In This Article:
SAN JOSE, CA / ACCESS Newswire / January 27, 2025 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced net income for the fourth quarter of 2024 of $6.5 million, or $0.84 per diluted share, compared to $5.8 million, or $0.77 per diluted share, for the third quarter of 2024 and $303,000, or $0.04 per diluted share, for the fourth quarter of 2023. Adjusted net income (Non-GAAP) (1) totaled $4.9 million, or $0.65 per diluted share for the fourth quarter of 2023.
Fourth Quarter 2024 Highlights
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Return on average assets improved to 1.14% compared to 1.02% in the third quarter of 2024 and 0.05% in the fourth quarter of 2023 (or 0.89% adjusted return on average assets (Non-GAAP) (1) ).
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Loans increased $78.2 million, or 18% annualized, from September 30, 2024, and $124.3 million, or 7%, from December 31, 2023.
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Taxable equivalent net interest margin (1) expanded to 3.49% in the fourth quarter of 2024, compared to 3.35% in the third quarter of 2024.
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Average deposits increased $88.4 million, or 20% annualized, from the third quarter of 2024 and $185.5 million, or 11%, from the fourth quarter of 2023.
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Net charge-offs totaled $4.3 million due to the charge-off of a venture lending relationship. This relationship consisted of two loans, including a $2.3 million loan that was placed on nonaccrual with a specific reserve of $2.3 million in the second quarter of 2024.
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As of December 31, 2024, nonperforming assets improved to 0.06% of total assets from September 30, 2024, and classified loans improved to 0.22% of total loans, compared to the prior quarter end.
"We are pleased with what our team accomplished in 2024. After the events of 2023, strengthening our balance sheet was our top priority for 2024 and we made great progress. Additionally, we finished the year with strong loan growth, an expanding net interest margin and a meaningful improvement in fee income. Although deposits decreased slightly during the fourth quarter, we grew core deposits $262 million in 2024 and have a robust pipeline as we enter 2025," said Mark D. Mordell, Chairman and Chief Executive Officer.
"The $4.3 million charge-off was a venture lending relationship that had been classified for the past 36 months while the borrower worked to find a buyer. Although the company is still operating, the length of time spent as a classified loan and the lack of progress finding a buyer led to the decision to charge off the loan. We believe a recovery is not likely, but we will continue to work with the borrower to maximize any chance at a recovery. We remain committed to maintaining excellent credit quality. I am pleased with the overall quality of our loan portfolio at year end, with nonperforming assets only 0.06% of total assets and classified loans 0.22% of total loans," added Mr. Mordell.
Income Statement
Net income totaled $6.5 million for the fourth quarter of 2024, an increase of $611,000 from the third quarter of 2024, and an increase of $6.2 million from the fourth quarter of 2023. A $1.0 million decrease in noninterest expense was a primary contributor to the improvement in net income compared to the third quarter of 2024. This decrease in noninterest expense was primarily due to lower incentive expense and an increase in capitalized loan origination costs.
Taxable equivalent net interest income (1) totaled $19.2 million for the fourth quarter of 2024, an increase of $587,000, or 13% annualized, from the third quarter of 2024, and an increase of $780,000, or 4%, from the fourth quarter of 2023. The taxable equivalent net interest margin was 3.49% in the fourth quarter of 2024, an increase of 14 basis points compared to the third quarter of 2024, and flat compared to the fourth quarter of 2023. The increase in taxable equivalent net interest margin compared to the prior quarter was primarily driven by a decrease in average short-term borrowings and a lower cost of deposits.
The yield on loans in the fourth quarter of 2024 was 7.07%, a decrease of 31 basis points from the third quarter of 2024 and a decrease of 18 basis points from the fourth quarter of 2023. The overall decrease in loan yields compared to prior periods was driven by the reduction in the Prime rate.
The cost of deposits in the fourth quarter of 2024 was 2.94%, a decrease of 28 basis points from the third quarter of 2024 and an increase of 23 basis points from the fourth quarter of 2023. The cost of interest-bearing deposits in the fourth quarter of 2024 was 3.79% compared to 4.16% in the third quarter of 2024 and 3.80% in the fourth quarter of 2023, a decrease of 37 basis points and one basis point, respectively.
The provision for credit losses was $779,000 in the fourth quarter of 2024, compared to $0 in the third quarter of 2024 and $1.3 million in the fourth quarter of 2023. The provision was higher in the fourth quarter of 2024 compared to the third quarter primarily due to the $4.3 million charge-off of a venture lending relationship and loan growth, offset by improved economic forecasts.
Noninterest income was $1.8 million in the fourth quarter of 2024 compared to $1.8 million in the third quarter of 2024 and $(4.6) million in the fourth quarter of 2023. The fourth quarter of 2024 included income of $637,000 from fund investments and $150,000 in final proceeds from the settlement related to a previously sold foreclosed property. The fourth quarter of 2023 included a $5.40 million loss on sale of securities, a $165,000 loss on the sale of a foreclosed property, and a loss of $116,000 from changes in the fair value of fund investments.
Noninterest expense totaled $11.1 million for the fourth quarter of 2024, a decrease of $1.0 million compared to the third quarter of 2024, and a decrease of $498,000 from the fourth quarter of 2023. The decrease from the third quarter was primarily due to lower incentive expense and an increase in capitalized loan origination costs. There were 148 full-time equivalent employees on December 31, 2024, compared to 146 on September 30, 2024.
Balance Sheet
Total assets were $2.30 billion as of December 31, 2024, compared to $2.30 billion as of September 30, 2024, and $2.23 billion at December 31, 2023. Cash and cash equivalents were $82.7 million on December 31, 2024, compared to $136.5 million on September 30, 2024, and $81.4 million on December 31, 2023.
Period end loans on December 31, 2024, totaled $1.86 billion, an increase of $78.2 million, or 18% annualized, from September 30, 2024, and an increase of $124.3 million, or 7%, from December 31, 2023. The increase in loans during the fourth quarter of 2024 included an increase of $57.5 million in commercial loans and a $16.1 million increase in multi-family loans. Quarterly average loans for the fourth quarter of 2024 increased $11.7 million, or 1%, from the third quarter of 2024 and increased $117.2 million, or 7%, from the fourth quarter of 2023.
