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

Published: 2026-04-27 16:06:32 ET AVBH

Published on 04/27/2026 at 04:06 pm EDT

SAN JOSE, CA / ACCESS Newswire / April 27, 2026 / Avidbank Holdings, Inc. (NASDAQ:AVBH) (the "Company" or "Avidbank Holdings"), the holding company for Avidbank, a California state-chartered bank (the "Bank"), announced net income for the first quarter of 2026 of $9.0 million, or $0.84 per diluted share, compared to net income of $6.9 million, or $0.65 per diluted share, for the fourth quarter of 2025 and net income of $5.4 million, or $0.71 per diluted share, for the first quarter of 2025.

First Quarter 2026 Highlights

Return on average assets was 1.46% compared to 1.12% in the fourth quarter of 2025 and 0.96% in the first quarter of 2025.

Net interest margin expanded to 4.38% in the first quarter of 2026, compared to 4.13% in the fourth quarter of 2025 and 3.52% in the first quarter of 2025.

The efficiency ratio was 50.35% compared to 51.72% in the fourth quarter of 2025 and 62.57% 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.

Repurchased 25,000 shares of our common stock for $693 thousand and an average price of $27.69 per share as part of our share repurchase program.

Period-end loans, net of deferred fees, increased $24.4 million, or 5% annualized, from December 31, 2025 and $331.7 million, or 18%, from March 31, 2025.

Average deposits increased $15.2 million, or 3% annualized, from the fourth quarter of 2025 and $265.1 million, or 14%, from the first quarter of 2025. Period-end deposits increased $13.2 million, or 2% annualized, from December 31, 2025 and $269.8 million, or 14%, from March 31, 2025.

Non-performing assets to total assets decreased to 0.63% as of March 31, 2026 compared to 0.95% at December 31, 2025 and increased compared to 0.06% at March 31, 2025.

Net charge-offs to average loans totaled 0.52% in the first quarter of 2026 compared to 0.30% in the fourth quarter of 2025 due to the charge-off of two commercial and industrial loans.

Mark Mordell, Chairman and Chief Executive Officer stated, "We are pleased to see that the work we did in 2025 with our successful IPO and the restructuring of our balance sheet, along with the dedicated work of our employees, is being demonstrated by our improved profitability metrics."

Mordell added, "We believe the strong profitability in the first quarter reflects the strength of our business model and the continued execution of our overall strategy. This is a direct result of the dedication and teamwork of our employees, whose commitment to serving our clients and managing the balance sheet thoughtfully continues to drive meaningful value for our shareholders."

Mordell concluded, "During the quarter, overall asset quality improved with the resolution of three non-performing loans, including the charge-off of two commercial and industrial loans and the payoff of one construction loan. We remain focused on proactive credit management and remain confident in the credit quality of our overall loan portfolio."

Results of Operations

Net interest income totaled $26.5 million for the first quarter of 2026, an increase of $1.5 million, or 24% annualized, from the fourth quarter of 2025, and an increase of $7.1 million, or 37%, from the first quarter of 2025. Net interest margin was 4.38% in the first quarter of 2026, an increase of 25 basis points compared to the fourth quarter of 2025, and an 86 basis point increase compared to the first quarter of 2025. The increase in net interest income compared to the prior quarter was primarily due to higher average loan balances and lower cost of deposits, while the increase compared to the first quarter of 2025 was driven by higher average loan balances and lower average short-term borrowings. The increase in net interest margin compared to the prior quarter was primarily driven by higher average loan balances and lower cost of deposits as well as improvement in interest income due to the receipt of a special FHLB dividend totaling $241 thousand and higher loan fees in the first quarter of 2026. The special FHLB dividend contributed 4 basis points to net interest margin. The increase in net interest margin compared to the first quarter of 2025 was primarily driven by lower cost of deposits and lower rates on short-term borrowings.

The yield on loans in the first quarter of 2026 was 6.68%, unchanged from the fourth quarter of 2025 and a decrease of 28 basis points from the first quarter of 2025. The decrease in loan yields from the prior year quarter was driven by reductions in the prime rate. The yield on securities increased in the first quarter of 2026 to 4.64% compared to 4.61% in the fourth quarter of 2025 and 2.40% in the first quarter of 2025 due to the balance sheet restructuring in 2025.

