# Avidbank Expects $270 Million Deposit Outflow in Q4, Beta Below 50%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/42335
Published: 2026-10-28T04:22:53.000Z
Updated: 2026-10-28T04:22:53.000Z
Section: Business

> Deposits reached $2.612 billion at Sept. 30, while the bank added about $76 million in core deposits after exclusions.

Avidbank Holdings expects about $270 million from an existing client to leave during the fourth quarter after the client sold part of its business, while management forecasts deposit beta below 50%.

Patrick Oakes, executive vice president and CFO, said Oct. 27 that management hoped the deposit beta would be closer to 40%.

Deposits stood at $2.612 billion on Sept. 30, $290.1 million higher than on June 30, a 50% increase on an annualized basis. After excluding the temporary client balance and brokered deposits, Avidbank added about $76 million in core deposits during the quarter.

The bank’s third-quarter net interest margin was 4.07%, down 19 basis points from the prior quarter. Avidbank estimated that average interest-earning cash balances rose by $205 million, primarily because of temporary deposits, reducing the margin by about 17 basis points. Net interest income increased $2 million from the second quarter to $28.7 million.

Avidbank Holdings is the parent of a California state-chartered business bank headquartered in San Jose. Chairman and CEO Mark Mordell said the client’s funds were temporary: “We knew from the beginning that these funds would be temporary, and we expect them to leave over the course of the fourth quarter.”