Endeavor Bancorp Reports Record Net Income of $1.7 Million, for the Third Quarter of 2025; Results Highlighted by Steady Loan and Deposit Growth

SAN DIEGO, Oct. 28, 2025 (GLOBE NEWSWIRE) — Endeavor Bancorp (OTCQX: EDVR) (the “Company” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of $1.73 million, or $0.46 per diluted share, for the third quarter of 2025, compared to $1.07 million, or $0.28 per diluted share, for the second quarter of 2025, and $924,000, or $0.24 per diluted share, for the third quarter of 2024. All financial results are unaudited.

“Continued execution and focused strategy drove stronger profitability this quarter. The lower provision for loan loss expense in the third quarter reflects realized reductions in classified loans-driven by payoffs, upgrades, and a continued migration toward higher-quality assets within the loan portfolio,” said Julie Glance, CFO. “We achieved balanced loan and deposit growth while preserving margin stability, even as the prospect of interest rate cuts began to influence the market late in the quarter. The benefits of our prior investments in people and technology are now clearly reflected in improved efficiency, stronger client engagement, and enhanced operating performance. With a solid foundation and a lower rate environment on the horizon, we are well positioned to build on this success and deliver continued earnings growth and long-term shareholder value.”

Results for the third quarter of 2025 included a $396,000 provision for credit losses, reflecting continued prudent credit risk management. This compared to a $746,000 provision for credit losses in the second quarter of 2025, and a $609,000 provision for credit losses in the third quarter of 2024. Core pre-tax earnings, excluding taxes and loan loss provisions, was $2.86 million, an increase of $578,000, or 25.4%, compared to $2.28 million in the preceding quarter, and up from $1.93 million, a 47.9% increase, compared to the third quarter of 2024.

Income Statement
Earnings strength in the third quarter was supported by continued loan growth and improved earning asset yields. Total interest income on loans and bank deposits and investments was $12.2 million, an increase of $546,000 compared to the preceding quarter, while total interest expenses increased $253,000 during the same timeframe. Net interest income was $7.7 million in the third quarter of 2025, which was an increase of $293,000, or 4.0% compared to the preceding quarter and a 29.8% increase compared to the third quarter of 2024.

“Our net interest margin improved compared to the same period last year, but contracted from the second quarter of 2025,” said Dan Yates, CEO. “The decline primarily reflects the normalization of loan fees, as the prior quarter benefited from a $91,000 prepayment penalty that elevated results. Additionally, the decrease in interest income on deposits with banks was driven by the Federal Reserve’s 25-basis-point rate cut in September 2025, which impacted short-term yields. Overall, we continue to manage our balance sheet with discipline and remain well positioned in a changing rate environment.”

The Company’s net interest margin contracted 12 basis points to 4.09% in the third quarter of 2025 compared to 4.21% in the second quarter of 2025 and increased 24 basis points compared to 3.85% in the third quarter of 2024. The yield on total earning assets during the third quarter of 2025 was 6.48%, compared to 6.62% in the preceding quarter, and 6.61% in the third quarter of 2024. The decrease during the third quarter of 2025 was primarily due to the recent Fed Reserve rate cut. The cost of funds decreased to 2.53% in the third quarter, compared to 2.57% in the second quarter of 2025, and decreased compared to 2.98% in the third quarter of 2024.

Non-Interest income was $401,000 in the third quarter of 2025, an increase of $126,000 or 45.6% compared to the second quarter of 2025, and an increase of $184,000, or 84.8% compared to $217,000 in the third quarter of 2024. The increase compared to the prior quarter was primarily attributed to loan fee income generated through a loan hedge.

Non-Interest expense was $5.2 million in the third quarter of 2025, a decrease of $160,000 compared to the second quarter of 2025, and an increase of $1.0 million compared to the third quarter of 2024. The prior quarter included $263,000 in annual board compensation. The higher expenses year-over-year were due to strategic investment in staff. “During 2024, we made deliberate investments in key hires, expanding our workforce by more than 30%. Those hires are now fully contributing, driving meaningful revenue growth that has more than offset the year-over-year increase in expenses. Our efficiency ratio improved to 64.6% in the third quarter of 2025 from 69.3% a year earlier, underscoring the productivity and scalability of our platform. With limited hiring planned in the near-term, our focus remains on leveraging the strength of our existing team to sustain earnings momentum,” said Yates.

