Avidia Bancorp, Inc. Reports Second Quarter 2025 Financial Results

Avidia Bancorp, Inc. Reports Second Quarter 2025 Financial Results Avidia Bancorp, Inc. (the “Company”) (NYSE: “AVBC”), the holding company of Avidia Bank, today reported second quarter financial results of Assabet Valley Bancorp, the former mutual holding company of Avidia Bank. As previously reported, Assabet Valley Bancorp completed its mutual-to-stock conversion transaction effective July 31, 2025, which resulted in the Company completing its initial public offering of shares of its common stock and becoming the stock holding company of Avidia Bank. Selected Financial Highlights for the Second Quarter of 2025 Statement of Operations: Quarterly net income was $3.9 million, compared to a net loss of $11.6 million for the first quarter.Quarterly net interest income increased by $1.4 million from the first quarter to $20.6 million.Net interest margin increased by 15 basis points from the first quarter to 3.19%.The cost of interest-bearing liabilities decreased by 13 basis points.The cost of total deposits fell 14 basis points to 1.36%.Provision for credit losses totaled $1.1 million.Quarterly non-interest income increased by $1.5 million from the first quarter to $5.2 million.Quarterly non-interest expense decreased by $2.1 million from the first quarter to $19.8 million.Salaries and employee benefits decreased $2.7 million from the first quarter as there were incentive plan terminations and increased short-term incentive payouts in the previous quarter.The efficiency ratio was 76.4%, compared to 95.2% in the first quarter.Income tax expense was $1.2 million. Balance Sheet: Total cash and cash equivalents increased by $225 million from the first quarter, primarily related to the funds received from the IPO subscription offering.Gross loans increased by $15.0 million from the first quarter to $2.25 billion.Deposits increased by $309 million from the first quarter to $2.44 billion, also primarily related to funds received from the IPO subscription offering.Federal Home Loan Bank advances decreased by $65 million from the first quarter to $260.0 million.Total capital increased by $5.4 million from the first quarter to $191.4 million. Asset Quality: Non-accrual loans to total loans was 0.50% compared to 0.53% in the first quarter. About Avidia Bancorp, Inc. Avidia Bancorp, Inc. is the bank holding company of Avidia Bank. Avidia Bank is a Massachusetts-chartered stock savings bank. With headquarters in Hudson, Massachusetts, it also operates nine full-service banking offices in western Middlesex County and eastern Worcester County, in Massachusetts. Forward-Looking Statements Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other similar expressions which do not relate to historical matters. Although we believe that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance. You should not place undue reliance on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond our control. Our actual results could differ materially from those presented in the forward-looking statements as a result of, among other factors, changes in general business and economic conditions nationwide and in our local markets, including changes which adversely affect borrowers' ability to service and repay loans; changes in customer behavior due to political, business and economic conditions, including inflation; conditions in the capital and debt markets; reductions