Avenue Financial Holdings, Inc.

CIK:0001616297|SEC Filings

Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest and dividend income:
Loans, including fees	$ 9,369	$ 7,670
Taxable securities	951	919
Tax-exempt securities	298	216
Federal Funds sold and other	35	30
Total interest and dividend income	10,653	8,835
Interest expense:
Deposits	1,036	761
Subordinated debt	348	348
Obligation under capital lease agreement	71	73
Other borrowings	187	160
Total interest expense	1,642	1,342
Net interest income	9,011	7,493
Provision for loan losses	774	154
Net interest income after provision for loan losses	8,237	7,339
Noninterest income:
Customer service fees	751	672
Mortgage banking income from sales, net of commissions	300	205
Increase in cash surrender value of life insurance	185	143
Net gain on sales of bulk mortgage loans	256	236
Net gain on sale of Small Business Administration loans	189
Net gain on sale of available-for-sale securities	228
Total noninterest income	1,909	1,256
Noninterest expenses:
Salaries and employee benefits	4,409	3,914
Equipment and occupancy	762	774
Data processing	369	428
Advertising, promotion, and public relations	199	183
Legal and accounting	421	276
Merger related expenses	801
FDIC insurance and other regulatory assessments	214	192
Other real estate expense (income)	3	(40)
Other expenses	829	681
Total noninterest expenses	8,007	6,408
Income before taxes	2,139	2,187
Income tax expense	726	733
Net income	1,413	1,454
Preferred stock dividends		(32)
Net income available to common stockholders	$ 1,413	$ 1,422
Per share information:
Basic net income per common share available to common stockholders	$ 0.14	$ 0.15
Diluted net income per common share available to common stockholders	$ 0.14	$ 0.15
Weighted average common shares outstanding:
Basic	10,152,331	9,319,312
Diluted	10,340,515	9,435,365

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net income	$ 1,413	$ 1,454
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	774	154
Net amortization of securities	154	225
Amortization of deferred loan fees and cost	38	(44)
Stock-based compensation expense	298	173
Supplemental executive retirement plan expense	84	78
Deferred tax benefit (expense)	218	(36)
Increase in cash surrender value of life insurance contracts	(185)	(143)
Depreciation and amortization of premises and equipment	268	303
Gain on sale of available-for-sale securities	(228)
(Gain) loss on other real estate owned	3	(40)
Gain on mortgage banking income from sales, net	(300)	(205)
Gain on sales of bulk mortgage loans	(256)	(236)
Gain on sales of Small Business Administration loans	(189)
Mortgage loans held-for-sale:
Loans originated	(24,028)	(47,806)
Loans sold	25,202	36,568
Decrease in accrued interest receivable	124	72
(Increase) decrease in other assets	(1,053)	906
Increase in accrued interest payable	42	369
Decrease in other liabilities	(1,301)	(1,387)
Net cash provided by (used in) operating activities	1,078	(9,595)
Investing activities:
Net change in interest-bearing time deposits in banks		(4)
Activity in available-for-sale securities:
Sales	41,212
Maturities, prepayments and calls	8,357	6,906
Purchases		(2,658)
Activity in held-to-maturity securities:
Maturities, prepayments and calls	18
Purchases of Federal Home Loan Bank Stock		(396)
Purchases of premises and equipment, net of effects from disposals	(802)	(90)
Proceeds from sale of other real estate owned	265	609
Proceeds from sale of mortgage loans initially held-for-investment	9,445	10,028
Increase in loans, net of collections	(106,696)	(26,900)
Net cash used in investing activities	(48,201)	(12,505)
Financing activities:
Net increase (decrease) in deposits	(3,107)	12,713
Net change in federal funds purchased	3,001	(1,769)
Proceeds from Federal Home Loan Bank advances	96,500	58,300
Payments on Federal Home Loan Bank advances	(59,000)	(29,300)
Principal payments of capital lease obligation	(34)	(31)
Issuance and exercise of employee options of common stock	500	14,541
Redemption of preferred stock		(18,950)
Preferred stock dividends		(32)
Net cash provided by financing activities	37,860	35,472
Net increase (decrease) in cash and cash equivalents	(9,263)	13,372
Cash and cash equivalents, beginning of period	35,154	17,765
Cash and cash equivalents, end of period	25,891	31,137
Supplemental cash flow information:
Cash paid for interest	1,600	973
Cash paid for income taxes	1,500	950
Loans transferred to mortgage loans held-for-sale		5,455
Loans transferred to mortgage loans held-for-investment	$ 4,795	$ 859

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 24,671	$ 34,479
Federal funds sold	1,220	675
Cash and cash equivalents	25,891	35,154
Interest-bearing time deposits in banks	216	216
Securities available-for-sale, at fair value	163,215	209,574
Securities held-to-maturity (fair value of $11,981 and $11,964 as of March 31, 2016 and December 31, 2015, respectively)	11,913	11,937
Mortgage loans held-for-sale	4,583	19,441
Loans, net of deferred fees	957,517	845,821
Less allowance for loan losses	(10,889)	(10,061)
Net loans	946,628	835,760
Accrued interest receivable	2,654	2,778
Federal Home Loan Bank stock, at cost	3,320	3,320
Premises and equipment, net	7,368	7,659
Other real estate owned	240	508
Deferred tax assets	7,852	9,021
Cash surrender value of company owned life insurance	25,925	25,740
Goodwill	2,966	2,966
Other assets	2,433	1,380
Total assets	1,205,204	1,165,454
Deposits:
Noninterest-bearing demand deposits	231,103	245,338
Interest-bearing demand deposits	77,976	77,271
Savings and money market accounts	479,487	520,342
Time	177,930	126,652
Total deposits	966,496	969,603
Accrued interest payable	563	521
Federal funds purchased	3,001
Federal Home Loan Bank advances	105,500	68,000
Subordinated debt	19,628	19,617
Other liabilities	11,506	13,299
Total liabilities	$ 1,106,694	$ 1,071,040
Commitments and Contingent Liabilities
Stockholders’ equity:
Common Stock, no par value. Authorized 100,000,000 shares: issued and outstanding 10,354,750 and 10,306,055 shares at March 31, 2016 and December 31, 2015, respectively	$ 91,817	$ 90,884
Additional paid-in-capital	1,074	1,209
Accumulated profit	6,365	4,952
Accumulated other comprehensive loss	(746)	(2,631)
Total stockholders’ equity	98,510	94,414
Total liabilities and stockholders’ equity	$ 1,205,204	$ 1,165,454