Avidia Bancorp, Inc.
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 14, 2025
AVBC$22.42-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0000950170-25-108987
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCautionary Note Regarding Forward-Looking StatementsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001193125-25-283184
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCautionary Note Regarding Forward-Looking StatementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 118 previous paragraphs and 119 current paragraphs.
82 unchanged; 31 reworded; 6 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Securities Available for Sale. Securities available for sale increased $3.4 million, or 1.3%, to $269.3 million at September 30, 2025 from $265.9 million at December 31, 2024. The increase was primarily due to purchases of $44.1 million and unrealized losses decreasing $9.6 million, offset by principal paydowns of $22.9 million, maturities and calls of $18.7 million, and sales of $8.9 million.
Current report
The net loss for the nine months ended September 30, 2025 was $8.6 million, or ($0.47) per share, compared to net income of $8.0 million for the nine months ended September 30, 2024, a decrease of $16.6 million. The decrease was primarily due to a $15.0 million increase in non-interest expense, a $17.8 million increase in the credit loss expense, a $358 thousand decrease in non-interest income, partially offset by a $9.1 million increase in net interest income and a $7.4 million decrease in income tax expense. Non-interest expense included a $10.0 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.
Current report
Interest and Dividend Income. Interest and dividend income increased $2.4 million, or 7.5%, to $33.9 million for the three months ended September 30, 2025, from $31.5 million for the three months ended September 30, 2024, primarily due to a
Current report
Non-interest Income. Non-interest income increased $10 thousand, or 0.2%, to $4.5 million for the three months ended September 30, 2025, from $4.5 million for the three months ended September 30, 2024. Non-interest income was primarily impacted by a $1.0 million net loss on securities available for sale which was recorded in the three months ended September 30, 2024. There were no such losses recorded in the three months ended September 30, 2025. This was offset by an $896 thousand net gain on equity securities which was recorded for the three months ended September 30, 2024. There were no such gains recorded in the three months ended September 30, 2025.
Current report
Non-interest Expense. Non-interest expense increased $10.5 million, or 58.5%, to $28.4 million for the three months ended September 30, 2025, from $17.9 million for the three months ended September 30, 2024. The increase was primarily due to a $9.6 million increase in other general and administrative expense, which included the $10.0 million contribution to the Avidia Bank Charitable Foundation. The increase was also due to a $1.6 million increase in salaries and employee benefits, which included $637 thousand for the full nine-month expense for the employee stock ownership plan that was adopted in connection with the mutual-to-stock conversion, a $473 thousand increase in short-term incentives and retirement expenses, and a $398 thousand increase in salaries. This was offset by a decrease of $615 thousand in data processing expense primarily due to $460 thousand of one-time credits associated with a billing adjustment.
Current report
Avidia Bancorp, Inc. is a separate legal entity from Avidia Bank and it must provide for its own liquidity to pay its operating expenses and other financial obligations. Its primary source of income is dividends received from Avidia Bank. The amount of dividends that Avidia Bank may declare and pay is governed by applicable bank regulations. At September 30, 2025, Avidia Bancorp, Inc. (on an unconsolidated basis) had liquid assets of $76.6 million.
Removed paragraphs (5)
Previous report
Securities Available for Sale. Securities available for sale increased $316 thousand, or 0.1%, to $266.2 million at June 30, 2025 from $265.9 million at December 31, 2024. During the first half of 2025, $8.9 million in securities were sold at a net loss of $619 thousand.
Previous report
Net Loss/Income. Net income for the three months ended June 30, 2025 was $3.9 million, compared to net income of $2.4 million for the three months ended June 30, 2024, an increase of $1.5 million. The increase was primarily due to a $2.3 million increase in net interest income, $1.8 million increase in non-interest income, partially offset by a $1.4 million increase in credit loss expense for credit losses and $800 thousand increase in non-interest expense.
