Affinity Bancshares, Inc. Announces Fourth Quarter 2025 Financial Results

COVINGTON, Ga.--(BUSINESS WIRE)--Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $2.1 million for the three months ended December 31, 2025, as compared to $1.3 million for the three months ended December 31, 2024.

	At or for the three months ended,
Performance Ratios:	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Net income (in thousands)	$	2,132		$	2,217		$	2,152		$	1,831		$	1,345
Diluted earnings per share		0.34			0.34			0.33			0.28			0.20
Operating income ^(1)		2,510			2,389			2,316			1,996			1,738
Adjusted diluted earnings per share ^(1)		0.40			0.37			0.36			0.30			0.26
Common book value per share		20.84			20.25			19.66			19.25			20.14
Tangible book value per share ^(1)		17.89			17.34			16.80			16.40			17.30
Total assets (in thousands)		881,697			925,221			933,799			912,496			866,817
Return on average assets		0.92	%		0.94	%		0.94	%		0.83	%		0.61	%
Return on average equity		6.69	%		7.03	%		7.01	%		5.68	%		4.14	%
Equity to assets		14.41	%		13.55	%		13.29	%		13.40	%		14.90	%
Tangible equity to tangible assets ^(1)		12.62	%		11.83	%		11.58	%		11.65	%		13.08	%
Net interest margin		3.77	%		3.49	%		3.57	%		3.52	%		3.56	%
Efficiency ratio		63.55	%		64.96	%		65.72	%		68.55	%		75.95	%

(1) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Net Income

• Net income was $8.3 million for year ended December 31, 2025 as compared to $5.4 million for the year ended December 31, 2024, as a result of an increase in net interest income along with a decrease in noninterest expenses, primarily due to merger-related expenses for the 2024 period.
• Operating income for the year ended December 31, 2025 was $9.2 million as compared to $6.8 million for the year ended December 31, 2024.
• Net income was $2.1 million for three months ended December 31, 2025 as compared to $1.3 million for the three months ended December 31, 2024, as a result of an increase in net interest income along with a decrease in noninterest expenses.
• Operating income for the three months ended December 31, 2025 was $2.5 million as compared to $1.7 million for the three months ended December 31, 2024.

Results of Operations

• Net interest income was $31.1 million for the year ended December 31, 2025 compared to $29.2 million for the year ended December 31, 2024. The increase was due to an increase in interest income on loans and interest-earning deposits offset by increases in deposit costs and a decrease in interest income on investment securities.
• Net interest margin for the year ended December 31, 2025 increased five basis point to 3.59% from 3.54% for the year ended December 31, 2024.
• Noninterest income decreased $91,000 to $1.9 million for the year ended December 31, 2025, primarily due to lower service charges on deposit accounts and the absence of a gain on the sale of other real estate recorded in 2024.
• Non-interest expense decreased $2.1 million to $21.7 million for the year ended December 31, 2025 compared to the 2024 period, due mainly to a decrease in other expenses, and specifically merger-related expenses.
• Net interest income was $8.3 million for the three months ended December 31, 2025 compared to $7.4 million for the three months ended December 31, 2024. The increase was due to an increase in interest income on loans and interest-earning deposits, partially offset by increases in deposit costs and a decrease in interest income on investment securities.
• Net interest margin for the three months ended December 31, 2025 increased to 3.77% from 3.56% for the three months ended December 31, 2024. The increase in the margin relates to a decrease in yields on our interest-bearing liabilities of 21 basis points offset by a decrease in our yield on interest earning deposits and investments held to maturity as we sold the remainder of our investment held to maturity portfolio in the fourth quarter of 2025.
• Noninterest income increased $154,000 to $315,000 for the three months ended December 31, 2025.
• Non-interest expense decreased $324,000 to $5.4 million for the three months ended December 31, 2025 compared to the 2024 period, due mainly to a decrease in salaries and employee benefits and other expense.

