Avidbank Holdings, Inc. Announces Financial Results for the Second Quarter of 2025

View all news AVIDBANK August 25, 2025 Avidbank Holdings, Inc. (NASDAQ:AVBH) announced net income for the second quarter of 2025 of $5.8 million, or $0.75 per diluted share, compared to $5.4 million, or $0.71 per diluted share, for the first quarter of 2025 and $3.5 million, or $0.46 per diluted share, for the second quarter of 2024. Initial Public Offering Subsequent to the end of the second quarter, in August 2025 the Company completed an initial public offering 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 and commissions and estimated offering expenses, the Company's net proceeds from the initial public offering totaled approximately $62 million. Second Quarter 2025 Highlights Book value per share was $25.80 at June 30, 2025, an increase of $0.95, or 15% annualized, from March 31, 2025, and an increase of $4.03, or 19%, from June 30, 2024. Net interest margin expanded to 3.60% in the second quarter of 2025, compared to 3.52% in the first quarter of 2025. Return on average assets improved to 1.00% compared to 0.96% in the first quarter of 2025 and 0.62% in the second quarter of 2024. Loans increased $70.5 million, or 15% annualized, from March 31, 2025 and $105.1 million, or 6%, from June 30, 2024. Average deposits increased $86.2 million, or 18% annualized, from the first quarter of 2025 and $214.9 million, or 12%, from the second quarter of 2024. Nonperforming assets to total assets totaled 0.06% as of June 30, 2025 and March 31, 2025. "Our second quarter results reflect the continued strength of our business model, with solid loan and deposit growth, further expansion in our net interest margin, and improved profitability," said Mark D. Mordell, Chairman and Chief Executive Officer. "We are pleased to have successfully completed our initial public offering in August, which further strengthens our capital position to support our long-term strategy and provides the regulatory capital to potentially reposition a substantial portion of our available-for-sale securities portfolio. With a strong balance sheet, disciplined credit culture, and a growing client base, we believe we are well positioned to continue delivering value for our shareholders." "Our results are a testament to the trust our clients place in us and the dedication of our employees, who deliver exceptional service every day. As we look ahead, we remain focused on maintaining our disciplined approach to growth while continuing to invest in the relationships, people, and innovative solutions that differentiate Avidbank in the marketplace," added Mr. Mordell. Income Statement Net income totaled $5.8 million for the second quarter of 2025, an increase of $361,000, or 27% annualized, from the first quarter of 2025, and an increase of $2.3 million, or 67%, from the second quarter of 2024. The primary contributors to the improvement in net income compared to the first quarter of 2025, were a $1.1 million increase in interest and fees on loans, an increase of $367,000 in noninterest income and a decrease in noninterest expense of $233,000. Partially offsetting this increase was $925,000 in provision for credit losses during the second quarter of 2025. This increase in provision for credit losses was primarily due to an increase in loans as of June 30, 2025 compared to March 31, 2025. Net interest income totaled $20.3 million for the second quarter of 2025, an increase of $938,000, or 19% annualized, from the first quarter of 2025, and an increase of $1.8 million, or 10%, from the second quarter of 2024. Net interest margin was 3.60% in the second quarter of 2025, an increase of 8 basis points compared to the first quarter of 2025, and a 21-basis-point increase compared to the