SAN JOSE, CA / ACCESSWIRE / October 19, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the third quarter of 2022 of $7.0 million, or $0.95 per diluted share, compared to $5.2 million, or $0.76 per diluted share, for the second quarter of 2022 and $3.6 million, or $0.59 per diluted share, for the third quarter of 2021.
Third Quarter 2022 Financial Highlights
- Diluted earnings per share of $0.95, an increase of $0.19, or 100% annualized, compared to the second quarter of 2022, and increased $0.36, or 61%, compared to the third quarter of 2021.
- Return on average assets improved to 1.38%, compared to 1.02% in the second quarter of 2022 and 0.80% in the third quarter of 2021.
- Return on average equity improved to 19.36%, compared to 16.18% in the second quarter of 2022 and 10.45% in the third quarter of 2021.
- Taxable equivalent net interest margin increased to 4.07% in the third quarter of 2022, compared to 3.62% in the second quarter of 2022 and 2.98% in the third quarter of 2021.
- Efficiency ratio improved to 48.00%, compared to 53.43% in the second quarter of 2022 and 61.91% in the third quarter of 2021.
- Loans increased $56 million, or 17% annualized, from June 30, 2022 and increased $319 million, or 30%, from September 30, 2021.
- Annualized net charge-offs to average loans totaled 0.02% and 0.01% for the third quarter and year-to-date 2022, respectively. Non-performing assets to total assets were 0.01% on September 30, 2022, remaining flat from June 30, 2022 and decreased from 0.18% on September 30, 2021.
"Our strong performance for 2022 continued in the third quarter with another quarter of solid loan growth along with expanding profitability metrics," said Mark Mordell, Chairman and Chief Executive Officer. "Although overall deposit balances were down slightly in the third quarter, our growth in new deposits from new client acquisition was solid. Overall balances were down slightly in the third quarter as the strong growth in new deposits was offset by another quarter of elevated decreases in existing client balances due to the dynamic characteristics of many of our clients. We continue to be optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from further increases in the fed funds rate," added Mr. Mordell.
Income Statement
Taxable equivalent net interest income totaled $19.6 million for the third quarter of 2022, an increase of $2.1 million, or 48% annualized, from the second quarter of 2022, and an increase of $7.0 million, or 55%, from the third quarter of 2021. The net interest margin was 4.07% in the third quarter of 2022, an increase of 0.49% compared to the second quarter of 2022, and an increase of 1.09% compared to the third quarter of 2021. The increase in net interest income and net interest margin were primarily driven by higher interest rates and the growth in average balance of loans and investment securities.
The yield on loans in the third quarter of 2022 was 5.50%, an increase of 54 basis points from the second quarter of 2022 and an increase of 66 basis points from the third quarter of 2021. The linked quarter increase was primarily due to increases in the Prime rate. Approximately 53% of loans are Prime-based floating rate loans.
The cost of deposits in the third quarter of 2022 was 0.42%, an increase of 28 basis points from the second quarter of 2022 and an increase of 25 basis points from the third quarter of 2021. The cost of interest-bearing deposits in the third quarter of 2022 was 0.77% compared to 0.26% in the second quarter of 2022 and 0.34% in the third quarter of 2021.
In the third quarter of 2022, we recorded a provision for loan losses of $0.9 million, compared to $1.6 million in the second quarter of 2022 and $0.2 million in the third quarter of 2021. The third quarter provision was primarily attributable to the $56 million increase in loan balances.
Non-interest income was $1.1 million in the third quarter of 2022 compared to $1.2 million in the second quarter of 2022 and $1.0 million in the third quarter of 2021. Service charge income totaled $643,000 in the third quarter of 2022, a decrease of $38,000, or 22% annualized, compared to the second quarter of 2022 and an increase of $91,000, or 16% from the third quarter of 2021.
Non-interest expense totaled $9.9 million in the third quarter of 2022 compared to $10.0 million in the second quarter of 2022 and $8.5 million in the third quarter of 2021. This linked quarter decrease was primarily due to higher capitalized loan origination costs and a decrease in the FDIC regulatory assessment. The number of full-time equivalent employees on September 30, 2022 totaled 134 compared to 130 on June 30, 2022.
Balance Sheet
Total assets were $1.98 billion as of September 30, 2022, compared to $2.01 billion on June 30, 2022 and $1.83 billion at September 30, 2021. Cash and cash equivalents were $37 million on September 30, 2022, compared to $87 million on June 30, 2022 and $413 million on September 30, 2021.
