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 total
assets of $483 million at the end of the third quarter of 2013, compared
to $415 million one year earlier.
3rd Quarter 2013 Financial Highlights
-
Net income was $1,873,000 for the first nine months of 2013, compared
to $2,080,000 for the first nine months of 2012.
-
Diluted earnings per common share were $0.52 for the first nine months
of 2013, compared to $0.65 for the first nine months of 2012.
-
Net income was $436,000 for the third quarter of 2013, compared to
$656,000 for the third quarter of 2012.
-
Diluted earnings per common share were $0.09 for the third quarter of
2013, compared to $0.20 for the third quarter of 2012.
-
Total assets grew by 16% over the past twelve months, ending the third
quarter at $483 million.
-
Total loans outstanding grew by 5%, ending the third quarter at $245
million.
-
Total deposits grew by 16% over the past twelve months, ending the
third quarter at $434 million and non-interest bearing deposits as a
percent of total deposits grew to 37% at September 2013 compared to
32% at September 2012.
-
Other assets increased by 66% from twelve months ago to $19 million as
a result of our investment in bank owned life insurance policies on
our management team of which the Bank is the sole beneficiary.
-
The bank continues to be well capitalized with a Tier 1 Leverage Ratio
of 10.2% and a Total Risk Based Capital Ratio of 14.0%.
Mark D. Mordell, Chairman and Chief Executive Officer, stated, "One of
our main objectives for 2013 has been to grow our market footprint and
our franchise value, and we are pleased that in the third quarter we
recorded the highest asset level since the Bank was founded. A
continuing high level of payoffs due to the robust economy has caused
our loans outstanding to contract slightly in the quarter. We look
forward to the additional results that will be generated from the
investments we have made in our lending infra-structure in Corporate
Banking, Corporate Finance and Commercial Real Estate."
For the three months ended September 30, 2013, net interest income
before provision for loan losses was $3.8 million, an increase of more
than $90,000 or 2% compared to the third quarter of 2012. The growth in
net interest income was primarily the result of a reduction in interest
rates paid on deposits. Average earning assets were $429 million in the
third quarter of 2013, an 11% increase over the third quarter of the
prior year. The net interest margin was 3.60% for the third quarter,
compared to 3.87% for the third quarter of 2012. The decline in net
interest margin was primarily caused by the decline in loan yields due
to the current interest rate environment and a change in the mix of
earning assets whereby the growth in lower yielding fed funds comprised
a greater percentage of total earning assets. This was partially offset
by continued declines in our cost of funds. For the three and nine
months ended September 30, 2013 the Bank’s average cost of interest
bearing liabilities was 0.42% and 0.44%, respectively, compared to 0.72%
and 0.80% for the comparative 2012 periods. A loan loss provision of
$245,000 was made in the third quarter of 2013 while no loan loss
provision was made in the third quarter of 2012.
For the first nine months of 2013 net interest income before provision
was $11.5 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 $54 million or 15% over 2012. The net interest margin
decreased from 4.23% in 2012 to 3.79% in 2013, primarily as a result of
a drop in loan yields partially offset by a decrease in the Bank's cost
of funds.
A loan loss provision of $245,000 has been recorded to date in 2013,
while a $100,000 loan loss provision was recognized in the first nine
months of 2012. We have experienced net recoveries of $29,000 for the
first nine months of 2013 compared to net charge-offs of $186,000 for
the first nine months of 2012. Non-accrual loans totaled $685,000 on
September 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 coming quarters," stated Mr. Mordell.
Non-interest expense grew by $435,000 in the third quarter of 2013 to
$3.1 million compared to $2.7 million for the third 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 $1.4 million for the first nine months of
2013 to $9.3 million compared to $7.8 million for the first nine months
of 2012. This growth is due to the previously mentioned investments in
loan production personnel and facilities. The number of full time
equivalent employees increased to 52 in September 2013 compared to 47 in
September 2012.
Non-interest income excluding gains on sale of investment securities was
$174,000 in the third quarter of 2013, an increase of $49,000 or 39%
over the third quarter of 2012.
