Avidia Bancorp, Inc. Reports Third Quarter 2026 Financial Results, Declares Quarterly Cash Dividend

Higher lending margins and a lower credit-loss provision supported earnings, while nonaccruing loans increased.

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HUDSON, Mass.--(BUSINESS WIRE)-- Avidia Bancorp, Inc. (the “Company”) (NYSE: “AVBC”), the holding company of Avidia Bank, today reported third quarter 2026 net income of $8.6 million, or $0.47 per share, compared to second quarter 2026 net income of $7.2 million, or $0.39 per share.

The Company also announced today the declaration of a quarterly cash dividend of $0.06 per share on its outstanding shares of common stock, payable on or about November 30, 2026, to stockholders of record as of the close of business on November 17, 2026.

CEO Robert Cozzone stated “Quarterly earnings growth benefited from higher loan yields and a lower loan loss provision. Our focus on pricing and operational discipline is resulting in continued improvements in operating leverage and balance sheet structure. During the quarter, we announced a $30 million stock repurchase authorization and commenced repurchases, further supporting stockholder returns.”

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

• Net interest margin increased by 22 basis points to 3.86%, which included an 11 basis point benefit from a large loan prepayment penalty received.
• Return on assets increased by 20 basis points to 1.24%.
• Return on equity increased by 136 basis points to 8.79%.
• Efficiency ratio improved to 62.2% from 65.3%.
• Share repurchases of $23.8 million were completed as of September 30, equal to 6.1% of the previous quarter’s stockholders’ equity.

BALANCE SHEET

Total assets were $2.78 billion at September 30, 2026, which was comparable to June 30, 2026.

• Short-term investments decreased by $9.0 million to $42.3 million as excess cash was used to pay down wholesale borrowings and for the share repurchases.
• Total investment securities decreased by $1.7 million from June 30, to $325.9 million.
• Total loans were $2.26 billion, which was comparable to June 30.
  • Residential mortgages increased by $30.1 million due primarily to the $21.3 million purchase of in-market, adjustable-rate mortgage loans from a local correspondent bank.
  • Commercial & industrial loans decreased $31.2 million due primarily to the impact of loan prepayments, including a $23.0 million solar loan that had three years remaining to maturity.
  • Quarter-end loan exposure related to non-medical office space was $90.6 million, or 4% of gross loans. When excluding owner-occupied, total non-medical office exposure was $72.6 million.
• Deposits grew by $53.0 million, or 2.5% for the quarter, to $2.21 billion.
  • Brokered certificates of deposit in the amount of $22.9 million were purchased.
  • Money market accounts increased by $19.7 million due to solid growth from business customers.
  • Certificates of deposit increased by $12.1 million.
  • Lower cost transaction accounts (demand and NOW) were 50% of period-end total deposits.
• Federal Home Loan Bank advances decreased by $50.0 million to $110.0 million.
• Total stockholders’ equity decreased by $23.0 million, or 5.9%, to $366.6 million. Stockholders’ equity to total assets was 13.2% at quarter-end. Tangible stockholders' equity to tangible assets (non-GAAP) was 12.8%.
  • The Company recorded $23.8 million for the repurchase of 1,079,051 shares (5.4% of outstanding shares).
  • Accumulated other comprehensive loss increased by $6.8 million because higher market interest rates reduced the value of the available for sale investment portfolio.
  • Pursuant to an equity compensation plan approved by stockholders in the third quarter, five-year vesting director equity compensation grants were awarded consisting of 240,912 shares of restricted stock valued at $22.29 per share and 602,280 stock options valued at $7.78 per option.
  • On October 13, 2026, management equity grants with 5- or 6-year vesting were awarded consisting of 489,500 shares of restricted stock valued at $21.95 per share and 1,187,000 stock options with an average value of $7.65 per option. These values are not included in the consolidated financial statements as of September 30, 2026.

