Avidbank (NASDAQ: AVBH) grows Q1 2026 earnings, margin and loans

Rhea-AI Filing Summary

Avidbank Holdings, Inc. reported strong first quarter 2026 results, with net income of $9.0 million, or $0.84 per diluted share, up from $6.9 million in the prior quarter and $5.4 million a year earlier. Return on average assets improved to 1.46% and return on average equity to 12.74%.

Net interest income rose to $26.5 million and net interest margin expanded to 4.38%, helped by higher average loan balances, lower deposit costs and a special FHLB dividend. The efficiency ratio improved to 50.35%, reflecting solid cost control.

Total assets reached $2.58 billion, loans grew to $2.17 billion and deposits to $2.20 billion. Asset quality mixed: non-performing assets increased year over year to 0.63% of total assets but fell from the prior quarter, while net charge-offs rose to 0.52% of average loans after two commercial and industrial loan charge-offs.

Positive

• Profitability inflection: Net income rose to $9.0 million and ROAA improved to 1.46%, with net interest margin expanding to 4.38% and the efficiency ratio tightening to 50.35%, signaling meaningfully stronger core earnings versus both the prior quarter and prior year.
• Balance sheet growth and capital: Loans increased to $2.17 billion and deposits to $2.20 billion year over year, while Tier 1 leverage and common equity Tier 1 capital ratios of 11.39% indicate solid regulatory capital support for continued growth.

Negative

• Higher credit costs and problem assets: Net charge-offs rose to 0.52% of average loans and non-performing assets increased year over year to 0.63% of total assets, reflecting pressure from two commercial and industrial loan charge-offs and higher levels of criticized and classified loans compared with the prior year.

Insights

Banking sector equity analyst

Q1 2026 shows stronger core profitability with some elevated credit costs.

Avidbank Holdings delivered higher earnings, with net income of $9.0M and diluted EPS of $0.84, up from $0.65 in Q4 2025. Return on average assets of 1.46% and net interest margin of 4.38% indicate a more profitable balance sheet.

Margin expansion came from higher average loan balances, lower deposit costs and a special FHLB dividend of $241K, while the efficiency ratio improved to 50.35%. Loans grew $24.4M quarter over quarter and $331.7M year over year, and deposits rose $269.8M year over year, supporting earnings capacity.

Credit metrics are more nuanced. Non-performing loans increased year over year to 0.75% of total loans, and net charge-offs climbed to 0.52% of average loans, driven by two commercial and industrial loan charge-offs. However, non-performing assets declined versus December 2025, and the total allowance for credit losses on loans and unfunded commitments stood at $23.3M, or 1.07% of total loans, providing a measurable reserve level against problem credits.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income: $9.0M Diluted EPS: $0.84/share Net interest margin: 4.38% +5 more

8 metrics

Net income $9.0M Q1 2026 net income versus $6.9M in Q4 2025

Diluted EPS $0.84/share Q1 2026 diluted earnings per share

Net interest margin 4.38% Q1 2026, up from 4.13% in Q4 2025

Total assets $2.58B Period-end assets as of March 31, 2026

Loans outstanding $2.17B Loans, net of deferred fees, at March 31, 2026

Deposits $2.20B Period-end deposits at March 31, 2026

Non-performing assets ratio 0.63% Non-performing assets to total assets at March 31, 2026

Tier 1 leverage ratio 11.39% Regulatory capital ratio for Q1 2026

Key Terms

net interest margin, efficiency ratio, non-performing assets, Tier 1 leverage ratio, +1 more

5 terms

net interest margin financial

"Net interest margin was 4.38% in the first quarter of 2026"

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

efficiency ratio financial

"The efficiency ratio was 50.35% compared to 51.72% in the fourth 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-performing assets financial

"Non-performing assets to total assets decreased to 0.63% as of March 31, 2026"

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.

