Avidia Bancorp, Inc. Reports Third Quarter 2025 Financial Results

Avidia Bancorp, Inc. (the "Company") (NYSE: "AVBC"), the holding company of Avidia Bank, today reported third quarter financial results.

Concurrent with the mutual-to-stock conversion of Avidia Bank's former mutual holding company and as described in the prospectus for the Company's initial public offering ("IPO"), the Company made a $10 million, one-time donation, of 900 thousand shares of common stock at a total market value of $9.0 million and a $1.0 million cash contribution to the Avidia Bank Charitable Foundation, Inc. This contribution resulted in a net loss of $907 thousand for the third quarter of 2025, or ($0.05) per share, compared to net income of $3.9 million reported for the prior quarter.

"We are pleased with the results for our initial quarter as a publicly traded company" said Robert Cozzone, President and Chief Executive Officer. "Our core metrics are solid, and we are well positioned for the future."

SELECTED FINANCIAL HIGHLIGHTS

• Net loss was $907 thousand, or ($0.05) per share, for the third quarter due to the stock and cash contribution to the Avidia Bank Charitable Foundation, Inc.
• Book value per share and tangible book value per share (non-GAAP) were $18.50 and $17.91, respectively, as of September 30, 2025. See the non-GAAP reconciliation at the end of this document for further information.

BALANCE SHEET:

Total assets were $2.8 billion at September 30, 2025, representing a decrease of $170.9 million, or 5.8%, from June 30, 2025.

• Total cash and cash equivalents decreased by $196.7 million from the second quarter, primarily due to the elevated cash balance as of June 30, 2025 related to the funds received from the IPO subscription offering.
• Gross loans increased by $26.7 million from the second quarter to $2.27 billion, primarily from an increase in commercial real estate loans.
  • Loan exposure related to office space at September 30, 2025 was $86 million or 3.8% of gross loans.
• Deposits decreased by $363.7 million from the second quarter to $2.08 billion, primarily due to the utilization of balances associated with subscription funds related to the conversion during the third quarter.
• Total shareholders' equity increased by $180.0 million from the second quarter to $371.4 million. The increase was primarily attributable to the capital raised during the Company's IPO, which was completed on July 31, 2025.

NET INTEREST INCOME

Net interest income was $23.4 million for the quarter ended September 30, 2025, compared to $20.6 million for the prior quarter, an increase of $2.8 million, or 13.6%. The net interest margin expanded 24 basis points to 3.43% for the quarter from 3.19% in the prior quarter.

• The yield on interest-earning assets increased by 4 basis points to 4.97%.
• The cost of interest-bearing liabilities decreased by 11 basis points to 2.06%.
• The cost of deposits decreased by 3 basis points to 1.33%.

NON-INTEREST INCOME

Noninterest income was $4.5 million for the quarter ended September 30, 2025, compared to $5.2 million for the prior quarter, representing a decrease of $720 thousand, or 13.7%.

• Payment processing income was $1.9 million, compared to $2.1 million for the prior quarter, representing a decrease of $222 thousand primarily related to the sale of the Direct Merchant Processing Book in the second quarter.
• Other non-interest income was $999 thousand, compared to $1.6 million in the prior quarter, representing a decrease of $599 thousand, including a decrease of $274 thousand in debit card income and a decrease of $193 thousand in swap income.

NON-INTEREST EXPENSE

Noninterest expense was $28.4 million for the quarter ended September 30, 2025, compared to $19.8 million for the prior quarter, representing an increase of $8.6 million, or 43.5%.

• Salaries and employee benefits increased $864 thousand from the second quarter to $9.8 million, $637 thousand of which was the full nine-month expense for the Employee Stock Ownership plan that was adopted in connection with the mutual-to-stock conversion.
• Data processing decreased $743 thousand to $2.3 million. The reduction was primarily due to $460 thousand in one-time credits associated with a billing adjustment.
• Payment processing expense was down $406 thousand due to reduced costs associated with the Direct Merchant Processing Book, which was sold in the second quarter.
• Other general and administrative expenses increased $9.3 million, primarily due to the $10.0 million contribution to the Avidia Bank Charitable Foundation, Inc, partially offset by a reduction in other expense line items.

INCOME TAXES

Income tax benefit for the quarter ended September 30, 2025 was $1.0 million, compared to income tax expense of $1.2 million in the prior quarter.

ASSET QUALITY

The allowance for credit losses ("ACL") was $24.3 million as of September 30, 2025, or 1.07% of total loans, compared to $23.4 million, or 1.04% of total loans at June 30, 2025. The Company recorded provisions for credit losses of $1.5 million during the quarter ended September 30, 2025.

Non-performing loans totaled $17.6 million as of September 30, 2025, an increase of $6.3 million from the prior quarter, primarily from an increase of non-accruing commercial loans. Total non-accrual loans to total loans was 0.77% as of September 30, 2025, compared to 0.50% as of June 30, 2025.

ABOUT AVIDIA BANCORP, INC.

Avidia Bancorp, Inc. is the bank holding company of Avidia Bank. Avidia Bank is a Massachusetts-chartered stock savings bank. With headquarters in Hudson, Massachusetts, it also operates nine full-service banking offices in western Middlesex County and eastern Worcester County, in Massachusetts.

NON-GAAP FINANCIAL MEASURES

This document contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP operating earnings can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP operating earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information. The Company adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

FOWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other similar expressions which do not relate to historical matters. Although we believe that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance. You should not place undue reliance on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond our control. Our actual results could differ materially from those presented in the forward-looking statements as a result of, among other factors, changes in general business and economic conditions nationwide and in our local markets, including changes which adversely affect borrowers' ability to service and repay loans; changes in customer behavior due to political, business and economic conditions, including inflation; conditions in the capital and debt markets; reductions in net interest income resulting from interest rate volatility and changes in the balances and mix of our loans and deposits; changes in market interest rates and real estate values; decreases in the value of securities and other assets or in deposit levels necessitating increased borrowing to fund loans and investments; competition from other financial institutions; changes in legislation or regulation and accounting principles, policies and guidelines; cybersecurity incidents; fraud; natural disasters; the risk that we may be unsuccessful in implementing our business strategy; and the other risks and uncertainties disclosed in Avidia Bancorp, Inc.'s definitive prospectus dated May 13, 2025, as filed the U.S. Securities and Exchange Commission. Forward looking statements speak only as of the date of this release, and we do not undertake any obligation to update or revise any of them to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events, except as may be required by applicable law or regulation.