Avidbank Holdings, Inc. Announces Net Income for the First Quarter of 2024

SAN JOSE, CA / ACCESSWIRE / April 17, 2024 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced net income for the first quarter of 2024 of $5.2 million, or $0.69 per diluted share, compared to $303,000, or $0.04 per diluted share, for the fourth quarter of 2023 and $6.4 million, or $0.85 per diluted share, for the first quarter of 2023.

First Quarter 2024 Highlights

Period end deposits increased $103.5 million, or 25% annualized, from December 31, 2023, and $139.8 million, or 9%, from March 31, 2023.

Taxable equivalent net interest margin⁽¹⁾ was 3.54% in the first quarter of 2024, compared to 3.49% in the fourth quarter of 2023.

Loans increased $42.4 million, or 10% annualized, from December 31, 2023, and $218.5 million, or 14%, from March 31, 2023.

Annualized net charge-offs to average loans totaled 0.0% for the first quarter of 2024 and the fourth quarter of 2023. Nonperforming assets to total assets was 0.06% as of March 31, 2024 and December 31, 2023.

Book value per share was $21.41, an increase of $0.14, or 1%, from December 31, 2023 and an increase of $1.84, or 9%, from March 31, 2023.

"We are pleased with our solid start to 2024, with the focus of strengthening our balance sheet and improving our performance metrics. Our first quarter results include deposit growth of $104 million and loan growth of $42 million. This strong growth, along with the steps we took in the fourth quarter made an impact in both areas. Our net interest margin was 3.54% in the first quarter and has now expanded 18 basis points from the third quarter of 2023. Credit quality continues to remain strong with no net charge-offs in the first quarter and nonperforming assets totaling only 6 basis points of total loans," said Mark Mordell, Chairman and Chief Executive Officer.

"Our bankers along with our enhanced treasury management team have been focused on increasing our revenue growth over the last several quarters. This has resulted in the 52% increase in service charge and foreign exchange fee income since the first quarter of 2023," added Mr. Mordell.

Income Statement

Taxable equivalent net interest income⁽¹⁾ totaled $18.9 million for the first quarter of 2024, an increase of $465,000, or 3%, from the fourth quarter of 2023, and a decrease of $1.2 million, or 6%, from the first quarter of 2023. The taxable equivalent net interest margin was 3.54% in the first quarter of 2024, an increase of 5 basis points compared to the fourth quarter of 2023, and a decrease of 39 basis points compared to the first quarter of 2023. The increase in taxable equivalent net interest income and net interest margin compared to the prior quarter was primarily driven by an overall increase in loan balances and a decrease in investment securities. The decrease in taxable equivalent net interest margin compared to the same period one year ago was primarily driven by an increase in high-cost short-term borrowings replacing lower-cost deposits, interest bearing deposits replacing no-cost demand deposits, and an overall increase in deposit costs, partially offset by an increase in loan yields and average loan balances.

The yield on loans in the first quarter of 2024 was 7.28%, an increase of 3 basis points from the fourth quarter of 2023 and an increase of 61 basis points from the first quarter of 2023. The overall increase in loan yields compared to prior periods was primarily due to higher rates on new loans.

The cost of deposits in the first quarter of 2024 was 2.81%, an increase of 10 basis points from the fourth quarter of 2023 and an increase of 142 basis points from the first quarter of 2023. The cost of interest-bearing deposits in the first quarter of 2024 was 3.90% compared to 3.80% in the fourth quarter of 2023 and 2.38% in the first quarter of 2023. The increase in the cost of deposits compared to prior periods was primarily due to higher costs on new deposit accounts.

The provision for credit losses was $319,000 in the first quarter of 2024, compared to $1.27 million in the fourth quarter of 2023 and $185,000 in the first quarter of 2023. The provision decreased in the current quarter primarily due to an improving economic forecast in the first quarter of 2024 and lower relative loan growth compared to the fourth quarter of 2023. The provision for credit losses in the first quarter of 2024 included a $211,000 provision for credit losses on loans and a $108,000 provision for unfunded commitments.

Noninterest income was $1.3 million in the first quarter of 2024 compared to $(4.6) million in the fourth quarter of 2023 and $5,000 in the first quarter of 2023. The fourth quarter of 2023 included a $5.40 million loss on sale of securities, a $165,000 loss on the sale of a foreclosed property, and a loss of $116,000 from changes in the fair value of fund investments. The first quarter of 2023 included an $815,000 loss on the sale of securities.

