SAN DIEGO, July 28, 2026 (GLOBE NEWSWIRE) — Endeavor Bancorp (OTCQX: EDVR) (the “Company” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of $1.89 million, or $0.40 per diluted share, for the second quarter of 2026, compared to $1.42 million, or $0.31 per diluted share, for the first quarter of 2026, and $1.07 million, or $0.25 per diluted share, for the second quarter of 2025. All financial results are unaudited.
“Our second quarter results reflect record earnings, supported by improved operating expense performance and highlighting the strength of our franchise,” said Julie Glance, CFO. “While net loan growth moderated relative to the pace we saw earlier in the year – largely reflecting elevated payoffs of older, lower-yielding loans- ongoing deposit growth and the investments we have made in our people and technology platform continue to generate tangible results. We are executing our plan with discipline and confidence, and our strong positioning gives us clear visibility toward continued earnings growth as we move through the remainder of 2026.”
Results for the second quarter of 2026 included a $651,000 provision for credit losses, reflecting continued prudent credit risk management. This compared to a $909,000 provision for credit losses in the first quarter of 2026, and a $746,000 provision for credit losses in the second quarter of 2025. Core pre-tax earnings, excluding taxes and loan loss provisions, were $3.30 million in the second quarter of 2026, an increase of $396,000, or 13.6%, compared to $2.91 million in the preceding quarter, and up $1.02 million, or 45.0%, from $2.28 million in the second quarter of 2025.
Income Statement
Measured loan growth and steady earning asset yields drove improved earnings for the second quarter of 2026. Total interest income on loans and bank deposits and investments was $12.4 million, an increase of $189,000, or 1.5%, compared to the $12.2 million earned in the preceding quarter, while total interest expenses increased modestly by $82,000 during the same timeframe. Net interest income was $8.6 million in the second quarter of 2026, which was a 1.3% increase compared to the preceding quarter and a 16.2% increase compared to the second quarter of 2025.
“Our net interest margin narrowed slightly to 4.41% in the second quarter compared to the preceding quarter, and expanded by 20 basis points year-over-year,” said Dan Yates, CEO. “Amid a shifting policy tone from the Federal Reserve, disciplined balance sheet management limited net interest margin compression to just 7 basis points from the prior quarter, a direct result of prudent positioning focused on long-term stability over short-term rate movements.”
The Company’s net interest margin was 4.41% in the second quarter of 2026 compared to 4.48% in the first quarter of 2026 and increased 20 basis points compared to 4.21% in the second quarter of 2025. The yield on total earning assets during the second quarter of 2026 was 6.37%, compared to 6.45% in the preceding quarter, and 6.62% in the second quarter of 2025. The decline in earning-asset yield during the second quarter was primarily attributable to a one-time reduction in investment income associated with the sale of two lower-yielding securities during the quarter and was not indicative of broader margin compression. The cost of funds decreased to 2.12% in the second quarter, compared to 2.13% in the first quarter of 2026, and decreased compared to 2.57% in the second quarter of 2025.
Non-Interest income was $357,000 in the second quarter of 2026, a decrease of $62,000 or 14.8% compared to the first quarter of 2026, and an increase of $82,000, or 29.6% compared to the second quarter of 2025.
Non-interest expense was $5.6 million in the second quarter of 2026, a decrease of $351,000 compared to the first quarter of 2026, and an increase of $250,000 compared to the second quarter of 2025. The linked-quarter decline was primarily driven by $300,000 of annual board compensation that was paid during the first quarter of 2026 and did not recur in the second quarter. This more than offset a $43,000 increase in total salaries and benefits compared to the first quarter of 2026.
The Company’s annualized return on average equity for the second quarter of 2026 was 11.40% compared to the first quarter of 2026 at 9.31% and increased compared to 8.75% in the second quarter of 2025. The annualized return on average assets for the second quarter of 2026 was 0.95% compared to the preceding quarter at 0.74%, and increased compared to 0.60% for the second quarter of 2025.
