Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Avidbank Holdings, Inc. Announces Net Income of $2,507,000 for the First Quarter of 2021 By: Avidbank Holdings, Inc. via AccessWire April 29, 2021 at 06:00 AM EDT SAN JOSE, CA / ACCESSWIRE / April 29, 2021 / Avidbank Holdings, Inc. ("the Company") (OTC Pink:AVBH), a bank holding company and the parent company of Avidbank ("the Bank"), an independent full-service commercial bank serving businesses and individuals primarily in Northern California, announced unaudited consolidated net income of $2,507,000 for the first quarter of 2021 compared to $2,435,000 for the same period in 2020. First Quarter 2021 Financial Highlights Total interest income was $12,863,000 for the first quarter of 2021, an increase of $87,000 over the $12,776,000 we recorded in the first quarter of 2020. The 0.7% increase over the prior year quarter reflects year over year loan growth offset by declining loan yields, but augmented by increased investment securities income. Net income was $2,507,000 for the first quarter of 2021, compared to $2,435,000 for the first quarter of 2020. Results for the first quarter of 2021 were affected by the full impact of the 150 basis point Federal Reserve rate cut in March 2020 which caused average loan yields to drop 9% from 5.34% to 4.87%. Diluted earnings per common share were $0.42 for the first quarter of 2021, compared to $0.41 for the first quarter of 2020. Total assets grew by 7% in the first three months of 2021, ending the first quarter at $1.5 billion. Total loans net of deferred fees grew by 3% in the first three months of 2021, ending the first quarter at $1.0 billion. Total deposits grew by 9% in the first three months of 2021, ending the first quarter at $1.4 billion. The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 8.87%, a Tier 1 Risk Based Capital and Common Equity Tier 1 Risk Based Capital Ratio of 10.38%, and a Total Risk Based Capital Ratio of 13.14%. Mark D. Mordell, Chairman and Chief Executive Officer, stated, "Net interest income increased to $11.9 million in the first quarter of 2021, an 8% increase over the first quarter of 2020 due to a drop in deposit interest expense and an increase in investment securities income. Our loan growth for the last 12 months was offset by declining loan yields. Loans grew $34 million in the first quarter, primarily as a result of our participation in the latest round of the Small Business Administration (SBA) Paycheck Protection Program (PPP). The large amount of liquidity released into the economy from government stimulus programs has slowed the pace of lending in some of our divisions. We have maintained our credit quality and reduced our level of criticized and classified loans since the beginning of the pandemic. We currently have no outstanding COVID-19 related loan modifications. We have selectively added key staff positions to build our infrastructure and accommodate our growth. During certain phases of our growth strategy, our efficiency and returns have temporarily dropped, but we strongly believe it is in the long-term interest of the Company to stay the course and work on improving our metrics. Our focus will continue to be employee health and safety along with our fiduciary responsibility to our clients and shareholders. For those reasons, we continue to be cautious in our plans for returning employees to the workplace." Mr. Mordell continued, "Non-interest expense increased by $809,000 to $9,043,000 in the first quarter of 2021, up from $8,234,000 in the first quarter of 2020, primarily due to increased investments in personnel across the entire Bank. Our efficiency ratio increased to 71.6% in the first quarter of 2021, up from 69.3% in the first quarter of 2020, as a result of increased staffing costs and a small drop in loan interest income from the decline in loan yields. Total deposits increased by $109 million in the first quarter of 2021 compared to the fourth quarter of 2020 and increased by $369 million from the first quarter of 2020. The increase in deposits from December 31, 2020 was due to higher money market and demand deposit accounts. The increase in deposits over the first quarter of 2020 was due to an increase in demand deposits and money market accounts, partially