Avidia Bancorp, Inc. Reports Fourth Quarter and Annual 2025 Financial Results, Declares Quarterly Cash Dividend

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

tangible book value per share financial

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

non-performing loans financial

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

non-accrual loans financial

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

FDIC regulatory

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that protects individual and business bank deposits by insuring accounts up to a set limit, acting like a safety net for savers if a bank fails. It matters to investors because FDIC insurance reduces the chance of sudden losses for depositors, supports confidence in the banking system, and can influence the perceived risk and stock value of banks and financial firms.

HUDSON, Mass.--(BUSINESS WIRE)-- Avidia Bancorp, Inc. (the “Company”) (NYSE: “AVBC”), the holding company of Avidia Bank, today reported fourth quarter and annual 2025 consolidated financial results. Net income for the fourth quarter of 2025 was $5.3 million, or $0.29 per share, compared to net income of $3.5 million for the fourth quarter of 2024. For the year ended December 31, 2025, the net loss was $3.3 million, or ($0.18) per share, compared to net income of $11.5 million for the year ended December 31, 2024.

The Company also announced today the declaration of a quarterly cash dividend of $0.05 per share on its outstanding shares of common stock, payable on or about February 26, 2026, to stockholders of record as of the close of business on February 17, 2026. This is the Company’s initial cash dividend payment following its initial public stock offering in July 2025.

“Our primary objective of deploying our newly issued capital in a disciplined manner was reflected in fourth quarter results.” said Robert Cozzone, President and Chief Executive Officer. “Growth across most commercial loan categories was fully funded with core deposits growth, leading to net interest margin expansion. In addition, solid earnings for the quarter contributed to 2.1% growth in tangible book value per share. We are also pleased to announce the initiation of our first quarterly dividend.”

SELECTED FOURTH QUARTER FINANCIAL HIGHLIGHTS

• Net income was $5.3 million, or $0.29 per share, for the fourth quarter.
• Net interest margin increased quarter-over-quarter by 11 basis points to 3.54%.
• Efficiency ratio of 67.2% continues to improve over prior periods.
• Book value per share and tangible book value per share (non-GAAP) increased to $18.88 and $18.28, respectively. See the non-GAAP reconciliation at the end of this document for further information.

BALANCE SHEET:

Total assets were $2.84 billion at December 31, 2025, increasing $50.1 million, or 1.8%, from September 30, 2025.

• Total cash and cash equivalents increased by $33.6 million, or 30.0%, to $145.5 million from $111.9 million in the prior quarter, primarily as a result of $48.7 million in deposit growth, partially offset by loan growth of $23.7 million.
• Total loans increased by $23.7 million, or 1.0%, to $2.30 billion, from $2.27 billion in the prior quarter. Moderate growth was seen across most segments, and was led by increases of $8.5 million, or 1.6%, in commercial real estate loans and $8.5 million, or 1.7%, in condominium association loans.
  • Loan exposure related to non-medical office space at December 31, 2025 was $89.3 million or 3.9% of gross loans. When excluding owner-occupied, total non-medical office exposure was $71.4 million.
• Deposits increased by $48.7 million, or 2.3%, to $2.13 billion from $2.08 billion in the prior quarter, driven primarily by growth within the wholesale payments business. NOW accounts grew $62.3 million, non-interest-bearing demand accounts increased $17.0 million and savings accounts were also up $8.4 million. This growth was offset by decreases in money market accounts of $28.0 million and certificates of deposits of $10.9 million.
• Total shareholders’ equity increased by $7.0 million, or 1.9%, to $379.0 million from $372.0 million in the prior quarter, primarily the result of net income of $5.3 million and a $1.6 million increase in accumulated other comprehensive income.
• Shareholders' equity to total assets was 13.36% as of December 31, 2025, compared to 13.35% at the prior quarter-end. Tangible shareholders' equity to tangible assets (non-GAAP) was 12.99% compared to 12.98% for these respective dates.

Total assets at December 31, 2025 increased $180.6 million, or 6.8% from December 31, 2024.

• Total loans increased $100.3 million, or 4.6%, from $2.20 billion at December 31, 2024. Growth was seen across most segments, and was led by increases of $50.7 million, or 10.5%, in commercial real estate loans and $20.8 million, or 24.8%, in multi-family loans.
• Deposits increased by $61.5 million, or 3.0%, from $2.07 billion at December 31, 2024, driven primarily by growth within the wholesale payments business.

