Avidbank Holdings, Inc. Announces Financial Results for the Second Quarter of 2026

Avidbank Holdings, Inc. Announces Financial Results for the Second Quarter of 2026 SAN JOSE, CA / ACCESS Newswire / July 23, 2026 / Avidbank Holdings, Inc. (NASDAQ:AVBH) (the "Company" or "Avidbank Holdings"), the holding company for Avidbank, a California state-chartered bank (the "Bank"), announced net income for the second quarter of 2026 of $7.6 million, or $0.71 per diluted share, compared to net income of $9.0 million, or $0.84 per diluted share, for the first quarter of 2026 and net income of $5.8 million, or $0.75 per diluted share, for the second quarter of 2025. Results for the second quarter included a $2.6 million expense relating to the settlement of outstanding litigation and income of approximately $1.3 million on death benefit proceeds from bank-owned life insurance ("BOLI"). Excluding these items, adjusted net income (non-GAAP) (1) totaled $8.2 million, or $0.76 per adjusted diluted share (1) for the second quarter of 2026.

Second Quarter 2026 Highlights

Period-end loans, net of deferred fees, increased $51.3 million, or 9% annualized, from March 31, 2026 and $312.4 million, or 16%, from June 30, 2025.

Average deposits increased $59.2 million, or 11% annualized, from the first quarter of 2026 and $238.1 million, or 12%, from the second quarter of 2025. Period-end deposits increased $122.6 million, or 22% annualized, from March 31, 2026 and $319.2 million, or 16%, from June 30, 2025.

Return on average assets was 1.20% compared to 1.46% in the first quarter of 2026 and 1.00% in the second quarter of 2025. Excluding the litigation settlement and the income on BOLI proceeds, adjusted return on average assets (1) was 1.28% in the second quarter of 2026 compared to 1.46% in the prior quarter.

Net interest margin declined to 4.26% in the second quarter of 2026, compared to 4.38% in the first quarter of 2026 and increased compared to 3.60% in the second quarter of 2025.

Book value per share was $26.97 at June 30, 2026, an increase of $0.64 from March 31, 2026, and an increase of $1.17 from June 30, 2025.

Non-performing loans to total loans decreased to 0.65% as of June 30, 2026 compared to 0.75% at March 31, 2026 and increased compared to 0.07% at June 30, 2025.

Net charge-offs to average loans were 0.35% in the second quarter of 2026 compared to 0.52% in the first quarter of 2026.

Mark Mordell, Chairman and Chief Executive Officer stated, "We are pleased to report another solid quarter of growth in loans and deposits. In regard to our income statement, our results included two non-recurring items - a charge to settle a previously disclosed litigation matter and income on a payment from bank-owned life insurance. If we exclude those items, our adjusted results reflect the continued strength of our core operating performance and the earning power of our franchise. Although criticized and classified loans increased, we are not seeing any systemic or broad-based deterioration across the portfolio. As I have often said, we never take credit for granted and believe we are focused on the appropriate areas."

Mordell concluded, "We also continued to invest in our franchise, adding several experienced bankers as well as launching our new SBA Lending division, which expands our commercial banking platform and deepens the relationship-driven service that defines Avidbank. With a growing, diversified balance sheet and strong capital, we remain focused on disciplined growth and building long-term value for our shareholders."

Results of Operations

Net interest income totaled $26.7 million for the second quarter of 2026, an increase of $181 thousand, or 3% annualized, from the first quarter of 2026, and an increase of $6.4 million, or 31%, from the second quarter of 2025. The increase in net interest income compared to the prior quarter was primarily due to higher average loan balances, partially offset by a lower FHLB dividend and higher deposit costs. The increase compared to the second quarter of 2025 was driven by higher average loan balances, higher yields on securities and lower average short-term borrowings. For the six months ended June 30, 2026, net interest income increased $13.5 million, or 34%, compared to the six months ended June 30, 2025.

Net interest margin was 4.26% in the second quarter of 2026, a decrease of 12 basis points compared to the first quarter of 2026, and a 66 basis point increase compared to the second quarter of 2025. The decrease in net interest margin compared to the prior quarter was primarily driven by higher cost of deposits and a lower FHLB dividend. The first quarter of 2026 included a special FHLB dividend totaling $241 thousand. During the second quarter of 2026, the FHLB lowered the rate paid on dividends to 4.75% for banks with no outstanding borrowings.

The increase in net interest margin compared to the second quarter of 2025 was primarily driven by higher yields on securities, lower cost of deposits and lower rates and balances on short-term borrowings. For the six months ended June 30, 2026, net interest margin was 4.32%, an increase of 76 basis points from 3.56% for the six months ended June 30, 2025.

