Avidbank Holdings Inc. (OTC:AVBH) Stock On Radar After Earnings News
Investors are often known for tracking stocks with strong momentum, and one of the stocks to have gained momentum lately is Avidbank Holdings Inc. (OTC:AVBH). Yesterday, the company was in focus after it announced its financial results for the third fiscal quarter of 2024.
Strong Net Income Growth
In the third fiscal quarter, the company reported net income of $5.8 million, which worked out to $0.77 per diluted share. That reflected strong growth from the second fiscal quarter of 2024, when Avidbank Holdings generated net income of $3.5 million, or $0.46 for each diluted share. It was an improvement year on year given the net income in the prior year quarter was $5.4 million and earnings per diluted share were $0.72.
Major Highlights
In the third quarter, the return on average assets was 1.02%, which was an improvement on 0.62% in the previous quarter and 0.99% in the prior year quarter. The loan-to-deposit ratio stood at 94%, which was an improvement on 103.9% at the end of the previous quarter and 97.8% at the end of the prior year quarter.
In comparison to the previous quarter, the short-term borrowing for Avidbank Holdings went down by $170 million. The company managed to pay down on some of its dearer sources of funds through its higher core deposits.
CEO Quote
“During the third quarter, we continued to make solid progress on our overall goal for this year of strengthening our balance sheet. This included another quarter of strong growth in core deposits and significant improvement in our capital ratios. Total deposits, excluding brokered, increased approximately $186 million compared to the second quarter. Our capital position continues to improve, with a tangible common equity ratio of 8.21% and a total risk-based capital ratio of 12.92%. We also experienced a 10% increase in our tangible book value per share during the third quarter to $23.95 due to improved profitability and a lower unrealized loss on the investment portfolio,” said Mark D. Mordell, Chairman and Chief Executive Officer.