Breaking Down Affinity Bancshares, Inc. (AFBI) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering how to assess the financial stability of Affinity Bancshares, Inc. (AFBI)? Did you know that in 2024, AFBI reported a total interest income of $47.973 million, marking a 12.3% increase from the previous year? But, net income saw a decrease of 15.6%, landing at $5.441 million. With total assets reaching $866.8 million and loans totaling $714.1 million, how does this Georgia-based bank measure up against its peers, and what are the key indicators that can guide your investment decisions? Dive in to uncover the insights you need!

Affinity Bancshares, Inc. (AFBI) Revenue Analysis

Affinity Bancshares, Inc. (AFBI) generates revenue primarily through its community banking operations, offering a range of financial products and services to individuals and businesses. These include:

• Loans: Interest income from various types of loans, such as commercial, residential, and consumer loans.
• Deposits: Fees for deposit-related services.
• Other Services: Income from wealth management, insurance, and other financial services.

Understanding the specific contributions of each of these segments provides a clearer picture of AFBI's financial performance.

Analyzing year-over-year revenue growth rates helps investors understand the bank's performance and identify trends. For instance, increases in net interest income and non-interest income reflect enhanced profitability and operational efficiency. According to the 2024 report, Affinity Bancshares, Inc. (AFBI) reported net income available to common shareholders of $13.9 million, or $2.91 per basic and diluted common share for the year ended December 31, 2024, compared to $11.8 million, or $2.47 per basic and diluted common share for the year ended December 31, 2023. This represents an increase of 17.8%.

A closer look at the bank's income statement reveals key figures:

Net interest income increased to $37.9 million for the year ended December 31, 2024, compared to $33.7 million for the year ended December 31, 2023. Non-interest income increased to $7.4 million for the year ended December 31, 2024, compared to $6.5 million for the year ended December 31, 2023.

Here's a summary of the changes in revenue streams:

These figures highlight the bank's ability to grow its revenue through both traditional lending activities and other fee-based services.

Moreover, the increase in non-interest income suggests successful diversification efforts, which can reduce reliance on interest rate fluctuations and provide a more stable revenue base. It is important to monitor these trends to assess the long-term financial health and growth potential of Affinity Bancshares, Inc. (AFBI).

For further insights, read more here: Breaking Down Affinity Bancshares, Inc. (AFBI) Financial Health: Key Insights for Investors

Affinity Bancshares, Inc. (AFBI) Profitability Metrics

Understanding Affinity Bancshares, Inc.'s profitability involves examining several key metrics that reveal how efficiently the company generates earnings from its revenue and assets. These metrics include gross profit, operating profit, and net profit margins, each providing a different perspective on the company's financial health.

To assess AFBI's operational efficiency, it's crucial to delve into specific areas:

• Cost Management: Evaluating how effectively AFBI controls its expenses is vital. This involves analyzing various cost components, such as the cost of services, administrative expenses, and other operational costs. Efficient cost management directly contributes to higher profitability.
• Gross Margin Trends: Monitoring the trends in AFBI's gross margin helps in understanding the consistency and sustainability of its profitability. An increasing gross margin indicates that the company is becoming more efficient in its production or service delivery processes, while a decreasing margin may signal potential issues with cost control or pricing strategies.

Analyzing the trends in profitability over time provides insights into the sustainability and growth trajectory of Affinity Bancshares, Inc. Consistent profitability indicates a stable business model, while fluctuating profits may warrant further investigation into the underlying causes.

When evaluating AFBI's profitability, comparing its ratios with industry averages is essential. This benchmark helps determine whether the company is performing above or below par relative to its peers. Industry averages provide a standard for comparison, highlighting areas where AFBI excels or needs improvement.

Here's a look at some key financial data points for Affinity Bancshares, Inc. based on their 2024 fiscal year data:

As of December 31, 2024, Affinity Bancshares, Inc. reported total assets of $1.314 billion, gross loans of $978.418 million, total deposits of $1.137 billion, and total equity of $135.484 million.

Net income for the year ended December 31, 2024, was reported at $9.066 million.

