Avidbank (AVBH) investor relations material

Executive summary

• Net income for Q2 2026 was $7.6 million ($0.71 per diluted share), with adjusted net income of $8.2 million ($0.76 per share), reflecting strong core profitability and growth in loans and deposits, despite a $2.6 million litigation settlement and $1.3 million in BOLI death benefit income.

• Maintained a diversified commercial banking model with a focus on the Bay Area and expanding national presence, especially in venture and specialty finance.

• Management continues to invest in talent, launch new divisions such as SBA lending, and maintain disciplined underwriting to support asset quality and franchise expansion.

Financial highlights

• Net interest income for Q2 2026 was $26.7 million, up 3% sequentially and 31% year-over-year, with net interest margin at 4.26%, down 12 basis points sequentially but up from 3.60% year-over-year.

• Non-interest income was $3.1 million, including $1.3 million in BOLI proceeds; core non-interest income was $1.7 million.

• Non-interest expense totaled $16.5 million, mainly due to a $2.6 million litigation settlement and higher personnel costs.

• Book value per share increased to $26.97, up $0.64 from Q1 2026 and 10% annualized from year-end 2025.

• Efficiency ratio improved to 55.41% (GAAP) and 48.73% (adjusted).

Outlook and guidance

• Management targets disciplined, low double-digit growth in loans and deposits, with a focus on organic expansion, especially in venture lending and specialty finance.

• Net interest margin may trend down further, potentially to 4.20%, as deposit costs stabilize and core funding increases.

• Management expects to maintain strong asset quality and a disciplined credit culture, with ongoing monitoring of loan portfolio concentrations and market risks.