Avidbank Holdings, Inc. Announces Successful Completion of $16.0 Million Private Offering

  Avidbank Holdings, Inc. Announces Successful Completion of $16.0 Million
  Private Offering

Business Wire

PALO ALTO, Calif. -- June 26, 2013

Avidbank Holdings, Inc. (OTCBB: AVBH), the parent company of Avidbank, today
reported the successful completion of a $16.0 million private offering of
common shares. Investors purchased 1,641,026 newly issued Avidbank common
shares at a purchase price of $9.75 per share.

Mark D. Mordell, Chairman and CEO of Avidbank Holdings, Inc. stated, “We
believe the successful completion of this offering is a significant step
forward for our Company, providing the capital we need to continue our growth
and giving us the opportunity to repurchase our outstanding TARP securities.
It will also allow us to maximize our potential in one of the most opportune
markets in the country.”

Mr. Mordell added, “We welcome our new institutional shareholders as well as
an increased commitment from our Board of Directors and management, and
appreciate the confidence expressed in the future of our Company and in the
Avidbank team.”

Sandler O’Neill + Partners, L.P. acted as the sole placement agent for
Avidbank Holdings in connection with the offering. Manatt, Phelps & Phillips,
LLP acted as legal counsel to Avidbank Holdings.

About Avidbank

Headquartered in Palo Alto, California, Avidbank was founded in 2003, as an
independent full-service commercial bank serving businesses and consumers in
Northern California. As of March 31, 2013 the Company had $417 million in
assets, and has a branch in Palo Alto and loan production offices in downtown
San Jose and Redwood City. Avidbank specializes in the following markets:
commercial and industrial, corporate finance, technology and asset-based
lending, real estate construction, commercial real estate lending and real
estate bridge financing.

Note Regarding Forward Looking Statements

This news release contains statements that are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by the fact that they do not
relate strictly to historical or current facts, and generally include the
words “believes”, “plans”, “intends”, “expects”, “opportunity”, “anticipates”,
“targeted”, “continue”, “remain”, “will”, “should,”, “may” or words of similar
meaning. While we believe that our forward-looking statements and the
assumptions underlying them are reasonably based, such statements and
assumptions, are, by their nature subject to risks and uncertainties, and thus
could later prove to be inaccurate or incorrect. Accordingly, actual results
could materially differ from forward-looking statements for a variety of
reasons, including, but not limited to local, regional, national and
international economic conditions and events and the impact they may have on
us and our customers, and in particular in our market areas; ability to
attract deposits and other sources of liquidity; ability to successfully
repurchase our outstanding TARP securities; oversupply of property inventory
and deterioration in values of California real estate, both residential and
commercial; a prolonged slowdown or decline in construction activity; changes
in the financial performance and/or condition of our borrowers; changes in the
level of non-performing assets and charge-offs; the cost or effect of
acquisitions we may make; the effect of changes in laws and regulations
(including laws, regulations and judicial decisions concerning financial
reform, capital requirements, taxes, banking, securities, employment,
executive compensation, insurance, and information security) with which we and
our subsidiaries must comply; changes in estimates of future reserve
requirements and minimum capital requirements based upon the periodic review
thereof under relevant regulatory and accounting requirements; ability to
adequately underwrite for our asset based and corporate finance lending
business lines; our ability to utilize all or part of any deferred tax asset;
the impact of our participation in the United States e; our ability to raise
capital; inflation, interest rate, securities market and monetary
fluctuations; cyber-security threats including loss of system functionality or
theft or loss of data; political instability; acts of war or terrorism, or
natural disasters, such as earthquakes, or the effects of pandemic flu;
destabilization in international economies resulting from the European
sovereign debt crisis; the timely development and acceptance of new banking
products and services and perceived overall value of these products and
services by users; changes in consumer spending, borrowing and savings habits;
technological changes; the ability to increase market share, retain customers
and control expenses; ability to retain and attract key management and
personnel; changes in the competitive environment among financial and bank
holding companies and other financial service providers; continued volatility
in the credit and equity markets and its effect on the general economy; the
effect of changes in accounting policies and practices, as may be adopted by
the regulatory agencies, as well as the Public Company Accounting Oversight
Board, the Financial Accounting Standards Board and other accounting standard
setters; changes in our organization, management, compensation and benefit
plans, and our ability to retain or expand our management team; the costs and
effects of legal and regulatory developments including the resolution of legal
proceedings or regulatory or other governmental inquiries and the results of
regulatory examinations or reviews; our success at managing the risks involved
in the foregoing items. We do not undertake, and specifically disclaim any
obligation to update any forward-looking statements to reflect occurrences or
unanticipated events or circumstances after the date of such statements except
as required by law.

Contact:

Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Executive Vice President and Chief Financial Officer
sleen@avidbank.com
www.avidbank.com
 
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