Endeavor Bancorp Reports Net Income of $1.7 Million for the Fourth Quarter of 2025

Endeavor Bancorp (OTCQX: EDVR) (the “Company” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of $1.70 million, or $0.45 per diluted share, for the fourth quarter of 2025, compared to $1.73 million, or $0.46 per diluted share, for the third quarter of 2025, and $1.08 million, or $0.29 per diluted share, for the fourth quarter of 2024. All financial results are unaudited.

“We achieved strong earnings in the fourth quarter of 2025, capping off a record-breaking year,” said Julie Glance, CFO. “This performance reflected portfolio growth across both loans and deposits during the fourth quarter while successfully expanding our net interest margin despite headwinds from the Fed’s recent rate reductions during the latter part of the year. Earlier investments in our team and technology platform are clearly delivering results, evidenced by meaningful year-over-year improvement in our efficiency ratio, elevated client engagement levels, and enhanced overall performance. Our strong positioning heading into the new year, combined with an evolving interest rate landscape, gives us confidence in our path toward continued earnings expansion and superior shareholder value creation.”

Results for the fourth quarter of 2025 included a $664,000 provision for credit losses, reflecting continued prudent credit risk management. This compared to a $396,000 provision for credit losses in the third quarter of 2025, and a $374,000 provision for credit losses in the fourth quarter of 2024. Core pre-tax earnings, excluding taxes and loan loss provisions, were $3.06 million in the fourth quarter of 2025, an increase of $202,000, or 7.1%, compared to $2.86 million in the preceding quarter, and up $1.13 million, or 58.9%, from $1.93 million in the fourth quarter of 2024.

Income Statement

Continued loan growth and stable earning asset yields drove solid earnings for the fourth quarter of 2025. Total interest income on loans and bank deposits and investments was $12.2 million, equal to the $12.2 million earned in the preceding quarter, while total interest expenses decreased $403,000 during the same timeframe. Net interest income was $8.1 million in the fourth quarter of 2025, which was a 5.2% increase compared to the preceding quarter and a 23.9% increase compared to the fourth quarter of 2024.

“Our net interest margin expanded by 13 basis points in the fourth quarter compared to the prior quarter, and 25 basis points year-over-year,” said Dan Yates, CEO. “We remain proactive in optimizing our asset-liability mix to safeguard and enhance margin performance, while maintaining prudent risk management and competitive client pricing. As the Federal Reserve implemented three consecutive 25-basis-point rate cuts between September and December 2025, we have worked diligently to navigate this compressed rate environment and preserve our earnings trajectory.”

The Company’s net interest margin improved 13 basis points to 4.22% in the fourth quarter of 2025 compared to 4.09% in the third quarter of 2025 and increased 25 basis points compared to 3.97% in the fourth quarter of 2024. The yield on total earning assets during the fourth quarter of 2025 was 6.35%, compared to 6.48% in the preceding quarter, and 6.54% in the fourth quarter of 2024. The decrease during the fourth quarter of 2025 was primarily due to the recent Fed Reserve rate cuts. The cost of funds decreased to 2.26% in the fourth quarter, compared to 2.53% in the third quarter of 2025, and decreased compared to 2.76% in the fourth quarter of 2024.

Non-Interest income was $532,000 in the fourth quarter of 2025, an increase of $131,000 or 32.8% compared to the third quarter of 2025, and an increase of $372,000, or 232.7% compared to $160,000 in the fourth quarter of 2024. The increase compared to the prior quarter was primarily attributed to SBA loan sales income.

Non-Interest expense was $5.6 million in the fourth quarter of 2025, an increase of $326,000 compared to the third quarter of 2025, and an increase of $799,000 compared to the fourth quarter of 2024. The higher expenses year-over-year were due to strategic investment in staff. “Our workforce expansion of more than 30% in 2024 has nearly reached full productivity, with these strategic hires now driving revenue growth that comfortably outpaces the corresponding year-over-year expense increases—a trend clearly demonstrated by our efficiency ratio improvement to 65.7% in the fourth quarter of 2025 from 71.2% in the fourth quarter a year ago,” said Yates.

