Avidbank Holdings, Inc. Completes Redemption of $6 Million in Preferred Stock Issued Under TARP CPP Program

  Avidbank Holdings, Inc. Completes Redemption of $6 Million in Preferred
  Stock Issued Under TARP CPP Program

Business Wire

PALO ALTO, Calif. -- August 1, 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, today announced that it has completed
the redemption of all outstanding shares of its non-cumulative perpetual
preferred stock previously held by the U.S. Treasury under its Troubled Asset
Relief Program - Capital Purchase Program (TARP CPP).

As announced June 26, 2013, the Company successfully completed a $16.0 million
private offering of common shares to institutional investors. Of the funds
raised in the private offering, $6,000,000 was scheduled to redeem the
preferred stock issued to the U.S. Treasury under the TARP CPP program and the
balance was to fund future growth opportunities.

“Although the TARP funds have assisted us during the challenging economic
times of 2008 and beyond, we are pleased to have the growth opportunities and
the investor and market support to allow us to repay this obligation to the
government,” stated Mark D. Mordell, Chairman and Chief Executive Officer.
“The growth we have experienced and our future prospects are due to the great
work of our proven team as well as some key new executives who have chosen to
join us.”

Mr. Mordell also commented, “After the repayment of TARP, the infusion of new
equity at a time of growth in assets, loans and deposits enabled us to
substantially strengthen the Bank’s key capital ratios. At June 30, 2013, the
Bank had a Tier 1 Leverage ratio of 10.98%, a Tier 1 Risk-Based Capital ratio
of 13.79%, and a Total Risk-Based Capital ratio of 15.04%. All ratios exceeded
minimum regulatory standards to be deemed ‘well-capitalized’ under regulatory
guidelines, giving us the necessary platform to further increase our franchise
value.”

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.

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
Chief Financial Officer
www.avidbank.com
 
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