Affinity Bancshares(AFBI) - 2024 Q2 - Quarterly Results

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[1][3] - Net income for the three months ended June 30, 2024, was $1,031 thousand, down from $1,590 thousand in the same period of 2023, indicating a decrease of 35.1%[16] - Basic earnings per share for the three months ended June 30, 2024, was $0.16, down from $0.25 in the same period of 2023, a decrease of 36%[16] Interest Income and Margin - Net interest income increased to $7.6 million for the three months ended June 30, 2024, compared to $6.7 million for the same period in 2023[4] - Total interest income for the three months ended June 30, 2024, was $12,222 thousand, an increase from $10,863 thousand in the same period of 2023, representing a growth of 12.5%[16] - Net interest income before provision for credit losses was $7,568 thousand for the three months ended June 30, 2024, compared to $6,693 thousand in the same period of 2023, reflecting an increase of 13.1%[16] - Net interest margin improved to 3.71% for the three months ended June 30, 2024, up from 3.17% for the same period in 2023[4] - The net interest margin for the three months ended June 30, 2024, was 3.71%, up from 3.17% in the same period of 2023, reflecting an improvement of 54%[16] Assets and Loans - Total assets rose by $29.3 million to $872.6 million at June 30, 2024, from $843.3 million at December 31, 2023[6] - Total assets increased to $872,558 thousand as of June 30, 2024, from $843,258 thousand at the end of 2023, marking a growth of 3.5%[15] - Total gross loans increased by $32.7 million to $692.6 million at June 30, 2024, driven by strong demand in construction and commercial non-owner occupied properties[6] - The average outstanding balance of loans increased to $681,903 thousand for the three months ended June 30, 2024, compared to $665,921 thousand in the same period of 2023, a rise of 2.9%[16] Expenses and Provisions - Non-interest expense increased by $1.4 million to $6.7 million for the three months ended June 30, 2024, primarily due to professional fees related to a merger[4] - The provision for credit losses was $213 thousand for the three months ended June 30, 2024, compared to $7 thousand in the same period of 2023, indicating a significant increase in provisions[16] Deposits and Borrowings - Deposits grew by $15.3 million to $689.7 million at June 30, 2024, with a notable increase in demand deposits[6] - The company is evaluating borrowing needs related to enhancing bank liquidity, with borrowings increasing by $11.8 million to $51.8 million at June 30, 2024[6] Non-Performing Loans and Credit Losses - Non-performing loans decreased to $3.0 million at June 30, 2024, down from $7.4 million at December 31, 2023[7] - The allowance for credit losses as a percentage of non-performing loans was 282.0% at June 30, 2024, compared to 120.1% at December 31, 2023[7] Equity and Book Value - Total stockholders' equity rose to $125,065 thousand as of June 30, 2024, compared to $121,516 thousand at the end of 2023, an increase of 3.5%[15] - Book value per common share (GAAP) increased to $19.49 as of June 30, 2024, up from $19.21 in March 2024[18] - Tangible book value per common share rose to $16.64 as of June 30, 2024, compared to $16.36 in March 2024[18] - Tangible equity to tangible assets ratio improved to 12.50% as of June 30, 2024, from 12.33% in March 2024[19] - Tangible equity to tangible assets ratio has shown a steady increase from 11.59% in June 2023 to 12.50% in June 2024[19] - The effect of goodwill and other intangibles on book value remained consistent at approximately (2.85) across recent quarters[18]