How did AVBH's book value per share change in Q3 2024?

AVBH's book value per share increased by $2.18, or 10%, to $23.95 from June 30, 2024.

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

(Neutral)

Rhea-AI Summary

Avidbank Holdings, Inc. (OTC PINK:AVBH) reported net income of $5.8 million for the third quarter of 2024, or $0.77 per diluted share. This represents an increase from both the previous quarter and the same period last year. Key highlights include:

- Return on average assets improved to 1.02%
- Book value per share increased by 10% to $23.95
- Loan to deposit ratio improved to 94.0%
- Period end deposits increased by $163.0 million, or 38% annualized
- Consolidated total risk-based capital improved to 12.92%

The company made progress in strengthening its balance sheet, with strong growth in core deposits and improved capital ratios. Loan growth was slightly impacted by decreased new originations and increased payoffs. The provision for credit losses decreased significantly compared to the previous quarter.

Positive

Net income increased to $5.8 million, up from $3.5 million in Q2 2024 and $5.4 million in Q3 2023
Book value per share rose 10% to $23.95 from June 30, 2024
Period end deposits increased $163.0 million, or 38% annualized, from June 30, 2024
Consolidated total risk-based capital improved to 12.92% from 12.17% at June 30, 2024
Short-term borrowings decreased by $170.0 million compared to June 20, 2024
Taxable equivalent net interest income increased by $1.1 million, or 6%, from Q3 2023
Noninterest income increased to $1.8 million from $1.1 million in Q2 2024

Negative

Loan growth decreased slightly due to lower new originations and higher payoffs
Net interest margin decreased by 4 basis points compared to Q2 2024
Cost of deposits increased to 3.22%, up 13 basis points from Q2 2024 and 70 basis points from Q3 2023
Noninterest expense increased by $339,000 compared to Q2 2024

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10/21/2024 - 06:30 AM

SAN JOSE, CA / ACCESSWIRE / October 21, 2024 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced net income for the third quarter of 2024 of $5.8 million, or $0.77 per diluted share, compared to $3.5 million, or $0.46 per diluted share, for the second quarter of 2024 and $5.4 million, or $0.72 per diluted share, for the third quarter of 2023.

Third Quarter 2024 Highlights

Return on average assets was 1.02% compared to 0.62% in the second quarter of 2024 and 0.99% in the third quarter of 2023.
Book value per share was $23.95, an increase of $2.18, or 10%, from June 30, 2024, and an increase of $5.12, or 27%, from September 30, 2023.
The loan to deposit ratio improved to 94.0%, from 103.9% at June 30, 2024 and 97.8% at September 30, 2023.
Period end deposits increased $163.0 million, or 38% annualized, from June 30, 2024, and $247.2 million, or 15%, from December 31, 2023. Brokered deposits decreased $22.7 million from June 30, 2024 and $21.3 million from September 30, 2023.
Annualized net charge-offs to average loans totaled 0.02% for the third quarter of 2024 and 0.0% for the second quarter of 2024. Nonperforming assets to total assets totaled 0.16% as of September 30, 2024, compared to 0.16% as of June 30, 2024.
Consolidated total risk-based capital improved to 12.92% from 12.17% at June 30, 2024. This improvement included the benefit from a portion of our multifamily loan portfolio that qualifies for a reduced risk-weighted asset treatment.
Short-term borrowings were down $170.0 million compared to June 20, 2024, as increased core deposits enabled paydowns of more expensive sources of funds.

"During the third quarter, we continued to make solid progress on our overall goal for this year of strengthening our balance sheet. This included another quarter of strong growth in core deposits and significant improvement in our capital ratios. Total deposits, excluding brokered, increased approximately $186 million compared to the second quarter. Our capital position continues to improve, with a tangible common equity ratio of 8.21% and a total risk-based capital ratio of 12.92%. We also experienced a 10% increase in our tangible book value per share during the third quarter to $23.95 due to improved profitability and a lower unrealized loss on the investment portfolio," said Mark D. Mordell, Chairman and Chief Executive Officer.

"Loan growth in the third quarter was impacted by a slight decrease in the amount of new originations along with an elevated level of loan payoffs and paydowns on lines of credit. We are optimistic regarding both our loan and deposit pipelines as we enter the fourth quarter," added Mr. Mordell.

Income Statement

Net income totaled $5.8 million for the third quarter of 2024, an increase of $2.4 million from the second quarter of 2024, and an increase of $438,000 from the third quarter of 2023. A $3.0 million decrease in the provision for credit losses was a primary contributor to the increase compared to the second quarter of 2024.