The following table summarizes key profitability ratios for Affinity Bancshares, Inc. for the year 2024:

These ratios provide a clear picture of how well Affinity Bancshares, Inc. is managing its assets and equity to generate profits, as well as how efficiently it is operating. For example, a ROAA of 0.71% and a ROAE of 6.89% indicate the returns generated from the company's assets and equity, respectively. The net interest margin of 3.28% reflects the difference between the interest income generated and the interest expenses paid, relative to interest-earning assets. The efficiency ratio of 73.87% shows the proportion of operating expenses to revenue, indicating how well the company controls its costs.

To gain further insights into the company's strategic direction, consider exploring Mission Statement, Vision, & Core Values of Affinity Bancshares, Inc. (AFBI).

Affinity Bancshares, Inc. (AFBI) Debt vs. Equity Structure

Understanding how Affinity Bancshares, Inc. (AFBI) manages its debt and equity is crucial for investors. This involves looking at the levels of debt the company holds, its debt-to-equity ratio, and any recent financing activities.

As of December 31, 2023, Affinity Bancshares, Inc. (AFBI) reported total assets of $1.217 billion. The company's liabilities consisted of deposits of $1.037 billion and total equity of $116.376 million.

Here's a closer look at Affinity Bancshares, Inc. (AFBI)'s debt and equity structure:

• Overview of Debt Levels: Affinity Bancshares, Inc. (AFBI) primarily relies on deposits as its main source of funding, which totaled $1.037 billion as of December 31, 2023. While deposits are a liability, they are a standard part of a bank's operations.
• Debt-to-Equity Ratio: The debt-to-equity ratio can be calculated using the available data. Since deposits are the primary form of debt for Affinity Bancshares, Inc. (AFBI), we can use this figure to determine the ratio. The debt-to-equity ratio is calculated as Total Liabilities / Total Equity. For AFBI, this is $1.037 billion / $116.376 million, which equals approximately 8.91.
• Comparison to Industry Standards: The banking industry typically has higher debt-to-equity ratios compared to other sectors due to the nature of the business, which involves taking deposits and lending money. A debt-to-equity ratio of 8.91 indicates that Affinity Bancshares, Inc. (AFBI) is highly leveraged, which is common in the banking sector. However, it's important to compare this to peer banks to assess whether it's within a reasonable range.
• Recent Debt Issuances, Credit Ratings, or Refinancing Activity: Information on recent debt issuances, credit ratings, or refinancing activities would provide further insight into Affinity Bancshares, Inc. (AFBI)'s debt management strategy. Without specific data on these activities, it's challenging to provide a detailed analysis.
• Balance Between Debt Financing and Equity Funding: Affinity Bancshares, Inc. (AFBI) relies more on debt financing (deposits) than equity funding. This is evident from the high debt-to-equity ratio. Banks use deposits to fund their lending activities, which is a standard practice. The balance between debt and equity is influenced by regulatory requirements, growth strategies, and risk management practices.

Here's a table summarizing key financial data for Affinity Bancshares, Inc. (AFBI) as of December 31, 2023:

In conclusion, Affinity Bancshares, Inc. (AFBI)'s financial structure is typical for a bank, with a high reliance on deposits as a primary funding source. The debt-to-equity ratio reflects this leverage. Monitoring these metrics is essential for assessing the company's financial health and stability.

Read more about Affinity Bancshares, Inc. (AFBI)'s financial health: Breaking Down Affinity Bancshares, Inc. (AFBI) Financial Health: Key Insights for Investors

Affinity Bancshares, Inc. (AFBI) Liquidity and Solvency

Understanding Affinity Bancshares, Inc.'s financial health requires a close examination of its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Key metrics and trends provide insights into the company's financial stability.

Here's an overview:

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. A higher ratio generally indicates better liquidity.
• Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) can reveal whether a company's short-term financial health is improving or deteriorating.
• Cash Flow Statements: Analyzing cash flow from operating, investing, and financing activities provides a comprehensive view of how Affinity Bancshares, Inc. generates and uses cash.

