Avidbank (AVBH) investor relations material

Executive summary

• Q3 net income was $10.2M, or $0.94 diluted EPS, versus $7.6M in Q2 and a $37.7M loss in Q3 2025, which included a $62.4M securities-sale loss.

• Period-end loans rose $58M QoQ and 17% YoY; core deposits grew ~$76M excluding temporary and brokered balances.

• Assets were $2.97B, loans $2.3B and deposits $2.6B; deposits included a temporary $270M client balance expected to leave in Q4.

Financial highlights

• Net interest income was $28.7M, up from $26.7M in Q2 and $22.7M in Q3 2025; 9M NII rose 31% YoY to $81.9M.

• Q3 provision for credit losses was $1.2M versus $2.8M in Q2; 9M provision was $5.4M versus $2.3M.

• Non-interest income was $1.7M and non-interest expense $15.1M; expenses fell from $16.5M in Q2, which included a $2.6M litigation settlement.

• Adjusted 9M net income was $27.4M and adjusted diluted EPS $2.54, excluding specified non-recurring items and related tax effects.

• 9M 2026 net income was $26.9M versus a $26.5M loss in 9M 2025.

Outlook and guidance

• Healthy loan pipelines support expectations for a strong Q4, but elevated construction payoffs are expected to persist and may offset new commitments.

• The temporary $270M client deposit is expected to leave in Q4; the existing $10M of brokered deposits matures in Q4, with any new use dependent on funding needs and economics.

• The asset-sensitive balance sheet is expected to benefit from rising rates; Q4 expenses are expected to be flat to slightly higher, and deposit beta is expected to remain below 50%.

• Longer-term efficiency improvement is expected to be gradual as revenue growth offsets hiring-related expense growth; next year's tax rate is expected in the mid-28% range.

• Long-term strategy includes nationwide expansion and targeted lending; assets and loans had 2018–Q3 2026 CAGRs of 16% and 14%.