Affinity Bancshares Reports 37% Increase in Net Income to $1.8 Million for Q1 2025

Affinity Bancshares, Inc. reported a net income of $1.8 million for the first quarter of 2025, reflecting a 37% increase from the $1.3 million recorded in the same period of 2024. This growth was primarily driven by a rise in net interest income, which increased by 8.7% to $7.3 million, compared to $6.7 million in the prior year. The bank's total interest income rose to $12.1 million, up 7.9% from $11.2 million, largely due to a 12.1% increase in interest income from loans, which reached $10.6 million. The average yield on loans also improved, rising to 6.05% from 5.75% year-over-year.

In terms of financial position, Affinity Bancshares saw total assets increase by $45.7 million, or 5.3%, to $912.5 million as of March 31, 2025, compared to $866.8 million at the end of 2024. This growth was attributed to a $6.9 million increase in gross loans, which totaled $721 million, and a significant rise in total deposits, which increased by $56.8 million, or 8.4%, to $730.3 million. The bank's loan-to-deposit ratio stood at 98.7%, up from 97.8% at the end of the previous year.

Operationally, Affinity Bancshares has focused on expanding its loan portfolio, particularly in construction and commercial loans. Construction loans increased by 5.9% to $71.6 million, while commercial and industrial loans rose by 0.6%. The bank also reported a decrease in residential mortgage loans, which fell by 3.4%. The increase in deposits was broad-based, with demand deposits and money market accounts both showing significant growth, reflecting the bank's ability to attract and retain customer funds.

The company’s stockholders' equity decreased by 5.3% to $122.3 million, primarily due to an $8.8 million special dividend payment and a $1.2 million stock repurchase, offset by the net income generated during the quarter. The bank's capital ratios remain strong, with all regulatory capital requirements exceeded, and it continues to be categorized as "well capitalized." Looking ahead, management remains optimistic about maintaining a strong liquidity position and expects to continue leveraging its growth strategies to enhance profitability and shareholder value.