%SAN JOSE, CA / ACCESSWIRE / April 20, 2022 / Avidbank Holdings, Inc., (OTC PINK:AVBH) announced income for the first quarter of 2022 of $4.3 million, or $0.71 per diluted share, compared to $2.5 million, or $0.42 per diluted share, for the first and fourth quarters of 2021.

First Quarter 2022 Financial Highlights

• Diluted earnings per share of $0.71, an increase of $0.29, or 69%, compared to the first quarter of 2021 and an increase of $0.29, or 276% annualized, compared to the fourth quarter of 2021.
• Total assets were $2.1 billion, compared to $1.5 billion on March 31, 2021 and $2.2 billion at December 31, 2021.
• Return on average assets totaled 0.83% and return on average equity was 12.72% in the first quarter of 2022.
• Quarterly average earning assets increased $621 million, or 44%, compared to the first quarter of 2021 and $69 million, or 14% annualized, compared to the fourth quarter of 2021.
• Net interest income totaled $15.2 million, an increase of $3.3 million, or 28%, compared to the first quarter of 2021 and increased $919,000, or 26% annualized, compared to the fourth quarter of 2021.
• Annualized net charge-offs to average loans totaled 0.00% for the first quarter of 2022. Non-performing assets to total assets were 0.15% on March 31, 2022, a decrease from 0.22% on March 31, 2021 and unchanged from December 31, 2021.

"We are off to a solid start in 2022 with record earnings of $0.71 per diluted share," said Mark Mordell, Chairman and Chief Executive Officer. "Our pipeline for new business has been strong for the past several quarters and although the numbers do not reflect the activity, we originated over $80 million of new loans in the first quarter, we also had over $90 million in payoffs primarily due to our Construction and Specialty Finance divisions. We continue to be optimistic about the remainder of 2022 as our pipeline for new business is very encouraging along with the additional benefits we will see from each increase in the fed funds rate," added Mr. Mordell.

Income Statement

Net interest income totaled $15.2 million for the first quarter of 2022, an increase of $3.3 million, or 28%, from the first quarter of 2021, and an increase of $919,000, or 26% annualized, from the fourth quarter of 2021. This was primarily driven by an increase in interest income from the growth in average balance of loans and investment securities.

The net interest margin was 3.05% in the first quarter of 2022, compared to 3.44% in the first quarter of 2021 and 2.90% in the fourth quarter of 2021. The linked quarter increase in net interest margin was primarily due to the purchase of investment securities and corresponding reduction in excess cash balances.

The yield on loans in the first quarter of 2022 was 4.73%, a decrease of 14 basis points from the first quarter of 2021 and a decrease of 0.06% from the fourth quarter of 2021. The linked quarter decrease was primarily due to a decrease in loan fees.

The cost of deposits in the first quarter of 2022 was 0.13%, a decrease of 7 basis points from the first quarter of 2021 and a decrease of 1 basis point from the fourth quarter of 2021. The cost of interest-bearing deposits in the first quarter of 2022 was 0.26%, a decrease of 5 basis points from the fourth quarter of 2021.

There was no required loan loss provision for the first quarter of 2022 compared with a $75,000 loan loss provision taken in the first quarter of 2021 and $3.3 million for the fourth quarter of 2021.

Non-interest income was $1.1 million in the first quarter of 2022 compared to $711,000 in the first quarter of 2021 and $2.1 million in the fourth quarter of 2021. Service charge income totaled $636,000 in the first quarter of 2022, an increase of $166,000, or 35% from the first quarter of 2021, and an increase of $59,000, or 41% annualized, compared to the fourth quarter of 2021. The fourth quarter of 2021 included a gain on fund investments of $711,000 and $455,000 in warrant income.

