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 $12.3 Million for the Year Ended December 31, 2021 By: Avidbank Holdings, Inc. via AccessWire January 31, 2022 at 06:00 AM EST SAN JOSE, CA / ACCESSWIRE / January 31, 2022 / 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 $12.3 million for the year ended December 31, 2021 compared to $9.6 million, or a 28% increase for the year ended December 31, 2020.Full Year and Fourth Quarter 2021 Financial HighlightsNet income was $12.3 million in 2021 compared to $9.6 million in 2020. Net income in 2021 benefited from a $735,000 gain on the sale of investment securities and $711,000 of income from an investment fund. Net income in 2021 was reduced by a $3.6 million loan loss provision while a $1.7 million loan loss provision was recorded in 2020. Net interest income was $51.0 million in 2021, an increase of $6.1 million or 13.5% compared to the figure recorded in 2020.Diluted earnings per common share were $2.02 in 2021, compared to $1.61 in 2020. Weighted average common fully diluted shares outstanding were 6,062,482 and 5,967,780 in 2021 and 2020, respectively.Total interest income was $15.3 million for the fourth quarter of 2021, an increase of $2.3 million over the $13.0 million we recorded in the fourth quarter of 2020. The 17.5% increase over the prior year quarter reflects year over year loan growth and increased investment securities income.Net income was $2.5 million for the fourth quarter of 2021, compared to $2.8 million for the fourth quarter of 2020. Results for the fourth quarter of 2021 were affected by a $3.3 million loan loss provision while a $115,000 loan loss provision was taken in the fourth quarter of 2020.Diluted earnings per common share were $0.42 for the fourth quarter of 2021, compared to $0.46 for the fourth quarter of 2020.Total assets grew by 51.2% in 2021, ending the fourth quarter at $2.16 billion.Total loans net of deferred fees and any SBA PPP funding grew by 25.1% in 2021, ending the fourth quarter at $1.22 billion.Total deposits grew by 57.9% in 2021, ending the fourth quarter at $1.98 billion.The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 6.89%, a Tier 1 Risk-Based Capital and Common Equity Tier 1 Risk-Based Capital Ratio of 8.90%, and a Total Risk-Based Capital Ratio of 11.11%.Mark D. Mordell, Chairman and Chief Executive Officer, stated, "The investments we have made in personnel and infrastructure over the past several years have generated the returns we had planned for in 2021 as Avidbank achieved record levels of loans, deposits and total assets. These results were made possible by the outstanding teamwork and energy of our dedicated staff coming together to overcome the disruptions caused by the pandemic. Net interest income increased to $14.3 million in the fourth quarter of 2021, a 21.6% increase over the fourth quarter of 2020, primarily due to increases in loan interest income and investment securities income. Loans outstanding increased in the fourth quarter of 2021 due to new business generated by all of our lending divisions. Additionally, we increased our investment portfolio $103.5 million in the fourth quarter of 2021 with additional purchases of mortgage-backed securities."Mr. Mordell continued, "Non-interest expense increased by $1.1 million to $9.5 million in the fourth quarter of 2021, up from $8.5 million in the third quarter of 2021, as a result of higher compensation and benefits costs. Our efficiency ratio decreased to 58.3% in the fourth quarter of 2021, down from 68.9% in the fourth quarter of 2020, as a result of increased net interest income, higher non-interest income and controlling costs. Total deposits increased by $331.8 million in the fourth quarter of 2021 compared to the third quarter of 2021 and increased by $725.7 million from the fourth quarter of 2020. The increase in deposits from September 30, 2021, was due to higher money market and demand deposit accounts, as was the increase in deposits over the fourth quarter of 2020. Our net interest margin dropped to 2.90% in the fourth quarter of 2021, compared to 2.98% in the third quarter of 2021, primarily due to a large surplus in overnight funds and a drop in loan and investment yields. Annualized return on assets was affected by a $3.0 million charge-off taken on a single commercial loan in the fourth quarter of 2021. Return on assets was 0.49% in the fourth quarter of 2021 compared to 0.80% in the third quarter of 2021 and 0.75% in the fourth quarter of 2020."Mr. Mordell concluded, "We are very pleased with the progress we have made in 2021 as our team has been continuing to adapt to the "Covid" environment. We continue to maintain a hybrid work environment in our offices with the majority of staff splitting their time between the office and remote work at home, and have had a growing number working full-time in the office. 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."Results for the twelve months ended December 31, 2021Net interest income before provision for loan losses was $51.0 million in 2021, an increase of $6.1 million or 13.5% over the previous year. Reduced interest expense and higher investment income were the primary reasons for the increase. Average loans net of deferred fees were $1.05 billion in 2021 compared to $981.9 million in 2020. Average earning assets were $1.63 billion in 2021, a 28.3% increase over the prior year figure of $1.27 billion. Net interest margin was 3.12% in 2021 compared to 3.53% for 2020. The decrease in net interest margin was primarily caused by an increase in overnight funds and a decline in loan and investment yields. A $3.6 million loan loss provision was taken in 2021 compared to a $1.7 million loan loss provision recorded in 2020. We had $3.1 million of charge-offs and no recoveries in 2021 compared to $411,000 of charge-offs and no recoveries for 2020.Non-interest income was $5.3 million in 2021, an increase of $2.7 million or 102% compared to $2.6 million in 2020, reflecting a $735,000 gain on the sale of investments, income of $711,000 from an investment fund and increased service charge income.Non-interest expense increased by $2.4 million to $35.6 million in 2021 compared to $33.2 million in 2020 due primarily to increased investments in personnel across the entire Bank.The effective tax rate was 28.5% in 2021 compared to 24.2% for the same period in 2020. The effective tax rate in 2020 reflected the favorable impact of affordable housing tax credit investments and the re-allocation