Tier 1 leverage ratio financial

"Tier 1 leverage ratio (3) 11.39 %"

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

allowance for credit losses financial

"The allowance for credit losses on loans was $20.9 million on March 31, 2026"

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

Earnings Snapshot

Net income: $9.0M

Q1 2026

Net income $9.0M from $6.9M in Q4 2025 and $5.4M in Q1 2025

Diluted EPS $0.84 from $0.65 in Q4 2025 and $0.71 in Q1 2025

Net interest income $26.5M up $1.5M from Q4 2025 and $7.1M from Q1 2025

Net interest margin 4.38% from 4.13% in Q4 2025 and 3.52% in Q1 2025

Total assets $2.58B from $2.57B at December 31, 2025 and $2.32B at March 31, 2025

Understanding 8-K Material Events →

false 0001443575 0001443575 2026-04-27 2026-04-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 27, 2026

AVIDBANK HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

California		001-42792		26-1731009
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

1732 North First Street, 6th Floor San Jose, CA		95112
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (408) 200-7390

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, no par value per share		AVBH		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On April 27, 2026, Avidbank Holdings, Inc. (the "Company") issued a press release announcing financial results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

The information in this Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act") or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

The Company is filing an investor presentation that it intends to use in one-on-one meetings with investors at various times. A copy of the investor presentation is furnished as Exhibit 99.2 to this report and incorporated herein by reference.

The presentation is included as Exhibit 99.2 to this report and shall not be deemed to be "filed" for the purposes of the Exchange Act and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description
99.1	Avidbank Holdings, Inc. Press Release dated April 27, 2026
99.2	Avidbank Holdings, Inc. Investor Presentation dated April 27, 2026
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 27, 2026	AVIDBANK HOLDINGS, INC.
	By:	/s/ Patrick Oakes
	Name:	Patrick Oakes
	Title:	Executive Vice President and Chief Financial Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

PRESS RELEASE

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

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

First Quarter 2026 Highlights

	●	Return on average assets was 1.46% compared to 1.12% in the fourth quarter of 2025 and 0.96% in the first quarter of 2025.
	●	Net interest margin expanded to 4.38% in the first quarter of 2026, compared to 4.13% in the fourth quarter of 2025 and 3.52% in the first quarter of 2025.
	●	The efficiency ratio was 50.35% compared to 51.72% in the fourth quarter of 2025 and 62.57% in the first quarter of 2025.
	●	Book value per share was $26.33 at March 31, 2026, an increase of $0.67 from December 31, 2025, and an increase of $1.48 from March 31, 2025.
	●	Repurchased 25,000 shares of our common stock for $693 thousand and an average price of $27.69 per share as part of our share repurchase program.
	●	Period-end loans, net of deferred fees, increased $24.4 million, or 5% annualized, from December 31, 2025 and $331.7 million, or 18%, from March 31, 2025.
	●	Average deposits increased $15.2 million, or 3% annualized, from the fourth quarter of 2025 and $265.1 million, or 14%, from the first quarter of 2025. Period-end deposits increased $13.2 million, or 2% annualized, from December 31, 2025 and $269.8 million, or 14%, from March 31, 2025.
	●	Non-performing assets to total assets decreased to 0.63% as of March 31, 2026 compared to 0.95% at December 31, 2025 and increased compared to 0.06% at March 31, 2025.
	●	Net charge-offs to average loans totaled 0.52% in the first quarter of 2026 compared to 0.30% in the fourth quarter of 2025 due to the charge-off of two commercial and industrial loans.

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

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

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

Results of Operations

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

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

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

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

Avidbank Holdings, Inc. First Quarter 2026 Financial Results Press Release

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

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

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

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

Financial Condition

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

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

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

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

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

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

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

Other Information

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

Alternatively, individuals may listen to a live webcast of the presentation by visiting the link on the Company's website at www.avidbank.com under About Us, Investor Relations. An audio replay of the live webcast is expected to be available by the evening of April 28, 2026, through the Investor Relations section of the Company's website. The recording will be available for one year from the day of posting. Information which may be discussed on the conference call is provided in an earnings supplement presentation available on the Company’s website and furnished with the SEC and available at www.sec.gov.

About Avidbank Holdings

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

2

Avidbank Holdings, Inc. First Quarter 2026 Financial Results Press Release

Non-GAAP Financial Measures

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

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

Forward-Looking Statements

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

Contact:

Patrick Oakes

Executive Vice President and Chief Financial Officer

408-200-7390

IR@avidbank.com

3

AVIDBANK HOLDINGS, INC.

