Net income $ 1,791 $ 2,132 Basic earnings per share $ 0.26 $ 0.31 Diluted earnings per share $ 0.26 $ 0.31 Explanation of Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income less interest and fees income on PPP loans plus expenses related to the write-off of a branch building and lease provides a better comparison of the amount of the Company’s earnings. Management also believes that reported loans less PPP loans, deferred loan fees and other loan adjustments (consisting of loans in process), provides a better comparison of the amount of the Company’s loan portfolio. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items. March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 (In thousands) Non-GAAP Reconciliation Total Loans $ 601,693 $ 584,384 $ 571,170 $ 590,011 $ 626,096 Plus: Fair Value Marks 1,239 1,350 1,422 1,529 1,607 Deferred Loan fees 958 958 1,077 1,666 2,466 Less: Payroll Protection Program Loans 7,146 18,124 32,204 73,020 126,054 Indirect Auto Dealer Reserve 2,058 1,846 1,724 1,495 1,302 Other Loan Adjustments 69 224 102 447 0 Gross Loans $ 594,617 $ 566,498 $ 539,639 $ 518,244 $ 502,813 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 (In thousands) Non-GAAP Reconciliation Net Income $ 1,791 $ 1,318 $ 1,805 $ 2,318 $ 2,132 Less: PPP Interest Income 30 59 121 269 312 PPP Fee Income 174 271 741 1,419 2,578 Plus: Branch Building and Lease Write-Off 1,186 Tax Effect 47 84 208 403 372 Non-GAAP Net Income $ 1,634 $ 1,072 $ 1,151 $ 1,033 $ 800
- 04/22/2022
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Affinity Bancshares, Inc. Announces 2021 Year End 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 $7.6 million for the year ended December 31, 2021 as compared to $3.1 million for the year ended December 31, 2020. For the three months ended, For the year ended, Performance Ratios: December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2021 December 31, 2020 Return on average assets 0.66 % 0.91 % 1.18 % 1.11 % 0.96 % 0.42 % Return on average equity 4.36 % 6.00 % 7.95 % 8.03 % 6.52 % 3.97 % Net interest margin 3.64 % 3.78 % 4.10 % 4.65 % 4.04 % 3.77 % Efficiency ratio 74.29 % 65.87 % 58.30 % 64.96 % 65.62 % 78.46 % Results of Operations Net income was $7.6 million for the year ended December 31, 2021 as compared to $3.1 million for the year ended December 31, 2020, as we have increased our interest income while reducing interest and non-interest expense. Our net income in 2020 was reduced as a result of merger related expenses. Merger related expenses for the year ended December 31, 2020, were $2.8 million. Net Interest Income and Margin Net interest income increased $4.1 million, and was $29.3 million for the year ended December 31, 2021, compared to $25.1 million for the year ended December 31, 2020. Average interest-earning assets increased by $57.8 million for the year ended December 31, 2021. Net interest margin for the year ended December 31, 2021, increased to 4.04%, from 3.77% for the year ended December 31, 2020. The increase in net interest margin was primarily due to the decrease in the cost of funds. For the year ended December 31, 2021, the cost of average interest-bearing liabilities decreased to 0.67% from 1.10% for the year ended December 31, 2020. The total cost of deposits was 0.63% for the year ended December 31, 2021 compared to 1.12% for the year ended December 31, 2020. The decrease was due to decreasing deposit rates related to the decrease in market rates. Provision for Loan Losses For the year ended December 31, 2021, the provision for loan loss expense was $1.1 million compared to $2.0 million for the year ended December 31, 2020. We increased our provision expense in 2020 due to the uncertainty related to the COVID-19 pandemic. As the economy began to improve in 2021, less provision expense was required. Net loan recoveries were $1.1 million for the year ended December 31, 2021, compared to $227,000 for the year ended December 31, 2020. The increase in net recoveries was primarily driven by a $1.0 million recovery on a previously charged off commercial real estate loan. Non-interest Income For the year ended December 31, 2021, noninterest income increased $522,000 to $2.7 million compared to $2.2 million for the year ended December 31, 2020. This was a result of increases in service charges on deposits accounts, interchange income, and secondary market fee income. Non-interest