Debt finance

Endeavor Bancorp issues $15,000,000 of subordinated debt – Finance Monthly

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

Net debt proceeds will be retained by Endeavor Bancorp for the time being after payment of operating expenses. Endeavor Bancorp is expected to become the Bank’s bank holding company, subject to obtaining shareholder and regulatory approvals. Assuming this happens, Endeavor Bancorp should use the funds for general corporate purposes. The debt is guaranteed by the Bank, but the Bank will be released from its guarantee when Endeavor Bancorp becomes the Bank’s bank holding company.

The principal is due on March 15, 2032 and the debt is not repayable before March 15, 2027, except upon the occurrence of certain specified events. Interest only is payable in arrears prior to maturity, every six months during the fixed interest rate period and quarterly thereafter. The interest rate is fixed until March 15, 2027 at 5.00%, after which it floats according to the three-month SOFR (provided, however, that in the event that the three-month SOFR is less than zero, the three-month SOFR will be deemed to be nil) plus 344 basis points.

CEO Dan Yates said, “We are delighted to have the opportunity to raise our capital, on terms favorable to all of our stakeholders. This new sub-debt will increase our legal lending limit to allow 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 stay 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 of directors, local founders, local owners, and local customer 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 origination and executive administration office in Carlsbad. Endeavor Bank provides traditional business banking services across a wide range of industries and specialties. Unique to the bank is its consultative banking approach which pairs commercial clients with Endeavor Bank’s senior management. Together, we develop strategies and provide resources that solve problems, plan for the future, and help customers grow revenue and profits. Visit www.bankendeavor.com for more information.

EDVR shareholders

With many of our shareholders transferring their EDVR shares to their brokerage firms, as well as ongoing transactions, the Bank may not have the most recent shareholder contact details. If you are an EDVR shareholder and would like to receive information via a faster method, please complete the Shareholder Communication Preference Form on our website: https://www.bankendeavor.com/investor-relations so that we can keep you up to date with EDVR news and invite you to various shareholder networking events throughout the year.

Forward-looking statements

This press release contains “forward-looking statements”, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the directors and senior officers of the Bank (collectively, the ” direction “). , as well as the assumptions used and the information currently available to the Bank’s Management. All statements regarding the Bank’s business strategy and the Bank’s management’s plans and objectives 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 respect to relates to the Bank or the Bank’s management, are intended to identify forward-looking statements. Although the Bank believes that the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee that these expectations will prove to be correct. The important factors that could cause actual results to differ materially from the Bank’s expectations (“catuages”) are the effects of the COVID-19 pandemic and related government measures on the Bank and its customers, losses on loans, changes in interest rates, loss of key personnel, lower loan limits and capital than competitors, regulatory restrictions and Bank oversight, safe and efficient implementation of the technology, risks related to the local and national economy, the Bank’s implementation of its business plans and the management of growth, loan performance, interest rates and regulatory matters, the effects trade, monetary and fiscal policies, inflation and changes in accounting policies and practices. As conditions change, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those described as anticipated, believed, estimated, expected or planned. The Bank does not intend to update these forward-looking statements.

contacts

(858) 230.5185

Dan Yates, CEO

[email protected]

(858) 230.4243

Steve Sefton, President

[email protected]