Form 8-K

8-K — Avidbank Holdings, Inc.

Accession: 0001437749-26-033518

Filed: 2026-10-26

Period: 2026-10-26

CIK: 0001443575

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Regulation FD Disclosure

Item: Financial Statements and Exhibits

Documents

8-K — avbh20260813_8k.htm (Primary)

EX-99.1 — EXHIBIT 99.1 (ex_1004920.htm)

EX-99.2 — EXHIBIT 99.2 (ex_1004921_source.htm)

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8-K — FORM 8-K

8-K (Primary)

Filename: avbh20260813_8k.htm · Sequence: 1

avbh20260813_8k.htm

false

0001443575

2026-10-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2026

AVIDBANK HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

California

001-42792

26-1731009

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

1732 North First Street, 6th Floor

San Jose, CA

95112

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (408) 200-7390

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on

which registered

Common Stock, no par value per share

AVBH

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition

On October 26, 2026, Avidbank Holdings, Inc. (the "Company") issued a press release announcing financial results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

The information in this Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act") or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01

Regulation FD Disclosure

The Company is filing an investor presentation that it intends to use in one-on-one meetings with investors at various times. A copy of the investor presentation is furnished as Exhibit 99.2 to this report and incorporated herein by reference.

The presentation is included as Exhibit 99.2 to this report and shall not be deemed to be "filed" for the purposes of the Exchange Act and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01

Financial Statements and Exhibits

(d) Exhibits

Exhibit No.

Description

99.1

Avidbank Holdings, Inc. Press Release dated October 26, 2026

99.2 Avidbank Holdings, Inc. Investor Presentation dated October 26, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 26, 2026

AVIDBANK HOLDINGS, INC.

By:

/s/ Patrick Oakes

Name:

Patrick Oakes

Title:

Executive Vice President and Chief Financial Officer

EX-99.1 — EXHIBIT 99.1

EX-99.1

Filename: ex_1004920.htm · Sequence: 2

ex_1004920.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

PRESS RELEASE

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

SAN JOSE, CA (ACCESS Newswire) – October 26, 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 third quarter of 2026 of $10.2 million, or $0.94 per diluted share, compared to net income of $7.6 million, or $0.71 per diluted share, for the second quarter of 2026 and a net loss of $37.7 million, or $4.12 loss per diluted share, for the third quarter of 2025.

Third Quarter 2026 Highlights

●

Period-end loans, net of deferred fees, increased $58.4 million, or 10% annualized, from June 30, 2026 and $323.9 million, or 17%, from September 30, 2025.

●

Average deposits increased $283.8 million, or 51% annualized, from the second quarter of 2026 and $449.9 million, or 22%, from the third quarter of 2025. Period-end deposits increased $290.1 million, or 50% annualized, from June 30, 2026 and $562.9 million, or 27%, from September 30, 2025.

●

Return on average equity was 13.43% compared to 10.40% in the second quarter of 2026 and (63.19)% in the third quarter of 2025. Adjusted return on average equity

(1) was 13.43% compared to 11.15% in the second quarter of 2026 and 11.23% in the third quarter of 2025.

●

Return on average assets was 1.42% compared to 1.20% in the second quarter of 2026 and (6.35)% in the third quarter of 2025. Adjusted return on average assets

(1) was 1.42% compared to 1.28% in the second quarter of 2026 and 1.13% in the third quarter of 2025.

●

Net interest margin was 4.07%, down 19 basis points from the second quarter of 2026 and up 17 basis points from the third quarter of 2025.

●

The efficiency ratio was 49.80% compared to 55.41% in the second quarter of 2026 and (35.28)% in the third quarter of 2025. The adjusted efficiency ratio

(1) was 49.80% compared to 48.73% in the second quarter of 2026 and 55.72% in the third quarter of 2025.

● Book value per share was $27.24 at September 30, 2026, an increase of $0.27 from June 30, 2026, and an increase of $2.24 from September 30, 2025.

● Redeemed $22.0 million of callable subordinated notes and closed on a $30.0 million private placement of new subordinated notes. The new subordinated notes have a maturity date of September 1, 2036, and carry a fixed rate of interest of 7.00% for the first five years.

● Non-performing loans to total loans increased to 0.70% as of September 30, 2026 compared to 0.65% and 0.14% at June 30, 2026 and September 30, 2025, respectively. Annualized net charge-offs to average loans totaled 0.00% for the third quarter of 2026 and 0.28% year-to-date 2026.

Mark Mordell, Chairman and Chief Executive Officer stated, “We are very pleased with our third-quarter performance. We generated strong profitability while continuing to grow both loans and deposits, demonstrating the power of our ability to grow our franchise and the benefits of more consistent execution. The quarter’s deposit growth was exceptionally strong. A significant amount of that deposit growth came from a temporary large client deposit that we expect to leave in the fourth quarter, but our bankers also delivered meaningful core deposit growth across the franchise. The temporary deposit contributed to net interest income but created some pressure on our net interest margin.”

Mordell concluded, “With strong capital, a diversified balance sheet and proactive credit management, we remain focused on generating consistent growth and creating long-term value for our shareholders.”

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

Avidbank Holdings, Inc. Third Quarter 2026 Financial Results Press Release

Results of Operations

Net interest income totaled $28.7 million for the third quarter of 2026, an increase of $2.0 million, or 30% annualized, from the second quarter of 2026, and an increase of $6.0 million, or 27%, from the third quarter of 2025. The increase in net interest income compared to the prior quarter was primarily due to temporarily higher deposit balances resulting in higher cash balances, along with higher average loan balances and higher balances of debt securities. The increase compared to the third quarter of 2025 was driven by higher average loan balances, higher yields on securities, lower deposit costs and lower average short-term borrowings. For the nine months ended September 30, 2026, net interest income increased $19.6 million, or 31%, compared to the nine months ended September 30, 2025.

