Avidia Bancorp, Inc. Reports Second Quarter 2026 Financial Results, Increases Quarterly Cash Dividend

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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.

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.

non-accruing loans financial

Loans for which a lender has stopped recognizing or recording interest income because the borrower is not making contractual payments or the loan is otherwise doubtful. Like a landlord not counting rent that hasn’t been paid, these loans remain on the books but no longer boost reported earnings; they matter to investors because rising levels signal worsening credit quality, potential future losses, and pressure on a lender’s reported income and capital.

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07/23/2026 - 04:30 PM

HUDSON, Mass.--(BUSINESS WIRE)-- Avidia Bancorp, Inc. (the “Company”) (NYSE: “AVBC”), the holding company of Avidia Bank, today reported second quarter 2026 net income of $7.2 million, or $0.39 per share, compared to first quarter 2026 net income of $6.0 million, or $0.32 per share.

The Company also announced a 20% increase in its quarterly cash dividend to $0.06 per share from $0.05 per share, payable on or about August 27, 2026, to stockholders of record as of the close of business on August 18, 2026.

CEO Robert Cozzone stated, “Earnings growth of 20% quarter-over-quarter reflected increases in most categories of fee income. Our process improvement strategies contributed to better efficiency, and we achieved a 1.04% return on assets. We joined the Russell 2000 stock index on June 26, which deepens the market for our stock.”

SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS (comparisons are to prior quarter)

Net interest margin increased by 3 basis points to 3.64%.
Return on assets increased by 18 basis points to 1.04%.
Return on equity increased by 107 basis points to 7.43%.
Efficiency ratio improved to 65.3% from 67.2%.
Book value per share and tangible book value per share (non-GAAP) increased to $19.40 and $18.81, respectively. See the non-GAAP reconciliation at the end of this document for further information.

BALANCE SHEET
Total assets were $2.78 billion at June 30, 2026, decreasing $29 million, or 1%, from March 31, 2026.

Short-term investments fell by $22 million to $51 million as excess cash was invested into longer term securities and used to pay down wholesale borrowings.
Total investment securities grew by $19 million from March 31, to $328 million.
Total loans decreased by $24 million, or 1%, to $2.26 billion, due primarily to a reduction in outstanding commercial loans.
- Loan exposure related to non-medical office space at June 30, 2026 was $93.4 million or 4.1% of gross loans. When excluding owner-occupied, total non-medical office exposure was $75.1 million.
Deposits grew by $7 million, or 0.3%, to $2.15 billion, due primarily to higher money market account balances.
- Lower cost transaction accounts (demand and NOW) were 52% of total deposits.
Federal Home Loan Bank advances decreased $45 million to $160 million.
Total stockholders’ equity increased $6 million, or 2%, to $390 million, primarily due to retained earnings. Stockholders' equity to total assets was 14.0% at quarter-end.
- Tangible stockholders' equity to tangible assets (non-GAAP) was 13.6%.

REVENUE
Total net revenue increased to $29.9 million in the second quarter of 2026, an increase of $1.6 million, or 6%, compared to the prior quarter.

Second quarter 2026 net interest income was unchanged from the prior quarter. The net interest margin improved by 3 basis points to 3.64%.
- The yield on earning assets remained steady at 5.05%. Loan income was negatively impacted by $195 thousand from loan accrual reversals.
- The cost of interest-bearing liabilities decreased 4 basis points to 1.89% as a result of the reduction in higher cost borrowings.
Non-interest income increased $1.6 million to $5.9 million from the prior quarter.

Customer service fees increased $419 thousand to $1.3 million, primarily from increases in HSA fees during the quarter.
Payment processing income increased $683 thousand to $2.6 million. This included approximately $230 thousand in one-time fees from a contract termination as well as the benefit of higher business volumes.
Other income increased $377 thousand from the first quarter as a result of a $110 thousand increase in run rate BOLI income as well as a $144 thousand increase in the valuation on the market value of our RABBI Trust investments.

