Avidbank Deposits to Fall by $270 Million

The San Jose bank expects the decline in the fourth quarter due to a client's business sale.

Updated on Oct. 28, 2026 in Saving

Avidbank Deposits to Fall by $270 Million

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San Jose-based Avidbank Holdings projects a $270 million deposit outflow during the fourth quarter of 2026. This expected decline follows a period where total deposits reached $2.612 billion as of September 30.

Why it matters

The projected outflow stems from a single client selling part of its business, illustrating how large, concentrated balances can create fluctuations in a bank's total liquidity position. For households, understanding these shifts is relevant when evaluating the stability and strategy of regional banking institutions.

Avidbank reported total deposits of $2.612 billion as of September 30, including $76 million in core deposits added during the third quarter. The anticipated $270 million fourth-quarter outflow represents roughly 10% of the bank's total deposit base.

The players

Avidbank Holdings

A San Jose-based bank that manages deposits and provides interest-earning accounts for its clients.

Patrick Oakes

The Chief Financial Officer of Avidbank who manages the bank's deposit beta forecasts and financial communications.

The details

The anticipated withdrawal is directly linked to an existing client’s business sale, which will result in a departure of funds from the bank. While Avidbank added $76 million in core deposits during the third quarter—excluding brokered and temporary balances—the upcoming exit highlights the impact that temporary or large-scale client fluctuations have on bank metrics like the net interest margin, which sat at 4.07% in the third quarter.

Deposits were recorded at a baseline level on June 30, 2026.
Total deposits reached $2.612 billion on September 30, 2026.
CFO Patrick Oakes provided commentary on deposit beta targets on October 27, 2026.
The $270 million deposit outflow is expected during Q4 2026.

Money Landscape

Regional banks must continuously balance core deposit growth against the volatility of large-scale client balances. This development highlights the ongoing focus on liquidity management in the current interest-rate cycle.

For depositors, this shift serves as a reminder to monitor the health and liquidity projections of your financial institution in periodic earnings reports. If you hold significant cash, consult a financial professional about how bank-level deposit shifts may impact your access to liquidity.

The takeaway

Large business transactions can cause significant fluctuations in bank deposits, affecting the bank's interest margins and liquidity strategies. It is helpful to periodically review the stability of your own banking institution by tracking their quarterly net interest income and deposit growth trends.