Avidbank第二季淨收入760萬美元 調整後每股盈利0.76美元

EX-99.1
2
ex_964348.htm
EXHIBIT 99.1

 ex_964348.htm
 

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

PRESS RELEASE

 

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

 

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

 

Second Quarter 2026 Highlights

 

 
  
 
 ●

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

 
 

 
  
  
  
 

 
  
 
 ●

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

 
 

 
  
  
  
 

 
  
 
 ●

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

 
 

 
  
  
  
 

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

 
  
  
  
 

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

 
  
  
  
 

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

 
  
  
  
 

 
  
 
 ●

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

 
 

 

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

 

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

 

Results of Operations

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

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

 

 

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

 

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

 

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

 

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

 

Financial Condition

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Other Information

 

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

 

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

 

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

 

 

2

 

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

 

 

About Avidbank Holdings

 

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

 

Non-GAAP Financial Measures

 

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

 

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

 

Forward-Looking Statements

 

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

 

 

Contact:

 

Patrick Oakes

Executive Vice President and Chief Financial Officer

408-200-7390

[email protected]

 

3

 

 

 
 
 AVIDBANK HOLDINGS, INC.

 
 

 
 
 Selected Financial Data (Unaudited)

 
 

 
 
  

 
 

 

 
  
  
 
 For the Three Months Ended

 
  
  
 
 For the Six Months Ended

 
  
 

 
  
  
 
 June 30,

 
  
  
 
 March 31,

 
  
  
 
 Dec. 31,

 
  
  
 
 Sept. 30,

 
  
  
 
 June 30,

 
  
  
 
 June 30,

 
  
  
 
 June 30,

 
  
 

 
 
 (In thousands, except share and per share amounts)

 
  
 
 2026

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2025

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 INCOME HIGHLIGHTS

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net income / (loss)

 
  
 $
 7,647
  
  
 $
 9,021
  
  
 $
 6,949
  
  
 $
 (37,735
 )
  
 $
 5,797
  
  
 $
 16,668
  
  
 $
 11,233
  
 

 
 
 Net income – adjusted (2)

 
  
  
 8,197
  
  
  
 9,021
  
  
  
 6,949
  
  
  
 6,707
  
  
  
 5,797
  
  
  
 17,218
  
  
  
 11,233
  
 

 
 
 PER SHARE DATA

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Basic earnings / (loss) per share

 
  
 $
 0.72
  
  
 $
 0.85
  
  
 $
 0.66
  
  
 $
 (4.12
 )
  
 $
 0.77
  
  
 $
 1.57
  
  
 $
 1.50
  
 

 
 
 Diluted earnings / (loss) per share

 
  
  
 0.71
  
  
  
 0.84
  
  
  
 0.65
  
  
  
 (4.12
 )
  
  
 0.75
  
  
  
 1.55
  
  
  
 1.46
  
 

 
 
 Diluted earnings per share – adjusted (2)

 
  
  
 0.76
  
  
  
 0.84
  
  
  
 0.65
  
  
  
 0.72
  
  
  
 0.75
  
  
  
 1.60
  
  
  
 1.46
  
 

 
 
 Book value per share

 
  
  
 26.97
  
  
  
 26.33
  
  
  
 25.66
  
  
  
 25.00
  
  
  
 25.80
  
  
  
 26.97
  
  
  
 25.80
  
 

 
 
 PERFORMANCE MEASURES

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Return on average assets (1)

 
  
  
 1.20
 %
  
  
 1.46
 %
  
  
 1.12
 %
  
  
 (6.35
 )%
  
  
 1.00
 %
  
  
 1.33
 %
  
  
 0.98
 %
 

 
 
 Return on average assets – adjusted (1) (2)

 
  
  
 1.28
 %
  
  
 1.46
 %
  
  
 1.12
 %
  
  
 1.13
 %
  
  
 1.00
 %
  
  
 1.37
 %
  
  
 0.98
 %
 

 
 
 Return on average equity (1)

 
  
  
 10.40
 %
  
  
 12.74
 %
  
  
 9.90
 %
  
  
 (63.19
 )%
  
  
 11.59
 %
  
  
 11.55
 %
  
  
 11.54
 %
 

 
 
