PALO ALTO, Calif.--(BUSINESS WIRE)--
Avidbank Holdings, Inc. ("the Company") (OTCBB:AVBH), a bank holding
company and the parent company of Avidbank ("the Bank"), an independent
full-service commercial bank serving businesses and consumers in
Northern California, announced unaudited consolidated net income of
$996,000 for the fourth quarter of 2014 compared to $635,000 for the
same period in 2013.
Full Year and Fourth Quarter 2014 Financial
Highlights
-
Net income was $2,744,000 in 2014, compared to $2,508,000 in 2013.
Results for the 2013 period included $748,000 in gains from the sale
of investment securities compared to $261,000 in the 2014 period.
-
Diluted earnings per common share were $0.62 for the year ended 2014,
compared to $0.64 in 2013. Diluted earnings per common share were
$0.22 for the fourth quarter of 2014, compared to $0.15 for the fourth
quarter of 2013.
-
Net income was $996,000 for the fourth quarter of 2014, compared to
$635,000 for the fourth quarter of 2013. Results for the fourth
quarter of 2013 included no gains from the sale of investment
securities compared to $239,000 in the fourth quarter of 2014.
-
Total assets decreased by 6% over the past twelve months, ending the
fourth quarter at $469 million.
-
Total loans outstanding grew by 33% in 2014, ending the fourth quarter
at $342 million.
-
Total deposits decreased by 14% over the past twelve months, ending
the fourth quarter at $386 million.
-
The Bank continues to be well capitalized with a Tier 1 Leverage Ratio
of 10.5% and a Total Risk Based Capital Ratio of 12.2%.
Mark D. Mordell, Chairman and Chief Executive Officer, stated, "The
Bank's efforts to grow the loan portfolio by increasing loan production
staff and facilities were substantially achieved in 2014. Loans
outstanding increased more than $84 million during the year, a 33% rate
of growth. These results confirm our progress as we focus on our plan of
sustained and prudent growth in our loan portfolio. Net income for 2014
grew by 9% over 2013 primarily due to higher loans outstanding and the
need for a smaller loan loss provision. We experienced solid growth in
all four of our lending divisions in 2014. Our net interest margin
improved to 4.20% in the fourth quarter as we have placed a substantial
amount of our liquid funds into higher yielding loans."
"The Bank's total deposits decreased by $64 million in 2014 as the
runoff of some large transactional and temporary accounts outweighed our
increase in relationship deposits. Core deposits make up over 94% of
total deposits and our demand and transaction deposits have grown to 42%
of total deposits as of the end of 2014", noted Mr. Mordell. "We have
successfully deployed our considerable level of liquid funds into loans.
Our high level of capital and the high quality of our loan portfolio
provide us with ample capacity for growth. We will be opening up a loan
production office in San Francisco by the end of the first quarter of
2015."
Results for the year ended December 31, 2014
Net interest income before provision for loan losses was $16.4 million
in 2014, an increase of $1,172,000 or 7.7% over the prior year. Higher
outstanding loan balances and reductions in the rates paid on deposits
were partially offset by lower loan yields. Average earning assets were
$437 million in 2014, a 4% increase over the prior year. Net interest
margin was 3.79% for 2014 year to date compared to 3.63% for 2013. The
increase in net interest margin was primarily caused by growth in
average loans and a decrease in Fed funds sold partially offset by a
decline in loan yields due to the current interest rate environment. A
loan loss provision of $39,000 was recorded in 2014 and a $245,000
provision was made in 2013. We have experienced recoveries net of
charge-offs of $46,000 in 2014 compared to net recoveries of $63,000 in
2013.
Non-interest income, excluding gains on sales of securities, was
$1,307,000 in 2014, an increase of $591,000 or 83% over 2013. The
increase in non-interest income was due to an increase in service
charges and other fee generation activities as well as an increase in
earnings on bank owned life insurance. There were $261,000 of gains on
sales of securities in 2014 and $748,000 of gains on securities sales in
2013.
