Affinity Bancshares, Inc. New Standards Disclosure

The following is a summary of recent authoritative pronouncements that could or have impacted the accounting, reporting and/or disclosure of financial information by the Company.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures ("ASU 2023-09"). This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company adopted this standard effective January 1, 2025 on a prospective basis. The adoption did not have a material impact on the Company's financial position, results of operations or cash flows, but resulted in enhanced, disaggregated disclosures in the income tax footnote.

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU")

2024-03, Income Statement—Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which requires enhanced disclosures in the notes to the financial statements about the nature of certain income statement expenses. The amendments require entities to disaggregate specific expense categories, such as employee compensation, depreciation, amortization, and other significant expenses, while not changing existing income statement presentation or recognition and measurement guidance. For entities other than public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within fiscal years beginning after December 15, 2028. Early adoption is permitted. Management is currently evaluating the impact of this guidance on the Bank’s financial statement disclosures.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures—Clarifying the Effective Date, which clarifies the effective date of previously issued guidance related to enhanced disclosures of certain income statement expense categories. The amendments do not change existing recognition or measurement guidance and primarily affect note disclosures. The guidance is effective for entities other than public business entities for annual reporting periods beginning after December 15, 2027, and interim periods within fiscal years beginning after December 15, 2028. Early adoption is permitted. Management is currently evaluating the impact of the amendments on the Company’s financial statement disclosures.

In May 2025, the FASB issued ASU 2025-04, Revenue from Contracts with Customers (Topic 606) and Compensation—Stock Compensation (Topic 718): Clarifications to Share-Based Consideration Payable to a Customer. The amendments clarify the accounting for share-based payment awards issued as consideration to customers, including revisions to the definition of a performance condition and removal of the forfeiture policy election for such awards. The guidance also clarifies that the variable consideration constraint does not apply to share-based consideration payable to a customer. The amendments are effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. Management does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the scope and application of interim reporting requirements and consolidates existing interim disclosure guidance within Topic 270. The amendments introduce a disclosure principle requiring entities to disclose material events and changes since the end of the most recent annual reporting period and provide guidance on the form and content of interim financial statements. For entities other than public business entities, the amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.