The Company’s annualized return on average equity for the third quarter of 2025 was 13.58%, compared to 8.75% in the second quarter of 2025 and 8.17% in the third quarter of 2024. The annualized return on average assets for the third quarter of 2025 was 0.90% compared to 0.60% in the second quarter of 2025 and 0.59% in the third quarter of 2024.

Balance Sheet
Total assets increased by $13.3 million, or 1.8%, during the third quarter of 2025 to $760.2 million at September 30, 2025, compared to $746.9 million at June 30, 2025, and increased $104.9 million, or 16.0%, compared to September 30, 2024. Balance sheet liquidity remains strong with cash balances of $91.0 million, which represents 12.0% of total assets as of September 30, 2025. The Company’s investment securities increased $3.4 million during the third quarter of 2025 to $31.6 million as of September 30, 2025, representing 4.2% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $223.0 million as of quarter end.

“Our approach this quarter was marked by disciplined execution as we tempered loan growth to align with funding, ensuring a balanced and sustainable pace of expansion,” said Steve Sefton, President. “We continued to make progress in both our deposit-gathering and lending efforts, reflecting the strength of our client relationships and the effectiveness of our strategy. Our teams remain focused on delivering tailored financial solutions to our business clients, supported by disciplined underwriting and sound risk management. As we deepen these relationships, we are well positioned to drive sustainable growth and create long-term value.”

Total loans outstanding increased $6.7 million, or 1.1%, during the third quarter of 2025 to $632.6 million at September 30, 2025, compared to $625.9 million three months earlier, and increased $94.1 million, or 17.5%, when compared to $538.4 million a year earlier. Total non-performing loans decreased to 0.21% of the total loan portfolio as of September 30, 2025, compared to 0.32% as of June 30, 2025. The Company had no net charge-offs during the third quarter of 2025, compared to $421,000 in net charge-offs during the preceding quarter and no net charge offs during the year ago quarter.

Total deposits increased $10.9 million, or 1.6%, during the quarter to $678.3 million at September 30, 2025, compared to $667.4 million three months earlier, and increased $100.2 million, up 17.5% when compared to $577.8 million a year earlier. The loan to deposit ratio was 93.3% at September 30, 2025, compared to 93.8% at June 30, 2025, and 93.2% as of September 30, 2024. “Our balance sheet strategy is focused on maintaining a loan-to-deposit ratio near 95%, ensuring we achieve an appropriate balance between healthy lending activity and prudent liquidity management,” added Sefton.

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 $99.1 million at September 30, 2025, and $133.3 million as of June 30, 2025. To support strong loan growth, the Company is utilizing a conservative amount of wholesale deposits. As of September 30, 2025, total wholesale deposits, excluding the reciprocal deposits, was $44.6 million, representing 6.6% of total deposits compared to $56.8 million, or 8.5% of total deposits as of June 30, 2025.

Shareholders’ equity increased to $51.0 million at September 30, 2025, compared to $48.9 million at June 30, 2025, and $45.3 million at September 30, 2024. Tangible book value per share increased to $14.21 at September 30, 2025, compared to $13.64 three months earlier and $12.97 a year earlier.

Capital 
The Bank’s Tier 1 leverage ratio was 10.15% as of September 30, 2025, compared to 10.60% at June 30, 2025. The Tier 1 risk-based capital ratio was 10.32% as of September 30, 2025, compared to 10.20% on June 30, 2025, and the Total risk-based capital ratio was 11.54% compared to 11.37% three months earlier, all of which were well above regulatory minimums.

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, as well as a branch office in La Mesa. 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

Endeavor Bancorp Contact Information:
(858) 230.5185
Dan Yates, CEO
dyates@bankendeavor.com

(858) 230.4243
Steve Sefton, President
ssefton@bankendeavor.com