Avidbank : 1Q26 Avidbank Investor Presentation

Published: 2026-04-27 16:25:10 ET AVBH

Published on 04/27/2026 at 04:25 pm EDT

Investor Presentation | Q1 2026

Safe Harbor Statement and Disclaimer (continued)

Industry Information

Within this presentation, we reference certain industry and sector information and statistics. We have obtained this information and statistics from various independent, third-party sources. Nothing in the data used or derived from third-party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of internal surveys and independent sources. We believe that these external sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. Although we are not aware of any misstatements regarding the demographic, economic, employment, industry and trade association data presented herein, these estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. Finally, forward-looking information obtained from these third-party sources is subject to the same qualifications and the additional uncertainties regarding the other forward-looking statements in this presentation.

Non-GAAP Financial Measures

This presentation includes financial information prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). This presentation 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 appendix to this presentation.

Diversified Commercial Bank Positioned for Growth

Q1 2026 Income Highlights

$26.33

Book value per share

$0.84

Diluted earnings per share

1.46%

Return on average assets

4.38%

Net interest margin

50.35%

Efficiency Ratio

Founded in 2003 with roots in dynamic Bay Area and a national expansion strategy

Diversified core funding base and well-balanced loan portfolio

Experienced management team with continued investment in talent acquisition and development

Disciplined underwriting approach with a proven track record of solid asset quality through various economic cycles

Effi cient footprint with one full-service branch and two loan

production offices

Historically strong loan and deposit growth

Our Business Model

Providing capital call lines of credit to PE and VC firms

Fund Finance

Venture Lending

Comprehensive suite of banking and financing solutions for VC-backed tech companies and their investors

Specialty Finance

Two teams offer creative financing solutions:

Sponsor Finance provides funding for lower-middle market acquisitions to PE-backed companies and entrepreneurs using the search fund model

Asset-Based Lending provides flexible working capital secured

by receivables and inventory

Treasury Management

Proactively helping clients with their cash management needs

Developing new deposit initiatives, including 1031 exchange deposits

Commercial Real Estate

Provides financing for commercial, multi-family, and mixed-use properties

Collateralized by investment properties in California

Construction Lending

Provides land acquisition loans, pre-development loans and construction loans on residential, commercial and mixed-use properties

Primary focus is high quality residential properties in desirable Bay Area neighborhoods

Local Bay Area1 Focus ….

… With a Growing National Presence

Corporate Banking

Traditional core commercial and owner-occupied lending to small and mid-sized commercial Bay Area clients

Provides high touch service that enables our local clients to

meet their financing needs and manage their cash

Bay Area Core, Expanding National Reach

Avidbank serves clients in 40 states with team members located in key innovation hubs nationwide

27% of loan balances are outside of California, driven by targeted growth in Venture and Specialty Finance

Bay Area

San Francisco

Redwood City

LPO

Branch and HQ

San Jose

AVBH Headquarters

Q1 2026 Balance Sheet

Result s as of and for

$ in thousands

Q1 2026

Q4 2025

Q1 2025

Q1 2026

Q4 2025

Q1 2025

Balance Sheet:

Balance Sheet and Capital Ratios:

Cash and Cash Equivalents

$ 149,042

$ 154,569

$ 125,001

Tier 1 Leverage Ratio

11.39%

11.23%

10.39%

Debt Securities

210,583

218,160

296,617

Common Equity Tier 1 Ratio

11.39%

11.05%

11.10%

Loans, net of deferred fees and ACL

2,151,908

2,126,178

1,822,465

Tier 1 Risk-Based Capital Ratio

11.39%

11.05%

11.10%

Other Assets

68,021

70,736

75,839

Total Risk-Based Capital Ratio

12.85%

12.57%

12.86%

Total Assets

$2,579,554

$2,569,643

$2,319,922

Common Equity Ratio

11.18%

10.93%

8.48%

Non-Interest-Bearing Deposits

$ 577,101

$ 556,972

$ 419,823

Asset Quality Data:

Interest-Bearing Deposits

1,622,218

1,629,101

1,509,665

Total ACL / Loans + Unfunded Commitments

1.07%

1.15%

1.14%

Total Deposits

2,199,319

2,186,073

1,929,488

Non-Performing Assets to Total Assets

0.63%

0.95%

0.06%

Subordinated Debt, Net

22,000

Net Charge-Offs to Average Loans

0.52%

0.30%

(0.01%)

Short-Term Borrowings

55,000

60,000

155,000

Other Liabilities

14,797

20,591

16,815

Total Liabilities

2,291,116

2,288,664

2,123,303

Total Shareholders' Equity

288,438

280,979

196,619

Total Liabilities and Shareholders' Equity

$2,579,554

$2,569,643

$2,319,922

At March 31, 2026:

Period-end loans* increased $24 million, or 5% annualized, from December 31, 2025 and $332 million, or 18.0% from March 31, 2025.

Period-end deposits increased $13 million, or 2% annualized, from December 31, 2025 and $270 million, or 14% from March 31, 2025.

Period-end non-interest-bearing demand deposits increased $20 million, or 15% annualized, from December 31, 2025 and $157 million, or 37% from March 31, 2025.

Q1 2026 Income and Profitability

Result s as of and for

Change from

Net income totaled $9.0

$ in thousands, except per share amounts

Q1 2026

Q4 2025

Q1 2025

Q4 2025*

Q1 2025

Select Operating Data:

Net Interest Income

$ 26,500

$ 25,013

$ 19,352

$ 1,487

24%

$ 7,148

37%

Provision for Credit Losses

1,445

2,838

(1,393)

(199%)

1,445

Total Non-interest Income

1,467

1,767

1,171

(300)

(69%)

296

25%

Total Non-interest Expense

14,082

13,851

12,842

231

1,240

10%

Income Before Income Taxes

12,440

10,091

7,681

2,349

94%

4,759

62%

Income Tax Expense

3,419

3,142

2,245

277

36%

1,174

52%

Net Income / (Loss)

$ 9,021

$ 6,949

$ 5,436

$ 2,072

121%

$ 3,585

66%

Per Share Data:

Diluted Earnings / (Loss) Per Share

$ 0.84

$ 0.65

$ 0.71

$ 0.19

119%

$ 0.13

18%

Book Value Per Share

26.33

25.66

24.85

0.67

11%

1.48

Performance Ratios:

Return on Average Assets

1.46%

1.12%

0.96%

34 bps

50 bps

Return on Average Equity

12.74%

9.90%

11.49%

284 bps

125 bps

Net Interest Margin

4.38%

4.13%

3.52%

25 bps

86 bps

Efficiency Ratio

50.35%

51.72%

62.57%

-137 bps

-1222 bps

million and diluted EPS of

$0.84 for the first quarter

of 2026.

In the first quarter of 2026, net interest margin expanded to 4.38% from 4.13% in the prior quarter and 3.52% in the first quarter of 2025.

Book value per share was

$26.33 at March 31, 2026, an increase of $0.67 from December 31, 2025, and an increase of $1.48 from March 31, 2025.

*Percent change from Q4 2025 annualized 8

Proven Organic Growth

Total Assets ($M) Total Loans ($M)

Total Deposits ($M) Loan / Deposit Ratio (%)

Net Interest Margin Expansion

Taxable-Equivalent Net Interest Income1 ($) and Net Interest Margin (%) Net Interest Income Sensitivity

Repositioning the investment portfolio, decreasing deposit costs, and growth in DDA have contributed to expanding margin

53% of loans floating at

March 31, 2026

Loan beta since rate decreases started in 2024: 51%

Deposit beta since rate decreases started in 2024: 73%

Historical Loan Yields (%) Historical Deposit Cost (%)

1Adjusted measure. See GAAP to non-GAAP reconciliation in Appendix for detail.

Improvement in Capital Ratios

Common Equity Ratio (%) Tier 1 Leverage Ratio (%)

Tier 1 Risk-Based Capital Ratio (%) Total Risk-Based Capital Ratio (%)

Diversified Lending Platform

15% loan CAGR since 2018, demonstrating history of consistent organic growth

Commercial lending focus - C&I plus owner-occupied CRE account

for 56% of total loans

Diversified CRE book spans office, hotel, retail, industrial and more

- no single-sector risk

Targeted construction lending focused on residential builds in

aﬄuent Bay Area markets with experienced local developers

Loan Portfolio Interest Rate Comparison1

Total Loans at March 31,

2026:

$2.2B

19% of floating rate loans are at floor rates

Loan Portfolio by Type

Average Non-Owner-Occupied Office Loan Size: $2.6M

Non-Owner-Occupied CRE at 3/31/2026

$s in 000s; % of total loans

Office

$ 147,619

Retail

103,631

Hotel/Motel

83,985

Industrial

67,712

Warehouse

16,603

Other

30,953

Tot al

$ 450,503

21%

C&I Lending Overview

Diversified portfolio of C&I lending includes multiple verticals and varied industries, driving balanced, disciplined growth

Total C&I Loans at March 31, 2026:

$1.0B

Venture Lending Overview

Launched in 2019, Avidbank's venture platform serves VC-backed tech companies and their investors nationwide

Platform is highly self-funded, with client deposits exceeding loan balances by 3.0 times

Borrowers are required to bank with Avidbank which provides added visibility into cashflows and tighter credit control

Clients are backed by institutional capital, with experienced sponsors providing support and stability

Avidbank receives equity warrants in connection with extending loan commitments to certain of its customers. As of March 31, 2026, Avidbank has a total of 143 warrant positions in 98 clients*

Companies with software-as-a-service (SaaS) revenue model total $165 million, or 59%, of the Venture Lending portfolio across multiple industries

Venture Loans and Deposits

Deposit s/

Loans

3.0x

Venture Lending Portfolio by Industry

Venture Lending SaaS Exposure

AI Advancement and SaaS Transformation

The SaaS revenue model is undergoing a fundamental shift primarily driven by the accelerated advancements of AI. Pure SaaS businesses are viewed as the most vulnerable to AI-driven disruption.

Avidbank is closely monitoring an emerging divergence in SaaS companies focused on horizontal or vertical SaaS strategies:

Horizontal solves a specific functional problem, such as CRM, HR

or payroll, across a wide range of industries

Vertical is purpose-built for the unique workflows and regulatory requirements of a specific industry

The bank has conducted a thorough review of the SaaS loan portfolio to evaluate companies that could be impacted by AI disruption

SaaS borrowers are broadly utilizing AI-driven development

SaaS Lending Exposure by Industry

Total SaaS Loans

at March 31,

2026:

$165mm

SaaS Portfolio Breakdown

SaaS Strategy

Total Deposits

$98,880

$247,160

Total Loans

$44,739

$120,373

Average Loan Size

$2,034

$3,086

tools

Data as of Mar. 31, 2026

Horizontal Vertical

SaaS borrowers continue to successfully raise equity rounds with vertical strategies experiencing more fundraising activity

Dollars in thousands

Disciplined Credit Culture and Minimal History of Losses

NPAs / Assets (%)

Proven ability to manage credit through cycles with minimal loss history, even following tumultuous periods for the sector

Structured credit process combines efficient execution with

strong controls, including:

Multi-level credit approval framework

Regular divisional portfolio reviews

Special Asset Committee meetings twice a month to review

any watch, criticized, and classified loans

Independent third-party reviews conducted annually on over 90% of loan balances

CRE Concentrations

*annualized

ACL / Loans + Unfunded Commitments (%) and NCOs / Avg Loans (%)

Varied Funding Sources

Year-over-year period-end deposit growth of $270 million, or 14%

Non-interest-bearing deposits increased $157 million, or 37%, from March 31, 2025

Multi-pronged deposit strategy:

