Endeavor Bank Defies Trends with Strong Q1 Margins and Growth

SAN DIEGO, CA – April 24, 2026

Endeavor Bancorp (OTCQX: EDVR) today announced a robust first quarter for 2026, reporting net income of $1.42 million. While this figure is slightly down from the prior quarter, the underlying performance metrics reveal a community bank firing on all cylinders, highlighted by exceptional growth in its net interest margin and a significant infusion of new capital poised to fuel further expansion.

The San Diego-based business bank's results stand out in a period of cautious optimism for the banking sector. Against a backdrop of stabilizing interest rates and broader economic uncertainty, Endeavor demonstrated an ability to translate market conditions into tangible financial strength, reinforcing its reputation as a key player in Southern California's business community.

A Blueprint for Margin Expansion

The standout achievement in Endeavor's first-quarter report was the significant expansion of its net interest margin (NIM), which climbed to an impressive 4.48%. This represents a 26-basis-point increase from the previous quarter and a 36-basis-point jump from the same period last year. The NIM, a critical measure of a bank's profitability, reflects the difference between the interest it earns on loans and the interest it pays on deposits.

Endeavor's performance in this area is particularly noteworthy when compared to regional peers. Its 4.48% NIM comfortably surpasses the 3.24% reported by the much larger Banc of California and also edges out the 4.08% from MetroCity Bankshares, positioning Endeavor as a leader in profitability among community banks. This margin strength was achieved during a quarter where the Federal Reserve held interest rates steady, a move that Endeavor's management skillfully capitalized on.

“Our net interest margin expanded by 26 basis points in the first quarter compared to the prior quarter, and 36 basis points year-over-year,” said CEO Dan Yates in the company's press release. “In a quarter marked by monetary policy uncertainty and evolving macro conditions, our team executed with focus and precision, translating a stable rate backdrop into meaningful net interest margin growth.”

This execution was driven by a combination of continued loan growth and a decrease in total interest expenses, which fell by $332,000 compared to the fourth quarter of 2025. The result was a net interest income of $8.5 million, a nearly 21% increase year-over-year.

Fortifying the Balance Sheet

Supporting the bank's income growth was a solid expansion of its core business lines. Total loans outstanding grew by $17.0 million during the quarter to reach $660.4 million. This was matched by even stronger deposit growth, which saw total deposits increase by $26.5 million to $709.2 million. The faster pace of deposit gathering improved the bank's loan-to-deposit ratio to 93.1%, enhancing its liquidity profile.

“Loan growth was strong in the first quarter, supported by continued momentum in deposit gathering that reflects the breadth of our client relationships and the quality of our funding base,” noted President Steve Sefton.

Crucially, this growth did not come at the expense of credit quality. In fact, Endeavor's asset quality improved dramatically. The bank reported that non-performing loans fell to just 0.04% of its total loan portfolio, a sharp decline from 0.17% in the previous quarter. This exceptionally low figure indicates strong underwriting discipline and effective risk management, a positive sign as the broader industry watches for signs of credit normalization. Furthermore, the bank recorded no net charge-offs during the quarter, bolstering its allowance for credit losses to $10.3 million as a prudent measure for the future.

Endeavor maintains a strong liquidity position, with over $106 million in cash and an additional $238 million in available borrowing capacity, ensuring its resilience and ability to meet client needs across various market conditions.

Fueling Future Growth with New Capital

A key development underscoring investor confidence was the successful completion of a $10.0 million private placement of common stock in January. The offering, initially targeted for $8 million, was oversubscribed, reflecting strong demand from accredited investors. The transaction was managed internally, and notably, the bank’s own management and board members participated with a combined investment of over $1.2 million.

This infusion of capital is already being deployed to strengthen the bank's foundation and expand its reach. The proceeds directly bolstered Endeavor's capital ratios, with its Tier 1 leverage ratio jumping from 10.24% to 11.72%, well above regulatory requirements. This provides a larger base from which the bank can extend credit and support its clients.

“The success of this capital raise is a reflection of the strength of our bank and the dedication of our Board of Directors, management and team members as we expand our community bank throughout Southern California,” said Yates. President Steve Sefton added that the additional capital is already being put to work, with financial modeling giving the bank “strong conviction in the returns this capital will generate over the next several years.”

The 'Consultative' Community Banking Edge

Tying these strong financial results together is Endeavor's core business philosophy: a hands-on, consultative approach focused exclusively on Southern California businesses. Unlike larger, more impersonal institutions, Endeavor prides itself on providing clients with direct access to senior management to build strategies that solve problems and drive growth.

“The investments we have made in our people and technology platform continue to generate tangible results, reflected in elevated client engagement and strengthening relationships across our portfolio,” stated CFO Julie Glance. This relationship-based model appears to be the engine behind the bank's ability to attract high-quality loans and stable, low-cost deposits, which in turn fuels its superior net interest margin and pristine asset quality.

By successfully raising and deploying new capital while executing with precision on its client-centric strategy, Endeavor Bancorp has demonstrated a powerful model for community banking resilience and growth. The first quarter results suggest the bank is well-positioned to continue its expansion and deepen its impact on the Southern California business landscape throughout 2026.