second quarter of 2024. The increase in net interest margin compared to the prior quarter was primarily driven by an increase in average loans and higher loan yields outpacing stable funding costs, which were driven by lower average short-term borrowings. The yield on loans in the second quarter of 2025 was 7.01%, an increase of 5 basis points from the first quarter of 2025 and a decrease of 36 basis points from the second quarter of 2024. The increase in loan yields compared to the first quarter of 2025 was due to the increase in average loans during the second quarter of 2025 while the decrease in loan yields compared to the second quarter of 2024 was driven by a reduction in the Prime rate. The cost of interest-bearing deposits in the second quarter of 2025 was 3.54%, an increase of 3 basis points compared to the first quarter of 2025 and a decrease of 57 basis points compared to the second quarter of 2024. The cost of deposits in the second quarter of 2025 was 2.78%, an increase of 2 basis points from the first quarter of 2025 and a decrease of 31 basis points from the second quarter of 2024. The provision for credit losses was $925,000 in the second quarter of 2025, compared to $0 in the first quarter of 2025 and $3.0 million in the second quarter of 2024. The provision was higher in the second quarter of 2025 compared to the first quarter primarily due to higher loan balances. Noninterest income was $1.5 million in the second quarter of 2025 compared to $1.2 million in the first quarter of 2025 and $1.1 million in the second quarter of 2024. The second quarter of 2025 included $273,000 from warrant and success fee income, partially offset by a decrease in other investments income due to fair value adjustments. Noninterest expense totaled $12.6 million for the second quarter of 2025, compared to $12.8 million in the first quarter of 2025 and $11.8 million in the second quarter of 2024. The decrease from the first quarter was primarily due to lower salaries and benefits expense driven by the following: severance expense of $222,000 and seasonally higher payroll taxes during the first quarter of 2025, as well as higher capitalized loan origination costs during the second quarter of 2025, partially offset by an increase in incentives expense. Occupancy and equipment expense decreased due to lower rent expense in one of our loan production offices. There were 149 full-time equivalent employees on June 30, 2025, compared to 143 on March 31, 2025. Balance Sheet Total assets were $2.39 billion as of June 30, 2025, compared to $2.32 billion as of March 31, 2025, and $2.29 billion at June 30, 2024. Cash and cash equivalents were $129.9 million on June 30, 2025, compared to $125.0 million on March 31, 2025, and $111.7 million on June 30, 2024. Loans on June 30, 2025, totaled $1.91 billion, an increase of $70.5 million, or 15% annualized, from March 31, 2025, and an increase of $105.1 million, or 6%, from June 30, 2024. The increase in loans during the second quarter of 2025 included an increase of $51.1 million in commercial and industrial loans, $25.6 million in owner occupied loans and $14.4 million in multi-family loans. Partially offsetting the increase in loans was a $21.7 million decrease in construction and land loans. The allowance for credit losses on loans was $19.6 million on June 30, 2025, representing an increase of $902,000 from March 31, 2025 and a decrease of $2.8 million compared to June 30, 2024. The allowance for credit losses - loans and unfunded commitments to total loans was 1.15% on June 30, 2025, compared to 1.14% on March 31, 2025 and 1.36% as of June 30, 2024. Nonperforming loans to total loans was 0.07% on June 30, 3025 unchanged from March 31, 2025 and down 10 basis points from June 30, 2024. The