NON-INTEREST EXPENSE

Total non-interest expense increased $509 thousand, or 3%, to $19.5 million in the second quarter of 2026.
- Salaries and benefits decreased by $237 thousand due to seasonal factors.
- Occupancy and equipment costs were lower in the second quarter by $388 thousand due to lower seasonal costs, primarily snow removal.
- Professional fees increased $408 thousand from the previous quarter due to loan workout costs and consulting costs associated with the Company’s efficiency initiative.
- Marketing and promotions increased $218 thousand as a result of timing on specific promotions and investments in business development.
- Other general and administrative expenses increased by $355 thousand over the previous quarter, with the largest contributing factor being a periodic review fee associated with the payments business.

INCOME TAXES
Income tax expense increased $112 thousand to $2.3 million in the second quarter of 2026 compared to the prior quarter.

The effective income tax rate decreased to 24% from 27% for these periods, primarily due to the BOLI investment that occurred at the end of the first quarter.

ASSET QUALITY
The period-end allowance for credit losses was $23.9 million in the second quarter of 2026 compared to $22.8 million at the prior quarter-end. The ratio of the allowance to total loans increased to 1.06% from 1.00% for these dates.

Provision expense for credit losses decreased $197 thousand to $892 thousand.

The Company recorded a benefit to the allowance of $420 thousand for net recoveries in the second quarter, compared to net charge-offs of $116 thousand recorded in the prior quarter.
Non-accruing loans were $16.9 million, or 0.75% of total loans, at period-end, compared to $13.6 million, or 0.60% of total loans, at the prior quarter-end, primarily due to an increase in non-accruing commercial & industrial loans.

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 financial measures 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 operating results for any particular quarter or year. The Company’s non-GAAP operating earnings information 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 document 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 Annual Report or Form 10-K, and updated by our Quarterly Reports on Form 10-Q, and other filings with 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
(Dollars in thousands, except per share data)	June 30, 2026		March 31, 2026		June 30, 2025
Earnings Data:
Net interest income	$ 23,964		$ 23,982		$ 20,618
Total non-interest income	5,902		4,286		5,246
Total net revenue	29,866		28,268		25,864
Total non-interest expense	19,501		18,992		19,763
Provision for credit losses	892		1,089		1,071
Income before income tax expense	9,473		8,187		5,030
Net income	7,170		5,996		3,872

Per-Share Data:
Earnings per share, basic	$ 0.39		$ 0.32		N/A
Earnings per share, diluted	0.39		0.32		N/A
Book value per share	19.40		19.10		N/A
Tangible book value per share (non-GAAP)⁽¹⁾	18.81		18.51		N/A

Performance Ratios:
Return on average assets (annualized)	1.04	%	0.86	%	0.57	%
Return on average equity (annualized)	7.43		6.36		8.20
Return on average tangible common equity (non-GAAP)⁽¹⁾	7.76		6.57		8.88
Net interest margin⁽²⁾	3.64		3.61		3.19
Interest rate spread ⁽³⁾	3.16		3.12		2.76
Yield on loans	5.32		5.37		5.20
Cost of deposits	1.32		1.31		1.36
Noninterest income as a percentage of average assets	0.86		0.62		0.77
Noninterest expense as a percentage of average assets	2.83		2.74		2.91
Efficiency ratio⁽⁴⁾	65.29		67.19		76.41
Total loans as a percentage of total deposits	104.97		106.45		92.15
Average interest-earning assets as a percentage of average interest-bearing liabilities	134.37		133.43		124.77

Balance Sheet, (end of period):
Total assets	$ 2,780,104		$ 2,807,417		$ 2,957,908
Total earning assets	2,647,488		2,677,277		2,827,019
Total loans	2,260,543		2,284,555		2,248,021
Total deposits	2,153,608		2,146,160		2,443,106
Total stockholders' equity	389,536		383,521		191,426

Asset Quality:
Allowance for credit losses	$ 23,926		$ 22,761		$ 23,425
Allowance for credit losses as a percentage of total loans	1.06	%	1.00	%	1.04	%
Allowance for credit losses as a percentage of nonperforming loans	141.46		167.02		207.37
Allowance for credit losses as a percentage of nonaccrual loans	141.46		167.02		207.37
Non-accrual loans as a percentage of total loans	0.75		0.60		0.50
Net loan recoveries (charge-offs) as a percentage of average loans (annualized)	0.07		(0.02)		0.01
Total nonaccruing assets as a percentage of total assets	0.61		0.49		0.38
Total nonperforming assets as a percentage of total assets	0.61		0.49		0.38

