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
$1,207,000 for the first quarter of 2016 compared to $374,000 for the
same period in 2015.
First Quarter 2016 Financial Highlights
-
Net interest income was $5,571,000 for the first quarter of 2016, an
increase of $514,000 over the $5,057,000 we achieved in the first
quarter of 2015. The 10% increase over the prior year quarter reflects
the improved earnings potential resulting from our significant loan
growth in 2015.
-
Net income was $1,207,000 for the first quarter of 2016, compared to
$374,000 for the first quarter of 2015. Results for the first quarter
of 2016 included no loan loss provision compared to a $1,031,000 loan
loss provision in the first quarter of 2015.
-
Diluted earnings per common share were $0.26 for the first quarter of
2016, compared to $0.08 for the first quarter of 2015.
-
Total assets grew by 2% in the first three months of 2016, ending the
first quarter at $613 million.
-
Total loans outstanding grew by 5% in the first three months of 2016,
ending the first quarter at $423 million.
-
Total deposits grew by 2% in the first three months of 2016, ending
the first quarter at $542 million.
-
The Company continues to be well capitalized with a Tier 1 Leverage
Ratio of 9.3%, a Tier 1 Risk Based Capital and Common Equity Tier 1
Risk Based Capital Ratio of 9.9%, and a Total Risk Based Capital Ratio
of 12.9%.
Mark D. Mordell, Chairman and Chief Executive Officer, stated, "Our
first quarter results reflect the new level of financial stability and
performance we have achieved after two solid years of building our
business. Our loans grew by $20 million in the quarter to help maintain
a strong earnings base. Our net interest income increased to $5.6
million, a 10% increase over the first quarter of 2015. We are committed
to making the investments in personnel and infrastructure required to
keep expanding our business and product lines while maintaining credit
quality. Our non-performing loans have dropped to 0.45% of total loans
compared to 1.95% one year ago. We continue to manage our expenses and
our efficiency ratio has improved to 66% compared to 70% for the first
quarter of the prior year. The increased efficiencies from our growth
allow us to make additional investments in loan production and loan
underwriting capacity which will drive our future profitability."
"The Bank's total deposits increased by $11 million in the first quarter
of 2016 as organic deposit growth was offset by some large drawdowns in
client demand deposits. Core deposits make up over 85% of total deposits
and our demand deposits and interest checking accounts were 41% of total
deposits as of March 31, 2016," noted Mr. Mordell. "Our $12 million ten
year subordinated debt raise has led to a drop in our net interest
margin to 3.94% in the first quarter of 2016 compared to 4.44% for the
comparable quarter in 2015. This debt bears interest at 6.875% annually
and is fixed for the first five years and variable with LIBOR for the
remainder of the term. We downstreamed $2 million of this debt as
capital to the Bank in December 2015 and will downstream additional
funds as needed to maintain appropriate regulatory capital ratios and to
limit our real estate loan concentrations as a percentage of
shareholders' equity."
Results for the quarter ended March 31, 2016
For the three months ended March 31, 2016, net interest income before
provision for loan losses was $5.6 million, an increase of $0.5 million
or 10% compared to the first quarter of 2015. The increase was primarily
the result of higher average loans outstanding partially offset by an
increase in interest expense. Average gross loans outstanding for the
quarter ended March 31, 2016 were $411.9 million, compared to $360.5
million for the same quarter in 2015, an increase of $51.4 million or
14%. Average earning assets were $569.1 million in the first quarter of
2016, a 23% increase over the first quarter of the prior year. The mix
of average earning assets were comprised of 72% loans at the end of the
first quarter 2016 compared to 78% loans at the end of the first quarter
of 2015. Net interest margin was 3.94% for the first quarter of 2016,
compared to 4.44% for the first quarter of 2015. Net interest margin
decreased due to the cost of our subordinated debt and an increase in
lower yielding Fed Funds. No loan loss provision was taken in the first
quarter of 2016 and a loan loss provision of $1,031,000 was taken in the
first quarter of 2015.
Non-interest income was $385,000 in the first quarter of 2016, an
increase of $53,000 or 16% over the first quarter of 2015. The increase
was due to increases in FHLB dividends, service charges and other fee
generation activities. There were no gains or losses on sales of
securities in the first quarter of 2016 or 2015.
Non-interest expense grew by $172,000 in the first quarter of 2016 to
$3.9 million compared to $3.8 million for the first quarter of 2015.
