Affinity Bancshares (AFBI) is a Georgia-based savings institution with total assets of $924.7M at March 31, 2026. Under a liquidation lens, the recovery posture is modestly positive relative to stated book equity of $129.5M, but the structural asymmetry between haircutted assets and face-value liabilities compresses that figure materially. Cash and equivalents of $89.4M recover at 100%. The loan portfolio (gross $751.8M, net $742.9M after $8.9M ACL) dominates the asset stack at roughly 80% of total assets; applying a standard 90-95% recovery haircut to net loans yields approximately $668-$706M. AFS securities of $37.3M carry an embedded unrealized loss of $5.2M; HTM securities are not separately tagged in XBRL but are discussed in MD&A. PP&E net is minimal at $2.7M. Goodwill of $17.2M and finite-lived intangibles of $0.8M net ($1.9M gross less $1.1M accumulated amortization) recover at zero under the liquidation lens, reducing asset recovery by approximately $18M relative to book. BOLI of $17.3M has uncertain but generally near-par liquidation value; the filing does not separately disclose surrender value. On the liability side, total deposits of $734.3M and FHLB advances of $54.0M are held at face. The $544K allowance for unfunded commitments and $6.9M accrued liabilities are also face-value obligations. Total liabilities of $795.2M against haircutted assets of approximately $875-$913M (pre-intangible write-off) yields residual equity in a range that is positive but well below the $129.5M book value. The $17.9M intangibles write-off and AFS mark-to-market gap narrow the cushion further. Compared to the prior filing (10-K for December 31, 2025), the primary balance-sheet change is a $39.3M increase in deposits driving a $35.5M net increase in cash, which improves the liquid asset base. Loan growth of approximately $10M (average balance up $33M YoY per MD&A) adds modestly to recoverable assets. The ACL declined slightly from $9.0M to $8.9M while total loans grew, reducing coverage from 1.21% to 1.18%. No material new borrowings; FHLB advances stable at $54.0M. AOCI remains negative at ($3.8M), consistent with the AFS unrealized loss position. Regulatory capital ratios are well above minimums (CET1 12.30%, Total Capital 13.46%), providing buffer against any unexpected credit deterioration. The filing does not separately disclose BOLI surrender values or operating lease ROU asset/liability balances in XBRL, limiting precision on those items.
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