The allowance for credit losses on loans was $18.7 million on December 31, 2024, representing a decrease of $3.6 million from September 30, 2024. The allowance for credit losses - loans and unfunded commitments to total loans was 1.12% on December 31, 2024, compared to 1.37% on September 30, 2024. Nonperforming loans to total loans was 0.07% on December 31, 3024 compared to 0.20% at September 30, 2024.
Investment securities were $296.6 million as of December 31, 2024, compared to $316.7 million on September 30, 2024, and $325.3 million as of December 31, 2023.
Period end deposits were $1.89 billion on December 31, 2024, a decrease of $10.2 million, or 2% annualized, from September 30, 2024. The change in deposits during the fourth quarter of 2024 included a $33.7 million decrease in interest-bearing checking, offset by a $12.9 million increase in brokered deposits. Quarterly average deposits for the fourth quarter of 2024 were $1.89 billion, an increase of $88.4 million from the third quarter of 2024, and an increase of $185.5 million from the fourth quarter of 2023.
Short-term borrowings on December 31, 2024, totaled $185.0 million, an increase of $25.0 million, or 16%, compared to September 30, 2024. The Company paid back $70.0 million of remaining borrowings from the Bank Term Funding Program (BTFP) during the fourth quarter of 2024.
Book value per share was $23.57 on December 31, 2024, a decrease of $0.38 compared to $23.95 on September 30, 2024. Total shareholders' equity was $186.4 million on December 31, 2024, a decrease of $2.2 million compared to September 30, 2024. This included an increase in retained earnings of $6.5 million offset by an increase in accumulated other comprehensive loss of $9.4 million compared to September 30, 2024.
(1) A Non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.
About Avidbank
Avidbank Holdings, Inc. (OTC PINK:AVBH), headquartered in San Jose, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, fund finance, and real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.
Non-GAAP Financial Measures
This news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to results presented in accordance with GAAP. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company's current quarter and year-to-date results and facilitate comparison of our performance with the performance of our peers. Where applicable, the Company has also presented comparable earnings information using GAAP financial measures. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Forward-Looking Statements
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 nonperforming 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 timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.
Contact: Patrick Oakes
Executive Vice President and Chief Financial Officer
408-200-7390
IR@avidbank.com
AVIDBANK HOLDINGS, INC.
Selected Financial Data (Unaudited)
(in thousands, except share and per share amounts)
| Twelve months ended | ||||||||||||||||||||||||||||
| 2024 | 2023 | December 31, | ||||||||||||||||||||||||||
| Fourth | Third | Second | First | Fourth | ||||||||||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | 2024 | 2023 | ||||||||||||||||||||||
| INCOME HIGHLIGHTS | ||||||||||||||||||||||||||||
| Net income | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 303 | $ | 21,015 | $ | 16,801 | ||||||||||||||
| Loss on sale of securities, net of tax | - | - | - | - | 3,888 | - | 4,483 | |||||||||||||||||||||
| Severance, net of income tax | - | - | - | - | 233 | - | 233 | |||||||||||||||||||||
| BOLI surrender tax expense | - | - | - | - | 478 | - | 478 | |||||||||||||||||||||
| Adjusted net income(1) | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 4,902 | $ | 21,015 | $ | 21,995 | ||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.87 | $ | 0.79 | $ | 0.47 | $ | 0.71 | $ | 0.04 | $ | 2.83 | $ | 2.29 | ||||||||||||||
| Diluted earnings per share | 0.84 | 0.77 | 0.46 | 0.69 | 0.04 | 2.76 | 2.24 | |||||||||||||||||||||
| Adjusted diluted earnings per share(1) | 0.84 | 0.77 | 0.46 | 0.69 | 0.65 | 2.76 | 2.94 | |||||||||||||||||||||
| Book value per share | 23.57 | 23.95 | 21.77 | 21.41 | 21.27 | 23.57 | 21.27 | |||||||||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||||||||||
| Return on average assets(2) | 1.14 | % | 1.02 | % | 0.62 | % | 0.95 | % | 0.05 | % | 0.93 | % | 0.77 | % | ||||||||||||||
| Adjusted return on average assets(1)(2) | 1.14 | % | 1.02 | % | 0.62 | % | 0.95 | % | 0.89 | % | 0.93 | % | 1.01 | % | ||||||||||||||
| Return on average equity(2) | 13.65 | % | 12.97 | % | 8.35 | % | 12.64 | % | 0.81 | % | 11.98 | % | 11.20 | % | ||||||||||||||
| Net interest margin | 3.49 | % | 3.35 | % | 3.39 | % | 3.54 | % | 3.49 | % | 3.44 | % | 3.53 | % | ||||||||||||||
| Efficiency ratio | 52.53 | % | 59.29 | % | 59.92 | % | 61.62 | % | 83.68 | % | 58.27 | % | 61.90 | % | ||||||||||||||
| Average loans to average deposits | 95.86 | % | 99.90 | % | 103.19 | % | 101.85 | % | 99.41 | % | 100.10 | % | 95.75 | % | ||||||||||||||
| CAPITAL | ||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.35 | % | 9.93 | % | 9.64 | % | 9.88 | % | 9.77 | % | 10.35 | % | 9.77 | % | ||||||||||||||
| Common equity tier 1 capital ratio | 10.59 | % | 10.75 | % | 10.08 | % | 10.03 | % | 9.88 | % | 10.59 | % | 9.88 | % | ||||||||||||||
| Tier 1 risk-based capital ratio | 10.59 | % | 10.75 | % | 10.08 | % | 10.03 | % | 9.88 | % | 10.59 | % | 9.88 | % | ||||||||||||||
| Total risk-based capital ratio | 12.30 | % | 12.92 | % | 12.17 | % | 12.01 | % | 11.86 | % | 12.30 | % | 11.86 | % | ||||||||||||||
| Tangible common equity ratio | 8.09 | % | 8.21 | % | 7.50 | % | 7.40 | % | 7.41 | % | 8.09 | % | 7.41 | % | ||||||||||||||
| SHARES OUTSTANDING | ||||||||||||||||||||||||||||
| Number of common shares outstanding | 7,906,761 | 7,871,818 | 7,876,082 | 7,803,900 | 7,770,439 | 7,906,761 | 7,770,439 | |||||||||||||||||||||
| Average common shares outstanding - basic | 7,455,650 | 7,434,726 | 7,426,949 | 7,386,639 | 7,344,693 | 7,426,096 | 7,323,172 | |||||||||||||||||||||
| Average common shares outstanding - diluted | 7,661,711 | 7,622,428 | 7,578,613 | 7,551,406 | 7,543,616 | 7,604,442 | 7,490,779 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Allowance for credit losses to total loans | 1.12 | % | 1.37 | % | 1.36 | % | 1.21 | % | 1.22 | % | 1.12 | % | 1.22 | % | ||||||||||||||
| Nonperforming assets to total assets | 0.06 | % | 0.16 | % | 0.16 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||||||||||||
| Nonperforming loans to total loans | 0.07 | % | 0.20 | % | 0.20 | % | 0.08 | % | 0.08 | % | 0.07 | % | 0.08 | % | ||||||||||||||
| Net charge-offs to average loans(2) | 0.93 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.24 | % | 0.01 | % | ||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Loans, net of deferred loan fees | $ | 1,815,933 | $ | 1,804,107 | $ | 1,813,422 | $ | 1,756,770 | $ | 1,698,690 | $ | 1,797,626 | $ | 1,621,283 | ||||||||||||||
| Investment securities | 308,502 | 311,450 | 307,294 | 319,440 | 337,808 | 311,662 | 382,108 | |||||||||||||||||||||
| Total assets | 2,250,086 | 2,272,623 | 2,265,583 | 2,222,778 | 2,191,198 | 2,252,814 | 2,173,969 | |||||||||||||||||||||
| Deposits | 1,894,321 | 1,805,935 | 1,757,320 | 1,724,845 | 1,708,789 | 1,795,904 | 1,693,195 | |||||||||||||||||||||
| Shareholders' equity | 188,170 | 179,260 | 166,874 | 166,907 | 148,723 | 175,348 | 150,045 | |||||||||||||||||||||
| (1) A Non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table. | ||||||||||||||||||||||||||||
AVIDBANK HOLDINGS, INC.
