Affinity Bancshares (AFBI) Q1 2026 earnings summary

Executive summary

• Entered into a merger agreement on March 30, 2026, to be acquired for $23.00 per share in cash, with closing expected in Q3 2026, subject to approvals.

• Net income for Q1 2026 was $2.3 million, up from $1.8 million in Q1 2025, driven by higher net interest income and lower noninterest expenses.

• Operating income increased to $2.3 million from $2.0 million year-over-year.

• Total assets grew to $924.7 million at March 31, 2026, primarily from increases in loans and cash.

Financial highlights

• Net interest income before provision for credit losses rose 3.1% year-over-year to $7.6 million.

• Total interest income increased 2.0% to $12.3 million, with loan interest income up 4.6%.

• Noninterest income rose 14.8% to $552,000, mainly from higher service charges and loan fees.

• Noninterest expenses fell 2.7% to $5.2 million, primarily due to lower salaries and benefits.

• Basic and diluted EPS were $0.37 and $0.36, respectively, compared to $0.29 and $0.28 in Q1 2025.

Outlook and guidance

• Merger with Fidelity BancShares expected to close in Q3 2026, pending regulatory and shareholder approvals.

• Management anticipates sufficient liquidity and capital to meet obligations and regulatory requirements.

• Forward-looking statements highlight uncertainties from economic conditions, interest rates, inflation, asset quality, and regulatory changes.