CONSOLIDATED FINANCIAL
STATEMENTS
AS OF DECEMBER 31, 2022 AND 2021
AND FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 AND
INDEPENDENT AUDITOR'S REPORT
AVIDBANK HOLDINGS, INC.
INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
FOR THE YEAR ENDED DECEMBER 31, 2022
Report of Independent Registered Public Accounting Firm | Page |
2 | |
Consolidated Financial Statements: | |
Consolidated Statements of Financial Condition | 4 |
Consolidated Statements of Income | 5 |
Consolidated Statements of Comprehensive (Loss)/Income | 6 |
Consolidated Statements of Changes in Shareholders' Equity | 7 |
Consolidated Statements of Cash Flows | 8 |
Notes to Consolidated Financial Statements | 9 |
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Crowe LLP
Independent Member Crowe Global
INDEPENDENT AUDITOR'S REPORT
Shareholders and Board of Directors
Avidbank Holdings, Inc. and Subsidiary
San Jose, California
Report on the Audit of the Financial Statements
Opinion
We have audited the consolidated financial statements of Avidbank Holdings, Inc. and Subsidiary, which comprise the consolidated statements of financial condition as of December 31, 2022 and 2021, and the related consolidated statements of income, comprehensive (loss) income, changes in shareholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Avidbank Holdings, Inc. and Subsidiary as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
We also have audited, in accordance with auditing standards generally accepted in the United States of America, Avidbank Holdings, Inc. and Subsidiary's internal control over financial reporting as of December 31, 2022, based on criteria established in the Internal Control-IntegratedFramework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) relevant to reporting objectives for the express purpose of meeting the regulatory requirements of Section 112 of the Federal Deposit Insurance Corporation Improvement Act (FDICIA) and our report dated March 22, 2023 expressed an unmodified opinion.
Basis For Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America, (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Avidbank Holdings, Inc. and Subsidiary and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Avidbank Holdings,Inc. and Subsidiary's ability to continue as a going concern for one year from the date the consolidated financial statements are available to be issued.
(Continued)
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.
In performing an audit in accordance with GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Avidbank Holdings, Inc. and Subsidiary's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Crowe LLP
Sacramento, California
March 22, 2023
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AVIDBANK HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, 2022 and 2021
(in thousands, except share amounts)
2022 | 2021 | ||||
ASSETS | 17,435 | ||||
Cash and due from banks | $ | $ | 29,616 | ||
Due from Federal Reserve Bank | 29,853 | 463,727 | |||
Total cash and cash equivalents | 47,288 | 493,343 | |||
Available-for-sale investment securities | 412,993 | 380,170 | |||
Held-to-maturity investment securities | 31,671 | - | |||
Loans, less allowance for loan losses of $16,481 in 2022 and | 1,537,741 | ||||
$13,054 in 2021 | 1,210,290 | ||||
Federal Home Loan Bank stock, at cost | 6,698 | 5,133 | |||
Premises and equipment, net | 4,163 | 4,565 | |||
Cash surrender value of Bank-owned life insurance policies | 32,747 | 31,875 | |||
Accrued interest receivable and other assets | 59,967 | 37,102 | |||
2,133,268 | |||||
Total assets | $ | $ | 2,162,478 | ||
LIABILITIES AND | |||||
SHAREHOLDERS' EQUITY | |||||
Deposits: | |||||
Non-interest bearing | $ | 765,079 | $ | 993,156 | |
Interest bearing | 1,058,156 | 986,254 | |||
1,823,235 | |||||
Total deposits | 1,979,410 | ||||
21,805 | |||||
Subordinated debt securities, net | 21,703 | ||||
Federal Home Loan Bank and other borrowings | 130,000 | - | |||
Accrued interest payable and other liabilities | 20,690 | 24,265 | |||
1,995,730 | |||||
Total liabilities | 2,025,378 | ||||
Commitments and contingent liabilities (Note 12) | |||||
Shareholders' equity: | |||||
Preferred stock - no par value; $1,000 liquidation preference; | |||||
5,000,000 shares authorized, no shares issued and | - | - | |||
outstanding at December 31, 2022 and 2021 | |||||
Common stock - no par value; 15,000,000 shares | |||||
authorized; 7,645,428 and 6,256,682 shares issued and | |||||
outstanding at December 31, 2022 and 2021, respectively | 102,359 | 72,799 | |||
Retained earnings | 93,824 | 68,801 | |||
Accumulated other comprehensive (loss) income, net of taxes | (58,645) | (4,500) | |||
137,538 | |||||
Total shareholders' equity | 137,100 | ||||
2,133,268 | |||||
Total liabilities and shareholders' equity | $ | $ | 2,162,478 | ||
The accompanying notes are an integral part of these consolidated financial statements. | |||||
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Avidbank Holdings Inc. published this content on 23 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2023 07:45:03 UTC.