Endeavor Bancorp Reports Pretax Income of $1.3 million for the Third Quarter of 2024; Results Highlighted by Record Loan Growth and Net Interest Margin Expansion
Rhea-AI Summary
Endeavor Bancorp (OTCQX: EDVR) reported net income of $924,000, or $0.22 per diluted share, for the third quarter of 2024. Pretax net income was $1.3 million, with a $609,000 provision for credit losses. Key highlights include:
- Net interest income increased 10.4% to $5.9 million compared to the preceding quarter
- Net interest margin expanded 15 basis points to 3.85%
- Total loans outstanding increased 11.4% to $538.4 million
- Total deposits increased to $577.8 million, up 17.3% year-over-year
- Tangible book value per share rose to $12.97
The company experienced record quarterly loan production and strong net interest income generation. Despite challenges from the high-interest rate environment, Endeavor Bancorp maintains a strong balance sheet and ample capital for continued growth.
Positive
- Net income increased to $924,000 from $760,000 in the previous quarter
- Net interest income grew 10.4% quarter-over-quarter to $5.9 million
- Net interest margin expanded by 15 basis points to 3.85%
- Record quarterly loan production with total loans increasing 11.4% to $538.4 million
- Total deposits increased by $59.6 million to $577.8 million
- Tangible book value per share increased to $12.97 from $12.55 in the previous quarter
Negative
- Provision for credit losses increased to $609,000 from $451,000 in the previous quarter
- Interest expense on borrowings remained high at $493,000
- Non-performing loans increased to 1.2% of the total loan portfolio from 0.06% in the prior quarter
- Non-interest income decreased to $217,000 from $390,000 in the previous quarter
News Market Reaction 1 Alert
On the day this news was published, EDVR declined 0.86%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SAN DIEGO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Endeavor Bancorp (OTCQX: EDVR) (the “Company,” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of
Results for the third quarter of 2024 included a
“Our third quarter operating results were highlighted by strong net interest income generation and record quarterly loan production,” stated Julie Glance, CFO. “Our earning assets yield also increased, up 28 basis points during the third quarter, which is contributing to net interest margin expansion. While the high-interest rate environment continues to be a challenge, we believe we are well positioned with a strong balance sheet and ample capital to continue to grow.”
Income Statement
Strong core earnings were driven by loan growth and higher rates on earning assets. Total interest income on loans and bank deposits and investments was
“We are encouraged by our net interest margin improvement. Third quarter net interest margin expanded 15 basis points compared to the prior quarter, boosted by robust loan growth and higher interest earning asset yields, combined with stabilizing funding costs,” said Dan Yates, CEO.
Net interest margin (NIM) increased 15 basis points to
Non-Interest income decreased to
The Company’s annualized return on average equity for the third quarter of 2024 was
Balance Sheet
Total assets increased
“The robust loan growth during the quarter was the highest in our history, excluding Paycheck Protection Program (PPP) loans in 2020, as our lenders are doing an excellent job at finding high quality lending opportunities in our market where many banks are pulling back,” said Steve Sefton, President. “We continue to have minimal office exposure with very few office building loans in the portfolio, and
Total loans outstanding increased
Total deposits increased
“Earlier this year, we expanded our team and moved into the greater Los Angeles Metro and Inland Empire markets. While this expansion north is still in its early stages, we are already seeing positive momentum,” added Sefton.
As a result of its participation in a reciprocal deposit placement network, 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 was
Capital
The Bank’s Tier 1 leverage ratio was
On March 5, the Company completed the issuance of
Stock Dividend
On May 20, 2024, the Company distributed a
Recent Events
Board member Jillian Murrish has announced her resignation due to personal reasons from the BanCorp and Bank board of directors, effective October 18, 2024.
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 and a branch office in La Mesa. 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.
