Endeavor Bancorp Announces Second Quarter 2022 Financial Results

SAN DIEGO–(BUSINESS WIRE)–Endeavor Bancorp, the holding company of Endeavor Bank, reports continued strong growth in the second quarter of 2022, including record levels of core loans and deposits.

Results for the second quarter ended June 30, 2022 included total assets of $468 million, a 22% increase from the end of the prior quarter. Loans totaled $355 million, an increase of $23 million or 7% from the end of the first quarter, and included a decline in PPP loan balances of $10.5 million. Total deposits reached $408 million, an increase of $95 million or 30% over the second quarter. Second quarter pre-tax net income totaled $909,000, reflecting an increase of $2,000 from pre-tax net income of $907,000 for the first quarter. Second quarter net income included PPP-related net income of $279,000, down from the prior quarter as fewer PPP loans remain in the Bank’s loan portfolio. As of June 30eonly $7.3 million in PPP loans remain of the more than $300 million the bank has originated.

Year-to-date net income to June 30, 2022 was $3.5 million, including a one-time, non-recurring recognition of deferred tax assets totaling approximately $2.5 million. Given the improvement in the Bank’s earnings base, the Bank’s management believes that it is now more likely than not that future earnings will be sufficient to recognize the benefit of the remaining net deferred tax assets.

During the quarter, shareholders approved the reorganization plan to create the bank holding company, Endeavor Bancorp. In addition, Endeavor Bancorp’s Board of Directors elected to transfer $12 million of Tier 1 capital from the holding company to the Bank. The capital injection will enable further growth in the months and years to come. Following the capital injection, the Bank’s Tier 1 capital ratio improved to 11.81%, well above the regulatory minimum well capitalized capital ratio requirement of 6.00 %.

CEO Dan Yates commented: “As interest rates are poised to continue to rise in 2022, we expect to see a further increase in yields on our loans, especially as we breach lows on current variable rate loans in the third quarter. The Bank continues to experience strong balance sheet growth while navigating a more volatile economic and interest rate environment. We are on track with several strategic initiatives and are focused on achieving the cumulative profitability milestone over the next twelve months. Yates added that the significant increase in filings included some potentially volatile larger filing relationships that could see exits in the coming months. Chairman Steve Sefton added, “We greatly appreciate the trust and support of our shareholders. It remains a privilege to work alongside our Endeavor Bank team members as we strive to serve our community.

Financial results as of June 30, 2022 (in thousands of dollars omitted) – unaudited

Results as of June 30, 2022 relate to Consolidated Endeavor Bancorp. The results as of March 31, 2022 relate to Endeavor Bank and its consolidated subsidiary Endeavor Bancorp. The 2021 results relate only to Endeavor Bank.

June 30, 2022

March 31, 2022

June 30, 2021
Quarterly results

Comparison of the previous quarter

Year-over-year comparison

Core loan balances

$

347 428

$

314 232

$

207,086

PPP loan balances

$

7,310

$

17,826

$

157,273

Total gross loan balances

$

354,738

$

332,058

$

364 359

Total assets

$

468,054

$

382,938

$

463,855

Total deposits

$

408,032

$

313,485

$

269 ​​026

Total equity

$

36,170

1

$

32,885

$

29,744

Quarterly net income before tax

$

909

$

907

$

2,209

1 Bank holding company Total Equity does not include proceeds from the issuance of subordinated debt. Bank only Total equity as of 06/30/2022 was $48,469,000 and included $12,000,000 of additional paid-up capital contributed to the bank by the holding company from the proceeds of debt issuance subordinate.

For detailed financial statements covering the results of operations of the Bank, please refer to the call report filed with the FDIC located at https://www.otcmarkets.com/stock/EDVR/disclosure.

About Endeavor Bank

Endeavor Bank is primarily owned and operated by San Diegans for San Diego businesses and their owners. The bank’s focus is local: local decision-making, local board of directors, local founders, local owners, and local customer relationships in the San Diego metro market and surrounding areas.

Based in downtown San Diego in the iconic Symphony Towers building, the Bank also operates a loan origination and executive administration office in Carlsbad and La Mesa. Endeavor Bank provides traditional business banking services across a wide range of industries and specialties. Unique to the bank is its consultative banking approach which pairs our commercial clients with Endeavor Bank’s senior management. Together, we develop strategies and provide resources that solve problems, plan for the future, and help customers grow revenue and profits. Visit www.bankendeavor.com for more information.

EDVR shareholders

With many of our shareholders transferring their EDVR shares to their brokerage firms, as well as ongoing transactions, the Bank may not have the most recent shareholder contact information. If you are an EDVR shareholder and would like to receive information via a faster method, please complete the Shareholder Communication Preference Form on our website: https://www.bankendeavor.com/investor-relations so that we can keep you up to date with EDVR news and invite you to various shareholder networking events throughout the year.

Forward-looking statements

This press release contains “forward-looking statements”, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the directors and senior officers of the Bank (collectively, the ” direction “). , as well as the assumptions used and the information currently available to the Bank’s Management. All statements regarding the Bank’s business strategy and the Bank’s management’s plans and objectives for future operations are forward-looking statements. When used in this press release, the words “anticipate”, “believe”, “estimate”, “expect” and “intend” and words or expressions of similar meaning, with respect to relates to the Bank or the Bank’s management, are intended to identify forward-looking statements. Although the Bank believes that the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee that these expectations will prove to be correct. The important factors that could cause actual results to differ materially from the Bank’s expectations (“catuages”) are the effects of the COVID-19 pandemic and related government measures on the Bank and its customers, losses on loans, changes in interest rates, loss of key personnel, lower loan limits and capital than competitors, regulatory restrictions and Bank oversight, safe and efficient implementation of the technology, risks related to the local and national economy, the Bank’s implementation of its business plans and the management of growth, loan performance, interest rates and regulatory matters, the effects trade, monetary and fiscal policies, inflation and changes in accounting policies and practices. As conditions change, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those described as anticipated, believed, estimated, expected or planned. The Bank does not intend to update these forward-looking statements.

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