SAN JOSE, CA / ACCESSWIRE / July 20, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the second quarter of 2022 of $5.2 million, or $0.76 per diluted share, compared to $3.6 million, or $0.60 per diluted share, for the second quarter of 2021 and $4.3 million, or $0.71 per diluted share, for the first quarter of 2022.
Second Quarter 2022 Financial Highlights
- Diluted earnings per share of $0.76, an increase of $0.16, or 27%, compared to the second quarter of 2021, and increased $0.05, or 28% annualized, compared to the first quarter of 2022.
- Return on average assets was 1.02%, compared to 0.94% in the second quarter of 2021 and 0.83% in the first quarter of 2022.
- Return on average equity was 16.18%, compared to 11.15% in the second quarter of 2021 and 12.72% in the first quarter of 2022.
- Taxable equivalent net interest margin was 3.62% in the second quarter of 2022, compared to 3.28% in the second quarter of 2021 and 3.05% in the first quarter of 2022.
- Loans increased $322 million, or 32%, from June 30, 2021 and increased $135 million, or 45% annualized, from March 31,2022.
- Annualized net charge-offs to average loans totaled 0.00% for the second quarter and year-to-date 2022. Non-performing assets to total assets were 0.01% on June 30, 2022, a decrease from 0.22% on June 30, 2021 and 0.15% on March 31, 2022.
- On May 11, 2022, completed a $28.6 million private offering of 1.27 million common shares at $22.50 per share bringing total common shares outstanding to 7,585,924.
"We continued our solid performance in the second quarter with earnings of $0.76 per diluted share including strong loan growth from a combination of less payoffs, an increase in line utilization, and another quarter of solid new originations," said Mark Mordell, Chairman and Chief Executive Officer. "We are cautiously optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from each increase in the fed funds rate," added Mr. Mordell.
Income Statement
Taxable equivalent net interest income totaled $17.5 million for the second quarter of 2022, an increase of $5.4 million, or 44%, from the second quarter of 2021, and an increase of $2.3 million, or 60% annualized, from the first quarter of 2022. This was primarily driven by an increase in interest income from higher interest rates and the growth in average balance of loans and investment securities.
The yield on loans in the second quarter of 2022 was 4.97%, an increase of 17 basis points from the second quarter of 2021 and an increase of 24 basis points from the first quarter of 2022. 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 second quarter of 2022 was 0.14%, a decrease of 5 basis points from the second quarter of 2021 and an increase of 1 basis point from the first quarter of 2022. The cost of interest-bearing deposits in the second quarter of 2022 was 0.26%, remaining flat from the first quarter of 2022.
In the second quarter of 2022, we recorded a provision for loan losses of $1.6 million. No loan provision was required in the first quarter of 2022 and the second quarter of 2021. The second quarter provision was primarily attributable to the $135 million increase in loan balances.
Non-interest income was $1.2 million in the second quarter of 2022 compared to $1.5 million in the second quarter of 2021 and $1.1 million in the first quarter of 2022. Service charge income totaled $681,000 in the second quarter of 2022, an increase of $159,000, or 30% from the second quarter of 2021, and an increase of $45,000, or 28% annualized, compared to the first quarter of 2022.
Non-interest expense totaled $10.0 million in the second quarter of 2022 compared to $8.6 million in the second quarter of 2021 and $10.4 million in the first quarter of 2022. 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 June 30, 2022 totaled 132 compared to 130 on March 31, 2022.
Balance Sheet
Total assets were $2.01 billion as of June 30, 2022, compared to $2.11 billion on March 31, 2022 and $1.60 billion at June 30, 2021. Cash balances held at the Federal Reserve decreased $284 million in the second quarter of 2022 while investments increased $39 million due to the purchase of tax-exempt municipal and mortgage-backed securities.
Period end loans on June 30, 2022 totaled $1.34 billion, which represented an increase of $135 million, or 45% annualized, from March 31, 2022, and an increase of $322 million, or 32%, from $1.01 billion at June 30, 2021. Quarterly average loans for the second quarter of 2022 increased $239 million, or 23%, from the second quarter of 2021 and $48 million, or 16% annualized, from the first quarter of 2022.
