Avidbank Holdings, Inc. Announces Net Income of $8.4 Million for the Fourth Quarter of 2022

Rhea-AI Summary

Avidbank Holdings, Inc. (OTC PINK:AVBH) reported a strong financial performance for Q4 2022, with net income of $8.4 million, or $1.13 per diluted share, reflecting a 76% increase from Q3 2022 and a 169% rise from Q4 2021. Key highlights include a return on average assets of 1.61%, a taxable equivalent net interest margin of 4.41%, and a 46% annualized increase in loans. For the full year 2022, net income reached $25 million, up 104% from 2021. Growth in loans totaled $331 million, indicating robust lending activity. Avidbank's leadership expresses confidence in sustaining this performance into 2023.

Positive

• Net income for Q4 2022 reached $8.4 million, up 169% from Q4 2021.
• Return on average assets improved to 1.61%, up from 0.49% in Q4 2021.
• Loans increased by $162 million in Q4 2022, showing robust growth.
• Annual diluted earnings per share rose to $3.55, a 76% increase year-over-year.
• Taxable equivalent net interest margin increased to 4.41%, up from 2.90% in Q4 2021.

Negative

• Nonperforming loans increased to 0.92% of total loans, up from 0.01% in Q3 2022.

SAN JOSE, CA / ACCESSWIRE / January 30, 2023 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced income for the fourth quarter of 2022 of $8.4 million, or $1.13 per diluted share, compared to $7.0 million, or $0.95 per diluted share, for the third quarter of 2022 and $2.5 million, or $0.42 per diluted share, for the fourth quarter of 2021.

Fourth Quarter 2022 Financial Highlights

• Diluted earnings per share of $1.13 increased $0.18, or 76% annualized, compared to the third quarter of 2022, and increased $0.71, or 169%, compared to the fourth quarter of 2021.
• Return on average assets improved to 1.61%, compared to 1.38% in the third quarter of 2022 and 0.49% in the fourth quarter of 2021.
• Taxable equivalent net interest margin increased to 4.41% in the fourth quarter of 2022, compared to 4.07% in the third quarter of 2022 and 2.90% in the fourth quarter of 2021.
• Efficiency ratio improved to 45.42%, compared to 48.00% in the third quarter of 2022 and 58.31% in the fourth quarter of 2021.
• Loans increased $162 million, or 46% annualized, from September 30, 2022.
• Annualized net charge-offs to average loans totaled 0.00% for the fourth quarter.

2022 Full Year Financial Highlights

• Diluted earnings per share of $3.55, increased 76% compared to 2021. Net income totaled $25.0 million, an increase of 104% compared to 2021.
• Return on average assets improved to 1.21%, compared to 0.72% in 2021.
• Taxable equivalent net interest margin increased to 3.78% compared to 3.12% in 2021.
• Efficiency ratio improved to 51.80%, compared to 63.21% in 2021.
• Loans increased $331 million, or 27%, from December 31, 2021.
• Annualized net charge-offs to average loans totaled 0.01% for the full year of 2022.

"Our strong performance for 2022 continued in the fourth quarter with solid loan growth and continued improvement in our overall profitability," said Mark Mordell, Chairman and Chief Executive Officer. "The growth we have achieved along with our increased profitability have us well positioned for 2023," added Mr. Mordell.

Income Statement

Taxable equivalent net interest income totaled $21.8 million for the fourth quarter of 2022, an increase of $2.2 million, or 44% annualized, from the third quarter of 2022, and an increase of $7.5 million, or 53%, from the fourth quarter of 2021. The tax-equivalent net interest margin was 4.41% in the fourth quarter of 2022, an increase of 34 basis points compared to the third quarter of 2022, and an increase of 151 basis points compared to the fourth 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.