Net interest margin was 4.07% in the third quarter of 2026, a decrease of 19 basis points compared to the second quarter of 2026, and a 17 basis point increase compared to the third quarter of 2025. The decrease in net interest margin compared to the prior quarter was primarily driven by a $205 million increase in average interest-earning cash balances primarily due to temporarily higher deposit balances, impacting the net interest margin by approximately 17 basis points.

The increase in net interest margin compared to the third 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 nine months ended September 30, 2026, net interest margin was 4.23%, an increase of 55 basis points from 3.68% for the nine months ended September 30, 2025.

The yield on loans in the third quarter of 2026 was 6.66%, relatively flat compared to the second quarter of 2026 and a decrease of 32 basis points from the third quarter of 2025, primarily driven by reductions in the Prime rate. The yield on securities increased in the third quarter of 2026 to 4.77% compared to 4.68% in the second quarter of 2026 due to securities purchases and increased from 2.55% in the third quarter of 2025 due to the balance sheet restructuring in 2025. For the nine months ended September 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 decreased 19 basis points during the third quarter of 2026 compared to the second quarter of 2026 and decreased 24 basis points compared to the third quarter of 2025. The decrease from the second 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. The increase in interest-earning cash balances from the temporary increase in deposits during the third quarter of 2026 was estimated to negatively impact the yield on interest-earning assets by 20 basis points. The decrease compared to the third 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 nine months ended September 30, 2026, the yield on interest-earning assets decreased 1 basis point compared to the same period in the prior year.

The cost of interest-bearing deposits in the third quarter of 2026 was 2.97%, a decrease of 9 basis points compared to the second quarter of 2026 and a decrease of 53 basis points compared to the third quarter of 2025. The cost of deposits in the third quarter of 2026 was 2.29%, flat compared to the second quarter of 2026 and a decrease of 38 basis points from the third quarter of 2025, primarily driven by the reduction in the Federal Funds rate. Overall funding costs decreased 9 basis points from the second quarter of 2026 and decreased 55 basis points compared to the third quarter of 2025. For the nine months ended September 30, 2026, the cost of interest-bearing deposits was 3.00%, a decrease of 52 basis points compared to the same period in the prior year. The cost of deposits for the nine months ended September 30, 2026, was down 46 basis points compared to the same period in 2025, while overall funding costs declined 58 basis points for the same period compared to the prior year.

The provision for credit losses was $1.2 million in the third quarter of 2026, compared to $2.8 million in the second quarter of 2026 and $1.4 million in the third quarter of 2025. The provision was lower in the third quarter of 2026 compared to the second quarter of 2026 primarily due to a $1.9 million partial charge-off of one non-performing construction loan during the second quarter of 2026. The provision was lower compared to the third quarter of 2025 due to the addition of a $1.5 million non-performing commercial and industrial loan in the third quarter of 2025. For the nine months ended September 30, 2026, the provision for credit losses totaled $5.4 million compared to $2.3 million for the nine months ended September 30, 2025.

Avidbank Holdings, Inc. Third Quarter 2026 Financial Results Press Release

Non-interest income was $1.7 million in the third quarter of 2026 compared to $3.1 million in the second quarter of 2026 and a loss of $60.9 million in the third quarter of 2025. The decrease during the third quarter of 2026 was primarily driven by income of approximately $1.3 million on the death benefit proceeds of BOLI policies received during the second quarter of 2026. The increase compared to the third quarter of 2025 was due to the loss on the sale of securities resulting from the repositioning of the available-for-sale securities portfolio during the third quarter of 2025. For the nine months ended September 30, 2026, non-interest income totaled $6.2 million compared to a loss of $58.1 million for the nine months ended September 30, 2025.

Non-interest expense totaled $15.1 million for the third quarter of 2026, compared to $16.5 million in the second quarter of 2026 and $13.5 million in the third quarter of 2025. The decrease in non-interest expense was due to the $2.6 million settlement of outstanding litigation during the second quarter of 2026, partially offset by an increase in salaries and employee benefits during the third quarter of 2026. For the nine months ended September 30, 2026, non-interest expense totaled $45.7 million, an increase of $6.7 million, or 17%, compared to the same period in the prior year. Excluding the litigation settlement, adjusted non-interest expense

(1) in the third quarter of 2026 increased $1.3 million primarily due to an increase of $615 thousand in salaries and employee benefits and a $419 thousand increase in legal and professional fees, including higher recruiting fees and credit-related legal fees. There were 171 full-time equivalent employees on September 30, 2026, compared to 162 on June 30, 2026, and 151 on September 30, 2025.

The effective tax rate for the third quarter of 2026 was 27.7% compared to 27.0% in the second quarter of 2026 and 28.9% in the third quarter of 2025. The increase compared to the second quarter of 2026 was primarily due to the recognition of approximately $1.3 million in tax-exempt BOLI proceeds during the second quarter of 2026. For the nine months ended September 30, 2026, the effective tax rate was 27.4% compared to 28.5% 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 nine months of 2026 included approximately $881 thousand in discrete tax benefits related to the vesting of equity awards compared to approximately $121 thousand for the same period in 2025.

Financial Condition

Total assets were $2.97 billion as of September 30, 2026, compared to $2.66 billion as of June 30, 2026, and $2.36 billion as of September 30, 2025. Cash and cash equivalents were $354.1 million on September 30, 2026, compared to $159.9 million on June 30, 2026, and $177.3 million on September 30, 2025. The increase in cash and cash equivalents was primarily due to a temporary increase in deposit balances during the third quarter of 2026.

Loans, net of deferred fees, on September 30, 2026, totaled $2.28 billion, an increase of $58.4 million, or 10% annualized, from June 30, 2026, and an increase of $323.9 million, or 17%, from September 30, 2025. Loan growth during the third quarter of 2026 included increases of $20.7 million in commercial and industrial loans, $17.8 million in multi-family loans, $13.6 million in owner-occupied real estate loans, and $8.8 million in non-owner-occupied real estate loans, partially offset by a decrease of $2.6 million in construction and land loans.