 Return on average equity – adjusted (1) (2)

 
  
  
 11.15
 %
  
  
 12.74
 %
  
  
 9.90
 %
  
  
 11.23
 %
  
  
 11.59
 %
  
  
 11.93
 %
  
  
 11.54
 %
 

 
 
 Net interest margin (1)

 
  
  
 4.26
 %
  
  
 4.38
 %
  
  
 4.13
 %
  
  
 3.90
 %
  
  
 3.60
 %
  
  
 4.32
 %
  
  
 3.56
 %
 

 
 
 Efficiency ratio

 
  
  
 55.41
 %
  
  
 50.35
 %
  
  
 51.72
 %
  
  
 (35.28
 )%
  
  
 57.77
 %
  
  
 52.96
 %
  
  
 60.10
 %
 

 
 
 Efficiency ratio – adjusted (2)

 
  
  
 48.73
 %
  
  
 50.35
 %
  
  
 51.72
 %
  
  
 55.72
 %
  
  
 57.77
 %
  
  
 49.54
 %
  
  
 60.10
 %
 

 
 
 Average loans to average deposits

 
  
  
 99.32
 %
  
  
 99.98
 %
  
  
 94.78
 %
  
  
 94.14
 %
  
  
 95.69
 %
  
  
 99.64
 %
  
  
 97.08
 %
 

 
 
 CAPITAL

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Tier 1 leverage ratio (3)

 
  
  
 11.50
 %
  
  
 11.39
 %
  
  
 11.23
 %
  
  
 11.14
 %
  
  
 10.53
 %
  
  
 11.50
 %
  
  
 10.53
 %
 

 
 
 Common equity tier 1 capital ratio (3)

 
  
  
 11.35
 %
  
  
 11.39
 %
  
  
 11.05
 %
  
  
 11.68
 %
  
  
 11.02
 %
  
  
 11.35
 %
  
  
 11.02
 %
 

 
 
 Tier 1 risk-based capital ratio (3)

 
  
  
 11.35
 %
  
  
 11.39
 %
  
  
 11.05
 %
  
  
 11.68
 %
  
  
 11.02
 %
  
  
 11.35
 %
  
  
 11.02
 %
 

 
 
 Total risk-based capital ratio (3)

 
  
  
 12.79
 %
  
  
 12.85
 %
  
  
 12.57
 %
  
  
 13.48
 %
  
  
 12.76
 %
  
  
 12.79
 %
  
  
 12.76
 %
 

 
 
 Common equity ratio

 
  
  
 11.13
 %
  
  
 11.18
 %
  
  
 10.93
 %
  
  
 11.56
 %
  
  
 8.55
 %
  
  
 11.13
 %
  
  
 8.55
 %
 

 
 
 SHARES OUTSTANDING

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Number of common shares outstanding

 
  
  
 10,982,764
  
  
  
 10,955,167
  
  
  
 10,947,967
  
  
  
 10,925,102
  
  
  
 7,923,946
  
  
  
 10,982,764
  
  
  
 7,923,946
  
 

 
 
 Average common shares outstanding – basic

 
  
  
 10,607,949
  
  
  
 10,600,902
  
  
  
 10,579,753
  
  
  
 9,168,707
  
  
  
 7,534,264
  
  
  
 10,604,445
  
  
  
 7,511,285
  
 

 
 
 Average common shares outstanding – diluted

 
  
  
 10,776,924
  
  
  
 10,773,884
  
  
  
 10,754,488
  
  
  
 9,168,707
  
  
  
 7,686,385
  
  
  
 10,775,066
  
  
  
 7,684,976
  
 

 
 
 Average common shares outstanding – diluted – adjusted (2)

 
  
  
 10,776,924
  
  
  
 10,773,884
  
  
  
 10,754,488
  
  
  
 9,353,444
  
  
  
 7,686,385
  
  
  
 10,775,066
  
  
  
 7,684,976
  
 

 
 
 ASSET QUALITY

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

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

 
  
  
 1.09
 %
  
  
 1.07
 %
  
  
 1.15
 %
  
  
 1.19
 %
  
  
 1.15
 %
  
  
 1.09
 %
  
  
 1.15
 %
 

 
 
