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

Rhea-AI Summary

Avidbank Holdings, Inc. (OTC PINK:AVBH) reported third-quarter 2022 income of $7.0 million, or $0.95 per diluted share, up from $5.2 million in Q2 2022 and $3.6 million in Q3 2021. Key highlights include a return on average assets of 1.38%, up from 1.02% in the prior quarter, and a considerable 17% annualized increase in loans. The efficiency ratio improved to 48.00%. Net interest margin rose to 4.07%, driven by higher interest rates. Total assets were $1.98 billion, while deposits decreased slightly to $1.81 billion. CEO Mark Mordell remains optimistic about business growth moving forward.

Positive

• Third-quarter income of $7.0 million, a 35% increase from Q2 2022.
• Return on average assets improved to 1.38%, up from 1.02% in Q2 2022.
• Return on average equity rose to 19.36%, compared to 16.18% in Q2 2022.
• 17% annualized loan growth from June 30, 2022.
• Net interest margin increased to 4.07% from 3.62% in Q2 2022.

Negative

• Overall deposit balances decreased slightly in Q3 2022.
• Book value per share decreased to $16.58, down from $18.27 in Q2 2022.

SAN JOSE, CA / ACCESSWIRE / October 19, 2022 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the third quarter of 2022 of $7.0 million, or $0.95 per diluted share, compared to $5.2 million, or $0.76 per diluted share, for the second quarter of 2022 and $3.6 million, or $0.59 per diluted share, for the third quarter of 2021.

Third Quarter 2022 Financial Highlights

• Diluted earnings per share of $0.95, an increase of $0.19, or 100% annualized, compared to the second quarter of 2022, and increased $0.36, or 61%, compared to the third quarter of 2021.
• Return on average assets improved to 1.38%, compared to 1.02% in the second quarter of 2022 and 0.80% in the third quarter of 2021.
• Return on average equity improved to 19.36%, compared to 16.18% in the second quarter of 2022 and 10.45% in the third quarter of 2021.
• Taxable equivalent net interest margin increased to 4.07% in the third quarter of 2022, compared to 3.62% in the second quarter of 2022 and 2.98% in the third quarter of 2021.
• Efficiency ratio improved to 48.00%, compared to 53.43% in the second quarter of 2022 and 61.91% in the third quarter of 2021.
• Loans increased $56 million, or 17% annualized, from June 30, 2022 and increased $319 million, or 30%, from September 30, 2021.
• Annualized net charge-offs to average loans totaled 0.02% and 0.01% for the third quarter and year-to-date 2022, respectively. Non-performing assets to total assets were 0.01% on September 30, 2022, remaining flat from June 30, 2022 and decreased from 0.18% on September 30, 2021.

"Our strong performance for 2022 continued in the third quarter with another quarter of solid loan growth along with expanding profitability metrics," said Mark Mordell, Chairman and Chief Executive Officer. "Although overall deposit balances were down slightly in the third quarter, our growth in new deposits from new client acquisition was solid. Overall balances were down slightly in the third quarter as the strong growth in new deposits was offset by another quarter of elevated decreases in existing client balances due to the dynamic characteristics of many of our clients. We continue to be optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from further increases in the fed funds rate," added Mr. Mordell.

Income Statement

Taxable equivalent net interest income totaled $19.6 million for the third quarter of 2022, an increase of $2.1 million, or 48% annualized, from the second quarter of 2022, and an increase of $7.0 million, or 55%, from the third quarter of 2021. The net interest margin was 4.07% in the third quarter of 2022, an increase of 0.49% compared to the second quarter of 2022, and an increase of 1.09% compared to the third quarter of 2021. The increase in net interest income and net interest margin were primarily driven by higher interest rates and the growth in average balance of loans and investment securities.

The yield on loans in the third quarter of 2022 was 5.50%, an increase of 54 basis points from the second quarter of 2022 and an increase of 66 basis points from the third quarter of 2021. 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 third quarter of 2022 was 0.42%, an increase of 28 basis points from the second quarter of 2022 and an increase of 25 basis points from the third quarter of 2021. The cost of interest-bearing deposits in the third quarter of 2022 was 0.77% compared to 0.26% in the second quarter of 2022 and 0.34% in the third quarter of 2021.

