Avidbank Holdings, Inc. Announces Net Income for the Second Quarter of 2022

Rhea-AI Summary

Avidbank Holdings, Inc. (OTC PINK:AVBH) reported a strong second quarter in 2022 with net income of $5.2 million, up from $3.6 million in Q2 2021. Earnings per diluted share rose to $0.76, a 27% increase year-over-year. Loan growth was significant, increasing by 32% compared to the previous year, and the return on average assets improved to 1.02%. However, the bank recorded a $1.6 million provision for loan losses due to higher loan balances. Total assets were $2.01 billion as of June 30, 2022.

Positive

• Net income increased to $5.2 million, a 44% rise from the previous year.
• Earnings per diluted share rose to $0.76, a 27% year-over-year increase.
• Loans increased by 32% year-over-year, totaling $1.34 billion.
• Return on average assets improved to 1.02%, up from 0.94% in Q2 2021.

Negative

• A $1.6 million provision for loan losses was recorded, contrasting with no provisions in prior periods.
• Total assets decreased from $2.11 billion in Q1 2022 to $2.01 billion.

SAN JOSE, CA / ACCESSWIRE / July 20, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the second quarter of 2022 of $5.2 million, or $0.76 per diluted share, compared to $3.6 million, or $0.60 per diluted share, for the second quarter of 2021 and $4.3 million, or $0.71 per diluted share, for the first quarter of 2022.

Second Quarter 2022 Financial Highlights

• Diluted earnings per share of $0.76, an increase of $0.16, or 27%, compared to the second quarter of 2021, and increased $0.05, or 28% annualized, compared to the first quarter of 2022.
• Return on average assets was 1.02%, compared to 0.94% in the second quarter of 2021 and 0.83% in the first quarter of 2022.
• Return on average equity was 16.18%, compared to 11.15% in the second quarter of 2021 and 12.72% in the first quarter of 2022.
• Taxable equivalent net interest margin was 3.62% in the second quarter of 2022, compared to 3.28% in the second quarter of 2021 and 3.05% in the first quarter of 2022.
• Loans increased $322 million, or 32%, from June 30, 2021 and increased $135 million, or 45% annualized, from March 31,2022.
• Annualized net charge-offs to average loans totaled 0.00% for the second quarter and year-to-date 2022. Non-performing assets to total assets were 0.01% on June 30, 2022, a decrease from 0.22% on June 30, 2021 and 0.15% on March 31, 2022.
• On May 11, 2022, completed a $28.6 million private offering of 1.27 million common shares at $22.50 per share bringing total common shares outstanding to 7,585,924.

"We continued our solid performance in the second quarter with earnings of $0.76 per diluted share including strong loan growth from a combination of less payoffs, an increase in line utilization, and another quarter of solid new originations," said Mark Mordell, Chairman and Chief Executive Officer. "We are cautiously optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from each increase in the fed funds rate," added Mr. Mordell.

Income Statement

Taxable equivalent net interest income totaled $17.5 million for the second quarter of 2022, an increase of $5.4 million, or 44%, from the second quarter of 2021, and an increase of $2.3 million, or 60% annualized, from the first quarter of 2022. This was primarily driven by an increase in interest income from higher interest rates and the growth in average balance of loans and investment securities.

The yield on loans in the second quarter of 2022 was 4.97%, an increase of 17 basis points from the second quarter of 2021 and an increase of 24 basis points from the first quarter of 2022. The linked quarter increase was primarily due to increases in the Prime rate. Approximately 53% of loans are Prime-based floating rate loans.

The cost of deposits in the second quarter of 2022 was 0.14%, a decrease of 5 basis points from the second quarter of 2021 and an increase of 1 basis point from the first quarter of 2022. The cost of interest-bearing deposits in the second quarter of 2022 was 0.26%, remaining flat from the first quarter of 2022.

In the second quarter of 2022, we recorded a provision for loan losses of $1.6 million. No loan provision was required in the first quarter of 2022 and the second quarter of 2021. The second quarter provision was primarily attributable to the $135 million increase in loan balances.

Non-interest income was $1.2 million in the second quarter of 2022 compared to $1.5 million in the second quarter of 2021 and $1.1 million in the first quarter of 2022. Service charge income totaled $681,000 in the second quarter of 2022, an increase of $159,000, or 30% from the second quarter of 2021, and an increase of $45,000, or 28% annualized, compared to the first quarter of 2022.

