Avidbank Holdings, Inc. Announces Net Income of $2,507,000 for the First Quarter of 2021
Avidbank Holdings reported a net income of $2.5 million for Q1 2021, slightly higher than $2.4 million in Q1 2020. Total interest income rose to $12.9 million, up 0.7% from the prior year, despite a decrease in average loan yields due to a Federal Reserve rate cut. Total assets grew by 7% to $1.5 billion, and total loans increased by 3%, while total deposits surged by 9% to $1.4 billion. Net interest margin fell to 3.44% from 4.21% year-over-year. Non-interest expense rose to $9.0 million due to increased staffing costs, leading to an efficiency ratio increase to 71.6%.
- Q1 2021 net income increased to $2.5 million, up from $2.4 million year-over-year.
- Total interest income rose to $12.9 million, reflecting loan growth.
- Total assets grew by 7% to $1.5 billion.
- Total deposits increased by 9% to $1.4 billion.
- Loan growth of 3% to $1.0 billion in Q1 2021.
- Average total loans outstanding grew by 10% year-over-year.
- Average loan yields decreased by 9% from 5.34% to 4.87% due to Federal Reserve rate cuts.
- Net interest margin fell to 3.44%, down from 4.21% in the prior year.
- Non-interest income decreased by 12% to $711,000.
- Non-interest expense increased by $809,000 to $9.0 million.
SAN JOSE, CA / ACCESSWIRE / April 29, 2021 / Avidbank Holdings, Inc. ("the Company") (OTC Pink:AVBH), a bank holding company and the parent company of Avidbank ("the Bank"), an independent full-service commercial bank serving businesses and individuals primarily in Northern California, announced unaudited consolidated net income of
First Quarter 2021 Financial Highlights
- Total interest income was
$12,863,000 for the first quarter of 2021, an increase of$87,000 over the$12,776,000 we recorded in the first quarter of 2020. The0.7% increase over the prior year quarter reflects year over year loan growth offset by declining loan yields, but augmented by increased investment securities income. - Net income was
$2,507,000 for the first quarter of 2021, compared to$2,435,000 for the first quarter of 2020. Results for the first quarter of 2021 were affected by the full impact of the 150 basis point Federal Reserve rate cut in March 2020 which caused average loan yields to drop9% from5.34% to4.87% . - Diluted earnings per common share were
$0.42 for the first quarter of 2021, compared to$0.41 for the first quarter of 2020. - Total assets grew by
7% in the first three months of 2021, ending the first quarter at$1.5 billion . - Total loans net of deferred fees grew by
3% in the first three months of 2021, ending the first quarter at$1.0 billion . - Total deposits grew by
9% in the first three months of 2021, ending the first quarter at$1.4 billion . - The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of
8.87% , a Tier 1 Risk Based Capital and Common Equity Tier 1 Risk Based Capital Ratio of10.38% , and a Total Risk Based Capital Ratio of13.14% .
Mark D. Mordell, Chairman and Chief Executive Officer, stated, "Net interest income increased to
Mr. Mordell continued, "Non-interest expense increased by
Results for the quarter ended March 31, 2021
For the three months ended March 31, 2021, interest and fees on loans were
Non-interest income was
Non-interest expense increased by
Balance Sheet
Total assets were
"We had
The Company's total deposits were
Demand and interest bearing transaction deposits represented
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, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.
Forward-Looking Statement:
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.
Contact:
Steve Leen
Executive Vice President and Chief Financial Officer
408-831-5653
sleen@avidbank.com
Consolidated Balance Sheets
(
Assets | 3/31/21 | 12/31/20 | 9/30/20 | 6/30/20 | 3/31/20 | |||||||||||||||
Cash and due from banks | $ | 21,870 | $ | 14,327 | $ | 20,857 | $ | 16,797 | $ | 17,042 | ||||||||||
Due from Federal Reserve Bank | 258,921 | 215,705 | 327,795 | 315,110 | 141,405 | |||||||||||||||
Total cash and cash equivalents | 280,791 | 230,032 | 348,652 | 331,907 | 158,447 | |||||||||||||||