The allowance for loan losses on June 30, 2022 was $14.6 million, representing an increase of $1.6 million from March 31, 2022. The Allowance for Loan Losses to total loans was 1.09% on June 30, 2022, compared to 1.08% on March 31, 2022. Nonperforming loans to total loans was 0.01% on June 30, 2022, a decrease from 0.27% on March 31, 2022. The decrease was primarily attributable to the payoff of a single relationship of approximately $3 million.
Period end deposits were $1.83 billion on June 30, 2022 compared to $1.95 billion at March 31, 2022 and an increase of $402 million, or 28%, compared to $1.43 billion at June 30, 2021. Quarterly average deposits for the second quarter of 2022 increased $512 million, or 37%, compared to the second quarter of 2021 and decreased $59 million, or 12% annualized, from the first quarter of 2022.
Noninterest bearing deposits represented 45.9% of total deposits on June 30, 2022, compared to 48.9% on March 31, 2022 and 51.0% at June 30, 2021. The loan to deposit ratio was 73.1% on June 30, 2022 compared to 61.7% at March 31, 2022 and 71.1% at June 30, 2021.
About Avidbank
Avidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in Palo Alto, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, technology and asset-based lending, specialty 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
408-831-5653
poakes@avidbank.com
| For the six months ended | ||||||||||||||||||||||||||||
| 2022 | 2021 | June 30, | ||||||||||||||||||||||||||
| Second | First | Fourth | Third | Second | ||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | 2022 | 2021 | ||||||||||||||||||||||
| INCOME AND PER SHARE HIGHLIGHTS | ||||||||||||||||||||||||||||
Net income | $ | 5,214 | $ | 4,349 | $ | 2,534 | $ | 3,574 | $ | 3,649 | $ | 9,563 | $ | 6,156 | ||||||||||||||
Basic earnings per share | 0.78 | 0.73 | 0.43 | 0.60 | 0.62 | 1.51 | 1.05 | |||||||||||||||||||||
Diluted earnings per share | 0.76 | 0.71 | 0.42 | 0.59 | 0.60 | 1.47 | 1.02 | |||||||||||||||||||||
Book value per share | 18.27 | 19.20 | 21.91 | 21.55 | 21.26 | |||||||||||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||||||||||
Return on average assets | 1.02 | % | 0.83 | % | 0.49 | % | 0.80 | % | 0.94 | % | 0.92 | % | 0.82 | % | ||||||||||||||
Return on average equity | 16.18 | % | 12.72 | % | 7.25 | % | 10.45 | % | 11.15 | % | 14.40 | % | 9.54 | % | ||||||||||||||
Net interest margin | 3.62 | % | 3.05 | % | 2.90 | % | 2.98 | % | 3.28 | % | 3.33 | % | 3.36 | % | ||||||||||||||
Efficiency ratio | 53.43 | % | 63.72 | % | 58.31 | % | 61.91 | % | 62.61 | % | 58.22 | % | 66.94 | % | ||||||||||||||
Average loans to average deposits | 66.88 | % | 62.40 | % | 61.83 | % | 64.69 | % | 74.37 | % | 64.62 | % | 76.19 | % | ||||||||||||||