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, 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 | ||||||||||||||
| Three Months Ended | ||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||
| (Consolidated) | (Consolidated) | (Consolidated) | ||||||||||||
| SUMMARY OF OPERATIONS | ||||||||||||||
| Interest income | $ | 10,186 | $ | 9,203 | $ | 8,200 | ||||||||
| Interest expense | 4,266 | 3,840 | 3,032 | |||||||||||
| Net interest income | 5,920 | 5,363 | 5,168 | |||||||||||
| Provision for credit losses | 609 | 451 | 301 | |||||||||||
| Net interest income after loss provision | 5,311 | 4,912 | 4,867 | |||||||||||
| Non-interest income | 217 | 390 | 181 | |||||||||||
| Non-interest expense | 4,205 | 4,205 | 3,312 | |||||||||||
| Income before tax | 1,323 | 1,097 | 1,736 | |||||||||||
| Federal income tax expense | 255 | 215 | 328 | |||||||||||
| State income tax expense | 143 | 121 | 190 | |||||||||||
| Net income | $ | 924 | $ | 760 | $ | 1,218 | ||||||||
| Core pretax earnings* | $ | 1,932 | $ | 1,548 | $ | 2,037 | ||||||||
| *excludes taxes and provision for loan losses | ||||||||||||||
| PER COMMON SHARE DATA | ||||||||||||||
| Number of shares outstanding (000s) | 3,494 | 3,493 | 3,394 | |||||||||||
| Earnings per share, basic | $ | 0.26 | $ | 0.22 | $ | 0.36 | ||||||||
| Earnings per share, diluted | $ | 0.22 | $ | 0.18 | $ | 0.29 | ||||||||
| Book Value per share | $ | 12.97 | $ | 12.61 | 12.24 | |||||||||
| BALANCE SHEET DATA | ||||||||||||||
| Assets | $ | 655,305 | $ | 593,803 | $ | 553,889 | ||||||||
| Investments securities | 20,107 | 18,204 | 7,770 | |||||||||||
| Total loans, net of unearned income | 538,439 | 483,411 | 416,746 | |||||||||||
| Total deposits | 577,781 | 518,230 | 492,726 | |||||||||||
| Borrowings | 26,672 | 26,648 | 16,118 | |||||||||||
| Shareholders’ equity | 45,308 | 44,051 | 41,535 | |||||||||||
| Loan to Deposit ratio | 93.19 | % | 93.28 | % | 84.58 | % | ||||||||
| Wholesale Deposits to Total Deposits | 7.04 | % | 1.09 | % | 0.86 | % | ||||||||
| AVERAGE BALANCE SHEET DATA | ||||||||||||||
| Average assets | $ | 619,122 | $ | 590,625 | $ | 550,500 | ||||||||
| Average total loans, net of unearned income | 506,469 | 461,476 | 417,451 | |||||||||||
| Average total deposits | 541,858 | 515,457 | 488,822 | |||||||||||
| Average shareholders' equity | 44,990 | 43,825 | 41,266 | |||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||
| Net (charge-offs) recoveries | $ | - | $ | - | $ | - | ||||||||
| Net (charge-offs) recoveries to average loans | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
| Non-performing loans as a % of loans | 1.22 | % | 0.06 | % | 0.11 | % | ||||||||
| Non-performing assets as a % of assets | 1.00 | % | 0.05 | % | 0.08 | % | ||||||||
| Allowance for loan losses as a % of total loans | 1.39 | % | 1.42 | % | 1.59 | % | ||||||||
| Allowance for loan losses as a % of non-performing loans | 113.61 | % | 22.94 | % | 6.94 | % | ||||||||
| FINANCIAL RATIOS\STATISTICS | ||||||||||||||
| Annualized return on average equity | 8.17 | % | 6.96 | % | 11.71 | % | ||||||||
| Annualized return on average assets | 0.59 | % | 0.52 | % | 0.88 | % | ||||||||
| Net interest margin | 3.85 | % | 3.70 | % | 3.77 | % | ||||||||
| Efficiency ratio | 69.26 | % | 75.75 | % | 61.91 | % | ||||||||
| CAPITAL RATIOS | ||||||||||||||
| Tier 1 leverage ratio -- Bank | 11.38 | % | 11.70 | % | 10.20 | % | ||||||||
| Common equity tier 1 ratio -- Bank | 10.95 | % | 11.87 | % | 11.26 | % | ||||||||
| Tier 1 risk-based capital ratio -- Bank | 10.95 | % | 11.87 | % | 11.26 | % | ||||||||
| Total risk-based capital ratio --Bank | 12.13 | % | 13.07 | % | 12.51 | % | ||||||||
| TCE/TA * | 6.91 | % | 7.42 | % | 7.50 | % | ||||||||
| Tangible Book Value per Share | $ | 12.97 | $ | 12.55 | 12.16 | % | ||||||||
| *Non-GAAP financial measure. | ||||||||||||||
| Unaudited financials 2024 | ||||||||||||||
Endeavor Bancorp Contact Information:
(858) 230.5185
Dan Yates, CEO
dyates@bankendeavor.com
(858) 230.4243
Steve Sefton, President
ssefton@bankendeavor.com
FAQ
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