NET INTEREST INCOME

Net interest income was $23.6 million for the quarter ended December 31, 2025, compared to $23.4 million for the prior quarter, an increase of $177 thousand, or 0.8%. The net interest margin expanded 11 basis points to 3.54% for the quarter from 3.43% in the prior quarter.

• The yield on interest-earning assets increased by 9 basis points to 5.06% as reinvestment of cash flow of fixed rate loans continue to reprice upward.
• The cost of deposits increased by 2 basis points to 1.35% from 1.33% in the prior quarter as the previous quarter benefited from low-cost deposits associated with funds held at the Bank related to the subscription offering.

Net interest income was $86.5 million for the year ended December 31, 2025, compared to $73.3 million for the year ended December 31, 2024, an increase of $13.2 million, or 18.1%. The net interest margin expanded 37 basis points to 3.29% for the year ended December 31, 2025, from 2.92% for the year ended December 31, 2024.

NON-INTEREST INCOME

Noninterest income was $3.7 million for the quarter ended December 31, 2025, compared to $4.5 million for the prior quarter, representing a decrease of $810 thousand, or 17.9%.

• Net loss on sale of securities available for sale was $218 thousand from the disposal of $1.3 million in low performing investments.
• Payment processing income was $1.7 million, compared to $1.9 million for the prior quarter, representing a decrease of $137 thousand due to lower activity.
• Other non-interest income was $528 thousand, compared to $999 thousand in the prior quarter, representing a decrease of $471 thousand. The decrease was related to a $128 thousand write-down of our mortgage servicing asset as well as a $221 thousand loss on the disposition of fixed assets.

Noninterest income was flat at $17.0 million for the years ended December 31, 2025 and 2024 as lower mortgage banking income was offset by lower loss on sales of available for sale and equity securities.

NON-INTEREST EXPENSE

Noninterest expense was $18.4 million for the quarter ended December 31, 2025, compared to $28.4 million for the prior quarter, representing a decrease of $10.0 million, or 35.3%.

• Data processing expense increased $1.0 million to $3.3 million, which was primarily the result of an increase of $460 thousand in core processing due to favorable billing adjustments in the prior quarter as well as an increase of $263 thousand in software licensing expense related to the Company’s continued investment in technology.
• Deposit insurance expense decreased to $217 thousand from $651 thousand, which was the result of a favorable adjustment to the accrual of FDIC expense and related to an increase in the Bank’s total capital levels.
• Other general and administrative expenses decreased $9.9 million to $1.8 million, primarily due to the $10.0 million contribution to the Avidia Bank Charitable Foundation, Inc, in the prior quarter.

Noninterest expense was $87.8 million for the year ended December 31, 2025, compared to $73.1 million for the year ended December 31, 2024, representing an increase of $14.7 million, or 20.1%.

• Other general and administrative expenses increased $8.8 million to $17.5 million, primarily due to the $10.0 million contribution to the Avidia Bank Charitable Foundation, Inc, during 2025.
• Salaries and benefits increased $5.0 million primarily due to $1.1 million in termination costs associated with the bank’s long term incentive plan, $1.1 million in costs associated with the installation of the bank’s employee stock ownership plan and $1.3 million of an increase in salaries.

INCOME TAXES

Income tax expense for the quarter ended December 31, 2025, was $2.4 million, compared to an income tax benefit of $1.0 million in the prior quarter. Income tax benefit for the year ended December 31, 2025, was $2.4 million, compared to an income tax expense of $3.9 million for the year ended December 31, 2024.

ASSET QUALITY

The allowance for credit losses was $22.0 million as of December 31, 2025, or 0.96% of total loans, compared to $24.3 million, or 1.07% of total loans at September 30, 2025.

• The Company recorded provisions for credit losses on loans of $1.4 million in the fourth quarter.
• The Company recorded net charge-offs of $3.7 million, or 0.65% annualized during the quarter ended December 31, 2025, compared to 0.11% in the quarter ended September 30, 2025 as the Company deemed balances on previously recorded non-performing loans as uncollectable.
• Non-performing loans totaled $20.2 million as of December 31, 2025, an increase of $2.6 million from the quarter ended September 30, 2025, primarily due to an increase of $6.1 million in non-performing commercial real estate loans, offset by the decrease of $1.4 million non-performing commercial loans and another $2.5 million decrease in non-performing construction loans.
• Total non-accrual loans to total loans was 0.88% as of December 31, 2025, compared to 0.77% as of September 30, 2025.
• The collateral for a $25.0 million land loan for the development of a life sciences facility that was charged down by $16.7 million in the first quarter of 2025 was sold at foreclosure auction in January 2026. Though the sale has yet to close, the Company used the sale price to record an additional charge-off of $2.5 million in the fourth quarter. A specific reserve had been established in the third quarter so the impact on the provision for credit losses was reduced.

