Endeavor Bancorp Reports Net Income of $1.7 Million for the Fourth Quarter of 2025; Highlighted by NIM Expansion

Core Viewpoint - Endeavor Bancorp reported strong earnings for the fourth quarter of 2025, achieving a net income of $1.70 million, which reflects a solid performance despite challenges from recent Federal Reserve rate cuts. The company experienced growth in both loans and deposits, contributing to an overall record-breaking year [1][2]. Financial Performance - Net income for Q4 2025 was $1.70 million, or $0.45 per diluted share, compared to $1.73 million, or $0.46 per diluted share in Q3 2025, and $1.08 million, or $0.29 per diluted share in Q4 2024 [1]. - Core pre-tax earnings for Q4 2025 were $3.06 million, a 7.1% increase from $2.86 million in Q3 2025, and a 58.9% increase from $1.93 million in Q4 2024 [2]. - Total interest income remained stable at $12.2 million in Q4 2025, while total interest expenses decreased by $403,000, leading to a net interest income of $8.1 million, which is a 5.2% increase from the previous quarter and a 23.9% increase year-over-year [3]. Interest Margin and Asset Management - The net interest margin expanded by 13 basis points to 4.22% in Q4 2025 compared to 4.09% in Q3 2025, and increased by 25 basis points from 3.97% in Q4 2024 [4]. - The yield on total earning assets was 6.35% in Q4 2025, down from 6.48% in Q3 2025, primarily due to Federal Reserve rate cuts [4]. Non-Interest Income and Expenses - Non-interest income rose to $532,000 in Q4 2025, a 32.8% increase from Q3 2025 and a 232.7% increase from $160,000 in Q4 2024, largely driven by SBA loan sales income [5]. - Non-interest expenses increased to $5.6 million in Q4 2025, up $326,000 from Q3 2025 and $799,000 from Q4 2024, attributed to strategic investments in staff [6]. Asset Quality and Balance Sheet - Total loans outstanding increased by $10.8 million, or 1.7%, to $643.4 million in Q4 2025, and increased by $71.6 million, or 12.5%, year-over-year [11]. - Total deposits rose by $4.4 million, or 0.7%, to $682.7 million in Q4 2025, and increased by $81.5 million, or 13.6%, compared to the previous year [12]. - The loan-to-deposit ratio was 94.2% at the end of Q4 2025, compared to 93.3% in Q3 2025 and 95.1% in Q4 2024 [13]. Capital and Equity - Shareholders' equity increased to $53.1 million at the end of Q4 2025, compared to $51.0 million in Q3 2025 and $46.0 million in Q4 2024 [15]. - The Tier 1 leverage ratio was 10.24% as of December 31, 2025, remaining well above regulatory minimums [16].