Non-interest expense totaled $10.4 million in the first quarter of 2022 compared to $9.0 million in the first quarter of 2021 and $9.5 million in the fourth quarter of 2021. This increase was primarily due to higher compensation costs. The number of full-time equivalent employees on March 31, 2022 totaled 130 compared to 126 on December 31, 2021. Regulatory assessments also increased to $664,000 in the first quarter of 2022 primarily as a result of the strong growth in deposits over the last several quarters.

Balance Sheet

Total assets were $2.11 billion as of March 31, 2022, compared to $2.16 billion on December 31, 2021 and $1.54 billion at March 31, 2021. Cash balances held at the Federal Reserve decreased $143 million in the first quarter of 2022 while investments increased $89.0 million due to the purchase of additional mortgage-backed securities.

Period end loans on March 31, 2022 totaled $1.20 billion, which represented a decrease of $21.4 million from December 31, 2021, and an increase of $174.6 million, or 17%, from $1.03 billion at March 31, 2021. Quarterly average loans for the first quarter of 2022 increased $205.6 million, or 20%, from the first quarter of 2021 and $60.9 million, or 21% annualized, from the fourth quarter of 2021.

The allowance for loan losses on March 31, 2022 was $13.1 million, unchanged from December 31, 2021. The Allowance for Loan Losses to total loans was 1.08% on March 31, 2022, compared to 1.07% on December 31, 2021. Nonperforming loans to total loans was 0.27% on March 31, 2022, unchanged from December 31, 2021.

Period end deposits were $1.95 billion on March 31, 2022 compared to $1.98 billion at December 31, 2021 and an increase of $584 million, or 43%, compared to $1.36 billion at March 31, 2021. Quarterly average deposits for the first quarter of 2022 increased $655.4 million, or 51%, compared to the first quarter of 2021 and $80.5 million, or 17% annualized, from the fourth quarter of 2021.

Noninterest bearing deposits represented 48.9% of total deposits on March 31, 2022, compared to 50.2% on December 31, 2021 and 51.5% at March 31, 2021. The loan to deposit ratio was 62.3% on March 31, 2022 compared to 61.8% at December 31, 2021 and 75.5% at March 31, 2021.

About Avidbank

Avidbank Holdings, Inc. (OTC PINK:AVBH), headquartered in San Jose, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.

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. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and generally include the words "believes," "plans," "intends," "expects," "opportunity," "anticipates," "targeted," "continue," "remain," "will," "should," "may," or words of similar meaning. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions, are, by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from forward-looking statements for a variety of reasons, including, but not limited to local, regional, national and international economic conditions and events and the impact they may have on us and our customers, and in particular in our market areas; ability to attract deposits and other sources of liquidity; oversupply of property inventory and deterioration in values of California real estate, both residential and commercial; a prolonged slowdown or decline in construction activity; changes in the financial performance and/or condition of our borrowers; changes in the level of non-performing assets and charge-offs; the cost or effect of acquisitions we may make; the effect of changes in laws and regulations (including laws, regulations and judicial decisions concerning financial reform, capital requirements, taxes, banking, securities, employment, executive compensation, insurance, and information security) with which we and our subsidiaries must comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; ability to adequately underwrite for our asset based and corporate finance lending business lines; our ability to raise capital; inflation, interest rate, securities market and monetary fluctuations; cyber-security threats including loss of system functionality or theft or loss of data; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, or the effects of a pandemic; destabilization in international economies resulting from the European sovereign debt crisis; the effects of the Tax Cuts and Jobs Act; the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing and savings habits; technological changes; the ability to increase market share, retain customers and control expenses; ability to retain and attract key management and personnel; changes in the competitive environment among financial and bank holding companies and other financial service providers; continued volatility in the credit and equity markets and its effect on the general economy; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our management team; the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; our success at managing the risks involved in the foregoing items. We do not undertake, and specifically disclaim any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.

Contact:

Patrick Oakes
Executive Vice President and Chief Financial Officer
408-831-5653
poakes@avidbank.com

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SOURCE: Avidbank Holdings, Inc.