Affinity Bancshares(AFBI) - 2024 Q1 - Quarterly Report

Financial Position - Total assets increased by $26.3 million, or 3.1$869.5 million at March 31, 2024, from $843.3 million at December 31, 2023[105] - Cash and cash equivalents rose by$11.4 million, or 22.7%, to $61.4 million at March 31, 2024, primarily due to increased deposits and Federal Reserve borrowings[106] - Gross loans increased by$14.6 million, or 2.2%, to $674.5 million at March 31, 2024, with construction loans up by$7.6 million, or 16.0%[107] - Total deposits increased by $13.0 million, or 1.9$687.4 million at March 31, 2024, driven by demand deposits and money market accounts[109] - Stockholders' equity increased by $1.8 million, or 1.5$123.3 million at March 31, 2024, primarily due to net income of $1.3 million[111] Income and Expenses - Net income for the three months ended March 31, 2024, was$1.3 million, a decrease from $1.7 million for the same period in 2023[118] - Interest income increased by$1.5 million, or 15.3%, to $11.2 million for the three months ended March 31, 2024, compared to$9.7 million for the same period in 2023[119] - Interest income on loans rose by $1.2 million, or 14.6$9.5 million, with an average yield increase of 59 basis points to 5.75%[119] - Interest expense increased by $1.6 million to$4.5 million for the three months ended March 31, 2024, compared to $2.8 million for the same period in 2023[122] - Net interest income decreased by$149,000, or 2.2%, to $6.7 million for the three months ended March 31, 2024, with a net interest margin decrease to 3.38$32,000, or 5.8%, to $584,000 for the three months ended March 31, 2024, from$552,000[132] - Total non-interest expenses increased by $376,000, or 7.2$5.57 million for the three months ended March 31, 2024[134] - Income tax expense decreased to $428,000 for the three months ended March 31, 2024, compared to$527,000 for the same period in 2023[135] Loan and Credit Management - The loan-to-deposit ratio at March 31, 2024, was 98.1%, compared to 97.8% at December 31, 2023[109] - Provisions for credit losses recorded no charge for the three months ended March 31, 2024, compared to a provision of $7,000 for the same period in 2023[130] - The company recorded net charge-offs of$326,000 for the three months ended March 31, 2024, compared to net loan charge-offs of $91,000 for the same period in 2023[130] - The company had outstanding commitments to originate loans of$75.5 million as of March 31, 2024[154] Cash Flow - Net cash provided by operating activities was $1.2 million for Q1 2024, down from$2.0 million in Q1 2023, representing a decrease of 40%[148] - Net cash used in investing activities was $14.7 million for Q1 2024, compared to$29.2 million in Q1 2023, indicating a reduction of 49%[148] - Net cash provided by financing activities was $24.8 million for Q1 2024, significantly lower than$137.8 million in Q1 2023, a decrease of approximately 82%[148] Capital Adequacy - As of March 31, 2024, the Common Equity Tier 1 capital ratio was 12.50%, exceeding the well-capitalized requirement of 4.50%[151] - Total capital to risk-weighted assets ratio was 13.68% as of March 31, 2024, above the minimum requirement of 8.00%[151] Funding and Borrowing - The company had a $219.2 million line of credit with the Federal Home Loan Bank of Atlanta, with$40.0 million in advances outstanding as of March 31, 2024[146] - The company borrowed $11.8 million through the Federal Reserve Bank Term Funding Program during the first quarter of 2024[110] - Management anticipates sufficient funds to meet current funding commitments based on deposit retention experience[149] Operational Controls - The company has maintained effective disclosure controls and procedures as of March 31, 2024[156]