FOR IMMEDIATE RELEASE

PRESS RELEASE

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

SAN JOSE, CA (Accesswire) – August 25, 2025 – Avidbank Holdings, Inc. (NASDAQ: AVBH) announced net income for the second quarter of 2025 of $5.8 million, or $0.75 per diluted share, compared to $5.4 million, or $0.71 per diluted share, for the first quarter of 2025 and $3.5 million, or $0.46 per diluted share, for the second quarter of 2024.

Initial Public Offering

Subsequent to the end of the second quarter, in August 2025 the Company completed an initial public offering 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 approximately $62 million.

Second Quarter 2025 Highlights

Book value per share was $25.80 at June 30, 2025, an increase of $0.95, or 15% annualized, from March 31, 2025, and an increase of $4.03, or 19%, from June 30, 2024.

Net interest margin expanded to 3.60% in the second quarter of 2025, compared to 3.52% in the first quarter of 2025.

Return on average assets improved to 1.00% compared to 0.96% in the first quarter of 2025 and 0.62% in the second quarter of 2024.

Loans increased $70.5 million, or 15% annualized, from March 31, 2025 and $105.1 million, or 6%, from June 30, 2024.

Average deposits increased $86.2 million, or 18% annualized, from the first quarter of 2025 and $214.9 million, or 12%, from the second quarter of 2024.

Nonperforming assets to total assets totaled 0.06% as of June 30, 2025 and March 31, 2025.

“Our second quarter results reflect the continued strength of our business model, with solid loan and deposit growth, further expansion in our net interest margin, and improved profitability,” said Mark D. Mordell, Chairman and Chief Executive Officer. “We are pleased to have successfully completed our initial public offering in August, which further strengthens our capital position to support our long-term strategy and provides the regulatory capital to potentially reposition a substantial portion of our available-for-sale securities portfolio. With a strong balance sheet, disciplined credit culture, and a growing client base, we believe we are well positioned to continue delivering value for our shareholders.”

“Our results are a testament to the trust our clients place in us and the dedication of our employees, who deliver exceptional service every day. As we look ahead, we remain focused on maintaining our disciplined approach to growth while continuing to invest in the relationships, people, and innovative solutions that differentiate Avidbank in the marketplace,” added Mr. Mordell.

Income Statement

Net income totaled $5.8 million for the second quarter of 2025, an increase of $361,000, or 27% annualized, from the first quarter of 2025, and an increase of $2.3 million, or 67%, from the second quarter of 2024. The primary contributors to the improvement in net income compared to the first quarter of 2025, were a $1.1 million increase in interest and fees on loans, an increase of $367,000 in noninterest income and a decrease in noninterest expense of $233,000. Partially offsetting this increase was $925,000 in provision for credit losses during the second quarter of 2025. This increase in provision for credit losses was primarily due to an increase in loans as of June 30, 2025 compared to March 31, 2025.

Net interest income totaled $20.3 million for the second quarter of 2025, an increase of $938,000, or 19% annualized, from the first quarter of 2025, and an increase of $1.8 million, or 10%, from the second quarter of 2024. Net interest margin was 3.60% in the second quarter of 2025, an increase of 8 basis points compared to the first quarter of 2025,

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release

and a 21-basis-point increase compared to the second quarter of 2024. The increase in net interest margin compared to the prior quarter was primarily driven by an increase in average loans and higher loan yields outpacing stable funding costs, which were driven by lower average short-term borrowings.

The yield on loans in the second quarter of 2025 was 7.01%, an increase of 5 basis points from the first quarter of 2025 and a decrease of 36 basis points from the second quarter of 2024. The increase in loan yields compared to the first quarter of 2025 was due to the increase in average loans during the second quarter of 2025 while the decrease in loan yields compared to the second quarter of 2024 was driven by a reduction in the Prime rate.

The cost of interest-bearing deposits in the second quarter of 2025 was 3.54%, an increase of 3 basis points compared to the first quarter of 2025 and a decrease of 57 basis points compared to the second quarter of 2024. The cost of deposits in the second quarter of 2025 was 2.78%, an increase of 2 basis points from the first quarter of 2025 and a decrease of 31 basis points from the second quarter of 2024.

The provision for credit losses was $925,000 in the second quarter of 2025, compared to $0 in the first quarter of 2025 and $3.0 million in the second quarter of 2024. The provision was higher in the second quarter of 2025 compared to the first quarter primarily due to higher loan balances.

