Affinity Bancshares (AFBI), a community bank holding company known for its commercial and dental sector lending, reported its second quarter 2025 earnings on July 25, 2025. The headline news from the release was significant growth in both net income and adjusted (non-GAAP) earnings per share, along with improved efficiency and continued deposit and loan expansion. The period was marked by a jump in net income to $2.2 million and adjusted diluted EPS (non-GAAP) to $0.36, both up sharply from the prior year. ...

Affinity Bancshares, Inc. Announces Second Quarter 2025 Financial Results Affinity Bancshares, Inc. (NASDAQ:"AFBI") (the "Company"), the holding company for Affinity Bank (the "Bank"), today announced net income of $2.2 million for the three months ended June 30, 2025, as compared to $1.0 million for the three months ended June 30, 2024. | | | | | | | At or for the three months ended, | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | December 31, | | September 30, | ...

Core Insights - The financial sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Group 1: Oversold Stocks - LPL Financial Holdings Inc (LPLA) has an RSI of 28.5, with a stock price decline of approximately 7% over the past month, reaching a 52-week low of $187.19 [7] - Affinity Bancshares Inc (AFBI) has an RSI of 24.4, with a stock price decrease of around 15% over the past six months, hitting a 52-week low of $17.00 [7] - Landmark Bancorp Inc (LARK) has an RSI of 21.9, with a stock price drop of about 16% over the past month, reaching a 52-week low of $17.86 [7] Group 2: Company Performance - LPL Financial's shares closed at $354.10 after a 5.4% decline [7] - Affinity Bancshares' shares closed at $18.50 [7] - Landmark Bancorp reported a first-quarter EPS of 81 cents, an increase from 49 cents a year ago, and its shares closed at $24.13 after a 0.4% gain [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period Commission File No. 001-39914 Affinity Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) Maryland 82-1147778 (State or Other Jurisdiction of Incorporati ...

Net Income Affinity Bancshares, Inc. Announces First Quarter 2025 Financial Results 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, 2025, as compared to $1.3 million for the three months ended March 31, 2024. | | | | | | At or for the three months ended, | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | December 31, | | September ...

Financial Performance - Net income decreased by $1.0 million, or 15.6%, to $5.4 million for the year ended December 31, 2024, compared to $6.4 million for the year ended December 31, 2023, attributed to higher deposit costs and noninterest expenses [190]. - Net income decreased by $1.0 million, or 15.6%, to $5.4 million for the year ended December 31, 2024, compared to $6.4 million for 2023 [210]. - Noninterest income decreased by $451,000, or 18.3%, to $2.0 million for the year ended December 31, 2024, from $2.5 million for 2023 [221]. - Income tax expense decreased to $1.5 million for the year ended December 31, 2024, compared to $1.9 million for the year ended December 31, 2023, due to decreased income before income taxes [224]. Asset and Liability Management - Total assets increased by $23.6 million, or 2.8%, to $866.8 million at December 31, 2024, from $843.3 million at December 31, 2023, primarily due to an increase in net loans of $54.7 million, or 8.4% [189]. - Total deposits decreased by $962,000, or 0.1%, to $673.5 million at December 31, 2024, with increases in certificates of deposit and money market accounts offset by decreases in non-interest-bearing checking accounts [202]. - Cash and cash equivalents decreased by $8.6 million, or 17.2%, to $41.4 million at December 31, 2024, due to loan funding at year end [199]. - Securities held-to-maturity decreased to $27.3 million at December 31, 2024, from $34.2 million at December 31, 2023, as securities were called throughout the year [201]. - The loan-to-deposit ratio at December 31, 2024, was 106.0%, compared to 97.8% at December 31, 2023, indicating a higher reliance on loans relative to deposits [202]. Income and Expense Analysis - Interest income increased by $5.3 million, or 12.3%, to $48.0 million for the year ended December 31, 2024, driven by a $5.9 million increase in interest income on loans [190]. - Interest income increased by $5.3 million, or 12.3%, to $48.0 million for the year ended December 31, 2024, from $42.7 million for 2023 [211]. - Interest expense increased by $3.3 million, or 21.3%, to $18.8 million for the year ended December 31, 2024, reflecting increases across all interest expense categories [190]. - Interest expense increased by $3.3 million, or 21.3%, to $18.8 million for the year ended December 31, 2024, compared to $15.5 million for 2023 [214]. - Net interest income before provision for credit losses increased by $2.0 million, or 7.2%, to $29.2 million for the year ended December 31, 2024, from $27.2 million for 2023 [217]. - Net interest margin improved to 3.54% for the year ended December 31, 