Avidbank Holdings, Inc. Announces Financial Results for the Fourth Quarter and Full Year of 2025

Rhea-AI Summary

Avidbank Holdings (NASDAQ:AVBH) reported Q4 2025 net income of $6.9M ($0.65 diluted) versus a Q3 2025 net loss of $37.7M and Q4 2024 net income of $6.5M. For full-year 2025 the company reported a $19.6M net loss driven by a $62.4M loss on sale of available-for-sale securities; adjusted 2025 net income was $24.9M, or $2.80 per adjusted diluted share.

Key operational moves: completed a 3,001,500-share IPO in Aug 2025 (net proceeds $61.3M), repositioned the securities portfolio, loan balances and deposits grew materially, NPLs rose after downgrades to three loans, and NII and NIM expanded in Q4.

Positive

• Adjusted net income of $24.9M for 2025 excluding securities loss
• Period-end loans increased $283.5M (15%) year-over-year
• Period-end deposits increased $294.7M (16%) year-over-year
• Net interest margin expanded to 3.80% for 2025 and 4.13% in Q4
• Completed IPO raising net proceeds of $61.3M

Negative

• Full-year net loss of $19.6M due to a $62.4M loss on sale of securities
• Efficiency ratio spiked to 170.65% for 2025 (driven by securities loss)
• Non-performing assets rose to 0.95% of assets at 12/31/2025
• Non-performing loans to total loans increased to 1.14% at 12/31/2025

News Market Reaction – AVBH

+0.84%

5 alerts

+0.84% News Effect

+$3M Valuation Impact

$322M Market Cap

1.1x Rel. Volume

On the day this news was published, AVBH gained 0.84%, reflecting a mild positive market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $322M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $6.9 million Q4 2025 EPS (diluted): $0.65 per share FY 2025 net result: ($19.6 million) net loss +5 more

8 metrics

Q4 2025 net income $6.9 million Fourth quarter 2025

Q4 2025 EPS (diluted) $0.65 per share Fourth quarter 2025

FY 2025 net result ($19.6 million) net loss Year ended Dec 31, 2025

FY 2025 adjusted net income $24.9 million Excludes $62.4M securities loss, FY 2025

Securities sale loss $62.4 million Loss on sale of available-for-sale securities in 2025

IPO net proceeds $61.3 million IPO completed August 2025

Q4 2025 net interest margin 4.13% Fourth quarter 2025

Total assets $2.57 billion As of Dec 31, 2025

Market Reality Check

Price: $29.80 Vol: Volume 15,025 is below th...

low vol

$29.80 Last Close

Volume Volume 15,025 is below the 20-day average of 59,525, indicating limited pre-earnings positioning. low

Technical Shares at $27.36 are trading above the 200-day MA of $23.98 and within 2.25% of the 52-week high of $27.99.

Peers on Argus

AVBH slipped 0.73% with peers like FRST (-1.56%), JMSB (-2.44%), TSBK (-2.67%), ...

AVBH slipped 0.73% with peers like FRST (-1.56%), JMSB (-2.44%), TSBK (-2.67%), and WSBF (-2.69%) also down, pointing to broader regional bank softness.

Common Catalyst No common news theme identified; peers show price weakness without same-day headlines.

Previous Earnings Reports

2 past events · Latest: Oct 23 (Negative)

Same Type Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Oct 23	Quarterly earnings	Negative	+1.9%	Q3 2025 net loss of $37.7M from $62.4M securities sale loss.
Aug 25	Quarterly earnings	Positive	+0.3%	Strong Q2 2025 net income growth and NIM expansion, ahead of IPO.

Pattern Detected

Recent earnings releases have generally seen modest positive share reactions, even when GAAP results were pressured by securities-related losses.

Recent Company History

Over the past year, Avidbank’s key milestones included strong Q2 2025 earnings with rising net income and expanding net interest margin, followed by a Q3 2025 GAAP loss driven by a $62.4M securities sale. The August IPO added capital and supported balance sheet repositioning. Today’s fourth-quarter and full-year 2025 release extends that narrative, highlighting stronger core profitability, higher loans and deposits, and improved net interest margin after the portfolio restructuring.

Historical Comparison

+1.1% avg move · In the past 12 months, AVBH released 2 earnings updates with an average move of 1.11%, showing measu...

earnings

+1.1%

Average Historical Move earnings

In the past 12 months, AVBH released 2 earnings updates with an average move of 1.11%, showing measured reactions even when GAAP results were volatile due to securities portfolio actions.

Earnings have progressed from strong core profitability in Q2 2025, through a Q3 2025 GAAP loss tied to a $62.4M securities sale, to the current report showing restored quarterly profitability, expanded net interest margin, and balance sheet repositioning reflected in lower unrealized losses.

Market Pulse Summary

This announcement highlights a return to quarterly profitability with $6.9M Q4 net income, stronger ...

Analysis

This announcement highlights a return to quarterly profitability with $6.9M Q4 net income, stronger net interest margin at 4.13%, and solid loan and deposit growth, following a year marked by a $62.4M securities loss. Book value per share rose to $25.66 and assets reached $2.57B. Investors may focus on rising non-performing assets, the sustainability of margin gains, and ongoing credit provisioning trends in future periods.

Key Terms

available-for-sale securities, net interest margin, non-performing assets, provision for credit losses, +4 more

8 terms

available-for-sale securities financial

"Results for the year ended December 31, 2025, included a $62.4 million loss on the sale of available-for-sale securities."

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

net interest margin financial

"Net interest margin expanded to 4.13% in the fourth quarter of 2025, compared to 3.90%..."

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.

non-performing assets financial

"Non-performing assets to total assets totaled 0.95% as of December 31, 2025..."

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

provision for credit losses financial

"The provision for credit losses was $2.8 million in the fourth quarter of 2025..."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

non-interest income financial

"Non-interest income was $1.8 million in the fourth quarter of 2025 compared to ($60.9) million..."

Non-interest income is the money a bank or financial company earns from activities other than charging interest on loans, such as service fees, account charges, trading gains, and income from managing client investments. For investors, it matters because it diversifies a firm’s revenue stream—like a store that sells both products and offers repair services—making profits less tied to lending rates and helping stability when interest-driven income falls.

efficiency ratio financial

"The efficiency ratio was 51.72% compared to (35.28%) in the third quarter of 2025..."

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.

non-accrual status financial

"the fourth quarter of 2025 included $726 thousand in interest income reversals related to loans placed on non-accrual status."

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

initial public offering ("IPO") regulatory

"In August of 2025, the Company completed an initial public offering ("IPO") of its common stock..."

A company’s first sale of stock to the public through a stock exchange, marking its move from private ownership to public ownership. For investors it creates a new opportunity to buy a stake early, sets a market price for the business, and often brings higher attention and volatility—think of a local bakery that used to be family-run finally selling shares so the whole neighborhood can own a piece; that change affects value, control and risk.

AI-generated analysis. Not financial advice.