The yield on loans in the fourth quarter of 2022 was 6.33%, an increase of 83 basis points from the third quarter of 2022 and an increase of 154 basis points from the fourth quarter of 2021. The increase in loan yields was primarily due to increases in the Prime rate. Additionally, to help stabilize our loan yield, we hedged $125 million of our Prime loan portfolio in the fourth quarter of 2022 with receive-fixed interest rate swaps.

The cost of deposits in the fourth quarter of 2022 was 0.90%, an increase of 48 basis points from the third quarter of 2022 and an increase of 76 basis points from the fourth quarter of 2021. The cost of interest-bearing deposits in the fourth quarter of 2022 was 1.59% compared to 0.77% in the third quarter of 2022 and 0.30% in the fourth quarter of 2021.

In the fourth quarter of 2022, we recorded a provision for loan losses of $1.0 million, compared to $0.9 million in the third quarter of 2022 and $3.3 million in the fourth quarter of 2021. The provision in the fourth quarter of 2022 was primarily attributable to the $162 million increase in loan balances.

Non-interest income was $1.3 million in the fourth quarter of 2022 compared to $1.1 million in the third quarter of 2022 and $2.1 million in the fourth quarter of 2021. The fourth quarter of 2022 included $119,000 in warrant and success fee income and $521,000 in other investment income, which was offset by a $404,000 loss on the sale of $15 million in investment securities.

Non-interest expense totaled $10.5 million in the fourth quarter of 2022 compared to $10.0 million in the third quarter of 2022 and $9.5 million in the fourth quarter of 2021. This linked quarter increase was primarily due to an increase in salary and incentive expense, offset by a decrease in the FDIC regulatory assessment. The number of full-time equivalent employees on December 31, 2022, totaled 142 compared to 134 on September 30, 2022.

Balance Sheet

Total assets were $2.13 billion as of December 30, 2022, compared to $1.98 billion on September 30, 2022 and $2.16 billion at December 30, 2021. Cash and cash equivalents were $47 million on December 31, 2022, compared to $37 million on September 30, 2022, and $493 million on December 31, 2021.

Period end loans on December 31, 2022, totaled $1.55 billion, which represented an increase of $162 million, or 46% annualized, from September 30, 2022, and an increase of $331 million, or 27%, from $1.22 billion at December 31, 2021. The growth in loans during the fourth quarter of 2022 included an increase of $134 million in commercial loans. Quarterly average loans for the fourth quarter of 2022 increased $93 million, or 27% annualized, from the third quarter of 2022 and $297 million, or 26%, from the fourth quarter of 2021.

The allowance for loan losses on December 31, 2022, was $16.5 million, representing an increase of $1.0 million from September 30, 2022. The allowance for loan losses to total loans was 1.06% on December 31, 2022, compared to 1.11% on September 30, 2022. Nonperforming loans to total loans was 0.92% on December 31, 2022, compared to 0.01% on September 30, 2022. The increase was due to a downgrade of one $14.1 million construction loan credit relating to a completed condominium project which we have been closely monitoring over the last 18 months. We believe that we are well-collateralized to protect the Bank's position with respect to this credit.

Period end deposits were $1.82 billion on December 31, 2022, compared to $1.81 billion at September 30, 2022 and $1.98 billion at December 31, 2021. Quarterly average deposits for the fourth quarter of 2022 increased $65 million, or 14% annualized, compared to the third quarter of 2022, and increased $17 million, or 1%, from the fourth quarter of 2021.

Noninterest bearing deposits represented 42% of total deposits on December 31, 2022, compared to 44% on September 30, 2022, and 50% on December 31, 2021. The quarterly average loan to deposit ratio was 77% in the fourth quarter of 2022 compared to 75% in the third quarter of 2022 and 62% in the fourth quarter of 2021.

