Avidbank Holdings, Inc. Announces Net Income of $2,359,000 for the Third Quarter of 2020

SAN JOSE, CA  / ACCESSWIRE / October 26, 2020 / Avidbank Holdings, Inc. ("the Company") (OTC PINK:AVBH), a bank holding company and the parent company of Avidbank ("the Bank"), an independent full-service commercial bank serving businesses and individuals primarily in Northern California, announced unaudited consolidated net income of $2,359,000 for the third quarter of 2020 compared to $3,452,000 for the same period in 2019.

Year-to-Date and Third Quarter 2020 Financial Highlights

Net income was $6,864,000 in the first nine months of 2020 compared to $9,808,000 in the first nine months of 2019. Net income in the first nine months of 2020 was impacted by a $2.9 million increase in employee costs resulting from the expansion of our staff to support our growth strategy. At the same time, the sharp drop in interest rates in March 2020 hindered net interest income growth. Net interest income was $33,177,000 in the first nine months of 2020, a decrease of $455,000 or 1.4% compared to the figure recorded in the first nine months of 2019.
Diluted earnings per common share were $1.15 in the first nine months of 2020, compared to $1.66 in the first nine months of 2019. Weighted average common fully diluted shares outstanding were 5,957,949 and 5,904,960 in the first nine months of 2020 and 2019, respectively.
Net interest income was $10,961,000 for the third quarter of 2020, a decrease of $203,000 over the $11,164,000 we recorded in the third quarter of 2019. The 1.8% decrease over the prior year quarter reflects declining loan and investment yields partially offset by year over year loan growth.
Net income was $2,359,000 for the third quarter of 2020, compared to $3,452,000 for the third quarter of 2019. Results for the third quarter of 2020 were impacted by increased staffing expenses of $0.8 million, primarily from the hiring of additional personnel across the entire Bank.
Diluted earnings per common share were $0.39 for the third quarter of 2020, compared to $0.58 for the third quarter of 2019.
Total assets grew by 28% in the first nine months of 2020, ending the third quarter at $1.4 billion.
Total loans net of deferred fees grew by 14% in the first nine months of 2020, ending the third quarter at $1.0 billion.
Total deposits grew by 30% in the first nine months of 2020, ending the third quarter at $1.3 billion.
The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 8.79%, a Tier 1 Risk Based Capital and Common Equity Tier 1 Risk Based Capital Ratio of 10.33%, and a Total Risk Based Capital Ratio of 13.19%.

Mark D. Mordell, Chairman and Chief Executive Officer, stated, "More than seven months have passed since the Bay Area shelter-in-place order enacted in response to the pandemic, and we are very pleased that our employees and their families have remained healthy and safe. While over 80% of our staff continues to work remotely full-time, selected groups are returning to the office on a limited and distant basis. Our growth in loans and deposits slowed in the third quarter of 2020 compared to the surge we experienced in the second quarter as activity returned to a more normal pace. While problem loans have decreased during this time, our staff has been focused on carefully underwriting new loans and reviewing our existing portfolio for potential credit issues if the economy weakens. The loan modifications we made in response to the pandemic declined from 14% of the portfolio in the second quarter to under 3% of the portfolio in the third quarter. Our exposure to higher risk COVID-19 impacted industries such as hotels, restaurants and retail stores, is limited. Our credit quality remains strong and we have reduced the amount of non-performing loan balances by over two-thirds. We are selectively adding key staff positions to build our infrastructure and accommodate our growth. Our focus will continue to be employee health and safety along with our fiduciary responsibility to our clients and shareholders. For those reasons, we are being very cautious in our plans for returning employees to the workplace."

Mr. Mordell added, "The sharp drop in interest rates in March 2020 has led to a drop in net interest income compared to the prior year. Net interest income decreased to $11.0 million in the third quarter of 2020, a 1.8% decrease over the third quarter of 2019, as declining loan and investment yields more than offset year over year loan growth. Loans grew $9 million in the third quarter, primarily as a result of increases in Construction and Invoice Financing loans, partially offset by declines in Commercial Real Estate and Commercial loans."