Selected Financial Data (Unaudited)

		For the Three Months Ended
		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,
(In thousands, except share and per share amounts)		2026				2025				2025				2025				2025
INCOME HIGHLIGHTS
Net income / (loss)		$	9,021			$	6,949			$	(37,735	)		$	5,797			$	5,436
Net income – adjusted (2)			9,021				6,949				6,707				5,797				5,436
PER SHARE DATA
Basic earnings / (loss) per share		$	0.85			$	0.66			$	(4.12	)		$	0.77			$	0.73
Diluted earnings / (loss) per share			0.84				0.65				(4.12	)			0.75				0.71
Diluted earnings per share – adjusted (2)			0.84				0.65				0.72				0.75				0.71
Book value per share			26.33				25.66				25.00				25.80				24.85
PERFORMANCE MEASURES
Return on average assets (1)			1.46	%			1.12	%			(6.35	)%			1.00	%			0.96	%
Return on average assets – adjusted (1) (2)			1.46	%			1.12	%			1.13	%			1.00	%			0.96	%
Return on average equity (1)			12.74	%			9.90	%			(63.19	)%			11.59	%			11.49	%
Return on average equity – adjusted (1) (2)			12.74	%			9.90	%			11.23	%			11.59	%			11.49	%
Net interest margin (1)			4.38	%			4.13	%			3.90	%			3.60	%			3.52	%
Efficiency ratio			50.35	%			51.72	%			(35.28	)%			57.77	%			62.57	%
Efficiency ratio – adjusted (2)			50.35	%			51.72	%			55.72	%			57.77	%			62.57	%
Average loans to average deposits			99.98	%			94.78	%			94.14	%			95.69	%			98.55	%
CAPITAL
Tier 1 leverage ratio (3)			11.39	%			11.23	%			11.14	%			10.53	%			10.39	%
Common equity tier 1 capital ratio (3)			11.39	%			11.05	%			11.68	%			11.02	%			11.10	%
Tier 1 risk-based capital ratio (3)			11.39	%			11.05	%			11.68	%			11.02	%			11.10	%
Total risk-based capital ratio (3)			12.85	%			12.57	%			13.48	%			12.76	%			12.86	%
Common equity ratio			11.18	%			10.93	%			11.56	%			8.55	%			8.48	%
SHARES OUTSTANDING
Number of common shares outstanding			10,955,167				10,947,967				10,925,102				7,923,946				7,912,184
Average common shares outstanding – basic			10,600,902				10,579,753				9,168,707				7,534,264				7,488,051
Average common shares outstanding – diluted			10,773,884				10,754,488				9,168,707				7,686,385				7,682,884
Average common shares outstanding – diluted – adjusted (2)			10,773,884				10,754,488				9,353,444				7,686,385				7,682,884
ASSET QUALITY
Total allowance for credit losses-loans and unfunded commitments to total loans			1.07	%			1.15	%			1.19	%			1.15	%			1.14	%
Non-performing assets to total assets			0.63	%			0.95	%			0.12	%			0.06	%			0.06	%
Non-performing loans to total loans			0.75	%			1.14	%			0.14	%			0.07	%			0.07	%
Net charge-offs to average loans (1)			0.52	%			0.30	%			(0.01	)%			0.00	%			(0.01	)%
AVERAGE BALANCES
Loans, net of deferred fees		$	2,150,688			$	2,024,325			$	1,924,537			$	1,887,263			$	1,858,716
Debt securities available-for-sale			216,507				196,462				181,154				293,640				296,422
Total assets			2,504,616				2,459,110				2,357,158				2,322,264				2,289,935
Deposits			2,151,059				2,135,876				2,044,228				1,972,215				1,885,993
Shareholders' equity			287,191				278,382				236,903				200,608				191,891
PERIOD-END BALANCES
Loans, net of deferred fees		$	2,172,846			$	2,148,439			$	1,958,585			$	1,911,718			$	1,841,187
Debt securities available-for-sale			210,583				218,160				173,588				292,808				296,617
Total assets			2,579,554				2,569,643				2,362,454				2,392,129				2,319,922
Deposits			2,199,319				2,186,073				2,049,158				2,002,781				1,929,488
Shareholders' equity			288,438				280,979				273,113				204,419				196,619

⁽¹⁾ Annualized for the periods presented.

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

⁽³⁾ Ratios presented are for Avidbank Holdings, Inc. and are estimated for the three months ended March 31, 2026.