Previous report
Non-interest Income. Non-interest income increased $1.8 million, or 52.3%, to $5.2 million for the three months ended June 30, 2025, from $3.4 million for the three months ended June 30, 2024. The increase was primarily due to the $1.3 million decrease in net loss on securities available for sale, from a loss of $78 thousand for the three months ended June 30,
Previous report
2025, compared to a $1.4 million loss for the three months ended June 30, 2024. Non-interest income was also impacted by a $281 thousand increase in payment processing income, $193 thousand increase in commercial loan fees and $143 thousand increase in swap fees for the three months ended June 30, 2025.
Previous report
Non-interest Expense. Non-interest expense increased $800 thousand, or 4.2%, to $19.8 million for the three months ended June 30, 2025, from $19.0 million for the three months ended June 30, 2024. Data processing costs increased $776 thousand, or 35.0%, primarily due to the new on-line banking platform, increased account volume and licensing costs. All other non-interest expenses increased $24 thousand, or 0.1%, to $16.8 million for the three months ended June 30, 2025, from $16.7 million for the three months ended June 30, 2024, due to higher salaries and employee benefits, higher consulting expenses, and lower occupancy and equipment expense.
Reworded paragraphs (31)
Previous wording
Total Assets. Total assets increased $301.4 million, or 11.3%, to $2.96 billion at June 30, 2025 from $2.66 billion at December 31, 2024. The increase was primarily the result of increases in cash and cash equivalents and in net loans.
Current wording
Total Assets. Total assets increased $130.5 million, or 4.9%, to $2.79 billion at September 30, 2025 from $2.66 billion at December 31, 2024. The increase was primarily the result of increases in cash and cash equivalents and net loans.
Previous wording
Cash and Cash Equivalents. Cash and short-term investments increased $246.1 million, or 394.2%, to $308.6 million at June 30, 2025 from $62.4 million at December 31, 2024. The increase was primarily related to the funds received from the IPO subscription offering.
Current wording
Cash and Cash Equivalents. Cash and short-term investments increased $49.4 million, or 79.1%, to $111.9 million at September 30, 2025 from $62.4 million at December 31, 2024. The increase was primarily related to the funds received from the IPO subscription offering.
Previous wording
Federal Home Loan Bank Stock. Federal Home Loan Bank stock decreased $2.6 million, or 18%, to $12.1 million at June 30, 2025 from $14.7 million at December 31, 2024. The amount of stock we are required to own is in proportion to our Federal Home Loan Bank borrowings and our total assets.
Current wording
Federal Home Loan Bank Stock. Federal Home Loan Bank stock decreased $3.0 million, or 20.4%, to $11.7 million at September 30, 2025 from $14.7 million at December 31, 2024. The amount of stock we are required to own is in proportion to our Federal Home Loan Bank borrowings and our total assets.
Previous wording
Net Loans. Net loans increased $48.1 million, or 2.2%, to $2.22 billion at June 30, 2025 from $2.18 billion at December 31, 2024. Loan growth from December 31, 2024 to June 30, 2025 related to increases in commercial real estate loans of $28.4 million, or 5.9%, home equity and second mortgages of $8.1 million, or 12.2%, multi-family real estate loans of $7.9 million, or 9.5%, one to four family residential mortgage loans of $2.6 million, or 0.5%, and commercial and industrial loans of $2.5 million, or 0.5%.
Current wording
Net Loans. Net loans increased $74.0 million, or 3.4%, to $2.25 billion at September 30, 2025 from $2.18 billion at December 31, 2024. Loan growth from December 31, 2024 to September 30, 2025 related to increases in commercial real estate loans of $42.2 million, or 8.7%, multi-family real estate loans of $14.7 million, or 17.6%, one to four family residential mortgage loans of $10.1 million, or 2.0%, home equity and second mortgages of $9.7 million, or 14.6%, and condo loans of $3.3 million, or 0.7%.
Previous wording
This loan growth was partially offset by a decrease from December 31, 2024 to June 30, 2025 of $517 thousand, or 10.2% in consumer loans.
Current wording
This loan growth was partially offset by a decrease from December 31, 2024 to September 30, 2025 of $4.7 million, or 0.9%, in commercial and industrial loans.
Previous wording
Bank-owned Life Insurance. We invest in bank-owned life insurance to help offset the costs of our employee benefit plan obligations. Bank-owned life insurance also generally provides noninterest income that is non-taxable. Bank-owned life insurance increased $567 thousand, or 1.6%, to $36.1 million at June 30, 2025 from $35.5 million at December 31, 2024. The increase was primarily due to an increase in the cash surrender value of existing policies.