of income taxes to states outside of California.Results for the quarter ended December 31, 2021For the three months ended December 31, 2021, interest and fees on loans were $13.9 million, an increase of $1.2 million or 9.4% compared to the fourth quarter of 2020. The increase was primarily the result of higher loan balances partially offset by lower loan yields. Average loans net of deferred fees for the quarter ended December 31, 2021 were $1.15 billion, compared to $1.00 billion for the same quarter in 2020, an increase of 15.6%. Average earning assets were $1.96 billion in the fourth quarter of 2021, a 39.1% increase over the fourth quarter of the prior year. Loans made up 59% of average earning assets at the end of the fourth quarter of 2021 compared to 71% at the end of the fourth quarter of 2020. Net interest margin was 2.90% for the fourth quarter of 2021, compared to 3.33% for the fourth quarter of 2020. A $3.3 million loan loss provision was taken in the fourth quarter of 2021 compared with a $115,000 loan loss provision taken in the fourth quarter of 2020.Non-interest income was $2.1 million in the fourth quarter of 2021, an increase of $1.4 million or 192.1% compared to the fourth quarter of 2020. The increase resulted from increased income from an investment fund of $711,000, proceeds from a warrant sale of $456,000 and increased BOLI income.Non-interest expense increased by $953,000 or 11.1% in the fourth quarter of 2021 to $9.5 million compared to $8.6 million for the fourth quarter of 2020. This increase was primarily due to increases in compensation and benefit costs. The Company's full-time equivalent employees at December 31, 2021 and 2020 were 126 for both periods. The Company's efficiency ratio decreased from 68.9% in the fourth quarter of 2020 to 58.3% in the fourth quarter of 2021 primarily due to increased loan and investment interest income, higher non-interest income and controlled expenses.Balance SheetTotal assets were $2.16 billion as of December 31, 2021, compared to $1.83 billion at September 30, 2021 and $1.43 billion at December 31, 2020. The increase in total assets of $334.5 million, or 18.3%, from September 30, 2021 was primarily due to increased deposits funding increases in loans, investments and overnight funds with the Federal Reserve. Investments increased by $103.5 million due to the purchase of mortgage-backed securities with excess funds. The Company reported loans net of deferred fees at December 31, 2021 of $1.22 billion, which represented an increase of $150.2 million, or 14%, from $1.07 billion at September 30, 2021, and an increase of $229.9 million, or 23.1%, over $0.99 billion at December 31, 2020. The increase in loans from September 30, 2021 was primarily the result of an increase in Specialty Finance, CRE and Venture Lending loans. The increase in loans from December 31, 2020 was due to higher CRE, Specialty Finance and Multi-Family loans."We had $3.2 million in three non-accrual loans on December 31, 2021, down from a balance of $3.5 million at the end of 2020. Two of the non-accrual loans totaling $3.1 million are secured by commercial real estate with a very low loan to value," observed Mr. Mordell.The Company's total deposits were $1.98 billion as of December 31, 2021, which represented an increase of $331.8 million, or 20.1%, compared to $1.65 billion at September 30, 2021 and an increase of $725.7 million, or 57.9%, compared to $1.25 billion at December 31, 2020. The increase in deposits from September 30, 2021 was due to higher money market and demand deposit accounts. The increase in deposits from December 31, 2020 was also due to an increase in money market and demand deposit accounts. The Company had no FHLB advances outstanding as of December 31, 2021, September 30, 2021 or December 31, 2020.Demand and interest bearing transaction deposits represented 53% of total deposits at December 31, 2021, compared to 56% at September 30, 2021 and 55% at December 31, 2020. Core deposits, which include transaction deposits, money market accounts and CDs below $250,000, represented 96% of total deposits at December 31, 2021, compared to 94% at September 30, 2021 and 90% at December 31, 2020. The Company's loan to deposit ratio was 62% at December 31, 2021 compared to 65% at September 30, 2021 and 79% at December 31, 2020.About AvidbankAvidbank 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 LeenExecutive Vice President and Chief Financial Officer408-831-5653sleen@avidbank.comAvidbank Holdings, Inc.Consolidated Balance Sheets($000, except share and per share amounts) (Unaudited) Assets 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Cash and due from banks $29,616 $34,864 $27,977 $21,870 $14,327 Due from Federal Reserve Bank 463,727 378,380 308,596 258,921 215,705 Total cash and cash equivalents 493,343 413,244 336,573 280,791 230,032 Investment securities - available for sale 380,170 276,670 208,482 184,504 163,631 Loans, net of deferred loan fees 1,223,344 1,073,132 1,014,750 1,027,336 993,483 Allowance for loan losses (13,054) (12,775) (12,558) (12,558) (12,558)Loans, net of allowance for loan losses 1,210,290 1,060,357 1,002,192 1,014,778 980,925 Bank owned life insurance 31,875 31,663 11,559 11,491 11,425 Premises and equipment, net 4,565 4,913 5,138 5,375 5,565 Other real estate owned - - - - - Accrued interest receivable & other assets 42,235 41,174 40,329 38,744 39,048 Total assets $2,162,478 $1,828,021 $1,604,273 $1,535,683 $1,430,626 Liabilities Non-interest-bearing demand deposits $993,156 $872,972 $728,522 $702,785 $665,096 Interest bearing transaction accounts 50,674 49,722 30,538 27,863 25,390 Money market and savings accounts 845,718 614,992 541,145 499,507 419,038 Time deposits 89,862 109,927 126,972 133,314 144,230 Total deposits 1,979,410 1,647,613 1,427,177 1,363,469 1,253,754 Subordinated debt, net 21,703 21,671 21,636 21,601 21,565 Other liabilities 24,265 23,940 23,229 23,294 27,383 Total liabilities 2,025,378 1,693,224 1,472,042 1,408,364 1,302,702 Shareholders' equity Common stock/additional paid-in capital 72,799 72,124 71,542 71,152 70,721 Retained earnings 68,801 66,267 62,693 59,044 56,537 Accumulated other comprehensive (loss) income (4,500) (3,594) (2,004) (2,877) 666 Total shareholders' equity 137,100 134,797 132,231 127,319 127,924 Total liabilities and shareholders' equity $2,162,478 $1,828,021 $1,604,273 $1,535,683 $1,430,626 Capital ratios Tier 1 leverage ratio 6.89% 7.81% 8.64% 8.87% 8.67%Common equity tier 1 capital