Business
Avidbank Holdings, Inc. Announces Net Income of $4.7 Million for the Second Quarter of 2023
SAN JOSE, CA / ACCESSWIRE / July 20, 2023 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced net income for the second quarter of 2023 of $4.7 million, or
About this update from Avidbank Holdings, Inc.
[{"type":"text","content":"SAN JOSE, CA / ACCESSWIRE / July 20, 2023 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced net income for the second quarter of 2023 of $4.7 million, or $0.63 per diluted share, compared to $6.4 million, or $0.85 per diluted share, for the first quarter of 2023 and $5.2 million, or $0.76 per diluted share, for the second quarter of 2022.Second Quarter 2023 HighlightsTotal deposits were $1.75 billion on June 30, 2023, an increase of $131 million, or 8%, compared to March 31, 2023. Venture lending accounted for $49 million of this quarter's deposit growth with the balance from our other four divisions.Uninsured deposits represented 40% of total deposits on June 30, 2023, compared to 59% on March 31, 2023, and 85% at December 31, 2022. This decrease in uninsured deposits included a total of $692 million in ICS reciprocal deposits, an increase of $384 million since March 31, 2023.Loans increased $86 million, or 6% from March 31, 2023, and $313 million, or 23% from June 30, 2022.Borrowings decreased by $95 million to $264 million as of June 30, 2023. Net available borrowing capacity totaled approximately $1.3 billion as of June 30, 2023.In June 2023, we unwound $125 million in receive-fixed interest rate swaps used to hedge our Prime loan portfolio with an average fixed swap rate of 7.01%. These contracts had an impact to interest income of ($353,000) and ($209,000) in the second quarter and first quarter of 2023, respectively.Annualized net charge-offs to average loans totaled 0.03% for the second quarter of 2023, compared to 0.00% for the first quarter of 2023.\"We are pleased with the growth in deposits and improved liquidity position this quarter. Since May 1st, deposits have increased $195 million generated from all five of our banking divisions. In the second quarter, we also decreased uninsured deposits to 40% of total deposits, reduced borrowings by $95 million, and lowered our loan-to-deposit ratio to 94%. These accomplishments are due to the efforts of our Avidbank team capitalizing on their exceptional relationships doing what is necessary in the midst of this challenging banking environment,\" said Mark Mordell, Chairman and Chief Executive Officer.\"Credit quality remains solid with stable trends in the loan portfolio. Nonperforming loans total $15.5 million and include the $14.1 million construction loan that was dow...