SAN JOSE, CA / ACCESS Newswire / January 29, 2026 / Avidbank Holdings, Inc. (NASDAQ:AVBH) (the "Company" or "Avidbank Holdings"), the holding company for Avidbank, a California state-chartered bank (the "Bank"), announced net income for the fourth quarter of 2025 of $6.9 million, or $0.65 per diluted share, compared to a net loss of $37.7 million, or ($4.12) per diluted share, for the third quarter of 2025 and net income of $6.5 million, or $0.84 per diluted share, for the fourth quarter of 2024. For the year ended December 31, 2025, the Company reported a net loss of $19.6 million, or ($2.25) per diluted share, compared to net income of $21.0 million, or $2.76 per diluted share, for the year ended December 31, 2024. Results for the year ended December 31, 2025, included a $62.4 million loss on the sale of available-for-sale securities. Excluding that item, adjusted net income⁽¹⁾ totaled $24.9 million, or $2.80 per adjusted diluted share⁽¹⁾ for the year ended December 31, 2025, an increase of $3.9 million, or 18%, compared to the same period in the prior year.

Fourth Quarter 2025 Highlights

• Period-end loans, net of deferred loan fees increased $189.9 million, or 38% annualized, from September 30, 2025.

• Average deposits increased $91.6 million, or 18% annualized, from the third quarter of 2025 and $241.6 million, or 13%, from the fourth quarter of 2024. Period-end deposits increased $136.9 million, or 27% annualized, from September 30, 2025.

• Net interest margin expanded to 4.13% in the fourth quarter of 2025, compared to 3.90% in the third quarter of 2025 and 3.49% in the fourth quarter of 2024.

• Return on average assets was 1.12% compared to (6.35%) in the third quarter of 2025 and 1.14% in the fourth quarter of 2024. The return on average assets-adjusted⁽¹⁾ was 1.12% for the fourth quarter of 2025, compared to 1.13% in the third quarter of 2025.

• The efficiency ratio was 51.72% compared to (35.28%) in the third quarter of 2025 and 52.53% in the fourth quarter of 2024. The efficiency ratio-adjusted⁽¹⁾ was 51.72% compared to 55.72% in the third quarter of 2025.

• Book value per share was $25.66 at December 31, 2025, an increase of $0.66 from September 30, 2025, and an increase of $2.09 from December 31, 2024.

• Non-performing assets to total assets totaled 0.95% as of December 31, 2025 compared to 0.12% at September 30, 2025 and 0.06% at December 31, 2024. The increase in the fourth quarter of 2025 was primarily due to the downgrade of two well-collateralized construction loans and one commercial loan.

Full Year 2025 Highlights

• In August of 2025, the Company completed an initial public offering ("IPO") of its common stock, issuing an aggregate total of 3,001,500 shares of common stock at the public offering price of $23.00 per share. After deductions for underwriting fees, commissions and offering expenses, the Company's net proceeds from the IPO totaled $61.3 million.

• We repositioned the securities portfolio and took the following actions. Sold $274.7 million in available-for-sale securities for a loss of $62.4 million; purchased $205.4 million in available-for-sale securities with an average purchase yield of 4.57%; and paid off existing short-term borrowings using proceeds from the IPO and securities sales.

• Period-end loans, net of deferred loan fees increased $283.5 million, or 15%, for the year ended December 31, 2025, compared to December 31, 2024.

• Average deposits increased $241.6 million, or 13%, for the year ended December 31, 2025, compared to December 31, 2024. Period-end deposits increased $294.7 million, or 16%, from December 31, 2024.

• Net interest margin expanded to 3.80% for the year ended December 31, 2025, compared to 3.44% for the same period in the prior year.

• Return on average assets was (0.83%) for the year ended December 31, 2025, compared to 0.93% for the previous year. Excluding the loss on the sale of available-for-sale securities, the return on average assets-adjusted⁽¹⁾, was 1.06% for the year ended December 31, 2025, compared to 0.93% for the same period in 2024.

• The efficiency ratio was 170.65% at December 31, 2025, compared to 58.27% at December 31, 2024. Excluding the loss from the sale of available-for-sale securities, the adjusted efficiency ratio⁽¹⁾ improved to 56.56% for the year ended December 31, 2025.

Mark Mordell, Chairman and Chief Executive Officer stated, "We closed 2025 with a strong quarter as well as significant momentum and a clear trajectory for 2026. Our fourth quarter performance was driven by all five of our verticals in both loans and deposits. We achieved this through the dedication and resilience of our bankers and employees."

Mordell added, "While non-performing loans increased this quarter partially due to the downgrade of two construction credits, these loans are well‑collateralized and supported by strong underlying collateral."

Mordell concluded, "Asset quality remains solid overall, and we remain confident in the strength of our loan portfolio and our disciplined underwriting practices."

Results of Operations

Net interest income totaled $25.0 million for the fourth quarter of 2025, an increase of $2.4 million, or 41% annualized, from the third quarter of 2025, and an increase of $5.8 million, or 30%, from the fourth quarter of 2024. Net interest margin was 4.13% in the fourth quarter of 2025, an increase of 23 basis points compared to the third quarter of 2025, and a 64-basis-point increase compared to the fourth quarter of 2024. The increase in net interest margin compared to the prior quarter was primarily driven by higher average loan balances, lower average short-term borrowings, an increase in average non-interest-bearing demand deposits, and lower cost of deposits as well as improvement in interest income due to the sale of low-yielding securities as part of the repositioning of our available-for-sale securities portfolio during the third quarter of 2025. In addition, the fourth quarter of 2025 included $726 thousand in interest income reversals related to loans placed on non-accrual status. For the year ended December 31, 2025, net interest income increased $12.1 million, or 16%, compared to the year ended December 31, 2024, while net interest margin increased 36 basis points from 3.44% to 3.80% during the same period.

The yield on securities increased in the fourth quarter of 2025 to 4.61% compared to 2.55% in the third quarter of 2025 and 2.29% in the fourth quarter of 2024 due to the sale of lower-yielding available-for-sale securities during the third quarter of 2025. The yield on loans in the fourth quarter of 2025 was 6.68%, a decrease of 30 basis points from the third quarter of 2025 and a decrease of 40 basis points from the fourth quarter of 2024. The decrease in loan yields was driven by reductions in the prime rate and lower loan fees. For the year ended December 31, 2025, the yield on securities increased 55 basis points while loan yields decreased 38 basis points compared to the same period in the prior year.

The yield on interest-earning assets decreased 10 basis points during the fourth quarter of 2025 compared to the third quarter of 2025 while overall funding costs declined by 34 basis points during the same period. For the year ended December 31, 2025, the yield on interest-earning assets decreased 18 basis points, and the overall cost of funding was down 63 basis points compared to the same period in 2024.