REVENUE

Total net revenue increased to $31.2 million in the third quarter of 2026, an increase of $1.3 million, or 4%, compared to the prior quarter.

• Third quarter 2026 net interest income increased $1.5 million due to higher interest rates across most loan categories. The net interest margin improved by 22 basis points to 3.86%, which included a large $692 thousand loan prepayment penalty received from the prepayment of the large solar loan mentioned above. The net interest margin excluding the prepayment penalty is 3.75%, up 11 basis points from the second quarter.
  • Average earning assets totaled $2.6 billion, which remained steady from the prior quarter.
  • The yield on earning assets increased 21 basis points to 5.26%. The 5.55% loan yield included the $692 thousand in prepayment penalties, which contributed 12 basis points to the loan yield.
  • The cost of interest-bearing liabilities decreased 1 basis point to 1.88%, as the benefit from lower cost borrowings was partially offset by a 3 basis point increase in the cost of deposits to 1.35%.
• Non-interest income decreased by $250 thousand, primarily because payments processing income declined from the prior quarter, when it was elevated by contract termination fees.
• Mortgage banking income increased $149 thousand, or 51.9%, primarily driven by a higher quarterly MSR valuation.

NON-INTEREST EXPENSE

• Total non-interest expense decreased $121 thousand, or 1%, to $19.4 million in the third quarter of 2026.
  • Salaries and benefits increased $235 thousand, or 2%, including $77 thousand from the expense related to the new stock grants issued.
  • Modest decreases were recorded across many of the other expense categories.

INCOME TAXES

Income tax expense increased $660 thousand to $3.0 million in the third quarter of 2026 compared to the prior quarter.

• The effective income tax rate was 25.6% for the third quarter and 25.5% year-to-date.

ASSET QUALITY

The period-end allowance for credit losses was $23.2 million in the third quarter of 2026 compared to $23.9 million at the prior quarter-end. The ratio of the allowance to total loans decreased to 1.03% from 1.06% for these dates.

• Provision expense for credit losses decreased $681 thousand to $211 thousand in the third quarter of 2026.
• The Company recorded net loan charge-offs of $755 thousand in the third quarter of 2026, measuring 0.13% of average loans on an annualized basis.
• Nonaccruing loans were $17.8 million, or 0.79% of total loans, at period-end, compared to $16.9 million, or 0.75% of total loans, at the prior quarter-end.

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. For more information, please visit https://www.AvidiaBank.com.