Noninterest income was $1.5 million in the second quarter of 2025 compared to $1.2 million in the first quarter of 2025 and $1.1 million in the second quarter of 2024. The second quarter of 2025 included $273,000 from warrant and success fee income, partially offset by a decrease in other investments income due to fair value adjustments.

Noninterest expense totaled $12.6 million for the second quarter of 2025, compared to $12.8 million in the first quarter of 2025 and $11.8 million in the second quarter of 2024. The decrease from the first quarter was primarily due to lower salaries and benefits expense driven by the following: severance expense of $222,000 and seasonally higher payroll taxes during the first quarter of 2025, as well as higher capitalized loan origination costs during the second quarter of 2025, partially offset by an increase in incentives expense. Occupancy and equipment expense decreased due to lower rent expense in one of our loan production offices. There were 149 full-time equivalent employees on June 30, 2025, compared to 143 on March 31, 2025.

Balance Sheet

Total assets were $2.39 billion as of June 30, 2025, compared to $2.32 billion as of March 31, 2025, and $2.29 billion at June 30, 2024. Cash and cash equivalents were $129.9 million on June 30, 2025, compared to $125.0 million on March 31, 2025, and $111.7 million on June 30, 2024.

Loans on June 30, 2025, totaled $1.91 billion, an increase of $70.5 million, or 15% annualized, from March 31, 2025, and an increase of $105.1 million, or 6%, from June 30, 2024. The increase in loans during the second quarter of 2025 included an increase of $51.1 million in commercial and industrial loans, $25.6 million in owner occupied loans and $14.4 million in multi-family loans. Partially offsetting the increase in loans was a $21.7 million decrease in construction and land loans.

The allowance for credit losses on loans was $19.6 million on June 30, 2025, representing an increase of $902,000 from March 31, 2025 and a decrease of $2.8 million compared to June 30, 2024. The allowance for credit losses – loans and unfunded commitments to total loans was 1.15% on June 30, 2025, compared to 1.14% on March 31, 2025 and 1.36% as of June 30, 2024.

Nonperforming loans to total loans was 0.07% on June 30, 3025 unchanged from March 31, 2025 and down 10 basis points from June 30, 2024.

The available-for-sale securities portfolio totaled $292.8 million as of June 30, 2025, compared to $296.6 million on March 31, 2025, and $308.7 million as of June 30, 2024. The net unrealized loss for the available-for-sale portfolio totaled $63.4 million as of June 30, 2025, compared to $65.6 million at March 31, 2025 and $73.8 million as of June 30, 2024.

Deposits were $2.00 billion on June 30, 2025, an increase of $73.3 million, or 15% annualized, from March 31, 2025 and an increase of 264.3 million, or 15% from June 30, 2024. The change in deposits during the second quarter of 2025 included a $122.2 million increase in interest-bearing checking, offset by a $61.9 million decrease in non-reciprocal brokered deposits. Quarterly average deposits for the second quarter of 2025 were $1.97 billion, an increase of $86.2 million from the first quarter of 2025, and an increase of $214.9 million from the second quarter of 2024.

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release

Short-term borrowings on June 30, 2025, totaled $145.0 million, a decrease of $10.0 million, or 26% annualized, compared to March 31, 2025, and a decrease of $185.0 million, or 56%, compared to June 30, 2024.

Book value per share was $25.80 on June 30, 2025, an increase of $0.95 compared to $24.85 on March 31, 2025 and $21.77 as of June 30, 2024. Total shareholders’ equity was $204.4 million on June 30, 2025, an increase of $7.8 million compared to March 31, 2025 and an increase of $33.0 million from June 30, 2024. The change from March 31, 2025 to June 30, 2025 included an increase in retained earnings of $5.8 million and a decrease in accumulated other comprehensive loss of $1.2 million.

About Avidbank

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 news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to results presented 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 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 in the marketplace 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.

