Avidbank, an independent full-service commercial bank serving businesses and individuals primarily in Northern California, saw unaudited consolidated net income of $3.183 million for the second quarter of 2019 compared to $2.666 million for the same period in 2018.
Other year-to-date and second quarter 2019 financial highlights included:
Net income was $6.356 million in the first six months of 2019 compared to $4.773 million in the first six months of 2018. Net income in the first six months of 2019 included a $1.2 million loan loss provision while net income in 2018 reflected no loan loss provision. Net interest income was $22.468 million in the first six months of 2019, an increase of $4.933 million or 28% over the figure recorded in the first six months of 2018.
Diluted earnings per common share were $1.08 in the first six months of 2019, compared to $0.81 in the first six months of 2018. The increase in earnings per share was the result of higher earnings in 2019. Weighted average common shares outstanding were 5,791,394 and 5,742,988 in the first six months of 2019 and 2018, respectively.
Net interest income was $11.425 million for the second quarter of 2019, an increase of $2.475 million over the $8.950 million from the second quarter of 2018. The 28% increase over the prior year quarter reflects the impact of loan growth over the past twelve months.
Results for the second quarter of 2019 reflected a loan loss provision of $787,000 compared to no loan loss provision in the second quarter of 2018.
Diluted earnings per common share were $0.54 for the second quarter of 2019, compared to $0.45 for the second quarter of 2018.
Total assets grew by 11% in the first six months of 2019, ending the second quarter at $1 billion.
Total loans net of deferred fees grew by 6% in the first six months of 2019, ending the second quarter at $858 million.
Total deposits grew by 4% in the first six months of 2019, ending the second quarter at $830 million.
The company continues to be well capitalized for regulatory purposes with a tier 1 leverage ratio of 10.69%, a tier 1 risk based capital and common equity tier 1 risk based capital ratio of 10.28%, and a total risk based capital ratio of 12.49%.
Mark D. Mordell, Avidbank chairman and CEO, stated, “Loans grew $26.1 million in the second quarter primarily as a result of higher commercial real estate and C&I loans offsetting a significant amount of construction loan payoffs. We continue to be committed to a strong growth strategy to achieve scale and optimal profitability. We are also continuing to be opportunistic when identifying additional personnel and infrastructure that can be accretive to our cause. We have added several new employees in the second quarter of 2019 reflecting the expansion of our venture lending and structured finance divisions that are key areas for diversification and growth. The individuals we have in leadership and support roles position us well to continue our franchise growth strategy to scale our balance sheet and operations to serve our markets.”
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