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FOR IMMEDIATE RELEASE

PRESS RELEASE

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."

⁽¹⁾

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

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release

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.

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release

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.

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

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release

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

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release

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

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Selected Financial Data (Unaudited)
(In thousands, except share and per share amounts)											For the Nine
	For the Three Months Ended										Months Ended
		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
		2025		2025		2025		2024		2024		2025		2024
INCOME HIGHLIGHTS
Net (loss) / income	$	(37,735)	$	5,797	$	5,436	$	6,457	$	5,846	$	(26,502)	$	14,558
Net income-adjusted (2)	$	6,707	$	5,797	$	5,436	$	6,457	$	5,846	$	17,940	$	14,558
PER SHARE DATA
Basic (loss) / earnings per share	$	(4.12)	$	0.77	$	0.73	$	0.87	$	0.79	$	(3.28)	$	1.96
Diluted (loss) / earnings per share		(4.12)		0.75		0.71		0.84		0.77		(3.28)		1.92
Diluted earnings per share-adjusted (2)		0.72		0.75		0.71		0.84		0.77		2.18		1.92
Book value per share		25.00		25.80		24.85		23.57		23.95		25.00		23.95
PERFORMANCE MEASURES
Return on average assets (1)		(6.35)%		1.00%		0.96%		1.14%		1.02%		(1.53)%		0.86%
Return on average assets-adjusted (1) (2)		1.13%		1.00%		0.96%		1.14%		1.02%		1.03%		0.86%
Return on average equity (1)		(63.19)%		11.59%		11.49%		13.65%		12.97%		(16.88)%		11.37%
Return on average equity-adjusted (1) (2)		11.23%		11.59%		11.49%		13.65%		12.97%		11.42%		11.37%
Net interest margin (1)		3.90%		3.60%		3.52%		3.48%		3.35%		3.68%		3.42%
Net interest margin - taxable equivalent (1) (2)		3.90%		3.60%		3.52%		3.49%		3.35%		3.68%		3.42%
Efficiency ratio		(35.28)%		57.77%		62.57%		52.53%		59.29%		938.30%		60.27%
Efficiency ratio-adjusted (2)		55.72%		57.77%		62.57%		52.53%		59.29%		58.51%		60.27%
Average loans to average deposits		94.14%		95.69%		98.55%		95.86%		99.90%		96.05%		101.62%
CAPITAL
Tier 1 leverage ratio (3)		11.10%		10.53%		10.39%		10.35%		9.93%		11.10%		9.93%
Common equity tier 1 capital ratio (3)		11.68%		11.02%		11.10%		10.59%		10.75%		11.68%		10.75%
Tier 1 risk-based capital ratio (3)		11.68%		11.02%		11.10%		10.59%		10.75%		11.68%		10.75%
Total risk-based capital ratio (3)		13.48%		12.76%		12.86%		12.30%		12.92%		13.48%		12.92%
Common equity ratio		11.56%		8.55%		8.48%		8.09%		8.21%		11.56%		8.21%
SHARES OUTSTANDING
Number of common shares outstanding		10,925,102		7,923,946		7,912,184		7,906,761		7,871,818		10,925,102		7,871,818
Average common shares outstanding - basic		9,168,707		7,534,264		7,488,051		7,455,650		7,434,726		8,069,830		7,416,173
Average common shares outstanding - diluted		9,168,707		7,686,385		7,682,884		7,661,711		7,622,428		8,069,830		7,584,349
ASSET QUALITY
Total allowance for credit losses-loans and unfunded commitments		1.19%		1.15%		1.14%		1.12%		1.37%		1.19%		1.37%
Nonperforming assets to total assets		0.12%		0.06%		0.06%		0.06%		0.16%		0.12%		0.16%
Nonperforming loans to total loans		0.14%		0.07%		0.07%		0.07%		0.20%		0.14%		0.20%
Net charge-offs to average loans (1)		(0.01)%		0.00%		(0.01)%		0.93%		0.02%		(0.01)%		0.01%
AVERAGE BALANCES
Loans, net of deferred loan fees	$	1,924,537	$	1,887,263	$	1,858,716	$	1,815,933	$	1,804,107	$	1,890,413	$	1,791,479
Investment securities		181,154		293,640		296,422		308,502		311,450		256,650		312,723
Total assets		2,357,158		2,322,264		2,289,935		2,250,086		2,272,623		2,323,365		2,253,729
Deposits		2,044,228		1,972,215		1,885,993		1,894,321		1,805,935		1,968,059		1,762,857
Shareholders' equity		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.