The yield on loans in the second quarter of 2026 was 6.67%, relatively flat compared to the first quarter of 2026 and a decrease of 34 basis points from the second quarter of 2025, primarily driven by reductions in the Prime rate. The yield on securities increased in the second quarter of 2026 to 4.68% compared to 4.64% in the first quarter of 2026 due to securities purchases and increased from 2.34% in the second quarter of 2025 due to the balance sheet restructuring in 2025. For the six months ended June 30, 2026, loan yields decreased 31 basis points while the yield on securities increased 229 basis points compared to the same period in the prior year.

The yield on interest-earning assets increased 8 basis points during the second quarter of 2026 compared to the first quarter of 2026 and increased 5 basis points compared to the second quarter of 2025. The increase from the first quarter of 2026 was primarily driven by an increase in average loan balances and average interest-earning deposits as well as higher average balances of debt securities, offset by a lower FHLB dividend. The increase compared to the second quarter of 2025 was primarily due to higher average loan balances, higher average interest-earning deposits and higher yields on our debt securities portfolio following the balance sheet restructuring. For the six months ended June 30, 2026, the yield on interest-earning assets increased 11 basis points compared to the same period in the prior year.

The cost of interest-bearing deposits in the second quarter of 2026 was 3.06%, an increase of 8 basis points compared to the first quarter of 2026 and a decrease of 48 basis points compared to the second quarter of 2025. The cost of deposits in the second quarter of 2026 was 2.29%, an increase of 5 basis points from the first quarter of 2026 and a decrease of 49 basis points from the second quarter of 2025, primarily driven by the reduction in the Federal Funds rate. Overall funding costs increased 7 basis points from the first quarter of 2026 and decreased 55 basis points compared to the second quarter of 2025. For the six months ended June 30, 2026, the cost of interest-bearing deposits was 3.02%, a decrease of 51 basis points compared to the same period in the prior year. The cost of deposits for the six months ended June 30, 2026, was down 50 basis points compared to the same period in 2025, while overall funding costs declined 59 basis points for the same period compared to the prior year.

The provision for credit losses was $2.8 million in the second quarter of 2026, compared to $1.4 million in the first quarter of 2026 and $925 thousand in the second quarter of 2025. The provision was higher in the second quarter of 2026 compared to the first quarter of 2026 primarily due to a $1.9 million partial charge-off of one non-performing construction loan and was higher compared to the second quarter of 2025 due to higher loan balances and the aforementioned charge-off in the second quarter of 2026. For the six months ended June 30, 2026, the provision for credit losses totaled $4.2 million compared to $925 thousand for the six months ended June 30, 2025.

Non-interest income was $3.1 million in the second quarter of 2026 compared to $1.5 million in both the first quarter of 2026 and the second quarter of 2025. The increase during the second quarter of 2026 was primarily driven by income of approximately $1.3 million on the death benefit proceeds of BOLI policies. For the six months ended June 30, 2026, non-interest income totaled $4.5 million compared to $2.7 million for the six months ended June 30, 2025.

Non-interest expense totaled $16.5 million for the second quarter of 2026, compared to $14.1 million in the first quarter of 2026 and $12.6 million in the second quarter of 2025. The increase in non-interest expense was due to the $2.6 million settlement of outstanding litigation, partially offset by a decrease in credit-related legal and professional fees during the second quarter of 2026. For the six months ended June 30, 2026, non-interest expense totaled $30.6 million, an increase of $5.1 million, or 20%, compared to the same period in the prior year. Salaries and employee benefits were unchanged at $9.6 million compared to the first quarter of 2026, as higher salary expense was offset by lower bonus accruals and higher capitalized loan origination costs. There were 162 full-time equivalent employees on June 30, 2026, compared to 154 on March 31, 2026, and 149 on June 30, 2025.

The effective tax rate for the second quarter of 2026 was 27.0% compared to 27.5% in the first quarter of 2026 and 30.1% in the second quarter of 2025. The decrease compared to the first quarter of 2026 and the second quarter of 2025 was primarily due to the recognition of approximately $1.3 million in tax-exempt BOLI proceeds. For the six months ended June 30, 2026, the effective tax rate was 27.2% compared to 29.7% for the same period of the prior year due to state tax impacts from changes in California law requiring financial institutions to apportion business income using a single sales factor for tax years beginning on or after January 1, 2025. As a result, the second quarter of 2025 included $153 thousand in additional tax expense related to the write-down of deferred tax assets. In addition, the first quarter of 2026 included approximately $514 thousand in discrete tax benefits related to the vesting of equity awards.