Balance Sheet
Total assets increased by $17.5 million, or 2.2%, during the second quarter of 2026 to $823.0 million at June 30, 2026, compared to $805.5 million at March 31, 2026, and increased $76.1 million, or 10.2%, compared to June 30, 2025. Balance sheet liquidity remains strong with cash balances of $118 million, which represents 14.4% of total assets as of June 30, 2026. The Company’s investment securities increased $2.0 million during the second quarter of 2026 to $35.1 million as of June 30, 2026, representing 4.3% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $162 million as of June 30, 2026.
Total loans outstanding increased $4.4 million, or 0.7%, during the quarter to $664.8 million at June 30, 2026, compared to $660.4 million three months earlier, and increased $38.9 million, or 6.2% when compared to $625.9 million a year earlier. Total non-performing loans were 0.45% of the total loan portfolio as of June 30, 2026, compared to 0.17% as of March 31, 2026. The Company had a loan recovery of $52,000 during the second quarter of 2026 and no net charge-off in the first quarter of 2026. In the year ago quarter net charge-offs totaled $421,000.
“The moderation in net loan growth reflected an elevated level of loan payoffs during the quarter, as several clients monetized or refinanced projects, partially offset continued new loan production. Notably, many of these payoffs involved older, lower-yielding credits, allowing us to redeploy those funds into new loans at today’s higher rates – a dynamic we expect to support net interest margin over time. Meanwhile, our deposit base continued to grow, reflecting the depth of our client relationships and providing a stable funding foundation as lending activity accelerates,” said Steve Sefton, President.
The provision for credit losses was $651,000 in the second quarter of 2026, compared to $909,000 in the first quarter of 2026, and $746,000 in the second quarter of 2025. The allowance for credit losses increased to $10.9 million, or 1.64% of total loans, at June 30, 2026 compared to 1.55% at March 31, 2026, a level management believes remains conservative relative to peers. “Our prudent provision expense during the quarter reflects a handful of specific credit downgrades rather than any broad deterioration in portfolio quality. These loans are primarily secured, and we remain confident in our ability to work through these credits without significant loss,” added Sefton.
Total deposits increased $15.8 million, or 2.2%, during the second quarter of 2026 to $725.0 million at June 30, 2026, compared to $709.2 million three months earlier, and increased $57.6 million, or 8.6%, when compared to $667.4 million a year earlier. “We’re pleased with the continued momentum in our deposit base, which reflects strong client engagement. We manage that base thoughtfully — with diversified funding sources, off balance sheet deposit relationships and active oversight of our larger relationships — so we remain well-positioned in any market,” said Glance. The loan to deposit ratio was 91.7% at June 30, 2026, compared to 93.1% at March 31, 2026, and 93.8% as of June 30, 2025.
As a participant in reciprocal deposit placement networks, the Bank offers customers access to FDIC insurance coverage on deposit balances in excess of the standard $250,000 limit while maintaining the customer relationship at the Bank. Reciprocal deposits reported as brokered deposits totaled $59.0 million at June 30, 2026, compared to $111.7 million at March 31, 2026. Additionally, the Company continues to utilize a conservative level of wholesale funding. Excluding reciprocal deposits, wholesale deposits totaled $44.7 million, representing 6.2% of total deposits at June 30, 2026, compared to $44.5 million, or 6.3% of total deposits, at March 31, 2026. At June 30, 2025, wholesale deposits totaled $56.8 million.
Shareholders’ equity increased to $66.6 million at June 30, 2026, compared to $64.8 million at March 31, 2026, and $48.9 million at June 30, 2025. Tangible book value per share was $15.11 at June 30, 2026, compared to $14.99 three months earlier and $13.64 a year earlier.
Capital
The Bank’s Tier 1 leverage ratio was 11.82% as of June 30, 2026, compared to 11.72% as of March 31, 2026. The Tier 1 risk-based capital ratio was 11.76% as of June 30, 2026, compared to 11.60% as of March 31, 2026, and increased from 10.20% as of June 30, 2025. The total risk-based capital ratio was 13.02% as of June 30, 2026, and 12.85% as of March 31, 2026. All capital ratios remained well above regulatory minimums for the second quarter of 2026.