ratio 8.90% 9.94% 10.57% 10.38% 10.35%Tier 1 risk-based capital ratio 8.90% 9.94% 10.57% 10.38% 10.35%Total risk-based capital ratio 11.11% 12.44% 13.30% 13.14% 13.15% Book value per common share $21.91 $21.55 $21.26 $20.42 $20.74 Total common shares outstanding 6,256,682 6,255,752 6,220,872 6,236,392 6,168,313 Other Ratios Non-interest bearing deposits to total deposits 50.2% 53.0% 51.0% 51.5% 53.0%Core deposits to total deposits 96.0% 94.0% 91.9% 91.3% 90.0%Loan to deposit ratio 61.8% 65.1% 71.1% 75.3% 79.2%Allowance for loan losses to total loans 1.07% 1.19% 1.24% 1.22% 1.26% Quarterly Average Balances ($000s) Loans, net of deferred loan fees $1,152,641 $1,026,812 $1,022,364 $1,008,379 $997,442 Earning assets 1,957,599 1,685,193 1,485,107 1,404,752 1,407,390 Total assets 2,054,545 1,771,292 1,554,049 1,468,597 1,467,588 Total deposits 1,866,704 1,589,384 1,376,736 1,291,767 1,290,320 Total shareholders' equity 138,589 135,721 131,300 128,844 126,840 Avidbank Holdings, Inc.Condensed Consolidated Statements of Income($000, except share and per share amounts) (Unaudited) Quarter Ended Year-to-Date 12/31/21 9/30/21 12/31/20 12/31/21 12/31/20 Interest and fees on loans $13,927 $12,533 $12,732 $50,823 $49,517 Interest on investment securities 1,154 946 191 3,606 901 Other interest income 193 156 77 456 482 Total interest income 15,274 13,635 13,000 54,885 50,900 Deposit interest expense 655 671 922 2,618 4,712 Other interest expense 307 310 309 1,238 1,243 Total interest expense 962 981 1,231 3,856 5,955 Net interest income 14,312 12,654 11,769 51,029 44,945 Provision for loan losses 3,279 217 115 3,572 1,702 Net interest income after provision for loan losses 11,033 12,437 11,654 47,457 43,243 Service charges, fees and other income 1,509 894 638 3,763 2,362 Income from bank owned life insurance 213 103 69 451 269 Gain on sale of assets 343 - - 1,099 - Total non-interest income 2,065 997 707 5,313 2,631 Compensation and benefit expenses 6,920 5,860 5,972 25,256 23,233 Occupancy and equipment expenses 924 1,066 1,139 4,078 4,123 Other operating expenses 1,705 1,526 1,485 6,282 5,811 Total non-interest expense 9,549 8,452 8,596 35,616 33,167 Income before income taxes 3,549 4,982 3,765 17,154 12,707 Provision for income taxes 1,015 1,408 1,001 4,890 3,080 Net income $2,534 $3,574 $2,764 $12,264 $9,627 Basic earnings per common share $0.43 $0.60 $0.47 $2.08 $1.64 Diluted earnings per common share $0.42 $0.59 $0.46 $2.02 $1.61 Average common shares outstanding 5,904,446 5,898,208 5,874,617 5,890,216 5,859,547 Average common fully diluted shares 6,101,778 6,072,085 6,000,688 6,062,482 5,967,780 Annualized returns: Return on average assets 0.49% 0.80% 0.75% 0.72% 0.72%Return on average common equity 7.25% 10.45% 8.67% 9.18% 7.86% Net interest margin 2.90% 2.98% 3.33% 3.12% 3.53%Cost of funds 0.20% 0.24% 0.37% 0.25% 0.50%Efficiency ratio 58.31% 61.91% 68.90% 63.21% 69.71%Avidbank Holdings, Inc. Credit Trends ($000) (Unaudited) 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Allowance for Loan Losses Balance, beginning of quarter $12,775 $12,558 $12,558 $12,558 $12,443 Provision for loan losses, quarterly 3,279 217 - 75 115 Charge-offs, quarterly (3,000) - - (75) - Recoveries, quarterly - - - - - Balance, end of quarter $13,054 $12,775 $12,558 $12,558 $12,558 Nonperforming Assets Loans accounted for on a non-accrual basis $3,244 $3,285 $3,326 $3,367 $3,547 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 3,244 3,285 3,326 3,367 3,547 Other real estate owned - - - - - Nonperforming assets $3,244 $3,285 $3,326 $3,367 $3,547 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $3,244 $3,285 $3,326 $3,367 $3,547 Nonperforming Loans by Type: Commercial $448 $456 $463 $470 $618 Commercial Real Estate Loans 2,796 2,829 2,863 2,897 2,929 Total Nonperforming loans $3,244 $3,285 $3,326 $3,367 $3,547 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.07% 1.19% 1.24% 1.22% 1.26%ALLL to nonperforming loans 402.40% 388.89% 377.59% 373.03% 354.00%Nonperforming assets to total assets 0.15% 0.18% 0.21% 0.22% 0.25%Nonperforming loans to total loans 0.27% 0.31% 0.33% 0.33% 0.36%Net quarterly charge-offs to total loans 0.25% 0.00% 0.00% 0.01% 0.00%SOURCE: Avidbank Holdings, Inc.View source version on accesswire.com: https://www.accesswire.com/686228/Avidbank-Holdings-Inc-Announces-Net-Income-of-123-Million-for-the-Year-Ended-December-31-2021 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Avidbank Holdings, Inc. Announces Net Income of $12.3 Million for the Year Ended December 31, 2021 By: Avidbank Holdings, Inc. via AccessWire January 31, 2022 at 06:00 AM EST SAN JOSE, CA / ACCESSWIRE / January 31, 2022 / 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 $12.3 million for the year ended December 31, 2021 compared to $9.6 million, or a 28% increase for the year ended December 31, 2020.Full Year and Fourth Quarter 2021 Financial HighlightsNet income was $12.3 million in 2021 compared to $9.6 million in 2020. Net income in 2021 benefited from a $735,000 gain on the sale of investment securities and $711,000 of income from an investment fund. Net income in 2021 was reduced by a $3.6 million loan loss provision while a $1.7 million loan loss provision was recorded in 2020. Net interest income was $51.0 million in 2021, an increase of $6.1 million or 13.5% compared to the figure recorded in 2020.Diluted earnings per common share were $2.02 in 2021, compared to $1.61 in 2020. Weighted average common fully diluted shares outstanding were 6,062,482 and 5,967,780 in 2021 and 2020, respectively.Total interest income was $15.3 million for the fourth quarter of 2021, an increase of $2.3 million over the $13.0 million we recorded in the fourth quarter of 2020. The 17.5% increase over the prior year quarter reflects year over year loan growth and increased investment securities income.Net income was $2.5 million for the fourth quarter of 2021, compared to $2.8 million for the fourth quarter of 2020. Results for the fourth quarter of 2021 were affected by a $3.3 million loan loss provision while a $115,000 loan loss provision was taken in the fourth quarter of 2020.Diluted earnings per common share were $0.42 for the fourth quarter of 2021, compared to $0.46 for the fourth quarter of 2020.Total assets grew by 51.2% in 2021, ending the fourth quarter at $2.16 billion.Total loans net of deferred fees and any SBA PPP funding grew by 25.1% in 2021, ending the fourth quarter at $1.22 billion.Total deposits grew by 57.9% in 2021, ending the fourth