Financial Condition

Total assets were $2.66 billion as of June 30, 2026, compared to $2.58 billion as of March 31, 2026, and $2.39 billion as of June 30, 2025. Cash and cash equivalents were $159.9 million on June 30, 2026, compared to $149.0 million on March 31, 2026, and $129.9 million on June 30, 2025.

Loans, net of deferred fees, on June 30, 2026, totaled $2.22 billion, an increase of $51.3 million, or 9% annualized, from March 31, 2026, and an increase of $312.4 million, or 16%, from June 30, 2025. Loan growth during the second quarter of 2026 included increases of $70.9 million in commercial and industrial loans, $33.2 million in owner-occupied real estate loans, and $12.7 million in multi-family loans, partially offset by decreases of $36.1 million in construction and land loans and $18.7 million in non-owner-occupied commercial real estate loans.

The allowance for credit losses on loans was $21.5 million on June 30, 2026, an increase of $563 thousand from March 31, 2026, and an increase of $1.9 million compared to June 30, 2025. The allowance for credit losses - loans and unfunded commitments to total loans was 1.09% on June 30, 2026, compared to 1.07% on March 31, 2026 and 1.15% as of June 30, 2025. Non-performing loans to total loans was 0.65% at June 30, 2026, down 10 basis points compared to March 31, 2026 and up 58 basis points from June 30, 2025. The decrease in the second quarter of 2026 was primarily due to the partial charge-off of one construction loan totaling $1.9 million.

The available-for-sale securities portfolio totaled $232.2 million as of June 30, 2026, compared to $210.6 million at March 31, 2026, and $292.8 million as of June 30, 2025. The net unrealized loss on the available-for-sale portfolio totaled $2.8 million as of June 30, 2026, compared to $1.8 million at March 31, 2026 and $63.4 million as of June 30, 2025.

Deposits were $2.32 billion on June 30, 2026, an increase of $122.6 million, or 22% annualized, from March 31, 2026, and an increase of $319.2 million, or 16% from June 30, 2025. The change in deposits during the second quarter of 2026 included a $79.1 million increase in interest-bearing demand deposits, an increase of $27.0 million in non-reciprocal brokered deposits and an increase of $19.3 million in money market and savings deposits, partially offset by a decrease of $8.6 million in non-interest-bearing checking deposits. Quarterly average deposits for the second quarter of 2026 were $2.21 billion, an increase of $59.2 million from the first quarter of 2026, and an increase of $238.1 million from the second quarter of 2025. Average non-interest-bearing demand deposits increased $18.6 million compared to the first quarter of 2026 and $127.5 million compared to the second quarter of 2025.

Short-term borrowings outstanding at June 30, 2026 were $0.0, compared to $55.0 million at March 31, 2026, and $145.0 million at June 30, 2025.

Book value per share was $26.97 on June 30, 2026, an increase of $0.64 compared to March 31, 2026, and an increase of $1.17 compared to June 30, 2025. Total shareholders' equity was $296.2 million on June 30, 2026, an increase of $7.7 million compared to March 31, 2026, and an increase of $91.8 million from June 30, 2025, due to new shares issued as part of the IPO in 2025. No shares were repurchased during the second quarter of 2026, compared to 25,000 shares repurchased during the first quarter of 2026.

Other Information

The Company will host a conference call on July 24, 2026, at 11:00 a.m. (Eastern Time) / 8:00 a.m. (Pacific Time) to discuss the earnings results for the second quarter of 2026. Investors may call in by dialing (833) 461-5787 within the US and +1(585) 542-9983 for all other locations (Conference ID: 599 992 664). Participants may also pre-register for the conference by navigating to https://events.q4inc.com/attendee/599992664.

Alternatively, individuals may listen to a live webcast of the presentation by visiting the link on the Company's website at www.avidbank.com under About Us, Investor Relations. An audio replay of the live webcast is expected to be available by the evening of July 24, 2026, through the Investor Relations section of the Company's website. The recording will be available for one year from the day of posting. Information which may be discussed on the conference call is provided in an earnings supplement presentation available on the Company's website and furnished with the SEC and available at www.sec.gov.

(1) A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.

About Avidbank Holdings

Avidbank Holdings, Inc. (NASDAQ: AVBH), headquartered in San Jose, California, offers innovative financial solutions and services. We specialize in commercial & industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, fund finance, and real estate construction and commercial real estate lending. Avidbank provides a different approach to banking. We do what we say.

