Endeavor Bancorp Issues $15,000,000 in Subordinated Debt

Rhea-AI Summary

Endeavor Bancorp (OTC Pink: EDVR) announced the successful issuance of $15,000,000 in subordinated debt through an institutional private placement, facilitated by Performance Trust Capital Partners, LLC. The funds will be retained for operational expenses and are intended for general corporate purposes once Endeavor Bancorp becomes the bank holding company for Endeavor Bank. The fixed interest rate is set at 5.00% until March 15, 2027, after which it will float based on the Three-Month Term SOFR. CEO Dan Yates noted the positive implications for capital and lending limits.

Positive

• Successfully issued $15 million in subordinated debt, enhancing capital.
• Expected increase in lending capacity for the bank, allowing it to better serve borrowers.
• Fixed interest rate of 5.00% until March 15, 2027, is favorable for financial planning.

Negative

• None.

SAN DIEGO--(BUSINESS WIRE)-- Endeavor Bancorp, a wholly-owned subsidiary of Endeavor Bank (“Bank”) (OTC Pink: EDVR), announced today that it had successfully issued $15,000,000 in subordinated debt in an institutional private placement. Performance Trust Capital Partners, LLC acted as placement agent. Breakwater Law Group, LLP served as counsel to Endeavor Bancorp, and Hunton Andrews Kurth LLP served as counsel to Performance Trust Capital Partners, LLC.

The net proceeds of the debt will be retained by Endeavor Bancorp for the time being after payment of operational expenses. Endeavor Bancorp is expected to become the bank holding company for the Bank, subject to receipt of shareholder and regulatory approvals. Assuming this occurs, Endeavor Bancorp is expected to use the funds for general corporate purposes. The debt is guaranteed by the Bank, but the Bank will be released from its guaranty when Endeavor Bancorp becomes the bank holding company for the Bank.

Principal is due on March 15, 2032, and the debt is not redeemable until March 15, 2027, except on the occurrence of certain specified events. Interest only is payable in arrears prior to the due date, every six months during the fixed interest rate period and quarterly thereafter. The interest rate is fixed until March 15, 2027 at 5.00%, and thereafter floats based on the Three-Month Term SOFR (provided, however, that in the event Three-Month Term SOFR is less than zero, Three-Month Term SOFR shall be deemed zero) plus 344 basis points.

CEO Dan Yates commented, “We are pleased to have the opportunity to increase our capital, at favorable terms for all of our stakeholders. This new sub-debt will increase our legal lending limit to enable us to better serve borrowers. The Bank is currently well capitalized, and when Endeavor Bancorp becomes our bank holding company, the sub-debt will help us to remain well capitalized as we continue to implement our growth strategy.”

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 marketplace and its surrounding areas.

Headquartered in downtown San Diego in the landmark Symphony Towers building, the Bank also operates a loan production and executive administration 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.

EDVR Shareholders

With many of our shareholders transferring their EDVR shares to their brokerage companies, along with ongoing trading taking place, the Bank may not have the most current shareholder contact information. If you are an EDVR shareholder and would like to receive information via a more timely method, please complete the Shareholder Communication Preference Form on our website: https://www.bankendeavor.com/investor-relations so we can keep you updated on EDVR news, and invite you to various shareholder networking events throughout the year.

Forward-Looking Statements

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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220317006016/en/

(858) 230.5185

Dan Yates, CEO

dyates@bankendeavor.com

(858) 230.4243

Steve Sefton, President

ssefton@bankendeavor.com

Source: Endeavor Bank

FAQ

What is the amount of subordinated debt issued by Endeavor Bancorp (EDVR)?

Endeavor Bancorp announced the issuance of $15,000,000 in subordinated debt.

What is the interest rate for the subordinated debt issued by EDVR?

The fixed interest rate for the subordinated debt is 5.00% until March 15, 2027.

When is the principal due for the subordinated debt from EDVR?

The principal for the subordinated debt is due on March 15, 2032.

What will Endeavor Bancorp do with the proceeds from the subordinated debt?

The proceeds will be used for operational expenses and general corporate purposes.

What is the significance of the subordinated debt for EDVR's growth strategy?

It is expected to enhance the bank's capital position and increase its lending capacity.