Avidbank Holdings, Inc. Announces Net Income of $514,000 for the First Quarter of 2013

  Avidbank Holdings, Inc. Announces Net Income of $514,000 for the First
  Quarter of 2013

Business Wire

PALO ALTO, Calif. -- April 25, 2013

Avidbank Holdings, Inc. ("the Company") (OTCBB: AVBH), sole owner of Avidbank
("the Bank"), an independent full-service commercial bank serving businesses
and consumers in Northern California, announced unaudited net income of
$514,000 for the first quarter of 2013, compared to $771,000 during the same
period in 2012.

Financial Highlights

  *Net income was $514,000 for the first quarter of 2013
  *Diluted earnings per common share were $0.16 for the first quarter,
    compared to $0.26 for the first quarter of 2012
  *Total assets grew by 22% over the previous 12 months, ending the first
    quarter at $417 million
  *Total loans outstanding grew by 9% over the previous 12 months, ending the
    first quarter at $242 million
  *Total deposits grew by 25% over the previous 12 months, ending the first
    quarter at $375 million
  *The Bank continues to be well capitalized with a Tier 1 Leverage Ratio of
    8.9% and a Total Risk Based Capital Ratio of 12.3%

Mark D. Mordell, Chairman and Chief Executive Officer, stated, "We are pleased
to announce that Avidbank Holdings, Inc. recorded its fifteenth consecutive
profitable quarter for the three months ended March 31, 2013. As expected, net
income for the first quarter of 2013 decreased by 33% compared to the first
quarter of 2012 due to significant investments in key loan production
personnel and new infrastructure and facilities. These investments are very
important to the Bank’s long term plans as we continue to grow and gain market
share. The Bank's loans, deposits and total assets all showed growth over the
balances a year earlier. We have strategically added several highly
experienced bankers to our team which has enabled us to open new loan
production offices in San Jose and Redwood City."

For the three months ended March 31, 2013, net interest income before
provision for loan losses was $3.9 million, an increase of more than $160,000
or 4% compared to the first quarter of 2012. The growth in net interest income
was the result of growth in loans outstanding. Due in large part to the
competitive market, net interest margin was 3.93% for the first quarter of
2013, compared to 4.48% for the first quarter of 2012. The decline in margin
was mitigated by a reduction in our overall cost of funds from 0.64% in 2012
to 0.34% for the same period in 2013.

Non-interest expense grew by $557,000 to $3.1 million in the first quarter of
2013, compared to $2.5 million for the first quarter of 2012 and $2.9 million
for the fourth quarter of 2012. These expense outlays are part of the Bank’s
strategic initiative to deepen our current lending expertise while broadening
our market footprint. These investments will lead to future growth in both
loan and fee income.

Non-interest income excluding gains from the sale of investment securities was
$125,000 in the first quarter of 2013; an increase of $18,000 or 17% over the
first quarter of 2012 and $3,000 or 3% over the fourth quarter of 2012.

About Avidbank

Avidbank Holdings, Inc., headquartered in Palo Alto, California offers
innovative financial solutions and services. We specialize in the following
markets: commercial & industrial, corporate finance, asset-based lending, real
estate construction and commercial real estate lending, and real estate bridge
financing. Avidbank advances the success of our clients by providing them with
financial opportunities and serving them as we wish to be served – with mutual
effort, ingenuity and trust – creating long-term banking relationships.

Forward-Looking Statement:

This news release contains statements that are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on current expectations, estimates and projections
about Avidbank's business based, in part, on assumptions made by management.
These statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed or
forecasted in such forward-looking statements due to numerous factors,
including those described above and the following: Avidbank's timely
implementation of new products and services, technological changes, changes in
consumer spending and savings habits and other risks discussed from time to
time in Avidbank's reports and filings with banking regulatory agencies. In
addition, such statements could be affected by general industry and market
conditions and growth rates, and general domestic and international economic
conditions. Such forward-looking statements speak only as of the date on which
they are made, and Avidbank does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the date of
this release.

Avidbank Holdings, Inc.
Balance Sheet
(Unaudited) ($000 except per share amounts)
Assets                           3/31/2013             12/31/2012             3/31/2012
Cash and due from              $ 11,381              $ 21,493               $ 13,174
Fed funds sold                  102,070              85,510                18,365
Total cash and cash              113,451               107,003                31,539
securities -                     54,767                55,343                 80,971
available for sale
Loans, net of                    242,225               247,269                221,564
deferred loan fees
Allowance for loan              (4,736)              (4,480)               (4,359)
Loans, net of
allowance for loan               237,489               242,789                217,205
Premises and                     1,334                 1,291                  711
equipment, net
Accrued interest
receivable & other              10,201               9,296                 10,250
Total assets                   $ 417,242             $ 415,721              $ 340,676
Non-interest-bearing           $ 101,386             $ 105,518              $ 64,669
demand deposits
Interest bearing                 15,990                17,293                 14,765
transaction accounts
Money market and                 197,639               185,664                152,870
savings accounts
Time deposits                   60,931               66,520                67,856
Total deposits                   375,946               374,994                300,159
Other liabilities               2,884                2,864                 5,429
Total liabilities                378,830               377,858                305,588
Shareholders' equity
Preferred stock                  5,963                 5,952                  5,918
Common stock                     29,647                29,556                 29,373
Retained earnings
(accumulated                     1,599                 1,171                  (544)
Accumulated other               1,204                1,184                 340
comprehensive income
Total shareholders'              38,412                37,863                 35,088
Total liabilities
and shareholders'              $ 417,242             $ 415,721              $ 340,676
Tier 1 leverage                  8.87%                 8.88%                  9.96%
Tier 1 risk-based                11.01%                10.78%                 11.35%
capital ratio
Total risk-based                 12.26%                12.03%                 12.68%
capital ratio
Book value per share           $ 12.37               $ 12.22                $ 11.16
(excluding TARP)

Avidbank Holdings, Inc.
Condensed Statements of Income
(Unaudited) ($000 except per share amounts)
                                          For the Quarter Ended
                                               3/31/2013        3/31/2012
Interest and fees on loans                   $ 3,722               $ 3,655
Interest on investment securities              404                   529
Other interest income                         54                   20
Total interest income                          4,180                 4,203
Interest expense                              318                  501
Net interest income                            3,862                 3,702
Provision for loan losses                     -                    -
Net interest income after
for loan losses                                3,862                 3,702
Service charges, fees and other                125                   107
Compensation and benefit expenses              1,838                 1,494
Occupancy and equipment expenses               971                   792
Other operating expenses                      286                  253
Total non-interest expense                     3,096                 2,539
Income before income taxes                     891                   1270
Provision for income taxes                    377                  499
Net income                                   $ 514                 $ 771
Preferred dividends & warrant                 84                   84
Net income applicable to
common shareholders                          $ 430                 $ 687
Basic earnings per common share              $ 0.16                $ 0.26
Diluted earnings per common share            $ 0.16                $ 0.26
Weighted average shares                        2,616,099             2,603,827
Weighted average diluted shares                2,695,340             2,628,127
Total shares outstanding at period             2,623,852             2,611,018
Return on average assets                       0.49%                 0.88%
Return on average common equity                6.37%                 10.67%
Net interest margin                            3.93%                 4.48%
Cost of funds                                  0.34%                 0.64%
Efficiency ratio                               78%                   67%


Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Executive Vice President and Chief Financial Officer
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