PALO ALTO, Calif.--(BUSINESS WIRE)--
Avidbank Holdings, Inc. (“the Company”) (OTCBB: AVBH), sole owner of
Avidbank (“the Bank”), an independent full-service commercial bank
serving businesses and consumers in Northern California, announced net
income of $923,000 for the second quarter of 2013 compared to $653,000
during the same period in 2012.
2nd Quarter 2013 Financial Highlights
-
Net income was $1,437,000 for the first six months of 2013, compared
to $1,424,000 for the first six months of 2012
-
Diluted earnings per common share were $0.47 for the first six months
of 2013, compared to $0.48 for the first six months of 2012
-
Net income was $923,000 for the second quarter of 2013. Excluding
gains from the sale of investment securities net income from core
operations was $528,000 for the quarter.
-
Diluted earnings per common share were $0.30 for the quarter, compared
to $0.22 for the second quarter of 2012
-
Total assets grew annually by 11% to $433 million
-
Total loans outstanding grew by 4% to $248 million
-
Total deposits grew by 8% to $377 million
-
The Company continues to be well capitalized with a Tier 1 Leverage
Ratio of 12.7% and a Total Risk Based Capital Ratio of 17.2%
Mark D. Mordell, Chairman and Chief Executive Officer, stated, “We are
pleased that net income for the second quarter of 2013 increased by 41%
compared to the second quarter of 2012 as gains from investment security
sales more than offset an increase in expenses from expanding our
business development and loan generation capacity. The Bank’s loans,
deposits and total assets all showed growth over the second quarter of
the previous year. Loan growth was 4% in spite of some large
construction loan payoffs. Our loan production offices in San Jose and
Redwood City are starting to gain traction in the marketplace and our
capacity for generating earning assets is continually improving. All of
our capital ratios have dramatically improved with the $16 million
capital raise we recently completed and announced in June.”
For the three months ended June 30, 2013, net interest income before
provision for loan losses was $3.8 million, an increase of more than
$91,000 or 2% compared to the second quarter of 2012. The growth in net
interest income was the result of growth in loans outstanding. Average
earning assets were $402 million in the second quarter of 2013, a 14%
increase over the second quarter of the prior year. Net interest margin
was 3.82% for the second quarter, compared to 4.34% for the second
quarter of 2012. No loan loss provision was made in the second quarter
of 2013 while a $100,000 loan loss provision was made in the second
quarter of 2012.
For the first six months of 2013 net interest income before provision
was $7.7 million, a $0.3 million increase over the prior year. The
growth in net interest income was the result of growth in earning assets
partially offset by a decrease in net interest margin. Average earning
assets grew by $59 million or 17% over 2012. Net interest margin
decreased from 4.41% in 2012 to 3.88% in 2013, primarily as a result of
a drop in loan yields partially offset by a decrease in the Bank’s cost
of funds. No provision for loan losses has been recorded to date in
2013, while a $100,000 loan loss provision was recognized in the first
half of 2012. We have experienced net recoveries of $285,000 for the
first half of 2013 compared to net charge-offs of $14,000 for the first
six months of 2012. Non-accrual loans totaled $699,000 on June 30, 2013
compared to $975,000 for the end of the previous year. “Our high
underwriting standards continue to serve us well as we prepare for
growth in the second half of the year,” stated Mr. Mordell.
Non-interest expense grew by $433,000 in the second quarter of 2013 to
$3.1 million compared to $2.6 million for the second quarter of 2012.
This growth is due to investments in loan production personnel and
facilities as we continue to expand our footprint and grow our loan
portfolio.
Non-interest expense grew by $990,000 for the first six months of 2013
to $6.2 million compared to $5.2 million for the first six months of
2012. This growth is due to the previously mentioned investments in loan
production personnel and facilities.
Non-interest income was $840,000 in the second quarter of 2013, an
increase of $727,000 or 644% over the second quarter of 2012.
Non-interest income in the second quarter of 2013 reflected $681,000 of
gains from investment securities sales.
For the first six months of 2013, non-interest income, excluding gains
on sales of securities was $284,000, an increase of more than $64,000 or
29% over the comparable period in 2012.
About Avidbank
Avidbank Holdings, Inc., headquartered in Palo Alto, California
offers innovative financial solutions and services. We specialize in the
following markets: commercial & industrial, corporate finance,
asset-based lending, real estate construction and commercial real estate
lending, and real estate bridge financing. Avidbank advances the success
of our clients by providing them with financial opportunities and
serving them as we wish to be served – with mutual effort, ingenuity and
trust – creating long-term banking relationships.