quarter at $1.98 billion.The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 6.89%, a Tier 1 Risk-Based Capital and Common Equity Tier 1 Risk-Based Capital Ratio of 8.90%, and a Total Risk-Based Capital Ratio of 11.11%.Mark D. Mordell, Chairman and Chief Executive Officer, stated, "The investments we have made in personnel and infrastructure over the past several years have generated the returns we had planned for in 2021 as Avidbank achieved record levels of loans, deposits and total assets. These results were made possible by the outstanding teamwork and energy of our dedicated staff coming together to overcome the disruptions caused by the pandemic. Net interest income increased to $14.3 million in the fourth quarter of 2021, a 21.6% increase over the fourth quarter of 2020, primarily due to increases in loan interest income and investment securities income. Loans outstanding increased in the fourth quarter of 2021 due to new business generated by all of our lending divisions. Additionally, we increased our investment portfolio $103.5 million in the fourth quarter of 2021 with additional purchases of mortgage-backed securities."Mr. Mordell continued, "Non-interest expense increased by $1.1 million to $9.5 million in the fourth quarter of 2021, up from $8.5 million in the third quarter of 2021, as a result of higher compensation and benefits costs. Our efficiency ratio decreased to 58.3% in the fourth quarter of 2021, down from 68.9% in the fourth quarter of 2020, as a result of increased net interest income, higher non-interest income and controlling costs. Total deposits increased by $331.8 million in the fourth quarter of 2021 compared to the third quarter of 2021 and increased by $725.7 million from the fourth quarter of 2020. The increase in deposits from September 30, 2021, was due to higher money market and demand deposit accounts, as was the increase in deposits over the fourth quarter of 2020. Our net interest margin dropped to 2.90% in the fourth quarter of 2021, compared to 2.98% in the third quarter of 2021, primarily due to a large surplus in overnight funds and a drop in loan and investment yields. Annualized return on assets was affected by a $3.0 million charge-off taken on a single commercial loan in the fourth quarter of 2021. Return on assets was 0.49% in the fourth quarter of 2021 compared to 0.80% in the third quarter of 2021 and 0.75% in the fourth quarter of 2020."Mr. Mordell concluded, "We are very pleased with the progress we have made in 2021 as our team has been continuing to adapt to the "Covid" environment. We continue to maintain a hybrid work environment in our offices with the majority of staff splitting their time between the office and remote work at home, and have had a growing number working full-time in the office. 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."Results for the twelve months ended December 31, 2021Net interest income before provision for loan losses was $51.0 million in 2021, an increase of $6.1 million or 13.5% over the previous year. Reduced interest expense and higher investment income were the primary reasons for the increase. Average loans net of deferred fees were $1.05 billion in 2021 compared to $981.9 million in 2020. Average earning assets were $1.63 billion in 2021, a 28.3% increase over the prior year figure of $1.27 billion. Net interest margin was 3.12% in 2021 compared to 3.53% for 2020. The decrease in net interest margin was primarily caused by an increase in overnight funds and a decline in loan and investment yields. A $3.6 million loan loss provision was taken in 2021 compared to a $1.7 million loan loss provision recorded in 2020. We had $3.1 million of charge-offs and no recoveries in 2021 compared to $411,000 of charge-offs and no recoveries for 2020.Non-interest income was $5.3 million in 2021, an increase of $2.7 million or 102% compared to $2.6 million in 2020, reflecting a $735,000 gain on the sale of investments, income of $711,000 from an investment fund and increased service charge income.Non-interest expense increased by $2.4 million to $35.6 million in 2021 compared to $33.2 million in 2020 due primarily to increased investments in personnel across the entire Bank.The effective tax rate was 28.5% in 2021 compared to 24.2% for the same period in 2020. The effective tax rate in 2020 reflected the favorable impact of affordable housing tax credit investments and the re-allocation of income taxes to states outside of California.Results for the quarter ended December 31, 2021For the three months ended December 31, 2021, interest and fees on loans were $13.9 million, an increase of $1.2 million or 9.4% compared to the fourth quarter of 2020. The increase was primarily the result of higher loan balances partially offset by lower loan yields. Average loans net of deferred fees for the quarter ended December 31, 2021 were $1.15 billion, compared to $1.00 billion for the same quarter in 2020, an increase of 15.6%. Average earning assets were $1.96 billion in the fourth quarter of 2021, a 39.1% increase over the fourth quarter of the prior year. Loans made up 59% of average earning assets at the end of the fourth quarter of 2021 compared to 71% at the end of the fourth quarter of 2020. Net interest margin was 2.90% for the fourth quarter of 2021, compared to 3.33% for the fourth quarter of 2020. A $3.3 million loan loss provision was taken in the fourth quarter of 2021 compared with a $115,000 loan loss provision taken in the fourth quarter of 2020.Non-interest income was $2.1 million in the fourth quarter of 2021, an increase of $1.4 million or 192.1% compared to the fourth quarter of 2020. The increase resulted from increased income from an investment fund of $711,000, proceeds from a warrant sale of $456,000 and increased BOLI income.Non-interest expense increased by $953,000 or 11.1% in the fourth quarter of 2021 to $9.5 million compared to $8.6 million for the fourth quarter of 2020. This increase was primarily due to increases in compensation and benefit costs. The Company's full-time equivalent employees at December 31, 2021 and 2020 were 126 for both periods. The Company's efficiency ratio decreased from 68.9% in the fourth quarter of 2020 to 58.3% in the fourth quarter of 2021 primarily due to increased loan and investment interest income, higher non-interest income and controlled expenses.Balance SheetTotal assets were $2.16 billion as of December 31, 2021, compared to $1.83 billion at September 30, 2021 and $1.43 billion