The allowance for credit losses on loans was $22.8 million on September 30, 2026, an increase of $1.3 million from June 30, 2026, and an increase of $1.8 million compared to September 30, 2025. The allowance for credit losses – loans and unfunded commitments to total loans was 1.11 % on September 30, 2026, compared to 1.09 % on June 30, 2026 and 1.19 % as of September 30, 2025. Non-performing loans to total loans was 0.70% at September 30, 2026, up 5 basis points compared to June 30, 2026 and up 56 basis points from September 30, 2025. The increase in the third quarter of 2026 was due to a land loan totaling $1.5 million being placed on nonaccrual.

The available-for-sale securities portfolio totaled $279.7 million as of September 30, 2026, compared to $232.2 million at June 30, 2026, and $173.6 million as of September 30, 2025. The net unrealized loss on the available-for-sale portfolio totaled $13.1 million as of September 30, 2026, compared to $2.8 million at June 30, 2026 and $689 thousand as of September 30, 2025.

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

Avidbank Holdings, Inc. Third Quarter 2026 Financial Results Press Release

Deposits were $2.61 billion on September 30, 2026, an increase of $290.1 million, or 50% annualized, from June 30, 2026, and an increase of $562.9 million, or 27% from September 30, 2025. The change in deposits during the third quarter of 2026 included a $345.4 million increase in money market and savings deposits, including the impact of approximately $270.0 million from a temporary deposit, an increase of $30.3 million in interest-bearing demand deposits, and a $3.2 million increase in time deposits, partially offset by a decrease of $55.5 million in non-reciprocal brokered deposits and a decrease of $33.4 million in non-interest-bearing checking deposits. Quarterly average deposits for the third quarter of 2026 were $2.49 billion, an increase of $283.8 million from the second quarter of 2026, and an increase of $449.9 million from the third quarter of 2025. Average money market and savings deposits increased $198.8 million compared to the second quarter of 2026 and $275.4 million compared to the third quarter of 2025. Average non-interest-bearing demand deposits increased $19.1 million compared to the second quarter of 2026 and $88.9 million compared to the third quarter of 2025.

There were no short-term borrowings outstanding at September 30, 2026, June 30, 2026, or September 30, 2025. During the third quarter of 2026, the Company issued $30.0 million of new 7.00% fixed-to-floating rate subordinated notes due 2036 and used a portion of the proceeds to retire all $22.0 million of its fixed-to-floating rate subordinated notes due 2029. The new subordinated notes carry a fixed rate of interest of 7.00% for the first five years after issuance and are not redeemable until September 1, 2031 (or any interest payment date thereafter) except in certain limited circumstances.

Book value per share was $27.24 at September 30, 2026, an increase of $0.27 from June 30, 2026. The increase was partially offset by a $7.4 million increase in accumulated other comprehensive loss, net of tax, primarily due to the impact of higher interest rates on the fair value of available-for-sale securities. Accumulated other comprehensive loss reduced book value per share by $0.85 at September 30, 2026, compared to $0.17 at June 30, 2026. Total shareholders’ equity was $299.5 million on September 30, 2026, an increase of $3.3 million compared to June 30, 2026, and an increase of $26.4 million from September 30, 2025. No shares were repurchased during the third quarter of 2026, compared to 25,000 shares repurchased during the first half of 2026.

Other Information

The Company will host a conference call on October 27, 2026, at 11:00 a.m. (Eastern Time) / 8:00 a.m. (Pacific Time) to discuss the earnings results for the third 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: 530 848 984). Participants may also pre-register for the conference by navigating to https://events.q4inc.com/attendee/530848984.

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 October 27, 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 to the SEC and available at www.sec.gov.

About Avidbank Holdings

Avidbank Holdings, Inc. (NASDAQ: AVBH), headquartered in San Jose, California, offers innovative financial solutions and services. We specialize in commercial and industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, fund finance, 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, and 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 non-interest expense, adjusted efficiency ratio, taxable equivalent net interest income and taxable equivalent net interest margin 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; 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 prove 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

IR@avidbank.com

AVIDBANK HOLDINGS, INC.

Selected Financial Data (Unaudited)

For the Three Months Ended

For the Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(In thousands, except share and per share amounts)

2026

2025

2026

2025

INCOME HIGHLIGHTS

Net income / (loss)

10,184

7,647

9,021

6,949

(37,735

)

26,852

(26,502

)

Net income – adjusted

(2)

10,184

8,197

9,021

6,949

6,707

27,402

17,940

PER SHARE DATA

Basic earnings / (loss) per share

0.96

0.72

0.85

0.66

(4.12

)

2.53

(3.28

)

Diluted earnings / (loss) per share

0.94

0.71

0.84

0.65

(4.12

)

2.49

(3.28

)

Diluted earnings per share – adjusted

(2)

0.94

0.76

0.84

0.65

0.72

2.54

2.18

Book value per share

27.24

26.97

26.33

25.66

25.00

27.24

25.00

PERFORMANCE MEASURES

Return on average assets

(1)

1.42

1.20

1.46

1.12

(6.35

1.36

(1.53

Return on average assets – adjusted

(1) (2)

1.42

1.28

1.46

1.12

1.13

1.39

1.03

Return on average equity

(1)

13.43

10.40

12.74

9.90

(63.19

12.20

(16.88

Return on average equity – adjusted

(1) (2)

13.43

11.15

12.74

9.90

11.23

12.45

11.42

Net interest margin

(1)

4.07

4.26

4.38

4.13

3.90

4.23

3.68

Efficiency ratio

49.80

55.41

50.35

51.72

(35.28

51.87

938.30

Efficiency ratio – adjusted

(2)

49.80

48.73

50.35

51.72

55.72

49.63

58.51

Average loans to average deposits

89.36

99.32

99.98

94.78

94.14

95.86

96.05

CAPITAL

Tier 1 leverage ratio

(3)

