Avidbank Holdings, Inc. Announces Financial Results for the Third Quarter of 2025

SAN JOSE, CA / ACCESS Newswire / October 23, 2025 / Avidbank Holdings, Inc. (NASDAQ:AVBH) (the "Company" or "Avidbank Holdings"), the holding company for Avidbank, a California state-chartered bank (the "Bank"), announced a net loss for the third quarter of 2025 of $37.7 million, or ($4.12) per diluted share, compared to net income of $5.8 million, or $0.75 per diluted share, for the second quarter of 2025 and $5.8 million, or $0.77 per diluted share, for the third quarter of 2024. Results for the third quarter included a $62.4 million loss on the sale of available-for-sale securities. Excluding that item, adjusted net income (1) totaled $6.7 million, or $0.72 per adjusted diluted share (1) for the third quarter of 2025.

Significant events for the third quarter of 2025 included the following:

In August 2025, the Company completed an initial public offering ("IPO") of its common stock, issuing an aggregate total of 3,001,500 shares of common stock at the public offering price of $23.00 per share. After deductions for underwriting fees and commissions and estimated offering expenses, the Company's net proceeds from the initial public offering totaled $61.3 million.

Sold $274.7 million in available-for-sale securities for a loss of $62.4 million; purchased $163.2 million in available-for-sale securities with an average purchase yield of 4.54% and a duration of 2.8 years; and, paid off short-term borrowings using proceeds from the IPO and securities sales.

Third Quarter 2025 Highlights

Net interest margin expanded to 3.90% in the third quarter of 2025, compared to 3.60% in the second quarter of 2025.

Return on average assets was (6.35%) compared to 1.00% in the second quarter of 2025 and 1.02% in the third quarter of 2024. Excluding the loss from the sale of available-for-sale securities, adjusted return on average assets (1) improved to 1.13% in the third quarter of 2025 compared to 1.00% in the prior quarter.

Period-end loans, net of deferred loan fees increased $46.9 million, or 10% annualized, from June 30, 2025 and $171.8 million, or 10%, from September 30, 2024.

Average deposits increased $72.0 million, or 15% annualized, from the second quarter of 2025 and $238.3 million, or 13%, from the third quarter of 2024.

The efficiency ratio was (35.28%) compared to 57.77% in the second quarter of 2025 and 59.29% in the third quarter of 2024. Excluding the loss from the sale of available-for-sale securities, the adjusted efficiency ratio (1) improved to 55.72% in the third quarter.

Book value per share was $25.00 at September 30, 2025, a decrease of $0.80 from June 30, 2025, and an increase of $1.05 from September 30, 2024.

Nonperforming assets to total assets totaled 0.12% as of September 30, 2025 compared to 0.06% at June 30, 2025 and 0.16% at September 30, 2024.

"The third quarter of 2025 was pivotal for Avidbank as we completed our successful IPO which enabled us to reposition our securities portfolio and position Avidbank for future long-term success," said Mark D. Mordell, Chairman and Chief Executive Officer. "In addition to the IPO, we believe our strong loan and deposit growth and improved profitability reflect the strength of our franchise and the trust we've built with our clients. While the repositioning of our securities portfolio impacted third quarter results, it should significantly enhance our future profitability. We are optimistic about the opportunities ahead and remain focused on delivering sustainable growth and value for our shareholders."

Results of Operations

Net interest income totaled $22.7 million for the third quarter of 2025, an increase of $2.4 million, or 46% annualized, from the second quarter of 2025, and an increase of $4.0 million, or 22%, from the third quarter of 2024. Net interest margin was 3.90% in the third quarter of 2025, an increase of 30 basis points compared to the second quarter of 2025, and a 55-basis-point increase compared to the third quarter of 2024. The increase in net interest margin compared to the prior quarter was primarily driven by lower average short-term borrowings, an increase in average noninterest-bearing demand deposits, and lower cost of deposits as well as improvement in interest income due to the sale of low-yielding securities as part of the repositioning of our available-for-sale securities portfolio.

