EX-99.1 2 avbh-20251023xex99_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 Third Quarter of 202 5

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SAN JOSE, CA (A CCESS News wire) – October 2 3, 20 2 5 – Avidbank Holdings, Inc. (NASDAQ: AVBH) (the “Company” or “Avidbank Holdings”), the holding company for Avidbank, a California state-chartered bank (the “Bank”), announced a net loss for the third quarter of 202 5 of $37.7 million, or ($4.12) per diluted share, compared to net income of $5.8 million, or $0.7 5 per diluted share, for the second quarter of 202 5 and $5.8 million, or $0.77 per diluted share, for the third quarter of 202 4. Results for the third quarter included a $62.4 million loss on the sale of available-for-sale securities. Excluding that item, a djusted net income(1) totaled $6.7 million, or $0.72 per adjusted diluted share(1) for the third quarter of 2025.

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Significant events for the third quarter of 2025 included the following:

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| · |  | In August 2025, the Company completed an initial public offering (“IPO”) 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 $6 1.3 million.

| · |  | Sold $274.7 million in available-for-sale securities for a loss of $62.4 million; p urchased $163.2 million in available-for-sale securities with a n average purchase yield of 4.54% and a duration of 2.8 years; and p aid off short-term borrowings using proceeds from the IPO and securities sales.

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Third Quarter 202 5 Highlights

| · |  | Net interest margin expanded to 3.90% in the third quarter of 2025, compared to 3.60% in the second quarter of 2025.

| · |  | Return on average assets was (6.35%) compared to 1.00% in the second quarter of 202 5 and 1.02% in the third quarter of 202 4. Excluding the loss from the sale of available-for-sale securities, adjusted return on average assets(1) improved to 1.13% in the third quarter of 2025 compared to 1.00% in the prior quarter.

| · |  | Period-end loans, net of deferred loan fees increased $46.9 million, or 10% annualized, from June 3 0, 202 5 and $171.8 million, or 10%, from September 3 0, 202 4.

| · |  | Average deposits increased $72.0 million, or 1 5% annualized, from the second quarter of 202 5 and $238.3 million, or 1 3%, from the third quarter of 202 4.

| · |  | The efficiency ratio was (35.28%) compared to 57.77% in the second quarter of 2025 and 59.29% in the third quarter of 2024. Excluding the loss from the sale of available-for-sale securities, the adjusted efficiency ratio(1) improved to 55.72% in the third quarter.

| · |  | Book value per share was $25.00 at September 30, 2025, a decrease of $0.80 from June 30, 2025, and an increase of $1.05 from September 30, 2024.

| · |  | Nonperforming assets to total assets totaled 0.12% as of September 30, 2025 compared to 0.06% at June 30, 2025 and 0.16% at September 30, 2024.

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“The third quarter of 2025 was pivotal for Avidbank as we completed our successful IPO which enabled us to reposition our securities portfolio and position Avidbank for future long-term success,” said Mark D. Mordell, Chairman and C hief Executive Officer. “In addition to the IPO, we believe our strong loan and deposit growth and improved profitability reflect the strength of our franchise and the trust we’ve built with our clients. While the repositioning of our securities portfolio impacted third quarter results, it should significantly enhance our future profitability. We are optimistic about the opportunities ahead and remain focused on delivering sustainable growth and value for our shareholders."

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

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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Resul t s of Operations

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Net interest income totaled $2 2.7 million for the third quarter of 202 5, an increase of $2.4 million, or 4 6% annualized, from the second quarter of 202 5, and an increase of $4.0 million, or 22%, from the third quarter of 202 4. N et interest margin was 3.9 0% in the third quarter of 202 5, an increase of 30 basis points compared to the second quarter of 202 5, and a 55-basis-point increase compared to the third quarter of 202 4. The increase in net interest margin compared to the prior quarter was primarily driven by lower average short-term borrowings, an increase in average noninterest-bearing demand deposits, and lower cost of deposits as well as improvement in interest income due to the sale of low-yielding securities as part of the repositioning of our available-for-sale securities portfolio.

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The yield on securities increased in the third quarter of 2025 to 2.55% compared to 2.34% in the second quarter of 2025 and 2.26% in the third quarter of 2024 due to the sale of lower-yielding available-for-sale securities during the third quarter of 2025. The yield on loans in the third quarter of 202 5 was 6.98%, a de crease of 3 basis points from the second quarter of 202 5 and a decrease of 40 basis points from the third quarter of 202 4. The de crease in loan yields was driven by reduction s in the p rime rate. The yield on interest-earning assets increased 10 basis points during the third quarter of 2025 compared to the second quarter of 2025 while overall funding costs declined by 9 basis points.

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The cost of interest-bearing deposits in the third quarter of 202 5 was 3.5 0%, a de crease of 4 basis points compared to the second quarter of 202 5 and a decrease of 66 basis points compared to the third quarter of 202 4. The cost of deposits in the third quarter of 202 5 was 2.67%, a de crease of 11 basis points from the second quarter of 202 5 and a de crease of 55 basis points from the third quarter of 202 4.

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The provision for credit losses was $1.4 million in the third quarter of 202 5, compared to $925,000 in the second quarter of 202 5 and $0 in the thir d quarter of 202 4. The provision was higher in the third quarter of 202 5 compared to the second quarter primarily due to higher loan balances and the addition of one nonaccrual loan.

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Noninterest income was ($60.9) million in the thir d quarter of 202 5 compared to $1.5 million in the second quarter of 202 5 and $1.8 million in the thir d quarter of 202 4. The third quarter of 202 5 included a $62.4 million loss on the sale of securities resulting from the repositioning of the available-for-sale securities portfolio, partially offset by a n in crease in other investments income due to fair value adjustments and distributions.

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Noninterest expense totaled $13.5 million for the third quarter of 202 5, compared to $12.6 million in the second quarter of 202 5 and $12.1 million in the thir d quarter of 202 4. The in crease from the second quarter was primarily due to highe r salaries and benefits expense driven by an increase in incentives expense, IPO-related expenses and low er capitalized loan origination costs during the thir d quarter of 2025. P artially offsetting the increase in noninterest expense was a decrease in legal and professional fees of $124,000 due to elevated expense related to proxy matters along with general corporate and securities matters in the second quarter of 2025. There were 1 51 full-time equivalent employees on September 3 0, 202 5, compared to 14 9 on June 3 0, 202 5.

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Financia l Condition

Total assets were $2.3 6 billion as of September 3 0, 202 5, compared to $2.3 9 billion as of June 3 0, 202 5, and $2.30 billion at September 3 0, 202 4. Cash and cash equivalents were $177.3 million on September 3 0, 202 5, compared to $12 9.9 million on June 3 0, 202 5, and $136.5 million on September 3 0, 202 4.

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L oans, net of deferred loan fees, on September 3 0, 202 5, totaled $1.9 6 billion, an increase of $46.9 million, or 1 0% annualized, from June 3 0, 202 5, and an increase of $171.8 million, or 10%, from September 3 0, 202 4. The increase in loans during the third quarter of 202 5 included an increase of $16.5 million in commercial and industrial loans, $8.4 million in multi-family loans and $7.8 million in owner occupied loans.

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The allowance for credit losses on loans was $21.0 million on September 3 0, 202 5, representing a n in crease of $1.4 million from June 3 0, 202 5 and a decrease of $1.3 million compared to September 30, 2024. The allowance for credit losses – loans and unfunded commitments to total loans was 1.1 9% on September 30, 2025, compared to 1.1 5% on June 3 0, 2025 and 1.3 7% as of September 30, 2024. Nonperforming loans to total loans was 0.14% at September 3 0, 302 5, up 7 basis points compared to June 3 0, 202 5 and down 6 basis points from September 30, 2024.