The cost of interest-bearing deposits in the fourth quarter of 2025 was 3.18%, a decrease of 32 basis points compared to the third quarter of 2025 and a decrease of 61 basis points compared to the fourth quarter of 2024. The cost of deposits in the fourth quarter of 2025 was 2.39%, a decrease of 28 basis points from the third quarter of 2025 and a decrease of 55 basis points from the fourth quarter of 2024. For the year ended December 31, 2025, the cost of interest-bearing deposits was 3.43%, a decrease of 56 basis points compared to the year ended December 31, 2024. The cost of deposits for the year ended December 31, 2025 was 2.64%, down 37 basis points from the same period in the prior year.

The provision for credit losses was $2.8 million in the fourth quarter of 2025, compared to $1.4 million in the third quarter of 2025 and $779 thousand in the fourth quarter of 2024. The provision was higher in the fourth quarter of 2025 compared to the third quarter primarily due to higher loan balances and the specific reserve on one commercial non-accrual loan. For the year ended December 31, 2025, the provision for credit losses totaled $5.1 million compared to $4.1 million for the year ended December 31, 2024.

Non-interest income was $1.8 million in the fourth quarter of 2025 compared to ($60.9) million in the third quarter of 2025 and $1.8 million in the fourth quarter of 2024. The fourth quarter of 2025 included $375 thousand in warrant and success fee income, partially offset by a decrease in other investments income. For the year ended December 31, 2025, non-interest income totaled ($56.4) million compared to $6.0 million for the prior year. Included in the 2025 year-to-date total was a $62.4 million loss on the sale of securities resulting from the repositioning of the available-for-sale securities portfolio.

Non-interest expense totaled $13.9 million for the fourth quarter of 2025, compared to $13.5 million in the third quarter of 2025 and $11.1 million in the fourth quarter of 2024. The increase from the third quarter was primarily due to higher legal and professional fees, partially offset by a decrease in salaries and benefits expense driven by higher capitalized loan origination costs during the fourth quarter of 2025. For the year ended December 31, 2025, non-interest expense was $52.8 million, an increase of $5.4 million, or 12%, compared to the same period in the prior year primarily driven by an increase in salaries and benefits. There were 151 full-time equivalent employees on December 31, 2025, unchanged from September 30, 2025, and compared to 148 on December 31, 2024.

The effective tax rate for the fourth quarter of 2025 was 31.1% compared to 28.9% in the third quarter of 2025 and 29.9% in the fourth quarter of 2024. The increase in the current quarter was primarily due to state tax impacts from changes in California law requiring financial institutions to apportion business income using a single sales factor for tax years beginning on or after January 1, 2025, which included further remeasurement of deferred tax assets. For the year ended December 31, 2025, the effective tax rate was 27.5% compared to 29.5% for the year ended December 31, 2024.

Financial Condition

Total assets were $2.57 billion as of December 31, 2025, compared to $2.36 billion as of September 30, 2025, and $2.30 billion at December 31, 2024. Cash and cash equivalents were $154.6 million on December 31, 2025, compared to $177.3 million on September 30, 2025, and $82.7 million on December 31, 2024.

Loans, net of deferred loan fees, on December 31, 2025, totaled $2.15 billion, an increase of $189.9 million, or 38% annualized, from September 30, 2025, and an increase of $283.5 million, or 15%, from December 31, 2024. The increase in loans during the fourth quarter of 2025 included an increase of $178.0 million in commercial and industrial loans, $15.3 million in multi-family loans and $11.5 million in non-owner-occupied loans. Partially offsetting the increase in loans were decreases of $13.5 million in construction and land loans and $11.0 million in owner-occupied loans.

The allowance for credit losses on loans was $22.3 million on December 31, 2025, representing an increase of $1.2 million from September 30, 2025, and an increase of $3.6 million compared to December 31, 2024. The allowance for credit losses - loans and unfunded commitments to total loans was 1.15% on December 31, 2025, compared to 1.19% on September 30, 2025 and 1.12% as of December 31, 2024. Non-performing loans to total loans was 1.14% at December 31, 3025, up 100 basis points compared to September 30, 2025 and up 107 basis points from December 31, 2024. The increase in the fourth quarter of 2025 was primarily due to the downgrade of two well-collateralized construction loans.

The available-for-sale securities portfolio totaled $218.2 million as of December 31, 2025, compared to $173.6 million at September 30, 2025, and $296.6 million as of December 31, 2024. The increase during the fourth quarter of 2025 was due to purchases of securities resulting from repositioning our available-for-sale securities portfolio. The net unrealized loss for the available-for-sale portfolio totaled $328 thousand as of December 31, 2025, compared to $689 thousand at September 30, 2025 and $72.6 million as of December 31, 2024.

Deposits were $2.19 billion on December 31, 2025, an increase of $136.9 million, or 27% annualized, from September 30, 2025, and an increase of $294.7 million, or 16% from December 31, 2024. The change in deposits during the fourth quarter of 2025 included an $85.2 million increase in non-interest-bearing demand deposits and an increase of $67.0 million in money market and savings, partially offset by a $15.2 million decrease in time deposits. Quarterly average deposits for the fourth quarter of 2025 were $2.14 billion, an increase of $91.6 million from the third quarter of 2025, and an increase of $241.6 million from the fourth quarter of 2024. Average non-interest-bearing demand deposits increased $43.8 million compared to the third quarter of 2025 and $103.8 million compared to the fourth quarter of 2024.

Short-term borrowings outstanding at December 31, 2025 were $60.0 million, compared to $0 at September 30, 2025, and $185.0 million at December 31, 2024.

Book value per share was $25.66 on December 31, 2025, an increase of $0.66 compared to September 30, 2025, and an increase of $2.09 compared to December 31, 2024. The overall increase was due to new shares issued as part of the IPO during the third quarter of 2025. Total shareholders' equity was $281.0 million on December 31, 2025, an increase of $7.9 million compared to September 30, 2025, and an increase of $94.6 million from December 31, 2024.

Other Information

The Company will host a conference call on January 30, 2026, at 11:00 a.m. (Eastern Time) / 8:00 a.m. (Pacific Time) to discuss the earnings results for the fourth quarter and full year of 2025. Investors may call in by dialing (800) 715-9871 within the US and +1(646) 307-1963 for all other locations (Conference ID: 1715743). Participants may also pre-register for the conference by navigating to https://events.q4inc.com/attendee/815368039.

Alternatively, individuals may listen to a live webcast of the presentation by visiting the link on the Company's website at www.avidbank.com under About Us, Investor Relations. An audio replay of the live webcast is expected to be available by the evening of January 30, 2026, through the Investor Relations section of the Company's website. The recording will be available for one year from the day of posting. Information which may be discussed on the conference call is provided in an earnings supplement presentation available on the Company's website and furnished with the SEC and available at www.sec.gov.

⁽¹⁾ A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.