at December 31, 2020. The increase in total assets of $334.5 million, or 18.3%, from September 30, 2021 was primarily due to increased deposits funding increases in loans, investments and overnight funds with the Federal Reserve. Investments increased by $103.5 million due to the purchase of mortgage-backed securities with excess funds. The Company reported loans net of deferred fees at December 31, 2021 of $1.22 billion, which represented an increase of $150.2 million, or 14%, from $1.07 billion at September 30, 2021, and an increase of $229.9 million, or 23.1%, over $0.99 billion at December 31, 2020. The increase in loans from September 30, 2021 was primarily the result of an increase in Specialty Finance, CRE and Venture Lending loans. The increase in loans from December 31, 2020 was due to higher CRE, Specialty Finance and Multi-Family loans."We had $3.2 million in three non-accrual loans on December 31, 2021, down from a balance of $3.5 million at the end of 2020. Two of the non-accrual loans totaling $3.1 million are secured by commercial real estate with a very low loan to value," observed Mr. Mordell.The Company's total deposits were $1.98 billion as of December 31, 2021, which represented an increase of $331.8 million, or 20.1%, compared to $1.65 billion at September 30, 2021 and an increase of $725.7 million, or 57.9%, compared to $1.25 billion at December 31, 2020. The increase in deposits from September 30, 2021 was due to higher money market and demand deposit accounts. The increase in deposits from December 31, 2020 was also due to an increase in money market and demand deposit accounts. The Company had no FHLB advances outstanding as of December 31, 2021, September 30, 2021 or December 31, 2020.Demand and interest bearing transaction deposits represented 53% of total deposits at December 31, 2021, compared to 56% at September 30, 2021 and 55% at December 31, 2020. Core deposits, which include transaction deposits, money market accounts and CDs below $250,000, represented 96% of total deposits at December 31, 2021, compared to 94% at September 30, 2021 and 90% at December 31, 2020. The Company's loan to deposit ratio was 62% at December 31, 2021 compared to 65% at September 30, 2021 and 79% at December 31, 2020.About AvidbankAvidbank 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 LeenExecutive Vice President and Chief Financial Officer408-831-5653sleen@avidbank.comAvidbank Holdings, Inc.Consolidated Balance Sheets($000, except share and per share amounts) (Unaudited) Assets 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Cash and due from banks $29,616 $34,864 $27,977 $21,870 $14,327 Due from Federal Reserve Bank 463,727 378,380 308,596 258,921 215,705 Total cash and cash equivalents 493,343 413,244 336,573 280,791 230,032 Investment securities - available for sale 380,170 276,670 208,482 184,504 163,631 Loans, net of deferred loan fees 1,223,344 1,073,132 1,014,750 1,027,336 993,483 Allowance for loan losses (13,054) (12,775) (12,558) (12,558) (12,558)Loans, net of allowance for loan losses 1,210,290 1,060,357 1,002,192 1,014,778 980,925 Bank owned life insurance 31,875 31,663 11,559 11,491 11,425 Premises and equipment, net 4,565 4,913 5,138 5,375 5,565 Other real estate owned - - - - - Accrued interest receivable & other assets 42,235 41,174 40,329 38,744 39,048 Total assets $2,162,478 $1,828,021 $1,604,273 $1,535,683 $1,430,626 Liabilities Non-interest-bearing demand deposits $993,156 $872,972 $728,522 $702,785 $665,096 Interest bearing transaction accounts 50,674 49,722 30,538 27,863 25,390 Money market and savings accounts 845,718 614,992 541,145 499,507 419,038 Time deposits 89,862 109,927 126,972 133,314 144,230 Total deposits 1,979,410 1,647,613 1,427,177 1,363,469 1,253,754 Subordinated debt, net 21,703 21,671 21,636 21,601 21,565 Other liabilities 24,265 23,940 23,229 23,294 27,383 Total liabilities 2,025,378 1,693,224 1,472,042 1,408,364 1,302,702 Shareholders' equity Common stock/additional paid-in capital 72,799 72,124 71,542 71,152 70,721 Retained earnings 68,801 66,267 62,693 59,044 56,537 Accumulated other comprehensive (loss) income (4,500) (3,594) (2,004) (2,877) 666 Total shareholders' equity 137,100 134,797 132,231 127,319 127,924 Total liabilities and shareholders' equity $2,162,478 $1,828,021 $1,604,273 $1,535,683 $1,430,626 Capital ratios Tier 1 leverage ratio 6.89% 7.81% 8.64% 8.87% 8.67%Common equity tier 1 capital ratio 8.90% 9.94% 10.57% 10.38% 10.35%Tier 1 risk-based capital ratio 8.90% 9.94% 10.57% 10.38% 10.35%Total risk-based capital ratio 11.11% 12.44% 13.30% 13.14% 13.15% Book value per common share $21.91 $21.55 $21.26 $20.42 $20.74 Total common shares outstanding 6,256,682 6,255,752 6,220,872 6,236,392 6,168,313 Other Ratios Non-interest bearing deposits to total deposits 50.2% 53.0% 51.0% 51.5% 53.0%Core deposits to total deposits 96.0% 94.0% 91.9% 91.3% 90.0%Loan to deposit ratio 61.8% 65.1% 71.1% 75.3% 79.2%Allowance for loan losses to total loans 1.07% 1.19% 1.24% 1.22% 1.26% Quarterly Average Balances ($000s) Loans, net of deferred loan fees $1,152,641 $1,026,812 $1,022,364 $1,008,379 $997,442 Earning assets 1,957,599 1,685,193 1,485,107 1,404,752 1,407,390 Total assets 2,054,545 1,771,292 1,554,049 1,468,597 1,467,588 Total deposits 1,866,704 1,589,384 1,376,736 1,291,767 1,290,320 Total shareholders' equity 138,589 135,721 131,300 128,844 126,840 Avidbank Holdings, Inc.Condensed Consolidated Statements of Income($000, except share and per share amounts) (Unaudited) Quarter Ended Year-to-Date 12/31/21 9/30/21 12/31/20 12/31/21 12/31/20 Interest and fees on loans $13,927 $12,533 $12,732 $50,823 $49,517 Interest on investment securities 1,154 946 191 3,606 901 Other interest income 193 156 77 456 482 Total interest income 15,274 13,635 13,000 54,885 50,900 Deposit interest expense 655 671 922 2,618 4,712 Other interest expense 307 310 309 1,238 1,243 Total interest expense 962 981 1,231 3,856 5,955 Net interest income 14,312 12,654 11,769 51,029 44,945 Provision for loan losses 3,279 217 115 3,572 1,702 Net interest income after provision for loan losses 11,033 12,437 11,654 47,457 43,243 Service charges, fees and other income 1,509 894 638 3,763 2,362 Income from bank owned life insurance 213 103 69 451 269 Gain on sale of assets 343 - - 1,099 - Total non-interest income 2,065 997 707 5,313 2,631 Compensation and benefit expenses 6,920 5,860 5,972 25,256 23,233 Occupancy and equipment expenses 924 1,066 1,139 4,078 4,123 Other operating expenses 