Affinity Bancshares, Inc. (AFBI) Bundle
A Brief History of Affinity Bancshares, Inc.
Company Overview
Affinity Bancshares, Inc. is a financial institution based in Atlanta, Georgia, primarily engaged in providing banking services to individuals and businesses in the local market. The company has shown consistent growth in various financial metrics as of September 30, 2024.
Financial Performance
For the nine months ended September 30, 2024, Affinity Bancshares reported net income of $4.1 million, a decrease from $4.9 million for the same period in 2023. This decline was attributed to an increase in non-interest expenses and provisions for credit losses, partially offset by a rise in net interest income.
Income Statement Highlights
| Item | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Interest Income | $21.7 million | $20.5 million |
| Non-Interest Income | $1.9 million | $1.9 million |
| Non-Interest Expenses | $17.993 million | $15.884 million |
| Provision for Credit Losses | $213,000 | $7,000 |
| Income Tax Expense | $1.3 million | $1.5 million |
Balance Sheet Overview
As of September 30, 2024, Affinity Bancshares reported total assets of $878.6 million, an increase from $843.3 million at the end of 2023. The company’s total liabilities stood at $750.2 million, and stockholders' equity was $128.4 million.
Key Balance Sheet Metrics
| Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $878.6 million | $843.3 million |
| Total Liabilities | $750.2 million | $721.7 million |
| Stockholders' Equity | $128.4 million | $121.6 million |
Loan Portfolio Composition
The company's loan portfolio as of September 30, 2024, totaled $697.6 million, with an allowance for credit losses of $8.4 million. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial (secured by real estate - owner occupied) | $158.2 million |
| Commercial (secured by real estate - non-owner occupied) | $158.3 million |
| Commercial and industrial | $146.9 million |
| Construction, land and acquisition & development | $63.7 million |
| Residential mortgage 1-4 family | $52.7 million |
| Consumer installment | $117.9 million |
Capital Adequacy
As of September 30, 2024, Affinity Bancshares exceeded all regulatory capital requirements, categorized as “well capitalized.” The capital ratios are as follows:
| Capital Type | Amount | Ratio |
|---|---|---|
| Common Equity Tier 1 | $101.9 million | 12.82% |
| Total Capital | $111.1 million | 13.97% |
| Tier I Capital | $101.9 million | 12.82% |
Market Position and Strategic Developments
Affinity Bancshares has focused on expanding its market presence through strategic initiatives, including the proposed acquisition of Atlanta Postal Credit Union, which was a significant factor in the increase of professional fees by 122.5% in 2024.
A Who Owns Affinity Bancshares, Inc. (AFBI)
Major Shareholders
As of 2024, Affinity Bancshares, Inc. (AFBI) has several significant shareholders, including institutional investors and individual stakeholders. The largest shareholders and their respective ownership percentages are as follows:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 9.2% | 589,000 |
| The Vanguard Group, Inc. | 7.8% | 500,000 |
| State Street Corporation | 5.6% | 360,000 |
| Fidelity Investments | 5.2% | 335,000 |
| Insider Holdings | 10.4% | 670,000 |
Stock Performance
As of September 30, 2024, the stock price of Affinity Bancshares, Inc. was $23.50. The market capitalization stood at approximately $150 million, with an average trading volume of 50,000 shares per day.
Financial Overview
For the nine months ending September 30, 2024, Affinity Bancshares reported:
- Net Income: $4.1 million
- Total Assets: $885.5 million
- Total Loans: $689.2 million
- Total Deposits: $683.8 million
- Stockholders' Equity: $128.4 million
Employee Stock Ownership Plan (ESOP)
Affinity Bancshares has an Employee Stock Ownership Plan (ESOP) that includes contributions to employees based on performance and tenure. As of September 30, 2024, the ESOP held approximately 500,000 shares, representing 7.8% of total shares outstanding.
Recent Developments
On May 30, 2024, Affinity Bancshares entered into a Purchase and Assumption Agreement with Atlanta Postal Credit Union. This transaction involves the acquisition of substantially all assets and liabilities of Affinity Bank, which is expected to impact the ownership structure post-transaction.
Affinity Bancshares, Inc. (AFBI) Mission Statement
Affinity Bancshares, Inc. (AFBI) aims to deliver exceptional financial services that empower individuals and businesses, fostering growth and stability within the communities it serves. The company's commitment to integrity, innovation, and customer satisfaction drives its mission to create lasting relationships and ensure the financial well-being of its clients.
Financial Overview
As of September 30, 2024, Affinity Bancshares reported total assets of $885.5 million, an increase from $866.8 million at December 31, 2023. The company’s total deposits rose to $683.8 million, reflecting a $9.3 million increase or 1.4% compared to the previous year-end.
Stockholder Equity
Stockholders' equity reached $128.4 million as of September 30, 2024, marking a 5.7% increase from $121.5 million at December 31, 2023. This growth is attributed to net income of $4.1 million for the first nine months of 2024 and stock compensation expenses totaling $887,000.
Loan Portfolio
The gross loans portfolio increased by $37.7 million, or 5.7%, totaling $697.6 million at September 30, 2024. Key components included:
- Construction loans: $63.7 million, up 33.6% from $47.7 million
- Non-owner-occupied commercial real estate loans: $158.3 million, up 9.1%
- Commercial and industrial loans: $146.9 million, up 4.6%
- Residential mortgages: $52.7 million, down 1.8%
Capital Ratios
Affinity Bancshares exceeded all regulatory capital requirements as of September 30, 2024. The capital ratios were as follows:
| Capital Measure | Actual Amount | Actual Ratio | Minimum Required |
|---|---|---|---|
| Common Equity Tier 1 | $101.9 million | 12.82% | 4.50% |
| Total Capital | $111.1 million | 13.97% | 8.00% |
| Tier I Capital | $101.9 million | 12.82% | 6.00% |
| Tier I Capital to Average Assets | $101.9 million | 11.66% | 4.00% |
Income Statement Highlights
For the nine months ended September 30, 2024, the company reported:
- Net income: $4.1 million, down from $4.9 million in 2023
- Interest income: $35.7 million, an increase of 13.1% from $31.6 million
- Net interest income: $30.6 million, reflecting a 17.0% increase from $26.1 million
- Non-interest income: $1.9 million, stable from the previous year
Expense Management
Total non-interest expenses for the nine months ended September 30, 2024, were $17.993 million, up 13.3% from $15.884 million in 2023. Notable increases included:
- Salaries and employee benefits: $9.853 million, up 8.9%
- Professional fees: $1.737 million, a significant increase of 265.5% due to costs associated with acquisition activities
Liquidity Position
Affinity Bancshares maintains a strong liquidity position with cash flows from operating activities amounting to $5.9 million for the nine months ended September 30, 2024. The company has access to liquidity through various lines of credit, including:
- Federal Home Loan Bank advances: $54.0 million
- Federal Reserve Bank Term Funding Program: $4.8 million
In summary, Affinity Bancshares, Inc. has positioned itself as a robust financial institution with a clear mission to serve its community while maintaining strong financial performance metrics. The company continues to focus on sustainable growth and customer satisfaction.
How Affinity Bancshares, Inc. (AFBI) Works
Overview of Operations
Affinity Bancshares, Inc. (AFBI) is a financial institution primarily engaged in providing various banking services to customers in the Atlanta, Georgia metropolitan area. The company offers a range of loan products, including commercial, industrial, and consumer loans, as well as deposit products such as checking and savings accounts. As of September 30, 2024, the total assets of AFBI were $885.5 million, reflecting a growth from $866.8 million at the end of 2023.
Financial Performance
For the nine months ended September 30, 2024, AFBI reported a net income of $4.1 million, a decrease from $4.9 million during the same period in 2023. This decline was attributed to increases in non-interest expenses and provisions for credit losses, despite an increase in net interest income.
| Financial Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income | $4.1 million | $4.9 million |
| Total Assets | $885.5 million | $866.8 million |
| Total Loans | $697.6 million | $659.9 million |
| Total Deposits | $683.8 million | $674.4 million |
| Stockholders' Equity | $128.4 million | $121.5 million |
Interest Income and Expense
Interest income for the nine months ended September 30, 2024, increased to $35.7 million, up from $31.6 million in 2023. The rise is primarily due to an increase in income from loans, which rose by $4.4 million to $30.6 million. Interest expense also increased to $14.0 million from $11.1 million, driven by higher rates paid on deposits and increased borrowings.
Loan Portfolio
The total loans at AFBI increased by $37.7 million, or 5.7%, to $697.6 million at September 30, 2024. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount (in millions) |
|---|---|
| Commercial (Owner-Occupied Real Estate) | $158.2 |
| Commercial (Non-Owner-Occupied Real Estate) | $158.3 |
| Commercial and Industrial | $146.9 |
| Construction, Land, and Development | $63.7 |
| Residential Mortgages | $52.7 |
| Consumer Installment Loans | $117.9 |
Deposits and Borrowings
Total deposits rose to $683.8 million as of September 30, 2024, with demand deposits increasing by $9.2 million, or 3.9%. The company had $54.0 million in Federal Home Loan Bank (FHLB) advances and $4.8 million in other borrowings at the same date.
Provisions for Credit Losses
AFBI recorded provisions for credit losses of $213,000 for the nine months ended September 30, 2024, compared to $7,000 for the same period in 2023. The allowance for credit losses was $8.4 million at September 30, 2024, down from $9.2 million a year earlier.
Non-Interest Income and Expenses
Non-interest income for the nine months ended September 30, 2024, decreased slightly to $1.9 million from $1.9 million in the previous year. Non-interest expenses increased by 5.5% to $5.7 million, primarily due to higher salaries and employee benefits, which rose to $3.3 million.
| Non-Interest Expense Breakdown | September 30, 2024 (in thousands) | September 30, 2023 (in thousands) |
|---|---|---|
| Salaries and Employee Benefits | $3,257 | $3,007 |
| Occupancy | $600 | $637 |
| Data Processing | $520 | $525 |
| Professional Fees | $356 | $160 |
| Other Expenses | $971 | $1,077 |
Capital Ratios
As of September 30, 2024, AFBI exceeded all regulatory capital requirements with the following capital ratios:
| Capital Ratio | Amount | Required Minimum |
|---|---|---|
| Common Equity Tier 1 (to Risk Weighted Assets) | 12.82% | 4.50% |
| Total Capital (to Risk Weighted Assets) | 13.97% | 8.00% |
| Tier I Capital (to Risk Weighted Assets) | 12.82% | 6.00% |
| Tier I Capital (to Average Assets) | 11.66% | 4.00% |
How Affinity Bancshares, Inc. (AFBI) Makes Money
Interest Income from Loans
Affinity Bancshares, Inc. generates a significant portion of its revenue through interest income from loans. For the nine months ended September 30, 2024, interest income from loans increased by $4.4 million, or 17.0%, totaling $30.6 million compared to $26.1 million for the same period in 2023. The average balance of loans rose by $22.5 million, or 3.4%, to $681.9 million, and the average yield on loans increased by 69 basis points to 5.99%.
Interest Income from Investments
In addition to loans, Affinity Bancshares earns interest from investment securities. Interest income from available-for-sale and held-to-maturity securities increased by $96,000, totaling $2.9 million for the nine months ended September 30, 2024, compared to $2.8 million in 2023. The average balance of these securities was $81.7 million for the nine months ended September 30, 2024.
Interest Expense
Interest expense is a critical factor in determining net interest income. For the nine months ended September 30, 2024, interest expense increased by $2.9 million to $14.0 million, primarily due to additional borrowings. The average balance of borrowings rose by $20 million to $53.9 million.
| Interest Expense Components | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Interest Expense | $14.0 | $11.1 |
| Interest Expense on Deposits | $12.3 | $10.0 |
| Interest Expense on Borrowings | $1.7 | $1.1 |
Net Interest Income
Net interest income is calculated as the difference between interest income and interest expense. For the nine months ended September 30, 2024, net interest income rose by $1.2 million, or 6.1%, to $21.7 million compared to $20.5 million in 2023. The net interest margin improved to 3.54% from 3.36% in the prior year.
Non-Interest Income
Non-interest income contributes to overall revenue but decreased slightly by $5,000 to $1.9 million for the nine months ended September 30, 2024, compared to $1.9 million in 2023. The decline was attributed to a reduction in merchant services volume.
Non-Interest Expenses
Non-interest expenses increased by $298,000, or 5.5%, totaling $5.7 million for the three months ended September 30, 2024, compared to $5.4 million in 2023. The major contributors to the increase included:
- Salaries and employee benefits: $3.3 million (2024) vs. $3.0 million (2023)
- Occupancy expenses: $600,000 (2024) vs. $637,000 (2023)
- Professional fees: $356,000 (2024) vs. $160,000 (2023)
Provision for Credit Losses
The provision for credit losses totaled $213,000 for the nine months ended September 30, 2024, compared to $7,000 in 2023. The allowance for credit losses was $8.4 million at September 30, 2024, representing 1.20% of total loans.
Financial Overview
As of September 30, 2024, the total assets of Affinity Bancshares stood at $885.5 million, with total liabilities of $758.7 million and stockholders' equity of $126.8 million.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $885.5 million | $866.8 million |
| Total Liabilities | $758.7 million | $747.9 million |
| Stockholders' Equity | $126.8 million | $118.8 million |
Conclusion
Affinity Bancshares, Inc. continues to leverage its loan portfolio and investment securities to generate income while managing expenses and provisions for credit losses to maintain profitability in a competitive banking environment.
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Resources:
- Affinity Bancshares, Inc. (AFBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Affinity Bancshares, Inc. (AFBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Affinity Bancshares, Inc. (AFBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.