About Avidbank Holdings

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

Non-GAAP Financial Measures

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

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, which involve risks and uncertainties. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements include statements concerning our possible or assumed financial condition, results of operations, including descriptions of our business plans, strategy and expectations, capital and financing needs and liquidity and regulatory and competitive outlook. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other variations or comparable terminology and expressions. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. We caution that the forward-looking information and statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: uncertain market conditions and economic trends nationally, regionally and particularly in the Bay Area (which we define as the counties of Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma) and California; economic conditions affecting the venture capital and private equity industries, including any decline in overall portfolio company investment, merger and acquisition activity and other liquidity events affecting venture and private equity fund and their portfolio companies; risks related to the concentration of our business in California, and specifically within the Bay Area, including risks associated with any downturn in the real estate sector; incurrence of losses in connection with the repositioning of our available-for-sale securities portfolio utilizing the proceeds from our recently completed public offering; the effects of a prolonged government shutdown; the occurrence of significant natural disasters, including fires and earthquakes, and acts of war or terrorism; our ability to conduct our business could be disrupted by natural or man-made disasters, including the effects of pandemic viruses; changes in market interest rates that affect the pricing of our loans and deposits and our net interest income; risks related to our strategic focus on lending to small to medium-sized businesses; the sufficiency of the assumptions and estimates we make in establishing reserves for potential loan losses and the value of loan collateral and securities; our ability to attract and retain executive officers and key employees and their client and community relationships; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality and losses in our loan portfolio; the costs of effects and results of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to; the results of regulatory examinations or reviews and the effect of and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to; our level of non-performing assets and the costs associated with resolving problem loans; our ability to maintain adequate liquidity and to raise necessary capital to fund our growth strategy and operations or to meet increased minimum regulatory capital levels; the effects of increased competition from a wide variety of local, regional, national and other providers of financial services; technological changes and developments; negative trends in our market capitalization and adverse changes in the price of our common stock; risks associated with unauthorized access, cyber-crime and other threats to data security; the effects of any strategic transactions we may make or evaluate, and the costs associated with any potential or actual strategic transaction; our ability to comply with various governmental and regulatory requirements applicable to financial institutions, including supervisory actions by federal and state banking agencies; the impact of recent and future legislative and regulatory changes, including changes in banking, accounting, securities and tax laws and regulations and their application by our regulators, and economic stimulus programs; governmental monetary and fiscal policies, including the policies of the Federal Reserve and policies related to tariffs; our ability to implement, maintain and improve effective internal controls; our use of the net proceeds from our recent public offering; and our success at managing any of the risks involved any of the foregoing items. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's filings with the SEC, including the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q under the heading "Risk Factors" therein and available at the SEC's Internet site www.sec.gov. The foregoing factors should not be considered exhaustive. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information. Therefore, we caution you not to place undue reliance on our forward-looking information and statements. We disclaim any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Contact: Patrick Oakes
Executive Vice President and Chief Financial Officer
408-200-7390
IR@avidbank.com

AVIDBANK HOLDINGS, INC.
Selected Financial Data (Unaudited)
(In thousands, except share and per share amounts)

																						For the Twelve
		For the Three Months Ended																				Months Ended
		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Dec. 31,				Dec. 31,
		2025				2025				2025				2025				2024				2025				2024
INCOME HIGHLIGHTS
Net income / (loss)		$	6,949			$	(37,735	)		$	5,797			$	5,436			$	6,457			$	(19,553	)		$	21,015
Net income-adjusted (2)		$	6,949			$	6,707			$	5,797			$	5,436			$	6,457			$	24,889			$	21,015
PER SHARE DATA
Basic earnings / (loss) per share		$	0.66			$	(4.12	)		$	0.77			$	0.73			$	0.87			$	(2.25	)		$	2.83
Diluted earnings / (loss) per share			0.65				(4.12	)			0.75				0.71				0.84				(2.25	)			2.76
Diluted earnings per share-adjusted (2)			0.65				0.72				0.75				0.71				0.84				2.80				2.76
Book value per share			25.66				25.00				25.80				24.85				23.57				25.66				23.57
PERFORMANCE MEASURES
Return on average assets (1)			1.12	%			(6.35	)%			1.00	%			0.96	%			1.14	%			(0.83	)%			0.93	%
Return on average assets-adjusted (1)(2)			1.12	%			1.13	%			1.00	%			0.96	%			1.14	%			1.06	%			0.93	%
Return on average equity (1)			9.90	%			(63.19	)%			11.59	%			11.49	%			13.65	%			(8.61	)%			11.98	%
Return on average equity-adjusted (1) (2)			9.90	%			11.23	%			11.59	%			11.49	%			13.65	%			10.95	%			11.98	%
Net interest margin (1)			4.13	%			3.90	%			3.60	%			3.52	%			3.49	%			3.80	%			3.44	%
Efficiency ratio			51.72	%			(35.28	)%			57.77	%			62.57	%			52.53	%			170.65	%			58.27	%
Efficiency ratio-adjusted (2)			51.72	%			55.72	%			57.77	%			62.57	%			52.53	%			56.56	%			58.27	%
Average loans to average deposits			94.78	%			94.14	%			95.69	%			98.55	%			95.86	%			95.71	%			100.10	%
CAPITAL
Tier 1 leverage ratio (3)			11.23	%			11.14	%			10.53	%			10.39	%			10.35	%			11.23	%			10.35	%
Common equity tier 1 capital ratio (3)			11.05	%			11.68	%			11.02	%			11.10	%			10.59	%			11.05	%			10.59	%
Tier 1 risk-based capital ratio (3)			11.05	%			11.68	%			11.02	%			11.10	%			10.59	%			11.05	%			10.59	%
Total risk-based capital ratio (3)			12.57	%			13.48	%			12.76	%			12.86	%			12.30	%			12.57	%			12.30	%
Common equity ratio			10.93	%			11.56	%			8.55	%			8.48	%			8.09	%			10.93	%			8.09	%
SHARES OUTSTANDING
Number of common shares outstanding			10,947,967				10,925,102				7,923,946				7,912,184				7,906,761				10,947,967				7,906,761
Average common shares outstanding - basic			10,579,753				9,168,707				7,534,264				7,488,051				7,455,650				8,702,468				7,426,096
Average common shares outstanding - diluted			10,754,488				9,168,707				7,686,385				7,682,884				7,661,711				8,702,468				7,604,442
ASSET QUALITY
Total allowance for credit losses-loans and unfunded commitments			1.15	%			1.19	%			1.15	%			1.14	%			1.12	%			1.15	%			1.12	%
Non-performing assets to total assets			0.95	%			0.12	%			0.06	%			0.06	%			0.06	%			0.95	%			0.06	%
Non-performing loans to total loans			1.14	%			0.14	%			0.07	%			0.07	%			0.07	%			1.14	%			0.07	%
Net charge-offs to average loans (1)			0.30	%			(0.01	)%			0.00	%			(0.01	)%			0.93	%			0.07	%			0.24	%
AVERAGE BALANCES
Loans, net of deferred loan fees		$	2,024,325			$	1,924,537			$	1,887,263			$	1,858,716			$	1,815,933			$	1,924,166			$	1,797,626
Debt securities			196,462				181,154				293,640				296,422				308,502				241,480				311,662
Total assets			2,459,110				2,357,158				2,322,264				2,289,935				2,250,086				2,357,580				2,252,814
Deposits			2,135,876				2,044,228				1,972,215				1,885,993				1,894,321				2,010,357				1,795,904
Shareholders' equity			278,382				236,903				200,608				191,891				188,170				227,210				175,348

(1) Annualized for the periods presented.

