Business
Avidbank Holdings, Inc. Announces Net Income of $2,435,000 for the First 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 $2,435,000 for the first quarter of 2020 compared to $3,173,000 for the same period in 2019.\n\n\nFirst Quarter 2020 Financial Highlights\n\n\n\nNet interest income was $11,080,000 for the first quarter of 2020, an increase of $37,000 over the $11,043,000 we recorded in the first quarter of 2019. The 0.3% increase over the prior year quarter reflects year over year loan growth offset by declining loan yields and increased interest expense related to growth in our deposit portfolio.\n\n\nNet income was $2,435,000 for the first quarter of 2020, compared to $3,173,000 for the first quarter of 2019. Results for the first quarter of 2020 were impacted by increased staffing expenses of $1.1 million, primarily from the hiring of additional personnel across the entire Bank. The first quarter of 2019 benefited from a gain of $306,000 from the sale of collateral on a workout loan.\n\n\nDiluted earnings per common share were $0.41 for the first quarter of 2020, compared to $0.54 for the first quarter of 2019.\n\n\nTotal assets grew by 7% in the first three months of 2020, ending the first quarter at $1.2 billion.\n\n\nTotal loans net of deferred fees grew by 9% in the first three months of 2020, ending the first quarter at $966 million.\n\n\nTotal deposits grew by 2% in the first three months of 2020, ending the first quarter at $994 million.\n\n\nThe Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 10.64%, 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 13.24%.\n\n\n\nMark D. Mordell, Chairman and Chief Executive Officer, stated, \"The COVID-19 pandemic has created an unprecedented situation for all of us and the economic and social effects will remain uncertain for some time. Avidbank's results in the first quarter were partially affected by the sharp drop in interest rates causing a reduction in the rate of growth of our net interest income. There will undoubtedly be additional effect...