Book value per share was $17.99 on December 31, 2022, an increase of $1.41 compared to $16.58 on September 30, 2022. Total shareholders' equity totaled $137.5 million on December 31, 2022, an increase of $11.1 million compared to September 30, 2022. This included an increase in retained earnings of $8.4 million and a decrease in accumulated other comprehensive loss of $2.0 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, and 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 twelve months ended
		2022																2021				December 31,
		Fourth				Third				Second				First				Fourth
		Quarter				Quarter				Quarter				Quarter				Quarter				2022				2021
INCOME AND PER SHARE HIGHLIGHTS
Net income		$	8,415			$	7,045			$	5,214			$	4,349			$	2,534			$	25,023			$	12,264
Basic earnings per share			1.16				0.97				0.78				0.73				0.43				3.64				2.08
Diluted earnings per share			1.13				0.95				0.76				0.71				0.42				3.55				2.02
Book value per share			17.99				16.58				18.27				19.20				21.91				17.99				21.91
PERFORMANCE MEASURES
Return on average assets			1.61	%			1.38	%			1.02	%			0.83	%			0.49	%			1.21	%			0.72	%
Return on average equity			25.48	%			19.36	%			16.18	%			12.72	%			7.25	%			18.42	%			9.18	%
Taxable equivalent net interest margin			4.41	%			4.07	%			3.62	%			3.05	%			2.90	%			3.78	%			3.12	%
Efficiency ratio			45.42	%			48.00	%			53.43	%			63.72	%			58.31	%			51.80	%			63.21	%
Average loans to average deposits			76.98	%			74.61	%			66.88	%			62.31	%			61.75	%			70.12	%			68.68	%
CAPITAL
Tier 1 leverage ratio			9.46	%			9.22	%			8.72	%			6.85	%			6.89	%			9.46	%			6.89	%
Common equity tier 1 capital ratio			9.82	%			10.24	%			10.17	%			9.09	%			8.90	%			9.82	%			8.90	%
Tier 1 risk-based capital ratio			9.82	%			10.24	%			10.17	%			9.09	%			8.90	%			9.82	%			8.90	%
Total risk-based capital ratio			11.76	%			12.31	%			12.25	%			11.28	%			11.11	%			11.76	%			11.11	%
Tangible common equity ratio			6.45	%			6.38	%			6.90	%			5.75	%			6.34	%			6.45	%			6.34	%
SHARES OUTSTANDING
Number of common shares outstanding			7,645,428				7,629,767				7,585,924				6,316,573				6,256,682				7,645,428				6,256,682
Average common shares
outstanding - basic			7,281,343				7,274,617				6,687,448				5,935,948				5,904,446				6,801,330				5,890,216
Average common shares
outstanding - diluted			7,432,670				7,410,062				6,821,245				6,116,306				6,101,778				6,952,758				6,062,482
ASSET QUALITY
Allowance for loan losses (ALLL)
to total loans			1.06	%			1.11	%			1.09	%			1.08	%			1.07	%			1.06	%			1.07	%
ALLL to nonperforming loans			115.70	%			10057.14	%			9211.32	%			407.43	%			402.40	%			115.70	%			402.40	%
Nonperforming assets to total assets			0.67	%			0.01	%			0.01	%			0.15	%			0.15	%			0.67	%			0.15	%
Nonperforming loans to total loans			0.92	%			0.01	%			0.01	%			0.27	%			0.27	%			0.92	%			0.27	%
Net charge-offs to total loans			0.00	%			0.01	%			0.00	%			0.00	%			0.25	%			0.01	%			0.25	%
AVERAGE BALANCES
Loans, net of deferred loan fees		$	1,450,014			$	1,357,090			$	1,261,255			$	1,213,353			$	1,152,641			$	1,321,177			$	1,052,779
Investment securities			459,057				505,849				487,535				436,427				287,915				472,371				222,204
Total assets			2,072,887				2,028,320				2,060,297				2,131,587				2,054,545				2,072,989				1,713,888
Deposits			1,883,640				1,819,008				1,888,494				1,947,208				1,866,704				1,884,233				1,532,883
Shareholders' equity			131,046				144,402				129,235				138,668				138,589				135,841				133,646
AT PERIOD END
Loans, net of deferred loan fees		$	1,554,222			$	1,392,546			$	1,336,786			$	1,201,934			$	1,223,344			$	1,554,222			$	1,223,344
Investment securities			444,664				468,239				507,826				468,917				380,170				444,664				380,170
Total assets			2,133,268				1,983,822				2,010,256				2,110,091				2,162,478				2,133,268				2,162,478
Deposits			1,823,235				1,814,372				1,828,752				1,947,278				1,979,410				1,823,235				1,979,410
Shareholders' equity			137,538				126,483				138,611				121,282				137,100				137,538				137,100

