Avidbank Holdings, Inc. reported a net income of $9.0 million, or $0.84 per diluted share, for the first quarter of 2026, marking a significant increase from the $5.4 million, or $0.71 per diluted share, reported in the same period of 2025. This growth in profitability was driven by a 37% rise in net interest income, which reached $26.5 million, up from $19.4 million a year earlier. The increase in net interest income was attributed to a higher volume of average loans and a decrease in interest expenses, alongside a net interest margin expansion to 4.38% from 3.52% year-over-year.
In terms of operational metrics, Avidbank's total assets grew to $2.58 billion as of March 31, 2026, compared to $2.57 billion at the end of 2025. The bank's loan portfolio increased by $24.4 million, or 5% annualized, primarily due to growth in commercial real estate loans. Average deposits also saw a notable increase, rising by $265.1 million, or 14%, compared to the first quarter of 2025, with period-end deposits up by $13.2 million, or 2% annualized, from the previous quarter.
Strategically, Avidbank has been active in managing its capital structure, having repurchased 25,000 shares of its common stock for $693,000 during the quarter. The bank's total shareholders' equity increased to $288.4 million, reflecting a $7.5 million rise from the previous quarter, driven by retained earnings growth. The bank's efficiency ratio improved to 50.35%, down from 62.57% in the prior year, indicating enhanced operational efficiency.
The bank's credit quality indicators showed improvement, with non-performing assets to total assets decreasing to 0.63% from 0.95% at the end of 2025. The allowance for credit losses on loans was $20.9 million, representing 0.96% of total loans, down from 1.02% a year earlier. The provision for credit losses was $1.4 million for the quarter, reflecting the bank's proactive approach to managing credit risk amid higher loan balances.
Looking ahead, Avidbank remains focused on maintaining its growth trajectory while managing risks associated with economic conditions and interest rate fluctuations. The bank's management expressed confidence in its ability to navigate the competitive landscape and capitalize on opportunities for further expansion, particularly in the commercial and real estate lending sectors.
About Avidbank Holdings, Inc.
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