available-for-sale securities portfolio totaled $292.8 million as of June 30, 2025, compared to $296.6 million on March 31, 2025, and $308.7 million as of June 30, 2024. The net unrealized loss for the available-for-sale portfolio totaled $63.4 million as of June 30, 2025, compared to $65.6 million at March 31, 2025 and $73.8 million as of June 30, 2024. Deposits were $2.00 billion on June 30, 2025, an increase of $73.3 million, or 15% annualized, from March 31, 2025 and an increase of $264.3 million, or 15% from June 30, 2024. The change in deposits during the second quarter of 2025 included a $122.2 million increase in interest-bearing checking, offset by a $61.9 million decrease in non-reciprocal brokered deposits. Quarterly average deposits for the second quarter of 2025 were $1.97 billion, an increase of $86.2 million from the first quarter of 2025, and an increase of $214.9 million from the second quarter of 2024. Short-term borrowings on June 30, 2025, totaled $145.0 million, a decrease of $10.0 million, or 26% annualized, compared to March 31, 2025, and a decrease of $185.0 million, or 56%, compared to June 30, 2024. Book value per share was $25.80 on June 30, 2025, an increase of $0.95 compared to $24.85 on March 31, 2025 and $21.77 as of June 30, 2024. Total shareholders' equity was $204.4 million on June 30, 2025, an increase of $7.8 million compared to March 31, 2025 and an increase of $33.0 million from June 30, 2024. The change from March 31, 2025 to June 30, 2025 included an increase in retained earnings of $5.8 million and a decrease in accumulated other comprehensive loss of $1.2 million. About Avidbank 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 news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to results presented 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 taxable equivalent net interest income and taxable equivalent net interest margin are reasonable measures to understand the Company's core operating performance and are important to many investors in the marketplace 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. 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. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy and expectations. 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; our inability to successfully reposition our available-for-sale securities portfolio utilizing the proceeds from our recent public offering; incurrence of any losses in connection with any repositioning of our available-for-sale securities portfolio utilizing the proceeds from our recently completed public offering; 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 customer 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 and effects 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 nonperforming 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 acquisitions or dispositions we may make or evaluate, and the costs associated with any potential or actual acquisition or disposition; 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 under the heading "Risk Factors" 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 [email protected] AVIDBANK HOLDINGS, INC. Selected Financial Data (Unaudited) (In thousands, except share and per share amounts) Quarter Ended Year-to-Date June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024 INCOME HIGHLIGHTS Net income $ 5,797 $ 5,436 $ 6,457 $ 5,846 $ 3,466 $ 11,233 $ 8,712 PER SHARE DATA Basic earnings per share $ 0.77 $ 0.73 $ 0.87 $ 0.79 $ 0.47 $ 1.50 $ 1.18 Diluted earnings per share 0.75 0.71 0.84 0.77 0.46 1.46 1.15 Book value per share 25.80 24.85 23.57 23.95 21.77 25.80 21.77 PERFORMANCE MEASURES Return on average assets (1) 1.00 % 0.96 % 1.14 % 1.02 % 0.62 % 0.98 % 0.78 % Return on average equity (1) 11.59 % 11.49 % 13.65 % 12.97 % 8.35 % 11.54 % 10.50 % Net interest margin 3.60 % 3.52 % 3.48 % 3.35 % 3.39 % 3.56 % 3.46 % Taxable equivalent net interest margin (2) 3.60 % 3.52 % 3.49 % 3.35 % 3.39 % 3.56 % 3.47 % Efficiency ratio 57.77 % 62.57 % 52.53 % 59.29 % 59.92 % 60.10 % 60.78 % Average loans to average deposits 95.69 % 98.55 % 95.86 % 99.90 % 103.19 % 97.08 % 102.53 % CAPITAL Tier 1 leverage ratio 10.53 % 10.39 % 10.35 % 9.93 % 9.64 % 10.53 % 9.64 % Common equity tier 1 capital ratio 11.02 % 11.10 % 10.59 % 10.75 % 10.08 % 11.02 % 10.08 % Tier 1 risk-based capital ratio 11.02 % 11.10 % 10.59 % 10.75 % 10.08 % 11.02 % 10.08 % Total risk-based capital ratio 12.76 % 12.86 % 12.30 % 12.92 % 12.17 % 12.76 % 12.17 % Common equity ratio 8.55 % 8.48 % 8.09 % 8.21 % 7.50 % 8.55 % 7.50 % SHARES OUTSTANDING Number of common shares outstanding 7,923,946 7,912,184 7,906,761 7,871,818 7,876,082 7,923,946 7,876,082 Average common shares outstanding - basic 7,534,264 7,488,051 7,455,650 7,434,726 7,426,949 7,511,285 7,406,794 Average common shares outstanding - diluted 7,686,385 7,682,884 7,661,711 7,622,428 7,578,613 7,684,976 7,565,065 ASSET QUALITY Total allowance for credit losses-loans and unfunded commitments 1.15 % 1.14 % 1.12 % 1.37 % 1.36 % 1.15 % 1.36 % Nonperforming assets to total assets 0.06 % 0.06 % 0.06 % 0.16 % 0.16 % 0.06 % 0.16 % Nonperforming loans to total loans 0.07 % 0.07 % 0.07 % 0.20 % 0.20 % 0.07 % 0.20 % Net charge-offs to average loans (1) 0.00 % -0.01 % 0.93 % 0.02 % 0.00 % -0.01 % 0.00 % AVERAGE BALANCES Loans, net of deferred loan fees $ 1,887,263 $ 1,858,716 $ 1,815,933 $ 1,804,107 $ 1,813,422 $ 1,873,068 $ 1,785,096 Investment securities 293,640 296,422 308,502 311,450 307,294 295,024 313,367 Total assets 2,322,264 2,289,935 2,250,086 2,272,623 2,265,583 2,306,188 2,244,180 Deposits 1,972,215 1,885,993 1,894,321 1,805,935 1,757,320 1,929,342 1,741,082 Shareholders' equity 200,608 191,891 188,170 179,260 166,874 196,273 166,890 (1) Annualized (2) A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table. AVIDBANK HOLDINGS, INC. Consolidated Balance Sheets (Unaudited) (In thousands) June 30, March 31, Dec. 31, Sept. 30, June 30, 2025 2025 2024 2024 2024 Assets Cash and due from banks $ 2,800 $ 18,866 $ 8,662 $ 15,172 $ 13,750 Due from Federal Reserve Bank and interest-bearing deposits in banks 127,123 106,135 74,039 121,361 97,974 Total cash and cash equivalents 129,923 125,001 82,701 136,533 111,724 Investment securities available-for-sale 292,808 296,617 296,556 316,741 308,661 Loans, net of deferred loan fees 1,911,718 1,841,187 1,864,942 1,786,756 1,806,607 Allowance for credit losses on loans (19,624 ) (18,722 ) (18,679 ) (22,315 ) (22,410 ) Loans, net of allowance for credit losses on loans 1,892,094 1,822,465 1,846,263 1,764,441 1,784,197 Bank owned life insurance 12,857 12,764 12,674 12,580 12,490 Premises and equipment, net 1,927 2,118 2,331 2,549 2,810 Accrued interest receivable and other assets 62,520 60,957 63,963 62,625 67,139 Total assets $ 2,392,129 $ 2,319,922 $ 2,304,488 $ 2,295,469 $ 2,287,021 Liabilities and Shareholders' Equity Deposits: Noninterest-bearing demand $ 443,540 $ 419,823 $ 414,327 $ 405,528 $ 405,644 Interest-bearing checking 1,087,621 965,467 993,219 1,026,898 840,839 Money market and savings 399,849 399,010 338,578 336,166 312,162 Time 46,770 58,273 74,468 75,033 99,239 Non-reciprocal brokered (1) 25,001 86,915 70,763 57,903 80,608 Total deposits 2,002,781 1,929,488 1,891,355 1,901,528 1,738,492 Subordinated debt, net 22,000 22,000 22,000 21,982 21,957 Short-term borrowings 145,000 155,000 185,000 160,000 330,000 Accrued interest payable and other liabilities 17,929 16,815 19,771 23,438 25,123 Total liabilities 2,187,710 2,123,303 2,118,126 2,106,948 2,115,572 Shareholders' Equity Common stock 