Mr. Mordell continued, "Non-interest expense increased by $1,370,000 to $8,363,000 in the third quarter of 2020, up from $6,993,000 in the third quarter of 2019 primarily due to increased investments in personnel across the entire Bank. Our efficiency ratio increased to 72.6% in the third quarter of 2020, up from 59.0% in the third quarter of 2019 as a result of increased staffing costs and reduced interest income on investments and overnight funds. Total deposits increased by $18 million in the third quarter of 2020 compared to the second quarter of 2020 and increased by $380 million from the third quarter of 2019. The increase in deposits from June 30, 2020 was due to higher demand deposits and CDs over $250,000 partially offset by lower brokered deposits. The increase in deposits over the third quarter of 2019 was due to an increase in demand deposits and money market accounts, with the Venture Lending division having the largest growth. Our net interest margin dropped to 3.22% in the third quarter of 2020, compared to 4.49% in the third quarter of 2019 primarily due to a drop in loan and investment yields and an increase in overnight funds. Return on assets was 0.66% in the third quarter of 2020 compared to 0.63% in the second quarter of 2020 and 1.32% in the third quarter of 2019."

Results for the nine months ended September 30, 2020

Net interest income before provision for loan losses was $33.2 million in the first nine months of 2020, a decrease of $0.5 million or 1% over the same period of the prior year. Lower loan and investment yields were the primary reason for the decrease. Average total loans were $978 million in the first nine months of 2020 compared to $845 million in the first nine months of 2019. Average earning assets were $1.2 billion in the first nine months of 2020, a 28% increase over the prior year. Net interest margin was 3.61% in the first nine months of 2020 compared to 4.70% for the same period in 2019. The decrease in net interest margin was primarily caused by a decline in loan and investment yields and an increase in overnight fund balances. A loan loss provision of $1.6 million was recorded in the first nine months of 2020 compared to a $1.3 million loan loss provision recorded in the first nine months of 2019. We had $411,000 of charge-offs and no recoveries in the first nine months of 2020 compared to $107,000 of charge-offs and $151,000 of recoveries for the same period in 2019.

Non-interest income was $1,924,000 in the first nine months of 2020, a decrease of $273,000 or 12% over the first nine months of 2019. The first nine months of 2019 included a $306,000 gain from the sale of collateral on a workout loan.

Non-interest expense increased by $3.9 million to $24.6 million in the first nine months of 2020 compared to $20.7 million in 2019 due primarily to increased investments in personnel across the entire Bank.

The effective tax rate was 23.2% in the first nine months of 2020 compared to 29.0% for the same period in 2019. The effective tax rate in 2020 reflected the favorable impact of affordable housing tax credit investments and the re-allocation of income taxes to states outside of California.

Results for the quarter ended September 30, 2020

For the three months ended September 30, 2020, net interest income before provision for loan losses was $11.0 million, a decrease of $203,000 or 1.8% compared to the third quarter of 2019. The decrease was primarily the result of lower loan and investment yields offsetting higher average loans outstanding. Average total loans outstanding for the quarter ended September 30, 2020 were $1.0 billion, compared to $880 million for the same quarter in 2019, an increase of 14%. Average earning assets were $1.4 billion in the third quarter of 2020, a 37% increase over the third quarter of the prior year. Loans made up 74% of average earning assets at the end of the third quarter of 2020 compared to 89% at the end of the third quarter of 2019. Net interest margin was 3.22% for the third quarter of 2020, compared to 4.49% for the third quarter of 2019. A loan loss provision of $303,000 was taken in the third quarter of 2020 compared with a $39,000 loan loss provision taken in the third quarter of 2019.

Non-interest income was $563,000 in the third quarter of 2020, a decrease of $123,000 or 18% compared to the third quarter of 2019. The reduction resulted from lower investment fund income.

Non-interest expense increased by $1,370,000 in the third quarter of 2020 to $8,363,000 compared to $6,993,000 for the third quarter of 2019. This increase was primarily due to higher compensation costs related to increased staffing. The Company's full-time equivalent employees at September 30, 2020 and 2019 were 127 and 107, respectively. The Company's efficiency ratio increased from 59.0% in the third quarter of 2019 to 72.6% in the third quarter of 2020 due to increased expenses from the growth in staff and lower interest income from investments and overnight funds.

Balance Sheet

Total assets were $1.444 billion as of September 30, 2020, compared to $1.413 billion at June 30, 2020 and $1.115 billion on the same day one year ago. The increase in total assets of $31 million, or 2%, from June 30, 2020 was primarily due to increased deposits causing an increase in overnight funds with the Federal Reserve. The Company reported loans net of deferred fees at September 30, 2020 of $1.011 billion, which represented an increase of $9 million, or 1%, from $1.002 billion at June 30, 2020, and an increase of $102 million, or 11%, over $0.909 billion at September 30, 2019. The increase in total loans from June 30, 2020 was primarily a result of increases in Construction and Invoice Financing loans, partially offset by declines in Commercial Real Estate and Commercial loans. The increase in loans from September 30, 2019 was due to higher Venture Lending, Specialty Finance and Construction loans partially offset by lower Commercial loans.

"We had $0.3 million in one non-accrual loan on September 30, 2020, compared to a balance of $1.1 million at the end of the prior quarter. The non-accrual loan is secured by real estate," observed Mr. Mordell.

The Company's total deposits were $1.268 billion as of September 30, 2020, which represented an increase of $18 million, or 1%, compared to $1.250 billion at June 30, 2020 and an increase of $380 million, or 43%, compared to $888 million at September 30, 2019. The increase in deposits from June 30, 2020 was due to higher demand deposits and CDs over $250,000 partially offset by lower brokered deposits. The increase from September 30, 2019 was due to an increase in demand deposits and money market accounts, with the Venture Lending division having the largest growth. The Company had no FHLB advances outstanding as of September 30, 2020 and June 30, 2020 compared to $80 million as of September 30, 2019.

Demand and interest bearing transaction deposits represented 55% of total deposits at September 30, 2020, compared to 52% at June 30, 2020 and 47% for the same period one year ago. Core deposits, which include transaction deposits, money market accounts and CDs below $250,000, represented 87% of total deposits at September 30, 2020, compared to 84% at June 30, 2020 and 82% at September 30, 2019. The Company's loan to deposit ratio was 80% at September 30, 2020 compared to 80% at June 30, 2020 and 102% at September 30, 2019.

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: Steve Leen
Executive Vice President and Chief Financial Officer
408-831-5653
sleen@avidbank.com

Avidbank Holdings, Inc.

Consolidated Balance Sheets

  ($000, except share and per share amounts) (Unaudited)
 
 
 

Assets

 
9/30/20
 
 
6/30/20
 
 
3/31/20
 
 
12/31/19
 
 
9/30/19
 

Cash and due from banks

 
$ 
20,857
 
 
$ 
16,797
 
 
$ 
17,042
 
 
$ 
13,068
 
 
$ 
24,649
 

Due from Federal Reserve Bank

 
 
327,795
 
 
 
315,110
 
 
 
141,405
 
 
 
139,780
 
 
 
90,180
 

Total cash and cash equivalents

 
 
348,652
 
 
 
331,907
 
 
 
158,447
 
 
 
152,848
 
 
 
114,829
 

Investment securities – available for sale

 
 
40,316
 
 
 
43,601
 
 
 
44,983
 
 
 
52,014
 
 
 
53,571
 

Loans, net of deferred loan fees

 
 
1,011,137
 
 
 
1,002,029
 
 
 
965,684
 
 
 
888,780
 
 
 
909,312
 

Allowance for loan losses

 
 
(12,443
)
 
 
(12,521
)
 
 
(11,540
)
 
 
(11,267
)
 
 
(11,087
)

Loans, net of allowance for loan losses

 
 
998,694
 
 
 
989,508
 
 
 
954,144
 
 
 
877,513
 
 
 
898,225
 

Bank owned life insurance

 
 
11,355
 
 
 
11,288
 
 
 
11,222
 
 
 
11,156
 
 
 
11,088
 

Premises and equipment, net

 
 
5,432
 
 
 
5,435
 
 
 
5,522
 
 
 
5,542
 
 
 
5,238
 

Other real estate owned

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Accrued interest receivable & other assets

 
 
39,321
 
 
 
31,729
 
 
 
30,812
 
 
 
32,484
 
 
 
31,751
 

Total assets

 
$ 
1,443,770
 
 
$ 
1,413,468
 
 
$ 
1,205,130
 
 
$ 
1,131,557
 
 
$ 
1,114,702
 

Liabilities

Non-interest-bearing demand deposits

 
$ 
671,663
 
 
$ 
621,777
 
 
$ 
477,404
 
 
$ 
431,638
 
 
$ 
401,360
 

Interest bearing transaction accounts

 
 
24,808
 
 
 
26,837
 
 
 
25,104
 
 
 
21,465
 
 
 
20,114
 

Money market and savings accounts

 
 
382,394
 
 
 
382,776
 
 
 
292,051
 
 
 
320,683
 
 
 
287,082
 

Time deposits

 
 
189,529
 
 
 
218,634
 
 
 
199,841
 
 
 
199,357
 
 
 
179,645
 

Total deposits

 
 
1,268,394
 
 
 
1,250,024
 
 
 
994,400
 
 
 
973,143
 
 
 
888,201
 

FHLB advances

 
 
–
 
 
 
–
 
 
 
50,000
 
 
 
–
 
 
 
80,000
 

Subordinated debt, net

 
 
21,571
 
 
 
21,540
 
 
 
21,509
 
 
 
21,570
 
 
 
11,908
 

Other liabilities

 
 
28,409
 
 
 
19,475
 
 
 
19,806
 
 
 
20,449
 
 
 
21,897
 

Total liabilities

 
 
1,318,374
 
 
 
1,291,039
 
 
 
1,085,715
 
 
 
1,015,162
 
 
 
1,002,006
 

Shareholders' equity

Common stock/additional paid-in capital

 
 
70,595
 
 
 
70,012
 
 
 
69,444
 
 
 
69,377
 
 
 
68,851
 

Retained earnings

 
 
53,773
 
 
 
51,414
 
 
 
49,345
 
 
 
46,910
 
 
 
43,861
 

Accumulated other comprehensive income (loss)

 
 
1,028
 
 
 
1,003
 
 
 
626
 
 
 
108
 
 
 
(16
)

Total shareholders' equity

 
 
125,396
 
 
 
122,429
 
 
 
119,415
 
 
 
116,395
 
 
 
112,696
 

Total liabilities and shareholders' equity

 
$ 
1,443,770
 
 
$ 
1,413,468
 
 
$ 
1,205,130
 
 
$ 
1,131,557
 
 
$ 
1,114,702
 

Capital ratios

Tier 1 leverage ratio

 
 
8.79
%
 
 
9.16
%
 
 
10.64
%
 
 
10.51
%
 
 
10.84
%

Common equity tier 1 capital ratio

 
 
10.33
%
 
 
10.28
%
 
 
10.33
%
 
 
10.72
%
 
 
10.16
%

Tier 1 risk-based capital ratio

 
 
10.33
%
 
 
10.28
%
 
 
10.33
%
 
 
10.72
%
 
 
10.16
%

Total risk-based capital ratio

 
 
13.19
%
 
 
13.19
%
 
 
13.24
%
 
 
13.78
%
 
 
12.26
%

Book value per common share

 
$ 
20.37
 
 
$ 
19.92
 
 
$ 
19.46
 
 
$ 
19.12
 
 
$ 
18.54
 

Total common shares outstanding

 
 
6,155,265
 
 
 
6,144,578
 
 
 
6,136,189
 
 
 
6,087,160
 
 
 
6,079,160
 

Other Ratios

Non-interest bearing deposits to total deposits

 
 
53.0
%
 
 
49.7
%
 
 
48.0
%
 
 
44.4
%
 
 
45.2
%

Core deposits to total deposits

 
 
86.7
%
 
 
84.3
%
 
 
82.2
%
 
 
82.1
%
 
 
82.5
%

Loan to deposit ratio

 
 
79.7
%
 
 
80.2
%
 
 
97.1
%
 
 
91.3
%
 
 
102.4
%

Allowance for loan losses to total loans

 
 
1.23
%
 
 
1.25
%
 
 
1.20
%
 
 
1.27
%
 
 
1.22
%

Avidbank Holdings, Inc.

Condensed Consolidated Statements of Income

($000, except share and per share amounts) (Unaudited)
 
 
 

 
Quarter Ended
 
 
Year-to-Date
 

 
9/30/20
 
 
6/30/20
 
 
9/30/19
 
 
9/30/20
 
 
9/30/19
 

Interest and fees on loans and leases

 
$
12,189
 
 
$
12,420
 
 
$
12,465
 
 
$
36,785
 
 
$
36,601
 

Interest on investment securities

 
 
157
 
 
 
247
 
 
 
328
 
 
 
710
 
 
 
1,062
 

Other interest income

 
 
65
 
 
 
45
 
 
 
300
 
 
 
404
 
 
 
1,001
 

Total interest income

 
 
12,411
 
 
 
12,712
 
 
 
13,093
 
 
 
37,899
 
 
 
38,664
 

Deposit interest expense

 
 
1,144
 
 
 
1,260
 
 
 
1,381
 
 
 
3,789
 
 
 
3,752
 

Other interest expense

 
 
306
 
 
 
316
 
 
 
548
 
 
 
933
 
 
 
1,280
 

Total interest expense

 
 
1,450
 
 
 
1,576
 
 
 
1,929
 
 
 
4,722
 
 
 
5,032
 

Net interest income

 
 
10,961
 
 
 
11,136
 
 
 
11,164
 
 
 
33,177
 
 
 
33,632
 

Provision for loan losses

 
 
303
 
 
 
1,011
 
 
 
39
 
 
 
1,587
 
 
 
1,285
 

Net interest income after provision for

loan losses

 
 
10,658
 
 
 
10,125
 
 
 
11,125
 
 
 
31,590
 
 
 
32,347
 

Service charges, fees and other income

 
 
495
 
 
 
485
 
 
 
615
 
 
 
1,724
 
 
 
1,648
 

Income from bank owned life insurance

 
 
68
 
 
 
66
 
 
 
69
 
 
 
200
 
 
 
198
 

Gain on sale of assets

 
 
–
 
 
 
–
 
 
 
2
 
 
 
0
 
 
 
351
 

Total non-interest income

 
 
563
 
 
 
551
 
 
 
686
 
 
 
1,924
 
 
 
2,197
 

Compensation and benefit expenses

 
 
5,746
 
 
 
5,639
 
 
 
4,972
 
 
 
17,261
 
 
 
14,375
 

Occupancy and equipment expenses

 
 
1,070
 
 
 
973
 
 
 
881
 
 
 
2,984
 
 
 
2,687
 

Other operating expenses

 
 
1,547
 
 
 
1,362
 
 
 
1,140
 
 
 
4,327
 
 
 
3,668
 

Total non-interest expense

 
 
8,363
 
 
 
7,974
 
 
 
6,993
 
 
 
24,572
 
 
 
20,730
 

Income before income taxes

 
 
2,858
 
 
 
2,702
 
 
 
4,818
 
 
 
8,942
 
 
 
13,814
 

Provision for income taxes

 
 
499
 
 
 
632
 
 
 
1,366
 
 
 
2,078
 
 
 
4,006
 

Net income

 
$
2,359
 
 
$
2,070
 
 
$
3,452
 
 
$
6,864
 
 
$
9,808
 

Basic earnings per common share

 
$
0.40
 
 
$
0.35
 
 
$
0.59
 
 
$
1.17
 
 
$
1.69
 

Diluted earnings per common share

 
$
0.39
 
 
$
0.35
 
 
$
0.58
 
 
$
1.15
 
 
$
1.66
 

Average common shares outstanding

 
 
5,864,952
 
 
 
5,862,348
 
 
 
5,807,384
 
 
 
5,854,487
 
 
 
5,796,782
 

Average common fully diluted shares

 
 
5,974,216
 
 
 
5,947,756
 
 
 
5,919,698
 
 
 
5,957,949
 
 
 
5,904,960
 

Annualized returns:

Return on average assets

 
 
0.66
%
 
 
0.63
%
 
 
1.32
%
 
 
0.71
%
 
 
1.30
%

Return on average common equity

 
 
7.59
%
 
 
6.88
%
 
 
12.31
%
 
 
7.57
%
 
 
12.22
%

Net interest margin

 
 
3.22
%
 
 
3.52
%
 
 
4.49
%
 
 
3.61
%
 
 
4.70
%

Cost of funds

 
 
0.46
%
 
 
0.54
%
 
 
0.84
%
 
 
0.55
%
 
 
0.76
%

Efficiency ratio

 
 
72.57
%
 
 
68.23
%
 
 
59.01
%
 
 
70.00
%
 
 
57.86
%

 
Avidbank Holdings, Inc.
 

 
Credit Trends
 

 
($000) (Unaudited)
 

 
9/30/20
 
 
6/30/20
 
 
3/31/20
 
 
12/31/19
 
 
9/30/19
 

Allowance for Loan Losses

Balance, beginning of quarter

 
$ 
12,521
 
 
$ 
11,540
 
 
$ 
11,267
 
 
$ 
11,087
 
 
$ 
11,155
 

Provision for loan losses, quarterly

 
 
303
 
 
 
1,011
 
 
 
273
 
 
 
142
 
 
 
39
 

Charge-offs, quarterly

 
 
(380
)
 
 
(31
)
 
 
–
 
 
 
–
 
 
 
(107
)

Recoveries, quarterly

 
 
–
 
 
 
–
 
 
 
–
 
 
 
39
 
 
 
–
 

Balance, end of quarter

 
$ 
12,443
 
 
$ 
12,521
 
 
$ 
11,540
 
 
$ 
11,267
 
 
$ 
11,087
 

Nonperforming Assets

Loans accounted for on a non-accrual basis

 
$ 
331
 
 
$ 
1,080
 
 
$ 
3,902
 
 
$ 
3,817
 
 
$ 
3,830
 

Loans with principal or interest contractually

past due 90 days or more and still accruing interest

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Nonperforming loans

 
 
331
 
 
 
1,080
 
 
 
3,902
 
 
 
3,817
 
 
 
3,830
 

Other real estate owned

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Nonperforming assets

 
$ 
331
 
 
$ 
1,080
 
 
$ 
3,902
 
 
$ 
3,817
 
 
$ 
3,830
 

Loans restructured and in compliance with

modified terms

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Nonperforming assets & restructured loans

 
$ 
331
 
 
$ 
1,080
 
 
$ 
3,902
 
 
$ 
3,817
 
 
$ 
3,830
 

Nonperforming Loans by Type:

Commercial

 
$ 
331
 
 
$ 
1,080
 
 
$ 
1,665
 
 
$ 
1,580
 
 
$ 
1,590
 

Commercial Real Estate Loans

 
 
–
 
 
 
–
 
 
 
2,237
 
 
 
2,237
 
 
 
2,240
 

Residential Real Estate Loans

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Construction Loans

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Consumer Loans

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

Total Nonperforming loans

 
$ 
331
 
 
$ 
1,080
 
 
$ 
3,902
 
 
$ 
3,817
 
 
$ 
3,830
 

Asset Quality Ratios

Allowance for loan losses (ALLL) to total loans

 
 
1.23
%
 
 
1.25
%
 
 
1.20
%
 
 
1.27
%
 
 
1.22
%

ALLL to nonperforming loans

 
 
3759.27
%
 
 
1159.33
%
 
 
295.78
%
 
 
295.21
%
 
 
289.48
%

Nonperforming assets to total assets

 
 
0.02
%
 
 
0.08
%
 
 
0.32
%
 
 
0.34
%
 
 
0.34
%

Nonperforming loans to total loans

 
 
0.03
%
 
 
0.11
%
 
 
0.40
%
 
 
0.43
%
 
 
0.42
%

Net quarterly charge-offs to total loans

 
 
0.04
%
 
 
0.00
%
 
 
0.00
%
 
 
0.00
%
 
 
0.01
%

SOURCE: Avidbank Holdings, Inc.

ReleaseID: 612133