CAPITAL | ||||||||||||||||||||||||||||
Tier 1 leverage ratio | 8.72 | % | 6.85 | % | 6.89 | % | 7.81 | % | 8.64 | % | ||||||||||||||||||
Common equity tier 1 capital ratio | 10.17 | % | 9.09 | % | 8.90 | % | 9.94 | % | 10.57 | % | ||||||||||||||||||
Tier 1 risk-based capital ratio | 10.17 | % | 9.09 | % | 8.90 | % | 9.94 | % | 10.57 | % | ||||||||||||||||||
Total risk-based capital ratio | 12.25 | % | 11.28 | % | 11.11 | % | 12.44 | % | 13.30 | % | ||||||||||||||||||
SHARES OUTSTANDING | ||||||||||||||||||||||||||||
Number of common shares outstanding | 7,585,924 | 6,316,573 | 6,256,682 | 6,255,752 | 6,220,872 | |||||||||||||||||||||||
Average common shares outstanding - basic | 6,687,448 | 5,935,948 | 5,904,446 | 5,898,208 | 5,892,713 | 6,316,780 | 5,878,921 | |||||||||||||||||||||
Average common shares outstanding - diluted | 6,821,245 | 6,116,306 | 6,101,778 | 6,072,085 | 6,051,243 | 6,474,959 | 6,036,233 | |||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||
Allowance for loan losses (ALLL) to total loans | 1.09 | % | 1.08 | % | 1.07 | % | 1.19 | % | 1.24 | % | ||||||||||||||||||
ALLL to nonperforming loans | 9211.32 | % | 407.43 | % | 402.40 | % | 388.89 | % | 377.59 | % | ||||||||||||||||||
Nonperforming assets to total assets | 0.01 | % | 0.15 | % | 0.15 | % | 0.18 | % | 0.21 | % | ||||||||||||||||||
Nonperforming loans to total loans | 0.01 | % | 0.27 | % | 0.27 | % | 0.31 | % | 0.33 | % | ||||||||||||||||||
Net quarterly charge-offs to total loans | 0.00 | % | 0.00 | % | 0.25 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||
Gross loans | $ | 1,263,071 | $ | 1,215,153 | $ | 1,154,254 | $ | 1,028,098 | $ | 1,023,932 | $ | 1,239,245 | $ | 1,016,796 | ||||||||||||||
Investment securities | 487,535 | 436,427 | 287,915 | 231,526 | 200,016 | 462,122 | 184,066 | |||||||||||||||||||||
Total assets | 2,060,297 | 2,131,587 | 2,054,545 | 1,771,292 | 1,554,049 | 2,095,745 | 1,511,559 | |||||||||||||||||||||
Deposits | 1,888,494 | 1,947,208 | 1,866,704 | 1,589,384 | 1,376,736 | 1,917,689 | 1,334,487 | |||||||||||||||||||||
Shareholder's equity | 129,235 | 138,668 | 138,589 | 135,721 | 131,300 | 133,925 | 130,079 | |||||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||||
Gross loans | $ | 1,338,687 | $ | 1,203,657 | $ | 1,225,187 | $ | 1,074,436 | $ | 1,016,200 | ||||||||||||||||||
Investment securities | 507,826 | 468,917 | 380,170 | 276,670 | 208,482 | |||||||||||||||||||||||
Total assets | 2,010,256 | 2,110,091 | 2,162,478 | 1,828,021 | 1,604,273 | |||||||||||||||||||||||
Deposits | 1,828,752 | 1,947,278 | 1,979,410 | 1,647,613 | 1,427,177 | |||||||||||||||||||||||
Shareholder's equity | 138,611 | 121,282 | 137,100 | 134,797 | 132,231 | |||||||||||||||||||||||
Avidbank Holdings, Inc.