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. These statements are based on current expectations,
estimates and projections about Avidbank’s business based, in part, on
assumptions made by management. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions that
are difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, including those
described above and the following: Avidbank’s timely implementation of
new products and services, technological changes, changes in consumer
spending and savings habits and other risks discussed from time to time
in Avidbank’s reports and filings with banking regulatory agencies. In
addition, such statements could be affected by general industry and
market conditions and growth rates, and general domestic and
international economic conditions. Such forward-looking statements speak
only as of the date on which they are made, and Avidbank does not
undertake any obligation to update any forward-looking statement to
reflect events or circumstances after the date of this release.
|
|
| Avidbank Holdings, Inc. | |
|
Balance Sheet ($000, except per share amounts)
| |
|
| | |
| | |
| | |
| |
Unaudited
| | |
Audited
| | |
Unaudited
| |
Assets | | | 6/30/13 | | | | 12/31/12 | | | | 6/30/12 | |
|
Cash and due from banks
| |
$
|
13,718
| | |
$
|
21,493
| | |
$
|
11,870
| |
|
Fed funds sold
| |
|
115,575
|
| |
|
85,510
|
| |
|
57,171
|
|
|
Total cash and cash equivalents
| | |
129,293
| | | |
107,003
| | | |
69,041
| |
| | | | | | | | |
|
|
Investment securities - available for sale
| | |
50,541
| | | |
55,343
| | | |
74,114
| |
| | | | | | | | |
|
|
Loans, net of deferred loan fees
| | |
247,964
| | | |
247,269
| | | |
237,341
| |
|
Allowance for loan losses
| |
|
(4,764
|
)
| |
|
(4,480
|
)
| |
|
(4,462
|
)
|
|
Loans, net of allowance for loan losses
| | |
243,200
| | | |
242,789
| | | |
232,879
| |
| | | | | | | | |
|
|
Premises and equipment, net
| | |
1,269
| | | |
1,291
| | | |
708
| |
|
Accrued interest receivable & other assets
| |
|
8,212
|
| |
|
9,296
|
| |
|
11,222
|
|
|
Total assets
| |
$
|
432,515
|
| |
$
|
415,721
|
| |
$
|
387,965
|
|
| | | | | | | | |
|
Liabilities | | | | | | | | | |
|
Non-interest-bearing demand deposits
| |
$
|
115,115
| | |
$
|
105,518
| | |
$
|
109,522
| |
|
Interest bearing transaction accounts
| | |
16,177
| | | |
17,293
| | | |
14,549
| |
|
Money market and savings accounts
| | |
186,885
| | | |
185,664
| | | |
158,042
| |
|
Time deposits
| |
|
58,901
|
| |
|
66,520
|
| |
|
67,083
|
|
|
Total deposits
| | |
377,078
| | | |
374,994
| | | |
349,195
| |
| | | | | | | | |
|
|
Other liabilities
| |
|
2,332
|
| |
|
2,864
|
| |
|
3,019
|
|
|
Total liabilities
| | |
379,410
| | | |
377,858
| | | |
352,215
| |
| | | | | | | | |
|
Shareholders' equity | | | | | | | | | |
|
Preferred stock
| | |
5,974
| | | |
5,952
| | | |
5,929
| |
|
Common stock
| | |
44,579
| | | |
29,556
| | | |
29,448
| |
|
Retained earnings
| | |
2,436
| | | |
1,171
| | | |
23
| |
|
Accumulated other comprehensive income
| |
|
116
|
| |
|
1,184
|
| |
|
350
|
|
|
Total shareholders' equity
| | |
53,105
| | | |
37,863
| | | |
35,750
| |
| | | | | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
432,515
|
| |
$
|
415,721
|
| |
$
|
387,965
|
|
| | | | | | | | |
|
| | | | | | | | |
|
|
Tier 1 leverage ratio
| | |
12.66
|
%
| | |
8.88
|
%
| | |
9.72
|
%
|
|
Tier 1 risk-based capital ratio
| | |
15.92
|
%
| | |
10.78
|
%
| | |
10.84
|
%
|
|
Total risk-based capital ratio
| | |
17.17
