Avidbank Holdings, Inc. Announces Net Income for the First Quarter of 2025

Rhea-AI Summary

Avidbank Holdings (AVBH) reported Q1 2025 net income of $5.4 million ($0.71 per diluted share), compared to $6.5 million in Q4 2024 and $5.2 million in Q1 2024. Key highlights include:

- Book value per share increased to $24.85, up 22% annualized from Q4 2024
- Net interest margin expanded to 3.52% from 3.49% in Q4 2024
- Deposits grew by $38.1 million (8% annualized) from Q4 2024
- Loans decreased by $23.8 million (5% annualized) from Q4 2024

Credit quality remained strong with no charge-offs in Q1 2025 and nonperforming assets at 0.06%. Total assets reached $2.32 billion, with period-end deposits at $1.93 billion. The decrease in quarterly net income was primarily due to a $1.8 million increase in noninterest expense, partially offset by lower provision for credit losses.

Positive

• Book value per share increased 22% annualized to $24.85
• Net interest margin expanded to 3.52%
• Deposit growth of $38.1 million (8% annualized)
• Strong credit quality with no charge-offs and low nonperforming assets (0.06%)
• Criticized and classified loans decreased to 1.63% from 2.49%

Negative

• Net income decreased by $1.0 million from Q4 2024
• Loans decreased by $23.8 million (5% annualized)
• Noninterest expense increased by $1.8 million
• Loan yields decreased by 11 basis points from Q4 2024

SAN JOSE, CA / ACCESS Newswire / April 22, 2025 / Avidbank Holdings, Inc. (OTC PINK:AVBH) announced net income for the first quarter of 2025 of $5.4 million, or $0.71 per diluted share, compared to $6.5 million, or $0.84 per diluted share, for the fourth quarter of 2024 and $5.2 million, or $0.69 per diluted share, for the first quarter of 2024.

First Quarter 2025 Highlights

• Book value per share was $24.85, an increase of $1.28, or 22% annualized, from December 31, 2024, and an increase of $3.44, or 16% from March 31, 2024.

• Taxable equivalent net interest margin⁽¹⁾ expanded to 3.52% in the first quarter of 2025, compared to 3.49% in the fourth quarter of 2024.

• Period end deposits increased $38.1 million, or 8% annualized, from December 31, 2024, and $171.6 million, or 10%, from March 31, 2024.

• Loans decreased $23.8 million, or 5% annualized, from December 31, 2024, and increased $58.2 million, or 3%, from March 31, 2024.

• Annualized net charge-offs to average loans totaled -0.01% for the first quarter of 2025 compared to 0.93% for the fourth quarter of 2024. Nonperforming assets to total assets totaled 0.06% as of March 31, 2025 and December 31, 2024.

"We are pleased with a solid start to 2025, which highlights our continued focus of strengthening our balance sheet and improving our performance metrics. Our first quarter results include deposit growth of $38 million, an expanding net interest margin, and we believe excellent overall credit quality. The net interest margin expanded to 3.52% in the first quarter as we have continued to decrease deposit costs. Credit quality continued to be strong, with no charge-offs in the first quarter and nonperforming assets totaling only 6 basis points of total loans," said Mark D. Mordell, Chairman and Chief Executive Officer.

"Although we had solid loan originations in the first quarter, we also had an elevated level of payoffs, particularly in our Construction and Specialty Finance divisions. These payoffs included the completion and sale of several construction projects, along with the payoffs of a few problem loans. Criticized and classified loans have decreased to 1.6% of total loans, compared to 2.5% at year-end," added Mr. Mordell.

Income Statement

Net income totaled $5.4 million for the first quarter of 2025, a decrease of $1.0 million from the fourth quarter of 2024, and an increase of $190,000 from the first quarter of 2024. A $1.8 million increase in noninterest expense was a primary contributor to the reduction in net income compared to the fourth quarter of 2024, offset by a decrease in the provision for credit losses.

Taxable equivalent net interest income⁽¹⁾ totaled $19.4 million for the first quarter of 2025, an increase of $155,000, or 3% annualized, from the fourth quarter of 2024, and an increase of $470,000, or 2%, from the first quarter of 2024. The taxable equivalent net interest margin was 3.52% in the first quarter of 2025, an increase of 3 basis points compared to the fourth quarter of 2024, and down 2 basis points compared to the first quarter of 2024. The increase in taxable equivalent net interest margin compared to the prior quarter was primarily driven by a lower cost of deposits and lower rates on short-term borrowings. As of December 30, 2024, the $22 million of subordinated debt repriced from a fixed rate of 5.00% to quarterly floating rate of SOFR plus 359.5 basis points, or 7.91%.

