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

SAN JOSE, CA / ACCESS Newswire / October 26, 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 third quarter of 2026 of $10.2 million, or $0.94 per diluted share, compared to net income of $7.6 million, or $0.71 per diluted share, for the second quarter of 2026 and a net loss of $37.7 million, or $4.12 loss per diluted share, for the third quarter of 2025.

Third Quarter 2026 Highlights * Period-end loans, net of deferred fees, increased $58.4 million, or 10% annualized, from June 30, 2026 and $323.9 million, or 17%, from September 30, 2025. * Average deposits increased $283.8 million, or 51% annualized, from the second quarter of 2026 and $449.9 million, or 22%, from the third quarter of 2025. Period-end deposits increased $290.1 million, or 50% annualized, from June 30, 2026 and $562.9 million, or 27%, from September 30, 2025. * Return on average equity was 13.43% compared to 10.40% in the second quarter of 2026 and (63.19)% in the third quarter of 2025. Adjusted return on average equity ((1)) was 13.4% compared to 11.15 % in the second quarter of 2026 and 11.23% in the third quarter of 2025. * Return on average assets was 1.42% compared to 1.20% in the second quarter of 2026 and (6.35)% in the third quarter of 2025. Adjusted return on average assets ((1)) was 1.42% compared to 1.28% in the second quarter of 2026 and 1.13% in the third quarter of 2025. * Net interest margin was 4.07%, down 19 basis points from the second quarter of 2026 and up 17 basis points from the third quarter of 2025. * The efficiency ratio was 49.80% compared to 55.41% in the second quarter of 2026 and (35.28)% in the third quarter of 2025. The adjusted efficiency ratio ((1)) was 49.80% compared to 48.73% in the second quarter of 2026 and 55.72% in the third quarter of 2025. * Book value per share was $27.24 at September 30, 2026, an increase of $0.27 from June 30, 2026, and an increase of $2.24 from September 30, 2025. * Redeemed $22.0 million of callable subordinated notes and closed on a $30.0 million private placement of new subordinated notes. The new subordinated notes have a maturity date of September 1, 2036, and carry a fixed rate of interest of 7.00% for the first five years. * Non-performing loans to total loans increased to 0.70% as of September 30, 2026 compared to 0.65%and 0.14% at June 30, 2026 and September 30, 2025, respectively. Annualized net charge-offs to average loans totaled 0.00% for the third quarter of 2026 and 0.28% year-to-date 2026. Mark Mordell, Chairman and Chief Executive Officer stated, "We are very pleased with our third-quarter performance. We generated strong profitability while continuing to grow both loans and deposits, demonstrating the power of our ability to grow our franchise and the benefits of more consistent execution. The quarter's deposit growth was exceptionally strong. A significant amount of that deposit growth came from a temporary large client deposit that we expect to leave in the fourth quarter, but our bankers also delivered meaningful core deposit growth across the franchise. The temporary deposit contributed to net interest income but created some pressure on our net interest margin."