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 for the Second Quarter of 2022 By: Avidbank Holdings, Inc. via AccessWire July 20, 2022 at 06:00 AM EDT SAN JOSE, CA / ACCESSWIRE / July 20, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the second quarter of 2022 of $5.2 million, or $0.76 per diluted share, compared to $3.6 million, or $0.60 per diluted share, for the second quarter of 2021 and $4.3 million, or $0.71 per diluted share, for the first quarter of 2022.Second Quarter 2022 Financial HighlightsDiluted earnings per share of $0.76, an increase of $0.16, or 27%, compared to the second quarter of 2021, and increased $0.05, or 28% annualized, compared to the first quarter of 2022.Return on average assets was 1.02%, compared to 0.94% in the second quarter of 2021 and 0.83% in the first quarter of 2022.Return on average equity was 16.18%, compared to 11.15% in the second quarter of 2021 and 12.72% in the first quarter of 2022.Taxable equivalent net interest margin was 3.62% in the second quarter of 2022, compared to 3.28% in the second quarter of 2021 and 3.05% in the first quarter of 2022.Loans increased $322 million, or 32%, from June 30, 2021 and increased $135 million, or 45% annualized, from March 31,2022.Annualized net charge-offs to average loans totaled 0.00% for the second quarter and year-to-date 2022. Non-performing assets to total assets were 0.01% on June 30, 2022, a decrease from 0.22% on June 30, 2021 and 0.15% on March 31, 2022.On May 11, 2022, completed a $28.6 million private offering of 1.27 million common shares at $22.50 per share bringing total common shares outstanding to 7,585,924."We continued our solid performance in the second quarter with earnings of $0.76 per diluted share including strong loan growth from a combination of less payoffs, an increase in line utilization, and another quarter of solid new originations," said Mark Mordell, Chairman and Chief Executive Officer. "We are cautiously optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from each increase in the fed funds rate," added Mr. Mordell.Income StatementTaxable equivalent net interest income totaled $17.5 million for the second quarter of 2022, an increase of $5.4 million, or 44%, from the second quarter of 2021, and an increase of $2.3 million, or 60% annualized, from the first quarter of 2022. This was primarily driven by an increase in interest income from higher interest rates and the growth in average balance of loans and investment securities.The yield on loans in the second quarter of 2022 was 4.97%, an increase of 17 basis points from the second quarter of 2021 and an increase of 24 basis points from the first quarter of 2022. The linked quarter increase was primarily due to increases in the Prime rate. Approximately 53% of loans are Prime-based floating rate loans.The cost of deposits in the second quarter of 2022 was 0.14%, a decrease of 5 basis points from the second quarter of 2021 and an increase of 1 basis point from the first quarter of 2022. The cost of interest-bearing deposits in the second quarter of 2022 was 0.26%, remaining flat from the first quarter of 2022.In the second quarter of 2022, we recorded a provision for loan losses of $1.6 million. No loan provision was required in the first quarter of 2022 and the second quarter of 2021. The second quarter provision was primarily attributable to the $135 million increase in loan balances.Non-interest income was $1.2 million in the second quarter of 2022 compared to $1.5 million in the second quarter of 2021 and $1.1 million in the first quarter of 2022. Service charge income totaled $681,000 in the second quarter of 2022, an increase of $159,000, or 30% from the second quarter of 2021, and an increase of $45,000, or 28% annualized, compared to the first quarter of 2022.Non-interest expense totaled $10.0 million in the second quarter of 2022 compared to $8.6 million in the second quarter of 2021 and $10.4 million in the first quarter of 2022. This linked quarter decrease was primarily due to higher capitalized loan origination costs and a decrease in the FDIC regulatory assessment. The number of full-time equivalent employees on June 30, 2022 totaled 132 compared to 130 on March 31, 2022.Balance SheetTotal assets were $2.01 billion as of June 30, 2022, compared to $2.11 billion on March 31, 2022 and $1.60 billion at June 30, 2021. Cash balances held at the Federal Reserve decreased $284 million in the second quarter of 2022 while investments increased $39 million due to the purchase of tax-exempt municipal and mortgage-backed securities.Period end loans on June 30, 2022 totaled $1.34 billion, which represented an increase of $135 million, or 45% annualized, from March 31, 2022, and an increase of $322 million, or 32%, from $1.01 billion at June 30, 2021. Quarterly average loans for the second quarter of 2022 increased $239 million, or 23%, from the second quarter of 2021 and $48 million, or 16% annualized, from the first quarter of 2022.The allowance for loan losses on June 30, 2022 was $14.6 million, representing an increase of $1.6 million from March 31, 2022. The Allowance for Loan Losses to total loans was 1.09% on June 30, 2022, compared to 1.08% on March 31, 2022. Nonperforming loans to total loans was 0.01% on June 30, 2022, a decrease from 0.27% on March 31, 2022. The decrease was primarily attributable to the payoff of a single relationship of approximately $3 million.Period end deposits were $1.83 billion on June 30, 2022 compared to $1.95 billion at March 31, 2022 and an increase of $402 million, or 28%, compared to $1.43 billion at June 30, 2021. Quarterly average deposits for the second quarter of 2022 increased $512 million, or 37%, compared to the second quarter of 2021 and decreased $59 million, or 12% annualized, from the first quarter of 2022.Noninterest bearing deposits represented 45.9% of total deposits on June 30, 2022, compared to 48.9% on March 31, 2022 and 51.0% at June 30, 2021. The loan to deposit ratio was 73.1% on June 30, 2022 compared to 61.7% at March 31, 2022 and 71.1% at June 30, 2021.About AvidbankAvidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in Palo Alto, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, technology and asset-based lending, specialty finance, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.Forward-Looking Statement:This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.Contact:Patrick OakesExecutive Vice President and Chief Financial Officer408-831-5653poakes@avidbank.com AVIDBANK HOLDINGS, INC.Selected Financial Data (Unaudited)($000, except share and per share amounts) For the six months ended 2022 2021 June 30, Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter 2022 2021 INCOME AND PER SHARE HIGHLIGHTS Net income $5,214 $4,349 $2,534 $3,574 $3,649 $9,563 $6,156 Basic earnings per share 0.78 0.73 0.43 0.60 0.62 1.51 1.05 Diluted earnings per share 0.76 0.71 0.42 0.59 0.60 1.47 1.02 Book value per share 18.27 19.20 21.91 21.55 21.26 PERFORMANCE MEASURES Return on average assets 1.02% 0.83% 0.49% 0.80% 0.94% 0.92% 0.82%Return on average equity 16.18% 12.72% 7.25% 10.45% 11.15% 14.40% 9.54%Net interest margin 3.62% 3.05% 2.90% 2.98% 3.28% 3.33% 3.36%Efficiency ratio 53.43% 63.72% 58.31% 61.91% 62.61% 58.22% 66.94%Average loans to average deposits 66.88% 62.40% 61.83% 64.69% 74.37% 64.62% 76.19% CAPITAL Tier 1 leverage ratio 8.72% 6.85% 6.89% 7.81% 8.64% Common equity tier 1 capital ratio 10.17% 9.09% 8.90% 9.94% 10.57% Tier 1 risk-based capital ratio 10.17% 9.09% 8.90% 9.94% 10.57% Total risk-based capital ratio 12.25% 11.28% 11.11% 