10.82

11.50

11.39

11.23

11.14

10.82

11.10

Common equity tier 1 capital ratio

(3)

11.45

11.35

11.39

11.05

11.68

11.45

11.68

Tier 1 risk-based capital ratio

(3)

11.45

11.35

11.39

11.05

11.68

11.45

11.68

Total risk-based capital ratio

(3)

13.48

12.79

12.85

12.57

13.48

Common equity ratio

10.10

11.13

11.18

10.93

11.56

10.10

11.56

SHARES OUTSTANDING

Number of common shares outstanding

10,996,074

10,982,764

10,955,167

10,947,967

10,925,102

10,996,074

10,925,102

Weighted average shares outstanding – basic

10,626,969

10,607,949

10,600,902

10,579,753

9,168,707

10,612,036

8,069,830

Weighted average shares outstanding – diluted

10,803,901

10,776,924

10,773,884

10,754,488

9,168,707

10,785,050

8,069,830

Weighted average shares outstanding – diluted – adjusted

(2)

10,803,901

10,776,924

10,773,884

10,754,488

9,353,444

10,785,050

8,247,765

ASSET QUALITY

Total allowance for credit losses-loans and unfunded commitments to total loans

1.11

1.09

1.07

1.15

1.19

1.11

1.19

Non-performing assets to total assets

0.54

0.63

0.95

0.12

0.54

0.12

Non-performing loans to total loans

0.70

0.65

0.75

1.14

0.14

0.70

0.14

Net charge-offs to average loans

(1)

0.00

0.35

0.52

0.30

(0.01

0.28

(0.01

AVERAGE BALANCES

Loans, net of deferred fees

2,228,603

2,195,164

2,150,688

2,024,325

1,924,537

2,191,770

1,890,413

Debt securities available-for-sale

262,585

219,942

216,507

196,462

181,154

233,180

256,650

Total assets

2,845,991

2,565,538

2,504,616

2,459,110

2,357,158

2,639,965

2,323,365

Deposits

2,494,085

2,210,267

2,151,059

2,135,876

2,044,228

2,286,394

1,968,059

Shareholders' equity

300,781

294,826

287,191

278,382

236,903

294,316

209,965

PERIOD-END BALANCES

Loans, net of deferred fees

2,282,528

2,224,119

2,172,846

2,148,439

1,958,585

2,282,528

1,958,585

Debt securities available-for-sale

279,712

232,196

210,583

218,160

173,588

279,712

173,588

Total assets

2,966,832

2,660,440

2,579,554

2,569,643

2,362,454

2,966,832

2,362,454

Deposits

2,612,046

2,321,948

2,199,319

2,186,073

2,049,158

2,612,046

2,049,158

Shareholders' equity

299,510

296,185

288,438

280,979

273,113

299,510

273,113

(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 and nine months ended September 30, 2026.

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Financial Condition (Unaudited)

September 30,

June 30,

March 31,

December 31,

September 30,

(In thousands)

2026

2025

Assets

Cash and due from financial institutions

9,229

13,897

10,569

7,942

12,006

Due from Federal Reserve Bank and interest-bearing deposits in other financial institutions

344,830

146,012

138,473

146,627

165,313

Total cash and cash equivalents

354,059

159,909

149,042

154,569

177,319

Debt securities available-for-sale

279,712

232,196

210,583

218,160

173,588

Loans, net of deferred fees

2,282,528

2,224,119

2,172,846

2,148,439

1,958,585

Allowance for credit losses on loans

(22,789

)

(21,501

)

(20,938

)

(22,261

)

(21,025

)

Loans, net of allowance for credit losses on loans

2,259,739

2,202,618

2,151,908

2,126,178

1,937,560

Cash surrender value of bank-owned life insurance policies

11,540

11,443

13,151

13,045

12,953

Premises and equipment, net

984

1,151

1,340

1,526

1,739

Accrued interest receivable and other assets

60,798

53,123

53,530

56,165

59,295

Total assets

2,966,832

2,660,440

2,579,554

2,569,643

2,362,454

Liabilities and Shareholders' Equity

Deposits:

Non-interest-bearing

535,128

568,509

577,101

556,972

471,770

Interest-bearing checking

1,145,612

1,115,263

1,036,178

1,069,272

1,069,344

Money market and savings

883,797

538,399

519,059

532,149

465,198

Time

37,509

34,311

28,521

27,680

42,846

Non-reciprocal brokered

(1)

10,000

65,466

38,460

–

Total deposits

2,612,046

2,321,948

2,199,319

2,186,073

2,049,158

Short-term borrowings

–

55,000

60,000

–

Subordinated debentures, net

29,130

22,000

Accrued interest payable and other liabilities

26,146

20,307

14,797

20,591

18,183

Total liabilities

2,667,322

2,364,255

2,291,116

2,288,664

2,089,341

Shareholders' Equity

Common stock

170,843

170,284

169,474

169,990

169,342

Retained earnings

138,002

127,818

120,171

111,150

104,201

Accumulated other comprehensive loss, net of taxes

(9,335

)

(1,917

)

(1,207

)

(161

)

(430

)

Total shareholders' equity

299,510

296,185

288,438

280,979

273,113

Total liabilities and shareholders' equity

2,966,832

2,660,440

2,579,554

2,569,643

2,362,454

(1) FDIC regulations provide a limited exception from brokered deposit classification for certain reciprocal deposits, subject to a general cap determined using a tiered calculation based on the Bank's total liabilities. Due to changes from the 21st Century ROAD to Housing Act, as of September 30, 2026, none of the Bank's reciprocal deposits exceeded the applicable general cap to be classified as brokered deposits. As of June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, an additional $513.0 million, $447.6 million, $475.4 million and $522.5 million of our deposits, respectively, were considered brokered deposits by the FDIC due to being in excess of the general cap then in effect.

