Financial Data and Key Metrics Changes - The company reported net income of $20 million for the second quarter, equating to $0.69 per share, while loan outstandings contracted by $31.9 million during the quarter [3] - Year-to-date commercial loan production was $507 million compared to $422 million in the prior year, but loan outstanding contracted by $25.4 million compared to growth of $117.6 million in the prior year [4] - Deposits decreased by $75.8 million during the quarter, primarily due to seasonal declines in public funds deposits and broker deposits, but excluding these declines, deposits increased by $77.5 million [4] - The net interest margin (NIM) reported was 3.2%, an increase of 11 basis points from the prior quarter, with core NIM at 3.24%, expanding by 12 basis points compared to the first quarter [6] Business Line Data and Key Metrics Changes - Noninterest income increased by $521,000 or 2.5% compared to the second quarter of 2024, driven by increases in investment management fees, gains on sale of SBA loans, and treasury management fees [7] - Noninterest expense increased by $1.6 million or 3.3% compared to the second quarter of 2024, primarily due to compensation costs, including annual merit increases and medical costs [7] Market Data and Key Metrics Changes - The company expects loan growth of approximately 1% to 3% for the full year and net interest income growth of 10% to 12% compared to 2024 [8] - The provision for credit loss guidance remains unchanged at $12 million to $14 million for 2025, with the provision being event-driven [8] Company Strategy and Development Direction - The company will continue to be active in share buybacks, viewing it as a good use of capital, while M&A is not an immediate strategic priority but remains an option for the future [17] - The company is focused on managing expenses prudently, with a revised expense growth forecast of 2% to 4% [15] Management Comments on Operating Environment and Future Outlook - Management noted that loan activity and origination remain strong, despite being impacted by significant payoff activity in the first half of the year [14] - The competitive environment for deposits is tough, with ongoing efforts to grow deposits through targeted campaigns [20] - For the third quarter, core NIM is expected to pull back slightly due to the repricing of sub debt issuance and higher cost public funds [21] Other Important Information - The company reported $7.8 million of net charge-offs predominantly related to one credit, which accounted for $7.3 million of the charge-offs, with credit quality remaining strong overall [5] Q&A Session Summary Question: Update on loan growth and expenses - Loan growth is expected to be 1% to 3%, with interest income growth of 10% to 12%, and expenses are projected to grow by 2% to 4% [12] Question: Changes in loan environment and competition - Loan activity is strong, but significant payoff activity has impacted growth; management anticipates a slowdown in prepayment activity in the second half of the year [14] Question: Strategy for capital deployment - The company will continue share buybacks and is open to M&A opportunities, particularly on the non-bank side [17] Question: Deposit competition outlook - The competitive environment for deposits is challenging, with ongoing efforts to grow deposits through targeted campaigns [20] Question: NIM trajectory outlook - Core NIM is expected to pull back slightly in the third quarter, with a flat to slightly up trend thereafter, assuming stable interest rates [21]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $135 million, an increase of $23 million or 21% compared to $111 million in Q2 2024 [9] - Earnings per diluted common share rose to $1.42, up 21% from $1.17 in the same period last year [9] - Annualized return on average assets was 1.41% and return on average tangible common equity was 13.44%, compared to 1.17% and 12.34% respectively in Q2 2024 [10] - Net interest margin increased to 3.18% from 2.94% in Q2 2024 [10][17] - Noninterest income was $43 million for Q2 2025, compared to $46 million in Q2 2024 [17] Business Line Data and Key Metrics Changes - Total loans were $22.1 billion at the end of Q2 2025, a decrease of $123 million from $22.3 billion a year earlier [11] - Core commercial loans, excluding mortgage warehouse loans, increased by $73 million or 2.4% annualized [11] - Deposits decreased to $27.4 billion, down $459 million or 1.6% from $27.9 billion in Q2 2024 [12] Market Data and Key Metrics Changes - Nonperforming assets totaled $110 million, representing 33 basis points of quarterly average interest-earning assets, compared to $89 million or 25 basis points in Q2 2024 [12] - The allowance for credit losses on loans was $346 million, which is 3.47 times the amount of nonperforming assets [13] Company Strategy and Development Direction - The company announced a definitive agreement to merge with American Bank Holding Company, enhancing its presence in South Texas and Central Texas [7][9] - The focus remains on building core customer relationships, maintaining asset quality, and investing in technology [15] - The company is open to further mergers and acquisitions, indicating a strategy of growth through consolidation [13][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in the second half of the year, citing improved monthly production numbers [11] - The company anticipates continued positive trends in net interest margin and net interest income [39][45] - Management noted