Capital Ratios:
Total stockholders' equity as a percentage of total assets	14.01	%	13.66	%	6.47	%
Tangible stockholders' equity as a percentage of tangible assets (non-GAAP)⁽¹⁾	13.64		13.29		6.09
Total capital as a percentage of risk-weighted assets ⁽⁵⁾	20.11		19.75		11.57
Common equity tier 1 capital as a percentage of risk-weighted assets ⁽⁵⁾	17.72		17.42		9.14
Tier 1 capital as a percentage of average assets ⁽⁵⁾	14.19		13.74		7.24

(1) Reconciliation of non-GAAP financial measures appears on page 12.
(2) Represents net interest income as a percentage of average interest-earning assets.
(3) 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.
(4) Represents noninterest expenses divided by the sum of net interest income and noninterest income.
(5) Presented as projected for June 30, 2026 and actual for the remaining dates.

Avidia Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)

	As of									June 30, 2026 Change From
(Dollars in thousands)	June 30, 2026			March 31, 2026			June 30, 2025			March 31, 2026					June 30, 2025
Assets

Cash and due from banks	$	19,171		$	19,231		$	24,667		$	(60	)	(0.3	)%	$	(5,496	)	(22.3	)%
Short-term investments		51,303			73,793			283,919			(22,490	)	(30.5	)		(232,616	)	(81.9	)
Total cash and cash equivalents		70,474			93,024			308,586			(22,550	)	(24.2	)		(238,112	)	(77.2	)

Securities available for sale, at fair value		315,091			295,924			266,249			19,167		6.5			48,842		18.3
Securities held to maturity, at amortized cost		12,500			13,000			16,747			(500	)	(3.8	)		(4,247	)	(25.4	)
Total securities		327,591			308,924			282,996			18,667		6.0			44,595		15.8

Federal Home Loan Bank stock, at cost		8,051			9,817			12,083			(1,766	)	(18.0	)		(4,032	)	(33.4	)

Loans held for sale		-			188			-			(188	)	(100.0	)		-		-

Total loans		2,260,543			2,284,555			2,248,021			(24,012	)	(1.1	)		12,522		0.6
Less: Allowance for credit losses		(23,926	)		(22,761	)		(23,425	)		(1,165	)	5.1			(501	)	2.1
Net loans		2,236,617			2,261,794			2,224,596			(25,177	)	(1.1	)		12,021		0.5

Premises and equipment, net		29,153			29,029			29,098			124		0.4			55		0.2
Bank-owned life insurance		47,309			46,929			36,093			380		0.8			11,216		31.1
Accrued interest receivable		8,700			8,683			8,922			17		0.2			(222	)	(2.5	)
Net deferred tax asset		12,842			10,584			11,323			2,258		21.3			1,519		13.4
Goodwill		11,936			11,936			11,936			-		-			-		-
Mortgage servicing rights		3,168			3,086			3,253			82		2.7			(85	)	(2.6	)
Other assets		24,263			23,423			29,022			840		3.6			(4,759	)	(16.4	)
Total assets	$	2,780,104		$	2,807,417		$	2,957,908		$	(27,313	)	(1.0	)%	$	(177,804	)	(6.0	)%

Liabilities
Deposits	$	2,153,608		$	2,146,160		$	2,443,106		$	7,448		0.3	%	$	(289,498	)	(11.8	)%
Federal Home Loan Bank advances		160,000			205,000			260,000			(45,000	)	(22.0	)		(100,000	)	(38.5	)
Subordinated debt		27,877			27,852			27,738			25		0.1			139		0.5
Accrued expenses and other liabilities		49,083			44,884			35,638			4,199		9.4			13,445		37.7
Total liabilities	$	2,390,568		$	2,423,896		$	2,766,482		$	(33,328	)	(1.4	)%	$	(375,914	)	(13.6	)%

Stockholders' equity:
Common Stock	$	201		$	201		$	-		$	-		0.0	%	$	201		-	%
Additional paid-in capital		195,228			195,057			-			171		0.1			195,228		-
Unallocated ESOP common stock		(14,857	)		(15,057	)		-			200		(1.3	)		(14,857	)	-
Retained earnings		223,138			216,973			207,555			6,165		2.8			15,583		7.5
Accumulated other comprehensive loss		(14,174	)		(13,653	)		(16,129	)		(521	)	3.8			1,955		(12.1	)
Total stockholders' equity	$	389,536		$	383,521		$	191,426		$	6,015		1.6	%	$	198,110		103.5	%