Expense Operating expenses decreased $450,000 to $21.0 million for the year ended December 31, 2021, compared to $21.4 million for the year ended December 31, 2020. We saw an increase in legal and accounting fees as well as salary and employee expense in 2020 due to the merger. Income Tax Expense We recorded income tax expense of $2.3 million for year ended December 31, 2021, compared to $792,000 for the year ended December 31, 2020. The higher tax expense for the year ended December 31, 2021, was primarily due to higher pretax income. Financial Condition Total assets decreased by $62.5 million to $788.1 million at December 31, 2021, from $850.6 million at December 31, 2020. The decrease was due primarily to a decrease in cash and cash equivalents of $66.5 million due to our no longer using the Paycheck Protection Program Liquidity Facility (PPPLF) for funding as well as a decrease in net loans of $16.4 million. Cash and equivalents decreased $66.5 million, to $111.8 million at December 31, 2021, from $178.3 million at December 31, 2020, as the PPPLF was not used for funding at year end and excess cash from the stock offering was returned. Total investment securities available for sale increased by $24.6 million at December 31, 2021, as compared to December 31, 2020, as we deployed excess liquidity. Total loans decreased $14.2 million to $584.4 million at December 31, 2021 from $598.6 million at December 31, 2020, including Paycheck Protection Program (PPP) loans of $17.9 million and $101.7 million at December 31, 2021 and December 31, 2020, respectively. Deposits decreased by $25.4 million to $614.8 million at December 31, 2021 compared to $640.2 million at December 31, 2020, which reflected a decrease in certificate of deposits of $34.9 million, partly offset by an increase in non-interest-bearing deposits of $33.1 million. The loan-to-deposit ratio at December 31, 2021 was 93.7%, as compared to 92.5% at December 31, 2020. Interest-bearing checking accounts decreased $38.4 million as a result of the completion of the second step conversion. Stockholders’ equity increased to $121.0 million at December 31, 2021, as compared to $80.8 million at December 31, 2020, primarily due to the completion of our mutual-to-stock conversion and related stock offering on January 20, 2021. We sold 3,701,509 shares of common stock at $10.00 per share and raised gross proceeds of $37.1 million in the offering. Asset Quality The Company’s non-performing loans increased to $7.0 million at December 31, 2021, as compared to $4.9 million at December 31, 2020. The allowance for loan losses as a percentage of non-performing loans was 122.1% at December 31, 2021, as compared to 129.8% at December 31, 2020. The Company’s allowance for loan losses was 1.46% of total loans at December 30, 2021, as compared to 1.06% at December 31, 2020. The allowance as a percentage of total loans increased due to the decrease in PPP loans as well as a large recovery of a previously charged off loan. 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. Average Balance Sheets The following tables set forth average balance sheets, average yields and costs, and certain other information for the years 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 Year Ended December 31, 2021 2020 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 588,976 $ 31,484 5.35 % $ 575,548 $ 29,933 5.20 % Securities 35,109 709 2.02 % 19,917 380 1.91 % Interest-earning deposits and federal funds 98,554 180 0.18 % 69,137 212 0.31 % Other investments 2,324 80 3.43 % 2,523 107 4.24 % Total interest-earning assets 724,963 32,453 4.48 % 667,125 30,632 4.59 % Noninterest-earning assets 63,373 60,601 Total assets $ 788,336 $ 727,726 Interest-bearing liabilities: Savings accounts $ 93,113 403 0.43 % $ 88,425 878 0.99 % Interest-bearing checking accounts 88,852 185 0.21 % 70,678 286 0.40 % Money market checking accounts 133,835 469 0.35 % 112,863 965 0.86 % Certificates of deposit 110,742 1,623 1.47 % 154,020 2,623 1.70 % Total interest-bearing deposits 426,542 2,680 0.63 % 425,986 4,752 1.12 % Federal Home Loan Bank advances 43,370 482 1.11 % 44,574 569 1.28 % Paycheck Protection Program Liquidity Facility borrowings 1,023 4 0.35 % 20,324 72 0.35 % Other borrowings 418 11 2.59 % 8,184 97 1.18 % Total interest-bearing liabilities 471,353 3,177 0.67 % 499,068 5,490 1.10 % Noninterest-bearing liabilities 200,756 150,781 