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 Form 10-K, and updated by our Quarterly Report on Form 10-Q, and other filings submitted to 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)		September 30, 2026				June 30, 2026				September 30, 2025
Earnings Data:
Net interest income		$	25,503			$	23,964			$	23,432
Total non-interest income			5,652				5,902				4,526
Total net revenue			31,155				29,866				27,958
Total non-interest expense			19,380				19,501				28,369
Provision for credit losses			211				892				1,540
Income (loss) before income tax expense			11,564				9,473				(1,951)
Net income (loss)			8,601				7,170				(907)
Per-Share Data:
Earnings (loss) per share, basic		$	0.47			$	0.39			$	(0.05)
Earnings (loss) per share, diluted			0.47				0.39				(0.05)
Book value per share			19.05				19.40				18.53
Tangible book value per share (non-GAAP)(1)			18.43				18.81				17.94
Performance Ratios:
Return on average assets (annualized)			1.24	%			1.04	%			-0.13	%
Return on average equity (annualized)			8.79				7.43				-1.14
Return on average tangible common equity (non-GAAP)(1)			9.06				7.76				-1.18
Net interest margin(2)			3.86				3.64				3.43
Interest rate spread (3)			3.38				3.16				2.91
Yield on loans			5.55				5.32				5.21
Cost of deposits			1.35				1.32				1.32
Cost of funds			1.88				1.89				2.06
Non-interest income as a percentage of average assets			0.81				0.86				0.64
Non-interest expense as a percentage of average assets			2.79				2.83				4.02
Efficiency ratio(4)			62.21				65.29				101.47
Total loans as a percentage of total deposits			102.45				104.97				109.39
Average interest-earning assets as a percentage of average interest-bearing liabilities			133.94				134.37				134.52
Balance Sheet, (end of period):
Total assets		$	2,775,550			$	2,780,104			$	2,787,010
Total earning assets			2,636,812				2,647,488				2,669,662
Total loans			2,260,822				2,260,543				2,274,747
Total deposits			2,206,649				2,153,608				2,079,578
Total stockholders' equity			366,573				389,536				372,037
Asset Quality:
Allowance for credit losses		$	23,190			$	23,926			$	24,284
Allowance for credit losses as a percentage of total loans			1.03	%			1.06	%			1.07	%
Allowance for credit losses as a percentage of nonperforming loans			130.64				141.46				137.79
Nonaccrual loans as a percentage of total loans			0.79				0.75				0.77
Net loan (charge-offs) recoveries as a percentage of average loans (annualized)			(0.13)				0.07				(0.11)
Total nonperforming assets as a percentage of total assets			0.64				0.61				0.63
Capital Ratios:
Total stockholders' equity as a percentage of total assets			13.21	%			14.01	%			13.35	%
Tangible stockholders' equity as a percentage of tangible assets (non-GAAP)(1)			12.83				13.64				12.95
Total capital as a percentage of risk-weighted assets (5)			19.69				20.20				19.89
Common equity tier 1 capital as a percentage of risk-weighted assets (5)			17.28				17.79				17.42
Tier 1 capital as a percentage of average assets (5)			13.73				14.19				13.11

(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 non-interest expenses divided by the sum of net interest income and non-interest income.
(5)		Presented as projected for September 30, 2026 and actual for the remaining dates.

Avidia Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
		As of												September 30, 2026 Change From
(Dollars in thousands)		September 30, 2026				June 30, 2026				September 30, 2025				June 30, 2026								September 30, 2025
Assets
Cash and due from banks		$	18,000			$	19,171			$	15,484			$	(1,171	)		(6.1	)	%		$	2,516			16.2		%
Short-term investments			42,300				51,303				96,384				(9,003	)		(17.5	)				(54,084	)		(56.1	)
Total cash and cash equivalents			60,300				70,474				111,868				(10,174	)		(14.4	)				(51,568	)		(46.1	)
Securities available for sale, at fair value			313,409				315,091				269,308				(1,682	)		(0.5	)				44,101			16.4
Securities held to maturity, at amortized cost			12,500				12,500				15,747				-			0.0					(3,247	)		(20.6	)
Total securities			325,909				327,591				285,055				(1,682	)		(0.5	)				40,854			14.3
Federal Home Loan Bank stock, at cost			7,001				8,051				11,731				(1,050	)		(13.0	)				(4,730	)		(40.3	)
Loans held for sale			780				-				1,745				780			-					(965	)		(55.3	)
Total loans			2,260,822				2,260,543				2,274,747				279			0.0					(13,925	)		(0.6	)
Less: Allowance for credit losses			(23,190	)			(23,926	)			(24,284	)			736			(3.1	)				1,094			(4.5	)
Net loans			2,237,632				2,236,617				2,250,463				1,015			0.0					(12,831	)		(0.6	)
Premises and equipment, net			28,951				29,153				29,270				(202	)		(0.7	)				(319	)		(1.1	)
Bank-owned life insurance			47,722				47,309				36,375				413			0.9					11,347			31.2
Accrued interest receivable			8,588				8,700				8,141				(112	)		(1.3	)				447			5.5
Net deferred tax asset			14,942				12,842				10,832				2,100			16.4					4,110			37.9
Goodwill			11,936				11,936				11,936				-			-					-			-
Mortgage servicing rights			3,423				3,168				3,149				255			8.0					274			8.7
Other assets			28,366				24,263				26,445				4,103			16.9					1,921			7.3
Total assets		$	2,775,550			$	2,780,104			$	2,787,010			$	(4,554	)		(0.2	)	%		$	(11,460	)		(0.4	)	%
Liabilities
Deposits		$	2,206,649			$	2,153,608			$	2,079,578			$	53,041			2.5		%		$	127,071			6.1		%
Federal Home Loan Bank advances			110,000				160,000				260,000				(50,000	)		(31.3	)				(150,000	)		(57.7	)
Subordinated debt			27,914				27,877				27,778				37			0.1					136			0.5
Accrued expenses and other liabilities			64,414				49,083				47,617				15,331			31.2					16,797			35.3
Total liabilities		$	2,408,977			$	2,390,568			$	2,414,973			$	18,409			0.8		%		$	(5,996	)		(0.2	)	%
Stockholders' equity:
Common Stock		$	192			$	201			$	201			$	(9	)		(4.5	)	%		$	(9	)		(4.5	)	%
Additional paid-in capital			171,507				195,228				195,029				(23,721	)		(12.2	)				(23,522	)		(12.1	)
Unallocated ESOP common stock			(14,656	)			(14,857	)			(15,459	)			201			(1.4	)				803			(5.2	)
Retained earnings			230,546				223,138				206,648				7,408			3.3					23,898			11.6
Accumulated other comprehensive loss			(21,016	)			(14,174	)			(14,382	)			(6,842	)		48.3					(6,634	)		46.1
Total stockholders' equity		$	366,573			$	389,536			$	372,037			$	(22,963	)		(5.9	)	%		$	(5,464	)		(1.5	)	%
Total liabilities and stockholders' equity		$	2,775,550			$	2,780,104			$	2,787,010			$	(4,554	)		(0.2	)	%		$	(11,460	)		(0.4	)	%

