Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the
“Company”), February 1, 2024, the holding company for Affinity Bank
(the “Bank”), today announced net income of $1.5 million for the
three months ended December 31, 2023, as compared to $1.7 million
for the three months ended December 31, 2022.
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At or for the three months
ended,
Performance Ratios:
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
Net income (in thousands)
$
1,514
$
1,623
$
1,590
$
1,722
$
1,699
Diluted earnings per share
0.23
0.25
0.24
0.26
0.26
Common book value per share
18.94
18.50
18.34
18.02
17.73
Tangible book value per share (1)
16.08
15.63
15.47
15.20
14.92
Total assets (in thousands)
843,258
855,431
876,905
932,302
791,283
Return on average assets
0.70
%
0.74
%
0.71
%
0.84
%
0.84
%
Return on average equity
5.03
%
5.42
%
5.37
%
5.90
%
5.78
%
Equity to assets
14.41
%
13.85
%
13.45
%
12.69
%
14.80
%
Tangible equity to tangible assets (1)
12.50
%
11.95
%
11.59
%
10.92
%
12.75
%
Net interest margin
3.32
%
3.36
%
3.17
%
3.58
%
3.85
%
Efficiency ratio
74.30
%
71.78
%
71.68
%
69.73
%
71.38
%
(1) Non-GAAP measure - see “Explanation of
Certain Unaudited Non-GAAP Financial Measures” for more information
and reconciliation to GAAP.
Net Income
- Net income was $1.5 million for the three months ended December
31, 2023, as compared to $1.7 million for the three months ended
December 31, 2022, as a result of an increase in deposit interest
expense offset partially by an increase in interest income.
- Net income was $6.4 million for the year ended December 31,
2023 as compared to $7.1 million for the year ended December 31,
2022, as a result of an increase in deposit interest expense and
recognition of the remaining fair value mark on acquired Federal
Home Loan Bank ("FHLB") advances that was recognized upon payoff
during the first quarter 2022, partially offset by an increase in
interest income.
Results of Operations
- Net interest income was $6.7 million for the three months ended
December 31, 2023 compared to $7.3 million for the three months
ended December 31, 2022. The decrease was due to an increase in
deposit costs partially offset by an increase in interest
income.
- Net interest income was $27.2 million for the year ended
December 31, 2023 compared to $29.8 million for the year ended
December 31, 2022. The decrease was due to an increase in deposit
costs and recognition of the remaining fair value mark on acquired
FHLB advances that was recognized upon payoff during the first
quarter of 2022, partially offset by an increase in interest
income.
- Net interest margin for the three months ended December 31,
2023 decreased to 3.32% from 3.85% for the three months ended
December 31, 2022. Net interest margin for the year ended December
31, 2023 decreased to 3.35% from 4.14% for the year ended December
31, 2022. The decreases in the margin relate to increases in our
costs of funds exceeding our increases in our yield on
interest-earning assets. The decrease in the margin for the year
ended December 31, 2023 was also impacted by the fair value mark on
the FHLB advances from acquisition that was recognized upon payoff
during the first quarter of 2022.
- Adjusted net interest margin for the year ended December 31,
2023 (see Non-GAAP reconciliation) decreased 65 basis points from
4.00% for the year ended December 31, 2022 to 3.35%.
- Noninterest income increased $40,000 to $606,000 for the three
months ended December 31, 2023 and had an increase of $64,000 to
$2.5 million for the year ended December 31, 2023 as compared to
2022.
- Non-interest expense decreased $209,000 to $5.4 million for the
three months ended December 31, 2023 compared to the same period in
2022, due to decreases in salaries, occupancy, and advertising
expenses offset by increases in data processing and other expenses.
Non-interest expense decreased $808,000 to $21.3 million for the
year ended December 31, 2023 compared to 2022 and was a result of
the FHLB prepayment penalties paid in the first quarter of 2022 and
decreases in advertising expense and other expenses.
Financial Condition
- Total assets increased $52.0 million to $843.3 million at
December 31, 2023 from $791.3 million at December 31, 2022, as we
increased cash to further enhance liquidity.
- Total gross loans increased $13.6 million to $659.9 million at
December 31, 2023 from $646.2 million at December 31, 2022.
- Non-owner occupied office loans totaled $26.7 million at
December 31, 2023; average loan-to-value ratio on these loans is
41.0%, including
- $11.0 million medical/dental tenants and
- $15.7 million to other various tenants.
- Investment securities held-to-maturity unrealized losses were
$277,000, net of tax. Investment securities available-for-sale
unrealized losses were $6.3 million, net of tax.