offset by lower brokered deposits. Our net interest margin dropped to 3.44% in the first quarter of 2021, compared to 4.21% in the first quarter of 2020 primarily due to a drop in loan and investment yields and an increase in overnight funds. Return on assets was 0.69% in the first quarter of 2021 compared to 0.75% in the fourth quarter of 2020 and 0.88% in the first quarter of 2020." Results for the quarter ended March 31, 2021 For the three months ended March 31, 2021, interest and fees on loans were $12.1 million, a decrease of $59,000 or 0.5% compared to the first quarter of 2020. The decrease was primarily the result of higher average loans outstanding offset by lower loan yields. Average total loans outstanding for the quarter ended March 31, 2021 were $1.0 billion, compared to $917 million for the same quarter in 2020, an increase of 10%. Average earning assets were $1.4 billion in the first quarter of 2021, a 33% increase over the first quarter of the prior year. Loans made up 72% of average earning assets at the end of the first quarter of 2021 compared to 87% at the end of the first quarter of 2020. Net interest margin was 3.44% for the first quarter of 2021, compared to 4.21% for the first quarter of 2020. A loan loss provision of $75,000 was taken in the first quarter of 2021 compared with a $273,000 loan loss provision taken in the first quarter of 2020. Non-interest income was $711,000 in the first quarter of 2021, a decrease of $98,000 or 12% compared to the first quarter of 2020. Investment fund income was $50,000 in the first three months of 2021 compared to $214,000 in the first three months of 2020. Offsetting this decline, income from service charges on deposit accounts increased by $52,000 in the first three months of 2021. Non-interest expense increased by $809,000 in the first quarter of 2021 to $9,043,000 compared to $8,234,000 for the first quarter of 2020. This increase was primarily due to higher compensation costs related to increased staffing. The Company's full-time equivalent employees at March 31, 2021 and 2020 were 126 and 116, respectively. The Company's efficiency ratio increased from 69.3% in the first quarter of 2020 to 71.6% in the first quarter of 2021 due to increased expenses from the growth in staff and a small drop in loan interest income from the decline in loan yields. Balance Sheet Total assets were $1.536 billion as of March 31, 2021, compared to $1.431 billion at December 31, 2020 and $1.205 billion at March 31, 2020. The increase in total assets of $105 million, or 7%, from December 31, 2020 was primarily due to increased deposits causing an increase in overnight funds with the Federal Reserve. Investments also increased $21 million due to the purchase of mortgage-backed securities with excess funds. The Company reported loans net of deferred fees at March 31, 2021 of $1.027 billion, which represented an increase of $34 million, or 3%, from $0.993 billion at December 31, 2020, and an increase of $61 million, or 6%, over $0.966 billion at March 31, 2020. The increase in total loans from December 31, 2020 was primarily a result of an increase in Commercial loans through the SBA PPP and increased Multi-Family loans, partially offset by a decrease in Specialty Finance loans. The increase in loans from March 31, 2020 was due to higher Construction, Commercial, CRE and Venture Lending loans, partially offset by lower Specialty Finance loans. "We had $3.4 million in three non-accrual loans on March 31, 2021, compared to a balance of $3.5 million at the end of the prior quarter. Two of the non-accrual loans totaling $3.2 million are secured by commercial real estate with a very low loan to value," observed Mr. Mordell. The Company's total deposits were $1.363 billion as of March 31, 2021, which represented an increase of $109 million, or 9%, compared to $1.254 billion at December 31, 2020 and an increase of $369 million, or 37%, compared to $994 million at March 31, 2020. The increase in deposits from December 31, 2020 was due to higher money market and demand deposit accounts. The increase from March 31, 2020 was due to an increase in demand deposits and money market accounts, partially offset by lower brokered deposits. The Company had no FHLB advances outstanding as of March 31, 2021 and December 31, 2020 and $50 million outstanding as of March 31, 2020. Demand and interest bearing transaction deposits represented 54% of total deposits at March 31, 2021, compared to 55% at December 31, 2020 and 51% at March 31, 2020. Core deposits, which include transaction deposits, money market accounts and CDs below $250,000, represented 91% of total deposits at March 31, 2021, compared to 90% at December 31, 2020 and 82% at March 31, 2020. The Company's loan to deposit ratio was 75% at March 31, 2021 compared to 79% at December 31, 2020 and 97% at March 31, 2020. 