Venture Lending drives funding with deposit generation well in

excess of loan balances

Corporate Banking and Specialty Finance are self-funding, supporting loan growth and broader balance sheet strength

CRE and Construction are asset-focused with limited deposit generation

Five Quarter Deposit Trend

Total Deposits at March 31,

2026:

$2.2B

1Other includes Fund Finance, Commercial Real Estate, Construction, and Other

2As of March 31, 2026, an additional $447.6 million of our deposits was considered brokered for regulatory purposes

Deposits by Division Borrowing Capacity

Data as of Mar. 31, 2026 Amount Used

Dollars in millions Capacity

($)

(%)

Available

Federal Funds Line of Credit

$209

$55

26%

$154

FHLB

$549

Unpledged Securities

$211

$202

FRB Discount Window

$981

Available Contingent Capacity

$1,950

$64

$1,886

Securities Portfolio

Investment portfolio totaled $211 million at March 31, 2026, with a book yield of 4.64%, a duration of 3.5 years and average life of 5.0 years

Comprised primarily of agency MBS and CMOs

100% of securities portfolio is classified as available for sale

Total Securities at March 31,

2026:

$211M

Portfolio Composition

Investment Portfolio / Total Assets (%) & Portfolio Yield (%)

Net Unrealized Loss on AFS Securities ($M)

Appendix

Experienced Management Team

Mark D. Mordell - Chairman of the Board, President and Chief Executive Offi cer

Joined the board of directors of the Bank in January of 2006, appointed Chairman in February of 2007, named CEO of Avidbank Holdings and the Bank in March 2012

Brings over 30 years of financial services, real estate and diverse business experience to the Company

In 1991 founded California Bavarian Corporation and its successor company, CBC Properties, LLC, which was a full-service real estate investment and management organization based in Palo Alto

Mr. Mordell holds various roles including Advisory Board Member to MMM Management, Inc., the strategic advisor to a family office based in San Francisco, Advisory Board Member of the Donovan & Bank Foundation, which assists Special Forces Operators transition into a life of peace, contentment and balance, and is involved in various community organizations including Stanford University, Peninsula Bridge, Sacred Heart Preparatory School and the Town of Portola Valley

Mr. Mordell received a B.A. in Economics from Stanford University

Patrick Oakes - Executive Vice President and Chief Financial Offi cer

Joined the Bank as EVP and CFO of Avidbank Holdings and the Bank in March 2022

Came to the Company from Atlantic Capital Bancshares, Inc. (Nasdaq: ACBI, which subsequently merged into SouthState Bank, N.A.) where he served as

EVP, CFO and Secretary from 2015 to 2022

Previous roles include EVP and CFO of Square 1 Bank, EVP and CFO of Encore Bancshares, Inc, and Senior Vice President and Treasurer of Sterling Bank

Mr. Oakes was named the Atlanta Business Chronicle's 2021 CFO of the Year among small public company CFOs

Mr. Oakes is a Chartered Financial Analyst, and holds a Bachelor of Science in Electrical Engineering Technology degree from Texas A&M University and an MBA, International Finance from Richmond American University London

Gina Thoma-Peterson - Executive Vice President and Chief Operating Offi cer

Joined the Bank as EVP and COO of Avidbank Holdings and the Bank in September 2019

Previously spent eight years at MUFG Union Bank holding senior positions in global financial services enterprise and operational risk management, and comprehensive capital and analysis review (CCAR)

Spent 12 years at PricewaterhouseCoopers (PwC) in San Francisco, with deep expertise in regulatory compliance, enterprise risk, financial reporting and operational resilience. Led advisory and audit services for the largest PwC portfolio of global, regional and community financial institutions in the Western U.S.

Spent six years in bank supervision and regulatory compliance as an Associate National Bank Examiner for the Office of the Comptroller of the Currency, following four years in operational roles with community and regional banks in California and Washington

Ms. Thoma-Peterson received her B.A. in Business Administration from the University of Washington

Disclaimer

Avidbank Holdings Inc. published this content on April 27, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 27, 2026 at 20:24 UTC.