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Here are 1-3 brief analogies for Avidbank (AVBH):

• A specialized community bank for the tech and venture capital industries, akin to a smaller Silicon Valley Bank (SVB).
• A regional commercial bank for businesses and real estate developers, similar to a Bay Area version of PNC Bank.

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• Commercial Real Estate Loans: Provides financing for the acquisition, refinancing, and development of income-producing commercial properties.
• Commercial & Industrial (C&I) Loans: Offers credit facilities to businesses for working capital, equipment purchases, business expansion, and other operational needs.
• Construction Loans: Funds the development and construction phases of various commercial projects.
• Deposit Accounts: A range of checking, savings, money market, and certificate of deposit accounts designed for businesses and private clients.
• Treasury Management Services: Provides comprehensive cash management solutions including online banking, ACH services, wire transfers, and merchant services to optimize business operations.
• Private Client Services: Delivers tailored banking, lending, and wealth management solutions for high-net-worth individuals and their families.

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Avidbank (AVBH) is a commercial bank that primarily serves other companies and businesses rather than individuals.

Due to client confidentiality inherent in the banking industry, Avidbank does not publicly disclose the names of its specific customer companies. Instead, it serves a diverse portfolio of businesses across various sectors. Based on its stated focus and services, Avidbank's major customer categories include:

• Technology and Life Sciences Companies: Avidbank has a specialized focus on providing banking services, including venture debt and working capital lines, to companies in the technology and life sciences sectors, particularly startups and growing firms.
• Commercial Real Estate Investors and Developers: A significant portion of Avidbank's lending portfolio is directed towards commercial real estate professionals for acquisition, development, and construction financing across various property types.
• General Commercial and Industrial (C&I) Businesses: Avidbank serves a broad range of established commercial and industrial businesses that require traditional commercial loans, lines of credit, and treasury management services to support their operations and growth.

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Mark D. Mordell, Chairman & Chief Executive Officer

Mr. Mordell joined the Avidbank board in January 2006, was appointed Chairman in February 2007, and became Chief Executive Officer in March 2012. He brings over 30 years of financial services, real estate, and diverse business experience to the Bank. In 1991, he founded California Bavarian Corporation and its successor company, CBC Properties, LLC, a full-service real estate investment and management organization based in Palo Alto. Mr. Mordell also serves as an advisory board member to MMM Management, Inc., a strategic advisor to a San Francisco-based family office.

Patrick Oakes, Executive Vice President & Chief Financial Officer

Mr. Oakes has a proven history of optimizing financial performance and maximizing growth and opportunity. Prior to joining Avidbank, he served as Executive Vice President, Chief Financial Officer, and Secretary at Atlantic Capital Bank. Before Atlantic Capital, he was Executive Vice President and Chief Financial Officer of Square 1 Financial Inc., and held the same leadership roles at Encore Bancshares, Inc. For ten years prior, he served as Senior Vice President and Treasurer at Sterling Bank. Mr. Oakes was named the Atlanta Business Chronicle's 2021 CFO of the Year among Small Public Company CFOs.

Gina T. Peterson, Executive Vice President & Chief Operating Officer

Ms. Peterson has over 25 years of experience in bank operations, finance, and risk management. She joined Avidbank from MUFG Union Bank, where she held senior-level positions for 8 years, concluding as Director, Head of Issues Management. Previously, Ms. Peterson held senior positions for 12 years at PricewaterhouseCoopers ("PwC") in San Francisco, specializing in process, systems, and controls assurance.

Geoff Butner, Executive Vice President & Chief Credit Officer

Mr. Butner serves as the Executive Vice President and Chief Credit Officer for Avidbank. He joined Avidbank in December 2018.

Sam Bhaumik, Executive Vice President, Venture Lending

Mr. Bhaumik is the Executive Vice President of Venture Lending at Avidbank. He also serves as the Executive Vice President of the Venture Lending Division.

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The key risks to Avidbank's business (symbol: AVBH) are primarily centered around interest rate fluctuations impacting investment portfolios, concentration in commercial real estate lending, and managing liquidity.

1. Interest Rate Risk and Investment Losses: Avidbank has faced significant unrealized losses on its available-for-sale securities, totaling $51.3 million net of tax as of June 30, 2025, primarily due to changes in interest rates. The company also reported a substantial $62.4 million loss from the sale of available-for-sale securities in the third quarter of 2025, which contributed to a net loss of $37.7 million for that quarter.
2. Commercial Real Estate (CRE) Loan Concentration: Avidbank specializes in commercial real estate and construction lending, particularly in the San Francisco Bay Area. This concentration exposes the bank to risks associated with the potential deterioration in California real estate values and credit quality trends in its construction loan portfolio. An increase in the provision for credit losses was observed in the second quarter of 2025, largely due to an expansion in its loan portfolio.
3. Liquidity Risk: The company's financial disclosures highlight its funding positions and the use of proceeds from an initial public offering (IPO) and securities sales to pay off short-term borrowings in the third quarter of 2025, indicating active management of its liquidity. Banks generally face challenges in attracting sufficient deposits and other funding sources, which is a common risk for financial institutions.