ABOUT AVIDIA BANCORP, INC.

Avidia Bancorp, Inc. is the bank holding company of Avidia Bank. Avidia Bank is a Massachusetts-chartered stock savings bank. With headquarters in Hudson, Massachusetts, it also operates nine full-service banking offices in western Middlesex County and eastern Worcester County, in Massachusetts.

NON-GAAP FINANCIAL MEASURES

This document contains certain non-GAAP financial measures in addition to results presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided at the end of this document. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP operating earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP operating earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this document as supplemental financial data should be considered in conjunction with the Company’s GAAP financial information. The Company adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other similar expressions which do not relate to historical matters. Although we believe that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance. You should not place undue reliance on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond our control. Our actual results could differ materially from those presented in the forward-looking statements as a result of, among other factors, changes in general business and economic conditions nationwide and in our local markets, including changes which adversely affect borrowers' ability to service and repay loans; changes in customer behavior due to political, business and economic conditions, including inflation; conditions in the capital and debt markets; reductions in net interest income resulting from interest rate volatility and changes in the balances and mix of our loans and deposits; changes in market interest rates and real estate values; decreases in the value of securities and other assets or in deposit levels necessitating increased borrowing to fund loans and investments; competition from other financial institutions; changes in legislation or regulation and accounting principles, policies and guidelines; cybersecurity incidents; fraud; natural disasters; the risk that we may be unsuccessful in implementing our business strategy; and the other risks and uncertainties disclosed in Avidia Bancorp, Inc.’s definitive prospectus dated May 13, 2025, as filed the U.S. Securities and Exchange Commission. Forward looking statements speak only as of the date of this release, and we do not undertake any obligation to update or revise any of them to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events, except as may be required by applicable law or regulation.

Avidia Bancorp, Inc.
Selected Consolidated Financial Highlights (Unaudited)
		At or for the Quarters Ended												At or for the Years Ended
(Dollars in thousands, except per share data)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024				Dec. 31, 2025				Dec. 31, 2024
Earnings Data:
Net interest income		$	23,609			$	23,432			$	19,082			$	86,541			$	73,260
Total non-interest income			3,716				4,526				3,159				17,024				17,019
Total non-interest expense			18,361				28,369				18,139				87,805				73,097
Provision for credit losses			1,217				1,540				(686	)			21,443				1,779
Income (loss) before income tax expense			7,747				(1,951	)			4,788				(5,683	)			15,403
Net income (loss)			5,333				(907	)			3,509				(3,289	)			11,484
Per-Share Data:
Earnings (loss) per share, basic		$	0.29			$	(0.05	)			N/A			$	(0.18	)			N/A
Earnings (loss) per share, diluted			0.29				(0.05	)			N/A			$	(0.18	)			N/A
Book value per share			18.88				18.53				N/A				18.88				N/A
Tangible book value per share (non-GAAP)			18.28				17.94				N/A				18.28				N/A
Performance Ratios:
Return on average assets (annualized)			0.77	%			-0.13	%			0.53	%			-0.12	%			0.44	%
Return on average equity (annualized)			5.66				-1.14				8.07				-1.22				6.18
Net interest margin(1)			3.54				3.43				3.00				3.29				2.92
Cost of deposits			1.35				1.33				1.62				1.40				1.63
Yield on loans			5.34				5.21				5.14				5.23				5.15
Interest rate spread (2)			3.04				3.02				2.48				2.85				2.41
Noninterest income as a percentage of average assets			0.54				0.64				0.48				0.62				0.65
Noninterest expense as a percentage of average assets			2.66				4.02				2.75				3.20				2.78
Efficiency ratio(3)			67.19				101.47				81.56				84.78				80.97
Average interest-earning assets as a percentage of average interest-bearing liabilities			132.56				127.08				126.46				126.47				125.24
Balance Sheet, (end of period):
Total assets		$	2,837,090			$	2,787,010			$	2,656,539			$	2,837,090			$	2,656,539
Total earning assets			2,722,357				2,669,662				2,543,243				2,722,357				2,543,243
Total loans			2,298,466				2,274,747				2,198,200				2,298,466				2,198,200
Total deposits			2,128,283				2,079,578				2,066,832				2,128,283				2,066,832
Total shareholders' equity			378,994				372,037				193,827				378,994				193,827
Asset Quality:
Allowance for credit losses		$	22,018			$	24,284			$	21,741			$	22,018			$	21,741
Allowance for credit losses as a percentage of total loans			0.96	%			1.07	%			0.99	%			0.96				0.99
Allowance for credit losses as a percentage of non-performing loans			109.03				137.79				543.93				109.03				543.93
Allowance for credit losses as a percentage of non-accrual loans			109.03				137.79				543.93				109.03				543.93
Non-accrual loans as a percentage of total loans			0.88				0.77				0.18				0.88				0.18
Net (charge-offs) recoveries as a percentage of average loans (annualized)			(0.65	)			(0.11	)			0.00				(0.96	)			(0.05	)
Total non-accruing assets as a percentage of total assets			0.71				0.63				0.15				0.71				0.15
Total non-performing assets as a percentage of total assets			0.71				0.63				0.15				0.71				0.15
Capital Ratios:
Total shareholders' equity as a percentage of total assets			13.36	%			13.35	%			7.30	%			13.36	%			7.30	%
Tangible shareholders' equity as a percentage of tangible assets (non-GAAP)			12.99				12.98				6.88				12.99				6.88
Total capital as a percentage of risk-weighted assets (4)			19.66				19.89				12.24				19.66				12.24
Tier 1 capital as a percentage of risk-weighted assets (4)			17.35				17.42				9.83				17.35				9.83
Common equity tier 1 capital as a percentage of risk-weighted assets (4)			17.35				17.42				9.83				17.35				9.83
Tier 1 capital as a percentage of average assets (4)			13.84				13.11				8.72				13.84				8.72
(1) Represents net interest income as a percentage of average interest-earning assets.
(2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Represents noninterest expenses divided by the sum of net interest income and noninterest income.
(4) Presented as projected for December 31, 2025 and actual for the remaining dates.