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, 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: Steve Leen Executive Vice President and Chief Financial Officer 408-831-5653 sleen@avidbank.com Avidbank Holdings, Inc. Consolidated Balance Sheets ($000, except share and per share amounts) (Unaudited) Assets 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Cash and due from banks $ 21,870 $ 14,327 $ 20,857 $ 16,797 $ 17,042 Due from Federal Reserve Bank 258,921 215,705 327,795 315,110 141,405 Total cash and cash equivalents 280,791 230,032 348,652 331,907 158,447 Investment securities - available for sale 184,504 163,631 40,316 43,601 44,983 Loans, net of deferred loan fees 1,027,336 993,483 1,011,137 1,002,029 965,684 Allowance for loan losses (12,558) (12,558) (12,443) (12,521) (11,540) Loans, net of allowance for loan losses 1,014,778 980,925 998,694 989,508 954,144 Bank owned life insurance 11,491 11,425 11,355 11,288 11,222 Premises and equipment, net 5,375 5,565 5,432 5,435 5,522 Other real estate owned - - - - - Accrued interest receivable & other assets 38,744 39,048 39,321 31,729 30,812 Total assets $ 1,535,683 $ 1,430,626 $ 1,443,770 $ 1,413,468 $ 1,205,130 Liabilities Non-interest-bearing demand deposits $ 702,785 $ 665,096 $ 671,663 $ 621,777 $ 477,404 Interest bearing transaction accounts 27,863 25,390 24,808 26,837 25,104 Money market and savings accounts 499,507 419,038 382,394 382,776 292,051 Time deposits 133,314 144,230 189,529 218,634 199,841 Total deposits 1,363,469 1,253,754 1,268,394 1,250,024 994,400 FHLB advances - - - - 50,000 Subordinated debt, net 21,601 21,565 21,571 21,540 21,509 Other liabilities 23,294 27,383 28,409 19,475 19,806 Total liabilities 1,408,364 1,302,702 1,318,374 1,291,039 1,085,715 Shareholders' equity Common stock/additional paid-in capital 71,152 70,721 70,595 70,012 69,444 Retained earnings 59,044 56,537 53,773 51,414 49,345 Accumulated other comprehensive income (loss) (2,877) 666 1,028 1,003 626 Total shareholders' equity 127,319 127,924 125,396 122,429 119,415 Total liabilities and shareholders' equity $ 1,535,683 $ 1,430,626 $ 1,443,770 $ 1,413,468 $ 1,205,130 Capital ratios Tier 1 leverage ratio 8.87 % 8.67 % 8.79 % 9.16 % 10.64 % Common equity tier 1 capital ratio 10.38 % 10.35 % 10.33 % 10.28 % 10.33 % Tier 1 risk-based capital ratio 10.38 % 10.35 % 10.33 % 10.28 % 10.33 % Total risk-based capital ratio 13.14 % 13.15 % 13.19 % 13.19 % 13.24 % Book value per common share $ 20.42 $ 20.74 $ 20.37 $ 19.92 $ 19.46 Total common shares outstanding 6,236,392 6,168,313 6,155,265 6,144,578 6,136,189 Other Ratios Non-interest bearing deposits to total deposits 51.5 % 53.0 % 53.0 % 49.7 % 48.0 % Core deposits to total deposits 91.3 % 90.0 % 86.7 % 84.3 % 82.2 % Loan to deposit ratio 75.3 % 79.2 % 79.7 % 80.2 % 97.1 % Allowance for loan losses to total loans 1.22 % 1.26 % 1.23 % 1.25 % 1.20 % Avidbank Holdings, Inc. Condensed Consolidated Statements of Income ($000, except share and per share amounts) (Unaudited) Quarter Ended 3/31/21 12/31/20 3/31/20 Interest and fees on loans and leases $ 12,116 $ 12,732 $ 12,175 Interest on investment securities 699 191 306 Other interest income 48 77 295 Total interest income 12,863 13,000 12,776 Deposit interest expense 642 922 1,385 Other interest expense 310 309 311 Total interest expense 952 1,231 1,696 Net interest income 11,911 11,769 11,080 Provision for loan losses 75 115 273 Net interest income after provision for loan losses 11,836 11,654 10,807 Service charges, fees and other income 622 638 743 Income from bank owned life insurance 67 69 66 Gain on sale of assets 22 - 0 Total non-interest income 711 707 809 Compensation