Affinity Bancshares, Inc. Announces First Quarter 2026 Financial Results

Affinity Bancshares, Inc. Announces First Quarter 2026 Financial Results COVINGTON, Ga.--( BUSINESS WIRE)--Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $2.3 million for the three months ended March 31, 2026, as compared to $1.8 million for the three months ended March 31, 2025.

At or for the three months ended,

Performance Ratios:

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Net income (in thousands)

2,284

2,132

2,217

2,152

1,831

Diluted earnings per share

0.36

0.34

0.33

0.28

Operating income (1)

2,284

2,510

2,389

2,316

1,996

Adjusted diluted earnings per share (1)

0.36

0.40

0.37

0.36

0.30

Common book value per share

21.24

20.84

20.25

19.66

19.25

Tangible book value per share (1)

18.30

17.89

17.34

16.80

16.40

Total assets (in thousands)

924,677

881,697

925,221

933,799

912,496

Return on average assets

1.00

0.92

0.94

0.83

Return on average equity

7.19

6.69

7.03

7.01

5.68

Equity to assets

14.00

14.41

13.55

13.29

13.40

Tangible equity to tangible assets (1)

12.29

12.62

11.83

11.58

11.65

Net interest margin

3.50

3.77

3.49

3.57

3.52

Efficiency ratio

64.25

63.55

64.96

65.72

68.55

(1) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Net Income

Results of Operations

Financial Condition

Asset Quality

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; the effects of an extended U.S. Government shutdown; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; 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 table sets 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 March 31,

2026

2025

Average

Outstanding

Balance

Interest

Average

Yield/Rate

Average

Outstanding

Balance

Interest

Average

Yield/Rate

(Dollars in thousands)

Interest-earning assets:

Loans

747,245

11,138

6.04

713,878

10,648

6.05

Investment securities held-to-maturity

—

27,313

421

6.25

Investment securities available-for-sale

38,313

372

3.94

38,188

324

3.44

Interest-earning deposits and federal funds

85,389

746

3.54

59,305

615

4.21

Other investments

6,272

6.01

6,185

6.36

Total interest-earning assets

877,219

12,349

5.71

844,869

12,105

5.81

Non-interest-earning assets

46,265

48,093

Total assets

923,484

892,962

Interest-bearing liabilities:

Interest-bearing checking accounts

90,211

112

0.50

81,598

0.42

Money market accounts

162,882

1,126

2.80

156,548

1,163

3.01

Savings accounts

99,924

730

2.96

79,222

555

2.84

Certificates of deposit

238,697

2,314

3.93

238,904

2,444

4.15

Total interest-bearing deposits

591,714

4,282

2.93

556,272

4,246

3.10

FHLB advances and other borrowings

54,000

502

3.77

54,856

522

3.86

Total interest-bearing liabilities

645,714

4,784

3.00

611,128

4,768

3.16

Non-interest-bearing liabilities

148,861

151,121

Total liabilities

794,575

762,249

Total stockholders' equity

128,909

130,713

Total liabilities and stockholders' equity

923,484

892,962

Net interest rate spread

2.70

2.65

Net interest income

7,565

7,337

Net interest margin

3.50

3.52

AFFINITY BANCSHARES, INC.

Consolidated Balance Sheets

(unaudited)

March 31, 2026

December 31, 2025

(Dollars in thousands except per share amounts)

Assets

Cash and due from banks

5,561

6,924

Interest-earning deposits in other depository institutions

83,791

46,926

Cash and cash equivalents

89,352

53,850

Investment securities available-for-sale

37,286

38,759

Other investments

6,284

6,264

Loans

751,757

742,682

Allowance for credit loss on loans

(8,889

)

(8,994

)

Net loans

742,868

733,688

Premises and equipment, net

2,700

2,836

Bank owned life insurance

17,279

17,161

Intangible assets

17,936

17,984

Other assets

10,972

11,155

Total assets

924,677

881,697

Liabilities and Stockholders' Equity

Liabilities:

Non-interest-bearing checking

151,055

132,796

Interest-bearing checking

87,038

82,612

Money market accounts

170,051

157,439

Savings accounts

102,873

96,981

Certificates of deposit

223,320

225,177

Total deposits

734,337

695,005

Federal Home Loan Bank advances and other borrowings

54,000

Accrued interest payable and other liabilities

6,876

5,673

Total liabilities

795,213

754,678

Stockholders' equity:

Common stock (par value $0.01 per share, 40,000,000 shares authorized; 6,094,885 issued and outstanding at March 31, 2026 and 6,095,631 issued and outstanding at December 31, 2025)

Preferred stock (10,000,000 shares authorized, no shares outstanding)

—

Additional paid in capital

58,320

58,069

Unearned ESOP shares

(3,512

)

(3,570

)

Retained earnings

78,395

76,111

Accumulated other comprehensive loss

(3,800

)

(3,652

)

Total stockholders' equity

129,464

127,019

Total liabilities and stockholders' equity

924,677

881,697

AFFINITY BANCSHARES, INC.

Consolidated Statements of Income

(unaudited)

Three Months Ended March 31,

2026

2025

(Dollars in thousands except per share amounts)

Interest income:

Loans, including fees

11,138

10,648

Investment securities

465

842

Interest-earning deposits

746

615

Total interest income

12,349

12,105

Interest expense:

Deposits

4,282

4,246

FHLB advances and other borrowings

502

522

Total interest expense

4,784

4,768

Net interest income before provision for credit losses

7,565

7,337

Provision for credit losses

(100

)

Net interest income after provision for credit losses

7,665

7,287

Noninterest income:

Service charges on deposit accounts

346

316

Other

206

165

Total noninterest income

552

481

Noninterest expenses:

Salaries and employee benefits

3,018

3,359

Occupancy

544

605

Data processing

584

543

Other

1,069

852

Total noninterest expenses

5,215

5,359

Income before income taxes

3,002

2,409

Income tax expense

718

578

Net income

2,284

1,831

Weighted average common shares outstanding

Basic

6,095,117

6,405,702

Diluted

6,297,092

6,547,817

Basic earnings per share

0.37

0.29

Diluted earnings per share

0.36

0.28

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

March 31, 2026

December 31,

2025

September 30,

2025

June 30, 2025

March 31, 2025

Operating net income reconciliation

Net income (GAAP)

$2,284

$2,132

$2,217

$2,152

$1,831

Net loss on securities available for sale and held to maturity

—

260

—

ESOP Compensation expense related to dividend

—

225

220

210

211

Income tax expense

—

(107)

(48)

(46)

Operating net income

$2,284

$2,510

$2,389

$2,316

$1,996

Weighted average diluted shares

6,297,092

6,322,749

6,427,697

6,457,397

6,547,817

Adjusted diluted earnings per share

$0.36

$0.40

$0.37

$0.36

$0.30

Tangible book value per common share reconciliation

Book Value per common share (GAAP)

$21.24

$20.84

$20.25

$19.66

$19.25

Effect of goodwill and other intangibles

(2.94)

(2.95)

(2.91)

(2.86)

(2.85)

Tangible book value per common share

$18.30

$17.89

$17.34

$16.80

$16.40

Tangible equity to tangible assets reconciliation

Equity to assets (GAAP)

14.00%

14.41%

13.55%

13.29%

13.40%

Effect of goodwill and other intangibles

(1.71)%

(1.79)%

(1.72)%

(1.71)%

(1.75)%

Tangible equity to tangible assets (1)

12.29%

12.62%

11.83%

11.58%

11.65%

(1) Tangible assets is total assets less intangible assets. Tangible equity is total equity less intangible assets.