Total liabilities and stockholders' equity	$	2,780,104		$	2,807,417		$	2,957,908		$	(27,313	)	(1.0	)%	$	(177,804	)	(6.0	)%

Avidia Bancorp, Inc.
Consolidated Loan and Deposit Analysis (Unaudited)

Loan Analysis

	As of										June 30, 2026 Change From
(Dollars in thousands)	June 30, 2026			March 31, 2026			June 30, 2025				March 31, 2026					June 30, 2025
Real estate loans
One to four family residential	$	517,975		$	513,146		$	514,108			$	4,829		0.9	%	$	3,867		0.8	%
Home equity and second mortgages		82,886			83,371			74,439				(485	)	(0.6	)		8,447		11.3
Commercial real estate		540,209			537,752			512,509				2,457		0.5			27,700		5.4
Commercial real estate multifamily		103,477			104,253			91,845				(776	)	(0.7	)		11,632		12.7
Construction & land		45,928			47,467			48,900				(1,539	)	(3.2	)		(2,972	)	(6.1	)
Total real estate loans		1,290,475			1,285,989			1,241,801				4,486		0.3			48,674		3.9
Commercial loans
Condominium associations		494,331			497,503			496,161				(3,172	)	(0.6	)		(1,830	)	(0.4	)
Commercial & industrial		469,491			494,514			502,434				(25,023	)	(5.1	)		(32,943	)	(6.6	)
PPP loans		—			—			68				—		—			(68	)	(100.0	)
Total commercial loans		963,822			992,017			998,663				(28,195	)	(2.8	)		(34,841	)	(3.5	)
Consumer loans
Consumer		3,082			3,456			4,543				(374	)	(10.8	)		(1,461	)	(32.2	)
Total consumer loans		3,082			3,456			4,543				(374	)	(10.8	)		(1,461	)	(32.2	)
Total loans		2,257,379			2,281,462			2,245,007				(24,083	)	(1.1	)		12,372		0.6
Allowance for credit losses		(23,926	)		(22,761	)		(23,425	)			(1,165	)	5.1			(501	)	2.1
Net deferred loan costs		3,164			3,093			3,014				71		2.3			150		5.0
Loans, net	$	2,236,617		$	2,261,794		$	2,224,596		0	$	(25,177	)	(1.1	)	$	12,021		0.5	%


Deposit Analysis

	As of										June 30, 2026 Change From
(Dollars in thousands)	June 30, 2026			March 31, 2026			June 30, 2025				March 31, 2026					June 30, 2025
Noninterest-bearing demand	$	369,282		$	388,527		$	340,904			$	(19,245	)	(5.0	)%	$	28,378		8.3	%
NOW		753,470			733,674			1,082,505				19,796		2.7			(329,035	)	(30.4	)
Money market		279,529			262,773			269,275				16,757		6.4			10,254		3.8
Savings		432,310			435,332			411,990				(3,022	)	(0.7	)		20,320		4.9
Certificates of deposits		319,017			325,855			338,432				(6,838	)	(2.1	)		(19,415	)	(5.7	)
Total deposits	$	2,153,608		$	2,146,160		$	2,443,106			$	7,448		0.3	%	$	(289,498	)	(11.8	)%

Avidia Bancorp, Inc.
Consolidated Statements of Operations QTD (Unaudited)

								Three Months Ended June 30, 2026 Change
	Three Months Ended							From Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2026		March 31, 2026		June 30, 2025			March 31, 2026					June 30, 2025
Interest and dividend income
Loans, including fees	$	29,961	$	30,313	$	28,883		$	(352	)	(1.2	)%	$	1,078		3.7	%
Securities		2,877		2,544		2,555			333		13.1			322		12.6
Other		400		742		421			(342	)	(46.1	)		(21	)	(5.0	)
Total interest and dividend income		33,238		33,599		31,859			(361	)	(1.1	)		1,379		4.3