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Clear emerging threats for Avidbank (AVBH) include:

• The increasing market penetration and sophisticated offerings of digital-first banks (neobanks) and specialized fintech lenders. These entities leverage technology to provide more streamlined, often lower-cost, and user-friendly banking services, particularly for small to medium-sized businesses and tech-savvy consumers. This directly competes with Avidbank's core deposit gathering and commercial lending activities, especially in its tech-centric San Francisco Bay Area market, mirroring how Netflix offered a more convenient model to Blockbuster's customers.

• The aggressive digital transformation and investment in advanced technological capabilities by larger national and regional banks. These larger institutions are increasingly offering integrated digital platforms, AI-driven insights, and sophisticated online treasury and lending solutions that can attract and retain commercial clients who value speed, convenience, and comprehensive digital tools, potentially siphoning market share from community banks like Avidbank.

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Avidbank (AVBH) operates in several key markets, primarily focused on commercial banking, real estate lending, and venture lending/specialty finance. The market sizes for these areas are identified as follows:

• Commercial Banking: The market size of the Commercial Banking industry in California is projected to be $125.7 billion in 2025. For context, the entire U.S. commercial banking market is estimated at $732.5 billion in 2025.
• Real Estate Lending (Commercial and Construction): The Real Estate Loans & Collateralized Debt industry in California is estimated to have a market size of $62.3 billion in 2025. Across the broader U.S., the real estate loan market was valued at $3.5 trillion in 2024.
• Venture Lending and Specialty Finance: While a direct market size for "venture lending" specifically for banks is not readily available, Avidbank's venture lending activities are closely tied to the broader life sciences and technology ecosystems. The California life sciences sector alone generated $414.2 billion in total business output in 2023. Venture capital investment in California's life sciences companies reached $17.3 billion in 2022. Avidbank's Venture Lending and Specialty Finance divisions have a national presence, with bankers and customers located in 37 states across the U.S.

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Avidbank (symbol: AVBH) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Loan and Deposit Growth: The company is projecting double-digit loan and deposit growth. This expansion in its core banking activities, encompassing commercial & industrial lending, venture lending, structured finance, asset-based lending, sponsor finance, fund finance, and real estate construction and commercial real estate lending, will directly contribute to increased interest income.
2. Net Interest Margin Expansion: Avidbank has demonstrated recent net interest margin expansion, reaching 3.90% in Q3 2025. Management is targeting further margin expansion above 4%. An improved net interest margin signifies a greater profit generated from the difference between interest earned on assets and interest paid on liabilities, thereby boosting revenue.
3. Strategic Repositioning of Securities Portfolio: Following its Initial Public Offering (IPO) in August 2025, which raised $61.3 million, Avidbank repositioned its securities portfolio. This action, although resulting in a short-term loss, is anticipated to enhance future profitability. By optimizing its investment holdings, the bank aims to generate better returns.
4. Specialty Finance and Venture Lending Focus: Avidbank's specialization in areas such as venture lending, fund finance, and asset-based lending provides tailored financial solutions to a diverse client base, including emerging growth companies and private equity firms. The continued focus and growth in these specialized segments are expected to fuel revenue as these sectors often involve higher-yield opportunities.
5. Geographic Market Concentration: Avidbank is primarily based in Silicon Valley, serving the San Francisco Bay Area and beyond, with loan production offices in Redwood City and San Francisco. By deepening its penetration and expanding its services within this economically dynamic region, Avidbank can capitalize on local business growth and real estate development.

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Share Repurchases

• On November 25, 2020, Avidbank Holdings, Inc. authorized a stock repurchase program to repurchase up to 5% or 307,780 shares of its outstanding common stock.
• This stock repurchase program has no expiration date.

Share Issuance

• Avidbank Holdings completed its Initial Public Offering (IPO) in August 2025.
• A total of 3,001,500 shares of common stock were sold, including the full exercise of the underwriters' overallotment option.
• The IPO generated net proceeds of approximately $62.2 million, which are intended to support organic growth strategies, expand market share, strengthen regulatory capital, and potentially optimize the balance sheet.

Inbound Investments

• During the August 2025 IPO, Patriot Financial Partners IV, L.P. purchased 80,000 shares valued at $1,840,000.
• Director Bryan C. Polster acquired 50,000 shares for $1,150,000 during the August 2025 IPO.