Non-interest expense grew by $990,000 or 8% in 2014 to $13.4 million
compared to $12.4 million in 2013. This growth was due to investments in
loan production personnel and facilities as we continue to expand our
footprint and grow our loan portfolio.
Results for the quarter ended December 31, 2014
For the three months ended December 31, 2014, net interest income before
provision for loan losses was $4.5 million, an increase of $785,000 or
21% compared to the fourth quarter of 2013. The increase was primarily
the result of higher loans outstanding. Average earning assets were $425
million in the fourth quarter of 2014, a 6% decrease over the fourth
quarter of the prior year. Earning assets decreased as loan growth was
more than offset by lower Fed funds. Net interest margin was 4.20% for
the fourth quarter of 2014, compared to 3.30% for the fourth quarter of
2013. Net interest margin increased due to growth in loans for the
quarter. A loan loss provision of $39,000 was taken in the fourth
quarter of 2014 and no loan loss provision was taken in the fourth
quarter of 2013.
Non-interest income, excluding gains on sales of securities, was
$365,000 in the fourth quarter of 2014, an increase of $107,000 or 41%
over the fourth quarter of 2013. The increase was due to increases in
service charges and other fee generation activities. There were $239,000
of gains on sales of securities in the fourth quarter of 2014 and no
gains on securities sales in the fourth quarter of 2013.
Non-interest expense grew by $360,000 in the fourth quarter of 2014 to
$3.5 million compared to $3.1 million for the fourth quarter of 2013.
This growth was due to the investments in loan production personnel
mentioned previously. The company's full time equivalent employees at
December 31, 2014 and 2013 were 61 and 51, respectively.
Balance Sheet
Total assets dropped to $469 million as of December 31, 2014, compared
to $484 million at September 30, 2014 and $501 million on the same date
one year ago. The decrease in total assets of $15 million, or 3%, from
September 30, 2014 consisted of a decrease in Fed funds due to a
reduction in transactional and temporary deposits.
The Company reported total gross loans outstanding at December 31, 2014
of $342 million, which represented an increase of $47 million, or 16%,
over $295 million at September 30, 2014, and an increase of $85 million,
or 33%, over $257 million at December 31, 2013. The increase in total
gross loans from September 30, 2014 was primarily attributable to growth
in construction and commercial real estate loans. We also saw growth in
asset based and commercial loans. The increase in loans from December
31, 2013 was primarily attributable to growth in commercial real estate,
construction and asset based loans. Non-accrual loans totaled $5.2
million or 1.5% of total loans on December 31, 2014 compared to $2.0
million or 0.8% of total loans for the previous year-end. "Our high
credit standards have resulted in an absence of net charge-offs for both
the 2014 and 2013 years. Our increase in nonaccrual loans was isolated
to one client," observed Mr. Mordell.
The Company’s total deposits were $386 million as of December 31, 2014,
which represented a decrease of $42 million, or 10%, compared to $428
million at September 30, 2014 and a decrease of $64 million, or 14%,
compared to $450 million at December 31, 2013. The decrease in deposits
from September 30, 2014 was primarily attributable to a decrease in
money market and interest checking accounts, while the decrease from
December 31, 2013 was primarily attributable to a decrease in money
market and checking accounts and certificates of deposit over $100,000.
Demand and transaction deposits represented 41.9% of total deposits at
December 31, 2014, compared to 43.7% at September 30, 2014 and 39.4% for
the same period one year ago. Core deposits represented 94.2% of total
deposits at December 31, 2014, compared to 95.1% at September 30, 2014
and 93.3% at December 31, 2013.
During the fourth quarter of 2014, short term Federal Home Loan Bank
advances totaling $25 million and excess liquidity of $17 million were
utilized to facilitate loan originations, net of repayments, of $42
million. These borrowings bear interest at an annualized rate of 0.25%
to 0.26% and mature on a weekly basis.