This increase was due to hiring additional loan production personnel and
partially offset by a decrease in occupancy expense due to the sublease
of excess space in our Redwood City office. The Bank's full time
equivalent employees at March 31, 2016 and 2015 were 65 and 63,
respectively. The Bank's efficiency ratio improved from 70% in the first
quarter of 2015 to 66% in the first quarter of 2016.
Balance Sheet
Total assets increased to $613 million as of March 31, 2016, compared to
$602 million at December 31, 2015 and $527 million on the same date one
year ago. The increase in total assets of $11.7 million, or 2%, from
December 31, 2015 was primarily due to an increase in loans in the first
quarter of 2016. The Company reported gross loans outstanding at March
31, 2016 of $423 million, which represented an increase of $20.2
million, or 5%, over $403 million at December 31, 2015, and an increase
of $39.4 million, or 10%, over $383 million at March 31, 2015. The
increase in total gross loans from December 31, 2015 was primarily
attributable to increased construction and commercial real estate loans.
The increase in loans from March 31, 2015 was attributable to growth in
the construction, commercial real estate and commercial lending
categories.
Non-accrual loans totaled $1.9 million or 0.45% of total loans on March
31, 2016 compared to $7.5 million or 1.95% of total loans at the end of
the first quarter of the prior year. "The credit quality of our
portfolio continues to improve and our non-performing loans currently
represent a single relationship," observed Mr. Mordell.
The Company’s total deposits were $542 million as of March 31, 2016,
which represented an increase of $10.6 million, or 2%, compared to $532
million at December 31, 2015 and an increase of $153 million, or 39%,
compared to $389 million at March 31, 2015. The increase in deposits
from December 31, 2015 was primarily attributable to an increase in
brokered deposits, while the increase from March 31, 2015 was primarily
attributable to an increase in money market accounts, demand deposits
and brokered deposits.
Demand and transaction deposits represented 40.6% of total deposits at
March 31, 2016, compared to 43.1% at December 31, 2015 and 45.8% for the
same period one year ago. Core deposits represented 85.3% of total
deposits at March 31, 2016, compared to 88.5% at December 31, 2015 and
93.4% at March 31, 2015.
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 | | 3/31/16 | | 12/31/15 | | 9/30/15 | | 6/30/15 | | 3/31/15 |
Cash and due from banks
| | $27,125 | | $21,277 | | $21,674 | | $19,773 | | $17,321 |
|
Fed funds sold
| |
73,885
|
|
89,045
|
|
36,220
|
|
35,875
|
|
20,830
|
|
Total cash and cash equivalents
| |
101,010
| |
110,322
| |
57,894
| |
55,648
| |
38,151
|
| | | | | | | | | |
|
|
Investment securities - available for sale
| |
68,541
| |
69,766
| |
71,723
| |
74,560
| |
83,316
|
| | | | | | | | | |
|
|
Loans, net of deferred loan fees
| |
422,855
| |
402,658
| |
425,224
| |
404,036
| |
383,422
|
|
Allowance for loan losses
| |
(5,406)
|
|
(5,394)
|
|
(5,394)
|
|
(5,122)
|
|
(5,912)
|
|
Loans, net of allowance for loan losses
| |
417,449
| |
397,264
| |
419,830
| |
398,914
| |
377,510
|
| | | | | | | | | |
|
|
Bank owned life insurance
| |
12,380
| |
12,293
| |
12,204
| |
12,116
| |
12,029
|
|
Premises and equipment, net
| |
795
| |
862
| |
901
| |
989
| |
1,046
|
|
Accrued interest receivable & other assets
| |
13,169
|
|
11,129
|
|
14,197
|
|
13,995
|
|
15,256
|
|
Total assets
| | $613,344 |
