Avidbank Holdings, Inc. (NASDAQ: AVBH)

Avidbank Holdings is a bank holding company that operates through its wholly owned subsidiary Avidbank a state chartered commercial bank headquartered in San Jose California. The bank provides full service banking solutions including lending deposit and treasury management products to small to mid sized businesses technology companies and individuals primarily in the Bay Area while also maintaining a national presence in venture lending and specialty finance.

Avidbank Holdings generates revenue primarily from interest income on loans and fees for deposit services treasury management and other banking activities. The company earns interest on its loan portfolio which includes commercial and industrial commercial real estate construction venture backed and specialty finance loans. Noninterest income comes from deposit related fees treasury product charges and service fees on products such as credit cards foreign exchange and lockbox services.

The company operates through the following segments: Corporate Banking Commercial Real Estate Construction Lending Venture Lending and Specialty Finance.

• Corporate Banking: This segment provides customized commercial and industrial loans to small to mid sized privately held businesses across various industries in the Bay Area. Loans fund operations expansions acquisitions and owner occupied real estate and are repaid primarily from business cash flow with terms ranging from 12 months to 10 years and sizes up to $20 million.

• Commercial Real Estate: This segment offers term financing for commercial multi family and mixed use properties throughout the Bay Area. Loans are secured by multifamily office industrial retail or other commercial properties and have sizes up to $20 million with typical amortization terms of 15 to 25 years and adjustable interest rates.

• Construction Lending: This segment finances the construction of high end residential properties for experienced local developers and homeowners throughout the Bay Area. It provides funding across all stages of development including land acquisition pre development and construction for residential and commercial projects with loan sizes up to $18 million and a typical loan to value ratio of 70%.

• Venture Lending: This segment provides banking services to venture backed technology companies and to venture capital and private equity firms. It serves companies that have received at least one round of institutional funding exhibit strong revenue growth with negative operating cash flow and rely on future investor rounds for repayment with loan sizes up to $20 million.

• Specialty Finance: This segment consists of Sponsor Finance Asset Based Lending and Accounts Receivable Factoring divisions. Sponsor Finance provides acquisition financing to lower middle market businesses backed by private equity or search fund sponsors with loan sizes up to $20 million. Asset Based Lending offers loans secured by accounts receivable and inventory to manufacturers wholesalers and technology companies with sizes up to $20 million. Accounts Receivable Factoring provides invoice finance to a variety of businesses nationally with sizes up to $10 million.

Avidbank Holdings holds a niche position in the banking industry as a focused commercial bank that competes primarily with larger national and regional banks credit unions and non bank lenders. The company distinguishes itself through its relationship driven approach specialized lending teams and a single branch model that enables operational efficiency and high touch client service. Its expertise in venture lending and specialty finance along with strong ties to venture capital private equity and institutional investors provides a competitive edge in serving growth oriented businesses across the United States.

Avidbank Holdings serves a diverse customer base that includes small to mid sized privately held businesses technology companies individuals venture backed enterprises private equity sponsors and real estate developers primarily in the Bay Area while also maintaining relationships with clients across 39 states.