Endeavor Bank Reports 2020 Year-End Financial Results

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SAN DIEGO – () – As of December 31, 2020, the Bank’s total assets (OTC Pink: EDVR) stood at $ 390 million, reflecting substantial growth since December 31, 2019 of $ 265 million, or 211%. Total deposits stood at $ 246 million as at December 31, 2020, reflecting growth of $ 146 million or 145% from year-end 2019, and total loans stood at $ 282 million. of dollars as at December 31, 2020, reflecting growth of $ 181 million or 179% compared to December 31, 2019 Between March and August 2020, the Bank granted more than 850 Paycheck Protection Program (PPP) loans for a total of $ 175 million. At the end of the year, the total PPP loan balance stood at $ 118 million. The fees accrued from the establishment of PPP loans significantly increased revenues and ultimately enabled the Bank to achieve profitability.

Year-end financial results ($ 000)

December 31, 2020

December 31, 2019

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Total assets

$ 390,030

$ 125,421

$ 264,609 (211%)

Total loans

$ 281,779

$ 100,871

$ 180,908 (179%)

Total deposits

$ 246,478

$ 100,750

$ 145,728 (145%)

Total fairness

$ 26,843

$ 17,569

$ 9,274 (53%)1

Net income (YTD)

$ 1,416

($ 3,339)

$ 4,755

1 The change in total equity includes the net proceeds from the secondary capital offering of just under $ 8 million.

For the complete detailed financial statements covering the results of operations of the Bank, please refer to the Appeal Report filed with the FDIC at the following address: https://www7.fdic.gov/idasp/advSearchLanding.asp (Enter the name of the Endeavor bank and click Search).

Dan Yates, CEO, said, “Participation in the PPP Cares Act loan program has been one of the milestones in our business career. The federal government chose the banking system to provide assistance to working families and we are proud to have contributed. Endeavor has granted over 850 P3 loans in record time to struggling businesses to help them with their payroll, saving countless jobs. Ed Carpenter of Carpenter & Company, one of the country’s leading banking consultants, said Endeavor Bank ranks among the top five national banks for providing PPP support relative to the size of our assets.

Steve Sefton, Chairman, added: “The PPP loan program has been as beneficial to banks’ growth and profits as it has supported employment. Endeavor was trading profitably up to a year ahead of schedule thanks to commissions received on PPP loans. ”

Sefton also noted, “In addition to achieving profitability and exceeding expectations for participating in P3s, another important measure of a bank’s success is credit quality. So far, in these difficult times, Endeavor has been successful in maintaining credit quality in terms of delinquent loans, write-offs and other measures of loan quality. Endeavor’s performance to date in this area is a testament to the strength of our credit process and business model, which requires our bankers to maintain close relationships with clients in order to better consult and assist them in times of crisis. financial. ”

Yates added, “This is also a time to celebrate our success. Our growth and profitability are a tribute to our board of directors, our organizers, our shareholders, our professional team of highly qualified bankers, our business model, our dedication to our local business community, especially during a time of great need, but most of it all, to the acceptance of our clients who have embraced and appreciated our advisory banking brand.

The Board of Directors of the Bank has already indicated in the offer and proxy documents that once the Bank is no longer considered a de novo institution by the relevant regulatory authorities, the board intended to grant non-qualifying options to qualifying Bank organizers, including directors, to purchase the common shares of the Bank at an exercise price equal to the fair market value at time of award.

The Bank was no longer considered a de novo institution on January 21, 2021. For this reason, in accordance with the Bank’s 2017 stock-based incentive plan, on February 25, 2021, the Board granted 131,250 ineligible options to certain organizers at an exercise price of 9.40 $ the share. The number of options granted to the organizers (all of whom have advanced seed capital and business assistance to start the bank) was determined by the board at its discretion. In making this decision, the board considered the amount of funds put at risk by each organizer, the length of time those funds were put at risk and other factors considered relevant by the board.

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 of directors, local founders, local owners, and local client relationships in the San Diego metro market and surrounding areas.

Based in downtown San Diego in the iconic Symphony Towers building, the bank also operates a loan production and executive administration office in Carlsbad. Endeavor Bank provides banking services to traditional businesses in a wide range of industries and specialties. Its advisory banking approach is unique to the bank, 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 grow revenue and profits. Visit www.bankendeavor.com for more information.

Forward-looking statements

This press release contains “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 beliefs of the directors and officers of the Bank (collectively, “the management ”), as well as the assumptions made and the information currently available to the Bank’s management. All statements regarding 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 of similar meaning, with regard to the Bank or the Bank’s management, aim to identify forward-looking statements. Although the Bank believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance 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, the Bank’s implementation of its business plans and growth management, loan performance, interest rates and regulatory issues, the effects of trade, monetary and fiscal policies, the 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 prove to be incorrect, actual results may differ materially from those described as anticipated, assumed, estimated, expected or expected. . The Bank does not intend to update these forward-looking statements.



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