 Non-performing assets to total assets

 
  
  
 0.54
 %
  
  
 0.63
 %
  
  
 0.95
 %
  
  
 0.12
 %
  
  
 0.06
 %
  
  
 0.54
 %
  
  
 0.06
 %
 

 
 
 Non-performing loans to total loans

 
  
  
 0.65
 %
  
  
 0.75
 %
  
  
 1.14
 %
  
  
 0.14
 %
  
  
 0.07
 %
  
  
 0.65
 %
  
  
 0.07
 %
 

 
 
 Net charge-offs to average loans (1)

 
  
  
 0.35
 %
  
  
 0.52
 %
  
  
 0.30
 %
  
  
 (0.01
 )%
  
  
 0.00
 %
  
  
 0.43
 %
  
  
 (0.01
 )%
 

 
 
 AVERAGE BALANCES

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans, net of deferred fees

 
  
 $
 2,195,164
  
  
 $
 2,150,688
  
  
 $
 2,024,325
  
  
 $
 1,924,537
  
  
 $
 1,887,263
  
  
 $
 2,173,049
  
  
 $
 1,873,068
  
 

 
 
 Debt securities available-for-sale

 
  
  
 219,942
  
  
  
 216,507
  
  
  
 196,462
  
  
  
 181,154
  
  
  
 293,640
  
  
  
 218,234
  
  
  
 295,024
  
 

 
 
 Total assets

 
  
  
 2,565,538
  
  
  
 2,504,616
  
  
  
 2,459,110
  
  
  
 2,357,158
  
  
  
 2,322,264
  
  
  
 2,535,245
  
  
  
 2,306,188
  
 

 
 
 Deposits

 
  
  
 2,210,267
  
  
  
 2,151,059
  
  
  
 2,135,876
  
  
  
 2,044,228
  
  
  
 1,972,215
  
  
  
 2,180,827
  
  
  
 1,929,342
  
 

 
 
 Shareholders' equity

 
  
  
 294,826
  
  
  
 287,191
  
  
  
 278,382
  
  
  
 236,903
  
  
  
 200,608
  
  
  
 291,030
  
  
  
 196,273
  
 

 
 
 PERIOD-END BALANCES

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans, net of deferred fees

 
  
 $
 2,224,119
  
  
 $
 2,172,846
  
  
 $
 2,148,439
  
  
 $
 1,958,585
  
  
 $
 1,911,718
  
  
 $
 2,224,119
  
  
 $
 1,911,718
  
 

 
 
 Debt securities available-for-sale

 
  
  
 232,196
  
  
  
 210,583
  
  
  
 218,160
  
  
  
 173,588
  
  
  
 292,808
  
  
  
 232,196
  
  
  
 292,808
  
 

 
 
 Total assets

 
  
  
 2,660,440
  
  
  
 2,579,554
  
  
  
 2,569,643
  
  
  
 2,362,454
  
  
  
 2,392,129
  
  
  
 2,660,440
  
  
  
 2,392,129
  
 

 
 
 Deposits

 
  
  
 2,321,948
  
  
  
 2,199,319
  
  
  
 2,186,073
  
  
  
 2,049,158
  
  
  
 2,002,781
  
  
  
 2,321,948
  
  
  
 2,002,781
  
 

 
 
 Shareholders' equity

 
  
  
 296,185
  
  
  
 288,438
  
  
  
 280,979
  
  
  
 273,113
  
  
  
 204,419
  
  
  
 296,185
  
  
  
 204,419
  
 

 
 
 (1) Annualized for the periods presented.

 
 

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

 
 

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

 
 

 

4

 

 

 
 
 AVIDBANK HOLDINGS, INC.