12.44% 13.30% SHARES OUTSTANDING Number of common shares outstanding 7,585,924 6,316,573 6,256,682 6,255,752 6,220,872 Average common shares outstanding - basic 6,687,448 5,935,948 5,904,446 5,898,208 5,892,713 6,316,780 5,878,921 Average common shares outstanding - diluted 6,821,245 6,116,306 6,101,778 6,072,085 6,051,243 6,474,959 6,036,233 ASSET QUALITY Allowance for loan losses (ALLL) to total loans 1.09% 1.08% 1.07% 1.19% 1.24% ALLL to nonperforming loans 9211.32% 407.43% 402.40% 388.89% 377.59% Nonperforming assets to total assets 0.01% 0.15% 0.15% 0.18% 0.21% Nonperforming loans to total loans 0.01% 0.27% 0.27% 0.31% 0.33% Net quarterly charge-offs to total loans 0.00% 0.00% 0.25% 0.00% 0.00% AVERAGE BALANCES Gross loans $1,263,071 $1,215,153 $1,154,254 $1,028,098 $1,023,932 $1,239,245 $1,016,796 Investment securities 487,535 436,427 287,915 231,526 200,016 462,122 184,066 Total assets 2,060,297 2,131,587 2,054,545 1,771,292 1,554,049 2,095,745 1,511,559 Deposits 1,888,494 1,947,208 1,866,704 1,589,384 1,376,736 1,917,689 1,334,487 Shareholder's equity 129,235 138,668 138,589 135,721 131,300 133,925 130,079 AT PERIOD END Gross loans $1,338,687 $1,203,657 $1,225,187 $1,074,436 $1,016,200 Investment securities 507,826 468,917 380,170 276,670 208,482 Total assets 2,010,256 2,110,091 2,162,478 1,828,021 1,604,273 Deposits 1,828,752 1,947,278 1,979,410 1,647,613 1,427,177 Shareholder's equity 138,611 121,282 137,100 134,797 132,231 Avidbank Holdings, Inc. Consolidated Balance Sheets (Unaudited) ($000) June 30, March 31, Dec. 31, Sept. 31, June 30, Assets 2022 2022 2021 2021 2021 Cash and due from banks $50,907 $47,091 $29,616 $34,864 $27,977 Due from Federal Reserve Bank 35,913 320,336 463,727 378,380 308,596 Total cash and cash equivalents 86,820 367,427 493,343 413,244 336,573 Investment securities - available for sale 477,646 468,917 308,170 276,670 208,482 Investment securities - held to maturity 30,180 - - - - Total investment securities 507,826 468,917 380,170 276,670 208,482 Loans, net of deferred loan fees 1,336,786 1,201,934 1,223,344 1,073,132 1,014,750 Allowance for loan losses (14,646) (13,054) (13,054) (12,775) (12,558)Loans, net of allowance for loan losses 1,322,140 1,188,880 1,210,290 1,060,357 1,002,192 Bank owned life insurance 32,303 32,087 31,875 31,663 11,559 Premises and equipment, net 4,314 4,331 4,565 4,913 5,138 Other real estate owned - - - - - Accrued interest receivable & other assets 56,853 48,449 42,235 41,174 40,329 Total assets $2,010,256 $2,110,091 $2,162,478 $1,828,021 $1,604,273 Liabilities Non-interest-bearing demand deposits $838,666 $952,035 $993,156 $872,972 $728,522 Interest bearing transaction accounts 45,179 47,711 50,674 49,722 30,538 Money market and savings accounts 848,748 812,701 845,718 614,992 541,145 Time deposits 96,159 134,831 89,862 109,927 126,972 Total deposits 1,828,752 1,947,278 1,979,410 1,647,613 1,427,177 FHLB advances - - - - - Subordinated debt, net 21,754 21,729 21,703 21,671 21,636 Other liabilities 21,139 19,802 24,265 23,940 23,229 Total liabilities 1,871,645 1,988,809 2,025,378 1,693,224 1,472,042 Shareholders' equity Common stock/additional paid-in capital 101,244 72,920 72,799 72,124 71,542 Retained earnings 78,364 73,149 68,801 66,267 62,693 Accumulated other comprehensive (loss) (40,997) (24,787) (4,500) (3,594) (2,004)Total shareholders' equity 138,611 121,282 137,100 134,797 132,231 Total liabilities and shareholders' equity $2,010,256 $2,110,091 $2,162,478 $1,828,021 $1,604,273 Avidbank Holdings, Inc. Consolidated Statements of Income (Unaudited) ($000, except share and per share amounts) Three Months Ended Year-to-Date June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Interest and fees on loans $15,639 $14,163 $12,246 $29,802 $24,363 Interest on investment securities 2,477 1,855 808 4,332 1,507 Other interest income 356 153 59 509 107 Total interest income 18,472 16,171 13,113 34,643 25,977 Deposit interest expense 657 640 651 1,297 1,293 Other interest expense 300 300 310 600 621 Total interest expense 957 940 961 1,897 1,914 Net interest income 17,515 15,231 12,152 32,746 24,063 Provision for loan losses 1,592 - - 1,592 75 Net interest income after provision for loan losses 15,923 15,231 12,152 31,154 23,988 Service charges and bank fees 761 725 736 1,486 1,359 Income from bank owned life insurance 215 212 68 427 135 Gain/(loss) on sale of assets - - 735 - 734 Warrant income 64 86 - 150 22 Other income 187 90 - 277 - Total non-interest income 1,227 1,113 1,539 2,340 2,250 Compensation and benefit expenses 7,129 7,312 6,001 14,441 12,476 Occupancy and equipment expenses 901 894 1,017 1,795 2,088 Data processing 423 411 419 834 841 Regulatory assessments 509 664 279 1,173 558 Professional fees 192 195 179 387 331 Other operating expenses 859 939 677 1,798 1,320 Total non-interest expense 10,013 10,415 8,572 20,428 17,614 Income before income taxes 7,137 5,929 5,119 13,066 8,624 Provision for income taxes 1,923 1,580 1,470 3,503 2,468 Net income $5,214.27 $4,348.67 $3,649.00 $9,562.94 $6,156.00 Basic earnings per common share $0.78 $0.73 $0.62 $1.51 $1.05 Diluted earnings per common share $0.76 $0.71 $0.60 $1.47 $1.02 Average common shares outstanding 6,687,448 5,935,948 5,892,713 6,316,780 5,878,921 Average common fully diluted shares 6,821,245 6,116,306 6,051,243 6,474,959 6,036,233 Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Three Months Ended June 30, 2022 March 31, 2022 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/ExpenseAssets Interest earning assets: Loans (1) $1,263,071 4.97% $15,638 $1,215,153 4.73% $14,163Fed funds sold 191,861 0.74% 353 374,648 0.17% 153Investment securities Taxable investment securities 475,039 2.00% 2,364 436,427 1.72% 1,855Non-taxable investment securities (2) 12,496 4.59% 143 - 0.00% -Total investment securities 487,535 2.06% 2,507 436,427 1.72% 1,855 Total interest-earning assets 1,942,467 3.82% 18,498 2,026,228 3.24% 16,171 Noninterest-earning assets: Cash and due from banks 46,334 42,282 All other assets (3) 71,496 63,077 Total assets $2,060,297 $2,131,587 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $46,242 0.13% $15 $49,199 0.12% $15Money market and savings 835,058 0.21% 440 812,289 0.21% 422Time 121,923 0.66% 202 120,886 0.68% 203Total interest-bearing deposits 1,003,223 0.26% 657 982,374 0.26% 640 Subordinated debt 21,518 5.59% 300 21,714 5.60% 300Total interest-bearing liabilities 1,024,741 0.37% 957 1,004,088 0.38% 940 Noninterest-bearing liabilities: Demand deposits 885,271 964,834 Accrued expenses and other liabilities 21,050 23,997 Shareholders' equity 129,235 138,668 Total liabilities and shareholders' equity $2,060,297 $2,131,587 Net interest income and margin (4) 3.62% $17,541 3.05% $15,231 Non-taxable equivalent net interest margin 3.62% 3.05% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $628 thousand, respectively.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $13.1 million, respectively, is included as a contra asset.