Consolidated Balance Sheets (Unaudited)
| (in thousands) | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Assets | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Cash and due from banks | $ | 8,662 | $ | 15,172 | $ | 13,750 | $ | 9,971 | $ | 9,546 | ||||||||||
| Due from Federal Reserve Bank | ||||||||||||||||||||
| and interest-bearing deposits in banks | 74,039 | 121,361 | 97,974 | 80,208 | 71,850 | |||||||||||||||
| Total cash and cash equivalents | 82,701 | 136,533 | 111,724 | 90,179 | 81,396 | |||||||||||||||
| Investment securities - available for sale | 296,556 | 316,741 | 308,661 | 314,793 | 325,320 | |||||||||||||||
| Total investment securities | 296,556 | 316,741 | 308,661 | 314,793 | 325,320 | |||||||||||||||
| Loans, net of deferred loan fees | 1,864,942 | 1,786,756 | 1,806,607 | 1,783,024 | 1,740,647 | |||||||||||||||
| Allowance for credit losses on loans | (18,679 | ) | (22,315 | ) | (22,410 | ) | (19,342 | ) | (19,131 | ) | ||||||||||
| Loans, net of allowance for credit losses on loans | 1,846,263 | 1,764,441 | 1,784,197 | 1,763,682 | 1,721,516 | |||||||||||||||
| Bank owned life insurance | 12,674 | 12,580 | 12,490 | 12,401 | 12,315 | |||||||||||||||
| Premises and equipment, net | 2,331 | 2,549 | 2,810 | 3,061 | 3,297 | |||||||||||||||
| Other real estate owned | - | - | - | - | - | |||||||||||||||
| Accrued interest receivable and other assets | 63,963 | 62,625 | 67,139 | 72,395 | 86,992 | |||||||||||||||
| Total assets | $ | 2,304,488 | $ | 2,295,469 | $ | 2,287,021 | $ | 2,256,511 | $ | 2,230,836 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing demand | $ | 414,327 | $ | 405,528 | $ | 405,644 | $ | 477,728 | $ | 472,517 | ||||||||||
| Interest-bearing checking | 993,219 | 1,026,898 | 840,839 | 764,766 | 740,902 | |||||||||||||||
| Money market and savings | 338,578 | 336,166 | 312,162 | 319,692 | 298,117 | |||||||||||||||
| Time | 74,468 | 75,033 | 99,239 | 56,140 | 46,676 | |||||||||||||||
| Brokered | 70,763 | 57,903 | 80,608 | 139,532 | 96,117 | |||||||||||||||
| Total deposits | 1,891,355 | 1,901,528 | 1,738,492 | 1,757,858 | 1,654,329 | |||||||||||||||
| Subordinated debt, net | 22,000 | 21,982 | 21,957 | 21,931 | 21,906 | |||||||||||||||
| Short-term borrowings | 185,000 | 160,000 | 330,000 | 290,000 | 360,000 | |||||||||||||||
| Accrued interest payable and other liabilities | 19,771 | 23,438 | 25,123 | 19,638 | 29,289 | |||||||||||||||
| Total liabilities | 2,118,126 | 2,106,948 | 2,115,572 | 2,089,427 | 2,065,524 | |||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||
| Common stock | 106,997 | 106,169 | 105,487 | 104,771 | 104,499 | |||||||||||||||
| Retained earnings | 130,703 | 124,246 | 118,400 | 114,934 | 109,688 | |||||||||||||||
| Accumulated other comprehensive (loss) | (51,338 | ) | (41,894 | ) | (52,438 | ) | (52,621 | ) | (48,875 | ) | ||||||||||
| Total shareholders' equity | 186,362 | 188,521 | 171,449 | 167,084 | 165,312 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,304,488 | $ | 2,295,469 | $ | 2,287,021 | $ | 2,256,511 | $ | 2,230,836 | ||||||||||
AVIDBANK HOLDINGS, INC.