In the third quarter of 2022, we recorded a provision for loan losses of $0.9 million, compared to $1.6 million in the second quarter of 2022 and $0.2 million in the third quarter of 2021. The third quarter provision was primarily attributable to the $56 million increase in loan balances.

Non-interest income was $1.1 million in the third quarter of 2022 compared to $1.2 million in the second quarter of 2022 and $1.0 million in the third quarter of 2021. Service charge income totaled $643,000 in the third quarter of 2022, a decrease of $38,000, or 22% annualized, compared to the second quarter of 2022 and an increase of $91,000, or 16% from the third quarter of 2021.

Non-interest expense totaled $9.9 million in the third quarter of 2022 compared to $10.0 million in the second quarter of 2022 and $8.5 million in the third quarter of 2021. 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 September 30, 2022 totaled 134 compared to 130 on June 30, 2022.

Balance Sheet

Total assets were $1.98 billion as of September 30, 2022, compared to $2.01 billion on June 30, 2022 and $1.83 billion at September 30, 2021. Cash and cash equivalents were $37 million on September 30, 2022, compared to $87 million on June 30, 2022 and $413 million on September 30, 2021.

Period end loans on September 30, 2022 totaled $1.39 billion, which represented an increase of $56 million, or 17% annualized, from June 30, 2022, and an increase of $319 million, or 30%, from $1.07 billion at September 30, 2021. Quarterly average loans for the third quarter of 2022 increased $96 million, or 30% annualized, from the second quarter of 2022 and $330 million, or 32%, from the third quarter of 2021.

The allowance for loan losses on September 30, 2022 was $15.5 million, representing an increase of $0.8 million from June 30, 2022. The Allowance for Loan Losses to total loans was 1.11% on September 30, 2022, compared to 1.09% on June 30, 2022. Nonperforming loans to total loans was 0.01% on September 30, 2022 and June 30, 2022.

Period end deposits were $1.81 billion on September 30, 2022 compared to $1.83 billion at June 30, 2022 and an increase of $167 million, or 10%, compared to $1.65 billion at September 30, 2021. Quarterly average deposits for the third quarter of 2022 increased $230 million, or 14%, compared to the third quarter of 2021 and decreased $69 million, or 15% annualized, from the second quarter of 2022.

Noninterest bearing deposits represented 44.3% of total deposits on September 30, 2022, compared to 45.9% on June 30, 2022 and 53.0% at September 30, 2021. The quarterly average loan to deposit ratio was 74.6% in the third quarter of 2022 compared to 66.8% in the second quarter of 2022 and 64.6% in the third quarter of 2021.

Book value per share was $16.58 on September 30, 2022, compared to $18.27 on June 30, 2022, a decrease of $1.69 primarily from an increase in the investment portfolio unrealized loss. Total shareholders' equity totaled $126.5 million on September 30, 2022, a decrease of $12.2 million compared to June 30, 2022. This decrease included an increase in retained earnings of $7.0 million offset by an increase in accumulated other comprehensive loss of $19.6 million.

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, 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
408-200-7390
IR@avidbank.com