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The available-for-sale securities portfolio totaled $173.6 million as of September 3 0, 202 5, compared to $292.8 million at June 3 0, 202 5, and $316.7 million as of September 3 0, 202 4. The net unrealized loss for the available-for-sale portfolio totaled $689,000 as of September 30, 2025, compared to $63.4 million at June 3 0, 2025 and $59.0 million as of September 30, 2024. The decrease during the third quarter of 2025 was due to the sale of securities resulting from repositioning our available-for-sale securities portfolio.

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Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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D eposits were $2.05 billion on September 3 0, 202 5, a n in crease of $46.4 million, or 9% annualized, from June 3 0, 202 5, and an increase of $147.6 million, or 8% from September 30, 2024. The change in deposits during the third quarter of 202 5 included a $65.3 million increase in money market and savings and an increase of $28.2 million in noninterest-bearing demand deposits, partially offset by a n $18.3 million de crease in interest-bearing checking and a $25.0 million de crease in non-reciprocal brokered deposits. Quarterly average deposits for the thir d quarter of 202 5 were $2.04 billion, an increase of $72.0 million from the second quarter of 202 5, and an increase of $238.3 million from the third quarter of 202 4. Average noninterest-bearing demand deposits increased $57.7 million compared to the second quarter of 2025.

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There were no s hort-term borrowings outstanding at September 3 0, 202 5, compared to $145.0 million at June 3 0, 202 5, and $160.0 million at September 30, 2024. Part of the proceeds from the IPO and the sale of securities during the third quarter of 2025 were used to pay off outstanding short-term borrowings. Average short-term borrowings decreased $74.9 million in the third quarter of 2025 compared to the second quarter of 2025.

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Book value per share was $25.0 0 on September 3 0, 202 5, a de crease of $0.80 compared to June 3 0, 202 5, and an increase of $1.05 compared to September 30, 2024. The decrease was due to new shares issued as part of the IPO during the third quarter of 2025. Total shareholders’ equity was $273.1 million on September 3 0, 202 5, a n in crease of $68.7 million compared to June 3 0, 202 5, and an increase of $84.6 million from September 30, 2024. Th e change from June 3 0, 2025 to September 30, 2025 included net proceeds from the IPO totaling $61.3 million, a de crease in retained earnings of $37.7 million off s et by a n i mprovement in accumulated other comprehensive loss of $44.7 million, due to the recognized loss on the sale of available-for-sale securities.

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Other Information

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The Company will host a conference call on October 24, 2025, at 11:00 a.m. (Eastern Time) / 8:00 a.m. (Pacific Time) to discuss the third quarter of 2025 earnings results. Investors may call in by dialing (800) 715-9871 within the US and +1(646) 307-1963 for all other locations (Conference ID: 6048183). Participants may also pre-register for the conference by navigating to https://events.q4inc.com/attendee/814049300. Access detail will be provided via email upon completion of registration.

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Alternatively, individuals may listen to a live webcast of the presentation by visiting the link on the Company's website at www.avidbank.com under About Us, Investor Relations. An audio replay of the live webcast is expected to be available by the evening of October 24, 2025, through the Investor Relations section of the Company's website. The recording will be available for one year from the day of posting. Information which may be discussed on the conference call is provided in an earnings supplement presentation available on the Company’s website and furnished with the SEC and available at www.sec.gov.

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About Avidbank Holdings

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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 press release includes financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). This press release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated 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 adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, adjusted efficiency ratio, 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 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

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Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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. For a description of the non-GAAP financial information included herein and reconciliations to the most directly comparable GAAP measure, see the "Non-GAAP Performance and Financial Measures Reconciliation" table.

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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 (which we define as the counties of Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma) 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 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 effects of a prolonged government shutdown; the occurrence of significant natural disasters, including fires and earthquakes, and acts of war or terrorism; our ability to conduct our business could be disrupted by natural or man-made disasters, including the effects of pandemic viruses; changes in market interest rates that affect the pricing of our loans and deposits and our net interest income; risks related to our strategic focus on lending to small to medium-sized businesses; the sufficiency of the assumptions and estimates we make in establishing reserves for potential loan losses and the value of loan collateral and securities; our ability to attract and retain executive officers and key employees and their customer and community relationships; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality and losses in our loan portfolio; the costs of and effects of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to; the results of regulatory examinations or reviews and the effect of and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to; our level of nonperforming assets and the costs associated with resolving problem loans; our ability to maintain adequate liquidity and to raise necessary capital to fund our growth strategy and operations or to meet increased minimum regulatory capital levels; the effects of increased competition from a wide variety of local, regional, national and other providers of financial services; technological changes and developments; negative trends in our market capitalization and adverse changes in the price of our common stock; risks associated with unauthorized access, cyber-crime and other threats to data security; the effects of any acquisitions or dispositions we may make or evaluate, and the costs associated with any potential or actual acquisition or disposition; our ability to comply with various governmental and regulatory requirements applicable to financial institutions, including supervisory actions by federal and state banking agencies; the impact of recent and future legislative and regulatory changes, including changes in banking, accounting, securities and tax laws and regulations and their application by our regulators, and economic stimulus programs; governmental monetary and fiscal policies, including the policies of the Federal Reserve and policies related to tariffs; our ability to implement, maintain and improve effective internal controls; our use of the net proceeds from our recent public offering; and our success at managing any of the risks involved any of the foregoing items. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's filings with the SEC, including the Company’s most recent quarterly report on Form 10-Q, 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

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Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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. Third Quarter 202 5 F inancial Results Press Release