Consolidated Statements of Income (Unaudited)
(in thousands, except share and per share amounts)
| Three months ended | Twelve months ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Interest and fees on loans | $ | 32,308 | $ | 33,488 | $ | 33,255 | $ | 31,828 | $ | 31,078 | $ | 130,878 | $ | 112,494 | ||||||||||||||
| Interest on investment securities | 1,770 | 1,767 | 1,801 | 1,824 | 1,979 | 7,162 | 8,658 | |||||||||||||||||||||
| Federal Home Loan Bank dividends(1) | 185 | 183 | 193 | 190 | 172 | 752 | 690 | |||||||||||||||||||||
| Other interest income | 681 | 1,198 | 951 | 819 | 654 | 3,649 | 3,140 | |||||||||||||||||||||
| Total interest income | 34,944 | 36,636 | 36,200 | 34,661 | 33,883 | 142,441 | 124,982 | |||||||||||||||||||||
| Deposit interest expense | 14,015 | 14,602 | 13,494 | 12,034 | 11,692 | 54,146 | 36,414 | |||||||||||||||||||||
| Interest on short-term borrowings | 1,437 | 3,121 | 3,880 | 3,442 | 3,467 | 11,879 | 13,808 | |||||||||||||||||||||
| Interest on subordinated debt | 293 | 300 | 300 | 300 | 300 | ...1,194 | 1,201 | |||||||||||||||||||||
| Total interest expense | 15,745 | 18,023 | 17,674 | 15,776 | 15,459 | 67,219 | 51,423 | |||||||||||||||||||||
| Net interest income | 19,199 | 18,613 | 18,526 | 18,885 | 18,424 | 75,222 | 73,559 | |||||||||||||||||||||
| Provision for credit losses | 779 | - | 2,998 | 319 | 1,266 | 4,096 | 3,042 | |||||||||||||||||||||
| Net interest income after provision for credit losses | 18,420 | 18,613 | 15,528 | 18,566 | 17,158 | 71,126 | 70,517 | |||||||||||||||||||||
| Service charges and bank fees | 649 | 675 | 658 | 618 | 613 | 2,600 | 2,209 | |||||||||||||||||||||
| Foreign exchange income | 191 | 246 | 208 | 251 | 210 | 896 | 411 | |||||||||||||||||||||
| Income from bank owned life insurance | 93 | 90 | 137 | 187 | 201 | 508 | 894 | |||||||||||||||||||||
| Gain/(loss) on sale of securities | - | - | - | - | (5,399 | ) | - | (6,214 | ) | |||||||||||||||||||
| Warrant and success fee income | 65 | - | - | - | 15 | 65 | 23 | |||||||||||||||||||||
| Other investment income | 637 | 240 | 59 | 155 | (116 | ) | 1,092 | 56 | ||||||||||||||||||||
| Loss on sale of ORE | - | - | - | - | (165 | ) | - | (165 | ) | |||||||||||||||||||
| Other income | 205 | 539 | 36 | 72 | 19 | 849 | 134 | |||||||||||||||||||||
| Total noninterest income | 1,840 | 1,790 | 1,098 | 1,283 | (4,622 | ) | 6,010 | (2,652 | ) | |||||||||||||||||||
| Salaries and benefit expenses | 7,389 | 8,336 | 7,980 | 8,794 | 8,137 | 32,499 | 30,572 | |||||||||||||||||||||
| Occupancy and equipment expenses | 919 | 1,033 | 1,039 | 1,028 | 986 | 4,019 | 3,954 | |||||||||||||||||||||
| Data processing | 613 | 638 | 597 | 564 | 499 | 2,412 | 2,041 | |||||||||||||||||||||
| Regulatory assessments | 541 | 528 | 568 | 446 | 403 | 2,083 | 1,663 | |||||||||||||||||||||
| Legal and professional fees | 452 | 534 | 541 | 611 | 531 | 2,139 | 1,839 | |||||||||||||||||||||
| Other operating expenses | 1,138 | 1,028 | 1,033 | 984 | 994 | 4,181 | 3,824 | |||||||||||||||||||||
| Total noninterest expense | 11,052 | 12,097 | 11,758 | 12,427 | 11,550 | 47,333 | 43,893 | |||||||||||||||||||||
| Income before income taxes | 9,208 | 8,306 | 4,868 | 7,422 | 986 | 29,803 | 23,972 | |||||||||||||||||||||
| Provision for income taxes | 2,751 | 2,460 | 1,402 | 2,176 | 683 | 8,788 | 7,171 | |||||||||||||||||||||
| Net income | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 303 | $ | 21,015 | $ | 16,801 | ||||||||||||||
| Basic earnings per common share | $ | 0.87 | $ | 0.79 | $ | 0.47 | $ | 0.71 | $ | 0.04 | $ | 2.83 | $ | 2.29 | ||||||||||||||
| Diluted earnings per common share | 0.84 | 0.77 | 0.46 | 0.69 | 0.04 | 2.76 | 2.24 | |||||||||||||||||||||
| Weighted average shares - basic | 7,455,650 | 7,434,726 | 7,426,949 | 7,386,639 | 7,344,693 | 7,426,096 | 7,323,172 | |||||||||||||||||||||
| Weighted average shares - diluted | 7,661,711 | 7,622,428 | 7,578,613 | 7,551,406 | 7,543,616 | 7,604,442 | 7,490,779 | |||||||||||||||||||||
| (1) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented. | ||||||||||||||||||||||||||||
AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(dollars in thousands)
| Three months ended | ||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | |||||||||||||||||||
| Interest | Yields | Interest | Yields | |||||||||||||||||
| Average | Income/ | or | Average | Income/ | or | |||||||||||||||
| Balance | Expense | Rates(6) | Balance | Expense | Rates(6) | |||||||||||||||
| Assets | ||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||
| Loans(1) | $ | 1,817,101 | $ | 32,308 | 7.07 | % | $ | 1,805,430 | $ | 33,488 | 7.38 | % | ||||||||
| Fed funds sold/interest bearing deposits | 57,698 | 681 | 4.70 | % | 87,228 | 1,198 | 5.46 | % | ||||||||||||
| Investment securities | ||||||||||||||||||||
| Taxable investment securities | 305,963 | 1,741 | 2.26 | % | 309,624 | 1,745 | 2.24 | % | ||||||||||||
| Non-taxable investment securities(2) | 2,539 | 36 | 5.64 | % | 1,826 | 28 | 6.10 | % | ||||||||||||
| Total investment securities | 308,502 | 1,777 | 2.29 | % | 311,450 | 1,773 | 2.26 | % | ||||||||||||
| FHLB stock(3) | 8,409 | 185 | 8.75 | % | 8,409 | 183 | 8.66 | % | ||||||||||||
| Total interest-earning assets | 2,191,710 | 34,951 | 6.34 | % | 2,212,517 | 36,642 | 6.59 | % | ||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||