Total liabilities 672,109 649,849 Total stockholders' equity $ 116,227 $ 77,877 Total liabilities and retained earnings $ 788,336 $ 727,726 Net interest income $ 29,276 $ 25,142 Net interest rate spread (1) 3.81 % 3.49 % Net interest-earning assets (2) $ 253,610 $ 168,057 Net interest margin (3) 4.04 % 3.77 % Average interest-earning assets to interest- bearing liabilities 153.80 % 133.67 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. AFFINITY BANCSHARES, INC. Consolidated Balance Sheets December 31, 2021 December 31, 2020 (In thousands except share amounts) Assets Cash and due from banks, including reserve requirement of $0 at December 31, 2021 and 2020, respectively $ 16,239 5,552 Interest-earning deposits in other depository institutions 95,537 172,701 Cash and cash equivalents 111,776 178,253 Investment securities available-for-sale 48,557 24,005 Other investments 2,476 1,596 Loans, net 575,825 592,254 Other real estate owned 3,538 1,292 Premises and equipment, net 3,783 8,617 Bank owned life insurance 15,377 15,311 Intangible assets 18,749 18,940 Accrued interest receivable and other assets 8,007 10,360 Total assets $ 788,088 850,628 Liabilities and Stockholders' Equity Liabilities : Savings accounts $ 86,745 96,591 Interest-bearing checking 91,387 129,813 Market rate checking 145,969 121,317 Noninterest-bearing checking 193,940 160,819 Certificate of deposits 96,758 131,625 Total deposits 614,799 640,165 Federal Home Loan Bank (FHLB) advances 48,988 19,117 Paycheck Protection Program Liquidity Facility (PPPLF) borrowings — 100,814 Other borrowings — 5,000 Accrued interest payable and other liabilities 3,333 4,748 Total liabilities 667,120 769,843 Commitments Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized, 6,872,634 issued and outstanding at December 31, 2021 and 19,000,000 shares authorized, 6,968,469 issued and 6,865,653 outstanding at December 31, 2020) (1) 69 69 Preferred stock (1,000,000 shares authorized, no shares outstanding) — — Additional paid in capital 68,038 33,628 Treasury stock, 0 shares at December 31, 2021 and 102,816 shares at December 31, 2020, at cost — (1,268 ) Unearned ESOP shares (5,004 ) (2,453 ) Retained earnings 58,223 50,650 Accumulated other comprehensive (loss) income (358 ) 159 Total stockholders' equity 120,968 80,785 Total liabilities and stockholders' equity $ 788,088 850,628 (1) Amounts related to periods prior to the date of Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686). AFFINITY BANCSHARES, INC. Consolidated Statements of Income For the Year Ended December 31, For the Year Ended December 31, 2021 2020 (In thousands except per share amounts) Interest income: Loans, including fees $ 31,484 29,933 Investment securities, including dividends 789 487 Interest-earning deposits 180 212 Total interest income 32,453 30,632 Interest expense: Deposits 2,680 4,752 Borrowings 497 738 Total interest expense 3,177 5,490 Net interest income before provision for loan losses 29,276 25,142 Provision for loan losses 1,075 2,000 Net interest income after provision for loan losses 28,201 23,142 Noninterest income: Service charges on deposit accounts 1,506 1,359 Gain on sales of investment securities available-for-sale — 20 Other 1,172 777 Total noninterest income 2,678 2,156 Noninterest expenses: Salaries and employee benefits 10,415 10,969 Deferred compensation 248 279 Occupancy 2,935 2,820 Advertising 339 200 Data processing 1,975 2,343 Other real estate owned 18 20 Net loss (gain) on sale and write-down of other real estate owned (127 ) 289 Legal and accounting 827 1,447 Organizational dues and subscriptions 363 306 Director compensation 198 203 Federal deposit insurance premiums 260 401 Other 3,517 2,141 Total noninterest expenses 20,968 21,418 Income before income taxes 9,911 3,880 Income tax expense 2,338 792 Net income $ 7,573 3,088 Basic earnings per share (1) $ 1.10 0.41 Diluted earnings per share (1) $ 1.09 $ 0.41 (1) Amounts related to periods prior to the date of the Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686-to-one). Non-GAAP Reconciliation Reported amounts for total loans are presented in accordance with GAAP. The Company’s management believes that the following supplemental non-GAAP information, which consists of total loans excluding PPP loans, deferred loan fees and other loan adjustments (consisting of loans in process), provides a better comparison of the amount of the Company’s loan portfolio. Additionally, the Company believes this information is utilized by 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. December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 (In thousands) Non-GAAP Reconciliation Total Loans $ 584,384 $ 571,170 $ 590,011 $ 626,096 $ 598,615 Plus: Fair Value Marks 1,350 1,422 1,529 1,607 1,772 Deferred loan fees 953 1,077 1,666 2,466 1,980 Less: Payroll Protection Program 18,124 32,204 73,020 126,054 101,749 loans Indirect Auto Dealer Reserve 1,846 1,724 1,495 1,302 1,167 Other Loan Adjustments 219 102 447 0 591 Gross Loans $ 566,498 $ 539,639 $ 518,244 $ 502,813 $ 498,860
