PALO ALTO, Calif.--(BUSINESS WIRE)--
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.
Avidbank Holdings, Inc.
Steve Leen, 650-843-2204
Chief
Financial Officer
www.avidbank.com
Source: Avidbank Holdings, Inc.