Non-GAAP Financial Measures

This press release includes financial information prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). This press release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. Management has presented these non-GAAP financial measures because we believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP. Management believes that adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, adjusted efficiency ratio and taxable equivalent net interest income are reasonable measures to understand the Company's core operating performance and are important to many investors who are interested in understanding our profitability prospects from our core operations.

However, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those we use for the non-GAAP financial measures we disclose but may calculate them differently. You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons. For a description of the non-GAAP financial information included herein and reconciliations to the most directly comparable GAAP measure, see the "Non-GAAP Performance and Financial Measures Reconciliation" table.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, which involve risks and uncertainties. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements include statements concerning our possible or assumed financial condition, results of operations, including descriptions of our business plans, strategy and expectations, capital and financing needs and liquidity and regulatory and competitive outlook. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other variations or comparable terminology and expressions. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. We caution that the forward-looking information and statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: uncertain market conditions and economic trends nationally, regionally and particularly in the Bay Area (which we define as the counties of Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano and Sonoma) and California; economic conditions affecting the venture capital and private equity industries, including any decline in overall portfolio company investment, merger and acquisition activity and other liquidity events affecting venture and private equity fund and their portfolio companies; risks related to the concentration of our business in California, and specifically within the Bay Area, including risks associated with any downturn in the real estate sector; the effects of a prolonged government shutdown; the occurrence of significant natural disasters, including fires and earthquakes, geopolitical events, and acts of war or terrorism; the effects of natural or man-made disasters, including the effects of pandemic viruses; changes in market interest rates that affect the pricing of our loans and deposits and our net interest income; risks related to our strategic focus on lending to small to medium-sized businesses; the sufficiency of the assumptions and estimates we make in establishing reserves for potential loan losses and the value of loan collateral and securities; our ability to attract and retain executive officers and key employees, including their client and community relationships; our ability to successfully manage any chief executive officer transition; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality and losses in our loan portfolio; the costs of and effects of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to; the results of regulatory examinations or reviews and the effect of and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to; our level of non-performing assets and the costs associated with resolving problem loans; our ability to maintain adequate liquidity and to raise necessary capital to fund our growth strategy and operations or to meet increased minimum regulatory capital levels; the effects of increased competition from a wide variety of local, regional, national and other providers of financial services; technological changes and developments; negative trends in our market capitalization and adverse changes in the price of our common stock; risks associated with unauthorized access, cyber-crime and other threats to data security; the effects of any strategic transactions we may make or evaluate, and the costs associated with any potential or actual strategic transaction; our ability to comply with various governmental and regulatory requirements applicable to financial institutions, including supervisory actions by federal and state banking agencies; the impact of recent and future legislative and regulatory changes, including changes in banking, accounting, securities and tax laws and regulations and their application by our regulators, and economic stimulus programs; governmental monetary and fiscal policies, including the policies of the Federal Reserve and policies related to tariffs; our ability to implement, maintain and improve effective internal controls; our use of the net proceeds from our recent completed public offering; and our success at managing any of the risks involved in the foregoing items. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's filings with the SEC, including the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q under the heading "Risk Factors" therein and available at the SEC's Internet site www.sec.gov. The foregoing factors should not be considered exhaustive. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information. Therefore, we caution you not to place undue reliance on our forward-looking information and statements. We disclaim any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Contact:

Patrick Oakes

Executive Vice President and Chief Financial Officer

408-200-7390

[email protected]

AVIDBANK HOLDINGS, INC.

Selected Financial Data (Unaudited)

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

7,647

9,021

6,949

(37,735

)

5,797

16,668

11,233

8,197

9,021

6,949

6,707

5,797

17,218

11,233

0.72

0.85

0.66

(4.12

)

0.77

1.57

1.50

0.71

0.84

0.65

(4.12

)