in net interest income resulting from interest rate volatility and changes in the balances and mix of our loans and deposits; changes in market interest rates and real estate values; decreases in the value of securities and other assets or in deposit levels necessitating increased borrowing to fund loans and investments; competition from other financial institutions; changes in legislation or regulation and accounting principles, policies and guidelines; cybersecurity incidents; fraud; natural disasters; the risk that we may be unsuccessful in implementing our business strategy; and the other risks and uncertainties disclosed in Avidia Bancorp, Inc.’s definitive prospectus dated May 13, 2025, as filed the U.S. Securities and Exchange Commission. Forward looking statements speak only as of the date of this release, and we do not undertake any obligation to update or revise any of them to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events, except as may be required by applicable law or regulation. Assabet Valley BancorpSelected Financial Highlights (Unaudited)At or for the Quarters Ended(In thousands, except per share data)June 30, 2025March 31, 2025June 30, 2024Consolidated Financial Condition Data, (End of Period):Total assets $ 2,957,908 $ 2,706,631 $ 2,652,318 Cash and due from banks 308,586 83,082 74,064 Securities available for sale 266,249 261,946 274,900 Securities held-to-maturity 16,747 16,746 16,746 Total loans 2,248,021 2,233,033 2,145,471 Allowance for credit losses (23,425) (21,849) (20,875) Net loans 2,224,596 2,211,184 2,124,596 Bank Owned Life Insurance 36,093 35,805 35,004 Goodwill 11,936 11,936 11,936 Deposits 2,439,608 2,131,068 2,021,839 Federal Home Loan Bank advances 260,000 325,000 372,300 Subordinated Debt 27,738 27,715 27,605 Total capital 191,426 186,057 187,045 Consolidated Operating Data:Total interest and dividend income $ 31,859 $ 31,049 $ 30,893 Total interest expense 11,241 11,838 12,585 Net interest income 20,618 19,211 18,308 Provision for credit losses 1,071 17,616 (320) Net interest income after provision for credit losses 19,547 1,595 18,628 Total non-interest income 5,246 3,727 3,445 Total non-interest expense 19,763 21,831 18,963 Income (loss) before income tax expense 5,030 (16,509) 3,110 Income tax expense (benefit) 1,158 (4,922) 759 Net income (loss) 3,872 (11,587) 2,351 Performance Ratios:Return on average assets (annualized) 0.57 % (1.76) % 0.37 % Return on average equity (annualized) 8.20 (23.86) 4.69 Cost of deposits 1.36 1.50 1.76 Yield on loans 5.20 5.16 5.49 Interest rate spread(1) 2.76 2.62 2.46 Net interest margin(2) 3.19 3.04 3.05 Noninterest income as a percentage of average assets 0.77 0.57 0.55 Noninterest expense as a percentage of average assets 2.91 3.32 3.01 Efficiency ratio(3) 76.41 95.18 87.17 Average interest-earning assets as a percentage of average interest-bearing liabilities 124.77 122.65 127.92 Capital Ratios (Avidia Bank only):Total equity as a percentage of total assets 7.24 % 7.98 % 7.89 % Total capital as a percentage of risk-weighted assets 11.41 11.18 11.64 Tier 1 capital as a percentage of risk-weighted assets 10.27 10.09 10.57 Common equity tier 1 capital as a percentage of risk-weighted assets 10.27 10.09 10.57 Tier 1 capital as a percentage of average assets 8.00 7.96 8.28 Asset Quality Ratios:Allowance for credit losses as a percentage of total loans 1.04 % 0.98 % 0.97 % Allowance for credit losses as a percentage of non-performing loans 207.79 184.11 473.73 Allowance for credit losses as a percentage of non-accrual loans 207.79 184.11 473.73 Non-accrual loans as a percentage of total loans 0.50 0.53 0.21 Net recoveries (charge-offs) as a percentage of total loans 0.01 (3.08) 0.02 Total non-accruing assets as a percentage of total assets 0.38 0.44 0.17 (1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.