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Avidbank Holdings, Inc. Announces Unaudited Net Income of $408,000 for the First Quarter of 2014

  Avidbank Holdings, Inc. Announces Unaudited Net Income of $408,000 for the   First Quarter of 2014  Business Wire  PALO ALTO, Calif. -- May 6, 2014  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 unaudited net income of $408,000 for the first quarter of 2014 compared to $514,000 for the same period in 2013.  First Quarter 2014 Financial Highlights    *Net income was $408,000 for the first quarter of 2014, compared to     $514,000 for the first quarter of 2013   *Diluted earnings per common share were $0.09 for the first quarter of     2014, compared to $0.16 for the first quarter of 2013   *Total assets increased by 13% over the past twelve months, ending the     first quarter at $473 million   *Total loans outstanding increased by 5% from the prior year, ending the     first quarter at $254 million   *Total deposits increased by 12% from a year ago, ending the first quarter     at $422 million   *The Bank continues to be well capitalized with a Tier 1 Leverage Ratio of     9.7% and a Total Risk Based Capital Ratio of 14.1%  Mark D. Mordell, Chairman and Chief Executive Officer, stated, “We continued to execute our strategic plan and build lending infrastructure in the first quarter of 2014 and we are starting to see the results of our investments. Our team originated over $40 million in new commitments that resulted in over $20 million in new loan outstandings for the quarter. At the same time, we experienced over $20 million in anticipated construction loan payoffs causing a slight decrease in our loans outstanding. We are continuing to attract top talent as we have hired another senior commercial relationship manager with a network that spans from San Francisco to San Jose, as well as an experienced cash management sales officer to enhance our offerings to the business community. These efforts, along with last year's increase in lending staff, are starting to have a positive impact on our business development opportunities. We believe these investments will enhance the Bank's long term profitability.”  “Deposits declined by $28 million as several large accounts with expected seasonality drew down on the balances they had accumulated at the end of 2013. The reductions do not reflect the closure of any major relationships. Our credit quality remains strong with no charge-offs to date in 2014 as we continue to maintain our high lending standards,” noted Mr. Mordell.  Results for the quarter ended March 31, 2014  For the three months ended March 31, 2014, net interest income after provision for loan losses was $3.6 million, a decrease of $231,000 or 6% compared to the first quarter of 2013. The decrease in net interest income was primarily the result of a decline in loan yields due to the low interest rate environment being experienced nationwide. Average earning assets were $451 million in the first quarter of 2014, a 13% increase over the first quarter of the prior year. Earning assets increased due to growth in overnight fed funds resulting from higher deposits. Net interest margin was 3.32% for the first quarter of 2014, compared to 3.93% for the first quarter of 2013. Net interest margin declined due to lower loan yields and the above mentioned increase in overnight funds. No provision for loan losses was taken in the first quarter of 2014 or 2013.  Non-interest income, excluding gains on sales of securities, was $278,000 in the first quarter of 2014, an increase of $153,000 or 122% over the first quarter of 2013. The increase was due to increases in service charges and other fee generation activities as well as an increase in earnings on bank owned life insurance.  Non-interest expense grew by $133,000 in the first quarter of 2014 to $3.2 million compared to $3.1 million for the first quarter of 2013. This growth was due to the investments in loan production personnel and facilities mentioned previously.  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 share and per share amounts) (Unaudited)                                                                   Assets                            3/31/2014       12/31/2013       3/31/2013 Cash and due from banks         $ 15,427        $ 16,905         $ 11,381 Fed funds sold                   127,785      151,940       102,070    Total cash and cash               143,212         168,845          113,451 equivalents                                                                   Investment securities -           58,397          58,983           54,767 available for sale                                                                   Loans, net of deferred loan       254,375         257,434          242,225 fees Allowance for loan losses        (4,795    )   (4,788     )   (4,736    ) Loans, net of allowance for       249,580         252,646          237,489 loan losses                                                                   Bank owned life insurance         11,694          11,607           3,445 Premises and equipment, net       1,287           1,175            1,334 Accrued interest receivable &    8,950        7,420         6,756      other assets Total assets                    $ 473,120     $ 500,676      $ 417,242                                                                      Liabilities Non-interest-bearing demand     $ 151,538       $ 158,364        $ 101,386 deposits Interest bearing transaction      18,041          18,991           15,990 accounts Money market and savings          205,237         222,324          197,639 accounts Time deposits                    47,250       50,625        60,931     Total deposits                    422,066         450,304          375,946                                                                   Other liabilities                2,209        2,340         2,884      Total liabilities                 424,275         452,644          378,830                                                                   Shareholders' equity Preferred stock                   -               -                5,963 Common stock/additional           44,774          44,531           29,647 paid-in capital Retained earnings                 3,877           3,469            1,598 Accumulated other                194          32            1,204      comprehensive income Total shareholders' equity        48,845          48,032           38,412                                                                   Total liabilities and           $ 473,120     $ 500,676      $ 417,242    shareholders' equity                                                                   Bank Capital ratios Tier 1 leverage ratio             9.72      %     9.66       %     8.87      % Tier 1 risk-based capital         12.89     %     12.45      %     11.01     % ratio Total risk-based capital          14.14     %     13.70      %     12.26     % ratio                                                                   Book value per common share     $ 11.34         $ 11.21          $ 12.37 Total shares outstanding          4,308,756       4,283,494        2,623,852                                                                   Other Ratios Non-interest bearing/total        35.9      %     35.2       %     27.0      % deposits Loan to deposit ratio             60.3      %     57.2       %     64.4      % Allowance/Total loans             1.88      %     1.85       %     1.96      %                                                                                                                                   Avidbank Holdings, Inc. Condensed Statements of Income ($000, except share and per share amounts)(Unaudited)                                                                                                                    Quarter Ended                                                    3/31/2014       3/31/2013 Interest and fees on loans                       $ 3,412         $ 3,722 Interest on investment securities                  375             404 Other interest income                             88           54         Total interest income                              3,875           4,180 Interest expense                                  244          318        Net interest income                                3,631           3,862                                                                   Provision for loan losses                         -            -          Net interest income after provision for loan       3,631           3,862 losses                                                                   Service charges, fees and other income             278             125 Gain on sale of investment securities             -            -          Total non-interest income                          278             125                                                                   Compensation and benefit expenses                  2,052           1,838 Occupancy and equipment expenses                   569             567 Other operating expenses                          608          691        Total non-interest expense                         3,229           3,096                                                                   Income before income taxes                         680             891 Provision for income taxes                        272          377        Net income                                       $ 408         $ 514                                                                          Preferred dividends & warrant amortization        -            84         Net income applicable to common shareholders     $ 408         $ 430                                                                                                                                            Basic earnings per share                         $ 0.10          $ 0.16 Diluted earnings per share                       $ 0.09          $ 0.16                                                                   Average shares outstanding                         4,294,697       2,616,099 Average fully diluted shares                       4,374,997       2,695,340 Total shares outstanding at period end             4,308,756       2,623,852                                                                   Annualized returns: Return on average assets                           0.34      %     0.49      % Return on average common equity                    3.35      %     6.37      %                                                                   Net interest margin                                3.32      %     3.93      % Cost of funds                                      0.22      %     0.34      % Efficiency ratio                                   82.6      %     77.7      %  Contact:  Avidbank Holdings, Inc. Steve Leen, 650-843-2204 Executive Vice President and Chief Financial Officer sleen@avidbank.com avidbank.com