The yield on securities increased in the third quarter of 2025 to 2.55% compared to 2.34% in the second quarter of 2025 and 2.26% in the third quarter of 2024 due to the sale of lower-yielding available-for-sale securities during the third quarter of 2025. The yield on loans in the third quarter of 2025 was 6.98%, a decrease of 3 basis points from the second quarter of 2025 and a decrease of 40 basis points from the third quarter of 2024. The decrease in loan yields was driven by reductions in the prime rate. The yield on interest-earning assets increased 10 basis points during the third quarter of 2025 compared to the second quarter of 2025 while overall funding costs declined by 9 basis points.

The cost of interest-bearing deposits in the third quarter of 2025 was 3.50%, a decrease of 4 basis points compared to the second quarter of 2025 and a decrease of 66 basis points compared to the third quarter of 2024. The cost of deposits in the third quarter of 2025 was 2.67%, a decrease of 11 basis points from the second quarter of 2025 and a decrease of 55 basis points from the third quarter of 2024.

The provision for credit losses was $1.4 million in the third quarter of 2025, compared to $925,000 in the second quarter of 2025 and $0 in the third quarter of 2024. The provision was higher in the third quarter of 2025 compared to the second quarter primarily due to higher loan balances and the addition of one nonaccrual loan.

Noninterest income was ($60.9) million in the third quarter of 2025 compared to $1.5 million in the second quarter of 2025 and $1.8 million in the third quarter of 2024. The third quarter of 2025 included a $62.4 million loss on the sale of securities resulting from the repositioning of the available-for-sale securities portfolio, partially offset by an increase in other investments income due to fair value adjustments and distributions.

Noninterest expense totaled $13.5 million for the third quarter of 2025, compared to $12.6 million in the second quarter of 2025 and $12.1 million in the third quarter of 2024. The increase from the second quarter was primarily due to higher salaries and benefits expense driven by an increase in incentives expense, IPO-related expenses and lower capitalized loan origination costs during the third quarter of 2025. Partially offsetting the increase in noninterest expense was a decrease in legal and professional fees of $124,000 due to elevated expense related to proxy matters along with general corporate and securities matters in the second quarter of 2025. There were 151 full-time equivalent employees on September 30, 2025, compared to 149 on June 30, 2025.

Financial Condition

Total assets were $2.36 billion as of September 30, 2025, compared to $2.39 billion as of June 30, 2025, and $2.30 billion at September 30, 2024. Cash and cash equivalents were $177.3 million on September 30, 2025, compared to $129.9 million on June 30, 2025, and $136.5 million on September 30, 2024.

Loans, net of deferred loan fees, on September 30, 2025, totaled $1.96 billion, an increase of $46.9 million, or 10% annualized, from June 30, 2025, and an increase of $171.8 million, or 10%, from September 30, 2024. The increase in loans during the third quarter of 2025 included an increase of $16.5 million in commercial and industrial loans, $8.4 million in multi-family loans and $7.8 million in owner occupied loans.

The allowance for credit losses on loans was $21.0 million on September 30, 2025, representing an increase of $1.4 million from June 30, 2025 and a decrease of $1.3 million compared to September 30, 2024. The allowance for credit losses - loans and unfunded commitments to total loans was 1.19% on September 30, 2025, compared to 1.15% on June 30, 2025 and 1.37% as of September 30, 2024. Nonperforming loans to total loans was 0.14% at September 30, 3025, up 7 basis points compared to June 30, 2025 and down 6 basis points from September 30, 2024.

The available-for-sale securities portfolio totaled $173.6 million as of September 30, 2025, compared to $292.8 million at June 30, 2025, and $316.7 million as of September 30, 2024. The net unrealized loss for the available-for-sale portfolio totaled $689,000 as of September 30, 2025, compared to $63.4 million at June 30, 2025 and $59.0 million as of September 30, 2024. The decrease during the third quarter of 2025 was due to the sale of securities resulting from repositioning our available-for-sale securities portfolio.

