Fidelity BancShares (N.C.), Inc. ("Fidelity"), the holding company for The Fidelity Bank ("Fidelity Bank"), and Affinity Bancshares, Inc. (NASDAQ:AFBI) ("Affinity"), the holding company for Affinity Bank, today jointly announced the signing of a definitive merger agreement in which Fidelity Bank has agreed to acquire 100% of the common stock of Affinity in an all-cash transaction (the "Merger") valued at approximately $142.8 million. The transaction marks Fidelity's entry into Georgia.

"We are incredibly excited to welcome Affinity Bank's customers and employees into the Fidelity Bank family and to expand our presence into Georgia," said Mary Willis, President & CEO of Fidelity Bank. "This partnership brings together two community‑focused organizations that share a strong commitment to relationship‑driven banking and putting people first. We look forward to building on Affinity Bank's strong local reputation while continuing to serve customers and communities with the same personal attention and care they know and trust."

Affinity President and Chief Executive Officer, Ed Cooney, added, "Fidelity Bank and Affinity Bank share tremendous cultures built over many years of service to our respective customers, employees and communities. Our partnership will enhance Affinity Bank's capabilities and suite of services which will benefit customers as we continue to expand our Georgia presence."

Under the terms of the agreement, each Affinity shareholder will receive $23.00 per share in cash, subject to adjustment based on Affinity's adjusted stockholders' equity at closing. In addition, Affinity stock options will be cashed out based on the in-the-money value of the options. The combined organization will have approximately $5.5 billion in total assets, $4.6 billion in total deposits, and $3.6 billion in loans.