The yield on loans in the first quarter of 2025 was 6.96%, a decrease of 11 basis points from the fourth quarter of 2024 and a decrease of 32 basis points from the first quarter of 2024. The overall decrease in loan yields compared to prior periods was primarily driven by the reduction in the Prime rate.

The cost of interest-bearing deposits in the first quarter of 2025 was 3.51% compared to 3.79% in the fourth quarter of 2024 and 3.90% in the first quarter of 2024, a decrease of 28 basis points and 39 basis points, respectively. The cost of deposits in the first quarter of 2025 was 2.76%, a decrease of 18 basis points from the fourth quarter of 2024 and a decrease of 5 basis points from the first quarter of 2024.

The provision for credit losses was $0 in the first quarter of 2025, compared to $779,000 in the fourth quarter of 2024 and $319,000 in the first quarter of 2024. The provision was lower in the first quarter of 2025 compared to the fourth quarter of 2024 primarily due to lower loan balances.

Noninterest income was $1.2 million in the first quarter of 2025 compared to $1.8 million in the fourth quarter of 2024 and $1.3 million in the first quarter of 2024. The fourth quarter of 2024 included income of $637,000 from fund investments and $150,000 in final proceeds from the settlement related to a previously sold foreclosed property.

Noninterest expense totaled $12.8 million for the first quarter of 2025, an increase of $1.8 million compared to the fourth quarter of 2024, and an increase of $415,000 from the first quarter of 2024. The increase from the fourth quarter was primarily due to higher incentive expense and seasonally higher payroll taxes. The first quarter of 2025 also included $222,000 in severance expense. There were 143 full-time equivalent employees on March 31, 2025, compared to 148 on December 31, 2024.

Balance Sheet

Total assets were $2.32 billion as of March 31, 2025, compared to $2.30 billion as of December 31, 2024, and $2.26 billion at March 31, 2024. Cash and cash equivalents were $125.0 million on March 31, 2025, compared to $82.7 million on December 31, 2024, and $90.2 million on March 31, 2024.

Period end loans on March 31, 2025, totaled $1.84 billion, a decrease of $23.8 million, or 5% annualized, from December 31, 2024, and an increase of $58.2 million, or 3%, from March 31, 2024. The decrease in loans during the first quarter of 2025 included a decrease of $19.7 million in construction and land loans and a $13.0 million decrease in commercial and industrial loans, offset by a $11.0 million increase in multi-family loans. Quarterly average loans for the first quarter of 2025 increased $42.8 million, or 2%, from the fourth quarter of 2024 and increased $101.9 million, or 6%, from the first quarter of 2024.

The allowance for credit losses on loans was $18.7 million on March 31, 2025, representing an increase of $43,000 from December 31, 2024. The allowance for credit losses - loans and unfunded commitments to total loans was 1.14% on March 31, 2025, compared to 1.12% on December 31, 2024.

Nonperforming loans to total loans was 0.07% on March 31, 2024 compared to 0.07% at December 31, 2024. Criticized and classified loans were 1.63% of total loans, compared to 2.49% as of December 31, 2024.

The available-for-sale securities portfolio totaled $296.6 million as of March 31, 2025, compared to $296.6 million on December 31, 2024, and $314.8 million as of March 31, 2024. The unrealized loss for the available-for-sale portfolio totaled $65.6 million as of March 31, 2025, compared to $72.6 million as of December 31, 2024 and $74.1 million as of March 31, 2024.

Period end deposits were $1.93 billion on March 31, 2025, an increase of $38.1 million, or 8% annualized, from December 31, 2024. The change in deposits during the first quarter of 2025 included a $60.4 million increase in money market and savings deposits, offset by a $27.8 million decrease in interest-bearing checking deposits. Quarterly average deposits for the first quarter of 2025 were $1.89 billion, a decrease of $8.3 million from the fourth quarter of 2024, and an increase of $161.1 million from the first quarter of 2024.