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. |
Consolidated Balance Sheets |
($000, except share, per share amounts and ratios) (Unaudited)
|
|
| |
| |
| |
| |
| |
Assets | | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 |
|
Cash and due from banks
| | $17,986 | | $20,499 | | $18,049 | | $15,427 | | $16,905 |
|
Fed funds sold
| |
8,150
|
|
68,675
|
|
100,445
|
|
127,785
|
|
151,940
|
|
Total cash and cash equivalents
| |
26,136
| |
89,174
| |
118,494
| |
143,212
| |
168,845
|
| | | | | | | | | |
|
|
Investment securities - available for sale
| |
79,501
| |
78,710
| |
65,282
| |
58,397
| |
58,983
|
| | | | | | | | | |
|
|
Loans, net of deferred loan fees
| |
341,966
| |
295,410
| |
277,822
| |
254,375
| |
257,434
|
|
Allowance for loan losses
| |
(4,873)
|
|
(4,826)
|
|
(4,809)
|
|
(4,795)
|
|
(4,788)
|
|
Loans, net of allowance for loan losses
| |
337,093
| |
290,584
| |
273,013
| |
249,580
| |
252,646
|
| | | | | | | | | |
|
|
Bank owned life insurance
| |
11,944
| |
11,857
| |
11,783
| |
11,694
| |
11,607
|
|
Premises and equipment, net
| |
1,024
| |
1,108
| |
1,210
| |
1,287
| |
1,175
|
|
Accrued interest receivable & other assets
| |
13,343
|
|
13,006
|
|
12,983
|
|
8,950
|
|
7,420
|
|
Total assets
| | $469,041 |
| $484,439 |
| $482,765 |
| $473,120 |
| $500,676 |
| | | | | | | | | |
|
Liabilities | | | | | | | | | | |
|
Non-interest-bearing demand deposits
| | $140,429 | | $166,733 | | $173,394 | | $151,538 | | $158,364 |
|
Interest bearing transaction accounts
| |
21,170
| |
20,415
| |
15,523
| |
18,041
| |
18,991
|
|
Money market and savings accounts
| |
185,778
| |
201,189
| |
194,892
| |
205,237
| |
222,324
|
|
Time deposits
| |
38,544
|
|
39,453
|
|
42,777
|
|
47,250
|
|
50,625
|
|
Total deposits
| |
385,921
| |
427,790
| |
426,586
| |
422,066
| |
450,304
|
| | | | | | | | | |
|
|
FHLB Borrowing
| |
25,000
| |
-
| |
-
| |
-
| |
-
|
|
Other liabilities
| |
6,573
|
|
6,273
|
|
6,262
|
|
2,209
|
|
2,340
|
|
Total liabilities
| |
417,494
| |
434,063
| |
432,848
| |
424,275
| |
452,644
|
| | | | | | | | | |
|
Shareholders' equity | | | | | | | | | | |
|
Common stock/additional paid-in capital
| |
45,206
| |
45,080
| |
44,985
| |
44,774
| |
44,531
|
|
Retained earnings
| |
6,162
| |
5,189
| |
4,574
| |
3,877
| |
3,469
|
|
Accumulated other comprehensive income
| |
179
|
|
107
|
|
358
|
|
194
|
|
32
|
|
Total shareholders' equity
| |
51,547
| |
50,376
| |
49,917
| |
48,845
| |
48,032
|
| | | | | | | | | |
|
|
Total liabilities and shareholders' equity
| | $469,041 |
| $484,439 |
| $482,765 |
| $473,120 |
| $500,676 |
| | | | | | | | | |
|
Bank Capital ratios | | | | | | | | | | |
|
Tier 1 leverage ratio
| |
10.53%
| |
10.17%
| |
10.36%
| |
9.72%
| |
9.66%
|
|
Tier 1 risk-based capital ratio
| |
11.03%
| |
11.60%
| |
11.89%
| |
12.89%
| |
12.44%
|
|
Total risk-based capital ratio
| |
12.19%
| |
12.82%
| |
13.14%
| |
14.14%
| |
13.69%
|
| | | | | | | | | |
|
|
Book value per common share
| | $11.84 | | $11.61 | | $11.51 | | $11.34 | | $11.21 |
|
Total common shares outstanding
| |
4,352,319
| |
4,338,161
| |
4,336,292
| |
4,308,756
| |
4,283,494
|
| | | | | | | | | |
|
Other Ratios | | | | | | | | | | |
|
Non-interest bearing/total deposits
| |
36.4%
| |
39.0%
| |
40.6%
| |
35.9%
| |
35.2%
|
|
Loan to deposit ratio
| |
88.6%
| |
69.1%
| |
65.1%
| |
60.3%
| |
57.2%
|
|
Allowance for loan losses/total loans
| |
1.42%
| |
1.63%
| |
1.73%
| |
1.89%
| |
1.86%
|
| | | | | | | | | |
|
|
|
Avidbank Holdings, Inc. |
Condensed Consolidated Statements of Income |
($000, except share, per share amounts and ratios) (Unaudited)
|
|
| |
| |
| |
| |
| |
| |
Quarter Ended
| |
Year Ended
|
| | 12/31/2014 | | 9/30/2014 | | 12/31/2013 | | 12/31/2014 | | 12/31/2013 |
|
Interest and fees on loans and leases
| | $4,128 | | $3,786 | | $3,485 | | $15,204 | | $14,498 |
|
Interest on investment securities
| |
497
| |
430
| |
408
| |
1,739
| |
1,605
|
|
Other interest income
| |
28
|
|
56
|
|
85
|
|
231
|
|
268
|
|
Total interest income
| |
4,653
| |
4,272
| |
3,978
| |
17,174
| |
16,371
|
|
Interest expense
| |
170
|
|
175
|
|
280
|
|
798
|
|
1,167
|
|
Net interest income
| |
4,483
| |
4,097
| |
3,698
| |
16,376
| |
15,204
|
| | | | | | | | | |
|
|
Provision for loan losses
| |
39
|
|
-
|
|
-
|
|
39
|
|
245
|
Net interest income after provision for loan losses
| |
4,444
| |
4,097
| |
3,698
| |
16,337
| |
14,959
|
| | | | | | | | | |
|
|
Service charges, fees and other income
| |
278
| |
260
| |
168
| |
970
| |
529
|
|
Income from bank owned life insurance
| |
87
| |
74
| |
90
| |
337
| |
187
|
|
Gain on sale of investment securities
| |
239
|
|
22
|
|
0
|
|
261
|
|
748
|
|
Total non-interest income
| |
604
| |
356
| |
258
| |
1,568
| |
1,464
|
| | | | | | | | | |
|
|
Compensation and benefit expenses
| |
2,147
| |
2,072
| |
1,813
| |
8,295
| |
7,339
|
|
Occupancy and equipment expenses
| |
568
| |
568
| |
493
| |
2,325
| |
2,241
|
|
Other operating expenses
| |
762
|
|
705
|
|
811
|
|
2,745
|
|
2,795
|
Total expenses
| |
3,477
| |
3,345
| |
3,117
| |
13,365
| |
12,375
|
| | | | | | | | | |
|
|
Income before income taxes
| |
1,571
| |
1,108
| |
839
| |
4,540
| |
4,048
|
|
Provision for income taxes
| |
575
|
|
462
|
|
204
|
|
1,796
|
|
1,540
|
|
Net income
| | $996 |
| $646 |
| $635 |
| $2,744 |
| $2,508 |
| | | | | | | | | |
|
|
Preferred dividends & warrant amortization
| |
-
|
|
-
|
|
-
|
|
-
|
|
210
|
Net income applicable to common shareholders
| | $996 |
| $646 |
| $635 |
| $2,744 |
| $2,298 |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Basic earnings per common share
| | $0.23 | | $0.15 | | $0.15 | | $0.63 | | $0.66 |
|
Diluted earnings per common share
| | $0.22 | | $0.15 | | $0.15 | | $0.62 | | $0.64 |
| | | | | | | | | |
|
|
Average common shares outstanding
| |
4,343,719
| |
4,336,761
| |
4,283,109
| |
4,323,826
| |
3,474,788
|
|
Average common fully diluted shares
| |
4,428,005
| |
4,419,603
| |
4,344,871
| |
4,400,659
| |