4

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Financial Condition (Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2026			2025			2025			2025			2025
Assets
Cash and due from financial institutions	$	10,569		$	7,942		$	12,006		$	2,800		$	18,866
Due from Federal Reserve Bank and interest-bearing deposits in other financial institutions		138,473			146,627			165,313			127,123			106,135
Total cash and cash equivalents		149,042			154,569			177,319			129,923			125,001
Debt securities available-for-sale		210,583			218,160			173,588			292,808			296,617
Loans, net of deferred fees		2,172,846			2,148,439			1,958,585			1,911,718			1,841,187
Allowance for credit losses on loans		(20,938	)		(22,261	)		(21,025	)		(19,624	)		(18,722	)
Loans, net of allowance for credit losses on loans		2,151,908			2,126,178			1,937,560			1,892,094			1,822,465
Cash surrender value of bank-owned life insurance policies		13,151			13,045			12,953			12,857			12,764
Premises and equipment, net		1,340			1,526			1,739			1,927			2,118
Accrued interest receivable and other assets		53,530			56,165			59,295			62,520			60,957
Total assets	$	2,579,554		$	2,569,643		$	2,362,454		$	2,392,129		$	2,319,922
Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing	$	577,101		$	556,972		$	471,770		$	443,540		$	419,823
Interest-bearing checking		1,036,178			1,069,272			1,069,344			1,087,621			965,467
Money market and savings		519,059			532,149			465,198			399,849			399,010
Time		28,521			27,680			42,846			46,770			58,273
Non-reciprocal brokered (1)		38,460			–			–			25,001			86,915
Total deposits		2,199,319			2,186,073			2,049,158			2,002,781			1,929,488
Short-term borrowings		55,000			60,000			–			145,000			155,000
Subordinated debentures, net		22,000			22,000			22,000			22,000			22,000
Accrued interest payable and other liabilities		14,797			20,591			18,183			17,929			16,815
Total liabilities		2,291,116			2,288,664			2,089,341			2,187,710			2,123,303
Shareholders' Equity
Common stock		169,474			169,990			169,342			107,608			106,839
Retained earnings		120,171			111,150			104,201			141,936			136,139
Accumulated other comprehensive loss, net of taxes		(1,207	)		(161	)		(430	)		(45,125	)		(46,359	)
Total shareholders' equity		288,438			280,979			273,113			204,419			196,619
Total liabilities and shareholders' equity	$	2,579,554		$	2,569,643		$	2,362,454		$	2,392,129		$	2,319,922

⁽¹⁾ FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank’s total liabilities. As of March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, an additional $447.6 million, $475.4 million, $522.5 million, $495.4 million and $447.8 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

5

AVIDBANK HOLDINGS, INC.

Consolidated Statements of Operations (Unaudited)

		For the Three Months Ended
		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,
(in thousands, except share and per share amounts)		2026				2025				2025				2025				2025
Interest and fees on loans		$	35,429			$	34,093			$	33,880			$	32,967			$	31,885
Interest on debt securities			2,467				2,274				1,157				1,703				1,749
Federal Home Loan Bank dividends			426				185				184				181				185
Other interest income			716				1,775				2,033				793				706
Total interest income			39,038				38,327				37,254				35,644				34,525
Interest on deposits			11,899				12,887				13,776				13,669				12,827
Interest on short-term borrowings			240				6				385				1,242				1,911
Interest on subordinated debentures			399				421				443				443				435
Total interest expense			12,538				13,314				14,604				15,354				15,173
Net interest income			26,500				25,013				22,650				20,290				19,352
Provision for credit losses			1,445				2,838				1,355				925				–
Net interest income after provision for credit losses			25,055				22,175				21,295				19,365				19,352
Service charges and fees			821				797				779				840				762
Foreign exchange income			363				254				267				196				220
Bank-owned life insurance income			106				93				96				93				90
Warrant and success fee income			3				375				–				273				–
Other investment income			(22	)			146				315				(23	)			47
Net loss on sale of debt securities			–				–				(62,391	)			–				–
Other income			196				102				82				159				52
Total non-interest income			1,467				1,767				(60,852	)			1,538				1,171
Salaries and employee benefits			9,555				9,574				9,766				8,978				9,097
Legal and professional fees			1,188				890				591				715				511
Data processing			799				770				792				759				615
Occupancy and equipment			790				730				723				759				996
Regulatory assessments			566				521				445				420				544
Other operating expenses			1,184				1,366				1,162				978				1,079
Total non-interest expense			14,082				13,851				13,479				12,609				12,842
Income / (loss) before income taxes			12,440				10,091				(53,036	)			8,294				7,681
Provision / (benefit) for income taxes			3,419				3,142				(15,301	)			2,497				2,245
Net income / (loss)		$	9,021			$	6,949			$	(37,735	)		$	5,797			$	5,436
Basic earnings / (loss) per common share		$	0.85			$	0.66			$	(4.12	)		$	0.77			$	0.73
Diluted earnings / (loss) per common share			0.84				0.65				(4.12	)			0.75				0.71
Weighted average shares – basic			10,600,902				10,579,753				9,168,707				7,534,264				7,488,051
Weighted average shares – diluted			10,773,884				10,754,488				9,168,707				7,686,385				7,682,884