and benefit expenses 6,476 5,972 5,876 Occupancy and equipment expenses 1,071 1,139 942 Other operating expenses 1,496 1,485 1,416 Total non-interest expense 9,043 8,596 8,234 Income before income taxes 3,504 3,765 3,382 Provision for income taxes 997 1,001 947 Net income $ 2,507 $ 2,764 $ 2,435 Basic earnings per common share $ 0.43 $ 0.47 $ 0.42 Diluted earnings per common share $ 0.42 $ 0.46 $ 0.41 Average common shares outstanding 5,864,976 5,874,617 5,836,045 Average common fully diluted shares 6,020,336 6,000,688 5,953,208 Annualized returns: Return on average assets 0.69 % 0.75 % 0.88 % Return on average common equity 7.89 % 8.67 % 8.27 % Net interest margin 3.44 % 3.33 % 4.21 % Cost of funds 0.29 % 0.37 % 0.70 % Efficiency ratio 71.64 % 68.90 % 69.26 % Avidbank Holdings, Inc. Credit Trends ($000) (Unaudited) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Allowance for Loan Losses Balance, beginning of quarter $ 12,558 $ 12,443 $ 12,521 $ 11,540 $ 11,267 Provision for loan losses, quarterly 75 115 303 1,011 273 Charge-offs, quarterly (75 ) - (380 ) (31 ) - Recoveries, quarterly - - - - - Balance, end of quarter $ 12,558 $ 12,558 $ 12,443 $ 12,521 $ 11,540 Nonperforming Assets Loans accounted for on a non-accrual basis $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 3,367 3,547 331 1,080 3,902 Other real estate owned - - - - - Nonperforming assets $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Nonperforming Loans by Type: Commercial $ 470 $ 618 $ 331 $ 1,080 $ 1,665 Commercial Real Estate Loans 2,897 2,929 - - 2,237 Residential Real Estate Loans - - - - - Construction Loans - - - - - Consumer Loans - - - - - Total Nonperforming loans $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.22 % 1.26 % 1.23 % 1.25 % 1.20 % ALLL to nonperforming loans 373.03 % 354.00 % 3759.27 % 1159.33 % 295.78 % Nonperforming assets to total assets 0.22 % 0.25 % 0.02 % 0.08 % 0.32 % Nonperforming loans to total loans 0.33 % 0.36 % 0.03 % 0.11 % 0.40 % Net quarterly charge-offs to total loans 0.01 % 0.00 % 0.04 % 0.00 % 0.00 % SOURCE: Avidbank Holdings, Inc. 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Avidbank Holdings, Inc. Announces Net Income of $2,507,000 for the First Quarter of 2021 By: Avidbank Holdings, Inc. via AccessWire April 29, 2021 at 06:00 AM EDT SAN JOSE, CA / ACCESSWIRE / April 29, 2021 / Avidbank Holdings, Inc. ("the Company") (OTC Pink:AVBH), a bank holding company and the parent company of Avidbank ("the Bank"), an independent full-service commercial bank serving businesses and individuals primarily in Northern California, announced unaudited consolidated net income of $2,507,000 for the first quarter of 2021 compared to $2,435,000 for the same period in 2020. First Quarter 2021 Financial Highlights Total interest income was $12,863,000 for the first quarter of 2021, an increase of $87,000 over the $12,776,000 we recorded in the first quarter of 2020. The 0.7% increase over the prior year quarter reflects year over year loan growth offset by declining loan yields, but augmented by increased investment securities income. Net income was $2,507,000 for the first quarter of 2021, compared to $2,435,000 for the first quarter of 2020. Results for the first quarter of 2021 were affected by the full impact of the 150 basis point Federal Reserve rate cut in March 2020 which caused average loan yields to drop 9% from 5.34% to 4.87%. Diluted earnings per common share were $0.42 for the first quarter of 2021, compared to $0.41 for the first quarter of 2020. Total assets grew by 7% in the first three months of 2021, ending the first quarter at $1.5 billion. Total loans net of deferred fees grew by 3% in the first three months of 2021, ending the first quarter at $1.0 billion. Total deposits grew by 9% in the first three months of 2021, ending the first quarter at $1.4 billion. The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 8.87%, a Tier 1 Risk Based Capital and Common Equity Tier 1 Risk Based Capital Ratio of 10.38%, and a Total Risk Based Capital Ratio of 13.14%. Mark D. Mordell, Chairman and Chief Executive Officer, stated, "Net interest income increased to $11.9 million in the first quarter of 2021, an 8% increase over the first quarter of 2020 due to a drop in deposit interest