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AVIDBANK HOLDINGS, INC.
Selected Financial Data (Unaudited)
(In thousands, except share and per share amounts) |  | For the Nine
﻿ | For the Three Months Ended |  | Months Ended
﻿ |  | Sept. 30, |  |  | June 30, |  |  | March 31, |  |  | Dec. 31, |  |  | Sept. 30, |  |  | Sept. 30, |  |  | Sept. 30,
﻿ |  | 2025 |  |  | 2025 |  |  | 2025 |  |  | 2024 |  |  | 2024 |  |  | 2025 |  |  | 2024
INCOME HIGHLIGHTS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) / income | $ | (37,735) |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | (26,502) |  | $ | 14,558
Net income-adjusted (2) | $ | 6,707 |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | 17,940 |  | $ | 14,558
PER SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic (loss) / earnings per share | $ | (4.12) |  | $ | 0.77 |  | $ | 0.73 |  | $ | 0.87 |  | $ | 0.79 |  | $ | (3.28) |  | $ | 1.96
Diluted (loss) / earnings per share |  | (4.12) |  |  | 0.75 |  |  | 0.71 |  |  | 0.84 |  |  | 0.77 |  |  | (3.28) |  |  | 1.92
Diluted earnings per share-adjusted (2) |  | 0.72 |  |  | 0.75 |  |  | 0.71 |  |  | 0.84 |  |  | 0.77 |  |  | 2.18 |  |  | 1.92
Book value per share |  | 25.00 |  |  | 25.80 |  |  | 24.85 |  |  | 23.57 |  |  | 23.95 |  |  | 25.00 |  |  | 23.95
PERFORMANCE MEASURES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets (1) |  | (6.35)% |  |  | 1.00% |  |  | 0.96% |  |  | 1.14% |  |  | 1.02% |  |  | (1.53)% |  |  | 0.86%
Return on average assets-adjusted (1) (2) |  | 1.13% |  |  | 1.00% |  |  | 0.96% |  |  | 1.14% |  |  | 1.02% |  |  | 1.03% |  |  | 0.86%
Return on average equity (1) |  | (63.19)% |  |  | 11.59% |  |  | 11.49% |  |  | 13.65% |  |  | 12.97% |  |  | (16.88)% |  |  | 11.37%
Return on average equity-adjusted (1) (2) |  | 11.23% |  |  | 11.59% |  |  | 11.49% |  |  | 13.65% |  |  | 12.97% |  |  | 11.42% |  |  | 11.37%
Net interest margin (1) |  | 3.90% |  |  | 3.60% |  |  | 3.52% |  |  | 3.48% |  |  | 3.35% |  |  | 3.68% |  |  | 3.42%
Net interest margin - taxable equivalent (1) (2) |  | 3.90% |  |  | 3.60% |  |  | 3.52% |  |  | 3.49% |  |  | 3.35% |  |  | 3.68% |  |  | 3.42%
Efficiency ratio |  | (35.28)% |  |  | 57.77% |  |  | 62.57% |  |  | 52.53% |  |  | 59.29% |  |  | 938.30% |  |  | 60.27%
Efficiency ratio-adjusted (2) |  | 55.72% |  |  | 57.77% |  |  | 62.57% |  |  | 52.53% |  |  | 59.29% |  |  | 58.51% |  |  | 60.27%
Average loans to average deposits |  | 94.14% |  |  | 95.69% |  |  | 98.55% |  |  | 95.86% |  |  | 99.90% |  |  | 96.05% |  |  | 101.62%
CAPITAL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio (3) |  | 11.10% |  |  | 10.53% |  |  | 10.39% |  |  | 10.35% |  |  | 9.93% |  |  | 11.10% |  |  | 9.93%
Common equity tier 1 capital ratio (3) |  | 11.68% |  |  | 11.02% |  |  | 11.10% |  |  | 10.59% |  |  | 10.75% |  |  | 11.68% |  |  | 10.75%
Tier 1 risk-based capital ratio (3) |  | 11.68% |  |  | 11.02% |  |  | 11.10% |  |  | 10.59% |  |  | 10.75% |  |  | 11.68% |  |  | 10.75%
Total risk-based capital ratio (3) |  | 13.48% |  |  | 12.76% |  |  | 12.86% |  |  | 12.30% |  |  | 12.92% |  |  | 13.48% |  |  | 12.92%
Common equity ratio |  | 11.56% |  |  | 8.55% |  |  | 8.48% |  |  | 8.09% |  |  | 8.21% |  |  | 11.56% |  |  | 8.21%
SHARES OUTSTANDING |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Number of common shares outstanding |  | 10,925,102 |  |  | 7,923,946 |  |  | 7,912,184 |  |  | 7,906,761 |  |  | 7,871,818 |  |  | 10,925,102 |  |  | 7,871,818
Average common shares outstanding - basic |  | 9,168,707 |  |  | 7,534,264 |  |  | 7,488,051 |  |  | 7,455,650 |  |  | 7,434,726 |  |  | 8,069,830 |  |  | 7,416,173
Average common shares outstanding - diluted |  | 9,168,707 |  |  | 7,686,385 |  |  | 7,682,884 |  |  | 7,661,711 |  |  | 7,622,428 |  |  | 8,069,830 |  |  | 7,584,349
ASSET QUALITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total allowance for credit losses-loans and unfunded commitments |  | 1.19% |  |  | 1.15% |  |  | 1.14% |  |  | 1.12% |  |  | 1.37% |  |  | 1.19% |  |  | 1.37%
Nonperforming assets to total assets |  | 0.12% |  |  | 0.06% |  |  | 0.06% |  |  | 0.06% |  |  | 0.16% |  |  | 0.12% |  |  | 0.16%
Nonperforming loans to total loans |  | 0.14% |  |  | 0.07% |  |  | 0.07% |  |  | 0.07% |  |  | 0.20% |  |  | 0.14% |  |  | 0.20%
Net charge-offs to average loans (1) |  | (0.01)% |  |  | 0.00% |  |  | (0.01)% |  |  | 0.93% |  |  | 0.02% |  |  | (0.01)% |  |  | 0.01%
AVERAGE BALANCES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, net of deferred loan fees | $ | 1,924,537 |  | $ | 1,887,263 |  | $ | 1,858,716 |  | $ | 1,815,933 |  | $ | 1,804,107 |  | $ | 1,890,413 |  | $ | 1,791,479
Investment securities |  | 181,154 |  |  | 293,640 |  |  | 296,422 |  |  | 308,502 |  |  | 311,450 |  |  | 256,650 |  |  | 312,723
Total assets |  | 2,357,158 |  |  | 2,322,264 |  |  | 2,289,935 |  |  | 2,250,086 |  |  | 2,272,623 |  |  | 2,323,365 |  |  | 2,253,729
Deposits |  | 2,044,228 |  |  | 1,972,215 |  |  | 1,885,993 |  |  | 1,894,321 |  |  | 1,805,935 |  |  | 1,968,059 |  |  | 1,762,857
Shareholders' equity |  | 236,903 |  |  | 200,608 |  |  | 191,891 |  |  | 188,170 |  |  | 179,260 |  |  | 209,965 |  |  | 171,043
(1) Annualized for the periods presented.
(2) A non-GAAP performance measure. We provide detailed reconciliations in the "Non-GAAP Performance and Financial Measures Reconciliation" table.
(3) Ratios presented are for Avidbank Holdings, Inc. and are e stimated for the three and nine months ended September 30, 2025.

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Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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AVIDBANK HOLDINGS, INC.
Consolidated Statements of Financial Condition (Unaudited)
(In thousands)
﻿ | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
﻿ | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 12,006 |  | $ | 2,800 |  | $ | 18,866 |  | $ | 8,662 |  | $ | 15,172
Due from Federal Reserve Bank and interest-bearing deposits in banks |  | 165,313 |  |  | 127,123 |  |  | 106,135 |  |  | 74,039 |  |  | 121,361
Total cash and cash equivalents |  | 177,319 |  |  | 129,923 |  |  | 125,001 |  |  | 82,701 |  |  | 136,533
Investment securities available-for-sale |  | 173,588 |  |  | 292,808 |  |  | 296,617 |  |  | 296,556 |  |  | 316,741
Loans, net of deferred loan fees |  | 1,958,585 |  |  | 1,911,718 |  |  | 1,841,187 |  |  | 1,864,942 |  |  | 1,786,756
Allowance for credit losses on loans |  | (21,025) |  |  | (19,624) |  |  | (18,722) |  |  | (18,679) |  |  | (22,315)
Loans, net of allowance for credit losses on loans |  | 1,937,560 |  |  | 1,892,094 |  |  | 1,822,465 |  |  | 1,846,263 |  |  | 1,764,441
Bank owned life insurance |  | 12,953 |  |  | 12,857 |  |  | 12,764 |  |  | 12,674 |  |  | 12,580
Premises and equipment, net |  | 1,739 |  |  | 1,927 |  |  | 2,118 |  |  | 2,331 |  |  | 2,549
Accrued interest receivable and other assets |  | 59,295 |  |  | 62,520 |  |  | 60,957 |  |  | 63,963 |  |  | 62,625
Total assets | $ | 2,362,454 |  | $ | 2,392,129 |  | $ | 2,319,922 |  | $ | 2,304,488 |  | $ | 2,295,469
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand | $ | 471,770 |  | $ | 443,540 |  | $ | 419,823 |  | $ | 414,327 |  | $ | 405,528
Interest-bearing checking |  | 1,069,344 |  |  | 1,087,621 |  |  | 965,467 |  |  | 993,219 |  |  | 1,026,898
Money market and savings |  | 465,198 |  |  | 399,849 |  |  | 399,010 |  |  | 338,578 |  |  | 336,166
Time |  | 42,846 |  |  | 46,770 |  |  | 58,273 |  |  | 74,468 |  |  | 75,033
Non-reciprocal brokered (1) |  | – |  |  | 25,001 |  |  | 86,915 |  |  | 70,763 |  |  | 57,903
Total deposits |  | 2,049,158 |  |  | 2,002,781 |  |  | 1,929,488 |  |  | 1,891,355 |  |  | 1,901,528
Subordinated debt, net |  | 22,000 |  |  | 22,000 |  |  | 22,000 |  |  | 22,000 |  |  | 21,982
Short-term borrowings |  | – |  |  | 145,000 |  |  | 155,000 |  |  | 185,000 |  |  | 160,000
Accrued interest payable and other liabilities |  | 18,183 |  |  | 17,929 |  |  | 16,815 |  |  | 19,771 |  |  | 23,438
Total liabilities |  | 2,089,341 |  |  | 2,187,710 |  |  | 2,123,303 |  |  | 2,118,126 |  |  | 2,106,948
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | 169,342 |  |  | 107,608 |  |  | 106,839 |  |  | 106,997 |  |  | 106,169
Retained earnings |  | 104,201 |  |  | 141,936 |  |  | 136,139 |  |  | 130,703 |  |  | 124,246
Accumulated other comprehensive loss |  | (430) |  |  | (45,125) |  |  | (46,359) |  |  | (51,338) |  |  | (41,894)
Total shareholders' equity |  | 273,113 |  |  | 204,419 |  |  | 196,619 |  |  | 186,362 |  |  | 188,521
Total liabilities and shareholders' equity | $ | 2,362,454 |  | $ | 2,392,129 |  | $ | 2,319,922 |  | $ | 2,304,488 |  | $ | 2,295,469
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
(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 September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, an additional $522.5 million, $495.4 million, $447.8 million, $470.0 million and $509.3 million of our deposits were considered brokered deposits by the FDIC due to being in excess of the general cap, respectively.