(2) A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.

(3) Ratios presented are for Avidbank Holdings, Inc. and are estimated for the three and twelve months ended December 31, 2025.

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

		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,
		2025				2025				2025				2025				2024
Assets
Cash and due from financial institutions		$	7,942			$	12,006			$	2,800			$	18,866			$	8,662
Due from Federal Reserve Bank and interest-
bearing deposits in other financial institutions			146,627				165,313				127,123				106,135				74,039
Total cash and cash equivalents			154,569				177,319				129,923				125,001				82,701
Debt securities available-for-sale			218,160				173,588				292,808				296,617				296,556
Loans, net of deferred loan fees			2,148,439				1,958,585				1,911,718				1,841,187				1,864,942
Allowance for credit losses on loans			(22,261	)			(21,025	)			(19,624	)			(18,722	)			(18,679	)
Loans, net of allowance for credit losses on loans			2,126,178				1,937,560				1,892,094				1,822,465				1,846,263
Bank-owned life insurance			13,045				12,953				12,857				12,764				12,674
Premises and equipment, net			1,526				1,739				1,927				2,118				2,331
Accrued interest receivable and other assets			56,165				59,295				62,520				60,957				63,963
Total assets		$	2,569,643			$	2,362,454			$	2,392,129			$	2,319,922			$	2,304,488
Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing demand		$	556,972			$	471,770			$	443,540			$	419,823			$	414,327
Interest-bearing checking			1,069,272				1,069,344				1,087,621				965,467				993,219
Money market and savings			532,149				465,198				399,849				399,010				338,578
Time			27,680				42,846				46,770				58,273				74,468
Non-reciprocal brokered (1)			-				-				25,001				86,915				70,763
Total deposits			2,186,073				2,049,158				2,002,781				1,929,488				1,891,355
Subordinated debt, net			22,000				22,000				22,000				22,000				22,000
Short-term borrowings			60,000				-				145,000				155,000				185,000
Accrued interest payable and other liabilities			20,591				18,183				17,929				16,815				19,771
Total liabilities			2,288,664				2,089,341				2,187,710				2,123,303				2,118,126
Shareholders' Equity
Common stock			169,990				169,342				107,608				106,839				106,997
Retained earnings			111,150				104,201				141,936				136,139				130,703
Accumulated other comprehensive loss			(161	)			(430	)			(45,125	)			(46,359	)			(51,338	)
Total shareholders' equity			280,979				273,113				204,419				196,619				186,362
Total liabilities and shareholders' equity		$	2,569,643			$	2,362,454			$	2,392,129			$	2,319,922			$	2,304,488

(1) FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank's total liabilities. As of December 31, 2025, September 30 2025, June 30, 2025, March 31, 2025 and December 31, 2024, an additional $475.4 million, $522.5 million, $495.4 million, $447.8 million and $470.0 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

AVIDBANK HOLDINGS, INC.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)

																						For the Twelve
		For the Three Months Ended																				Months Ended
		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Dec. 31,				Dec. 31,
		2025				2025				2025				2025				2024				2025				2024
Interest and fees on loans		$	34,093			$	33,880			$	32,967			$	31,885			$	32,308			$	132,825			$	130,878
Interest on debt securities			2,274				1,157				1,703				1,749				1,770				6,883				7,162
Federal Home Loan Bank dividends			185				184				181				185				185				735				752
Other interest income			1,775				2,033				793				706				681				5,307				3,649
Total interest income			38,327				37,254				35,644				34,525				34,944				145,750				142,441
Deposit interest expense			12,887				13,776				13,669				12,827				14,015				53,159				54,146
Interest on short-term borrowings			6				385				1,242				1,911				1,437				3,544				11,879
Interest on subordinated debt			421				443				443				435				293				1,742				1,194
Total interest expense			13,314				14,604				15,354				15,173				15,745				58,445				67,219
Net interest income			25,013				22,650				20,290				19,352				19,199				87,305				75,222
Provision for credit losses			2,838				1,355				925				-				779				5,118				4,096
Net interest income after
provision for credit losses			22,175				21,295				19,365				19,352				18,420				82,187				71,126
Service charges and fees			797				779				840				762				649				3,178				2,600
Foreign exchange income			254				267				196				220				191				937				896
Income from bank-owned life insurance			93				96				93				90				93				372				508
Warrant and success fee income			375				-				273				-				65				648				65
Net loss on sale of securities			-				(62,391	)			-				-				-				(62,391	)			-
Other investment income			146				315				(23	)			47				637				485				1,092
Other income			102				82				159				52				205				395				849
Total non-interest income			1,767				(60,852	)			1,538				1,171				1,840				(56,376	)			6,010
Salaries and benefit expenses			9,574				9,766				8,978				9,097				7,389				37,415				32,499
Occupancy and equipment expenses			730				723				759				996				919				3,208				4,019
Data processing			770				792				759				615				613				2,936				2,412
Regulatory assessments			521				445				420				544				541				1,930				2,083
Legal and professional fees			890				591				715				511				452				2,707				2,139
Other operating expenses			1,366				1,162				978				1,079				1,138				4,585				4,181
Total non-interest expense			13,851				13,479				12,609				12,842				11,052				52,781				47,333
Income / (loss) before income taxes			10,091				(53,036	)			8,294				7,681				9,208				(26,970	)			29,803
Provision / (benefit) for income taxes			3,142				(15,301	)			2,497				2,245				2,751				(7,417	)			8,788
Net Income / (loss)		$	6,949			$	(37,735	)		$	5,797			$	5,436			$	6,457			$	(19,553	)		$	21,015
Basic earnings / (loss) per common share		$	0.66			$	(4.12	)		$	0.77			$	0.73			$	0.87			$	(2.25	)		$	2.83
Diluted earnings / (loss) per common share			0.65				(4.12	)			0.75				0.71				0.84				(2.25	)			2.76
Weighted average shares - basic			10,579,753				9,168,707				7,534,264				7,488,051				7,455,650				8,702,468				7,426,096
Weighted average shares - diluted			10,754,488				9,168,707				7,686,385				7,682,884				7,661,711				8,702,468				7,604,442

