Endeavor Bancorp Reports Record Net Income of $1.9 Million for the Second Quarter of 2026; NIM Remains Strong at 4.41%
Rhea-AI Summary
Endeavor Bancorp (OTCQX: EDVR) reported record Q2 2026 net income of approximately $1.9 million, or $0.40 per diluted share, up from $1.42 million in Q1 2026 and $1.07 million in Q2 2025. Net interest income rose to $8.6 million, with a net interest margin of 4.41%, down 7 basis points sequentially but up 20 basis points year-over-year.
According to Endeavor Bancorp, total assets reached $823.0 million and loans grew to $664.8 million, while deposits increased to $725.0 million. Return on average equity improved to 11.40% and return on average assets to 0.95%. Nonperforming loans increased to 0.45% of total loans, and the allowance for credit losses rose to 1.64% of loans. Capital ratios, including a Tier 1 leverage ratio of 11.82% and total risk-based capital ratio of 13.02%, remained well above regulatory minimums, and tangible book value per share increased to $15.11.
Positive
- Record Q2 2026 net income of $1.89 million versus $1.42 million in Q1 2026
- Diluted EPS increased to $0.40 from $0.30 in Q2 2025
- Net interest income grew to $8.58 million, up from $7.39 million in Q2 2025
- Annualized return on average equity improved to 11.40% from 8.75% a year earlier
- Total deposits rose to $725.0 million, up $15.8 million quarter-over-quarter
- Efficiency ratio improved to 63.19% from 67.25% in Q1 2026 and 70.27% in Q2 2025
- Tangible book value per share increased to $15.11 from $13.64 a year earlier
Negative
- Net interest margin declined to 4.41% from 4.48% in Q1 2026
- Non-interest income fell to $357,000, down 14.8% from Q1 2026
- Non-performing loans rose to 0.45% of total loans from 0.17% in Q1 2026
- Provision for credit losses was $651,000 in Q2 2026, following $909,000 in Q1 2026
News Market Reaction – EDVR
In the Jul 28 session, EDVR gained 0.68%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
“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
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
“Our net interest margin narrowed slightly to
The Company’s net interest margin was
Non-Interest income was
Non-interest expense was
The Company’s annualized return on average equity for the second quarter of 2026 was
Balance Sheet
Total assets increased by
Total loans outstanding increased
“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
Total deposits increased
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
Shareholders’ equity increased to
Capital
The Bank’s Tier 1 leverage ratio was
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 | - | 0.00 | % | 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 RATIOS\STATISTICS | |||||||||||
| 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