 
 

 
 
 Consolidated Statements of Financial Condition (Unaudited)

 
 

 
 
  

 
 

 
  
 
 June 30,

 
  
 
 March 31,

 
  
 
 December 31,

 
  
 
 September 30,

 
  
 
 June 30,

 
  
 

 
 
 (In thousands)

 
 
 2026

 
  
 
 2026

 
  
 
 2025

 
  
 
 2025

 
  
 
 2025

 
  
 

 
 
 Assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash and due from financial institutions

 
 $
 13,897
  
 $
 10,569
  
 $
 7,942
  
 $
 12,006
  
 $
 2,800
  
 

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

 
  
 146,012
  
  
 138,473
  
  
 146,627
  
  
 165,313
  
  
 127,123
  
 

 
 
 Total cash and cash equivalents

 
  
 159,909
  
  
 149,042
  
  
 154,569
  
  
 177,319
  
  
 129,923
  
 

 
 
 Debt securities available-for-sale

 
  
 232,196
  
  
 210,583
  
  
 218,160
  
  
 173,588
  
  
 292,808
  
 

 
 
 Loans, net of deferred fees

 
  
 2,224,119
  
  
 2,172,846
  
  
 2,148,439
  
  
 1,958,585
  
  
 1,911,718
  
 

 
 
 Allowance for credit losses on loans

 
  
 (21,501
 )
  
 (20,938
 )
  
 (22,261
 )
  
 (21,025
 )
  
 (19,624
 )
 

 
 
 Loans, net of allowance for credit losses on loans

 
  
 2,202,618
  
  
 2,151,908
  
  
 2,126,178
  
  
 1,937,560
  
  
 1,892,094
  
 

 
 
 Cash surrender value of bank-owned life insurance policies

 
  
 11,443
  
  
 13,151
  
  
 13,045
  
  
 12,953
  
  
 12,857
  
 

 
 
 Premises and equipment, net

 
  
 1,151
  
  
 1,340
  
  
 1,526
  
  
 1,739
  
  
 1,927
  
 

 
 
 Accrued interest receivable and other assets

 
  
 53,123
  
  
 53,530
  
  
 56,165
  
  
 59,295
  
  
 62,520
  
 

 
 
 Total assets

 
 $
 2,660,440
  
 $
 2,579,554
  
 $
 2,569,643
  
 $
 2,362,454
  
 $
 2,392,129
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Liabilities and Shareholders' Equity

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Deposits:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Non-interest-bearing

 
 $
 568,509
  
 $
 577,101
  
 $
 556,972
  
 $
 471,770
  
 $
 443,540
  
 

 
 
 Interest-bearing checking

 
  
 1,115,263
  
  
 1,036,178
  
  
 1,069,272
  
  
 1,069,344
  
  
 1,087,621
  
 

 
 
 Money market and savings

 
  
 538,399
  
  
 519,059
  
  
 532,149
  
  
 465,198
  
  
 399,849
  
 

 
 
 Time

 
  
 34,311
  
  
 28,521
  
  
 27,680
  
  
 42,846
  
  
 46,770
  
 

 
 
 Non-reciprocal brokered (1)

 
  
 65,466
  
  
 38,460
  
  
 –
  
  
 –
  
  
 25,001
  
 

 
 
 Total deposits

 
  
 2,321,948
  
  
 2,199,319
  
  
 2,186,073
  
  
 2,049,158
  
  
 2,002,781
  
 

 
 
 Short-term borrowings

 
  
 –
  
  
 55,000
  
  
 60,000
  
  
 –
  
  
 145,000
  
 

 
 
 Subordinated debentures, net

 
  
 22,000
  
  
 22,000
  
  
 22,000
  
  
 22,000
  
  
 22,000
  
 

 
 
 Accrued interest payable and other liabilities

 
  
 20,307
  
  
 14,797
  
  
 20,591
  
  
 18,183
  
  
 17,929
  
 

 
 
 Total liabilities

 
  
 2,364,255
  
  
 2,291,116
  
  
 2,288,664
  
  
 2,089,341
  
  
 2,187,710
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Shareholders' Equity

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Common stock

 
  
 170,284
  
  
 169,474
  
  
 169,990
  
  
 169,342
  
  
 107,608
  
 

 
 
 Retained earnings

 
  
 127,818
  
  
 120,171
  
  
 111,150
  
  
 104,201
  
  
 141,936
  
 

 
 
 Accumulated other comprehensive loss, net of taxes

 
  
 (1,917
 )
  
 (1,207
 )
  
 (161
 )
  
 (430
 )
  
 (45,125
 )
 

 
 
 Total shareholders' equity

 
  
 296,185
  
  
 288,438
  
  
 280,979
  
  
 273,113
  
  
 204,419
  
 

 
 
 Total liabilities and shareholders' equity

 
 $
 2,660,440
  
 $
 2,579,554
  
 $
 2,569,643
  
 $
 2,362,454
  
 $
 2,392,129
  
 

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

 
 

 

5

 

 

 
 
 AVIDBANK HOLDINGS, INC.