The yield on interest-earning assets increased 13 basis points during the first quarter of 2026 compared to the fourth quarter of 2025 and increased 16 basis points compared to the first quarter of 2025. The increase from the fourth quarter of 2025 was primarily driven by an increase in average loan balances and higher average balances of debt securities, partially offset by a decrease in interest-bearing deposits. The increase compared to the first quarter of 2025 was primarily due to higher average loan balances and higher yields on the average balances of our debt securities portfolio.

The cost of interest-bearing deposits in the first quarter of 2026 was 2.98%, a decrease of 20 basis points compared to the fourth quarter of 2025 and a decrease of 53 basis points compared to the first quarter of 2025. The cost of deposits in the first quarter of 2026 was 2.24%, a decrease of 15 basis points from the fourth quarter of 2025 and a decrease of 52 basis points from the first quarter of 2025, primarily driven by the reduction in the Prime rate. Overall funding costs declined 19 basis points from the fourth quarter of 2025 and 63 basis points compared to the first quarter of 2025.

The provision for credit losses was $1.4 million in the first quarter of 2026, compared to $2.8 million in the fourth quarter of 2025 and $0 in the first quarter of 2025. The provision was lower in the first quarter of 2026 primarily due to lower loan growth compared to the fourth quarter of 2025 and higher compared to the first quarter of 2025 due to higher loan balances in the first quarter of 2026.

Non-interest income was $1.5 million in the first quarter of 2026 compared to $1.8 million in the fourth quarter of 2025 and $1.2 million in the first quarter of 2025. The first quarter of 2026 included decreases in warrant and success fee income and other investments income, partially offset by an increase of $109 thousand in foreign exchange income.

Non-interest expense totaled $14.1 million for the first quarter of 2026, compared to $13.9 million in the fourth quarter of 2025 and $12.8 million in the first quarter of 2025. The increase from the fourth quarter of 2025 and the first quarter of 2025 was primarily due to higher credit-related legal and professional fees. There were 154 full-time equivalent employees on March 31, 2026, compared to 151 on December 31, 2025, and 143 on March 31, 2025.

The effective tax rate for the first quarter of 2026 was 27.5% compared to 31.1% in the fourth quarter of 2025 and 29.2% in the first quarter of 2025. The decrease compared to the fourth quarter and the first quarter of 2025 was primarily due to discrete tax benefits related to the vesting of equity awards.

Financial Condition

Total assets were $2.58 billion as of March 31, 2026, compared to $2.57 billion as of December 31, 2025, and $2.32 billion at March 31, 2025. Cash and cash equivalents were $149.0 million on March 31, 2026, compared to $154.6 million on December 31, 2025, and $125.0 million on March 31, 2025.

Loans, net of deferred fees, on March 31, 2026, totaled $2.17 billion, an increase of $24.4 million, or 5% annualized, from December 31, 2025, and an increase of $331.7 million, or 18%, from March 31, 2025. The increase in loans during the first quarter of 2026 included an increase of $26.4 million in non-owner-occupied real estate loans, partially offset by a decrease of $8.8 million in commercial and industrial loans.

The allowance for credit losses on loans was $20.9 million on March 31, 2026, a decrease of $1.3 million from December 31, 2025, and an increase of $2.2 million compared to March 31, 2025. The allowance for credit losses - loans and unfunded commitments to total loans was 1.07% on March 31, 2026, compared to 1.15% on December 31, 2025 and 1.14% as of March 31, 2025. Non-performing loans to total loans was 0.75% at March 31, 2026, down 39 basis points compared to December 31, 2025 and up 68 basis points from March 31, 2025. The decrease in the first quarter of 2026 was primarily due to the payoff of a $3.1 million well-collateralized construction loan that was non-performing and the charge-off of two commercial and industrial loans totaling $3.2 million.

The available-for-sale securities portfolio totaled $210.6 million as of March 31, 2026, compared to $218.2 million at December 31, 2025, and $296.6 million as of March 31, 2025. The net unrealized loss for the available-for-sale portfolio totaled $1.8 million as of March 31, 2026, compared to $328 thousand at December 31, 2025 and $65.6 million as of March 31, 2025.

Deposits were $2.2 billion on March 31, 2026, an increase of $13.2 million, or 2% annualized, from December 31, 2025, and an increase of $269.8 million, or 14% from March 31, 2025. The change in deposits during the first quarter of 2026 included a $38.5 million increase in non-reciprocal brokered deposits and an increase of $20.1 million in non-interest-bearing demand deposits, partially offset by decreases of $33.1 million in interest-bearing checking deposits and $13.1 million in money market and savings deposits. Quarterly average deposits for the first quarter of 2026 were $2.15 billion, an increase of $15.2 million from the fourth quarter of 2025, and an increase of $265.1 million from the first quarter of 2025. Average non-interest-bearing demand deposits increased $7.4 million compared to the fourth quarter of 2025 and $128.3 million compared to the first quarter of 2025.