Taxable equivalent net interest income⁽¹⁾ totaled $18.6 million for the third quarter of 2024, an increase of $88,000 from the second quarter of 2024, and an increase of $1.1 million, or 6%, from the third quarter of 2023. The taxable equivalent net interest margin was 3.35% in the third quarter of 2024, a decrease of 4 basis points compared to the second quarter of 2024, and a decrease of 1 basis point compared to the third quarter of 2023. The decrease in taxable equivalent net interest margin compared to the prior quarter was primarily driven by a decrease in noninterest bearing deposits and an overall increase in the cost of deposits.

The yield on loans in the third quarter of 2024 was 7.38%, an increase of 1 basis point from the second quarter of 2024 and an increase of 64 basis points from the third 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 third quarter of 2024 was 3.22%, an increase of 13 basis points from the second quarter of 2024 and an increase of 70 basis points from the third quarter of 2023. The cost of interest-bearing deposits in the third quarter of 2024 was 4.16% compared to 4.11% in the second quarter of 2024 and 3.66% in the third quarter of 2023.

The provision for credit losses was $0 in the third quarter of 2024, compared to $3.0 million in the second quarter of 2024 and $120,000 in the third quarter of 2023. The provision was higher in the second quarter of 2024 primarily due to the addition of a $2.3 million nonaccrual loan.

Noninterest income was $1.8 million in the third quarter of 2024 compared to $1.1 million in the second quarter of 2024 and $1.1 million in the third quarter of 2023. The increase in other income was primarily driven by $475,000 in proceeds received from a settlement related to a previously sold foreclosed property.

Noninterest expense totaled $12.1 million for the third quarter of 2024, an increase of $339,000 compared to the second quarter of 2024 and an increase of $1.2 million from the third quarter of 2023. The increase from the second quarter was primarily due to a higher personnel expense. There were 146 full-time equivalent employees on September 30, 2024, compared to 144 on June 30, 2024.

Balance Sheet

Total assets were $2.30 billion as of September 30, 2024, compared to $2.29 billion as of June 30, 2024, and $2.20 billion at September 30, 2023. Cash and cash equivalents were $136.5 million on September 30, 2024, compared to $111.7 million on June 30, 2024, and $80.0 million on September 30, 2023.

Period end loans on September 30, 2024, totaled $1.79 billion, a decrease of $19.9 million, or 4% annualized, from June 30, 2024, and an increase of $116.8 million, or 7%, from September 30, 2023. The reduction in loans during the third quarter of 2024 included a decrease of $15.2 million in commercial loans and a decrease of $16.2 million in owner occupied commercial real estate loans, partially offset by an increase of $10.4 million and $10.1 million in construction and residential loans, respectively. Quarterly average loans for the third quarter of 2024 decreased $9.3 million, or 1%, from the second quarter of 2024 and increased $164.0 million, or 10%, from the third quarter of 2023.

The allowance for credit losses on loans was $22.3 million on September 30, 2024, representing a decrease of $95,000 from June 30, 2024. The allowance for credit losses on loans to total loans was 1.25% on September 30, 2024, compared to 1.24% on June 30, 2024. Nonperforming loans to total loans was 0.20% on September 30, 3024 and June 30, 2024.

Investment securities were $316.7 million as of September 30, 2024, compared to $308.7 million on June 30, 2024, and $345.5 million at September 30, 2023.

Period end deposits were $1.90 billion on September 30, 2024, an increase of $163.0 million, or 38% annualized, from June 30, 2024. The change in deposits during the third quarter of 2024 included a $186 million increase in interest-bearing checking, offset by a $24.2 million decrease in time deposits and a $22.7 million decrease in brokered deposits. Quarterly average deposits for the third quarter of 2024 were $1.81 billion, an increase of $48.6 million from the second quarter of 2024, and an increase of $123.6 million from the third quarter of 2023.

Short-term borrowings on September 30, 2024, totaled $160.0 million, a decrease of $170.0 million, or 52%, compared to June 30, 2024. The short-term borrowings on September 30, 2024 included $70.0 million in borrowings from the Bank Term Funding Program (BTFP).

Book value per share was $23.95 on September 30, 2024, an increase of $2.18 compared to $21.77 on June 30, 2024. Total shareholders' equity was $188.5 million on September 30, 2024, an increase of $17.1 million compared to June 30, 2024. This included an increase in retained earnings of $5.8 million and a decrease in accumulated other comprehensive loss of $10.5 million compared to June 30, 2024.