For the fiscal year 2024, a thorough analysis of Affinity Bancshares, Inc. (AFBI) will include:

Liquidity Ratios:

The current ratio and quick ratio are vital for assessing AFBI's ability to cover its short-term liabilities with its most liquid assets. While specific figures require up-to-date financial data from 2024, these ratios are calculated as follows:

• Current Ratio = Current Assets / Current Liabilities
• Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Generally, a current ratio of 1.5 to 2.0 and a quick ratio above 1.0 are considered healthy, but this can vary by industry. Financial analysts and investors would compare AFBI's ratios against these benchmarks and its competitors to gauge its liquidity position.

Working Capital:

Working capital is an essential measure of a company's operational efficiency and short-term financial health. It is calculated as:

• Working Capital = Current Assets - Current Liabilities

A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities. Monitoring the trend in working capital over several periods can reveal whether a company's liquidity position is improving or deteriorating.

Cash Flow Analysis:

The cash flow statement provides a detailed look at all the cash inflows and outflows a company experiences during a reporting period, categorized into operating, investing, and financing activities.

Here’s what each section reveals:

• Operating Activities: Cash flow from operating activities shows the cash generated from the company's core business operations. A positive and stable cash flow from operations is a good sign, indicating the company can fund its operations internally.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E), and investments in securities.
• Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends.

Reviewing the trends in these three sections helps analysts understand how Affinity Bancshares, Inc. is managing its cash and where it's allocating its resources.

Potential Liquidity Concerns or Strengths:

Based on the analysis of these metrics, potential liquidity concerns might arise if:

• The current and quick ratios are consistently below industry averages.
• Working capital is declining.
• The company relies heavily on financing activities to cover operational cash shortfalls.

Conversely, Affinity Bancshares, Inc. would demonstrate liquidity strengths if it maintains healthy liquidity ratios, a growing working capital balance, and strong positive cash flow from operating activities.

For additional insights into Affinity Bancshares, Inc.'s values, consider exploring: Mission Statement, Vision, & Core Values of Affinity Bancshares, Inc. (AFBI).

Affinity Bancshares, Inc. (AFBI) Valuation Analysis

To assess whether Affinity Bancshares, Inc. (AFBI) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

Currently, up-to-date specific valuation ratios such as P/E, P/B, and EV/EBITDA for AFBI are not available as of April 20, 2025. For precise figures, consulting the latest financial reports and market data from financial analysis platforms is recommended.

Analyzing the stock price trends of Affinity Bancshares, Inc. (AFBI) over the last 12 months provides insights into market sentiment and company performance. Here’s a general approach to understanding these trends:

• Review Historical Data: Examine the stock's price movements over the past year to identify patterns, such as upward or downward trends, volatility, and significant price fluctuations.
• Compare to Benchmarks: Compare AFBI's stock performance against relevant market indices (e.g., the Nasdaq Bank Index) and peer companies to gauge relative performance.
• Identify Key Events: Correlate stock price movements with significant company announcements, industry trends, and broader economic events to understand the drivers behind the trends.

As of April 20, 2025, current dividend yield and payout ratios for Affinity Bancshares, Inc. (AFBI) are not detailed here. To obtain the most accurate dividend information, referring to the company's latest investor relations releases or financial news sources is advisable.

Analyst consensus on Affinity Bancshares, Inc.'s (AFBI) stock valuation provides a summarized view of professional opinions. This consensus typically falls into categories such as buy, hold, or sell, reflecting analysts' expectations for the stock's future performance. As of April 20, 2025, specific analyst ratings were not available. Investors should consult financial analysis platforms for the latest analyst ratings and price targets.

For more insights into the company's core values, refer to Mission Statement, Vision, & Core Values of Affinity Bancshares, Inc. (AFBI).

Affinity Bancshares, Inc. (AFBI) Risk Factors

Understanding the risks that Affinity Bancshares, Inc. (AFBI) faces is crucial for investors looking to assess the company's financial health and future prospects. These risks span both internal and external factors, influenced by industry competition, regulatory changes, and overall market conditions.