Short-term borrowings on March 31, 2025, totaled $155.0 million, compared to $185 million as of December 31, 2024 and $290 million as of March 31, 2024.

Book value per share was $24.85 on March 31, 2025, an increase of $1.28 compared to $23.57 on December 31, 2024. Total shareholders' equity was $196.6 million on March 31, 2025, an increase of $10.3 million compared to December 31, 2024. This included an increase in retained earnings of $5.4 million and a decrease in accumulated other comprehensive loss of $5.0 million compared to December 31, 2024.

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

About Avidbank

Avidbank Holdings, Inc. (OTC PINK: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 in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company's current quarter and year-to-date results and facilitate comparison of our performance with the performance of our peers. Where applicable, the Company has also presented comparable earnings information using GAAP financial measures. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This press release contains, and any accompanying oral statements by us and our management may contain, forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "strive," "intend," "plan" or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: uncertain market conditions and economic trends nationally, regionally and particularly in the Bay Area (which we define as the California counties of Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma) and California generally; 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; effects of any actions we may take with respect to our asset or liability portfolios; 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; and our success at managing any of the risks involved in the foregoing items.

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 and statements contained in this press release. Therefore, we caution you not to place undue reliance on our forward-looking information and statements. We disclaim any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Contact:

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

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

		2025				2024
		First				Fourth				Third				Second				First
		Quarter				Quarter				Quarter				Quarter				Quarter
INCOME HIGHLIGHTS
Net income		$	5,436			$	6,457			$	5,846			$	3,466			$	5,246
PER SHARE DATA
Basic earnings per share		$	0.73			$	0.87			$	0.79			$	0.47			$	0.71
Diluted earnings per share			0.71				0.84				0.77				0.46				0.69
Book value per share			24.85				23.57				23.95				21.77				21.41
PERFORMANCE MEASURES
Return on average assets(1)			0.96	%			1.14	%			1.02	%			0.62	%			0.95	%
Return on average equity(1)			11.49	%			13.65	%			12.97	%			8.35	%			12.64	%
Net interest margin			3.52	%			3.48	%			3.35	%			3.39	%			3.54	%
Taxable equivalent net interest margin(2)			3.52	%			3.49	%			3.35	%			3.39	%			3.54	%
Efficiency ratio			62.57	%			52.53	%			59.29	%			59.92	%			61.62	%
Average loans to average deposits			98.55	%			95.86	%			99.90	%			103.19	%			101.85	%
CAPITAL
Tier 1 leverage ratio			10.39	%			10.35	%			9.93	%			9.64	%			9.88	%
Common equity tier 1 capital ratio			11.10	%			10.59	%			10.75	%			10.08	%			10.03	%
Tier 1 risk-based capital ratio			11.10	%			10.59	%			10.75	%			10.08	%			10.03	%
Total risk-based capital ratio			12.86	%			12.30	%			12.92	%			12.17	%			12.01	%
Tangible common equity ratio			8.48	%			8.09	%			8.21	%			7.50	%			7.40	%
SHARES OUTSTANDING
Number of common shares outstanding			7,912,184				7,906,761				7,871,818				7,876,082				7,803,900
Average common shares outstanding - basic			7,488,051				7,455,650				7,434,726				7,426,949				7,386,639
Average common shares outstanding - diluted			7,682,884				7,661,711				7,622,428				7,578,613				7,551,406
ASSET QUALITY
Total allowance for credit losses-loans and unfunded commitments			1.14	%			1.12	%			1.37	%			1.36	%			1.21	%
Nonperforming assets to total assets			0.06	%			0.06	%			0.16	%			0.16	%			0.06	%
Nonperforming loans to total loans			0.07	%			0.07	%			0.20	%			0.20	%			0.08	%
Net charge-offs to average loans (1)			-0.01	%			0.93	%			0.02	%			0.00	%			0.00	%
AVERAGE BALANCES
Loans, net of deferred loan fees		$	1,858,716			$	1,815,933			$	1,804,107			$	1,813,422			$	1,756,770
Investment securities			296,422				308,502				311,450				307,294				319,440
Total assets			2,289,935				2,250,086				2,272,623				2,265,583				2,222,778
Deposits			1,885,993				1,894,321				1,805,935				1,757,320				1,724,845
Shareholders' equity			191,891				188,170				179,260				166,874				166,907
(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)