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Consolidated Statements of Financial Condition (Unaudited)
(In thousands)
	September 30,		June 30,		March 31,		December 31,		September 30,
	2025		2025		2025		2024		2024
Assets
Cash and due from banks	$	12,006	$	2,800	$	18,866	$	8,662	$	15,172
Due from Federal Reserve Bank and interest-bearing deposits in banks		165,313		127,123		106,135		74,039		121,361
Total cash and cash equivalents		177,319		129,923		125,001		82,701		136,533
Investment securities available-for-sale		173,588		292,808		296,617		296,556		316,741
Loans, net of deferred loan fees		1,958,585		1,911,718		1,841,187		1,864,942		1,786,756
Allowance for credit losses on loans		(21,025)		(19,624)		(18,722)		(18,679)		(22,315)
Loans, net of allowance for credit losses on loans		1,937,560		1,892,094		1,822,465		1,846,263		1,764,441
Bank owned life insurance		12,953		12,857		12,764		12,674		12,580
Premises and equipment, net		1,739		1,927		2,118		2,331		2,549
Accrued interest receivable and other assets		59,295		62,520		60,957		63,963		62,625
Total assets	$	2,362,454	$	2,392,129	$	2,319,922	$	2,304,488	$	2,295,469

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	$	471,770	$	443,540	$	419,823	$	414,327	$	405,528
Interest-bearing checking		1,069,344		1,087,621		965,467		993,219		1,026,898
Money market and savings		465,198		399,849		399,010		338,578		336,166
Time		42,846		46,770		58,273		74,468		75,033
Non-reciprocal brokered (1)		–		25,001		86,915		70,763		57,903
Total deposits		2,049,158		2,002,781		1,929,488		1,891,355		1,901,528
Subordinated debt, net		22,000		22,000		22,000		22,000		21,982
Short-term borrowings		–		145,000		155,000		185,000		160,000
Accrued interest payable and other liabilities		18,183		17,929		16,815		19,771		23,438
Total liabilities		2,089,341		2,187,710		2,123,303		2,118,126		2,106,948

Shareholders' Equity
Common stock		169,342		107,608		106,839		106,997		106,169
Retained earnings		104,201		141,936		136,139		130,703		124,246
Accumulated other comprehensive loss		(430)		(45,125)		(46,359)		(51,338)		(41,894)
Total shareholders' equity		273,113		204,419		196,619		186,362		188,521
Total liabilities and shareholders' equity	$	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.

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
											For the Nine
	For the Three Months Ended										Months Ended
		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		Sept. 30,		Sept. 30,
		2025		2025		2025		2024		2024		2025		2024
Interest and fees on loans	$	33,880	$	32,967	$	31,885	$	32,308	$	33,488	$	98,732	$	98,570
Interest on investment securities		1,157		1,703		1,749		1,770		1,767		4,609		5,392
Federal Home Loan Bank dividends		184		181		185		185		183		550		567
Other interest income		2,033		793		706		681		1,198		3,532		2,968
Total interest income		37,254		35,644		34,525		34,944		36,636		107,423		107,497
Deposit interest expense		13,776		13,669		12,827		14,015		14,602		40,272		40,130
Interest on short-term borrowings		385		1,242		1,911		1,437		3,121		3,538		10,443
Interest on subordinated debt		443		443		435		293		300		1,321		901
Total interest expense		14,604		15,354		15,173		15,745		18,023		45,131		51,474
Net interest income		22,650		20,290		19,352		19,199		18,613		62,292		56,023
Provision for credit losses		1,355		925		–		779		–		2,280		3,317
Net interest income after provision for credit losses		21,295		19,365		19,352		18,420		18,613		60,012		52,706
Service charges and bank fees		779		840		762		649		675		2,381		1,951
Foreign exchange income		267		196		220		191		246		683		706
Income from bank owned life insurance		96		93		90		93		90		279		415
Warrant and success fee income		–		273		–		65		–		273		–
Loss on sale of securities		(62,391)		–		–		–		–		(62,391)		–
Other investment income		315		(23)		47		637		240		339		454
Other income		82		159		52		205		539		293		644
Total noninterest income		(60,852)		1,538		1,171		1,840		1,790		(58,143)		4,170
Salaries and benefit expenses		9,766		8,978		9,097		7,389		8,336		27,841		25,111
Occupancy and equipment expenses		723		759		996		919		1,033		2,478		3,099
Data processing		792		759		615		613		638		2,166		1,799
Regulatory assessments		445		420		544		541		528		1,409		1,542
Legal and professional fees		591		715		511		452		534		1,817		1,686
Other operating expenses		1,162		978		1,079		1,138		1,028		3,219		3,043
Total noninterest expense		13,479		12,609		12,842		11,052		12,097		38,930		36,280
Income before income taxes		(53,036)		8,294		7,681		9,208		8,306		(37,061)		20,596
(Benefit) / provision for income taxes		(15,301)		2,497		2,245		2,751		2,460		(10,559)		6,038
Net (loss) / income	$	(37,735)	$	5,797	$	5,436	$	6,457	$	5,846	$	(26,502)	$	14,558

