SAN DIEGO--(BUSINESS WIRE)--Endeavor Bank (OTC Pink: EDVR) supports local businesses as they navigate ongoing COVID challenges during the third quarter.
Endeavor Bank continues to partner with the local business community as they work through the ongoing challenges of the COVID-19 pandemic. Endeavor Bank continued to process and fund SBA Paycheck Protection Program (PPP) loans until the expiration of the program on August 8, 2020. In total, the Endeavor Bank team originated over 850 PPP loans totaling over $175 million, and generating over $5.5 million in fee income that will be recognized over the life of the PPP loans. The team is now focused on assisting its PPP borrowers who are ready to apply for loan forgiveness under the program. As PPP borrowers utilize PPP funds to supplement decreased revenues and fund their operations, bank deposits and assets are expected to decline.
Bank CEO Dan Yates stated, “We are so proud of the ongoing work our team continues to accomplish during this difficult time in history. The impact COVID-19 has had on our clients has created one of the most difficult periods in memory for those of us in the banking industry. The silver lining is that this crisis has allowed us to come together as a team to serve our community.”
Bank President, Steve Sefton, added, “Our role in originating Paycheck Protection loans, and helping clients identify other means to weather this economic downturn, has afforded us with the opportunity to make a significant positive contribution to our clients at a time when many local businesses were concerned about the viability of their companies. This commitment to our community and to our clients is also reflected in our financial results this quarter, which continue to be strong.”
Ed Carpenter, Chairman of Carpenter & Company and an influential banking consultant, recently applauded Endeavor Bank as truly “in touch” with the business community at its annual directors’ retreat. Carpenter stated, “The bank achieved impressive performance in its PPP loan program. According to recent data from S&P Global Market Intelligence, Endeavor’s 850 PPP loans ranked it among the top 5 banks nationally in the ratio of PPP Loans outstanding as a percent of total loans. Endeavor Bank ranked first in this ratio among all California banks.”
Sefton further stated, “Endeavor is growing not only as a result of participating in the PPP program, but also from expanding our core client base. We are converting businesses introduced to the bank through the PPP program to core clients and acquiring new customers outside the PPP program. The bank is performing very well during these challenging times.”
As of September 30, 2020, total assets equaled $361 million, reflecting a $6 million decrease from the $367 million reported at the end of the second quarter. Total deposits equaled $189 million at the end of September, also reflecting a decline of about $6.4 million during the third quarter. Total loans equaled just under $301 million, reflecting growth during the third quarter of $17 million. Declines in deposits and assets should continue in the fourth quarter, and into next year. To date, the Bank has received 24 deferral requests with respect to non-PPP loans, all of which were granted, and all but two of which have resumed their original payments on their loans. The Bank has not reported any past due loans to date.
CCO Scott Parker stated, “Loan pipelines remain strong and healthy in the fourth quarter. While we are cognizant of the pandemic’s potential to curb the number of credit-worthy borrowers, we will continue to make new loans if we are comfortable with the underlying cash flow, balance sheet, and pricing.”
About Endeavor Bank
Endeavor Bank is primarily owned and operated by San Diegans for San Diego businesses and their owners. The bank’s focus is local: local decision-making, local board, local founders, local owners, and relationships with local clients in the San Diego metropolitan market place and its surrounding areas.
Headquartered in downtown San Diego in the landmark Symphony Towers building, the bank also operates a loan production office in Carlsbad. Endeavor Bank provides traditional business banking services across a broad spectrum of industries and specialties. Unique to the bank is its consultative banking approach that partners business clients with Endeavor Bank’s senior management. Together, we build strategies and provide resources that solve problems, plan for the future, and help clients’ efforts to grow revenues and profits. Visit www.bankendeavor.com for more information.
This press release includes “forward-looking statements,” as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the Bank’s directors and executive officers (collectively, “Management”), as well as assumptions made by and information currently available to the Bank’s Management. All statements regarding the Bank’s business strategy and plans and objectives of Management of the Bank for future operations, are forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar meaning, as they relate to the Bank or the Bank’s Management, are intended to identify forward-looking statements. Although the Bank believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Bank’s expectations (“cautionary statements”) are the effects of the COVID-19 pandemic and related government actions on the Bank and its customers, loan losses, changes in interest rates, loss of key personnel, lower lending limits and capital than competitors, regulatory restrictions and oversight of the Bank during its “de novo” phase, the secure and effective implementation of technology, risks related to the local and national economy, the Bank's implementation of its business plans and management of growth, loan performance, interest rates, and regulatory matters, the effects of trade, monetary and fiscal policies, inflation, and changes in accounting policies and practices. Based upon changing conditions, if any one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, actual results may vary materially from those described as anticipated, believed, estimated, expected or intended. The Bank does not intend to update these forward-looking statements.