Endeavor Bank Reports Third Quarter 2021 Financial Results

Healthy profitability and growth in basic loans and deposits (non-PPP)

SAN DIEGO, November 19, 2021 / PRNewswire / – The bank continues to post healthy profits, as well as growth in core loans and deposits (excluding PPP). The cancellation of Paycheck Protection Program (PPP) loans and the repayment of associated PPPLF loans during the third quarter resulted in a decrease in total assets from June 30, 2021, as expected. From September 30, 2021, the Bank’s total assets amounted to nearly $ 440 million, a drop $ 24 million of $ 464 million reported to June 30th, 2021. Total loans amounted to nearly $ 347 million from September 30, 2021, reflecting a decrease in $ 17 million of $ 364 million reported on June 30th, 2021. The quarterly decline in outstanding loans includes reductions in outstanding PPP loans of nearly $ 52 million the cancellation of PPPs, associated with a growth in basic loans (non-PPP) of $ 34 million during the quarter. During the same period, total deposits increased by almost $ 31 million of $ 269 million reported to June 30, 2021, to end the third trimester at just under $ 300 million.

Third quarter net profit before tax was $ 2.1 million, a $ 123,000 decrease from second quarter earnings, mainly $ 360 million increase in provision for loan and lease losses from Q2 to Q3, driven by the robust growth in core loans recorded during the quarter.

Unaudited financial results ($ 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 detailed financial statements covering the results of operations of the Bank, please refer to the Appeal Report filed with the FDIC located at https://www.otcmarkets.com/stock/EDVR/disclosure.

Dan Yates, CEO, said: “The amount of PPP loans granted by Endeavor Bank from the start of the PPP program in April 2020 until the end of the program in June 2021 totaled more than $ 304 million. So far, until the end of the third quarter of this year, $ 195 million of total PPP loans have been canceled and repaid since the start of the program, leaving nearly $ 109 million the remaining PPP loans outstanding. Yates added, “The commission income that the Bank recognizes when canceling the PPP loan is more important to the Bank’s income. Once all loans are canceled or repaid, participation in the PPP program will have generated net income of more than $ 10 million, a non-recurring but permanent boost to capital. “

Steve sefton, President, said: “As proud as the Endeavor team is for the hard work we have done in making over 1,600 PPP loans, and the help this has provided to the San Diego business community, we are even more proud of our continued focus on our core mission of serving local business owner clients to drive loan and deposit growth. Hidden in the balance sheet under the noise created by PPP was the growth in bank loans and core deposits and the resulting profits. While PPP loan balances first increased and then contracted, core loans have grown steadily. In fact, basic loan growth has exceeded $ 111 million compared to the same quarter of last year, an increase of 86%. “

Scott Parker, Chief Credit Officer, commented, “Credit quality continues as we focus on growing core loans and deposits. Endeavor has no significant defaults, no outstanding loans, and no loan write-offs. “

About Endeavor Bank

Endeavor Bank (OTC Pink: EDVR) is primarily owned and operated by San Diegans for San Diego businesses and their owners. The bank’s objective is local: local decision-making, local council, local founders, local owners and relations with local customers in the San Diego metropolitan market and its surroundings.

Headquarters in the city center San Diego in the iconic Symphony Towers building, the Bank also operates a loan production and executive administration office at 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.

EDVR shareholders

With a large number of our shareholders transferring their EDVR shares to their brokerage firms, as well as ongoing transactions, the Bank may not have the most recent contact details of shareholders. 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 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 opinions of the directors and officers of the Bank (collectively, “management »), As well as the assumptions made by and the information currently available to the Bank’s management. All statements concerning 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, assumed, estimated, expected or planned. The Bank does not intend to update these forward-looking statements.


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