Avidbank (AVBH) Q3 2025 earnings summary

Executive summary

• Completed IPO in August 2025, raising $61.3–$62 million in net proceeds, which strengthened capital, enabled repayment of all short-term borrowings, and allowed for a strategic securities portfolio repositioning.

• Reported a GAAP 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, excluding this loss.

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

• Achieved strong loan and deposit growth, with period-end loans up 10% and average deposits up 13% year-over-year.

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

Financial highlights

• Net loss for Q3 2025 was $37.7 million, or ($4.12) per diluted share; adjusted net income was $6.7 million for Q3 2025.

• Net interest income rose 22% year-over-year to $22.7 million for Q3 2025; net interest margin improved to 3.90%.

• Adjusted return on average assets was 1.13%; adjusted return on average equity was 11.23%.

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

• Noninterest expense rose to $13.5 million, including IPO-related costs.

Outlook and guidance

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

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

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

• Continued emphasis on core deposit growth and diversified funding sources.

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