Avidia Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
		As of												Dec. 31, 2025 Change From
(Dollars in thousands)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024				Sept. 30, 2025							Dec. 31, 2024
Assets
Cash and due from banks		$	15,903			$	15,484			$	15,660			$	419			2.7	%		$	243			1.6	%
Short-term investments			129,551				96,384				46,784				33,167			34.4				82,767			176.9
Total cash and cash equivalents			145,454				111,868				62,444				33,586			30.0				83,010			132.9
Securities available for sale, at fair value			269,139				269,308				265,933				(169	)		(0.1	)			3,206			1.2
Securities held to maturity, at amortized cost			13,000				15,747				16,747				(2,747	)		(17.4	)			(3,747	)		(22.4	)
Total securities			282,139				285,055				282,680				(2,916	)		(1.0	)			(541	)		(0.2	)
Federal Home Loan Bank stock, at cost			11,801				11,731				14,729				70			0.6				(2,928	)		(19.9	)
Loans held for sale			400				1,745				850				(1,345	)		(77.1	)			(450	)		(52.9	)
Total loans			2,298,466				2,274,747				2,198,200				23,719			1.0				100,266			4.6
Less: Allowance for credit losses			(22,018	)			(24,284	)			(21,741	)			2,266			(9.3	)			(277	)		1.3
Net loans			2,276,448				2,250,463				2,176,459				25,985			1.2				99,989			4.6
Premises and equipment, net			29,183				29,270				28,498				(87	)		(0.3	)			685			2.4
Bank-owned life insurance			36,660				36,375				35,526				285			0.8				1,134			3.2
Accrued interest receivable			8,537				8,141				8,897				396			4.9				(360	)		(4.0	)
Net deferred tax asset			10,372				10,832				12,795				(460	)		(4.2	)			(2,423	)		(18.9	)
Goodwill			11,936				11,936				11,936				-			-				-			-
Mortgage servicing rights			3,033				3,149				3,488				(116	)		(3.7	)			(455	)		(13.0	)
Other assets			21,127				26,445				18,237				(5,318	)		(20.1	)			2,890			15.8
Total assets		$	2,837,090			$	2,787,010			$	2,656,539			$	50,080			1.8	%		$	180,551			6.8	%
Liabilities
Deposits		$	2,128,283			$	2,079,578			$	2,066,832			$	48,705			2.3	%		$	61,451			3.0	%
Federal Home Loan Bank advances			260,000				260,000				325,000				-			-				(65,000	)		(20.0	)
Subordinated debt			27,815				27,778				27,679				37			0.1				136			0.5
Accrued expenses and other liabilities			41,998				47,617				43,201				(5,619	)		(11.8	)			(1,203	)		(2.8	)
Total liabilities		$	2,458,096			$	2,414,973			$	2,462,712			$	43,123			1.8	%		$	(4,616	)		(0.2	)%
Shareholders' equity:
Common Stock		$	201			$	201			$	-			$	-			-	%		$	201			-	%
Additional paid-in capital			194,899				195,029				-				(130	)		(0.1	)			194,899			-
Unallocated ESOP common stock			(15,258	)			(15,459	)			-				201			(1.3	)			(15,258	)		-
Retained earnings			211,981				206,648				215,270				5,333			2.6				(3,289	)		(1.5	)
Accumulated other comprehensive loss			(12,829	)			(14,382	)			(21,443	)			1,553			(10.8	)			8,614			(40.2	)
Total shareholders' equity		$	378,994			$	372,037			$	193,827			$	6,957			1.9	%		$	185,167			95.5	%
Total liabilities and shareholders' equity		$	2,837,090			$	2,787,010			$	2,656,539			$	50,080			1.8	%		$	180,551			6.8	%

