Affinity Bancshares, Inc. (NASDAQ: AFBI)

Affinity Bancshares, Inc., represented by the ticker symbol AFBI, operates as a national bank through its wholly-owned subsidiary, Affinity Bank, National Association. This Maryland corporation was established in 2020, following a mutual-to-stock conversion of Community First Bancshares, Inc. and Community First Bancshares, MHC. Affinity Bank's primary business activities involve accepting deposits from the general public and investing these funds in various loan products, such as commercial real estate loans, commercial and industrial loans, residential real estate loans, construction and land loans, and consumer loans. Additionally, the bank offers a range of deposit accounts and a virtual bank, FitnessBank, which provides higher interest rates based on customers meeting fitness goals.

Affinity Bank's loan portfolio is diversified across various industries, with commercial real estate, commercial and industrial, residential real estate, construction and land, and consumer loans representing significant portions. One of the bank's key strengths lies in its expertise in lending to dentists and dental practices, with loans totaling $176.1 million or 26.7% of its loan portfolio as of December 31, 2023. This specialized team focuses on originating dental practice loans, which are secured by practice assets, including goodwill.

In terms of revenue generation, Affinity Bank offers a variety of loan and deposit products to a diverse customer base. The bank's loan portfolio comprises commercial, residential, construction and land, and consumer loans, with commercial loans including term loans and revolving lines of credit secured by business assets. Residential loans are secured by one- to four-family real estate and underwritten to internal guidelines. Construction and land loans are used to finance the construction or purchase of residential and commercial properties and are secured by the property or land.

Affinity Bank faces competition from other financial institutions, including large money center and regional banks, community banks, and credit unions. Despite this competition, the bank maintains a significant market share of deposits in its primary market area, ranking first in Newton County and 13th among 24 institutions in Cobb County.

Brand names and trade names of Affinity Bank's products and services include Affinity Bank, National Association, FitnessBank, and its various loan and deposit products.

Affinity Bank's risk management program encompasses credit risk, market risk, and operational risk, aiming to identify, assess, and manage potential risks throughout the life of a loan. The bank's credit risk management program evaluates collectability and monitors loans past due 15, 30, and 90 days. Non-accrual loans, accruing loans past due 90 days or more, and real estate owned are classified as non-performing assets. The company's allowance for credit losses is $8,921,000 as of December 31, 2023, representing 1.35% of total loans outstanding.

As a national bank, Affinity Bank is subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation's backup examination authority. The bank complies with various federal and state laws and regulations, including the Community Reinvestment Act and fair lending laws.