Current wording
Bank-owned Life Insurance. We invest in bank-owned life insurance to help offset the costs of our employee benefit plan obligations. Bank-owned life insurance also generally provides noninterest income that is non-taxable. Bank-owned life insurance increased $849 thousand, or 2.4%, to $36.4 million at September 30, 2025 from $35.5 million at December 31, 2024. The increase was primarily due to an increase in the cash surrender value of existing policies.
Previous wording
Deposits. Deposits increased $376.4 million, or 18.2%, to $2.44 billion at June 30, 2025 from $2.06 billion at December 31, 2024. Core deposits (which we define as all deposits, other than certificates of deposit and brokered deposits) increased $428.5 million, or 25.6%, to $2.10 billion at June 30, 2025 from $1.67 billion at December 31, 2024. The increase was primarily related to the funds received from the IPO subscription offering and growth in most core deposits categories during the period with a $399.0 million, or 58.4%, increase in interest-bearing checking accounts, a $25.4 million, or 6.6%, increase in regular and other savings accounts, a $18.4 million, or 7.3%, increase in money market accounts, offset by a $14.2 million, or 4.0%, decrease in non-interest bearing checking. Certificates of deposit (excluding brokered certificates of deposit) decreased $37.1 million, or 10.2%, to $326.4 million at June 30, 2025 from $363.6 million at December 31, 2024. Brokered deposits decreased $15.0 million to $12.0 million at June 30, 2025 from $27.0 million from December 31, 2024.
Current wording
Deposits. Deposits increased $12.7 million, or 0.6%, to $2.08 billion at September 30, 2025 from $2.06 billion at December 31, 2024. Core deposits (which we define as all deposits, other than certificates of deposit and brokered deposits) increased $69.7 million, or 4.2%, to $1.74 billion at September 30, 2025 from $1.67 billion at December 31, 2024. The increase was primarily related to growth in most core deposits categories during the period with a $30.2 million, or 7.9%, increase in regular and other savings accounts, a $27.2 million, or 10.8%, increase in money market accounts, a $24.5 million, or 3.6%, increase in interest-bearing checking accounts, offset by a $12.2 million, or 3.4%, decrease in non-interest bearing checking. Certificates of deposit (excluding brokered certificates of deposit) decreased $42.1 million, or 11.6%, to $321.5 million at September 30, 2025 from $363.6 million at December 31, 2024. Brokered deposits decreased $15.0 million to $12.0 million at September 30, 2025 from $27.0 million from December 31, 2024.
Previous wording
Total Capital. Total capital decreased $2.4 million, or 1.2%, to $191.4 million at June 30, 2025 from $193.8 million at December 31, 2024, due to a net loss of $7.7 million for the six months ended June 30, 2025, offset by a decrease in accumulated other comprehensive loss of $5.3 million. The decrease in accumulated other comprehensive loss was primarily due to the impact of the lower market interest rate environment on our unrealized loss on securities available for sale and interest rate swaps.
Current wording
Total Shareholders' Equity. Total shareholders' equity increased $178.2 million, or 91.9%, to $372.0 million at September 30, 2025 from $193.8 million at December 31, 2024. This increase was primarily attributable to the capital raised during the Company’s IPO, which was completed on July 31, 2025. The Company's IPO increased total shareholders' equity by $195.2 million, including $186.2 million in net offering proceeds and $9.0 million from the donation of 900 thousand shares of common stock to the Avidia Bank Charitable Foundation. Also contributing to the increase was a decrease in accumulated other comprehensive loss of $7.1 million and ESOP expense of $637 thousand, offset by $16.1 million from the purchase of common shares by the ESOP and the net loss of $8.6 million for the nine months ended September 30, 2025. The decrease in accumulated other comprehensive loss was primarily due to the impact of the lower market interest rate environment on our unrealized loss on securities available for sale and interest rate swaps.