- Cash and cash equivalents increased $23.7 million to $50.0
million at December 31, 2023 from $26.3 million at December 31,
2022, primarily due to an increase in deposits and borrowings.
- Deposits increased by $17.2 million to $674.4 million at
December 31, 2023 compared to $657.2 million at December 31, 2022,
in part due to an increase in certificates of deposits of $95.0
million offset by a $77.7 million decrease in non-time deposits, as
customers increased deposits in higher-yielding accounts during the
current interest rate environment. The certificates of deposit
increase included brokered deposits issued in 2023 totaling $72.4
million. Brokered deposits have an average life of 2.4 years and an
average interest rate of 4.87%.
- Uninsured deposits were approximately $95.5 million at December
31, 2023 and represented 14.0% of total deposits, excluding
deposits collateralized by public funds and internal accounts.
- Borrowings increased by $30.0 million to $40.0 million at
December 31, 2023 compared to $10.0 million at December 31, 2022 as
we continue to evaluate borrowing needs related to enhancing bank
liquidity.
Asset Quality
- Non-performing loans increased to $7.4 million at December 31,
2023 from $6.7 million at December 31, 2022.
- The allowance for credit losses as a percentage of
non-performing loans was 120.1% at December 31, 2023, as compared
to 138.8% at December 31, 2022.
- Allowance for credit losses to total loans decreased to 1.35%
at December 31, 2023 from 1.46% at December 31, 2022.
- Net loan charge-offs were $404,000 for the year ended December
31, 2023, as compared to net recoveries of $62,000 for the year
ended December 31, 2022.
About Affinity Bancshares,
Inc.
The Company is a Maryland corporation based in Covington,
Georgia. The Company’s banking subsidiary, Affinity Bank, opened in
1928 and currently operates a full-service office in Atlanta,
Georgia, two full-service offices in Covington, Georgia, and a loan
production office serving the Alpharetta and Cumming, Georgia
markets.
Forward-Looking
Statements
In addition to historical information, this release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which describe the future
plans, strategies and expectations of the Company. Forward-looking
statements can be identified by the use of words such as
“estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,”
“plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,”
“would,” “contemplate,” “continue,” “target” and words of similar
meaning. Forward-looking statements are based on our current
beliefs and expectations and are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change. Accordingly, you should not place undue reliance on such
statements. We are under no duty to and do not take any obligation
to update any forward-looking statements after the date of this
report. Factors which could have a material adverse effect on the
operations of the Company and its subsidiaries include, but are not
limited to, changes in general economic conditions, interest rates
and inflation; changes in asset quality; our ability to access
cost-effective funding; fluctuations in real estate values; changes
in laws or regulations; changes in liquidity, including the size
and composition of our deposit portfolio and the percentage of
uninsured deposits in the portfolio; changes in technology;
failures or breaches of our IT security systems; our ability to
introduce new products and services and capitalize on growth
opportunities; changes in the value of our goodwill and other
intangible assets; our ability to successfully integrate acquired
operations or assets; changes in accounting policies and practices;
our ability to retain key employees; the effects of any pandemic;
and the effects of natural disasters and geopolitical events,
including terrorism, conflict and acts of war. These risks and
other uncertainties are further discussed in the reports that the
Company files with the Securities and Exchange Commission.
Average Balance Sheets
The following tables set forth average balance sheets, average
annualized yields and costs, and certain other information for the
periods indicated. No tax-equivalent yield adjustments have been
made, as the effects would be immaterial. All average balances are
monthly average balances. Non-accrual loans were included in the
computation of average balances. The yields set forth below include
the effect of deferred fees, discounts, and premiums that are
amortized or accreted to interest income or interest expense.
