SAN DIEGO, April 24, 2026 (GLOBE NEWSWIRE) -- Endeavor Bancorp (OTCQX: EDVR) (the "Company" or "Bancorp"), the holding company for Endeavor Bank (the "Bank"), today reported net income of $1.42 million, or $0.31 per diluted share, for the first quarter of 2026, compared to $1.70 million, or $0.45 per diluted share, for the fourth quarter of 2025, and $1.36 million, or $0.32 per diluted share, for the first quarter of 2025. All financial results are unaudited.
"Our first quarter results delivered exactly what we set out to achieve, highlighted by exceptional net interest margin expansion that meaningfully strengthened our earnings profile," said Julie Glance, CFO. "Continued growth across both loans and deposits further reinforced the momentum we carried into the new year. The investments we have made in our people and technology platform continue to generate tangible results, reflected in elevated client engagement and strengthening relationships across our portfolio. We are executing on our plan with discipline and confidence, and our strong positioning gives us clear visibility toward continued earnings growth as we move through 2026."
Results for the first quarter of 2026 included a $909,000 provision for credit losses, reflecting continued prudent credit risk management. This compared to a $664,000 provision for credit losses in the fourth quarter of 2025, and a $385,000 provision for credit losses in the first quarter of 2025. Core pre-tax earnings, excluding taxes and loan loss provisions, were $2.91 million in the first quarter of 2026, a decrease of $151,000, or 4.9%, compared to $3.06 million in the preceding quarter, and up $577,000, or 24.7%, from $2.33 million in the first quarter of 2025.
"A highlight of the first quarter was the completion of our $10.0 million private placement of common shares," said Dan Yates, CEO. "The success of this capital raise is a reflection of the strength of our bank and the dedication of our Board of Directors, management and team members as we expand our community bank throughout Southern California, providing our style of consultative banking to businesses who need us."
"This additional capital is already being put to work, deepening our ability to serve the business customers who depend on us while strengthening the long-term value we are committed to building for our shareholders," said Steve Sefton, President. "We continue to scale our team and execute on our deployment strategy, and our financial modeling gives us strong conviction in the returns this capital will generate over the next several years."
Income Statement
Continued loan growth and stable earning asset yields drove solid earnings for the first quarter of 2026. Total interest income on loans and bank deposits and investments was $12.2 million, equal to the $12.2 million earned in the preceding quarter, while total interest expenses decreased $332,000 during the same timeframe. Net interest income was $8.5 million in the first quarter of 2026, which was a 4.9% increase compared to the preceding quarter and a 20.9% increase compared to the first quarter of 2025.
"Our net interest margin expanded by 26 basis points in the first quarter compared to the prior quarter, and 36 basis points year-over-year," said Yates. "In a quarter marked by monetary policy uncertainty and evolving macro conditions, our team executed with focus and precision, translating a stable rate backdrop into meaningful net interest margin growth. With the Federal Reserve holding rates steady through both its January and March 2026 meetings, our disciplined balance sheet positioning drove continued net interest margin strength throughout the quarter."
The Company's net interest margin improved 26 basis points to 4.48% in the first quarter of 2026 compared to 4.22% in the fourth quarter of 2025 and increased 36 basis points compared to 4.12% in the first quarter of 2025. The yield on total earning assets during the first quarter of 2026 was 6.45%, compared to 6.35% in the preceding quarter, and 6.52% in the first quarter of 2025. The decrease during the first quarter of 2026 was primarily due to the Fed Reserve rate cuts. The cost of funds decreased to 2.13% in the first quarter, compared to 2.26% in the fourth quarter of 2025, and decreased compared to2.58% in the first quarter of 2025.
Non-Interest income was $419,000 in the first quarter of 2026, a decrease of $113,000 or 21.3% compared to the fourth quarter of 2025, and an increase of $236,000, or 129.0% compared to the first quarter of 2025. The fourth quarter of 2025 included higher SBA loan sales income.
Non-Interest expense was $6.0 million in the first quarter of 2026, an increase of $435,000 compared to the fourth quarter of 2025, and an increase of $1.2 million compared to the first quarter of 2025. The year-over-year increase in expenses was driven by several factors. Total salaries and benefits rose by $558,000 compared to the first quarter of 2025, while higher network fees associated with off-balance-sheet deposits added $250,000 -- though this was directly offset by a corresponding increase in miscellaneous income. Additionally, annual board compensation of approximately $250,000 was paid in the first quarter of 2026, whereas in 2025 that payment was deferred to the second quarter, creating a timing difference that further contributed to the year-over-year variance.