- 02/22/2022
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Affinity Bancshares, Inc. Adopts Stock Repurchase Program
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. (the “Company”), the holding company for Affinity Bank, today announced that its Board of Directors has adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 343,632 shares of its common stock, or approximately 5% of the current outstanding shares. Repurchases will be made no sooner than the termination of the Company’s regular trading blackout period, and consistent with the Company’s trading policies. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares. 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 Certain statements contained herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “may,” “will,” “would,” “intend,” “believe,” “expect,” “plan,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. These statements are based upon the current beliefs and expectations of Company management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: the effects of any pandemic disease, natural disaster, war, act of terrorism, accident, or similar action or event; those related to the real estate and economic environment, particularly in the market areas in which the Company operates; fiscal and monetary policies of the U.S. Government; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov. The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above or other factors could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically disclaims any obligation to publicly release the results of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
- 01/27/2022
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Affinity Bancshares: Worth Keeping An Eye On, But Not A Buy Right Now
- Affinity Bancshares saw its share price increase by almost 60% since raising equity at $10/share. A great share price performance, but I'm expecting the normalized EPS to be just around $1/share in 2022.
- 01/17/2022
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Affinity Bancshares, Inc Announces Third Quarter 2021 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 $1.8 million for the three months ended September 30, 2021 as compared to $1.9 million for the corresponding prior year period. For the nine months ended September 30, 2021, the Company reported net income of $6.3 million as compared to $1.7 million for the corresponding prior year period. For the three months ended, For the nine months ended, Performance Ratios: September 30,2021 June 30,2021 March 31,2021 September 30,2020 September 30,2021 September 30, 2020 Return on average assets 0.91 % 1.18 % 1.11 % 0.90 % 1.06 % 0.31 % Return on average equity 6.00 % 7.95 % 8.03 % 9.46 % 7.29 % 2.86 % Net interest margin 3.78 % 4.10 % 4.65 % 3.81 % 4.17 % 3.69 % Efficiency ratio 65.87 % 58.30 % 64.96 % 60.95 % 63.08 % 82.94 % Results of Operations Net income was $1.8 million for the three months ended September 30, 2021, compared to $1.9 million for the three months ended September 30, 2020. We have strategically made additional hires to further enhance our business development efforts. Net income increased $4.6 million to $6.3 million for the nine months ended September 30, 2021, compared to $1.7 million for the nine months ended September 30, 2020. Our net income in 2020 was reduced as a result of merger related expenses. Merger related expenses for the nine months ended September 30, 2020, were $2.8 million. Net Interest Income and Margin Net interest income decreased $300,000, and was $6.9 million for the three months ended September 30, 2021, compared to $7.2 million for the three months ended September 30, 2020. Average interest-earning assets decreased by $34.5 million for the three months