Monitor the Q3 2026 earnings call for guidance on net interest margin trajectory and credit quality trends, especially criticized/classified loans which increased to 2.16% of total loans. The elimination of short-term borrowings and strong deposit growth are positive liquidity signals, but margin compression and elevated provision costs warrant caution.
Price Chart
Executive Summary
Avidbank Holdings reported Q2 2026 GAAP net income of $7.6M ($0.71/diluted share), down from $9.0M ($0.84) in Q1 2026 but up from $5.8M ($0.75) in Q2 2025. Results included a $2.6M litigation settlement and $1.3M BOLI death benefit; adjusted net income was $8.2M ($0.76/diluted share). Net interest margin compressed to 4.26% from 4.38% in Q1, while loan growth remained strong (+9% annualized) and short-term borrowings were eliminated. The sequential earnings decline and margin compression are notable, but strong loan/deposit growth and credit improvement provide offsetting positives.
Key Facts
- GAAP net income $7.6M vs $9.0M in Q1 2026 and $5.8M in Q2 2025
- GAAP diluted EPS $0.71 vs $0.84 in Q1 2026 and $0.75 in Q2 2025
- Adjusted diluted EPS (non-GAAP) $0.76
- Net interest margin 4.26% vs 4.38% in Q1 2026 and 3.60% in Q2 2025
- Period-end loans $2.22B, +9% annualized from Q1 2026 and +16% YoY
- Period-end deposits $2.32B, +22% annualized from Q1 2026 and +16% YoY
- Short-term borrowings reduced to $0 from $55M at Q1 2026
- Non-performing loans to total loans 0.65% vs 0.75% in Q1 2026
- Provision for credit losses $2.8M vs $1.4M in Q1 2026, including $1.9M partial charge-off on one construction loan
- Non-interest expense $16.5M included $2.6M litigation settlement
- Book value per share $26.97, +$0.64 from Q1 2026
Financial Impact
GAAP net income declined $1.4M QoQ; adjusted net income declined $0.8M QoQ. Net interest margin compressed 12bps QoQ. Provision for credit losses doubled QoQ to $2.8M.
Risk Factors
- Net interest margin compression from higher deposit costs and lower FHLB dividends
- Elevated provision for credit losses ($2.8M) driven by a $1.9M construction loan charge-off
- Criticized loans increased to 2.16% of total loans from 1.57% in Q1 2026
- Non-interest expense elevated by $2.6M litigation settlement
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-024293 |
| Document: avbh20260518_8k.htm | 0001437749-26-024293 |
| Document: 0001437749-26-024293-index-headers.html | 0001437749-26-024293 |
| Document: 0001437749-26-024293-index.html | 0001437749-26-024293 |
| Document: 0001437749-26-024293.txt | 0001437749-26-024293 |
| 8-K Data (Synthetic) | 0001437749-26-024293 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $32.00 | awaiting T+5 | — | $32.71 (+2.22%) |
Sep 22, 2026 4w ago | Institutional Cluster | $31.80 $31.23 | ▼ −1.79% | ▼ −0.61% | $32.71 (+2.86%) |
Sep 4, 2026 7w ago | 144 | $31.92 $31.62 | ▼ −0.94% | ▲ +0.27% | $32.71 (+2.47%) |
Aug 3, 2026 12w ago | 8-K | $32.73 $32.33 | ▼ −1.22% | ▼ −3.25% | $32.71 (−0.06%) |
Jul 23, 2026 13w ago | 8-K | $31.86 $32.86 | ▲ +3.14% | ▲ +2.77% | $32.71 (+2.67%) |
Jun 15, 2026 19w ago | Institutional Cluster | $32.01 $32.05 | ▲ +0.13% | ▲ +1.51% | $32.71 (+2.19%) |
Apr 27, 2026 26w ago | 8-K | $30.40 $29.26 | ▼ −3.75% | ▼ −5.44% | $32.71 (+7.60%) |
Apr 7, 2026 28w ago | DEFA14A | $29.60 $29.57 | ▼ −0.10% | ▼ −3.62% | $32.71 (+10.51%) |
US Market Status
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