Executive Summary

Q4 2024 diluted EPS was $0.20, down year over year from $0.23, with adjusted diluted EPS of $0.26 reflecting a $385K loss on securities sales and merger-related expenses; net interest income increased to $7.433M and net interest margin improved to 3.56% from 3.32% YoY .
Operating income rose to $1.738M in Q4 2024 vs $1.514M in Q4 2023, as higher loan yields outweighed higher deposit/borrowing costs; efficiency ratio deteriorated to 75.95% versus 74.30% YoY .
Asset quality improved: non-performing loans fell to $4.8M (from $7.4M), allowance coverage of NPLs rose to 177.9%, while allowance-to-loans decreased to 1.19% .
Strategic repositioning: $10.4M of AFS securities yielding under 3% were sold, redeployed into higher-yielding loans; merger with APCU/Center Parc was terminated on Dec 30, removing a regulatory overhang but elevating 2024 professional fees .
Capital returns post-quarter: special cash dividend of $1.50 per share (payable Mar 27, 2025) and a new buyback authorizing up to 320,480 shares (~5% of shares) add supportive shareholder return catalysts .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded YoY to 3.56% in Q4 (from 3.32%), as asset yields rose faster than deposit/borrowing costs; Q4 net interest income was $7.433M, up from $6.705M YoY .
Asset quality strengthened: NPLs down to $4.8M, allowance coverage of NPLs up to 177.9%, and non-owner occupied office loans carried conservative average LTV of 46.8% .
Management repositioned the securities portfolio, selling $10.4M of sub-3% yield AFS securities to fund higher-yielding loans, supporting NIM and earnings power despite one-time loss recognition .

What Went Wrong

GAAP EPS compressed: diluted EPS $0.20 vs $0.23 YoY; noninterest income fell to $161K on the securities loss, and noninterest expense increased to $5.768M due to merger-related professional fees .
Efficiency ratio worsened to 75.95% in Q4 vs 71.48% in Q3 and 74.30% in Q4 2023, reflecting higher operating costs amid the terminated transaction .
Allowance-to-loans ratio declined to 1.19% (from 1.35% year-end 2023), while net charge-offs increased to $650K for 2024 vs $404K in 2023, signaling a modestly higher realized loss rate even as NPLs improved .

Financial Results

Quarterly P&L and Margin Metrics

Metric	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($USD Thousands)	$7,568	$7,414	$7,433
Noninterest Income ($USD Thousands)	$706	$566	$161
Diluted EPS ($USD)	$0.16	$0.26	$0.20
Net Interest Margin (%)	3.71%	3.52%	3.56%
Efficiency Ratio (%)	78.74%	71.48%	75.95%

Notes:

YoY comparisons for Q4: NIM 3.56% vs 3.32% (Q4 2023); net interest income $7.433M vs $6.705M; diluted EPS $0.20 vs $0.23 .
Adjusted diluted EPS in Q4 was $0.26, reflecting $385K securities loss and $119K merger-related expenses (net of tax), adding back specific items to GAAP net income .

Balance Sheet and Asset Quality KPIs (End-of-Period)

KPI	Q2 2024	Q3 2024	Q4 2024
Total Assets ($USD Thousands)	$872,558	$878,561	$866,817
Gross Loans ($USD Thousands)	$692,591	$697,572	$714,115
Deposits ($USD Thousands)	$689,712	$683,770	$673,481
Borrowings ($USD Thousands)	$51,837	$58,815	$58,815
NOO Office Loans ($USD Millions)	$29.4	$32.7	$44.2
Avg LTV on NOO Office (%)	46.0%	46.6%	46.8%
Nonperforming Loans ($USD Millions)	$3.0	$4.9	$4.8
Allowance Coverage of NPLs (%)	282.0%	172.4%	177.9%
Allowance to Total Loans (%)	1.22%	1.20%	1.19%
Uninsured Deposits (% of Total)	15.4%	15.2%	N/A (not disclosed)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Mar 2025	N/A	Special dividend $1.50/share payable Mar 27, 2025	New
Share Repurchase Authorization	2025	N/A	Up to 320,480 shares (~5% of outstanding)	New
Financial Guidance (Revenue, Margins, OpEx, Tax)	2025	None disclosed	None disclosed	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found in the document catalog for AFBI. Searches for “earnings-call-transcript” and “other-transcript” between Dec 1, 2024 and Feb 28, 2025 returned no results [ListDocuments].