		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
Assets		2025				2024				2024				2024				2024
Cash and due from banks		$	18,866			$	8,662			$	15,172			$	13,750			$	9,971
Due from Federal Reserve Bank
and interest-bearing deposits in banks			106,135				74,039				121,361				97,974				80,208
Total cash and cash equivalents			125,001				82,701				136,533				111,724				90,179
Investment securities - available-for-sale			296,617				296,556				316,741				308,661				314,793
Total investment securities			296,617				296,556				316,741				308,661				314,793
Loans, net of deferred loan fees			1,841,187				1,864,942				1,786,756				1,806,607				1,783,024
Allowance for credit losses on loans			(18,722	)			(18,679	)			(22,315	)			(22,410	)			(19,342	)
Loans, net of allowance for credit losses on loans			1,822,465				1,846,263				1,764,441				1,784,197				1,763,682
Bank owned life insurance			12,764				12,674				12,580				12,490				12,401
Premises and equipment, net			2,118				2,331				2,549				2,810				3,061
Accrued interest receivable and other assets			60,957				63,963				62,625				67,139				72,395
Total assets		$	2,319,922			$	2,304,488			$	2,295,469			$	2,287,021			$	2,256,511
Liabilities and Shareholders' Equity
Deposits:
Non-interest-bearing demand		$	419,823			$	414,327			$	405,528			$	405,644			$	477,728
Interest-bearing checking			965,467				993,219				1,026,898				840,839				764,766
Money market and savings			399,010				338,578				336,166				312,162				319,692
Time			58,273				74,468				75,033				99,239				56,140
Brokered(1)			86,915				70,763				57,903				80,608				139,532
Total deposits			1,929,488				1,891,355				1,901,528				1,738,492				1,757,858
Subordinated debt, net			22,000				22,000				21,982				21,957				21,931
Short-term borrowings			155,000				185,000				160,000				330,000				290,000
Accrued interest payable and other liabilities			16,815				19,771				23,438				25,123				19,638
Total liabilities			2,123,303				2,118,126				2,106,948				2,115,572				2,089,427
Shareholders' Equity
Common stock			106,839				106,997				106,169				105,487				104,771
Retained earnings			136,139				130,703				124,246				118,400				114,934
Accumulated other comprehensive (loss)			(46,359	)			(51,338	)			(41,894	)			(52,438	)			(52,621	)
Total shareholders' equity			196,619				186,362				188,521				171,449				167,084
Total liabilities and shareholders' equity		$	2,319,922			$	2,304,488			$	2,295,469			$	2,287,021			$	2,256,511
(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, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, an additional $447.8 million, $470.0 million, $509.3 million, $440.6 million and $336.2 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)

		Three months ended
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Interest and fees on loans		$	31,885			$	32,308			$	33,488			$	33,255			$	31,828
Interest on investment securities			1,749				1,770				1,767				1,801				1,824
Federal Home Loan Bank dividends			185				185				183				193				190
Other interest income			706				681				1,198				951				819
Total interest income			34,525				34,944				36,636				36,200				34,661
Deposit interest expense			12,827				14,015				14,602				13,494				12,034
Interest on short-term borrowings			1,911				1,437				3,121				3,880				3,442
Interest on subordinated debt			435				293				300				300				300
Total interest expense			15,173				15,745				18,023				17,674				15,776
Net interest income			19,352				19,199				18,613				18,526				18,885
Provision for credit losses			-				779				-				2,998				319
Net interest income after
provision for credit losses			19,352				18,420				18,613				15,528				18,566
Service charges and bank fees			762				649				675				658				618
Foreign exchange income			220				191				246				208				251
Income from bank owned life insurance			90				93				90				137				187
Warrant and success fee income			-				65				-				-				-
Other investment income			47				637				240				59				155
Other income			52				205				539				36				72
Total noninterest income			1,171				1,840				1,790				1,098				1,283
Salaries and benefit expenses			9,097				7,389				8,336				7,980				8,794
Occupancy and equipment expenses			996				919				1,033				1,039				1,028
Data processing			615				613				638				597				564
Regulatory assessments			544				541				528				568				446
Legal and professional fees			511				452				534				541				611
Other operating expenses			1,079				1,138				1,028				1,033				984
Total noninterest expense			12,842				11,052				12,097				11,758				12,427
Income before income taxes			7,681				9,208				8,306				4,868				7,422
Provision for income taxes			2,245				2,751				2,460				1,402				2,176
Net income		$	5,436			$	6,457			$	5,846			$	3,466			$	5,246
Basic earnings per common share		$	0.73			$	0.87			$	0.79			$	0.47			$	0.71
Diluted earnings per common share			0.71				0.84				0.77				0.46				0.69
Weighted average shares - basic			7,488,051				7,455,650				7,434,726				7,426,949				7,386,639
Weighted average shares - diluted			7,682,884				7,661,711				7,622,428				7,578,613				7,551,406