Deposits were $2.05 billion on September 30, 2025, an increase of $46.4 million, or 9% annualized, from June 30, 2025, and an increase of $147.6 million, or 8% from September 30, 2024. The change in deposits during the third quarter of 2025 included a $65.3 million increase in money market and savings and an increase of $28.2 million in noninterest-bearing demand deposits, partially offset by an $18.3 million decrease in interest-bearing checking and a $25.0 million decrease in non-reciprocal brokered deposits. Quarterly average deposits for the third quarter of 2025 were $2.04 billion, an increase of $72.0 million from the second quarter of 2025, and an increase of $238.3 million from the third quarter of 2024. Average noninterest-bearing demand deposits increased $57.7 million compared to the second quarter of 2025.

There were no short-term borrowings outstanding at September 30, 2025, compared to $145.0 million at June 30, 2025, and $160.0 million at September 30, 2024. Part of the proceeds from the IPO and the sale of securities during the third quarter of 2025 were used to pay off outstanding short-term borrowings. Average short-term borrowings decreased $74.9 million in the third quarter of 2025 compared to the second quarter of 2025.

Book value per share was $25.00 on September 30, 2025, a decrease of $0.80 compared to June 30, 2025, and an increase of $1.05 compared to September 30, 2024. The decrease was due to new shares issued as part of the IPO during the third quarter of 2025. Total shareholders' equity was $273.1 million on September 30, 2025, an increase of $68.7 million compared to June 30, 2025, and an increase of $84.6 million from September 30, 2024. The change from June 30, 2025 to September 30, 2025 included net proceeds from the IPO totaling $61.3 million, a decrease in retained earnings of $37.7 million offset by an improvement in accumulated other comprehensive loss of $44.7 million, due to the recognized loss on the sale of available-for-sale securities.

Other Information

The Company will host a conference call on October 24, 2025, at 11:00 a.m. (Eastern Time) / 8:00 a.m. (Pacific Time) to discuss the third quarter of 2025 earnings results. Investors may call in by dialing (800) 715-9871 within the US and +1(646) 307-1963 for all other locations (Conference ID: 6048183). Participants may also pre-register for the conference by navigating to https://events.q4inc.com/attendee/814049300. Access detail will be provided via email upon completion of registration.

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 24, 2025, 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, 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. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy and expectations. 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; our inability to successfully reposition our available-for-sale securities portfolio utilizing the proceeds from our public offering; incurrence of any losses in connection with any repositioning of our available-for-sale securities portfolio utilizing the proceeds from our recently completed public offering; the effects of a prolonged government shutdown; the occurrence of significant natural disasters, including fires and earthquakes, and acts of war or terrorism; our ability to conduct our business could be disrupted by 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 and their customer and community relationships; 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 nonperforming 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 acquisitions or dispositions we may make or evaluate, and the costs associated with any potential or actual acquisition or disposition; 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 public offering; and our success at managing any of the risks involved any of 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 quarterly report on Form 10-Q, under the heading "Risk Factors" 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

IR@avidbank.com

AVIDBANK HOLDINGS, INC.

Selected Financial Data (Unaudited)

(In thousands, except share and per share amounts)

For the Three Months Ended

For the Nine

Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

2025

2024

2025

2024

(37,735

)

5,797

5,436

6,457

5,846

(26,502

)

14,558

6,707

5,797

5,436

6,457

5,846

17,940

14,558

(4.12

)

0.77

0.73

0.87

0.79

(3.28

)

1.96

(4.12

)

0.75

0.71

0.84

0.77

(3.28

)

