Affinity Bancshares, Inc. (AFBI) | Investment Case

1. Company Snapshot

1.a. Company Description

Affinity Bancshares, Inc.operates as the holding company for Affinity Bank that provides various banking products and services.The company accepts various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts.

It also offers commercial and industrial, commercial real estate, one- to four-family residential real estate, construction and land, and consumer loans.In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds.It operates a main and a branch office in Covington, Georgia; a branch office in Atlanta, Georgia; and a commercial loan production office in Alpharetta, Georgia; out of an office in Monroe, Georgia.

The company was founded in 1928 and is headquartered in Covington, Georgia.

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1.b. Last Insights on AFBI

Affinity Bancshares, Inc.'s recent performance was negatively impacted by the termination of the purchase agreement with APCU/Center Parc Credit Union on December 30, 2024. This unexpected development likely disappointed investors and contributed to the company's recent stock performance issues. Additionally, the company's fourth-quarter and year-end 2024 financial results, released on January 31, 2025, showed a decline in net income due to increased expenses and lower interest income.

1.c. Company Highlights

Last Price	20.02
Change Percentage	-1.14%
Open	20.45
Previous Close	20.25
Market Cap ( Millions)	127
Volume	422
Year High	22.5
Year Low	17
M A 50	19.19
M A 200	18.8

FCF Yield	8.05%
Dividend Yield	7.49%
ROE	6.03%
Debt / Equity	0.00%
Net Debt / EBIDTA	-58.81%
Price To Book	1.01
Price Earnings Ratio	16.78
Price To FCF	12.42
Price To sales	2.53
EV / EBITDA	11.68

2. Transcript Summary

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3. NewsRoom

Affinity Bancshares, Inc. Announces Third Quarter 2025 Financial Results

Oct -24

Source: businesswire.com

Affinity Bancshares: No Dividend, But Buying Back Its Own Shares

Sep -19

Source: seekingalpha.com

Affinity Bancshares Net Jumps in Q2

Jul -25

Source: fool.com

Affinity Bancshares, Inc. Announces Second Quarter 2025 Financial Results

Jul -25

Source: businesswire.com

Affinity Bancshares: The Sale Fell Through, I'm Not A Buyer Yet

May -06

Source: seekingalpha.com

Affinity Bancshares, Inc. Adopts Stock Repurchase Program

Mar -07

Source: businesswire.com

Affinity Bancshares, Inc. Announces Payment of Special Cash Dividend of $1.50 Per Share

Feb -27

Source: businesswire.com

Affinity Bancshares, Inc. Announces Fourth Quarter and the Year 2024 Financial Results

Jan -31

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Savings and Loan

Expected Growth: 4.5%

Growing demand for traditional banking services, increasing adoption of digital banking, and expanding presence in local communities drive growth for Savings and Loan from Affinity Bancshares, Inc.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

Provides mortgage lending services to individuals and families, including purchase and refinance loans.

Wealth Management

Offers investment and wealth management services, including financial planning, investment management, and trust services.

Treasury Management

Provides cash management and treasury services to businesses, including account management, payment processing, and fraud prevention.

8. Affinity Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Affinity Bancshares, Inc. is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for Affinity Bancshares, Inc. is low due to the lack of concentration of customers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Affinity Bancshares, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on them.

Threat Of New Entrants

The threat of new entrants for Affinity Bancshares, Inc. is low due to the high barriers to entry in the banking industry and the presence of regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Affinity Bancshares, Inc. is high due to the presence of multiple competitors in the banking industry and the high level of competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.77%
Debt Cost	4.58%
Equity Weight	75.23%
Equity Cost	6.18%
WACC	5.78%
Leverage	32.92%

11. Quality Control: Affinity Bancshares, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

West Bank

A-Score: 6.5/10

Value: 6.8

Growth: 4.8

Quality: 6.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Affinity Bancshares

A-Score: 6.2/10

Value: 6.3

Growth: 7.3

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Stock Yards Bancorp

A-Score: 5.9/10

Value: 4.4

Growth: 6.8

Quality: 6.5

Yield: 4.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

MainStreet Bancshares

A-Score: 5.7/10

Value: 7.6

Growth: 4.2

Quality: 4.3

Yield: 3.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

HomeStreet

A-Score: 4.6/10

Value: 9.4

Growth: 1.9

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

First Guaranty Bancshares

A-Score: 3.6/10

Value: 6.5

Growth: 4.8

Quality: 2.8

Yield: 3.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.14%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.78%

Affinity Bancshares, Inc. - US00832E1038

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AFBI

1.c. Company Highlights

Higher Growth

Strong Momentum

Lower Yield

Expensive

Fairly Valued

Average Yield

Medium Volatility

Average Quality

Weak Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Savings and Loan

Expected Growth: 4.5%

7. Detailed Products

Commercial Banking

Consumer Banking

Mortgage Banking

Wealth Management

Treasury Management

8. Affinity Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Affinity Bancshares, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.02$

Current Price

20.02$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA