Business
Avidbank Holdings, Inc. Announces Net Income for the Fourth Quarter of 2023
SAN JOSE, CA / ACCESSWIRE / January 22, 2024 / Avidbank Holdings, Inc. (OTC Pink:AVBH) announced net income for the fourth quarter of 2023 of $303,000, or
About this update from Avidbank Holdings, Inc.
[{"type":"text","content":"SAN JOSE, CA / ACCESSWIRE / January 22, 2024 / Avidbank Holdings, Inc. (OTC Pink:AVBH) announced net income for the fourth quarter of 2023 of $303,000, or $0.04 per diluted share, compared to $5.4 million, or $0.72 per diluted share, for the third quarter of 2023 and $8.4 million, or $1.13 per diluted share, for the fourth quarter of 2022. Adjusted net income(1) totaled $4.9 million, or $0.65 per diluted share for the fourth quarter of 2023.Fourth Quarter 2023 HighlightsBook value per share was $21.27, an increase of $2.44, or 13%, from September 30, 2023 and an increase of $3.28, or 18%, from December 31, 2022.Loans increased $70.7 million, or 17% annualized, from September 30, 2023, and $186.4 million, or 12%, from December 31, 2022.Average deposits increased $26.5 million, or 6% annualized, from the third quarter of 2023.Taxable equivalent net interest margin (1) was 3.47% in the fourth quarter of 2023, compared to 3.34% in the third quarter of 2023.Annualized net charge-offs to average loans totaled 0.0% for the fourth and third quarters of 2023 and 0.01% for the full year 2023.Nonperforming assets to total assets was 0.06% as of December 31, 2023, compared to 0.70% on September 30, 2023, following the fourth quarter sale of the $14.1 million foreclosed real estate property.Profitability Improvement InitiativesSold $35.8 million in available-for-sale securities for a loss of $5.4 million. The securities had a book yield of 1.74% and an estimated average life of 5.5 years. The expected recovery of this loss is approximately 4.1 years.Initiated the surrender of $21.2 million in bank-owned life insurance (\"BOLI\") policies, resulting in tax expense of $478,000. Proceeds from the surrender of BOLI are expected to be received in the first half of 2024. The pre-tax yield on this BOLI was 3.25%.Completed the sale of the $14.1 million foreclosed real estate property in the fourth quarter of 2023 for a loss of $165,000.Completed a reduction in staff of seven employees resulting in annual cost savings of approximately $1.2 million and fourth quarter 2023 severance expense of $324,000.The proceeds from the foreclosed property sale, securities sale, and BOLI surrender will reduce Avidbank's reliance on wholesale funding by approximately $71 million.\"We are pleased with the diversified loan growth, improved net interest margin, and con...