Noninterest expense totaled $12.4 million for the first quarter of 2024, an increase of $877,000 compared to the fourth quarter of 2023. Much of the increase was due to seasonally higher FICA taxes and incentive expense. Salaries and benefits expense for the fourth quarter of 2023 included severance charges of $324,000. There were 141 full-time equivalent employees on March 31, 2024, compared to 143 on December 31, 2023.

Balance Sheet

Total assets were $2.26 billion as of March 31, 2024 compared to $2.23 billion at December 31, 2023, and $2.17 billion at March 31, 2023. Cash and cash equivalents were $90.2 million on March 31, 2024, compared to $81.4 million on December 31, 2023, and $134.1 million on March 31, 2023.

Period end loans on March 31, 2024, totaled $1.78 billion, an increase of $42.4 million, or 10% annualized, from December 31, 2023, and an increase of $218.5 million, or 14%, from March 31, 2023. The growth in loans during the first quarter of 2024 included an increase of $24.6 million in commercial loans and $22.4 million in construction loans. Quarterly average loans for the first quarter of 2024 increased $58.1million, or 3%, from the fourth quarter of 2023 and $201.6 million, or 13%, from the first quarter of 2023.

The allowance for credit losses on loans was $19.3 million on March 31, 2024, representing an increase of $211,000 from December 31, 2023. The allowance for credit losses on loans to total loans was 1.08% on March 31, 2024, compared to 1.10% on December 31, 2023. Nonperforming loans to total loans was 0.08% on March 31, 2024, unchanged from December 31, 2023.

Investment securities were $314.8 million as of March 31, 2024, compared to $325.3 million on December 31, 2023, and $386.9 million at March 31, 2023. In the fourth quarter of 2023, we sold $35.8 million of securities for a loss of $5.4 million. During the first quarter of 2023, we sold $25 million in available for sale mortgage-backed securities and all $32 million in held to maturity municipal securities.

Period end deposits were $1.76 billion on March 31, 2024, an increase of $103.5 million, or 6%, from December 31, 2023. The change in deposits during the first quarter of 2024 included a $23.9 million and a $21.6 million increase in interest-bearing checking and money market/savings deposits, respectively, as well as a $43.4 million increase in brokered deposits. Quarterly average deposits for the first quarter of 2024 were $1.72 billion, an increase of $16.1 million from the fourth quarter of 2023 and a decrease of $28.5 million from the first quarter of 2023.

Short-term borrowings on March 31, 2024, totaled $290.0 million, a decrease of $70.0 million, or 19%, compared to December 31, 2023. The short-term borrowings on March 31, 2024 included $244.0 million in borrowings from the Bank Term Funding Program (BTFP).

Book value per share was $21.41 on March 31, 2024, an increase of $0.14 compared to $21.27 on December 31, 2023. Total shareholders' equity totaled $167.1 million on March 31, 2024, an increase of $1.8 million compared to December 31, 2023. This included an increase in accumulated other comprehensive loss of $3.7 million.

⁽¹⁾ A Non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.

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, fund finance, and real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.

Non-GAAP Financial Measures

This news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to results presented in accordance with GAAP. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company's current quarter and year-to-date results and facilitate comparison of our performance with the performance of our peers. Where applicable, the Company has also presented comparable earnings information using GAAP financial measures. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

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 nonperforming 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 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
408-200-7390
[e-mail]

