Avidbank Holdings Reports $7.6 Million Net Income for Q2 2026, Driven by 31% Increase in Net Interest Income

Avidbank Holdings, Inc. reported a net income of $7.6 million for the second quarter of 2026, translating to $0.71 per diluted share, compared to $5.8 million or $0.75 per diluted share in the same period of 2025. The increase in net income was attributed to higher net interest income, which rose to $26.7 million, a 31% increase from $20.3 million in the prior year. This growth was driven by an increase in average loan balances and improved yields on securities, despite a slight decline in the yield on loans. The bank's net interest margin expanded to 4.26% from 3.60% year-over-year.

Total assets increased to $2.66 billion as of June 30, 2026, up from $2.57 billion at the end of 2025. The growth in assets was primarily due to a $75.7 million increase in loans, which reached $2.22 billion, and a $14 million rise in debt securities. Deposits also saw a significant increase, rising by $135.9 million to $2.32 billion, reflecting a 13% annualized growth rate. The bank's total shareholders' equity increased to $296.2 million, up from $281 million at the end of the previous year.

In terms of operational developments, Avidbank has focused on enhancing its commercial banking suite, recently establishing a Small Business Administration lending division. The bank's employee headcount rose to 162 as of June 30, 2026, compared to 149 a year earlier, indicating a strategic investment in human resources to support growth. The bank's non-performing loans decreased to 0.65% of total loans, down from 1.14% at the end of 2025, reflecting improved asset quality.

The provision for credit losses increased to $2.8 million for the second quarter of 2026, up from $925,000 in the same quarter of 2025, primarily due to higher loan balances and a partial charge-off of a non-performing construction loan. The allowance for credit losses as a percentage of total loans was 0.97% as of June 30, 2026, compared to 1.03% a year earlier. The bank's outlook remains positive, with expectations for continued growth in loans and deposits, supported by a favorable interest rate environment and strategic initiatives aimed at expanding its market presence.