﻿

7

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AVIDBANK HOLDINGS, INC.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | For the Nine
﻿ | For the Three Months Ended |  | Months Ended
﻿ |  | Sept. 30, |  |  | June 30, |  |  | March 31, |  |  | Dec. 31, |  |  | Sept. 30, |  |  | Sept. 30, |  |  | Sept. 30,
﻿ |  | 2025 |  |  | 2025 |  |  | 2025 |  |  | 2024 |  |  | 2024 |  |  | 2025 |  |  | 2024
Interest and fees on loans | $ | 33,880 |  | $ | 32,967 |  | $ | 31,885 |  | $ | 32,308 |  | $ | 33,488 |  | $ | 98,732 |  | $ | 98,570
Interest on investment securities |  | 1,157 |  |  | 1,703 |  |  | 1,749 |  |  | 1,770 |  |  | 1,767 |  |  | 4,609 |  |  | 5,392
Federal Home Loan Bank dividends |  | 184 |  |  | 181 |  |  | 185 |  |  | 185 |  |  | 183 |  |  | 550 |  |  | 567
Other interest income |  | 2,033 |  |  | 793 |  |  | 706 |  |  | 681 |  |  | 1,198 |  |  | 3,532 |  |  | 2,968
Total interest income |  | 37,254 |  |  | 35,644 |  |  | 34,525 |  |  | 34,944 |  |  | 36,636 |  |  | 107,423 |  |  | 107,497
Deposit interest expense |  | 13,776 |  |  | 13,669 |  |  | 12,827 |  |  | 14,015 |  |  | 14,602 |  |  | 40,272 |  |  | 40,130
Interest on short-term borrowings |  | 385 |  |  | 1,242 |  |  | 1,911 |  |  | 1,437 |  |  | 3,121 |  |  | 3,538 |  |  | 10,443
Interest on subordinated debt |  | 443 |  |  | 443 |  |  | 435 |  |  | 293 |  |  | 300 |  |  | 1,321 |  |  | 901
Total interest expense |  | 14,604 |  |  | 15,354 |  |  | 15,173 |  |  | 15,745 |  |  | 18,023 |  |  | 45,131 |  |  | 51,474
Net interest income |  | 22,650 |  |  | 20,290 |  |  | 19,352 |  |  | 19,199 |  |  | 18,613 |  |  | 62,292 |  |  | 56,023
Provision for credit losses |  | 1,355 |  |  | 925 |  |  | – |  |  | 779 |  |  | – |  |  | 2,280 |  |  | 3,317
Net interest income after provision for credit losses |  | 21,295 |  |  | 19,365 |  |  | 19,352 |  |  | 18,420 |  |  | 18,613 |  |  | 60,012 |  |  | 52,706
Service charges and bank fees |  | 779 |  |  | 840 |  |  | 762 |  |  | 649 |  |  | 675 |  |  | 2,381 |  |  | 1,951
Foreign exchange income |  | 267 |  |  | 196 |  |  | 220 |  |  | 191 |  |  | 246 |  |  | 683 |  |  | 706
Income from bank owned life insurance |  | 96 |  |  | 93 |  |  | 90 |  |  | 93 |  |  | 90 |  |  | 279 |  |  | 415
Warrant and success fee income |  | – |  |  | 273 |  |  | – |  |  | 65 |  |  | – |  |  | 273 |  |  | –
Loss on sale of securities |  | (62,391) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (62,391) |  |  | –
Other investment income |  | 315 |  |  | (23) |  |  | 47 |  |  | 637 |  |  | 240 |  |  | 339 |  |  | 454
Other income |  | 82 |  |  | 159 |  |  | 52 |  |  | 205 |  |  | 539 |  |  | 293 |  |  | 644
Total noninterest income |  | (60,852) |  |  | 1,538 |  |  | 1,171 |  |  | 1,840 |  |  | 1,790 |  |  | (58,143) |  |  | 4,170
Salaries and benefit expenses |  | 9,766 |  |  | 8,978 |  |  | 9,097 |  |  | 7,389 |  |  | 8,336 |  |  | 27,841 |  |  | 25,111
Occupancy and equipment expenses |  | 723 |  |  | 759 |  |  | 996 |  |  | 919 |  |  | 1,033 |  |  | 2,478 |  |  | 3,099
Data processing |  | 792 |  |  | 759 |  |  | 615 |  |  | 613 |  |  | 638 |  |  | 2,166 |  |  | 1,799
Regulatory assessments |  | 445 |  |  | 420 |  |  | 544 |  |  | 541 |  |  | 528 |  |  | 1,409 |  |  | 1,542
Legal and professional fees |  | 591 |  |  | 715 |  |  | 511 |  |  | 452 |  |  | 534 |  |  | 1,817 |  |  | 1,686
Other operating expenses |  | 1,162 |  |  | 978 |  |  | 1,079 |  |  | 1,138 |  |  | 1,028 |  |  | 3,219 |  |  | 3,043
Total noninterest expense |  | 13,479 |  |  | 12,609 |  |  | 12,842 |  |  | 11,052 |  |  | 12,097 |  |  | 38,930 |  |  | 36,280
Income before income taxes |  | (53,036) |  |  | 8,294 |  |  | 7,681 |  |  | 9,208 |  |  | 8,306 |  |  | (37,061) |  |  | 20,596
(Benefit) / p rovision for income taxes |  | (15,301) |  |  | 2,497 |  |  | 2,245 |  |  | 2,751 |  |  | 2,460 |  |  | (10,559) |  |  | 6,038
Net (loss) / income | $ | (37,735) |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | (26,502) |  | $ | 14,558
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic (loss) / earnings per common share | $ | (4.12) |  | $ | 0.77 |  | $ | 0.73 |  | $ | 0.87 |  | $ | 0.79 |  | $ | (3.28) |  | $ | 1.96
Diluted (loss) / earnings per common share |  | (4.12) |  |  | 0.75 |  |  | 0.71 |  |  | 0.84 |  |  | 0.77 |  |  | (3.28) |  |  | 1.92
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares - basic |  | 9,168,707 |  |  | 7,534,264 |  |  | 7,488,051 |  |  | 7,455,650 |  |  | 7,434,726 |  |  | 8,069,830 |  |  | 7,416,173
Weighted average shares - diluted |  | 9,168,707 |  |  | 7,686,385 |  |  | 7,682,884 |  |  | 7,661,711 |  |  | 7,622,428 |  |  | 8,069,830 |  |  | 7,584,349