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 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 recent 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 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

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release

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 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

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Selected Financial Data (Unaudited)
(In thousands, except share and per share amounts)
	Quarter Ended										Year-to-Date
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		June 30,		June 30,
		2025		2025		2024		2024		2024		2025		2024
INCOME HIGHLIGHTS
Net income	$	5,797	$	5,436	$	6,457	$	5,846	$	3,466	$	11,233	$	8,712
PER SHARE DATA
Basic earnings per share	$	0.77	$	0.73	$	0.87	$	0.79	$	0.47	$	1.50	$	1.18
Diluted earnings per share		0.75		0.71		0.84		0.77		0.46		1.46		1.15
Book value per share		25.80		24.85		23.57		23.95		21.77		25.80		21.77
PERFORMANCE MEASURES
Return on average assets(1)		1.00%		0.96%		1.14%		1.02%		0.62%		0.98%		0.78%
Return on average equity(1)		11.59%		11.49%		13.65%		12.97%		8.35%		11.54%		10.50%
Net interest margin		3.60%		3.52%		3.48%		3.35%		3.39%		3.56%		3.46%
Taxable equivalent net interest margin(2)		3.60%		3.52%		3.49%		3.35%		3.39%		3.56%		3.46%
Efficiency ratio		57.77%		62.57%		52.53%		59.29%		59.92%		60.10%		60.78%
Average loans to average deposits		95.69%		98.55%		95.86%		99.90%		103.19%		97.08%		102.53%
CAPITAL
Tier 1 leverage ratio		10.53%		10.39%		10.35%		9.93%		9.64%		10.53%		9.64%
Common equity tier 1 capital ratio		11.02%		11.10%		10.59%		10.75%		10.08%		11.02%		10.08%
Tier 1 risk-based capital ratio		11.02%		11.10%		10.59%		10.75%		10.08%		11.02%		10.08%
Total risk-based capital ratio		12.76%		12.86%		12.30%		12.92%		12.17%		12.76%		12.17%
Common equity ratio		8.55%		8.48%		8.09%		8.21%		7.50%		8.55%		7.50%
SHARES OUTSTANDING
Number of common shares outstanding		7,923,946		7,912,184		7,906,761		7,871,818		7,876,082		7,923,946		7,876,082
Average common shares outstanding - basic		7,534,264		7,488,051		7,455,650		7,434,726		7,426,949		7,511,285		7,406,794
Average common shares outstanding - diluted		7,686,385		7,682,884		7,661,711		7,622,428		7,578,613		7,684,976		7,565,065
ASSET QUALITY
Total allowance for credit losses-loans and unfunded commitments		1.15%		1.14%		1.12%		1.37%		1.36%		1.15%		1.36%
Nonperforming assets to total assets		0.06%		0.06%		0.06%		0.16%		0.16%		0.06%		0.16%
Nonperforming loans to total loans		0.07%		0.07%		0.07%		0.20%		0.20%		0.07%		0.20%
Net charge-offs to average loans(1)		0.00%		-0.01%		0.93%		0.02%		0.00%		-0.01%		0.00%
AVERAGE BALANCES
Loans, net of deferred loan fees	$	1,887,263	$	1,858,716	$	1,815,933	$	1,804,107	$	1,813,422	$	1,873,068	$	1,785,096
Investment securities		293,640		296,422		308,502		311,450		307,294		295,024		313,367
Total assets		2,322,264		2,289,935		2,250,086		2,272,623		2,265,583		2,306,188		2,244,180
Deposits		1,972,215		1,885,993		1,894,321		1,805,935		1,757,320		1,929,342		1,741,082
Shareholders' equity		200,608		191,891		188,170		179,260		166,874		196,273		166,890
(1) Annualized
(2) A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Consolidated Balance Sheets (Unaudited)
(In thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2025		2025		2024		2024		2024
Assets
Cash and due from banks	$	2,800	$	18,866	$	8,662	$	15,172	$	13,750
Due from Federal Reserve Bank and interest-bearing deposits in banks		127,123		106,135		74,039		121,361		97,974
Total cash and cash equivalents		129,923		125,001		82,701		136,533		111,724
Investment securities available-for-sale		292,808		296,617		296,556		316,741		308,661
Loans, net of deferred loan fees		1,911,718		1,841,187		1,864,942		1,786,756		1,806,607
Allowance for credit losses on loans		(19,624)		(18,722)		(18,679)		(22,315)		(22,410)
Loans, net of allowance for credit losses on loans		1,892,094		1,822,465		1,846,263		1,764,441		1,784,197
Bank owned life insurance		12,857		12,764		12,674		12,580		12,490
Premises and equipment, net		1,927		2,118		2,331		2,549		2,810
Accrued interest receivable and other assets		62,520		60,957		63,963		62,625		67,139
Total assets	$	2,392,129	$	2,319,922	$	2,304,488	$	2,295,469	$	2,287,021