(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
IR@avidbank.com

AVIDBANK HOLDINGS, INC. Selected Financial Data (Unaudited) (in thousands, except share and per share amounts)
																Nine months ended
	2024									2023						September 30,
	Third			Second			First			Fourth			Third
	Quarter			Quarter			Quarter			Quarter			Quarter			2024			2023
INCOME HIGHLIGHTS
Net income	$	5,846		$	3,466		$	5,246		$	303		$	5,408		$	14,558		$	16,498
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⁾	$	5,846		$	3,466		$	5,246		$	4,902		$	5,408		$	14,558		$	17,093

PER SHARE DATA
Basic earnings per share	$	0.79		$	0.47		$	0.71		$	0.04		$	0.74		$	1.96		$	2.26
Diluted earnings per share		0.77			0.46			0.69			0.04			0.72			1.92			2.21
Diluted earnings per share - adjusted ⁽¹⁾		0.77			0.46			0.69			0.65			0.72			1.92			2.29
Book value per share		23.95			21.77			21.41			21.27			18.83			23.95			18.83

PERFORMANCE MEASURES
Return on average assets ⁽²⁾		1.02	%		0.62	%		0.95	%		0.05	%		0.99	%		0.86	%		1.02	%
Return on average assets - adjusted ⁽¹⁾⁽²⁾		1.02	%		0.62	%		0.95	%		0.89	%		0.99	%		0.86	%		1.05	%
Return on average equity ⁽²⁾		12.97	%		8.35	%		12.64	%		0.81	%		14.01	%		11.37	%		14.66	%
Net interest margin		3.35	%		3.39	%		3.54	%		3.49	%		3.36	%		3.42	%		3.55	%
Efficiency ratio		59.29	%		59.92	%		61.62	%		83.68	%		58.75	%		60.27	%		56.64	%
Average loans to average deposits		99.90	%		103.19	%		101.85	%		99.41	%		97.49	%		101.62	%		94.51	%

CAPITAL
Tier 1 leverage ratio		9.93	%		9.64	%		9.88	%		9.77	%		9.84	%		9.93	%		9.84	%
Common equity tier 1 capital ratio		10.75	%		10.08	%		10.03	%		9.88	%		9.95	%		10.75	%		9.95	%
Tier 1 risk-based capital ratio		10.75	%		10.08	%		10.03	%		9.88	%		9.95	%		10.75	%		9.95	%
Total risk-based capital ratio		12.92	%		12.17	%		12.01	%		11.86	%		11.89	%		12.92	%		11.89	%
Tangible common equity ratio		8.21	%		7.50	%		7.40	%		7.41	%		6.61	%		8.21	%		6.61	%

SHARES OUTSTANDING
Number of common shares outstanding		7,871,818			7,876,082			7,803,900			7,770,439			7,731,404			7,871,818			7,731,404
Average common shares outstanding - basic		7,434,726			7,426,949			7,386,639			7,344,693			7,327,197			7,416,173			7,315,920
Average common shares outstanding - diluted		7,622,428			7,578,613			7,551,406			7,543,616			7,511,373			7,584,349			7,472,158

ASSET QUALITY
Allowance for credit losses to total loans		1.37	%		1.36	%		1.21	%		1.22	%		1.19	%		1.37	%		1.19	%
Nonperforming assets to total assets		0.16	%		0.16	%		0.06	%		0.06	%		0.70	%		0.16	%		0.70	%
Nonperforming loans to total loans		0.20	%		0.20	%		0.08	%		0.08	%		0.08	%		0.20	%		0.08	%
Net charge-offs to average loans ⁽²⁾		0.02	%		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%

AVERAGE BALANCES
Loans, net of deferred loan fees	$	1,804,107		$	1,813,422		$	1,756,770		$	1,698,690		$	1,640,080		$	1,791,479		$	1,595,197
Investment securities		311,450			307,294			319,440			337,808			365,244			312,723			397,037
Total assets		2,272,623			2,265,583			2,222,778			2,191,198			2,168,443			2,253,729			2,168,162
Deposits		1,805,935			1,757,320			1,724,845			1,708,789			1,682,329			1,762,857			1,687,940
Shareholders' equity		179,260			166,874			166,907			148,723			153,099			171,043			150,491

(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)

	September 30,			June 30,			March 31,			December 31,			September 30,
Assets	2024			2024			2024			2023			2023
Cash and due from banks	$	15,172		$	13,750		$	9,971		$	9,546		$	20,456
Due from Federal Reserve Bank
and interest-bearing deposits in banks		121,361			97,974			80,208			71,850			59,586
Total cash and cash equivalents		136,533			111,724			90,179			81,396			80,042

Investment securities - available for sale		316,741			308,661			314,793			325,320			345,547
Total investment securities		316,741			308,661			314,793			325,320			345,547

Loans, net of deferred loan fees		1,786,756			1,806,607			1,783,024			1,740,647			1,669,914
Allowance for credit losses on loans		(22,315	)		(22,410	)		(19,342	)		(19,131	)		(17,800	)
Loans, net of allowance for credit losses on loans		1,764,441			1,784,197			1,763,682			1,721,516			1,652,114