1,705 1,526 1,485 6,282 5,811 Total non-interest expense 9,549 8,452 8,596 35,616 33,167 Income before income taxes 3,549 4,982 3,765 17,154 12,707 Provision for income taxes 1,015 1,408 1,001 4,890 3,080 Net income $2,534 $3,574 $2,764 $12,264 $9,627 Basic earnings per common share $0.43 $0.60 $0.47 $2.08 $1.64 Diluted earnings per common share $0.42 $0.59 $0.46 $2.02 $1.61 Average common shares outstanding 5,904,446 5,898,208 5,874,617 5,890,216 5,859,547 Average common fully diluted shares 6,101,778 6,072,085 6,000,688 6,062,482 5,967,780 Annualized returns: Return on average assets 0.49% 0.80% 0.75% 0.72% 0.72%Return on average common equity 7.25% 10.45% 8.67% 9.18% 7.86% Net interest margin 2.90% 2.98% 3.33% 3.12% 3.53%Cost of funds 0.20% 0.24% 0.37% 0.25% 0.50%Efficiency ratio 58.31% 61.91% 68.90% 63.21% 69.71%Avidbank Holdings, Inc. Credit Trends ($000) (Unaudited) 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Allowance for Loan Losses Balance, beginning of quarter $12,775 $12,558 $12,558 $12,558 $12,443 Provision for loan losses, quarterly 3,279 217 - 75 115 Charge-offs, quarterly (3,000) - - (75) - Recoveries, quarterly - - - - - Balance, end of quarter $13,054 $12,775 $12,558 $12,558 $12,558 Nonperforming Assets Loans accounted for on a non-accrual basis $3,244 $3,285 $3,326 $3,367 $3,547 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 3,244 3,285 3,326 3,367 3,547 Other real estate owned - - - - - Nonperforming assets $3,244 $3,285 $3,326 $3,367 $3,547 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $3,244 $3,285 $3,326 $3,367 $3,547 Nonperforming Loans by Type: Commercial $448 $456 $463 $470 $618 Commercial Real Estate Loans 2,796 2,829 2,863 2,897 2,929 Total Nonperforming loans $3,244 $3,285 $3,326 $3,367 $3,547 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.07% 1.19% 1.24% 1.22% 1.26%ALLL to nonperforming loans 402.40% 388.89% 377.59% 373.03% 354.00%Nonperforming assets to total assets 0.15% 0.18% 0.21% 0.22% 0.25%Nonperforming loans to total loans 0.27% 0.31% 0.33% 0.33% 0.36%Net quarterly charge-offs to total loans 0.25% 0.00% 0.00% 0.01% 0.00%SOURCE: Avidbank Holdings, Inc.View source version on accesswire.com: https://www.accesswire.com/686228/Avidbank-Holdings-Inc-Announces-Net-Income-of-123-Million-for-the-Year-Ended-December-31-2021
SAN JOSE, CA / ACCESSWIRE / January 31, 2022 / 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 $12.3 million for the year ended December 31, 2021 compared to $9.6 million, or a 28% increase for the year ended December 31, 2020.Full Year and Fourth Quarter 2021 Financial HighlightsNet income was $12.3 million in 2021 compared to $9.6 million in 2020. Net income in 2021 benefited from a $735,000 gain on the sale of investment securities and $711,000 of income from an investment fund. Net income in 2021 was reduced by a $3.6 million loan loss provision while a $1.7 million loan loss provision was recorded in 2020. Net interest income was $51.0 million in 2021, an increase of $6.1 million or 13.5% compared to the figure recorded in 2020.Diluted earnings per common share were $2.02 in 2021, compared to $1.61 in 2020. Weighted average common fully diluted shares outstanding were 6,062,482 and 5,967,780 in 2021 and 2020, respectively.Total interest income was $15.3 million for the fourth quarter of 2021, an increase of $2.3 million over the $13.0 million we recorded in the fourth quarter of 2020. The 17.5% increase over the prior year quarter reflects year over year loan growth and increased investment securities income.Net income was $2.5 million for the fourth quarter of 2021, compared to $2.8 million for the fourth quarter of 2020. Results for the fourth quarter of 2021 were affected by a $3.3 million loan loss provision while a $115,000 loan loss provision was taken in the fourth quarter of 2020.Diluted earnings per common share were $0.42 for the fourth quarter of 2021, compared to $0.46 for the fourth quarter of 2020.Total assets grew by 51.2% in 2021, ending the fourth quarter at $2.16 billion.Total loans net of deferred fees and any SBA PPP funding grew by 25.1% in 2021, ending the fourth quarter at $1.22 billion.Total deposits grew by 57.9% in 2021, ending the fourth quarter at $1.98 billion.The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 6.89%, a Tier 1 Risk-Based Capital and Common Equity Tier 1 Risk-Based Capital Ratio of 8.90%, and a Total Risk-Based Capital Ratio of 11.11%.Mark D. Mordell, Chairman and Chief Executive Officer, stated, "The investments we have made in personnel and infrastructure over the past several years have generated the returns we had planned for in 2021 as Avidbank achieved record levels of loans, deposits and total assets. These results were made possible by the outstanding teamwork and energy of our dedicated staff coming together to overcome the disruptions caused by the pandemic. Net interest income increased to $14.3 million in the fourth quarter of 2021, a 21.6% increase over the fourth quarter of 2020, primarily due to increases in loan interest income and investment securities income. Loans outstanding increased in the fourth quarter of 2021 due to new business generated by all of our lending divisions. Additionally, we increased our investment portfolio $103.5 million in the fourth quarter of 2021 with additional purchases of mortgage-backed securities."Mr. Mordell continued, "Non-interest expense increased by $1.1 million to $9.5 million in the fourth quarter of 2021, up from $8.5 million in the third quarter of 2021, as a result of higher compensation and benefits costs. Our efficiency ratio decreased to 58.3% in the fourth quarter of 2021, down from 68.9% in the fourth quarter of 2020, as a result of increased net interest income, higher non-interest income and controlling costs. Total deposits increased by $331.8 million in the fourth quarter of 2021 compared to the third quarter of 2021 and increased by $725.7 million from the fourth quarter of 2020. The increase in deposits from September 30, 2021, was due to higher money market and demand deposit accounts, as was the increase in deposits over the fourth quarter of 2020. Our net interest margin dropped to 2.90% in the fourth quarter of 2021, compared to 2.98% in the third quarter of 2021, primarily due to a large surplus in overnight funds and a drop in loan and investment yields. Annualized return on assets was affected by a $3.0 million charge-off taken on a single commercial loan in the fourth quarter of 2021. Return on assets was 0.49% in the fourth quarter of 2021 compared to 0.80% in the third quarter of 2021 and 0.75% in the fourth quarter of 2020."Mr. Mordell concluded, "We are very pleased with the progress we have made in 2021 as our team has been continuing to adapt to the "Covid" environment. We continue to maintain a hybrid work environment in our offices with the majority of staff splitting their time between the office and remote work at home, and have had a growing number working full-time in the office. 