Previous wording
Comparison of Operating Results for the Three and Six Months Ended June 30, 2025 and 2024
Current wording
Comparison of Operating Results for the Three and Nine Months Ended September 30, 2025 and 2024
Previous wording
Net loss for the six months ended June 30, 2025 was $7.7 million, compared to net income of $5.9 million for the six months ended June 30, 2024, a decrease of $13.6 million. The decrease was primarily due to a $18.4 million increase in the credit loss expense, a $4.5 million increase in non-interest expense, and a $370 thousand decrease in non-interest income, partially offset by a $3.9 million increase in net interest income.
Current wording
Net Loss/Income. The net loss for the three months ended September 30, 2025 was $907 thousand, or ($0.05) per share, compared to net income of $2.1 million for the three months ended September 30, 2024, a decrease of $3.0 million. The decrease was primarily due to a $10.5 million increase in non-interest expense, partially offset by a $5.1 million increase in net interest income, a $615 thousand decrease in credit loss expense, and a $1.7 million decrease in income tax expense. Non-interest expense included a $10.0 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.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $1.0 million, or 3.1%, to $31.9 million for the three months ended June 30, 2025, from $30.9 million for the three months ended June 30, 2024, primarily due to a $1.4 million increase in interest on loans. The increase in interest on loans resulted primarily from an increase of $88.9 million in the average balance of loans to $2.23 billion for the three months ended June 30, 2025 from $2.14 billion for the three months ended June 30, 2024. The weighted average yield on loans increased to 5.20% for the three months ended June 30, 2025 compared to 5.16% for the three months ended June 30, 2024.
Current wording
$1.3 million increase in interest on loans and a $1.2 million increase in other interest income. The increase in interest on loans resulted primarily from an increase of $61.9 million in the average balance of loans to $2.26 billion for the three months ended September 30, 2025 from $2.20 billion for the three months ended September 30, 2024. The weighted average yield on loans increased to 5.21% for the three months ended September 30, 2025 compared to 5.14% for the three months ended September 30, 2024.
Previous wording
Interest and dividend income increased $2.2 million, or 3.6%, to $62.9 million for the six months ended June 30, 2025, from $60.7 million for the six months ended June 30, 2024, primarily due to a $2.3 million increase in interest on loans. The increase in interest on loans resulted primarily from an increase of $86.1 million in the average balance of loans to $2.22 billion for the six months ended June 30, 2025 from $2.14 billion for the six months ended June 30, 2024. The weighted average yield on loans increased to 5.18% for the six months ended June 30, 2025 compared to 5.15% for the six months ended June 30, 2024.
Current wording
Interest and dividend income increased $4.5 million, or 4.9%, to $96.8 million for the nine months ended September 30, 2025, from $92.3 million for the nine months ended September 30, 2024, primarily due to a $3.6 million increase in interest on loans. The increase in interest on loans resulted primarily from an increase of $51.2 million in the average balance of loans to $2.24 billion for the nine months ended September 30, 2025 from $2.19 billion for the nine months ended September 30, 2024. The weighted average yield on loans increased to 5.19% for the nine months ended September 30, 2025 compared to 5.08% for the nine months ended September 30, 2024.
Previous wording
Average interest-earning assets increased $51.4 million, to $2.59 billion for the three months ended June 30, 2025, from $2.54 billion for the three months ended June 30, 2024. The yield on interest-earning assets increased to 4.93% for the three months ended June 30, 2025, from 4.89% for the three months ended June 30, 2024.
Current wording
Average interest-earning assets increased $156.1 million, to $2.71 billion for the three months ended September 30, 2025, from $2.55 billion for the three months ended September 30, 2024. The yield on interest-earning assets increased to 4.97% for the three months ended September 30, 2025, from 4.92% for the three months ended September 30, 2024.
Previous wording
Average interest-earning assets increased $49.4 million, to $2.57 billion for the six months ended June 30, 2025, from $2.53 billion for the six months ended June 30, 2024. The yield on interest-earning assets increased to 4.93% for the six months ended June 30, 2025, from 4.84% for the six months ended June 30, 2024.
