Endeavor Bancorp Reports Record Net Income of $2.1 Million for the Third Quarter of 2026; Tangible Book Value Increases to $15.46 and NIM Remains Strong at 4.41%
Third-quarter net charge-offs totaled $826,000, compared with net loan recoveries in both comparison quarters.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Endeavor Bancorp (EDVR) reported record third-quarter 2026 net income of $2.12 million, with diluted earnings rising from both comparison periods.
Diluted earnings were $0.44 per share, versus $0.40 in the second quarter and $0.36 a year earlier. Net interest income reached $9.055 million, while net interest margin held at 4.41%, versus 4.09% a year earlier. The efficiency ratio improved to 62.10% from 63.19% sequentially.
At September 30, loans totaled $644.921 million, down from $664.829 million in June, while deposits rose to $731.196 million from $724.988 million. Non-performing loans fell to 0.36% of loans from 0.45%, but exceeded 0.21% a year earlier. Tangible book value increased to $15.46 per share from $15.11 in June and $14.21 a year earlier. All financial results are unaudited.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRecord Q3 2026 net income of $2.12 million exceeded $1.89 million sequentially and $1.73 million a year earlier.
- Moderate pointCore pretax earnings, excluding taxes and loan-loss provisions, reached $3.544 million, versus $3.304 million sequentially and $2.857 million a year earlier.
- Moderate pointQ3 net interest income of $9.055 million exceeded $8.583 million sequentially and $7.682 million a year earlier.
- Moderate pointQ3 net interest margin of 4.41% held steady sequentially and exceeded 4.09% a year earlier.
- Moderate pointQ3 efficiency ratio improved to 62.10%, from 63.19% sequentially and 64.65% a year earlier.
- Moderate pointTotal deposits reached $731.196 million at September 30, versus $724.988 million in June and $678.300 million a year earlier.
- Moderate pointTotal assets reached $834.962 million at September 30, versus $823.048 million in June and $760.213 million a year earlier.
- Moderate pointShareholders’ equity reached $68.187 million, versus $66.649 million in June and $50.979 million a year earlier.
- Moderate pointTangible book value rose to $15.46 per share, from $15.11 in June and $14.21 a year earlier.
18 minor points
- Minor pointDiluted EPS of $0.44 rose from $0.40 sequentially and $0.36 in Q3 2025.
- Minor pointQ3 interest income of $12.942 million exceeded $12.417 million sequentially and $12.169 million a year earlier.
- Minor pointQ3 cost of funds fell to 2.04%, from 2.12% sequentially and 2.53% a year earlier.
- Minor pointQ3 annualized return on average assets reached 1.01%, versus 0.95% sequentially and 0.90% a year earlier.
- Minor pointQ3 annualized return on average equity was 12.28%, above 11.40% sequentially but below 13.58% a year earlier.
- Minor pointCore relationship deposits grew approximately $18.4 million, or 2.6%, during Q3, excluding wholesale deposits.
- Minor pointNoninterest-bearing deposits reached $272 million, or 37.2% of deposits, versus $265.0 million in June.
- Minor pointWholesale deposits declined to $31.8 million at September 30, from $44.7 million in June and $44.6 million a year earlier.
- Minor pointLoan-to-deposit ratio fell to 88.20%, from 91.70% in June and 93.26% a year earlier.
- Minor pointInvestment securities rose to $36.406 million, from $35.103 million in June and $31.557 million a year earlier.
- Minor pointNon-performing loans fell to 0.36% of loans, from 0.45% in June, but exceeded 0.21% a year earlier.
- Minor pointNon-performing assets fell to 0.28% of assets, from 0.37% in June, but exceeded 0.17% a year earlier.
- Minor pointQ3 credit-loss provision fell to $525,000, from $651,000 sequentially, but exceeded $396,000 a year earlier.
- Minor pointCredit-loss allowance coverage rose to 1.65% of loans, from 1.64% in June and 1.41% a year earlier.
- Minor pointBank Tier 1 risk-based capital ratio rose to 12.08%, from 11.76% in June and 10.32% a year earlier.
- Minor pointBank total risk-based capital ratio rose to 13.33%, from 13.02% in June and 11.54% a year earlier.
- Minor pointTangible common equity to tangible assets rose to 8.17%, from 8.10% in June and 6.71% a year earlier.
- Minor pointOrange County expansion is being led by newly added team leader and relationship manager Carlos Donis.
Negative
- Moderate pointTotal loans fell to $644.921 million, from $664.829 million in June, but exceeded $632.573 million a year earlier.
