Avidbank (AVBH) Q3 2025 earnings summary

Executive summary

• Completed IPO in August 2025, raising $61.3 million in net proceeds, which strengthened capital, enabled securities portfolio repositioning, and paid off all short-term borrowings.

• Reported a net loss of $37.7 million for Q3 2025, primarily due to a $62.4 million pre-tax loss on securities sales; adjusted net income was $6.7 million.

• Net interest margin expanded to 3.90% in Q3 2025 from 3.60% in Q2 2025 and 3.35% in Q3 2024, driven by lower borrowing costs and improved deposit mix.

• Book value per share was $25.00 at September 30, 2025, up 6% from year-end 2024.

• Strong loan and deposit growth, with loans up 10% and average deposits up 13% year-over-year.

Financial highlights

• Net interest income for Q3 2025 was $22.7 million, up 22% year-over-year; noninterest income was $(60.9) million due to the securities loss.

• Adjusted return on average assets was 1.13% and adjusted return on average equity was 11.23% in Q3 2025.

• Efficiency ratio (adjusted) improved to 55.72% in Q3 2025.

• Noninterest expense rose to $13.5 million, mainly due to higher salaries, IPO-related expenses, and lower capitalized loan origination costs.

• Allowance for credit losses to total loans was 1.07%; nonperforming assets to total assets was 0.12%.

Outlook and guidance

• Management expects improved core profitability and margin expansion in Q4 2025 as the full impact of the portfolio repositioning is realized.

• Double-digit loan and deposit growth guidance maintained, with strong pipelines for both.

• Margin projected to exceed 4% post-restructuring, with asset sensitivity manageable even with further rate cuts.

• Focus on expanding national presence, especially in venture and specialty finance verticals.

• Anticipates continued pressure from competitive deposit markets and interest rate volatility.