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."Results for the twelve months ended December 31, 2021Net interest income before provision for loan losses was $51.0 million in 2021, an increase of $6.1 million or 13.5% over the previous year. Reduced interest expense and higher investment income were the primary reasons for the increase. Average loans net of deferred fees were $1.05 billion in 2021 compared to $981.9 million in 2020. Average earning assets were $1.63 billion in 2021, a 28.3% increase over the prior year figure of $1.27 billion. Net interest margin was 3.12% in 2021 compared to 3.53% for 2020. The decrease in net interest margin was primarily caused by an increase in overnight funds and a decline in loan and investment yields. A $3.6 million loan loss provision was taken in 2021 compared to a $1.7 million loan loss provision recorded in 2020. We had $3.1 million of charge-offs and no recoveries in 2021 compared to $411,000 of charge-offs and no recoveries for 2020.Non-interest income was $5.3 million in 2021, an increase of $2.7 million or 102% compared to $2.6 million in 2020, reflecting a $735,000 gain on the sale of investments, income of $711,000 from an investment fund and increased service charge income.Non-interest expense increased by $2.4 million to $35.6 million in 2021 compared to $33.2 million in 2020 due primarily to increased investments in personnel across the entire Bank.The effective tax rate was 28.5% in 2021 compared to 24.2% for the same period in 2020. The effective tax rate in 2020 reflected the favorable impact of affordable housing tax credit investments and the re-allocation of income taxes to states outside of California.Results for the quarter ended December 31, 2021For the three months ended December 31, 2021, interest and fees on loans were $13.9 million, an increase of $1.2 million or 9.4% compared to the fourth quarter of 2020. The increase was primarily the result of higher loan balances partially offset by lower loan yields. Average loans net of deferred fees for the quarter ended December 31, 2021 were $1.15 billion, compared to $1.00 billion for the same quarter in 2020, an increase of 15.6%. Average earning assets were $1.96 billion in the fourth quarter of 2021, a 39.1% increase over the fourth quarter of the prior year. Loans made up 59% of average earning assets at the end of the fourth quarter of 2021 compared to 71% at the end of the fourth quarter of 2020. Net interest margin was 2.90% for the fourth quarter of 2021, compared to 3.33% for the fourth quarter of 2020. A $3.3 million loan loss provision was taken in the fourth quarter of 2021 compared with a $115,000 loan loss provision taken in the fourth quarter of 2020.Non-interest income was $2.1 million in the fourth quarter of 2021, an increase of $1.4 million or 192.1% compared to the fourth quarter of 2020. The increase resulted from increased income from an investment fund of $711,000, proceeds from a warrant sale of $456,000 and increased BOLI income.Non-interest expense increased by $953,000 or 11.1% in the fourth quarter of 2021 to $9.5 million compared to $8.6 million for the fourth quarter of 2020. This increase was primarily due to increases in compensation and benefit costs. The Company's full-time equivalent employees at December 31, 2021 and 2020 were 126 for both periods. The Company's efficiency ratio decreased from 68.9% in the fourth quarter of 2020 to 58.3% in the fourth quarter of 2021 primarily due to increased loan and investment interest income, higher non-interest income and controlled expenses.Balance SheetTotal assets were $2.16 billion as of December 31, 2021, compared to $1.83 billion at September 30, 2021 and $1.43 billion at December 31, 2020. The increase in total assets of $334.5 million, or 18.3%, from September 30, 2021 was primarily due to increased deposits funding increases in loans, investments and overnight funds with the Federal Reserve. Investments increased by $103.5 million due to the purchase of mortgage-backed securities with excess funds. The Company reported loans net of deferred fees at December 31, 2021 of $1.22 billion, which represented an increase of $150.2 million, or 14%, from $1.07 billion at September 30, 2021, and an increase of $229.9 million, or 23.1%, over $0.99 billion at December 31, 2020. The increase in loans from September 30, 2021 was primarily the result of an increase in Specialty Finance, CRE and Venture Lending loans. The increase in loans from December 31, 2020 was due to higher CRE, Specialty Finance and Multi-Family loans."We had $3.2 million in three non-accrual loans on December 31, 2021, down from a balance of $3.5 million at the end of 2020. Two of the non-accrual loans totaling $3.1 million are secured by commercial real estate with a very low loan to value," observed Mr. Mordell.The Company's total deposits were $1.98 billion as of December 31, 2021, which represented an increase of $331.8 million, or 20.1%, compared to $1.65 billion at September 30, 2021 and an increase of $725.7 million, or 57.9%, compared to $1.25 billion at December 31, 2020. The increase in deposits from September 30, 2021 was due to higher money market and demand deposit accounts. The increase in deposits from December 31, 2020 was also due to an increase in money market and demand deposit accounts. The Company had no FHLB advances outstanding as of December 31, 2021, September 30, 2021 or December 31, 2020.Demand and interest bearing transaction deposits represented 53% of total deposits at December 31, 2021, compared to 56% at September 30, 2021 and 55% at December 31, 2020. Core deposits, which include transaction deposits, money market accounts and CDs below $250,000, represented 96% of total deposits at December 31, 2021, compared to 94% at September 30, 2021 and 90% at December 31, 2020. The Company's loan to deposit ratio was 62% at December 31, 2021 compared to 65% at September 30, 2021 and 79% at December 31, 2020.About AvidbankAvidbank 