Affinity Bancshares Inc, the holding company for Affinity Bank, delivered a standout Q4 2024 on a revenue basis with a substantial year-over-year uplift and solid profitability. Revenue for Q4 2024 was $12.387 million, up 68.3% from $7.362 million in Q4 2023, while gross margin remained strong at approximately 59.5% (gross profit of $7.369 million). Operating income was $1.601 million with an 12.9% operating margin, and net income totaled $1.345 million, yielding a net margin of roughly 10.9% and basic/diluted EPS of $0.21/$0.20. EBITDA reached about $1.826 million. These quarterly results reflect a period of elevated earnings power, anticipated to be supported by a mix of deposit growth and disciplined expense management, even as the quarter experienced a modest sequential revenue decline (QoQ revenue -3.7% versus Q3 2024).
On the balance sheet, AFBI carried total assets of $866.8 million and a pronounced investment securities position, with long-term investments totaling $775.6 million. Cash and cash equivalents stood at $41.4 million. Total liabilities were $737.7 million and stockholders’ equity was $129.1 million, with debt of $60.4 million and net debt of roughly $17.4 million. The balance sheet exhibits substantial non-cash assets (intangible assets of $18.2 million) and a low reported debt ratio of about 6.8%, but liquidity metrics appear atypical for a bank holding company (current ratio reported at 0.0615), which warrants note from a bank-specific lens rather than conventional corporate liquidity metrics.
From a profitability and cash flow perspective, AFBI generated operating cash flow of $0.865 million and free cash flow of $0.842 million in the quarter, with modest capital expenditure ($23 thousand) and positive quarterly free cash flow to equity. The company’s price indicators show a valuation at or near book value (P/B approximately 0.87) and a trailing P/E around 20.9, suggesting the market embeds a stable earnings profile and some growth expectations given the earnings acceleration versus the prior year. While ROE stood at about 1.0% and ROA at roughly 0.16%, the equity base is relatively modest for the scale of assets and investment holdings. Overall, AFBI presents a solid near-term earnings base with upside tied to deposit growth, portfolio mix optimization, and continued cost discipline, though it carries balance sheet and liquidity nuances typical of smaller regional banks.