Avidbank Holdings Reports Strong Q4 2024 Results
Generated by AI AgentWesley Park
Monday, Jan 27, 2025 6:13 am ET1min read
AVB--
Avidbank Holdings, Inc. (OTC PINK:AVBH) has announced its net income for the fourth quarter of 2024, showcasing a robust performance driven by loan growth, an expanding net interest margin, and a significant improvement in fee income. The bank reported net income of $6.5 million, or $0.84 per diluted share, compared to $5.8 million in the third quarter of 2024 and $303,000 in the fourth quarter of 2023. Adjusted net income (Non-GAAP) totaled $4.9 million, or $0.65 per diluted share for the fourth quarter of 2023.
Key highlights of the quarter include:
* Return on average assets improved to 1.14%, compared to 1.02% in the third quarter of 2024 and 0.05% in the fourth quarter of 2023 (or 0.89% adjusted return on average assets (Non-GAAP)).
* Loans increased by $78.2 million (18% annualized) from September 30, 2024, and $124.3 million (7%) from December 31, 2023.
* Taxable equivalent net interest margin (1) expanded to 3.49% in the fourth quarter of 2024, compared to 3.35% in the third quarter of 2024.
* Average deposits increased by $88.4 million (20% annualized) from the third quarter of 2024 and $185.5 million (11%) from the fourth quarter of 2023.
The bank recorded a $4.3 million charge-off from a venture lending relationship, which had been classified for the past 36 months while the borrower worked to find a buyer. Although the company is still operating, the length of time spent as a classified loan and the lack of progress finding a buyer led to the decision to charge off the loan. Despite this charge-off, Avidbank's credit quality remains strong, with nonperforming assets at 0.06% of total assets and classified loans at 0.22% of total loans.
Mark D. Mordell, Chairman and Chief Executive Officer of Avidbank Holdings, Inc., commented on the results, "We are pleased with what our team accomplished in 2024. After the events of 2023, strengthening our balance sheet was our top priority for 2024 and we made great progress. Additionally, we finished the year with strong loan growth, an expanding net interest margin and a meaningful improvement in fee income. Although deposits decreased slightly during the fourth quarter, we grew core deposits $262 million in 2024 and have a robust pipeline as we enter 2025."
In conclusion, Avidbank Holdings, Inc. has reported strong results for the fourth quarter of 2024, driven by loan growth, an expanding net interest margin, and a significant improvement in fee income. The bank's focus on strengthening its balance sheet and maintaining excellent credit quality has positioned it well for future growth and success. Investors should closely monitor Avidbank Holdings' progress as it continues to execute on its strategic initiatives and capitalize on market opportunities.
Avidbank Holdings, Inc. (OTC PINK:AVBH) has announced its net income for the fourth quarter of 2024, showcasing a robust performance driven by loan growth, an expanding net interest margin, and a significant improvement in fee income. The bank reported net income of $6.5 million, or $0.84 per diluted share, compared to $5.8 million in the third quarter of 2024 and $303,000 in the fourth quarter of 2023. Adjusted net income (Non-GAAP) totaled $4.9 million, or $0.65 per diluted share for the fourth quarter of 2023.
Key highlights of the quarter include:
* Return on average assets improved to 1.14%, compared to 1.02% in the third quarter of 2024 and 0.05% in the fourth quarter of 2023 (or 0.89% adjusted return on average assets (Non-GAAP)).
* Loans increased by $78.2 million (18% annualized) from September 30, 2024, and $124.3 million (7%) from December 31, 2023.
* Taxable equivalent net interest margin (1) expanded to 3.49% in the fourth quarter of 2024, compared to 3.35% in the third quarter of 2024.
* Average deposits increased by $88.4 million (20% annualized) from the third quarter of 2024 and $185.5 million (11%) from the fourth quarter of 2023.
The bank recorded a $4.3 million charge-off from a venture lending relationship, which had been classified for the past 36 months while the borrower worked to find a buyer. Although the company is still operating, the length of time spent as a classified loan and the lack of progress finding a buyer led to the decision to charge off the loan. Despite this charge-off, Avidbank's credit quality remains strong, with nonperforming assets at 0.06% of total assets and classified loans at 0.22% of total loans.
Mark D. Mordell, Chairman and Chief Executive Officer of Avidbank Holdings, Inc., commented on the results, "We are pleased with what our team accomplished in 2024. After the events of 2023, strengthening our balance sheet was our top priority for 2024 and we made great progress. Additionally, we finished the year with strong loan growth, an expanding net interest margin and a meaningful improvement in fee income. Although deposits decreased slightly during the fourth quarter, we grew core deposits $262 million in 2024 and have a robust pipeline as we enter 2025."
In conclusion, Avidbank Holdings, Inc. has reported strong results for the fourth quarter of 2024, driven by loan growth, an expanding net interest margin, and a significant improvement in fee income. The bank's focus on strengthening its balance sheet and maintaining excellent credit quality has positioned it well for future growth and success. Investors should closely monitor Avidbank Holdings' progress as it continues to execute on its strategic initiatives and capitalize on market opportunities.
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