Affinity Bancshares, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Affinity Bancshares, Inc. has filed its 2023 10-K report detailing financial performance and segment data.</b>

AI Summary

Affinity Bancshares, Inc. (AFBI) filed a Annual Report (10-K) with the SEC on March 21, 2024. Affinity Bancshares, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes data related to various financial instruments and segments, such as Commercial Portfolio, Residential Portfolio, and Construction/Land/Acquisition/Development. Specific financial metrics and disclosures are provided for periods including 2021, 2022, and 2023. The report details information on allowance for credit losses and financing receivables, including past due categories. It also references executive compensation plans and equity incentive plans.

Why It Matters

For investors and stakeholders tracking Affinity Bancshares, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Affinity Bancshares' financial health and operational segments for the fiscal year 2023, crucial for investors to assess performance and risks. The detailed segment information and risk factor disclosures are essential for understanding the company's lending activities, credit quality, and potential challenges in the current economic environment.

Risk Assessment

Risk Level: medium — Affinity Bancshares, Inc. shows moderate risk based on this filing. The company's financial performance is subject to risks inherent in the banking sector, including credit risk associated with its loan portfolios, as indicated by the detailed reporting on past-due financing receivables and special mention assets.

Analyst Insight

Investors should review the detailed segment performance and risk factor disclosures in the 10-K to understand the company's exposure to credit risk and its strategies for managing its loan portfolio.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-21 — Filing Date (Date of filing)
• 104 — Public Document Count (Number of documents in the filing)
• 001-39914 — SEC File Number (SEC registration number)

Key Players & Entities

• Affinity Bancshares, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• 10-K (document) — Filing type
• 0001823406 (company) — Central Index Key
• 6036 (industry) — Standard Industrial Classification
• MD (location) — State of incorporation
• COVINGTON (location) — Business address city
• GA (location) — Business address state

FAQ

Risk Factors

• Allowance for Credit Losses [medium — financial]: The company reports on its allowance for credit losses, a critical component for assessing potential loan defaults and the adequacy of its reserves.
• Financing Receivables Past Due [medium — financial]: Detailed reporting on financing receivables that are 30-59 days, 60-89 days, and equal to or greater than 90 days past due indicates potential credit quality issues.
• Special Mention Assets [medium — financial]: The classification of assets as 'Special Mention' suggests areas of concern that may require closer monitoring and could potentially lead to future losses.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the 10-K.
• 2024-03-21: Filing Date — Indicates when the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share AFBI The NASDAQ Stock Marke
• $11.69 — he closing price of the common stock of $11.69 as of June 30, 2023, was $ 63.4 million
• $843.3 m — ty Bancshares, Inc. had total assets of $843.3 million, loans of $659.9 million, deposit
• $659.9 m — otal assets of $843.3 million, loans of $659.9 million, deposits of $674.4 million, and
• $674.4 m — n, loans of $659.9 million, deposits of $674.4 million, and stockholders' equity of $121
• $121.5 million — .4 million, and stockholders' equity of $121.5 million. The executive offices of Affinity Ba
• $176.1 m — h loans to the dental industry totaling $176.1 million, or 26.7% of our loan portfolio,
• $911,000 — ans held for sale, no loans in process, $911,000 of deferred loan fees, and $2.8 million
• $2.8 million — ss, $911,000 of deferred loan fees, and $2.8 million in indirect auto dealer reserve costs.
• $140.4 m — 3, commercial and industrial loans were $140.4 million, or 21.3% of our gross loans. As
• $109.8 million — s loans to dental professionals totaled $109.8 million at December 31, 2023 . The significant
• $250,000 — e loans with principal balances between $250,000 and $750,000, although we will originat
• $750,000 — principal balances between $250,000 and $750,000, although we will originate dental prac
• $3.9 m — trial loan at December 31, 2023 totaled $3.9 million, was originated in 2020 and is se
• $302.8 million — usinesses. At December 31, 2023, we had $302.8 million in commercial real estate loans, repres

Filing Documents

• afbi-20231231.htm (10-K) — 4288KB
• afbi-ex21.htm (EX-21) — 4KB
• afbi-ex23.htm (EX-23) — 4KB
• afbi-ex31_1.htm (EX-31.1) — 23KB
• afbi-ex31_2.htm (EX-31.2) — 23KB
• afbi-ex32.htm (EX-32) — 11KB
• img259954495_0.jpg (GRAPHIC) — 4KB
• 0000950170-24-034761.txt (&nbsp;) — 19054KB
• afbi-20231231.xsd (EX-101.SCH) — 2069KB
• afbi-20231231_htm.xml (XML) — 4724KB

Business

Business 2 ITEM 1A.

Risk Factors

Risk Factors 23 ITEM 1B. Unresolved Staff Comments 23 ITEM 1C. Cybersecurity 23 ITEM 2.

Properties

Properties 24 ITEM 3.

Legal Proceedings

Legal Proceedings 25 ITEM 4. Mine Safety Disclosures 25 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 ITEM 6. [Reserved] 26 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F- 1 ITEM 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 35 ITEM 9A.

Controls and Procedures

Controls and Procedures 35 ITEM 9B. Other Information 35 ITEM 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 35 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 36 ITEM 11.

Executive Compensation

Executive Compensation 36 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 36 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 37 ITEM 14. Principal Accountant Fees and Services 37 PART IV 37 ITEM 15. Exhibits and Financial Statement Schedules 37 ITEM 16. Form 10-K Summary 38

SIGNATURES

SIGNATURES 39 1 PART I

Forward Looking Statements

Forward Looking Statements This annual report contains forward-looking statements, which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "contemplate," "continue," "potential," "target" and words of similar meaning. These forward-looking statements include, but are not limited to: estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this annual report. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: effects of conditions in the financial markets and economic conditions generally, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding and to continue to fund our operations; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for

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View this 10-K filing on SEC EDGAR