Current wording
Average interest-earning assets increased $89.8 million, to $2.62 billion for the nine months ended September 30, 2025, from $2.53 billion for the nine months ended September 30, 2024. The yield on interest-earning assets increased to 4.94% for the nine months ended September 30, 2025, from 4.87% for the nine months ended September 30, 2024.
Previous wording
Interest Expense. Total interest expense decreased $1.3 million, or 10.7%, to $11.2 million for the three months ended June 30, 2025, from $12.6 million for the three months ended June 30, 2024. Interest expense on deposit accounts decreased $1.0 million, or 12.6%, to $7.2 million for the three months ended June 30, 2025, from $8.3 million for the three months ended June 30, 2024, due to a decrease in the weighted average rate on interest-bearing deposits to 1.69% for the three months ended June 30, 2025, from 2.05% for the three months ended June 30, 2024. Interest expense on Federal Home Loan Bank advances decreased $338 thousand, or 8.5%, to $3.6 million for the three months ended June 30, 2025, from $4.0 million for the three months ended June 30, 2024, due to a decrease in the average advances of $28.2 million between periods.
Current wording
Interest Expense. Total interest expense decreased $2.8 million, or 21.1%, to $10.5 million for the three months ended September 30, 2025, from $13.2 million for the three months ended September 30, 2024. Interest expense on deposit accounts decreased $1.5 million, or 16.8%, to $7.3 million for the three months ended September 30, 2025, from $8.7 million for the three months ended September 30, 2024, due to a decrease in the weighted average rate on interest-bearing deposits to 1.67% for the three months ended September 30, 2025, from 2.14% for the three months ended September 30, 2024. Interest expense on Federal Home Loan Bank advances decreased $1.4 million, or 32.6%, to $2.8 million for the three months ended September 30, 2025, from $4.2 million for the three months ended September 30, 2024, due to a decrease in the average advances of $108.4 million between periods.
Previous wording
Total interest expense decreased $1.8 million, or 7.1%, to $23.1 million for the six months ended June 30, 2025, from $24.8 million for the six months ended June 30, 2024. Interest expense on Federal Home Loan Bank advances decreased $905 thousand, or 10.8%, to $7.4 million for the six months ended June 30, 2025, from $8.3 million for the six months ended June 30, 2024, due to a decrease in the average advances of $35.8 million between periods. Interest expense on deposit accounts decreased $900 thousand, or 5.7%, to $15.0 million for the six months ended June 30, 2025, from $15.9 million for the six months ended June 30, 2024, due to a decrease in the weighted average rate on interest-bearing deposits to 1.75% for the six months ended June 30, 2025, from 2.01% for the six months ended June 30, 2024.
Current wording
Total interest expense decreased $4.6 million, or 12.0%, to $33.5 million for the nine months ended September 30, 2025, from $38.1 million for the nine months ended September 30, 2024. Interest expense on deposit accounts decreased $2.4 million, or 9.6%, to $22.2 million for the nine months ended September 30, 2025, from $24.6 million for the nine months ended September 30, 2024, due to a decrease in the weighted average rate on interest-bearing deposits to 1.73% for the nine months ended September 30, 2025, from 2.05% for the nine months ended September 30, 2024. Interest expense on Federal Home Loan Bank advances decreased $2.3 million, or 18.1%, to $10.3 million for the nine months ended September 30, 2025, from $12.5 million for the nine months ended September 30, 2024, due to a decrease in the average advances of $60.2 million between periods.
Previous wording
Net Interest Income. Net interest income increased $2.3 million, or 12.6%, to $20.6 million for the three months ended June 30, 2025, from $18.3 million for the three months ended June 30, 2024, primarily due to an increase in net interest margin to 3.19% for the three months ended June 30, 2025, from 2.90% for the three months ended June 30, 2024 and a $51.4 million increase in the average balance of interest-earning assets during the three months ended June 30, 2025. Net interest rate spread increased to 2.76%, for the three months ended June 30, 2025, compared to 2.38% for the three months ended June 30, 2024. The increase in net interest margin and spread was driven by an increase in the weighted average yield on interest earning assets combined with a decrease in the weighted average rate paid on interest-bearing liabilities to 2.17% for the three months ended June 30, 2025, from 2.51% for the three months ended June 30, 2024.
Current wording
Net Interest Income. Net interest income increased $5.1 million, or 28.2%, to $23.4 million for the three months ended September 30, 2025, from $18.3 million for the three months ended September 30, 2024, primarily due to an increase in net interest margin to 3.43% for the three months ended September 30, 2025, from 2.84% for the three months ended September 30, 2024 and a $156.1 million increase in the average balance of interest-earning assets during the three months ended September 30, 2025. Net interest rate spread increased to 2.91%, for the three months ended September 30, 2025, compared to 2.31% for the three months ended September 30, 2024. The increase in net interest margin and spread was driven by an increase in the weighted average yield on interest earning assets combined with a decrease in the weighted average rate paid on interest-bearing liabilities to 2.06% for the three months ended September 30, 2025, from 2.61% for the three months ended September 30, 2024.
Previous wording
Net interest income increased $3.9 million, or 11.0%, to $39.8 million for the six months ended June 30, 2025, from $35.9 million for the six months ended June 30, 2024, primarily due to an increase in net interest margin to 3.12% for the six months ended June 30, 2025, from 2.86% for the six months ended June 30, 2024 and $49.4 million increase in the average balance of interest-earning assets during the six months ended June 30, 2025. Net interest rate spread increased to 2.70%, for the six months ended June 30, 2025, compared to 2.32% for the six months ended June 30, 2024. The increase in net interest margin and spread was driven by an increase in the weighted average yield on interest earning assets combined with a decrease in the weighted average rate paid on interest-bearing liabilities to 2.23% for the six months ended June 30, 2025, from 2.52% for the six months ended June 30, 2024.
Current wording
Net interest income increased $9.1 million, or 16.8%, to $63.3 million for the nine months ended September 30, 2025, from $54.2 million for the nine months ended September 30, 2024, primarily due to an increase in net interest margin to 3.23% for the nine months ended September 30, 2025, from 2.86% for the nine months ended September 30, 2024 and $89.8 million increase in the average balance of interest-earning assets during the nine months ended September 30, 2025. Net interest rate spread increased to 2.77%, for the nine months ended September 30, 2025, compared to 2.33% for the nine months ended September 30, 2024. The increase in net interest margin and spread was driven by an increase in the weighted average yield on interest earning assets combined with a decrease in the weighted average rate paid on interest-bearing liabilities to 2.17% for the nine months ended September 30, 2025, from 2.54% for the nine months ended September 30, 2024.
Previous wording
Allowance for Credit Losses. Based on management’s analysis of the adequacy of allowance for credit losses, a credit loss expense of $1.1 million was recorded for the three months ended June 30, 2025, compared to a credit loss reversal of $320 thousand for the three months ended June 30, 2024.
Current wording
Provision Expense for Credit Losses. Based on management’s analysis of the adequacy of allowance for credit losses, a credit loss expense of $1.5 million was recorded for the three months ended September 30, 2025, compared to a credit loss expense of $2.2 million for the three months ended September 30, 2024.
Previous wording
A credit loss expense of $18.7 million was recorded for the six months ended June 30, 2025, compared to a provision of $310 thousand for the six months ended June 30, 2024. The $18.4 million increase is primarily due to the $16.7 million charge-off in the first quarter related to a land loan, as previously disclosed.
Current wording
A credit loss expense of $20.2 million was recorded for the nine months ended September 30, 2025, compared to a provision expense of $2.5 million for the nine months ended September 30, 2024. The $17.8 million increase is primarily due to the $16.7 million charge-off in the first quarter related to a land loan, as previously disclosed.
Previous wording
Non-interest income decreased $370 thousand, or 4.0%, to $9.0 million for the six months ended June 30, 2025, from $9.3 million for the six months ended June 30, 2024. The decrease was primarily due to a $1.6 million decrease in net gains on equity securities, from no gains for the six months ended June 30, 2025, compared to a $1.6 million gain for the six months ended June 30, 2024. The decrease was also due to a $747 thousand decrease in net loss on securities available for sale, from losses of $619 thousand for the six months ended June 30, 2025, compared to a $1.4 million loss for the six months ended June 30, 2024. Non-interest income was also impacted by a $356 thousand write-down of equipment no longer in use and a $498 thousand decrease in the valuation of mortgage servicing rights for the six months ended June 30, 2025, compared to June 30, 2024, resulting from a decline in market interest rates. This was partially offset by a $611 thousand increase in payment processing income and a $250 thousand gain on the sale of the Direct Merchant Processing Book for the six months ended June 30, 2025.