Interest expense
Deposits		6,992		6,884		7,242			108		1.6			(250	)	(3.5	)
Federal Home Loan Bank advances		1,930		2,381		3,647			(451	)	(18.9	)		(1,717	)	(47.1	)
Subordinated debt		352		352		352			-		0.0			-		0.0
Total interest expense		9,274		9,617		11,241			(343	)	(3.6	)		(1,967	)	(17.5	)

Net interest income		23,964		23,982		20,618			(18	)	(0.1	)		3,346		16.2
Provision expense for credit losses - loans		745		859		1,523			(114	)	(13.3	)		(778	)	(51.1	)
Provision expense (reversal) for credit losses - off-balance sheet credit exposures		147		230		(452	)		(83	)	(36.1	)		599		132.5
Total provision expense for credit losses		892		1,089		1,071			(197	)	(18.1	)		(179	)	(16.7	)
Net interest income, after provision expense for credit losses		23,072		22,893		19,547			179		0.8			3,525		18.0

Non-interest income:
Customer service fees		1,338		919		884			419		45.6			454		51.4
Net loss on sale of securities available for sale		-		-		(78	)		-		100.0			78		100.0
Payment processing income		2,592		1,909		2,079			683		35.8			513		24.7
Income on bank-owned life insurance		379		269		289			110		40.9			90		31.1
Mortgage banking income		287		263		162			24		9.1			125		77.2
Investment commissions		359		356		312			3		0.8			47		15.1
Other		947		570		1,598			377		66.1			(651	)	(40.7	)
Total non-interest income		5,902		4,286		5,246			1,616		37.7			656		12.5

Non-interest expense:
Salaries and employee benefits		9,963		10,200		8,909			(237	)	(2.3	)		1,054		11.8
Occupancy and equipment		1,440		1,828		2,042			(388	)	(21.2	)		(602	)	(29.5	)
Data processing		3,042		2,890		2,994			152		5.3			48		1.6
Professional fees		1,516		1,108		1,088			408		36.8			428		39.3
Payment processing		452		367		932			85		23.2			(480	)	(51.5	)
Deposit insurance		302		343		780			(41	)	(12.0	)		(478	)	(61.3	)
Marketing and promotions		424		206		310			218		105.8			114		36.8
Telecommunications		75		99		96			(24	)	(24.2	)		(21	)	(21.9	)
Problem loan and foreclosed real estate, net		179		198		194			(19	)	(9.6	)		(15	)	(7.7	)
Other general and administrative		2,108		1,753		2,418			355		20.3			(310	)	(12.8	)
Total non-interest expense		19,501		18,992		19,763			509		2.7			(262	)	(1.3	)

Income before income tax expense		9,473		8,187		5,030			1,286		15.7			4,443		88.3
Income tax expense		2,303		2,191		1,158			112		5.1			1,145		98.9
Net income	$	7,170	$	5,996	$	3,872		$	1,174		19.6	%	$	3,298		85.2	%

Share data:
Weighted average common shares outstanding, basic		18,577		18,557		N/A			20		0.1	%		N/A		N/A
Weighted average common shares outstanding, diluted		18,577		18,557		N/A			20		0.1			N/A		N/A
Earnings per share, basic	$	0.39	$	0.32		N/A		$	0.07		21.9			N/A		N/A
Earnings per share, diluted	$	0.39	$	0.32		N/A		$	0.07		21.9			N/A		N/A

Avidia Bancorp, Inc.
Consolidated Statements of Operations YTD (Unaudited)

	Six Months Ended					Six Months Ended June 30, 2026 Change
(Dollars in thousands, except per share data)	June 30, 2026		June 30, 2025			From Six Months Ended June 30, 2025
Interest and dividend income:
Loans, including fees	$	60,275	$	57,067		$	3,208		5.6		%
Securities		5,421		5,206			215		4.1
Other		1,142		636			506		79.6
Total interest and dividend income		66,838		62,909			3,929		6.2

Interest expense:
Deposits		13,877		14,973			(1,096	)	(7.3	)
Federal Home Loan Bank advances		4,311		7,439			(3,128	)	(42.0	)
Subordinated debt		704		667			37		5.5
Total interest expense		18,892		23,079			(4,187	)	(18.1	)

Net interest income:		47,946		39,830			8,116		20.4
Provision expense for credit losses - loans		1,604		18,828			(17,224	)	(91.5	)
Provision expense (reversal) for credit losses - off-balance sheet credit exposures		376		(141	)		517		366.7
Total provision expense for credit losses		1,980		18,687			(16,707	)	(89	)
Net interest income, after provision expense for credit losses		45,966		21,143			24,823		117.4

Non-interest income:
Customer service fees		2,256		1,785			471		26.4
Net (loss) on sale of securities available for sale		-		(619	)		619		100.0
Net write down on premises and equipment no longer in use		-		(356	)		356		100.0
Payment processing income		4,501		4,271			230		5.4
Income on bank-owned life insurance		648		568			80		14.1
Mortgage banking income		550		178			372		209.0
Investment commissions		715		662			53		-
Other		1,518		2,485			(967	)	(38.9	)
Total non-interest income		10,188		8,974			1,214		13.5

Non-interest expense:
Salaries and employee benefits		20,163		20,475			(312	)	(1.5	)
Occupancy and equipment		3,267		4,060			(793	)	(19.5	)
Data processing		5,933		6,372			(439	)	(6.9	)
Professional fees		2,624		1,749			875		50.0
Payment processing		819		1,975			(1,156	)	(58.5	)
Deposit insurance		645		1,412			(767	)	(54.3	)
Advertising		630		575			55		9.6
Telecommunications		175		188			(13	)	(6.9	)
Problem loan and foreclosed real estate, net		377		306			71		23.2
Other general and administrative		3,862		4,484			(622	)	(13.9	)
Total non-interest expense		38,495		41,596			(3,101	)	(7.5	)

Income (loss) before income tax expense		17,659		(11,479	)		29,138		253.8
Income tax expense (benefit)		4,494		(3,764	)		8,258		219.4
Net income (loss)	$	13,165	$	(7,715	)	$	20,880		270.6		%

Share data:
Weighted average common shares outstanding, basic		18,567		N/A			N/A		N/A
Weighted average common shares outstanding, diluted		18,567		N/A			N/A		N/A
Earnings per share, basic	$	0.71		N/A			N/A		N/A
Earnings per share, diluted	$	0.71		N/A			N/A		N/A

Avidia Bancorp, Inc.
Average Balances and Average Yields And Costs (Unaudited)

	For the Quarters Ended
	June 30, 2026						March 31, 2026						June 30, 2025
(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	$	56,531	$	400	2.84	%	$	111,776	$	742	2.69	%	$	67,357	$	421	2.51	%
Securities		323,536		2,877	3.57			297,095		2,544	3.47			296,321		2,555	3.46
Loans		2,258,865		29,961	5.32			2,288,117		30,313	5.37			2,229,893		28,883	5.20
Total interest-earning assets		2,638,932		33,238	5.05			2,696,988		33,599	5.05			2,593,571		31,859	4.93
Noninterest-earning assets		125,864						115,557						122,176
Total assets	$	2,764,796					$	2,812,545					$	2,715,747

Interest-bearing liabilities:
NOW accounts	$	736,036	$	1,042	0.57	%	$	742,711	$	993	0.54	%	$	697,452	$	700	0.40	%
Money market accounts		270,030		860	1.28			260,035		776	1.21			270,969		848	1.26
Regular and other savings accounts		432,822		2,280	2.11			434,329		2,279	2.13			401,215		2,278	2.28
Certificates of deposit		320,871		2,810	3.51			324,646		2,836	3.54			347,419		3,416	3.94
Total interest-bearing deposits		1,759,759		6,992	1.59			1,761,721		6,884	1.58			1,717,055		7,242	1.69
FHLB advances and other borrowings ⁽¹⁾		176,351		1,930	4.39			231,724		2,381	4.17			333,834		3,647	4.38
Subordinated debt		27,857		352	5.07			27,828		352	5.13			27,782		352	5.08
Total interest-bearing liabilities		1,963,967		9,274	1.89			2,021,273		9,617	1.93			2,078,671		11,241	2.17
Noninterest-bearing demand deposits		372,187						369,871						415,035
Other noninterest-bearing liabilities		41,761						39,196						33,242
Total liabilities		2,377,915						2,430,340						2,526,948
Total stockholders' equity		386,881						382,205						188,799
Total liabilities and capital	$	2,764,796					$	2,812,545					$	2,715,747

Net interest income			$	23,964					$	23,982					$	20,618
Net interest rate spread ⁽²⁾					3.16	%					3.12	%					2.76	%
Net interest-earning assets ⁽³⁾	$	674,965					$	675,715					$	514,900
Total deposits		2,131,946						2,131,592
Net interest margin ⁽⁴⁾					3.64	%					3.61	%					3.19	%
Cost of deposits					1.32	%					1.31	%					1.36	%
Average interest-earning assets to interest-bearing liabilities					134.37	%					133.43	%					124.77	%


(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)	June 30, 2026				March 31, 2026				June 30, 2025
Nonperforming Assets
Nonaccrual loans:
Residential	$	320			$	977			$	255
Commercial real estate		5,952				6,041				-
Construction		-				-				8,930
Commercial		10,642				6,610				2,111
Total nonaccrual loans	$	16,914			$	13,628			$	11,296
Other real estate owned		-				-				-
Total nonperforming assets	$	16,914			$	13,628			$	11,296

Total nonaccrual loans to total loans		0.75		%		0.60		%		0.50		%
Total nonperforming assets to total loans		0.75				0.60				0.50

Allowance for Credit Losses
Allowance for credit losses, beginning of period	$	22,761			$	22,018			$	21,849
Charged-off loans		(75	)			(221	)			(18	)
Recoveries on charged-off loans		495				105				71
Net loan recoveries (charge-offs)		420				(116	)			53
Provision expense for credit losses		745				859				1,523
Allowance for credit losses, end of period	$	23,926			$	22,761			$	23,425

Allowance for credit losses to total loans		1.06		%		1.00		%		1.04		%
Allowance for credit losses to nonaccrual loans		141.46				167.02				207.37
Allowance for credit losses to nonperforming loans		141.46				167.02				207.37


Net loan recoveries (charge-offs)
Residential	$	1			$	1			$	1
Commercial real estate		-				-				25
Construction		479				75				-
Commercial		(67	)			(154	)			20
Consumer		7				(38	)			7
Total net loan recoveries (charge-offs)	$	420			$	(116	)		$	53

Net loan recoveries (charge-offs) to average loans (annualized)		0.07		%		(0.02	)	%		0.01		%

Avidia Bancorp, Inc.
Non-GAAP Reconciliation (Unaudited)

	As of
(Dollars in thousands, except per share data)	June 30, 2026			March 31, 2026			June 30, 2025
Tangible stockholders' equity:
Total stockholders' equity (GAAP)	$	389,536		$	383,521		$	191,426
Less: Goodwill		11,936			11,936			11,936
Tangible stockholders' equity (non-GAAP)	$	377,600		$	371,585		$	179,490

Tangible assets:
Total assets (GAAP)	$	2,780,104		$	2,807,417		$	2,957,908
Less: Goodwill		11,936			11,936			11,936
Tangible assets (non-GAAP)	$	2,768,168		$	2,795,481		$	2,945,972

Average tangible stockholders' equity:
Average total stockholders' equity (GAAP)	$	386,881		$	382,205		$	188,799
Less: Average goodwill		11,936			11,936			11,936
Average tangible stockholders' equity (non-GAAP)	$	374,945		$	370,269		$	176,863

Stockholders' equity to assets (GAAP)		14.01	%		13.66	%		6.47	%
Tangible stockholders' equity to tangible assets (non-GAAP)		13.64	%		13.29	%		6.09	%
Return on average equity (GAAP)		7.43	%		6.36	%		8.20	%
Return on average tangible common equity (non-GAAP)		7.76	%		6.57	%		8.88	%

Common shares outstanding, including unallocated ESOP shares		20,076			20,076			N/A

Book value per common share (GAAP)	$	19.40		$	19.10			N/A
Tangible book value per common share (non-GAAP)	$	18.81		$	18.51			N/A

View source version on businesswire.com: https://www.businesswire.com/news/home/20260723663311/en/

Robert D. Cozzone
President and Chief Executive Officer
Avidia Bancorp, Inc.
(800) 508-2265

Source: Avidia Bancorp, Inc.

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