For the first nine months of 2013, non-interest income excluding gains
on sales of securities was $458,000, an increase of $113,000 or 33% 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)
|
|
|
Assets |
| | 9/30/2013 | |
| | 12/31/2012 | |
| | 9/30/2012 | |
|
Cash and due from banks
| |
$
|
22,113
| | |
$
|
21,493
| | |
$
|
13,057
| |
|
Fed funds sold
| |
|
134,965
|
|
|
|
85,510
|
|
|
|
97,250
|
|
|
Total cash and cash equivalents
| | |
157,078
| | | |
107,003
| | | |
110,307
| |
| | | | | |
|
|
Investment securities - available for sale
| | |
66,147
| | | |
55,343
| | | |
63,487
| |
| | | | | |
|
|
Loans, net of deferred loan fees
| | |
244,501
| | | |
247,269
| | | |
233,352
| |
|
Allowance for loan losses
| |
|
(4,754
|
)
|
|
|
(4,480
|
)
|
|
|
(4,290
|
)
|
|
Loans, net of allowance for loan losses
| | |
239,747
| | | |
242,789
| | | |
229,062
| |
| | | | | |
|
|
Premises and equipment, net
| | |
1,171
| | | |
1,291
| | | |
1,108
| |
|
Accrued interest receivable & other assets
| |
|
19,090
|
|
|
|
9,296
|
|
|
|
11,495
|
|
|
Total assets
| |
$
|
483,234
|
|
|
$
|
415,721
|
|
|
$
|
415,459
|
|
| | | | | |
|
Liabilities | | | | | | |
|
Non-interest-bearing demand deposits
| |
$
|
161,517
| | |
$
|
105,518
| | |
$
|
119,180
| |
|
Interest bearing transaction accounts
| | |
15,226
| | | |
17,293
| | | |
13,760
| |
|
Money market and savings accounts
| | |
198,731
| | | |
185,664
| | | |
175,795
| |
|
Time deposits
| |
|
58,081
|
|
|
|
66,520
|
|
|
|
65,115
|
|
|
Total deposits
| | |
433,555
| | | |
374,994
| | | |
373,849
| |
| | | | | |
|
|
Other liabilities
| |
|
2,311
|
|
|
|
2,864
|
|
|
|
4,254
|
|
|
Total liabilities
| | |
435,867
| | | |
377,858
| | | |
378,103
| |
| | | | | |
|
Shareholders' equity | | | | | | |
|
Preferred stock
| | |
-
| | | |
5,952
| | | |
5,940
| |
|
Common stock
| | |
44,417
| | | |
29,556
| | | |
29,502
| |
|
Retained earnings
| | |
2,834
| | | |
1,171
| | | |
592
| |
|
Accumulated other comprehensive income
| |
|
116
|
|
|
|
1,184
|
|
|
|
1,322
|
|
|
Total shareholders' equity
| | |
47,367
| | | |
37,863
| | | |
37,356
| |
| | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
483,234
|
|
|
$
|
415,721
|
|
|
$
|
415,459
|
|
| | | | | |
|
| Bank Capital ratios
| | | | | | |
|
Tier 1 leverage ratio
| | |
10.22
|
%
| | |
8.85
|
%
| | |
8.84
|
%
|
|
Tier 1 risk-based capital ratio
| | |
12.76
|
%
| | |
10.72
|
%
| | |
10.76
|
%
|
|
Total risk-based capital ratio
| | |
14.01
|
%
| | |
11.98
|
%
| | |
12.01
|
%
|
|
Book value per common share
| |
$
|
11.06
| | |
$
|
12.20
| | |
$
|
12.02
| |
|
Total shares outstanding
| | |
4,281,482
| | | |
2,614,655
| | | |
2,613,655
| |
| | | | | | | | | | | |
|
|
| |
| |
| |
| | |
| Avidbank Holdings, Inc. |
|
Condensed Statements of Operations (Unaudited) ($000, except per
share amounts)
|
| | | | | | | |
|
|
Quarter Ended
| |
Year to Date
|
| | 9/30/2013 | | | | 9/30/2012 | | | | 9/30/2013 | | | | 9/30/2012 | |
|
Interest and fees on loans
| |
$
|
3,630
| | |
$
|
3,602
| | |
$
|
11,014
| | |
$
|
10,949
| |
|
Interest on investment securities
| | |
393
| | | |
518
| | | |
1,196
| | | |
1,574
| |
|
Other interest income
| |
|
72
|
|
|
|
55
|
|
|
|
184
|
|
|
|
92
|
|
|
Total interest income
| | |
4,096
| | | |
4,175
| | | |
12,393
| | | |
12,615
| |
|
Interest expense
| |
|
280
|
|
|
|
449
|
|
|
|
887
|
|
|
|
1,451
|
|
|
Net interest income
| | |
3,816
| | | |
3,726
| | | |
11,506
| | | |
11,164
| |
| | | | | | | | |
|
|
Provision for loan losses
| |
|
245
|
|
|
|
-
|
|
|
|
245
|
|
|
|
100
|
|
Net interest income after provision for loan losses
| | |
3,571
| | | |
3,726
| | | |
11,261
| | | |
11,064
| |
| | | | | | | | |
|
|
Service charges, fees and other income
| | |
174
| | | |
125
| | | |
458
| | | |
345
| |
|
Gain on sale of investment securities
| |
|
67
|
|
|
|
-
|
|
|
|
748
|
|
|
|
-
|
|
|
Total non-interest income
| | |
241
| | | |
125
| | | |
1,206
| | | |
345
| |
| | | | | | | | |
|
|
Compensation and benefit expenses
| | |
1,885
| | | |
1,572
| | | |
5,525
| | | |
4,625
| |
|
Occupancy and equipment expenses
| | |
537
| | | |
481
| | | |
1,688
| | | |
1,347
| |
|
Other operating expenses
| |
|
666
|
|
|
|
599
|
|
|
|
2,043
|
|
|
|
1,860
|
|
|
Total non-interest expense
| | |
3,088
| | | |
2,653
| | | |
9,257
| | | |
7,832
| |
| | | | | | | | |
|
|
Income before income taxes
| | |
723
| | | |
1,198
| | | |
3,210
| | | |
3,578
| |
|
Provision for income taxes
| |
|
287
|
|
|
|
542
|
|
|
|
1,337
|
|
|
|
1,498
|
|
|
Net income
| |
$
|
436
|
|
|
$
|
656
|
|
|
$
|
1,873
|
|
|
$
|
2,080
|
|
| | | | | | | | |
|
|
Preferred dividends & warrant amortization
| |
|
38
|
|
|
|
84
|
|
|
|
206
|
|
|
|
252
|
|
Net income applicable to common shareholders
| |
$
|
398
|
|
|
$
|
572
|
|
|
$
|
1,667
|
|
|
$
|
1,828
|
|
| | | | | | | | |
|
| | | | | | | | |
|
|
Basic earnings per share
| |
$
|
0.09
| | |
$
|
0.22
| | |
$
|
0.52
| | |
$
|
0.70
| |
|
Diluted earnings per share
| |
$
|
0.09
| | |
$
|
0.22
| | |
$
|
0.51
| | |
$
|
0.70
| |
| | | | | | | | |
|
|
Average shares outstanding
| | |
4,274,420
| | | |
2,613,655
| | | |
3,214,230
| | | |
2,609,884
| |
|
Average fully diluted shares
| | |
4,315,848
| | | |
2,624,655
| | | |
3,257,599
| | | |
2,620,884
| |
| | | | | | | | |
|
|
Annualized returns:
| | | | | | | | | |
|
Return on average assets
| | |
0.38
|
%
| | |
0.64
|
%
| | |
0.58
|
%
| | |
0.74
|
%
|
|
Return on average common equity
| | |
4.13
|
%
| | |
7.86
|
%
| | |
6.57
|
%
| | |
8.31
|
%
|
| | | | | | | | |
|
|
Net interest margin
| | |
3.60
|
%
| | |
3.87
|
%
| | |
3.79
|
%
| | |
4.23
|
%
|
|
Cost of funds
| | |
0.28
|
%
| | |
0.49
|
%
| | |
0.31
|
%
| | |
0.58
|
%
|
|
Efficiency ratio
| | |
76
|
%
| | |
69
|
%
| | |
73
|
%
| | |
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.