6

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

		For the Three Months Ended
		March 31, 2026												December 31, 2025
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
(In thousands)		Balance				Expense				Rates (6)				Balance				Expense				Rates (6)
Assets
Interest-earning assets:
Loans, net of deferred fees (1)		$	2,150,688			$	35,429				6.68	%		$	2,024,325			$	34,093				6.68	%
Interest-bearing deposits			78,859				716				3.68	%			175,590				1,775				4.01	%
Debt securities
Taxable debt securities			213,820				2,437				4.62	%			193,816				2,244				4.59	%
Non-taxable debt securities (2)			2,687				38				5.74	%			2,646				38				5.70	%
Total debt securities			216,507				2,475				4.64	%			196,462				2,282				4.61	%
FHLB stock (5)			8,409				426				20.55	%			8,409				185				8.73	%
Total interest-earning assets			2,454,463				39,046				6.45	%			2,404,786				38,335				6.32	%
Non-interest-earning assets:
Cash and due from financial institutions			13,058												13,506
All other assets (3)			37,095												40,818
Total assets		$	2,504,616											$	2,459,110
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,067,528			$	8,260				3.14	%		$	1,088,413			$	9,186				3.35	%
Money market and savings			517,342				3,389				2.66	%			489,587				3,449				2.79	%
Time deposits			27,589				207				3.04	%			31,266				252				3.20	%
Non-reciprocal brokered deposits			4,567				43				3.82	%			–				–				0.00	%
Total interest-bearing deposits			1,617,026				11,899				2.98	%			1,609,266				12,887				3.18	%
Short-term borrowings			25,500				240				3.82	%			652				6				3.65	%
Subordinated debt			21,997				399				7.36	%			22,000				421				7.59	%
Total interest-bearing liabilities			1,664,523				12,538				3.05	%			1,631,918				13,314				3.24	%
Non-interest-bearing liabilities:
Demand deposits			534,033												526,610
Accrued expenses and other liabilities			18,869												22,200
Shareholders' equity			287,191												278,382
Total liabilities and shareholders' equity		$	2,504,616											$	2,459,110
Net interest spread											3.40	%											3.08	%
Net interest income and margin (4)						$	26,508				4.38	%						$	25,021				4.13	%
Non-taxable equivalent net interest margin											4.38	%											4.13	%
Cost of deposits		$	2,151,059			$	11,899				2.24	%		$	2,135,876			$	12,887				2.39	%

⁽¹⁾ Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred fees / (costs) of $252 thousand and $353 thousand, for the three months ended March 31, 2026 and December 31, 2025, respectively.

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

⁽³⁾ Including average allowance for credit losses on loans of $21.9 million and $21.8 million, respectively.

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

⁽⁵⁾ Includes a special FHLB dividend totaling $241 thousand for the three months ended March 31, 2026. Yield is annualized for the periods presented.

⁽⁶⁾ Annualized for the periods presented.

7

AVIDBANK HOLDINGS, INC.

Average Balance Sheets and Net Interest Margin Analysis (Unaudited)

		For the Three Months Ended
		March 31, 2026												March 31, 2025
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
(In thousands)		Balance				Expense				Rates (6)				Balance				Expense				Rates (6)
Assets
Interest-earning assets:
Loans, net of deferred fees (1)		$	2,150,688			$	35,429				6.68	%		$	1,858,716			$	31,885				6.96	%
Interest-bearing deposits			78,859				716				3.68	%			64,376				706				4.45	%
Debt securities
Taxable debt securities			213,820				2,437				4.62	%			293,736				1,718				2.37	%
Non-taxable debt securities (2)			2,687				38				5.74	%			2,686				39				5.89	%
Total debt securities			216,507				2,475				4.64	%			296,422				1,757				2.40	%
FHLB stock (5)			8,409				426				20.55	%			8,409				185				8.92	%
Total interest-earning assets			2,454,463				39,046				6.45	%			2,227,923				34,533				6.29	%
Non-interest-earning assets:
Cash and due from financial institutions			13,058												12,851
All other assets (3)			37,095												49,161
Total assets		$	2,504,616											$	2,289,935
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,067,528			$	8,260				3.14	%		$	956,994			$	8,530				3.61	%
Money market and savings			517,342				3,389				2.66	%			385,434				2,871				3.02	%
Time deposits			27,589				207				3.04	%			60,282				558				3.75	%
Non-reciprocal brokered deposits			4,567				43				3.82	%			77,537				868				4.54	%
Total interest-bearing deposits			1,617,026				11,899				2.98	%			1,480,247				12,827				3.51	%
Short-term borrowings			25,500				240				3.82	%			170,111				1,911				4.56	%
Subordinated debt			21,997				399				7.36	%			22,000				435				8.02	%
Total interest-bearing liabilities			1,664,523				12,538				3.05	%			1,672,358				15,173				3.68	%
Non-interest-bearing liabilities:
Demand deposits			534,033												405,746
Accrued expenses and other liabilities			18,869												19,940
Shareholders' equity			287,191												191,891
Total liabilities and shareholders' equity		$	2,504,616											$	2,289,935
Net interest spread											3.40	%											2.61	%
Net interest income and margin (4)						$	26,508				4.38	%						$	19,360				3.52	%
Non-taxable equivalent net interest margin											4.38	%											3.52	%
Cost of deposits		$	2,151,059			$	11,899				2.24	%		$	1,885,993			$	12,827				2.76	%