AVIDBANK HOLDINGS, INC. Selected Financial Data (Unaudited) ($000, except share and per share amounts)
																For the nine months ended
	2022									2021						September 30,
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2022			2021
INCOME AND PER SHARE HIGHLIGHTS
Net income	$	7,045		$	5,214		$	4,349		$	2,534		$	3,574		$	16,608		$	9,730
Basic earnings per share		0.97			0.78			0.73			0.43			0.60			2.48			1.65
Diluted earnings per share		0.95			0.76			0.71			0.42			0.59			2.42			1.61
Book value per share		16.58			18.27			19.20			21.91			21.55
PERFORMANCE MEASURES
Return on average assets		1.38	%		1.02	%		0.83	%		0.49	%		0.80	%		1.07	%		0.81	%
Return on average equity		19.36	%		16.18	%		12.72	%		7.25	%		10.45	%		16.15	%		9.86	%
Taxable equivalent net interest margin		4.07	%		3.62	%		3.05	%		2.90	%		2.98	%		3.57	%		3.22	%
Efficiency ratio		48.00	%		53.43	%		63.72	%		58.31	%		61.91	%		54.43	%		65.22	%
Average loans to average deposits		74.61	%		66.88	%		62.31	%		61.75	%		64.60	%		67.81	%		71.76	%
CAPITAL
Tier 1 leverage ratio		9.22	%		8.72	%		6.85	%		6.89	%		7.81	%
Common equity tier 1 capital ratio		10.24	%		10.17	%		9.09	%		8.90	%		9.94	%
Tier 1 risk-based capital ratio		10.24	%		10.17	%		9.09	%		8.90	%		9.94	%
Total risk-based capital ratio		12.31	%		12.25	%		11.28	%		11.11	%		12.44	%
Tangible common equity ratio		6.38	%		6.90	%		5.75	%		6.34	%		7.37	%
SHARES OUTSTANDING
Number of common shares outstanding		7,629,767			7,585,924			6,316,573			6,256,682			6,255,752
Average common shares outstanding - basic		7,274,617			6,687,448			5,935,948			5,904,446			5,898,208			6,639,567			5,885,421
Average common shares outstanding - diluted		7,410,062			6,821,245			6,116,306			6,101,778			6,072,085			6,790,554			6,048,748
ASSET QUALITY
Allowance for loan losses (ALLL) to total loans		1.11	%		1.09	%		1.08	%		1.07	%		1.19	%
ALLL to nonperforming loans		10057.14	%		9211.32	%		407.43	%		402.40	%		388.88	%
Nonperforming assets to total assets		0.01	%		0.01	%		0.15	%		0.15	%		0.18	%
Nonperforming loans to total loans		0.01	%		0.01	%		0.27	%		0.27	%		0.31	%
Net quarterly charge-offs to total loans		0.01	%		0.00	%		0.00	%		0.25	%		0.00	%
AVERAGE BALANCES
Loans, net of deferred loan fees	$	1,357,090		$	1,261,255		$	1,213,353		$	1,152,641		$	1,026,812		$	1,277,760		$	1,019,253
Investment securities		505,849			487,535			436,427			287,915			231,526			476,858			200,060
Total assets		2,028,320			2,060,297			2,131,587			2,054,545			1,771,292			2,073,023			1,599,088
Deposits		1,819,008			1,888,494			1,947,208			1,866,704			1,589,384			1,884,434			1,420,386
Shareholders' equity		144,402			129,235			138,668			138,589			135,721			137,456			131,980
AT PERIOD END
Loans, net of deferred loan fees	$	1,392,546		$	1,336,786		$	1,201,934		$	1,223,344		$	1,073,132
Investment securities		468,239			507,826			468,917			380,170			276,670
Total assets		1,983,822			2,010,256			2,110,091			2,162,478			1,828,021
Deposits		1,814,372			1,828,752			1,947,278			1,979,410			1,647,613
Shareholders' equity		126,483			138,611			121,282			137,100			134,797

Avidbank Holdings, Inc.
Consolidated Balance Sheets (Unaudited)
($000)

		September 30,			June 30,			March 31,			December 31,			September 30,
Assets		2022			2022			2022			2021			2021
Cash and due from banks		$	23,766		$	50,907		$	47,091		$	29,616		$	34,864
Due from Federal Reserve Bank			13,476			35,913			320,336			463,727			378,380
Total cash and cash equivalents			37,242			86,820			367,427			493,343			413,244
Investment securities - available for sale			436,535			477,646			468,917			308,170			276,670
Investment securities - held to maturity			31,704			30,180			-			-			-
Total investment securities			468,239			507,826			468,917			380,170			276,670
Loans, net of deferred loan fees			1,392,546			1,336,786			1,201,934			1,223,344			1,073,132
Allowance for loan losses			(15,488	)		(14,646	)		(13,054	)		(13,054	)		(12,775	)
Loans, net of allowance for loan losses			1,377,058			1,322,140			1,188,880			1,210,290			1,060,357
Bank owned life insurance			32,522			32,303			32,087			31,875			31,663
Premises and equipment, net			4,318			4,314			4,331			4,565			4,913
Accrued interest receivable & other assets			64,443			56,853			48,449			42,235			41,174
Total assets		$	1,983,822		$	2,010,256		$	2,110,091		$	2,162,478		$	1,828,021
Liabilities
Non-interest-bearing demand deposits		$	804,383		$	838,666		$	952,035		$	993,156		$	872,972
Interest bearing transaction accounts			46,852			45,179			47,711			50,674			49,722
Money market and savings accounts			890,836			848,748			812,701			845,718			614,992
Time deposits			72,301			96,159			134,831			89,862			109,927
Total deposits			1,814,372			1,828,752			1,947,278			1,979,410			1,647,613
Subordinated debt, net			21,779			21,754			21,729			21,703			21,671
Other liabilities			21,188			21,139			19,802			24,265			23,940
Total liabilities			1,857,339			1,871,645			1,988,809			2,025,378			1,693,224
Shareholders' equity
Common stock/additional paid-in capital			101,679			101,244			72,920			72,799			72,124
Retained earnings			85,409			78,364			73,149			68,801			66,267
Accumulated other comprehensive (loss)			(60,605	)		(40,997	)		(24,787	)		(4,500	)		(3,594	)
Total shareholders' equity			126,483			138,611			121,282			137,100			134,797
Total liabilities and shareholders' equity		$	1,983,822		$	2,010,256		$	2,110,091		$	2,162,478		$	1,828,021