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

		Three months ended
		March 31, 2025												December 31, 2024
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates(5)				Balance				Expense				Rates(5)
Assets
Interest earning assets:
Loans(1)		$	1,858,716			$	31,885				6.96	%		$	1,817,101			$	32,308				7.07	%
Fed funds sold/interest bearing deposits			64,376				706				4.45	%			57,698				681				4.70	%
Investment securities
Taxable investment securities			293,736				1,718				2.37	%			305,963				1,741				2.26	%
Non-taxable investment securities(2)			2,686				39				5.84	%			2,539				36				5.64	%
Total investment securities			296,422				1,757				2.40	%			308,502				1,777				2.29	%
FHLB stock			8,409				185				8.92	%			8,409				185				8.75	%
Total interest-earning assets			2,227,923				34,533				6.29	%			2,191,710				34,951				6.34	%
Noninterest-earning assets:
Cash and due from banks			12,851												14,016
All other assets(3)			49,161												44,360
Total assets		$	2,289,935											$	2,250,086
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	956,994			$	8,530				3.61	%		$	994,121			$	9,840				3.94	%
Money market and savings			385,434				2,871				3.02	%			351,126				2,794				3.17	%
Time			60,282				558				3.75	%			77,203				744				3.83	%
Brokered			77,537				868				4.54	%			49,064				637				5.16	%
Total interest-bearing deposits			1,480,247				12,827				3.51	%			1,471,514				14,015				3.79	%
Short-term borrowings			170,111				1,911				4.56	%			119,707				1,437				4.78	%
Subordinated debt			22,000				435				8.02	%			21,993				293				5.30	%
Total interest-bearing liabilities			1,672,358				15,173				3.68	%			1,613,214				15,745				3.88	%
Noninterest-bearing liabilities:
Demand deposits			405,746												422,807
Accrued expenses and other liabilities			19,940												25,895
Shareholders' equity			191,891												188,170
Total liabilities and
shareholders' equity		$	2,289,935											$	2,250,086
Net interest spread											2.61	%											2.46	%
Net interest income and margin(4)						$	19,360				3.52	%						$	19,206				3.49	%
Non-taxable equivalent net interest margin											3.52	%											3.48	%
Cost of deposits		$	1,885,993			$	12,827				2.76	%		$	1,894,321			$	14,015				2.94	%
(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 $496 thousand and $491 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) Average allowance for credit losses on loans of $ 18.8 million and $22.2 million, respectively, is included as a contra asset. (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)
(dollars in thousands)