Avidia Bancorp, Inc.
Consolidated Loan and Deposit Analysis (Unaudited)
Loan Analysis
		At or for the Quarters Ended												Dec. 31, 2025 Change From
(Dollars in thousands)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024				Sept. 30, 2025							Dec. 31, 2024
Real estate loans
Home equity and second mortgages		$	78,350			$	76,027			$	66,326			$	2,323			3.1	%		$	12,024			18.1	%
One to four family residential			518,225				521,606				511,495				(3,381	)		(0.6	)			6,730			1.3
Commercial real estate			534,855				526,345				484,106				8,510			1.6				50,749			10.5
Commercial real estate multi-family			104,695				98,647				83,905				6,048			6.1				20,790			24.8
Construction & land			57,005				51,311				49,028				5,694			11.1				7,977			16.3
Total real estate loans			1,293,130				1,273,936				1,194,860				19,194			1.5				98,270			8.2
Commercial loans
Commercial & industrial			491,765				495,263				499,920				(3,498	)		(0.7	)			(8,155	)		(1.6	)
Condominium associations			506,683				498,164				494,875				8,519			1.7				11,808			2.4
PPP loans			11				40				264				(29	)		(72.5	)			(253	)		(95.8	)
Total commercial loans			998,459				993,467				995,059				4,992			0.5				3,400			0.3
Consumer loans
Consumer			3,877				4,274				5,060				(397	)		(9.3	)			(1,183	)		(23.4	)
Total consumer loans			3,877				4,274				5,060				(397	)		(9.3	)			(1,183	)		(23.4	)
Total loans			2,295,466				2,271,677				2,194,979				23,789			1.0				100,487			4.6
Allowance for credit losses			(22,018	)			(24,284	)			(21,741	)			2,266			(9.3	)			(277	)		1.3
Net deferred loan costs			3,000				3,070				3,221				(70	)		(2.3	)			(221	)		(6.9	)
Loans, net		$	2,276,448			$	2,250,463			$	2,176,459			$	25,985			1.2	%		$	99,989			4.6	%
Deposit Analysis
		At or for the Quarters Ended												Dec. 31, 2025 Change From
(Dollars in thousands)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024				Sept. 30, 2025							Dec. 31, 2024
Demand		$	359,819			$	342,867			$	355,087			$	16,952			4.9	%		$	4,732			1.3	%
NOW			770,350				708,096				683,548				62,254			8.8				86,802			12.7
Money market			250,062				278,095				250,878				(28,033	)		(10.1	)			(816	)		(0.3	)
Savings			425,400				417,010				386,759				8,390			2.0				38,641			10.0
Certificates of deposits			322,652				333,510				390,560				(10,858	)		(3.3	)			(67,908	)		(17.4	)
Total deposits		$	2,128,283			$	2,079,578			$	2,066,832			$	48,705			2.3	%		$	61,451			3.0	%

