EX-99.1 2 avbh-20250825xex99_1.htm EX-99.1

FOR IMMEDIATE RELEASE

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PRESS RELEASE

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Avidbank Holdings, Inc. Announces Financial Results for the Second Quarter of 202 5

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SAN JOSE, CA (Accesswire) – August 2 5, 20 2 5 – Avidbank Holdings, Inc. (NASDAQ: AVBH) announced net income for the second quarter of 202 5 of $5.8 million, or $0.75 per diluted share, compared to $5.4 million, or $0.7 1 per diluted share, for the first quarter of 202 5 and $3.5 million, or $0.46 per diluted share, for the second quarter of 202 4.

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Initial Public Offering

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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.

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Second Quarter 202 5 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 202 5, compared to 3.52% in the first quarter of 202 5.

| · |  | Return on average assets improved to 1.00% compared to 0.96% in the first quarter of 202 5 and 0.62% in the second quarter of 202 4.

| · |  | Loans increased $70.5 million, or 1 5% annualized, from March 3 1, 202 5 and $105.1 million, or 6%, from June 3 0, 202 4.

| · |  | Average deposits increased $8 6.2 million, or 18% annualized, from the first quarter of 202 5 and $214.9 million, or 1 2%, from the second quarter of 202 4.

| · |  | Nonperforming assets to total assets totaled 0.06% as of June 30, 2025 and March 31, 2025.

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“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.”

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“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.

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Income Statement

Net income totaled $5.8 million for the second quarter of 202 5, an increase of $361,000, or 27% annualized, from the first quarter of 202 5, and an increase of $2.3 million, or 67%, from the second quarter of 202 4. The primary contributor s to the improvement in net income compared to the first quarter of 202 5, were a $1.1 million in crease in interest and fees on loans, an increase of $367,000 in noninterest income and a decrease in noninterest expense of $23 3,000. Partially offsetting this increase was $925,000 in provision for credit losses during the second quarter of 2025. This in crease in provision for credit losses was primarily due to an increase in loans as of June 30, 2025 compared to March 31, 2025.

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Net interest income totaled $20.3 million for the second quarter of 202 5, an increase of $93 8,000, or 1 9% annualized, from the first quarter of 202 5, and an increase of $1.8 million, or 10%, from the second quarter of 202 4. N et interest margin was 3.60% in the second quarter of 202 5, an increase of 8 basis points compared to the first quarter of 202 5,

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

and a 21-basis-point increase compared to the second quarter of 202 4. 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.

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The yield on loans in the second quarter of 202 5 was 7.0 1%, a n in crease of 5 basis points from the first quarter of 202 5 and a decrease of 36 basis points from the second quarter of 202 4. The in crease 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.

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The cost of interest-bearing deposits in the second quarter of 202 5 was 3.54%, an increase of 3 basis points compared to the first quarter of 202 5 and a decrease of 57 basis points compared to the second quarter of 202 4. The cost of deposits in the second quarter of 202 5 was 2.78%, a n in crease of 2 basis points from the first quarter of 202 5 and a de crease of 31 basis points from the second quarter of 202 4.

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The provision for credit losses was $925,000 in the second quarter of 202 5, compared to $0 in the first quarter of 202 5 and $3.0 million in the second quarter of 202 4. The provision was higher in the second quarter of 202 5 compared to the first quarter primarily due to higher loan balances.

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Noninterest income was $1.5 million in the second quarter of 202 5 compared to $1.2 million in the first quarter of 202 5 and $1.1 million in the second quarter of 202 4. The second quarter of 202 5 included $273,000 from warrant and success fee income, partially offset by a decrease in other investments income due to fair value adjustments.

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Noninterest expense totaled $1 2.6 million for the second quarter of 202 5, compared to $12.8 million in the first quarter of 202 5 and $11.8 million in the second quarter of 202 4. 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, p artially offse t 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 14 9 full-time equivalent employees on June 3 0, 202 5, compared to 14 3 on March 3 1, 202 5.