⁽¹⁾ Non-performing loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes net amortization of deferred fees / (costs) of $252 thousand and $496 thousand, for the three months ended March 31, 2026 and March 31, 2025, respectively.

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

⁽³⁾ Including average allowance for credit losses on loans of $21.9 million and $18.8 million, respectively.

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

⁽⁵⁾ Includes a special FHLB dividend totaling $241 thousand for the three months ended March 31, 2026. Yield is annualized for the periods presented.

⁽⁶⁾ Annualized for the periods presented.

8

AVIDBANK HOLDINGS, INC.

Asset Quality Data (Unaudited)

		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,
(In thousands)		2026				2025				2025				2025				2025
Allowance for Credit Losses on Loans
Balance, beginning of period		$	22,261			$	21,025			$	19,624			$	18,722			$	18,679
Provision for credit losses on loans			1,433				2,759				1,364				891				–
Charge-offs			(3,171	)			(1,523	)			–				–				–
Recoveries			415				–				37				11				43
Balance, end of period		$	20,938			$	22,261			$	21,025			$	19,624			$	18,722
Allowance for Credit Losses on Unfunded Commitments
Balance, beginning of period		$	2,351			$	2,272			$	2,281			$	2,247			$	2,247
Provision for unfunded commitments			12				79				(9	)			34				–
Balance, end of period		$	2,363			$	2,351			$	2,272			$	2,281			$	2,247
Total allowance for credit losses - loans and unfunded commitments		$	23,301			$	24,612			$	23,297			$	21,905			$	20,969
Provision for credit losses
Provision for credit losses on loans		$	1,433			$	2,759			$	1,364			$	891			$	–
Provision for unfunded commitments			12				79				(9	)			34				–
Total provision for credit losses		$	1,445			$	2,838			$	1,355			$	925			$	–
Non-Performing Assets
Loans accounted for on a non-accrual basis		$	16,323			$	24,502			$	2,761			$	1,352			$	1,360
Loans past due 90 days or more and still accruing			–				–				–				–				–
Non-performing loans			16,323				24,502				2,761				1,352				1,360
Other real estate owned			–				–				–				–				–
Non-performing assets		$	16,323			$	24,502			$	2,761			$	1,352			$	1,360
Non-Performing Loans by Type
Commercial and industrial		$	–			$	5,088			$	2,761			$	1,352			$	1,360
Construction and land			16,323				19,414				–				–				–
Total non-performing loans		$	16,323			$	24,502			$	2,761			$	1,352			$	1,360
Asset Quality Ratios
Allowance for credit losses on loans to total loans			0.96	%			1.04	%			1.07	%			1.03	%			1.02	%
Total allowance for credit losses-loans and unfunded commitments to total loans			1.07	%			1.15	%			1.19	%			1.15	%			1.14	%
Allowance for credit losses on loans to non-performing loans			128.27	%			90.85	%			761.50	%			1451.48	%			1376.62	%
Non-performing assets to total assets			0.63	%			0.95	%			0.12	%			0.06	%			0.06	%
Non-performing loans to total loans			0.75	%			1.14	%			0.14	%			0.07	%			0.07	%
Net charge-offs to average loans (1)			0.52	%			0.30	%			(0.01	)%			0.00	%			(0.01	)%
Criticized loans to total loans			1.57	%			0.50	%			1.48	%			1.87	%			1.43	%
Classified loans to total loans			0.92	%			1.22	%			0.44	%			0.38	%			0.20	%

⁽¹⁾  Annualized for the periods presented.