Current wording
Non-interest income decreased $358 thousand, or 2.6%, to $13.5 million for the nine months ended September 30, 2025, from $13.9 million for the nine months ended September 30, 2024. The decrease was primarily due to a $2.5 million net gain on equity securities which was recorded for the nine months ended September 30, 2024. There were no such gains recorded in the nine months ended September 30, 2025. This decrease was partially offset by a $1.7 million decrease in net loss on securities available for sale, from losses of $2.4 million for the nine months ended September 30, 2024, compared to a $619 thousand loss for the nine months ended September 30, 2025, and a $540 thousand increase in payment processing income.
Previous wording
Non-interest expense increased $4.5 million, or 12.2%, to $41.6 million for the six months ended June 30, 2025, from $37.1 million for the six months ended June 30, 2024. Salary and employee benefit expenses increased $3.2 million, or 18.3%, primarily due to a $756 thousand increase in the long-term incentive expense which was primarily the result of the termination of the plan and immediate vesting of participants, a $1.3 million increase in short-term incentives, payroll taxes and retirement expenses, and a $879 thousand increase in salaries. Data processing costs increased $1.9 million, or 44.1%, primarily due to a new on-line banking platform, increased account volume and licensing costs, and one-time expenses of $379 thousand related to contract terminations. All other non-interest expenses decreased $580 thousand, or 3.8%, to $14.7 million for the six months ended June 30, 2025, from $15.3 million for the six months ended June 30, 2024, due to lower occupancy and equipment expense and the sale of the credit card portfolio.
Current wording
Non-interest expense increased $15.0 million, or 27.3%, to $70.0 million for the nine months ended September 30, 2025, from $55.0 million for the nine months ended September 30, 2024. The increase was primarily due to a $9.1 million increase in other general and administrative expense, which included the $10.0 million contribution to the Avidia Bank Charitable Foundation. The increase was also due to a $4.7 million increase in salaries and employee benefits, which included $637 thousand for the full nine-month expense for the employee stock ownership plan that was adopted in connection with the mutual-to-stock conversion. The increase in salaries and employee benefits also included a $747 thousand increase in the long-term incentive expense, which was primarily the result of the termination of the plan and immediate vesting of participants, a $1.7 million increase in short-term incentives and retirement expenses, and a $1.3 million increase in salaries. Data processing costs increased $1.3 million, or 18.3%, primarily due to a new on-line banking platform, increased account volume and licensing costs, one-time expenses of $379 thousand related to contract terminations, offset by $460 thousand one-time credits associated with a billing adjustment.
Previous wording
Income Tax Benefit/Expense. Income tax expense was $1.2 million for the three months ended June 30, 2025, compared to an income tax expense of $759 thousand for the three months ended June 30, 2024. The effective tax rate was 23.0% and 24.4% for the three months ended June 30, 2025, and June 30, 2024, respectively.
Current wording
Income Tax Benefit/Expense. Income tax benefit was $1.0 million for the three months ended September 30, 2025, compared to an income tax expense of $667 thousand for the three months ended September 30, 2024.
Previous wording
Income tax benefit was $3.8 million for the six months ended June 30, 2025, compared to an income tax expense of $2.0 million for the six months ended June 30, 2024. The effective tax rate was 32.8% and 25.1% for the six months ended June 30, 2025, and June 30, 2024, respectively.
Current wording
Income tax benefit was $4.8 million for the nine months ended September 30, 2025, compared to an income tax expense of $2.6 million for the nine months ended September 30, 2024.