Consolidated Balance Sheets (Unaudited)
($000)
June 30, |
|
| March 31, |
|
| Dec. 31, |
|
| Sept. 31, |
|
| June 30, | |||||||||||
| Assets | 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 | ||||||||||
| Cash and due from banks | $ | 50,907 | $ | 47,091 | $ | 29,616 | $ | 34,864 | $ | 27,977 | |||||||||||||
| Due from Federal Reserve Bank | 35,913 | 320,336 | 463,727 | 378,380 | 308,596 | ||||||||||||||||||
| Total cash and cash equivalents | 86,820 | 367,427 | 493,343 | 413,244 | 336,573 | ||||||||||||||||||
Investment securities - available for sale | 477,646 | 468,917 | 308,170 | 276,670 | 208,482 | ||||||||||||||||||
| Investment securities - held to maturity | 30,180 | - | - | - | - | ||||||||||||||||||
| Total investment securities | 507,826 | 468,917 | 380,170 | 276,670 | 208,482 | ||||||||||||||||||
Loans, net of deferred loan fees | 1,336,786 | 1,201,934 | 1,223,344 | 1,073,132 | 1,014,750 | ||||||||||||||||||
| Allowance for loan losses | (14,646 | ) | (13,054 | ) | (13,054 | ) | (12,775 | ) | (12,558 | ) | |||||||||||||
| Loans, net of allowance for loan losses | 1,322,140 | 1,188,880 | 1,210,290 | 1,060,357 | 1,002,192 | ||||||||||||||||||
Bank owned life insurance | 32,303 | 32,087 | 31,875 | 31,663 | 11,559 | ||||||||||||||||||
| Premises and equipment, net | 4,314 | 4,331 | 4,565 | 4,913 | 5,138 | ||||||||||||||||||
| Other real estate owned | - | - | - | - | - | ||||||||||||||||||
| Accrued interest receivable & other assets | 56,853 | 48,449 | 42,235 | 41,174 | 40,329 | ||||||||||||||||||
| Total assets | $ | 2,010,256 | $ | 2,110,091 | $ | 2,162,478 | $ | 1,828,021 | $ | 1,604,273 | |||||||||||||
Liabilities | |||||||||||||||||||||||
| Non-interest-bearing demand deposits | $ | 838,666 | $ | 952,035 | $ | 993,156 | $ | 872,972 | $ | 728,522 | |||||||||||||
| Interest bearing transaction accounts | 45,179 | 47,711 | 50,674 | 49,722 | 30,538 | ||||||||||||||||||
| Money market and savings accounts | 848,748 | 812,701 | 845,718 | 614,992 | 541,145 | ||||||||||||||||||
| Time deposits | 96,159 | 134,831 | 89,862 | 109,927 | 126,972 | ||||||||||||||||||
| Total deposits | 1,828,752 | 1,947,278 | 1,979,410 | 1,647,613 | 1,427,177 | ||||||||||||||||||
FHLB advances | - | - | - | - | - | ||||||||||||||||||
| Subordinated debt, net | 21,754 | 21,729 | 21,703 | 21,671 | 21,636 | ||||||||||||||||||
| Other liabilities | 21,139 | 19,802 | 24,265 | 23,940 | 23,229 | ||||||||||||||||||
| Total liabilities | 1,871,645 | 1,988,809 | 2,025,378 | 1,693,224 | 1,472,042 | ||||||||||||||||||
Shareholders' equity | |||||||||||||||||||||||
| Common stock/additional paid-in capital | 101,244 | 72,920 | 72,799 | 72,124 | 71,542 | ||||||||||||||||||
| Retained earnings | 78,364 | 73,149 | 68,801 | 66,267 | 62,693 | ||||||||||||||||||
| Accumulated other comprehensive (loss) | (40,997 | ) | (24,787 | ) | (4,500 | ) | (3,594 | ) | (2,004 | ) | |||||||||||||
| Total shareholders' equity | 138,611 | 121,282 | 137,100 | 134,797 | 132,231 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,010,256 | $ | 2,110,091 | $ | 2,162,478 | $ | 1,828,021 | $ | 1,604,273 | |||||||||||||
Avidbank Holdings, Inc.