Short-term borrowings outstanding at March 31, 2026 were $55.0 million, compared to $60.0 million at December 31, 2025, and $155.0 million at March 31, 2025.

Book value per share was $26.33 on March 31, 2026, an increase of $0.67 compared to December 31, 2025, and an increase of $1.48 compared to March 31, 2025. Total shareholders' equity was $288.4 million on March 31, 2026, an increase of $7.5 million compared to December 31, 2025, and an increase of $91.8 million from March 31, 2025. During the first quarter of 2026, we repurchased 25,000 shares of our common stock for $693 thousand and an average price of $27.69 per share as part of our share repurchase program.

Other Information

The Company will host a conference call on April 28, 2026, at 11:00 a.m. (Eastern Time) / 8:00 a.m. (Pacific Time) to discuss the earnings results for the first quarter of 2026. Investors may call in by dialing (800) 715-9871 within the US and +1(646) 307-1963 for all other locations (Conference ID: 1715743). Participants may also pre-register for the conference by navigating https://events.q4inc.com/attendee/983702195.

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 April 28, 2026, through the Investor Relations section of the Company's website. The recording will be available for one year from the day of posting. Information which may be discussed on the conference call is provided in an earnings supplement presentation available on the Company's website and furnished with the SEC and available at www.sec.gov.

About Avidbank Holdings

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

Non-GAAP Financial Measures

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

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, which involve risks and uncertainties. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements include statements concerning our possible or assumed financial condition, results of operations, including descriptions of our business plans, strategy and expectations, capital and financing needs and liquidity and regulatory and competitive outlook. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other variations or comparable terminology and expressions. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. We caution that the forward-looking information and statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: uncertain market conditions and economic trends nationally, regionally and particularly in the Bay Area 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; incurrence of losses in connection with the 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, geopolitical events, 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 client 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 effects and results of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to; the results of regulatory examinations or reviews and the effect of and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to; our level of non-performing assets and the costs associated with resolving problem loans; our ability to maintain adequate liquidity and to raise necessary capital to fund our growth strategy and operations or to meet increased minimum regulatory capital levels; the effects of increased competition from a wide variety of local, regional, national and other providers of financial services; technological changes and developments; negative trends in our market capitalization and adverse changes in the price of our common stock; risks associated with unauthorized access, cyber-crime and other threats to data security; the effects of any strategic transactions we may make or evaluate, and the costs associated with any potential or actual strategic transaction; our ability to comply with various governmental and regulatory requirements applicable to financial institutions, including supervisory actions by federal and state banking agencies; the impact of recent and future legislative and regulatory changes, including changes in banking, accounting, securities and tax laws and regulations and their application by our regulators, and economic stimulus programs; governmental monetary and fiscal policies, including the policies of the Federal Reserve and policies related to tariffs; our ability to implement, maintain and improve effective internal controls; our use of the net proceeds from our recent 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 annual report on Form 10-K and quarterly reports on Form 10-Q under the heading "Risk Factors" therein and available at the SEC's Internet site www.sec.gov. The foregoing factors should not be considered exhaustive. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information. Therefore, we caution you not to place undue reliance on our forward-looking information and statements. We disclaim any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Contact:

Patrick OakesExecutive Vice President and Chief Financial [email protected]

AVIDBANK HOLDINGS, INC.Selected Financial Data (Unaudited)

For the Three Months Ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2026

2025

9,021

6,949

(37,735

)

5,797

5,436

9,021

6,949

6,707

5,797

5,436

0.85

0.66

(4.12

)

0.77

0.73

0.84

0.65

(4.12

)