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

		December 31,				September 30,				June 30,				March 31,				December 31,
Assets		2022				2022				2022				2022				2021
Cash and due from banks		$	17,435			$	23,766			$	50,907			$	47,091			$	29,616
Due from Federal Reserve Bank			29,853				13,476				35,913				320,336				463,727
Total cash and cash equivalents			47,288				37,242				86,820				367,427				493,343
Investment securities - available for sale			412,993				436,535				477,646				468,917				308,170
Investment securities - held to maturity			31,671				31,704				30,180				-				-
Total investment securities			444,664				468,239				507,826				468,917				380,170
Loans, net of deferred loan fees			1,554,222				1,392,546				1,336,786				1,201,934				1,223,344
Allowance for loan losses			(16,481	)			(15,488	)			(14,646	)			(13,054	)			(13,054	)
Loans, net of allowance for loan losses			1,537,741				1,377,058				1,322,140				1,188,880				1,210,290
Bank owned life insurance			32,747				32,522				32,303				32,087				31,875
Premises and equipment, net			4,163				4,318				4,314				4,331				4,565
Accrued interest receivable & other assets			66,665				64,443				56,853				48,449				42,235
Total assets		$	2,133,268			$	1,983,822			$	2,010,256			$	2,110,091			$	2,162,478
Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing demand		$	765,079			$	804,383			$	838,666			$	952,035			$	993,156
Interest bearing checking			41,701				46,852				45,179				47,711				50,674
Money market and savings			948,731				890,836				848,748				812,701				845,718
Time			67,724				72,301				96,159				134,831				89,862
Total deposits			1,823,235				1,814,372				1,828,752				1,947,278				1,979,410
Subordinated debt, net			21,805				21,779				21,754				21,729				21,703
Federal Home Loan Bank and other borrowings			130,000				-				-				-				-
Accrued interest payable and other liabilities			20,690				21,188				21,139				19,802				24,265
Total liabilities			1,995,730				1,857,339				1,871,645				1,988,809				2,025,378
Shareholders' Equity
Common stock			102,359				101,679				101,244				72,920				72,799
Retained earnings			93,824				85,409				78,364				73,149				68,801
Accumulated other comprehensive (loss)			(58,645	)			(60,605	)			(40,997	)			(24,787	)			(4,500	)
Total shareholders' equity			137,538				126,483				138,611				121,282				137,100
Total liabilities and shareholders' equity		$	2,133,268			$	1,983,822			$	2,010,256			$	2,110,091			$	2,162,478