Consolidated Statements of Income (Unaudited)
($000, except share and per share amounts)
| Three Months Ended | Year-to-Date | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Interest and fees on loans | $ | 15,639 | $ | 14,163 | $ | 12,246 | $ | 29,802 | $ | 24,363 | ||||||||||
Interest on investment securities | 2,477 | 1,855 | 808 | 4,332 | 1,507 | |||||||||||||||
Other interest income | 356 | 153 | 59 | 509 | 107 | |||||||||||||||
Total interest income | 18,472 | 16,171 | 13,113 | 34,643 | 25,977 | |||||||||||||||
Deposit interest expense | 657 | 640 | 651 | 1,297 | 1,293 | |||||||||||||||
Other interest expense | 300 | 300 | 310 | 600 | 621 | |||||||||||||||
Total interest expense | 957 | 940 | 961 | 1,897 | 1,914 | |||||||||||||||
Net interest income | 17,515 | 15,231 | 12,152 | 32,746 | 24,063 | |||||||||||||||
Provision for loan losses | 1,592 | - | - | 1,592 | 75 | |||||||||||||||
Net interest income after provision for | ||||||||||||||||||||
loan losses | 15,923 | 15,231 | 12,152 | 31,154 | 23,988 | |||||||||||||||
Service charges and bank fees | 761 | 725 | 736 | 1,486 | 1,359 | |||||||||||||||
Income from bank owned life insurance | 215 | 212 | 68 | 427 | 135 | |||||||||||||||
Gain/(loss) on sale of assets | - | - | 735 | - | 734 | |||||||||||||||
Warrant income | 64 | 86 | - | 150 | 22 | |||||||||||||||
Other income | 187 | 90 | - | 277 | - | |||||||||||||||
Total non-interest income | 1,227 | 1,113 | 1,539 | 2,340 | 2,250 | |||||||||||||||
Compensation and benefit expenses | 7,129 | 7,312 | 6,001 | 14,441 | 12,476 | |||||||||||||||
Occupancy and equipment expenses | 901 | 894 | 1,017 | 1,795 | 2,088 | |||||||||||||||
Data processing | 423 | 411 | 419 | 834 | 841 | |||||||||||||||
Regulatory assessments | 509 | 664 | 279 | 1,173 | 558 | |||||||||||||||
Professional fees | 192 | 195 | 179 | 387 | 331 | |||||||||||||||
Other operating expenses | 859 | 939 | 677 | 1,798 | 1,320 | |||||||||||||||
Total non-interest expense | 10,013 | 10,415 | 8,572 | 20,428 | 17,614 | |||||||||||||||
Income before income taxes | 7,137 | 5,929 | 5,119 | 13,066 | 8,624 | |||||||||||||||
Provision for income taxes | 1,923 | 1,580 | 1,470 | 3,503 | 2,468 | |||||||||||||||
Net income | $ | 5,214.27 | $ | 4,348.67 | $ | 3,649.00 | $ | 9,562.94 | $ | 6,156.00 | ||||||||||
Basic earnings per common share | $ | 0.78 | $ | 0.73 | $ | 0.62 | $ | 1.51 | $ | 1.05 | ||||||||||
Diluted earnings per common share | $ | 0.76 | $ | 0.71 | $ | 0.60 | $ | 1.47 | $ | 1.02 | ||||||||||
Average common shares outstanding | 6,687,448 | 5,935,948 | 5,892,713 | 6,316,780 | 5,878,921 | |||||||||||||||
Average common fully diluted shares | 6,821,245 | 6,116,306 | 6,051,243 | 6,474,959 | 6,036,233 | |||||||||||||||
Avidbank Holdings, Inc.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information (Unaudited)
($000)
| Three Months Ended | |||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||
| Average Balance | Yields or Rates | Interest Income/ Expense | Average Balance | Yields or Rates | Interest Income/ Expense | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||
Loans (1) | $ | 1,263,071 | 4.97 | % | $ | 15,638 | $ | 1,215,153 | 4.73 | % | $ | 14,163 | |||||||||||
Fed funds sold | 191,861 | 0.74 | % | 353 | 374,648 | 0.17 | % | 153 | |||||||||||||||
Investment securities | |||||||||||||||||||||||
Taxable investment securities | 475,039 | 2.00 | % | 2,364 | 436,427 | 1.72 | % | 1,855 | |||||||||||||||