Investment securities - available for sale | 184,504 | 163,631 | 40,316 | 43,601 | 44,983 | |||||||||||||||
Loans, net of deferred loan fees | 1,027,336 | 993,483 | 1,011,137 | 1,002,029 | 965,684 | |||||||||||||||
Allowance for loan losses | (12,558) | (12,558) | (12,443) | (12,521) | (11,540) | |||||||||||||||
Loans, net of allowance for loan losses | 1,014,778 | 980,925 | 998,694 | 989,508 | 954,144 | |||||||||||||||
Bank owned life insurance | 11,491 | 11,425 | 11,355 | 11,288 | 11,222 | |||||||||||||||
Premises and equipment, net | 5,375 | 5,565 | 5,432 | 5,435 | 5,522 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Accrued interest receivable & other assets | 38,744 | 39,048 | 39,321 | 31,729 | 30,812 | |||||||||||||||
Total assets | $ | 1,535,683 | $ | 1,430,626 | $ | 1,443,770 | $ | 1,413,468 | $ | 1,205,130 | ||||||||||
Liabilities | ||||||||||||||||||||
Non-interest-bearing demand deposits | $ | 702,785 | $ | 665,096 | $ | 671,663 | $ | 621,777 | $ | 477,404 | ||||||||||
Interest bearing transaction accounts | 27,863 | 25,390 | 24,808 | 26,837 | 25,104 | |||||||||||||||
Money market and savings accounts | 499,507 | 419,038 | 382,394 | 382,776 | 292,051 | |||||||||||||||
Time deposits | 133,314 | 144,230 | 189,529 | 218,634 | 199,841 | |||||||||||||||
Total deposits | 1,363,469 | 1,253,754 | 1,268,394 | 1,250,024 | 994,400 | |||||||||||||||
FHLB advances | - | - | - | - | 50,000 | |||||||||||||||
Subordinated debt, net | 21,601 | 21,565 | 21,571 | 21,540 | 21,509 | |||||||||||||||
Other liabilities | 23,294 | 27,383 | 28,409 | 19,475 | 19,806 | |||||||||||||||
Total liabilities | 1,408,364 | 1,302,702 | 1,318,374 | 1,291,039 | 1,085,715 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock/additional paid-in capital | 71,152 | 70,721 | 70,595 | 70,012 | 69,444 | |||||||||||||||
Retained earnings | 59,044 | 56,537 | 53,773 | 51,414 | 49,345 | |||||||||||||||
Accumulated other comprehensive income (loss) | (2,877) | 666 | 1,028 | 1,003 | 626 | |||||||||||||||
Total shareholders' equity | 127,319 | 127,924 | 125,396 | 122,429 | 119,415 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,535,683 | $ | 1,430,626 | $ | 1,443,770 | $ | 1,413,468 | $ | 1,205,130 | ||||||||||
Capital ratios | ||||||||||||||||||||
Tier 1 leverage ratio | 8.87 | % | 8.67 | % | 8.79 | % | 9.16 | % | 10.64 | % | ||||||||||
Common equity tier 1 capital ratio | 10.38 | % | 10.35 | % | 10.33 | % | 10.28 | % | 10.33 | % | ||||||||||
Tier 1 risk-based capital ratio | 10.38 | % | 10.35 | % | 10.33 | % | 10.28 | % | 10.33 | % | ||||||||||
Total risk-based capital ratio | 13.14 | % | 13.15 | % | 13.19 | % | 13.19 | % | 13.24 | % | ||||||||||
Book value per common share | $ | 20.42 | $ | 20.74 | $ | 20.37 | $ | 19.92 | $ | 19.46 | ||||||||||
Total common shares outstanding | 6,236,392 | 6,168,313 | 6,155,265 | 6,144,578 | 6,136,189 | |||||||||||||||
Other Ratios | ||||||||||||||||||||
Non-interest bearing deposits to total deposits | 51.5 | % | 53.0 | % | 53.0 | % | 49.7 | % | 48.0 | % | ||||||||||
Core deposits to total deposits | 91.3 | % | 90.0 | % | 86.7 | % | 84.3 | % | 82.2 | % | ||||||||||
Loan to deposit ratio | 75.3 | % | 79.2 | % | 79.7 | % | 80.2 | % | 97.1 | % | ||||||||||
Allowance for loan losses to total loans | 1.22 | % | 1.26 | % | 1.23 | % | 1.25 | % | 1.20 | % | ||||||||||
Condensed Consolidated Statements of Income
(
Quarter Ended | ||||||||||||
3/31/21 | 12/31/20 | 3/31/20 | ||||||||||
Interest and fees on loans and leases | $ | 12,116 | $ | 12,732 | $ | 12,175 | ||||||
Interest on investment securities | 699 | 191 | 306 | |||||||||
Other interest income | 48 | 77 | 295 | |||||||||
Total interest income | 12,863 | 13,000 | 12,776 | |||||||||
Deposit interest expense | 642 | 922 | 1,385 | |||||||||
Other interest expense | 310 | 309 | 311 | |||||||||
Total interest expense | 952 | 1,231 | 1,696 | |||||||||
Net interest income | 11,911 | 11,769 | 11,080 | |||||||||
Provision for loan losses | 75 | 115 | 273 | |||||||||
Net interest income after provision for loan losses | 11,836 | 11,654 | 10,807 | |||||||||