Basic (loss) / earnings per common share	$	(4.12)	$	0.77	$	0.73	$	0.87	$	0.79	$	(3.28)	$	1.96
Diluted (loss) / earnings per common share		(4.12)		0.75		0.71		0.84		0.77		(3.28)		1.92

Weighted average shares - basic		9,168,707		7,534,264		7,488,051		7,455,650		7,434,726		8,069,830		7,416,173
Weighted average shares - diluted		9,168,707		7,686,385		7,682,884		7,661,711		7,622,428		8,069,830		7,584,349

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release


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/	or		Average		Income/	or
			Balance		Expense	Rates (5)		Balance		Expense	Rates (5)
Assets
Interest-earning assets:
Loans, net of deferred fees (1)		$	1,924,537	$	33,880	6.98%	$	1,887,263	$	32,967	7.01%
Fed funds sold / interest-bearing deposits			189,921		2,033	4.25%		73,552		793	4.32%
Investment securities
Taxable investment securities			178,637		1,126	2.50%		291,074		1,672	2.30%
Non-taxable investment securities (2)			2,517		39	6.15%		2,566		39	6.10%
Total investment securities			181,154		1,165	2.55%		293,640		1,711	2.34%
FHLB stock			8,409		184	8.68%		8,409		181	8.63%
Total interest-earning assets			2,304,021		37,262	6.42%		2,262,864		35,652	6.32%
Noninterest-earning assets:
Cash and due from banks			7,019					10,120
All other assets (3)			46,118					49,280
Total assets		$	2,357,158				$	2,322,264
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,074,064	$	9,961	3.68%	$	1,038,372	$	9,483	3.66%
Money market and savings			433,135		3,336	3.06%		398,438		3,094	3.11%
Time deposits			43,897		365	3.30%		47,398		400	3.38%
Non-reciprocal brokered deposits			10,283		114	4.40%		62,853		692	4.42%
Total interest-bearing deposits			1,561,379		13,776	3.50%		1,547,061		13,669	3.54%
Short-term borrowings			33,500		385	4.56%		108,374		1,242	4.60%
Subordinated debt			22,000		443	7.99%		22,000		443	8.08%
Total interest-bearing liabilities			1,616,879		14,604	3.58%		1,677,435		15,354	3.67%
Noninterest-bearing liabilities:
Demand deposits			482,849					425,154
Accrued expenses and other liabilities			20,527					19,067
Shareholders' equity			236,903					200,608
Total liabilities and shareholders' equity		$	2,357,158				$	2,322,264

Net interest spread						2.83%					2.65%
Net interest income and margin (4)				$	22,658	3.90%			$	20,298	3.60%
Non-taxable equivalent net interest margin						3.90%					3.60%
Cost of deposits		$	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.