Financial Condition

• Total assets increased $14.9 million to $881.7 million at December 31, 2025 from $866.8 million at December 31, 2024, as we experienced loan growth and an increase in interest earning deposits which was funded from growth in our deposits, and from the sale of our investment held to maturity portfolio.
• Total gross loans increased $28.6 million to $742.7 million at December 31, 2025 from $714.1 million at December 31, 2024. The increase was due to steady loan demand in construction and consumer loans, and commercial loans secured by real estate - owner occupied.
• Non-owner occupied office loans totaled $40.6 million at December 31, 2025; the average LTV on these loans is 44.9%, including
  • $15.4 million medical/dental tenants and
  • $25.2 million to other various tenants.
• Investment securities available-for-sale unrealized losses were $3.7 million, net of tax.
• Cash and cash equivalents increased $12.5 million to $53.9 million at December 31, 2025 from $41.4 million at December 31, 2024.
• Deposits increased by $21.5 million to $695.0 million at December 31, 2025 compared to $673.5 million at December 31, 2024, with a $19.8 million net increase in demand deposits and a $1.7 million increase in certificates of deposit.
• Borrowings decreased by $4.8 million to $54.0 million at December 31, 2025 compared to $58.8 million at December 31, 2024 as an advance from the Bank Term Funding program was repaid in full in the first quarter of 2025.
• Equity decreased $2.1 million to $127.0 million at December 31, 2025 from $129.1 million at December 31, 2024 from payment of a $1.50 per share dividend that was declared and paid in first quarter, along with $6.0 million of common stock repurchases, offset by earnings of $8.3 million and an improvement in the unrealized loss on available for sale securities of $2.1 million, net of tax.

Asset Quality

• Non-performing loans decreased to $3.6 million at December 31, 2025 from $4.8 million at December 31, 2024.
• The allowance for credit losses as a percentage of non-performing loans was 251.9% at December 31, 2025, as compared to 177.9% at December 31, 2024.
• The allowance for credit losses to total loans increased to 1.21% at December 31, 2025 from 1.19% at December 31, 2024.
• Net loan recoveries were $228,000 for the year ended December 31, 2025, as compared to net loan charge-offs of $650,000 for the year ended December 31, 2024.

About Affinity Bancshares, Inc.

The Company is a Maryland corporation based in Covington, Georgia. The Company’s banking subsidiary, Affinity Bank, opened in 1928 and currently operates a full-service office in Atlanta, Georgia, two full-service offices in Covington, Georgia, and a loan production office serving the Alpharetta and Cumming, Georgia markets.

Forward-Looking Statements

In addition to historical information, this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describe the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in general economic conditions, interest rates and inflation; changes in asset quality; our ability to access cost-effective funding; fluctuations in real estate values; changes in laws or regulations; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; changes in technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; changes in the value of our goodwill and other intangible assets; the effects of an extended U.S. Government shutdown; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; and the effects of natural disasters and geopolitical events, including terrorism, conflict and acts of war. These risks and other uncertainties are further discussed in the reports that the Company files with the Securities and Exchange Commission.

Average Balance Sheets

The following tables set forth average balance sheets, average annualized yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are monthly average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense.

	For the Three Months Ended December 31,
	2025							2024
	Average Outstanding Balance		Interest		Average Yield/Rate			Average Outstanding Balance		Interest		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans	$	740,016	$	11,814		6.33	%	$	704,198	$	10,774		6.09	%
Investment securities held-to-maturity		10,395		128		4.89	%		29,238		451		6.14	%
Investment securities available-for-sale		42,280		451		4.23	%		46,455		402		3.44	%
Interest-earning deposits and federal funds		70,417		673		3.79	%		44,260		495		4.45	%
Other investments		6,260		95		6.02	%		6,172		105		6.77	%
Total interest-earning assets		869,368		13,161		6.01	%		830,323		12,227		5.86	%
Non-interest-earning assets		46,429							47,331
Total assets	$	915,797						$	877,654
Interest-bearing liabilities:
Interest-bearing checking accounts	$	90,543	$	123		0.54	%	$	83,529	$	104		0.50	%
Money market accounts		167,973		1,228		2.90	%		152,305		1,264		3.30	%
Savings accounts		94,932		721		3.01	%		73,533		529		2.86	%
Certificates of deposit		229,503		2,312		4.00	%		214,165		2,272		4.22	%
Total interest-bearing deposits		582,951		4,384		2.98	%		523,532		4,169		3.17	%
FHLB advances and other borrowings		54,000		525		3.86	%		58,815		625		4.23	%
Total interest-bearing liabilities		636,951		4,909		3.06	%		582,347		4,794		3.27	%
Non-interest-bearing liabilities		152,362							166,088
Total liabilities		789,313							748,435
Total stockholders' equity		126,484							129,219
Total liabilities and stockholders' equity	$	915,797						$	877,654
Net interest rate spread						2.95	%						2.59	%
Net interest income			$	8,252						$	7,433
Net interest margin						3.77	%						3.56	%