| Cash and due from banks | 14,016 | 12,943 | ||||||||||||||||||
| All other assets(4) | 44,360 | 47,163 | ||||||||||||||||||
| Total assets | $ | 2,250,086 | $ | 2,272,623 | ||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Demand | $ | 994,121 | $ | 9,840 | 3.94 | % | $ | 903,542 | $ | 9,801 | 4.32 | % | ||||||||
| Money market and savings | 351,126 | 2,794 | 3.17 | % | 348,125 | 3,067 | 3.50 | % | ||||||||||||
| Time | 77,203 | 744 | 3.83 | % | 75,972 | 810 | 4.24 | % | ||||||||||||
| Brokered | 49,064 | 637 | 5.16 | % | 69,670 | 924 | 5.28 | % | ||||||||||||
| Total interest-bearing deposits | 1,471,514 | 14,015 | 3.79 | % | 1,397,309 | 14,602 | 4.16 | % | ||||||||||||
| Short-term borrowings | 119,707 | 1,437 | 4.78 | % | 237,370 | 3,121 | 5.23 | % | ||||||||||||
| Subordinated debt | 21,993 | 293 | 5.30 | % | 21,970 | 300 | 5.44 | % | ||||||||||||
| Total interest-bearing liabilities | 1,613,214 | 15,745 | 3.88 | % | 1,656,649 | 18,023 | 4.33 | % | ||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Demand deposits | 422,807 | 408,626 | ||||||||||||||||||
| Accrued expenses and other liabilities | 25,895 | 28,088 | ||||||||||||||||||
| Shareholders' equity | 188,170 | 179,260 | ||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||
| shareholders' equity | $ | 2,250,086 | $ | 2,272,623 | ||||||||||||||||
| Net interest spread | 2.46 | % | 2.26 | % | ||||||||||||||||
| Net interest income and margin(5) | $ | 19,206 | 3.49 | % | $ | 18,619 | 3.35 | % | ||||||||||||
| Non-taxable equivalent net interest margin | 3.48 | % | 3.35 | % | ||||||||||||||||
| Cost of deposits | $ | 1,894,321 | $ | 14,015 | 2.94 | % | $ | 1,805,935 | $ | 14,602 | 3.22 | % | ||||||||
| (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 net amortization of deferred loan fees / (costs) of $491 thousand and $383 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) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented. | ||||||||||||||||||||
| (4) Average allowance for credit losses on loans of $22.2 million and $22.4 million, respectively, is included as a contra asset. | ||||||||||||||||||||
| (5) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||||
| (6) Annualized | ||||||||||||||||||||
AVIDBANK HOLDINGS, INC
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(dollars in thousands)
| Three months ended | ||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Interest | Yields | Interest | Yields | |||||||||||||||||||||
| Average | Income/ | or | Average | Income/ | or | |||||||||||||||||||
| Balance | Expense | Rates(6) | Balance | Expense | Rates(6) | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||
| Loans(1) | $ | 1,817,101 | $ | 32,308 | 7.07 | % | $ | 1,700,094 | $ | 31,078 | 7.25 | % | ||||||||||||
| Fed funds sold/interest bearing deposits | 57,698 | 681 | 4.70 | % | 47,906 | 654 | 5.34 | % | ||||||||||||||||
| Investment securities | ||||||||||||||||||||||||
| Taxable investment securities | 305,963 | 1,741 | 2.26 | % | 337,021 | 1,971 | 2.32 | % | ||||||||||||||||
| Non-taxable investment securities(2) | 2,539 | 36 | 5.64 | % | 787 | 10 | 5.04 | % | ||||||||||||||||
| Total investment securities | 308,502 | 1,777 | 2.29 | % | 337,808 | 1,981 | 2.33 | % | ||||||||||||||||
| FHLB stock(3) | 8,409 | 185 | 8.75 | % | 8,409 | 172 | 8.12 | % | ||||||||||||||||
| Total interest-earning assets | 2,191,710 | 34,951 | 6.34 | % | 2,094,217 | 33,885 | 6.42 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 14,016 | 12,528 | ||||||||||||||||||||||
| All other assets(4) | 44,360 | 84,453 | ||||||||||||||||||||||
| Total assets | $ | 2,250,086 | $ | 2,191,198 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Demand | $ | 994,121 | $ | 9,840 | 3.94 | % | $ | 766,856 | $ | 7,650 | 3.96 | % | ||||||||||||
| Money market and savings | 351,126 | 2,794 | 3.17 | % | 305,240 | 2,218 | 2.88 | % | ||||||||||||||||
| Time | 77,203 | 744 | 3.83 | % | 29,787 | 252 | 3.36 | % | ||||||||||||||||
| Brokered | 49,064 | 637 | 5.16 | % | 119,605 | 1,572 | 5.21 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,471,514 | 14,015 | 3.79 | % | 1,221,488 | 11,692 | 3.80 | % | ||||||||||||||||
| Short-term borrowings | 119,707 | 1,437 | 4.78 | % | 281,457 | 3,467 | 4.89 | % | ||||||||||||||||
| Subordinated debt | 21,993 | 293 | 5.30 | % | 21,893 | 300 | 5.44 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,613,214 | 15,745 | 3.88 | % | 1,524,838 | 15,459 | 4.02 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 422,807 | 487,301 | ||||||||||||||||||||||
| Accrued expenses and other liabilities | 25,895 | 30,336 | ||||||||||||||||||||||
| Shareholders' equity | 188,170 | 148,723 | ||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||
| shareholders' equity | $ | 2,250,086 | $ | 2,191,198 | ||||||||||||||||||||
| Net interest spread | 2.46 | % | 2.40 | % | ||||||||||||||||||||
| Net interest income and margin(5) | $ | 19,206 | 3.49 | % | $ | 18,426 | 3.49 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.48 | % | 3.49 | % | ||||||||||||||||||||
| Cost of deposits | $ | 1,894,321 | $ | 14,015 | 2.94 | % | $ | 1,708,789 | $ | 11,692 | 2.71 | % | ||||||||||||