(4) Net interest margin is net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Three months ended June 30, 2022 June 30, 2021 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/Expense Assets Interest earning assets: Loans (1) $1,263,071 4.97% $15,638 $1,023,932 4.80% $12,246 Fed funds sold 191,861 0.74% 353 261,159 0.09% 59 Investment securities Taxable investment securities 475,039 2.00% 2,364 200,016 1.62% 808 Non-taxable investment securities (2) 12,496 4.59% 143 - 0.00% - Total investment securities 487,535 2.06% 2,507 200,016 1.62% 808 Total interest-earning assets 1,942,467 3.82% 18,498 1,485,107 3.54% 13,113 Noninterest-earning assets: Cash and due from banks 46,334 25,948 All other assets (3) 71,496 42,994 Total assets $2,060,297 $1,554,049 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $46,242 0.13% $15 $28,649 0.20% $14 Money market and savings 835,058 0.21% 440 518,508 0.31% 398 Time 121,923 0.66% 202 128,480 0.75% 239 Total interest-bearing deposits 1,003,223 0.26% 657 675,637 0.39% 651 Subordinated debt 21,518 5.59% 300 21,619 5.75% 310 Total interest-bearing liabilities 1,024,741 0.37% 957 697,256 0.55% 961 Noninterest-bearing liabilities: Demand deposits 885,271 701,099 Accrued expenses and other liabilities 21,050 24,394 Shareholders' equity 129,235 131,300 Total liabilities and shareholders' equity $2,060,297 $1,554,049 Net interest income and margin (4) 3.62% $17,541 3.28% $12,152 Non-taxable equivalent net interest margin 3.62% 3.28% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $514 thousand, respectively.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.(4) Net interest margin is net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Six months ended June 30, 2022 June 30, 2021 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/Expense Assets Interest earning assets: Loans (1) $1,239,245 4.85% $29,802 $1,016,796 4.83% $24,363 Fed funds sold 282,750 0.36% 509 244,289 0.09% 107 Investment securities Taxable investment securities 455,839 1.87% 4,219 184,066 1.65% 1,507 Non-taxable investment securities (2) 6,283 4.59% 143 - 0.00% - Total investment securities 462,122 1.90% 4,362 184,066 1.65% 1,507 Total interest-earning assets 1,984,117 3.52% 34,673 1,445,151 3.62% 25,977 Noninterest-earning assets: Cash and due from banks 44,319 23,783 All other assets (3) 67,309 42,625 Total assets $2,095,745 $1,511,559 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $47,712 0.13% $31 $27,268 0.20% $27 Money market and savings 823,736 0.21% 862 482,168 0.31% 752 Time 121,408 0.67% 404 133,055 0.78% 514 Total interest-bearing deposits 992,856 0.26% 1,297 642,491 0.41% 1,293 Subordinated debt 21,616 5.60% 600 21,600 5.80% 621 Total interest-bearing liabilities 1,014,472 0.38% 1,897 664,091 0.58% 1,914 Noninterest-bearing liabilities: Demand deposits 924,833 691,996 Accrued expenses and other liabilities 22,515 25,393 Shareholders' equity 133,925 130,079 Total liabilities and shareholders' equity $2,095,745 $1,511,559 Net interest income and margin (4) 3.33% $32,776 3.36% $24,063 Non-taxable equivalent net interest margin 3.33% 3.36% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $1.1 million for both comparative periods.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.(4) Tax equivalent net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Period End Loans (Unaudited) ($000) June 30,2022 March 31,2022 Dec. 31,2021 Sept. 30,2021 June 30,2021 Current QuarterChange Year over YearChange Commercial loans $558,908 $481,522 $517,747 $415,986 $401,584 $77,386 $157,324 Real Estate Commercial real estate Multi-family 165,818 141,954 139,646 128,672 116,259 23,864 49,559 CRE Owner Occupied 108,045 109,502 99,728 89,832 90,626 (1,457) 17,419 Non-Owner Occupied 280,397 258,365 258,507 239,272 195,344 22,032 85,053 Construction and land 209,941 195,388 190,887 182,556 193,709 14,553 16,232 Residential 12,830 13,726 14,484 14,800 15,164 (896) (2,334)Total real estate loans 777,031 718,935 703,252 655,132 611,102 58,096 165,929 Other loans 847 1,477 2,345 2,014 2,064 (630) (1,217) Total loans $1,336,786 $1,201,934 $1,223,344 $1,073,132 $1,014,750 $134,852 $322,036 Avidbank Holdings, Inc. Credit Trends (Unaudited) ($000) 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Allowance for Loan Losses Balance, beginning of quarter $13,054 $13,054 $12,775 $12,558 $12,558 Provision for loan losses, quarterly 1,592 - 3,279 217 - Charge-offs, quarterly - - (3,000) - - Recoveries, quarterly - - - - - Balance, end of quarter $14,646 $13,054 $13,054 $12,775 $12,558 Nonperforming Assets Loans accounted for on a non-accrual basis $159 $3,204 $3,244 $3,285 $3,326 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 159 3,204 3,244 3,285 3,326 Other real estate owned - - - - - Nonperforming assets $159 $3,204 $3,244 $3,285 $3,326 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $159 $3,204 $3,244 $3,285 $3,326 Nonperforming Loans by Type: Commercial $159 $441 $448 $456 $463 Commercial Real Estate Loans - 2,763 2,796 2,829 2,863 Total Nonperforming loans $159 $3,204 $3,244 $3,285 $3,326 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.09% 1.08% 1.07% 1.19% 1.24%ALLL to nonperforming loans 9211.32% 407.43% 402.40% 388.89% 377.59%Nonperforming assets to total assets 0.01% 0.15% 0.15% 0.18% 0.21%Nonperforming loans to total loans 0.01% 0.27% 0.27% 0.31% 0.33%Net quarterly charge-offs to total loans 0.00% 0.00% 0.25% 0.00% 0.00% SOURCE: Avidbank Holdings, Inc.View source version on accesswire.com: https://www.accesswire.com/709156/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Second-Quarter-of-2022 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 for the Second Quarter of 2022 By: Avidbank Holdings, Inc. via AccessWire July 20, 2022 at 06:00 AM EDT SAN JOSE, CA / ACCESSWIRE / July 20, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the second quarter of 2022 of $5.2 million, or $0.76 per diluted share, compared to $3.6 million, or $0.60 per diluted share, for the second quarter of 2021 and $4.3 million, or $0.71 per diluted share, for the first quarter of 2022.Second Quarter 2022 Financial HighlightsDiluted earnings per share of $0.76, an increase of $0.16, or 27%, compared to the second quarter of 2021, and increased $0.05, or 28% annualized, compared to the first quarter of 2022.Return on average assets was 1.02%, compared to 0.94% in the second quarter of 2021 and 0.83% in the first quarter of 2022.Return on average equity was 16.18%, compared to 11.15% in the second quarter of 2021 and 12.72% in the first quarter of 2022.Taxable equivalent net interest margin was 3.62% in the second quarter of 2022, compared to 3.28% in the second quarter of 2021 and 3.05% in the first quarter of 2022.Loans increased $322 million, or 32%, from June 30, 2021 and increased $135 million, or 45% annualized, from March 31,2022.Annualized net charge-offs to average loans totaled 0.00% for the second quarter and year-to-date 2022. Non-performing assets to total assets were 0.01% on June 30, 2022, a decrease from 0.22% on June 30, 2021 and 0.15% on March 31, 2022.On May 11, 2022, completed a $28.6 million private offering of 1.27 million common shares at $22.50 per share bringing total common shares outstanding to 7,585,924."We continued our solid performance in the second quarter with earnings of $0.76 per diluted share including strong loan growth from a combination of less payoffs, an increase in line utilization, and another quarter of solid new originations," said Mark Mordell, Chairman and Chief Executive Officer. "We are cautiously optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from each increase in the fed funds rate," added Mr. Mordell.Income StatementTaxable equivalent net interest income totaled $17.5 million for the second quarter of 2022, an increase of $5.4 million, or 44%, from the second quarter of 2021, and an increase of $2.3 million, or 60% annualized, from the first quarter of 2022. This was primarily driven by an increase in interest income from higher interest rates and the growth in average balance of loans and investment securities.The yield on loans in the second quarter of 2022 was 4.97%, an increase of 17 basis points from the second quarter of 2021 and an increase of 24 basis points from the first quarter of 2022. The linked quarter increase was primarily due to increases in the Prime rate. Approximately 53% of loans are Prime-based floating rate loans.The cost of deposits in the second quarter of 2022 was 0.14%, a decrease of 5 basis points from the second quarter of 2021 and an increase of 1 basis point from the first quarter of 2022. The cost of interest-bearing deposits in the second quarter of 2022 was 0.26%, remaining flat from the first quarter of 2022.In the second quarter of 2022, we recorded a provision for loan losses of $1.6 million. No loan provision was required in the first quarter of 2022 and the second quarter of 2021. The second quarter provision was primarily attributable to the $135 million increase in loan balances.Non-interest income was $1.2 million in the second quarter of 2022 compared to $1.5 million in the second quarter of 2021 and $1.1 million in the first quarter of 2022. Service charge income totaled $681,000 in the second quarter of 2022, an increase of $159,000, or 30% from the second quarter of 2021, and an increase of $45,000, or 28% annualized, compared to the first quarter of 2022.Non-interest expense totaled $10.0 million in the second quarter of 2022 compared to $8.6 million in the second quarter of 2021 and $10.4 million in the first quarter of 2022. This linked quarter decrease was primarily due to higher capitalized loan origination costs and a decrease in the FDIC regulatory assessment. The number of full-time equivalent employees on June 30, 2022 totaled 132 compared to 130 on March 31, 2022.Balance SheetTotal assets were $2.01 billion as of June 30, 2022, compared to $2.11 billion on March 31, 2022 and $1.60 billion at June 30, 2021. Cash balances held at the Federal Reserve decreased $284 million in the second quarter of 2022 while investments increased $39 million due to the purchase of tax-exempt municipal and mortgage-backed securities.Period end loans on June 30, 2022 totaled $1.34 billion, which represented an increase of $135 million, or 45% annualized, from March 31, 2022, and an increase of $322 million, or 32%, from $1.01 billion at June 30, 2021. Quarterly average loans for the second quarter of 2022 increased $239 million, or 23%, from the second quarter of 2021 and $48 million, or 16% annualized, from the first quarter of 2022.The allowance for loan losses on June 30, 2022 was $14.6 million, representing an increase of $1.6 million from March 31, 2022. The Allowance for Loan Losses to total loans was 1.09% on June 30, 2022, compared to 1.08% on March 31, 2022. Nonperforming loans to total loans was 0.01% on June 30, 2022, a decrease from 0.27% on March 31, 2022. The decrease was primarily attributable to the payoff of a single relationship of approximately $3 million.Period end deposits were $1.83 billion on June 30, 2022 compared to $1.95 billion at March 31, 2022 and an increase of $402 million, or 28%, compared to $1.43 billion at June 30, 2021. Quarterly average deposits for the second quarter of 2022 increased $512 million, or 37%, compared to the second quarter of 2021 and decreased $59 million, or 12% annualized, from the first quarter of 2022.Noninterest bearing deposits represented 45.9% of total deposits on June 30, 2022, compared to 48.9% on March 31, 2022 and 51.0% at June 30, 2021. The loan to deposit ratio was 73.1% on June 30, 2022 compared to 61.7% at March 31, 2022 and 71.1% at June 30, 2021.About AvidbankAvidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in Palo Alto, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, technology and asset-based lending, specialty finance, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.Forward-Looking Statement:This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.Contact:Patrick OakesExecutive Vice President and Chief Financial Officer408-831-5653poakes@avidbank.com AVIDBANK HOLDINGS, INC.Selected Financial Data (Unaudited)($000, except share and per share amounts) For the six months ended 2022 2021 June 30, Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter 2022 2021 INCOME AND PER SHARE HIGHLIGHTS Net income $5,214 $4,349 $2,534 $3,574 $3,649 $9,563 $6,156 Basic earnings per share 0.78 0.73 0.43 0.60 0.62 1.51 1.05 Diluted earnings per share 0.76 0.71 0.42 0.59 0.60 1.47 1.02 Book value per share 18.27 19.20 21.91 21.55 21.26 PERFORMANCE MEASURES Return on average assets 1.02% 0.83% 0.49% 0.80% 0.94% 0.92% 0.82%Return on average equity 16.18% 12.72% 7.25% 10.45% 11.15% 14.40% 9.54%Net interest margin 3.62% 3.05% 2.90% 2.98% 3.28% 3.33% 3.36%Efficiency ratio 53.43% 63.72% 58.31% 61.91% 62.61% 58.22% 66.94%Average loans to average deposits 66.88% 62.40% 61.83% 64.69% 74.37% 64.62% 76.19% CAPITAL Tier 1 leverage ratio 8.72% 6.85% 6.89% 7.81% 8.64% Common equity tier 1 capital ratio 10.17% 9.09% 8.90% 9.94% 10.57% Tier 1 risk-based capital ratio 10.17% 9.09% 8.90% 9.94% 10.57% Total risk-based capital ratio 12.25% 11.28% 11.11% 12.44% 13.30% SHARES OUTSTANDING Number of common shares outstanding 7,585,924 6,316,573 6,256,682 6,255,752 6,220,872 Average common shares outstanding - basic 6,687,448 5,935,948 5,904,446 5,898,208 5,892,713 6,316,780 5,878,921 Average common shares outstanding - diluted 6,821,245 6,116,306 6,101,778 6,072,085 6,051,243 6,474,959 6,036,233 ASSET QUALITY Allowance for loan losses (ALLL) to total loans 1.09% 1.08% 1.07% 1.19% 1.24% ALLL to nonperforming loans 9211.32% 407.43% 402.40% 388.89% 377.59% Nonperforming assets to total assets 0.01% 0.15% 0.15% 0.18% 0.21% Nonperforming loans to total loans 0.01% 0.27% 0.27% 0.31% 0.33% Net quarterly charge-offs to total loans 0.00% 0.00% 0.25% 0.00% 0.00% AVERAGE BALANCES Gross loans $1,263,071 $1,215,153 $1,154,254 $1,028,098 $1,023,932 $1,239,245 $1,016,796 Investment securities 487,535 436,427 287,915 231,526 200,016 462,122 184,066 Total assets 2,060,297 2,131,587 2,054,545 1,771,292 1,554,049 2,095,745 1,511,559 Deposits 1,888,494 1,947,208 1,866,704 1,589,384 1,376,736 1,917,689 1,334,487 Shareholder's equity 129,235 138,668 138,589 135,721 131,300 133,925 130,079 AT PERIOD END Gross loans $1,338,687 $1,203,657 $1,225,187 $1,074,436 $1,016,200 Investment securities 507,826 468,917 380,170 276,670 208,482 Total assets 2,010,256 2,110,091 2,162,478 1,828,021 1,604,273 Deposits 1,828,752 1,947,278 1,979,410 1,647,613 1,427,177 Shareholder's equity 138,611 121,282 137,100 134,797 132,231 Avidbank Holdings, Inc. Consolidated Balance Sheets (Unaudited) ($000) June 30, March 31, Dec. 31, Sept. 31, June 30, Assets 2022 2022 2021 2021 2021 Cash and due from banks $50,907 $47,091 $29,616 $34,864 $27,977 Due from Federal Reserve Bank 35,913 320,336 463,727 378,380 308,596 Total cash and cash equivalents 86,820 367,427 493,343 413,244 336,573 Investment securities - available for sale 477,646 468,917 308,170 276,670 208,482 Investment securities - held to maturity 30,180 - - - - Total investment securities 507,826 468,917 380,170 276,670 208,482 Loans, net of deferred loan fees 1,336,786 1,201,934 1,223,344 1,073,132 1,014,750 Allowance for loan losses (14,646) (13,054) (13,054) (12,775) (12,558)Loans, net of allowance for loan losses 1,322,140 1,188,880 1,210,290 1,060,357 1,002,192 Bank owned life insurance 32,303 32,087 31,875 31,663 11,559 Premises and equipment, net 4,314 4,331 4,565 4,913 5,138 Other real estate owned - - - - - Accrued interest receivable & other assets 56,853 48,449 42,235 41,174 40,329 Total assets $2,010,256 $2,110,091 $2,162,478 $1,828,021 $1,604,273 Liabilities Non-interest-bearing demand deposits $838,666 $952,035 $993,156 $872,972 $728,522 Interest bearing transaction accounts 45,179 47,711 50,674 49,722 30,538 Money market and savings accounts 848,748 812,701 845,718 614,992 541,145 Time deposits 96,159 134,831 89,862 109,927 126,972 Total deposits 1,828,752 1,947,278 1,979,410 1,647,613 1,427,177 FHLB advances - - - - - Subordinated debt, net 21,754 21,729 21,703 21,671 21,636 Other liabilities 21,139 19,802 24,265 23,940 23,229 Total liabilities 1,871,645 1,988,809 2,025,378 1,693,224 1,472,042 Shareholders' equity Common stock/additional paid-in capital 101,244 72,920 72,799 72,124 71,542 Retained earnings 78,364 73,149 68,801 66,267 62,693 Accumulated other comprehensive (loss) (40,997) (24,787) (4,500) (3,594) (2,004)Total shareholders' equity 138,611 121,282 137,100 134,797 132,231 Total liabilities and shareholders' equity $2,010,256 $2,110,091 $2,162,478 $1,828,021 $1,604,273 Avidbank Holdings, Inc. Consolidated Statements of Income (Unaudited) ($000, except share and per share amounts) Three Months Ended Year-to-Date June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Interest and fees on loans $15,639 $14,163 $12,246 $29,802 $24,363 Interest on investment securities 2,477 1,855 808 4,332 1,507 Other interest income 356 153 59 509 107 Total interest income 18,472 16,171 13,113 34,643 25,977 Deposit interest expense 657 640 651 1,297 1,293 Other interest expense 300 300 310 600 621 Total interest expense 957 940 961 1,897 1,914 Net interest income 17,515 15,231 12,152 32,746 24,063 Provision for loan losses 1,592 - - 1,592 75 Net interest income after provision for loan losses 15,923 15,231 12,152 31,154 23,988 Service charges and bank fees 761 725 736 1,486 1,359 Income from bank owned life insurance 215 212 68 427 135 Gain/(loss) on sale of assets - - 735 - 734 Warrant income 64 86 - 150 22 Other income 187 90 - 277 - Total non-interest income 1,227 1,113 1,539 2,340 2,250 Compensation and benefit expenses 7,129 7,312 6,001 14,441 12,476 Occupancy and equipment expenses 901 894 1,017 1,795 2,088 Data processing 423 411 419 834 841 Regulatory assessments 509 664 279 1,173 558 Professional fees 192 195 179 387 331 Other operating expenses 859 939 677 1,798 1,320 Total non-interest expense 10,013 10,415 8,572 20,428 17,614 Income before income taxes 7,137 5,929 5,119 13,066 8,624 Provision for income taxes 1,923 1,580 1,470 3,503 2,468 Net income $5,214.27 $4,348.67 $3,649.00 $9,562.94 $6,156.00 Basic earnings per common share $0.78 $0.73 $0.62 $1.51 $1.05 Diluted earnings per common share $0.76 $0.71 $0.60 $1.47 $1.02 Average common shares outstanding 6,687,448 5,935,948 5,892,713 6,316,780 5,878,921 Average common fully diluted shares 6,821,245 6,116,306 6,051,243 6,474,959 6,036,233 Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Three Months Ended June 30, 2022 March 31, 2022 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/ExpenseAssets Interest earning assets: Loans (1) $1,263,071 4.97% $15,638 $1,215,153 4.73% $14,163Fed funds sold 191,861 0.74% 353 374,648 0.17% 153Investment securities Taxable investment securities 475,039 2.00% 2,364 436,427 1.72% 1,855Non-taxable investment securities (2) 12,496 4.59% 143 - 0.00% -Total investment securities 487,535 2.06% 2,507 436,427 1.72% 1,855 Total interest-earning assets 1,942,467 3.82% 18,498 2,026,228 3.24% 16,171 Noninterest-earning assets: Cash and due from banks 46,334 42,282 All other assets (3) 71,496 63,077 Total assets $2,060,297 $2,131,587 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $46,242 0.13% $15 $49,199 0.12% $15Money market and savings 835,058 0.21% 440 812,289 0.21% 422Time 121,923 0.66% 202 120,886 0.68% 203Total interest-bearing deposits 1,003,223 0.26% 657 982,374 0.26% 640 Subordinated debt 21,518 5.59% 300 21,714 5.60% 300Total interest-bearing liabilities 1,024,741 0.37% 957 1,004,088 0.38% 940 Noninterest-bearing liabilities: Demand deposits 885,271 964,834 Accrued expenses and other liabilities 21,050 23,997 Shareholders' equity 129,235 138,668 Total liabilities and shareholders' equity $2,060,297 $2,131,587 Net interest income and margin (4) 3.62% $17,541 3.05% $15,231 Non-taxable equivalent net interest margin 3.62% 3.05% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $628 thousand, respectively.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $13.1 million, respectively, is included as a contra asset.(4) Net interest margin is net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Three months ended June 30, 2022 June 30, 2021 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/Expense Assets Interest earning assets: Loans (1) $1,263,071 4.97% $15,638 $1,023,932 4.80% $12,246 Fed funds sold 191,861 0.74% 353 261,159 0.09% 59 Investment securities Taxable investment securities 475,039 2.00% 2,364 200,016 1.62% 808 Non-taxable investment securities (2) 12,496 4.59% 143 - 0.00% - Total investment securities 487,535 2.06% 2,507 200,016 1.62% 808 Total interest-earning assets 1,942,467 3.82% 18,498 1,485,107 3.54% 13,113 Noninterest-earning assets: Cash and due from banks 46,334 25,948 All other assets (3) 71,496 42,994 Total assets $2,060,297 $1,554,049 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $46,242 0.13% $15 $28,649 0.20% $14 Money market and savings 835,058 0.21% 440 518,508 0.31% 398 Time 121,923 0.66% 202 128,480 0.75% 239 Total interest-bearing deposits 1,003,223 0.26% 657 675,637 0.39% 651 Subordinated debt 21,518 5.59% 300 21,619 5.75% 310 Total interest-bearing liabilities 1,024,741 0.37% 957 697,256 0.55% 961 Noninterest-bearing liabilities: Demand deposits 885,271 701,099 Accrued expenses and other liabilities 21,050 24,394 Shareholders' equity 129,235 131,300 Total liabilities and shareholders' equity $2,060,297 $1,554,049 Net interest income and margin (4) 3.62% $17,541 3.28% $12,152 Non-taxable equivalent net interest margin 3.62% 3.28% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $514 thousand, respectively.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.(4) Net interest margin is net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Six months ended June 30, 2022 June 30, 2021 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/Expense Assets Interest earning assets: Loans (1) $1,239,245 4.85% $29,802 $1,016,796 4.83% $24,363 Fed funds sold 282,750 0.36% 509 244,289 0.09% 107 Investment securities Taxable investment securities 455,839 1.87% 4,219 184,066 1.65% 1,507 Non-taxable investment securities (2) 6,283 4.59% 143 - 0.00% - Total investment securities 462,122 1.90% 4,362 184,066 1.65% 1,507 Total interest-earning assets 1,984,117 3.52% 34,673 1,445,151 3.62% 25,977 Noninterest-earning assets: Cash and due from banks 44,319 23,783 All other assets (3) 67,309 42,625 Total assets $2,095,745 $1,511,559 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $47,712 0.13% $31 $27,268 0.20% $27 Money market and savings 823,736 0.21% 862 482,168 0.31% 752 Time 121,408 0.67% 404 133,055 0.78% 514 Total interest-bearing deposits 992,856 0.26% 1,297 642,491 0.41% 1,293 Subordinated debt 21,616 5.60% 600 21,600 5.80% 621 Total interest-bearing liabilities 1,014,472 0.38% 1,897 664,091 0.58% 1,914 Noninterest-bearing liabilities: Demand deposits 924,833 691,996 Accrued expenses and other liabilities 22,515 25,393 Shareholders' equity 133,925 130,079 Total liabilities and shareholders' equity $2,095,745 $1,511,559 Net interest income and margin (4) 3.33% $32,776 3.36% $24,063 Non-taxable equivalent net interest margin 3.33% 3.36% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $1.1 million for both comparative periods.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.(4) Tax equivalent net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Period End Loans (Unaudited) ($000) June 30,2022 March 31,2022 Dec. 31,2021 Sept. 30,2021 June 30,2021 Current QuarterChange Year over YearChange Commercial loans $558,908 $481,522 $517,747 $415,986 $401,584 $77,386 $157,324 Real Estate Commercial real estate Multi-family 165,818 141,954 139,646 128,672 116,259 23,864 49,559 CRE Owner Occupied 108,045 109,502 99,728 89,832 90,626 (1,457) 17,419 Non-Owner Occupied 280,397 258,365 258,507 239,272 195,344 22,032 85,053 Construction and land 209,941 195,388 190,887 182,556 193,709 14,553 16,232 Residential 12,830 13,726 14,484 14,800 15,164 (896) (2,334)Total real estate loans 777,031 718,935 703,252 655,132 611,102 58,096 165,929 Other loans 847 1,477 2,345 2,014 2,064 (630) (1,217) Total loans $1,336,786 $1,201,934 $1,223,344 $1,073,132 $1,014,750 $134,852 $322,036 Avidbank Holdings, Inc. Credit Trends (Unaudited) ($000) 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Allowance for Loan Losses Balance, beginning of quarter $13,054 $13,054 $12,775 $12,558 $12,558 Provision for loan losses, quarterly 1,592 - 3,279 217 - Charge-offs, quarterly - - (3,000) - - Recoveries, quarterly - - - - - Balance, end of quarter $14,646 $13,054 $13,054 $12,775 $12,558 Nonperforming Assets Loans accounted for on a non-accrual basis $159 $3,204 $3,244 $3,285 $3,326 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 159 3,204 3,244 3,285 3,326 Other real estate owned - - - - - Nonperforming assets $159 $3,204 $3,244 $3,285 $3,326 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $159 $3,204 $3,244 $3,285 $3,326 Nonperforming Loans by Type: Commercial $159 $441 $448 $456 $463 Commercial Real Estate Loans - 2,763 2,796 2,829 2,863 Total Nonperforming loans $159 $3,204 $3,244 $3,285 $3,326 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.09% 1.08% 1.07% 1.19% 1.24%ALLL to nonperforming loans 9211.32% 407.43% 402.40% 388.89% 377.59%Nonperforming assets to total assets 0.01% 0.15% 0.15% 0.18% 0.21%Nonperforming loans to total loans 0.01% 0.27% 0.27% 0.31% 0.33%Net quarterly charge-offs to total loans 0.00% 0.00% 0.25% 0.00% 0.00% SOURCE: Avidbank Holdings, Inc.View source version on accesswire.com: https://www.accesswire.com/709156/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Second-Quarter-of-2022
SAN JOSE, CA / ACCESSWIRE / July 20, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the second quarter of 2022 of $5.2 million, or $0.76 per diluted share, compared to $3.6 million, or $0.60 per diluted share, for the second quarter of 2021 and $4.3 million, or $0.71 per diluted share, for the first quarter of 2022.Second Quarter 2022 Financial HighlightsDiluted earnings per share of $0.76, an increase of $0.16, or 27%, compared to the second quarter of 2021, and increased $0.05, or 28% annualized, compared to the first quarter of 2022.Return on average assets was 1.02%, compared to 0.94% in the second quarter of 2021 and 0.83% in the first quarter of 2022.Return on average equity was 16.18%, compared to 11.15% in the second quarter of 2021 and 12.72% in the first quarter of 2022.Taxable equivalent net interest margin was 3.62% in the second quarter of 2022, compared to 3.28% in the second quarter of 2021 and 3.05% in the first quarter of 2022.Loans increased $322 million, or 32%, from June 30, 2021 and increased $135 million, or 45% annualized, from March 31,2022.Annualized net charge-offs to average loans totaled 0.00% for the second quarter and year-to-date 2022. Non-performing assets to total assets were 0.01% on June 30, 2022, a decrease from 0.22% on June 30, 2021 and 0.15% on March 31, 2022.On May 11, 2022, completed a $28.6 million private offering of 1.27 million common shares at $22.50 per share bringing total common shares outstanding to 7,585,924."We continued our solid performance in the second quarter with earnings of $0.76 per diluted share including strong loan growth from a combination of less payoffs, an increase in line utilization, and another quarter of solid new originations," said Mark Mordell, Chairman and Chief Executive Officer. "We are cautiously optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from each increase in the fed funds rate," added Mr. Mordell.Income StatementTaxable equivalent net interest income totaled $17.5 million for the second quarter of 2022, an increase of $5.4 million, or 44%, from the second quarter of 2021, and an increase of $2.3 million, or 60% annualized, from the first quarter of 2022. This was primarily driven by an increase in interest income from higher interest rates and the growth in average balance of loans and investment securities.The yield on loans in the second quarter of 2022 was 4.97%, an increase of 17 basis points from the second quarter of 2021 and an increase of 24 basis points from the first quarter of 2022. The linked quarter increase was primarily due to increases in the Prime rate. Approximately 53% of loans are Prime-based floating rate loans.The cost of deposits in the second quarter of 2022 was 0.14%, a decrease of 5 basis points from the second quarter of 2021 and an increase of 1 basis point from the first quarter of 2022. The cost of interest-bearing deposits in the second quarter of 2022 was 0.26%, remaining flat from the first quarter of 2022.In the second quarter of 2022, we recorded a provision for loan losses of $1.6 million. No loan provision was required in the first quarter of 2022 and the second quarter of 2021. The second quarter provision was primarily attributable to the $135 million increase in loan balances.Non-interest income was $1.2 million in the second quarter of 2022 compared to $1.5 million in the second quarter of 2021 and $1.1 million in the first quarter of 2022. Service charge income totaled $681,000 in the second quarter of 2022, an increase of $159,000, or 30% from the second quarter of 2021, and an increase of $45,000, or 28% annualized, compared to the first quarter of 2022.Non-interest expense totaled $10.0 million in the second quarter of 2022 compared to $8.6 million in the second quarter of 2021 and $10.4 million in the first quarter of 2022. This linked quarter decrease was primarily due to higher capitalized loan origination costs and a decrease in the FDIC regulatory assessment. The number of full-time equivalent employees on June 30, 2022 totaled 132 compared to 130 on March 31, 2022.Balance SheetTotal assets were $2.01 billion as of June 30, 2022, compared to $2.11 billion on March 31, 2022 and $1.60 billion at June 30, 2021. Cash balances held at the Federal Reserve decreased $284 million in the second quarter of 2022 while investments increased $39 million due to the purchase of tax-exempt municipal and mortgage-backed securities.Period end loans on June 30, 2022 totaled $1.34 billion, which represented an increase of $135 million, or 45% annualized, from March 31, 2022, and an increase of $322 million, or 32%, from $1.01 billion at June 30, 2021. Quarterly average loans for the second quarter of 2022 increased $239 million, or 23%, from the second quarter of 2021 and $48 million, or 16% annualized, from the first quarter of 2022.The allowance for loan losses on June 30, 2022 was $14.6 million, representing an increase of $1.6 million from March 31, 2022. The Allowance for Loan Losses to total loans was 1.09% on June 30, 2022, compared to 1.08% on March 31, 2022. Nonperforming loans to total loans was 0.01% on June 30, 2022, a decrease from 0.27% on March 31, 2022. The decrease was primarily