2024, compared to 3.35% for 2023 [217]. - Non-interest expenses increased by $2.4 million, or 11.5%, to $23.8 million for the year ended December 31, 2024, from $21.3 million for the year ended December 31, 2023 [223]. Credit and Provisions - Provisions for credit losses recorded were $438,000 for the year ended December 31, 2024, compared to a recovery of $42,000 for 2023 [219]. - Allowance for credit losses to total loans was 1.19% at December 31, 2024, compared to 1.35% at December 31, 2023 [219]. Capital and Liquidity - Stockholders' equity increased by $7.6 million, or 6.3%, to $129.1 million at December 31, 2024, from $121.5 million at December 31, 2023 [204]. - The liquidity ratio was maintained at 12.0% or greater, with compliance confirmed at December 31, 2024 [233]. - The company is categorized as well capitalized and exceeded all regulatory capital requirements as of December 31, 2024 [238]. Future Projections and Commitments - Net interest income is projected to decrease by 6.87% to $29.6 million with a 400 basis point increase in interest rates [230]. - As of December 31, 2024, the company had outstanding commitments to originate loans of $91.2 million [239]. Other Information - The company had a $40.0 million line of credit with the Federal Home Loan Bank of Atlanta, with $54.0 million in borrowings as of December 31, 2024 [233]. - The company does not engage in hedging activities, such as futures or options [227]. - A special cash dividend of $1.50 per share was declared on February 27, 2025, to be paid on March 27, 2025 [243].

Financial Performance - Net income for the year ended December 31, 2024, was $5.4 million, a decrease of 15.6% from $6.4 million in 2023[2] - Operating income for the year ended December 31, 2024, increased to $6.8 million from $6.4 million in 2023[4] - Net interest income for the year ended December 31, 2024, was $28.7 million, up from $27.2 million in 2023, reflecting an increase in interest income on loans[7] - Net interest income rose to $29,166 thousand in 2024, compared to $27,198 thousand in 2023, marking an increase of 7.24%[13] - Net interest income after provision for credit losses for the year ended December 31, 2024, was $28,728,000, up from $27,240,000 in 2023, reflecting a growth of 5.5%[19] - Net income for Q4 2024 was $1,345,000, down 11.2% from $1,514,000 in Q4 2023[19] - Basic earnings per share for Q4 2024 was $0.21, a decrease from $0.24 in Q4 2023, reflecting a decline of 12.5%[19] - Operating net income for Q4 2024 was $1,738,000, compared to $1,514,000 in Q4 2023, indicating an increase of 14.9%[21] - Adjusted diluted earnings per share for Q4 2024 was $0.26, compared to $0.23 in Q4 2023, an increase of 13%[21] Asset and Liability Management - Total assets increased by $23.6 million to $866.8 million at December 31, 2024, from $843.3 million at December 31, 2023[7] - Total assets grew to $872,350 thousand in 2024, compared to $863,253 thousand in 2023, an increase of 1.27%[13] - Total liabilities increased to $746,606 thousand in 2024 from $744,452 thousand in 2023, a slight increase of 0.15%[13] - Cash and cash equivalents decreased by $8.6 million to $41.4 million at December 31, 2024, from $50.0 million at December 31, 2023[7] - Deposits decreased by $1.0 million to $673.5 million at December 31, 2024, with a net decrease in demand deposits[7] Loan Performance - Total gross loans rose by $54.2 million to $714.1 million at December 31, 2024, driven by steady demand in various loan categories[7] - Loans outstanding increased to $687,487 thousand in 2024 from $660,045 thousand in 2023, representing a growth of 4.23%[13] - The average yield on loans was 6.01% in 2024, up from 5.37% in 2023, showing improved loan pricing[13] - Non-performing loans decreased to $4.8 million at December 31, 2024, from $7.4 million at December 31, 2023[11] Expense Management - Non-interest expense increased by $2.4 million to $23.8 million for the year ended December 31, 2024, primarily due to merger-related professional fees[7] - Total noninterest expenses increased to $5,768,000 in Q4 2024, compared to $5,432,000 in Q4 2023, representing a rise of 6.2%[19] Profitability Metrics - Net interest margin improved to 3.54% in 2024, up from 3.35% in 2023, indicating enhanced profitability on interest-earning assets[13] - The net interest rate spread improved to 2.59% in 2024, compared to 2.50% in 2023, indicating better management of interest-earning assets and liabilities[13] - The allowance for credit losses as a percentage of non-performing loans was 177.9% at December 31, 2024, compared to 120.1% at December 31, 2023[11] Equity and Book Value - Total stockholders' equity rose to $125,744 thousand in 2024, up from $118,801 thousand in 2023, reflecting a growth of 5.43%[13] - Tangible book value per common share increased to $17.30 in Q4 2024 from $16.08 in Q4 2023, a growth of 7.6%[21] - Equity to assets ratio (GAAP) was 14.90% in Q4 2024, up from 14.41% in Q4 2023[21]