that the Texas business environment remains favorable, contributing to the company's growth strategy [14] Other Important Information - The efficiency ratio improved to 44.8% from 51.8% in Q2 2024 [18] - The company expects noninterest expense for Q3 2025 to be in the range of $141 million to $144 million [18] Q&A Session Summary Question: Update on loan growth expectations - Management indicated that loan growth has started better than previous quarters, with a pipeline looking good for low single-digit growth for the rest of the year [27][31] Question: Margin momentum and factors affecting it - Management discussed that net interest margin continues to grow, with expectations of reaching 3.35% in six months under stable interest rates [35][39] Question: NII accretion from the acquisition - The acquisition of American Bank is expected to bring an annual NII of approximately $85 million to $90 million, with additional benefits from fair value adjustments [58] Question: Quality of American Bank's loans and deposits - Management expressed confidence in the quality of American Bank's loans and deposits, indicating minimal expected runoff post-acquisition [66][73] Question: Future M&A activity - Management confirmed that they remain active in pursuing additional M&A opportunities even with the pending acquisition [97] Question: Regulatory pressures and deal timelines - Management noted a hopeful return to quicker deal closures, estimating a timeline of three to four months for future acquisitions [102]

Financial Performance - Net income for Q2 2025 was $210 million, an increase of $32 million compared to Q1 2025 and Q2 2024[8] - Net interest income increased by $26 million to $632 million[8, 24] - Earnings per share (EPS) increased by $053 to $309[8] - Return on average tangible common equity (ROTCE) was 1326%[8] Balance Sheet - Loans held in portfolio grew by $931 million or 25%[8, 10] - Total deposits increased by $14 billion or 21%[10] - Tangible book value per share increased by $339 to $7541[8, 10] - Total assets reached $76065 million[8] Credit Quality - Non-performing loans (NPLs) decreased by $2 million to $312 million[8, 10] - NPL ratio improved to 082% compared to 084% in Q1 2025[8, 10] - Net charge-off (NCO) ratio was 045% compared to 053% in Q1 2025[8, 10] Capital Actions - The company repurchased $1120 million in common stock at an average price of $9854 per share[10, 44] - A new common stock repurchase program of up to $500 million was announced[10, 44]

Financial Data and Key Metrics Changes - Loans held for investment increased by $223 million or 1.7% linked quarter and $374.8 million or 2.9% year to date [4][5] - Deposit base grew by $35 million during the quarter, with personal and commercial deposits totaling $13 billion at June 30, an increase of $103.8 million or 0.8% from the prior quarter [5] - Net income for the second quarter was $55.8 million, representing fully diluted EPS of $0.92, up 4.5% from the prior quarter [5] - Return on average assets was 1.21% and return on average tangible equity was 13.13% in the second quarter [5] - Net interest income expanded by 4.3% to $161.4 million, producing a net interest margin of 3.81%, an increase of six basis points from the prior quarter [5][6] - Non-interest income totaled $39.9 million, unchanged linked quarter [6] Business Line Data and Key Metrics Changes - Growth in loans was diversified across one to four family mortgage loans, other loans and leases, and commercial and industrial loans [4] - Non-interest expense increased by $1.1 million or 0.9% linked quarter, following a decline in the previous year [6] - Credit quality remained solid, with non-performing assets declining by $5 million or 5.3% linked quarter [8] Market Data and Key Metrics Changes - The cost of total deposits in the second quarter was 1.8%, a decline of three basis points linked quarter [5] - The CET1 ratio increased by seven basis points to 11.7%, while the total risk-based capital ratio increased by five basis points to 14.15% [9] Company Strategy and Development Direction - The company is focusing on organic loan growth, potential market expansion, and M&A opportunities depending on market conditions [13] - The company is actively recruiting talent in key growth markets such as Houston, Birmingham, Atlanta, and South Alabama [35] - The company is monitoring the impact of tariffs and other administrative policies on its customer base [11] Management's Comments on Operating Environment and Future Outlook - Management expects loans held for investment to increase in mid-single digits for the full year, revised upward from low single-digit growth [11] - The net interest margin guidance has been tightened to a range of 3.77% to 3.83% for the full year [12] - The provision for credit losses is expected to trend lower compared to the previous year [12] Other Important Information - The company repurchased $11 million of common stock during the quarter, with a remaining repurchase authority of $74 million for the year [9] - The Board declared a quarterly cash dividend of $0.24 per share payable on September 15 [10] Q&A Session Summary Question: What is driving the increase in growth guidance to mid-single digits? - Management indicated it is a combination of strong production in non-CRE categories and delays in scheduled maturities for the CRE book [18][19] Question: Are there further profitability improvements expected? - Management believes there is potential for continued profitability improvement driven by