Avidbank Q1 Net Income Jumps 31% to $9 Million, NIM Expands to 4.38%
Avidbank reported Q1 net income of $9.0 million, or $0.84 per share, up from $6.9 million in Q4 2025 and $5.4 million a year earlier, with net interest margin rising to 4.38%. Loans grew by $24.4 million, deposits rose $15.2 million, and book value per share climbed to $26.33.
1. Financial Results and Profitability
Avidbank generated net income of $9.0 million in Q1 2026, or $0.84 per diluted share, compared to $6.9 million in Q4 2025 and $5.4 million in Q1 2025. Return on average assets rose to 1.46% and net interest income reached $26.5 million, driven by higher loan balances, lower funding costs and a special FHLB dividend contributing 4 basis points to margin.
2. Balance Sheet Growth
Period-end loans, net of deferred fees, increased by $24.4 million, representing 5% annualized growth from Q4 and 18% year-over-year. Average deposits grew by $15.2 million, or 3% annualized, while period-end deposits rose 14% from a year earlier, reflecting continued client acquisition and deposit repricing.
3. Capital and Shareholder Returns
Book value per share reached $26.33 as of March 31, 2026, up $0.67 from December 31, 2025 and $1.48 from March 31, 2025. The company repurchased 25,000 shares for $693,000 at an average price of $27.69 per share under its share repurchase program.
4. Asset Quality and Credit Management
Non-performing assets to total assets declined to 0.63% from 0.95% in Q4 after resolution of three non-performing loans, including two commercial and industrial charge-offs. Net charge-offs to average loans were 0.52% for the quarter, reflecting proactive credit management and overall portfolio strength.