Affinity Bancshares (AFBI) AI Stock Analysis

• Market Cap: $124.28M
• Dividend Yield: N/A
• Average Volume (3M): 3.44K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.08
• Revenue Growth: 5.18%
• EPS Growth: 36.12%
• Country: US
• Employees: 88
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.34
• Shares Outstanding: 6,167,602
• 10 Day Avg. Volume: 3,658
• 30 Day Avg. Volume: 3,438
• PEG Ratio: -1.38
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 17.62
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 16.10
• Enterprise Value/Ebitda: 11.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $21.50 ▲(8.86% Upside)

The score is driven primarily by solid profitability and conservative leverage, tempered by declining revenue growth and cash flow conversion concerns. Technical indicators are neutral-to-soft, valuation is mid-range at a 17.269 P/E with no dividend yield data, and the new ~5% buyback authorization provides a modest positive catalyst.

Positive Factors

Healthy Profitability

Sustained TTM net and EBIT margins indicate durable core profitability for the lending business. Strong margins provide a buffer for credit losses, enable reinvestment in origination and services, and support long-term capital retention and shareholder returns.

Conservative Leverage

A low debt-to-equity ratio reflects prudent balance-sheet management for a regional bank. Conservative leverage improves resilience to rate or credit shocks, preserves regulatory capital flexibility, and provides capacity to expand lending or absorb losses over multiple quarters.

Share Repurchase Authorization

A formal buyback authorization establishes a structural capital-allocation tool. Over time disciplined repurchases can enhance per-share metrics, signal management confidence, and offer a flexible way to return excess capital without committing to recurring payouts.

Negative Factors

Declining Revenue Growth

A slowing top-line growth trend undermines scalability of the franchise and pressures future earnings expansion. For a regional bank, persistent revenue decline can signal weaker loan origination or fee income, limiting ability to grow net interest margin and reinvest in the business.

Weak Cash Conversion

Negative FCF growth and low operating cash flow to net income indicate earnings are not reliably converting to cash. This weakens the bank's ability to fund lending, reserves, or buybacks internally and could force reliance on external funding under stress, reducing resilience.

Compressing Margins / Capital Ratio

A notable fall in gross profit margin alongside a declining equity ratio erodes profitability headroom and capital cushions. Over time this increases sensitivity to credit losses, constrains strategic investments, and reduces flexibility for dividends or buybacks if the trend continues.

Affinity Bancshares Business Overview & Revenue Model

Company Description

Affinity Bancshares (AFBI) is a financial holding company based in the United States that primarily operates in the banking sector. It provides a range of banking services, including personal and commercial loans, mortgage lending, and deposit products such as savings and checking accounts. The company aims to serve both individual consumers and businesses, focusing on building long-term relationships with its clients through tailored financial solutions.

How the Company Makes Money

Affinity Bancshares generates revenue through several key streams. Primarily, the company earns interest income from the loans it issues to customers, including mortgages, personal loans, and commercial loans. Additionally, AFBI receives income from fees associated with various banking services, such as account maintenance fees, transaction fees, and service charges. The bank may also earn revenue through investment activities, including interest and dividends from securities it holds. Strategic partnerships with local businesses and community organizations can enhance its customer base and contribute to its overall earnings. The company’s efficiency in managing its interest rate spread—the difference between interest earned on loans and interest paid on deposits—is also a critical factor in its profitability.

Affinity Bancshares Financial Statement Overview

Summary

Affinity Bancshares demonstrates strong profitability and prudent debt management, with a healthy net profit margin and low debt-to-equity ratio. However, declining revenue growth and cash flow challenges pose potential risks.

Income Statement

Affinity Bancshares shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy net profit margin of 15.02% and an EBIT margin of 19.43%, indicating strong profitability. The gross profit margin has decreased significantly over the years, which could impact future profitability if not addressed.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.43 in the most recent annual report, indicating prudent financial management. Return on equity has shown improvement, reaching 6.03% in the TTM period, suggesting efficient use of equity. However, the equity ratio has slightly decreased, which could be a potential risk if the trend continues.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains strong at 96.06%, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.23M	49.99M	45.17M	34.54M	35.13M	32.48M
Gross Profit	7.37M	30.61M	29.71M	31.45M	30.88M	25.01M
EBITDA	10.59M	7.72M	9.12M	9.66M	10.59M	4.58M
Net Income	7.55M	5.44M	6.45M	7.13M	7.57M	3.09M
Balance Sheet
Total Assets	925.22M	866.82M	843.26M	791.28M	788.09M	850.63M
Cash, Cash Equivalents and Short-Term Investments	50.76M	41.42M	98.59M	72.52M	160.33M	202.26M
Total Debt	54.00M	60.40M	40.00M	10.03M	48.99M	24.12M
Total Liabilities	799.82M	737.70M	721.74M	674.18M	667.12M	769.84M
Stockholders Equity	125.41M	129.12M	121.52M	117.10M	120.97M	80.78M
Cash Flow
Free Cash Flow	10.22M	6.37M	7.34M	6.17M	11.02M	920.00K
Operating Cash Flow	10.24M	6.79M	7.87M	7.57M	11.85M	1.37M
Investing Cash Flow	-15.66M	-33.24M	-28.14M	-93.72M	-9.62M	-110.38M
Financing Cash Flow	37.96M	17.85M	43.97M	701.00K	-68.70M	239.15M

Affinity Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFBI, the sentiment is Neutral. The current price of 19.75 is below the 20-day moving average (MA) of 20.75, below the 50-day MA of 19.82, and above the 200-day MA of 19.02, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AFBI.

Affinity Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNWD	73 Outperform	$149.93M	18.16	5.05%	0.97%	-7.20%	-29.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$126.99M	43.82	1.57%	0.88%	9.43%	166.36%
AFBI	64 Neutral	$124.28M	17.63	5.95%	―	5.18%	36.12%
SFBC	63 Neutral	$112.14M	16.56	6.52%	1.75%	2.85%	73.41%
RVSB	61 Neutral	$104.37M	22.45	2.90%	1.51%	8.77%	369.81%
PNBK	55 Neutral	$190.89M	-0.61	-35.87%	―	-11.99%	63.64%

Affinity Bancshares Corporate Events

Affinity Bancshares Authorizes New Common Stock Repurchase Program

On January 7, 2026, Affinity Bancshares, Inc. announced that its board had adopted a stock repurchase program authorizing the company to buy back up to 304,524 shares of its common stock, representing about 5% of its outstanding shares. The program allows repurchases through open market and private transactions, including block trades and potential Rule 10b5-1 trading plans, with purchases made at management’s discretion based on market conditions, share price, alternative capital uses and financial performance, and it may be suspended, modified or terminated at any time, signaling a potential effort to enhance shareholder value and optimize capital deployment without committing to a fixed volume of buybacks.

The most recent analyst rating on (AFBI) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on Affinity Bancshares stock, see the AFBI Stock Forecast page.

Affinity Bancshares Appoints Teak Shore to Board

On December 18, 2025, Affinity Bancshares, Inc. and its wholly owned subsidiary Affinity Bank appointed Teak Shore to their respective boards of directors, expanding board membership without immediately assigning him to any board committees. The company stated there were no special arrangements or related-party transactions connected to Shore’s appointment, and he will receive the same compensation and eligibility for equity awards as other non-employee directors, underscoring routine corporate governance practices and alignment with existing director compensation structures.

The most recent analyst rating on (AFBI) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on Affinity Bancshares stock, see the AFBI Stock Forecast page.