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Affinity Bancshares , Inc Announces Third Quarter 2021 Financial Results Affinity Bancshares , Inc. ( NASDAQ : " AFBI ” ) , ( the " Company " ) , the holding company for Affinity Bank ( the " Bank ” ) , today announced net income of $ 1.8 million for the three months ended September 30 , 2021 as compared to $ 1.9 million for the corresponding prior year period . For the nine months ended September 30 , 2021 , the Company reported net income of $ 6.3 million as compared to $ 1.7 million for the corresponding prior year period . Performance Ratios : Return on average assets Return on average equity Net interest margin Efficiency ratio Results of Operations For the three months ended , September 30 , 2021 June 30 , 2021 March 31 , 2021 September 30 , 2020 For the nine months ended , September 30 , 2021 September 30 , 2020 0.91 % 1.18 % 1.11 % 0.90 % 1.06 % 0.31 % 6.00 % 7.95 % 8.03 % 9.46 % 7.29 % 2.86 % 3.78 % 4.10 % 4.65 % 3.81 % 4.17 % 3.69 % 65.87 % 58.30 % 64.96 % 60.95 % 63.08 % 82.94 % Net income was $ 1.8 million for the three months ended September 30 , 2021 , compared to $ 1.9 million for the three months ended September 30 , 2020. We have strategically made additional hires to further enhance our business development efforts . Net income increased $ 4.6 million to $ 6.3 million for the nine months ended September 30 , 2021 , compared to $ 1.7 million for the nine months ended September 30 , 2020. Our net income in 2020 was reduced as a result of merger related expenses . Merger related expenses for the nine months ended September 30 , 2020 , were $ 2.8 million . Net Interest Income and Margin Net interest income decreased $ 300,000 , and was $ 6.9 million for the three months ended September 30 , 2021 , compared to $ 7.2 million for the three months ended September 30 , 2020. Average interest - earning assets decreased by $ 34.5 million for the three months ended September 30 , 2021. Net interest income increased $ 4.4 million , and was $ 22.6 million for the nine months ended September 30 , 2021 , compared to $ 18.2 million for the nine months ended September 30 , 2020. Average interest - earning assets increased by $ 66.2 million for the nine months ended September 30 , 2021. Net interest margin for the three months ended September 30 , 2021 , decreased to 3.78 % , from 3.81 % for the same prior year period . The net interest margin compression was primarily due to the excess balance sheet liquidity and the lower interest rate environment . Net interest margin for the nine months ended September 30 , 2021 , increased to 4.17 % from 3.69 % for the same prior year period . For the three months ended September 30 , 2021 , the cost of average interest - bearing liabilities decreased to 0.65 % from 1.00 % for the corresponding prior year period . For the nine months ended September 30 , 2021 , the cost of average interest - bearing liabilities decreased to 0.69 % from 1.18 % for the corresponding prior year period . The total cost of deposits ( including non - interest - bearing deposits ) was 0.60 % for the three months ended September 30 , 2021 compared to 1.03 % for the three months ended September 30 , 2020. For the nine months ended September 30 , 2021 , the cost of deposits was 0.66 % compared to 1.21 % for the nine months ended September 30 , 2020 . The decrease was due to decreasing deposit rates related to the decrease in market rates . Provision for Loan Losses For the three months ended September 30 , 2021 , the provision for loan loss expense was $ 225,000 compared to $ 600,000 for the three months ended September 30 , 2020. We increased our provision expense in 2020 due to the uncertainty related to the pandemic . For the nine months ended September 30 , 2021 , the provision for loan loss expense was $ 975,000 compared to $ 1.4 million for the nine months ended September 30 , 2020. As the economy began to improve in 2021 , less provision expense was required . Net loan recoveries were $ 19,000 for the three months ended September 30 , 2021 , compared