The Company’s annualized return on average equity for the fourth quarter of 2025 was 12.82%, compared to 13.58% in the third quarter of 2025 and 9.35% in the fourth quarter of 2024. The annualized return on average assets for the fourth quarter of 2025 was 0.87% compared to 0.90% for the third quarter of 2025 and 0.65% for the fourth quarter of 2024. For the year 2025, total net income increased 90.2% to $5.9 million, compared to $3.2 million in 2024.

Balance Sheet

Total assets increased by $10.4 million, or 1.4%, during the fourth quarter of 2025 to $770.6 million at December 31, 2025, compared to $760.2 million at September 30, 2025, and increased $92.4 million, or 13.6%, compared to December 31, 2024. Balance sheet liquidity remains strong with cash balances of $89.1 million, which represents 11.6% of total assets as of December 31, 2025. The Company’s investment securities increased $821,000 during the fourth quarter of 2025 to $32.4 million as of December 31, 2025, representing 4.2% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $232.2 million as of December 31, 2025.

“We have been successful at achieving steady loan growth that aligns with our funding capacity, bolstered by continued progress in deposit gathering that reflects the strength and depth of our client relationships,” said Steve Sefton, President.

Total loans outstanding increased $10.8 million, or 1.7%, during the fourth quarter of 2025 to $643.4 million at December 31, 2025, compared to $632.6 million three months earlier, and increased $71.6 million, or 12.5%, when compared to $571.8 million a year earlier. Total non-performing loans decreased to 0.17% of the total loan portfolio as of December 31, 2025, compared to 0.21% as of September 30, 2025. The Company had $197,000 in net charge-offs during the fourth quarter of 2025, compared to $8,000 in net loan recoveries during the preceding quarter and no net charge-offs during the year ago quarter.

Total deposits increased $4.4 million, or 0.7%, during the quarter to $682.7 million at December 31, 2025, compared to $678.3 million three months earlier, and increased $81.5 million, up 13.6% when compared to $601.2 million a year earlier. “We continue to monitor a subset of newer, higher‑balance deposit relationships for potential volatility and proactively manage liquidity through a diversified funding strategy, including participation in reciprocal/off‑balance‑sheet deposit programs and maintaining multiple contingent liquidity sources,” said Glance.

The loan to deposit ratio was 94.2% at December 31, 2025, compared to 93.3% at September 30, 2025, and 95.1% as of December 31, 2024. “Our approach to balance sheet management prioritizes keeping our loan-to-deposit ratio around 95%, a level that enables us to sustain strong lending momentum while maintaining disciplined liquidity oversight,” added Sefton.

As a result of its participation in reciprocal deposit placement networks, the Bank accepted “reciprocal” deposits from other institutions, enabling the Bank to offer customers FDIC insurance on accounts in excess of the typical $250,000 FDIC insurance limit. Although the reciprocal deposits maintained through the network are core deposits seeking FDIC insurance, the FDIC rules indicate that reciprocal deposits aggregating over 20% of total liabilities are classified as deposits obtained by or through a deposit broker. The total reciprocal deposits reported as brokered deposits were $110.4 million at December 31, 2025, and $99.1 million as of September 30, 2025. Additionally, to support strong loan growth, the Company is utilizing a conservative amount of wholesale deposits. As of December 31, 2025, total wholesale deposits, excluding the reciprocal deposits, were $35.3 million, representing 5.2% of total deposits compared to $44.6 million, or 6.6% of total deposits as of September 30, 2025. At this time last year, wholesale deposits were $60.7 million, representing an overall decrease of 41.8%.

Shareholders’ equity increased to $53.1 million at December 31, 2025, compared to $51.0 million at September 30, 2025, and $46.0 million at December 31, 2024. Tangible book value per share increased to $14.68 at December 31, 2025, compared to $14.21 three months earlier and $13.17 a year earlier.

Capital

The Bank’s Tier 1 leverage ratio was 10.24% as of December 31, 2025, compared to 10.15% at September 30, 2025. The Tier 1 risk-based capital ratio was 10.36% as of December 31, 2025, compared to 10.32% on September 30, 2025, and the Total risk-based capital ratio was 11.61% compared to 11.54% three months earlier, all of which remained well above regulatory minimums.