ended September 30, 2021. Net interest income increased $4.4 million, and was $22.6 million for the nine months ended September 30, 2021, compared to $18.2 million for the nine months ended September 30, 2020. Average interest-earning assets increased by $66.2 million for the nine months ended September 30, 2021. Net interest margin for the three months ended September 30, 2021, decreased to 3.78%, from 3.81% for the same prior year period. The net interest margin compression was primarily due to the excess balance sheet liquidity and the lower interest rate environment. Net interest margin for the nine months ended September 30, 2021, increased to 4.17% from 3.69% for the same prior year period. For the three months ended September 30, 2021, the cost of average interest-bearing liabilities decreased to 0.65% from 1.00% for the corresponding prior year period. For the nine months ended September 30, 2021, the cost of average interest-bearing liabilities decreased to 0.69% from 1.18% for the corresponding prior year period. The total cost of deposits (including non-interest-bearing deposits) was 0.60% for the three months ended September 30, 2021 compared to 1.03% for the three months ended September 30, 2020. For the nine months ended September 30, 2021, the cost of deposits was 0.66% compared to 1.21% for the nine months ended September 30, 2020. The decrease was due to decreasing deposit rates related to the decrease in market rates. Provision for Loan Losses For the three months ended September 30, 2021, the provision for loan loss expense was $225,000 compared to $600,000 for the three months ended September 30, 2020. We increased our provision expense in 2020 due to the uncertainty related to the pandemic. For the nine months ended September 30, 2021, the provision for loan loss expense was $975,000 compared to $1.4 million for the nine months ended September 30, 2020. As the economy began to improve in 2021, less provision expense was required. Net loan recoveries were $19,000 for the three months ended September 30, 2021, compared to $125,000 for the three months ended September 30, 2020. Net loan recoveries were $295,000 for the nine months ended September 30, 2021, compared to $177,00 for the nine months ended September 30, 2020. Non-interest Income For the three months ended September 30, 2021, noninterest income increased $225,000 to $771,000 compared to $546,000 for the three months ended September 30, 2020. This was a result of increases in service charges on deposits accounts, interchange income, and secondary market fee income. For the nine months ended September 30, 2021, noninterest income increased $508,000 to $2.1 million compared to $1.6 million the nine months ended September 30, 2020, due to income received from a bank-owned life insurance death benefit claim, an increase in service charges on deposits accounts, and gains on the sale of Bank owned properties. Non-interest Expense Operating expenses increased $275,000 to $5.0 million for the three months ended September 30, 2021, compared to $4.8 million for the three months ended September 30, 2020. We have strategically made additional hires to further enhance our business development efforts. Operating expenses decreased $817,000 to $15.6 million for the nine months ended September 30, 2021 compared to $16.4 million for the nine months ended September 30, 2020. We had an increase in salary and employee expense in 2020 due to the merger. Income Tax Expense We recorded income tax expense of $575,000 for each of the three months ended September 30, 2021 and 2020. We recorded income tax expense of $1.9 million for the nine months ending September 30, 2021 compared to $324,000 for the nine months ended September 30, 2020. The effective tax rate was 24.17% for the three months ended September 30, 2021 compared to 23.53% for the three months ended September 30, 2020. The effective tax rate was 23.26% for the nine months ended September 30, 2021 compared to 16.40% for the nine months ended September 30, 2020. The higher effective tax rate for the current year nine-month period was primarily due to higher net income before taxes in 2021. Financial Condition Total assets decreased by $60.7 million to $790.0 million at September 30, 2021, from $850.6 million at December 31, 2020. The decrease was due primarily to a decrease in cash and cash equivalents of $47.3 million due to our no