Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference, Webcast

Affinity Bancshares, Inc. Announces Third Quarter 2022 Financial Results


Affinity Bancshares, Inc. (NASDAQ:"AFBI") (the "Company"), the holding company for Affinity Bank (the "Bank"), today announced net income of $1.9 million for the three months ended September 30, 2022, as compared to $1.8 million for the three months ended September 30, 2021. For the nine months ended September 30, 2022, net income was $5.4 million, as compared to $6.3 million for the nine months ended September 30, 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or for the three months ended,

 

Performance Ratios:

 

September 30,

2022

 

 

June 30,

2022

 

 

March 31,

2022

 

 

December 31,

2021

 

 

September 30,

2021

 

Net income (in thousands)

 

$

1,861

 

 

$

1,783

 

 

$

1,791

 

 

$

1,318

 

 

$

1,805

 

Diluted earnings per share

 

 

0.27

 

 

 

0.27

 

 

 

0.26

 

 

 

0.20

 

 

 

0.26

 

Common book value per share

 

 

17.37

 

 

 

17.51

 

 

 

17.58

 

 

 

17.60

 

 

 

17.42

 

Tangible book value per share (1)

 

 

14.57

 

 

 

14.68

 

 

 

14.75

 

 

 

14.87

 

 

 

14.69

 

Total assets (in thousands)

 

 

776,390

 

 

 

766,679

 

 

 

760,208

 

 

 

788,088

 

 

 

789,965

 

Return on average assets

 

 

0.95

%

 

 

0.95

%

 

 

0.97

%

 

 

0.66

%

 

 

0.91

%

Return on average equity

 

 

6.30

%

 

 

6.13

%

 

 

5.97

%

 

 

4.36

%

 

 

6.00

%

Equity to assets

 

 

14.84

%

 

 

15.05

%

 

 

15.31

%

 

 

15.35

%

 

 

15.15

%

Tangible equity to tangible assets (1)

 

 

12.75

%

 

 

12.93

%

 

 

13.17

%

 

 

13.29

%

 

 

13.08

%

Net interest margin

 

 

4.12

%

 

 

4.06

%

 

 

4.47

%

 

 

3.60

%

 

 

3.74

%

Efficiency ratio

 

 

67.62

%

 

 

67.23

%

 

 

69.00

%

 

 

74.29

%

 

 

65.87

%

(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 technology; failures or breaches of our IT security systems; our ability to introduce new products and services and capitalize on growth opportunities; our ability to successfully integrate acquired operations or assets; changes in accounting policies and practices; our ability to retain key employees; the impact of the COVID-19 pandemic; 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 tables set 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 September 30,

 

 

 

2022

 

 

2021

 

 

 

Average
Outstanding
Balance

 

 

Interest

 

 

Average
Yield/Rate

 

 

Average
Outstanding
Balance

 

 

Interest

 

 

Average
Yield/Rate

 

 

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

639,115

 

 

$

7,734

 

 

 

4.80

%

 

$

568,442

 

 

$

7,332

 

 

 

5.12

%

Securities

 

 

44,690

 

 

 

289

 

 

 

2.56

%

 

 

40,569

 

 

 

216

 

 

 

2.13

%

Interest-earning deposits

 

 

39,384

 

 

 

189

 

 

 

1.91

%

 

 

115,330

 

 

 

53

 

 

 

0.18

%

Other investments

 

 

1,163

 

 

 

12

 

 

 

4.19

%

 

 

2,476

 

 

 

21

 

 

 

3.37

%

Total interest-earning assets

 

 

724,352

 

 

 

8,224

 

 

 

4.50

%

 

 

726,817

 

 

 

7,622

 

 

 

4.19

%

Non-interest-earning assets

 

 

49,770

 

 

 

 

 

 

 

 

 

64,408

 

 

 

 

 

 

 

Total assets

 

$

774,122

 

 

 

 

 

 

 

 

$

791,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking accounts

 

$

98,473

 

 

$

47

 

 

 

0.19

%

 

$

83,519

 

 

$

43

 

 

 

0.21

%

Market rate checking accounts

 

 

159,478

 

 

 

100

 

 

 

0.25

%

 

 

136,984

 

 

 

117

 

 

 

0.34

%

Savings accounts

 

 

83,484

 

 

 

187

 

 

 

0.89

%

 

 

93,717

 

 

 

100

 

 

 

0.43

%

Certificates of deposit

 

 

89,871

 

 

 

291

 

 

 

1.28

%

 

 

105,285

 

 

 

369

 

 

 

1.40

%

Total interest-bearing deposits

 

 

431,306

 

 

 

625

 

 

 

0.57

%

 

 

419,505

 

 

 

629

 

 

 

0.60

%

FHLB advances

 

 

13,696

 

 

 

73

 

 

 

2.12

%

 

 

49,039

 

 

 

132

 

 

 

1.07

%

Total interest-bearing liabilities

 

 

445,002

 

 

 

698

 

 

 

0.62

%

 

 

468,544

 

 

 

761

 

 

 

0.65

%

Non-interest-bearing liabilities

 

 

211,986

 

 

 

 

 

 

 

 

 

203,336

 

 

 

 

 

 

 

Total liabilities

 

 

656,988

 

 

 

 

 

 

 

 

 

671,880

 

 

 

 

 

 

 

Total stockholders' equity

 

 

117,134

 

 

 

 

 

 

 

 

 

119,345

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

774,122

 

 

 

 

 

 

 

 

$

791,225

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

 

3.88

%

 

 

 

 

 

 

 

 

3.54

%

Net interest income

 

 

 

 

$

7,526

 

 

 

 

 

 

 

 

$

6,861

 

 

 

 

Net interest-earning assets

 

$

279,350

 

 

 

 

 

 

 

 

$

258,273

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

4.12

%

 

 

 

 

 

 

 

 

3.78

%

 

 

For the Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

 

Average
Outstanding
Balance

 

 

Interest

 

 

Average
Yield/Rate

 

 

Average
Outstanding
Balance

 

 

Interest

 

 

Average
Yield/Rate

 

 

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

616,141

 

 

$

22,013

 

 

 

4.78

%

 

$

596,024

 

 

$

24,424

 

 

 

5.48

%

Securities

 

 

46,585

 

 

 

827

 

 

 

2.37

%

 

 

31,374

 

 

 

472

 

 

 

2.01

%

Interest-earning deposits

 

 

43,125

 

 

 

286

 

 

 

0.89

%

 

 

92,880

 

 

 

134

 

 

 

0.19

%

Other investments

 

 

1,117

 

 

 

30

 

 

 

3.57

%

 

 

2,273

 

 

 

57

 

 

 

3.32

%

Total interest-earning assets

 

 

706,968

 

 

 

23,156

 

 

 

4.38

%

 

 

722,551

 

 

 

25,087

 

 

 

4.63

%

Non-interest-earning assets

 

 

51,687

 

 

 

 

 

 

 

 

 

63,028

 

 

 

 

 

 

 

Total assets

 

$

758,655

 

 

 

 

 

 

 

 

$

785,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking accounts

 

$

97,463

 

 

$

134

 

 

 

0.18

%

 

$

88,154

 

 

$

138

 

 

 

0.21

%

Market rate checking accounts

 

 

151,654

 

 

 

282

 

 

 

0.25

%

 

 

130,933

 

 

 

378

 

 

 

0.39

%

Savings accounts

 

 

84,042

 

 

 

356

 

 

 

0.57

%

 

 

93,823

 

 

 

310

 

 

 

0.44

%

Certificates of deposit

 

 

91,493

 

 

 

840

 

 

 

1.23

%

 

 

114,623

 

 

 

1,284

 

 

 

1.49

%

Total interest-bearing deposits

 

 

424,652

 

 

 

1,612

 

 

 

0.51

%

 

 

427,533

 

 

 

2,110

 

 

 

0.66

%

FHLB advances

 

 

12,304

 

 

 

(875

)

 

 

(9.50

)%

 

 

41,471

 

 

 

350

 

 

 

1.13

%

Other borrowings

 

 

46

 

 

 

1

 

 

 

3.43

%

 

 

1,927

 

 

 

15

 

 

 

1.01

%

Total interest-bearing liabilities

 

 

437,002

 

 

 

738

 

 

 

0.23

%

 

 

470,931

 

 

 

2,475

 

 

 

0.69

%

Non-interest-bearing liabilities

 

 

203,164

 

 

 

 

 

 

 

 

 

199,971

 

 

 

 

 

 

 

Total liabilities

 

 

640,166

 

 

 

 

 

 

 

 

 

670,902

 

 

 

 

 

 

 

Total stockholders' equity

 

 

118,489

 

 

 

 

 

 

 

 

 

114,677

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

758,655

 

 

 

 

 

 

 

 

$

785,579

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

 

4.15

%

 

 

 

 

 

 

 

 

3.94

%

Net interest income

 

 

 

 

$

22,418

 

 

 

 

 

 

 

 

$

22,612

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

4.24

%

 

 

 

 

 

 

 

 

4.17

%

AFFINITY BANCSHARES, INC.

Consolidated Balance Sheets

 

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

(unaudited)

 

 

 

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

Cash and due from bank

 

$

6,887

 

 

$

16,239

 

Interest-earning deposits in other depository institutions

 

 

33,619

 

 

 

95,537

 

Cash and cash equivalents

 

 

40,506

 

 

 

111,776

 

Investment securities available-for-sale

 

 

41,878

 

 

 

48,557

 

Other investments

 

 

1,025

 

 

 

2,476

 

Loans, net

 

 

641,062

 

 

 

575,825

 

Other real estate owned

 

 

3,538

 

 

 

3,538

 

Premises and equipment, net

 

 

4,069

 

 

 

3,783

 

Bank owned life insurance

 

 

15,637

 

 

 

15,377

 

Intangible assets

 

 

18,606

 

 

 

18,749

 

Other assets

 

 

10,069

 

 

 

8,007

 

Total assets

 

$

776,390

 

 

$

788,088

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Non-interest-bearing checking

 

$

204,781

 

 

$

193,940

 

Interest-bearing checking

 

 

93,235

 

 

 

91,387

 

Market rate checking

 

 

160,377

 

 

 

145,969

 

Savings accounts

 

 

88,840

 

 

 

86,745

 

Certificates of deposit

 

 

98,784

 

 

 

96,758

 

Total deposits

 

 

646,017

 

 

 

614,799

 

Federal Home Loan Bank advances

 

 

10,000

 

 

 

48,988

 

Accrued interest payable and other liabilities

 

 

5,152

 

 

 

3,333

 

Total liabilities

 

 

661,169

 

 

 

667,120

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock (10,000,000 shares authorized, no shares outstanding at
September 30, 2022 and December 31, 2021)

 

 

?

 

 

 

?

 

Common stock (par value $0.01 per share, 40,000,000 shares authorized;
6,634,885 issued and outstanding at September 30, 2022 and 6,872,634
issued and outstanding at December 31, 2021)

 

 

65

 

 

 

69

 

Additional paid in capital

 

 

63,289

 

 

 

68,038

 

Unearned ESOP shares

 

 

(4,847

)

 

 

(5,004

)

Retained earnings

 

 

63,658

 

 

 

58,223

 

Accumulated other comprehensive loss

 

 

(6,944

)

 

 

(358

)

Total stockholders' equity

 

 

115,221

 

 

 

120,968

 

Total liabilities and stockholders' equity

 

$

776,390

 

 

$

788,088

 

AFFINITY BANCSHARES, INC.

Consolidated Statements of Income

(unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

7,734

 

 

$

7,332

 

 

$

22,013

 

 

$

24,424

 

Investment securities

 

 

301

 

 

 

237

 

 

 

857

 

 

 

529

 

Interest-earning deposits

 

 

189

 

 

 

53

 

 

 

286

 

 

 

134

 

Total interest income

 

 

8,224

 

 

 

7,622

 

 

 

23,156

 

 

 

25,087

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

625

 

 

 

629

 

 

 

1,612

 

 

 

2,110

 

Borrowings

 

 

73

 

 

 

132

 

 

 

(874

)

 

 

365

 

Total interest expense

 

 

698

 

 

 

761

 

 

 

738

 

 

 

2,475

 

Net interest income before provision for loan losses

 

 

7,526

 

 

 

6,861

 

 

 

22,418

 

 

 

22,612

 

Provision for loan losses

 

 

187

 

 

 

225

 

 

 

654

 

 

 

975

 

Net interest income after provision for loan losses

 

 

7,339

 

 

 

6,636

 

 

 

21,764

 

 

 

21,637

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

420

 

 

 

416

 

 

 

1,205

 

 

 

1,126

 

Other

 

 

173

 

 

 

355

 

 

 

631

 

 

 

980

 

Total noninterest income

 

 

593

 

 

 

771

 

 

 

1,836

 

 

 

2,106

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

3,187

 

 

 

2,777

 

 

 

9,219

 

 

 

7,797

 

Occupancy

 

 

675

 

 

 

633

 

 

 

1,798

 

 

 

2,329

 

Advertising

 

 

128

 

 

 

116

 

 

 

326

 

 

 

296

 

Data processing

 

 

486

 

 

 

520

 

 

 

1,476

 

 

 

1,518

 

Writedown of premises and equipment

 

 

?

 

 

 

14

 

 

 

?

 

 

 

888

 

FHLB prepayment penalties

 

 

?

 

 

 

?

 

 

 

647

 

 

 

?

 

Other

 

 

1,014

 

 

 

967

 

 

 

3,019

 

 

 

2,764

 

Total noninterest expenses

 

 

5,490

 

 

 

5,027

 

 

 

16,485

 

 

 

15,592

 

Income before income taxes

 

 

2,442

 

 

 

2,380

 

 

 

7,115

 

 

 

8,151

 

Income tax expense

 

 

581

 

 

 

575

 

 

 

1,680

 

 

 

1,896

 

Net income

 

$

1,861

 

 

$

1,805

 

 

$

5,435

 

 

$

6,255

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.28

 

 

$

0.26

 

 

$

0.81

 

 

$

0.90

 

Diluted earnings per share

 

$

0.27

 

 

$

0.26

 

 

$

0.80

 

 

$

0.89

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. Additionally, the Company believes this 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 table below for details on the earnings impact of these items.

Non-GAAP Reconciliation

 

 

September 30,

2022

 

 

June 30,

2022

 

 

March 31,

2022

 

 

December 31,

2021

 

 

September 30,

2021

 

Tangible book value per common share reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value per common share (GAAP)

 

 

$

17.37

 

 

$

17.51

 

 

$

17.58

 

 

$

17.60

 

 

$

17.42

 

Effect of goodwill and other intangibles

 

 

 

(2.80

)

 

 

(2.83

)

 

 

(2.83

)

 

 

(2.73

)

 

 

(2.73

)

Tangible book value per common share

$

14.57

 

 

$

14.68

 

 

$

14.75

 

 

$

14.87

 

 

$

14.69

 

Tangible equity to tangible assets reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to assets (GAAP)

 

14.84

%

 

 

15.05

%

 

 

15.31

%

 

 

15.35

%

 

 

15.15

%

Effect of goodwill and other intangibles

 

 

 

(2.09

)%

 

 

(2.12

)%

 

 

(2.14

)%

 

 

(2.06

)%

 

 

(2.07

)%

Tangible equity to tangible assets

 

 

 

12.75

%

 

 

12.93

%

 

 

13.17

%

 

 

13.29

%

 

 

13.08

%

 


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