Avidia Bancorp, Inc.
Consolidated Statements of Operations QTD (Unaudited)
														Three Months Ended Dec. 31, 2025 Change
		Three Months Ended												From Three Months Ended
(Dollars in thousands, except per share data)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024				Sept. 30, 2025							Dec. 31, 2024
Interest and dividend income:
Loans, including fees		$	30,716			$	29,727			$	28,347			$	989			3.3	%		$	2,369			8.4	%
Securities			2,530				2,567				2,624				(37	)		(1.4	)			(94	)		(3.6	)
Other			512				1,588				495				(1,076	)		(67.8	)			17			3.4
Total interest and dividend income			33,758				33,882				31,466				(124	)		(0.4	)			2,292			7.3
Interest expense:
Deposits			6,948				7,268				8,266				(320	)		(4.4	)			(1,318	)		(15.9	)
Federal Home Loan Bank advances			2,849				2,827				3,803				22			0.8				(954	)		(25.1	)
Subordinated debt			352				355				315				(3	)		(0.8	)			37			11.7
Total interest expense			10,149				10,450				12,384				(301	)		(2.9	)			(2,235	)		(18.0	)
Net interest income:			23,609				23,432				19,082				177			0.8				4,527			23.7
Provision expense for credit losses - loans			1,440				1,480				138				(40	)		(2.7	)			1,302			943.5
Provision expense (reversal) for credit losses - off-balance sheet credit exposures			(223	)			60				(824	)			(283	)		(471.7	)			601			(72.9	)
Net interest income, after provision expense for credit losses			22,392				21,892				19,768				500			2.3				2,624			13.3
Non-interest income:
Customer service fees			918				912				922				6			0.7				(4	)		(0.4	)
Net (loss) on sale of securities available for sale			(218	)			-				(1,876	)			(218	)		100.0				1,658			(88.4	)
Net recognized gain on equity securities			-				-				64				-			-				(64	)		(100.0	)
Payment processing income			1,720				1,857				1,900				(137	)		(7.4	)			(180	)		(9.5	)
Income on bank-owned life insurance			285				279				257				6			2.2				28			10.9
Mortgage banking income			103				121				589				(18	)		(14.9	)			(486	)		(82.5	)
Investment commissions			380				358				357				22			6.1				23			6.4
Other			528				999				946				(471	)		(47.1	)			(418	)		(44.2	)
Total non-interest income			3,716				4,526				3,159				(810	)		(17.9	)			557			17.6
Non-interest expense:
Salaries and employee benefits			9,476				9,773				9,221				(297	)		(3.0	)			255			2.8
Occupancy and equipment			1,658				1,933				1,941				(275	)		(14.2	)			(283	)		(14.6	)
Data processing			3,251				2,251				2,834				1,000			44.4				417			14.7
Professional fees			818				790				468				28			3.5				350			74.8
Payment processing			363				526				1,165				(163	)		(31.0	)			(802	)		(68.8	)
Deposit insurance			217				651				447				(434	)		(66.7	)			(230	)		(51.5	)
Advertising			408				423				310				(15	)		(3.5	)			98			31.6
Telecommunications			91				81				93				10			12.3				(2	)		(2.2	)
Problem loan and foreclosed real estate, net			245				179				60				66			36.9				185			308.3
Other general and administrative			1,834				11,762				1,600				(9,928	)		(84.4	)			234			14.6
Total non-interest expense			18,361				28,369				18,139				(10,008	)		(35.3	)			222			1.2
Income (loss) before income tax expense			7,747				(1,951	)			4,788				9,698			(497.1	)			2,959			61.8
Income tax expense (benefit)			2,414				(1,044	)			1,279				3,458			(331.2	)			1,135			88.7
Net income (loss)		$	5,333			$	(907	)		$	3,509			$	6,240			(688.0	)%		$	1,824			52.0	%
Share data:
Weighted average common shares outstanding, basic			18,537				18,520				N/A				17			0.1	%			N/A			N/A
Weighted average common shares outstanding diluted			18,537				18,520				N/A				17			0.1				N/A			N/A
Earnings (loss) per share, basic		$	0.29			$	(0.05	)			N/A			$	0.34			(687.5	)			N/A			N/A
Earnings (loss) per share, diluted		$	0.29			$	(0.05	)			N/A			$	0.34			(687.5	)			N/A			N/A