Period end loans on September 30, 2022 totaled $1.39 billion, which represented an increase of $56 million, or 17% annualized, from June 30, 2022, and an increase of $319 million, or 30%, from $1.07 billion at September 30, 2021. Quarterly average loans for the third quarter of 2022 increased $96 million, or 30% annualized, from the second quarter of 2022 and $330 million, or 32%, from the third quarter of 2021.
The allowance for loan losses on September 30, 2022 was $15.5 million, representing an increase of $0.8 million from June 30, 2022. The Allowance for Loan Losses to total loans was 1.11% on September 30, 2022, compared to 1.09% on June 30, 2022. Nonperforming loans to total loans was 0.01% on September 30, 2022 and June 30, 2022.
Period end deposits were $1.81 billion on September 30, 2022 compared to $1.83 billion at June 30, 2022 and an increase of $167 million, or 10%, compared to $1.65 billion at September 30, 2021. Quarterly average deposits for the third quarter of 2022 increased $230 million, or 14%, compared to the third quarter of 2021 and decreased $69 million, or 15% annualized, from the second quarter of 2022.
Noninterest bearing deposits represented 44.3% of total deposits on September 30, 2022, compared to 45.9% on June 30, 2022 and 53.0% at September 30, 2021. The quarterly average loan to deposit ratio was 74.6% in the third quarter of 2022 compared to 66.8% in the second quarter of 2022 and 64.6% in the third quarter of 2021.
Book value per share was $16.58 on September 30, 2022, compared to $18.27 on June 30, 2022, a decrease of $1.69 primarily from an increase in the investment portfolio unrealized loss. Total shareholders' equity totaled $126.5 million on September 30, 2022, a decrease of $12.2 million compared to June 30, 2022. This decrease included an increase in retained earnings of $7.0 million offset by an increase in accumulated other comprehensive loss of $19.6 million.
About Avidbank
Avidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in San Jose, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, fund finance, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.
Forward-Looking Statement:
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.
Contact: Patrick Oakes
Executive Vice President and Chief Financial Officer
408-200-7390
IR@avidbank.com
AVIDBANK HOLDINGS, INC. Selected Financial Data (Unaudited) ($000, except share and per share amounts) |
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| For the nine months ended | |||||||||||||||||||||
| 2022 | 2021 | September 30, | |||||||||||||||||||
| Third Quarter |
Second Quarter |
First Quarter |
Fourth Quarter |
Third Quarter |
2022 | 2021 | |||||||||||||||
| INCOME AND PER SHARE HIGHLIGHTS | |||||||||||||||||||||
Net income |
$ | 7,045 | $ | 5,214 | $ | 4,349 | $ | 2,534 | $ | 3,574 | $ | 16,608 | $ | 9,730 | |||||||
Basic earnings per share |
0.97 | 0.78 | 0.73 | 0.43 | 0.60 | 2.48 | 1.65 | ||||||||||||||
Diluted earnings per share |
0.95 | 0.76 | 0.71 | 0.42 | 0.59 | 2.42 | 1.61 | ||||||||||||||
Book value per share |
16.58 | 18.27 | 19.20 | 21.91 | 21.55 | ||||||||||||||||
PERFORMANCE MEASURES |
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Return on average assets |
1.38 | % | 1.02 | % | 0.83 | % | 0.49 | % | 0.80 | % | 1.07 | % | 0.81 | % | |||||||
Return on average equity |