operating leverage and net interest margin expansion [22][25] Question: What are the assumptions regarding NIM guidance? - The baseline forecast includes a Fed rate cut in September and December, with ongoing repricing of fixed-rate loans and securities expected to support NIM [31][32] Question: What is the company's approach to M&A? - The company is interested in both organic growth and M&A opportunities, focusing on contiguous markets and being conservative in its approach [35][36] Question: How does the recent M&A activity affect the company's partner program? - Management stated that while Texas is an attractive market, they remain open to opportunities in other high-growth markets [40][41] Question: What are the expectations for the reserve and provisioning? - The reserve level was slightly reduced, and provisioning is expected to remain similar to the first half of the year, with a positive trend in criticized and classified loans [43][46]

Financial Data and Key Metrics Changes - GAAP earnings were strong with core earnings continuing to increase, return on average assets was 1.51% and return on average equity was 15.12% for Q2 2025 compared to 1.45% and 14.97% respectively for Q1 2025 [5][6] - Net interest margin (NIM) increased to 4.07% in Q2 2025 from 4% in Q1 2025, with expectations for further upside [6][15] - Fee income as a percentage of operating revenue was 21% during the quarter, an improvement from prior periods, with noninterest income increasing by $1.3 million quarter over quarter [6][16] Business Line Data and Key Metrics Changes - Total loan growth was 6% on an annualized basis, with commercial loan growth at 2% [9][10] - Wealth management fees remained the largest component of fee income, with assets under management reaching $3 billion [7][16] - Noninterest expense declined by approximately $600,000 in the quarter, including merger-related expenses of almost $1 million [19][20] Market Data and Key Metrics Changes - The loan pipeline is reported to be the highest since the merger, reflecting a strong regional economy and engagement with clients [11][12] - Credit quality remains sound with net charge-offs being nominal and classified loans decreasing by 14% [12][22] - The average yield on loans was 6.5%, impacted by lower purchase accounting accretion [24] Company Strategy and Development Direction - The company is focused on enhancing liquidity, building capital, and accelerating commercial lending while considering share buybacks due to perceived undervaluation [27] - There is a strong emphasis on talent acquisition to support growth, particularly in the wealth management sector [48][55] - The company is open to future acquisitions that add value to the franchise, focusing on geographic proximity and complementary services [66][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong loan pipeline and positive client sentiment despite market noise [52] - The company anticipates continued improvement in profitability and efficiency, with expectations for expenses to decline further [8][20] - Management acknowledged the competitive lending environment but remains confident in their ability to grow loans prudently [11][16] Other Important Information - The board authorized a share repurchase program of up to 500,000 shares and increased the quarterly dividend by $0.01 per share [13] - Regulatory capital ratios are now at or above pre-merger levels, providing options for growth [26] Q&A Session Summary Question: Are there still other credits in the Codorus Valley deal that you are looking to move off of or sell? - Management indicated that while there might be a couple of loans to consider for sale, they have been successful in working them out with minimal charge-offs [32] Question: Is there a capital level you would like to reach before considering another acquisition? - Management stated they are at pre-merger levels and feel comfortable moving forward without needing outside capital for future deals [35] Question: How would potential Fed rate cuts impact NIM? - Management noted that while rate cuts could negatively impact net interest income, they would continue to push on the loan side to offset some of that impact [42][43] Question: What initiatives are in place for growth in the wealth management business? - Management highlighted opportunities for growth through talent acquisition and expansion in key markets [48][49] Question: How has the sentiment of commercial clients changed recently? - Management reported that the pipeline is the largest since the merger, indicating positive sentiment among commercial clients [52] Question: What is the current line utilization rate on the commercial portfolio? - Management stated that line utilization rates have remained stable and modest [58] Question: Are you ready for another transaction a year after the Codorus Valley deal? - Management expressed that they are looking for opportunities that add value and are focused on best practices for future acquisitions [66][67]

SAN DIEGO, July 23, 2025 (GLOBE NEWSWIRE) -- Endeavor Bancorp (OTCQX: EDVR) (the "Company" or "Bancorp"), the holding company for Endeavor Bank (the "Bank"), today reported net income of $1.07 million, or $0.25 per diluted share, for the second quarter of 2025, compared to $1.36 million, or $0.32 per diluted share, for the first quarter of 2025, and $760,000, or $0.18 per diluted share, for the second quarter of 2024. All financial results are unaudited. "Our second quarter results reflect the strength of o ...