1.92

0.72

0.75

0.71

0.84

0.77

2.18

1.92

25.00

25.80

24.85

23.57

23.95

25.00

23.95

(6.35

1.00

0.96

1.14

1.02

(1.53

0.86

1.13

1.00

0.96

1.14

1.02

1.03

0.86

(63.19

11.59

11.49

13.65

12.97

(16.88

11.37

11.23

11.59

11.49

13.65

12.97

11.42

11.37

3.90

3.60

3.52

3.48

3.35

3.68

3.42

3.90

3.60

3.52

3.49

3.35

3.68

3.42

(35.28

57.77

62.57

52.53

59.29

938.30

60.27

55.72

57.77

62.57

52.53

59.29

58.51

60.27

94.14

95.69

98.55

95.86

99.90

96.05

101.62

11.10

10.53

10.39

10.35

9.93

11.10

9.93

11.68

11.02

11.10

10.59

10.75

11.68

10.75

11.68

11.02

11.10

10.59

10.75

11.68

10.75

13.48

12.76

12.86

12.30

12.92

13.48

12.92

11.56

8.55

8.48

8.09

8.21

11.56

8.21

10,925,102

7,923,946

7,912,184

7,906,761

7,871,818

10,925,102

7,871,818

9,168,707

7,534,264

7,488,051

7,455,650

7,434,726

8,069,830

7,416,173

9,168,707

7,686,385

7,682,884

7,661,711

7,622,428

8,069,830

7,584,349

1.19

1.15

1.14

1.12

1.37

1.19

1.37

0.12

0.06

0.16

0.12

0.16

0.14

0.07

0.20

0.14

0.20

(0.01

0.00

(0.01

0.93

0.02

(0.01

0.01

1,924,537

1,887,263

1,858,716

1,815,933

1,804,107

1,890,413

1,791,479

181,154

293,640

296,422

308,502

311,450

256,650

312,723

2,357,158

2,322,264

2,289,935

2,250,086

2,272,623

2,323,365

2,253,729

2,044,228

1,972,215

1,885,993

1,894,321

1,805,935

1,968,059

1,762,857

236,903

200,608

191,891

188,170

179,260

209,965

171,043

(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, 2025.

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Financial Condition (Unaudited)

(In thousands)

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

2025

2024

12,006

2,800

18,866

8,662

15,172

165,313

127,123

106,135

74,039

121,361

177,319

129,923

125,001

82,701

136,533

173,588

292,808

296,617

296,556

316,741

1,958,585

1,911,718

1,841,187

1,864,942

1,786,756

(21,025

)

(19,624

)

(18,722

)

(18,679

)

(22,315

)

1,937,560

1,892,094

1,822,465

1,846,263

1,764,441

12,953

12,857

12,764

12,674

12,580

1,739

1,927

2,118

2,331

2,549

59,295

62,520

60,957

63,963

62,625

2,362,454

2,392,129

2,319,922

2,304,488

2,295,469

471,770

443,540

419,823

414,327

405,528

1,069,344

1,087,621

965,467

993,219

1,026,898

465,198

399,849

399,010

338,578

336,166

42,846

46,770

58,273

74,468

75,033

25,001

86,915

70,763

57,903

2,049,158

2,002,781

1,929,488

1,891,355

1,901,528

22,000

21,982

145,000

155,000

185,000

160,000

18,183

17,929

16,815

19,771

23,438

2,089,341

2,187,710

2,123,303

2,118,126

2,106,948

169,342

107,608

106,839

106,997

106,169

104,201

141,936

136,139

130,703

124,246

(430

)

(45,125

)

(46,359

)

(51,338

)

(41,894

)

273,113

204,419

196,619

186,362

188,521

2,362,454

2,392,129

2,319,922

2,304,488

2,295,469

(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 September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, an additional $522.5 million, $495.4 million, $447.8 million, $470.0 million and $509.3 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)

(in thousands, except share and per share amounts)

For the Three Months Ended

For the Nine

Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

2025

2024

2025

2024

33,880

32,967

31,885

32,308

33,488

98,732

98,570

1,157

1,703

1,749

1,770

1,767

4,609

5,392

184

181

185

183

550

567

2,033

793

706

681

1,198

3,532

2,968

37,254

35,644

34,525

34,944

36,636

107,423

107,497

13,776

13,669

12,827

14,015

14,602

40,272

40,130

385

1,242

1,911

1,437

3,121

3,538

10,443

443

435

293

300

1,321

901

14,604

15,354

15,173

15,745

18,023

45,131

51,474

22,650

20,290

19,352

19,199

18,613

62,292

56,023

1,355

925

779

2,280

3,317

21,295

19,365

19,352

18,420

18,613

60,012

52,706

779

840

762

649

675

2,381

1,951

267

196

220

191

246

683

706

279

415

273

(62,391

)