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release

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/	or		Average		Income/	or
		Balance		Expense	Rates (5)		Balance		Expense	Rates (5)
Assets
Interest-earning assets:
Loans, net of deferred fees (1)	$	1,924,537	$	33,880	6.98%	$	1,804,107	$	33,488	7.38%
Fed funds sold / interest-bearing deposits		189,921		2,033	4.25%		87,228		1,198	5.46%
Investment securities
Taxable investment securities		178,637		1,126	2.50%		309,624		1,745	2.24%
Non-taxable investment securities (2)		2,517		39	6.15%		1,826		28	6.10%
Total investment securities		181,154		1,165	2.55%		311,450		1,773	2.26%
FHLB stock		8,409		184	8.68%		8,409		183	8.66%
Total interest-earning assets		2,304,021		37,262	6.42%		2,211,194		36,642	6.59%
Noninterest-earning assets:
Cash and due from banks		7,019					12,943
All other assets (3)		46,118					48,486
Total assets	$	2,357,158				$	2,272,623
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	1,074,064	$	9,961	3.68%	$	903,542	$	9,801	4.32%
Money market and savings		433,135		3,336	3.06%		348,125		3,067	3.50%
Time deposits		43,897		365	3.30%		75,972		810	4.24%
Non-reciprocal brokered deposits		10,283		114	4.40%		69,670		924	5.28%
Total interest-bearing deposits		1,561,379		13,776	3.50%		1,397,309		14,602	4.16%
Short-term borrowings		33,500		385	4.56%		237,370		3,121	5.23%
Subordinated debt		22,000		443	7.99%		21,970		300	5.44%
Total interest-bearing liabilities		1,616,879		14,604	3.58%		1,656,649		18,023	4.33%
Noninterest-bearing liabilities:
Demand deposits		482,849					408,626
Accrued expenses and other liabilities		20,527					28,088
Shareholders' equity		236,903					179,260
Total liabilities and shareholders' equity	$	2,357,158				$	2,272,623

Net interest spread					2.83%					2.26%
Net interest income and margin (4)			$	22,658	3.90%			$	18,619	3.35%
Non-taxable equivalent net interest margin					3.90%					3.35%
Cost of deposits	$	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.

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release


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/	or		Average		Income/	or
		Balance		Expense	Rates (5)		Balance		Expense	Rates (5)
Assets
Interest earning assets:
Loans, net of deferred fees (1)	$	1,890,413	$	98,732	6.98%	$	1,791,479	$	98,570	7.35%
Fed funds sold/interest bearing deposits		109,743		3,532	4.30%		72,424		2,968	5.47%
Investment securities
Taxable investment securities		254,061		4,517	2.38%		310,891		5,325	2.29%
Non-taxable investment securities (2)		2,589		116	5.99%		1,832		84	6.12%
Total investment securities		256,650		4,633	2.41%		312,723		5,409	2.31%
FHLB stock		8,409		550	8.74%		8,409		567	9.01%
Total interest-earning assets		2,265,215		107,447	6.34%		2,185,035		107,514	6.57%
Noninterest-earning assets:
Cash and due from banks		9,975					12,723
All other assets (3)		48,175					55,971
Total assets	$	2,323,365				$	2,253,729
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	1,023,572	$	27,974	3.65%	$	811,505	$	25,272	4.16%
Money market and savings		405,844		9,301	3.06%		318,811		7,935	3.32%
Time deposits		50,466		1,323	3.51%		76,725		2,400	4.18%
Non-reciprocal brokered deposits		49,978		1,674	4.48%		113,199		4,523	5.34%
Total interest-bearing deposits		1,529,860		40,272	3.52%		1,320,240		40,130	4.06%
Short-term borrowings		103,495		3,538	4.57%		271,427		10,443	5.14%
Subordinated debt		22,000		1,321	8.03%		21,944		901	5.48%
Total interest-bearing liabilities		1,655,355		45,131	3.65%		1,613,611		51,474	4.26%
Noninterest-bearing liabilities:
Demand deposits		438,199					442,617
Accrued expenses and other liabilities		19,846					26,458
Shareholders' equity		209,965					171,043
Total liabilities and shareholders' equity	$	2,323,365				$	2,253,729

Net interest spread					2.70%					2.31%
Net interest income and margin (4)			$	62,316	3.68%			$	56,040	3.42%
Non-taxable equivalent net interest margin					3.68%					3.42%
Cost of deposits	$	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.

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Avidbank Holdings, Inc. Third Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Asset Quality Data (Unaudited)
(In thousands)

	Sept. 30,	June 30,	March 31,	Dec. 31,	Sept. 30,	As of/For the Year-to-Date Period Ended September 30,
	2025	2025	2025	2024	2024	2025	2024
Allowance for Credit Losses on Loans

Avidbank Holdings, Inc. 8-K