 
 

 
 
 Consolidated Statements of Operations (Unaudited)

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 For the Six

 
  
 

 
  
  
 
 For the Three Months Ended

 
  
  
 
 Months Ended

 
  
 

 
  
  
 
 June 30,

 
  
  
 
 March 31,

 
  
  
 
 Dec. 31,

 
  
  
 
 Sept. 30,

 
  
  
 
 June 30,

 
  
  
 
 June 30,

 
  
  
 
 June 30,

 
  
 

 
 
 (in thousands, except share and per share amounts)

 
  
 
 2026

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2025

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Interest and fees on loans

 
  
 $
 36,484
  
  
 $
 35,429
  
  
 $
 34,093
  
  
 $
 33,880
  
  
 $
 32,967
  
  
 $
 71,913
  
  
 $
 64,852
  
 

 
 
 Interest on debt securities

 
  
  
 2,559
  
  
  
 2,467
  
  
  
 2,274
  
  
  
 1,157
  
  
  
 1,703
  
  
  
 5,025
  
  
  
 3,452
  
 

 
 
 Federal Home Loan Bank dividends

 
  
  
 20
  
  
  
 426
  
  
  
 185
  
  
  
 184
  
  
  
 181
  
  
  
 446
  
  
  
 366
  
 

 
 
 Other interest income

 
  
  
 864
  
  
  
 716
  
  
  
 1,775
  
  
  
 2,033
  
  
  
 793
  
  
  
 1,581
  
  
  
 1,499
  
 

 
 
 Total interest income

 
  
  
 39,927
  
  
  
 39,038
  
  
  
 38,327
  
  
  
 37,254
  
  
  
 35,644
  
  
  
 78,965
  
  
  
 70,169
  
 

 
 
 Interest on deposits

 
  
  
 12,640
  
  
  
 11,899
  
  
  
 12,887
  
  
  
 13,776
  
  
  
 13,669
  
  
  
 24,539
  
  
  
 26,496
  
 

 
 
 Interest on short-term borrowings

 
  
  
 196
  
  
  
 240
  
  
  
 6
  
  
  
 385
  
  
  
 1,242
  
  
  
 436
  
  
  
 3,153
  
 

 
 
 Interest on subordinated debentures

 
  
  
 410
  
  
  
 399
  
  
  
 421
  
  
  
 443
  
  
  
 443
  
  
  
 809
  
  
  
 878
  
 

 
 
 Total interest expense

 
  
  
 13,246
  
  
  
 12,538
  
  
  
 13,314
  
  
  
 14,604
  
  
  
 15,354
  
  
  
 25,784
  
  
  
 30,527
  
 

 
 
 Net interest income

 
  
  
 26,681
  
  
  
 26,500
  
  
  
 25,013
  
  
  
 22,650
  
  
  
 20,290
  
  
  
 53,181
  
  
  
 39,642
  
 

 
 
 Provision for credit losses

 
  
  
 2,789
  
  
  
 1,445
  
  
  
 2,838
  
  
  
 1,355
  
  
  
 925
  
  
  
 4,234
  
  
  
 925
  
 

 
 
 Net interest income after provision for credit losses

 
  
  
 23,892
  
  
  
 25,055
  
  
  
 22,175
  
  
  
 21,295
  
  
  
 19,365
  
  
  
 48,947
  
  
  
 38,717
  
 

 
 
 Service charges and fees

 
  
  
 851
  
  
  
 821
  
  
  
 797
  
  
  
 779
  
  
  
 840
  
  
  
 1,672
  
  
  
 1,602
  
 

 
 
 Foreign exchange income

 
  
  
 340
  
  
  
 363
  
  
  
 254
  
  
  
 267
  
  
  
 196
  
  
  
 703
  
  
  
 416
  
 

 
 
 Bank-owned life insurance income (1)

 
  