0.75

0.71

0.84

0.65

0.72

0.75

0.71

26.33

25.66

25.00

25.80

24.85

1.46

1.12

(6.35

1.00

0.96

1.46

1.12

1.13

1.00

0.96

12.74

9.90

(63.19

11.59

11.49

12.74

9.90

11.23

11.59

11.49

4.38

4.13

3.90

3.60

3.52

50.35

51.72

(35.28

57.77

62.57

50.35

51.72

55.72

57.77

62.57

99.98

94.78

94.14

95.69

98.55

11.39

11.23

11.14

10.53

10.39

11.39

11.05

11.68

11.02

11.10

11.39

11.05

11.68

11.02

11.10

12.85

12.57

13.48

12.76

12.86

11.18

10.93

11.56

8.55

8.48

10,955,167

10,947,967

10,925,102

7,923,946

7,912,184

10,600,902

10,579,753

9,168,707

7,534,264

7,488,051

10,773,884

10,754,488

9,168,707

7,686,385

7,682,884

10,773,884

10,754,488

9,353,444

7,686,385

7,682,884

1.07

1.15

1.19

1.15

1.14

0.63

0.95

0.12

0.06

0.75

1.14

0.14

0.07

0.52

0.30

(0.01

0.00

(0.01

2,150,688

2,024,325

1,924,537

1,887,263

1,858,716

216,507

196,462

181,154

293,640

296,422

2,504,616

2,459,110

2,357,158

2,322,264

2,289,935

2,151,059

2,135,876

2,044,228

1,972,215

1,885,993

287,191

278,382

236,903

200,608

191,891

2,172,846

2,148,439

1,958,585

1,911,718

1,841,187

210,583

218,160

173,588

292,808

296,617

2,579,554

2,569,643

2,362,454

2,392,129

2,319,922

2,199,319

2,186,073

2,049,158

2,002,781

1,929,488

288,438

280,979

273,113

204,419

196,619

(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 months ended March 31, 2026.

AVIDBANK HOLDINGS, INC.Consolidated Statements of Financial Condition (Unaudited)

March 31,

Dec, 31,

Sept. 30,

June 30,

March 31,

2026

2025

10,569

7,942

12,006

2,800

18,866

138,473

146,627

165,313

127,123

106,135

149,042

154,569

177,319

129,923

125,001

210,583

218,160

173,588

292,808

296,617

2,172,846

2,148,439

1,958,585

1,911,718

1,841,187

(20,938

)

(22,261

)

(21,025

)

(19,624

)

(18,722

)

2,151,908

2,126,178

1,937,560

1,892,094

1,822,465

13,151

13,045

12,953

12,857

12,764

1,340

1,526

1,739

1,927

2,118

53,530

56,165

59,295

62,520

60,957

2,579,554

2,569,643

2,362,454

2,392,129

2,319,922

577,101

556,972

471,770

443,540

419,823

1,036,178

1,069,272

1,069,344

1,087,621

965,467

519,059

532,149

465,198

399,849

399,010

28,521

27,680

42,846

46,770

58,273

38,460

25,001

86,915

2,199,319

2,186,073

2,049,158

2,002,781

1,929,488

55,000

60,000

145,000

155,000

22,000

14,797

20,591

18,183

17,929

16,815

2,291,116

2,288,664

2,089,341

2,187,710

2,123,303

169,474

169,990

169,342

107,608

106,839

120,171

111,150

104,201

141,936

136,139

(1,207

)

(161

)

(430

)

(45,125

)

(46,359

)

288,438

280,979

273,113

204,419

196,619

2,579,554

2,569,643

2,362,454

2,392,129

2,319,922

(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 March 31, 2026, December 31, 2025, September 30 2025, June 30, 2025 and March 31, 2025, an additional $447.6 million, $475.4 million, $522.5 million, $495.4 million and $447.8 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

AVIDBANK HOLDINGS, INC.Consolidated Statements of Operations (Unaudited)

For the Three Months Ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2026

2025

35,429

34,093

33,880

32,967

31,885

2,467

2,274

1,157

1,703

1,749

426

185

184

181

185

716

1,775

2,033

793

706

39,038

38,327

37,254

35,644

34,525

11,899

12,887

13,776

13,669

12,827

240

385

1,242

1,911

399

421

443

435

12,538

13,314

14,604

15,354

15,173

26,500

25,013

22,650

20,290

19,352

1,445

2,838

1,355

925

25,055

22,175

21,295

19,365

19,352

821

797

779

840

762

363

254

267

196

220

106

375

273

(22

)

146

315

(23

)

(62,391

)

196

102

159

1,467

1,767

(60,852

)

1,538

1,171

9,555

9,574

9,766

8,978

9,097

1,188

890

591

715

511

799

770

792

759

615

790

730

723

759

996

566

521

445

420

544

1,184

1,366

1,162

978

1,079

14,082

13,851

13,479

12,609

12,842

12,440

10,091

(53,036

)

8,294

7,681

3,419

3,142

(15,301

)

2,497

2,245

9,021

6,949

(37,735

)

5,797

5,436

0.85

0.66

(4.12

)