19.36 | % | 16.18 | % | 12.72 | % | 7.25 | % | 10.45 | % | 16.15 | % | 9.86 | % | |||||||
Taxable equivalent net interest margin |
4.07 | % | 3.62 | % | 3.05 | % | 2.90 | % | 2.98 | % | 3.57 | % | 3.22 | % | |||||||
Efficiency ratio |
48.00 | % | 53.43 | % | 63.72 | % | 58.31 | % | 61.91 | % | 54.43 | % | 65.22 | % | |||||||
Average loans to average deposits |
74.61 | % | 66.88 | % | 62.31 | % | 61.75 | % | 64.60 | % | 67.81 | % | 71.76 | % | |||||||
CAPITAL |
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Tier 1 leverage ratio |
9.22 | % | 8.72 | % | 6.85 | % | 6.89 | % | 7.81 | % | |||||||||||
Common equity tier 1 capital ratio |
10.24 | % | 10.17 | % | 9.09 | % | 8.90 | % | 9.94 | % | |||||||||||
Tier 1 risk-based capital ratio |
10.24 | % | 10.17 | % | 9.09 | % | 8.90 | % | 9.94 | % | |||||||||||
Total risk-based capital ratio |
12.31 | % | 12.25 | % | 11.28 | % | 11.11 | % | 12.44 | % | |||||||||||
Tangible common equity ratio |
6.38 | % | 6.90 | % | 5.75 | % | 6.34 | % | 7.37 | % | |||||||||||
SHARES OUTSTANDING |
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Number of common shares outstanding |
7,629,767 | 7,585,924 | 6,316,573 | 6,256,682 | 6,255,752 | ||||||||||||||||
Average common shares outstanding - basic |
7,274,617 | 6,687,448 | 5,935,948 | 5,904,446 | 5,898,208 | 6,639,567 | 5,885,421 | ||||||||||||||
Average common shares outstanding - diluted |
7,410,062 | 6,821,245 | 6,116,306 | 6,101,778 | 6,072,085 | 6,790,554 | 6,048,748 | ||||||||||||||
ASSET QUALITY |
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Allowance for loan losses (ALLL) to total loans |
1.11 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.19 | % | |||||||||||
ALLL to nonperforming loans |
10057.14 | % | 9211.32 | % | 407.43 | % | 402.40 | % | 388.88 | % | |||||||||||
Nonperforming assets to total assets |
0.01 | % | 0.01 | % | 0.15 | % | 0.15 | % | 0.18 | % | |||||||||||
Nonperforming loans to total loans |
0.01 | % | 0.01 | % | 0.27 | % | 0.27 | % | 0.31 | % | |||||||||||
Net quarterly charge-offs to total loans |
0.01 | % | 0.00 | % | 0.00 | % | 0.25 | % | 0.00 | % | |||||||||||
AVERAGE BALANCES |
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Loans, net of deferred loan fees |
$ | 1,357,090 | $ | 1,261,255 | $ | 1,213,353 | $ | 1,152,641 | $ | 1,026,812 | $ | 1,277,760 | $ | 1,019,253 | |||||||
Investment securities |
505,849 | 487,535 | 436,427 | 287,915 | 231,526 | 476,858 | 200,060 | ||||||||||||||
Total assets |
2,028,320 | 2,060,297 | 2,131,587 | 2,054,545 | 1,771,292 | 2,073,023 | 1,599,088 | ||||||||||||||
Deposits |
1,819,008 | 1,888,494 | 1,947,208 | 1,866,704 | 1,589,384 | 1,884,434 | 1,420,386 | ||||||||||||||
Shareholders' equity |
144,402 | 129,235 | 138,668 | 138,589 | 135,721 | 137,456 | 131,980 | ||||||||||||||
AT PERIOD END |
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Loans, net of deferred loan fees |
$ | 1,392,546 | $ | 1,336,786 | $ | 1,201,934 | $ | 1,223,344 | $ | 1,073,132 | |||||||||||
Investment securities |
468,239 | 507,826 | 468,917 | 380,170 | 276,670 | ||||||||||||||||
Total assets |
1,983,822 | 2,010,256 | 2,110,091 | 2,162,478 | 1,828,021 | ||||||||||||||||
Deposits |
1,814,372 | 1,828,752 | 1,947,278 | 1,979,410 | 1,647,613 | ||||||||||||||||
Shareholders' equity |
126,483 | 138,611 | 121,282 | 137,100 | 134,797 | ||||||||||||||||
Avidbank Holdings, Inc.