0.75

1.55

1.46

0.76

0.84

0.65

0.72

0.75

1.60

1.46

26.97

26.33

25.66

25.00

25.80

26.97

25.80

1.20

1.46

1.12

(6.35

1.00

1.33

0.98

1.28

1.46

1.12

1.13

1.00

1.37

0.98

10.40

12.74

9.90

(63.19

11.59

11.55

11.54

11.15

12.74

9.90

11.23

11.59

11.93

11.54

4.26

4.38

4.13

3.90

3.60

4.32

3.56

55.41

50.35

51.72

(35.28

57.77

52.96

60.10

48.73

50.35

51.72

55.72

57.77

49.54

60.10

99.32

99.98

94.78

94.14

95.69

99.64

97.08

11.50

11.39

11.23

11.14

10.53

11.50

10.53

11.35

11.39

11.05

11.68

11.02

11.35

11.02

11.35

11.39

11.05

11.68

11.02

11.35

11.02

12.79

12.85

12.57

13.48

12.76

12.79

12.76

11.13

11.18

10.93

11.56

8.55

11.13

8.55

10,982,764

10,955,167

10,947,967

10,925,102

7,923,946

10,982,764

7,923,946

10,607,949

10,600,902

10,579,753

9,168,707

7,534,264

10,604,445

7,511,285

10,776,924

10,773,884

10,754,488

9,168,707

7,686,385

10,775,066

7,684,976

10,776,924

10,773,884

10,754,488

9,353,444

7,686,385

10,775,066

7,684,976

1.09

1.07

1.15

1.19

1.15

1.09

1.15

0.54

0.63

0.95

0.12

0.06

0.54

0.06

0.65

0.75

1.14

0.14

0.07

0.65

0.07

0.35

0.52

0.30

(0.01

0.00

0.43

(0.01

2,195,164

2,150,688

2,024,325

1,924,537

1,887,263

2,173,049

1,873,068

219,942

216,507

196,462

181,154

293,640

218,234

295,024

2,565,538

2,504,616

2,459,110

2,357,158

2,322,264

2,535,245

2,306,188

2,210,267

2,151,059

2,135,876

2,044,228

1,972,215

2,180,827

1,929,342

294,826

287,191

278,382

236,903

200,608

291,030

196,273

2,224,119

2,172,846

2,148,439

1,958,585

1,911,718

2,224,119

1,911,718

232,196

210,583

218,160

173,588

292,808

232,196

292,808

2,660,440

2,579,554

2,569,643

2,362,454

2,392,129

2,660,440

2,392,129

2,321,948

2,199,319

2,186,073

2,049,158

2,002,781

2,321,948

2,002,781

296,185

288,438

280,979

273,113

204,419

296,185

204,419

(1) Annualized for the periods presented.

(2) A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.

(3) Ratios presented are for Avidbank Holdings, Inc. and are estimated for the three months and six months ended June 30, 2026.

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Financial Condition (Unaudited)

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

13,897

10,569

7,942

12,006

2,800

146,012

138,473

146,627

165,313

127,123

159,909

149,042

154,569

177,319

129,923

232,196

210,583

218,160

173,588

292,808

2,224,119

2,172,846

2,148,439

1,958,585

1,911,718

(21,501

)

(20,938

)

(22,261

)

(21,025

)

(19,624

)

2,202,618

2,151,908

2,126,178

1,937,560

1,892,094

11,443

13,151

13,045

12,953

12,857

1,151

1,340

1,526

1,739

1,927

53,123

53,530

56,165

59,295

62,520

2,660,440

2,579,554

2,569,643

2,362,454

2,392,129

568,509

577,101

556,972

471,770

443,540

1,115,263

1,036,178

1,069,272

1,069,344

1,087,621

538,399

519,059

532,149

465,198

399,849

34,311

28,521

27,680

42,846

46,770

65,466

38,460

25,001

2,321,948

2,199,319

2,186,073

2,049,158

2,002,781

55,000

60,000

145,000

22,000

20,307

14,797

20,591

18,183

17,929

2,364,255

2,291,116

2,288,664

2,089,341

2,187,710

170,284

169,474

169,990

169,342

107,608

127,818

120,171

111,150

104,201

141,936

(1,917

)

(1,207

)

(161

)

(430

)

(45,125

)

296,185

288,438

280,979

273,113

204,419

2,660,440

2,579,554

2,569,643

2,362,454

2,392,129

(1) FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank's total liabilities. As of June 30, 2026, March 31, 2026, December 31, 2025, September 30 2025 and June 30, 2025, an additional $513.0 million, $447.6 million, $475.4 million, $522.5 million and $495.4 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Operations (Unaudited)

For the Six

For the Three Months Ended

Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

36,484

35,429

34,093

33,880

32,967

71,913

64,852

2,559

2,467

2,274

1,157

1,703

5,025

3,452

426

185

184

181

446

366

864

716

1,775

2,033

793

1,581

1,499

39,927

39,038

38,327

37,254

35,644

78,965

70,169

12,640

11,899

12,887

13,776

13,669

24,539

26,496

196

240

385

1,242

436

3,153

410

399

421

443

809

878

13,246

12,538

13,314

14,604

15,354

25,784

30,527

26,681

26,500

25,013

22,650

20,290

53,181

39,642

2,789

1,445

2,838

1,355

925

4,234

925

23,892

25,055

22,175

21,295

19,365

48,947

38,717

851

821

797

779

840

1,672

1,602

340

363

254

267

196

703

416

1,497

106

1,603

183

113

101

150

214

197

375

273

(22

)