9

AVIDBANK HOLDINGS, INC.

Loans and Deposits (Unaudited)

																						Current				Year
		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,				Quarter				Over Year
(In thousands)		2026				2025				2025				2025				2025				Change				Change
Loans
Commercial and industrial loans		$	1,040,684			$	1,049,530			$	871,524			$	855,049			$	803,920			$	(8,846	)		$	236,764
Commercial real estate
Multi-family			268,057				265,105				249,802				241,399				227,003				2,952				41,054
Owner-Occupied			164,191				165,130				176,171				168,393				142,764				(939	)			21,427
Non-Owner-Occupied			450,503				424,107				412,623				407,955				405,788				26,396				44,715
Construction and land			200,272				196,243				209,750				204,973				226,641				4,029				(26,369	)
Residential			48,726				45,669				36,399				31,560				32,985				3,057				15,741
Total real estate loans			1,131,749				1,096,254				1,084,745				1,054,280				1,035,181				35,495				96,568
Consumer loans			413				2,655				2,316				2,389				2,086				(2,242	)			(1,673	)
Total loans, net of deferred fees		$	2,172,846			$	2,148,439			$	1,958,585			$	1,911,718			$	1,841,187			$	24,407			$	331,659
Deposits
Non-interest-bearing demand		$	577,101			$	556,972			$	471,770			$	443,540			$	419,823			$	20,129			$	157,278
Interest-bearing checking			1,036,178				1,069,272				1,069,344				1,087,621				965,467				(33,094	)			70,711
Money market and savings			519,059				532,149				465,198				399,849				399,010				(13,090	)			120,049
Time			28,521				27,680				42,846				46,770				58,273				841				(29,752	)
Non-reciprocal brokered (1)			38,460				–				–				25,001				86,915				38,460				(48,455	)
Total deposits		$	2,199,319			$	2,186,073			$	2,049,158			$	2,002,781			$	1,929,488			$	13,246			$	269,831
Average Deposits
Non-interest-bearing demand		$	534,033			$	526,610			$	482,849			$	425,154			$	405,746			$	7,423			$	128,287
Interest-bearing checking			1,067,528				1,088,413				1,074,064				1,038,372				956,994				(20,885	)			110,534
Money market and savings			517,342				489,587				433,135				398,438				385,434				27,755				131,908
Time			27,589				31,266				43,897				47,398				60,282				(3,677	)			(32,693	)
Non-reciprocal brokered			4,567				–				10,283				62,853				77,537				4,567				(72,970	)
Total deposits		$	2,151,059			$	2,135,876			$	2,044,228			$	1,972,215			$	1,885,993			$	15,183			$	265,066

⁽¹⁾ FDIC regulations impose a general cap on reciprocal deposits that may be exempt from brokered deposits classification equal to 20% of the Bank’s total liabilities. As of March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, an additional $447.6 million, $475.4 million, $522.5 million, $495.4 million, and $447.8 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

10

AVIDBANK HOLDINGS, INC.

Non-GAAP Performance and Financial Measures Reconciliation (Unaudited)