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Balance Sheet

Total assets were $2.3 9 billion as of June 3 0, 202 5, compared to $2.3 2 billion as of March 3 1, 202 5, and $2.2 9 billion at June 3 0, 202 4. Cash and cash equivalents were $129.9 million on June 3 0, 202 5, compared to $125.0 million on March 3 1, 202 5, and $111.7 million on June 3 0, 202 4.

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L oans on June 3 0, 202 5, totaled $1.91 billion, an increase of $7 0.5 million, or 1 5% annualized, from March 3 1, 202 5, and an increase of $105.1 million, or 6%, from June 3 0, 202 4. The increase in loans during the second quarter of 202 5 included an increase of $5 1.1 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.

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The allowance for credit losses on loans was $1 9.6 million on June 3 0, 202 5, representing a n in crease of $902,000 from March 3 1, 202 5 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 1.1 5% on June 30, 2025, compared to 1.14% on March 31, 2025 and 1.36% as of June 30, 2024.

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Nonperforming loans to total loans was 0.0 7% on June 3 0, 302 5 unchanged from March 3 1, 202 5 and down 10 basis points from June 30, 2024.

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The available-for-sale securities portfolio totaled $292.8 million as of June 3 0, 202 5, compared to $296.6 million on March 3 1, 202 5, and $308.7 million as of June 3 0, 202 4. 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.

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D eposits were $2.00 billion on June 3 0, 202 5, a n in crease of $73.3 million, or 15% annualized, from March 3 1, 202 5 and an increase of 264.3 million, or 15% from June 30, 2024. The change in deposits during the second quarter of 202 5 included a $122.2 million in crease in interest-bearing checking, offset by a $61.9 million de crease in non-reciprocal brokered deposits. Quarterly average deposits for the second quarter of 202 5 were $1.97 billion, an increase of $86.2 million from the first quarter of 202 5, and an increase of $214.9 million from the second quarter of 202 4.

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Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

Short-term borrowings on June 3 0, 202 5, totaled $145.0 million, a de crease of $10.0 million, or 2 6% annualized, compared to March 3 1, 202 5, and a decrease of $185.0 million, or 56%, compared to June 30, 2024.

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Book value per share was $25.80 on June 3 0, 202 5, a n in crease of $0.95 compared to $24.85 on March 31, 202 5 and $21.77 as of June 30, 2024. Total shareholders’ equity was $204.4 million on June 3 0, 202 5, a n in crease of $7.8 million compared to March 3 1, 202 5 and an increase of $33.0 million from June 30, 2024. Th e 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.

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About Avidbank

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

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Non-GAAP Financial Measures

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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.

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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.

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Forward-Looking Statement s

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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

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Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

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.

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Cont act:

Patrick Oakes

Executive Vice President and Chief Financial Officer

408-200-7390

﻿IR@avidbank.com

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Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

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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% |  |  | 3.46%
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.

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Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

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AVIDBANK HOLDINGS, INC.
Consolidated Balance Sheets (Unaudited)
(In thousands)
﻿ | June 30, |  | March 31, |  | December 31, |  | September 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
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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
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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.

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6

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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

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7

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 $19.1 million and $18.8 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

8

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

﻿
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

9

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 $18.9 million and $19.5 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized

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10

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

AVIDBANK HOLDINGS, INC.
Asset Quality Data (Unaudited)
(In thousands)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | June 30, |  | March 31, |  | Dec. 31, |  | Sept. 30, |  | June 30, |  | As of/For the Year-to-Date Period Ended 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.

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11

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

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
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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
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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
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(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.

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12

Avidbank Holdings, Inc. Second Quarter 202 5 Financial Results Press Release

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AVIDBANK HOLDINGS, INC.
Non-GAAP P erformance and Financial Measures Reconciliation (Unaudited)
(In thousands)
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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. |
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﻿ |  | 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 |
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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 | %
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13