Affinity Bancshares, Inc. reported a total asset increase of $23.6 million, or 2.8%, reaching $866.8 million as of December 31, 2024, compared to $843.3 million in the previous year. This growth was primarily driven by an increase in net loans, which rose by $54.7 million, or 8.4%, to $705.6 million. However, the company experienced a decline in net income, which fell by $1.0 million, or 15.6%, to $5.4 million for the year, attributed to rising deposit costs, increased noninterest expenses, and a higher provision for credit losses.
The company’s interest income increased by $5.3 million, or 12.3%, totaling $48.0 million, largely due to a $5.9 million rise in interest income from loans. Conversely, interest expense also rose significantly, increasing by $3.3 million, or 21.3%, to $18.8 million, reflecting higher costs across all interest-bearing liabilities. Noninterest expenses increased by $2.4 million, or 11.5%, to $23.8 million, influenced by costs associated with a recently terminated merger transaction.
Affinity Bancshares has made strategic moves to enhance its operational footprint, including a focus on diversifying its loan portfolio. The company has specialized in lending to dental practices, which constituted 26% of its total loan portfolio as of December 31, 2024. The bank also expanded its construction lending, which saw a 41.8% increase year-over-year. The total number of employees remained stable at 88 full-time and four part-time staff, indicating a consistent workforce to support its operations.
Looking ahead, Affinity Bancshares anticipates continued growth in its loan portfolio and has declared a special cash dividend of $1.50 per share, payable on March 27, 2025. The company has also initiated a stock repurchase program, allowing for the repurchase of up to 320,480 shares, or approximately 5% of its outstanding shares. Management remains optimistic about the bank's ability to navigate market conditions and capitalize on growth opportunities while maintaining a strong capital position, as evidenced by its well-capitalized status under regulatory requirements.
About Affinity Bancshares, Inc.
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