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Avidbank Holdings
(NASDAQ:AVBH)
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Rating:56Neutral
Price Target:
$34.00
▲(13.75% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily weighed down by financial performance concerns around earnings quality and the 2025 drop-off in cash flow, despite solid revenue and profitability trends and improving leverage. Technicals are supportive with the stock trading above key moving averages and moderate positive momentum. Valuation is reasonable on a ~10.9 P/E, while the latest earnings call was cautiously positive but highlighted meaningful credit and funding-cost risks.
Positive Factors
Stronger Balance Sheet / Lower Leverage
Material de‑risking of the balance sheet via a substantial drop in leverage increases resilience to funding shocks and gives management capacity to grow loans or absorb losses. A large equity base supports capital ratios and long-term strategic flexibility, even if ROE moderates.
Negative Factors
Sharp Cash Flow Deterioration
A collapse to zero operating and free cash flow in 2025 signals weaker cash conversion and raises questions about earnings quality. That reduces internal funding for growth, limits buybacks/dividends flexibility, and increases reliance on capital markets or retained earnings for strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger Balance Sheet / Lower Leverage
Material de‑risking of the balance sheet via a substantial drop in leverage increases resilience to funding shocks and gives management capacity to grow loans or absorb losses. A large equity base supports capital ratios and long-term strategic flexibility, even if ROE moderates.
Read all positive factors
Avidbank Holdings (AVBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$354.18M
Dividend YieldN/A
Average Volume (3M)42.69K
Price to Earnings (P/E)10.9
Beta (1Y)0.49
Revenue Growth-32.49%
EPS Growth-159.94%
CountryUS
Employees154
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.00
Shares Outstanding10,955,167
10 Day Avg. Volume21,893
30 Day Avg. Volume42,693
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)0.71
Price to Sales (P/S)2.70
P/FCF Ratio0.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$38.00Price Target Upside27.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.41
Revenue Forecast (FY)$116.44M
Avidbank Holdings Business Overview & Revenue Model
Company Description
Avidbank Holdings, Inc. serves as the parent company for Avidbank, a financial institution that delivers a broad spectrum of products and services to small and mid-sized businesses, professionals, and individuals. Its primary service area spans th...
How the Company Makes Money
Avidbank Holdings makes money primarily through its banking subsidiary by generating (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest collected on interest-earning assets—primarily ...
Avidbank Holdings Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented meaningful positives — stronger profitability, healthy loan and deposit growth, margin expansion, improved efficiency, and solid capital metrics — while also acknowledging several near-term risks: material Q1 charge-offs, concentrated venture/SaaS exposure that requires active monitoring, deposit cost pressure that could compress margins, and rising personnel-related expenses as the bank invests to scale. Management reiterated growth targets and emphasized active credit oversight, particularly around venture/SaaS and select criticized real estate credits. Overall, the transcript reflects a cautiously optimistic tone: strong operational progress and capital strength tempered by identifiable credit and funding/liability risks that merit close attention.Positive Updates
Improved Profitability and EPS Growth
Net income of $9.0M in Q1 2026, or $0.84 per diluted share, up from $6.9M / $0.65 in Q4 (≈+30% in net income; ≈+29% in EPS). Return on assets improved to 1.46% from 1.12%, and return on average equity increased to 12.7%.
Negative Updates
Credit Charges and Net Charge-Offs
Net charge-offs were $2.8M in Q1, equal to 52 basis points of average loans, primarily driven by charge-off of two C&I credits — a material near-term credit hit.
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Profitability and EPS Growth
Net income of $9.0M in Q1 2026, or $0.84 per diluted share, up from $6.9M / $0.65 in Q4 (≈+30% in net income; ≈+29% in EPS). Return on assets improved to 1.46% from 1.12%, and return on average equity increased to 12.7%.
