Liquidity management has been highly tactical, evidenced by a massive reduction in the investment securities portfolio from $815.4M in 2024Q2 to $37.3M by 2026Q1 to support operational needs.
| Cash from Operations | 14.13M | 11.64M | 6.79M | 7.87M | 7.57M | 11.85M | 1.37M | 1.64M | 2.33M | 3.1M | 1.93M | 2.87M |
| Operating CF Growth % | 791.07% | 71.4% | -13.72% | 3.99% | -36.13% | 764.41% | -16.2% | -29.69% | -25.03% | 61.16% | -32.87% | - |
| Net Income | 8.79M | 8.33M | 5.44M | 6.45M | 7.13M | 7.57M | 3.09M | 355K | 449K | 1.36M | 1.16M | 1.61M |
| Depreciation & Amortization | 718K | 720K | 738K | 734K | 338K | 674K | 697K | 885K | 702K | 444K | 347K | -302K |
| Deferred Taxes | 120K | 60K | 162K | 399K | 280K | -227K | -73K | 145K | 1.44M | 0 | 0 | 0 |
| Other Non-Cash Items | 1.94M | 1.3M | 691K | -58K | 775K | 2.03M | 1.95M | -140K | 683K | 438K | 329K | 1.16M |
| Working Capital Changes | 1.77M | 331K | -1.38M | -742K | -1.65M | 1.39M | -4.59M | 113K | -1.42M | 616K | 130K | 92K |
| Cash from Investing | 1.25M | -1.24M | -33.24M | -28.14M | -93.72M | -9.62M | -110.38M | -1.38M | -26.69M | -35.9M | -19.74M | 4.06M |
| Purchase of Investments | -3.71M | -7.63M | -741K | -19.98M | -38.23M | -30.79M | -15.29M | -232K | -10.32M | -15.12M | 0 | -2M |
| Sale/Maturity of Investments | 30.02M | 35.31M | 19.67M | 6.2M | 6.86M | 4.49M | 11.81M | 19.49M | 2.19M | 7.37M | 0 | 1.5M |
| Net Investment Activity | 26.31M | 27.67M | 18.93M | -13.79M | -31.37M | -26.3M | -3.49M | 19.26M | -8.12M | -7.75M | 0 | -500K |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -22.75M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -24.47M | -28.2M | -51.75M | -13.82M | -60.96M | 17.51M | -83.7M | -20.26M | -10.49M | -23.82M | -19.36M | 4.79M |
| Cash from Financing | -731K | 2.02M | 17.85M | 43.97M | 701K | -68.7M | 239.15M | 10.83M | 29.1M | 43.05M | 5.01M | -2.58M |
| Dividends Paid | 0 | -8.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -4.78M | -5.94M | 0 | -3.28M | -5.71M | 0 | 0 | -600K | -668K | 0 | 0 | 0 |
| Stock Issued | 0 | 59K | 0 | 0 | 0 | 37.11M | 0 | 0 | 0 | 33.09M | 0 | 0 |
| Net Stock Activity | -4.78M | -5.88M | 0 | -3.28M | -5.71M | 37.11M | 0 | -600K | -668K | 33.09M | 0 | 0 |
| Debt Issuance (Net) | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 0 | 0 | 0 |
| Other Financing | 4.04M | 21.52M | -962K | 17.27M | 44.41M | -30M | 148.34M | 19M | 21.77M | 9.96M | 5.01M | -2.58M |
| Net Change in Cash | 14.65M | 12.43M | -8.6M | 23.7M | -85.45M | -66.48M | 130.14M | 11.09M | 4.85M | 10.25M | -12.8M | 4.35M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 53.85M | 41.42M | 50.03M | 26.32M | 111.78M | 178.25M | 48.12M | 37.03M | 35.94M | 25.69M | 38.49M | 34.14M |
| Cash at End | 89.35M | 53.85M | 41.42M | 50.02M | 26.32M | 111.78M | 178.25M | 48.12M | 40.8M | 35.94M | 25.69M | 38.49M |
| Interest Paid | 9.79M | 19.24M | 18.91M | 14.49M | 3.1M | 3.38M | 5.25M | 2.26M | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 1.39M | 2.07M | 2.16M | 2.09M | 2.15M | 2.52M | 590K | 90K | 0 | 0 | 0 | 0 |
| Free Cash Flow | 13.82M | 11.22M | 6.37M | 7.34M | 6.17M | 11.02M | 920K | 1.26M | -5.96M | -1.24M | 1.54M | 2.64M |
| FCF Growth % | 95.88% | 76.13% | -13.28% | 18.93% | -43.97% | 1097.93% | -26.93% | 121.12% | -381.5% | -180.13% | -41.43% | - |
Acquisition integration and concentration
According to the bank's quarterly cash flow statements, Affinity Bancshares has consistently generated positive operating cash flow, with the OCF/NI ratio peaking at 2.36 in 2024Q3, suggesting that the bank's core earnings are effectively converted into liquidity to support its regulatory capital requirements.
The bank's ability to maintain positive operating cash flow relative to net income indicates a stable internal capital generation process. This capacity to retain earnings has likely provided the necessary buffer to navigate the costs associated with its localized lending model without requiring external equity dilution.
Based on reported financial data, the bank has utilized its investment securities portfolio as a tactical liquidity tool, evidenced by the significant $26.7M inflow from asset sales in 2025Q4, which contrasts with the more modest reinvestment activity observed in other periods.
The intermittent nature of these securities sales suggests that management actively manages the portfolio to offset fluctuations in loan demand or deposit outflows. Investors should monitor whether these sales represent a strategic rebalancing of duration or a reactive measure to satisfy short-term liquidity needs.
As indicated by the historical cash flow records, Affinity Bancshares has maintained a disciplined approach to capital return, with a notable $8.8M dividend payment in 2025Q1 and sporadic share buybacks, reflecting a cautious stance on returning excess capital to shareholders prior to the merger.
The lack of a consistent dividend policy suggests that management prioritized capital preservation and organic growth over systematic shareholder distributions. The recent buyback activity appears to have been opportunistic rather than a long-term commitment to returning capital, consistent with the bank's conservative financial profile.
Based on an analysis of the provided cash flow statements, the bank's reliance on debt adjustments, such as the $1M long-term debt fluctuations, masks the underlying volatility in credit provisioning, which reached a high of $225K in 2024Q4, potentially obscuring true asset quality trends.
The cash flow statement fails to capture the full extent of credit risk, as the provision for loan losses is a non-cash accounting entry that does not reflect the actual cash impact of potential defaults. The reliance on debt issuance to manage liquidity suggests that the bank's internal cash generation may be insufficient to cover large-scale loan losses or sudden deposit withdrawals.
Quick answers to the most common questions about buying AFBI stock.
Affinity Bancshares, Inc. (AFBI) generated $11.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Affinity Bancshares, Inc. (AFBI) generated $11.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Affinity Bancshares, Inc. (AFBI) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Affinity Bancshares, Inc. (AFBI) returned $8.8M to shareholders via cash dividends and spent $5.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.