Avidbank Holdings, Inc.

Q1 net income was $9.0 million, or $0.84 per diluted share, versus $6.9 million, or $0.65 per diluted share in Q4. Return on assets improved to 1.46% from 1.12%, return on average equity reached 12.7%, and efficiency ratio improved to 50.4%. Loans grew $24 million in Q1 and are up $332 million, or 18%, since March 31, 2025; deposits rose $13 million in Q1 and are up $270 million, or 14%, year over year. Net interest margin was 4.38%, up 25 basis points sequentially; the quarter included about 4 basis points from a special FHLB dividend, while Q4 included a $726 thousand interest reversal that reduced margin by 12 basis points. The provision for credit losses was $1.4 million versus $2.8 million in Q4, and net charge-offs were $2.8 million, or 52 basis points of average loans. Nonperforming loans declined $16.3 million, or 75 basis points of loans. Noninterest income was $1.5 million, noninterest expense was $14.1 million, book value per share was $26.33, and Tier 1 capital was 11.39%. Management expects the tax rate to remain in the mid-28% range for the rest of 2026. For guidance, management reiterated low double-digit loan and deposit growth for the year, expects deposit costs to stay above 3% and margin to move down a little from current levels, and said second-quarter expenses will be higher as hiring continues.

Mark Mordell’s tone was upbeat but measured: he said Q1 was “a pretty good quarter” and emphasized that profitability metrics have improved over the last several quarters. He framed the strategy around growing more selectively, adding bankers, and leaning into business lines such as venture, C&I, asset-based, sponsor, and search rather than real estate. On venture and SaaS, he stressed a more critical underwriting posture tied to AI adoption, cash burn, and whether companies can raise follow-on funding.

Patrick Oakes highlighted stronger earnings, with net income of $9.0 million and EPS of $0.84, plus better profitability ratios and a 4.38% net interest margin. He said deposit costs averaged 2.98% in the quarter and the spot rate was 3.03% at March 31, warning that funding costs are likely to stay above 3% and could pressure margin modestly. He also pointed to a lower provision of $1.4 million, charge-offs of $2.8 million, nonperforming loan decline of $16.3 million, and a higher expense base of $14.1 million, while noting share repurchases of 25 thousand shares for $693 thousand and expecting the tax rate to stay in the mid-28% range.

Analysts focused heavily on SaaS and venture lending exposure, asking about a roughly $165 million exposure, reserve coverage, and whether underwriting standards were changing. Management said the main concern is the horizontal SaaS segment, where two loans totaling about $4 million are criticized or classified, and described a deeper review of AI integration, funding runway, and whether companies can still attract capital. Questions also covered margin durability, deposit pricing, growth targets, expenses, criticized loans, and venture funding/IPO activity; management said low-double-digit growth targets remain intact, expenses will rise with hiring, the IPO market is quiet, and M&A is slowing until the market sorts out which companies are viable.