Avidbank Q2 Net Income Drops 15% Sequentially on Margin Pressure, Litigation Charge
AVBH sits 50% above its 52-week low of $21.25.
Summary
Avidbank's Q2 net income fell to $7.65 million, or $0.71 per share, from $9.02 million ($0.84) in Q1, missing the strong pace set earlier this year. Net interest margin compressed to 4.26% as higher deposit costs and a lower FHLB dividend offset loan and deposit growth. Results were further weighed by a $2.6 million litigation settlement, partially cushioned by $1.3 million in BOLI death benefit income. The sequential earnings decline and margin erosion mark a reversal from the Q1 rebound that had driven shares higher. With no guidance provided, attention turns to whether deposit cost pressures persist into the second half.
At the time of this announcement, AVBH was trading at $31.86 on NASDAQ in the Finance sector, with a market capitalization of approximately $349M. The 52-week trading range was $21.25 to $34.18. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.