Bank owned life insurance		12,580			12,490			12,401			12,315			33,440
Premises and equipment, net		2,549			2,810			3,061			3,297			3,558
Other real estate owned		-			-			-			-			14,095
Accrued interest receivable and other assets		62,625			67,139			72,395			86,992			73,104
Total assets	$	2,295,469		$	2,287,021		$	2,256,511		$	2,230,836		$	2,201,900

Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing demand	$	405,528		$	405,644		$	477,728		$	472,517		$	490,289
Interest-bearing checking		1,026,898			840,839			764,766			740,902			784,757
Money market and savings		336,166			312,162			319,692			298,117			322,983
Time		75,033			99,239			56,140			46,676			30,880
Brokered		57,903			80,608			139,532			96,117			79,291
Total deposits		1,901,528			1,738,492			1,757,858			1,654,329			1,708,200

Subordinated debt, net		21,982			21,957			21,931			21,906			21,881
Short-term borrowings		160,000			330,000			290,000			360,000			300,000
Accrued interest payable and other liabilities		23,438			25,123			19,638			29,289			26,250
Total liabilities		2,106,948			2,115,572			2,089,427			2,065,524			2,056,331

Shareholders' Equity
Common stock		106,169			105,487			104,771			104,499			104,018
Retained earnings		124,246			118,400			114,934			109,688			109,386
Accumulated other comprehensive (loss)		(41,894	)		(52,438	)		(52,621	)		(48,875	)		(67,835	)
Total shareholders' equity		188,521			171,449			167,084			165,312			145,569

Total liabilities and shareholders' equity	$	2,295,469		$	2,287,021		$	2,256,511		$	2,230,836		$	2,201,900

AVIDBANK HOLDINGS, INC. Consolidated Statements of Income (Unaudited) (in thousands, except share and per share amounts)
	Three months ended											Nine months ended
	Sept. 30,		June 30,		March 31,		Dec. 31,			Sept. 30,
	2024		2024		2024		2023			2023		2024		2023
Interest and fees on loans	$	33,488	$	33,255	$	31,828	$	31,078		$	29,125	$	98,570	$	81,416
Interest on investment securities		1,767		1,801		1,824		1,979			2,009		5,392		6,679
Federal Home Loan Bank dividends ⁽¹⁾		183		193		190		172			171		567		519
Other interest income		1,198		951		819		654			662		2,968		2,486
Total interest income		36,636		36,200		34,661		33,883			31,967		107,497		91,100

Deposit interest expense		14,602		13,494		12,034		11,692			10,704		40,130		24,722
Interest on short-term borrowings		3,121		3,880		3,442		3,467			3,480		10,443		10,342
Interest on long-term debt		300		300		300		300			300		901		901
Total interest expense		18,023		17,674		15,776		15,459			14,484		51,474		35,965
Net interest income		18,613		18,526		18,885		18,424			17,483		56,023		55,135

Provision for credit losses		-		2,998		319		1,266			120		3,317		1,776
Net interest income after
provision for credit losses		18,613		15,528		18,566		17,158			17,363		52,706		53,359

Service charges and bank fees		675		658		618		613			560		1,951		1,597
Foreign exchange income		246		208		251		210			53		706		201
Income from bank owned life insurance		90		137		187		201			238		415		693
Gain/(loss) on sale of securities		-		-		-		(5,399	)		-		-		(815	)
Warrant and success fee income		-		-		-		15			8		-		8
Other investment income		240		59		155		(116	)		142		454		173
Loss on sale of ORE		-		-		-		(165	)		-		-		-
Other income		539		36		72		19			62		644		112
Total noninterest income		1,790		1,098		1,283		(4,622	)		1,063		4,170		1,969

Salaries and benefit expenses		8,336		7,980		8,794		8,137			7,460		25,111		22,435
Occupancy and equipment expenses		1,033		1,039		1,028		986			1,002		3,099		2,967
Data processing		638		597		564		499			538		1,799		1,542
Regulatory assessments		528		568		446		403			478		1,542		1,260
Legal and professional fees		534		541		611		531			483		1,686		1,308
Other operating expenses		1,028		1,033		984		994			935		3,043		2,829
Total noninterest expense		12,097		11,758		12,427		11,550			10,896		36,280		32,341

Income before income taxes		8,306		4,868		7,422		986			7,530		20,596		22,987
Provision for income taxes		2,460		1,402		2,176		683			2,122		6,038		6,489
Net income	$	5,846	$	3,466	$	5,246	$	303		$	5,408	$	14,558	$	16,498