Consolidated Balance Sheets (Unaudited)
($000)
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||
Assets |
2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||
Cash and due from banks |
$ | 23,766 | $ | 50,907 | $ | 47,091 | $ | 29,616 | $ | 34,864 | ||||||
Due from Federal Reserve Bank |
13,476 | 35,913 | 320,336 | 463,727 | 378,380 | |||||||||||
Total cash and cash equivalents |
37,242 | 86,820 | 367,427 | 493,343 | 413,244 | |||||||||||
Investment securities - available for sale |
436,535 | 477,646 | 468,917 | 308,170 | 276,670 | |||||||||||
Investment securities - held to maturity |
31,704 | 30,180 | - | - | - | |||||||||||
Total investment securities |
468,239 | 507,826 | 468,917 | 380,170 | 276,670 | |||||||||||
Loans, net of deferred loan fees |
1,392,546 | 1,336,786 | 1,201,934 | 1,223,344 | 1,073,132 | |||||||||||
Allowance for loan losses |
(15,488 | ) | (14,646 | ) | (13,054 | ) | (13,054 | ) | (12,775 | ) | ||||||
Loans, net of allowance for loan losses |
1,377,058 | 1,322,140 | 1,188,880 | 1,210,290 | 1,060,357 | |||||||||||
Bank owned life insurance |
32,522 | 32,303 | 32,087 | 31,875 | 31,663 | |||||||||||
Premises and equipment, net |
4,318 | 4,314 | 4,331 | 4,565 | 4,913 | |||||||||||
Accrued interest receivable & other assets |
64,443 | 56,853 | 48,449 | 42,235 | 41,174 | |||||||||||
Total assets |
$ | 1,983,822 | $ | 2,010,256 | $ | 2,110,091 | $ | 2,162,478 | $ | 1,828,021 | ||||||
Liabilities |
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Non-interest-bearing demand deposits |
$ | 804,383 | $ | 838,666 | $ | 952,035 | $ | 993,156 | $ | 872,972 | ||||||
Interest bearing transaction accounts |
46,852 | 45,179 | 47,711 | 50,674 | 49,722 | |||||||||||
Money market and savings accounts |
890,836 | 848,748 | 812,701 | 845,718 | 614,992 | |||||||||||
Time deposits |
72,301 | 96,159 | 134,831 | 89,862 | 109,927 | |||||||||||
Total deposits |
1,814,372 | 1,828,752 | 1,947,278 | 1,979,410 | 1,647,613 | |||||||||||
Subordinated debt, net |
21,779 | 21,754 | 21,729 | 21,703 | 21,671 | |||||||||||
Other liabilities |
21,188 | 21,139 | 19,802 | 24,265 | 23,940 | |||||||||||
Total liabilities |
1,857,339 | 1,871,645 | 1,988,809 | 2,025,378 | 1,693,224 | |||||||||||
Shareholders' equity |
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Common stock/additional paid-in capital |
101,679 | 101,244 | 72,920 | 72,799 | 72,124 | |||||||||||
Retained earnings |
85,409 | 78,364 | 73,149 | 68,801 | 66,267 | |||||||||||
Accumulated other comprehensive (loss) |
(60,605 | ) | (40,997 | ) | (24,787 | ) | (4,500 | ) | (3,594 | ) | ||||||
Total shareholders' equity |
126,483 | 138,611 | 121,282 | 137,100 | 134,797 | |||||||||||
Total liabilities and shareholders' equity |
$ | 1,983,822 | $ | 2,010,256 | $ | 2,110,091 | $ | 2,162,478 | $ | 1,828,021 | ||||||
Avidbank Holdings, Inc.
Consolidated Statements of Income (Unaudited)
($000, except share and per share amounts)
| Three months ended | Year-to-Date | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Interest and fees on loans |
$ | 18,852 | $ | 15,639 | $ | 12,533 | $ | 48,653 | $ | 36,896 | ||||||||||
Interest on investment securities |
2,794 | 2,477 | 946 | 7,126 | 2,453 | |||||||||||||||
Other interest income |
307 | 356 | 156 | 816 | 263 | |||||||||||||||
Total interest income |
21,954 | 18,472 | 13,635 | 56,595 | 39,612 | |||||||||||||||
Deposit interest expense |
1,948 | 657 | 671 | 3,244 | 1,963 | |||||||||||||||
Other interest expense |
426 | 300 | 310 | 1,026 | 931 | |||||||||||||||
Total interest expense |
2,374 | 957 | 981 | 4,270 | 2,894 | |||||||||||||||
Net interest income |
19,580 | 17,515 | 12,654 | 52,325 | 36,718 | |||||||||||||||
Provision for loan losses |
925 | 1,592 | 217 | 2,517 | 293 | |||||||||||||||
Net interest income after provision for |
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loan losses |
18,655 | 15,923 | 12,437 | 49,808 | 36,425 | |||||||||||||||
