Endeavor Bancorp Reports Strong Q3 Earnings and Improved Net Interest Margin
News related to:Endeavor Bancorp · 3 min read
SAN DIEGO, Oct. 26, 2026 /CourierPR/ -- Endeavor Bancorp, the holding company for Endeavor Bank, reported a record net income of $2.12 million, or $0.44 per diluted share, for the third quarter of 2026. This marked a significant improvement from the $1.89 million, or $0.40 per diluted share, reported in the second quarter of 2026, and a substantial increase from the $1.73 million, or $0.36 per diluted share, in the third quarter of 2025. All financial results are unaudited.
The third quarter of 2026 included a $525,000 provision for credit losses, reflecting the company's continued prudent credit risk management. This was a decrease from the $651,000 provision in the second quarter of 2026 and a reduction from the $396,000 provision in the third quarter of 2025. Core pre-tax earnings, excluding taxes and loan loss provisions, were $3.54 million in the third quarter of 2026, an increase of $240,000, or 7.3%, compared to $3.30 million in the preceding quarter, and up $687,000, or 24.0%, from $2.86 million in the third quarter of 2025.
Total interest income on loans and bank deposits and investments was $12.9 million, an increase of $525,000, or 4.2%, compared to the $12.4 million earned in the preceding quarter. Total interest expenses increased modestly by $53,000 during the same timeframe. Net interest income was $9.1 million in the third quarter of 2026, which was a 5.5% increase compared to the preceding quarter and a 17.9% increase compared to the third quarter of 2025.
The Company’s net interest margin was 4.41% in the third quarter of 2026, unchanged from the prior quarter and a 32 basis point increase compared to 4.09% in the third quarter of 2025. The yield on total earning assets during the third quarter of 2026 was 6.30%, compared to 6.37% in the preceding quarter, and 6.47% in the third quarter of 2025. The cost of funds decreased to 2.04% in the third quarter, compared to 2.12% in the second quarter of 2026, and decreased compared to 2.53% in the third quarter of 2025.
Non-interest income was $298,000 in the third quarter of 2026, a decrease of $59,000, or 16.5%, compared to the second quarter of 2026, and a decrease of $103,000, or 26.0%, compared to the third quarter of 2025. Non-interest expense was $5.8 million in the third quarter of 2026, an increase of $174,000 compared to the second quarter of 2026, and an increase of $584,000 compared to the third quarter of 2025. Operating efficiency continued to improve, with the efficiency ratio declining to 62.1%, compared with 63.2% in the second quarter and 64.7% in the third quarter of 2025.
The Company’s annualized return on average equity for the third quarter of 2026 was 12.28%, an increase compared to the second quarter of 2026 at 11.40% and decreased compared to 13.58% in the third quarter of 2025. The annualized return on average assets for the third quarter of 2026 was 1.01% compared to the preceding quarter at 0.95%, and increased compared to 0.90% for the third quarter of 2025.
Total assets increased by $11.9 million, or 1.5%, during the third quarter of 2026 to $835.0 million at September 30, 2026, compared to $823.0 million at June 30, 2026, and increased $74.7 million, or 9.8%, compared to $759.3 million at September 30, 2025. Balance sheet liquidity remains strong with cash balances of $147.8 million, which represents 17.7% of total assets as of September 30, 2026. The Company’s investment securities increased $1.3 million during the third quarter of 2026 to $36.4 million as of September 30, 2026, representing 4.4% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $231.2 million as of September 30, 2026.
Total loans outstanding decreased $19.9 million, or 3.0%, during the quarter to $644.