| $601,636 |
| $576,749 |
| $556,222 |
| $527,308 |
| | | | | | | | | |
|
Liabilities | | | | | | | | | | |
|
Non-interest-bearing demand deposits
| | $199,630 | | $207,296 | | $173,600 | | $174,265 | | $156,606 |
|
Interest bearing transaction accounts
| |
20,391
| |
22,068
| |
19,771
| |
18,647
| |
21,567
|
|
Money market and savings accounts
| |
229,031
| |
227,089
| |
230,865
| |
202,758
| |
170,872
|
|
Time deposits
| |
93,273
|
|
75,291
|
|
67,054
|
|
67,100
|
|
39,873
|
|
Total deposits
| |
542,325
| |
531,744
| |
491,290
| |
462,770
| |
388,918
|
| | | | | | | | | |
|
|
FHLB advances
| |
-
| |
-
| |
25,000
| |
35,000
| |
80,000
|
|
Subordinated debt
| |
12,000
| |
12,000
| |
-
| |
-
| |
-
|
|
Other liabilities
| |
1,912
|
|
2,267
|
|
6,192
|
|
5,816
|
|
5,859
|
|
Total liabilities
| |
556,237
| |
546,011
| |
522,482
| |
503,586
| |
474,777
|
| | | | | | | | | |
|
Shareholders' equity | | | | | | | | | | |
|
Common stock/additional paid-in capital
| |
45,610
| |
45,950
| |
47,032
| |
46,891
| |
45,596
|
|
Retained earnings
| |
11,102
| |
9,724
| |
6,981
| |
5,712
| |
6,441
|
|
Accumulated other comprehensive income
| |
395
|
|
(49)
|
|
254
|
|
33
|
|
494
|
|
Total shareholders' equity
| |
57,107
| |
55,625
| |
54,267
| |
52,636
| |
52,531
|
| | | | | | | | | |
|
|
Total liabilities and shareholders' equity
| | $613,344 |
| $601,636 |
| $576,749 |
| $556,222 |
| $527,308 |
| | | | | | | | | |
|
Capital ratios | | | | | | | | | | |
|
Tier 1 leverage ratio
| |
9.30%
| |
9.41%
| |
9.52%
| |
9.58%
| |
10.35%
|
|
Tier 1 and Common Equity Tier 1 RBC ratio
| |
9.91%
| |
10.21%
| |
9.57%
| |
9.83%
| |
10.09%
|
|
Total risk-based capital (RBC) ratio
| |
12.94%
| |
13.40%
| |
10.60%
| |
10.86%
| |
11.32%
|
| | | | | | | | | |
|
|
Book value per common share
| | $12.59 | | $12.49 | | $12.20 | | $11.86 | | $11.93 |
|
Total common shares outstanding
| |
4,537,577
| |
4,452,853
| |
4,448,898
| |
4,439,743
| |
4,402,292
|
| | | | | | | | | |
|
Other Ratios | | | | | | | | | | |
|
Non-interest bearing/total deposits
| |
36.8%
| |
39.0%
| |
35.3%
| |
37.7%
| |
40.3%
|
|
Loan to deposit ratio
| |
78.0%
| |
75.7%
| |
86.6%
| |
87.3%
| |
98.6%
|
|
Allowance for loan losses/total loans
| |
1.28%
| |
1.34%
| |
1.27%
| |
1.27%
| |
1.54%
|
| | | | | | | | | |
|
|
| |
| |
| |
| Avidbank Holdings, Inc. |
| Condensed Consolidated Statements of Income |
|
($000, except share, per share amounts and ratios) (Unaudited)
|
| | | | | |
|
| |
Quarter Ended
|
| | 3/31/16 | | 12/31/15 | | 3/31/15 |
|
Interest and fees on loans and leases
| | $5,520 | | $5,745 | | $4,748 |
|
Interest on investment securities
| |
433
| |
426
| |
486
|
|
Other interest income
| |
107
|
|
49
|
|
11
|
|
Total interest income
| |
6,060
| |
6,220
| |
5,245
|
| | | | | |
|
|
Deposit interest expense
| |
278
| |
284
| |
164
|
|
Other interest expense
| |
211
|
|
115
|
|
24
|
|
Total interest expense
| |
489
|
|
399
|
|
188
|
|
Net interest income
| |
5,571
| |
5,821
| |
5,057
|
| | | | | |
|
|
Provision for loan losses
| |
-
|
|
-
|
|
1,031
|
|
Net interest income after provision for loan losses
| |
5,571
| |
5,821
| |
4,026
|
| | | | | |
|
|
Service charges, fees and other income
| |
298
| |
285
| |
248
|
|
Income from bank owned life insurance
| |
87
| |
89
| |
84
|
|
Gain (Loss) on sale of investment securities
| |
-
|
|
-
|
|
-
|
|
Total non-interest income
| |
385
| |
374
| |
332
|
| | | | | |
|
|
Compensation and benefit expenses
| |
2,615
| |
2,202
| |
2,434
|
|
Occupancy and equipment expenses
| |
566
| |
594