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Operations (Unaudited)

For the Nine

For the Three Months Ended

Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(in thousands, except share and per share amounts)

2026

2025

2026

2025

Interest and fees on loans

37,426

36,484

35,429

34,093

33,880

109,339

98,732

Interest on debt securities

3,150

2,559

2,467

2,274

1,157

8,176

4,609

Federal Home Loan Bank dividends

200

426

185

184

646

550

Other interest income

2,796

864

716

1,775

2,033

4,376

3,532

Total interest income

43,572

39,927

39,038

38,327

37,254

122,537

107,423

Interest on deposits

14,411

12,640

11,899

12,887

13,776

38,950

40,272

Interest on short-term borrowings

–

196

240

385

437

3,538

Interest on subordinated debentures

487

410

399

421

443

1,296

1,321

Total interest expense

14,898

13,246

12,538

13,314

14,604

40,683

45,131

Net interest income

28,674

26,681

26,500

25,013

22,650

81,854

62,292

Provision for credit losses

1,151

2,789

1,445

2,838

1,355

5,385

2,280

Net interest income after provision for credit losses

27,523

23,892

25,055

22,175

21,295

76,469

60,012

Service charges and fees

887

851

821

797

779

2,559

2,381

Foreign exchange income

324

340

363

254

267

1,027

683

Bank-owned life insurance income

(1)

1,497

106

1,700

279

Credit card income

106

113

101

320

254

Warrant and success fee income

112

375

–

179

273

Other investment income

(22

)

146

315

112

339

Net loss on sale of debt securities

–

(62,391

)

–

(62,391

)

Other income

115

106

316

Total non-interest income

1,696

3,050

1,467

1,767

(60,852

)

6,213

(58,143

)

Salaries and employee benefits

10,178

9,563

9,555

9,574

9,766

29,296

27,841

Legal and professional fees

1,316

897

1,188

890

591

3,401

1,817

Data processing

901

787

799

770

792

2,487

2,166

Occupancy and equipment

830

777

790

730

723

2,397

2,478

Regulatory assessments

486

515

566

521

445

1,567

1,409

Other operating expenses

1,414

3,934

1,184

1,366

1,162

6,531

3,219

Total non-interest expense

15,125

16,473

14,082

13,851

13,479

45,679

38,930

Income / (loss) before income taxes

14,094

10,469

12,440

10,091

(53,036

)

37,003

(37,061

)

Provision / (benefit) for income taxes

3,910

2,822

3,419

3,142

(15,301

)

10,151

(10,559

)

Net income / (loss)

10,184

7,647

9,021

6,949

(37,735

)

26,852

(26,502

)

Basic earnings / (loss) per common share

0.96

0.72

0.85

0.66

(4.12

)

2.53

(3.28

)

Diluted earnings / (loss) per common share

0.94

0.71

0.84

0.65

(4.12

)

2.49

(3.28

)

Weighted average shares – basic

10,626,969

10,607,949

10,600,902

10,579,753

9,168,707

10,612,036

8,069,830

Weighted average shares – diluted

10,803,901

10,776,924

10,773,884

10,754,488

9,168,707

10,785,050

8,069,830

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

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

For the Three Months Ended

September 30, 2026

June 30, 2026

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

(In thousands)

Balance

Expense

Rates

(6)

Balance

Expense

Rates

(6)

Assets

Interest-earning assets:

Loans, net of deferred fees

(1)

$ 2,228,603

$ 37,426

6.66 %

$ 2,195,164

$ 36,484

6.67 %

Interest-earning deposits

296,047

2,796

3.75 %

91,304

864

3.80 %

Debt securities

Taxable debt securities

259,993

3,120

4.76 %

217,311

2,529

4.67 %

Non-taxable debt securities

(2)

2,592

5.82 %

2,631

5.79 %

Total debt securities

262,585

3,158

4.77 %

219,942

2,567

4.68 %

FHLB stock

(5)

8,409

200

9.44 %

8,409

0.95 %

Total interest-earning assets

2,795,644

43,580

6.18 %

2,514,819

39,935

6.37 %

Non-interest-earning assets:

Cash and due from financial institutions

12,543

16,004

All other assets

(3)

37,804

34,715

Total assets

$ 2,845,991

$ 2,565,538

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 1,136,531

$ 9,249

3.23 %

$ 1,055,578

$ 8,368

3.18 %

Money market and savings

708,537

4,458

2.50 %

509,766

3,427

2.70 %

Time deposits

37,044

300

3.21 %

35,454

285

3.22 %

Non-reciprocal brokered deposits

40,246

404

3.98 %

56,810

560

3.95 %

Total interest-bearing deposits

1,922,358

14,411

2.97 %

1,657,608

12,640

3.06 %

Short-term borrowings

–

0.00 %

20,703

196

3.80 %

Subordinated debentures, net

26,506

487

7.29 %

22,000

410

7.48 %

Total interest-bearing liabilities

1,948,864

14,898

3.03 %

1,700,311

13,246

3.12 %

Non-interest-bearing liabilities:

Demand deposits

571,727

552,659

Accrued expenses and other liabilities

24,619

17,742

Shareholders' equity

300,781

294,826

Total liabilities and shareholders' equity

$ 2,845,991

$ 2,565,538

Net interest spread

3.15 %

3.25 %

Net interest income and margin

(4)

$ 28,682

4.07 %

$ 26,689

4.26 %

Non-taxable equivalent net interest margin

4.07 %

4.26 %

Cost of deposits

$ 2,494,085

$ 14,411

2.29 %

$ 2,210,267

$ 12,640

2.29 %

(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 $281 thousand and $260 thousand, for the three months ended September 30, 2026 and June 30, 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 average allowance for credit losses on loans of $21.5 million and $20.5 million, respectively.

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

(5) Includes a special FHLB dividend totaling $100 thousand for the three months ended September 30, 2026.

