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 $2.12 million, or $0.44 per diluted share, for the third quarter of 2026, compared to $1.89 million, or $0.40 per diluted share, for the second quarter of 2026, and $1.73 million, or $0.36 per diluted share, for the third quarter of 2025. All financial results are unaudited.

“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 $525,000 provision for credit losses, reflecting continued prudent credit risk management. This compared to a $651,000 provision for credit losses in the second quarter of 2026, and a $396,000 provision for credit losses in the third quarter of 2025. Core pre-tax earnings, excluding taxes and loan loss provisions, were $3.54 million in the third quarter of 2026, an increase of $240,000, or 7.3%, compared to $3.30 million in the preceding quarter, and up $687,000, or 24.0%, from $2.86 million in the third quarter of 2025.

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 $12.9 million, an increase of $525,000, or 4.2%, compared to the $12.4 million earned in the preceding quarter, while total interest expenses increased modestly by $53,000 during the same timeframe. Net interest income was $9.1 million in the third quarter of 2026, which was a 5.5% increase compared to the preceding quarter and a 17.9% increase compared to the third quarter of 2025.

The Company’s net interest margin was 4.41% in the third quarter of 2026, unchanged from the prior quarter and a 32 basis point increase compared to 4.09% in the third quarter of 2025. The yield on total earning assets during the third quarter of 2026 was 6.30%, compared to 6.37% in the preceding quarter, and 6.47% in the third quarter of 2025. The cost of funds decreased to 2.04% in the third quarter, compared to 2.12% in the second quarter of 2026, and decreased compared to 2.53% in the third quarter of 2025.

“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 4.41% net interest margin, reflecting our continued emphasis on long-term stability.”

Non-interest income was $298,000 in the third quarter of 2026, a decrease of $59,000 or 16.5% compared to the second quarter of 2026, and a decrease of $103,000, or 26.0% compared to the third quarter of 2025.

Non-interest expense was $5.8 million in the third quarter of 2026, an increase of $174,000 compared to the second quarter of 2026, and an increase of $584,000 compared to the third quarter of 2025. Operating efficiency continued to improve, with the efficiency ratio declining to 62.1%, compared with 63.2% in the second quarter and 64.7% in the third quarter of 2025.

The Company’s annualized return on average equity for the third quarter of 2026 was 12.28% an increase compared to the second quarter of 2026 at 11.40% and decreased compared to 13.58% in the third quarter of 2025. The annualized return on average assets for the third quarter of 2026 was 1.01% compared to the preceding quarter at 0.95%, and increased compared to 0.90% for the third quarter of 2025.

Balance Sheet
Total assets increased by $11.9 million, or 1.5%, during the third quarter of 2026 to $835.0 million at September 30, 2026, compared to $823.0 million at June 30, 2026, and increased $74.7 million, or 9.8%, compared to September 30, 2025. Balance sheet liquidity remains strong with cash balances of $147.8 million, which represents 17.7% of total assets as of September 30, 2026. The Company’s investment securities increased $1.3 million during the third quarter of 2026 to $36.4 million as of September 30, 2026, representing 4.4% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $231.2 million as of September 30, 2026.

Total loans outstanding decreased $19.9 million, or 3.0%, during the quarter to $644.9 million at September 30, 2026, compared to $664.8 million three months earlier, and increased $12.3 million, or 1.9% when compared to $632.6 million a year earlier. Payoffs of $47.6 million, as clients completed, sold or refinanced their projects, exceeded the new loan production of $28.5 million, which was led by our core C&I and CRE lending.

“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 0.36% of the total loans as of September 30, 2026, compared to 0.45% as of June 30, 2026. Net charge-offs totaled $826,000 during the third quarter of 2026, compared with net loan recoveries of $52,000 in the second quarter of 2026 and net loan recoveries of $8,000 in the third quarter of 2025.

The provision for credit losses was $525,000 in the third quarter of 2026, compared to $651,000 in the second quarter of 2026, and $396,000 in the third quarter of 2025. The total allowance for credit losses balance decreased to $10.6 million, or 1.65% of total loans, at September 30, 2026 compared to $10.9 million at June 30, 2026.

Total deposits increased by $6.2 million, or 0.9%, during the third quarter of 2026 to $731.2 million at September 30, 2026, compared to $725.0 million three months earlier, and increased $52.9 million, or 7.8%, when compared to $678.3 million a year earlier. Excluding wholesale deposits, which declined during the quarter, core relationship deposits grew approximately $18.4 million, or 2.6%, with noninterest-bearing deposits at $272 million, or 37.2% of total deposits, compared to $265.0 million at June 30, 2026. The loan to deposit ratio was 88.2% at September 30, 2026, compared to 91.7% at June 30, 2026, and 93.3% as of September 30, 2025. “Prudent deposit base management, supported by strong customer relationships, increased total deposits and strengthened our funding position during the third quarter of 2026,” said Glance. “This growth in core deposits over the preceding quarter and year-over-year provides a stable, cost-effective source of funding as we continue to support our customer’s needs.”

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 $250,000 limit while maintaining the customer relationship at the Bank. The Company continues to utilize a conservative level of wholesale funding, wholesale deposits totaled $31.8 million, representing 4.2% of total deposits at September 30, 2026, compared to $44.7 million, or 6.2% of total deposits, at June 30, 2026. At September 30, 2025, wholesale deposits totaled $44.6 million, or 6.6%.

Shareholders’ equity increased to $68.2 million at September 30, 2026, compared to $66.6 million at June 30, 2026, and $51.0 million at September 30, 2025. Tangible book value per share increased to $15.46 at September 30, 2026, compared to $15.11 three months earlier and $14.21 one year earlier.

Capital
The Bank’s Tier 1 leverage ratio was 11.54% as of September 30, 2026, compared to 11.82% as of June 30, 2026. The Tier 1 risk-based capital ratio was 12.08% as of September 30, 2026, compared to 11.76% as of June 30, 2026, and increased from 10.32% as of September 30, 2025. The total risk-based capital ratio was 13.33% as of September 30, 2026, and 13.02% as of June 30, 2026. All capital ratios remained well above regulatory minimums for the third quarter of 2026.

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.

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

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