  
 1,497
  
  
  
 106
  
  
  
 93
  
  
  
 96
  
  
  
 93
  
  
  
 1,603
  
  
  
 183
  
 

 
 
 Credit card income

 
  
  
 113
  
  
  
 101
  
  
  
 60
  
  
  
 57
  
  
  
 150
  
  
  
 214
  
  
  
 197
  
 

 
 
 Warrant and success fee income

 
  
  
 64
  
  
  
 3
  
  
  
 375
  
  
  
 –
  
  
  
 273
  
  
  
 67
  
  
  
 273
  
 

 
 
 Other investment income

 
  
  
 79
  
  
  
 (22
 )
  
  
 146
  
  
  
 315
  
  
  
 (23
 )
  
  
 57
  
  
  
 24
  
 

 
 
 Net loss on sale of debt securities

 
  
  
 –
  
  
  
 –
  
  
  
 –
  
  
  
 (62,391
 )
  
  
 –
  
  
  
 –
  
  
  
 –
  
 

 
 
 Other income

 
  
  
 106
  
  
  
 95
  
  
  
 42
  
  
  
 25
  
  
  
 9
  
  
  
 201
  
  
  
 14
  
 

 
 
 Total non-interest income

 
  
  
 3,050
  
  
  
 1,467
  
  
  
 1,767
  
  
  
 (60,852
 )
  
  
 1,538
  
  
  
 4,517
  
  
  
 2,709
  
 

 
 
 Salaries and employee benefits

 
  
  
 9,563
  
  
  
 9,555
  
  
  
 9,574
  
  
  
 9,766
  
  
  
 8,978
  
  
  
 19,117
  
  
  
 18,075
  
 

 
 
 Legal and professional fees

 
  
  
 897
  
  
  
 1,188
  
  
  
 890
  
  
  
 591
  
  
  
 715
  
  
  
 2,086
  
  
  
 1,226
  
 

 
 
 Data processing

 
  
  
 787
  
  
  
 799
  
  
  
 770
  
  
  
 792
  
  
  
 759
  
  
  
 1,586
  
  
  
 1,374
  
 

 
 
 Occupancy and equipment

 
  
  
 777
  
  
  
 790
  
  
  
 730
  
  
  
 723
  
  
  
 759
  
  
  
 1,567
  
  
  
 1,755
  
 

 
 
 Regulatory assessments

 
  
  
 515
  
  
  
 566
  
  
  
 521
  
  
  
 445
  
  
  
 420
  
  
  
 1,082
  
  
  
 964
  
 

 
 
 Other operating expenses

 
  
  
 3,934
  
  
  
 1,184
  
  
  
 1,366
  
  
  
 1,162
  
  
  
 978
  
  
  
 5,118
  
  
  
 2,057
  
 

 
 
 Total non-interest expense

 
  
  
 16,473
  
  
  
 14,082
  
  
  
 13,851
  
  
  
 13,479
  
  
  
 12,609
  
  
  
 30,556
  
  
  
 25,451
  
 

 
 
 Income / (loss) before income taxes

 
  
  
 10,469
  
  
  
 12,440
  
  
  
 10,091
  
  
  
 (53,036
 )
  
  
 8,294
  
  
  
 22,908
  
  
  
 15,975
  
 

 
 
 Provision / (benefit) for income taxes

 
  
  
 2,822
  
  
  
 3,419
  
  
  
 3,142
  
  
  
 (15,301
 )
  
  
 2,497
  
  
  
 6,240
  
  
  
 4,742
  
 

 
 
 Net income / (loss)

 
  
 $
 7,647
  
  
 $
 9,021
  
  
 $
 6,949
  
  
 $
 (37,735
 )
  
 $
 5,797
  
  
 $
 16,668
  
  
 $
 11,233
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Basic earnings / (loss) per common share

 
  
 $
 0.72
  
  
 $
 0.85
  
  
 $
 0.66
  
  
 $
 (4.12
 )
  
 $
 0.77
  
  
 $
 1.57
  
  
 $
 1.50
  
 

 
 
 Diluted earnings / (loss) per common share

 
  
  
 0.71
  
  
  
 0.84
  
  
  
 0.65
  
  
  
