Endeavor Bancorp Reports Net Income of $1.4 Million for the First Quarter of 2026; Highlighted by Strong Loan and Deposit Growth and NIM Expansion
Rhea-AI Summary
Endeavor Bancorp (OTCQX: EDVR) reported Q1 2026 net income of $1.42M ($0.31 diluted) and core pre-tax earnings of $2.91M. Key drivers included a 26 bp QoQ NIM expansion to 4.48%, loan growth to $660.4M, deposits of $709.2M, and completion of a $10.0M private placement.
Provision for credit losses rose to $909k and non-interest expense increased; capital ratios and liquidity remained strong with Tier 1 leverage at 11.72% and cash of $106.9M.
Positive
- Net interest margin expanded by 26 bps QoQ to 4.48%
- Net interest income of $8.48M (+4.9% QoQ, +20.9% YoY)
- Total loans grew to $660.4M (+2.6% QoQ, +10.5% YoY)
- Total deposits increased to $709.2M (+3.9% QoQ, +13.3% YoY)
- Completed $10.0M private placement (666,665 shares at $15.00)
- Tier 1 leverage ratio improved to 11.72%
Negative
- Net income declined 16.8% QoQ to $1.42M from $1.70M
- Provision for credit losses increased to $909k (up from $664k QoQ)
- Non-interest expense rose to $5.99M, up materially year-over-year
- Annualized return on average equity fell to 9.31% from 12.82% QoQ
News Market Reaction – EDVR
In the Apr 24 session, EDVR declined 0.21%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
“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
“A highlight of the first quarter was the completion of our
“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
“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
Non-Interest income was
Non-Interest expense was
The Company’s annualized return on average equity for the first quarter of 2026 was
Balance Sheet
Total assets increased by
“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
Total deposits increased
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
Shareholders’ equity increased to
Capital
The Bank’s Tier 1 leverage ratio was
On January 30, 2026, the Company announced that it has completed a private placement of
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
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 | |||||||||||
| 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
