Thursday, July 30, 2026
Endeavor Bancorp posts record Q2 profit as deposits, assets increase
The downtown San Diego-based community bank reported second quarter earnings of $1.89 million as rising net interest income, steady deposit growth and lower operating expenses offset slower loan growth.
Endeavor Bancorp reported record quarterly earnings as higher net interest income, continued deposit growth and lower operating expenses boosted results despite slower loan growth during the second quarter.
The parent company of Endeavor Bank said Tuesday it earned $1.89 million, or 40 cents per diluted share, in the quarter ended June 30. That compares with net income of $1.42 million, or 31 cents per share, in the first quarter and $1.07 million, or 25 cents per share, in the second quarter of 2025.
Based in downtown San Diego, the company's net interest margin, a key measure of lending profitability, was 4.41%, down slightly from 4.48% in the previous quarter but up from 4.21% a year earlier.
Endeavor Bancorp chief financial officer Julie Glance said the results reflected record earnings driven by improved expense management, while continued deposit growth and investments in technology and personnel supported the bank's performance.
The bank's net interest income rose to $8.6 million, marking a year-over-year increase of 16.2%. Total interest income increased 1.5% quarter-over-quarter to $12.4 million as interest expenses rose modestly.
Chief executive officer Dan Yates said the company limited pressure on its net interest margin despite changing expectations for Federal Reserve interest-rate policy through what he described as disciplined balance sheet management.
Noninterest expenses declined by $351,000 from the first quarter to $5.6 million, primarily because annual board compensation paid during the first quarter did not recur.
Total assets increased to $823 million as of June 30, up 2.2% from the end of the first quarter and 10.2% from a year earlier. Cash holdings totaled $118 million, representing 14.4% of total assets.
Endeavor's loans outstanding rose to $664.8 million, an increase of 0.7% during the quarter and 6.2% from a year earlier. The company said loan growth slowed because several borrowers paid off or refinanced older loans, allowing the bank to redeploy funds into higher-yielding loans.
The company's deposits climbed to $725 million, up 2.2% from the prior quarter and 8.6% from a year earlier.
The provision for credit losses totaled $651,000 during the quarter, down from $909,000 in the first quarter. Nonperforming loans increased to 0.45% of total loans from 0.17% three months earlier, although bank executives said the increase reflected a small number of secured loans that were downgraded rather than widespread deterioration in credit quality.
Shareholders' equity increased to more than $66 million from $64.8 million at the end of March, while tangible book value rose to $15.11 per share.
The bank also reported capital ratios that remained well above regulatory minimums. Its Tier 1 leverage ratio was 11.82% at the end of the second quarter.
Endeavor Bancorp operates Endeavor Bank, a community bank focused on serving businesses throughout Southern California.
The parent company of Endeavor Bank said Tuesday it earned $1.89 million, or 40 cents per diluted share, in the quarter ended June 30. That compares with net income of $1.42 million, or 31 cents per share, in the first quarter and $1.07 million, or 25 cents per share, in the second quarter of 2025.
Based in downtown San Diego, the company's net interest margin, a key measure of lending profitability, was 4.41%, down slightly from 4.48% in the previous quarter but up from 4.21% a year earlier.
Endeavor Bancorp chief financial officer Julie Glance said the results reflected record earnings driven by improved expense management, while continued deposit growth and investments in technology and personnel supported the bank's performance.
The bank's net interest income rose to $8.6 million, marking a year-over-year increase of 16.2%. Total interest income increased 1.5% quarter-over-quarter to $12.4 million as interest expenses rose modestly.
Chief executive officer Dan Yates said the company limited pressure on its net interest margin despite changing expectations for Federal Reserve interest-rate policy through what he described as disciplined balance sheet management.
Noninterest expenses declined by $351,000 from the first quarter to $5.6 million, primarily because annual board compensation paid during the first quarter did not recur.
Total assets increased to $823 million as of June 30, up 2.2% from the end of the first quarter and 10.2% from a year earlier. Cash holdings totaled $118 million, representing 14.4% of total assets.
Endeavor's loans outstanding rose to $664.8 million, an increase of 0.7% during the quarter and 6.2% from a year earlier. The company said loan growth slowed because several borrowers paid off or refinanced older loans, allowing the bank to redeploy funds into higher-yielding loans.
The company's deposits climbed to $725 million, up 2.2% from the prior quarter and 8.6% from a year earlier.
The provision for credit losses totaled $651,000 during the quarter, down from $909,000 in the first quarter. Nonperforming loans increased to 0.45% of total loans from 0.17% three months earlier, although bank executives said the increase reflected a small number of secured loans that were downgraded rather than widespread deterioration in credit quality.
Shareholders' equity increased to more than $66 million from $64.8 million at the end of March, while tangible book value rose to $15.11 per share.
The bank also reported capital ratios that remained well above regulatory minimums. Its Tier 1 leverage ratio was 11.82% at the end of the second quarter.
Endeavor Bancorp operates Endeavor Bank, a community bank focused on serving businesses throughout Southern California.
