Avidbank Holdings, Inc. (AVBH) Cash Flow Statement

Debt movement has been negligible across the window, with only a $1.0 million long-term repayment in 2025Q2 and a $1.0 million short-term reduction in 2025Q3, so retained earnings appear to be the sole engine of internal capital formation. Because operating cash flow is reported at zero for both 2026 quarters, investors cannot confirm from these lines that reported profits are actually converting into cash that accrues to capital buffers.

A sale program roughly 74% larger than gross purchases reads more like balance-sheet liquidity management than routine reinvestment, suggesting the bank was shrinking the securities book rather than extending duration at prevailing yields. Every other quarter shows no recorded portfolio activity, leaving the post-liquidation reinvestment posture unresolved and making it difficult to attribute the negative net interest margin of -0.5% seen in 2026Q2 to any deliberate duration or reinvestment shift.

The lone repurchase is immaterial against $61.5 million of cumulative net income over the ten quarters shown, implying that effectively all earnings have been retained rather than distributed. This pattern may indicate capital is being reserved for buffer targets or internal growth, but whether it reflects regulatory prudence or a judgment that excess capital is limited cannot be settled from the cash flow lines alone.

Because a reserve release is non-cash, the 2026Q2 earnings print likely overstates the period's cash-generating capacity, a caution reinforced by the negative net interest income of -$13.2 million reported in the same quarter. Alternating builds and releases, including a $2.8 million build in 2025Q4, a $2.3 million build in 2025Q3 and a $3.4 million release in 2024Q3, suggest reserve movements rather than core operating performance are a principal driver of quarter-to-quarter earnings volatility.