		Three months ended
		March 31, 2025												March 31, 2024
						Interest				Yields								Interest				Yields
		Average				Income/				or				Average				Income/				or
		Balance				Expense				Rates(5)				Balance				Expense				Rates(5)
Assets
Interest earning assets:
Loans(1)		$	1,858,716			$	31,885				6.96	%		$	1,758,201			$	31,828				7.28	%
Fed funds sold/interest bearing deposits			64,376				706				4.45	%			59,391				819				5.46	%
Investment securities
Taxable investment securities			293,736				1,718				2.37	%			317,572				1,802				2.28	%
Non-taxable investment securities(2)			2,686				39				5.84	%			1,868				28				5.93	%
Total investment securities			296,422				1,757				2.40	%			319,440				1,830				2.30	%
FHLB stock			8,409				185				8.92	%			8,409				190				9.11	%
Total interest-earning assets			2,227,923				34,533				6.29	%			2,145,441				34,667				6.50	%
Noninterest-earning assets:
Cash and due from banks			12,851												13,038
All other assets(3)			49,161												64,299
Total assets		$	2,289,935											$	2,222,778
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Deposits
Demand		$	956,994			$	8,530				3.61	%		$	746,916			$	7,439				4.01	%
Money market and savings			385,434				2,871				3.02	%			303,593				2,270				3.01	%
Time			60,282				558				3.75	%			56,783				555				3.93	%
Brokered			77,537				868				4.54	%			134,453				1,770				5.29	%
Total interest-bearing deposits			1,480,247				12,827				3.51	%			1,241,745				12,034				3.90	%
Short-term borrowings			170,111				1,911				4.56	%			282,066				3,442				4.91	%
Subordinated debt			22,000				435				8.02	%			21,917				300				5.51	%
Total interest-bearing liabilities			1,672,358				15,173				3.68	%			1,545,728				15,776				4.10	%
Noninterest-bearing liabilities:
Demand deposits			405,746												483,100
Accrued expenses and other liabilities			19,940												27,043
Shareholders' equity			191,891												166,907
Total liabilities and
shareholders' equity		$	2,289,935											$	2,222,778
Net interest spread											2.61	%											2.40	%
Net interest income and margin(4)						$	19,360				3.52	%						$	18,891				3.54	%
Non-taxable equivalent net interest margin											3.52	%											3.54	%
Cost of deposits		$	1,885,993			$	12,827				2.76	%		$	1,724,845			$	12,034				2.81	%
(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 $496 thousand and $455 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) Average allowance for credit losses on loans of $18.8 million and $19.1 million, respectively, is included as a contra asset. (4) Net interest margin is net interest income divided by total interest-earning assets. (5) Annualized

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

		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Allowance for Credit Losses on Loans
Balance, beginning of quarter		$	18,679			$	22,315			$	22,410			$	19,342			$	19,131
Provision for credit losses on loans			-				630				-				3,068				211
Charge-offs			-				(4,266	)			(95	)			-				-
Recoveries			43				-				-				-				-
Balance, end of quarter		$	18,722			$	18,679			$	22,315			$	22,410			$	19,342
Allowance for Credit Losses on Unfunded Commitments
Balance, beginning of quarter		$	2,247			$	2,098			$	2,098			$	2,168			$	2,060
Provision for unfunded commitments			-				149				-				(70	)			108
Balance, end of quarter		$	2,247			$	2,247			$	2,098			$	2,098			$	2,168
Total allowance for credit losses
- loans and unfunded commitments		$	20,969			$	20,926			$	24,413			$	24,508			$	21,510
Provision for credit losses under CECL
Provision for credit losses on loans		$	-			$	630			$	-			$	3,068			$	211
Provision for unfunded commitments			-				149				-				(70	)			108
Total provision for credit losses		$	-			$	779			$	-			$	2,998			$	319
Nonperforming Assets
Loans accounted for on a non-accrual basis		$	1,340			$	1,347			$	3,621			$	3,686			$	1,370
Loans past due 90 days or more and still accruing			-				-				-				-				-
Nonperforming loans			1,340				1,347				3,621				3,686				1,370
Other real estate owned			-				-				-				-				-
Nonperforming assets		$	1,340			$	1,347			$	3,621			$	3,686			$	1,370
Nonperforming Loans by Type:
Commercial		$	1,340			$	1,347			$	3,621			$	3,686			$	1,370
Total Nonperforming loans		$	1,340			$	1,347			$	3,621			$	3,686			$	1,370
Asset Quality Ratios
Allowance for credit losses on loans to total loans			1.02	%			1.00	%			1.25	%			1.24	%			1.08	%
Total allowance for credit losses-loans
and unfunded commitments			1.14	%			1.12	%			1.37	%			1.36	%			1.21	%
Allowance for credit losses on
loans to nonperforming loans			1397.16	%			1386.71	%			616.27	%			607.98	%			1411.82	%
Nonperforming assets to total assets			0.06	%			0.06	%			0.16	%			0.16	%			0.06	%
Nonperforming loans to total loans			0.07	%			0.07	%			0.20	%			0.20	%			0.08	%
Net quarterly charge-offs to average loans(1)			-0.01	%			0.93	%			0.02	%			0.00	%			0.00	%
Criticized loans to total loans			1.43	%			2.27	%			1.62	%			1.49	%			1.40	%
Classified loans to total loans			0.20	%			0.22	%			0.51	%			0.52	%			0.39	%
(1) Annualized