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

		Three Months Ended												Year-to-Date
		Dec. 31, 2022				Sept. 30, 2022				Dec. 31, 2021				Dec. 31, 2022				Dec. 31, 2021
Interest and fees on loans		$	23,160			$	18,853			$	13,927			$	71,813			$	50,823
Interest on investment securities			2,751				2,794				1,154				9,877				3,606
Other interest income			526				307				193				1,342				456
Total interest income			26,437				21,954				15,274				83,032				54,885
Deposit interest expense			4,269				1,948				655				7,513				2,618
Other interest expense			414				426				307				1,440				1,238
Total interest expense			4,683				2,374				962				8,953				3,856
Net interest income			21,754				19,580				14,312				74,079				51,029
Provision for loan losses			993				925				3,279				3,510				3,572
Net interest income after provision for
loan losses			20,761				18,655				11,033				70,569				47,457
Service charges and bank fees			660				725				621				2,871				2,366
Income from bank owned life insurance			224				219				213				871				451
Gain/(loss) on sale of assets			-				-				(113	)			-				(113	)
Gain/(loss) on sale of securities			(404	)			-				-				(404	)			735
Warrant and success fee income			119				12				456				281				477
Other investment income			521				(1	)			757				605				1,069
Other income			135				121				131				446				328
Total non-interest income			1,255				1,076				2,065				4,670				5,313
Compensation and benefit expenses			7,592				7,069				6,920				29,102				25,256
Occupancy and equipment expenses			911				946				924				3,652				4,078
Data processing			456				447				394				1,737				1,647
Regulatory assessments			221				421				384				1,816				1,226
Legal and professional fees			364				269				187				1,290				897
Other operating expenses			906				761				740				3,193				2,512
Total non-interest expense			10,450				9,913				9,549				40,790				35,616
Income before income taxes			11,566				9,818				3,549				34,449				17,154
Provision for income taxes			3,151				2,772				1,015				9,426				4,890
Net income		$	8,415			$	7,046			$	2,534			$	25,023			$	12,264
Basic earnings per common share		$	1.16			$	0.97			$	0.43			$	3.64			$	2.08
Diluted earnings per common share		$	1.13			$	0.95			$	0.42			$	3.55			$	2.02
Average common shares outstanding			7,281,343				7,274,617				5,904,446				6,801,330				5,890,216
Average common fully diluted shares			7,432,670				7,410,062				6,101,778				6,952,758				6,062,482

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

		Three months ended
		December 31, 2022												September 30, 2022
		Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,451,724				6.33	%		$	23,160			$	1,358,934				5.50	%		$	18,853
Fed funds sold/interest bearing deposits			52,321				3.99	%			526				52,626				2.31	%			307
Investment securities
Taxable investment securities			428,520				2.30	%			2,481				475,086				2.11	%			2,530
Non-taxable investment securities (2)			30,537				4.48	%			345				30,763				4.31	%			333
Total investment securities			459,057				2.44	%			2,826				505,849				2.25	%			2,863
Total interest-earning assets			1,963,102				5.36	%			26,512				1,917,409				4.56	%			22,023
Noninterest-earning assets:
Cash and due from banks			25,494												34,984
All other assets (3)			84,291												75,927
Total assets		$	2,072,887											$	2,028,320
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	44,344				0.54	%		$	60			$	46,145				0.33	%		$	38
Money market and savings			953,665				1.68	%			4,027				867,113				0.81	%			1,768
Time			70,409				1.03	%			182				85,703				0.66	%			142
Total interest-bearing deposits			1,068,418				1.59	%			4,269				998,961				0.77	%			1,948
FHLB and other borrowings			11,772				3.84	%			114				22,011				2.27	%			126
Subordinated debt			21,792				5.46	%			300				21,766				5.47	%			300
Total interest-bearing liabilities			1,101,982				1.69	%			4,683				1,042,738				0.90	%			2,374
Noninterest-bearing liabilities:
Demand deposits			815,222												820,047
Accrued expenses and other liabilities			24,637												21,133
Shareholders' equity			131,046												144,402
Total liabilities and
shareholders' equity		$	2,072,887											$	2,028,320
Net interest income and margin (4)							4.41	%		$	21,829								4.07	%		$	19,649
Non-taxable equivalent net interest margin							4.40	%											4.05	%
Cost of deposits			1,883,640				0.90	%			4,269				1,819,008				0.42	%			1,948
(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 $556 thousand and $513 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) Average allowance for loan losses of $15.6 million and $14.7 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
		December 31, 2022												December 31, 2021
		Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,451,724				6.33	%		$	23,160			$	1,154,254				4.79	%		$	13,927
Fed funds sold/interest bearing deposits			52,321				3.99	%			526				515,430				0.15	%			193
Investment securities
Taxable investment securities			428,520				2.30	%			2,481				287,915				1.59	%			1,154
Non-taxable investment securities (2)			30,537				4.48	%			345				-				0.00	%			-
Total investment securities			459,057				2.44	%			2,826				287,915				1.59	%			1,154
Total interest-earning assets			1,963,102				5.36	%			26,512				1,957,599				3.10	%			15,274
Noninterest-earning assets:
Cash and due from banks			25,494												35,750
All other assets (3)			84,291												61,196
Total assets		$	2,072,887											$	2,054,545
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	44,344				0.54	%		$	60			$	50,045				0.16	%		$	20
Money market and savings			953,665				1.68	%			4,027				715,540				0.26	%			465
Time			70,409				1.03	%			182				99,550				0.68	%			170
Total interest-bearing deposits			1,068,418				1.59	%			4,269				865,135				0.30	%			655
FHLB and other borrowings			11,772				3.84	%			114				-				0.00	%			-
Subordinated debt			21,792				5.46	%			300				21,689				5.62	%			307
Total interest-bearing liabilities			1,101,982				1.69	%			4,683				886,824				0.43	%			962
Noninterest-bearing liabilities:
Demand deposits			815,222												1,001,568
Accrued expenses and other liabilities			24,637												27,564
Shareholders' equity			131,046												138,589
Total liabilities and
shareholders' equity		$	2,072,887											$	2,054,545
Net interest income and margin (4)							4.41	%		$	21,829								2.90	%		$	14,312
Non-taxable equivalent net interest margin							4.40	%											2.90	%
Cost of deposits			1,883,640				0.90	%			4,269				1,866,703				0.14	%			655
(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 $556 thousand and $864 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) Average allowance for loan losses of $15.6 million and $13.8 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)