|
%
| | |
12.03
|
%
| | |
12.09
|
%
|
|
Book value per common share
| |
$
|
11.03
| | |
$
|
12.20
| | |
$
|
11.41
| |
|
Total shares outstanding
| | |
4,274,014
| | | |
2,614,655
| | | |
2,613,655
| |
| | | | | | | | | | | |
|
|
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| Avidbank Holdings, Inc. |
|
Condensed Statements of Operations
|
(Unaudited) ($000, except per share amounts)
|
|
|
|
|
Quarter Ended
|
|
|
Year to Date
|
| | | 6/30/13 | |
| | 6/30/12 | | | | 6/30/13 | |
| | 6/30/12 | |
|
Interest and fees on loans
| |
$
|
3,661
| | |
$
|
3,692
| | |
$
|
7,383
| | |
$
|
7,347
| |
|
Interest on investment securities
| | |
399
| | | |
528
| | | |
803
| | | |
1,056
| |
|
Other interest income
| |
|
57
|
| |
|
17
|
| |
|
111
|
| |
|
37
|
|
|
Total interest income
| | |
4,117
| | | |
4,237
| | | |
8,297
| | | |
8,440
| |
|
Interest expense
| |
|
289
|
| |
|
500
|
| |
|
607
|
| |
|
1,002
|
|
|
Net interest income
| | |
3,828
| | | |
3,736
| | | |
7,690
| | | |
7,438
| |
| | | | | | | | |
|
|
Provision for loan losses
| |
|
-
|
| |
|
100
|
| |
|
-
|
| |
|
100
|
|
Net interest income after provision for loan losses
| | |
3,828
| | | |
3,636
| | | |
7,690
| | | |
7,338
| |
| | | | | | | | |
|
|
Service charges, fees and other income
| | |
159
| | | |
113
| | | |
284
| | | |
220
| |
|
Gain on sale of investment securities
| |
|
681
|
| |
|
-
|
| |
|
681
|
| |
|
-
|
|
|
Total non-interest income
| | |
840
| | | |
113
| | | |
965
| | | |
220
| |
| | | | | | | | |
|
|
Compensation and benefit expenses
| | |
1,802
| | | |
1,559
| | | |
3,640
| | | |
3,052
| |
|
Occupancy and equipment expenses
| | |
441
| | | |
296
| | | |
1,413
| | | |
1,088
| |
|
Other operating expenses
| |
|
829
|
| |
|
785
|
| |
|
1,116
|
| |
|
1,038
|
|
|
Total non-interest expense
| | |
3,072
| | | |
2,639
| | | |
6,168
| | | |
5,178
| |
| | | | | | | | |
|
|
Income before income taxes
| | |
1,596
| | | |
1,110
| | | |
2,487
| | | |
2,380
| |
|
Provision for income taxes
| |
|
673
|
| |
|
457
|
| | |
1,050
|
| |
|
956
|
|
|
Net income
| |
$
|
923
|
| |
$
|
653
|
| |
$
|
1,437
|
| |
$
|
1,424
|
|
| | | | | | | | |
|
|
Preferred dividends & warrant amortization
| |
|
84
|
| |
|
84
|
| |
|
168
|
| |
|
168
|
|
Net income applicable to common
shareholders
| |
$
|
839
|
| |
$
|
569
|
| |
$
|
1,269
|
| |
$
|
1,256
|
|
| | | | | | | | |
|
| | | | | | | | |
|
|
Basic earnings per share
| |
$
|
0.31
| | |
$
|
0.22
| | |
$
|
0.47
| | |
$
|
0.48
| |
|
Diluted earnings per share
| |
$
|
0.30
| | |
$
|
0.22
| | |
$
|
0.47
| | |
$
|
0.48
| |
| | | | | | | | |
|
|
Average shares outstanding
| | |
2,733,948
| | | |
2,612,127
| | | |
2,675,349
| | | |
2,607,977
| |
|
Average fully diluted shares
| | |
2,773,900
| | | |
2,623,127
| | | |
2,715,301
| | | |
2,618,977
| |
| | | | | | | | |
|
|
Annualized returns:
| | | | | | | | | |
|
Return on average assets
| | |
0.88
|
%
| | |
0.70
|
%
| | |
0.69
|
%
| | |
0.79
|
%
|
|
Return on average common equity
| | |
9.87
|
%
| | |
8.81
|
%
| | |
8.25
|
%
| | |
9.73
|
%
|
| | | | | | | | |
|
|
Net interest margin
| | |
3.82
|
%
| | |
4.34
|
%
| | |
3.88
|
%
| | |
4.41
|
%
|
|
Cost of funds
| | |
0.31
|
%
| | |
0.62
|
%
| | |
0.33
|
%
| | |
0.63
|
%
|
|
Efficiency ratio
| | |
66
|
%
| | |
69
|
%
| | |
71
|
%
| | |
68
|
%
|
| | | | | | | | | | | | | | | |
|
Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Executive
Vice President and Chief Financial Officer
sleen@avidbank.com
avidbank.com
Source: Avidbank Holdings, Inc.