Non-interest expense totaled $10.0 million in the second quarter of 2022 compared to $8.6 million in the second quarter of 2021 and $10.4 million in the first quarter of 2022. This linked quarter decrease was primarily due to higher capitalized loan origination costs and a decrease in the FDIC regulatory assessment. The number of full-time equivalent employees on June 30, 2022 totaled 132 compared to 130 on March 31, 2022.

Balance Sheet

Total assets were $2.01 billion as of June 30, 2022, compared to $2.11 billion on March 31, 2022 and $1.60 billion at June 30, 2021. Cash balances held at the Federal Reserve decreased $284 million in the second quarter of 2022 while investments increased $39 million due to the purchase of tax-exempt municipal and mortgage-backed securities.

Period end loans on June 30, 2022 totaled $1.34 billion, which represented an increase of $135 million, or 45% annualized, from March 31, 2022, and an increase of $322 million, or 32%, from $1.01 billion at June 30, 2021. Quarterly average loans for the second quarter of 2022 increased $239 million, or 23%, from the second quarter of 2021 and $48 million, or 16% annualized, from the first quarter of 2022.

The allowance for loan losses on June 30, 2022 was $14.6 million, representing an increase of $1.6 million from March 31, 2022. The Allowance for Loan Losses to total loans was 1.09% on June 30, 2022, compared to 1.08% on March 31, 2022. Nonperforming loans to total loans was 0.01% on June 30, 2022, a decrease from 0.27% on March 31, 2022. The decrease was primarily attributable to the payoff of a single relationship of approximately $3 million.

Period end deposits were $1.83 billion on June 30, 2022 compared to $1.95 billion at March 31, 2022 and an increase of $402 million, or 28%, compared to $1.43 billion at June 30, 2021. Quarterly average deposits for the second quarter of 2022 increased $512 million, or 37%, compared to the second quarter of 2021 and decreased $59 million, or 12% annualized, from the first quarter of 2022.

Noninterest bearing deposits represented 45.9% of total deposits on June 30, 2022, compared to 48.9% on March 31, 2022 and 51.0% at June 30, 2021. The loan to deposit ratio was 73.1% on June 30, 2022 compared to 61.7% at March 31, 2022 and 71.1% at June 30, 2021.

About Avidbank

Avidbank Holdings, Inc. (OTC Pink: AVBH), headquartered in Palo Alto, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, technology and asset-based lending, specialty finance, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.

Forward-Looking Statement:

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.

Contact:

Patrick Oakes
Executive Vice President and Chief Financial Officer
408-831-5653
poakes@avidbank.com

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
		Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,263,071				4.97	%		$	15,638			$	1,215,153				4.73	%		$	14,163
Fed funds sold			191,861				0.74	%			353				374,648				0.17	%			153
Investment securities
Taxable investment securities			475,039				2.00	%			2,364				436,427				1.72	%			1,855
Non-taxable investment securities (2)			12,496				4.59	%			143				-				0.00	%			-
Total investment securities			487,535				2.06	%			2,507				436,427				1.72	%			1,855
Total interest-earning assets			1,942,467				3.82	%			18,498				2,026,228				3.24	%			16,171
Noninterest-earning assets:
Cash and due from banks			46,334												42,282
All other assets (3)			71,496												63,077
Total assets		$	2,060,297											$	2,131,587
Liabilities and Shareholder's Equity
Interest-bearing liabilities:
Deposits
Demand		$	46,242				0.13	%		$	15			$	49,199				0.12	%		$	15
Money market and savings			835,058				0.21	%			440				812,289				0.21	%			422
Time			121,923				0.66	%			202				120,886				0.68	%			203
Total interest-bearing deposits			1,003,223				0.26	%			657				982,374				0.26	%			640
Subordinated debt			21,518				5.59	%			300				21,714				5.60	%			300
Total interest-bearing liabilities			1,024,741				0.37	%			957				1,004,088				0.38	%			940
Noninterest-bearing liabilities:
Demand deposits			885,271												964,834
Accrued expenses and other liabilities			21,050												23,997
Shareholders' equity			129,235												138,668
Total liabilities and shareholders' equity		$	2,060,297											$	2,131,587
Net interest income and margin (4)							3.62	%		$	17,541								3.05	%		$	15,231
Non-taxable equivalent net interest margin							3.62	%											3.05	%

(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $628 thousand, respectively.
(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(3) Allowance for loan losses of $14.6 million and $13.1 million, respectively, is included as a contra asset.
(4) Net interest margin is net interest income divided by total interest-earning assets.