Basic earnings per common share	$	0.79	$	0.47	$	0.71	$	0.04		$	0.74	$	1.96	$	2.26
Diluted earnings per common share		0.77		0.46		0.69		0.04			0.72		1.92		2.21

Weighted average shares - basic		7,434,726		7,426,949		7,386,639		7,344,693			7,327,197		7,416,173		7,315,920
Weighted average shares - diluted		7,622,428		7,578,613		7,551,406		7,543,616			7,511,373		7,584,349		7,472,158

(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)
	Three months ended
	September 30, 2024							June 30, 2024
	Average Balance		Interest Income/ Expense		Yields or Rates ⁽⁶⁾			Average Balance		Interest Income/ Expense		Yields or Rates ⁽⁶⁾


Assets
Interest earning assets:
Loans ⁽¹⁾	$	1,805,430	$	33,488		7.38	%	$	1,814,803	$	33,255		7.37	%
Fed funds sold/interest bearing deposits		87,228		1,198		5.46	%		70,491		951		5.43	%
Investment securities
Taxable investment securities		309,624		1,745		2.24	%		305,492		1,778		2.34	%
Non-taxable investment securities⁽²⁾		1,826		28		6.10	%		1,802		28		6.25	%
Total investment securities		311,450		1,773		2.26	%		307,294		1,806		2.36	%
FHLB stock ⁽³⁾		8,409		183		8.66	%		8,409		193		9.23	%

Total interest-earning assets		2,212,517		36,642		6.59	%		2,200,997		36,205		6.62	%

Noninterest-earning assets:
Cash and due from banks		12,943							12,188
All other assets⁽⁴⁾		47,163							52,398

Total assets	$	2,272,623						$	2,265,583

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand	$	903,542	$	9,801		4.32	%	$	783,048	$	8,031		4.12	%
Money market and savings		348,125		3,067		3.50	%		304,392		2,598		3.43	%
Time		75,972		810		4.24	%		97,430		1,035		4.27	%
Brokered		69,670		924		5.28	%		135,952		1,830		5.41	%
Total interest-bearing deposits		1,397,309		14,602		4.16	%		1,320,822		13,494		4.11	%

Short-term borrowings		237,370		3,121		5.23	%		295,220		3,880		5.29	%
Subordinated debt		21,970		300		5.44	%		21,944		300		5.50	%
Total interest-bearing liabilities		1,656,649		18,023		4.33	%		1,637,986		17,674		4.34	%


Noninterest-bearing liabilities:
Demand deposits		408,626							436,498
Accrued expenses and other liabilities		28,088							24,225
Shareholders' equity		179,260							166,874

Total liabilities and
shareholders' equity	$	2,272,623						$	2,265,583

Net interest spread						2.26	%						2.28	%
Net interest income and margin ⁽⁵⁾			$	18,619		3.35	%			$	18,531		3.39	%

Non-taxable equivalent net interest margin						3.35	%						3.39	%

Cost of deposits	$	1,805,935	$	14,602		3.22	%	$	1,757,320	$	13,494		3.09	%

(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 $383 thousand and $409 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 $22.4 million and $19.8 million, respectively, is included as a contra asset. (5) Net interest margin is net interest income divided by total interest-earning assets. (6) Annualized

AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (dollars in thousands)
	Three months ended
	September 30, 2024							September 30, 2023
	Average Balance		Interest Income/ Expense		Yields or Rates ⁽⁶⁾			Average Balance		Interest Income/ Expense		Yields or Rates ⁽⁶⁾


Assets
Interest earning assets:
Loans ⁽¹⁾	$	1,805,430	$	33,488		7.38	%	$	1,641,475	$	29,125		7.04	%
Fed funds sold/interest bearing deposits		87,228		1,198		5.46	%		48,350		662		5.36	%
Investment securities
Taxable investment securities		309,624		1,745		2.24	%		365,244		2,009		2.18	%
Non-taxable investment securities ⁽²⁾		1,826		28		6.10	%		-		-		0.00	%
Total investment securities		311,450		1,773		2.26	%		365,244		2,009		2.18	%
FHLB stock ⁽³⁾		8,409		183		8.66	%		8,409		171		8.07	%

Total interest-earning assets		2,212,517		36,642		6.59	%		2,063,478		31,967		6.15	%

Noninterest-earning assets:
Cash and due from banks		12,943							22,556
All other assets ⁽⁴⁾		47,163							82,409

Total assets	$	2,272,623						$	2,168,443

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand	$	903,542	$	9,801		4.32	%	$	748,016	$	7,306		3.88	%
Money market and savings		348,125		3,067		3.50	%		296,865		2,193		2.93	%
Time		75,972		810		4.24	%		41,455		264		2.53	%
Brokered		69,670		924		5.28	%		75,420		941		4.95	%
Total interest-bearing deposits		1,397,309		14,602		4.16	%		1,161,756		10,704		3.66	%