﻿

﻿

8

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

﻿

﻿

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(In thousands)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the Three Months Ended
﻿ | September 30, 2025 |  |  | June 30, 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) |  | $ | 1,924,537 |  | $ | 33,880 |  | 6.98% |  | $ | 1,887,263 |  | $ | 32,967 |  | 7.01%
Fed funds sold / interest-bearing deposits |  |  | 189,921 |  |  | 2,033 |  | 4.25% |  |  | 73,552 |  |  | 793 |  | 4.32%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable investment securities |  |  | 178,637 |  |  | 1,126 |  | 2.50% |  |  | 291,074 |  |  | 1,672 |  | 2.30%
Non-taxable investment securities (2) |  |  | 2,517 |  |  | 39 |  | 6.15% |  |  | 2,566 |  |  | 39 |  | 6.10%
Total investment securities |  |  | 181,154 |  |  | 1,165 |  | 2.55% |  |  | 293,640 |  |  | 1,711 |  | 2.34%
FHLB stock |  |  | 8,409 |  |  | 184 |  | 8.68% |  |  | 8,409 |  |  | 181 |  | 8.63%
Total interest-earning assets |  |  | 2,304,021 |  |  | 37,262 |  | 6.42% |  |  | 2,262,864 |  |  | 35,652 |  | 6.32%
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  |  | 7,019 |  |  |  |  |  |  |  | 10,120 |  |  |  |  |
All other assets (3) |  |  | 46,118 |  |  |  |  |  |  |  | 49,280 |  |  |  |  |
Total assets |  | $ | 2,357,158 |  |  |  |  |  |  | $ | 2,322,264 |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand deposits |  | $ | 1,074,064 |  | $ | 9,961 |  | 3.68% |  | $ | 1,038,372 |  | $ | 9,483 |  | 3.66%
Money market and savings |  |  | 433,135 |  |  | 3,336 |  | 3.06% |  |  | 398,438 |  |  | 3,094 |  | 3.11%
Time deposits |  |  | 43,897 |  |  | 365 |  | 3.30% |  |  | 47,398 |  |  | 400 |  | 3.38%
Non-reciprocal brokered deposits |  |  | 10,283 |  |  | 114 |  | 4.40% |  |  | 62,853 |  |  | 692 |  | 4.42%
Total interest-bearing deposits |  |  | 1,561,379 |  |  | 13,776 |  | 3.50% |  |  | 1,547,061 |  |  | 13,669 |  | 3.54%
Short-term borrowings |  |  | 33,500 |  |  | 385 |  | 4.56% |  |  | 108,374 |  |  | 1,242 |  | 4.60%
Subordinated debt |  |  | 22,000 |  |  | 443 |  | 7.99% |  |  | 22,000 |  |  | 443 |  | 8.08%
Total interest-bearing liabilities |  |  | 1,616,879 |  |  | 14,604 |  | 3.58% |  |  | 1,677,435 |  |  | 15,354 |  | 3.67%
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposits |  |  | 482,849 |  |  |  |  |  |  |  | 425,154 |  |  |  |  |
Accrued expenses and other liabilities |  |  | 20,527 |  |  |  |  |  |  |  | 19,067 |  |  |  |  |
Shareholders' equity |  |  | 236,903 |  |  |  |  |  |  |  | 200,608 |  |  |  |  |
Total liabilities and shareholders' equity |  | $ | 2,357,158 |  |  |  |  |  |  | $ | 2,322,264 |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest spread |  |  |  |  |  |  |  | 2.83% |  |  |  |  |  |  |  | 2.65%
Net interest income and margin (4) |  |  |  |  | $ | 22,658 |  | 3.90% |  |  |  |  | $ | 20,298 |  | 3.60%
Non-taxable equivalent net interest margin |  |  |  |  |  |  |  | 3.90% |  |  |  |  |  |  |  | 3.60%
Cost of deposits |  | $ | 2,044,228 |  | $ | 13,776 |  | 2.67% |  | $ | 1,972,215 |  | $ | 13,669 |  | 2.78%
(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 $444 thousand and $314 thousand, for the three months ended September 30, 2025 and June 30, 2025, 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 $20.1 million and $19.1 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized for the periods presented.

﻿

﻿

﻿

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

9

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | For the Three Months Ended
﻿ |  |  | September 30, 2025 |  |  | September 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) |  | $ | 1,924,537 |  | $ | 33,880 |  | 6.98% |  | $ | 1,804,107 |  | $ | 33,488 |  | 7.38%
Fed funds sold / interest-bearing deposits |  |  | 189,921 |  |  | 2,033 |  | 4.25% |  |  | 87,228 |  |  | 1,198 |  | 5.46%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable investment securities |  |  | 178,637 |  |  | 1,126 |  | 2.50% |  |  | 309,624 |  |  | 1,745 |  | 2.24%
Non-taxable investment securities (2) |  |  | 2,517 |  |  | 39 |  | 6.15% |  |  | 1,826 |  |  | 28 |  | 6.10%
Total investment securities |  |  | 181,154 |  |  | 1,165 |  | 2.55% |  |  | 311,450 |  |  | 1,773 |  | 2.26%
FHLB stock |  |  | 8,409 |  |  | 184 |  | 8.68% |  |  | 8,409 |  |  | 183 |  | 8.66%
Total interest-earning assets |  |  | 2,304,021 |  |  | 37,262 |  | 6.42% |  |  | 2,211,194 |  |  | 36,642 |  | 6.59%
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  |  | 7,019 |  |  |  |  |  |  |  | 12,943 |  |  |  |  |
All other assets (3) |  |  | 46,118 |  |  |  |  |  |  |  | 48,486 |  |  |  |  |
Total assets |  | $ | 2,357,158 |  |  |  |  |  |  | $ | 2,272,623 |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand deposits |  | $ | 1,074,064 |  | $ | 9,961 |  | 3.68% |  | $ | 903,542 |  | $ | 9,801 |  | 4.32%
Money market and savings |  |  | 433,135 |  |  | 3,336 |  | 3.06% |  |  | 348,125 |  |  | 3,067 |  | 3.50%
Time deposits |  |  | 43,897 |  |  | 365 |  | 3.30% |  |  | 75,972 |  |  | 810 |  | 4.24%
Non-reciprocal brokered deposits |  |  | 10,283 |  |  | 114 |  | 4.40% |  |  | 69,670 |  |  | 924 |  | 5.28%
Total interest-bearing deposits |  |  | 1,561,379 |  |  | 13,776 |  | 3.50% |  |  | 1,397,309 |  |  | 14,602 |  | 4.16%
Short-term borrowings |  |  | 33,500 |  |  | 385 |  | 4.56% |  |  | 237,370 |  |  | 3,121 |  | 5.23%
Subordinated debt |  |  | 22,000 |  |  | 443 |  | 7.99% |  |  | 21,970 |  |  | 300 |  | 5.44%
Total interest-bearing liabilities |  |  | 1,616,879 |  |  | 14,604 |  | 3.58% |  |  | 1,656,649 |  |  | 18,023 |  | 4.33%
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposits |  |  | 482,849 |  |  |  |  |  |  |  | 408,626 |  |  |  |  |
Accrued expenses and other liabilities |  |  | 20,527 |  |  |  |  |  |  |  | 28,088 |  |  |  |  |
Shareholders' equity |  |  | 236,903 |  |  |  |  |  |  |  | 179,260 |  |  |  |  |
Total liabilities and shareholders' equity |  | $ | 2,357,158 |  |  |  |  |  |  | $ | 2,272,623 |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest spread |  |  |  |  |  |  |  | 2.83% |  |  |  |  |  |  |  | 2.26%
Net interest income and margin (4) |  |  |  |  | $ | 22,658 |  | 3.90% |  |  |  |  | $ | 18,619 |  | 3.35%
Non-taxable equivalent net interest margin |  |  |  |  |  |  |  | 3.90% |  |  |  |  |  |  |  | 3.35%
Cost of deposits |  | $ | 2,044,228 |  | $ | 13,776 |  | 2.67% |  | $ | 1,805,935 |  | $ | 14,602 |  | 3.22%
(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 $444 thousand and $383 thousand, for the three months ended September 30, 2025 and September 30, 2024, 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 $20.1 million and $22.4 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets. (5) Annualized for the periods presented.