Previous wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. In addition, we have available credit facilities with the Federal Home Loan Bank of Boston, correspondent banks, and the Federal Reserve Bank of Boston. At June 30, 2025, we had the ability to borrow $680.4 million from the Federal Home Loan Bank of Boston, of which $260.0 million was outstanding. At June 30, 2025, we also had a $500 thousand line of credit with the Federal Home Loan Bank of Boston with no borrowings outstanding. At June 30, 2025, we had $18.0 million of available lines of credit with correspondent banks with no borrowings outstanding under any of them. At June 30, 2025, we also had aggregate available borrowing capacity of $324.1 million through the discount window and the borrower-in-custody program at the Federal Reserve Bank of Boston with no borrowings under either facility.
Current wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. In addition, we have available credit facilities with the Federal Home Loan Bank of Boston, correspondent banks, and the Federal Reserve Bank of Boston. At September 30, 2025, we had the ability to borrow $685.7 million from the Federal Home Loan Bank of Boston, of which $260.0 million was outstanding. At September 30, 2025, we also had a $500 thousand line of credit with the Federal Home Loan Bank of Boston with no borrowings outstanding. At September 30, 2025, we had $18.0 million of available lines of credit with correspondent banks with no borrowings outstanding under any of them. At September 30, 2025, we also had aggregate available borrowing capacity of $330.1 million through the discount window and the borrower-in-custody program at the Federal Reserve Bank of Boston with no borrowings under either facility.
Previous wording
We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained. The net proceeds from the stock offering will significantly increase our liquidity.
Current wording
We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained. The net proceeds from the stock offering significantly increased our liquidity.
Previous wording
At June 30, 2025, Avidia Bank exceeded all of its regulatory capital requirements and was categorized as well-capitalized at that date. Management is not aware of any conditions or events since the most recent notification of well-capitalized status that would change this categorization.
Current wording
At September 30, 2025, the Bank exceeded all of its regulatory capital requirements and was categorized as well-capitalized at that date. Management is not aware of any conditions or events since the most recent notification of well-capitalized status that would change this categorization.
Previous wording
Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. We anticipate that we will have sufficient funds available to meet our current lending commitments. At June 30, 2025, off-balance sheet commitments totaled $426.9 million.
Current wording
Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. We anticipate that we will have sufficient funds available to meet our current lending commitments. At September 30, 2025, off-balance sheet commitments totaled $413.1 million.
Previous wording
Interest Rate Swaps. We employ various financial risk methodologies that limit, or “hedge,” the adverse effects of increasing or decreasing market interest rates on our investment portfolio, loan portfolio and short-term liabilities, such as Federal Home Loan Bank advances. At June 30, 2025, we had interest rate swaps related to Federal Home Loan Bank advances with a notional amount of $100.0 million and interest rate swaps on agency securities with a notional amount of $35.0 million. We also engage in hedging strategies with respect to arrangements where our commercial banking customers swap floating interest rate obligations for fixed interest rate obligations, or vice versa. At June 30, 2025, we had interest rate swaps related to customer loans of a notional amount of $105.3 million. Our hedging activity varies based on the level and volatility of interest rates and other changing market conditions.
Current wording
Interest Rate Swaps. We employ various financial risk methodologies that limit, or “hedge,” the adverse effects of increasing or decreasing market interest rates on our investment portfolio, loan portfolio and short-term liabilities, such as Federal Home Loan Bank advances. At September 30, 2025, we had interest rate swaps related to Federal Home Loan Bank advances with a notional amount of $100.0 million and interest rate swaps on agency securities with a notional amount of $35.0 million. We also engage in hedging strategies with respect to arrangements where our commercial banking customers swap floating interest rate obligations for fixed interest rate obligations, or vice versa. At September 30, 2025, we had interest rate swaps related to customer loans of a notional amount of $105.0 million. Our hedging activity varies based on the level and volatility of interest rates and other changing market conditions.
Previous wording
The table above indicates that at June 30, 2025, we would have experienced a 2.6% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.3% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates.
Current wording
The table above indicates that at September 30, 2025, we would have experienced a 5.6% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 0.0% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates.
Previous wording
The table above indicates that at June 30, 2025, we would have experienced a 11.3% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 0.9% decrease in EVE in the event of an instantaneous 200 basis point decrease in market interest rates.
Current wording
The table above indicates that at September 30, 2025, we would have experienced a 10.3% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 1.3% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates.