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Affinity Bancshares Stock Gains Post Q4 Earnings, NIM Expands
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Shares of Affinity Bancshares, Inc. (AFBI - Free Report) have gained 1.2%, outperforming the S&P 500 Index, which rose 0.9% over the same period. However, the stock has lagged the benchmark over the past month, dipping 1.5% against the S&P 500’s 1.3% increase.
AFBI’s Earnings Snapshot
For the fourth quarter of 2025, Affinity Bancshares reported net income of $2.1 million, up 58.5% from $1.3 million in the year-ago quarter. Diluted earnings per share (EPS) rose 70% to $0.34 from $0.20 in the prior-year period, supported by higher net interest income and lower noninterest expenses. On an adjusted basis, which excludes certain non-GAAP items, diluted EPS increased 8.1% to $0.40 from $0.30 a year earlier.
Net interest income for the quarter grew 11% to $8.3 million from $7.4 million a year earlier, driven primarily by higher interest income on loans and interest-earning deposits, partially offset by higher deposit costs and lower investment securities income. AFBI does not report discrete operating segments, but loan growth was broad-based, with increases noted in construction loans, consumer loans and owner-occupied commercial real estate lending.
On a full-year basis, net income reached $8.3 million in 2025, compared with $5.4 million in 2024 (up 53.1%), while diluted EPS increased 55.4% to $1.29 from $0.83.
Affinity Bancshares’ Other Key Business Metrics
Several balance sheet and profitability metrics improved year over year. Net interest margin (NIM) for the fourth quarter expanded to 3.77% from 3.56% in the prior-year quarter, benefiting from lower yields on interest-bearing liabilities, even as yields on interest-earning assets declined modestly. The efficiency ratio improved to 63.55% in the quarter from 75.95% a year earlier, reflecting tighter expense control. Return on average assets was 0.92% for the quarter, up from 0.61% in the year-ago period, while return on average equity increased to 6.69% from 4.14%. Total assets stood at $881.7 million as of Dec. 31, 2025, up from $866.8 million from a year earlier, supported by loan growth and higher interest-earning deposits.
Total gross loans increased to $742.7 million as of Dec. 31, 2025, from $714.1 million as of Dec. 31, 2024, supported by steady demand in construction, consumer lending and owner-occupied commercial real estate loans. Deposits rose to $695 million as of Dec. 31, 2025, from $673.5 million as of Dec. 31, 2024, with growth primarily coming from demand deposits.
Asset quality metrics also showed improvement. Non-performing loans declined to $3.6 million as of Dec. 31, 2025, from $4.8 million at the end of 2024. The allowance for credit losses increased to 1.21% of total loans as of Dec. 31, 2025, from 1.19% as of Dec. 31, 2024, and the allowance coverage of non-performing loans increased to 251.9% from 177.9% during the same time.
For the full year, the company recorded net loan recoveries of $228,000, versus net charge-offs of $650,000 in 2024.
Affinity Bancshares, Inc. Price, Consensus and EPS Surprise
Management attributed the improved earnings performance primarily to higher net interest income and a meaningful reduction in noninterest expenses. Expense reductions were largely related to the absence of merger-related costs that weighed on results in the prior year, as well as lower salaries and employee benefits and other operating expenses in the quarter. AFBI also highlighted disciplined balance sheet management, including actions taken to optimize its investment portfolio and funding mix during the year.
The quarter’s results were influenced by both income growth and cost containment. Net interest income benefited from higher loan balances and improved pricing relative to funding costs, while the sale of the remaining investment held-to-maturity portfolio during the fourth quarter affected interest income trends and margin dynamics.
Noninterest income increased modestly in the quarter, supported by other income items. However, full-year noninterest income declined due to lower service charges on deposit accounts and the absence of gains on real estate sales recorded in 2024.
On the expense side, the 5.6% year-over-year decline in noninterest expense to $5.4 million from $5.8 was a key driver of earnings growth, reflecting a leaner operating cost structure.
AFBI’s Guidance
Affinity Bancshares did not provide specific quantitative forward-looking guidance. Management provided standard cautionary language regarding forward-looking statements, noting that future performance could be affected by changes in economic conditions, interest rates, asset quality, funding costs, regulatory developments and other factors.
Affinity Bancshares’ Other Developments
During the year, Affinity Bancshares completed the sale of its investment securities held-to-maturity portfolio and repaid advances under the Bank Term Funding Program in full during the first quarter of 2025. Shareholder returns were also notable, with the company paying a $1.50 per share dividend and repurchasing $6 million of common stock during the year.
No acquisitions or divestitures beyond these balance sheet actions were reported for the quarter.
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Affinity Bancshares Stock Gains Post Q4 Earnings, NIM Expands
Shares of Affinity Bancshares, Inc. (AFBI - Free Report) have gained 1.2%, outperforming the S&P 500 Index, which rose 0.9% over the same period. However, the stock has lagged the benchmark over the past month, dipping 1.5% against the S&P 500’s 1.3% increase.
AFBI’s Earnings Snapshot
For the fourth quarter of 2025, Affinity Bancshares reported net income of $2.1 million, up 58.5% from $1.3 million in the year-ago quarter. Diluted earnings per share (EPS) rose 70% to $0.34 from $0.20 in the prior-year period, supported by higher net interest income and lower noninterest expenses. On an adjusted basis, which excludes certain non-GAAP items, diluted EPS increased 8.1% to $0.40 from $0.30 a year earlier.
Net interest income for the quarter grew 11% to $8.3 million from $7.4 million a year earlier, driven primarily by higher interest income on loans and interest-earning deposits, partially offset by higher deposit costs and lower investment securities income. AFBI does not report discrete operating segments, but loan growth was broad-based, with increases noted in construction loans, consumer loans and owner-occupied commercial real estate lending.
On a full-year basis, net income reached $8.3 million in 2025, compared with $5.4 million in 2024 (up 53.1%), while diluted EPS increased 55.4% to $1.29 from $0.83.
Affinity Bancshares’ Other Key Business Metrics
Several balance sheet and profitability metrics improved year over year. Net interest margin (NIM) for the fourth quarter expanded to 3.77% from 3.56% in the prior-year quarter, benefiting from lower yields on interest-bearing liabilities, even as yields on interest-earning assets declined modestly. The efficiency ratio improved to 63.55% in the quarter from 75.95% a year earlier, reflecting tighter expense control. Return on average assets was 0.92% for the quarter, up from 0.61% in the year-ago period, while return on average equity increased to 6.69% from 4.14%. Total assets stood at $881.7 million as of Dec. 31, 2025, up from $866.8 million from a year earlier, supported by loan growth and higher interest-earning deposits.
Total gross loans increased to $742.7 million as of Dec. 31, 2025, from $714.1 million as of Dec. 31, 2024, supported by steady demand in construction, consumer lending and owner-occupied commercial real estate loans. Deposits rose to $695 million as of Dec. 31, 2025, from $673.5 million as of Dec. 31, 2024, with growth primarily coming from demand deposits.
Asset quality metrics also showed improvement. Non-performing loans declined to $3.6 million as of Dec. 31, 2025, from $4.8 million at the end of 2024. The allowance for credit losses increased to 1.21% of total loans as of Dec. 31, 2025, from 1.19% as of Dec. 31, 2024, and the allowance coverage of non-performing loans increased to 251.9% from 177.9% during the same time.
For the full year, the company recorded net loan recoveries of $228,000, versus net charge-offs of $650,000 in 2024.
Affinity Bancshares, Inc. Price, Consensus and EPS Surprise
Affinity Bancshares, Inc. price-consensus-eps-surprise-chart | Affinity Bancshares, Inc. Quote
AFBI’s Management Commentary
Management attributed the improved earnings performance primarily to higher net interest income and a meaningful reduction in noninterest expenses. Expense reductions were largely related to the absence of merger-related costs that weighed on results in the prior year, as well as lower salaries and employee benefits and other operating expenses in the quarter. AFBI also highlighted disciplined balance sheet management, including actions taken to optimize its investment portfolio and funding mix during the year.
Factors Influencing Affinity Bancshares’ Headline Numbers
The quarter’s results were influenced by both income growth and cost containment. Net interest income benefited from higher loan balances and improved pricing relative to funding costs, while the sale of the remaining investment held-to-maturity portfolio during the fourth quarter affected interest income trends and margin dynamics.
Noninterest income increased modestly in the quarter, supported by other income items. However, full-year noninterest income declined due to lower service charges on deposit accounts and the absence of gains on real estate sales recorded in 2024.
On the expense side, the 5.6% year-over-year decline in noninterest expense to $5.4 million from $5.8 was a key driver of earnings growth, reflecting a leaner operating cost structure.
AFBI’s Guidance
Affinity Bancshares did not provide specific quantitative forward-looking guidance. Management provided standard cautionary language regarding forward-looking statements, noting that future performance could be affected by changes in economic conditions, interest rates, asset quality, funding costs, regulatory developments and other factors.
Affinity Bancshares’ Other Developments
During the year, Affinity Bancshares completed the sale of its investment securities held-to-maturity portfolio and repaid advances under the Bank Term Funding Program in full during the first quarter of 2025. Shareholder returns were also notable, with the company paying a $1.50 per share dividend and repurchasing $6 million of common stock during the year.
No acquisitions or divestitures beyond these balance sheet actions were reported for the quarter.