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

		For the Three Months Ended
		December 31, 2025												September 30, 2025
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates (5)				Balance				Expense				Rates (5)
Assets
Interest-earning assets:
Loans, net of deferred fees (1)		$	2,024,325			$	34,093				6.68	%		$	1,924,537			$	33,880				6.98	%
Fed funds sold / interest-bearing deposits			175,590				1,775				4.01	%			189,921				2,033				4.25	%
Debt securities
Taxable debt securities			193,816				2,244				4.59	%			178,637				1,126				2.50	%
Non-taxable debt securities (2)			2,646				38				5.70	%			2,517				39				6.15	%
Total debt securities			196,462				2,282				4.61	%			181,154				1,165				2.55	%
FHLB stock			8,409				185				8.73	%			8,409				184				8.68	%
Total interest-earning assets			2,404,786				38,335				6.32	%			2,304,021				37,262				6.42	%
Non-interest-earning assets:
Cash and due from banks			13,506												7,019
All other assets (3)			40,818												46,118
Total assets		$	2,459,110											$	2,357,158
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,088,413			$	9,186				3.35	%		$	1,074,064			$	9,961				3.68	%
Money market and savings			489,587				3,449				2.79	%			433,135				3,336				3.06	%
Time deposits			31,266				252				3.20	%			43,897				365				3.30	%
Non-reciprocal brokered deposits			-				-				0.00	%			10,283				114				4.40	%
Total interest-bearing deposits			1,609,266				12,887				3.18	%			1,561,379				13,776				3.50	%
Short-term borrowings			652				6				3.65	%			33,500				385				4.56	%
Subordinated debt			22,000				421				7.59	%			22,000				443				7.99	%
Total interest-bearing liabilities			1,631,918				13,314				3.24	%			1,616,879				14,604				3.58	%
Non-interest-bearing liabilities:
Demand deposits			526,610												482,849
Accrued expenses and other liabilities			22,200												20,527
Shareholders' equity			278,382												236,903
Total liabilities and shareholders' equity		$	2,459,110											$	2,357,158
Net interest spread											3.08	%											2.83	%
Net interest income and margin (4)						$	25,021				4.13	%						$	22,658				3.90	%
Non-taxable equivalent net interest margin											4.13	%											3.90	%
Cost of deposits		$	2,135,876			$	12,887				2.39	%		$	2,044,228			$	13,776				2.67	%

⁽¹⁾ Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred loan fees / (costs) of $353 thousand and $444 thousand, for the three months ended December 31, 2025 and September 30, 2025, respectively.
⁽²⁾ Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
⁽³⁾ Including negative balance on average allowance for credit losses on loans of $21.8 million and $20.1 million, respectively.
⁽⁴⁾ Net interest margin is net interest income divided by total interest-earning assets.
⁽⁵⁾ Annualized for the periods presented.

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

		For the Three Months Ended
		December 31, 2025												December 31, 2024
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates (5)				Balance				Expense				Rates (5)
Assets
Interest-earning assets:
Loans, net of deferred fees (1)		$	2,024,325			$	34,093				6.68	%		$	1,815,933			$	32,308				7.08	%
Fed funds sold / interest-bearing deposits			175,590				1,775				4.01	%			57,698				681				4.70	%
Debt securities
Taxable debt securities			193,816				2,244				4.59	%			305,963				1,741				2.26	%
Non-taxable debt securities (2)			2,646				38				5.70	%			2,539				36				5.64	%
Total debt securities			196,462				2,282				4.61	%			308,502				1,777				2.29	%
FHLB stock			8,409				185				8.73	%			8,409				185				8.75	%
Total interest-earning assets			2,404,786				38,335				6.32	%			2,190,542				34,951				6.35	%
Non-interest-earning assets:
Cash and due from banks			13,506												14,016
All other assets (3)			40,818												45,528
Total assets		$	2,459,110											$	2,250,086
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,088,413			$	9,186				3.35	%		$	994,121			$	9,840				3.94	%
Money market and savings			489,587				3,449				2.79	%			351,126				2,794				3.17	%
Time deposits			31,266				252				3.20	%			77,203				744				3.83	%
Non-reciprocal brokered deposits			-				-				0.00	%			49,064				637				5.16	%
Total interest-bearing deposits			1,609,266				12,887				3.18	%			1,471,514				14,015				3.79	%
Short-term borrowings			652				6				3.65	%			119,707				1,437				4.78	%
Subordinated debt			22,000				421				7.59	%			21,993				293				5.30	%
Total interest-bearing liabilities			1,631,918				13,314				3.24	%			1,613,214				15,745				3.88	%
Non-interest-bearing liabilities:
Demand deposits			526,610												422,807
Accrued expenses and other liabilities			22,200												25,895
Shareholders' equity			278,382												188,170
Total liabilities and shareholders' equity		$	2,459,110											$	2,250,086
Net interest spread											3.08	%											2.47	%
Net interest income and margin (4)						$	25,021				4.13	%						$	19,206				3.49	%
Non-taxable equivalent net interest margin											4.13	%											3.49	%
Cost of deposits		$	2,135,876			$	12,887				2.39	%		$	1,894,321			$	14,015				2.94	%

⁽¹⁾ Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred loan fees / (costs) of $353 thousand and $491 thousand, for the three months ended December 31, 2025 and December 31, 2024, respectively.
⁽²⁾ Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.
⁽³⁾ Including negative balance on average allowance for credit losses on loans of $21.8 million and $22.2 million, respectively.
⁽⁴⁾ Net interest margin is net interest income divided by total interest-earning assets.
⁽⁵⁾ Annualized for the periods presented.

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

		For the Twelve Months Ended
		December 31, 2025												December 31, 2024
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates				Balance				Expense				Rates
Assets
Interest-earning assets:
Loans, net of deferred fees (1)		$	1,924,166			$	132,825				6.90	%		$	1,797,626			$	130,878				7.28	%
Fed funds sold / interest-bearing deposits			126,340				5,307				4.20	%			68,722				3,649				5.31	%
Debt securities
Taxable debt securities			238,877				6,761				2.83	%			309,652				7,067				2.28	%
Non-taxable debt securities (2)			2,603				155				5.95	%			2,010				120				5.97	%
Total debt securities			241,480				6,916				2.86	%			311,662				7,187				2.31	%
FHLB stock			8,409				735				8.74	%			8,409				752				8.94	%
Total interest-earning assets			2,300,395				145,783				6.34	%			2,186,419				142,466				6.52	%
Non-interest-earning assets:
Cash and due from banks			10,865												13,048
All other assets (3)			46,320												53,347
Total assets		$	2,357,580											$	2,252,814
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,039,916			$	37,160				3.57	%		$	857,409			$	35,112				4.10	%
Money market and savings			426,951				12,750				2.99	%			326,934				10,729				3.28	%
Time deposits			45,626				1,575				3.45	%			76,846				3,144				4.09	%
Non-reciprocal brokered deposits			37,381				1,674				4.48	%			97,078				5,161				5.32	%
Total interest-bearing deposits			1,549,874				53,159				3.43	%			1,358,267				54,146				3.99	%
Short-term borrowings			77,573				3,544				4.57	%			233,290				11,879				5.09	%
Subordinated debt			22,000				1,742				7.92	%			21,956				1,194				5.44	%
Total interest-bearing liabilities			1,649,447				58,445				3.54	%			1,613,513				67,219				4.17	%
Non-interest-bearing liabilities:
Demand deposits			460,483												437,637
Accrued expenses and other liabilities			20,440												26,316
Shareholders' equity			227,210												175,348
Total liabilities and shareholders' equity		$	2,357,580											$	2,252,814
Net interest spread											2.80	%											2.35	%
Net interest income and margin (4)						$	87,338				3.80	%						$	75,247				3.44	%
Non-taxable equivalent net interest margin											3.80	%											3.44	%
Cost of deposits		$	2,010,357			$	53,159				2.64	%		$	1,795,904			$	54,146				3.01	%

(1) Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees / (costs) of $1.7 million and $1.8 million, for the twelve months ended December 31, 2025 and December 31, 2024, respectively.

