Affinity Bancshares(US:AFBI)2025-11-10 21:31Financial Position - Total assets increased by $58.4 million, or 6.7%, to $925.2 million at September 30, 2025, from $866.8 million at December 31, 2024[111] - Total deposits increased by $65.9 million, or 9.8%, to $739.4 million at September 30, 2025, reflecting increases in all deposit types[113] - Stockholders' equity decreased by $3.7 million, or 2.9%, to $125.4 million at September 30, 2025, primarily due to a special dividend payment of $1.50 per share totaling $8.8 million[115] - The loan-to-deposit ratio improved to 98.7% at September 30, 2025, compared to 106.0% at December 31, 2024[113] Loan and Interest Income - Gross loans increased by $15.4 million, or 2.2%, to $729.5 million at September 30, 2025, with construction loans rising by $6.8 million, or 10.1%[112] - Net interest income for the three months ended September 30, 2025, was $7.77 million, compared to $7.41 million for the same period in 2024[118] - Average loans outstanding for the three months ended September 30, 2025, were $733.1 million, with an average yield of 6.07%[118] - Interest income rose by $618,000, or 5.0%, to $12.9 million for the three months ended September 30, 2025, primarily due to a $623,000 increase in loan income[123] - Interest income increased by $2.1 million, or 5.9%, to $37.9 million for the nine months ended September 30, 2025, compared to $35.7 million in 2024[141] Interest Expense and Margin - The net interest margin for the three months ended September 30, 2025, was 3.49%, slightly down from 3.52% in the previous year[118] - Interest expense increased by $262,000 to $5.2 million for the three months ended September 30, 2025, mainly due to higher average balances of interest-bearing liabilities[126] - Interest expense on deposits rose by $438,000 to $4.6 million for the three months ended September 30, 2025, with certificates of deposit contributing an increase of $185,000[127] - The net interest rate spread decreased to 2.65% for the three months ended September 30, 2025, down from 2.54% for the same period in 2024[129] Noninterest Income and Expenses - Noninterest income increased by $22,000, or 3.9%, to $588,000 for the three months ended September 30, 2025, from $566,000 in 2024[136] - Total non-interest expenses decreased by $275,000, or 4.8%, to $5.429 million for the three months ended September 30, 2025, compared to $5.704 million in 2024[138] - Noninterest income decreased by $246,000 to $1.6 million for the nine months ended September 30, 2025, compared to $1.9 million in 2024[150] - Total non-interest expenses for the nine months ended September 30, 2025, were $16.254 million, a decrease of $1.739 million, or 9.7%, from $17.993 million in 2024[152] Credit Losses - The provision for credit losses is established to absorb known and inherent losses in the loan portfolio, influenced by various qualitative and quantitative factors[131] - Provision for credit losses recorded was $12,000 for the three months ended September 30, 2025, compared to no provision for the same period in 2024[134] - Provision for credit losses for the nine months ended September 30, 2025, was $79,000, down from $213,000 in 2024[149] Income and Tax - Net income for the three months ended September 30, 2025, was $2.2 million, an increase from $1.7 million for the same period in 2024, driven by higher net interest income and lower noninterest expenses[122] - Net income for the nine months ended September 30, 2025, was $6.2 million, an increase from $4.1 million in the same period in 2024[140] - Income tax expense for the nine months ended September 30, 2025, was $2.0 million, compared to $1.2 million in 2024, with an effective tax rate of 24.0% for both periods[153] Capital and Liquidity - Total capital to risk-weighted assets ratio was 13.21% as of September 30, 2025, exceeding the well-capitalized requirement of 10.00%[170] - The company’s common equity tier 1 capital ratio was 12.08% as of September 30, 2025, above the minimum requirement of 4.50%[170] - The company is categorized as "well capitalized" and has exceeded all regulatory capital requirements as of September 30, 2025[169] - Cash and short-term investments are the most liquid assets, influenced by operating, financing, lending, and investing activities[166] Cash Flow - Net cash provided by operating activities increased to $9.4 million for the nine months ended September 30, 2025, compared to $5.9 million for the same period in 2024, reflecting a 59.32% increase[167] - Net cash provided by financing activities was $48.2 million for the nine months ended September 30, 2025, compared to $28.1 million for the same period in 2024, indicating a 71.34% increase[167] - The company’s net cash used in investing activities decreased to $14.2 million for the nine months ended September 30, 2025, from $31.8 million in the same period of 2024, a reduction of 55.32%[167] Loan Commitments - The company had outstanding commitments to originate loans totaling $80.7 million as of September 30, 2025[171] - The company anticipates retaining a significant portion of maturing time deposits totaling $132.0 million due within one year from September 30, 2025[171] - As of September 30, 2025, the company had a line of credit with the Federal Home Loan Bank of Atlanta totaling $233.2 million, with $54.0 million in advances outstanding[165]