AVIDBANK HOLDINGS, INC. Selected Financial Data (Unaudited) (in thousands, except share and per share amounts)
		2024				2023
		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
INCOME HIGHLIGHTS
Net income		$	5,246			$	303			$	5,408			$	4,726			$	6,364
Loss on sale of securities, net of tax			-				3,888				-				-				595
Severance, net of income tax			-				233				-				-				-
BOLI surrender tax expense			-				478				-				-				-
Adjusted net income (1)		$	5,246			$	4,902			$	5,408			$	4,726			$	6,959
PER SHARE DATA
Basic earnings per share		$	0.71			$	0.04			$	0.74			$	0.65			$	0.87
Diluted earnings per share			0.69				0.04				0.72				0.63				0.85
Diluted earnings per share - adjusted (1)			0.69				0.65				0.72				0.63				0.93
Book value per share			21.41				21.27				18.83				19.55				19.57
PERFORMANCE MEASURES
Return on average assets			0.95	%			0.05	%			0.99	%			0.87	%			1.19	%
Return on average assets - adjusted (1)			0.95	%			0.89	%			0.99	%			0.87	%			1.30	%
Return on average equity			12.64	%			0.81	%			14.01	%			12.32	%			17.87	%
Taxable equivalent net interest margin			3.54	%			3.49	%			3.36	%			3.42	%			3.94	%
Efficiency ratio			61.62	%			83.68	%			58.75	%			56.05	%			55.21	%
Average loans to average deposits			101.85	%			99.41	%			97.49	%			97.57	%			88.70	%
CAPITAL
Tier 1 leverage ratio			9.88	%			9.77	%			9.84	%			9.55	%			9.33	%
Common equity tier 1 capital ratio			10.03	%			9.88	%			9.95	%			9.88	%			10.14	%
Tier 1 risk-based capital ratio			10.03	%			9.88	%			9.95	%			9.88	%			10.14	%
Total risk-based capital ratio			12.01	%			11.86	%			11.89	%			11.87	%			12.16	%
Tangible common equity ratio			7.40	%			7.41	%			6.61	%			6.83	%			6.95	%
SHARES OUTSTANDING
Number of common shares outstanding			7,803,900				7,770,439				7,731,404				7,712,278				7,703,748
Average common shares outstanding - basic			7,386,639				7,344,693				7,327,197				7,321,246				7,299,006
Average common shares outstanding - diluted			7,551,406				7,543,616				7,511,373				7,457,906				7,452,254
ASSET QUALITY
Allowance for credit losses to total loans			1.21	%			1.22	%			1.19	%			1.20	%			1.18	%
Nonperforming assets to total assets			0.06	%			0.06	%			0.70	%			0.70	%			0.66	%
Nonperforming loans to total loans			0.08	%			0.08	%			0.08	%			0.94	%			0.91	%
Net charge-offs to average loans (2)			0.00	%			0.00	%			0.00	%			0.03	%			0.00	%
AVERAGE BALANCES
Loans, net of deferred loan fees		$	1,756,770			$	1,698,690			$	1,640,080			$	1,589,372			$	1,555,207
Investment securities			319,440				337,808				365,244				382,860				443,870
Total assets			2,222,778				2,191,198				2,168,443				2,171,559				2,164,441
Deposits			1,724,845				1,708,789				1,682,329				1,628,975				1,753,295
Shareholders' equity			166,907				148,723				153,099				153,877				144,402
(1) A Non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.
(2) Annualized

AVIDBANK HOLDINGS, INC. Consolidated Balance Sheets (Unaudited) (in thousands)
		March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
Assets
Cash and due from banks		$	10,268			$	9,754			$	21,157			$	33,849			$	19,452
Due from Federal Reserve Bank
and interest-bearing deposits in banks			79,911				71,642				58,885				70,364				114,615
Total cash and cash equivalents			90,179				81,396				80,042				104,213				134,067
Investment securities - available for sale			314,793				325,320				345,547				371,753				386,947
Total investment securities			314,793				325,320				345,547				371,753				386,947
Loans, net of deferred loan fees			1,783,024				1,740,647				1,669,914				1,650,265				1,564,501
Allowance for credit losses on loans			(19,342	)			(19,131	)			(17,800	)			(17,636	)			(16,389	)
Loans, net of allowance for credit losses on loans			1,763,682				1,721,516				1,652,114				1,632,629				1,548,112
Bank owned life insurance			12,401				12,315				33,440				33,202				32,972
Premises and equipment, net			3,061				3,297				3,558				3,774				4,037
Other real estate owned			-				-				14,095				-				-
Accrued interest receivable and other assets			72,395				86,992				73,104				62,234				63,916
Total assets		$	2,256,511			$	2,230,836			$	2,201,900			$	2,207,805			$	2,170,051
Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing demand		$	477,728			$	472,517			$	490,289			$	593,246			$	605,093
Interest-bearing checking			764,766				740,902				784,757				717,116				335,410
Money market and savings			319,692				298,117				322,983				316,991				563,097
Time			56,140				46,676				30,880				46,794				61,645
Brokered			139,532				96,117				79,291				74,566				52,823
Total deposits			1,757,858				1,654,329				1,708,200				1,748,713				1,618,068
Subordinated debt, net			21,931				21,906				21,881				21,855				21,830
Short-term borrowings			290,000				360,000				300,000				264,000				359,000
Accrued interest payable and other liabilities			19,638				29,289				26,250				22,432				20,414
Total liabilities			2,089,427				2,065,524				2,056,331				2,057,000				2,019,312
Shareholders' Equity
Common stock			104,771				104,499				104,018				103,420				102,718
Retained earnings			114,934				109,688				109,386				103,979				99,252
Accumulated other comprehensive (loss)			(52,621	)			(48,875	)			(67,835	)			(56,594	)			(51,231	)
Total shareholders' equity			167,084				165,312				145,569				150,805				150,739
Total liabilities and shareholders' equity		$	2,256,511			$	2,230,836			$	2,201,900			$	2,207,805			$	2,170,051