(2) Interest income on tax-exempt securities has been increased to reflect comparable interest on taxable securities. The rate used was 21%, reflecting the statutory federal income tax rate.

(3) Including negative balance on average allowance for credit losses on loans of $20.0 million and $20.9 million, respectively.

(4) Net interest margin is net interest income divided by total interest-earning assets.

AVIDBANK HOLDINGS, INC.
Asset Quality Data (Unaudited)
(In thousands)

																						As of / For the Year-to-Date
		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Period Ended December 31,
		2025				2025				2025				2025				2024				2025				2024
Allowance for Credit Losses on Loans
Balance, beginning of period		$	21,025			$	19,624			$	18,722			$	18,679			$	22,315			$	18,679			$	19,131
Provision for credit losses on loans			2,759				1,364				891				-				630				5,014				3,909
Charge-offs			(1,523	)			-				-				-				(4,266	)			(1,523	)			(4,361	)
Recoveries			-				37				11				43				-				91				-
Balance, end of period		$	22,261			$	21,025			$	19,624			$	18,722			$	18,679			$	22,261			$	18,679
Allowance for Credit Losses on Unfunded Commitments
Balance, beginning of period		$	2,272			$	2,281			$	2,247			$	2,247			$	2,098			$	2,247			$	2,060
Provision for unfunded commitments			79				(9	)			34				-				149				104				187
Balance, end of period		$	2,351			$	2,272			$	2,281			$	2,247			$	2,247			$	2,351			$	2,247
Total allowance for credit losses -
loans and unfunded commitments		$	24,612			$	23,297			$	21,905			$	20,969			$	20,926			$	24,612			$	20,926
Provision for credit losses
Provision for credit losses on loans		$	2,759			$	1,364			$	891			$	-			$	630			$	5,014			$	3,909
Provision for unfunded commitments			79				(9	)			34				-				149				104				187
Total provision for credit losses		$	2,838			$	1,355			$	925			$	-			$	779			$	5,118			$	4,096
Non-Performing Assets
Loans accounted for on a non-accrual basis		$	24,502			$	2,761			$	1,352			$	1,360			$	1,367			$	24,502			$	1,367
Loans past due 90 days or more and still accruing			-				-				-				-				-				-				-
Non-performing loans			24,502				2,761				1,352				1,360				1,367				24,502				1,367
Other real estate owned			-				-				-				-				-				-				-
Non-performing assets		$	24,502			$	2,761			$	1,352			$	1,360			$	1,367			$	24,502			$	1,367
Non-Performing Loans by Type:
Commercial		$	5,088			$	2,761			$	1,352			$	1,360			$	1,367			$	5,088			$	1,367
Construction and land			19,414				-				-				-				-				19,414				-
Total Non-performing loans		$	24,502			$	2,761			$	1,352			$	1,360			$	1,367			$	24,502			$	1,367
Asset Quality Ratios
Allowance for credit losses on loans to total loans			1.04	%			1.07	%			1.03	%			1.02	%			1.00	%			1.04	%			1.00	%
Total allowance for credit losses-
loans and unfunded commitments			1.15	%			1.19	%			1.15	%			1.14	%			1.12	%			1.15	%			1.12	%
Allowance for credit losses on
loans to non-performing loans			90.85	%			761.50	%			1451.48	%			1367.62	%			1366.42	%			90.85	%			1366.42	%
Non-performing assets to total assets			0.95	%			0.12	%			0.06	%			0.06	%			0.06	%			0.95	%			0.06	%
Non-performing loans to total loans			1.14	%			0.14	%			0.07	%			0.07	%			0.07	%			1.14	%			0.07	%
Net charge-offs to average loans (1)			0.30	%			(0.01	)%			0.00	%			(0.01	)%			0.93	%			0.07	%			0.24	%
Criticized loans to total loans			0.50	%			1.48	%			1.87	%			1.43	%			2.27	%			0.50	%			2.27	%
Classified loans to total loans			1.22	%			0.44	%			0.38	%			0.20	%			0.22	%			1.22	%			0.22	%

⁽¹⁾ Annualized for the periods presented.

AVIDBANK HOLDINGS, INC.
Loans and Deposits (Unaudited)
(In thousands)

																						Current				Year
		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Quarter				Over Year
		2025				2025				2025				2025				2024				Change				Change
Loans
Commercial and industrial loans		$	1,049,530			$	871,524			$	855,049			$	803,920			$	816,963			$	178,006			$	232,567
Commercial real estate
Multi-family			265,105				249,802				241,399				227,003				216,018				15,303				49,087
Owner Occupied			165,130				176,171				168,393				142,764				142,650				(11,041	)			22,480
Non-Owner Occupied			424,107				412,623				407,955				405,788				414,551				11,484				9,556
Construction and land			196,243				209,750				204,973				226,641				246,301				(13,507	)			(50,058	)
Residential			45,669				36,399				31,560				32,985				27,494				9,270				18,175
Total real estate loans			1,096,254				1,084,745				1,054,280				1,035,181				1,047,014				11,509				49,240
Other loans			2,655				2,316				2,389				2,086				965				339				1,690
Total loans, net of deferred fees		$	2,148,439			$	1,958,585			$	1,911,718			$	1,841,187			$	1,864,942			$	189,854			$	283,497
Deposits
Non-interest-bearing demand		$	556,972			$	471,770			$	443,540			$	419,823			$	414,327			$	85,202			$	142,645
Interest-bearing checking			1,069,272				1,069,344				1,087,621				965,467				993,219				(72	)			76,053
Money market and savings			532,149				465,198				399,849				399,010				338,578				66,951				193,571
Time			27,680				42,846				46,770				58,273				74,468				(15,166	)			(46,788	)
Non-reciprocal brokered (1)			-				-				25,001				86,915				70,763				-				(70,763	)
Total deposits		$	2,186,073			$	2,049,158			$	2,002,781			$	1,929,488			$	1,891,355			$	136,915			$	294,718
Average Deposits
Non-interest-bearing demand		$	526,610			$	482,849			$	425,154			$	405,746			$	422,807			$	43,761			$	103,803
Interest-bearing checking			1,088,413				1,074,064				1,038,372				956,994				994,121				14,349				94,292
Money market and savings			489,587				433,135				398,438				385,434				351,126				56,452				138,461
Time			31,266				43,897				47,398				60,282				77,203				(12,631	)			(45,937	)
Non-reciprocal brokered			-				10,283				62,853				77,537				49,064				(10,283	)			(49,064	)
Total deposits		$	2,135,876			$	2,044,228			$	1,972,215			$	1,885,993			$	1,894,321			$	91,648			$	241,555

⁽¹⁾ FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank's total liabilities. As of December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, an additional $475.4 million, $522.5 million, $495.4 million, $447.8 million, and $470.0 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

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

Management believes that adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, adjusted efficiency ratio and taxable equivalent net interest income are reasonable measures to understand the Company's core operating performance and are important to many investors who are interested in understanding our profitability prospects from our core operations. In addition, management reviews yields on certain asset categories and the net interest margin of the Company on a fully taxable equivalent basis. The non-GAAP taxable equivalent net interest income adjustment facilitates performance comparisons between taxable and tax-free assets by increasing the tax-free income by an amount equivalent to the Federal income taxes that would have been paid if this income were taxable at the Company's 21% Federal statutory rate.

