Financial Performance - Affinity Bancshares, Inc. raised gross proceeds of 37.0millionbyselling3,701,509sharesofcommonstockat10.00 per share during its second-step stock offering[25]. - As of December 31, 2020, Affinity Bancshares, Inc. had total assets of 850.6million,loansof592.3 million, deposits of 640.2million,andstockholders′equityof80.8 million[26]. - The company completed the acquisition of ABB Financial Group, Inc. for approximately 40.3million,withadditionalredemptionsandacquisitionstotaling7.3 million[31]. - The total loan portfolio amounted to 592.3millionasofDecember31,2020,withanallowanceforlossesof6.4 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 6,361millionattheendof2020from4,134 million at the end of 2019, reflecting a provision for loan losses of 2,000million[116].LoanPortfolio−AsofDecember31,2020,thecompany’sdentalpracticeloanstotaled170.8 million, representing 29.2% of its loan portfolio[40]. - Commercial and industrial loans were 155.6million,accountingfor25.9101.7 million from the Paycheck Protection Program[49]. - The company’s one- to four-family residential real estate loans were 91.8million,makingup15.3178.5 million, representing 29.8% of the total loan portfolio, with 142.7million(23.28.0 million, secured by an industrial warehouse under construction, and was performing according to its terms as of December 31, 2020[56]. - The company had 1,292millionintotalrealestateowned,upfrom140 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,higherthanboththeGeorgiaandnationalmedians[34].−TheunemploymentrateinCobbCounty,Georgia,was4.3640.165 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 160.819million[136].−Thecompanygenerateddepositsthroughitsvirtualbank,FitnessBank,whichoffershigherinterestratesbasedonfitnessgoals[132].LoanManagement−AffinityBankhadgrantedshort−termdeferralson737loanstotalingapproximately186.9 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 3.5millioncombined,whileindividualloanofficerscanapproveloansupto300,000[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 303.8millionlineofcreditwiththeFederalHomeLoanBankofAtlantaasofDecember31,2020[139].−AffinityBankborrowed100.8 million from the Federal Reserve Bank of Atlanta to fund PPP loans, secured by 101.7millioninoriginatedPPPloans[142].−Themaximumamountofborrowingsoutstandingduringtheyearwas129.2 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].