(6) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

For the Three Months Ended

September 30, 2026

September 30, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

(In thousands)

Balance

Expense

Rates

(6)

Balance

Expense

Rates

(6)

Assets

Interest-earning assets:

Loans, net of deferred fees

(1)

$ 2,228,603

$ 37,426

6.66 %

$ 1,924,537

$ 33,880

6.98 %

Interest-earning deposits

296,047

2,796

3.75 %

189,921

2,033

4.25 %

Debt securities

Taxable debt securities

259,993

3,120

4.76 %

178,637

1,126

2.50 %

Non-taxable debt securities

(2)

2,592

5.82 %

2,517

6.15 %

Total debt securities

262,585

3,158

4.77 %

181,154

1,165

2.55 %

FHLB stock

(5)

8,409

200

9.44 %

8,409

184

8.68 %

Total interest-earning assets

2,795,644

43,580

6.18 %

2,304,021

37,262

6.42 %

Non-interest-earning assets:

Cash and due from financial institutions

12,543

7,019

All other assets

(3)

37,804

46,118

Total assets

$ 2,845,991

$ 2,357,158

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 1,136,531

$ 9,249

3.23 %

$ 1,074,064

$ 9,961

3.68 %

Money market and savings

708,537

4,458

2.50 %

433,135

3,336

3.06 %

Time deposits

37,044

300

3.21 %

43,897

365

3.30 %

Non-reciprocal brokered deposits

40,246

404

3.98 %

10,283

114

4.40 %

Total interest-bearing deposits

1,922,358

14,411

2.97 %

1,561,379

13,776

3.50 %

Short-term borrowings

–

0.00 %

33,500

385

4.56 %

Subordinated debentures, net

26,506

487

7.29 %

22,000

443

7.99 %

Total interest-bearing liabilities

1,948,864

14,898

3.03 %

1,616,879

14,604

3.58 %

Non-interest-bearing liabilities:

Demand deposits

571,727

482,849

Accrued expenses and other liabilities

24,619

20,527

Shareholders' equity

300,781

236,903

Total liabilities and shareholders' equity

$ 2,845,991

$ 2,357,158

Net interest spread

3.15 %

2.83 %

Net interest income and margin

(4)

$ 28,682

4.07 %

$ 22,658

3.90 %

Non-taxable equivalent net interest margin

4.07 %

3.90 %

Cost of deposits

$ 2,494,085

$ 14,411

2.29 %

$ 2,044,228

$ 13,776

2.67 %

(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 $281 thousand and $444 thousand, for the three months ended September 30, 2026 and September 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 average allowance for credit losses on loans of $21.5 million and $20.1 million, respectively.

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

(5) Includes a special FHLB dividend totaling $100 thousand for the three months ended September 30, 2026.

(6) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

For the Nine Months Ended

September 30, 2026

September 30, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

(In thousands)

Balance

Expense

Rates

(6)

Balance

Expense

Rates

(6)

Assets

Interest-earning assets:

Loans, net of deferred fees

(1)

$ 2,191,770

$ 109,339

6.67 %

$ 1,890,413

$ 98,732

6.98 %

Interest-earning deposits

156,199

4,376

3.75 %

109,743

3,532

4.30 %

Debt securities

Taxable debt securities

230,544

8,084

4.69 %

254,061

4,517

2.38 %

Non-taxable debt securities

(2)

2,636

116

5.88 %

2,589

116

5.99 %

Total debt securities

233,180

8,200

4.70 %

256,650

4,633

2.41 %

FHLB stock

(5)

8,409

646

10.27 %

8,409

550

8.74 %

Total interest-earning assets

2,589,558

122,561

6.33 %

2,265,215

107,447

6.34 %

Non-interest-earning assets:

Cash and due from financial institutions

13,866

9,975

All other assets

(3)

36,541

48,175

Total assets

$ 2,639,965

$ 2,323,365

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 1,086,798

$ 25,878

3.18 %

$ 1,023,572

$ 27,974

3.65 %

Money market and savings

579,249

11,274

2.60 %

405,844

9,301

3.06 %

Time deposits

33,397

791

3.17 %

50,466

1,323

3.51 %

Non-reciprocal brokered deposits

34,005

1,007

3.96 %

49,978

1,674

4.48 %

Total interest-bearing deposits

1,733,449

38,950

3.00 %

1,529,860

40,272

3.52 %

Short-term borrowings

15,308

437

3.82 %

103,495

3,538

4.57 %

Subordinated debentures, net

23,517

1,296

7.37 %

22,000

1,321

8.03 %

Total interest-bearing liabilities

1,772,274

40,683

3.07 %

1,655,355

45,131

3.65 %

Non-interest-bearing liabilities:

Demand deposits

552,945

438,199

Accrued expenses and other liabilities

20,430

19,846

Shareholders' equity

294,316

209,965

Total liabilities and shareholders' equity

$ 2,639,965

$ 2,323,365

Net interest spread

3.26 %

2.70 %

Net interest income and margin

(4)

$ 81,878

4.23 %

$ 62,316

3.68 %

Non-taxable equivalent net interest margin

4.23 %

3.68 %

Cost of deposits

$ 2,286,394

$ 38,950

2.28 %

$ 1,968,059

$ 40,272

2.74 %

(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 $793 thousand and $1.4 million, for the nine months ended September 30, 2026 and September 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 average allowance for credit losses on loans of $21.3 million and $19.3 million, respectively.

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

(5) Includes special FHLB dividends totaling $341 thousand for the nine months ended September 30, 2026.