Service charges and bank fees |
725 | 761 | 621 | 2,211 | 1,695 | |||||||||||||||
Income from bank owned life insurance |
219 | 215 | 103 | 647 | 238 | |||||||||||||||
Gain/(loss) on sale of assets |
- | - | - | - | 734 | |||||||||||||||
Warrant income |
12 | 64 | - | 162 | 22 | |||||||||||||||
Other income |
120 | 187 | 273 | 395 | 558 | |||||||||||||||
Total non-interest income |
1,076 | 1,227 | 997 | 3,415 | 3,247 | |||||||||||||||
Compensation and benefit expenses |
7,069 | 7,129 | 5,860 | 21,510 | 18,336 | |||||||||||||||
Occupancy and equipment expenses |
946 | 901 | 1,066 | 2,741 | 3,154 | |||||||||||||||
Data processing |
447 | 423 | 413 | 1,281 | 1,254 | |||||||||||||||
Regulatory assessments |
421 | 509 | 284 | 1,595 | 842 | |||||||||||||||
Professional fees |
217 | 192 | 152 | 604 | 483 | |||||||||||||||
Other operating expenses |
813 | 859 | 677 | 2,609 | 1,997 | |||||||||||||||
Total non-interest expense |
9,913 | 10,013 | 8,452 | 30,340 | 26,066 | |||||||||||||||
Income before income taxes |
9,818 | 7,137 | 4,982 | 22,883 | 13,606 | |||||||||||||||
Provision for income taxes |
2,772 | 1,923 | 1,408 | 6,275 | 3,876 | |||||||||||||||
Net income |
$ | 7,046 | $ | 5,214 | $ | 3,574 | $ | 16,609 | $ | 9,730 | ||||||||||
Basic earnings per common share |
$ | 0.97 | $ | 0.78 | $ | 0.60 | $ | 2.48 | $ | 1.65 | ||||||||||
Diluted earnings per common share |
$ | 0.95 | $ | 0.76 | $ | 0.59 | $ | 2.43 | $ | 1.61 | ||||||||||
Average common shares outstanding |
7,274,617 | 6,687,448 | 5,898,208 | 6,639,567 | 5,885,421 | |||||||||||||||
Average common fully diluted shares |
7,410,062 | 6,821,245 | 6,072,085 | 6,790,554 | 6,048,748 | |||||||||||||||
Avidbank Holdings, Inc.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information (Unaudited)
($000)
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| Three months ended | |||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||
| Average Balance |
Yields or Rates |
Interest Income/ Expense |
Average Balance |
Yields or Rates |
Interest Income/ Expense |
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| Assets |
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| Interest earning assets: |
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Loans (1) |
$ | 1,358,934 | 5.50 | % | $ | 18,852 | $ | 1,263,071 | 4.97 | % | $ | 15,638 | |||||||||||
Fed funds sold |
52,626 | 2.31 | % | 307 | 191,861 | 0.74 | % | 353 | |||||||||||||||
Investment securities |
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Taxable investment securities |
475,086 | 2.11 | % | 2,530 | 475,039 | 2.00 | % | 2,364 | |||||||||||||||
Non-taxable investment securities (2) |
30,763 | 4.31 | % | 334 | 12,496 | 4.59 | % | 143 | |||||||||||||||
Total investment securities |
505,849 | 2.25 | % | 2,864 | 487,535 | 2.06 | % | 2,507 | |||||||||||||||
| Total interest-earning assets | 1,917,409 | 4.56 | % | 22,023 | 1,942,467 | 3.82 | % | 18,498 | |||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks |
34,984 | 46,334 | |||||||||||||||||||||
All other assets (3) |
75,927 | 71,496 | |||||||||||||||||||||
Total assets |
$ | 2,028,320 | $ | 2,060,297 | |||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits |
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| Demand | $ | 46,145 | 0.33 | % | $ | 38 | $ | 46,242 | 0.13 | % | $ | 15 | |||||||||||
Money market and savings |
867,113 | 0.81 | % | 1,768 | 835,058 | 0.21 | % | 440 | |||||||||||||||
Time |
85,703 | 0.66 | % | 142 | 121,923 | 0.66 | % | 202 | |||||||||||||||
| Total interest-bearing deposits | 998,961 | 0.77 | % | 1,948 | 1,003,223 | 0.26 | % | 657 | |||||||||||||||
| FHLB Advances | 22,011 | 2.27 | % | 126 | - | 0.00 | % | - | |||||||||||||||
| Subordinated debt | 21,766 | 5.47 | % | 300 | 21,518 | 5.59 | % | 300 | |||||||||||||||
| Total interest-bearing liabilities | 1,042,738 | 0.90 | % | 2,374 | 1,024,741 | 0.37 | % | 957 | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits |
820,047 | 885,271 | |||||||||||||||||||||
Accrued expenses and other liabilities |
21,133 | 21,050 | |||||||||||||||||||||
| Shareholders' equity | 144,402 | 129,235 | |||||||||||||||||||||
Total liabilities and shareholders' equity |
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| $ | 2,028,320 | $ | 2,060,297 | ||||||||||||||||||||
| Net interest income and margin (4) | 4.07 | % | $ | 19,649 | 3.62 | % | $ | 17,541 | |||||||||||||||
| Non-taxable equivalent net interest margin | 4.05 | % | 3.62 | % | |||||||||||||||||||
| Cost of deposits | 1,819,008 | 0.42 | % | 1,948 | 1,888,494 | 0.14 | % | 657 | |||||||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $513 thousand and $460 thousand, respectively. | |||||||||||||||||||||||
| (2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | |||||||||||||||||||||||
| (3) Allowance for loan losses of $14.7 million and $13.2 million, respectively, is included as a contra asset. | |||||||||||||||||||||||
| (4) Net interest margin is net interest income divided by total interest-earning assets. | |||||||||||||||||||||||
Avidbank Holdings, Inc.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information (Unaudited)
($000)
| Three months ended | ||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||||||
| Average Balance |
Yields or Rates |
Interest Income/ Expense |
Average Balance |
Yields or Rates |
Interest Income/ Expense |
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Assets |
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Interest earning assets: |
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Loans (1) |
$ | 1,358,934 | 5.50 | % | $ | 18,852 | $ | 1,028,098 | 4.84 | % | $ | 12,533 | ||||||||
Fed funds sold |
52,626 | 2.31 | % | 307 | 425,568 | 0.15 | % | 156 | ||||||||||||
Investment securities |
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Taxable investment securities |
475,086 | 2.11 | % | 2,530 | 231,526 | 1.62 | % | 946 | ||||||||||||
Non-taxable investment securities (2) |
30,763 | 4.31 | % | 334 | - | 0.00 | % | - | ||||||||||||
Total investment securities |
505,849 | 2.25 | % | 2,864 | 231,526 | 1.62 | % | 946 | ||||||||||||
Total interest-earning assets |
1,917,409 | 4.56 | % | 22,023 | 1,685,192 | 3.21 | % | 13,635 | ||||||||||||
Noninterest-earning assets: |
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Cash and due from banks |
34,984 | 38,286 | ||||||||||||||||||
All other assets (3) |
75,927 | 47,814 | ||||||||||||||||||
Total assets |
$ | 2,028,320 | $ | 1,771,292 | ||||||||||||||||
Liabilities and Shareholders' Equity |
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Interest-bearing liabilities: |
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Deposits |
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Demand |
$ | 46,145 | 0.33 | % | $ | 38 | $ | 47,400 | 0.16 | % | $ | 19 | ||||||||
Money market and savings |
867,113 | 0.81 | % | 1,768 | 622,844 | 0.29 | % | 452 | ||||||||||||
Time |
85,703 | 0.66 | % | 142 | 116,806 | 0.68 | % | 200 | ||||||||||||
Total interest-bearing deposits |
998,961 | 0.77 | % | 1,948 | 787,050 | 0.34 | % | 671 | ||||||||||||
FHLB Advances |
22,011 | 2.27 | % | 126 | - | 0.00 | % | - | ||||||||||||
Subordinated debt |
21,766 | 5.47 | % | 300 | 21,653 | 5.68 | % | 310 | ||||||||||||
Total interest-bearing liabilities |
1,042,738 | 0.90 | % | 2,374 | 808,703 | 0.48 | % | 981 | ||||||||||||
Noninterest-bearing liabilities: |
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Demand deposits |
820,047 | 802,334 | ||||||||||||||||||
Accrued expenses and other liabilities |
21,133 | 24,534 | ||||||||||||||||||
Shareholders' equity |
144,402 | 135,721 | ||||||||||||||||||
Total liabilities and |
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shareholders' equity |
$ | 2,028,320 | $ | 1,771,292 | ||||||||||||||||
Net interest income and margin (4) |
4.07 | % | $ | 19,649 | 2.98 | % | $ | 12,654 | ||||||||||||