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

																						Current				Year over
		March 31,				Dec. 31,				Sept. 30,				June 30,				March 31,				Quarter				Year
		2025				2024				2024				2024				2024				Change				Change
Period End Loans
Commercial and industrial loans		$	803,920			$	816,963			$	759,492			$	774,666			$	736,068			$	(13,043	)		$	67,852
Commercial real estate
Multi-family			227,003				216,018				199,929				202,292				203,170				10,985				23,833
Owner Occupied			142,764				142,650				141,139				157,376				158,759				114				(15,995	)
Non-Owner Occupied			405,788				414,551				406,007				412,473				408,758				(8,763	)			(2,970	)
Construction and land			226,641				246,301				253,325				242,966				259,562				(19,660	)			(32,921	)
Residential			32,985				27,494				25,799				15,717				16,187				5,491				16,798
Total real estate loans			1,035,181				1,047,014				1,026,199				1,030,824				1,046,436				(11,833	)			(11,255	)
Other loans			2,086				965				1,065				1,117				520				1,121				1,566
Total loans		$	1,841,187			$	1,864,942			$	1,786,756			$	1,806,607			$	1,783,024			$	(23,755	)		$	58,163
Period End Deposits
Non-interest-bearing demand		$	419,823			$	414,327			$	405,528			$	405,644			$	477,728			$	5,496			$	(57,905	)
Interest-bearing checking			965,467				993,219				1,026,898				840,839				764,766				(27,752	)			200,701
Money market and savings			399,010				338,578				336,166				312,162				319,692				60,432				79,318
Time			58,273				74,468				75,033				99,239				56,140				(16,195	)			2,133
Brokered(1)			86,915				70,763				57,903				80,608				139,532				16,152				(52,617	)
Total deposits		$	1,929,488			$	1,891,355			$	1,901,528			$	1,738,492			$	1,757,858			$	38,133			$	171,630
Average Deposits
Non-interest-bearing demand		$	405,746			$	422,807			$	408,626			$	436,498			$	483,100			$	(17,061	)		$	(77,354	)
Interest-bearing checking			956,994				994,121				903,542				783,048				746,916				(37,127	)			210,078
Money market and savings			385,434				351,126				348,125				304,392				303,593				34,308				81,841
Time			60,282				77,203				75,972				97,430				56,783				(16,921	)			3,499
Brokered			77,537				49,064				69,670				135,952				134,453				28,473				(56,916	)
Total deposits		$	1,885,993			$	1,894,321			$	1,805,935			$	1,757,320			$	1,724,845			$	(8,328	)		$	161,148
(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, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, an additional $447.8 million, $470.0 million, $509.3 million, $440.6 million and $336.2 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, except share and per share amounts)

		2025				2024
		First				Fourth				Third				Second				First
		Quarter				Quarter				Quarter				Quarter				Quarter
Non-GAAP taxable equivalent
net interest income reconciliation
Net interest income - GAAP		$	19,352			$	19,199			$	18,613			$	18,526			$	18,885
Taxable equivalent adjustment			8				7				6				5				6
Net interest income - taxable equivalent (non-GAAP)		$	19,360			$	19,206			$	18,619			$	18,531			$	18,891
Non-GAAP taxable equivalent
net interest margin reconciliation
Net interest margin - GAAP			3.52	%			3.48	%			3.35	%			3.39	%			3.54	%
Impact of taxable equivalent adjustment			-				0.01				-				-				-
Net interest margin - taxable equivalent (non-GAAP)			3.52	%			3.49	%			3.35	%			3.39	%			3.54	%

SOURCE: Avidbank Holdings, Inc.

View the original press release on ACCESS Newswire

FAQ

What was Avidbank Holdings (AVBH) earnings per share in Q1 2025?

AVBH reported earnings of $0.71 per diluted share in Q1 2025.

How much did AVBH's deposits grow in Q1 2025?

Deposits increased by $38.1 million, or 8% annualized, from December 31, 2024.

What is AVBH's current book value per share?

Book value per share was $24.85 as of March 31, 2025, representing a $1.28 increase from December 31, 2024.

How did AVBH's loan portfolio perform in Q1 2025?

Loans decreased by $23.8 million (5% annualized) from Q4 2024, with notable decreases in construction and commercial loans.

What was AVBH's credit quality status in Q1 2025?

Credit quality was strong with no charge-offs, nonperforming assets at 0.06%, and criticized loans decreasing to 1.63% of total loans.