Service charges, fees and other income | 622 | 638 | 743 | |||||||||
Income from bank owned life insurance | 67 | 69 | 66 | |||||||||
Gain on sale of assets | 22 | - | 0 | |||||||||
Total non-interest income | 711 | 707 | 809 | |||||||||
Compensation and benefit expenses | 6,476 | 5,972 | 5,876 | |||||||||
Occupancy and equipment expenses | 1,071 | 1,139 | 942 | |||||||||
Other operating expenses | 1,496 | 1,485 | 1,416 | |||||||||
Total non-interest expense | 9,043 | 8,596 | 8,234 | |||||||||
Income before income taxes | 3,504 | 3,765 | 3,382 | |||||||||
Provision for income taxes | 997 | 1,001 | 947 | |||||||||
Net income | $ | 2,507 | $ | 2,764 | $ | 2,435 | ||||||
Basic earnings per common share | $ | 0.43 | $ | 0.47 | $ | 0.42 | ||||||
Diluted earnings per common share | $ | 0.42 | $ | 0.46 | $ | 0.41 | ||||||
Average common shares outstanding | 5,864,976 | 5,874,617 | 5,836,045 | |||||||||
Average common fully diluted shares | 6,020,336 | 6,000,688 | 5,953,208 | |||||||||
Annualized returns: | ||||||||||||
Return on average assets | 0.69 | % | 0.75 | % | 0.88 | % | ||||||
Return on average common equity | 7.89 | % | 8.67 | % | 8.27 | % | ||||||
Net interest margin | 3.44 | % | 3.33 | % | 4.21 | % | ||||||
Cost of funds | 0.29 | % | 0.37 | % | 0.70 | % | ||||||
Efficiency ratio | 71.64 | % | 68.90 | % | 69.26 | % | ||||||
Credit Trends
(
3/31/21 | 12/31/20 | 9/30/20 | 6/30/20 | 3/31/20 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Balance, beginning of quarter | $ | 12,558 | $ | 12,443 | $ | 12,521 | $ | 11,540 | $ | 11,267 | ||||||||||
Provision for loan losses, quarterly | 75 | 115 | 303 | 1,011 | 273 | |||||||||||||||
Charge-offs, quarterly | (75 | ) | - | (380 | ) | (31 | ) | - | ||||||||||||
Recoveries, quarterly | - | - | - | - | - | |||||||||||||||
Balance, end of quarter | $ | 12,558 | $ | 12,558 | $ | 12,443 | $ | 12,521 | $ | 11,540 | ||||||||||
Nonperforming Assets | ||||||||||||||||||||
Loans accounted for on a non-accrual basis | $ | 3,367 | $ | 3,547 | $ | 331 | $ | 1,080 | $ | 3,902 | ||||||||||
Loans with principal or interest contractually past | ||||||||||||||||||||
due 90 days or more and still accruing interest | - | - | - | - | - | |||||||||||||||
Nonperforming loans | 3,367 | 3,547 | 331 | 1,080 | 3,902 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Nonperforming assets | $ | 3,367 | $ | 3,547 | $ | 331 | $ | 1,080 | $ | 3,902 | ||||||||||
Loans restructured and in compliance with | ||||||||||||||||||||
modified terms | - | - | - | - | - | |||||||||||||||
Nonperforming assets & restructured loans | $ | 3,367 | $ | 3,547 | $ | 331 | $ | 1,080 | $ | 3,902 | ||||||||||
Nonperforming Loans by Type: | ||||||||||||||||||||
Commercial | $ | 470 | $ | 618 | $ | 331 | $ | 1,080 | $ | 1,665 | ||||||||||
Commercial Real Estate Loans | 2,897 | 2,929 | - | - | 2,237 | |||||||||||||||
Residential Real Estate Loans | - | - | - | - | - | |||||||||||||||
Construction Loans | - | - | - | - | - | |||||||||||||||
Consumer Loans | - | - | - | - | - | |||||||||||||||
Total Nonperforming loans | $ | 3,367 | $ | 3,547 | $ | 331 | $ | 1,080 | $ | 3,902 | ||||||||||
Asset Quality Ratios | ||||||||||||||||||||
Allowance for loan losses (ALLL) to total loans | 1.22 | % | 1.26 | % | 1.23 | % | 1.25 | % | 1.20 | % | ||||||||||
ALLL to nonperforming loans | 373.03 | % | 354.00 | % | 3759.27 | % | 1159.33 | % | 295.78 | % | ||||||||||
Nonperforming assets to total assets | 0.22 | % | 0.25 | % | 0.02 | % | 0.08 | % | 0.32 | % | ||||||||||
Nonperforming loans to total loans | 0.33 | % | 0.36 | % | 0.03 | % | 0.11 | % | 0.40 | % | ||||||||||
Net quarterly charge-offs to total loans | 0.01 | % | 0.00 | % | 0.04 | % | 0.00 | % | 0.00 | % | ||||||||||
SOURCE: Avidbank Holdings, Inc.
View source version on accesswire.com:
https://www.accesswire.com/643065/Avidbank-Holdings-Inc-Announces-Net-Income-of-2507000-for-the-First-Quarter-of-2021
FAQ
What was Avidbank's net income in Q1 2021?
How much did Avidbank's total deposits grow in Q1 2021?
What impact did the Federal Reserve rate cut have on Avidbank's loan yields?
What was the efficiency ratio for Avidbank in Q1 2021?