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Avidbank Holdings, Inc. (AVBH) Q4 2025 Earnings Call Transcript

- **IPO Success:** $61 million net proceeds drove portfolio restructuring, enabling 3.90% net interest margin and 1.13% ROA.
- **Growth Metrics:** 10% loan growth, 15% deposit growth, and 13.48% capital ratio reflect strong financial health.
- **Profitability:** Adjusted net income of $6.7 million vs. GAAP loss of $37.7 million, with Q4 margin expected >4.10%.
- **Strategic Positioning:** Leveraging industry consolidation to capture venture and CRE opportunities, maintaining disciplined credit standards.

**【Management Opening Remarks】**
- Avidbank completed its IPO mid-quarter, raising $61 million net proceeds, restructuring its securities portfolio to enhance profitability, and introducing 40 new investors.
- The IPO significantly impacted Q3 financials, with strategic repositioning of $275 million in securities sold, resulting in a GAAP net loss of $37.7 million.

**【CEO Commentary】**
- Core operations showed strong growth: loan growth of $46 million (10% annualized), deposit growth of $72 million (15% annualized), and credit quality maintained at 12 basis points (BPS) with one non-performing asset (NPA).
- Emphasized the IPO’s strategic benefits, including enhanced liquidity and capital restructuring, positioning the bank for future growth.

**【CFO Commentary】**
- GAAP net loss of $37.7 million due to security sales, but adjusted net income of $6.7 million ($0.72 EPS) highlighted operational strength.
- Net interest margin expanded to 3.90% (vs. 3.60% Q2), driven by lower deposit costs (4 BPS decline) and reinvestment in higher-yielding assets.
- Capital ratios improved to 13.48% (from 12.76%), reflecting a stronger balance sheet post-IPO.

**【Q&A Highlights】**
- **Margin Outlook:** Q4 margin expected above 4.10%, with asset sensitivity managed through cash reinvestment and DDA growth.
- **Deposit Strategy:** Maintaining a 59% beta on interest-bearing deposits, targeting 95% loan-to-deposit ratio.
- **Pipeline Strength:** Q4 loan pipeline robust in fund finance, CRE, and ABL, despite construction loan payoffs.
- **Industry Positioning:** Benefiting from First Republic outflows and Comerica’s challenges, focusing on early-stage venture lending.

Avidbank Holdings Inc (AVBH) Q3 2025 Earnings Call Transcript

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