(62,391

)

315

(23

)

637

240

339

454

159

205

539

293

644

(60,852

)

1,538

1,171

1,840

1,790

(58,143

)

4,170

9,766

8,978

9,097

7,389

8,336

27,841

25,111

723

759

996

919

1,033

2,478

3,099

792

759

615

613

638

2,166

1,799

445

420

544

541

528

1,409

1,542

591

715

511

452

534

1,817

1,686

1,162

978

1,079

1,138

1,028

3,219

3,043

13,479

12,609

12,842

11,052

12,097

38,930

36,280

(53,036

)

8,294

7,681

9,208

8,306

(37,061

)

20,596

(15,301

)

2,497

2,245

2,751

2,460

(10,559

)

6,038

(37,735

)

5,797

5,436

6,457

5,846

(26,502

)

14,558

(4.12

)

0.77

0.73

0.87

0.79

(3.28

)

1.96

(4.12

)

0.75

0.71

0.84

0.77

(3.28

)

1.92

9,168,707

7,534,264

7,488,051

7,455,650

7,434,726

8,069,830

7,416,173

9,168,707

7,686,385

7,682,884

7,661,711

7,622,428

8,069,830

7,584,349

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

(In thousands)

For the Three Months Ended

September 30, 2025

June 30, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (5)

Balance

Expense

Rates (5)

1,924,537

33,880

6.98

1,887,263

32,967

7.01

189,921

2,033

4.25

73,552

793

4.32

178,637

1,126

2.50

291,074

1,672

2.30

2,517

6.15

2,566

6.10

181,154

1,165

2.55

293,640

1,711

2.34

8,409

184

8.68

8,409

181

8.63

2,304,021

37,262

6.42

2,262,864

35,652

6.32

7,019

10,120

46,118

49,280

2,357,158

2,322,264

1,074,064

9,961

3.68

1,038,372

9,483

3.66

433,135

3,336

3.06

398,438

3,094

3.11

43,897

365

3.30

47,398

400

3.38

10,283

114

4.40

62,853

692

4.42

1,561,379

13,776

3.50

1,547,061

13,669

3.54

33,500

385

4.56

108,374

1,242

4.60

22,000

443

7.99

22,000

443

8.08

1,616,879

14,604

3.58

1,677,435

15,354

3.67

482,849

425,154

20,527

19,067

236,903

200,608

2,357,158

2,322,264

2.83

2.65

22,658

3.90

20,298

3.60

3.90

3.60

2,044,228

13,776

2.67

1,972,215

13,669

2.78

(1) Nonperforming 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 loan fees / (costs) of $444 thousand and $314 thousand, for the three months ended September 30, 2025 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 $20.1 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)

(In thousands)

For the Three Months Ended

September 30, 2025

September 30, 2024

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (5)

Balance

Expense

Rates (5)

1,924,537

33,880

6.98

1,804,107

33,488

7.38

189,921

2,033

4.25

87,228

1,198

5.46

178,637

1,126

2.50

309,624

1,745

2.24

2,517

6.15

1,826

6.10

181,154

1,165

2.55

311,450

1,773

2.26

8,409

184

8.68

8,409

183

8.66

2,304,021

37,262

6.42

2,211,194

36,642

6.59

7,019

12,943

46,118

48,486

2,357,158

2,272,623

1,074,064

9,961

3.68

903,542

9,801

4.32

433,135

3,336

3.06

348,125

3,067

3.50

43,897

365

3.30

75,972

810

4.24

10,283

114

4.40

69,670

924

5.28

1,561,379

13,776

3.50

1,397,309

14,602

4.16

33,500

385

4.56

237,370

3,121

5.23

22,000

443

7.99

21,970

300

5.44

1,616,879

14,604

3.58

1,656,649

18,023

4.33

482,849

408,626

20,527

28,088

236,903

179,260

2,357,158

2,272,623

2.83

2.26

22,658

3.90

18,619

3.35

3.90

3.35

2,044,228

13,776

2.67

1,805,935

14,602

3.22

(1) Nonperforming 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 loan fees / (costs) of $444 thousand and $383 thousand, for the three months ended September 30, 2025 and September 30, 2024, 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 $20.1 million and $22.4 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)

