Business
Avidbank Holdings, Inc. Announces Net Income of $2,070,000 for the Second Quarter of 2020
SAN JOSE, Calif.--(BUSINESS WIRE)-- Avidbank Holdings, Inc. ("the Company") (OTC Pink: AVBH), a bank holding company and the parent company of Avidbank ("the
About this update from Avidbank Holdings, Inc.
[{"type":"text","content":" SAN JOSE, Calif.--(BUSINESS WIRE)--\nAvidbank 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 $2,070,000 for the second quarter of 2020 compared to $3,183,000 for the same period in 2019.\n\n\nYear-to-Date and Second Quarter 2020 Financial Highlights\n\n\n\nNet income was $4,505,000 in the first six months of 2020 compared to $6,356,000 in the first six months of 2019. Net income in the first six months of 2020 was impacted by a $2.1 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 $22,215,000 in the first six months of 2020, a decrease of $253,000 or 1.1% compared to the figure recorded in the first six months of 2019.\n\n\nDiluted earnings per common share were $0.76 in the first six months of 2020, compared to $1.08 in the first six months of 2019. Weighted average common fully diluted shares outstanding were 5,951,185 and 5,897,476 in the first six months of 2020 and 2019, respectively.\n\n\nNet interest income was $11,136,000 for the second quarter of 2020, a decrease of $289,000 over the $11,425,000 we recorded in the second quarter of 2019. The 2.5% decrease over the prior year quarter reflects declining loan and investment yields partially offset by year over year loan growth.\n\n\nNet income was $2,070,000 for the second quarter of 2020, compared to $3,183,000 for the second quarter of 2019. Results for the second quarter of 2020 were impacted by increased staffing expenses of $1.1 million, primarily from the hiring of additional personnel across the entire Bank.\n\n\nDiluted earnings per common share were $0.35 for the second quarter of 2020, compared to $0.54 for the second quarter of 2019.\n\n\nTotal assets grew by 25% in the first six months of 2020, ending the second quarter at $1.4 billion.\n\n\nTotal loans net of deferred fees grew by 13% in the first six months of 2020, ending the second quarter at $1.0 billion. Loan growth of $36 million in the second quarter was significantly due to our partici...