Non-taxable investment securities (2) | 12,496 | 4.59 | % | 143 | - | 0.00 | % | - | |||||||||||||||
Total investment securities | 487,535 | 2.06 | % | 2,507 | 436,427 | 1.72 | % | 1,855 | |||||||||||||||
Total interest-earning assets | 1,942,467 | 3.82 | % | 18,498 | 2,026,228 | 3.24 | % | 16,171 | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||
Cash and due from banks | 46,334 | 42,282 | |||||||||||||||||||||
All other assets (3) | 71,496 | 63,077 | |||||||||||||||||||||
Total assets | $ | 2,060,297 | $ | 2,131,587 | |||||||||||||||||||
Liabilities and Shareholder's Equity | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Demand | $ | 46,242 | 0.13 | % | $ | 15 | $ | 49,199 | 0.12 | % | $ | 15 | |||||||||||
Money market and savings | 835,058 | 0.21 | % | 440 | 812,289 | 0.21 | % | 422 | |||||||||||||||
Time | 121,923 | 0.66 | % | 202 | 120,886 | 0.68 | % | 203 | |||||||||||||||
Total interest-bearing deposits | 1,003,223 | 0.26 | % | 657 | 982,374 | 0.26 | % | 640 | |||||||||||||||
Subordinated debt | 21,518 | 5.59 | % | 300 | 21,714 | 5.60 | % | 300 | |||||||||||||||
Total interest-bearing liabilities | 1,024,741 | 0.37 | % | 957 | 1,004,088 | 0.38 | % | 940 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 885,271 | 964,834 | |||||||||||||||||||||
Accrued expenses and other liabilities | 21,050 | 23,997 | |||||||||||||||||||||
Shareholders' equity | 129,235 | 138,668 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,060,297 | $ | 2,131,587 | |||||||||||||||||||
Net interest income and margin (4) | 3.62 | % | $ | 17,541 | 3.05 | % | $ | 15,231 | |||||||||||||||
Non-taxable equivalent net interest margin | 3.62 | % | 3.05 | % | |||||||||||||||||||
(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 $460 thousand and $628 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 $14.6 million and $13.1 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 | ||||||||||||||||||||||||
| June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||
| Average Balance | Yields or Rates | Interest Income/ Expense | Average Balance | Yields or Rates | Interest Income/ Expense | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,263,071 | 4.97 | % | $ | 15,638 | $ | 1,023,932 | 4.80 | % | $ | 12,246 | ||||||||||||
Fed funds sold | 191,861 | 0.74 | % | 353 | 261,159 | 0.09 | % | 59 | ||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable investment securities | 475,039 | 2.00 | % | 2,364 | 200,016 | 1.62 | % | 808 | ||||||||||||||||
Non-taxable investment securities (2) | 12,496 | 4.59 | % | 143 | - | 0.00 | % | - | ||||||||||||||||
Total investment securities | 487,535 | 2.06 | % | 2,507 | 200,016 | 1.62 | % | 808 | ||||||||||||||||
Total interest-earning assets | 1,942,467 | 3.82 | % | 18,498 | 1,485,107 | 3.54 | % | 13,113 | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 46,334 | 25,948 | ||||||||||||||||||||||
All other assets (3) | 71,496 | 42,994 | ||||||||||||||||||||||
Total assets | $ | 2,060,297 | $ | 1,554,049 | ||||||||||||||||||||
Liabilities and Shareholder's Equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
Demand | $ | 46,242 | 0.13 | % | $ | 15 | $ | 28,649 | 0.20 | % | $ | 14 | ||||||||||||
Money market and savings | 835,058 | 0.21 | % | 440 | 518,508 | 0.31 | % | 398 | ||||||||||||||||
Time | 121,923 | 0.66 | % | 202 | 128,480 | 0.75 | % | 239 | ||||||||||||||||
