Business
Avidbank Holdings, Inc. Announces Net Income of $2,764,000 for the Fourth Quarter of 2020
SAN JOSE, CA / ACCESSWIRE / February 1, 2021 / Avidbank Holdings, Inc. ("the Company") (OTC PINK:AVBH), a bank holding company and the parent company of
About this update from Avidbank Holdings, Inc.
[{"type":"text","content":"SAN JOSE, CA / ACCESSWIRE / February 1, 2021 / 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 $2,764,000 for the fourth quarter of 2020 compared to $3,049,000 for the same period in 2019.Full Year and Fourth Quarter 2020 Financial HighlightsNet income was $9,627,000 in 2020 compared to $12,857,000 in 2019. Net income in 2020 was impacted by a $3.5 million increase in employee costs due to staff additions in the second half of 2019 and the first quarter of 2020 to support our growth strategy. At the same time, the 150 basis point drop in the prime rate in March 2020 hindered net interest income growth. Net interest income was $44,945,000 in 2020, an increase of $243,000 or 0.5% compared to the figure recorded in 2019.Diluted earnings per common share were $1.61 in 2020, compared to $2.17 in 2019. Weighted average common fully diluted shares outstanding were 5,967,780 and 5,914,339 in 2020 and 2019, respectively.Net interest income was $11,769,000 for the fourth quarter of 2020, an increase of $699,000 over the $11,070,000 we recorded in the fourth quarter of 2019. The 6.3% increase over the prior year quarter reflects year over year loan growth partially offset by declining loan and investment yields.Net income was $2,764,000 for the fourth quarter of 2020, compared to $3,049,000 for the fourth quarter of 2019. Results for the fourth quarter of 2020 were impacted primarily by increased staffing expenses of $0.6 million.Diluted earnings per common share were $0.46 for the fourth quarter of 2020, compared to $0.51 for the fourth quarter of 2019.Total assets grew by 26% in 2020, ending the fourth quarter at $1.4 billion.Total loans net of deferred fees grew by 12% in 2020, ending the fourth quarter at $1.0 billion.Total deposits grew by 29% in 2020, ending the fourth quarter at $1.3 billion.The Company continues to be well capitalized for regulatory purposes with a Tier 1 Leverage Ratio of 8.67%, a Tier 1 Risk Based Capital and Common Equity Tier 1 Risk Based Capital Ratio of 10.35%, and a Total Risk Based Capital Ratio of 13.15%.Mark D. Mordell, Chairman and Chief Executive Officer, stated,...