The Company's annualized return on average equity for the first quarter of 2026 was 9.31%, compared to 12.82% in the fourth quarter of 2025 and 11.68% in the first quarter of 2025. The annualized return on average assets for the first quarter of 2026 was 0.74% compared to 0.87% for the fourth quarter of 2025 and 0.79% for the first quarter of 2025.
Balance Sheet
Total assets increased by $34.9 million, or 4.5%, during the first quarter of 2026 to $805.5 million at March 31, 2026, compared to $770.6 million at December 31, 2025, and increased $101.0 million, or 14.3%, compared to March 31, 2025. Balance sheet liquidity remains strong with cash balances of $106.9 million, which represents 13.3% of total assets as of March 31, 2026. The Company's investment securities increased $683,000 during the first quarter of 2026 to $33.1 million as of March 31, 2026, representing 4.1% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $238 million as of March 31, 2026.
"Loan growth was strong in the first quarter, supported by continued momentum in deposit gathering that reflects the breadth of our client relationships and the quality of our funding base," said Sefton.
Total loans outstanding increased $17.0 million, or 2.6%, during the first quarter of 2026 to $660.4 million at March 31, 2026, compared to $643.4 million three months earlier, and increased $62.6 million, or 10.5%, when compared to $597.8 million a year earlier. Total non-performing loans decreased to 0.04% of the total loan portfolio as of March 31, 2026, compared to 0.17% as of December 31, 2025. The Company had no net charge-offs during the first quarter of 2026, compared to $197,000 in net loan charge-offs during the preceding quarter and no net charge-offs during the year ago quarter.
Total deposits increased $26.5 million, or 3.9%, during the quarter to $709.2 million at March 31, 2026, compared to $682.7 million three months earlier, and increased $83.0 million, or 13.3% when compared to $626.2 million a year earlier. "Our funding strategy remains deliberately diversified, drawing on reciprocal and off-balance-sheet deposit programs alongside multiple contingent liquidity sources to ensure resilience across market conditions. We continue to actively monitor higher-balance deposit relationships for signs of volatility, staying well ahead of any potential volatility," said Glance. The loan to deposit ratio was 93.1% at March 31, 2026, compared to 94.2% at December 31, 2025, and 95.5% as of March 31, 2025.
As a result of its participation in reciprocal deposit placement networks, the Bank accepted "reciprocal" deposits from other institutions, enabling the Bank to offer customers FDIC insurance on accounts in excess of the typical $250,000 FDIC insurance limit. Although the reciprocal deposits maintained through the network are core deposits seeking FDIC insurance, the FDIC rules indicate that reciprocal deposits aggregating over 20% of total liabilities are classified as deposits obtained by or through a deposit broker. The total reciprocal deposits reported as brokered deposits were $111.7 million at March 31, 2026, and $110.4 million as of December 31, 2025. Additionally, to support strong loan growth, the Company is utilizing a conservative amount of wholesale deposits. As of March 31, 2026, total wholesale deposits, excluding the reciprocal deposits, were $44.5 million, representing 6.28% of total deposits compared to $35.3 million, or 5.2% of total deposits as of December 31, 2025. At March 31, 2025, wholesale deposits were $55.7 million, representing an overall decrease of 20.1%.
Shareholders' equity increased to $64.8 million at March 31, 2026, compared to $53.1 million at December 31, 2025, and $47.7 million at March 31, 2025. Tangible book value per share increased to $14.99 at March 31, 2026, compared to $14.68 three months earlier and $13.61 a year earlier.
Capital
The Bank's Tier 1 leverage ratio was 11.72% as of March 31, 2026, compared to 10.24% at December 31, 2025. The Tier 1 risk-based capital ratio was 11.60% as of March 31, 2026, compared to 10.36% at December 31, 2025, and the Total risk-based capital ratio was 12.85% compared to 11.61% three months earlier, all of which remained well above regulatory minimums.
On January 30, 2026, the Company announced that it has completed a private placement of $10.0 million of the Company's common shares to certain accredited investors. The Company issued 666,665 shares of common stock at a purchase price of $15.00 per share in connection with the private placement transaction. The Company expects to use the proceeds from the capital raise to support organic and strategic growth opportunities.
The transaction was conducted internally with accredited investors without the use of an external investment banker or broker to raise the capital. Management and board members participated in the offering with a $799,000 investment and contributed an additional $419,000 capital through stock option exercises.