0.77

0.73

0.84

0.65

(4.12

)

0.75

0.71

10,600,902

10,579,753

9,168,707

7,534,264

7,488,051

10,773,884

10,754,488

9,168,707

7,686,385

7,682,884

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

For the Three Months Ended

March 31, 2026

December 31, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (6)

Balance

Expense

Rates (6)

2,150,688

35,429

6.68

2,024,325

34,093

6.68

78,859

716

3.68

175,590

1,775

4.01

213,820

2,437

4.62

193,816

2,244

4.59

2,687

5.74

2,646

5.70

216,507

2,475

4.64

196,462

2,282

4.61

8,409

426

20.55

8,409

185

8.73

2,454,463

39,046

6.45

2,404,786

38,335

6.32

13,058

13,506

37,095

40,818

2,504,616

2,459,110

1,067,528

8,260

3.14

1,088,413

9,186

3.35

517,342

3,389

2.66

489,587

3,449

2.79

27,589

207

3.04

31,266

252

3.20

4,567

3.82

0.00

1,617,026

11,899

2.98

1,609,266

12,887

3.18

25,500

240

3.82

652

3.65

21,997

399

7.36

22,000

421

7.59

1,664,523

12,538

3.05

1,631,918

13,314

3.24

534,033

526,610

18,869

22,200

287,191

278,382

2,504,616

2,459,110

3.40

3.08

26,508

4.38

25,021

4.13

4.38

4.13

2,151,059

11,899

2.24

2,135,876

12,887

2.39

(1) Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred fees / (costs) of $252 thousand and $353 thousand, for the three months ended March 31, 2026 and December 31, 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 average allowance for credit losses on loans of $21.9 million and $21.8 million, respectively.(4) Net interest margin is net interest income divided by total interest-earning assets.(5) Includes a special FHLB dividend totaling $241 thousand for the three months ended March 31, 2026. Yield is annualized for the periods presented.(6) Annualized for the periods presented.

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

For the Three Months Ended

March 31, 2026

March 31, 2025

Interest

Yields

Interest

Yields

Average

Income/

Average

Income/

Balance

Expense

Rates (6)

Balance

Expense

Rates (6)

2,150,688

35,429

6.68

1,858,716

31,885

6.96

78,859

716

3.68

64,376

706

4.45

213,820

2,437

4.62

293,736

1,718

2.37

2,687

5.74

2,686

5.89

216,507

2,475

4.64

296,422

1,757

2.40

8,409

426

20.55

8,409

185

8.92

2,454,463

39,046

6.45

2,227,923

34,533

6.29

13,058

12,851

37,095

49,161

2,504,616

2,289,935

1,067,528

8,260

3.14

956,994

8,530

3.61

517,342

3,389

2.66

385,434

2,871

3.02

27,589

207

3.04

60,282

558

3.75

4,567

3.82

77,537

868

4.54

1,617,026

11,899

2.98

1,480,247

12,827

3.51

25,500

240

3.82

170,111

1,911

4.56

21,997

399

7.36

22,000

435

8.02

1,664,523

12,538

3.05

1,672,358

15,173

3.68

534,033

405,746

18,869

19,940

287,191

191,891

2,504,616

2,289,935

3.40

2.61

26,508

4.38

19,360

3.52

4.38

3.52

2,151,059

11,899

2.24

1,885,993

12,827

2.76

(1) Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred fees / (costs) of $252 thousand and $496 thousand, for the three months ended March 31, 2026 and March 31, 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 average allowance for credit losses on loans of $21.9 million and $18.8 million, respectively.(4) Net interest margin is net interest income divided by total interest-earning assets.(5) Includes a special FHLB dividend totaling $241 thousand for the three months ended March 31, 2026. Yield is annualized for the periods presented.(6) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.Asset Quality Data (Unaudited)

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2026

2025

22,261

21,025

19,624

18,722

18,679

1,433

2,759

1,364

891

(3,171

)

(1,523

)

415

20,938

22,261

21,025

19,624

18,722

2,351

2,272

2,281

2,247

)

2,363

2,351

2,272

2,281

2,247

23,301

24,612

23,297

21,905

20,969

1,433

2,759

1,364

891

)