attributable to the payoff of a single relationship of approximately $3 million.Period end deposits were $1.83 billion on June 30, 2022 compared to $1.95 billion at March 31, 2022 and an increase of $402 million, or 28%, compared to $1.43 billion at June 30, 2021. Quarterly average deposits for the second quarter of 2022 increased $512 million, or 37%, compared to the second quarter of 2021 and decreased $59 million, or 12% annualized, from the first quarter of 2022.Noninterest bearing deposits represented 45.9% of total deposits on June 30, 2022, compared to 48.9% on March 31, 2022 and 51.0% at June 30, 2021. The loan to deposit ratio was 73.1% on June 30, 2022 compared to 61.7% at March 31, 2022 and 71.1% at June 30, 2021.About AvidbankAvidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in Palo Alto, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, technology and asset-based lending, specialty finance, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.Forward-Looking Statement:This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.Contact:Patrick OakesExecutive Vice President and Chief Financial Officer408-831-5653poakes@avidbank.com AVIDBANK HOLDINGS, INC.Selected Financial Data (Unaudited)($000, except share and per share amounts) For the six months ended 2022 2021 June 30, Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter 2022 2021 INCOME AND PER SHARE HIGHLIGHTS Net income $5,214 $4,349 $2,534 $3,574 $3,649 $9,563 $6,156 Basic earnings per share 0.78 0.73 0.43 0.60 0.62 1.51 1.05 Diluted earnings per share 0.76 0.71 0.42 0.59 0.60 1.47 1.02 Book value per share 18.27 19.20 21.91 21.55 21.26 PERFORMANCE MEASURES Return on average assets 1.02% 0.83% 0.49% 0.80% 0.94% 0.92% 0.82%Return on average equity 16.18% 12.72% 7.25% 10.45% 11.15% 14.40% 9.54%Net interest margin 3.62% 3.05% 2.90% 2.98% 3.28% 3.33% 3.36%Efficiency ratio 53.43% 63.72% 58.31% 61.91% 62.61% 58.22% 66.94%Average loans to average deposits 66.88% 62.40% 61.83% 64.69% 74.37% 64.62% 76.19% CAPITAL Tier 1 leverage ratio 8.72% 6.85% 6.89% 7.81% 8.64% Common equity tier 1 capital ratio 10.17% 9.09% 8.90% 9.94% 10.57% Tier 1 risk-based capital ratio 10.17% 9.09% 8.90% 9.94% 10.57% Total risk-based capital ratio 12.25% 11.28% 11.11% 12.44% 13.30% SHARES OUTSTANDING Number of common shares outstanding 7,585,924 6,316,573 6,256,682 6,255,752 6,220,872 Average common shares outstanding - basic 6,687,448 5,935,948 5,904,446 5,898,208 5,892,713 6,316,780 5,878,921 Average common shares outstanding - diluted 6,821,245 6,116,306 6,101,778 6,072,085 6,051,243 6,474,959 6,036,233 ASSET QUALITY Allowance for loan losses (ALLL) to total loans 1.09% 1.08% 1.07% 1.19% 1.24% ALLL to nonperforming loans 9211.32% 407.43% 402.40% 388.89% 377.59% Nonperforming assets to total assets 0.01% 0.15% 0.15% 0.18% 0.21% Nonperforming loans to total loans 0.01% 0.27% 0.27% 0.31% 0.33% Net quarterly charge-offs to total loans 0.00% 0.00% 0.25% 0.00% 0.00% AVERAGE BALANCES Gross loans $1,263,071 $1,215,153 $1,154,254 $1,028,098 $1,023,932 $1,239,245 $1,016,796 Investment securities 487,535 436,427 287,915 231,526 200,016 462,122 184,066 Total assets 2,060,297 2,131,587 2,054,545 1,771,292 1,554,049 2,095,745 1,511,559 Deposits 1,888,494 1,947,208 1,866,704 1,589,384 1,376,736 1,917,689 1,334,487 Shareholder's equity 129,235 138,668 138,589 135,721 131,300 133,925 130,079 AT PERIOD END Gross loans $1,338,687 $1,203,657 $1,225,187 $1,074,436 $1,016,200 Investment securities 507,826 468,917 380,170 276,670 208,482 Total assets 2,010,256 2,110,091 2,162,478 1,828,021 1,604,273 Deposits 1,828,752 1,947,278 1,979,410 1,647,613 1,427,177 Shareholder's equity 138,611 121,282 137,100 134,797 132,231 Avidbank Holdings, Inc. Consolidated Balance Sheets (Unaudited) ($000) June 30, March 31, Dec. 31, Sept. 31, June 30, Assets 2022 2022 2021 2021 2021 Cash and due from banks $50,907 $47,091 $29,616 $34,864 $27,977 Due from Federal Reserve Bank 35,913 320,336 463,727 378,380 308,596 Total cash and cash equivalents 86,820 367,427 493,343 413,244 336,573 Investment securities - available for sale 477,646 468,917 308,170 276,670 208,482 Investment securities - held to maturity 30,180 - - - - Total investment securities 507,826 468,917 380,170 276,670 208,482 Loans, net of deferred loan fees 1,336,786 1,201,934 1,223,344 1,073,132 1,014,750 Allowance for loan losses (14,646) (13,054) (13,054) (12,775) (12,558)Loans, net of allowance for loan losses 1,322,140 1,188,880 1,210,290 1,060,357 1,002,192 Bank owned life insurance 32,303 32,087 31,875 31,663 11,559 Premises and equipment, net 4,314 4,331 4,565 4,913 5,138 Other real estate owned - - - - - Accrued interest receivable & other assets 56,853 48,449 42,235 41,174 40,329 Total assets $2,010,256 $2,110,091 $2,162,478 $1,828,021 $1,604,273 Liabilities Non-interest-bearing demand deposits $838,666 $952,035 $993,156 $872,972 $728,522 Interest bearing transaction accounts 45,179 47,711 50,674 49,722 30,538 Money market and savings accounts 848,748 812,701 845,718 614,992 541,145 Time deposits 96,159 134,831 89,862 109,927 126,972 Total deposits 1,828,752 1,947,278 1,979,410 1,647,613 1,427,177 FHLB advances - - - - - Subordinated debt, net 21,754 21,729 21,703 21,671 21,636 Other liabilities 21,139 19,802 24,265 23,940 23,229 Total liabilities 1,871,645 1,988,809 2,025,378 1,693,224 1,472,042 Shareholders' equity Common stock/additional paid-in capital 101,244 72,920 72,799 72,124 71,542 Retained earnings 78,364 73,149 68,801 66,267 62,693 Accumulated other comprehensive (loss) (40,997) (24,787) (4,500) (3,594) (2,004)Total shareholders' equity 138,611 121,282 137,100 134,797 132,231 Total liabilities and shareholders' equity $2,010,256 $2,110,091 $2,162,478 $1,828,021 $1,604,273 Avidbank Holdings, Inc. Consolidated Statements of Income (Unaudited) ($000, except share and per share amounts) Three Months Ended Year-to-Date June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Interest and fees on loans $15,639 $14,163 $12,246 $29,802 $24,363 Interest on investment securities 2,477 1,855 808 4,332 1,507 Other interest income 356 153 59 509 107 Total interest income 18,472 16,171 13,113 34,643 25,977 Deposit interest expense 657 640 651 1,297 1,293 Other interest expense 300 300 310 600 621 Total interest expense 957 940 961 1,897 1,914 Net interest income 17,515 15,231 12,152 32,746 24,063 Provision for loan losses 1,592 - - 1,592 75 Net interest income after provision for loan losses 15,923 15,231 12,152 31,154 23,988 Service charges and bank fees 761 725 736 1,486 1,359 Income from bank owned life insurance 215 212 68 427 135 Gain/(loss) on sale of assets - - 735 - 734 Warrant income 64 86 - 150 22 Other income 187 90 - 277 - Total non-interest income 1,227 1,113 1,539 2,340 2,250 Compensation and benefit expenses 7,129 7,312 6,001 14,441 12,476 Occupancy and equipment expenses 901 894 1,017 1,795 2,088 Data processing 423 411 419 834 841 Regulatory assessments 509 664 279 1,173 558 Professional fees 192 195 179 387 331 Other operating expenses 859 939 677 1,798 1,320 Total non-interest expense 10,013 10,415 8,572 20,428 17,614 Income before income taxes 7,137 5,929 5,119 13,066 8,624 Provision for income taxes 1,923 1,580 1,470 3,503 2,468 Net income $5,214.27 $4,348.67 $3,649.00 $9,562.94 $6,156.00 Basic earnings per common share $0.78 $0.73 $0.62 $1.51 $1.05 Diluted earnings per common share $0.76 $0.71 $0.60 $1.47 $1.02 Average common shares outstanding 6,687,448 5,935,948 5,892,713 6,316,780 5,878,921 Average common fully diluted shares 6,821,245 6,116,306 6,051,243 6,474,959 6,036,233 Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Three Months Ended June 30, 2022 March 31, 2022 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/ExpenseAssets Interest earning assets: Loans (1) $1,263,071 4.97% $15,638 $1,215,153 4.73% $14,163Fed funds sold 191,861 0.74% 353 374,648 0.17% 153Investment securities Taxable investment securities 475,039 2.00% 2,364 436,427 1.72% 1,855Non-taxable investment securities (2) 12,496 4.59% 143 - 0.00% -Total investment securities 487,535 2.06% 2,507 436,427 1.72% 1,855 Total interest-earning assets 1,942,467 3.82% 18,498 2,026,228 3.24% 16,171 Noninterest-earning assets: Cash and due from banks 46,334 42,282 All other assets (3) 71,496 63,077 Total assets $2,060,297 $2,131,587 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $46,242 0.13% $15 $49,199 0.12% $15Money market and savings 835,058 0.21% 440 812,289 0.21% 422Time 121,923 0.66% 202 120,886 0.68% 203Total interest-bearing deposits 1,003,223 0.26% 657 982,374 0.26% 640 Subordinated debt 21,518 5.59% 300 21,714 5.60% 300Total interest-bearing liabilities 1,024,741 0.37% 957 1,004,088 0.38% 940 Noninterest-bearing liabilities: Demand deposits 885,271 964,834 Accrued expenses and other liabilities 21,050 23,997 Shareholders' equity 129,235 138,668 Total liabilities and shareholders' equity $2,060,297 $2,131,587 Net interest income and margin (4) 3.62% $17,541 3.05% $15,231 Non-taxable equivalent net interest margin 3.62% 3.05% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $628 thousand, respectively.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $13.1 million, respectively, is included as a contra asset.(4) Net interest margin is net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Three months ended June 30, 2022 June 30, 2021 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/Expense Assets Interest earning assets: Loans (1) $1,263,071 4.97% $15,638 $1,023,932 4.80% $12,246 Fed funds sold 191,861 0.74% 353 261,159 0.09% 59 Investment securities Taxable investment securities 475,039 2.00% 2,364 200,016 1.62% 808 Non-taxable investment securities (2) 12,496 4.59% 143 - 0.00% - Total investment securities 487,535 2.06% 2,507 200,016 1.62% 808 Total interest-earning assets 1,942,467 3.82% 18,498 1,485,107 3.54% 13,113 Noninterest-earning assets: Cash and due from banks 46,334 25,948 All other assets (3) 71,496 42,994 Total assets $2,060,297 $1,554,049 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $46,242 0.13% $15 $28,649 0.20% $14 Money market and savings 835,058 0.21% 440 518,508 0.31% 398 Time 121,923 0.66% 202 128,480 0.75% 239 Total interest-bearing deposits 1,003,223 0.26% 657 675,637 0.39% 651 Subordinated debt 21,518 5.59% 300 21,619 5.75% 310 Total interest-bearing liabilities 1,024,741 0.37% 957 697,256 0.55% 961 Noninterest-bearing liabilities: Demand deposits 885,271 701,099 Accrued expenses and other liabilities 21,050 24,394 Shareholders' equity 129,235 131,300 Total liabilities and shareholders' equity $2,060,297 $1,554,049 Net interest income and margin (4) 3.62% $17,541 3.28% $12,152 Non-taxable equivalent net interest margin 3.62% 3.28% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $514 thousand, respectively.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.(4) Net interest margin is net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Average Balance Sheets and Net Interest Margin Analysis Selected Financial Information (Unaudited) ($000) Six months ended June 30, 2022 June 30, 2021 AverageBalance YieldsorRates InterestIncome/Expense AverageBalance YieldsorRates InterestIncome/Expense Assets Interest earning assets: Loans (1) $1,239,245 4.85% $29,802 $1,016,796 4.83% $24,363 Fed funds sold 282,750 0.36% 509 244,289 0.09% 107 Investment securities Taxable investment securities 455,839 1.87% 4,219 184,066 1.65% 1,507 Non-taxable investment securities (2) 6,283 4.59% 143 - 0.00% - Total investment securities 462,122 1.90% 4,362 184,066 1.65% 1,507 Total interest-earning assets 1,984,117 3.52% 34,673 1,445,151 3.62% 25,977 Noninterest-earning assets: Cash and due from banks 44,319 23,783 All other assets (3) 67,309 42,625 Total assets $2,095,745 $1,511,559 Liabilities and Shareholder's Equity Interest-bearing liabilities: Deposits Demand $47,712 0.13% $31 $27,268 0.20% $27 Money market and savings 823,736 0.21% 862 482,168 0.31% 752 Time 121,408 0.67% 404 133,055 0.78% 514 Total interest-bearing deposits 992,856 0.26% 1,297 642,491 0.41% 1,293 Subordinated debt 21,616 5.60% 600 21,600 5.80% 621 Total interest-bearing liabilities 1,014,472 0.38% 1,897 664,091 0.58% 1,914 Noninterest-bearing liabilities: Demand deposits 924,833 691,996 Accrued expenses and other liabilities 22,515 25,393 Shareholders' equity 133,925 130,079 Total liabilities and shareholders' equity $2,095,745 $1,511,559 Net interest income and margin (4) 3.33% $32,776 3.36% $24,063 Non-taxable equivalent net interest margin 3.33% 3.36% (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $1.1 million for both comparative periods.(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.(4) Tax equivalent net interest income divided by total interest-earning assets.Avidbank Holdings, Inc. Period End Loans (Unaudited) ($000) June 30,2022 March 31,2022 Dec. 31,2021 Sept. 30,2021 June 30,2021 Current QuarterChange Year over YearChange Commercial loans $558,908 $481,522 $517,747 $415,986 $401,584 $77,386 $157,324 Real Estate Commercial real estate Multi-family 165,818 141,954 139,646 128,672 116,259 23,864 49,559 CRE Owner Occupied 108,045 109,502 99,728 89,832 90,626 (1,457) 17,419 Non-Owner Occupied 280,397 258,365 258,507 239,272 195,344 22,032 85,053 Construction and land 209,941 195,388 190,887 182,556 193,709 14,553 16,232 Residential 12,830 13,726 14,484 14,800 15,164 (896) (2,334)Total real estate loans 777,031 718,935 703,252 655,132 611,102 58,096 165,929 Other loans 847 1,477 2,345 2,014 2,064 (630) (1,217) Total loans $1,336,786 $1,201,934 $1,223,344 $1,073,132 $1,014,750 $134,852 $322,036 Avidbank Holdings, Inc. Credit Trends (Unaudited) ($000) 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Allowance for Loan Losses Balance, beginning of quarter $13,054 $13,054 $12,775 $12,558 $12,558 Provision for loan losses, quarterly 1,592 - 3,279 217 - Charge-offs, quarterly - - (3,000) - - Recoveries, quarterly - - - - - Balance, end of quarter $14,646 $13,054 $13,054 $12,775 $12,558 Nonperforming Assets Loans accounted for on a non-accrual basis $159 $3,204 $3,244 $3,285 $3,326 Loans with principal or interest contractually past due 90 days or more and still accruing interest - - - - - Nonperforming loans 159 3,204 3,244 3,285 3,326 Other real estate owned - - - - - Nonperforming assets $159 $3,204 $3,244 $3,285 $3,326 Loans restructured and in compliance with modified terms - - - - - Nonperforming assets & restructured loans $159 $3,204 $3,244 $3,285 $3,326 Nonperforming Loans by Type: Commercial $159 $441 $448 $456 $463 Commercial Real Estate Loans - 2,763 2,796 2,829 2,863 Total Nonperforming loans $159 $3,204 $3,244 $3,285 $3,326 Asset Quality Ratios Allowance for loan losses (ALLL) to total loans 1.09% 1.08% 1.07% 1.19% 1.24%ALLL to nonperforming loans 9211.32% 407.43% 402.40% 388.89% 377.59%Nonperforming assets to total assets 0.01% 0.15% 0.15% 0.18% 0.21%Nonperforming loans to total loans 0.01% 0.27% 0.27% 0.31% 0.33%Net quarterly charge-offs to total loans 0.00% 0.00% 0.25% 0.00% 0.00% SOURCE: Avidbank Holdings, Inc.View source version on accesswire.com: https://www.accesswire.com/709156/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Second-Quarter-of-2022