107,608 106,839 106,997 106,169 105,487 Retained earnings 141,936 136,139 130,703 124,246 118,400 Accumulated other comprehensive loss (45,125 ) (46,359 ) (51,338 ) (41,894 ) (52,438 ) Total shareholders' equity 204,419 196,619 186,362 188,521 171,449 Total liabilities and shareholders' equity $ 2,392,129 $ 2,319,922 $ 2,304,488 $ 2,295,469 $ 2,287,021 (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 June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, an additional $495.4 million, $447.8 million, $470.0 million, $509.3 million and $440.6 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 Income (Unaudited) (in thousands, except share and per share amounts) Quarter Ended Year-to-Date June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024 Interest and fees on loans $ 32,967 $ 31,885 $ 32,308 $ 33,488 $ 33,255 $ 64,852 $ 65,083 Interest on investment securities 1,703 1,749 1,770 1,767 1,801 3,452 3,624 Federal Home Loan Bank dividends 181 185 185 183 193 366 384 Other interest income 793 706 681 1,198 951 1,499 1,770 Total interest income 35,644 34,525 34,944 36,636 36,200 70,169 70,861 Deposit interest expense 13,669 12,827 14,015 14,602 13,494 26,496 25,528 Interest on short-term borrowings 1,242 1,911 1,437 3,121 3,880 3,153 7,322 Interest on subordinated debt 443 435 293 300 300 878 601 Total interest expense 15,354 15,173 15,745 18,023 17,674 30,527 33,451 Net interest income 20,290 19,352 19,199 18,613 18,526 39,642 37,410 Provision for credit losses 925 - 779 - 2,998 925 3,317 Net interest income after provision for credit losses 19,365 19,352 18,420 18,613 15,528 38,717 34,093 Service charges and bank fees 840 762 649 675 658 1,602 1,275 Foreign exchange income 196 220 191 246 208 416 460 Income from bank owned life insurance 93 90 93 90 137 183 324 Warrant and success fee income 273 - 65 - - 273 - Other investment income (23 ) 47 637 240 59 24 214 Other income 159 52 205 539 36 211 108 Total noninterest income 1,538 1,171 1,840 1,790 1,098 2,709 2,381 Salaries and benefit expenses 8,978 9,097 7,389 8,336 7,980 18,075 16,774 Occupancy and equipment expenses 759 996 919 1,033 1,039 1,755 2,067 Data processing 759 615 613 638 597 1,374 1,161 Regulatory assessments 420 544 541 528 568 964 1,014 Legal and professional fees 715 511 452 534 541 1,226 1,152 Other operating expenses 978 1,079 1,138 1,028 1,033 2,057 2,016 Total noninterest expense 12,609 12,842 11,052 12,097 11,758 25,451 24,184 Income before income taxes 8,294 7,681 9,208 8,306 4,868 15,975 12,290 Provision for income taxes 2,497 2,245 2,751 2,460 1,402 4,742 3,578 Net income $ 5,797 $ 5,436 $ 6,457 $ 5,846 $ 3,466 $ 11,233 $ 8,712 Basic earnings per common share $ 0.77 $ 0.73 $ 0.87 $ 0.79 $ 0.47 $ 1.50 $ 1.18 Diluted earnings per common share 0.75 0.71 0.84 0.77 0.46 1.46 1.15 Weighted average shares - basic 7,534,264 7,488,051 7,455,650 7,434,726 7,426,949 7,511,285 7,406,794 Weighted average shares - diluted 7,686,385 7,682,884 7,661,711 7,622,428 7,578,613 7,684,976 7,565,065 AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (In thousands) Quarter Ended June 30, 2025 March 31, 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) $ 1,887,263 $ 32,967 7.01 % $ 1,858,716 $ 31,885 6.96 % Fed funds sold/interest-bearing deposits 73,552 793 4.32 % 64,376 706 4.45 % Investment securities Taxable investment securities 291,074 1,672 2.30 % 293,736 1,718 2.37 % Non-taxable investment securities (2) 2,566 39 6.10 % 2,686 39 5.84 % Total investment securities 293,640 1,711 2.34 % 296,422 1,757 2.40 % FHLB stock 8,409 181 8.63 % 8,409 185 8.92 % Total interest-earning assets 2,262,864 35,652 6.32 % 2,227,923 34,533 6.29 % Noninterest-earning assets: Cash and due from banks 10,120 12,851 All other assets (3) 49,280 49,161 Total assets $ 2,322,264 $ 2,289,935 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 1,038,372 $ 9,483 3.66 % $ 956,994 $ 8,530 3.61 % Money market and savings 398,438 3,094 3.11 % 385,434 2,871 3.02 % Time deposits 47,398 400 3.38 % 60,282 558 3.75 % Non-reciprocal brokered deposits 62,853 692 4.42 % 77,537 868 4.54 % Total interest-bearing deposits 1,547,061 13,669 3.54 % 1,480,247 12,827 3.51 % Short-term borrowings 108,374 1,242 4.60 % 170,111 1,911 4.56 % Subordinated debt 22,000 443 8.08 % 22,000 435 8.02 % Total interest-bearing liabilities 1,677,435 15,354 3.67 % 1,672,358 15,173 3.68 % Noninterest-bearing liabilities: Demand deposits 425,154 405,746 Accrued expenses and other liabilities 19,067 19,940 Shareholders' equity 200,608 191,891 Total liabilities and shareholders' equity $ 2,322,264 $ 2,289,935 Net interest spread 2.65 % 2.61 % Net interest income and margin (4) $ 20,298 3.60 % $ 19,360 3.52 % Non-taxable equivalent net interest margin 3.60 % 3.52 % Cost of deposits $ 1,972,215 $ 13,669 2.78 % $ 1,885,993 $ 12,827 2.76 % (1) Nonperforming 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 $314 thousand and $496 thousand, 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 $ million and $18.8 million, respectively. (4) Net interest margin is net interest income divided by total interest-earning assets. (5) Annualized AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (In thousands) Quarter Ended June 30, 2025 June 30, 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) $ 1,887,263 $ 32,967 7.01 % $ 1,813,422 $ 33,255 7.38 % Fed funds sold/interest-bearing deposits 73,552 793 4.32 % 70,491 951 5.43 % Investment securities Taxable investment securities 291,074 1,672 2.30 % 305,492 1,778 2.34 % Non-taxable investment securities (2) 2,566 39 6.10 % 1,802 28 6.25 % Total investment securities 293,640 1,711 2.34 % 307,294 1,806 2.36 % FHLB stock 8,409 181 8.63 % 8,409 193 9.23 % Total interest-earning assets 2,262,864 35,652 6.32 % 2,199,616 36,205 6.62 % Noninterest-earning assets: Cash and due from banks 10,120 12,188 All other assets (3) 49,280 53,779 Total assets $ 2,322,264 $ 2,265,583 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 1,038,372 $ 9,483 3.66 % $ 783,048 $ 8,031 4.12 % Money market and savings 398,438 3,094 3.11 % 304,392 2,598 3.43 % Time deposits 47,398 400 3.38 % 97,430 1,035 4.27 % Non-reciprocal brokered deposits 62,853 692 4.42 % 135,952 1,830 5.41 % Total interest-bearing deposits 1,547,061 13,669 3.54 % 1,320,822 13,494 4.11 % Short-term borrowings 108,374 1,242 4.60 % 295,220 3,880 5.29 % Subordinated debt 22,000 443 8.08 % 21,944 300 5.50 % Total interest-bearing liabilities 1,677,435 15,354 3.67 % 1,637,986 17,674 4.34 % Noninterest-bearing liabilities: Demand deposits 425,154 436,498 Accrued expenses and other liabilities 19,067 24,225 Shareholders' equity 200,608 166,874 Total liabilities and shareholders' equity $ 2,322,264 $ 2,265,583 Net interest spread 2.65 % 2.28 % Net interest income and margin (4) $ 20,298 3.60 % $ 18,531 3.39 % Non-taxable equivalent net interest margin 3.60 % 3.39 % Cost of deposits $ 1,972,215 $ 13,669 2.78 % $ 1,757,320 $ 13,494 3.09 % (1) Nonperforming 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 $314 thousand and $409 thousand, 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 $19.1 million and $19.8 million, respectively. (4) Net interest margin is net interest income divided by total interest-earning assets. (5) Annualized AVIDBANK HOLDINGS, INC. Average Balance Sheets and Net Interest Margin Analysis (Unaudited) (In thousands) Year-to-Date June 30, 2025 June 30, 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) $ 1,873,068 $ 64,852 6.98 % $ 1,785,096 $ 65,083 7.33 % Fed funds sold/interest bearing deposits 68,989 1,499 4.38 % 64,941 