expense and an increase in investment securities income. Our loan growth for the last 12 months was offset by declining loan yields. Loans grew $34 million in the first quarter, primarily as a result of our participation in the latest round of the Small Business Administration (SBA) Paycheck Protection Program (PPP). The large amount of liquidity released into the economy from government stimulus programs has slowed the pace of lending in some of our divisions. We have maintained our credit quality and reduced our level of criticized and classified loans since the beginning of the pandemic. We currently have no outstanding COVID-19 related loan modifications. We have selectively added key staff positions to build our infrastructure and accommodate our growth. During certain phases of our growth strategy, our efficiency and returns have temporarily dropped, but we strongly believe it is in the long-term interest of the Company to stay the course and work on improving our metrics. Our focus will continue to be employee health and safety along with our fiduciary responsibility to our clients and shareholders. For those reasons, we continue to be cautious in our plans for returning employees to the workplace." Mr. Mordell continued, "Non-interest expense increased by $809,000 to $9,043,000 in the first quarter of 2021, up from $8,234,000 in the first quarter of 2020, primarily due to increased investments in personnel across the entire Bank. Our efficiency ratio increased to 71.6% in the first quarter of 2021, up from 69.3% in the first quarter of 2020, as a result of increased staffing costs and a small drop in loan interest income from the decline in loan yields. Total deposits increased by $109 million in the first quarter of 2021 compared to the fourth quarter of 2020 and increased by $369 million from the first quarter of 2020. The increase in deposits from December 31, 2020 was due to higher money market and demand deposit accounts. The increase in deposits over the first quarter of 2020 was due to an increase in demand deposits and money market accounts, partially offset by lower brokered deposits. Our net interest margin dropped to 3.44% in the first quarter of 2021, compared to 4.21% in the first quarter of 2020 primarily due to a drop in loan and investment yields and an increase in overnight funds. Return on assets was 0.69% in the first quarter of 2021 compared to 0.75% in the fourth quarter of 2020 and 0.88% in the first quarter of 2020." Results for the quarter ended March 31, 2021 For the three months ended March 31, 2021, interest and fees on loans were $12.1 million, a decrease of $59,000 or 0.5% compared to the first quarter of 2020. The decrease was primarily the result of higher average loans outstanding offset by lower loan yields. Average total loans outstanding for the quarter ended March 31, 2021 were $1.0 billion, compared to $917 million for the same quarter in 2020, an increase of 10%. Average earning assets were $1.4 billion in the first quarter of 2021, a 33% increase over the first quarter of the prior year. Loans made up 72% of average earning assets at the end of the first quarter of 2021 compared to 87% at the end of the first quarter of 2020. Net interest margin was 3.44% for the first quarter of 2021, compared to 4.21% for the first quarter of 2020. A loan loss provision of $75,000 was taken in the first quarter of 2021 compared with a $273,000 loan loss provision taken in the first quarter of 2020. Non-interest income was $711,000 in the first quarter of 2021, a decrease of $98,000 or 12% compared to the first quarter of 2020. Investment fund income was $50,000 in the first three months of 2021 compared to $214,000 in the first three months of 2020. Offsetting this decline, income from service charges on deposit accounts increased by $52,000 in the first three months of 2021. Non-interest expense increased by $809,000 in the first quarter of 2021 to $9,043,000 compared to $8,234,000 for the first quarter of 2020. This increase was primarily due to higher compensation costs related to increased staffing. The Company's full-time equivalent employees at March 31, 2021 and 2020 were 126 and 116, respectively. The Company's efficiency ratio increased from 69.3% in the first quarter of 