Short-term borrowings		237,370		3,121		5.23	%		285,326		3,480		4.84	%
Subordinated debt		21,970		300		5.44	%		21,867		300		5.44	%
Total interest-bearing liabilities		1,656,649		18,023		4.33	%		1,468,949		14,484		3.91	%


Noninterest-bearing liabilities:
Demand deposits		408,626							520,573
Accrued expenses and other liabilities		28,088							25,822
Shareholders' equity		179,260							153,099

Total liabilities and
shareholders' equity	$	2,272,623						$	2,168,443

Net interest spread						2.26	%						2.24	%
Net interest income and margin ⁽⁵⁾			$	18,619		3.35	%			$	17,483		3.36	%

Non-taxable equivalent net interest margin						3.35	%						3.36	%

Cost of deposits	$	1,805,935	$	14,602		3.22	%	$	1,682,329	$	10,704		2.52	%

(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 $383 thousand and $441 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 $22.4 million and $17.6 million, respectively, is included as a contra asset. (5) Net interest margin is net interest income divided by total interest-earning assets. (6) Annualized

AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (dollars in thousands)
	Nine months ended
	September 30, 2024							September 30, 2023
	Average Balance		Interest Income/ Expense		Yields or Rates ⁽⁶⁾			Average Balance		Interest Income/ Expense		Yields or Rates ⁽⁶⁾


Assets
Interest earning assets:
Loans⁽¹⁾	$	1,792,857	$	98,570		7.34	%	$	1,596,660	$	81,416		6.82	%
Fed funds sold/interest bearing deposits		72,424		2,968		5.47	%		65,855		2,486		4.98	%
Investment securities
Taxable investment securities		310,891		5,325		2.29	%		387,315		6,415		2.21	%
Non-taxable investment securities ⁽²⁾		1,832		84		6.12	%		9,722		334		4.59	%
Total investment securities		312,723		5,409		2.31	%		397,037		6,749		2.27	%
FHLB stock ⁽³⁾		8,409		567		9.01	%		8,129		519		8.53	%

Total interest-earning assets		2,186,413		107,514		6.57	%		2,067,681		91,170		5.89	%

Noninterest-earning assets:
Cash and due from banks		12,723							23,019
All other assets⁽⁴⁾		54,593							77,462

Total assets	$	2,253,729						$	2,168,162

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand	$	811,505	$	25,272		4.16	%	$	442,948	$	11,899		3.59	%
Money market and savings		318,811		7,935		3.32	%		513,961		10,008		2.60	%
Time		76,725		2,400		4.18	%		51,889		684		1.76	%
Brokered		113,199		4,523		5.34	%		57,534		2,131		4.95	%
Total interest-bearing deposits		1,320,240		40,130		4.06	%		1,066,332		24,722		3.10	%

Short-term borrowings		271,427		10,443		5.14	%		282,980		10,342		4.89	%
Subordinated debt		21,944		901		5.48	%		21,842		901		5.52	%
Total interest-bearing liabilities		1,613,611		51,474		4.26	%		1,371,154		35,965		3.51	%


Noninterest-bearing liabilities:
Demand deposits		442,617							621,608
Accrued expenses and other liabilities		26,458							24,909
Shareholders' equity		171,043							150,491

Total liabilities and
shareholders' equity	$	2,253,729						$	2,168,162

Net interest spread						2.31	%						2.38	%
Net interest income and margin ⁽⁵⁾			$	56,040		3.42	%			$	55,205		3.57	%

Non-taxable equivalent net interest margin						3.42	%						3.57	%

Cost of deposits	$	1,762,857	$	40,130		3.04	%	$	1,687,940	$	24,722		1.96	%

(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 amortization of deferred loan fees / (costs) of $1.2 million and $1.3 million, 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 loan losses of $20.5 million and $16.9 million, respectively, is included as a contra asset. (5) Tax equivalent net interest income divided by total interest-earning assets. (6) Annualized

AVIDBANK HOLDINGS, INC. Loans and Credit Data (Unaudited) (dollars in thousands)
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Current Quarter			Year over Year
	2024			2024			2024			2023			2023			Change			Change

Commercial loans	$	759,492		$	774,666		$	736,068		$	716,075		$	687,501		$	(15,174	)	$	71,991
Commercial real estate
Multi-family		199,929			202,292			203,170			200,152			189,336			(2,363	)		10,593
Owner Occupied		141,139			157,376			158,759			158,728			157,143			(16,237	)		(16,004	)
Non-Owner Occupied		406,007			412,473			408,758			411,446			403,952			(6,466	)		2,055
Construction and land		253,325			242,966			259,562			237,124			214,474			10,359			38,851
Residential		25,799			15,717			16,187			16,816			17,311			10,082			8,488
Total real estate loans		1,026,199			1,030,824			1,046,436			1,024,266			982,216			(4,625	)		43,983
Other loans		1,065			1,117			520			306			197			(52	)		868
Total loans	$	1,786,756		$	1,806,607		$	1,783,024		$	1,740,647		$	1,669,914		$	(19,851	)	$	116,842

