Avidbank Holdings Inc. Sees Strong Q3 Earnings: Loans Grow 10%, Core Deposits Rise
Avidbank Holdings Inc., a leading provider of commercial banking services, has announced strong earnings for the third quarter of 2026. The company's Chairman and CEO, Mark Mordell, reported that profitability improved, with net income increasing to $10.2 million for the quarter.
Loan growth was a highlight of the quarter, with loans increasing approximately $58 million or 10% annualized, and were up 17% over the past year. This growth was driven by strong demand in commercial and industrial (C&I), multifamily, and owner-occupied commercial real estate lending.
Mark Mordell noted that loan pipelines continue to be healthy into Q4 and hopefully into next year, suggesting a continued positive trend for the company's lending business. However, the construction land portfolio saw a decline due to elevated payoffs, but the growth in other areas was encouraging.
Deposits also showed strong growth, with approximately $270 million deposited by an existing client following the sale of a portion of their business. However, this deposit is expected to leave the company over the course of the fourth quarter. Excluding this temporary inflated balance and brokered deposits, core deposit growth was around $76 million.
The company's credit quality remained strong, with non-performing loans increasing modestly to 70 basis points of total loans. However, net charge-offs were essentially zero during the quarter, indicating no broad-based credit deterioration across the portfolio.
Avidbank Holdings also strengthened its capital position by issuing $30 million of new subordinated debt and redeeming its existing $22 million issuance. This move provided additional support for continued organic growth while maintaining strong capital ratios.
Overall, Avidbank Holdings Inc.'s Q3 earnings were a testament to the company's solid growth strategy and commitment to improving profitability. With loan growth, core deposit increases, and improved credit quality, the company is well-positioned to move into the fourth quarter with confidence."