Avidbank Holdings, Inc.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information (Unaudited)
($000)

		Three months ended
		June 30, 2022												June 30, 2021
		Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,263,071				4.97	%		$	15,638			$	1,023,932				4.80	%		$	12,246
Fed funds sold			191,861				0.74	%			353				261,159				0.09	%			59
Investment securities
Taxable investment securities			475,039				2.00	%			2,364				200,016				1.62	%			808
Non-taxable investment securities (2)			12,496				4.59	%			143				-				0.00	%			-
Total investment securities			487,535				2.06	%			2,507				200,016				1.62	%			808
Total interest-earning assets			1,942,467				3.82	%			18,498				1,485,107				3.54	%			13,113
Noninterest-earning assets:
Cash and due from banks			46,334												25,948
All other assets (3)			71,496												42,994
Total assets		$	2,060,297											$	1,554,049
Liabilities and Shareholder's Equity
Interest-bearing liabilities:
Deposits
Demand		$	46,242				0.13	%		$	15			$	28,649				0.20	%		$	14
Money market and savings			835,058				0.21	%			440				518,508				0.31	%			398
Time			121,923				0.66	%			202				128,480				0.75	%			239
Total interest-bearing deposits			1,003,223				0.26	%			657				675,637				0.39	%			651
Subordinated debt			21,518				5.59	%			300				21,619				5.75	%			310
Total interest-bearing liabilities			1,024,741				0.37	%			957				697,256				0.55	%			961
Noninterest-bearing liabilities:
Demand deposits			885,271												701,099
Accrued expenses and other liabilities			21,050												24,394
Shareholders' equity			129,235												131,300
Total liabilities and shareholders' equity		$	2,060,297											$	1,554,049
Net interest income and margin (4)							3.62	%		$	17,541								3.28	%		$	12,152
Non-taxable equivalent net interest margin							3.62	%											3.28	%

(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $460 thousand and $514 thousand, respectively.
(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.
(4) Net interest margin is net interest income divided by total interest-earning assets.

Avidbank Holdings, Inc.
Average Balance Sheets and Net Interest Margin Analysis
Selected Financial Information (Unaudited)
($000)

		Six months ended
		June 30, 2022												June 30, 2021
		Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,239,245				4.85	%		$	29,802			$	1,016,796				4.83	%		$	24,363
Fed funds sold			282,750				0.36	%			509				244,289				0.09	%			107
Investment securities
Taxable investment securities			455,839				1.87	%			4,219				184,066				1.65	%			1,507
Non-taxable investment securities (2)			6,283				4.59	%			143				-				0.00	%			-
Total investment securities			462,122				1.90	%			4,362				184,066				1.65	%			1,507
Total interest-earning assets			1,984,117				3.52	%			34,673				1,445,151				3.62	%			25,977
Noninterest-earning assets:
Cash and due from banks			44,319												23,783
All other assets (3)			67,309												42,625
Total assets		$	2,095,745											$	1,511,559
Liabilities and Shareholder's Equity
Interest-bearing liabilities:
Deposits
Demand		$	47,712				0.13	%		$	31			$	27,268				0.20	%		$	27
Money market and savings			823,736				0.21	%			862				482,168				0.31	%			752
Time			121,408				0.67	%			404				133,055				0.78	%			514
Total interest-bearing deposits			992,856				0.26	%			1,297				642,491				0.41	%			1,293
Subordinated debt			21,616				5.60	%			600				21,600				5.80	%			621
Total interest-bearing liabilities			1,014,472				0.38	%			1,897				664,091				0.58	%			1,914
Noninterest-bearing liabilities:
Demand deposits			924,833												691,996
Accrued expenses and other liabilities			22,515												25,393
Shareholders' equity			133,925												130,079
Total liabilities and
shareholders' equity		$	2,095,745											$	1,511,559
Net interest income and margin (4)							3.33	%		$	32,776								3.36	%		$	24,063
Non-taxable equivalent net interest margin							3.33	%											3.36	%

(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $1.1 million for both comparative periods.
(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
(3) Allowance for loan losses of $14.6 million and $12.6 million, respectively, is included as a contra asset.
(4) Tax equivalent net interest income divided by total interest-earning assets.