(In thousands)

For the Nine Months Ended

September 30, 2025

September 30, 2024

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (5)

Balance

Expense

Rates (5)

1,890,413

98,732

6.98

1,791,479

98,570

7.35

109,743

3,532

4.30

72,424

2,968

5.47

254,061

4,517

2.38

310,891

5,325

2.29

2,589

116

5.99

1,832

6.12

256,650

4,633

2.41

312,723

5,409

2.31

8,409

550

8.74

8,409

567

9.01

2,265,215

107,447

6.34

2,185,035

107,514

6.57

9,975

12,723

48,175

55,971

2,323,365

2,253,729

1,023,572

27,974

3.65

811,505

25,272

4.16

405,844

9,301

3.06

318,811

7,935

3.32

50,466

1,323

3.51

76,725

2,400

4.18

49,978

1,674

4.48

113,199

4,523

5.34

1,529,860

40,272

3.52

1,320,240

40,130

4.06

103,495

3,538

4.57

271,427

10,443

5.14

22,000

1,321

8.03

21,944

901

5.48

1,655,355

45,131

3.65

1,613,611

51,474

4.26

438,199

442,617

19,846

26,458

209,965

171,043

2,323,365

2,253,729

2.70

2.31

62,316

3.68

56,040

3.42

3.68

3.42

1,968,059

40,272

2.74

1,762,857

40,130

3.04

(1) Nonperforming 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 loan fees / (costs) of $1.4 million and $1.2 million, for the nine months ended September 30, 2025 and September 30, 2024, 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 $19.3 million and $20.5 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.

Asset Quality Data (Unaudited)

(In thousands)

As of / For the Year-to-Date

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Period Ended Sept. 30,

2025

2024

2025

2024

19,624

18,722

18,679

22,315

22,410

18,679

19,131

1,364

891

630

2,255

3,279

(4,266

)

(95

)

(95

)

21,025

19,624

18,722

18,679

22,315

21,025

22,315

2,281

2,247

2,098

2,247

2,060

)

149

2,272

2,281

2,247

2,098

2,272

2,098

23,297

21,905

20,969

20,926

24,413

23,297

24,413

1,364

891

630

2,255

3,279

)

149

1,355

925

779

2,280

3,317

2,748

1,332

1,340

1,347

3,621

2,748

3,621

2,748

1,332

1,340

1,347

3,621

2,748

3,621

2,748

1,332

1,340

1,347

3,621

2,748

3,621

2,748

1,332

1,340

1,347

3,621

2,748

3,621

2,748

1,332

1,340

1,347

3,621

2,748

3,621

1.07

1.03

1.02

1.00

1.25

1.07

1.25

1.19

1.15

1.14

1.12

1.37

1.19

1.37

765.10

1473.27

1397.16

1386.71

616.27

765.10

616.27

0.12

0.06

0.16

0.12

0.16

0.14

0.07

0.20

0.14

0.20

-0.01

0.00

-0.01

0.93

0.02

-0.01

0.01

1.48

1.87

1.43

2.27

1.62

1.48

1.62

0.44

0.38

0.20

0.22

0.51

0.44

0.51

(1) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.