Total interest-bearing deposits | 1,003,223 | 0.26 | % | 657 | 675,637 | 0.39 | % | 651 | ||||||||||||||||
Subordinated debt | 21,518 | 5.59 | % | 300 | 21,619 | 5.75 | % | 310 | ||||||||||||||||
Total interest-bearing liabilities | 1,024,741 | 0.37 | % | 957 | 697,256 | 0.55 | % | 961 | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 885,271 | 701,099 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 21,050 | 24,394 | ||||||||||||||||||||||
Shareholders' equity | 129,235 | 131,300 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,060,297 | $ | 1,554,049 | ||||||||||||||||||||
Net interest income and margin (4) | 3.62 | % | $ | 17,541 | 3.28 | % | $ | 12,152 | ||||||||||||||||
Non-taxable equivalent net interest margin | 3.62 | % | 3.28 | % | ||||||||||||||||||||
(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 $460 thousand and $514 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 $14.6 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)
| Six months ended | ||||||||||||||||||||||||
| June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||
| Average Balance | Yields or Rates | Interest Income/ Expense | Average Balance | Yields or Rates | Interest Income/ Expense | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,239,245 | 4.85 | % | $ | 29,802 | $ | 1,016,796 | 4.83 | % | $ | 24,363 | ||||||||||||
Fed funds sold | 282,750 | 0.36 | % | 509 | 244,289 | 0.09 | % | 107 | ||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable investment securities | 455,839 | 1.87 | % | 4,219 | 184,066 | 1.65 | % | 1,507 | ||||||||||||||||
Non-taxable investment securities (2) | 6,283 | 4.59 | % | 143 | - | 0.00 | % | - | ||||||||||||||||
Total investment securities | 462,122 | 1.90 | % | 4,362 | 184,066 | 1.65 | % | 1,507 | ||||||||||||||||
Total interest-earning assets | 1,984,117 | 3.52 | % | 34,673 | 1,445,151 | 3.62 | % | 25,977 | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 44,319 | 23,783 | ||||||||||||||||||||||
All other assets (3) | 67,309 | 42,625 | ||||||||||||||||||||||
Total assets | $ | 2,095,745 | $ | 1,511,559 | ||||||||||||||||||||
Liabilities and Shareholder's Equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
Demand | $ | 47,712 | 0.13 | % | $ | 31 | $ | 27,268 | 0.20 | % | $ | 27 | ||||||||||||
Money market and savings | 823,736 | 0.21 | % | 862 | 482,168 | 0.31 | % | 752 | ||||||||||||||||
Time | 121,408 | 0.67 | % | 404 | 133,055 | 0.78 | % | 514 | ||||||||||||||||
Total interest-bearing deposits | 992,856 | 0.26 | % | 1,297 | 642,491 | 0.41 | % | 1,293 | ||||||||||||||||
Subordinated debt | 21,616 | 5.60 | % | 600 | 21,600 | 5.80 | % | 621 | ||||||||||||||||
Total interest-bearing liabilities | 1,014,472 | 0.38 | % | 1,897 | 664,091 | 0.58 | % | 1,914 | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 924,833 | 691,996 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 22,515 | 25,393 | ||||||||||||||||||||||
Shareholders' equity | 133,925 | 130,079 | ||||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||
shareholders' equity | $ | 2,095,745 | $ | 1,511,559 | ||||||||||||||||||||
Net interest income and margin (4) | 3.33 | % | $ | 32,776 | 3.36 | % | $ | 24,063 | ||||||||||||||||
Non-taxable equivalent net interest margin | 3.33 | % | 3.36 | % | ||||||||||||||||||||
(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 $1.1 million for both comparative periods.