Avidia Bancorp, Inc.
Consolidated Loan and Deposit Analysis (Unaudited)
Loan Analysis
		As of													September 30, 2026 Change From
(Dollars in thousands)		September 30, 2026				June 30, 2026					September 30, 2025				June 30, 2026							September 30, 2025
Real estate loans
One to four family residential		$	548,079			$	517,975				$	521,606			$	30,104			5.8		%	$	26,473			5.1		%
Home equity and second mortgages			84,313				82,886					76,027				1,427			1.7				8,286			10.9
Commercial real estate			536,312				540,209					526,345				(3,897	)		(0.7	)			9,967			1.9
Commercial real estate multifamily			106,403				103,477					98,647				2,926			2.8				7,756			7.9
Construction & land			49,440				45,928					51,311				3,512			7.6				(1,871	)		(3.6	)
Total real estate loans			1,324,547				1,290,475					1,273,936				34,072			2.6				50,611			4.0
Commercial loans
Condominium associations			491,868				494,331					498,164				(2,463	)		(0.5	)			(6,296	)		(1.3	)
Commercial & industrial			438,274				469,491					495,263				(31,217	)		(6.6	)			(56,989	)		(11.5	)
PPP loans			—				—					40				—			—				(40	)		(100.0	)
Total commercial loans			930,142				963,822					993,467				(33,680	)		(3.5	)			(63,325	)		(6.4	)
Consumer loans
Consumer			2,909				3,082					4,274				(173	)		(5.6	)			(1,365	)		(31.9	)
Total consumer loans			2,909				3,082					4,274				(173	)		(5.6	)			(1,365	)		(31.9	)
Total loans			2,257,598				2,257,379					2,271,677				219			0.0				(14,079	)		(0.6	)
Allowance for credit losses			(23,190	)			(23,926	)				(24,284	)			736			(3.1	)			1,094			(4.5	)
Net deferred loan costs			3,224				3,164					3,070				60			1.9				154			5.0
Loans, net		$	2,237,632			$	2,236,617				$	2,250,463			$	1,015			0.0			$	(12,831	)		(0.6	)	%
Deposit Analysis
		As of													September 30, 2026 Change From
(Dollars in thousands)		September 30, 2026				June 30, 2026					September 30, 2025				June 30, 2026							September 30, 2025
Non-interest-bearing demand		$	368,961			$	369,282				$	342,867			$	(321	)		(0.1	)	%	$	26,094			7.6		%
NOW			743,042				753,470					708,096				(10,428	)		(1.4	)			34,946			4.9
Money market			299,215				279,529					278,095				19,686			7.0				21,120			7.6
Savings			441,451				432,310					417,010				9,142			2.1				24,441			5.9
Certificates of deposit			331,084				319,017					321,510				12,066			3.8				9,574			3.0
Brokered certificates of deposit			22,896				—					12,000				22,896			-				10,896			90.8
Total deposits		$	2,206,649			$	2,153,608				$	2,079,578			$	53,041			2.5		%	$	127,071			6.1		%

Avidia Bancorp, Inc.
Consolidated Statements of Operations QTD (Unaudited)
											Three Months Ended September 30, 2026 Change
	Three Months Ended										From Three Months Ended
(Dollars in thousands, except per share data)	September 30, 2026			June 30, 2026			September 30, 2025				June 30, 2026								September 30, 2025
Interest and dividend income
Loans, including fees	$	31,585		$	29,961		$	29,727			$	1,624			5.4		%		$	1,858			6.3		%
Securities		3,016			2,877			2,567				139			4.8					449			17.5
Other		164			400			1,588				(236	)		(59.0	)				(1,424	)		(89.7	)
Total interest and dividend income		34,765			33,238			33,882				1,527			4.6					883			2.6
Interest expense
Deposits		7,313			6,992			7,268				321			4.6					45			0.6
Federal Home Loan Bank advances		1,594			1,930			2,827				(336	)		(17.4	)				(1,233	)		(43.6	)
Subordinated debt		355			352			355				3			0.9					-			0.0
Total interest expense		9,262			9,274			10,450				(12	)		(0.1	)				(1,188	)		(11.4	)
Net interest income		25,503			23,964			23,432				1,539			6.4					2,071			8.8
Provision expense for credit losses - loans		19			745			1,480				(726	)		(97.4	)				(1,461	)		(98.7	)
Provision expense for credit losses - off-balance sheet credit exposures		192			147			60				45			30.6					132			220.0
Total provision expense for credit losses		211			892			1,540				(681	)		(76.3	)				(1,329	)		(86.3	)
Net interest income, after provision expense for credit losses		25,292			23,072			21,892				2,220			9.6					3,400			15.5
Non-interest income:
Customer service fees		1,449			1,338			912				111			8.3					537			58.9
Payments processing income		2,152			2,592			1,857				(440	)		(17.0	)				295			15.9
Income on bank-owned life insurance		411			379			279				32			8.4					132			47.3
Mortgage banking income		436			287			121				149			51.9					315			260.3
Investment commissions		423			359			358				64			17.8					65			18.2
Other		781			947			999				(166	)		(17.5	)				(218	)		(21.8	)
Total non-interest income		5,652			5,902			4,526				(250	)		(4.2	)				1,126			24.9
Non-interest expense:
Salaries and employee benefits		10,198			9,963			9,773				235			2.4					425			4.3
Occupancy and equipment		1,533			1,440			1,933				93			6.5					(400	)		(20.7	)
Data processing		3,045			3,042			2,251				3			0.1					794			35.3
Professional fees		1,373			1,516			790				(143	)		(9.4	)				583			73.8
Payments processing		567			452			526				115			25.4					41			7.8
Deposit insurance		333			302			651				31			10.3					(318	)		(48.8	)
Marketing and promotions		308			424			423				(116	)		(27.4	)				(115	)		(27.2	)
Telecommunications		73			75			81				(2	)		(2.7	)				(8	)		(9.9	)
Problem loan and foreclosed real estate, net		59			179			179				(120	)		(67.0	)				(120	)		(67.0	)
Other general and administrative		1,891			2,108			11,762				(217	)		(10.3	)				(9,871	)		(83.9	)
Total non-interest expense		19,380			19,501			28,369				(121	)		(0.6	)				(8,989	)		(31.7	)
Income (loss) before income tax expense		11,564			9,473			(1,951	)			2,091			22.1					13,515			692.7
Income tax expense (benefit)		2,963			2,303			(1,044	)			660			28.7					4,007			383.8
Net income (loss)	$	8,601		$	7,170		$	(907	)		$	1,431			20.0		%		$	9,508			1048.3		%
Share data:
Weighted average common shares outstanding, basic		18,247			18,577			18,520				(330	)		(1.8	)	%			(274	)		(1.5	)	%
Weighted average common shares outstanding, diluted		18,247			18,577			18,520				(330	)		(1.8	)				(274	)		(1.5	)
Earnings (loss) per share, basic	$	0.47		$	0.39		$	(0.05	)		$	0.08			20.5				$	0.52			1059.7
Earnings (loss) per share, diluted	$	0.47		$	0.39		$	(0.05	)		$	0.08			20.5				$	0.52			1059.7

Avidia Bancorp, Inc.
Consolidated Statements of Operations YTD (Unaudited)
		Nine Months Ended							Nine Months Ended Sep. 30, 2026 Change
(Dollars in thousands, except per share data)		Sep. 30, 2026			Sep. 30, 2025				From Nine Months Ended Sep. 30, 2025
Interest and dividend income:
Loans, including fees		$	91,860		$	86,791			$	5,069			5.8		%
Securities			8,437			7,774				663			8.5
Other			1,306			2,224				(918	)		(41.3	)
Total interest and dividend income			101,603			96,789				4,814			5.0
Interest expense:
Deposits			21,189			22,241				(1,052	)		(4.7	)
Federal Home Loan Bank advances			5,905			10,267				(4,362	)		(42.5	)
Subordinated debt			1,059			1,021				38			3.7
Total interest expense			28,153			33,529				(5,376	)		(16.0	)
Net interest income:			73,450			63,260				10,190			16.1
Provision expense for credit losses - loans			1,623			20,308				(18,685	)		(92.0	)
Provision expense (reversal) for credit losses - off-balance sheet credit exposures			569			(82	)			651			793.9
Total provision expense for credit losses			2,192			20,226				(18,034	)		(89	)
Net interest income, after provision expense for credit losses			71,258			43,034				28,224			65.6
Non-interest income:
Customer service fees			3,705			2,697				1,008			37.4
Net (loss) on sale of securities available for sale			-			(619	)			619			100.0
Payments processing income			6,653			6,129				524			8.5
Income on bank-owned life insurance			1,059			847				212			25.0
Mortgage banking income			987			299				688			230.1
Investment commissions			1,138			1,020				118			11.6
Other			2,298			3,129				(831	)		(26.6	)
Total non-interest income			15,840			13,502				2,338			17.3
Non-interest expense:
Salaries and employee benefits			30,361			30,247				114			0.4
Occupancy and equipment			4,801			5,994				(1,193	)		(19.9	)
Data processing			8,977			8,623				354			4.1
Professional fees			3,997			2,539				1,458			57.4
Payments processing			1,386			2,500				(1,114	)		(44.6	)
Deposit insurance			978			2,064				(1,086	)		(52.6	)
Advertising			938			998				(60	)		(6.0	)
Telecommunications			248			270				(22	)		(8.1	)
Problem loan and foreclosed real estate, net			436			485				(49	)		(10.1	)
Other general and administrative			5,753			16,246				(10,493	)		(64.6	)
Total non-interest expense			57,875			69,966				(12,091	)		(17.3	)
Income (loss) before income tax expense			29,223			(13,430	)			42,653			317.6
Income tax expense (benefit)			7,458			(4,808	)			12,266			255.1
Net income (loss)		$	21,765		$	(8,622	)		$	30,387			352.4		%
Share data:
Weighted average common shares outstanding, basic			18,463			18,520				(58	)		(0.3	)	%
Weighted average common shares outstanding, diluted			18,463			18,520				(58	)		(0.3	)
Earnings (loss) per share, basic		$	1.18		$	(0.47	)		$	1.64			353.2
Earnings (loss) per share, diluted		$	1.18		$	(0.47	)		$	1.64			353.2

Avidia Bancorp, Inc.
Average Balances and Average Yields And Costs (Unaudited)
	For the Quarters Ended
	September 30, 2026									June 30, 2026									September 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	$	33,751		$	164		1.93	%		$	56,531		$	400		2.84	%		$	150,428		$	1,588		4.19	%
Securities		332,915			3,016		3.59				323,536			2,877		3.57				292,031			2,567		3.49
Loans (1)		2,257,327			31,585		5.55				2,258,865			29,961		5.32				2,264,095			29,727		5.21
Total interest-earning assets		2,623,993			34,765		5.26				2,638,932			33,238		5.05				2,706,554			33,882		4.97
Non-interest-earning assets		128,317									125,864									116,574
Total assets	$	2,752,310								$	2,764,796								$	2,823,128
Interest-bearing liabilities:
NOW accounts	$	732,338		$	1,121		0.61	%		$	736,036		$	1,042		0.57	%		$	704,708		$	833		0.47	%
Money market accounts		293,575			1,016		1.37				270,030			860		1.28				274,203			918		1.33
Regular and other savings accounts		432,521			2,314		2.12				432,822			2,280		2.11				411,941			2,407		2.32
Certificates of deposit		325,804			2,859		3.48				320,871			2,810		3.51				322,638			2,958		3.64
Brokered certificates of deposits		249			3		4.78				-			-		0.00				12,000			152		5.03
Total interest-bearing deposits		1,784,487			7,313		1.63				1,759,759			6,992		1.59				1,725,490			7,268		1.67
FHLB advances and other borrowings (2)		146,646			1,594		4.31				176,351			1,930		4.39				258,782			2,827		4.33
Subordinated debt		27,890			355		5.05				27,857			352		5.07				27,753			355		5.07
Total interest-bearing liabilities		1,959,023			9,262		1.88				1,963,967			9,274		1.89				2,012,025			10,450		2.06
Non-interest-bearing demand deposits		359,349									372,187									458,900
Other non-interest-bearing liabilities		45,555									41,761									34,777
Total liabilities		2,363,927									2,377,915									2,505,702
Total stockholders' equity		388,383									386,881									317,426
Total liabilities and capital	$	2,752,310								$	2,764,796								$	2,823,128
Net interest income				$	25,503								$	23,964								$	23,432
Net interest rate spread (3)							3.38	%								3.16	%								2.91	%
Net interest-earning assets (4)	$	664,970								$	674,965								$	694,529
Total deposits		2,143,836									2,131,946									2,184,390
Net interest margin (5)							3.86	%								3.64	%								3.43	%
Cost of deposits							1.35	%								1.32	%								1.32	%
Cost of funds							1.88	%								1.89	%								2.06	%
Average interest-earning assets to interest-bearing liabilities							133.94	%								134.37	%								134.52	%

(1)		Nonaccrual loans are included in average balance only. Loan balance include loans held for sale.
(2)		Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet.
(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)		Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5)		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)	September 30, 2026				June 30, 2026				September 30, 2025
Nonperforming Assets
Nonaccrual loans:
Residential	$	701			$	320			$	387
Commercial real estate		4,935				5,952				-
Construction		-				-				8,930
Commercial		12,115				10,642				8,307
Total nonaccrual loans	$	17,751			$	16,914			$	17,624
Other real estate owned		-				-				-
Total nonperforming assets	$	17,751			$	16,914			$	17,624
Total nonaccrual loans to total loans		0.79		%		0.75		%		0.77		%
Total nonperforming assets to total loans		0.79				0.75				0.77
Allowance for Credit Losses
Allowance for credit losses, beginning of period	$	23,926			$	22,761			$	23,425
Charged-off loans		(1,213	)			(75	)			(844	)
Recoveries on charged-off loans		458				495				223
Net loan (charge-offs) recoveries		(755	)			420				(621	)
Provision expense for credit losses		19				745				1,480
Allowance for credit losses, end of period	$	23,190			$	23,926			$	24,284
Allowance for credit losses to total loans		1.03		%		1.06		%		1.07		%
Allowance for credit losses to nonaccrual loans		130.64				141.46				137.79
Allowance for credit losses to nonperforming loans		130.64				141.46				137.79
Net loan recoveries (charge-offs)
Residential	$	1			$	1			$	2
Commercial real estate		(960	)			-				135
Construction		270				479				-
Commercial		(71	)			(67	)			(766	)
Consumer		5				7				8
Total net loan (charge-offs) recoveries	$	(755	)		$	420			$	(621	)
Net loan (charge-offs) recoveries to average loans (annualized)		(0.13	)	%		0.07		%		(0.11	)	%

Avidia Bancorp, Inc.
Non-GAAP Reconciliation (Unaudited)
	As of
(Dollars in thousands, except per share data)	September 30, 2026			June 30, 2026			September 30, 2025
Tangible stockholders' equity:
Total stockholders' equity (GAAP)	$	366,573		$	389,536		$	372,037
Less: Goodwill		11,936			11,936			11,936
Tangible stockholders' equity (non-GAAP)	$	354,637		$	377,600		$	360,101
Tangible assets:
Total assets (GAAP)	$	2,775,550		$	2,780,104		$	2,787,010
Less: Goodwill		11,936			11,936			11,936
Tangible assets (non-GAAP)	$	2,763,614		$	2,768,168		$	2,775,074
Average tangible stockholders' equity:
Average total stockholders' equity (GAAP)	$	388,383		$	386,881		$	317,426
Less: Average goodwill		11,936			11,936			11,936
Average tangible stockholders' equity (non-GAAP)	$	376,447		$	374,945		$	305,490
Stockholders' equity to assets (GAAP)		13.21	%		14.01	%		13.35		%
Tangible stockholders' equity to tangible assets (non-GAAP)		12.83	%		13.64	%		12.95		%
Return on average equity (GAAP)		8.79	%		7.43	%		(1.14	)	%
Return on average tangible common equity (non-GAAP)		9.06	%		7.76	%		(1.18	)	%
Common shares outstanding, including unallocated ESOP shares		19,238			20,076			20,076
Book value per common share (GAAP)	$	19.05		$	19.40		$	18.53
Tangible book value per common share (non-GAAP)	$	18.43		$	18.81		$	17.94

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261022095052/en/

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

Source: Avidia Bancorp, Inc.

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.

adjustable-rate mortgage financial

A mortgage whose interest rate resets periodically based on a market benchmark, so the borrower’s monthly payment can go up or down over time. Think of it like a boat ride on changing water: the cost moves with market tides rather than staying fixed, and that matters to investors because shifting payments affect borrower ability to repay, the value of mortgage-backed securities, bank earnings and overall sensitivity to interest-rate swings.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

available for sale financial

Available for sale describes investments, usually bonds or stocks, that a company intends to keep but may sell before they mature; they are reported at current market value on the balance sheet while any unrealized profit or loss is kept separate from regular earnings. For investors, this matters because changes in market value affect a company’s reported net worth and can become realized gains or losses when sold, similar to how the changing resale value of a collectible affects your net wealth even before you sell it.