146

315

(23

)

(62,391

)

106

201

3,050

1,467

1,767

(60,852

)

1,538

4,517

2,709

9,563

9,555

9,574

9,766

8,978

19,117

18,075

897

1,188

890

591

715

2,086

1,226

787

799

770

792

759

1,586

1,374

777

790

730

723

759

1,567

1,755

515

566

521

445

420

1,082

964

3,934

1,184

1,366

1,162

978

5,118

2,057

16,473

14,082

13,851

13,479

12,609

30,556

25,451

10,469

12,440

10,091

(53,036

)

8,294

22,908

15,975

2,822

3,419

3,142

(15,301

)

2,497

6,240

4,742

7,647

9,021

6,949

(37,735

)

5,797

16,668

11,233

0.72

0.85

0.66

(4.12

)

0.77

1.57

1.50

0.71

0.84

0.65

(4.12

)

0.75

1.55

1.46

10,607,949

10,600,902

10,579,753

9,168,707

7,534,264

10,604,445

7,511,285

10,776,924

10,773,884

10,754,488

9,168,707

7,686,385

10,775,066

7,684,976

(1) Includes $1.3 million in income related to BOLI death benefits for the three and six months ended June 30, 2026.

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

For the Three Months Ended

June 30, 2026

March 31, 2026

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (6)

Balance

Expense

Rates (6)

2,195,164

36,484

6.67

2,150,688

35,429

6.68

91,304

864

3.80

78,859

716

3.68

217,311

2,529

4.67

213,820

2,437

4.62

2,631

5.79

2,687

5.74

219,942

2,567

4.68

216,507

2,475

4.64

8,409

0.95

8,409

426

20.55

2,514,819

39,935

6.37

2,454,463

39,046

6.45

16,004

13,058

34,715

37,095

2,565,538

2,504,616

1,055,578

8,368

3.18

1,067,528

8,260

3.14

509,766

3,427

2.70

517,342

3,389

2.66

35,454

285

3.22

27,589

207

3.04

56,810

560

3.95

4,567

3.82

1,657,608

12,640

3.06

1,617,026

11,899

2.98

20,703

196

3.80

25,500

240

3.82

22,000

410

7.48

21,997

399

7.36

1,700,311

13,246

3.12

1,664,523

12,538

3.05

552,659

534,033

17,742

18,869

294,826

287,191

2,565,538

2,504,616

3.25

3.40

26,689

4.26

26,508

4.38

4.26

4.38

2,210,267

12,640

2.29

2,151,059

11,899

2.24

(1) Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred fees / (costs) of $260 thousand and $252 thousand, for the three months ended June 30, 2026 and March 31, 2026, respectively.

(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(3) Including negative balance on average allowance for credit losses on loans of $20.5 million and $21.9 million, respectively.

(4) Net interest margin is net interest income divided by total interest-earning assets.

(5) Includes a special FHLB dividend totaling $241 thousand for the three months ended March 31, 2026.

(6) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

For the Three Months Ended

June 30, 2026

June 30, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (5)

Balance

Expense

Rates (5)

2,195,164

36,484

6.67

1,887,263

32,967

7.01

91,304

864

3.80

73,552

793

4.32

217,311

2,529

4.67

291,074

1,672

2.30

2,631

5.79

2,566

6.10

219,942

2,567

4.68

293,640

1,711

2.34

8,409

0.95

8,409

181

8.63

2,514,819

39,935

6.37

2,262,864

35,652

6.32

16,004

10,120

34,715

49,280

2,565,538

2,322,264

1,055,578

8,368

3.18

1,038,372

9,483

3.66

509,766

3,427

2.70

398,438

3,094

3.11

35,454

285

3.22

47,398

400

3.38

56,810

560

3.95

62,853

692

4.42

1,657,608

12,640

3.06

1,547,061

13,669

3.54

20,703

196

3.80

108,374

1,242

4.60

22,000

410

7.48

22,000

443

8.08

1,700,311

13,246

3.12

1,677,435

15,354

3.67

552,659

425,154

17,742

19,067

294,826

200,608

2,565,538

2,322,264

3.25

2.65

26,689

4.26

20,298

3.60

4.26

3.60

2,210,267

12,640

2.29

1,972,215

13,669

2.78

(1) Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred fees / (costs) of $260 thousand and $314 thousand, for the three months ended June 30, 2026 and June 30, 2025, respectively.

