Avidia Bancorp, Inc. Reports Second Quarter 2025 Financial Results

By: Avidia Bancorp, Inc. via Business Wire

August 01, 2025 at 17:50 PM EDT

Avidia Bancorp, Inc. (the “Company”) (NYSE: “AVBC”), the holding company of Avidia Bank, today reported second quarter financial results of Assabet Valley Bancorp, the former mutual holding company of Avidia Bank. As previously reported, Assabet Valley Bancorp completed its mutual-to-stock conversion transaction effective July 31, 2025, which resulted in the Company completing its initial public offering of shares of its common stock and becoming the stock holding company of Avidia Bank.

Selected Financial Highlights for the Second Quarter of 2025

Statement of Operations:

Quarterly net income was $3.9 million, compared to a net loss of $11.6 million for the first quarter.
Quarterly net interest income increased by $1.4 million from the first quarter to $20.6 million.
Net interest margin increased by 15 basis points from the first quarter to 3.19%.
- The cost of interest-bearing liabilities decreased by 13 basis points.
- The cost of total deposits fell 14 basis points to 1.36%.
Provision for credit losses totaled $1.1 million.
Quarterly non-interest income increased by $1.5 million from the first quarter to $5.2 million.
Quarterly non-interest expense decreased by $2.1 million from the first quarter to $19.8 million.
- Salaries and employee benefits decreased $2.7 million from the first quarter as there were incentive plan terminations and increased short-term incentive payouts in the previous quarter.
- The efficiency ratio was 76.4%, compared to 95.2% in the first quarter.
Income tax expense was $1.2 million.

Balance Sheet:

Total cash and cash equivalents increased by $225 million from the first quarter, primarily related to the funds received from the IPO subscription offering.
Gross loans increased by $15.0 million from the first quarter to $2.25 billion.
Deposits increased by $309 million from the first quarter to $2.44 billion, also primarily related to funds received from the IPO subscription offering.
Federal Home Loan Bank advances decreased by $65 million from the first quarter to $260.0 million.
Total capital increased by $5.4 million from the first quarter to $191.4 million.

Asset Quality:

Non-accrual loans to total loans was 0.50% compared to 0.53% in the first quarter.

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.

Forward-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.

Assabet Valley Bancorp
Selected Financial Highlights (Unaudited)

	At or for the Quarters Ended
(In thousands, except per share data)	June 30, 2025			March 31, 2025			June 30, 2024
Consolidated Financial Condition Data, (End of Period):
Total assets	$	2,957,908		$	2,706,631		$	2,652,318
Cash and due from banks		308,586			83,082			74,064
Securities available for sale		266,249			261,946			274,900
Securities held-to-maturity		16,747			16,746			16,746
Total loans		2,248,021			2,233,033			2,145,471
Allowance for credit losses		(23,425)			(21,849)			(20,875)
Net loans		2,224,596			2,211,184			2,124,596
Bank Owned Life Insurance		36,093			35,805			35,004
Goodwill		11,936			11,936			11,936
Deposits		2,439,608			2,131,068			2,021,839
Federal Home Loan Bank advances		260,000			325,000			372,300
Subordinated Debt		27,738			27,715			27,605
Total capital		191,426			186,057			187,045

Consolidated Operating Data:
Total interest and dividend income	$	31,859		$	31,049		$	30,893
Total interest expense		11,241			11,838			12,585
Net interest income		20,618			19,211			18,308
Provision for credit losses		1,071			17,616			(320)
Net interest income after provision for credit losses		19,547			1,595			18,628
Total non-interest income		5,246			3,727			3,445
Total non-interest expense		19,763			21,831			18,963
Income (loss) before income tax expense		5,030			(16,509)			3,110
Income tax expense (benefit)		1,158			(4,922)			759
Net income (loss)		3,872			(11,587)			2,351

Performance Ratios:
Return on average assets (annualized)		0.57	%		(1.76)	%		0.37	%
Return on average equity (annualized)		8.20			(23.86)			4.69
Cost of deposits		1.36			1.50			1.76
Yield on loans		5.20			5.16			5.49
Interest rate spread ⁽¹⁾		2.76			2.62			2.46
Net interest margin⁽²⁾		3.19			3.04			3.05
Noninterest income as a percentage of average assets		0.77			0.57			0.55
Noninterest expense as a percentage of average assets		2.91			3.32			3.01
Efficiency ratio⁽³⁾		76.41			95.18			87.17
Average interest-earning assets as a percentage of average interest-bearing liabilities		124.77			122.65			127.92

Capital Ratios (Avidia Bank only):
Total equity as a percentage of total assets		7.24	%		7.98	%		7.89	%
Total capital as a percentage of risk-weighted assets		11.41			11.18			11.64
Tier 1 capital as a percentage of risk-weighted assets		10.27			10.09			10.57
Common equity tier 1 capital as a percentage of risk-weighted assets		10.27			10.09			10.57
Tier 1 capital as a percentage of average assets		8.00			7.96			8.28

Asset Quality Ratios:
Allowance for credit losses as a percentage of total loans		1.04	%		0.98	%		0.97	%
Allowance for credit losses as a percentage of non-performing loans		207.79			184.11			473.73
Allowance for credit losses as a percentage of non-accrual loans		207.79			184.11			473.73
Non-accrual loans as a percentage of total loans		0.50			0.53			0.21
Net recoveries (charge-offs) as a percentage of total loans		0.01			(3.08)			0.02
Total non-accruing assets as a percentage of total assets		0.38			0.44			0.17

(1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(2) Represents net interest income as a percentage of average interest-earning assets.
(3) Represents noninterest expenses divided by the sum of net interest income and noninterest income.

Assabet Valley Bancorp
Consolidated Balance Sheets (Unaudited)

	As of									June 30, 2025 Change From
(In thousands)	June 30, 2025			March 31, 2025			June 30, 2024			March 31, 2025						June 30, 2024
Assets
Cash and due from banks	$	24,667		$	24,282		$	15,394		$	385		1.6		%	$	9,273		60.2		%
Short-term investments		283,919			58,800			58,671			225,119		382.9				225,248		383.9
Total cash and cash equivalents		308,586			83,082			74,065			225,504		271.4				234,521		316.6

Securities available for sale, at fair value		266,249			261,946			274,900			4,303		1.6				(8,651	)	(3.1	)
Equity securities, at fair value		-			-			13,430			-		-				(13,430	)	(100.0	)
Securities held to maturity, at amortized cost		16,747			16,746			16,746			1		-				1		-
Total securities		282,996			278,692			305,076			4,304		-				(22,080	)	-

Federal Home Loan Bank stock, at cost		12,083			14,729			16,210			(2,646	)	(18.0	)			(4,127	)	(25.5	)

Loans held for sale		-			711			1,485			(711	)	(100.0	)			(1,485	)	(100.0	)

Total loans		2,248,021			2,233,033			2,145,471			14,988		0.7				102,550		4.8
Less: Allowance for credit losses		(23,425	)		(21,849	)		(20,875	)		(1,576	)	7.2				(2,550	)	12.2
Net loans		2,224,596			2,211,184			2,124,596			13,412		0.6				100,000		4.7

Premises and equipment, net		29,098			29,020			28,133			78		0.3				965		3.4
Bank-owned life insurance		36,093			35,805			35,004			288		0.8				1,089		3.1
Accrued interest receivable		8,922			8,802			9,110			120		1.4				(188	)	(2.1	)
Net deferred tax asset		11,323			11,738			14,520			(415	)	(3.5	)			(3,197	)	(22.0	)
Goodwill		11,936			11,936			11,936			-		-				-		-
Mortgage servicing rights		3,253			3,289			3,483			(36	)	(1.1	)			(230	)	(6.6	)
Other assets		29,022			17,643			28,700			11,379		64.5				322		1.1
Total Assets	$	2,957,908		$	2,706,631		$	2,652,318		$	251,277		9.3		%	$	305,590		11.5		%

Liabilities
Deposits	$	2,439,608		$	2,131,068		$	2,021,839		$	308,540		14.5		%	$	417,769		20.7		%
Federal Home Loan Bank advances		260,000			325,000			372,300			(65,000	)	(20.0	)			(112,300	)	(30.2	)
Subordinated debt		27,738			27,715			27,605			23		0.1				133		0.5
Mortgagors' escrow accounts		3,498			3,763			3,042			(265	)	(7.0	)			456		15.0
Accrued expenses and other liabilities		35,638			33,028			40,487			2,610		7.9				(4,849	)	(12.0	)
Total liabilities	$	2,766,482		$	2,520,574		$	2,465,273		$	245,908		9.8		%	$	301,209		12.2		%

Capital:
Retained earnings	$	207,555		$	203,683		$	209,682		$	3,872		1.9		%	$	(2,127	)	(1.0	)	%
Accumulated other comprehensive loss		(16,129	)		(17,626	)		(22,637	)		1,497		(8.5	)			6,508		(28.7	)
Total capital	$	191,426		$	186,057		$	187,045		$	5,369		2.9			$	4,381		2.3		%

Total Liabilities and Capital	$	2,957,908		$	2,706,631		$	2,652,318		$	251,277		9.3		%	$	305,590		11.5		%

Assabet Valley Bancorp
Consolidated Statements of Operations QTD (Unaudited)

										Three Months Ended June 30, 2025 Change
	Three Months Ended									From Three Months Ended
(In thousands)	June 30, 2025			March 31, 2025			June 30, 2024			March 31, 2025						June 30, 2024
Interest and dividend income:
Loans, including fees	$	28,883		$	28,183		$	27,492		$	700		2.5		%	$	1,391		5.1		%
Securities		2,555			2,651			2,833			(96	)	(3.6	)			(278	)	(9.8	)
Other		421			215			568			206		95.8				(147	)	(25.9	)
Total interest and dividend income		31,859			31,049			30,893			810		2.6				966		3.1

Interest expense:
Deposits		7,242			7,731			8,285			(489	)	(6.3	)			(1,043	)	(12.6	)
Federal Home Loan Bank advances		3,647			3,792			3,985			(145	)	(3.8	)			(338	)	(8.5	)
Subordinated debt		352			315			315			37		11.7				37		11.7
Total interest expense		11,241			11,838			12,585			(597	)	(5.0	)			(1,344	)	(10.7	)

Net interest income:		20,618			19,211			18,308			1,407		7.3				2,310		12.6
Provision expense (reversal) for credit losses		1,071			17,616			(320	)		(16,545	)	(93.9	)			1,391		(434.7	)
Net interest income, after provision expense (reversal) for credit losses		19,547			1,595			18,628			17,952		1125.5				919		4.9

Non-interest income:
Customer service fees		884			901			762			(17	)	(1.9	)			122		16.0
Net (loss) on sale of securities available for sale		(78	)		(541	)		(1,366	)		463		(85.6	)			1,288		(94.3	)
Net recognized gain on equity securities		-			-			273			-		-				(273	)	(100.0	)
Net write down on premises and equipment no longer in use		-			(356	)		-			356		(100.0	)			-		-
Payment processing income		2,079			2,192			1,798			(113	)	(5.2	)			281		15.6
Income on bank-owned life insurance		289			279			195			10		3.6				94		48.2
Mortgage banking income		162			16			408			146		912.5				(246	)	(60.3	)
Investment commissions		312			350			352			(38	)	(10.9	)			(40	)	(11.4	)
Debit card income		793			525			573			268		51.0				220		38.4
Credit card income		58			49			335			9		18.4				(277	)	(82.7	)
Other		747			312			115			435		139.4				632		549.6
Total non-interest income		5,246			3,727			3,445			1,519		40.8				1,801		52.3

Non-interest expense:
Salaries and employee benefits		8,909			11,566			8,701			(2,657	)	(23.0	)			208		2.4
Occupancy and equipment		2,042			2,018			2,384			24		1.2				(342	)	(14.3	)
Data processing		2,994			3,378			2,218			(384	)	(11.4	)			776		35.0
Professional fees		1,088			661			739			427		64.6				349		47.2
Payment processing		932			1,043			992			(111	)	(10.6	)			(60	)	(6.0	)
Deposit insurance		780			632			687			148		23.4				93		13.5
Advertising		310			265			334			45		17.0				(24	)	(7.2	)
Telecommunications		96			92			101			4		4.3				(5	)	(5.0	)
Problem loan and foreclosed real estate, net		194			112			100			82		73.2				94		94.0
Other general and administrative		2,418			2,064			2,707			354		17.2				(289	)	(10.7	)
Total non-interest expense		19,763			21,831			18,963			(2,068	)	(9.5	)			800		4.2

Income (loss) before income tax expense		5,030			(16,509	)		3,110			21,539		(130.5	)			1,920		61.7
Income tax expense (benefit)		1,158			(4,922	)		759			6,080		(123.5	)			399		52.6
Net income (loss)	$	3,872		$	(11,587	)	$	2,351		$	15,459		(133.4	)	%	$	1,521		64.7		%

Assabet Valley Bancorp
Consolidated Statements of Operations YTD (Unaudited)

	Six Months Ended						Six Months Ended June 30, 2025 Change
(In thousands)	June 30, 2025			June 30, 2024			From Six Months Ended June 30, 2024
Interest and dividend income:
Loans, including fees	$	57,067		$	54,750		$	2,317		4.2		%
Securities		5,206			4,953			253		5.1
Other		636			1,038			(402	)	(38.7	)
Total interest and dividend income		62,909			60,741			2,168		3.6

Interest expense:
Deposits		14,973			15,872			(899	)	(5.7	)
Federal Home Loan Bank advances		7,439			8,344			(905	)	(10.8	)
Subordinated debt		667			630			37		5.9
Total interest expense		23,079			24,846			(1,767	)	(7.1	)

Net interest income:		39,830			35,895			3,935		11.0
Provision expense (reversal) for credit losses		18,687			310			18,377		5,928.1
Net interest income, after provision expense for credit losses		21,143			35,585			(14,442	)	(40.6	)