1,445

2,838

1,355

925

16,323

24,502

2,761

1,352

1,360

16,323

24,502

2,761

1,352

1,360

16,323

24,502

2,761

1,352

1,360

5,088

2,761

1,352

1,360

16,323

19,414

16,323

24,502

2,761

1,352

1,360

0.96

1.04

1.07

1.03

1.02

1.07

1.15

1.19

1.15

1.14

128.27

90.85

761.50

1451.48

1376.62

0.63

0.95

0.12

0.06

0.75

1.14

0.14

0.07

0.52

0.30

(0.01

0.00

(0.01

1.57

0.50

1.48

1.87

1.43

0.92

1.22

0.44

0.38

0.20

(1) Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.Loans and Deposits (Unaudited)

Current

Year

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

Quarter

Over Year

2026

2025

Change

1,040,684

1,049,530

871,524

855,049

803,920

(8,846

)

236,764

268,057

265,105

249,802

241,399

227,003

2,952

41,054

164,191

165,130

176,171

168,393

142,764

(939

)

21,427

450,503

424,107

412,623

407,955

405,788

26,396

44,715

200,272

196,243

209,750

204,973

226,641

4,029

(26,369

)

48,726

45,669

36,399

31,560

32,985

3,057

15,741

1,131,749

1,096,254

1,084,745

1,054,280

1,035,181

35,495

96,568

413

2,655

2,316

2,389

2,086

(2,242

)

(1,673

)

2,172,846

2,148,439

1,958,585

1,911,718

1,841,187

24,407

331,659

577,101

556,972

471,770

443,540

419,823

20,129

157,278

1,036,178

1,069,272

1,069,344

1,087,621

965,467

(33,094

)

70,711

519,059

532,149

465,198

399,849

399,010

(13,090

)

120,049

28,521

27,680

42,846

46,770

58,273

841

(29,752

)

38,460

25,001

86,915

38,460

(48,455

)

2,199,319

2,186,073

2,049,158

2,002,781

1,929,488

13,246

269,831

534,033

526,610

482,849

425,154

405,746

7,423

128,287

1,067,528

1,088,413

1,074,064

1,038,372

956,994

(20,885

)

110,534

517,342

489,587

433,135

398,438

385,434

27,755

131,908

27,589

31,266

43,897

47,398

60,282

(3,677

)

(32,693

)

4,567

10,283

62,853

77,537

4,567

(72,970

)

2,151,059

2,135,876

2,044,228

1,972,215

1,885,993

15,183

265,066

(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 March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, an additional $447.6 million, $475.4 million, $522.5 million, $495.4 million and $447.8 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

AVIDBANK HOLDINGS, INC.Non-GAAP Performance and Financial Measures Reconciliation (Unaudited)

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. In addition, management reviews yields on certain asset categories and the net interest margin of the Company on a fully taxable equivalent basis. The non-GAAP taxable equivalent net interest income adjustment facilitates performance comparisons between taxable and tax-free assets by increasing the tax-free income by an amount equivalent to the Federal income taxes that would have been paid if this income were taxable at the Company's 21% Federal statutory rate.

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2026

2025

9,021

6,949

(37,735

)

5,797

5,436

62,391

(17,949

)

9,021

6,949

6,707

5,797

5,436

0.84

0.65

(4.12

)

0.75

0.71

4.84

0.84

0.65

0.72

0.75

0.71

10,773,884

10,754,488

9,353,444

7,686,385

7,682,884

9,021

6,949

(37,735

)

5,797

5,436

2,504,616

2,459,110

2,357,158

2,322,264

2,289,935

1.46

1.12

(6.35

1.00

0.96

9,021

6,949

6,707

5,797

5,436

2,504,616

2,459,110

2,357,158

2,322,264

2,289,935

1.46

1.12

1.13

1.00

0.96

9,021

6,949

(37,735

)

5,797

5,436

287,191

278,382

236,903

200,608

191,891

12.74

9.90

(63.19

11.59

11.49

9,021

6,949

6,707

5,797

5,436

287,191

278,382

236,903

200,608

191,891

12.74

9.90

11.23

11.59

11.49

14,082

13,851

13,479

12,609

12,842

26,500

25,013

22,650

20,290

19,352

1,467

1,767

(60,852

)

1,538

1,171

50.35

51.72

(35.28

57.77

62.57

14,082

13,851

13,479

12,609

12,842

26,500

25,013

22,650

20,290

19,352

1,467

1,767

(60,852

)

1,538

1,171

62,391

1,467

1,767

1,539

1,538

1,171

50.35

51.72

55.72

57.77

62.57

26,500

25,013

22,650

20,290

19,352

26,508

25,021

22,658

20,298

19,360

(1) Annualized for the periods presented.

SOURCE: Avidbank Holdings, Inc.