(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(3) Including negative balance on average allowance for credit losses on loans of $20.5 million and $19.1 million, respectively.

(4) Net interest margin is net interest income divided by total interest-earning assets.

(5) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

For the Six Months Ended

June 30, 2026

June 30, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (6)

Balance

Expense

Rates (6)

2,173,049

71,913

6.67

1,873,068

64,852

6.98

85,116

1,581

3.75

68,989

1,499

4.38

215,575

4,964

4.64

292,398

3,391

2.34

2,659

5.84

2,626

5.91

218,234

5,041

4.66

295,024

3,468

2.37

8,409

446

10.70

8,409

366

8.78

2,484,808

78,981

6.41

2,245,490

70,185

6.30

14,539

11,478

35,898

49,220

2,535,245

2,306,188

1,061,520

16,628

3.16

997,907

18,013

3.64

513,533

6,816

2.68

391,972

5,965

3.07

31,543

492

3.15

53,805

958

3.59

30,833

603

3.94

70,154

1,560

4.48

1,637,429

24,539

3.02

1,513,838

26,496

3.53

23,088

436

3.81

139,072

3,153

4.57

21,999

809

7.42

22,000

878

8.05

1,682,516

25,784

3.09

1,674,910

30,527

3.68

543,398

415,504

18,301

19,501

291,030

196,273

2,535,245

2,306,188

3.32

2.62

53,197

4.32

39,658

3.56

4.32

3.56

2,180,827

24,539

2.27

1,929,342

26,496

2.77

(1) Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred fees / (costs) of $512 thousand and $810 thousand, for the six months ended June 30, 2026 and June 30, 2025, respectively.

(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(3) Including negative balance on average allowance for credit losses on loans of $21.2 million and $19.1 million, respectively.

(4) Net interest margin is net interest income divided by total interest-earning assets.

(5) Includes a special FHLB dividend totaling $241 thousand for the six months ended June 30, 2026.

(6) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Asset Quality Data (Unaudited)

As of / For the Year-to-Date

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

Period Ended June 30,

2026

2025

2026

2025

20,938

22,261

21,025

19,624

18,722

22,261

18,679

2,461

1,433

2,759

1,364

891

3,894

891

(1,901

)

(3,171

)

(1,523

)

(5,072

)

415

418

21,501

20,938

22,261

21,025

19,624

21,501

19,624

2,363

2,351

2,272

2,281

2,247

2,351

2,247

328

)

340

2,691

2,363

2,351

2,272

2,281

2,691

2,281

24,192

23,301

24,612

23,297

21,905

24,192

21,905

2,461

1,433

2,759

1,364

891

3,894

891

328

)

340

2,789

1,445

2,838

1,355

925

4,234

925

14,448

16,323

24,502

2,761

1,352

14,448

1,352

14,448

16,323

24,502

2,761

1,352

14,448

1,352

14,448

16,323

24,502

2,761

1,352

14,448

1,352

5,088

2,761

1,352

14,448

16,323

19,414

14,448

16,323

24,502

2,761

1,352

14,448

1,352

0.97

0.96

1.04

1.07

1.03

0.97

1.03

1.09

1.07

1.15

1.19

1.15

1.09

1.15

148.82

128.27

90.85

761.50

1451.48

148.82

1451.48

0.54

0.63

0.95

0.12

0.06

0.54

0.06

0.65

0.75

1.14

0.14

0.07

0.65

0.07

0.35

0.52

0.30

(0.01

0.00

0.43

(0.01

2.16

1.57

0.50

1.48

1.87

2.16

1.87

0.96

0.92

1.22

0.44

0.38

0.96

0.38

(1) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Loans and Deposits (Unaudited)

Current

Year

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

Quarter

Over Year

2026

2025

Change

1,111,610

1,040,684

1,049,530

871,524

855,049

70,926

256,561

280,787

268,057

265,105

249,802

241,399

12,730

39,388

197,371

164,191

165,130

176,171

168,393

33,180

28,978

431,774

450,503

424,107

412,623

407,955

(18,729

)

23,819

164,200

200,272

196,243

209,750

204,973

(36,072

)

(40,773

)

38,007

48,726

45,669

36,399

31,560

(10,719

)

6,447

1,112,139

1,131,749

1,096,254

1,084,745

1,054,280

(19,610

)

57,859

370

413

2,655

2,316

2,389

(43

)