- Moderate pointQ3 net charge-offs totaled $826,000, versus recoveries of $52,000 sequentially and $8,000 a year earlier. 1.1% of market cap
- Moderate pointQ3 non-interest expense rose to $5.809 million, from $5.635 million sequentially and $5.225 million a year earlier.
- Minor pointQ3 loan payoffs of $47.6 million exceeded new loan production of $28.5 million.
- Minor pointQ3 non-interest income fell to $298,000, from $357,000 sequentially and $401,000 a year earlier.
4 minor points
- Minor pointQ3 earning-asset yield fell to 6.30%, from 6.37% sequentially and 6.47% a year earlier.
- Minor pointQ3 interest expense rose to $3.887 million, from $3.834 million sequentially, but remained below $4.487 million a year earlier.
- Minor pointCredit-loss allowance balance fell to $10.646 million, from $10.919 million in June, but exceeded $8.912 million a year earlier.
- Minor pointBank Tier 1 leverage ratio fell to 11.54%, from 11.82% in June, but exceeded 10.15% a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SAN DIEGO, Oct. 26, 2026 (GLOBE NEWSWIRE) -- Endeavor Bancorp (OTCQX: EDVR) (the “Company” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of
“Endeavor delivered another strong quarter, with record net income, continued improvement in operating efficiency and strong net interest income,” said Julie Glance, CFO. “Deposit growth and a lower loan-to-deposit ratio strengthened our liquidity and funding position, while non-performing loans declined from the prior quarter and capital levels remained strong. These results position us well as we continue investing in our clients, team and long-term growth.”
Results for the third quarter of 2026 included a
Income Statement
Higher interest income and disciplined funding costs drove improved earnings for the third quarter of 2026. Total interest income on loans and bank deposits and investments was
The Company’s net interest margin was
“Our net interest margin remained stable in the third quarter and expanded 32 basis points year-over-year,” said Dan Yates, CEO. “Disciplined balance sheet management supported a
Non-interest income was
Non-interest expense was
The Company’s annualized return on average equity for the third quarter of 2026 was
Balance Sheet
Total assets increased by
Total loans outstanding decreased
“Many of the loans that paid off were seasoned, lower yielding credits, creating an opportunity to redeploy capital into new lending at current market rates, a shift we expect to benefit net interest margin over time. Our deposit based also continued to expand, providing a reliable source of funding as loan demand increases,” said Steve Sefton, President.
“Our record quarterly earnings demonstrate the continued strength of Endeavor’s business model and our team’s focus on disciplined execution. While loan payoffs exceeded new production during the quarter, our growing deposit base, strong liquidity and capital position provide a solid foundation to support future growth. We remain focused on expanding relationships with Southern California businesses through our differentiated consultative banking approach,” said Yates.
Endeavor recently added Carlos Donis, SVP Orange County Team Leader & Relationship Manager, to lead the Bank’s expansion into Orange County.
Total non-performing loans decreased to
The provision for credit losses was
Total deposits increased by
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 Riverside. 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, 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 | ||||||||||||
September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
(Consolidated) | (Consolidated) | (Consolidated) | ||||||||||
| SUMMARY OF OPERATIONS | ||||||||||||
| Interest income | $ | 12,942 | $ | 12,417 | $ | 12,169 | ||||||
| Interest expense | 3,887 | 3,834 | 4,487 | |||||||||
| Net interest income | 9,055 | 8,583 | 7,682 | |||||||||
| Provision for credit losses | 525 | 651 | 396 | |||||||||
| Net interest income after loss provision | 8,530 | 7,932 | 7,286 | |||||||||
| Non-interest income | 298 | 357 | 401 | |||||||||
| Non-interest expense | 5,809 | 5,635 | 5,225 | |||||||||
| Income before tax | 3,019 | 2,653 | 2,461 | |||||||||
| Federal income tax expense | 572 | 488 | 467 | |||||||||
