AF Financial Group is the holding company for AF Bank (the Bank). The Bank provides fixed-rate loans for the residents of Ashe, Alleghany and Watauga counties in North Carolina. It is also engaged in non-mortgage lending and offers non-traditional financial services, such as insurance and brokerage products. The Bank focuses on small business commercial lending and consumer lending as a means to increase the yield on its loan portfolio and attract lower-cost deposit accounts. In addition, the Company has offered traditional property and casualty, life and health insurance products through AF Insurance Services, Inc. It also has a broker/dealer subsidiary, AF Brokerage, Inc., which serves Ashe, Alleghany, Wilkes and Watauga counties. AF Brokerage offers uninsured investment products, including fixed-rate and variable annuities and mutual funds.