AVIDBANK HOLDINGS, INC. Consolidated Statements of Income (Unaudited) (in thousands, except share and per share amounts)
		Three months ended
		March 31,2024				December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
Interest and fees on loans		$	31,828			$	31,078			$	29,125			$	26,713			$	25,577
Interest on investment securities			1,824				1,979				2,009				2,058				2,612
Federal Home Loan Bank dividends (1)			190				172				171				185				163
Other interest income			819				654				662				1,196				628
Total interest income			34,661				33,883				31,967				30,152				28,980
Deposit interest expense			12,034				11,692				10,704				7,989				6,030
Interest on short-term borrowings			3,442				3,467				3,480				4,189				2,673
Interest on long-term debt			300				300				300				300				300
Total interest expense			15,776				15,459				14,484				12,478				9,003
Net interest income			18,885				18,424				17,483				17,674				19,977
Provision for credit losses			319				1,266				120				1,471				185
Net interest income after provision for
credit losses			18,566				17,158				17,363				16,203				19,792
Service charges and bank fees			618				613				560				545				490
Foreign exchange income			251				210				53				66				83
Income from bank owned life insurance			187				201				238				230				225
Gain/(loss) on sale of securities			-				(5,399	)			-				-				(815	)
Warrant and success fee income			-				15				8				-				-
Other investment income			155				(116	)			142				37				(6	)
Loss on sale of ORE			-				(165	)			-				-				-
Other income			72				19				62				24				28
Total noninterest income			1,283				(4,622	)			1,063				902				5
Salaries and benefit expenses			8,794				8,137				7,460				7,021				7,954
Occupancy and equipment expenses			1,028				986				1,002				1,005				961
Data processing			564				499				538				477				528
Regulatory assessments			446				403				478				555				226
Legal and professional fees			611				531				483				394				431
Other operating expenses			984				994				935				960				933
Total noninterest expense			12,427				11,550				10,896				10,412				11,033
Income before income taxes			7,422				986				7,530				6,693				8,764
Provision for income taxes			2,176				683				2,122				1,967				2,400
Net income		$	5,246			$	303			$	5,408			$	4,726			$	6,364
Basic earnings per common share		$	0.71			$	0.04			$	0.74			$	0.65			$	0.87
Diluted earnings per common share			0.69				0.04				0.72				0.63				0.85
Weighted average shares - basic			7,386,639				7,344,693				7,327,197				7,321,246				7,299,006
Weighted average shares - diluted			7,551,406				7,543,616				7,511,373				7,457,906				7,452,254
(1) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented.

AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (dollars in thousands; taxable equivalent)
		Three months ended
		March 31, 2024												December 31, 2023
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates				Balance				Expense				Rates
Assets
Interest earning assets:
Loans (1)		$	1,758,201			$	31,828				7.28	%		$	1,700,094			$	31,078				7.25	%
Fed funds sold/interest bearing deposits			59,391				819				5.46	%			47,906				654				5.34	%
Investment securities
Taxable investment securities			317,572				1,802				2.28	%			337,021				1,971				2.32	%
Non-taxable investment securities (2)			1,868				28				5.93	%			787				10				5.04	%
Total investment securities			319,440				1,830				2.30	%			337,808				1,981				2.33	%
FHLB stock (3)			8,409				190				9.11	%			8,409				172				8.10	%
Total interest-earning assets			2,145,441				34,667				6.50	%			2,094,217				33,885				6.42	%
Noninterest-earning assets:
Cash and due from banks			13,038												12,528
All other assets (4)			64,299												84,453
Total assets		$	2,222,778											$	2,191,198
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	746,916			$	7,439				4.01	%		$	766,856			$	7,650				3.96	%
Money market and savings			303,593				2,270				3.01	%			305,240				2,218				2.88	%
Time			56,783				555				3.93	%			29,787				252				3.36	%
Brokered			134,453				1,770				5.29	%			119,605				1,572				5.21	%
Total interest-bearing deposits			1,241,745				12,034				3.90	%			1,221,488				11,692				3.80	%
Short-term borrowings			282,066				3,442				4.91	%			281,457				3,467				4.89	%
Subordinated debt			21,917				300				5.51	%			21,893				300				5.44	%
Total interest-bearing liabilities			1,545,728				15,776				4.10	%			1,524,838				15,459				4.02	%
Noninterest-bearing liabilities:
Demand deposits			483,100												487,301
Accrued expenses and other liabilities			27,043												30,336
Shareholders' equity			166,907												148,723
Total liabilities and
shareholders' equity		$	2,222,778											$	2,191,198
Net interest spread											2.40	%											2.40	%
Net interest income and margin (5)						$	18,891				3.54	%						$	18,426				3.49	%
Non-taxable equivalent net interest margin											3.54	%											3.49	%
Cost of deposits		$	1,724,845			$	12,034				2.81	%		$	1,708,789			$	11,692				2.71	%
(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred loan fees / (costs) of $455 thousand and $449 thousand, respectively. (2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. (3) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented. (4) Average allowance for credit losses on loans of $19.1 million and $17.8 million, respectively, is included as a contra asset. (5) Net interest margin is net interest income divided by total interest-earning assets.

AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (dollars in thousands; taxable equivalent)
		Three months ended
		March 31, 2024												March 31, 2023
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates				Balance				Expense				Rates
Assets
Interest earning assets:
Loans (1)		$	1,758,201			$	31,828				7.28	%		$	1,555,207			$	25,577				6.67	%
Fed funds sold/interest bearing deposits			59,391				819				5.46	%			56,303				628				4.52	%
Investment securities
Taxable investment securities			317,572				1,802				2.28	%			414,380				2,348				2.30	%
Non-taxable investment securities (2)			1,868				28				5.93	%			29,490				334				4.59	%
Total investment securities			319,440				1,830				2.30	%			443,870				2,682				2.45	%
FHLB stock (3)			8,409				190				9.11	%			7,608				163				8.69	%
Total interest-earning assets			2,145,441				34,667				6.50	%			2,062,988				29,050				5.71	%
Noninterest-earning assets:
Cash and due from banks			13,038												22,992
All other assets (4)			64,299												78,461
Total assets		$	2,222,778											$	2,164,441
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	746,916			$	7,439				4.01	%		$	30,101			$	56				0.75	%
Money market and savings			303,593				2,270				3.01	%			919,292				5,593				2.47	%
Time			56,783				555				3.93	%			65,830				223				1.37	%
Brokered			134,453				1,770				5.29	%			13,178				158				4.86	%
Total interest-bearing deposits			1,241,745				12,034				3.90	%			1,028,401				6,030				2.38	%
Short-term borrowings			282,066				3,442				4.91	%			219,550				2,673				4.94	%
Subordinated debt			21,917				300				5.51	%			21,816				300				5.58	%
Total interest-bearing liabilities			1,545,728				15,776				4.10	%			1,269,767				9,003				2.88	%
Noninterest-bearing liabilities:
Demand deposits			483,100												724,894
Accrued expenses and other liabilities			27,043												25,378
Shareholders' equity			166,907												144,402
Total liabilities and
shareholders' equity		$	2,222,778											$	2,164,441
Net interest spread											2.40	%											2.83	%
Net interest income and margin (5)						$	18,891				3.54	%						$	20,047				3.94	%
Non-taxable equivalent net interest margin											3.54	%											3.93	%
Cost of deposits		$	1,724,845			$	12,034				2.81	%		$	1,753,295			$	6,030				1.39	%
(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred loan fees / (costs) of $455 thousand and $530 thousand, respectively. (2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate. (3) Federal Home Loan Bank dividends have been reclassified from total noninterest income to total interest income for all periods presented. (4) Average allowance for credit losses on loans of $19.1 million and $16.2 million, respectively, is included as a contra asset. (5) Net interest margin is net interest income divided by total interest-earning assets.