Non-taxable equivalent net interest margin |
4.05 | % | 2.98 | % | ||||||||||||||||
Cost of deposits |
1,819,008 | 0.42 | % | 1,948 | 1,589,384 | 0.17 | % | 671 | ||||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $513 thousand and $798 thousand, respectively. | ||||||||||||||||||||
| (2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | ||||||||||||||||||||
| (3) Allowance for loan losses of $14.7 million and $12.6 million, respectively, is included as a contra asset. | ||||||||||||||||||||
| (4) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||||
Avidbank Holdings, Inc.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information (Unaudited)
($000)
| Nine months ended | |||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
| Average Balance |
Yields or Rates |
Interest Income/ Expense |
Average Balance |
Yields or Rates |
Interest Income/ Expense |
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| Assets |
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| Interest earning assets: |
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Loans (1) |
$ | 1,279,579 | 5.08 | % | $ | 48,653 | $ | 1,020,605 | 4.83 | % | $ | 36,896 | |||||||||||
Fed funds sold |
205,199 | 0.53 | % | 816 | 305,379 | 0.12 | % | 263 | |||||||||||||||
Investment securities |
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Taxable investment securities |
462,326 | 1.95 | % | 6,749 | 200,060 | 1.64 | % | 2,453 | |||||||||||||||
Non-taxable investment securities (2) |
14,532 | 4.39 | % | 477 | - | 0.00 | % | - | |||||||||||||||
Total investment securities |
476,858 | 2.03 | % | 7,226 | 200,060 | 1.64 | % | 2,453 | |||||||||||||||
| Total interest-earning assets | 1,961,636 | 3.86 | % | 56,695 | 1,526,044 | 3.47 | % | 39,612 | |||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks |
41,173 | 28,671 | |||||||||||||||||||||
All other assets (3) |
70,214 | 44,373 | |||||||||||||||||||||
Total assets |
$ | 2,073,023 | $ | 1,599,088 | |||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits |
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Demand |
$ | 47,184 | 0.20 | % | $ | 69 | $ | 34,052 | 0.18 | % | $ | 46 | |||||||||||
Money market and savings |
838,354 | 0.42 | % | 2,630 | 529,575 | 0.30 | % | 1,204 | |||||||||||||||
Time |
109,375 | 0.67 | % | 545 | 127,579 | 0.75 | % | 713 | |||||||||||||||
| Total interest-bearing deposits | 994,913 | 0.44 | % | 3,244 | 691,206 | 0.38 | % | 1,963 | |||||||||||||||
| FHLB Advances | 7,418 | 2.25 | % | 125 | - | 0.00 | % | - | |||||||||||||||
| Subordinated debt | 21,666 | 5.56 | % | 901 | 21,618 | 5.76 | % | 931 | |||||||||||||||
| Total interest-bearing liabilities | 1,023,997 | 0.56 | % | 4,270 | 712,824 | 0.54 | % | 2,894 | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits |
889,521 | 729,180 | |||||||||||||||||||||
Accrued expenses and other liabilities |
22,049 | 25,104 | |||||||||||||||||||||
| Shareholders' equity | 137,456 | 131,980 | |||||||||||||||||||||
Total liabilities and shareholders' equity |
$ | 2,073,023 | $ | 1,599,088 | |||||||||||||||||||
| Net interest income and margin (4) | 3.57 | % | $ | 52,425 | 3.22 | % | $ | 36,718 | |||||||||||||||
| Non-taxable equivalent net interest margin | 3.57 | % | 3.22 | % | |||||||||||||||||||
| Cost of deposits | 1,884,434 | 0.23 | % | 3,244 | 1,420,386 | 0.18 | % | 1,963 | |||||||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $1.6 and $1.9 million, respectively. | |||||||||||||||||||||||
| (2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | |||||||||||||||||||||||
| (3) Allowance for loan losses of $13.7 million and $12.6 million, respectively, is included as a contra asset. | |||||||||||||||||||||||
| (4) Tax equivalent net interest income divided by total interest-earning assets. | |||||||||||||||||||||||
Avidbank Holdings, Inc. Period End Loans (Unaudited) ($000) |
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| Sept. 30, 2022 |
