Endeavor Bank Reports Second Quarter 2021 Financial Results

SAN DIEGO – (COMMERCIAL THREAD) – As expected, the decrease in balance sheet totals during the quarter was primarily the result of the cancellation of Paycheck Protection Program (P3) loans. As of June 30, 2021, the Bank’s total assets were nearly $ 464 million, a decrease from March 31, 2021 of nearly $ 48 million, or -9%. Total deposits stood at $ 269 million at the end of the second quarter, a decrease of $ 9 million or -3% from March 31, 2021, and total loans stood at $ 364 million , a decrease of nearly $ 22 million or -6% in the quarter. The Bank continued to provide PPP loans until the program expiry date of June 30, 2021. At the end of the second quarter, total PPP loan balances stood at $ 157 million, reflecting a Decrease of $ 43 million from March 31, 2021. During the same period, non-PPP loan balances increased by $ 21 million to reach $ 207 million.

Net income after tax for the second quarter totaled $ 1.741 million, a significant increase from first quarter net income of $ 294,000. The improvement was largely the result of seeing higher P3 revenues in the quarter, as well as higher profits from growth in non-PPP loans.

Financial results as at June 30, 2021 ($ 000)

June 30, 2021

March 31, 2021

Total assets

$ 463,855

$ 511,649

Total loans

$ 364,359

$ 386,148

Total deposits

$ 269,026

$ 277,698

Total equity

$ 29,744

$ 27,948

Net income after tax (quarter ended)

$ 1,741

$ 294

For the complete detailed financial statements covering the Bank’s operating results, please refer to the Appeal Report filed with the FDIC at https://www7.fdic.gov/idasp/advSearchLanding.asp (Enter the name of Endeavor Bank and click Search).

Dan Yates, CEO, said, “As we come out of the pandemic, we have achieved our fifth consecutive quarter of profitability. PPP royalty revenue was a major profit driver this quarter and for the first half of the year, but not the only driver. Our core growth in loans and deposits, loans and deposits from non-PPP clients, drives asset growth and profitability. ”

Steve Sefton, Chairman, added: “As we move into the forgiveness phase of PPP, we are starting to see the balance sheet contract as we expected. PPP loans are canceled by the SBA and repaid, which triggers the recognition of commission income. From the start of the PPP program until the end of the second quarter of this year, Endeavor has recorded $ 5.6 million in PPP commission income and an additional $ 4.4 million is expected to be recognized as loan balances PPP is canceled. Income from PPP commissions not only generates bank profits, but also provides permanent capital increase of the Bank through retained earnings. We are satisfied with our results for this quarter, the first half of 2021, and we are optimistic for the future. ”

Scott Parker, Chief Credit Officer, commented: “We continue to be satisfied with the quality and performance of the loan portfolio, especially given the uncertainty present at the onset of the COVID 19 pandemic. With no significant defaults, unrecorded loans and write-offs, Endeavor Bank’s asset quality remains favorable. ”

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 client 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 production and executive administration office in Carlsbad. Endeavor Bank provides banking services to traditional businesses in a wide range of industries and specialties. Unique to the bank is its consultative banking approach which combines business clients with the senior management of Endeavor Bank. Together, we strategize and provide resources that solve problems, plan for the future, and help clients’ efforts grow revenue and profits. Visit www.bankendeavor.com for more information.

Forward-looking statements

This press release includes “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the directors and officers of the Bank (collectively, “the management »), As well as the assumptions made by and the information currently available to the Bank’s Management. All statements regarding the Bank’s business strategy and the plans and objectives of the Bank’s management 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 with similar meanings, with regard 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. Important factors that could cause actual results to differ materially from the Bank’s expectations (“caveats”) are the effects of the COVID-19 pandemic and related government actions on the Bank and its customers, losses on loans, changes in interest rates, loss of key personnel, lower loan and capital limits than competitors, regulatory restrictions and Bank oversight, safe and efficient implementation of technology, risks associated with ‘local and national economy, implementation by the Bank of its business plans and growth management, loan performance, interest rates and regulatory issues, effects of trade, monetary and fiscal policies, inflation and changes in accounting policies and practices. Depending on changing conditions, if one or more of these risks or uncertainties materialize, or if underlying assumptions turn out to be incorrect, actual results may differ materially from those described as anticipated, believed, estimated , expected or wanted. The Bank does not intend to update these forward-looking statements.

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