(2) Represents net interest income as a percentage of average interest-earning assets.(3) Represents noninterest expenses divided by the sum of net interest income and noninterest income.Assabet Valley BancorpConsolidated Balance Sheets (Unaudited)As ofJune 30, 2025 Change From(In thousands) June 30, 2025 March 31, 2025 June 30, 2024 March 31, 2025 June 30, 2024 AssetsCash and due from banks $ 24,667 $ 24,282 $ 15,394 $ 385 1.6 % $ 9,273 60.2 % Short-term investments 283,919 58,800 58,671 225,119 382.9 225,248 383.9 Total cash and cash equivalents 308,586 83,082 74,065 225,504 271.4 234,521 316.6 Securities available for sale, at fair value 266,249 261,946 274,900 4,303 1.6 (8,651 ) (3.1 ) Equity securities, at fair value - - 13,430 - - (13,430 ) (100.0 ) Securities held to maturity, at amortized cost 16,747 16,746 16,746 1 - 1 - Total securities 282,996 278,692 305,076 4,304 - (22,080 ) - Federal Home Loan Bank stock, at cost 12,083 14,729 16,210 (2,646 ) (18.0 ) (4,127 ) (25.5 ) Loans held for sale - 711 1,485 (711 ) (100.0 ) (1,485 ) (100.0 ) Total loans 2,248,021 2,233,033 2,145,471 14,988 0.7 102,550 4.8 Less: Allowance for credit losses (23,425 ) (21,849 ) (20,875 ) (1,576 ) 7.2 (2,550 ) 12.2 Net loans 2,224,596 2,211,184 2,124,596 13,412 0.6 100,000 4.7 Premises and equipment, net 29,098 29,020 28,133 78 0.3 965 3.4 Bank-owned life insurance 36,093 35,805 35,004 288 0.8 1,089 3.1 Accrued interest receivable 8,922 8,802 9,110 120 1.4 (188 ) (2.1 ) Net deferred tax asset 11,323 11,738 14,520 (415 ) (3.5 ) (3,197 ) (22.0 ) Goodwill 11,936 11,936 11,936 - - - - Mortgage servicing rights 3,253 3,289 3,483 (36 ) (1.1 ) (230 ) (6.6 ) Other assets 29,022 17,643 28,700 11,379 64.5 322 1.1 Total Assets $ 2,957,908 $ 2,706,631 $ 2,652,318 $ 251,277 9.3 % $ 305,590 11.5 % LiabilitiesDeposits $ 2,439,608 $ 2,131,068 $ 2,021,839 $ 308,540 14.5 % $ 417,769 20.7 % Federal Home Loan Bank advances 260,000 325,000 372,300 (65,000 ) (20.0 ) (112,300 ) (30.2 ) Subordinated debt 27,738 27,715 27,605 23 0.1 133 0.5 Mortgagors' escrow accounts 3,498 3,763 3,042 (265 ) (7.0 ) 456 15.0 Accrued expenses and other liabilities 35,638 33,028 40,487 2,610 7.9 (4,849 ) (12.0 ) Total liabilities $ 2,766,482 $ 2,520,574 $ 2,465,273 $ 245,908 9.8 % $ 301,209 12.2 % Capital:Retained earnings $ 207,555 $ 203,683 $ 209,682 $ 3,872 1.9 % $ (2,127 ) (1.0 ) % Accumulated other comprehensive loss (16,129 ) (17,626 ) (22,637 ) 1,497 (8.5 ) 6,508 (28.7 ) Total capital $ 191,426 $ 186,057 $ 187,045 $ 5,369 2.9 $ 4,381 2.3 % Total Liabilities and Capital $ 2,957,908 $ 2,706,631 $ 2,652,318 $ 251,277 9.3 % $ 305,590 11.5 % Assabet Valley BancorpConsolidated Statements of Operations QTD (Unaudited)Three Months Ended June 30, 2025 ChangeThree Months EndedFrom Three Months Ended(In thousands) June 30, 2025 March 31, 2025 June 30, 2024 March 31, 2025 June 30, 2024 Interest and dividend income:Loans, including fees $ 28,883 $ 28,183 $ 27,492 $ 700 2.5 % $ 1,391 5.1 % Securities 2,555 2,651 2,833 (96 ) (3.6 ) (278 ) (9.8 ) Other 421 215 568 206 95.8 (147 ) (25.9 ) Total interest and dividend income 31,859 31,049 30,893 810 2.6 966 3.1 Interest expense:Deposits 7,242 7,731 8,285 (489 ) (6.3 ) (1,043 ) (12.6 ) Federal Home Loan Bank advances 3,647 3,792 3,985 (145 ) (3.8 ) (338 ) (8.5 ) Subordinated debt 352 315 315 37 11.7 37 11.7 Total interest expense 11,241 11,838 12,585 (597 ) (5.0 ) (1,344 ) (10.7 ) Net interest income: 20,618 19,211 18,308 1,407 7.3 2,310 12.6 Provision expense (reversal) for credit losses 1,071 17,616 (320 ) (16,545 ) (93.9 ) 1,391 (434.7 ) Net interest income, after provision expense (reversal) for credit losses 19,547 1,595 18,628 17,952 1125.5 919 4.9 Non-interest income:Customer service fees 884 901 762 (17 ) (1.9 ) 122 16.0 Net (loss) on sale of securities available for sale (78 ) (541 ) (1,366 ) 463 (85.6 ) 1,288 (94.3 ) Net recognized gain on equity securities - - 273 - - (273 ) (100.0 ) Net write down on premises and equipment no longer in use - (356 ) - 356 (100.0 ) - - Payment processing income 2,079 2,192 1,798 (113 ) (5.2 ) 281 15.6 Income on bank-owned life insurance 289 279 195 10 3.6 94 48.2 Mortgage banking income 162 16 408 146 912.5 (246 ) (60.3 ) Investment commissions 312 350 352 (38 ) (10.9 ) (40 ) (11.4 ) Debit card income 793 525 573 268 51.0 220 38.4 Credit card income 58 49 335 9 18.4 (277 ) (82.7 ) Other 747 312 115 435 139.4 632 549.6 Total non-interest income 5,246 3,727 3,445 1,519 40.8 1,801 52.3 Non-interest expense:Salaries and employee benefits 8,909 11,566 8,701 (2,657 ) (23.0 ) 208 2.4 Occupancy and equipment 2,042 2,018 2,384 24 1.2 (342 ) (14.3 ) Data processing 2,994 3,378 2,218 (384 ) (11.4 ) 776 35.0 Professional fees 1,088 661 739 427 64.6 349 47.2 Payment processing 932 1,043 992 (111 ) (10.6 ) (60 ) (6.0 ) Deposit insurance 780 632 687 148 23.4 93 13.5 Advertising 310 265 334 45 17.0 (24 ) (7.2 ) Telecommunications 96 92 101 4 4.3 (5 ) (5.0 ) Problem loan and foreclosed real estate, net 194 112 100 82 73.2 94 94.0 Other general and administrative 2,418 2,064 2,707 354 17.2 (289 ) (10.7 ) Total non-interest expense 19,763 21,831 18,963 (2,068 ) (9.5 ) 800 4.2 Income (loss) before income tax expense 5,030 (16,509 ) 3,110 21,539 (130.5 ) 1,920 61.7 Income tax expense (benefit) 1,158 (4,922 ) 759 6,080 (123.5 ) 399 52.6 Net income (loss) $ 3,872 $ (11,587 ) $ 2,351 $ 15,459 (133.4 ) % $ 1,521 64.7 % Assabet Valley BancorpConsolidated Statements of Operations YTD (Unaudited)Six Months EndedSix Months Ended June 30, 2025 Change(In thousands)June 30, 2025June 30, 2024From Six Months Ended June 30, 2024Interest and dividend income:Loans, including fees $ 57,067 $ 54,750 $ 2,317 4.2 % Securities 5,206 4,953 253 5.1 Other 636 1,038 (402 ) (38.7 ) Total interest and dividend income 62,909 60,741 2,168 3.6Interest expense:Deposits 14,973 15,872 (899 ) (5.7 ) Federal Home Loan Bank advances 7,439 8,344 (905 ) (10.8 ) Subordinated debt 667 630 37 5.9 Total interest expense 23,079 24,846 (1,767 ) (7.1 ) Net interest income: 39,830 35,895 3,935 11.0 Provision expense (reversal) for credit losses 18,687 310 18,377 5,928.1 Net interest income, after provision expense for credit losses 21,143 35,585 (14,442 ) (40.6 ) Non-interest income:Customer service fees 1,785 1,620 165 10.2 Net (loss) on sale of securities available for sale (619 ) (1,366 ) 747 (54.7 ) Net recognized gain on equity securities - 1,637 (1,637 ) (100.0 ) Net write down on premises and equipment no longer in use (356 ) - (356 ) (100.0 ) Payment processing income 4,271 3,660 611 16.7 Income on bank-owned life insurance 568 407 161 39.6 Mortgage banking income 178 858 (680 ) (79.3 ) Investment commissions 662 660 2 - Debit card income 1,318 1,109 209 18.8 Credit card income 107 566 (459 ) (81.1 ) Other 1,060 193 867 449.2 Total non-interest income 8,974 9,344 (370 ) (4.0 ) Non-interest expense:Salaries and employee benefits 20,475 17,308 3,167 18.3 Occupancy and equipment 4,060 4,468 (408 ) (9.1 ) Data processing 6,372 4,423 1,949 44.1 Professional fees 1,749 1,254 495 39.5 Payment processing 1,975 2,012 (37 ) (1.8 ) Deposit insurance 1,412 1,396 16 1.1 Advertising 575 779 (204 ) (26.2 ) Telecommunications 188 205 (17 ) (8.3 ) Problem loan and foreclosed real estate, net 306 184 122 66.3 Other general and administrative 4,484 5,031 (547 ) (10.9 ) Total non-interest expense 41,596 37,060 4,536 12.2 Income (loss) before income tax expense (11,479 ) 7,869 (19,348 ) (245.9 ) Income tax expense (benefit) (3,764 ) 1,973 (5,737 ) (290.8 ) Net income (loss) $ (7,715 ) $ 5,896 $ (13,611 ) (230.9 ) % Assabet Valley BancorpAverage Balances and Average Yields And Costs (Unaudited)For the Quarters EndedJune 30, 2025March 31, 2025June 30, 2024(Dollars in thousands)Average Outstanding BalanceInterest Average Yield/Rate Average Outstanding BalanceInterestAverage Yield/RateAverage Outstanding BalanceInterest Average Yield/Rate Interest-earning assets:Short-term investments $ 67,357 $ 421 2.51 % $ 37,105 $ 215 2.35 % $ 49,032 $ 568 4.66 % Securities 296,321 2,555 3.46 309,608 2,651 3.47 352,204 2,833 3.24 Loans 2,229,893 28,883 5.20 2,214,952 28,183 5.16 2,015,649 27,492 5.49 Total interest-earning assets 2,593,571 31,859 4.93 2,561,665 31,049 4.92 2,416,885 30,893 5.14 Noninterest-earning assets 122,176 105,220 104,623 Total assets $ 2,715,747 $ 2,666,885 $ 2,521,508 Interest-bearing liabilities:NOW accounts $ 697,452 $ 700 0.40 % $ 690,014 $ 813 0.48 % $ 605,633 $ 737 0.49 % Money market accounts 270,969 848 1.26 260,430 842 1.31 299,203 1,117 1.50 Regular and other savings accounts 401,215 2,278 2.28 383,017 2,098 2.22 348,440 2,231 2.58 Certificates of deposit 347,419 3,416 3.94 387,556 3,978 4.16 246,367 4,200 6.86 Total interest-bearing deposits 1,717,055 7,242 1.69 1,721,017 7,731 1.82 1,499,643 8,285 2.22 FHLB advances and other borrowings(1) 333,834 3,647 4.38 339,814 3,792 4.53 362,083 3,985 4.43 Subordinated debt 27,782 352 5.08 27,691 315 4.61 27,592 315 4.59 Total interest-bearing liabilities 2,078,671 11,241 2.17 2,088,522 11,838 2.30 1,889,319 12,585 2.68 Noninterest-bearing demand deposits 415,035 336,000 388,359 Other noninterest-bearing liabilities 33,242 45,439 43,526 Total liabilities 2,526,948 2,469,961 2,321,203 Total capital 188,799 196,924 200,305 Total liabilities and capital $ 2,715,747 $ 2,666,885 $ 2,521,508 Net interest income $ 20,618 $ 19,211 $ 18,308 Net interest rate spread(2) 2.76 % 2.62 % 2.46 % Net interest-earning assets(3) $ 514,900 $ 473,143 $ 527,566 Net interest margin(4) 3.19 % 3.04 % 3.05 % Average interest-earning assets to interest-bearing liabilities 124.77 % 122.65 % 127.92 % (1) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet.(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(4) Net interest margin represents net interest income divided by average total interest-earning assets. Robert D. Cozzone President and Chief Executive Officer Avidia Bancorp, Inc. (800) 508-2265 Source: Avidia Bancorp, Inc.