Avidia Bancorp, Inc.
Consolidated Statements of Operations YTD (Unaudited)
		Years Ended								Year Ended Dec. 31, 2025 Change
(Dollars in thousands, except per share data)		Dec. 31, 2025				Dec. 31, 2024				From Year Ended Dec. 31, 2024
Interest and dividend income:
Loans, including fees		$	117,542			$	111,536			$	6,006			5.4	%
Securities			10,304				10,249				55			0.5
Other			2,736				1,948				788			40.5
Total interest and dividend income			130,582				123,733				6,849			5.5
Interest expense:
Deposits			29,552				32,870				(3,318	)		(10.1	)
Federal Home Loan Bank advances			13,116				16,343				(3,227	)		(19.7	)
Subordinated debt			1,373				1,260				113			9.0
Total interest expense			44,041				50,473				(6,432	)		(12.7	)
Net interest income:			86,541				73,260				13,281			18.1
Provision expense for credit losses - loans			21,748				2,103				19,645			934.1
Provision (reversal) for credit losses - off-balance sheet credit exposures			(305	)			(324	)			19			(5.9	)
Net interest income, after provision expense for credit losses			65,098				71,481				(6,383	)		(8.9	)
Non-interest income:
Customer service fees			3,570				3,637				(67	)		(1.8	)
Net (loss) on sale of securities available for sale			(837	)			(4,234	)			3,397			(80.2	)
Net recognized gain on equity securities			-				2,597				(2,597	)		(100.0	)
Payment processing income			7,849				7,489				360			4.8
Income on bank-owned life insurance			1,132				927				205			22.1
Mortgage banking income			402				1,568				(1,166	)		(74.4	)
Investment commissions			1,400				1,393				7			-
Other			3,508				3,642				(134	)		(3.7	)
Total non-interest income			17,024				17,019				5			0.0
Non-interest expense:
Salaries and employee benefits			39,724				34,721				5,003			14.4
Occupancy and equipment			6,342				8,319				(1,977	)		(23.8	)
Data processing			13,183				10,123				3,060			30.2
Professional fees			3,356				2,288				1,068			46.7
Payment processing			2,863				4,230				(1,367	)		(32.3	)
Deposit insurance			2,281				2,481				(200	)		(8.1	)
Advertising			1,427				1,432				(5	)		(0.3	)
Telecommunications			360				383				(23	)		(6.0	)
Problem loan and foreclosed real estate, net			731				349				382			109.5
Other general and administrative			17,538				8,771				8,767			100.0
Total non-interest expense			87,805				73,097				14,708			20.1
(Loss) income before income tax expense			(5,683	)			15,403				(21,086	)		(136.9	)
Income tax (benefit) expense			(2,394	)			3,919				(6,313	)		(161.1	)
Net (loss) income		$	(3,289	)		$	11,484			$	(14,773	)		(128.6	)%
Share data:
Weighted average common shares outstanding, basic			18,531				N/A				N/A			N/A
Weighted average common shares outstanding diluted			18,531				N/A				N/A			N/A
(Loss) per share, basic		$	(0.18	)			N/A				N/A			N/A
(Loss) per share, diluted		$	(0.18	)			N/A				N/A			N/A

Avidia Bancorp, Inc.
Average Balances and Average Yields And Costs (Unaudited)
	For the Quarters Ended
	Dec. 31, 2025							Sept. 30, 2025							Dec. 31, 2024
(Dollars in thousands)	Average Outstanding Balance			Interest		Average Yield/Rate		Average Outstanding Balance			Interest		Average Yield/Rate		Average Outstanding Balance			Interest		Average Yield/Rate
Interest-earning assets:
Short-term investments	$	72,847		$	512	2.79	%	$	150,428		$	1,588	4.19	%	$	54,300		$	495	3.63	%
Securities		295,120			2,530	3.40			292,031			2,567	3.49			286,897			2,624	3.64
Loans		2,280,267			30,716	5.34			2,264,095			29,727	5.21			2,192,961			28,347	5.14
Total interest-earning assets		2,648,234			33,758	5.06			2,706,554			33,882	4.97			2,534,158			31,466	4.94
Noninterest-earning assets		107,874							116,574							106,087
Total assets	$	2,756,108						$	2,823,128						$	2,640,245
Interest-bearing liabilities:
NOW accounts	$	684,815		$	804	0.47	%	$	822,525		$	833	0.40	%	$	583,135		$	774	0.53	%
Money market accounts		277,852			898	1.28			274,203			918	1.33			269,584			891	1.32
Regular and other savings accounts		419,232			2,278	2.16			411,941			2,407	2.32			367,740			2,176	2.35
Certificates of deposit		328,333			2,968	3.59			334,638			3,110	3.69			399,508			4,425	4.41
Total interest-bearing deposits		1,710,231			6,948	1.61			1,843,307			7,268	1.56			1,619,967			8,266	2.03
FHLB advances and other borrowings (1)		259,702			2,849	4.35			258,782			2,827	4.33			356,313			3,803	4.25
Subordinated debt		27,791			352	5.03			27,753			355	5.07			27,654			315	4.53
Total interest-bearing liabilities		1,997,724			10,149	2.02			2,129,842			10,450	1.95			2,003,934			12,384	2.46
Noninterest-bearing demand deposits		349,454							341,083							422,435
Other noninterest-bearing liabilities		32,301							34,777							39,885
Total liabilities		2,379,478							2,505,702							2,466,254
Total shareholders' equity		376,630							317,426							173,991
Total liabilities and capital	$	2,756,108						$	2,823,128						$	2,640,245
Net interest income				$	23,609						$	23,432						$	19,082
Net interest rate spread (2)						3.04	%						3.02	%						2.48	%
Net interest-earning assets (3)	$	650,510						$	576,712						$	530,224
Net interest margin (4)						3.54	%						3.43	%						3.00	%
Cost of deposits						1.35	%						1.33	%						1.62	%
Average interest-earning assets to interest-bearing liabilities						132.56	%						127.08	%						126.46	%
(1) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet.
(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.