About Endeavor Bancorp
Endeavor Bancorp, the holding company for Endeavor Bank, is primarily owned and operated by Southern Californians for Southern California businesses and their owners. The bank’s focus is local: local decision-making, local board, local founders, local owners, and relationships with local clients in Southern California.
Headquartered in downtown San Diego in the Symphony Towers building, the Bank also operates a loan production and executive administration office in Carlsbad, a branch office in La Mesa, and a loan production office in Pasadena. In addition, the Bank maintains production teams throughout Southern California. Endeavor Bank provides traditional business banking services across a broad spectrum of industries and specialties. Unique to the bank is its consultative banking approach that partners our business clients with Endeavor Bank’s senior management. Together, we build strategies and provide resources that solve problems, plan for the future, and help clients’ efforts to grow revenues and profits. Endeavor Bancorp trades on the OTCQX® Best Market under the symbol “EDVR.” Visit www.endeavor.bank for more information.
Endeavor Bank is rated by Bauer Financial as Five-Star “Superior” for strong financial performance, the top rating given by the independent bank rating firm. DepositAccounts.com awarded Endeavor Bank an A rating.
EDVR Shareholders
With many of our shareholders transferring their EDVR shares to their brokerage companies, along with ongoing trading taking place, Bancorp may not have the most current shareholder contact information. If you are an EDVR shareholder and would like to receive information via a more timely method, please complete the Shareholder Communication Preference Form on our website: https://www.bankendeavor.com/investor-relations so we can keep you updated on EDVR news, and invite you to various shareholder networking events throughout the year.
Forward-Looking Statements
This press release includes “forward-looking statements,” as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the Company’s directors and executive officers (collectively, “Management”), as well as assumptions made by and information currently available to the Company’s Management. All statements regarding the Company’s business strategy and plans and objectives of Management of the Company for future operations, are forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar meaning, as they relate to the Company or the Company’s Management, are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s expectations (“cautionary statements”) are loan losses, rapid and unanticipated deposit withdrawals, unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks generally, changes in interest rates, loss of key personnel, lower lending limits and capital than competitors, regulatory restrictions and oversight of the Company, the secure and effective implementation of technology, risks related to the local and national economy, the effect on customers, collateral value and property insurance markets of the recent wildfires in the Los Angeles metropolitan area and similar events in the future, changes in real estate values, the Company’s implementation of its business plans and management of growth, loan performance, interest rates, and regulatory matters, the effects of trade, monetary and fiscal policies, inflation, and changes in accounting policies and practices. Based upon changing conditions, if any one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, actual results may vary materially from those described as anticipated, believed, estimated, expected, or intended. The Company does not intend to update these forward-looking statements.
| SELECTED FINANCIAL DATA | |||||||||||
| (In thousands of dollars, except for ratios and per share amounts) | |||||||||||