About Endeavor Bancorp
Endeavor Bancorp, the holding company for Endeavor Bank, is primarily owned and operated by Southern Californians for Southern California businesses and their owners. The bank's focus is local: local decision-making, local board, local founders, local owners, and relationships with local clients in Southern California.
Headquartered in downtown San Diego in the Symphony Towers building, the Bank also operates a loan production and executive administration office in Carlsbad, a branch office in La Mesa, and a loan production office in Pasadena. In addition, the Bank maintains production teams throughout Southern California. Endeavor Bank provides traditional business banking services across a broad spectrum of industries and specialties. Unique to the bank is its consultative banking approach that partners our business clients with Endeavor Bank's senior management. Together, we build strategies and provide resources that solve problems, plan for the future, and help clients' efforts to grow revenues and profits. Endeavor Bancorp trades on the OTCQX$(R)$ 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
March 31, 2026 December 31, 2025 March 31, 2025
------------------ ------------------ ------------------
(Consolidated) (Consolidated) (Consolidated)
SUMMARY OF
OPERATIONS
Interest income $ 12,228 $ 12,163 $ 11,119
Interest expense 3,752 4,084 4,106
--- --------- --- -------- --- --- ---------
Net interest
income 8,476 8,079 7,013
Provision for
credit losses 909 664 385
--- --------- --- -------- --- --- ---------
Net interest
income after loss
provision 7,567 7,415 6,628
Non-interest
income 419 532 183
Non-interest
expense 5,986 5,551 4,864
--- --------- --- -------- --- --- ---------
Income before tax 1,999 2,396 1,947
Federal income tax
expense 371 440 372
State income tax
expense 213 254 214
Net income $ 1,415 $ 1,702 $ 1,361
=== ========= === ======== === === =========
Core pretax
earnings* $ 2,908 $ 3,059 $ 2,332
*excludes taxes
and provision for
loan losses
PER COMMON SHARE
DATA
Number of shares
outstanding
(000s)* 4,187 3,619 3,503
*Adjusted for May
2025 Stock
Dividend
Earnings per
share, basic $ 0.34 $ 0.47 $ 0.39
Earnings per
share, diluted $ 0.31 $ 0.45 $ 0.32
Book Value per
share $ 15.47 $ 14.68 $ 13.61
BALANCE SHEET DATA
Assets $ 805,527 $ 770,591 $ 704,564
Investments
securities 33,061 32,378 26,385
Total loans, net
of unearned
income 660,411 643,400 597,846
Allowance for
Credit Losses 10,252 9,363 8,159
Total deposits 709,214 682,714 626,165
Borrowings 26,819 26,795 26,721
Shareholders'
equity 64,759 53,119 47,667
Loan to Deposit
ratio 93.12% 94.24% 95.48%
Wholesale Deposits
to Total
Deposits 6.28% 5.18% 8.90%
AVERAGE BALANCE
SHEET DATA
Average assets $ 781,191 $ 772,629 $ 697,617
Average total
loans, net of
unearned income 651,674 637,585 589,037
Average total
deposits 687,249 687,447 618,844
Average
shareholders'
equity 61,574 52,669 47,256
ASSET QUALITY
RATIOS
Net (charge-offs)
recoveries $ - $ 197 $ -
Net (charge-offs)
recoveries to
average loans 0.00% 0.03% 0.00%
Non-performing
loans as a % of
loans 0.04% 0.17% 0.22%
Non-performing
assets as a % of
assets 0.03% 0.15% 5.02%
Allowance for loan
losses as a % of
total loans 1.55% 1.46% 1.36%
Non-performing
assets as a % of
allowance for
loan losses 2.49% 12.31% 29.60%
FINANCIAL
RATIOS\STATISTICS
Annualized return
on average
equity 9.31% 12.82% 11.68%
Annualized return
on average
assets 0.74% 0.87% 0.79%
Net interest
margin 4.48% 4.22% 4.12%
Efficiency ratio 67.25% 65.65% 67.59%
CAPITAL RATIOS
Tier 1 leverage
ratio -- Bank 11.72% 10.24% 10.57%
Common equity tier
1 ratio -- Bank 11.60% 10.36% 10.47%
Tier 1 risk-based
capital ratio --
Bank 11.60% 10.36% 10.47%
Total risk-based
capital ratio
--Bank 12.85% 11..61% 11.65%
TCE/TA * 8.04% 6.89% 6.77% Tangible Book Value per Share $ 15.47 $ 14.68 $ 13.49 *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
(END) Dow Jones Newswires
April 24, 2026 08:30 ET (12:30 GMT)