1,770 5.48 % Investment securities Taxable investment securities 292,398 3,391 2.34 % 311,532 3,580 2.31 % Non-taxable investment securities (2) 2,626 77 5.91 % 1,835 56 6.14 % Total investment securities 295,024 3,468 2.37 % 313,367 3,636 2.33 % FHLB stock 8,409 366 8.78 % 8,409 384 9.18 % Total interest-earning assets 2,245,490 70,185 6.30 % 2,171,813 70,873 6.56 % Noninterest-earning assets: Cash and due from banks 11,478 12,613 All other assets (3) 49,220 59,754 Total assets $ 2,306,188 $ 2,244,180 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand deposits $ 997,907 $ 18,013 3.64 % $ 764,981 $ 15,470 4.07 % Money market and savings 391,972 5,965 3.07 % 303,992 4,868 3.22 % Time deposits 53,805 958 3.59 % 77,107 1,590 4.15 % Non-reciprocal brokered deposits 70,154 1,560 4.48 % 135,203 3,600 5.35 % Total interest-bearing deposits 1,513,838 26,496 3.53 % 1,281,283 25,528 4.01 % Short-term borrowings 139,072 3,153 4.57 % 288,643 7,322 5.10 % Subordinated debt 22,000 878 8.05 % 21,931 601 5.51 % Total interest-bearing liabilities 1,674,910 30,527 3.68 % 1,591,857 33,451 4.23 % Noninterest-bearing liabilities: Demand deposits 415,504 459,799 Accrued expenses and other liabilities 19,501 25,634 Shareholders' equity 196,273 166,890 Total liabilities and shareholders' equity $ 2,306,188 $ 2,244,180 Net interest spread 2.62 % 2.33 % Net interest income and margin (4) $ 39,658 3.56 % $ 37,422 3.47 % Non-taxable equivalent net interest margin 3.56 % 3.46 % Cost of deposits $ 1,929,342 $ 26,496 2.77 % $ 1,741,082 $ 25,528 2.95 % (1) Nonperforming 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 $810 thousand and $864 thousand, 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 million and $19.5 million, respectively. (4) Net interest margin is net interest income divided by total interest-earning assets. (5) Annualized AVIDBANK HOLDINGS, INC. Asset Quality Data (Unaudited) (In thousands) As of/For the Year-to-Date Period Ended June 30, June 30, March 31, Dec. 31, Sept. 30, June 30, 2025 2025 2024 2024 2024 2025 2024 Allowance for Credit Losses on Loans Beginning balance $ 18,722 $ 18,679 $ 22,315 $ 22,410 $ 19,342 $ 18,679 $ 19,131 Provision for credit losses on loans 891 - 630 - 3,068 891 3,279 Charge-offs - - (4,266 ) (95 ) - - - Recoveries 11 43 - - - 54 - Ending balance $ 19,624 $ 18,722 $ 18,679 $ 22,315 $ 22,410 $ 19,624 $ 22,410 Allowance for Credit Losses on Unfunded Commitments Beginning balance $ 2,247 $ 2,247 $ 2,098 $ 2,098 $ 2,168 $ 2,247 $ 2,060 Provision for unfunded commitments 34 - 149 - (70 ) 34 38 Ending balance $ 2,281 $ 2,247 $ 2,247 $ 2,098 $ 2,098 $ 2,281 $ 2,098 Total allowance for credit losses- loans and unfunded commitments $ 21,905 $ 20,969 $ 20,926 $ 24,413 $ 24,508 $ 21,905 $ 24,508 Provision for credit losses under CECL Provision for credit losses on loans $ 891 $ - $ 630 $ - $ 3,068 $ 891 $ 3,279 Provision for unfunded commitments 34 - 149 - (70 ) 34 38 Total provision for credit losses under CECL $ 925 $ - $ 779 $ - $ 2,998 $ 925 $ 3,317 Nonperforming Assets Loans accounted for on a non-accrual basis $ 1,332 $ 1,340 $ 1,347 $ 3,621 $ 3,686 $ 1,332 $ 3,686 Loans past due 90 days or more and still accruing - - - - - - - Nonperforming loans 1,332 1,340 1,347 3,621 3,686 1,332 3,686 Other real estate owned - - - - - - - Nonperforming assets $ 1,332 $ 1,340 $ 1,347 $ 3,621 $ 3,686 $ 1,332 $ 3,686 Nonperforming Loans by Type: Commercial $ 1,332 $ 1,340 $ 1,347 $ 3,621 $ 3,686 $ 1,332 $ 3,686 Total Nonperforming loans $ 1,332 $ 1,340 $ 1,347 $ 3,621 $ 3,686 $ 1,332 $ 3,686 Asset Quality Ratios Allowance for credit losses on loans to total loans 1.03 % 1.02 % 1.00 % 1.25 % 1.24 % 1.03 % 1.24 % Total allowance for credit losses-loans and unfunded commitments 1.15 % 1.14 % 1.12 % 1.37 % 1.36 % 1.15 % 