	For the Year Ended December 31,
	2025							2024
	Average Outstanding Balance		Interest		Average Yield/Rate			Average Outstanding Balance		Interest		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans	$	728,818	$	44,876		6.16	%	$	687,487	$	41,349		6.01	%
Investment securities held-to-maturity		21,797		1,330		6.10	%		32,723		2,018		6.17	%
Investment securities available-for-sale		40,560		1,495		3.69	%		47,449		1,778		3.75	%
Interest-earning deposits and federal funds		70,591		2,926		4.15	%		49,385		2,459		4.98	%
Other investments		6,231		382		6.13	%		5,801		369		6.36	%
Total interest-earning assets		867,997		51,009		5.88	%		822,845		47,973		5.83	%
Non-interest-earning assets		47,708							49,505
Total assets	$	915,705						$	872,350
Interest-bearing liabilities:
Interest-bearing checking accounts	$	85,552	$	429		0.50	%	$	87,058	$	448		0.51	%
Money market accounts		165,222		4,950		3.00	%		147,049		4,760		3.24	%
Savings accounts		87,611		2,570		2.93	%		73,176		2,091		2.86	%
Certificates of deposit		242,720		9,831		4.05	%		217,517		9,157		4.21	%
Total interest-bearing deposits		581,105		17,780		3.06	%		524,800		16,456		3.14	%
FHLB advances and other borrowings		54,211		2,092		3.86	%		55,104		2,351		4.27	%
Total interest-bearing liabilities		635,316		19,872		3.13	%		579,904		18,807		3.24	%
Non-interest-bearing liabilities		154,016							166,702
Total liabilities		789,332							746,606
Total stockholders' equity		126,373							125,744
Total liabilities and stockholders' equity	$	915,705						$	872,350
Net interest rate spread						2.75	%						2.59	%
Net interest income			$	31,137						$	29,166
Net interest margin						3.59	%						3.54	%

AFFINITY BANCSHARES, INC. Consolidated Balance Sheets (unaudited)
	December 31, 2025			December 31, 2024
	(Dollars in thousands except per share amounts)
Assets
Cash and due from banks	$	6,924		$	7,092
Interest-earning deposits in other depository institutions		46,926			34,333
Cash and cash equivalents		53,850			41,425
Investment securities available-for-sale		38,759			36,502
Investment securities held-to-maturity (estimated fair value of $27,286 net of allowance for credit losses of $45 at December 31, 2024)		—			27,299
Other investments		6,264			6,175
Loans		742,682			714,115
Allowance for credit loss on loans		(8,994	)		(8,496	)
Net loans		733,688			705,619
Premises and equipment, net		2,836			3,261
Bank owned life insurance		17,161			16,487
Intangible assets		17,984			18,175
Other assets		11,155			11,874
Total assets	$	881,697		$	866,817
Liabilities and Stockholders' Equity
Liabilities:
Non-interest-bearing checking	$	132,796		$	151,395
Interest-bearing checking		82,612			73,841
Money market accounts		157,439			148,752
Savings accounts		96,981			76,053
Certificates of deposit		225,177			223,440
Total deposits		695,005			673,481
Federal Home Loan Bank advances and other borrowings		54,000			58,815
Accrued interest payable and other liabilities		5,673			5,406
Total liabilities		754,678			737,702
Stockholders' equity:
Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,095,631 issued and outstanding at December 31, 2025 and 6,409,598 issued and outstanding at December 31, 2024)		61			64
Preferred stock (10,000,000 shares authorized, no shares outstanding)		—			—
Additional paid in capital		58,069			62,355
Unearned ESOP shares		(3,570	)		(4,378	)
Retained earnings		76,111			76,786
Accumulated other comprehensive loss		(3,652	)		(5,712	)
Total stockholders' equity		127,019			129,115
Total liabilities and stockholders' equity	$	881,697		$	866,817

AFFINITY BANCSHARES, INC. Consolidated Statements of Income (unaudited)
	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
	(Dollars in thousands except per share amounts)
Interest income:
Loans, including fees	$	11,814		$	10,774		$	44,876		$	41,349
Investment securities		674			958			3,207			4,165
Interest-earning deposits		673			495			2,926			2,459
Total interest income		13,161			12,227			51,009			47,973
Interest expense:
Deposits		4,384			4,169			17,780			16,456
FHLB advances and other borrowings		525			625			2,092			2,351
Total interest expense		4,909			4,794			19,872			18,807
Net interest income before provision for credit losses		8,252			7,433			31,137			29,166
Provision for credit losses		46			225			125			438
Net interest income after provision for credit losses		8,206			7,208			31,012			28,728
Noninterest income:
Service charges on deposit accounts		364			371			1,384			1,520
Loss on sales of investment securities available for sale and held to maturity		(260	)		(385	)		(260	)		(385	)
Net gain on sale of other real estate owned		—			—			—			135
Other		211			175			800			745
Total noninterest income		315			161			1,924			2,015
Noninterest expenses:
Salaries and employee benefits		3,090			3,273			12,904			13,126
Occupancy		586			617			2,368			2,451
Data processing		579			549			2,203			2,087
Other		1,189			1,329			4,224			6,097
Total noninterest expenses		5,444			5,768			21,699			23,761
Income before income taxes		3,077			1,601			11,237			6,982
Income tax expense		945			256			2,905			1,541
Net income	$	2,132		$	1,345		$	8,332		$	5,441
Weighted average common shares outstanding
Basic		6,136,126			6,411,014			6,277,003			6,414,182
Diluted		6,322,749			6,620,602			6,445,771			6,575,406
Basic earnings per share	$	0.35		$	0.21		$	1.33		$	0.85
Diluted earnings per share	$	0.34		$	0.20		$	1.29		$	0.83

Explanation of Certain Unaudited Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. Additionally, the Company believes the following information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation tables below for details on the earnings impact of these items.

	For the Three Months Ended															For the Year Ended
Non-GAAP Reconciliation	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Operating net income reconciliation
Net income (GAAP)	$	2,132		$	2,217		$	2,152		$	1,831		$	1,345		$	8,332		$	5,441
Net loss on securities available for sale and held to maturity		260			—			—			—			385			260			385
ESOP Compensation expense related to dividend		225			220			210			211			—			866			—
Merger-related expenses		—			—			—			—			119			—			1,304
Income tax expense		(107	)		(48	)		(46	)		(46	)		(111	)		(247	)		(372	)
Operating net income	$	2,510		$	2,389		$	2,316		$	1,996		$	1,738		$	9,211		$	6,758
Weighted average diluted shares		6,322,749			6,427,697			6,457,397			6,547,817			6,620,602			6,445,771			6,575,406
Adjusted diluted earnings per share	$	0.40		$	0.37		$	0.36		$	0.30		$	0.26		$	1.43		$	1.03
Tangible book value per common share reconciliation
Book Value per common share (GAAP)	$	20.84		$	20.25		$	19.66		$	19.25		$	20.14		$	20.84		$	20.14
Effect of goodwill and other intangibles		(2.95	)		(2.91	)		(2.86	)		(2.85	)		(2.84	)		(2.95	)		(2.84	)
Tangible book value per common share	$	17.89		$	17.34		$	16.80		$	16.40		$	17.30		$	17.89		$	17.30
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)		14.41	%		13.55	%		13.29	%		13.40	%		14.90	%		14.41	%		14.90	%
Effect of goodwill and other intangibles		(1.79	)%		(1.72	)%		(1.71	)%		(1.75	)%		(1.81	)%		(1.79	)%		(1.81	)%
Tangible equity to tangible assets (1)		12.62	%		11.83	%		11.58	%		11.65	%		13.08	%		12.62	%		13.08	%

(1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets.