Affinity Bancshares, Inc. (NASDAQ:“AFBI”) (the “Company”), the holding company for Affinity Bank (the “Bank”), today announced net income of $2.2 million for the three months ended September 30, 2025, as compared to $1.7 million for the three months ended September 30, 2024.

Net Income

• Net income was $6.2 million for nine months ended September 30, 2025 as compared to $4.1 million for the nine months ended September 30, 2024, as a result of an increase in net interest income along with a decrease in noninterest expenses primarily due to merger-related expenses for the 2024 period offset by a decrease in noninterest income.

• Operating income for the nine months ended September 30, 2025 was $6.7 million as compared to $5.0 million for the nine months ended September 30, 2024.

• Net income was $2.2 million for three months ended September 30, 2025 as compared to $1.7 million for the three months ended September 30, 2024, as a result of an increase in net interest income along with a decrease in noninterest expenses.

• Operating income for the three months ended September 30, 2025 was $2.4 million as compared to $1.9 million for the three months ended September 30, 2024.

Results of Operations

• Net interest income was $22.9 million for the nine months ended September 30, 2025 compared to $21.7 million for the nine months ended September 30, 2024. The increase was due to an increase in interest income on loans and interest-earning deposits offset by increases in deposit costs and a decrease in interest income on investment securities.

• Net interest margin for the nine months ended September 30, 2025 decreased one basis point to 3.53% from 3.54% for the nine months ended September 30, 2024.

• Noninterest income decreased $246,000 to $1.6 million for the nine months ended September 30, 2025, primarily due to lower service charges on deposit accounts and the absence of a gain on the sale of other real estate recorded in 2024.

• Non-interest expense decreased $1.7 million to $16.3 million for the nine months ended September 30, 2025 compared to the 2024 period, due mainly to a decrease in other expenses, and specifically merger-related expenses.

• Net interest income was $7.8 million for the three months ended September 30, 2025 compared to $7.4 million for the three months ended September 30, 2024. The increase was due to an increase in interest income on loans and interest-earning deposits, partially offset by increases in deposit costs and a decrease in interest income on investment securities.

• Net interest margin for the three months ended September 30, 2025 decreased to 3.49% from 3.52% for the three months ended September 30, 2024. The decrease in the margin relates to a decrease in our yield on interest earning deposits, which was offset by decreases in yields on our interest-bearing liabilities.

• Noninterest income increased $22,000 to $588,000 for the three months ended September 30, 2025.

• Non-interest expense decreased $275,000 to $5.4 million for the three months ended September 30, 2025 compared to the 2024 period, due mainly to a decrease in other fees.

Financial Condition

• Total assets increased $58.4 million to $925.2 million at September 30, 2025 from $866.8 million at December 31, 2024, as we experienced loan growth and an increase in interest earning deposits which was funded from growth in our deposits.

• Total gross loans increased $15.4 million to $729.5 million at September 30, 2025 from $714.1 million at December 31, 2024. The increase was due to steady loan demand in construction and consumer loans, and commercial loans secured by real estate - owner occupied.

• Non-owner occupied office loans totaled $41.1 million at September 30, 2025; the average LTV on these loans is 45.5%, including

  • $15.6 million medical/dental tenants and

  • $25.5 million to other various tenants.

• Investment securities held-to-maturity unrealized gains were $327,000, net of tax. Investment securities available-for-sale unrealized losses were $4.5 million, net of tax.

• Cash and cash equivalents increased $43.4 million to $84.8 million at September 30, 2025 from $41.4 million at December 31, 2024.

• Deposits increased by $65.9 million to $739.4 million at September 30, 2025 compared to $673.5 million at December 31, 2024, with a $57.8 million net increase in demand deposits and a $8.1 million increase in certificates of deposit.

• Borrowings decreased by $4.8 million to $54.0 million at September 30, 2025 compared to $58.8 million at December 31, 2024 as an advance from the Bank Term Funding program was repaid in full in the first quarter of 2025.

• Equity decreased $3.7 million to $125.4 million at September 30, 2025 from $129.1 million at December 31, 2024 from payment of a $1.50 per share dividend that was declared and paid in first quarter, along with $4.1 million of common stock repurchases.

Asset Quality

• Non-performing loans increased to $5.1 million at September 30, 2025 from $4.8 million at December 31, 2024.

• The allowance for credit losses as a percentage of non-performing loans was 168.4% at September 30, 2025, as compared to 177.9% at December 31, 2024.

• The allowance for credit losses to total loans decreased to 1.17% at September 30, 2025 from 1.19% at December 31, 2024.

• Net loan charge-offs were $129,000 for the nine months ended September 30, 2025, as compared to net loan charge-offs of $523,000 for the nine months ended September 30, 2024.