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 profitability and margin expansion.

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

• The company maintained a diversified commercial banking model, focusing on the Bay Area and expanding nationally, serving clients in 40 states.

• Asset quality improved with resolution of three non-performing loans, including two charge-offs and one payoff.

• The company remains focused on growth, with hiring plans for additional bankers and a continued emphasis on business lines over real estate.

Financial highlights

• Net interest margin expanded to 4.38%, up from 4.13% in Q4 2025 and 3.52% in Q1 2025, aided by a special FHLB dividend.

• Net interest income was $26.5 million, up $1.5 million from Q4 2025 and $7.1 million from Q1 2025.

• Provision for credit losses was $1.4 million, down from $2.8 million in Q4 2025 but up from $0 in Q1 2025.

• Non-interest income was $1.5 million, down from $1.8 million in Q4 2025 but up from $1.2 million in Q1 2025.

• Non-interest expense totaled $14.1 million, up from $13.9 million in Q4 2025, mainly due to higher credit-related legal and professional fees.

Outlook and guidance

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

• Net interest margin is expected to decline slightly due to upward pressure on deposit costs, likely staying 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.

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

• Ongoing investment in talent and technology to support national expansion and diversified lending.