longer using the Paycheck Protection Liquidity Facility (PPPLF) for funding as well as a decrease in net loans of $28.7 million. Cash and equivalents decreased $47.3 million, to $130.9 million at September 30, 2021, from $178.3 million at December 31, 2020, as the PPPLF was not used for funding at quarter end and excess cash from the stock offering was returned. Total investment securities available for sale increased by $20.0 million at September 30, 2021, as compared to December 31, 2020, as we deployed excess liquidity. Total loans decreased $27.4 million to $571.2 million at September 30, 2021 from $598.6 million at December 31, 2021, including PPP loans of $31.7 million and $101.8 million at September 30, 2021 and December 31, 2020, respectively. Deposits decreased by $24.9 million to $615.2 million at September 30, 2021 compared to $640.2 million at December 31, 2020, which reflected a decrease in certificate of deposits of $26.7 million, partly offset by an increase in non-interest-bearing deposits of $36.2 million. The loan-to-deposit ratio at September 30, 2021 was 91.6%, as compared to 92.5% at December 31, 2020. Interest-bearing checking accounts decreased $47.1 million as a result of the completion of the second step conversion. Stockholders’ equity increased to $119.7 million at September 30, 2021, as compared to $80.8 million at December 31, 2020, primarily due to the completion of our mutual-to-stock conversion and related stock offering on January 20, 2021. We sold 3,701,509 shares of common stock at $10.00 per share and raised gross proceeds of $37.1 million in the offering. Asset Quality The Company’s non-performing loans increased to $6.2 million at September 30, 2021, as compared to $4.9 million at December 31, 2020. The allowance for loan losses as a percentage of non-performing loans was 122.8% at September 30, 2021, as compared to 129.8% at December 31, 2020. The Company’s allowance for loan losses was 1.33% of total loans at September 30, 2021, as compared to 1.06% at December 31, 2020. The allowance as a percentage of total loans increased due to the decrease in PPP loans. 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. Average Balance Sheets The following tables set forth average balance sheets, average annualized yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are monthly average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. For the Three Months Ended September 30, 2021 2020 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans excluding PPP loans $ 520,273 $ 6,470 4.97 % $ 500,615 $ 6,418 5.13 % PPP loans 48,169 862 7.16 % 130,352 2,108 6.47 % Securities 40,569 216 2.13 % 20,619 80 1.55 % Interest-earning deposits 115,330 53 0.18 % 107,029 36 0.13 % Other investments 2,476 21 3.37 % 2,722 29 4.26 % Total interest-earning assets 726,817 7,622 4.19 % 761,338 8,671 4.56 % Non-interest-earning assets 64,408 67,455 Total assets $ 791,225 $ 828,793 Interest-bearing liabilities: Savings accounts $ 93,717 100 0.43 % $ 100,335 206 0.82 % Interest-bearing checking accounts 83,519 43 0.21 % 71,374 69 0.38 % Market rate checking accounts 136,984 117 0.34 % 121,118 227 0.75 % Certificates of deposit 105,285 369 1.40 % 157,911 661 1.68 % Total interest-bearing deposits 419,505 629 0.60 % 450,738 1,163 1.03 % FHLB advances 49,039 132 1.07 % 46,362 159 1.37 % PPPLF borrowings — — — 59,118 52 0.35 % Other borrowings — — — 10,717 46 1.72 % Total interest-bearing liabilities 468,544 761 0.65 % 566,935 1,420 1.00 % Non-interest-bearing liabilities 203,336 183,275 Total liabilities 671,880 750,210 Total stockholders' equity 119,345 78,583 Total liabilities and stockholders' equity $ 791,225 $ 828,793 Net interest income $ 6,861 $ 7,251 Net interest rate spread (1) 3.55 % 3.56 % Net interest-earning assets (2) $ 258,273 $ 194,403 Net interest margin (3) 3.78 % 3.81 % Average interest-earning assets to interest-bearing liabilities 155.12 % 134.29 % ____________________________ (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. For the Nine Months Ended September 30, 2021 2020 Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Dollars in thousands) Interest-earning assets: Loans excluding PPP loans $ 503,373 $ 18,985 5.03 % $ 497,271 $ 19,497 5.23 % PPP loans 92,651 5,439 7.83 % 67,871 2,549 5.01 % Securities 31,374 472 2.01 % 18,871 304 2.15 % Interest-earning deposits 92,880 134 0.19 % 69,617 185 0.35 % Federal