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10

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AVIDBANK HOLDINGS, INC.
Average Balance Sheets and Net Interest Margin Analysis (Unaudited)
(In thousands)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  | For the Nine Months Ended
﻿ |  |  | September 30, 2025 |  |  | September 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) |  | $ | 1,890,413 |  | $ | 98,732 |  | 6.98% |  | $ | 1,791,479 |  | $ | 98,570 |  | 7.35%
Fed funds sold/interest bearing deposits |  |  | 109,743 |  |  | 3,532 |  | 4.30% |  |  | 72,424 |  |  | 2,968 |  | 5.47%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable investment securities |  |  | 254,061 |  |  | 4,517 |  | 2.38% |  |  | 310,891 |  |  | 5,325 |  | 2.29%
Non-taxable investment securities (2) |  |  | 2,589 |  |  | 116 |  | 5.99% |  |  | 1,832 |  |  | 84 |  | 6.12%
Total investment securities |  |  | 256,650 |  |  | 4,633 |  | 2.41% |  |  | 312,723 |  |  | 5,409 |  | 2.31%
FHLB stock |  |  | 8,409 |  |  | 550 |  | 8.74% |  |  | 8,409 |  |  | 567 |  | 9.01%
Total interest-earning assets |  |  | 2,265,215 |  |  | 107,447 |  | 6.34% |  |  | 2,185,035 |  |  | 107,514 |  | 6.57%
Noninterest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  |  | 9,975 |  |  |  |  |  |  |  | 12,723 |  |  |  |  |
All other assets (3) |  |  | 48,175 |  |  |  |  |  |  |  | 55,971 |  |  |  |  |
Total assets |  | $ | 2,323,365 |  |  |  |  |  |  | $ | 2,253,729 |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand deposits |  | $ | 1,023,572 |  | $ | 27,974 |  | 3.65% |  | $ | 811,505 |  | $ | 25,272 |  | 4.16%
Money market and savings |  |  | 405,844 |  |  | 9,301 |  | 3.06% |  |  | 318,811 |  |  | 7,935 |  | 3.32%
Time deposits |  |  | 50,466 |  |  | 1,323 |  | 3.51% |  |  | 76,725 |  |  | 2,400 |  | 4.18%
Non-reciprocal brokered deposits |  |  | 49,978 |  |  | 1,674 |  | 4.48% |  |  | 113,199 |  |  | 4,523 |  | 5.34%
Total interest-bearing deposits |  |  | 1,529,860 |  |  | 40,272 |  | 3.52% |  |  | 1,320,240 |  |  | 40,130 |  | 4.06%
Short-term borrowings |  |  | 103,495 |  |  | 3,538 |  | 4.57% |  |  | 271,427 |  |  | 10,443 |  | 5.14%
Subordinated debt |  |  | 22,000 |  |  | 1,321 |  | 8.03% |  |  | 21,944 |  |  | 901 |  | 5.48%
Total interest-bearing liabilities |  |  | 1,655,355 |  |  | 45,131 |  | 3.65% |  |  | 1,613,611 |  |  | 51,474 |  | 4.26%
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposits |  |  | 438,199 |  |  |  |  |  |  |  | 442,617 |  |  |  |  |
Accrued expenses and other liabilities |  |  | 19,846 |  |  |  |  |  |  |  | 26,458 |  |  |  |  |
Shareholders' equity |  |  | 209,965 |  |  |  |  |  |  |  | 171,043 |  |  |  |  |
Total liabilities and shareholders' equity |  | $ | 2,323,365 |  |  |  |  |  |  | $ | 2,253,729 |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest spread |  |  |  |  |  |  |  | 2.70% |  |  |  |  |  |  |  | 2.31%
Net interest income and margin (4) |  |  |  |  | $ | 62,316 |  | 3.68% |  |  |  |  | $ | 56,040 |  | 3.42%
Non-taxable equivalent net interest margin |  |  |  |  |  |  |  | 3.68% |  |  |  |  |  |  |  | 3.42%
Cost of deposits |  | $ | 1,968,059 |  | $ | 40,272 |  | 2.74% |  | $ | 1,762,857 |  | $ | 40,130 |  | 3.04%
(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 $1.4 million and $1.2 million, for the nine months ended September 30, 2025 and September 30, 2024, 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 $19.3 million and $20.5 million, respectively.
(4) Net interest margin is net interest income divided by total interest-earning assets.
(5) Annualized for the periods presented.