Avidbank Holdings, Inc.
Consolidated Statements of Income (Unaudited)
($000, except share and per share amounts)

		Three months ended												Year-to-Date
		September 30,				June 30,				September 30,				September 30,				September 30,
		2022				2022				2021				2022				2021
Interest and fees on loans		$	18,852			$	15,639			$	12,533			$	48,653			$	36,896
Interest on investment securities			2,794				2,477				946				7,126				2,453
Other interest income			307				356				156				816				263
Total interest income			21,954				18,472				13,635				56,595				39,612
Deposit interest expense			1,948				657				671				3,244				1,963
Other interest expense			426				300				310				1,026				931
Total interest expense			2,374				957				981				4,270				2,894
Net interest income			19,580				17,515				12,654				52,325				36,718
Provision for loan losses			925				1,592				217				2,517				293
Net interest income after provision for
loan losses			18,655				15,923				12,437				49,808				36,425
Service charges and bank fees			725				761				621				2,211				1,695
Income from bank owned life insurance			219				215				103				647				238
Gain/(loss) on sale of assets			-				-				-				-				734
Warrant income			12				64				-				162				22
Other income			120				187				273				395				558
Total non-interest income			1,076				1,227				997				3,415				3,247
Compensation and benefit expenses			7,069				7,129				5,860				21,510				18,336
Occupancy and equipment expenses			946				901				1,066				2,741				3,154
Data processing			447				423				413				1,281				1,254
Regulatory assessments			421				509				284				1,595				842
Professional fees			217				192				152				604				483
Other operating expenses			813				859				677				2,609				1,997
Total non-interest expense			9,913				10,013				8,452				30,340				26,066
Income before income taxes			9,818				7,137				4,982				22,883				13,606
Provision for income taxes			2,772				1,923				1,408				6,275				3,876
Net income		$	7,046			$	5,214			$	3,574			$	16,609			$	9,730
Basic earnings per common share		$	0.97			$	0.78			$	0.60			$	2.48			$	1.65
Diluted earnings per common share		$	0.95			$	0.76			$	0.59			$	2.43			$	1.61
Average common shares outstanding			7,274,617				6,687,448				5,898,208				6,639,567				5,885,421
Average common fully diluted shares			7,410,062				6,821,245				6,072,085				6,790,554				6,048,748

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

		Three months ended
		September 30, 2022											June 30, 2022
		Average Balance			Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,358,934			5.50	%		$	18,852			$	1,263,071				4.97	%		$	15,638
Fed funds sold			52,626			2.31	%			307				191,861				0.74	%			353
Investment securities
Taxable investment securities			475,086			2.11	%			2,530				475,039				2.00	%			2,364
Non-taxable investment securities (2)			30,763			4.31	%			334				12,496				4.59	%			143
Total investment securities			505,849			2.25	%			2,864				487,535				2.06	%			2,507
Total interest-earning assets			1,917,409			4.56	%			22,023				1,942,467				3.82	%			18,498
Noninterest-earning assets:
Cash and due from banks			34,984											46,334
All other assets (3)			75,927											71,496
Total assets		$	2,028,320										$	2,060,297
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	46,145			0.33	%		$	38			$	46,242				0.13	%		$	15
Money market and savings			867,113			0.81	%			1,768				835,058				0.21	%			440
Time			85,703			0.66	%			142				121,923				0.66	%			202
Total interest-bearing deposits			998,961			0.77	%			1,948				1,003,223				0.26	%			657
FHLB Advances			22,011			2.27	%			126				-				0.00	%			-
Subordinated debt			21,766			5.47	%			300				21,518				5.59	%			300
Total interest-bearing liabilities			1,042,738			0.90	%			2,374				1,024,741				0.37	%			957
Noninterest-bearing liabilities:
Demand deposits			820,047											885,271
Accrued expenses and other liabilities			21,133											21,050
Shareholders' equity			144,402											129,235
Total liabilities and shareholders' equity
		$	2,028,320										$	2,060,297
Net interest income and margin (4)						4.07	%		$	19,649								3.62	%		$	17,541
Non-taxable equivalent net interest margin						4.05	%											3.62	%
Cost of deposits			1,819,008			0.42	%			1,948				1,888,494				0.14	%			657
(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 $513 thousand and $460 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 $14.7 million and $13.2 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
	September 30, 2022										September 30, 2021
	Average Balance			Yields or Rates				Interest Income/ Expense			Average Balance			Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)	$	1,358,934			5.50	%		$	18,852		$	1,028,098			4.84	%		$	12,533
Fed funds sold		52,626			2.31	%			307			425,568			0.15	%			156
Investment securities
Taxable investment securities		475,086			2.11	%			2,530			231,526			1.62	%			946
Non-taxable investment securities (2)		30,763			4.31	%			334			-			0.00	%			-
Total investment securities		505,849			2.25	%			2,864			231,526			1.62	%			946
Total interest-earning assets		1,917,409			4.56	%			22,023			1,685,192			3.21	%			13,635
Noninterest-earning assets:
Cash and due from banks		34,984										38,286
All other assets (3)		75,927										47,814
Total assets	$	2,028,320									$	1,771,292
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand	$	46,145			0.33	%		$	38		$	47,400			0.16	%		$	19
Money market and savings		867,113			0.81	%			1,768			622,844			0.29	%			452
Time		85,703			0.66	%			142			116,806			0.68	%			200
Total interest-bearing deposits		998,961			0.77	%			1,948			787,050			0.34	%			671
FHLB Advances		22,011			2.27	%			126			-			0.00	%			-
Subordinated debt		21,766			5.47	%			300			21,653			5.68	%			310
Total interest-bearing liabilities		1,042,738			0.90	%			2,374			808,703			0.48	%			981
Noninterest-bearing liabilities:
Demand deposits		820,047										802,334
Accrued expenses and other liabilities		21,133										24,534
Shareholders' equity		144,402										135,721
Total liabilities and
shareholders' equity	$	2,028,320									$	1,771,292
Net interest income and margin (4)					4.07	%		$	19,649						2.98	%		$	12,654
Non-taxable equivalent net interest margin					4.05	%									2.98	%
Cost of deposits		1,819,008			0.42	%			1,948			1,589,384			0.17	%			671
(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 $513 thousand and $798 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 $14.7 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)

	Nine months ended
	September 30, 2022												September 30, 2021
	Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)	$	1,279,579				5.08	%		$	48,653			$	1,020,605				4.83	%		$	36,896
Fed funds sold		205,199				0.53	%			816				305,379				0.12	%			263
Investment securities
Taxable investment securities		462,326				1.95	%			6,749				200,060				1.64	%			2,453
Non-taxable investment securities (2)		14,532				4.39	%			477				-				0.00	%			-
Total investment securities		476,858				2.03	%			7,226				200,060				1.64	%			2,453
Total interest-earning assets		1,961,636				3.86	%			56,695				1,526,044				3.47	%			39,612
Noninterest-earning assets:
Cash and due from banks		41,173												28,671
All other assets (3)		70,214												44,373
Total assets	$	2,073,023											$	1,599,088
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand	$	47,184				0.20	%		$	69			$	34,052				0.18	%		$	46
Money market and savings		838,354				0.42	%			2,630				529,575				0.30	%			1,204
Time		109,375				0.67	%			545				127,579				0.75	%			713
Total interest-bearing deposits		994,913				0.44	%			3,244				691,206				0.38	%			1,963
FHLB Advances		7,418				2.25	%			125				-				0.00	%			-
Subordinated debt		21,666				5.56	%			901				21,618				5.76	%			931
Total interest-bearing liabilities		1,023,997				0.56	%			4,270				712,824				0.54	%			2,894
Noninterest-bearing liabilities:
Demand deposits		889,521												729,180
Accrued expenses and other liabilities		22,049												25,104
Shareholders' equity		137,456												131,980
Total liabilities and shareholders' equity	$	2,073,023											$	1,599,088
Net interest income and margin (4)						3.57	%		$	52,425								3.22	%		$	36,718
Non-taxable equivalent net interest margin						3.57	%											3.22	%
Cost of deposits		1,884,434				0.23	%			3,244				1,420,386				0.18	%			1,963
(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 $1.6 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) Allowance for loan losses of $13.7 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)
	Sept. 30, 2022			June 30, 2022			March 31, 2022			Dec. 31, 2021			Sept. 30, 2021			Current Quarter Change			Year over Year Change
Commercial loans	$	566,105		$	558,908		$	481,522		$	517,747		$	415,986		$	7,197		$	150,119
Real Estate
Commercial real estate
Multi-family		159,384			165,818			141,954			139,646			128,672			(6,434	)		30,712
CRE
Owner Occupied		131,649			108,045			109,502			99,728			89,832			23,604			41,817
Non-Owner Occupied		288,478			280,397			258,365			258,507			239,272			8,081			49,206
Construction and land		234,157			209,941			195,388			190,887			182,556			24,216			51,601
Residential		11,991			12,830			13,726			14,484			14,800			(839	)		(2,809	)
Total real estate loans		825,659			777,031			718,935			703,252			655,132			48,628			170,527
Other loans		782			847			1,477			2,345			2,014			(65	)		(1,232	)
Total loans	$	1,392,546		$	1,336,786		$	1,201,934		$	1,223,344		$	1,073,132		$	55,760		$	319,414

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

		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21
Allowance for Loan Losses
Balance, beginning of quarter		$	14,646		$	13,054		$	13,054		$	12,775		$	12,558
Provision for loan losses, quarterly			925			1,592			-			3,279			217
Charge-offs, quarterly			(83	)		-			-			(3,000	)		-
Recoveries, quarterly			-			-			-			-			-
Balance, end of quarter		$	15,488		$	14,646		$	13,054		$	13,054		$	12,775
Nonperforming Assets
Loans accounted for on a non-accrual basis		$	154		$	159		$	3,204		$	3,244		$	3,285
Loans with principal or interest contractually past
due 90 days or more and still accruing interest			-			-			-			-			-
Nonperforming loans			154			159			3,204			3,244			3,285
Other real estate owned			-			-			-			-			-
Nonperforming assets		$	154		$	159		$	3,204		$	3,244		$	3,285
Loans restructured and in compliance
with modified terms			-			-			-			-			-
Nonperforming assets & restructured loans		$	154		$	159		$	3,204		$	3,244		$	3,285
Nonperforming Loans by Type:
Commercial		$	154		$	159		$	441		$	448		$	456
Commercial Real Estate Loans			-			-			2,763			2,796			2,829
Total Nonperforming loans		$	154		$	159		$	3,204		$	3,244		$	3,285
Asset Quality Ratios
Allowance for loan losses (ALLL) to total loans			1.11	%		1.09	%		1.08	%		1.07	%		1.19	%
ALLL to nonperforming loans			10057.14	%		9211.32	%		407.43	%		402.40	%		388.89	%
Nonperforming assets to total assets			0.01	%		0.01	%		0.15	%		0.00	%		0.18	%
Nonperforming loans to total loans			0.01	%		0.01	%		0.27	%		0.27	%		0.31	%
Net quarterly charge-offs to total loans			0.01	%		0.00	%		0.00	%		0.25	%		0.00	%

SOURCE: Avidbank Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/720969/Avidbank-Holdings-Inc-Announces-Net-Income-for-the-Third-Quarter-of-2022

FAQ

What is Avidbank Holdings' income for Q3 2022?

Avidbank Holdings reported an income of $7.0 million for Q3 2022.

How did diluted earnings per share change in Q3 2022 for AVBH?

Diluted earnings per share for AVBH increased to $0.95 in Q3 2022.

What was the return on average assets for Avidbank in Q3 2022?

The return on average assets improved to 1.38% in Q3 2022.

How much did loans increase by in Q3 2022 for AVBH?

Loans increased by $56 million, or 17% annualized, from June 30, 2022.

What was the net interest margin for Avidbank in Q3 2022?

The net interest margin was 4.07% in Q3 2022.