| Unaudited | |||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||
| (Consolidated) | (Consolidated) | (Consolidated) | |||||||||
| SUMMARY OF OPERATIONS | |||||||||||
| Interest income | $ | 12,417 | $ | 12,228 | $ | 11,623 | |||||
| Interest expense | 3,834 | 3,752 | 4,234 | ||||||||
| Net interest income | 8,583 | 8,476 | 7,389 | ||||||||
| Provision for credit losses | 651 | 909 | 746 | ||||||||
| Net interest income after loss provision | 7,932 | 7,567 | 6,643 | ||||||||
| Non-interest income | 357 | 419 | 276 | ||||||||
| Non-interest expense | 5,635 | 5,986 | 5,385 | ||||||||
| Income before tax | 2,653 | 1,999 | 1,533 | ||||||||
| Federal income tax expense | 488 | 371 | 294 | ||||||||
| State income tax expense | 280 | 213 | 172 | ||||||||
| Net income | $ | 1,885 | $ | 1,415 | $ | 1,067 | |||||
| Core pretax earnings* | $ | 3,304 | $ | 2,908 | $ | 2,279 | |||||
| *excludes taxes and provision for loan losses | |||||||||||
| PER COMMON SHARE DATA | |||||||||||
| Number of shares outstanding (000s)* | 4,410 | 4,320 | 3,586 | ||||||||
| *Adjusted for May 2025 Stock Dividend | |||||||||||
| Earnings per share, basic | $ | 0.43 | $ | 0.33 | $ | 0.30 | |||||
| Earnings per share, diluted | $ | 0.40 | $ | 0.30 | $ | 0.27 | |||||
| Book Value per share | $ | 15.11 | $ | 14.99 | $ | 13.64 | |||||
| BALANCE SHEET DATA | |||||||||||
| Assets | $ | 823,048 | $ | 805,527 | $ | 746,907 | |||||
| Investments securities | 35,103 | 33,061 | 28,117 | ||||||||
| Total loans, net of unearned income | 664,829 | 660,411 | 625,912 | ||||||||
| Allowance for Credit Losses | 10,919 | 10,252 | 8,533 | ||||||||
| Total deposits | 724,988 | 709,214 | 667,408 | ||||||||
| Borrowings | 26,844 | 26,819 | 26,746 | ||||||||
| Shareholders’ equity | 66,649 | 64,759 | 48,905 | ||||||||
| Loan to Deposit ratio | 91.70 | % | 93.12 | % | 93.78 | % | |||||
| Wholesale Deposits to Total Deposits | 6.17 | % | 6.28 | % | 8.50 | % | |||||
| AVERAGE BALANCE SHEET DATA | |||||||||||
| Average assets | $ | 794,589 | $ | 781,191 | $ | 712,281 | |||||
| Average total loans, net of unearned income | 659,737 | 651,674 | 611,480 | ||||||||
| Average total deposits | 696,483 | 687,249 | 632,477 | ||||||||
| Average shareholders’ equity | 66,358 | 61,574 | 48,909 | ||||||||
| ASSET QUALITY RATIOS | |||||||||||
| Net (charge-offs) recoveries | $ | (52 | ) | $ – | $ | 421 | |||||
| Net (charge-offs) recoveries to average loans | -0.01% | 0.00 | % | 0.28 | % | ||||||
| Non-performing loans as a % of loans | 0.45 | % | 0.17 | % | 0.32 | % | |||||
| Non-performing assets as a % of assets | 0.37 | % | 0.14 | % | 0.27 | % | |||||
| Allowance for loan losses as a % of total loans | 1.64 | % | 1.55 | % | 1.36 | % | |||||
| Non-performing assets as a % of allowance for loan losses | 27.58 | % | 10.93 | % | 23.37 | % | |||||
| FINANCIAL RATIOSSTATISTICS | |||||||||||
| Annualized return on average equity | 11.40 | % | 9.31 | % | 8.75 | % | |||||
| Annualized return on average assets | 0.95 | % | 0.74 | % | 0.60 | % | |||||
| Net interest margin | 4.41 | % | 4.48 | % | 4.21 | % | |||||
| Efficiency ratio | 63.19 | % | 67.25 | % | 70.27 | % | |||||
| CAPITAL RATIOS | |||||||||||
| Tier 1 leverage ratio — Bank | 11.82 | % | 11.72 | % | 10.60 | % | |||||
| Common equity tier 1 ratio — Bank | 11.76 | % | 11.60 | % | 10.20 | % | |||||
| Tier 1 risk-based capital ratio — Bank | 11.76 | % | 11.60 | % | 10.20 | % | |||||
| Total risk-based capital ratio –Bank | 13.02 | % | 12.85 | % | 11.37 | % | |||||
| TCE/TA * | 8.10 | % | 8.04 | % | 6.55 | % | |||||
| Tangible Book Value per Share | $ | 15.11 | $ | 14.99 | $ | 13.64 | |||||
| *Non-GAAP financial measure. | |||||||||||
| Unaudited financials 2026 | |||||||||||
Endeavor Bancorp Contact Information:
(858) 230.5185
Dan Yates, CEO
dyates@bankendeavor.com
(858) 230.4243
Steve Sefton, President
ssefton@bankendeavor.com