		Twelve months ended
		December 31, 2022												December 31, 2021
		Average Balance				Yields or Rates				Interest Income/ Expense				Average Balance				Yields or Rates				Interest Income/ Expense
Assets
Interest earning assets:
Loans (1)		$	1,322,969				5.43	%		$	71,813			$	1,054,292				4.82	%		$	50,823
Fed funds sold/interest bearing deposits			166,665				0.81	%			1,342				358,324				0.13	%			456
Investment securities
Taxable investment securities			453,805				2.03	%			9,230				222,204				1.62	%			3,606
Non-taxable investment securities (2)			18,566				4.42	%			820				-				0.00	%			-
Total investment securities			472,371				2.13	%			10,050				222,204				1.62	%			3,606
Total interest-earning assets			1,962,005				4.24	%			83,205				1,634,820				3.36	%			54,885
Noninterest-earning assets:
Cash and due from banks			37,221												30,455
All other assets (3)			73,763												48,613
Total assets		$	2,072,989											$	1,713,888
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	46,468				0.28	%		$	129			$	38,084				0.17	%		$	66
Money market and savings			867,419				0.77	%			6,656				576,448				0.29	%			1,668
Time including brokered			99,553				0.73	%			728				120,514				0.73	%			884
Total interest-bearing deposits			1,013,440				0.74	%			7,513				735,046				0.36	%			2,618
FHLB and other borrowings			8,515				2.81	%			239				-				0.00	%			-
Subordinated debt			21,698				5.54	%			1,201				21,636				5.72	%			1,238
Total interest-bearing liabilities			1,043,653				0.86	%			8,953				756,682				0.51	%			3,856
Noninterest-bearing liabilities:
Demand deposits			870,793												797,837
Accrued expenses and other liabilities			22,702												25,723
Shareholders' equity			135,841												133,646
Total liabilities and
shareholders' equity		$	2,072,989											$	1,713,888
Net interest income and margin (4)							3.78	%		$	74,252								3.12	%		$	51,029
Non-taxable equivalent net interest margin							3.78	%											3.12	%
Cost of deposits			1,884,233				0.40	%			7,513				1,532,883				0.17	%			2,618
(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 $2.2 million and $2.7 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) Average allowance for loan losses of $14.2 million and $12.9 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)

																						Current				Year over
		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31				Quarter				Year
		2022				2022				2022				2022				2021				Change				Change
Commercial loans		$	700,022			$	566,105			$	558,908			$	481,522			$	517,747			$	133,917			$	182,275
Commercial real estate
Multi-family			169,048				159,384				165,818				141,954				139,646				9,664				29,402
Owner Occupied			139,414				131,649				108,045				109,502				99,728				7,765				39,686
Non-Owner Occupied			303,660				288,478				280,397				258,365				258,507				15,182				45,153
Construction and land			227,869				234,157				209,941				195,388				190,887				(6,288	)			36,982
Residential			13,394				11,991				12,830				13,726				14,484				1,403				(1,090	)
Total real estate loans			853,385				825,659				777,031				718,935				703,252				27,726				150,133
Other loans			815				782				847				1,477				2,345				33				(1,530	)
Total loans		$	1,554,222			$	1,392,546			$	1,336,786			$	1,201,934			$	1,223,344			$	161,676			$	330,878

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

		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,
		2022				2022				2022				2022				2021
Allowance for Loan Losses
Balance, beginning of quarter		$	15,488			$	14,646			$	13,054			$	13,054			$	12,775
Provision for loan losses, quarterly			993				925				1,592				-				3,279
Charge-offs, quarterly			-				(83	)			-				-				(3,000	)
Recoveries, quarterly			-				-				-				-				-
Balance, end of quarter		$	16,481			$	15,488			$	14,646			$	13,054			$	13,054
Nonperforming Assets
Loans accounted for on a non-accrual basis		$	14,245			$	154			$	159			$	3,204			$	3,244
Loans with principal or interest contractually past
due 90 days or more and still accruing interest			-				-				-				-				-
Nonperforming loans			14,245				154				159				3,204				3,244
Other real estate owned			-				-				-				-				-
Nonperforming assets		$	14,245			$	154			$	159			$	3,204			$	3,244
Nonperforming Loans by Type:
Commercial		$	150			$	154			$	159			$	441			$	448
Commercial Real Estate Loans			-				-				-				2,763				2,796
Construction and Land			14,095				-				-				-				-
Total Nonperforming loans		$	14,245			$	154			$	159			$	3,204			$	3,244
Asset Quality Ratios
Allowance for loan losses (ALLL) to total loans			1.06	%			1.11	%			1.09	%			1.08	%			1.07	%
ALLL to nonperforming loans			115.70	%			10057.14	%			9211.32	%			407.43	%			402.40	%
Nonperforming assets to total assets			0.67	%			0.01	%			0.01	%			0.15	%			0.15	%
Nonperforming loans to total loans			0.92	%			0.01	%			0.01	%			0.27	%			0.27	%
Net quarterly charge-offs to total loans			0.00	%			0.01	%			0.00	%			0.00	%			0.25	%

SOURCE: Avidbank Holdings, Inc.

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https://www.accesswire.com/737167/Avidbank-Holdings-Inc-Announces-Net-Income-of-84-Million-for-the-Fourth-Quarter-of-2022

FAQ

What was Avidbank's net income for Q4 2022?

Avidbank reported a net income of $8.4 million for Q4 2022.

How much did Avidbank's loans increase in Q4 2022?

Loans increased by $162 million, or 46% annualized, in Q4 2022.

What is Avidbank's diluted earnings per share for the full year 2022?

Avidbank's diluted earnings per share for the full year 2022 was $3.55.

What was the return on average assets for Avidbank in Q4 2022?

The return on average assets improved to 1.61% in Q4 2022.

What is the current loan-to-deposit ratio for Avidbank?

The loan-to-deposit ratio for Avidbank was 77% in Q4 2022.