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

		For the Three Months Ended
		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,
(In thousands)			2026				2025				2025				2025				2025
Non-GAAP adjusted net income reconciliation
Net income / (loss) – GAAP		$	9,021			$	6,949			$	(37,735	)		$	5,797			$	5,436
Loss on sale of securities			–				–				62,391				–				–
Tax impact of loss on sale of securities			–				–				(17,949	)			–				–
Net income – adjusted (non-GAAP)		$	9,021			$	6,949			$	6,707			$	5,797			$	5,436
Non-GAAP adjusted diluted earnings per share reconciliation
Diluted earnings / (loss) per share – GAAP		$	0.84			$	0.65			$	(4.12	)		$	0.75			$	0.71
Loss on sale of securities, net of income tax			–				–				4.84				–				–
Diluted earnings per share – adjusted (non-GAAP)		$	0.84			$	0.65			$	0.72			$	0.75			$	0.71
Average common shares – diluted – adjusted			10,773,884				10,754,488				9,353,444				7,686,385				7,682,884
Non-GAAP adjusted return on average assets reconciliation
Net income / (loss) – GAAP		$	9,021			$	6,949			$	(37,735	)		$	5,797			$	5,436
Average total assets			2,504,616				2,459,110				2,357,158				2,322,264				2,289,935
Return on average assets – GAAP (1)			1.46	%			1.12	%			(6.35	)%			1.00	%			0.96	%
Net income – adjusted (non-GAAP)		$	9,021			$	6,949			$	6,707			$	5,797			$	5,436
Average total assets			2,504,616				2,459,110				2,357,158				2,322,264				2,289,935
Return on average assets – adjusted (non-GAAP) (1)			1.46	%			1.12	%			1.13	%			1.00	%			0.96	%
Non-GAAP adjusted return on average equity reconciliation
Net income / (loss) – GAAP		$	9,021			$	6,949			$	(37,735	)		$	5,797			$	5,436
Average total equity			287,191				278,382				236,903				200,608				191,891
Return on average equity – GAAP (1)			12.74	%			9.90	%			(63.19	)%			11.59	%			11.49	%
Net income – adjusted (non-GAAP)		$	9,021			$	6,949			$	6,707			$	5,797			$	5,436
Average total equity			287,191				278,382				236,903				200,608				191,891
Return on average equity – adjusted (non-GAAP) (1)			12.74	%			9.90	%			11.23	%			11.59	%			11.49	%
Non-GAAP adjusted efficiency ratio reconciliation
Non-interest expense		$	14,082			$	13,851			$	13,479			$	12,609			$	12,842
Net interest income			26,500				25,013				22,650				20,290				19,352
Non-interest income			1,467				1,767				(60,852	)			1,538				1,171
Efficiency ratio – GAAP			50.35	%			51.72	%			(35.28	)%			57.77	%			62.57	%
Non-interest expense		$	14,082			$	13,851			$	13,479			$	12,609			$	12,842
Net interest income			26,500				25,013				22,650				20,290				19,352
Non-interest income			1,467				1,767				(60,852	)			1,538				1,171
Loss on sale of securities			–				–				62,391				–				–
Non-interest income – adjusted			1,467				1,767				1,539				1,538				1,171
Efficiency ratio – adjusted (non-GAAP)			50.35	%			51.72	%			55.72	%			57.77	%			62.57	%
Non-GAAP taxable equivalent net interest income reconciliation
Net interest income – GAAP		$	26,500			$	25,013			$	22,650			$	20,290			$	19,352
Taxable equivalent adjustment			8				8				8				8				8
Net interest income – taxable equivalent (non-GAAP)		$	26,508			$	25,021			$	22,658			$	20,298			$	19,360

⁽¹⁾ Annualized for the periods presented.

11

Exhibit 99.2

FAQ

How did Avidbank Holdings (AVBH) perform in Q1 2026?

Avidbank Holdings reported stronger Q1 2026 earnings, with net income of $9.0 million and diluted EPS of $0.84. Profitability improved, as return on average assets reached 1.46% and return on average equity was 12.74%, both higher than the prior quarter and year.

What happened to Avidbank Holdings (AVBH) net interest margin and revenue?

Net interest income for Avidbank Holdings rose to $26.5 million in Q1 2026. Net interest margin expanded to 4.38%, up from 4.13% in Q4 2025 and 3.52% a year earlier, driven by higher average loan balances, lower deposit costs and a special FHLB dividend.

How are Avidbank Holdings (AVBH) loans and deposits trending?

Avidbank Holdings’ loans, net of deferred fees, increased to $2.17 billion at March 31, 2026, up $24.4 million from year-end and $331.7 million year over year. Deposits reached $2.20 billion, rising $13.2 million sequentially and $269.8 million compared with March 31, 2025.

What is the asset quality picture for Avidbank Holdings (AVBH)?

Asset quality shows mixed signals. Non-performing assets were 0.63% of total assets and non-performing loans were 0.75% of total loans. Net charge-offs rose to 0.52% of average loans, largely from two commercial and industrial loan charge-offs, though non-performing assets fell versus December 2025.

How well capitalized is Avidbank Holdings (AVBH) after Q1 2026?

Avidbank Holdings reported solid capital ratios. The Tier 1 leverage ratio was 11.39%, and the common equity Tier 1 and Tier 1 risk-based capital ratios were both 11.39%. Total risk-based capital was 12.85%, supporting ongoing growth in loans and deposits.

Did Avidbank Holdings (AVBH) repurchase any stock in Q1 2026?

Yes. Avidbank Holdings repurchased 25,000 shares of common stock during Q1 2026 for $693,000, paying an average price of $27.69 per share under its share repurchase program, while book value per share increased to $26.33 at March 31, 2026.

Filing Exhibits & Attachments

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• EX-99.1 EXHIBIT 99.1 1.1 MB
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• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.5 KB
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