2020 to 71.6% in the first quarter of 2021 due to increased expenses from the growth in staff and a small drop in loan interest income from the decline in loan yields. Balance Sheet Total assets were $1.536 billion as of March 31, 2021, compared to $1.431 billion at December 31, 2020 and $1.205 billion at March 31, 2020. The increase in total assets of $105 million, or 7%, from December 31, 2020 was primarily due to increased deposits causing an increase in overnight funds with the Federal Reserve. Investments also increased $21 million due to the purchase of mortgage-backed securities with excess funds. The Company reported loans net of deferred fees at March 31, 2021 of $1.027 billion, which represented an increase of $34 million, or 3%, from $0.993 billion at December 31, 2020, and an increase of $61 million, or 6%, over $0.966 billion at March 31, 2020. The increase in total loans from December 31, 2020 was primarily a result of an increase in Commercial loans through the SBA PPP and increased Multi-Family loans, partially offset by a decrease in Specialty Finance loans. The increase in loans from March 31, 2020 was due to higher Construction, Commercial, CRE and Venture Lending loans, partially offset by lower Specialty Finance loans. "We had $3.4 million in three non-accrual loans on March 31, 2021, compared to a balance of $3.5 million at the end of the prior quarter. Two of the non-accrual loans totaling $3.2 million are secured by commercial real estate with a very low loan to value," observed Mr. Mordell. The Company's total deposits were $1.363 billion as of March 31, 2021, which represented an increase of $109 million, or 9%, compared to $1.254 billion at December 31, 2020 and an increase of $369 million, or 37%, compared to $994 million at March 31, 2020. The increase in deposits from December 31, 2020 was due to higher money market and demand deposit accounts. The increase from March 31, 2020 was due to an increase in demand deposits and money market accounts, partially offset by lower brokered deposits. The Company had no FHLB advances outstanding as of March 31, 2021 and December 31, 2020 and $50 million outstanding as of March 31, 2020. Demand and interest bearing transaction deposits represented 54% of total deposits at March 31, 2021, compared to 55% at December 31, 2020 and 51% at March 31, 2020. Core deposits, which include transaction deposits, money market accounts and CDs below $250,000, represented 91% of total deposits at March 31, 2021, compared to 90% at December 31, 2020 and 82% at March 31, 2020. The Company's loan to deposit ratio was 75% at March 31, 2021 compared to 79% at December 31, 2020 and 97% at March 31, 2020. 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, 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: Steve Leen Executive Vice President and Chief Financial Officer 408-831-5653 sleen@avidbank.com Avidbank Holdings, Inc. Consolidated Balance Sheets ($000, except share and per share amounts) (Unaudited) Assets 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Cash and due from banks $ 21,870 $ 14,327 $ 20,857 $ 16,797 $ 17,042 Due from Federal Reserve Bank 258,921 215,705 327,795 315,110 141,405 Total cash and cash equivalents 280,791 230,032 348,652 331,907 158,447 Investment securities - available for sale 184,504 163,631 40,316 43,601 44,983 Loans, net of deferred loan fees 1,027,336 993,483 1,011,137 1,002,029 965,684 Allowance for loan losses (12,558) (12,558) (12,443) (12,521) (11,540) Loans, net of allowance for loan losses 1,014,778 980,925 998,694 989,508 954,144 Bank owned life insurance 11,491 11,425 11,355 11,288 11,222 Premises and equipment, net 5,375 5,565 5,432 5,435 5,522 Other real estate owned - - - - - Accrued interest receivable & other assets 38,744 39,048 39,321 31,729 30,812 Total assets $ 1,535,683 $ 1,430,626 $ 1,443,770 $ 1,413,468 $ 1,205,130 Liabilities Non-interest-bearing demand deposits $ 702,785 $ 665,096 $ 671,663 $ 621,777 $ 477,404 Interest bearing transaction accounts 27,863 25,390 24,808 26,837 25,104 Money market and savings accounts 499,507 419,038 382,394 382,776 292,051 Time deposits 133,314 144,230 189,529 218,634 199,841 Total deposits 1,363,469 1,253,754 1,268,394 1,250,024 994,400 FHLB advances - - - - 50,000 Subordinated debt, net 21,601 21,565 21,571 21,540 21,509 Other liabilities 23,294 27,383 28,409 19,475 19,806 Total liabilities 1,408,364 1,302,702 1,318,374 1,291,039 1,085,715 Shareholders' equity Common stock/additional paid-in capital 71,152 70,721 70,595 70,012 69,444 Retained earnings 59,044 56,537 53,773 51,414 49,345 Accumulated other comprehensive income (loss) (2,877) 666 1,028 1,003 626 Total shareholders' equity 127,319 127,924 125,396 122,429 119,415 Total liabilities and shareholders' equity $ 1,535,683 $ 1,430,626 $ 1,443,770 $ 1,413,468 $ 1,205,130 Capital ratios Tier 1 leverage ratio 8.87 % 8.67 % 8.79 % 9.16 % 10.64 % Common equity tier 1 capital ratio 10.38 % 10.35 % 10.33 % 10.28 % 10.33 % Tier 1 risk-based capital ratio 10.38 % 10.35 % 10.33 % 10.28 % 10.33 % Total risk-based capital ratio 13.14 % 13.15 % 13.19 % 13.19 % 13.24 % Book value per common share $ 20.42 $ 20.74 $ 20.37 $ 19.92 $ 19.46 Total common shares outstanding 6,236,392 6,168,313 6,155,265 6,144,578 6,136,189 Other Ratios Non-interest bearing deposits to total deposits 51.5 % 53.0 % 53.0 % 49.7 % 48.0 % Core deposits to total deposits 91.3 % 90.0 % 86.7 % 84.3 % 82.2 % Loan to deposit ratio 75.3 % 79.2 % 79.7 % 80.2 % 97.1 % Allowance for loan losses to total loans 1.22 % 1.26 % 1.23 % 1.25 % 1.20 % Avidbank Holdings, Inc. Condensed Consolidated Statements of Income ($000, except share and per share amounts) (Unaudited) Quarter Ended 3/31/21 12/31/20 3/31/20 Interest and fees on loans and leases $ 12,116 $ 12,732 $ 12,175 Interest on investment securities 699 191 306 Other interest income 48 77 295 Total interest income 12,863 13,000 12,776 Deposit interest expense 642 922 1,385 Other interest expense 310 309 311 Total interest expense 952 1,231 1,696 Net interest income 11,911 11,769 11,080 Provision for loan losses 75 115 273 Net interest income after provision for loan losses 11,836 11,654 10,807 Service charges, fees and other income 622 638 743 Income from bank owned life insurance 67 69 66 Gain on sale of assets 22 - 0 Total non-interest income 711 707 809 Compensation and benefit expenses 6,476 5,972 5,876 Occupancy and equipment expenses 1,071 1,139 942 Other operating expenses 1,496 1,485 1,416 Total non-interest expense 9,043 8,596 8,234 Income before income taxes 3,504 3,765 3,382 Provision for income taxes 997 1,001 947 Net income $ 2,507 $ 2,764 $ 2,435 Basic earnings per common share $ 0.43 $ 0.47 $ 0.42 Diluted earnings per common share $ 0.42 $ 0.46 $ 0.41 Average common shares outstanding 5,864,976 5,874,617 5,836,045 Average common fully diluted shares 6,020,336 6,000,688 5,953,208 Annualized returns: Return on average assets 0.69 % 0.75 % 0.88 % Return on average common equity 7.89 % 8.67 % 8.27 % Net interest margin 3.44 % 3.33 % 4.21 % Cost of funds 0.29 % 0.37 % 0.70 % Efficiency ratio 71.64 % 68.90 % 69.26 % Avidbank Holdings, Inc. Credit Trends ($000) (Unaudited) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Allowance for Loan Losses Balance, beginning of quarter $ 12,558 $ 12,443 $ 12,521 $ 11,540 $ 11,267 Provision for loan losses, quarterly 75 115 303 1,011 273 Charge-offs, quarterly (75 ) - (380 ) (31 ) - Recoveries, quarterly - - - - - Balance, end of quarter $ 12,558 $ 12,558 $ 12,443 $ 12,521 $ 11,540 Nonperforming Assets Loans accounted for on a non-accrual basis $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 3,367 3,547 331 1,080 3,902 Other real estate owned - - - - - Nonperforming assets $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Nonperforming Loans by Type: Commercial $ 470 $ 618 $ 331 $ 1,080 $ 1,665 Commercial Real Estate Loans 2,897 2,929 - - 2,237 Residential Real Estate Loans - - - - - Construction Loans - - - - - Consumer Loans - - - - - Total Nonperforming loans $ 3,367 $ 3,547 $ 331 $ 1,080 $ 3,902 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.22 % 1.26 % 1.23 % 1.25 % 1.20 % ALLL to nonperforming loans 373.03 % 354.00 % 3759.27 % 1159.33 % 295.78 % Nonperforming assets to total assets 0.22 % 0.25 % 0.02 % 0.08 % 0.32 % Nonperforming loans to total loans 0.33 % 0.36 % 0.03 % 0.11 % 0.40 % Net quarterly charge-offs to total loans 0.01 % 0.00 % 0.04 % 0.00 % 0.00 % SOURCE: Avidbank Holdings, Inc. 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