(2,019

)

2,224,119

2,172,846

2,148,439

1,958,585

1,911,718

51,273

312,401

568,509

577,101

556,972

471,770

443,540

(8,592

)

124,969

1,115,263

1,036,178

1,069,272

1,069,344

1,087,621

79,085

27,642

538,399

519,059

532,149

465,198

399,849

19,340

138,550

34,311

28,521

27,680

42,846

46,770

5,790

(12,459

)

65,466

38,460

25,001

27,006

40,465

2,321,948

2,199,319

2,186,073

2,049,158

2,002,781

122,629

319,167

552,659

534,033

526,610

482,849

425,154

18,626

127,505

1,055,578

1,067,528

1,088,413

1,074,064

1,038,372

(11,950

)

17,206

509,766

517,342

489,587

433,135

398,438

(7,576

)

111,328

35,454

27,589

31,266

43,897

47,398

7,865

(11,944

)

56,810

4,567

10,283

62,853

52,243

(6,043

)

2,210,267

2,151,059

2,135,876

2,044,228

1,972,215

59,208

238,052

(1) FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank's total liabilities. As of June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, an additional $513.0 million, $447.6 million, $475.4 million, $522.5 million, and $495.4 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

AVIDBANK HOLDINGS, INC. Non-GAAP

Performance and Financial Measures Reconciliation (Unaudited)

Management believes that adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, adjusted efficiency ratio and taxable equivalent net interest income are reasonable measures to understand the Company's core operating performance and are important to many investors who are interested in understanding our profitability prospects from our core operations. In addition, management reviews yields on certain asset categories and the net interest margin of the Company on a fully taxable equivalent basis. The non-GAAP taxable equivalent net interest income adjustment facilitates performance comparisons between taxable and tax-free assets by increasing the tax-free income by an amount equivalent to the Federal income taxes that would have been paid if this income were taxable at the Company's 21% Federal statutory rate.

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

7,647

9,021

6,949

(37,735

)

5,797

16,668

11,233

2,637

(1,338

)

(1,338

)

62,391

(749

)

(17,949

)

(749

)

8,197

9,021

6,949

6,707

5,797

17,218

11,233

0.71

0.84

0.65

(4.12

)

0.75

1.55

1.46

0.17

(0.12

)

(0.12

)

4.84

0.76

0.84

0.65

0.72

0.75

1.60

1.46

10,776,924

10,773,884

10,754,488

9,353,444

7,686,385

10,775,066

7,684,976

7,647

9,021

6,949

(37,735

)

5,797

16,668

11,233

2,565,538

2,504,616

2,459,110

2,357,158

2,322,264

2,535,245

2,306,188

1.20

1.46

1.12

(6.35

1.00

1.33

0.98

8,197

9,021

6,949

6,707

5,797

17,218

11,233

2,565,538

2,504,616

2,459,110

2,357,158

2,322,264

2,535,245

2,306,188

1.28

1.46

1.12

1.13

1.00

1.37

0.98

7,647

9,021

6,949

(37,735

)

5,797

16,668

11,233

294,826

287,191

278,382

236,903

200,608

291,030

196,273

10.40

12.74

9.90

(63.19

11.59

11.55

11.54

8,197

9,021

6,949

6,707

5,797

17,218

11,233

294,826

287,191

278,382

236,903

200,608

291,030

196,273

11.15

12.74

9.90

11.23

11.59

11.93

11.54

16,473

14,082

13,851

13,479

12,609

30,556

25,451

26,681

26,500

25,013

22,650

20,290

53,181

39,642

3,050

1,467

1,767

(60,852

)

1,538

4,517

2,709

55.41

50.35

51.72

(35.28

57.77

52.96

60.10

16,473

14,082

13,851

13,479

12,609

30,556

25,451

2,637

13,836

14,082

13,851

13,479

12,609

27,919

25,451

26,681

26,500

25,013

22,650

20,290

53,181

39,642

3,050

1,467

1,767

(60,852

)

1,538

4,517

2,709

(1,338

)

(1,338

)

62,391

1,712

1,467

1,767

1,539

1,538

3,179

2,709

48.73

50.35

51.72

55.72

57.77

49.54

60.10

26,681

26,500

25,013

22,650

20,290

53,181

39,642

26,689

26,508

25,021

22,658

20,298

53,197

39,658

4.26

4.38

4.13

3.90

3.60

4.32

3.56

4.26

4.38

4.13

3.90

3.60

4.32

3.56

(1) Annualized for the periods presented.

SOURCE: Avidbank Holdings, Inc.