(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 $14.6 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)
| June 30, 2022 | March 31, 2022 | Dec. 31, 2021 | Sept. 30, 2021 | June 30, 2021 | Current Quarter Change | Year over Year Change | ||||||||||||||||
Commercial loans | $ | 558,908 | $ | 481,522 | $ | 517,747 | $ | 415,986 | $ | 401,584 | $ | 77,386 | $ | 157,324 | ||||||||
Real Estate | ||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||
Multi-family | 165,818 | 141,954 | 139,646 | 128,672 | 116,259 | 23,864 | 49,559 | |||||||||||||||
CRE | ||||||||||||||||||||||
Owner Occupied | 108,045 | 109,502 | 99,728 | 89,832 | 90,626 | (1,457 | ) | 17,419 | ||||||||||||||
Non-Owner Occupied | 280,397 | 258,365 | 258,507 | 239,272 | 195,344 | 22,032 | 85,053 | |||||||||||||||
Construction and land | 209,941 | 195,388 | 190,887 | 182,556 | 193,709 | 14,553 | 16,232 | |||||||||||||||
Residential | 12,830 | 13,726 | 14,484 | 14,800 | 15,164 | (896 | ) | (2,334 | ) | |||||||||||||
Total real estate loans | 777,031 | 718,935 | 703,252 | 655,132 | 611,102 | 58,096 | 165,929 | |||||||||||||||
Other loans | 847 | 1,477 | 2,345 | 2,014 | 2,064 | (630 | ) | (1,217 | ) | |||||||||||||
Total loans | $ | 1,336,786 | $ | 1,201,934 | $ | 1,223,344 | $ | 1,073,132 | $ | 1,014,750 | $ | 134,852 | $ | 322,036 | ||||||||
Avidbank Holdings, Inc.
Credit Trends (Unaudited)
($000)
| 6/30/22 | 3/31/22 | 12/31/21 | 9/30/21 | 6/30/21 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Balance, beginning of quarter | $ | 13,054 | $ | 13,054 | $ | 12,775 | $ | 12,558 | $ | 12,558 | ||||||||||
Provision for loan losses, quarterly | 1,592 | - | 3,279 | 217 | - | |||||||||||||||
Charge-offs, quarterly | - | - | (3,000 | ) | - | - | ||||||||||||||
Recoveries, quarterly | - | - | - | - | - | |||||||||||||||
Balance, end of quarter | $ | 14,646 | $ | 13,054 | $ | 13,054 | $ | 12,775 | $ | 12,558 | ||||||||||
Nonperforming Assets | ||||||||||||||||||||
Loans accounted for on a non-accrual basis | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | $ | 3,326 | ||||||||||
Loans with principal or interest contractually past | ||||||||||||||||||||
due 90 days or more and still accruing interest | - | - | - | - | - | |||||||||||||||
Nonperforming loans | 159 | 3,204 | 3,244 | 3,285 | 3,326 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Nonperforming assets | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | $ | 3,326 | ||||||||||
Loans restructured and in compliance | ||||||||||||||||||||
with modified terms | - | - | - | - | - | |||||||||||||||
Nonperforming assets & restructured loans | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | $ | 3,326 | ||||||||||
Nonperforming Loans by Type: | ||||||||||||||||||||
Commercial | $ | 159 | $ | 441 | $ | 448 | $ | 456 | $ | 463 | ||||||||||
Commercial Real Estate Loans | - | 2,763 | 2,796 | 2,829 | 2,863 | |||||||||||||||
Total Nonperforming loans | $ | 159 | $ | 3,204 | $ | 3,244 | $ | 3,285 | $ | 3,326 | ||||||||||
Asset Quality Ratios | ||||||||||||||||||||
Allowance for loan losses (ALLL) to total loans | 1.09 | % | 1.08 | % | 1.07 | % | 1.19 | % | 1.24 | % | ||||||||||
ALLL to nonperforming loans | 9211.32 | % | 407.43 | % | 402.40 | % | 388.89 | % | 377.59 | % | ||||||||||
Nonperforming assets to total assets | 0.01 | % | 0.15 | % | 0.15 | % | 0.18 | % | 0.21 | % | ||||||||||
Nonperforming loans to total loans | 0.01 | % | 0.27 | % | 0.27 | % | 0.31 | % | 0.33 | % | ||||||||||
Net quarterly charge-offs to total loans | 0.00 | % | 0.00 | % | 0.25 | % | 0.00 | % | 0.00 | % | ||||||||||
SOURCE: Avidbank Holdings, Inc.
View source version on accesswire.com:
https://www.accesswire.com/709156/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Second-Quarter-of-2022