Loans and Deposits (Unaudited)

(In thousands)

Current

Year

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Quarter

Over Year

2025

2024

Change

871,524

855,049

803,920

816,963

759,492

16,475

112,032

249,802

241,399

227,003

216,018

199,929

8,403

49,873

176,171

168,393

142,764

142,650

141,139

7,778

35,032

412,623

407,955

405,788

414,551

406,007

4,668

6,616

209,750

204,973

226,641

246,301

253,325

4,777

(43,575

)

36,399

31,560

32,985

27,494

25,799

4,839

10,600

1,084,745

1,054,280

1,035,181

1,047,014

1,026,199

30,465

58,546

2,316

2,389

2,086

965

1,065

(73

)

1,251

1,958,585

1,911,718

1,841,187

1,864,942

1,786,756

46,867

171,829

471,770

443,540

419,823

414,327

405,528

28,230

66,242

1,069,344

1,087,621

965,467

993,219

1,026,898

(18,277

)

42,446

465,198

399,849

399,010

338,578

336,166

65,349

129,032

42,846

46,770

58,273

74,468

75,033

(3,924

)

(32,187

)

25,001

86,915

70,763

57,903

(25,001

)

(57,903

)

2,049,158

2,002,781

1,929,488

1,891,355

1,901,528

46,377

147,630

482,849

425,154

405,746

422,807

408,626

57,695

74,223

1,074,064

1,038,372

956,994

994,121

903,542

35,692

170,522

433,135

398,438

385,434

351,126

348,125

34,697

85,010

43,897

47,398

60,282

77,203

75,972

(3,501

)

(32,075

)

10,283

62,853

77,537

49,064

69,670

(52,570

)

(59,387

)

2,044,228

1,972,215

1,885,993

1,894,321

1,805,935

72,013

238,293

AVIDBANK HOLDINGS, INC.

Non-GAAP Performance and Financial Measures Reconciliation (Unaudited)

(In thousands)

Management believes that adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, 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 and net interest margin adjustments facilitate 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,

2025

2024

2025

2024

(37,735

)

5,797

5,436

6,457

5,846

(26,502

)

14,558

62,391

(17,949

)

(17,949

)

6,707

5,797

5,436

6,457

5,846

17,940

14,558

(4.12

)

0.75

0.71

0.84

0.77

(3.28

)

1.92

4.84

5.46

0.72

0.75

0.71

0.84

0.77

2.18

1.92

(37,735

)

5,797

5,436

6,457

5,846

(26,502

)

14,558

2,357,158

2,322,264

2,289,935

2,250,086

2,272,623

2,323,365

2,253,729

(6.35

1.00

0.96

1.14

1.02

(1.53

0.86

6,707

5,797

5,436

6,457

5,846

17,940

14,558

2,357,158

2,322,264

2,289,935

2,250,086

2,272,623

2,323,365

2,253,729

1.13

1.00

0.96

1.14

1.02

1.03

0.86

(37,735

)

5,797

5,436

6,457

5,846

(26,502

)

14,558

236,903

200,608

191,891

188,170

179,260

209,965

171,043

(63.19

11.59

11.49

13.65

12.97

(16.88

11.37

6,707

5,797

5,436

6,457

5,846

17,940

14,558

236,903

200,608

191,891

188,170

179,260

209,965

171,043

11.23

11.59

11.49

13.65

12.97

11.42

11.37

13,479

12,609

12,842

11,052

12,097

38,930

36,280

22,650

20,290

19,352

19,199

18,613

62,292

56,023

(60,852

)

1,538

1,171

1,840

1,790

(58,143

)

4,170

(35.28

57.77

62.57

52.53

59.29

938.30

60.27

13,479

12,609

12,842

11,052

12,097

38,930

36,280

22,650

20,290

19,352

19,199

18,613

62,292

56,023

(60,852

)

1,538

1,171

1,840

1,790

(58,143

)

4,170

62,391

1,539

1,538

1,171

1,840

1,790

4,248

4,170

55.72

57.77

62.57

52.53

59.29

58.51

60.27

22,650

20,290

19,352

19,199

18,613

62,292

56,023

22,658

20,298

19,360

19,206

18,619

62,316

56,040

3.90

3.60

3.52

3.48

3.35

3.68

3.42

0.01

3.90

3.60

3.52

3.49

3.35

3.68

3.42

(1) Annualized for the periods presented.

SOURCE: Avidbank Holdings, Inc.