Non-interest income:
Customer service fees		1,785			1,620			165		10.2
Net (loss) on sale of securities available for sale		(619	)		(1,366	)		747		(54.7	)
Net recognized gain on equity securities		-			1,637			(1,637	)	(100.0	)
Net write down on premises and equipment no longer in use		(356	)		-			(356	)	(100.0	)
Payment processing income		4,271			3,660			611		16.7
Income on bank-owned life insurance		568			407			161		39.6
Mortgage banking income		178			858			(680	)	(79.3	)
Investment commissions		662			660			2		-
Debit card income		1,318			1,109			209		18.8
Credit card income		107			566			(459	)	(81.1	)
Other		1,060			193			867		449.2
Total non-interest income		8,974			9,344			(370	)	(4.0	)

Non-interest expense:
Salaries and employee benefits		20,475			17,308			3,167		18.3
Occupancy and equipment		4,060			4,468			(408	)	(9.1	)
Data processing		6,372			4,423			1,949		44.1
Professional fees		1,749			1,254			495		39.5
Payment processing		1,975			2,012			(37	)	(1.8	)
Deposit insurance		1,412			1,396			16		1.1
Advertising		575			779			(204	)	(26.2	)
Telecommunications		188			205			(17	)	(8.3	)
Problem loan and foreclosed real estate, net		306			184			122		66.3
Other general and administrative		4,484			5,031			(547	)	(10.9	)
Total non-interest expense		41,596			37,060			4,536		12.2

Income (loss) before income tax expense		(11,479	)		7,869			(19,348	)	(245.9	)
Income tax expense (benefit)		(3,764	)		1,973			(5,737	)	(290.8	)
Net income (loss)	$	(7,715	)	$	5,896		$	(13,611	)	(230.9	)	%

Assabet Valley Bancorp
Average Balances and Average Yields And Costs (Unaudited)

	For the Quarters Ended
	June 30, 2025						March 31, 2025						June 30, 2024
(Dollars in thousands)	Average Outstanding Balance		Interest		Average Yield/Rate		Average Outstanding Balance		Interest		Average Yield/Rate		Average Outstanding Balance		Interest		Average Yield/Rate
Interest-earning assets:
Short-term investments	$	67,357	$	421	2.51	%	$	37,105	$	215	2.35	%	$	49,032	$	568	4.66	%
Securities		296,321		2,555	3.46			309,608		2,651	3.47			352,204		2,833	3.24
Loans		2,229,893		28,883	5.20			2,214,952		28,183	5.16			2,015,649		27,492	5.49
Total interest-earning assets		2,593,571		31,859	4.93			2,561,665		31,049	4.92			2,416,885		30,893	5.14
Noninterest-earning assets		122,176						105,220						104,623
Total assets	$	2,715,747					$	2,666,885					$	2,521,508

Interest-bearing liabilities:
NOW accounts	$	697,452	$	700	0.40	%	$	690,014	$	813	0.48	%	$	605,633	$	737	0.49	%
Money market accounts		270,969		848	1.26			260,430		842	1.31			299,203		1,117	1.50
Regular and other savings accounts		401,215		2,278	2.28			383,017		2,098	2.22			348,440		2,231	2.58
Certificates of deposit		347,419		3,416	3.94			387,556		3,978	4.16			246,367		4,200	6.86
Total interest-bearing deposits		1,717,055		7,242	1.69			1,721,017		7,731	1.82			1,499,643		8,285	2.22
FHLB advances and other borrowings ⁽¹⁾		333,834		3,647	4.38			339,814		3,792	4.53			362,083		3,985	4.43
Subordinated debt		27,782		352	5.08			27,691		315	4.61			27,592		315	4.59
Total interest-bearing liabilities		2,078,671		11,241	2.17			2,088,522		11,838	2.30			1,889,319		12,585	2.68
Noninterest-bearing demand deposits		415,035						336,000						388,359
Other noninterest-bearing liabilities		33,242						45,439						43,526
Total liabilities		2,526,948						2,469,961						2,321,203
Total capital		188,799						196,924						200,305
Total liabilities and capital	$	2,715,747					$	2,666,885					$	2,521,508

Net interest income			$	20,618					$	19,211					$	18,308
Net interest rate spread ⁽²⁾					2.76	%					2.62	%					2.46	%
Net interest-earning assets ⁽³⁾	$	514,900					$	473,143					$	527,566
Net interest margin ⁽⁴⁾					3.19	%					3.04	%					3.05	%
Average interest-earning assets to interest-bearing liabilities					124.77	%					122.65	%					127.92	%


(1) Average balances for borrowings includes the financing lease obligation which is presented under other liabilities on the consolidated balance sheet.
(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.