June 30, 2022 |
March 31, 2022 |
Dec. 31, 2021 |
Sept. 30, 2021 |
Current Quarter Change |
Year over Year Change |
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Commercial loans |
$ | 566,105 | $ | 558,908 | $ | 481,522 | $ | 517,747 | $ | 415,986 | $ | 7,197 | $ | 150,119 | |||||||
Real Estate |
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Commercial real estate |
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Multi-family |
159,384 | 165,818 | 141,954 | 139,646 | 128,672 | (6,434 | ) | 30,712 | |||||||||||||
CRE |
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Owner Occupied |
131,649 | 108,045 | 109,502 | 99,728 | 89,832 | 23,604 | 41,817 | ||||||||||||||
Non-Owner Occupied |
288,478 | 280,397 | 258,365 | 258,507 | 239,272 | 8,081 | 49,206 | ||||||||||||||
Construction and land |
234,157 | 209,941 | 195,388 | 190,887 | 182,556 | 24,216 | 51,601 | ||||||||||||||
Residential |
11,991 | 12,830 | 13,726 | 14,484 | 14,800 | (839 | ) | (2,809 | ) | ||||||||||||
Total real estate loans |
825,659 | 777,031 | 718,935 | 703,252 | 655,132 | 48,628 | 170,527 | ||||||||||||||
Other loans |
782 | 847 | 1,477 | 2,345 | 2,014 | (65 | ) | (1,232 | ) | ||||||||||||
Total loans |
$ | 1,392,546 | $ | 1,336,786 | $ | 1,201,934 | $ | 1,223,344 | $ | 1,073,132 | $ | 55,760 | $ | 319,414 | |||||||
Avidbank Holdings, Inc.
Credit Trends (Unaudited)
($000)
| 9/30/22 | 6/30/22 | 3/31/22 | 12/31/21 | 9/30/21 | ||||||||||||
Allowance for Loan Losses |
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Balance, beginning of quarter |
$ | 14,646 | $ | 13,054 | $ | 13,054 | $ | 12,775 | $ | 12,558 | ||||||
Provision for loan losses, quarterly |
925 | 1,592 | - | 3,279 | 217 | |||||||||||
Charge-offs, quarterly |
(83 | ) | - | - | (3,000 | ) | - | |||||||||
Recoveries, quarterly |
- | - | - | - | - | |||||||||||
Balance, end of quarter |
$ | 15,488 | $ | 14,646 | $ | 13,054 | $ | 13,054 | $ | 12,775 | ||||||
Nonperforming Assets |
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Loans accounted for on a non-accrual basis |
$ | 154 | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | ||||||
Loans with principal or interest contractually past |
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due 90 days or more and still accruing interest |
- | - | - | - | - | |||||||||||
Nonperforming loans |
154 | 159 | 3,204 | 3,244 | 3,285 | |||||||||||
Other real estate owned |
- | - | - | - | - | |||||||||||
Nonperforming assets |
$ | 154 | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | ||||||
Loans restructured and in compliance |
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with modified terms |
- | - | - | - | - | |||||||||||
Nonperforming assets & restructured loans |
$ | 154 | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | ||||||
Nonperforming Loans by Type: |
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Commercial |
$ | 154 | $ | 159 | $ | 441 | $ | 448 | $ | 456 | ||||||
Commercial Real Estate Loans |
- | - | 2,763 | 2,796 | 2,829 | |||||||||||
Total Nonperforming loans |
$ | 154 | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | ||||||
Asset Quality Ratios |
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Allowance for loan losses (ALLL) to total loans |
1.11 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.19 | % | ||||||
ALLL to nonperforming loans |
10057.14 | % | 9211.32 | % | 407.43 | % | 402.40 | % | 388.89 | % | ||||||
Nonperforming assets to total assets |
0.01 | % | 0.01 | % | 0.15 | % | 0.00 | % | 0.18 | % | ||||||
Nonperforming loans to total loans |
0.01 | % | 0.01 | % | 0.27 | % | 0.27 | % | 0.31 | % | ||||||
Net quarterly charge-offs to total loans |
0.01 | % | 0.00 | % | 0.00 | % | 0.25 | % | 0.00 | % | ||||||
SOURCE: Avidbank Holdings, Inc.
View source version on accesswire.com:
https://www.accesswire.com/720969/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Third-Quarter-of-2022