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	$	443,540	$	419,823	$	414,327	$	405,528	$	405,644
Interest-bearing checking		1,087,621		965,467		993,219		1,026,898		840,839
Money market and savings		399,849		399,010		338,578		336,166		312,162
Time		46,770		58,273		74,468		75,033		99,239
Non-reciprocal brokered(1)		25,001		86,915		70,763		57,903		80,608
Total deposits		2,002,781		1,929,488		1,891,355		1,901,528		1,738,492
Subordinated debt, net		22,000		22,000		22,000		21,982		21,957
Short-term borrowings		145,000		155,000		185,000		160,000		330,000
Accrued interest payable and other liabilities		17,929		16,815		19,771		23,438		25,123
Total liabilities		2,187,710		2,123,303		2,118,126		2,106,948		2,115,572

Shareholders' Equity
Common stock		107,608		106,839		106,997		106,169		105,487
Retained earnings		141,936		136,139		130,703		124,246		118,400
Accumulated other comprehensive loss		(45,125)		(46,359)		(51,338)		(41,894)		(52,438)
Total shareholders' equity		204,419		196,619		186,362		188,521		171,449

Total liabilities and shareholders' equity	$	2,392,129	$	2,319,922	$	2,304,488	$	2,295,469	$	2,287,021

(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, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, an additional $495.4 million, $447.8 million, $470.0 million, $509.3 million and $440.6 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Consolidated Statements of Income (Unaudited)
(in thousands, except share and per share amounts)

	Quarter Ended										Year-to-Date
		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		June 30,		June 30,
		2025		2025		2024		2024		2024		2025		2024
Interest and fees on loans	$	32,967	$	31,885	$	32,308	$	33,488	$	33,255	$	64,852	$	65,083
Interest on investment securities		1,703		1,749		1,770		1,767		1,801		3,452		3,624
Federal Home Loan Bank dividends		181		185		185		183		193		366		384
Other interest income		793		706		681		1,198		951		1,499		1,770
Total interest income		35,644		34,525		34,944		36,636		36,200		70,169		70,861
Deposit interest expense		13,669		12,827		14,015		14,602		13,494		26,496		25,528
Interest on short-term borrowings		1,242		1,911		1,437		3,121		3,880		3,153		7,322
Interest on subordinated debt		443		435		293		300		300		878		601
Total interest expense		15,354		15,173		15,745		18,023		17,674		30,527		33,451
Net interest income		20,290		19,352		19,199		18,613		18,526		39,642		37,410
Provision for credit losses		925		–		779		–		2,998		925		3,317
Net interest income after provision for credit losses		19,365		19,352		18,420		18,613		15,528		38,717		34,093
Service charges and bank fees		840		762		649		675		658		1,602		1,275
Foreign exchange income		196		220		191		246		208		416		460
Income from bank owned life insurance		93		90		93		90		137		183		324
Warrant and success fee income		273		–		65		–		–		273		–
Other investment income		(23)		47		637		240		59		24		214
Other income		159		52		205		539		36		211		108
Total noninterest income		1,538		1,171		1,840		1,790		1,098		2,709		2,381
Salaries and benefit expenses		8,978		9,097		7,389		8,336		7,980		18,075		16,774
Occupancy and equipment expenses		759		996		919		1,033		1,039		1,755		2,067
Data processing		759		615		613		638		597		1,374		1,161
Regulatory assessments		420		544		541		528		568		964		1,014
Legal and professional fees		715		511		452		534		541		1,226		1,152
Other operating expenses		978		1,079		1,138		1,028		1,033		2,057		2,016
Total noninterest expense		12,609		12,842		11,052		12,097		11,758		25,451		24,184
Income before income taxes		8,294		7,681		9,208		8,306		4,868		15,975		12,290
Provision for income taxes		2,497		2,245		2,751		2,460		1,402		4,742		3,578
Net income	$	5,797	$	5,436	$	6,457	$	5,846	$	3,466	$	11,233	$	8,712

Basic earnings per common share	$	0.77	$	0.73	$	0.87	$	0.79	$	0.47	$	1.50	$	1.18
Diluted earnings per common share		0.75		0.71		0.84		0.77		0.46		1.46		1.15