All right, congrats on the quarter. I want to dig into it. Uh, you expanded net interest margin by quite a few basis points.What was the driver of that. You know, the core driver of of the seven basis point increase in net interest margin, which was really strong, was a couple of things. Number one, we've got a short duration securities portfolio.So, that's repricing more quickly than most. So, we're getting those cash flows quicker. The other thing is we've had success in driving down deposit costs.And so ...

Financial Data and Key Metrics Changes - The company reported a net income of $77.4 million for Q2 2025, an 11.4% increase compared to $69.5 million for Q1 2025 [6][14] - Diluted earnings per share increased by 12.2% to $1.10 for Q2 2025 from $0.98 in Q1 2025 [6] - Net interest margin increased from 2.25% in Q1 2025 to 3.27% in Q2 2025, attributed to a lower cost of funds [14][17] - Total deposits increased by $189 million or 3.8% annualized during Q2 2025 [12] Business Line Data and Key Metrics Changes - Total gross loans increased by $432 million or 8.9% annualized, driven by increases in commercial loans, commercial real estate loans, and residential loans [6][12] - Noninterest income for Q2 2025 increased by $4.2 million to $15.4 million compared to $11.2 million in Q1 2025 [15] - Noninterest expense increased by 4% to $89.1 million in Q2 2025 from $85.7 million in Q1 2025 [16] Market Data and Key Metrics Changes - The average loan-to-value ratio for commercial real estate loans remained at 49% as of June 30, 2025 [9] - Nonaccrual loans were 0.9% of total loans as of June 30, 2025, increasing by $19.6 million compared to Q1 2025 [11] Company Strategy and Development Direction - The company revised its 2025 loan growth guidance to 3% to 4% from a previous range of 1% to 4% due to strong Q2 loan growth [7] - The management emphasized a balanced growth in both commercial and industrial (C&I) loans and commercial real estate [29] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic landscape, noting potential impacts from external factors such as terrorism and CPI adjustments [29] - The company is optimistic about maintaining a strong pipeline for the second half of the year [29] Other Important Information - The effective tax rate for Q2 2025 was 19.56%, with guidance updated to between 18.5% to 19% due to recent California tax legislation [17] - The company has an unused borrowing capacity from the Federal Home Loan Bank of $7 billion and the Federal Reserve Bank of $1.5 billion as of June 30, 2025 [13] Q&A Session Summary Question: Impact of California state tax change on income tax rate - The CFO confirmed a direct impact of $3.4 million due to writing off a portion of the deferred tax asset [20] Question: Allowance for Credit Losses (ACL) refill drivers - The CFO explained that the refill was primarily driven by economic factors in Moody's model rather than specific portfolio issues [21][23] Question: Loan growth guidance and pipeline outlook - Management indicated a strong pipeline for the second half of the year but maintained caution regarding potential loan demand drops [29][30] Question: Federal Home Loan Bank borrowing details - The CFO clarified that the recent borrowings were mainly two-week borrowings at a rate of approximately 4.6% [32] Question: Increase in classified loans - The CFO noted that the increase was due to one commercial relationship experiencing cash flow issues, but they are expected to catch up [37][39]

Financial Data and Key Metrics Changes - The company reported a net income of $77.4 million for Q2 2025, an 11.4% increase compared to $69.5 million for Q1 2025 [6][14] - Diluted earnings per share increased 12.2% to $1.10 for Q2 2025 from $0.98 in Q1 2025 [6] - Net interest margin increased from 2.25% in Q1 2025 to 3.27% in Q2 2025, attributed to a lower cost of funds [14][16] - Total gross loans increased by $432 million or 8.9% annualized during Q2 2025 [6][12] Business Line Data and Key Metrics Changes - Commercial loans increased by $196 million, commercial real estate loans by $202 million, and residential loans by $69 million, while construction loans decreased by $32 million [6] - Noninterest income for Q2 2025 increased by $4.2 million to $15.4 million compared to $11.2 million in Q1 2025, driven by changes in unrealized losses on equity securities and higher foreign exchange income [15] - Noninterest expense increased by 4% to $89.1 million in Q2 2025 from $85.7 million in Q1 2025 [15] Market Data and Key Metrics Changes - Total deposits increased by $189 million or 3.8% annualized during Q2 2025, primarily due to increases in core deposits and time deposits [12] - As of June 30, 2025, total uninsured deposits were $8.7 billion, representing 43.3% of total deposits [12] Company Strategy and Development Direction - The company revised its 2025 loan growth guidance to 3% to 4% from a previous range of 1% to 4% due to strong loan growth in Q2 2025 [7] - The company continues to monitor its commercial real estate loans, with an average loan-to-value ratio of 49% as of June 30, 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline for the second half of the year, citing balanced growth in both commercial and industrial sectors [27] - The company is cautious about potential economic factors that could impact loan demand, including inflation and geopolitical issues [27] Other Important Information - The effective tax rate for Q2 2025 was 19.56%, with guidance updated to between 18.5% to 19% due to recent California tax legislation [16] - The company has an unused borrowing capacity from the Federal Home Loan Bank of $7 billion and the Federal Reserve Bank of $1.5 billion as of June 30, 2025 [13] Q&A Session Summary Question: Impact of California state tax change on income tax rate - Management confirmed a direct impact of $3.4 million from writing off a portion of the deferred tax asset due to lower state apportionment [19] Question: Allowance for Credit Losses (ACL) refill drivers - The refill was primarily driven by economic factors in Moody's model, with an increase in unemployment and loan growth contributing to the adjustment [20][22] Question: Loan growth guidance and pipeline outlook - Management indicated a strong pipeline for the second half of the year but maintained caution regarding economic conditions that could affect loan demand [27][28] Question: Increase in classified loans - The increase was attributed to one commercial relationship facing cash flow issues, with expectations for the borrower to become current by the end of Q3 [34][35]

Financial Data and Key Metrics Changes - Net income for the second quarter totaled $9.3 million or $0.52 per share, including a $2.9 million after-tax employee retention tax credit refund [3][7] - Net interest income increased by $1.2 million, supported by solid loan growth and stable earning asset yields, with net interest margin (NIM) rising to 2.92% [3][4] - Adjusted net income, excluding the ERC refund, would have been $6.5 million or $0.36 per diluted share [8] Business Line Data and Key Metrics Changes - Loan held for investment grew by $92 million or 12% on an annualized basis, with strong results from the mortgage origination business, which originated $120 million in the second quarter [3][4] - Total second quarter loan originations reached $183 million at a blended yield of 6.76% [4] - Noninterest expenses increased by $2 million to $20.5 million, with $1.2 million related to the ERC refund [9][10] Market Data and Key Metrics Changes - Total deposits increased at a 6% annualized rate to $3.2 billion, with growth in non-interest bearing deposits and CDs offsetting a decline in money market accounts [12] - The loan-to-deposit ratio exceeded 100%, indicating a need for careful management of loan growth and deposit acquisition [36][40] Company Strategy and Development Direction - The company is focused on resolving nonperforming loans while continuing to grow its loan portfolio, indicating a dual-path strategy [28][31] - Management is optimistic about maintaining loan growth despite credit quality challenges, with a healthy pipeline of loans [31][40] - The company is enhancing credit quality control, particularly in bridge and gap financing, to mitigate risks [22][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of funding costs and potential increases in yields on earning assets, which could support margin improvements [5][9] - The company anticipates continued loan growth, albeit at a more moderate pace, and is actively managing its nonperforming assets [4][28] - Management acknowledged the competitive landscape for deposits and the need to balance loan growth with deposit acquisition strategies [40][42] Other Important Information - The tangible book value per share increased to $25.11, with all capital ratios remaining above regulatory well-capitalized levels [13] - The company expects noninterest expenses to normalize to an annualized run rate of about $18 million in future quarters [10][47] Q&A Session Summary Question: Discussion on capital and buyback program - Management views the stock as attractive at current trading prices and has sufficient liquidity to support both the buyback program and credit workouts [20][21] Question: Asset quality and loan downgrades - Management provided details on loans downgraded to substandard and special mention, emphasizing a conservative approach to credit quality control [22][25] Question: Sustainability of dual path strategy - Management believes it can continue to grow loans while addressing asset quality issues, with a healthy pipeline and ongoing focus on resolving nonperforming loans [28][31] Question: Loan and deposit growth outlook - Management is actively managing the loan-to-deposit ratio and expects to see organic deposit growth, with potential loan sales to alleviate pressure [40][42] Question: Deposit cost expectations - Management anticipates stabilization of deposit costs, with a focus on maintaining competitive rates to attract deposits [43][44] Question: Tax rate outlook - The tax rate for the quarter was around 28%, and management expects this to be a reasonable run rate going forward, with minor impacts from changes in California tax law [69][70]