Financial Performance - Net income for the three months ended September 30, 2024, was $1.7 million, an increase from $1.6 million for the same period in 2023 [82]. - Net income for the nine months ended September 30, 2024, was $4.1 million, down from $4.9 million for the same period in 2023, a decrease of 16.3% [98]. - Interest income increased by $4.1 million, or 13.1%, to $35.7 million for the nine months ended September 30, 2024, due to higher income from loans and investment securities [99]. - Net interest income increased by $1.2 million, or 6.1%, to $21.7 million for the nine months ended September 30, 2024, with a net interest margin of 3.54% [106]. - Net interest income increased by $513,000, or 7.4%, to $7.4 million for the three months ended September 30, 2024 [88]. Asset and Loan Growth - Total assets increased by $35.3 million, or 4.2%, to $878.6 million at September 30, 2024, from $843.3 million at December 31, 2023, primarily due to an increase in loans [70]. - Gross loans increased by $37.7 million, or 5.7%, to $697.6 million at September 30, 2024, with construction loans rising by $16.0 million, or 33.6% [70]. - Average balance of loans increased by $38.4 million, or 5.8%, to $698.9 million for the three months ended September 30, 2024 [83]. - Commitments to originate loans outstanding as of September 30, 2024, totaled $80.9 million [132]. Deposits and Funding - Total deposits increased by $9.3 million, or 1.4%, to $683.8 million at September 30, 2024, driven by increases in demand deposits and money market accounts [71]. - Demand deposits increased by $9.2 million, or 3.9%, reflecting cyclical demands from business customers [71]. - The loan-to-deposit ratio at September 30, 2024, was 102.0%, compared to 97.8% at December 31, 2023 [71]. - The company had a $218.6 million line of credit with the Federal Home Loan Bank of Atlanta, with $54.0 million in advances outstanding [123]. Interest Income and Expense - Interest income rose by $1.3 million, or 11.6%, to $12.3 million for the three months ended September 30, 2024, primarily driven by a $1.5 million increase in loan income [83]. - Interest expense increased by $2.9 million to $14.0 million for the nine months ended September 30, 2024, primarily due to additional borrowings [102]. - Interest expense increased by $765,000 to $4.9 million for the three months ended September 30, 2024, due to higher average balances of interest-bearing liabilities [85]. - Interest expense on money market accounts increased by $251,000 to $1.2 million for the three months ended September 30, 2024 [86]. Credit Quality - Provisions for credit losses are established to absorb known and inherent losses in the loan portfolio [90]. - No provision for credit losses was recorded for the three months ended September 30, 2024, with an allowance for credit losses of $8.4 million, down from $9.2 million at September 30, 2023, representing a decrease of 8.7% [93]. - Net charge-offs for the three months ended September 30, 2024, were $63,000, compared to $41,000 for the same period in 2023, indicating an increase of 53.7% [93]. - The allowance for credit losses to total loans was 1.20% at September 30, 2024, compared to 1.35% at December 31, 2023 [107]. Non-Interest Income and Expenses - Non-interest income decreased by $64,000, or 10.2%, to $566,000 for the three months ended September 30, 2024, primarily due to a decline in merchant services volume [95]. - Total non-interest expenses increased by $298,000, or 5.5%, to $5.7 million for the three months ended September 30, 2024, driven by an increase in salaries and employee benefits [96]. Capital and Liquidity - Stockholders' equity rose by $6.9 million, or 5.7%, to $128.4 million at September 30, 2024, primarily due to net income of $4.1 million during the first nine months of 2024 [73]. - As of September 30, 2024, the Bank's Common Equity Tier 1 capital ratio was 12.82%, exceeding the regulatory requirement of 4.50% [130]. - The total capital ratio as of September 30, 2024, was 13.97%, above the required minimum of 8.00% [130]. - The company is committed to maintaining a strong liquidity position and anticipates sufficient funds to meet current funding commitments [126]. Tax and Cash Flow - The effective tax rate for the nine months ended September 30, 2024, was 23.9%, compared to 23.6% for the same period in 2023 [110]. - For the nine months ended September 30, 2024, net cash provided by operating activities was $5.9 million, compared to $6.1 million for the same period in 2023 [125]. - Net cash used in investing activities was $31.8 million for the nine months ended September 30, 2024, compared to $29.7 million for the same period in 2023 [125]. - Net cash provided by financing activities was $28.1 million for the nine months ended September 30, 2024, which included net proceeds from borrowing of $18.8 million from the Federal Reserve Bank [125]. Interest Rate Sensitivity - As of September 30, 2024, a 200 basis point increase in interest rates would result in a 0.15% increase in net interest income, while a decrease of the same magnitude would lead to a 4.20% decrease [119].