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11

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AVIDBANK HOLDINGS, INC.
Asset Quality Data (Unaudited)
(In thousands)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | Sept. 30, |  | June 30, |  | March 31, |  | Dec. 31, |  | Sept. 30, |  | As of/For the Year-to-Date Period Ended September 30,
﻿ | 2025 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  | 2025 |  | 2024
Allowance for Credit Losses on Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, b eginning of period | $ | 19,624 |  | $ | 18,722 |  | $ | 18,679 |  | $ | 22,315 |  | $ | 22,410 |  | $ | 18,679 |  | $ | 19,131
Provision for credit losses on loans |  | 1,364 |  |  | 891 |  |  | – |  |  | 630 |  |  | – |  |  | 2,255 |  |  | 3,279
Charge-offs |  | – |  |  | – |  |  | – |  |  | (4,266) |  |  | (95) |  |  | – |  |  | (95)
Recoveries |  | 37 |  |  | 11 |  |  | 43 |  |  | – |  |  | – |  |  | 91 |  |  | –
Balance, end of period | $ | 21,025 |  | $ | 19,624 |  | $ | 18,722 |  | $ | 18,679 |  | $ | 22,315 |  | $ | 21,025 |  | $ | 22,315
Allowance for Credit Losses on Unfunded Commitments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, b eginning of period | $ | 2,281 |  | $ | 2,247 |  | $ | 2,247 |  | $ | 2,098 |  | $ | 2,098 |  | $ | 2,247 |  | $ | 2,060
Provision for unfunded commitments |  | (9) |  |  | 34 |  |  | – |  |  | 149 |  |  | – |  |  | 25 |  |  | 38
Balance, end of period | $ | 2,272 |  | $ | 2,281 |  | $ | 2,247 |  | $ | 2,247 |  | $ | 2,098 |  | $ | 2,272 |  | $ | 2,098
Total allowance for credit losses - loans and unfunded commitments | $ | 23,297 |  | $ | 21,905 |  | $ | 20,969 |  | $ | 20,926 |  | $ | 24,413 |  | $ | 23,297 |  | $ | 24,413
Provision for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for credit losses on loans | $ | 1,364 |  | $ | 891 |  | $ | – |  | $ | 630 |  | $ | – |  | $ | 2,255 |  | $ | 3,279
Provision for unfunded commitments |  | (9) |  |  | 34 |  |  | – |  |  | 149 |  |  | – |  |  | 25 |  |  | 38
Total provision for credit losses | $ | 1,355 |  | $ | 925 |  | $ | – |  | $ | 779 |  | $ | – |  | $ | 2,280 |  | $ | 3,317
Nonperforming Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans accounted for on a non-accrual basis | $ | 2,748 |  | $ | 1,332 |  | $ | 1,340 |  | $ | 1,347 |  | $ | 3,621 |  | $ | 2,748 |  | $ | 3,621
Loans past due 90 days or more and still accruing |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | –
Nonperforming loans |  | 2,748 |  |  | 1,332 |  |  | 1,340 |  |  | 1,347 |  |  | 3,621 |  |  | 2,748 |  |  | 3,621
Other real estate owned |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  | –
Nonperforming assets | $ | 2,748 |  | $ | 1,332 |  | $ | 1,340 |  | $ | 1,347 |  | $ | 3,621 |  | $ | 2,748 |  | $ | 3,621
Nonperforming Loans by Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 2,748 |  | $ | 1,332 |  | $ | 1,340 |  | $ | 1,347 |  | $ | 3,621 |  | $ | 2,748 |  | $ | 3,621
Total Nonperforming loans | $ | 2,748 |  | $ | 1,332 |  | $ | 1,340 |  | $ | 1,347 |  | $ | 3,621 |  | $ | 2,748 |  | $ | 3,621
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset Quality Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses on loans to total loans |  | 1.07% |  |  | 1.03% |  |  | 1.02% |  |  | 1.00% |  |  | 1.25% |  |  | 1.07% |  |  | 1.25%
Total allowance for credit losses-loans and unfunded commitments |  | 1.19% |  |  | 1.15% |  |  | 1.14% |  |  | 1.12% |  |  | 1.37% |  |  | 1.19% |  |  | 1.37%
Allowance for credit losses on loans to nonperforming loans |  | 765.10% |  |  | 1473.27% |  |  | 1397.16% |  |  | 1386.71% |  |  | 616.27% |  |  | 765.10% |  |  | 616.27%
Nonperforming assets to total assets |  | 0.12% |  |  | 0.06% |  |  | 0.06% |  |  | 0.06% |  |  | 0.16% |  |  | 0.12% |  |  | 0.16%
Nonperforming loans to total loans |  | 0.14% |  |  | 0.07% |  |  | 0.07% |  |  | 0.07% |  |  | 0.20% |  |  | 0.14% |  |  | 0.20%
Net charge-offs to average loans (1) |  | -0.01% |  |  | 0.00% |  |  | -0.01% |  |  | 0.93% |  |  | 0.02% |  |  | -0.01% |  |  | 0.01%
Criticized loans to total loans |  | 1.48% |  |  | 1.87% |  |  | 1.43% |  |  | 2.27% |  |  | 1.62% |  |  | 1.48% |  |  | 1.62%
Classified loans to total loans |  | 0.44% |  |  | 0.38% |  |  | 0.20% |  |  | 0.22% |  |  | 0.51% |  |  | 0.44% |  |  | 0.51%
(1) Annualized for the period s presented.

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12

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

AVIDBANK HOLDINGS, INC.
Loans and Deposits (Unaudited)
(In thousands)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Current |  | Year
﻿ |  |  | Sept. 30, |  | June 30, |  | March 31, |  | Dec. 31, |  |  | Sept. 30, | Quarter |  | Over Year
﻿ |  |  | 2025 |  |  | 2025 |  |  | 2025 |  |  | 2024 |  |  | 2024 |  | Change |  | Change
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial loans |  | $ | 871,524 |  | $ | 855,049 |  | $ | 803,920 |  | $ | 816,963 |  | $ | 759,492 |  | $ | 16,475 |  | $ | 112,032
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multi-family |  |  | 249,802 |  |  | 241,399 |  |  | 227,003 |  |  | 216,018 |  |  | 199,929 |  |  | 8,403 |  |  | 49,873
Owner Occupied |  |  | 176,171 |  |  | 168,393 |  |  | 142,764 |  |  | 142,650 |  |  | 141,139 |  |  | 7,778 |  |  | 35,032
Non-Owner Occupied |  |  | 412,623 |  |  | 407,955 |  |  | 405,788 |  |  | 414,551 |  |  | 406,007 |  |  | 4,668 |  |  | 6,616
Construction and land |  |  | 209,750 |  |  | 204,973 |  |  | 226,641 |  |  | 246,301 |  |  | 253,325 |  |  | 4,777 |  |  | (43,575)
Residential |  |  | 36,399 |  |  | 31,560 |  |  | 32,985 |  |  | 27,494 |  |  | 25,799 |  |  | 4,839 |  |  | 10,600
Tota l real estate loans |  |  | 1,084,745 |  |  | 1,054,280 |  |  | 1,035,181 |  |  | 1,047,014 |  |  | 1,026,199 |  |  | 30,465 |  |  | 58,546
Other loans |  |  | 2,316 |  |  | 2,389 |  |  | 2,086 |  |  | 965 |  |  | 1,065 |  |  | (73) |  |  | 1,251
Total loans, net of deferred fees |  | $ | 1,958,585 |  | $ | 1,911,718 |  | $ | 1,841,187 |  | $ | 1,864,942 |  | $ | 1,786,756 |  | $ | 46,867 |  | $ | 171,829
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 471,770 |  | $ | 443,540 |  | $ | 419,823 |  | $ | 414,327 |  | $ | 405,528 |  | $ | 28,230 |  | $ | 66,242
Interest-bearing checking |  |  | 1,069,344 |  |  | 1,087,621 |  |  | 965,467 |  |  | 993,219 |  |  | 1,026,898 |  |  | (18,277) |  |  | 42,446
Money market and savings |  |  | 465,198 |  |  | 399,849 |  |  | 399,010 |  |  | 338,578 |  |  | 336,166 |  |  | 65,349 |  |  | 129,032
Time |  |  | 42,846 |  |  | 46,770 |  |  | 58,273 |  |  | 74,468 |  |  | 75,033 |  |  | (3,924) |  |  | (32,187)
Non-reciprocal brokered (1) |  |  | – |  |  | 25,001 |  |  | 86,915 |  |  | 70,763 |  |  | 57,903 |  |  | (25,001) |  |  | (57,903)
Total deposits |  | $ | 2,049,158 |  | $ | 2,002,781 |  | $ | 1,929,488 |  | $ | 1,891,355 |  | $ | 1,901,528 |  | $ | 46,377 |  | $ | 147,630
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 482,849 |  | $ | 425,154 |  | $ | 405,746 |  | $ | 422,807 |  | $ | 408,626 |  | $ | 57,695 |  | $ | 74,223
Interest-bearing checking |  |  | 1,074,064 |  |  | 1,038,372 |  |  | 956,994 |  |  | 994,121 |  |  | 903,542 |  |  | 35,692 |  |  | 170,522
Money market and savings |  |  | 433,135 |  |  | 398,438 |  |  | 385,434 |  |  | 351,126 |  |  | 348,125 |  |  | 34,697 |  |  | 85,010
Time |  |  | 43,897 |  |  | 47,398 |  |  | 60,282 |  |  | 77,203 |  |  | 75,972 |  |  | (3,501) |  |  | (32,075)
Non-reciprocal brokered |  |  | 10,283 |  |  | 62,853 |  |  | 77,537 |  |  | 49,064 |  |  | 69,670 |  |  | (52,570) |  |  | (59,387)
Total deposits |  | $ | 2,044,228 |  | $ | 1,972,215 |  | $ | 1,885,993 |  | $ | 1,894,321 |  | $ | 1,805,935 |  | $ | 72,013 |  | $ | 238,293
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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 September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, an additional $522.5 million, $495.4 million, $447.8 million, $470.0 million and $509.3 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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13

Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AVIDBANK HOLDINGS, INC.
Non-GAAP Performance and Financial Measures Reconciliation (Unaudited)
(In thousands)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Management believes that adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average equity, adjusted efficiency ratio, 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 who are interested in understanding our profitability prospects from our core operations. In addition, m anagement 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. |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | For the Three Months Ended |  | For the Nine Months Ended |
﻿ |  |  | Sept. 30, |  |  | June 30, |  |  | March 31, |  |  | Dec. 31, |  |  | Sept. 30, |  | Sept. 30, |  |  | Sept. 30, |
﻿ |  |  | 2025 |  |  | 2025 |  |  | 2025 |  |  | 2024 |  |  | 2024 |  | 2025 |  |  | 2024 |
Non-GAAP adjusted net income reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income - GAAP |  | $ | (37,735) |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | (26,502) |  |  | $ | 14,558 |
Loss on sale of securities |  |  | 62,391 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 62,391 |  |  |  | – |
Tax impact of loss on sale of securities |  |  | (17,949) |  |  | – |  |  | – |  |  | – |  |  | – |  |  | (17,949) |  |  |  | – |
Net income - adjusted (non-GAAP) |  | $ | 6,707 |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | 17,940 |  |  | $ | 14,558 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-GAAP adjusted diluted earnings per share reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings per share - GAAP |  | $ | (4.12) |  | $ | 0.75 |  | $ | 0.71 |  | $ | 0.84 |  | $ | 0.77 |  | $ | (3.28) |  |  | $ | 1.92 |
Loss on sale of securities, net of income tax |  |  | 4.84 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 5.46 |  |  |  | – |
Diluted earnings per share - adjusted (non-GAAP) |  | $ | 0.72 |  | $ | 0.75 |  | $ | 0.71 |  | $ | 0.84 |  | $ | 0.77 |  | $ | 2.18 |  |  | $ | 1.92 |
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Non-GAAP adjusted return on average assets reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income - GAAP |  | $ | (37,735) |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | (26,502) |  |  | $ | 14,558 |
Average total assets |  |  | 2,357,158 |  |  | 2,322,264 |  |  | 2,289,935 |  |  | 2,250,086 |  |  | 2,272,623 |  |  | 2,323,365 |  |  |  | 2,253,729 |
Return on average assets - GAAP (1) |  |  | (6.35) | % |  | 1.00 | % |  | 0.96 | % |  | 1.14 | % |  | 1.02 | % |  | (1.53) | % |  |  | 0.86 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income - adjusted (non-GAAP) |  | $ | 6,707 |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | 17,940 |  |  | $ | 14,558 |
Average total assets |  |  | 2,357,158 |  |  | 2,322,264 |  |  | 2,289,935 |  |  | 2,250,086 |  |  | 2,272,623 |  |  | 2,323,365 |  |  |  | 2,253,729 |
Return on average assets - adjusted (non-GAAP) (1) |  |  | 1.13 | % |  | 1.00 | % |  | 0.96 | % |  | 1.14 | % |  | 1.02 | % |  | 1.03 | % |  |  | 0.86 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-GAAP adjusted return on average equity reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income - GAAP |  | $ | (37,735) |  | $ | 5,797 |  | $ | 5,436 |  | $ | 6,457 |  | $ | 5,846 |  | $ | (26,502) |  |  | $ | 14,558 |
Average total equity |  |  | 236,903 |  |  | 200,608 |  |  | 191,891 |  |  | 188,170 |  |  | 179,260 |  |  | 209,965 |  |  |  | 171,043 |
Return on average equity - GAAP (1) |  |  | (63.19) | % |  | 11.59 | % |  | 11.49 | % |  | 13.65 | % |  | 12.97 | % |  | (16.88) | % |  |  | 11.37 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income - adjusted (non-GAAP) |  | $ | 6,707 |  |  | 5,797 |  |  | 5,436 |  |  | 6,457 |  |  | 5,846 |  |  | 17,940 |  |  |  | 14,558 |
Average total equity |  |  | 236,903 |  |  | 200,608 |  |  | 191,891 |  |  | 188,170 |  |  | 179,260 |  |  | 209,965 |  |  |  | 171,043 |
Return on average equity - adjusted (non-GAAP) (1) |  |  | 11.23 | % |  | 11.59 | % |  | 11.49 | % |  | 13.65 | % |  | 12.97 | % |  | 11.42 | % |  |  | 11.37 | %

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Avidbank Holdings, Inc. Third Quarter 202 5 F inancial Results Press Release

Non-GAAP adjusted efficiency ratio reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense |  | $ | 13,479 |  | $ | 12,609 |  | $ | 12,842 |  | $ | 11,052 |  | $ | 12,097 |  | $ | 38,930 |  |  | $ | 36,280 |
Net interest income |  |  | 22,650 |  |  | 20,290 |  |  | 19,352 |  |  | 19,199 |  |  | 18,613 |  |  | 62,292 |  |  |  | 56,023 |
Noninterest income |  |  | (60,852) |  |  | 1,538 |  |  | 1,171 |  |  | 1,840 |  |  | 1,790 |  |  | (58,143) |  |  |  | 4,170 |
Efficiency ratio - GAAP |  |  | (35.28) | % |  | 57.77 | % |  | 62.57 | % |  | 52.53 | % |  | 59.29 | % |  | 938.30 | % |  |  | 60.27 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense |  | $ | 13,479 |  | $ | 12,609 |  | $ | 12,842 |  | $ | 11,052 |  | $ | 12,097 |  | $ | 38,930 |  |  | $ | 36,280 | –
Net interest income |  |  | 22,650 |  |  | 20,290 |  |  | 19,352 |  |  | 19,199 |  |  | 18,613 |  |  | 62,292 |  |  |  | 56,023 |
Noninterest income |  |  | (60,852) |  |  | 1,538 |  |  | 1,171 |  |  | 1,840 |  |  | 1,790 |  |  | (58,143) |  |  |  | 4,170 |
Loss on sale of securities |  |  | 62,391 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 62,391 |  |  |  | – |
Noninterest income – adjusted (non-GAAP) |  |  | 1,539 |  |  | 1,538 |  |  | 1,171 |  |  | 1,840 |  |  | 1,790 |  |  | 4,248 |  |  |  | 4,170 |
Efficiency ratio - adjusted (non-GAAP) |  |  | 55.72 | % |  | 57.77 | % |  | 62.57 | % |  | 52.53 | % |  | 59.29 | % |  | 58.51 | % |  |  | 60.27 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-GAAP taxable equivalent net interest income reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income - GAAP |  | $ | 22,650 |  | $ | 20,290 |  | $ | 19,352 |  | $ | 19,199 |  | $ | 18,613 |  | $ | 62,292 |  |  | $ | 56,023 |
Taxable equivalent adjustment |  |  | 8 |  |  | 8 |  |  | 8 |  |  | 7 |  |  | 6 |  |  | 24 |  |  |  | 17 |
Net interest income - taxable equivalent (non-GAAP) |  | $ | 22,658 |  | $ | 20,298 |  | $ | 19,360 |  | $ | 19,206 |  | $ | 18,619 |  | $ | 62,316 |  |  | $ | 56,040 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-GAAP taxable equivalent net interest margin reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin - GAAP (1) |  |  | 3.90 | % |  | 3.60 | % |  | 3.52 | % |  | 3.48 | % |  | 3.35 | % |  | 3.68 | % |  |  | 3.42 | %
Impact of taxable equivalent adjustment |  |  | – |  |  | – |  |  | – |  |  | 0.01 |  |  | – |  |  | – |  |  |  | – |
Net interest margin - taxable equivalent (non-GAAP) (1) |  |  | 3.90 | % |  | 3.60 | % |  | 3.52 | % |  | 3.49 | % |  | 3.35 | % |  | 3.68 | % |  |  | 3.42 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

| (1) |  | Annualized for the period s presented.

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