| State income tax expense | 331 | 280 | 269 | |||||||||
| Net income | $ | 2,116 | $ | 1,885 | $ | 1,725 | ||||||
| Core pretax earnings* | $ | 3,544 | $ | 3,304 | $ | 2,857 | ||||||
| *excludes taxes and provision for loan losses | ||||||||||||
| PER COMMON SHARE DATA | ||||||||||||
| Number of shares outstanding (000s)* | 4,411 | 4,410 | 3,587 | |||||||||
| *Adjusted for May 2026 Stock Dividend | ||||||||||||
| Earnings per share, basic | $ | 0.48 | $ | 0.43 | $ | 0.42 | ||||||
| Earnings per share, diluted | $ | 0.44 | $ | 0.40 | $ | 0.36 | ||||||
| Book Value per share | $ | 15.46 | $ | 15.11 | $ | 14.21 | ||||||
| BALANCE SHEET DATA | ||||||||||||
| Assets | $ | 834,962 | $ | 823,048 | $ | 760,213 | ||||||
| Investments securities | 36,406 | 35,103 | 31,557 | |||||||||
| Total loans, net of unearned income | 644,921 | 664,829 | 632,573 | |||||||||
| Allowance for Credit Losses | 10,646 | 10,919 | 8,912 | |||||||||
| Total deposits | 731,196 | 724,988 | 678,300 | |||||||||
| Borrowings | 26,868 | 26,844 | 26,770 | |||||||||
| Shareholders’ equity | 68,187 | 66,649 | 50,979 | |||||||||
| Loan to Deposit ratio | 88.20 | % | 91.70 | % | 93.26 | % | ||||||
| Wholesale Deposits to Total Deposits | 4.20 | % | 6.17 | % | 6.57 | % | ||||||
| AVERAGE BALANCE SHEET DATA | ||||||||||||
| Average assets | $ | 827,009 | $ | 794,589 | $ | 758,125 | ||||||
| Average total loans, net of unearned income | 648,874 | 659,737 | 620,851 | |||||||||
| Average total deposits | 726,146 | 696,483 | 676,209 | |||||||||
| Average shareholders' equity | 68,341 | 66,358 | 50,420 | |||||||||
| ASSET QUALITY RATIOS | ||||||||||||
| Net (charge-offs) recoveries | $ | 826 | $ | (52 | ) | $ | (8 | ) | ||||
| Net (charge-offs) recoveries to average loans | 0.13 | % | -0.01 | % | -0.01 | % | ||||||
| Non-performing loans as a % of loans | 0.36 | % | 0.45 | % | 0.21 | % | ||||||
| Non-performing assets as a % of assets | 0.28 | % | 0.37 | % | 0.17 | % | ||||||
| Allowance for loan losses as a % of total loans | 1.65 | % | 1.64 | % | 1.41 | % | ||||||
| Non-performing assets as a % of allowance for loan losses | 22.07 | % | 27.58 | % | 14.87 | % | ||||||
| FINANCIAL RATIOS\STATISTICS | ||||||||||||
| Annualized return on average equity | 12.28 | % | 11.40 | % | 13.58 | % | ||||||
| Annualized return on average assets | 1.01 | % | 0.95 | % | 0.90 | % | ||||||
| Net interest margin | 4.41 | % | 4.41 | % | 4.09 | % | ||||||
| Efficiency ratio | 62.10 | % | 63.19 | % | 64.65 | % | ||||||
| CAPITAL RATIOS | ||||||||||||
| Tier 1 leverage ratio -- Bank | 11.54 | % | 11.82 | % | 10.15 | % | ||||||
| Common equity tier 1 ratio -- Bank | 12.08 | % | 11.76 | % | 10.32 | % | ||||||
| Tier 1 risk-based capital ratio -- Bank | 12.08 | % | 11.76 | % | 10.32 | % | ||||||
| Total risk-based capital ratio -- Bank | 13.33 | % | 13.02 | % | 11.54 | % | ||||||
| TCE/TA * | 8.17 | % | 8.10 | % | 6.71 | % | ||||||
| Tangible Book Value per Share | $ | 15.46 | $ | 15.11 | $ | 14.21 | ||||||
| *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
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Endeavor Bancorp’s third-quarter 2026 earnings?
Endeavor Bancorp reported $2.12 million in net income and $0.44 per diluted share for Q3 2026. Net income compared with $1.89 million in Q2 2026 and $1.73 million in Q3 2025; diluted earnings compared with $0.40 and $0.36, respectively. Results are unaudited.
What was Endeavor Bancorp’s tangible book value at September 30, 2026?
Endeavor Bancorp’s tangible book value was $15.46 per share at September 30, 2026. That compared with $15.11 at June 30, 2026, and $14.21 at September 30, 2025.
Why did Endeavor Bancorp’s loan balance decline in the third quarter of 2026?
Loan payoffs of $47.6 million exceeded new loan production of $28.5 million as clients completed, sold or refinanced projects. Endeavor expects replacing seasoned, lower-yielding credits with new lending at current market rates to benefit net interest margin over time.
How much liquidity did Endeavor Bancorp have at September 30, 2026?
Endeavor Bancorp held $147.8 million in cash, representing 17.7% of total assets, at September 30, 2026. Available borrowing capacity through the Federal Home Loan Bank and Federal Reserve discount window totaled $231.2 million.