Avidbank Holdings, Inc. Announces Record Total Assets for the Third Quarter
PALO ALTO, Calif. -- November 1, 2013
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
3^rd 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
*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
*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.
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.
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
Avidbank Holdings, Inc.
Balance Sheet ($000, except per share amounts)
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 157,078 107,003 110,307
Investment securities - 66,147 55,343 63,487
available for sale
Loans, net of deferred loan 244,501 247,269 233,352
Allowance for loan losses (4,754 ) (4,480 ) (4,290 )
Loans, net of allowance for 239,747 242,789 229,062
Premises and equipment, net 1,171 1,291 1,108
Accrued interest receivable & 19,090 9,296 11,495
Total assets $ 483,234 $ 415,721 $ 415,459
Non-interest-bearing demand $ 161,517 $ 105,518 $ 119,180
Interest bearing transaction 15,226 17,293 13,760
Money market and savings 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
Preferred stock - 5,952 5,940
Common stock 44,417 29,556 29,502
Retained earnings 2,834 1,171 592
Accumulated other 116 1,184 1,322
Total shareholders' equity 47,367 37,863 37,356
Total liabilities and $ 483,234 $ 415,721 $ 415,459
Bank Capital ratios
Tier 1 leverage ratio 10.22 % 8.85 % 8.84 %
Tier 1 risk-based capital 12.76 % 10.72 % 10.76 %
Total risk-based capital 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
Quarter Ended Year to Date
9/30/2013 9/30/2012 9/30/2013 9/30/2012
Interest and $ 3,630 $ 3,602 $ 11,014 $ 10,949
fees on loans
investment 393 518 1,196 1,574
Other interest 72 55 184 92
Total interest 4,096 4,175 12,393 12,615
Interest 280 449 887 1,451
Net interest 3,816 3,726 11,506 11,164
Provision for 245 - 245 100
income after 3,571 3,726 11,261 11,064
charges, fees 174 125 458 345
Gain on sale of
investment 67 - 748 -
non-interest 241 125 1,206 345
and benefit 1,885 1,572 5,525 4,625
equipment 537 481 1,688 1,347
Other operating 666 599 2,043 1,860
non-interest 3,088 2,653 9,257 7,832
Income before 723 1,198 3,210 3,578
Provision for 287 542 1,337 1,498
Net income $ 436 $ 656 $ 1,873 $ 2,080
dividends & 38 84 206 252
applicable to $ 398 $ 572 $ 1,667 $ 1,828
Basic earnings $ 0.09 $ 0.22 $ 0.52 $ 0.70
earnings per $ 0.09 $ 0.22 $ 0.51 $ 0.70
Average shares 4,274,420 2,613,655 3,214,230 2,609,884
Average fully 4,315,848 2,624,655 3,257,599 2,620,884
Return on 0.38 % 0.64 % 0.58 % 0.74 %
average common 4.13 % 7.86 % 6.57 % 8.31 %
Net interest 3.60 % 3.87 % 3.79 % 4.23 %
Cost of funds 0.28 % 0.49 % 0.31 % 0.58 %
Efficiency 76 % 69 % 73 % 68 %
Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Executive Vice President and Chief Financial Officer
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