Read all positive updates
Company Guidance
Management guided to continued low double‑digit loan and deposit growth for the year (Q1 loan growth $24M, $332M or +18% YoY; deposits +$13M, $270M or +14% YoY), said Q1 NIM of 4.38% should normalize a bit toward roughly 4.25%–4.30% as deposit costs stay above 3% (Q1 interest‑bearing cost avg 2.98%, spot 3.03%), expects DDA to normalize down from 33.1% toward the mid‑20s, reiterated a mid‑28% tax rate for the remainder of 2026 (Q1 effective 27.5%), flagged modest near‑term expense pressure as headcount rose to 154 (added 3 in Q1; 2–4 more planned in Q2) and salary/benefits could move from ~$9.6M toward ~$10M (noninterest expense $14.1M; efficiency ratio 50.4%), and said capital and shareholder actions remain active (book value $26.33; Tier 1 11.39%; repurchased 25K shares for $693K), while continuing close credit monitoring of venture/SaaS exposure (provision $1.4M, net charge‑offs $2.8M or 52 bps, NPLs down $16.3M).Avidbank Holdings Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 68.37M | 74.20M | 77.14M | 67.86M | 75.24M | 52.77M |
| Gross Profit | 22.27M | 25.81M | 77.14M | 67.86M | 75.24M | 52.77M |
| EBITDA | -19.63M | -34.36M | 1.74M | 2.01M | 2.19M | 0.00 |
| Net Income | 29.41M | 23.98M | 21.02M | 16.80M | 25.02M | 12.26M |
Balance Sheet | ||||||
| Total Assets | 2.66B | 2.57B | 2.31B | 2.24B | 2.14B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 246.09M | 10.87M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Debt | 22.00M | 22.00M | 214.69M | 392.33M | 167.64M | 37.53M |
| Total Liabilities | 2.36B | 2.29B | 2.12B | 2.07B | 2.00B | 2.03B |
| Stockholders Equity | 296.19M | 280.98M | 186.36M | 165.31M | 137.54M | 137.10M |
Cash Flow | ||||||
| Free Cash Flow | 12.47M | 0.00 | 22.64M | 36.16M | 28.12M | 16.21M |
| Operating Cash Flow | 12.41M | 0.00 | 22.69M | 36.33M | 28.66M | 16.29M |
| Investing Cash Flow | 72.69M | 0.00 | -82.70M | -62.69M | -475.66M | -478.44M |
| Financing Cash Flow | -215.02M | -82.70M | 61.31M | 60.47M | 950.00K | 725.46M |
Avidbank Holdings Technical Analysis
Positive
29.89
Price Trends
32.22
Positive
30.80
Positive
29.03
Positive
Market Momentum
0.14
Positive
55.41
Neutral
19.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVBH, the sentiment is Positive. The current price of 29.89 is below the 20-day moving average (MA) of 32.43, below the 50-day MA of 32.22, and above the 200-day MA of 29.03, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 19.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVBH.
Avidbank Holdings Risk Analysis
Avidbank Holdings disclosed 72 risk factors in its most recent earnings report. Avidbank Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our Exposure to Software-as-a-Service Borrowers Subjects Us to Risks From Rapid Developments in Artificial Intelligence Q1, 2026
Avidbank Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $390.03M | 9.60 | 12.05% | 2.68% | 3.23% | 29.90% | |
71 Outperform | $363.42M | 8.20 | 12.00% | 3.94% | -4.60% | -6.95% | |
71 Outperform | $323.87M | 13.43 | 9.16% | 0.77% | 5.41% | 29.77% | |
68 Neutral | $392.63M | 10.39 | 13.30% | 4.26% | 3.47% | 25.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $369.79M | 11.96 | 8.63% | 3.19% | 4.60% | 52.13% | |
56 Neutral | $354.18M | 10.89 | 10.33% | ― | -32.49% | -159.94% |
* Financial Sector Average
AVBH
Avidbank Holdings
32.67
8.74
36.52%
FNLC
First Bancorp
35.42
10.42
41.67%
NECB
Northeast Community Bancorp
26.79
6.02
28.98%
WSBF
Waterstone Financial
20.81
7.35
54.65%
CZFS
Citizens Financial Services
82.29
25.65
45.29%
JMSB
John Marshall Bancorp
23.23
3.94
20.43%
Avidbank Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Avidbank Names JD Dale President in Leadership Transition
Positive
Aug 3, 2026
On August 3, 2026, Avidbank Holdings, Inc. and its wholly owned subsidiary Avidbank appointed veteran commercial banker Jonathan M. “JD” Dale as President of both the holding company and the bank. He will report to long‑time Chai...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Avidbank Holdings Reports Solid Q2 2026 Earnings Performance
Positive
Jul 23, 2026
On July 23, 2026, Avidbank Holdings, Inc. reported second‑quarter 2026 net income of $7.6 million, or $0.71 per diluted share, down from $9.0 million in the first quarter but up from $5.8 million a year earlier. Results were affected by a $2...
Executive/Board ChangesShareholder Meetings
Avidbank Shareholders Elect Directors, Ratify 2026 Auditor
Positive
May 21, 2026
Avidbank Holdings, Inc. held its 2026 Annual Meeting of Shareholders on May 19, 2026, with 8,713,597 of 10,955,167 eligible common shares represented in person or by proxy, constituting a quorum under its bylaws. Shareholders elected ten directors...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.