		For the Three Months Ended																				For the Twelve Months Ended
		Dec. 31,				Sept. 30,				June 30,				March 31,				Dec. 31,				Dec. 31,				Dec. 31,
		2025				2025				2025				2025				2024				2025				2024
Non-GAAP adjusted net income reconciliation
Net income / (loss) - GAAP		$	6,949			$	(37,735	)		$	5,797			$	5,436			$	6,457			$	(19,553	)		$	21,015
Loss on sale of securities			-				62,391				-				-				-				62,391				-
Tax impact of loss on sale of securities			-				(17,949	)			-				-				-				(17,949	)			-
Net income - adjusted (non-GAAP)		$	6,949			$	6,707			$	5,797			$	5,436			$	6,457			$	24,889			$	21,015
Non-GAAP adjusted diluted earnings per share reconciliation
Diluted earnings / (loss) per share - GAAP		$	0.65			$	(4.12	)		$	0.75			$	0.71			$	0.84			$	(2.25	)		$	2.76
Loss on sale of securities, net of income tax			-				4.84				-				-				-				5.05				-
Diluted earnings per share - adjusted (non-GAAP)		$	0.65			$	0.72			$	0.75			$	0.71			$	0.84			$	2.80			$	2.76
Non-GAAP adjusted return on average assets reconciliation
Net income / (loss) - GAAP		$	6,949			$	(37,735	)		$	5,797			$	5,436			$	6,457			$	(19,553	)		$	21,015
Average total assets			2,459,110				2,357,158				2,322,264				2,289,935				2,250,086				2,357,580				2,252,814
Return on average assets - GAAP (1)			1.12	%			(6.35	)%			1.00	%			0.96	%			1.14	%			(0.83	)%			0.93	%
Net income - adjusted (non-GAAP)		$	6,949			$	6,707			$	5,797			$	5,436			$	6,457			$	24,889			$	21,015
Average total assets			2,459,110				2,357,158				2,322,264				2,289,935				2,250,086				2,357,580				2,252,814
Return on average assets - adjusted (non-GAAP) (1)			1.12	%			1.13	%			1.00	%			0.96	%			1.14	%			1.06	%			0.93	%
Non-GAAP adjusted return on average equity reconciliation
Net income / (loss) - GAAP		$	6,949			$	(37,735	)		$	5,797			$	5,436			$	6,457			$	(19,553	)		$	21,015
Average total equity			278,382				236,903				200,608				191,891				188,170				227,210				175,348
Return on average equity - GAAP (1)			9.90	%			(63.19	)%			11.59	%			11.49	%			13.65	%			(8.61	)%			11.98	%
Net income - adjusted (non-GAAP)		$	6,949			$	6,707			$	5,797			$	5,436			$	6,457			$	24,889			$	21,015
Average total equity			278,382				236,903				200,608				191,891				188,170				227,210				175,348
Return on average equity - adjusted (non-GAAP) (1)			9.90	%			11.23	%			11.59	%			11.49	%			13.65	%			10.95	%			11.98	%
Non-GAAP adjusted efficiency ratio reconciliation
Non-interest expense		$	13,851			$	13,479			$	12,609			$	12,842			$	11,052			$	52,781			$	47,333
Net interest income			25,013				22,650				20,290				19,352				19,199				87,305				75,222
Non-interest income			1,767				(60,852	)			1,538				1,171				1,840				(56,376	)			6,010
Efficiency ratio - GAAP			51.72	%			(35.28	)%			57.77	%			62.57	%			52.53	%			170.65	%			58.27	%
Non-interest expense		$	13,851			$	13,479			$	12,609			$	12,842			$	11,052			$	52,781			$	47,333
Net interest income			25,013				22,650				20,290				19,352				19,199				87,305				75,222
Non-interest income			1,767				(60,852	)			1,538				1,171				1,840				(56,376	)			6,010
Loss on sale of securities			-				62,391				-				-				-				62,391				-
Non-interest income - adjusted			1,767				1,539				1,538				1,171				1,840				6,015				6,010
Efficiency ratio - adjusted (non-GAAP)			51.72	%			55.72	%			57.77	%			62.57	%			52.53	%			56.56	%			58.27	%
Non-GAAP taxable equivalent net interest income reconciliation
Net interest income - GAAP		$	25,013			$	22,650			$	20,290			$	19,352			$	19,199			$	87,305			$	75,222
Taxable equivalent adjustment			8				8				8				8				7				33				25
Net interest income - taxable equivalent (non-GAAP)		$	25,021			$	22,658			$	20,298			$	19,360			$	19,206			$	87,338			$	75,247

⁽¹⁾ Annualized for the periods presented.

SOURCE: Avidbank Holdings, Inc.

View the original press release on ACCESS Newswire

FAQ

What caused Avidbank (AVBH) to report a full-year 2025 net loss?

The full-year 2025 net loss was primarily from a $62.4M loss on sale of securities. According to the company, repositioning the available-for-sale securities portfolio produced that realized loss which drove the reported annual net loss.

How did Avidbank's loans and deposits change in 2025 (AVBH)?

Loans grew by $283.5M (15%) and deposits rose by $294.7M (16%) year-over-year. According to the company, growth was broad-based across commercial and deposit verticals, with notable increases in non-interest-bearing demand balances.

What were Avidbank's Q4 2025 earnings per share and return metrics (AVBH)?

Avidbank reported Q4 2025 net income of $6.9M, or $0.65 per diluted share, and a ROAA of 1.12%. According to the company, Q4 performance reflected NIM expansion and higher loan balances.

How did the IPO completed in August 2025 affect Avidbank (AVBH)?

The August 2025 IPO issued 3,001,500 shares and generated $61.3M net proceeds. According to the company, proceeds were used to repay short-term borrowings and support balance-sheet repositioning.

What drove the Q4 2025 net interest margin expansion at Avidbank (AVBH)?

NIM expanded to 4.13% in Q4 2025 due to higher average loan balances and lower funding costs. According to the company, sale of low-yielding securities and increased non-interest-bearing deposits also improved margin.