For the Three Months Ended
December 31,
2023
2022
Average Outstanding
Balance
Interest
Average Yield/Rate
Average Outstanding
Balance
Interest
Average Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans
$
661,913
$
9,290
5.57
%
$
650,922
$
8,032
4.90
%
Investment securities held-to-maturity
34,194
528
6.13
%
8,809
130
5.85
%
Investment securities
available-for-sale
47,268
473
3.97
%
42,653
323
3.00
%
Interest-earning deposits and federal
funds
53,442
709
5.26
%
53,238
485
3.61
%
Other investments
5,177
83
6.36
%
758
8
4.19
%
Total interest-earning assets
801,994
11,083
5.48
%
756,380
8,978
4.71
%
Non-interest-earning assets
52,938
50,538
Total assets
$
854,932
$
806,918
Interest-bearing liabilities:
Interest-bearing checking accounts
$
90,298
$
99
0.43
%
$
95,200
$
42
0.18
%
Money market accounts
143,312
1,069
2.96
%
161,901
470
1.15
%
Savings accounts
76,732
558
2.89
%
103,772
499
1.91
%
Certificates of deposit
221,817
2,352
4.21
%
117,102
610
2.07
%
Total interest-bearing deposits
532,159
4,078
3.04
%
477,975
1,621
1.35
%
FHLB advances and other borrowings
29,348
300
4.06
%
2,717
20
2.92
%
Total interest-bearing liabilities
561,507
4,378
3.09
%
480,692
1,641
1.35
%
Non-interest-bearing liabilities
174,077
209,683
Total liabilities
735,584
690,375
Total stockholders' equity
119,348
116,543
Total liabilities and stockholders'
equity
$
854,932
$
806,918
Net interest rate spread
2.39
%
3.36
%
Net interest income
$
6,705
$
7,337
Net interest margin
3.32
%
3.85
%
For the Year Ended December
31,
2023
2022
Average Outstanding
Balance
Interest
Average Yield/Rate
Average Outstanding
Balance
Interest
Average Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans
$
660,045
$
35,422
5.37
%
$
624,908
$
30,045
4.81
%
Investment securities held-to-maturity
33,850
2,078
6.14
%
2,220
130
5.86
%
Investment securities
available-for-sale
49,024
1,772
3.61
%
45,594
1,150
2.52
%
Interest-earning deposits and federal
funds
65,333
3,236
4.95
%
45,674
771
1.69
%
Other investments
3,014
192
6.37
%
1,027
38
3.70
%
Total interest-earning assets
811,266
42,700
5.26
%
719,423
32,134
4.47
%
Non-interest-earning assets
51,987
51,397
Total assets
$
863,253
$
770,820
Interest-bearing liabilities:
Interest-bearing checking accounts
$
92,030
$
271
0.29
%
$
96,892
$
176
0.18
%
Money market accounts
140,630
3,542
2.52
%
154,237
752
0.49
%
Savings accounts
85,555
2,238
2.62
%
89,015
856
0.96
%
Certificates of deposit
211,285
8,042
3.81
%
97,948
1,449
1.48
%
Total interest-bearing deposits
529,500
14,093
2.66
%
438,092
3,233
0.74
%
FHLB advances and other borrowings
32,808
1,409
4.29
%
9,887
(854
)
(8.64
)%
Total interest-bearing liabilities
562,308
15,502
2.76
%
447,979
2,379
0.53
%
Non-interest-bearing liabilities
182,144
204,842
Total liabilities
744,452
652,821
Total stockholders' equity
118,801
117,999
Total liabilities and stockholders'
equity
$
863,253
$
770,820
Net interest rate spread
2.50
%
3.94
%
Net interest income
$
27,198
$
29,755
Net interest margin
3.35
%
4.14
%
AFFINITY BANCSHARES,
INC.
Consolidated Balance
Sheets
December 31, 2023
December 31, 2022
(Dollars in thousands except
per share amounts)
Assets
Cash and due from banks
$
6,030
$
2,928
Interest-earning deposits in other
depository institutions
43,995
23,396
Cash and cash equivalents
50,025
26,324
Investment securities
available-for-sale
48,561
46,200
Investment securities held-to-maturity
(estimated fair value of $33,835, net of allowance for credit
losses of $45 at December 31, 2023 and estimated fair value of
$26,251 at December 31, 2022)
34,206
26,527
Other investments
5,434
1,082
Loans
659,876
646,234
Allowance for credit loss on loans
(8,921
)
(9,325
)
Net loans
650,955
636,909
Other real estate owned
2,850
2,901
Premises and equipment, net
3,797
4,257
Bank owned life insurance
16,086
15,724
Intangible assets
18,366
18,558
Other assets
12,978
12,801
Total assets
$
843,258
$
791,283
Liabilities and Stockholders'
Equity
Liabilities:
Non-interest-bearing checking
$
154,689
$
190,297
Interest-bearing checking
85,362
91,167
Money market accounts
138,673
148,097
Savings accounts
74,768
101,622
Certificates of deposit
220,951
125,989
Total deposits
674,443
657,172
Federal Home Loan Bank advances and other
borrowings
40,000
10,025
Accrued interest payable and other
liabilities
7,299
6,983
Total liabilities
721,742
674,180
Stockholders' equity:
Common stock (par value $0.01 per share,
40,000,000 shares authorized; 6,416,628 issued and outstanding at
December 31, 2023 and 6,605,384 issued and outstanding at December
31, 2022)
64
66
Preferred stock (10,000,000 shares
authorized, no shares outstanding)
—
—
Additional paid in capital
61,026
63,130
Unearned ESOP shares
(4,587
)
(4,795
)
Retained earnings
71,345
65,357
Accumulated other comprehensive loss
(6,332
)
(6,655
)
Total stockholders' equity
121,516
117,103
Total liabilities and stockholders'
equity
$
843,258
$
791,283
AFFINITY BANCSHARES,
INC.