AVIDBANK HOLDINGS, INC. Loans and Credit Data (Unaudited) (dollars in thousands)
		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,				Current Quarter				Year over Year
		2024				2023				2023				2023				2023				Change				Change
Commercial loans		$	783,171			$	758,552			$	731,206			$	716,355			$	642,826			$	24,619			$	140,345
Commercial real estate
Multi-family			198,017				194,981				184,147				193,014				188,411				3,036				9,606
Owner Occupied			137,426				139,059				135,950				132,078				137,118				(1,633	)			308
Non-Owner Occupied			388,141				393,809				386,629				376,467				350,730				(5,668	)			37,411
Construction and land			259,562				237,124				214,474				215,865				233,162				22,438				26,400
Residential			16,187				16,816				17,311				16,220				11,969				(629	)			4,218
Total real estate loans			999,333				981,789				938,511				933,644				921,390				17,544				77,943
Other loans			520				306				197				266				285				214				235
Total loans		$	1,783,024			$	1,740,647			$	1,669,914			$	1,650,265			$	1,564,501			$	42,377			$	218,523
Allowance for Credit Losses on Loans
Balance, beginning of quarter		$	19,131			$	17,800			$	17,636			$	16,389			$	16,481
Adoption of ASU 2016-13			-				-				-				-				(249	)
Provision for loan losses			211				1,331				164				1,347				157
Charge-offs			-				-				-				(100	)			-
Recoveries			-				-				-				-				-
Balance, end of quarter		$	19,342			$	19,131			$	17,800			$	17,636			$	16,389
Allowance for Credit Losses
on Unfunded Commitments
Balance, beginning of quarter		$	2,060			$	2,125			$	2,169			$	2,045			$	449
Adoption of ASU 2016-13			-				-				-				-				1,568
Provision for unfunded commitments			108				(65	)			(44	)			124				28
Balance, end of quarter		$	2,168			$	2,060			$	2,125			$	2,169			$	2,045
Total allowance for credit losses -
loans and unfunded commitments		$	21,510			$	21,191			$	19,925			$	19,805			$	18,434
Provision for credit losses under CECL
Provision for loan losses		$	211			$	1,331			$	164			$	1,347			$	157
Provision for unfunded commitments			108				(65	)			(44	)			124				28
Total provision for credit losses		$	319			$	1,266			$	120			$	1,471			$	185
Nonperforming Assets
Loans accounted for on a non-accrual basis		$	1,370			$	1,378			$	1,385			$	15,485			$	14,240
Loans past due 90 days or more and still accruing			-				-				-				-				-
Nonperforming loans			1,370				1,378				1,385				15,485				14,240
Other real estate owned			-				-				14,095				-				-
Nonperforming assets		$	1,370			$	1,378			$	15,480			$	15,485			$	14,240
Nonperforming Loans by Type:
Commercial		$	1,370			$	1,378			$	1,385			$	1,390			$	145
Construction and land			-				-				-				14,095				14,095
Total Nonperforming loans		$	1,370			$	1,378			$	1,385			$	15,485			$	14,240
Asset Quality Ratios
Allowance for credit losses on loans to total loans			1.08	%			1.10	%			1.07	%			1.07	%			1.05	%
Allowance for credit losses to total loans			1.21	%			1.22	%			1.19	%			1.20	%			1.18	%
Allowance for credit losses on loans to nonperforming loans			1411.82	%			1388.32	%			1285.20	%			113.89	%			115.09	%
Nonperforming assets to total assets			0.06	%			0.06	%			0.70	%			0.70	%			0.66	%
Nonperforming loans to total loans			0.08	%			0.08	%			0.08	%			0.94	%			0.91	%
Net quarterly charge-offs to average loans (1)			0.00	%			0.00	%			0.00	%			0.03	%			0.00	%
(1) Annualized