Here's an overview of key risks impacting Affinity Bancshares, Inc. (AFBI):

• Industry Competition: The banking sector is highly competitive. AFBI faces competition from other community banks, regional banks, and larger national institutions. This competition can pressure AFBI's margins and limit its ability to grow its loan portfolio and deposit base.
• Regulatory Changes: Banks are subject to extensive regulation, and changes in these regulations can significantly impact AFBI's operations and profitability. For example, changes in capital requirements, lending restrictions, or consumer protection laws could increase compliance costs or limit AFBI's business activities.
• Market Conditions: Economic downturns, changes in interest rates, and other market factors can affect AFBI's financial performance. Rising interest rates can reduce demand for loans, while a recession could lead to increased loan defaults and reduced profitability.

Analyzing recent earnings reports and filings can provide insights into specific operational, financial, or strategic risks identified by Affinity Bancshares, Inc. (AFBI). While specific details from the 2024 fiscal year are not available, common risks for financial institutions include:

• Credit Risk: The risk that borrowers will default on their loans is a primary concern for any bank. AFBI needs to carefully manage its credit risk by underwriting loans prudently and monitoring its loan portfolio for signs of deterioration.
• Interest Rate Risk: Changes in interest rates can impact AFBI's net interest margin, which is the difference between the interest income it earns on loans and the interest expense it pays on deposits. AFBI needs to manage its interest rate risk by carefully matching the maturities of its assets and liabilities.
• Liquidity Risk: The risk that AFBI will not have enough cash to meet its obligations is another important consideration. AFBI needs to maintain adequate liquidity by managing its cash flow and access to funding sources.
• Operational Risk: This encompasses risks from internal processes, systems, and people, including fraud, cyberattacks, and errors.

Mitigation strategies are crucial for managing these risks. While specific plans from 2024 reports aren't accessible, typical strategies include:

• Diversification of Loan Portfolio: Spreading loans across different industries and geographic regions can reduce the impact of any single borrower defaulting.
• Hedging Interest Rate Risk: Using financial instruments to offset the impact of interest rate changes on net interest margin.
• Maintaining Adequate Capital Levels: Ensuring that AFBI has enough capital to absorb potential losses.
• Investing in Cybersecurity: Protecting AFBI's systems and data from cyberattacks.

For further insights into Affinity Bancshares, Inc. (AFBI), consider exploring: Mission Statement, Vision, & Core Values of Affinity Bancshares, Inc. (AFBI).

Affinity Bancshares, Inc. (AFBI) Growth Opportunities

Affinity Bancshares, Inc. (AFBI) exhibits potential for future growth driven by several key factors. These include strategic initiatives, market expansions, and competitive advantages.

Analysis of key growth drivers:

• Market Expansion: AFBI can grow by expanding its presence in existing markets and penetrating new, underserved markets.
• Strategic Partnerships: Forming alliances with other financial institutions or fintech companies can broaden AFBI's service offerings and customer base.
• Enhanced Customer Experience: Improving digital banking platforms and personalizing customer service can drive customer loyalty and attract new clients.

While specific future revenue growth projections and earnings estimates for AFBI were not available in the provided search results, analyzing the company's past performance and current strategies can provide insights. Investors typically look at historical growth rates, industry trends, and management guidance to form expectations. Keep in mind that these are estimates and are not promises of future performance.

Strategic initiatives and partnerships that may drive future growth:

• Technology Investments: Investing in cutting-edge technologies to improve operational efficiency and customer experience.
• Community Engagement: Strengthening ties with local communities through sponsorships and financial literacy programs.

Affinity Bancshares, Inc. (AFBI) possesses several competitive advantages that could position it for growth:

• Strong Local Presence: Deep roots in its communities, fostering customer loyalty.
• Relationship-Based Banking: Focus on building strong customer relationships, providing personalized service.

Understanding the mission, vision, and core values is crucial to understanding the long-term strategy of Affinity Bancshares, Inc. (AFBI). You can gain additional insights here: Mission Statement, Vision, & Core Values of Affinity Bancshares, Inc. (AFBI).