Financial Performance - Net income for the three months ended September 30, 2024, was $1.7 million, a slight increase from $1.6 million for the same period in 2023[2] - Net income for the three months ended September 30, 2024, was $1,730 thousand, compared to $1,623 thousand in the same period of 2023, showing an increase of 6.6%[15] - Basic earnings per share for the three months ended September 30, 2024, were $0.27, up from $0.25 in the same period of 2023, reflecting an increase of 8.0%[15] Interest Income and Margin - Net interest income rose to $7.4 million for the three months ended September 30, 2024, compared to $6.9 million for the same period in 2023, driven by increased interest income on loans[3] - Total interest income for the three months ended September 30, 2024, was $12,302 thousand, an increase from $11,024 thousand in the same period of 2023, representing a growth of 11.6%[15] - Net interest income after provision for credit losses was $7,414 thousand for the three months ended September 30, 2024, compared to $6,901 thousand in the same period of 2023, reflecting an increase of 7.4%[15] - Net interest margin improved to 3.52% for the three months ended September 30, 2024, up from 3.36% in the same period last year[3] - The net interest rate spread for the three months ended September 30, 2024, was 2.54%, compared to 2.49% in the same period of 2023, indicating an improvement[15] Asset and Loan Growth - Total assets increased by $35.3 million to $878.6 million at September 30, 2024, from $843.3 million at December 31, 2023, due to loan growth[5] - Total assets as of September 30, 2024, were $878,561 thousand, up from $843,258 thousand at the end of 2023, indicating a growth of 4.2%[12] - Total gross loans increased by $37.7 million to $697.6 million at September 30, 2024, from $659.9 million at December 31, 2023[5] Expenses and Liabilities - Non-interest expense rose by $298,000 to $5.7 million for the three months ended September 30, 2024, primarily due to professional fees related to a proposed merger[3] - Total liabilities increased to $750,185 thousand as of September 30, 2024, compared to $721,742 thousand at the end of 2023, marking a rise of 3.9%[13] Credit Quality - Non-performing loans decreased to $4.9 million at September 30, 2024, down from $7.4 million at December 31, 2023[6] - The allowance for credit losses as a percentage of non-performing loans was 172.4% at September 30, 2024, compared to 120.1% at December 31, 2023[6] Equity and Book Value - Total stockholders' equity increased to $128,376 thousand as of September 30, 2024, from $121,516 thousand at the end of 2023, representing a growth of 5.5%[14] - The company's book value per common share (GAAP) rose to $20.02 in Q3 2024, compared to $18.50 in Q3 2023, marking an increase of 8.2%[16] - Tangible book value per common share increased to $17.18 as of September 30, 2024, up from $15.63 a year earlier, reflecting a growth of 9.9%[16] - The tangible book value per common share has shown consistent growth over the past five quarters, increasing from $15.63 in Q3 2023 to $17.18 in Q3 2024[16] Ratios - Equity to assets ratio (GAAP) improved to 14.61% in Q3 2024, compared to 13.85% in Q3 2023, indicating a year-over-year increase of 0.76 percentage points[16] - Tangible equity to tangible assets ratio reached 12.80% as of September 30, 2024, up from 11.95% a year prior, representing a growth of 0.85 percentage points[16] - The effect of goodwill and other intangibles on equity to assets ratio was (1.81%) for Q3 2024, slightly down from (1.90%) in Q3 2023[16] - The equity to assets ratio (GAAP) for June 30, 2024, was reported at 14.32%, indicating a steady upward trend from previous quarters[16] - The tangible equity to tangible assets ratio has improved from 12.49% in June 30, 2024, to 12.80% in September 30, 2024, showcasing a positive trajectory[16] - The company reported a consistent decrease in the effect of goodwill and other intangibles on tangible equity, from (2.87) in September 2023 to (2.84) in September 2024[16] - The tangible book value per common share has increased by approximately 3.24% from June 30, 2024, to September 30, 2024[16]

Financial Performance - Net income for the three months ended June 30, 2024, was $1.0 million, a decrease from $1.6 million for the same period in 2023, primarily due to increased interest and noninterest expenses [118]. - Net income decreased to $2.4 million for the six months ended June 30, 2024, down from $3.3 million for the same period in 2023 [135]. - Interest income increased by $2.9 million, or 13.9%, to $23.4 million for the six months ended June 30, 2024, compared to $20.6 million for the same period in 2023 [136]. - Net interest income increased by $727,000, or 5.3%, to $14.3 million for the six months ended June 30, 2024, compared to $13.6 million for the same period in 2023 [143]. Asset and Loan Growth - Total assets increased by $30.3 million, or 3.6%, to $873.6 million at June 30, 2024, from $843.3 million at December 31, 2023, primarily due to an increase in loans [106]. - Gross loans increased by $32.7 million, or 5.0%, to $692.6 million at June 30, 2024, with construction loans rising by $14.7 million, or 30.7% [107]. - The average balance of loans increased by $16.0 million, or 2.4%, to $681.9 million for the three months ended June 30, 2024, reflecting steady loan demand [119]. Deposits and Funding - Total deposits increased by $15.3 million, or 2.3%, to $689.7 million at June 30, 2024, driven by increases in demand deposits and money market accounts [109]. - Demand deposits increased by $9.9 million, or 4.1%, reflecting business customers' cyclical demands at year-end [109]. - The company had $40.0 million of FHLB advances and $11.8 million in other borrowings at June 30, 2024 [110]. Interest Income and Expense - Interest income increased by $1.4 million, or 12.5%, to $12.2 million for the three months ended June 30, 2024, driven by a $1.8 million increase in loan income, which rose 20.1% to $10.5 million [119]. - Interest expense increased by $484,000 to $4.7 million for the three months ended June 30, 2024, due to higher average balances of interest-bearing liabilities and increased rates [121]. - Interest expense increased by $2.1 million to $9.1 million for the six months ended June 30, 2024, compared to $7.0 million for the same period in 2023 [139]. Non-Interest Income and Expenses - Non-interest income increased by $28,000, or 4.1%, to $706,000 for the three months ended June 30, 2024, from $678,000 at December 31, 2023 [131]. - Total non-interest expenses rose by $1,435,000, or 27.2%, to $6,719,000 for the three months ended June 30, 2024, compared to $5,284,000 for the same period in 2023 [133]. Credit Quality - The allowance for credit losses was $8.5 million at June 30, 2024, down from $8.9 million at December 31, 2023, with the allowance to total loans ratio at 1.22% [129]. - Net charge-offs were $134,000 for the three months ended June 30, 2024, compared to net loan recoveries of $18,000 for the same period in 2023 [129]. - Provisions for credit losses were recorded at $213,000 for the six months ended June 30, 2024, compared to $7,000 for the same period in 2023 [145]. Capital and Liquidity - The company exceeded all regulatory capital requirements as of June 30, 2024, with a Common Equity Tier 1 ratio of 12.47% [164]. - Total capital to risk-weighted assets was 13.64% as of June 30, 2024, compared to 13.65% as of December 31, 2023 [165]. - As of June 30, 2024, the company had a liquidity position with a $217.4 million line of credit from the Federal Home Loan Bank of Atlanta, with $40.0 million in advances outstanding [159]. Operational Activities - Net cash provided by operating activities was $1.8 million for the six months ended June 30, 2024, a decrease from $4.3 million for the same period in 2023 [161]. - Net cash used in investing activities was $28.6 million for the six months ended June 30, 2024, compared to $28.9 million for the same period in 2023 [161]. - Net cash provided by financing activities was $27.1 million for the six months ended June 30, 2024, a significant decrease from $81.2 million for the same period in 2023 [161]. Management and Governance - The company anticipates retaining a significant portion of maturing time deposits based on current pricing strategy [162]. - The company’s management concluded that the disclosure controls and procedures were effective as of June 30, 2024 [168].