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 LeenExecutive Vice President and Chief Financial Officer408-831-5653sleen@avidbank.comAvidbank Holdings, Inc.Consolidated Balance Sheets($000, except share and per share amounts) (Unaudited) Assets 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Cash and due from banks $29,616 $34,864 $27,977 $21,870 $14,327 Due from Federal Reserve Bank 463,727 378,380 308,596 258,921 215,705 Total cash and cash equivalents 493,343 413,244 336,573 280,791 230,032 Investment securities - available for sale 380,170 276,670 208,482 184,504 163,631 Loans, net of deferred loan fees 1,223,344 1,073,132 1,014,750 1,027,336 993,483 Allowance for loan losses (13,054) (12,775) (12,558) (12,558) (12,558)Loans, net of allowance for loan losses 1,210,290 1,060,357 1,002,192 1,014,778 980,925 Bank owned life insurance 31,875 31,663 11,559 11,491 11,425 Premises and equipment, net 4,565 4,913 5,138 5,375 5,565 Other real estate owned - - - - - Accrued interest receivable & other assets 42,235 41,174 40,329 38,744 39,048 Total assets $2,162,478 $1,828,021 $1,604,273 $1,535,683 $1,430,626 Liabilities Non-interest-bearing demand deposits $993,156 $872,972 $728,522 $702,785 $665,096 Interest bearing transaction accounts 50,674 49,722 30,538 27,863 25,390 Money market and savings accounts 845,718 614,992 541,145 499,507 419,038 Time deposits 89,862 109,927 126,972 133,314 144,230 Total deposits 1,979,410 1,647,613 1,427,177 1,363,469 1,253,754 Subordinated debt, net 21,703 21,671 21,636 21,601 21,565 Other liabilities 24,265 23,940 23,229 23,294 27,383 Total liabilities 2,025,378 1,693,224 1,472,042 1,408,364 1,302,702 Shareholders' equity Common stock/additional paid-in capital 72,799 72,124 71,542 71,152 70,721 Retained earnings 68,801 66,267 62,693 59,044 56,537 Accumulated other comprehensive (loss) income (4,500) (3,594) (2,004) (2,877) 666 Total shareholders' equity 137,100 134,797 132,231 127,319 127,924 Total liabilities and shareholders' equity $2,162,478 $1,828,021 $1,604,273 $1,535,683 $1,430,626 Capital ratios Tier 1 leverage ratio 6.89% 7.81% 8.64% 8.87% 8.67%Common equity tier 1 capital ratio 8.90% 9.94% 10.57% 10.38% 10.35%Tier 1 risk-based capital ratio 8.90% 9.94% 10.57% 10.38% 10.35%Total risk-based capital ratio 11.11% 12.44% 13.30% 13.14% 13.15% Book value per common share $21.91 $21.55 $21.26 $20.42 $20.74 Total common shares outstanding 6,256,682 6,255,752 6,220,872 6,236,392 6,168,313 Other Ratios Non-interest bearing deposits to total deposits 50.2% 53.0% 51.0% 51.5% 53.0%Core deposits to total deposits 96.0% 94.0% 91.9% 91.3% 90.0%Loan to deposit ratio 61.8% 65.1% 71.1% 75.3% 79.2%Allowance for loan losses to total loans 1.07% 1.19% 1.24% 1.22% 1.26% Quarterly Average Balances ($000s) Loans, net of deferred loan fees $1,152,641 $1,026,812 $1,022,364 $1,008,379 $997,442 Earning assets 1,957,599 1,685,193 1,485,107 1,404,752 1,407,390 Total assets 2,054,545 1,771,292 1,554,049 1,468,597 1,467,588 Total deposits 1,866,704 1,589,384 1,376,736 1,291,767 1,290,320 Total shareholders' equity 138,589 135,721 131,300 128,844 126,840 Avidbank Holdings, Inc.Condensed Consolidated Statements of Income($000, except share and per share amounts) (Unaudited) Quarter Ended Year-to-Date 12/31/21 9/30/21 12/31/20 12/31/21 12/31/20 Interest and fees on loans $13,927 $12,533 $12,732 $50,823 $49,517 Interest on investment securities 1,154 946 191 3,606 901 Other interest income 193 156 77 456 482 Total interest income 15,274 13,635 13,000 54,885 50,900 Deposit interest expense 655 671 922 2,618 4,712 Other interest expense 307 310 309 1,238 1,243 Total interest expense 962 981 1,231 3,856 5,955 Net interest income 14,312 12,654 11,769 51,029 44,945 Provision for loan losses 3,279 217 115 3,572 1,702 Net interest income after provision for loan losses 11,033 12,437 11,654 47,457 43,243 Service charges, fees and other income 1,509 894 638 3,763 2,362 Income from bank owned life insurance 213 103 69 451 269 Gain on sale of assets 343 - - 1,099 - Total non-interest income 2,065 997 707 5,313 2,631 Compensation and benefit expenses 6,920 5,860 5,972 25,256 23,233 Occupancy and equipment expenses 924 1,066 1,139 4,078 4,123 Other operating expenses 1,705 1,526 1,485 6,282 5,811 Total non-interest expense 9,549 8,452 8,596 35,616 33,167 Income before income taxes 3,549 4,982 3,765 17,154 12,707 Provision for income taxes 1,015 1,408 1,001 4,890 3,080 Net income $2,534 $3,574 $2,764 $12,264 $9,627 Basic earnings per common share $0.43 $0.60 $0.47 $2.08 $1.64 Diluted earnings per common share $0.42 $0.59 $0.46 $2.02 $1.61 Average common shares outstanding 5,904,446 5,898,208 5,874,617 5,890,216 5,859,547 Average common fully diluted shares 6,101,778 6,072,085 6,000,688 6,062,482 5,967,780 Annualized returns: Return on average assets 0.49% 0.80% 0.75% 0.72% 0.72%Return on average common equity 7.25% 10.45% 8.67% 9.18% 7.86% Net interest margin 2.90% 2.98% 3.33% 3.12% 3.53%Cost of funds 0.20% 0.24% 0.37% 0.25% 0.50%Efficiency ratio 58.31% 61.91% 68.90% 63.21% 69.71%Avidbank Holdings, Inc. Credit Trends ($000) (Unaudited) 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Allowance for Loan Losses Balance, beginning of quarter $12,775 $12,558 $12,558 $12,558 $12,443 Provision for loan losses, quarterly 3,279 217 - 75 115 Charge-offs, quarterly (3,000) - - (75) - Recoveries, quarterly - - - - - Balance, end of quarter $13,054 $12,775 $12,558 $12,558 $12,558 Nonperforming Assets Loans accounted for on a non-accrual basis $3,244 $3,285 $3,326 $3,367 $3,547 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 3,244 3,285 3,326 3,367 3,547 Other real estate owned - - - - - Nonperforming assets $3,244 $3,285 $3,326 $3,367 $3,547 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $3,244 $3,285 $3,326 $3,367 $3,547 Nonperforming Loans by Type: Commercial $448 $456 $463 $470 $618 Commercial Real Estate Loans 2,796 2,829 2,863 2,897 2,929 Total Nonperforming loans $3,244 $3,285 $3,326 $3,367 $3,547 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.07% 1.19% 1.24% 1.22% 1.26%ALLL to nonperforming loans 402.40% 388.89% 377.59% 373.03% 354.00%Nonperforming assets to total assets 0.15% 0.18% 0.21% 0.22% 0.25%Nonperforming loans to total loans 0.27% 0.31% 0.33% 0.33% 0.36%Net quarterly charge-offs to total loans 0.25% 0.00% 0.00% 0.01% 0.00%SOURCE: Avidbank Holdings, Inc.View source version on accesswire.com: https://www.accesswire.com/686228/Avidbank-Holdings-Inc-Announces-Net-Income-of-123-Million-for-the-Year-Ended-December-31-2021