3,565,490
|
| | | | | | | | | |
|
|
Annualized returns:
| | | | | | | | | | |
|
Return on average assets
| |
0.83%
| |
0.54%
| |
0.52%
| |
0.57%
| |
0.57%
|
|
Return on average common equity
| |
7.95%
| |
5.16%
| |
5.29%
| |
5.54%
| |
6.23%
|
| | | | | | | | | |
|
|
Net interest margin
| |
4.20%
| |
3.73%
| |
3.30%
| |
3.79%
| |
3.63%
|
|
Cost of funds
| |
0.16%
| |
0.16%
| |
0.26%
| |
0.19%
| |
0.30%
|
|
Efficiency ratio
| |
68.4%
| |
75.1%
| |
78.8%
| |
74.5%
| |
74.2%
|
| | | | | | | | | |
|
|
|
Avidbank, Inc. |
Interim Credit Trends |
($000, except ratios) (Unaudited)
|
|
| |
| |
| |
| |
| |
Allowance for Loan Losses | | | | | | | | | | |
| | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 |
|
Balance, beginning of quarter
| | $4,826 | | $4,809 | | $4,795 | | $4,788 | | $4,754 |
|
Provision for loan losses, quarterly
| |
39
| |
-
| |
-
| |
-
| |
-
|
|
Charge-offs, quarterly
| |
-
| |
-
| |
-
| |
-
| |
-
|
|
Recoveries, quarterly
| |
8
|
|
17
|
|
14
|
|
7
|
|
34
|
|
Balance, end of quarter
| | $4,873 |
| $ 4,826 |
| $ 4,809 |
| $ 4,795 |
| $ 4,788 |
| | | | | | | | | |
|
| | | | | | | | | |
|
Nonperforming Assets | | | | | | | | | | |
| | | | | | | | | |
|
|
Loans accounted for on a non-accrual basis
| | $5,243 | | $6,412 | | $2,283 | | $3,099 | | $2,015 |
Loans with principal or interest contractually past due 90 days or
more and still accruing interest
| |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Nonperforming loans
| |
5,243
| |
6,412
| |
2,283
| |
3,099
| |
2,015
|
|
Other real estate owned
| |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Nonperforming assets
| | $5,243 |
| $6,412 |
| $2,283 |
| $3,099 |
| $2,015 |
Loans restructured and in compliance with modified terms
| |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Nonperforming assets & restructured loans
| | $5,243 |
| $6,412 |
| $2,283 |
| $3,099 |
| $2,015 |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Nonperforming Loans by Asset Type:
| | | | | | | | | | |
|
Commercial
| | $5,243 | | $5,917 | | $1,779 | | $2,585 | | $1,492 |
|
Other real estate secured loans
| |
-
|
|
495
|
|
504
|
|
514
|
|
523
|
|
Nonperforming loans
| | $5,243 |
| $6,412 |
| $2,283 |
| $3,099 |
| $2,015 |
| | | | | | | | | |
|
| | | | | | | | | |
|
Asset Quality Ratios | | | | | | | | | | |
|
Allowance for loan losses / gross loans
| |
1.42%
| |
1.63%
| |
1.73%
| |
1.89%
| |
1.86%
|
|
Allowance for loan losses / nonperforming loans
| |
92.94%
| |
75.27%
| |
210.64%
| |
154.73%
| |
237.62%
|
|
Nonperforming assets / total assets
| |
1.12%
| |
1.32%
| |
0.47%
| |
0.66%
| |
0.40%
|
|
Nonperforming loans / gross loans
| |
1.53%
| |
2.17%
| |
0.82%
| |
1.22%
| |
0.78%
|
|
Net quarterly charge-offs / gross loans
| |
0.00%
| |
-0.01%
| |
-0.01%
| |
0.00%
| |
-0.01%
|
| | | | | | | | | |
|
Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Executive
Vice President and Chief Financial Officer
sleen@avidbank.com
avidbank.com
Source: Avidbank Holdings, Inc.