| (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 loan includes net amortization of deferred loan fees / (costs) of $491 thousand and $449 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) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented. | ||||||||||||||||||||||||
| (4) Average allowance for credit losses on loans of $22.2 million and $17.8 million, respectively, is included as a contra asset. | ||||||||||||||||||||||||
| (5) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||||||||
| (6) Annualized | ||||||||||||||||||||||||
AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(dollars in thousands)
| Twelve months ended | ||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Interest | Yields | Interest | Yields | |||||||||||||||||||||
| Average | Income/ | or | Average | Income/ | or | |||||||||||||||||||
| Balance | Expense | Rates(6) | Balance | Expense | Rates(6) | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||
| Loans(1) | $ | 1,798,951 | $ | 130,878 | 7.28 | % | $ | 1,622,731 | $ | 112,494 | 6.93 | % | ||||||||||||
| Fed funds sold/interest bearing deposits | 68,722 | 3,649 | 5.31 | % | 61,331 | 3,140 | 5.12 | % | ||||||||||||||||
| Investment securities | ||||||||||||||||||||||||
| Taxable investment securities | 309,652 | 7,067 | 2.28 | % | 374,638 | 8,387 | 2.24 | % | ||||||||||||||||
| Non-taxable investment securities(2) | 2,010 | 120 | 5.97 | % | 7,470 | 343 | 4.59 | % | ||||||||||||||||
| Total investment securities | 311,662 | 7,187 | 2.31 | % | 382,108 | 8,730 | 2.28 | % | ||||||||||||||||
| FHLB stock(3) | 8,409 | 752 | 8.94 | % | 8,199 | 690 | 8.42 | % | ||||||||||||||||
| Total interest-earning assets | 2,187,744 | 142,466 | 6.51 | % | 2,074,369 | 125,054 | 6.03 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 13,048 | 20,375 | ||||||||||||||||||||||
| All other assets(4) | 52,022 | 79,225 | ||||||||||||||||||||||
| Total assets | $ | 2,252,814 | $ | 2,173,969 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Demand | $ | 857,409 | $ | 35,112 | 4.10 | % | $ | 524,591 | $ | 19,548 | 3.73 | % | ||||||||||||
| Money market and savings | 326,934 | 10,729 | 3.28 | % | 461,352 | 12,226 | 2.65 | % | ||||||||||||||||
| Time | 76,846 | 3,144 | 4.09 | % | 46,318 | 937 | 2.02 | % | ||||||||||||||||
| Brokered | 97,078 | 5,161 | 5.32 | % | 73,179 | 3,703 | 5.06 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,358,267 | 54,146 | 3.99 | % | 1,105,440 | 36,414 | 3.29 | % | ||||||||||||||||
| Short-term borrowings | 233,290 | 11,879 | 5.09 | % | 282,596 | 13,808 | 4.89 | % | ||||||||||||||||
| Subordinated debt | 21,956 | 1,194 | 5.44 | % | 21,855 | 1,201 | 5.50 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,613,513 | 67,219 | 4.17 | % | 1,409,891 | 51,423 | 3.65 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 437,637 | 587,755 | ||||||||||||||||||||||
| Accrued expenses and other liabilities | 26,316 | 26,278 | ||||||||||||||||||||||
| Shareholders' equity | 175,348 | 150,045 | ||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||
| shareholders' equity | $ | 2,252,814 | $ | 2,173,969 | ||||||||||||||||||||
| Net interest spread | 2.34 | % | 2.38 | % | ||||||||||||||||||||
| Net interest income and margin(5) | $ | 75,247 | 3.44 | % | $ | 73,631 | 3.55 | % | ||||||||||||||||
| Non-taxable equivalent net interest margin | 3.44 | % | 3.55 | % | ||||||||||||||||||||
| Cost of deposits | $ | 1,795,904 | $ | 54,146 | 3.01 | % | $ | 1,693,195 | $ | 36,414 | 2.15 | % | ||||||||||||
| (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 $1.8 million and $1.9 million, respectively. | ||||||||||||||||||||||||
| (2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. | ||||||||||||||||||||||||
| (3) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented. | ||||||||||||||||||||||||
| (4) Average allowance for credit losses on loans of $20.9 million and $17.2 million, respectively, is included as a contra asset. | ||||||||||||||||||||||||
| (5) Tax equivalent net interest income divided by total interest-earning assets. | ||||||||||||||||||||||||
| (6) Annualized | ||||||||||||||||||||||||
AVIDBANK HOLDINGS, INC.
Loans and Credit Data (Unaudited)
(dollars in thousands)
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Current Quarter | Year over Year | ||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | Change | Change | ||||||||||||||||||||||
| Commercial loans | $ | 816,963 | $ | 759,492 | $ | 774,666 | $ | 736,068 | $ | 716,075 | $ | 57,471 | $ | 100,888 | ||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||||||
| Multi-family | 216,018 | 199,929 | 202,292 | 203,170 | 200,152 | 16,089 | 15,866 | |||||||||||||||||||||
| Owner Occupied | 142,650 | 141,139 | 157,376 | 158,759 | 158,728 | 1,511 | (16,078 | ) | ||||||||||||||||||||
| Non-Owner Occupied | 414,551 | 406,007 | 412,473 | 408,758 | 411,446 | 8,544 | 3,105 | |||||||||||||||||||||
| Construction and land | 246,301 | 253,325 | 242,966 | 259,562 | 237,124 | (7,024 | ) | 9,177 | ||||||||||||||||||||
| Residential | 27,494 | 25,799 | 15,717 | 16,187 | 16,816 | 1,695 | 10,678 | |||||||||||||||||||||
| Total real estate loans | 1,047,014 | 1,026,199 | 1,030,824 | 1,046,436 | 1,024,266 | 20,815 | 22,748 | |||||||||||||||||||||
| Other loans | 965 | 1,065 | 1,117 | 520 | 306 | (100 | ) | 659 | ||||||||||||||||||||
