Financial Performance - Affinity Bancshares, Inc. raised gross proceeds of $37.0 million by selling 3,701,509 shares of common stock at $10.00 per share during its second-step stock offering[25]. - As of December 31, 2020, Affinity Bancshares, Inc. had total assets of $850.6 million, loans of $592.3 million, deposits of $640.2 million, and stockholders' equity of $80.8 million[26]. - The company completed the acquisition of ABB Financial Group, Inc. for approximately $40.3 million, with additional redemptions and acquisitions totaling $7.3 million[31]. - The total loan portfolio amounted to $592.3 million as of December 31, 2020, with an allowance for losses of $6.4 million[44]. - The total non-performing loans to total loans ratio was 0.82%, down from 1.02% in the previous year[107]. - The allowance for loan losses increased to $6,361 million at the end of 2020 from $4,134 million at the end of 2019, reflecting a provision for loan losses of $2,000 million[116]. Loan Portfolio - As of December 31, 2020, the company’s dental practice loans totaled $170.8 million, representing 29.2% of its loan portfolio[40]. - Commercial and industrial loans were $155.6 million, accounting for 25.9% of the gross loans, excluding $101.7 million from the Paycheck Protection Program[49]. - The company’s one- to four-family residential real estate loans were $91.8 million, making up 15.3% of the total loan portfolio[44]. - The commercial real estate loans totaled $178.5 million, representing 29.8% of the total loan portfolio, with $142.7 million (23.2%) secured by owner-occupied properties[55]. - The largest commercial real estate loan was $8.0 million, secured by an industrial warehouse under construction, and was performing according to its terms as of December 31, 2020[56]. - The company had $1,292 million in total real estate owned, up from $140 million in the previous year[107]. Regulatory Compliance - Affinity Bancshares, Inc. is subject to comprehensive regulation and examination by the Federal Reserve Board[26]. - Affinity Bank is regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation[154]. - The company is classified as "well capitalized" as of December 31, 2020 and 2019, meeting all required capital ratios[191]. - The Federal Reserve Board regulates Affinity Bancshares, with authority to restrict activities deemed risky to Affinity Bank[201]. Market and Economic Conditions - The population of Newton County, where Affinity Bank operates, grew 14.3% from 2010 to 2021, with a projected growth of 6.1% from 2021 to 2026[33]. - Cobb County's median household income was approximately $88,072, higher than both the Georgia and national medians[34]. - The unemployment rate in Cobb County, Georgia, was 4.3% in January 2021, lower than the national rate of 6.8%[37]. Business Strategy - The company plans to enhance its products and services to meet the evolving needs of customers, focusing on local consumer and small business markets[38]. - The company’s marketing strategies emphasize building relationships with current customers and developing new profitable business relationships[38]. - The company is focusing on experienced, growing small- to medium-sized businesses with solid historical and projected cash flows for its commercial lending[50]. Deposits and Funding - The total deposits amounted to $640.165 million as of December 31, 2020, with a weighted average interest rate of 0.74%[136]. - Noninterest-bearing checking accounts represented 25.12% of total deposits, amounting to $160.819 million[136]. - The company generated deposits through its virtual bank, FitnessBank, which offers higher interest rates based on fitness goals[132]. Loan Management - Affinity Bank had granted short-term deferrals on 737 loans totaling approximately $186.9 million as of December 31, 2020, all of which returned to normal payment status[92]. - The bank's loan approval authority allows the CEO and Chief Credit Officer to approve loans up to $3.5 million combined, while individual loan officers can approve loans up to $300,000[85]. - Affinity Bank's delinquency procedures involve contacting customers at 15 days past due and initiating foreclosure proceedings at 120 days past due[88]. Capital and Borrowing - Affinity Bank had a $303.8 million line of credit with the Federal Home Loan Bank of Atlanta as of December 31, 2020[139]. - Affinity Bank borrowed $100.8 million from the Federal Reserve Bank of Atlanta to fund PPP loans, secured by $101.7 million in originated PPP loans[142]. - The maximum amount of borrowings outstanding during the year was $129.2 million, with an average balance of $20.3 million[143]. Employee and Taxation - Affinity Bancshares, Inc. had 79 full-time employees and four part-time employees as of December 31, 2020[144]. - Affinity Bank is subject to federal and state income taxation and has not been audited for the past five years[145].

[Explanatory Note](index=2&type=section&id=Explanatory%20Note) [Company Formation and Status](index=2&type=section&id=Company%20Formation%20and%20Status) Affinity Bancshares, Inc. was formed as a stock holding company for Newton Federal Bank, pending conversion, with no current operations or assets; financial data is in Exhibit 99.1 - Affinity Bancshares, Inc. was established to be the stock holding company for Newton Federal Bank following a mutual-to-stock conversion[2](index=2&type=chunk) - As of September 30, 2020, the company had not completed its conversion, possessed no assets or liabilities, and had not conducted any business[2](index=2&type=chunk) - The quarterly report of Community First Bancshares, Inc., the active holding company, is provided for informational purposes in Exhibit 99.1[2](index=2&type=chunk) [PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Financial statements are not applicable for Affinity Bancshares, Inc. due to its non-operational status, with relevant financial data in Exhibit 99.1 - Financial Statements are not applicable for Affinity Bancshares, Inc. for this period. Readers are directed to the Explanatory Note[4](index=4&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's Discussion and Analysis is not applicable as the company is a newly formed entity without operations pending conversion, as noted in the Explanatory Note - Management's Discussion and Analysis (MD&A) is not applicable. Readers are directed to the Explanatory Note[4](index=4&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=3&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosures about market risk are not applicable as the company had no assets, liabilities, or operations during the period, as noted in the Explanatory Note - Disclosures about Market Risk are not applicable. Readers are directed to the Explanatory Note[4](index=4&type=chunk) [Item 4. Controls and Procedures](index=3&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal controls over financial reporting during the quarter - Based on an evaluation as of September 30, 2020, the Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective[4](index=4&type=chunk) - No changes in the Company's internal controls over financial reporting occurred during the quarter ended September 30, 2020, that materially affected or are likely to materially affect them[5](index=5&type=chunk) [PART II – OTHER INFORMATION](index=4&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Other Information (Items 1, 1A, 2, 3, 4, 5)](index=4&type=section&id=Items%201%2C%201A%2C%202%2C%203%2C%204%2C%205) Various informational items, including Legal Proceedings, Risk Factors, and Unregistered Sales of Equity Securities, are not applicable due to the company's lack of operations during the period - The following items are not applicable and refer to the Explanatory Note: Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities and Use of Proceeds, and Defaults Upon Senior Securities[6](index=6&type=chunk) - Mine Safety Disclosures are not applicable, and there was no information to report under Item 5 (Other Information)[6](index=6&type=chunk) [Item 6. Exhibits](index=4&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and the Quarterly Report of Community First Bancshares, Inc. (Exhibit 99.1) containing substantive financial data Exhibit List | Exhibit | Description | | :--- | :--- | | 31.1 | Certification of Principal Executive Officer (SOX 302) | | 31.2 | Certification of Principal Financial Officer (SOX 302) | | 32 | Written Statement of CEO and CFO (SOX 906) | | 99.1 | Quarterly Report on Form 10-Q of Community First Bancshares, Inc. for the Quarter Ended September 30, 2020 |