| |
611
|
|
Other operating expenses
| |
752
|
|
869
|
|
716
|
|
Total non-interest expense
| |
3,933
| |
3,665
| |
3,761
|
| | | | | |
|
|
Income before income taxes
| |
2,023
| |
2,530
| |
597
|
|
Provision for income taxes
| |
816
|
|
885
|
|
223
|
|
Net income
| | $1,207 |
| $1,645 |
| $374 |
| | | | | |
|
| | | | | |
|
| | | | | |
|
|
Basic earnings per common share
| | $0.27 | | $0.37 | | $0.09 |
|
Diluted earnings per common share
| | $0.26 | | $0.36 | | $0.08 |
| | | | | |
|
|
Average common shares outstanding
| |
4,505,140
| |
4,450,315
| |
4,362,204
|
|
Average common fully diluted shares
| |
4,607,307
| |
4,570,053
| |
4,475,556
|
| | | | | |
|
|
Annualized returns:
| | | | | | |
|
Return on average assets
| |
0.79%
| |
1.12%
| |
0.30%
|
|
Return on average common equity
| |
8.53%
| |
11.92%
| |
2.85%
|
| | | | | |
|
|
Net interest margin
| |
3.94%
| |
4.21%
| |
4.44%
|
|
Cost of funds
| |
0.35%
| |
0.30%
| |
0.18%
|
|
Efficiency ratio
| |
66.03%
| |
59.16%
| |
69.79%
|
| | | | | |
|
|
| |
| |
| |
| |
| |
| Avidbank Holdings, Inc. |
| Credit Trends |
|
($000, except ratios) (Unaudited)
|
| | | | | | | | | |
|
| | 3/31/16 | | 12/31/15 | | 9/30/15 | | 6/30/15 | | 3/31/15 |
Allowance for Loan Losses | | | | | | | | | | |
|
Balance, beginning of quarter
| | $5,394 | | $5,394 | | $5,122 | | $5,912 | | $4,873 |
|
Provision for loan losses, quarterly
| |
-
| |
-
| |
259
| |
1,756
| |
1,031
|
|
Charge-offs, quarterly
| |
-
| |
-
| |
-
| |
(2,554)
| |
-
|
|
Recoveries, quarterly
| |
12
|
|
-
|
|
13
|
|
8
|
|
8
|
|
Balance, end of quarter
| | $5,406 |
| $5,394 |
| $5,394 |
| $5,122 |
| $5,912 |
| | | | | | | | | |
|
| | | | | | | | | |
|
Nonperforming Assets | | | | | | | | | | |
|
Loans accounted for on a non-accrual basis
| | $1,898 | | $1,899 | | $2,409 | | $3,930 | | $7,478 |
Loans with principal or interest contractually past due 90 days or
more and still accruing interest
| |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Nonperforming loans
| |
1,898
| |
1,899
| |
2,409
| |
3,930
| |
7,478
|
|
Other real estate owned
| |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Nonperforming assets
| | $1,898 |
| $1,899 |
| $2,409 |
| $3,930 |
| $7,478 |
Loans restructured and in compliance with modified terms
| |
466
|
|
470
|
|
474
|
|
477
|
|
481
|
|
Nonperforming assets & restructured loans
| | $2,364 |
| $2,369 |
| $2,883 |
| $4,407 |
| $7,959 |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Nonperforming Assets by Type:
| | | | | | | | | | |
|
Commercial
| | $1,898 | | $1,899 | | $2,409 | | $3,930 | | $7,478 |
|
Other real estate
| |
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Nonperforming loans
| | $1,898 |
| $1,899 |
| $2,409 |
| $3,930 |
| $7,478 |
| | | | | | | | | |
|
| | | | | | | | | |
|
Asset Quality Ratios | | | | | | | | | | |
|
Allowance for loan losses / gross loans
| |
1.28%
| |
1.34%
| |
1.27%
| |
1.27%
| |
1.54%
|
|
Allowance for loan losses / nonperforming loans
| |
284.83%
| |
284.04%
| |
223.91%
| |
130.33%
| |
79.06%
|
|
Nonperforming assets / total assets
| |
0.31%
| |
0.32%
| |
0.42%
| |
0.71%
| |
1.42%
|
|
Nonperforming loans / gross loans
| |
0.45%
| |
0.47%
| |
0.57%
| |
0.97%
| |
1.95%
|
|
Net quarterly charge-offs / gross loans
| |
0.00%
| |
0.00%
| |
0.00%
| |
0.63%
| |
0.00%
|
| | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160426005624/en/
Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Executive
Vice President and Chief Financial Officer
sleen@avidbank.com
avidbank.com4
Source: Avidbank Holdings, Inc.