Avidbank Holdings Reports $19.6 Million Net Loss for 2025 Amid Securities Portfolio Repositioning

**Avidbank Holdings, Inc. Reports Net Loss for 2025, Cites Securities Portfolio Repositioning**

Avidbank Holdings, Inc., a San Jose, California-based bank holding company, reported a net loss of $19.6 million for the year ended December 31, 2025, compared to a net income of $21.0 million for the previous year. The company attributed the loss primarily to a $62.4 million pre-tax loss incurred from the sale of available-for-sale securities as part of a strategic repositioning of its investment portfolio. This repositioning involved selling $274.7 million in securities and purchasing $205.4 million in new securities with an average purchase yield of 4.57% and a duration of 5.4 years.

Despite the net loss, Avidbank experienced growth in key areas. Total loans, net of deferred fees, increased by $283.5 million, or 15%, reaching $2.15 billion. Average deposits also rose by $241.6 million, or 13%, to $2.01 billion, while period-end deposits increased by $294.7 million, or 16%, to $2.19 billion. The company's net interest margin expanded to 3.80% for the year, compared to 3.44% in the prior year, reflecting improved profitability on its interest-earning assets.

Strategic developments for Avidbank in 2025 included the completion of its initial public offering (IPO) in August, raising $61.3 million in net proceeds after deducting underwriting fees, commissions, and offering expenses. The IPO involved the sale of 3,001,500 shares of common stock at a public offering price of $23.00 per share. Proceeds from the IPO were used to increase the capital of the Bank to support organic growth strategies, including expanding overall market share and lending activities, strengthening regulatory capital, optimizing the balance sheet by repositioning a substantial portion of the available-for-sale securities portfolio, repaying short-term borrowings and non-core funding, and for working capital and other general corporate purposes.

Key operational metrics for Avidbank as of December 31, 2025, included a Tier 1 leverage ratio of 11.23%, a Common Equity Tier 1 capital ratio of 11.05%, and a total risk-based capital ratio of 12.57%. The allowance for credit losses on loans and unfunded commitments to total loans was 1.15%. Non-performing assets represented 0.95% of total assets, and non-performing loans were 1.14% of total loans. The company employed 151 full-time equivalent employees as of the end of the year. The company's efficiency ratio was 170.65%, but adjusted for the loss on the sale of available-for-sale securities, the adjusted efficiency ratio was 56.56%.