Avidia Bancorp, Inc.
Asset Quality Data (Unaudited)
		At or for the Quarters Ended
(Dollars in thousands)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024
Non-Performing Assets
Non-accrual loans:
Residential		$	720			$	387			$	1,350
Construction			6,478				8,930				-
Commercial real estate			6,126				-				-
Commercial			6,870				8,307				2,647
Total non-accrual loans		$	20,194			$	17,624			$	3,997
Other real estate owned			-				-				-
Total non-performing assets		$	20,194			$	17,624			$	3,997
Total non-accrual loans to total loans			0.88	%			0.77	%			0.18	%
Total non-performing assets to total loans			0.88				0.77				0.18
Allowance for Credit Losses
Allowance for credit losses, beginning of period		$	24,284			$	23,425			$	21,585
Charged-off loans			(3,790	)			(844	)			(59	)
Recoveries on charged-off loans			84				223				77
Net loan (charge-offs) recoveries			(3,706	)			(621	)			18
Provision expense for credit losses			1,440				1,480				138
Allowance for credit losses, end of period		$	22,018			$	24,284			$	21,741
Allowance for credit losses to total loans			0.96	%			1.07	%			0.99	%
Allowance for credit losses to non-accrual loans			109.03				137.79				543.93
Allowance for credit losses to non-performing loans			109.03				137.79				543.93
Net loans (charge-offs) recoveries
Residential		$	1			$	2			$	1
Construction			(2,454	)			-				-
Commercial real estate			-				135				25
Commercial			(1,260	)			(766	)			(15	)
Consumer			7				8				7
Total net loan (charge-offs) recoveries		$	(3,706	)		$	(621	)		$	18
Net loan (charge-offs) recoveries to average loans (annualized)			(0.65	)%			(0.11	)%			-	%

Avidia Bancorp, Inc.
Non-GAAP Reconciliation (Unaudited)
		As of
(Dollars in thousands, except per share data)		Dec. 31, 2025				Sept. 30, 2025				Dec. 31, 2024
Tangible shareholders' equity:
Total shareholders' equity (GAAP)		$	378,994			$	372,037			$	193,827
Less: Goodwill			11,936				11,936				11,936
Tangible shareholders' equity (non-GAAP)		$	367,058			$	360,101			$	181,891
Tangible assets:
Total assets (GAAP)		$	2,837,090			$	2,787,010			$	2,656,539
Less: Goodwill			11,936				11,936				11,936
Tangible assets (non-GAAP)		$	2,825,154			$	2,775,074			$	2,644,603
Shareholders' equity to assets (GAAP)			13.36	%			13.35	%			7.30	%
Tangible shareholders' equity to tangible assets (non-GAAP)			12.99	%			12.98	%			6.88	%
Common shares outstanding, including unallocated ESOP shares			20,076				20,076				N/A
Book value per common share (GAAP)		$	18.88			$	18.53				N/A
Tangible book value per common share (non-GAAP)		$	18.28			$	17.94				N/A

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260129573692/en/

Robert D. Cozzone

President and Chief Executive Officer

Avidia Bancorp, Inc.

(800) 508-2265

Source: Avidia Bancorp, Inc.