Avidbank Holdings, Inc.
Period End Loans (Unaudited)
($000)

		June 30, 2022			March 31, 2022			Dec. 31, 2021			Sept. 30, 2021			June 30, 2021			Current Quarter Change			Year over Year Change
Commercial loans		$	558,908		$	481,522		$	517,747		$	415,986		$	401,584		$	77,386		$	157,324
Real Estate
Commercial real estate
Multi-family			165,818			141,954			139,646			128,672			116,259			23,864			49,559
CRE
Owner Occupied			108,045			109,502			99,728			89,832			90,626			(1,457	)		17,419
Non-Owner Occupied			280,397			258,365			258,507			239,272			195,344			22,032			85,053
Construction and land			209,941			195,388			190,887			182,556			193,709			14,553			16,232
Residential			12,830			13,726			14,484			14,800			15,164			(896	)		(2,334	)
Total real estate loans			777,031			718,935			703,252			655,132			611,102			58,096			165,929
Other loans			847			1,477			2,345			2,014			2,064			(630	)		(1,217	)
Total loans		$	1,336,786		$	1,201,934		$	1,223,344		$	1,073,132		$	1,014,750		$	134,852		$	322,036

Avidbank Holdings, Inc.
Credit Trends (Unaudited)
($000)

		6/30/22				3/31/22				12/31/21				9/30/21				6/30/21
Allowance for Loan Losses
Balance, beginning of quarter		$	13,054			$	13,054			$	12,775			$	12,558			$	12,558
Provision for loan losses, quarterly			1,592				-				3,279				217				-
Charge-offs, quarterly			-				-				(3,000	)			-				-
Recoveries, quarterly			-				-				-				-				-
Balance, end of quarter		$	14,646			$	13,054			$	13,054			$	12,775			$	12,558
Nonperforming Assets
Loans accounted for on a non-accrual basis		$	159			$	3,204			$	3,244			$	3,285			$	3,326
Loans with principal or interest contractually past
due 90 days or more and still accruing interest			-				-				-				-				-
Nonperforming loans			159				3,204				3,244				3,285				3,326
Other real estate owned			-				-				-				-				-
Nonperforming assets		$	159			$	3,204			$	3,244			$	3,285			$	3,326
Loans restructured and in compliance
with modified terms			-				-				-				-				-
Nonperforming assets & restructured loans		$	159			$	3,204			$	3,244			$	3,285			$	3,326
Nonperforming Loans by Type:
Commercial		$	159			$	441			$	448			$	456			$	463
Commercial Real Estate Loans			-				2,763				2,796				2,829				2,863
Total Nonperforming loans		$	159			$	3,204			$	3,244			$	3,285			$	3,326
Asset Quality Ratios
Allowance for loan losses (ALLL) to total loans			1.09	%			1.08	%			1.07	%			1.19	%			1.24	%
ALLL to nonperforming loans			9211.32	%			407.43	%			402.40	%			388.89	%			377.59	%
Nonperforming assets to total assets			0.01	%			0.15	%			0.15	%			0.18	%			0.21	%
Nonperforming loans to total loans			0.01	%			0.27	%			0.27	%			0.31	%			0.33	%
Net quarterly charge-offs to total loans			0.00	%			0.00	%			0.25	%			0.00	%			0.00	%

SOURCE: Avidbank Holdings, Inc.

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https://www.accesswire.com/709156/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Second-Quarter-of-2022

FAQ

What are Avidbank Holdings' earnings for the second quarter of 2022?

Avidbank Holdings reported earnings of $5.2 million for Q2 2022.

What was the diluted earnings per share for AVBH in Q2 2022?

The diluted earnings per share for Avidbank Holdings in Q2 2022 was $0.76.

How much did Avidbank's loans increase in the second quarter of 2022?

Avidbank's loans increased by $322 million, or 32%, compared to Q2 2021.

What is the return on average assets for Avidbank Holdings in Q2 2022?

The return on average assets for Avidbank was 1.02% in Q2 2022.

What was Avidbank's provision for loan losses in Q2 2022?

Avidbank recorded a provision for loan losses of $1.6 million in Q2 2022.