Home Loan Bank of Atlanta stock 2,273 57 3.32 % 2,692 88 4.36 % Total interest-earning assets 722,551 25,087 4.63 % 656,322 22,623 4.60 % Non-interest-earning assets 63,028 60,721 Total assets $ 785,579 $ 717,043 Interest-bearing liabilities: Savings accounts $ 93,823 310 0.44 % $ 85,261 725 1.13 % Interest-bearing checking accounts 88,154 138 0.21 % 65,285 214 0.44 % Market rate checking accounts 130,933 378 0.39 % 108,383 794 0.98 % Certificates of deposit 114,623 1,284 1.49 % 159,240 2,056 1.72 % Total interest-bearing deposits 427,533 2,110 0.66 % 418,169 3,790 1.21 % FHLB advances 41,471 350 1.13 % 49,770 531 1.42 % PPPLF borrowings 1,368 4 0.35 % 24,255 63 0.35 % Other borrowings 559 11 2.58 % 8,054 55 0.92 % Total interest-bearing liabilities 470,931 2,475 0.69 % 500,248 4,439 1.18 % Non-interest-bearing liabilities 199,971 139,728 Total liabilities 670,902 639,976 Total stockholders' equity 114,677 77,066 Total liabilities and stockholders' equity $ 785,579 $ 717,042 Net interest income $ 22,612 $ 18,184 Net interest rate spread (1) 3.94 % 3.42 % Net interest-earning assets (2) $ 251,620 $ 156,074 Net interest margin (3) 4.17 % 3.69 % Average interest-earning assets to interest-bearing liabilities 153.43 % 131.20 % ____________________________ (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. AFFINITY BANCSHARES, INC. Consolidated Balance Sheets September 30, 2021 December 31, 2020 (unaudited) (In thousands) Assets Cash and due from banks, including reserve requirement of $0 at September 30, 2021 and December 31, 2020 $ 17,321 $ 5,552 Interest-earning deposits in other depository institutions 113,589 172,701 Cash and cash equivalents 130,910 178,253 Investment securities available-for-sale 44,071 24,005 Other investments 2,476 1,596 Loans, net 563,539 592,254 Other real estate owned — 1,292 Premises and equipment, net 7,425 8,617 Bank owned life insurance 15,285 15,311 Intangible assets 18,797 18,940 Accrued interest receivable and other assets 7,462 10,360 Total assets $ 789,965 $ 850,628 Liabilities and Stockholders' Equity Liabilities: Savings accounts $ 92,003 $ 96,591 Interest-bearing checking 82,750 129,813 Market rate checking 138,592 121,317 Non-interest-bearing checking 196,990 160,819 Certificate of deposits 104,896 131,625 Total deposits 615,231 640,165 Federal Home Loan Bank advances 49,020 19,117 Paycheck Protection Program Liquidity Facility (PPPLF) borrowings — 100,813 Other borrowings — 5,000 Accrued interest payable and other liabilities 6,011 4,748 Total liabilities 670,262 769,843 Stockholders' equity: Common stock (par value $0.01 per share, 40,000,000 shares authorized, 6,872,634 issued and outstanding at September 30, 2021 and 19,000,000 shares authorized, 6,968,469 issued and 6,865,653 outstanding at December 31, 2020) (1) 69 77 Preferred stock (10,000,000 shares authorized, no shares outstanding at September 30, 2021 and 1,000,000 shares authorized, no shares outstanding at December 31, 2020) — — Additional paid in capital 67,899 33,620 Treasury stock, 102,816 shares at December 31, 2020, at cost (1) — (1,268 ) Unearned ESOP shares (5,056 ) (2,453 ) Retained earnings 56,905 50,650 Accumulated other comprehensive (loss) income (114 ) 159 Total stockholders' equity 119,703 80,785 Total liabilities and stockholders' equity $ 789,965 $ 850,628 (1) Amounts related to periods prior to the date of Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686) (see Note 1). See accompanying notes to unaudited consolidated financial statements. AFFINITY BANCSHARES, INC. Consolidated Statements of Operations (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands) Interest income: Loans, including fees $ 7,332 $ 8,526 $ 24,424 $ 22,046 Investment securities, including dividends 237 109 529 392 Interest-earning deposits 53 36 134 185 Total interest income 7,622 8,671 25,087 22,623 Interest expense: Deposits 629 1,163 2,110 3,789 Borrowings 132 257 365 649 Total interest expense 761 1,420 2,475 4,438 Net interest income before provision for loan losses 6,861 7,251 22,612 18,185 Provision for loan losses 225 600 975 1,400 Net interest income after provision for loan losses 6,636 6,651 21,637 16,785 Noninterest income: Service charges on deposit accounts 416 351 1,126 1,009 Gain on sales of investment securities available-for-sale — — — 20 Other 355 195 980 569 Total noninterest income 771 546 2,106 1,598 Noninterest expenses: Salaries and employee benefits 2,715 2,415 7,609 8,767 Deferred compensation 62 70 188 211 Occupancy 633 734 2,329 2,071 Advertising 116 40 296 173 Data processing 520 523 1,518 1,773 Other real estate owned — 9 19 11 Net (gain) loss on sale of other real estate owned — 159 (127 ) 188 Legal and accounting 153 230 555 1,196 Organizational dues and subscriptions 105 70 266 238 Director compensation 50 51 150 153 Federal deposit insurance premiums 61 51 201 304 Writedown of premises and equipment 14 — 888 — Other 598 400 1,700 1,324 Total noninterest expenses 5,027 4,752 15,592 16,409 Income before income taxes 2,380 2,445 8,151 1,974 Income tax expense 575 575 1,896 324 Net income (loss) $ 1,805 $ 1,870 $ 6,255 $ 1,650 Basic earnings per share (1) $ 0.26 $ 0.25 $ 0.90 $ 0.22 Diluted earnings per share (1) $ 0.26 $ 0.25 $ 0.89 $ 0.22 (1) Amounts related to periods prior to the date of the Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686-to-one) (see Note 1). Non-GAAP Reconciliation Reported amounts for total loans are presented in accordance with GAAP. The Company’s management believes that the following supplemental non-GAAP information, which consists of total loans excluding PPP loans, deferred loan fees and other loan adjustments (consisting of loans in process), provides a better comparison of the amount of the Company’s loan portfolio. Additionally, the Company believes this information is utilized by 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. September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 (In thousands) Non-GAAP Reconciliation Total Loans $ 571,170 $ 590,011 $ 626,096 $ 598,615 Plus: Fair Value Marks 1,423 1,497 1,607 1,773 Less: Payroll Protection Program loans 31,715 71,862 123,996 100,142 Deferred loan fees 1,136 987 878 795 Other Loan Adjustments 103 415 16 591 Gross Loans $ 539,639 $ 18,244 $ 502,813 $ 498,860
- 10/27/2021
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Affinity Bancshares, Inc. Announces Completion of Stock Offering and Related Conversion
- COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. (the “Company”) announced today that Community First Bancshares, MHC (the “MHC”) has completed its conversion from the mutual holding company to the stock holding company form of organization (the “Conversion”), and the Company has completed its related stock offering. As a result of the closing of the Conversion, the Company is now the holding company of Newton Federal Bank (the “Bank”), which has changed its name to Affinity Bank. The MHC and the Bank’s previous mid-tier holding company, Community First Bancshares, Inc. (“Community First”), ceased to exist effective upon the closing of the Conversion. The results of the stock offering were previously reported in Community First’s press release dated January 18, 2021. Approximately 6,875,643 shares of Company common stock are outstanding as a result of the Conversion, before taking into account adjustments for fractional shares. The Company’s common stock is expected to trade on the Nasdaq Capital Market under the trading symbol “AFBI” beginning on January 21, 2021. Book entry statements reflecting shares purchased in the offering are expected to be mailed to purchasers promptly following the closing. Persons wishing to confirm their orders may contact the Stock Information Center at (678) 729-9788. Performance Trust Capital Partners, LLC acted as marketing agent for the Company in connection with the offering. Luse Gorman PC acted as legal counsel to the Company in connection with the Conversion and offering. Silver, Freedman, Taff & Tiernan LLP acted as legal counsel to Performance Trust Capital Partners, LLC in connection with the offering. Certain statements contained herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “may,” “will,” “would,” “intend,” “believe,” “expect,” “plan,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. These statements are based upon the current beliefs and expectations of Company management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. About Affinity Bancshares, Inc. The Company is a Maryland corporation based in Covington, Georgia. The Company’s banking subsidiary, now named Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, a loan production office in Braselton, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets.
- 01/20/2021
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