Consolidated Statements of
Income
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
(Dollars in thousands except
per share amounts)
Interest income:
Loans, including fees
$
9,290
$
8,032
$
35,422
$
30,045
Investment securities
1,084
461
4,042
1,318
Interest-earning deposits
709
485
3,236
771
Total interest income
11,083
8,978
42,700
32,134
Interest expense:
Deposits
4,078
1,621
14,093
3,233
FHLB advances and other borrowings
300
20
1,409
(854
)
Total interest expense
4,378
1,641
15,502
2,379
Net interest income before provision for
credit losses
6,705
7,337
27,198
29,755
Provision for credit losses
(49
)
50
(42
)
704
Net interest income after provision for
credit losses
6,754
7,287
27,240
29,051
Noninterest income:
Service charges on deposit accounts
398
406
1,620
1,611
Other
208
160
846
791
Total noninterest income
606
566
2,466
2,402
Noninterest expenses:
Salaries and employee benefits
3,205
3,002
12,252
12,221
Occupancy
584
725
2,503
2,523
Data processing
520
471
2,025
1,947
FHLB prepayment penalties
—
—
—
647
Other
1,123
1,443
4,538
4,788
Total noninterest expenses
5,432
5,641
21,318
22,126
Income before income taxes
1,928
2,212
8,388
9,327
Income tax expense
414
513
1,940
2,193
Net income
$
1,514
$
1,699
$
6,448
$
7,134
Weighted average common shares
outstanding
Basic
6,406,156
6,628,847
6,476,767
6,669,389
Diluted
6,486,442
6,708,922
6,557,053
6,761,771
Basic earnings per share
$
0.24
$
0.26
$
1.00
$
1.07
Diluted earnings per share
$
0.23
$
0.26
$
0.98
$
1.06
Explanation of Certain Unaudited
Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP.
Additionally, the Company believes the following information is
utilized by regulators and market analysts to evaluate a company’s
financial condition and, therefore, such information is useful to
investors. These disclosures should not be viewed as a substitute
for financial results in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures which may
be presented by other companies. Refer to the Non-GAAP
Reconciliation tables below for details on the earnings impact of
these items.
For the Three Months
Ended
Non-GAAP Reconciliation
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
Tangible book value per common share
reconciliation
Book Value per common share (GAAP)
$
18.94
$
18.50
$
18.34
$
18.02
$
17.73
Effect of goodwill and other
intangibles
(2.86
)
(2.87
)
(2.87
)
(2.82
)
(2.81
)
Tangible book value per common share
$
16.08
$
15.63
$
15.47
$
15.20
$
14.92
Tangible equity to tangible assets
reconciliation
Equity to assets (GAAP)
14.41
%
13.85
%
13.45
%
12.69
%
14.80
%
Effect of goodwill and other
intangibles
(1.91
)%
(1.90
)%
(1.86
)%
(1.77
)%
(2.05
)%
Tangible equity to tangible assets (1)
12.50
%
11.95
%
11.59
%
10.92
%
12.75
%
(1) Tangible assets is total assets less
intangible assets. Tangible equity is total equity less intangible
assets.
For the
Year Ended December
31,
2023
2022
Operating net income
reconciliation
Net income (GAAP)
$
6,448
$
7,134
FHLB mark from called borrowings
—
(988
)
FHLB prepayment penalties
—
647
Income tax expense
—
87
Operating net income
$
6,448
$
6,880
Weighted average diluted shares
6,557,053
6,761,771
Adjusted diluted earnings per share
$
0.98
$
1.02
Net interest income
$
27,198
$
29,755
FHLB mark from called borrowings
—
(988
)
Adjusted Net interest income
$
27,198
$
28,767
Adjusted Net interest income
reconciliation
Net interest margin (GAAP)
3.35
%
4.14
%
Effect of FHLB mark from called
borrowings
0.00
(0.14
)
Adjusted Net interest margin
3.35
%
4.00
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240201215970/en/
Edward J. Cooney Chief Executive Officer (678) 742-9990
Grafico Azioni Affinity Bancshares (NASDAQ:AFBI)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Affinity Bancshares (NASDAQ:AFBI)
Storico
Da Gen 2024 a Gen 2025