AVIDBANK HOLDINGS, INC. Deposits (Unaudited) (dollars in thousands)
Period End Deposits		March 31, 2024				Dec. 31, 2023				Sept. 30, 2023				June 30, 2023				March 31, 2023				Current Quarter Change				Year over Year Change
Non-interest-bearing demand		$	477,728			$	472,517			$	490,289			$	593,246			$	605,093			$	5,211			$	(127,365	)
Interest-bearing checking			764,766				740,902				784,757				717,116				335,410				23,864				429,356
Money market and savings			319,692				298,117				322,983				316,991				563,097				21,575				(243,405	)
Time			56,140				46,676				30,880				46,794				61,645				9,464				(5,505	)
Brokered			139,532				96,117				79,291				74,566				52,823				43,415				86,709
Total deposits		$	1,757,858			$	1,654,329			$	1,708,200			$	1,748,713			$	1,618,068			$	103,529			$	139,791
Average Deposits		March 31, 2024				Dec. 31, 2023				Sept. 30, 2023				June 30, 2023				March 31, 2023				Current Quarter Change				Year over Year Change
Non-interest-bearing demand		$	483,100			$	487,301			$	520,573			$	621,603			$	724,894			$	(4,201	)		$	(241,794	)
Interest-bearing checking			746,916				766,856				748,016				486,367				87,198				(19,940	)			659,718
Money market and savings			303,593				305,240				296,865				389,036				862,195				(1,647	)			(558,602	)
Time			56,783				29,787				41,455				48,650				65,830				26,996				(9,047	)
Brokered			134,453				119,605				75,420				83,319				13,178				14,848				121,275
Total deposits		$	1,724,845			$	1,708,789			$	1,682,329			$	1,628,975			$	1,753,295			$	16,056			$	(28,450	)

AVIDBANK HOLDINGS, INC. Non-GAAP Performance and Financial Measures Reconciliation (Unaudited) (in thousands, except share and per share amounts)
		2024				2023
Non-GAAP adjusted net income reconciliation		First Quarter				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
Net income - GAAP		$	5,246			$	303			$	5,408			$	4,726			$	6,364
Loss on sale of securities, net of income tax			-				3,888				-				-				595
Severance, net of income tax			-				233				-				-				-
BOLI surrender tax expense			-				478				-				-				-
Adjusted net income (non-GAAP)		$	5,246			$	4,902			$	5,408			$	4,726			$	6,959
Non-GAAP adjusted net income reconciliation
Net income - GAAP		$	5,246			$	303			$	5,408			$	4,726			$	6,364
Loss on sale of securities			-				5,399				-				-				815
Tax impact of loss on sale of securities			-				(1,511	)			-				-				(220	)
Severance			-				324				-				-				-
Tax impact of severance			-				(91	)			-				-				-
BOLI surrender tax expense			-				478				-				-				-
Adjusted net income (non-GAAP)		$	5,246			$	4,902			$	5,408			$	4,726			$	6,959
Non-GAAP adjusted diluted earnings per share reconciliation
Diluted earnings per share - GAAP		$	0.69			$	0.04			$	0.72			$	0.63			$	0.85
Loss on sale of securities, net of income tax			-				0.52				-				-				0.08
Severance, net of income tax			-				0.03				-				-				-
BOLI surrender tax expense			-				0.06				-				-				-
Diluted earnings per share - adjusted (non-GAAP)		$	0.69			$	0.65			$	0.72			$	0.63			$	0.93
Non-GAAP adjusted return on average assets reconciliation
Net income - GAAP		$	5,246			$	303			$	5,408			$	4,726			$	6,364
Average total assets			2,222,778				2,191,198				2,168,443				2,171,559				2,164,441
Return on average assets - GAAP			0.95	%			0.05	%			0.99	%			0.87	%			1.19	%
Adjusted net income (non-GAAP)		$	5,246			$	4,902			$	5,408			$	4,726			$	6,959
Average total assets			2,222,778				2,191,198				2,168,443				2,171,559				2,164,441
Return on average assets - adjusted (non-GAAP)			0.95	%			0.89	%			0.99	%			0.87	%			1.30	%
Non-GAAP taxable equivalent net interest income reconciliation
Net interest income - GAAP		$	18,885			$	18,424			$	17,483			$	17,674			$	19,977
Taxable equivalent adjustment			6				2				-				-				70
Net interest income - taxable equivalent (non-GAAP)		$	18,891			$	18,426			$	17,483			$	17,674			$	20,047
Non-GAAP taxable equivalent net interest margin reconciliation
Net interest margin - GAAP			3.54	%			3.49	%			3.36	%			3.42	%			3.93	%
Impact of taxable equivalent adjustment			-				-				-				-				0.01
Net interest margin - taxable equivalent (non-GAAP)			3.54	%			3.49	%			3.36	%			3.42	%			3.94	%

SOURCE: Avidbank Holdings, Inc.

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The Avidbank Holdings Stock at the time of publication of the news with a raise of +0,49 % to 18,59USD on Nasdaq OTC stock exchange (17. April 2024, 23:20 Uhr).