 (4.12
 )
  
  
 0.75
  
  
  
 1.55
  
  
  
 1.46
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Weighted average shares – basic

 
  
  
 10,607,949
  
  
  
 10,600,902
  
  
  
 10,579,753
  
  
  
 9,168,707
  
  
  
 7,534,264
  
  
  
 10,604,445
  
  
  
 7,511,285
  
 

 
 
 Weighted average shares – diluted

 
  
  
 10,776,924
  
  
  
 10,773,884
  
  
  
 10,754,488
  
  
  
 9,168,707
  
  
  
 7,686,385
  
  
  
 10,775,066
  
  
  
 7,684,976
  
 

 

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

 

 

 

6

 

 

 
 
 AVIDBANK HOLDINGS, INC.

 
 

 
 
 Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

 
 

 
 
  

 
 

 
  
  
 
 For the Three Months Ended

 
  
 

 
  
  
 
 June 30, 2026

 
  
  
 
 March 31, 2026

 
  
 

 
  
  
  
  
  
  
 
 Interest

 
  
  
 
 Yields

 
  
  
  
  
  
  
 
 Interest

 
  
  
 
 Yields

 
  
 

 
  
  
 
 Average

 
  
  
 
 Income/

 
  
  
 
 or

 
  
  
 
 Average

 
  
  
 
 Income/

 
  
  
 
 or

 
  
 

 
 
 (In thousands)

 
  
 Balance
  
  
 Expense
  
  
 Rates (6)
  
  
 Balance
  
  
 Expense
  
  
 Rates (6)
  
 

 
 
 Assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest-earning assets:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans, net of deferred fees (1)

 
  
 $
 2,195,164
  
  
 $
 36,484
  
  
  
 6.67
 %
  
 $
 2,150,688
  
  
 $
 35,429
  
  
  
 6.68
 %
 

 
 
 Interest-earning deposits

 
  
  
 91,304
  
  
  
 864
  
  
  
 3.80
 %
  
  
 78,859
  
  
  
 716
  
  
  
 3.68
 %
 

 
 
 Debt securities

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Taxable debt securities

 
  
  
 217,311
  
  
  
 2,529
  
  
  
 4.67
 %
  
  
 213,820
  
  
  
 2,437
  
  
  
 4.62
 %
 

 
 
 Non-taxable debt securities (2)

 
  
  
 2,631
  
  
  
 38
  
  
  
 5.79
 %
  
  
 2,687
  
  
  
 38
  
  
  
 5.74
 %
 

 
 
 Total debt securities

 
  
  
 219,942
  
  
  
 2,567
  
  
  
 4.68
 %
  
  
 216,507
  
  
  
 2,475
  
  
  
 4.64
 %
 

 
 
 FHLB stock (5)

 
  
  
 8,409
  
  
  
 20
  
  
  
 0.95
 %
  
  
 8,409
  
  
  
 426
  
  
  
 20.55
 %
 

 
 
 Total interest-earning assets

 
  
  
 2,514,819
  
  
  
 39,935
  
  
  
 6.37
 %
  
  
 2,454,463
  
  
  
 39,046
  
  
  
 6.45
 %
 

 
 
 Non-interest-earning assets:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash and due from financial institutions

 
  
  
 16,004
  
  
  
  
  
  
  
  
  
  
  
 13,058
  
  
  
  
  
  
  
  
  
 

 
 
 All other assets (3)

 
  
  
 34,715
  
  
  
  
  
  
  
  
  
  
  
 37,095
  
  
  
  
  
  
  
  
  
 

 
 
 Total assets

 
  
 $
 2,565,538
  
  
  
  
  
  
  
  
  
  
 $
 2,504,616
  
  
  
  
  
  
  
  
  
 

 
 
 Liabilities and Shareholders' Equity

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest-bearing liabilities:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest-bearing demand deposits

 
  
 $
 1,055,578
  
  
 $
 8,368
  
  
  
 3.18
 %
  
 $
 1,067,528
  
  
 $
 8,260
  
  
  
 3.14
 %
 

 
 
 Money market and savings

 
  
  
 509,766
  
  
  
 3,427
  
  
  
 2.70
 %
  
  
 517,342
  
  
  
