Avidbank (AVBH) investor relations material

Executive summary

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

• Maintained a diversified commercial banking model focused on the Bay Area and expanding nationally, especially in venture and specialty finance.

• Continued investment in talent and franchise expansion, including the launch of a new SBA lending division.

• Core profitability and asset quality remained strong, supported by disciplined underwriting and management focus.

Financial highlights

• Net interest income was $26.7 million, up 3% sequentially and 31% year-over-year.

• Net interest margin declined 12 basis points sequentially to 4.26% due to higher deposit costs.

• 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, reflecting the litigation settlement; core expenses decreased to $13.8 million.

• Book value per share increased to $26.97 at June 30, 2026.

Outlook and guidance

• Targeting low double-digit growth in loans and deposits for the remainder of the year, with a focus on organic growth in venture lending and specialty finance.

• Confident in robust loan and deposit pipelines, expecting stronger growth in the second half.

• 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 disciplined credit culture.