Affinity Bancshares Reports Increased Net Income and Asset Growth in Q2 2025

Affinity Bancshares, Inc. reported a notable increase in its financial performance for the second quarter of 2025, with net income rising to $2.2 million, compared to $1.0 million in the same period last year. This growth was driven by a 4.9% increase in interest income, which reached $12.8 million, primarily due to higher loan income. The company’s net interest income before provision for credit losses also saw a modest increase of 2.8%, totaling $7.8 million. However, noninterest income decreased by 23.5% to $540,000, attributed to a decline in merchant services volume and prior year gains on real estate sales.

In terms of overall financial health, Affinity Bancshares reported total assets of $933.8 million as of June 30, 2025, marking a 7.8% increase from $866.8 million at the end of 2024. This growth was largely due to a $17.0 million increase in gross loans, which reached $731.1 million, and a significant rise in cash and cash equivalents. Total deposits also increased by 11.3% to $749.3 million, reflecting strong demand across various deposit types, including a notable rise in money market and savings accounts.

The company’s strategic initiatives included a focus on expanding its loan portfolio, particularly in construction and consumer installment loans, which saw increases of 8.7% and 7.6%, respectively. However, there were declines in residential mortgage loans and non-owner-occupied commercial real estate loans. Additionally, Affinity Bancshares maintained a loan-to-deposit ratio of 97.6%, down from 106.0% at the end of 2024, indicating improved liquidity management.

Operationally, the company reported a decrease in employee headcount, with total noninterest expenses declining by 18.6% to $5.5 million, primarily due to reduced professional fees related to a previously planned merger that did not materialize. The allowance for credit losses remained stable at $8.5 million, representing 1.17% of total loans, with net charge-offs decreasing significantly to $79,000 for the first half of 2025, compared to $460,000 in the same period last year.

Looking ahead, Affinity Bancshares expressed optimism about its growth trajectory, emphasizing its commitment to maintaining a strong liquidity position and adapting to changing market conditions. The company plans to continue focusing on expanding its loan offerings while managing interest rate risks effectively, as it navigates the evolving economic landscape.