 3,389
  
  
  
 2.66
 %
 

 
 
 Time deposits

 
  
  
 35,454
  
  
  
 285
  
  
  
 3.22
 %
  
  
 27,589
  
  
  
 207
  
  
  
 3.04
 %
 

 
 
 Non-reciprocal brokered deposits

 
  
  
 56,810
  
  
  
 560
  
  
  
 3.95
 %
  
  
 4,567
  
  
  
 43
  
  
  
 3.82
 %
 

 
 
 Total interest-bearing deposits

 
  
  
 1,657,608
  
  
  
 12,640
  
  
  
 3.06
 %
  
  
 1,617,026
  
  
  
 11,899
  
  
  
 2.98
 %
 

 
 
 Short-term borrowings

 
  
  
 20,703
  
  
  
 196
  
  
  
 3.80
 %
  
  
 25,500
  
  
  
 240
  
  
  
 3.82
 %
 

 
 
 Subordinated debentures, net

 
  
  
 22,000
  
  
  
 410
  
  
  
 7.48
 %
  
  
 21,997
  
  
  
 399
  
  
  
 7.36
 %
 

 
 
 Total interest-bearing liabilities

 
  
  
 1,700,311
  
  
  
 13,246
  
  
  
 3.12
 %
  
  
 1,664,523
  
  
  
 12,538
  
  
  
 3.05
 %
 

 
 
 Non-interest-bearing liabilities:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Demand deposits

 
  
  
 552,659
  
  
  
  
  
  
  
  
  
  
  
 534,033
  
  
  
  
  
  
  
  
  
 

 
 
 Accrued expenses and other liabilities

 
  
  
 17,742
  
  
  
  
  
  
  
  
  
  
  
 18,869
  
  
  
  
  
  
  
  
  
 

 
 
 Shareholders' equity

 
  
  
 294,826
  
  
  
  
  
  
  
  
  
  
  
 287,191
  
  
  
  
  
  
  
  
  
 

 
 
 Total liabilities and shareholders' equity

 
  
 $
 2,565,538
  
  
  
  
  
  
  
  
  
  
 $
 2,504,616
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net interest spread

 
  
  
  
  
  
  
  
  
  
  
 3.25
 %
  
  
  
  
  
  
  
  
  
  
 3.40
 %
 

 
 
 Net interest income and margin (4)

 
  
  
  
  
  
 $
 26,689
  
  
  
 4.26
 %
  
  
  
  
  
 $
 26,508
  
  
  
 4.38
 %
 

 
 
 Non-taxable equivalent net interest margin

 
  
  
  
  
  
  
  
  
  
  
 4.26
 %
  
  
  
  
  
  
  
  
  
  
 4.38
 %
 

 
 
 Cost of deposits

 
  
 $
 2,210,267
  
  
 $
 12,640
  
  
  
 2.29
 %
  
 $
 2,151,059
  
  
 $
 11,899
  
  
  
 2.24
 %
 

 

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

 
 

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

 
 

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

 
 

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

 
 

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

 
 
 (6) Annualized for the periods presented.

 
 

 

7

 

 

 
 
 AVIDBANK HOLDINGS, INC.

 
 

 
 
 Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

 
 

 
 
  

 
 

 
  
  
 
 For the Three Months Ended

 
  
 

 
  
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
 

 
  
  
  
  
  
  
 
 Interest

 
  
  
 
 Yields

 
  
  
  
  
  
  
 
 Interest

 
  
  
 
 Yields

 
  
 

 
  
  
 
 Average

 
  
  
 
 Income/

 
  
  
 
 or

 
  
  
 
 Average

 
  
  
 
 Income/

 
  
  
 
 or

 
  
 

 
 
 (In thousands)

 
  
 Balance
  
  
 Expense
  
  
 Rates (5)
  
  
 Balance
  
  
 Expense
  
  
 Rates (5)
  
 

 
 
 Assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest-earning assets:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans, net of deferred fees (1)

 
  
 $
 2,195,164
  
  
 $
 36,484
  
  
  
 6.67
 %
  
 $
 1,887,263
  
  
 $
 32,967
  
  
  
 7.01
 %
 

 
 
 Interest-earning deposits