Allowance for Credit Losses on Loans
Balance, beginning of quarter	$	22,410		$	19,342		$	19,131		$	17,800		$	17,636
Provision for credit losses on loans		-			3,068			211			1,331			164
Charge-offs		(95	)		-			-			-			-
Recoveries		-			-			-			-			-
Balance, end of quarter	$	22,315		$	22,410		$	19,342		$	19,131		$	17,800

Allowance for Credit Losses
on Unfunded Commitments
Balance, beginning of quarter	$	2,098		$	2,168		$	2,060		$	2,125		$	2,169
Provision for unfunded commitments		-			(70	)		108			(65	)		(44	)
Balance, end of quarter	$	2,098		$	2,098		$	2,168		$	2,060		$	2,125

Total allowance for credit losses -
loans and unfunded commitments	$	24,413		$	24,508		$	21,510		$	21,191		$	19,925

Provision for credit losses under CECL
Provision for credit losses on loans	$	-		$	3,068		$	211		$	1,331		$	164
Provision for unfunded commitments		-			(70	)		108			(65	)		(44	)
Total provision for credit losses	$	-		$	2,998		$	319		$	1,266		$	120

Nonperforming Assets
Loans accounted for on a non-accrual basis	$	3,621		$	3,686		$	1,370		$	1,378		$	1,385
Loans past due 90 days or more and still accruing		-			-			-			-			-
Nonperforming loans		3,621			3,686			1,370			1,378			1,385
Other real estate owned		-			-			-			-			14,095
Nonperforming assets	$	3,621		$	3,686		$	1,370		$	1,378		$	15,480

Nonperforming Loans by Type:
Commercial	$	3,621		$	3,686		$	1,370		$	1,378		$	1,385
Construction and land		-			-			-			-			-
Total Nonperforming loans	$	3,621		$	3,686		$	1,370		$	1,378		$	1,385

Asset Quality Ratios
Allowance for credit losses on loans to total loans		1.25	%		1.24	%		1.08	%		1.10	%		1.07	%
Allowance for credit losses to total loans		1.37	%		1.36	%		1.21	%		1.22	%		1.19	%
Allowance for credit losses on loans
to nonperforming loans		616.27	%		607.98	%		1411.82	%		1388.32	%		1285.20	%
Nonperforming assets to total assets		0.16	%		0.16	%		0.06	%		0.06	%		0.70	%
Nonperforming loans to total loans		0.20	%		0.20	%		0.08	%		0.08	%		0.08	%
Net quarterly charge-offs to average loans ⁽¹⁾		0.02	%		0.00	%		0.00	%		0.00	%		0.00	%
Criticized and classified loans to total loans		2.13	%		2.00	%		1.78	%		1.72	%		1.70	%

(1) Annualized

AVIDBANK HOLDINGS, INC. Deposits (Unaudited) (dollars in thousands)
											Current			Year over
	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		Quarter			Year
Period End Deposits	2024		2024		2024		2023		2023		Change			Change

Non-interest-bearing demand	$	405,528	$	405,644	$	477,728	$	472,517	$	490,289	$	(116	)	$	(84,761	)
Interest-bearing checking		1,026,898		840,839		764,766		740,902		784,757		186,059			242,141
Money market and savings		336,166		312,162		319,692		298,117		322,983		24,003			13,183
Time		75,033		99,239		56,140		46,676		30,880		(24,205	)		44,153
Brokered		57,903		80,608		139,532		96,117		79,291		(22,705	)		(21,388	)
Total deposits	$	1,901,528	$	1,738,492	$	1,757,858	$	1,654,329	$	1,708,200	$	163,036		$	193,328

Average Deposits

Non-interest-bearing demand	$	408,626	$	436,498	$	483,100	$	487,301	$	520,573	$	(27,872	)	$	(111,947	)
Interest-bearing checking		903,542		783,048		746,916		766,856		748,016		120,494			155,526
Money market and savings		348,125		304,392		303,593		305,240		296,865		43,733			51,260
Time		75,972		97,430		56,783		29,787		41,455		(21,458	)		34,517
Brokered		69,670		135,952		134,453		119,605		75,420		(66,282	)		(5,750	)
Total deposits	$	1,805,935	$	1,757,320	$	1,724,845	$	1,708,789	$	1,682,329	$	48,615		$	123,606