1.36 % Allowance for credit losses on loans to nonperforming loans 1473.27 % 1397.16 % 1386.71 % 616.27 % 607.98 % 1473.27 % 607.98 % Nonperforming assets to total assets 0.06 % 0.06 % 0.06 % 0.16 % 0.16 % 0.06 % 0.16 % Nonperforming loans to total loans 0.07 % 0.07 % 0.07 % 0.20 % 0.20 % 0.07 % 0.20 % Net charge-offs to average loans (1) 0.00 % -0.01 % 0.93 % 0.02 % 0.00 % -0.01 % 0.00 % Criticized loans to total loans 1.87 % 1.43 % 2.27 % 1.62 % 1.49 % 1.87 % 1.49 % Classified loans to total loans 0.38 % 0.20 % 0.22 % 0.51 % 0.52 % 0.38 % 0.52 % (1) Charge-off ratios are annualized for the quarterly presentation. AVIDBANK HOLDINGS, INC. Loans and Deposits (Unaudited) (In thousands) Current Year June 30, March 31, Dec. 31, Sept. 30, June 30, Quarter Over Year 2025 2025 2024 2024 2024 Change Change Loans Commercial and industrial loans $ 855,049 $ 803,920 $ 816,963 $ 759,492 $ 774,666 $ 51,129 $ 80,383 Commercial real estate Multi-family 241,399 227,003 216,018 199,929 202,292 14,396 39,107 Owner Occupied 168,393 142,764 142,650 141,139 157,376 25,629 11,017 Non-Owner Occupied 407,955 405,788 414,551 406,007 412,473 2,167 (4,518 ) Construction and land 204,973 226,641 246,301 253,325 242,966 (21,668 ) (37,993 ) Residential 31,560 32,985 27,494 25,799 15,717 (1,425 ) 15,843 Total real estate loans 1,054,280 1,035,181 1,047,014 1,026,199 1,030,824 19,099 23,456 Other loans 2,389 2,086 965 1,065 1,117 303 1,272 Total loans, net of deferred fees $ 1,911,718 $ 1,841,187 $ 1,864,942 $ 1,786,756 $ 1,806,607 $ 70,531 $ 105,111 Deposits Noninterest-bearing demand $ 443,540 $ 419,823 $ 414,327 $ 405,528 $ 405,644 $ 23,717 $ 37,896 Interest-bearing checking 1,087,621 965,467 993,219 1,026,898 840,839 122,154 246,782 Money market and savings 399,849 399,010 338,578 336,166 312,162 839 87,687 Time 46,770 58,273 74,468 75,033 99,239 (11,503 ) (52,469 ) Non-reciprocal brokered (1) 25,001 86,915 70,763 57,903 80,608 (61,914 ) (55,607 ) Total deposits $ 2,002,781 $ 1,929,488 $ 1,891,355 $ 1,901,528 $ 1,738,492 $ 73,293 $ 264,289 Average Deposits Noninterest-bearing demand $ 425,154 $ 405,746 $ 422,807 $ 408,626 $ 436,498 $ 19,408 $ (11,344 ) Interest-bearing checking 1,038,372 956,994 994,121 903,542 783,048 81,378 255,324 Money market and savings 398,438 385,434 351,126 348,125 304,392 13,004 94,046 Time 47,398 60,282 77,203 75,972 97,430 (12,884 ) (50,032 ) Non-reciprocal brokered 62,853 77,537 49,064 69,670 135,952 (14,684 ) (73,099 ) Total deposits $ 1,972,215 $ 1,885,993 $ 1,894,321 $ 1,805,935 $ 1,757,320 $ 86,222 $ 214,895 (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 June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, an additional $495.4 million, $447.8 million, $470.0 million, $509.3 million and $440.6 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 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 and net interest margin adjustments facilitate 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. Quarter Ended Year-to-Date June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024 Non-GAAP taxable equivalent net interest income reconciliation Net interest income - GAAP $ 20,290 $ 19,352 $ 19,199 $ 18,613 $ 18,526 $ 39,642 $ 37,410 Taxable equivalent adjustment 8 8 7 6 5 16 12 Net interest income - taxable equivalent (non-GAAP) $ 20,298 $ 19,360 $ 19,206 $ 18,619 $ 18,531 $ 39,658 $ 37,422 Non-GAAP taxable equivalent net interest margin reconciliation Net interest margin - GAAP 3.60 % 3.52 % 3.48 % 3.35 % 3.39 % 3.56 % 3.46 % Impact of taxable equivalent adjustment - - 0.01 - - - 0.01 Net interest margin - taxable equivalent (non-GAAP) 3.60 % 3.52 % 3.49 % 3.35 % 3.39 % 3.56 % 3.47 % SOURCE: Avidbank Holdings, Inc. View the original press release on ACCESS Newswire Categories: Press Releases View all news