Weighted average shares - basic		7,534,264		7,488,051		7,455,650		7,434,726		7,426,949		7,511,285		7,406,794
Weighted average shares - diluted		7,686,385		7,682,884		7,661,711		7,622,428		7,578,613		7,684,976		7,565,065

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(In thousands)

	Quarter Ended
	June 30, 2025							March 31, 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)		$	1,887,263	$	32,967	7.01%	$	1,858,716	$	31,885	6.96%
Fed funds sold/interest-bearing deposits			73,552		793	4.32%		64,376		706	4.45%
Investment securities
Taxable investment securities			291,074		1,672	2.30%		293,736		1,718	2.37%
Non-taxable investment securities(2)			2,566		39	6.10%		2,686		39	5.84%
Total investment securities			293,640		1,711	2.34%		296,422		1,757	2.40%
FHLB stock			8,409		181	8.63%		8,409		185	8.92%
Total interest-earning assets			2,262,864		35,652	6.32%		2,227,923		34,533	6.29%
Noninterest-earning assets:
Cash and due from banks			10,120					12,851
All other assets(3)			49,280					49,161
Total assets		$	2,322,264				$	2,289,935
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,038,372	$	9,483	3.66%	$	956,994	$	8,530	3.61%
Money market and savings			398,438		3,094	3.11%		385,434		2,871	3.02%
Time deposits			47,398		400	3.38%		60,282		558	3.75%
Non-reciprocal brokered deposits			62,853		692	4.42%		77,537		868	4.54%
Total interest-bearing deposits			1,547,061		13,669	3.54%		1,480,247		12,827	3.51%
Short-term borrowings			108,374		1,242	4.60%		170,111		1,911	4.56%
Subordinated debt			22,000		443	8.08%		22,000		435	8.02%
Total interest-bearing liabilities			1,677,435		15,354	3.67%		1,672,358		15,173	3.68%
Noninterest-bearing liabilities:
Demand deposits			425,154					405,746
Accrued expenses and other liabilities			19,067					19,940
Shareholders' equity			200,608					191,891
Total liabilities and shareholders' equity		$	2,322,264				$	2,289,935

Net interest spread						2.65%					2.61%
Net interest income and margin(4)				$	20,298	3.60%			$	19,360	3.52%
Non-taxable equivalent net interest margin						3.60%					3.52%
Cost of deposits		$	1,972,215	$	13,669	2.78%	$	1,885,993	$	12,827	2.76%
(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 $314 thousand and $496 thousand, 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 $19.1 million and $18.8 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(In thousands)

		Quarter Ended
		June 30, 2025					June 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)	$	1,887,263	$	32,967	7.01%	$	1,813,422	$	33,255	7.38%
Fed funds sold/interest-bearing deposits		73,552		793	4.32%		70,491		951	5.43%
Investment securities
Taxable investment securities		291,074		1,672	2.30%		305,492		1,778	2.34%
Non-taxable investment securities(2)		2,566		39	6.10%		1,802		28	6.25%
Total investment securities		293,640		1,711	2.34%		307,294		1,806	2.36%
FHLB stock		8,409		181	8.63%		8,409		193	9.23%
Total interest-earning assets		2,262,864		35,652	6.32%		2,199,616		36,205	6.62%
Noninterest-earning assets:
Cash and due from banks		10,120					12,188
All other assets(3)		49,280					53,779
Total assets	$	2,322,264				$	2,265,583
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	1,038,372	$	9,483	3.66%	$	783,048	$	8,031	4.12%
Money market and savings		398,438		3,094	3.11%		304,392		2,598	3.43%
Time deposits		47,398		400	3.38%		97,430		1,035	4.27%
Non-reciprocal brokered deposits		62,853		692	4.42%		135,952		1,830	5.41%
Total interest-bearing deposits		1,547,061		13,669	3.54%		1,320,822		13,494	4.11%
Short-term borrowings		108,374		1,242	4.60%		295,220		3,880	5.29%
Subordinated debt		22,000		443	8.08%		21,944		300	5.50%
Total interest-bearing liabilities		1,677,435		15,354	3.67%		1,637,986		17,674	4.34%
Noninterest-bearing liabilities:
Demand deposits		425,154					436,498
Accrued expenses and other liabilities		19,067					24,225
Shareholders' equity		200,608					166,874
Total liabilities and shareholders' equity	$	2,322,264				$	2,265,583

Net interest spread					2.65%					2.28%
Net interest income and margin(4)			$	20,298	3.60%			$	18,531	3.39%
Non-taxable equivalent net interest margin					3.60%					3.39%
Cost of deposits	$	1,972,215	$	13,669	2.78%	$	1,757,320	$	13,494	3.09%
(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 $314 thousand and $409 thousand, 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 $19.1 million and $19.8 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release


AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(In thousands)

		Year-to-Date
		June 30, 2025					June 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)	$	1,873,068	$	64,852	6.98%	$	1,785,096	$	65,083	7.33%
Fed funds sold/interest bearing deposits		68,989		1,499	4.38%		64,941		1,770	5.48%
Investment securities
Taxable investment securities		292,398		3,391	2.34%		311,532		3,580	2.31%
Non-taxable investment securities(2)		2,626		77	5.91%		1,835		56	6.14%
Total investment securities		295,024		3,468	2.37%		313,367		3,636	2.33%
FHLB stock		8,409		366	8.78%		8,409		384	9.18%
Total interest-earning assets		2,245,490		70,185	6.30%		2,171,813		70,873	6.56%
Noninterest-earning assets:
Cash and due from banks		11,478					12,613
All other assets(3)		49,220					59,754
Total assets	$	2,306,188				$	2,244,180
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits	$	997,907	$	18,013	3.64%	$	764,981	$	15,470	4.07%
Money market and savings		391,972		5,965	3.07%		303,992		4,868	3.22%
Time deposits		53,805		958	3.59%		77,107		1,590	4.15%
Non-reciprocal brokered deposits		70,154		1,560	4.48%		135,203		3,600	5.35%
Total interest-bearing deposits		1,513,838		26,496	3.53%		1,281,283		25,528	4.01%
Short-term borrowings		139,072		3,153	4.57%		288,643		7,322	5.10%
Subordinated debt		22,000		878	8.05%		21,931		601	5.51%
Total interest-bearing liabilities		1,674,910		30,527	3.68%		1,591,857		33,451	4.23%
Noninterest-bearing liabilities:
Demand deposits		415,504					459,799
Accrued expenses and other liabilities		19,501					25,634
Shareholders' equity		196,273					166,890
Total liabilities and shareholders' equity	$	2,306,188				$	2,244,180

Net interest spread					2.62%					2.33%
Net interest income and margin(4)			$	39,658	3.56%			$	37,422	3.47%
Non-taxable equivalent net interest margin					3.56%					3.46%
Cost of deposits	$	1,929,342	$	26,496	2.77%	$	1,741,082	$	25,528	2.95%
(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 $810 thousand and $864 thousand, 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 $18.9 million and $19.5 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized

Logo

Description automatically generated Avidbank Holdings, Inc. Second Quarter 2025 Financial Results Press Release

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


	June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,		As of/For the Year-to-Date Period Ended June 30,
	2025		2025		2024		2024		2024		2025		2024
Allowance for Credit Losses on Loans
Beginning balance	$	18,722	$	18,679	$	22,315	$	22,410	$	19,342	$	18,679	$	19,131
Provision for credit losses on loans		891		–		630		–		3,068		891		3,279
Charge-offs		–		–		(4,266)		(95)		–		–		–
Recoveries		11		43		–		–		–		54		–
Ending balance	$	19,624	$	18,722	$	18,679	$	22,315	$	22,410	$	19,624	$	22,410
Allowance for Credit Losses on Unfunded Commitments
Beginning balance	$	2,247	$	2,247	$	2,098	$	2,098	$	2,168	$	2,247	$	2,060
Provision for unfunded commitments		34		–		149		–		(70)		34		38
Ending balance	$	2,281	$	2,247	$	2,247	$	2,098	$	2,098	$	2,281	$	2,098
Total allowance for credit losses - loans and unfunded commitments	$	21,905	$	20,969	$	20,926	$	24,413	$	24,508	$	21,905	$	24,508
Provision for credit losses under CECL
Provision for credit losses on loans	$	891	$	–	$	630	$	–	$	3,068	$	891	$	3,279
Provision for unfunded commitments		34		–		149		–		(70)		34		38
Total provision for credit losses under CECL	$	925	$	–	$	779	$	–	$	2,998	$	925	$	3,317
Nonperforming Assets

Avidbank Holdings, Inc. 8-K