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
APCU/Center Parc transaction	Elevated professional fees tied to proposed APCU transaction in Q2/Q3	Transaction terminated Dec 30; no termination fee; mutual releases	Deal overhang removed; expense normalization expected post-termination
Deposit mix & uninsured deposits	Uninsured deposits ~15.4% (Q2) and ~15.2% (Q3); DDA ~36% of deposits	Deposits ended at $673.5M, down ~$1.0M YoY; uninsured % not disclosed	Broadly stable through Q3; modest decline in Q4; disclosure narrowed
Net interest margin	Peaked at 3.71% (Q2), dipped to 3.52% (Q3)	Rebounded to 3.56% (Q4), aided by loan yields	Stabilizing with modest improvement
Office CRE exposure	NOO office loans $29.4M (Q2), $32.7M (Q3), LTV ~46%	NOO office loans $44.2M; avg LTV 46.8%; medical/dental $17.4M	Exposure grew with conservative LTV profiles
Securities portfolio actions	No notable actions in Q2/Q3 press releases	$10.4M of sub-3% AFS securities sold; $385K loss; redeployed to loans	Repositioning to enhance asset yields

Management Commentary

“We recorded a solid level of net income for the year ended December 31, 2024, despite the expenses we incurred in connection with the terminated transaction with Atlanta Postal Credit Union, which reaffirms the Company’s stability and resilience. This dividend reflects our desire to share our success with our stockholders, as well as our ongoing commitment to delivering stockholder value.” — Edward J. Cooney, CEO, on special dividend .
Company emphasized that Q4 noninterest income decline was driven by a “loss on sale of $10.4 million in investment securities available-for-sale that were yielding an weighted average rate under 3.00% allowing for investment in higher yielding loans,” reflecting a strategic balance sheet repositioning .
Q4 margin commentary: “increases in our yield on earning assets exceeding our increases in our deposits and borrowing costs” drove NIM expansion YoY .

Q&A Highlights

No Q4 2024 earnings call transcript was available; therefore, no Q&A disclosures or guidance clarifications were found [ListDocuments].

Estimates Context

Wall Street consensus EPS and revenue estimates (S&P Global) for AFBI Q4 2024 were unavailable due to data access limitations; as a result, no beat/miss determination versus consensus can be made at this time (Values from S&P Global were not retrievable).
Given limited sell-side coverage, estimate adjustments will likely focus on incorporating the one-time securities loss, merger-related expenses, and NIM trajectory post-repositioning .

Key Takeaways for Investors

Earnings quality: Underlying NIM and loan yields improved; GAAP results were dampened by a deliberate securities loss and merger-related expenses — adjusted EPS better reflects core earnings power .
Balance sheet repositioning: Selling $10.4M of sub-3% AFS to fund higher-yield loans is a positive for forward NIM, but near-term noninterest income optics suffered in Q4 .
Asset quality: NPL reductions and stronger allowance coverage of NPLs (177.9%) bolster credit resilience; watch the lower allowance-to-loans (1.19%) and increased net charge-offs YoY .
Deposit and liquidity: Deposits modestly declined YoY; borrowings increased to support liquidity; monitoring cost-of-funds and deposit mix remains key in 2025 .
Capital returns: Special cash dividend ($1.50/share) and new buyback (up to ~5% shares) are tangible shareholder return and could support stock performance absent formal financial guidance .
Merger overhang removed: Termination with APCU/Center Parc reduces regulatory uncertainty and should lower professional fee run-rate going forward .
Near-term trading setup: Potential relief rally on capital return announcements and improved NIM, balanced by the Q4 noninterest income hit and lack of consensus anchors; catalysts include subsequent disclosure on deposit trends, C&I/CRE growth, and cost normalization .

Affinity Bancshares, Inc. (AFBI)·Q4 2024 Earnings Summary