| Total loans | $ | 1,864,942 | $ | 1,786,756 | $ | 1,806,607 | $ | 1,783,024 | $ | 1,740,647 | $ | 78,186 | $ | 124,295 | ||||||||||||||
| Allowance for Credit Losses on Loans | ||||||||||||||||||||||||||||
| Balance, beginning of quarter | $ | 22,315 | $ | 22,410 | $ | 19,342 | $ | 19,131 | $ | 17,800 | ||||||||||||||||||
| Provision for credit losses on loans | 630 | - | 3,068 | 211 | 1,331 | |||||||||||||||||||||||
| Charge-offs | (4,266 | ) | (95 | ) | - | - | - | |||||||||||||||||||||
| Recoveries | - | - | - | - | - | |||||||||||||||||||||||
| Balance, end of quarter | $ | 18,679 | $ | 22,315 | $ | 22,410 | $ | 19,342 | $ | 19,131 | ||||||||||||||||||
| Allowance for Credit Losses on Unfunded Commitments | ||||||||||||||||||||||||||||
| Balance, beginning of quarter | $ | 2,098 | $ | 2,098 | $ | 2,168 | $ | 2,060 | $ | 2,125 | ||||||||||||||||||
| Provision for unfunded commitments | 149 | - | (70 | ) | 108 | (65 | ) | |||||||||||||||||||||
| Balance, end of quarter | $ | 2,247 | $ | 2,098 | $ | 2,098 | $ | 2,168 | $ | 2,060 | ||||||||||||||||||
| Total allowance for credit losses - loans and unfunded commitments | $ | 20,926 | $ | 24,413 | $ | 24,508 | $ | 21,510 | $ | 21,191 | ||||||||||||||||||
| Provision for credit losses under CECL | ||||||||||||||||||||||||||||
| Provision for credit losses on loans | $ | 630 | $ | - | $ | 3,068 | $ | 211 | $ | 1,331 | ||||||||||||||||||
| Provision for unfunded commitments | 149 | - | (70 | ) | 108 | (65 | ) | |||||||||||||||||||||
| Total provision for credit losses | $ | 779 | $ | - | $ | 2,998 | $ | 319 | $ | 1,266 | ||||||||||||||||||
| Nonperforming Assets | ||||||||||||||||||||||||||||
| Loans accounted for on a non-accrual basis | $ | 1,347 | $ | 3,621 | $ | 3,686 | $ | 1,370 | $ | 1,378 | ||||||||||||||||||
| Loans past due 90 days or more and still accruing | - | - | - | - | - | |||||||||||||||||||||||
| Nonperforming loans | 1,347 | 3,621 | 3,686 | 1,370 | 1,378 | |||||||||||||||||||||||
| Other real estate owned | - | - | - | - | - | |||||||||||||||||||||||
| Nonperforming assets | $ | 1,347 | $ | 3,621 | $ | 3,686 | $ | 1,370 | $ | 1,378 | ||||||||||||||||||
| Nonperforming Loans by Type: | ||||||||||||||||||||||||||||
| Commercial | $ | 1,347 | $ | 3,621 | $ | 3,686 | $ | 1,370 | $ | 1,378 | ||||||||||||||||||
| Total Nonperforming loans | $ | 1,347 | $ | 3,621 | $ | 3,686 | $ | 1,370 | $ | 1,378 | ||||||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||||||||||
| Allowance for credit losses on loans to total loans | 1.00 | % | 1.25 | % | 1.24 | % | 1.08 | % | 1.10 | % | ||||||||||||||||||
| Allowance for credit losses to total loans | 1.12 | % | 1.37 | % | 1.36 | % | 1.21 | % | 1.22 | % | ||||||||||||||||||
| Allowance for credit losses on loans to nonperforming loans | 1386.71 | % | 616.27 | % | 607.98 | % | 1411.82 | % | 1388.32 | % | ||||||||||||||||||
| Nonperforming assets to total assets | 0.06 | % | 0.16 | % | 0.16 | % | 0.06 | % | 0.06 | % | ||||||||||||||||||
| Nonperforming loans to total loans | 0.07 | % | 0.20 | % | 0.20 | % | 0.08 | % | 0.08 | % | ||||||||||||||||||
| Net quarterly charge-offs to average loans(1) | 0.93 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||
| Criticized loans to total loans | 2.27 | % | 1.62 | % | 1.49 | % | 1.40 | % | 1.25 | % | ||||||||||||||||||
| Classified loans to total loans | 0.22 | % | 0.51 | % | 0.52 | % | 0.39 | % | 0.47 | % | ||||||||||||||||||
| (1) Annualized | ||||||||||||||||||||||||||||
AVIDBANK HOLDINGS, INC.
Deposits (Unaudited)
(dollars in thousands)
| Current | Year over | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Quarter | Year | ||||||||||||||||||||||
| Period End Deposits | 2024 | 2024 | 2024 | 2024 | 2023 | Change | Change | |||||||||||||||||||||
| Non-interest-bearing demand | $ | 414,327 | $ | 405,528 | $ | 405,644 | $ | 477,728 | $ | 472,517 | $ | 8,799 | $ | (58,190 | ) | |||||||||||||
| Interest-bearing checking | 993,219 | 1,026,898 | 840,839 | 764,766 | 740,902 | (33,679 | ) | 252,317 | ||||||||||||||||||||
| Money market and savings | 338,578 | 336,166 | 312,162 | 319,692 | 298,117 | 2,412 | 40,461 | |||||||||||||||||||||
| Time | 74,468 | 75,033 | 99,239 | 56,140 | 46,676 | (565 | ) | 27,792 | ||||||||||||||||||||
| Brokered | 70,763 | 57,903 | 80,608 | 139,532 | 96,117 | 12,860 | (25,354 | ) | ||||||||||||||||||||
| Total deposits | $ | 1,891,355 | $ | 1,901,528 | $ | 1,738,492 | $ | 1,757,858 | $ | 1,654,329 | $ | (10,173 | ) | $ | 237,026 | |||||||||||||
| Average Deposits | ||||||||||||||||||||||||||||
| Non-interest-bearing demand | $ | 422,807 | $ | 408,626 | $ | 436,498 | $ | 483,100 | $ | 487,301 | $ | 14,181 | $ | (64,494 | ) | |||||||||||||
| Interest-bearing checking | 994,121 | 903,542 | 783,048 | 746,916 | 766,856 | 90,579 | 227,265 | |||||||||||||||||||||
| Money market and savings | 351,126 | 348,125 | 304,392 | 303,593 | 305,240 | 3,001 | 45,886 | |||||||||||||||||||||
| Time | 77,203 | 75,972 | 97,430 | 56,783 | 29,787 | 1,231 | 47,416 | |||||||||||||||||||||
| Brokered | 49,064 | 69,670 | 135,952 | 134,453 | 119,605 | (20,606 | ) | (70,541 | ) | |||||||||||||||||||
| Total deposits | $ | 1,894,321 | $ | 1,805,935 | $ | 1,757,320 | $ | 1,724,845 | $ | 1,708,789 | $ | 88,386 | $ | 185,532 | ||||||||||||||
AVIDBANK HOLDINGS, INC.