AVIDBANK HOLDINGS, INC. Non-GAAP performance and Financial Measures Reconciliation (Unaudited) (in thousands, except share and per share amounts)
																For the nine months ended
	2024									2023						September 30,
Non-GAAP adjusted net income reconciliation	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			2024			2023
Net income - GAAP	$	5,846		$	3,466		$	5,246		$	303		$	5,408		$	14,558		$	16,498
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)	$	5,846		$	3,466		$	5,246		$	4,902		$	5,408		$	14,558		$	17,093

Non-GAAP adjusted net income reconciliation
Net income - GAAP	$	5,846		$	3,466		$	5,246		$	303		$	5,408		$	14,558		$	16,498
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)	$	5,846		$	3,466		$	5,246		$	4,902		$	5,408		$	14,558		$	17,093

Non-GAAP adjusted diluted earnings
per share reconciliation
Diluted earnings per share - GAAP	$	0.77		$	0.46		$	0.69		$	0.04		$	0.72		$	1.92		$	2.21
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)	$	0.77		$	0.46		$	0.69		$	0.65		$	0.72		$	1.92		$	2.29

Non-GAAP adjusted return on
average assets reconciliation
Net income - GAAP	$	5,846		$	3,466		$	5,246		$	303		$	5,408		$	14,558		$	16,498
Average total assets		2,272,623			2,265,583			2,222,778			2,191,198			2,168,443			2,253,729			2,168,162
Return on average assets - GAAP		1.02	%		0.62	%		0.95	%		0.05	%		0.99	%		0.86	%		1.02	%


Adjusted net income (non-GAAP)	$	5,846		$	3,466		$	5,246		$	4,902		$	5,408		$	14,558		$	17,093
Average total assets		2,272,623			2,265,583			2,222,778			2,191,198			2,168,443			2,253,729			2,168,162
Return on average assets - adjusted (non-GAAP)		1.02	%		0.62	%		0.95	%		0.89	%		0.99	%		0.86	%		1.05	%

Non-GAAP taxable equivalent net
interest income reconciliation
Net interest income - GAAP	$	18,613		$	18,526		$	18,885		$	18,424		$	17,483		$	56,023		$	55,135
Taxable equivalent adjustment		6			5			6			2			-			17			70
Net interest income - taxable equivalent (non-GAAP)	$	18,619		$	18,531		$	18,891		$	18,426		$	17,483		$	56,040		$	55,205

Non-GAAP taxable equivalent net
interest margin reconciliation
Net interest margin - GAAP		3.35	%		3.39	%		3.54	%		3.49	%		3.36	%		3.42	%		3.57	%
Impact of taxable equivalent adjustment		-			-			-			-			-			-			-
Net interest margin - taxable equivalent (non-GAAP)		3.35	%		3.39	%		3.54	%		3.49	%		3.36	%		3.42	%		3.57	%

Non-GAAP total deposits,
excluding brokered deposits
Total period end deposits - GAAP	$	1,901,528		$	1,738,492		$	1,757,858		$	1,654,329		$	1,708,200		$	1,901,528		$	1,708,200
Brokered deposits		57,903			80,608			139,532			96,117			79,291			57,903			79,291
Total deposits, excluding brokered (non-GAAP)	$	1,843,625		$	1,657,884		$	1,618,326		$	1,558,212		$	1,628,909		$	1,843,625		$	1,628,909

Non-GAAP pre-tax, pre-provision net income
Net income - GAAP	$	5,846		$	3,466		$	5,246		$	303		$	5,408		$	14,558		$	16,498
Provision for credit losses		-			2,998			319			1,266			120			3,317			1,776
Provision for income taxes		2,460			1,402			2,176			683			2,122			6,038			6,489
Non-GAAP pre-tax, pre-provision net income	$	8,306		$	7,866		$	7,741		$	2,252		$	7,650		$	23,913		$	24,763

SOURCE: Avidbank Holdings, Inc.

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FAQ

What was Avidbank Holdings' (AVBH) net income for Q3 2024?

Avidbank Holdings (AVBH) reported a net income of $5.8 million for the third quarter of 2024.

What was the loan to deposit ratio for AVBH in Q3 2024?

The loan to deposit ratio for AVBH improved to 94.0% in Q3 2024, down from 103.9% at June 30, 2024.

How much did AVBH's deposits increase in Q3 2024?

AVBH's period end deposits increased by $163.0 million, or 38% annualized, from June 30, 2024.

What was AVBH's consolidated total risk-based capital ratio in Q3 2024?

AVBH's consolidated total risk-based capital improved to 12.92% in Q3 2024, up from 12.17% at June 30, 2024.