(6) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Asset Quality Data (Unaudited)

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

As of/For the Year-to-Date Period Ended September 30,

(In thousands)

2026

2025

2026

2025

Allowance for Credit Losses on Loans

Balance, beginning of period

$ 21,501

$ 20,938

$ 22,261

$ 21,025

$ 19,624

$ 22,261

$ 18,679

Provision for credit losses on loans

1,299

2,461

1,433

2,759

1,364

5,193

2,255

Charge-offs

(11 )

(1,901 )

(3,171 )

(1,523

)

–

(5,083 )

–

Recoveries

–

415

–

418

Balance, end of period

$ 22,789

$ 21,501

$ 20,938

$ 22,261

$ 21,025

$ 22,789

$ 21,025

Allowance for Credit Losses on Unfunded Commitments

Balance, beginning of period

$ 2,691

$ 2,363

$ 2,351

$ 2,272

$ 2,281

$ 2,351

$ 2,247

Provision for unfunded commitments

(148

)

328

)

192

Balance, end of period

$ 2,543

$ 2,691

$ 2,363

$ 2,351

$ 2,272

$ 2,543

$ 2,272

Total allowance for credit losses - loans and unfunded commitments

$ 25,332

$ 24,192

$ 23,301

$ 24,612

$ 23,297

$ 25,332

$ 23,297

Provision for credit losses

Provision for credit losses on loans

$ 1,299

$ 2,461

$ 1,433

$ 2,759

$ 1,364

$ 5,193

$ 2,255

Provision for unfunded commitments

(148

)

328

)

192

Total provision for credit losses

$ 1,151

$ 2,789

$ 1,445

$ 2,838

$ 1,355

$ 5,385

$ 2,280

Non-Performing Assets

Loans accounted for on a non-accrual basis

$ 15,937

$ 14,448

$ 16,323

$ 24,502

$ 2,761

$ 15,937

$ 2,761

Loans past due 90 days or more and still accruing

–

Non-performing loans

15,937

14,448

16,323

24,502

2,761

15,937

2,761

Other real estate owned

–

Non-performing assets

$ 15,937

$ 14,448

$ 16,323

$ 24,502

$ 2,761

$ 15,937

$ 2,761

Non-Performing Loans by Type

Commercial and industrial

$ –

$ 5,088

$ 2,761

$ –

$ 2,761

Construction and land

15,937

14,448

16,323

19,414

–

15,937

–

Total non-performing loans

$ 15,937

$ 14,448

$ 16,323

$ 24,502

$ 2,761

$ 15,937

$ 2,761

Asset Quality Ratios

Allowance for credit losses on loans to total loans

1.00 %

0.97 %

0.96 %

1.04 %

1.07 %

1.00 %

1.07 %

Total allowance for credit losses-loans and unfunded commitments to total loans

1.11 %

1.09 %

1.07 %

1.15 %

1.19 %

1.11 %

1.19 %

Allowance for credit losses on loans to non-performing loans

142.99 %

148.82 %

128.27 %

90.85 %

761.50 %

142.99 %

761.50 %

Non-performing assets to total assets

0.54 %

0.63 %

0.95 %

0.12 %

0.54 %

0.12 %

Non-performing loans to total loans

0.70 %

0.65 %

0.75 %

1.14 %

0.14 %

0.70 %

0.14 %

Net charge-offs to average loans

(1)

0.00 %

0.35 %

0.52 %

0.30 %

(0.01 )%

0.28 %

(0.01 )%

Criticized loans to total loans

1.68 %

2.16 %

1.57 %

0.50 %

1.48 %

1.68 %

1.48 %

Classified loans to total loans

1.31 %

0.96 %

0.92 %

1.22 %

0.44 %

1.31 %

0.44 %

(1) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Loans and Deposits (Unaudited)

Current

Year

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Quarter

Over Year

(In thousands)

2026

2025

Change

Loans

Commercial and industrial loans

1,132,350

1,111,610

1,040,684

1,049,530

871,524

20,740

260,826

Commercial real estate

Multi-family

298,632

280,787

268,057

265,105

249,802

17,845

48,830

Owner-Occupied

210,980

197,371

164,191

165,130

176,171

13,609

34,809

Non-Owner-Occupied

440,584

431,774

450,503

424,107

412,623

8,810

27,961

Construction and land

161,623

164,200

200,272

196,243

209,750

(2,577

)

(48,127

)

Residential

37,933

38,007

48,726

45,669

36,399

(74

)

1,534

Total real estate loans

1,149,752

1,112,139

1,131,749

1,096,254

1,084,745

37,613

65,007

Consumer loans

426

370

413

2,655

2,316

(1,890

)

Total loans, net of deferred fees

2,282,528

2,224,119

2,172,846

2,148,439

1,958,585

58,409

323,943

Total unfunded commitments

818,529

788,097

711,592

707,283

711,048

30,432

107,481

Deposits

Non-interest-bearing demand

535,128

568,509

577,101

556,972

471,770

(33,381

)

63,358

Interest-bearing checking

1,145,612

1,115,263

1,036,178

1,069,272

1,069,344

30,349

76,268

Money market and savings

883,797

538,399

519,059

532,149

465,198

345,398

418,599

Time

37,509

34,311

28,521

27,680

42,846

3,198

(5,337

)

Non-reciprocal brokered

(1)

10,000

65,466

38,460

–

(55,466

)

10,000

Total deposits

2,612,046

2,321,948

2,199,319

2,186,073

2,049,158

290,098

562,888

Average Deposits

Non-interest-bearing demand

571,727

552,659

534,033

526,610

482,849

19,068

88,878

Interest-bearing checking

1,136,531

1,055,578

1,067,528

1,088,413

1,074,064

80,953

62,467

Money market and savings

708,537

509,766

517,342

489,587

433,135

198,771

275,402

Time

37,044

35,454

27,589

31,266

43,897

1,590

(6,853

)

Non-reciprocal brokered

40,246

56,810

4,567

–

10,283

(16,564

)

29,963

Total deposits

2,494,085

2,210,267

2,151,059

2,135,876

2,044,228

283,818

449,857

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 non-interest expense, adjusted efficiency ratio, taxable equivalent net interest income and taxable equivalent net interest margin 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 Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

(In thousands)

2026

2025

2026

2025

Non-GAAP adjusted net income reconciliation

Net income / (loss) – GAAP

10,184

7,647

9,021

6,949

(37,735

)

26,852

(26,502

)

Settlement of litigation

–

2,637

–

2,637

–

BOLI death benefit income

–

(1,338

)

