Avidbank (AVBH) investor relations material

Executive summary

• Net income for Q1 2026 was $9.0 million ($0.84 per diluted share), up from $6.9 million in Q4 2025 and $5.4 million in Q1 2025, reflecting strong earnings growth and improved profitability metrics.

• Book value per share rose to $26.33, up $0.67 from Q4 2025 and $1.48 from Q1 2025.

• Return on average assets increased to 1.46% and return on average equity to 12.74%.

• The company maintained a diversified commercial banking model, focusing on the Bay Area and expanding nationally, with ongoing hiring and business line emphasis.

• Asset quality improved with resolution of non-performing loans and continued share repurchases.

Financial highlights

• Net interest income was $26.5 million, up 6% sequentially and 37% year-over-year, with net interest margin expanding to 4.38%.

• Non-interest income was $1.5 million, down from Q4 but up year-over-year, led by higher core banking and interchange fees.

• Non-interest expense totaled $14.1 million, up from Q4 and Q1 2025, mainly due to higher salaries, legal, and professional fees.

• Provision for credit losses was $1.4 million, down from Q4 but up from Q1 2025, reflecting higher loan balances.

• Efficiency ratio improved to 50.35%, down from 51.72% in Q4 2025 and 62.57% in Q1 2025.

Outlook and guidance

• Loan and deposit growth targets remain in the low double digits for 2026, with a strong pipeline but some timing uncertainty.

• Net interest margin is expected to decline slightly due to deposit cost pressures but likely to stay above 4.25%.

• Expenses are projected to rise in Q2 due to merit increases and additional hiring, with personnel expense expected to approach $10 million.

• Management continues to focus on disciplined growth, margin expansion, and maintaining strong asset quality.

• Effective tax rate is expected to be in the mid-28% range for the remainder of 2026.