Non-GAAP performance and Financial Measures Reconciliation (Unaudited)
(in thousands, except share and per share amounts)
| Twelve months ended | ||||||||||||||||||||||||||||
| 2024 | 2023 | December 31, | ||||||||||||||||||||||||||
| Non-GAAP adjusted net income reconciliation | Fourth | Third | Second | First | Fourth | 2024 | 2023 | |||||||||||||||||||||
| Net income - GAAP | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 303 | $ | 21,015 | $ | 16,801 | ||||||||||||||
| Loss on sale of securities, net of income tax | - | - | - | - | 3,888 | - | 4,483 | |||||||||||||||||||||
| Severance, net of income tax | - | - | - | - | 233 | - | 233 | |||||||||||||||||||||
| BOLI surrender tax expense | - | - | - | - | 478 | - | 478 | |||||||||||||||||||||
| Adjusted net income (non-GAAP) | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 4,902 | $ | 21,015 | $ | 21,995 | ||||||||||||||
| Non-GAAP adjusted net income reconciliation | ||||||||||||||||||||||||||||
| Net income - GAAP | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 303 | $ | 21,015 | $ | 16,801 | ||||||||||||||
| Loss on sale of securities | - | - | - | - | 5,399 | - | 6,214 | |||||||||||||||||||||
| Tax impact of loss on sale of securities | - | - | - | - | (1,511 | ) | - | (1,731 | ) | |||||||||||||||||||
| Severance | - | - | - | - | 324 | - | 324 | |||||||||||||||||||||
| Tax impact of severance | - | - | - | - | (91 | ) | - | (91 | ) | |||||||||||||||||||
| BOLI surrender tax expense | - | - | - | - | 478 | - | 478 | |||||||||||||||||||||
| Adjusted net income (non-GAAP) | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 4,902 | $ | 21,015 | $ | 21,995 | ||||||||||||||
| Non-GAAP adjusted diluted earnings per share reconciliation | ||||||||||||||||||||||||||||
| Diluted earnings per share - GAAP | $ | 0.84 | $ | 0.77 | $ | 0.46 | $ | 0.69 | $ | 0.04 | $ | 2.76 | $ | 2.24 | ||||||||||||||
| Loss on sale of securities, net of income tax | - | - | - | - | 0.52 | - | 0.60 | |||||||||||||||||||||
| Severance, net of income tax | - | - | - | - | 0.03 | - | 0.03 | |||||||||||||||||||||
| BOLI surrender tax expense | - | - | - | - | 0.06 | - | 0.06 | |||||||||||||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.84 | $ | 0.77 | $ | 0.46 | $ | 0.69 | $ | 0.65 | $ | 2.76 | $ | 2.94 | ||||||||||||||
| Non-GAAP adjusted return on average assets reconciliation | ||||||||||||||||||||||||||||
| Net income - GAAP | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 303 | $ | 21,015 | $ | 16,801 | ||||||||||||||
| Average total assets | 2,250,086 | 2,272,623 | 2,265,583 | 2,222,778 | 2,191,198 | 2,252,814 | 2,173,969 | |||||||||||||||||||||
| Return on average assets - GAAP | 1.14 | % | 1.02 | % | 0.62 | % | 0.95 | % | 0.05 | % | 0.93 | % | 0.77 | % | ||||||||||||||
| Adjusted net income (non-GAAP) | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 4,902 | $ | 21,015 | $ | 21,995 | ||||||||||||||
| Average total assets | 2,250,086 | 2,272,623 | 2,265,583 | 2,222,778 | 2,191,198 | 2,252,814 | 2,173,969 | |||||||||||||||||||||
| Adjusted return on average assets (non-GAAP) | 1.14 | % | 1.02 | % | 0.62 | % | 0.95 | % | 0.89 | % | 0.93 | % | 1.01 | % | ||||||||||||||
| Non-GAAP taxable equivalent net interest income reconciliation | ||||||||||||||||||||||||||||
| Net interest income - GAAP | $ | 19,199 | $ | 18,613 | $ | 18,526 | $ | 18,885 | $ | 18,424 | $ | 75,222 | $ | 73,559 | ||||||||||||||
| Taxable equivalent adjustment | 7 | 6 | 5 | 6 | 2 | 25 | 72 | |||||||||||||||||||||
| Net interest income - taxable equivalent (non-GAAP) | $ | 19,206 | $ | 18,619 | $ | 18,531 | $ | 18,891 | $ | 18,426 | $ | 75,247 | $ | 73,631 | ||||||||||||||
| Non-GAAP taxable equivalent net interest margin reconciliation | ||||||||||||||||||||||||||||
| Net interest margin - GAAP | 3.49 | % | 3.35 | % | 3.39 | % | 3.54 | % | 3.49 | % | 3.44 | % | 3.55 | % | ||||||||||||||
| Impact of taxable equivalent adjustment | (0.01 | ) | - | - | - | - | - | - | ||||||||||||||||||||
| Net interest margin - taxable equivalent (non-GAAP) | 3.48 | % | 3.35 | % | 3.39 | % | 3.54 | % | 3.49 | % | 3.44 | % | 3.55 | % | ||||||||||||||
| Non-GAAP total deposits, excluding brokered deposits | ||||||||||||||||||||||||||||
| Total period end deposits - GAAP | $ | 1,891,355 | $ | 1,901,528 | $ | 1,738,492 | $ | 1,757,858 | $ | 1,654,329 | $ | 1,891,355 | $ | 1,654,329 | ||||||||||||||
| Brokered deposits | 70,763 | 57,903 | 80,608 | 139,532 | 96,117 | 70,763 | 96,117 | |||||||||||||||||||||
| Total deposits, excluding brokered (non-GAAP) | $ | 1,820,592 | $ | 1,843,625 | $ | 1,657,884 | $ | 1,618,326 | $ | 1,558,212 | $ | 1,820,592 | $ | 1,558,212 | ||||||||||||||
| Non-GAAP pre-tax, pre-provision net income | ||||||||||||||||||||||||||||
| Net income - GAAP | $ | 6,457 | $ | 5,846 | $ | 3,466 | $ | 5,246 | $ | 303 | $ | 21,015 | $ | 16,801 | ||||||||||||||
| Provision for credit losses | 779 | - | 2,998 | 319 | 1,266 | 4,096 | 3,042 | |||||||||||||||||||||
| Provision for income taxes | 2,751 | 2,460 | 1,402 | 2,176 | 683 | 8,788 | 7,171 | |||||||||||||||||||||
| Non-GAAP pre-tax, pre-provision net income | $ | 9,987 | $ | 8,306 | $ | 7,866 | $ | 7,741 | $ | 2,252 | $ | 33,899 | $ | 27,014 | ||||||||||||||
SOURCE: Avidbank Holdings, Inc.