–

(1,338

)

–

Loss on sale of securities

–

62,391

–

62,391

Tax effect of adjustments

–

(749

)

–

(17,949

)

(749

)

(17,949

)

Net income – adjusted (non-GAAP)

10,184

8,197

9,021

6,949

6,707

27,402

17,940

Non-GAAP adjusted diluted earnings per share reconciliation

Diluted earnings / (loss) per share – GAAP

0.94

0.71

0.84

0.65

(4.12

)

2.49

(3.28

)

Settlement of litigation, net of income tax

–

0.17

–

0.17

–

BOLI death benefit income

–

(0.12

)

–

(0.12

)

–

Loss on sale of securities, net of income tax

–

4.84

–

5.46

Diluted earnings per share – adjusted (non-GAAP)

0.94

0.76

0.84

0.65

0.72

2.54

2.18

Weighted average shares outstanding – diluted – adjusted

10,803,901

10,776,924

10,773,884

10,754,488

9,353,444

10,785,050

8,247,765

Non-GAAP adjusted return on average assets reconciliation

Net income / (loss) – GAAP

10,184

7,647

9,021

6,949

(37,735

)

26,852

(26,502

)

Average total assets

2,845,991

2,565,538

2,504,616

2,459,110

2,357,158

2,639,965

2,323,365

Return on average assets – GAAP

(1)

1.42

1.20

1.46

1.12

(6.35

1.36

(1.53

Net income – adjusted (non-GAAP)

10,184

8,197

9,021

6,949

6,707

27,402

17,940

Average total assets

2,845,991

2,565,538

2,504,616

2,459,110

2,357,158

2,639,965

2,323,365

Return on average assets – adjusted (non-GAAP)

(1)

1.42

1.28

1.46

1.12

1.13

1.39

1.03

Non-GAAP adjusted return on average equity reconciliation

Net income / (loss) – GAAP

10,184

7,647

9,021

6,949

(37,735

)

26,852

(26,502

)

Average total equity

300,781

294,826

287,191

278,382

236,903

294,316

209,965

Return on average equity – GAAP

(1)

13.43

10.40

12.74

9.90

(63.19

12.20

(16.88

Net income – adjusted (non-GAAP)

10,184

8,197

9,021

6,949

6,707

27,402

17,940

Average total equity

300,781

294,826

287,191

278,382

236,903

294,316

209,965

Return on average equity – adjusted (non-GAAP)

(1)

13.43

11.15

12.74

9.90

11.23

12.45

11.42

Non-GAAP adjusted non-interest expense reconciliation

Non-interest expense

15,125

16,473

14,082

13,851

13,479

45,679

38,930

Settlement of litigation

–

(2,637

)

–

(2,637

)

–

Non-interest expense – adjusted

15,125

13,836

14,082

13,851

13,479

43,042

38,930

Non-GAAP adjusted efficiency ratio reconciliation

Non-interest expense

15,125

16,473

14,082

13,851

13,479

45,679

38,930

Net interest income

28,674

26,681

26,500

25,013

22,650

81,854

62,292

Non-interest income

1,696

3,050

1,467

1,767

(60,852

)

6,213

(58,143

)

Efficiency ratio – GAAP

49.80

55.41

50.35

51.72

(35.28

51.87

938.30

Non-interest expense – adjusted

15,125

13,836

14,082

13,851

13,479

43,042

38,930

Net interest income

28,674

26,681

26,500

25,013

22,650

81,854

62,292

Non-interest income

1,696

3,050

1,467

1,767

(60,852

)

6,213

(58,143

)

BOLI death benefit income

–

(1,338

)

–

(1,338

)

–

Loss on sale of securities

–

62,391

–

62,391

Non-interest income – adjusted

1,696

1,712

1,467

1,767

1,539

4,875

4,248

Efficiency ratio – adjusted (non-GAAP)

49.80

48.73

50.35

51.72

55.72

49.63

58.51

Non-GAAP taxable equivalent net interest income reconciliation

Net interest income – GAAP

28,674

26,681

26,500

25,013

22,650

81,854

62,292

Taxable equivalent adjustment

Net interest income – taxable equivalent (non-GAAP)

28,682

26,689

26,508

25,021

22,658

81,878

62,316

Non-GAAP taxable equivalent net interest margin reconciliation

Net interest margin - GAAP

(1)

4.07

4.26

4.38

4.13

3.90

4.23

3.68

Impact of taxable equivalent adjustment

–

Net interest margin - taxable equivalent (non-GAAP)

(1)

4.07

4.26

4.38

4.13

3.90

4.23

3.68

(1)

Annualized for the periods presented.

EX-99.2 — EXHIBIT 99.2

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v3.26.3

Document And Entity Information

Oct. 26, 2026

Document Information [Line Items]

Entity, Registrant Name

AVIDBANK HOLDINGS, INC.

Document, Type

8-K

Document, Period End Date

Oct. 26, 2026

Entity, Incorporation, State or Country Code

Entity, File Number

001-42792

Entity, Tax Identification Number

26-1731009

Entity, Address, Address Line One

1732 North First Street

Entity, Address, Address Line Two

6th Floor

Entity, Address, City or Town

San Jose

Entity, Address, State or Province

Entity, Address, Postal Zip Code

95112

City Area Code

408

Local Phone Number

200-7390

Written Communications

false

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false

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Pre-commencement Issuer Tender Offer

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Title of 12(b) Security

Common Stock, no par value per share

Trading Symbol

AVBH

Security Exchange Name

NASDAQ

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Period Type:

duration

- Definition

Title of a 12(b) registered security.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b

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Period Type:

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- Definition

Name of the Exchange on which a security is registered.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection d1-1

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- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14a

-Subsection 12

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- Definition

Trading symbol of an instrument as listed on an exchange.

+ References

No definition available.

+ Details

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Data Type:

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Balance Type:

Period Type:

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- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 230

-Section 425

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