In part one of Dan Yates’ story, he traced his entrepreneurial journey from a backyard fruit seller to the founder and leader of San Diego’s Endeavor Bank. In this second part of the discussion with him, he describes his holistic approach to financial services, comprising both business strategy and community-driven relationships. His successful implementation of it has shaped Endeavor’s growth since its inception.
A Bank Owned by its Community: Endeavor’s Unique Foundation
When Yates was approached by Matthew Rattner, co-founder of Karl Strauss Brewing Co., with a proposal to start another bank, his initial reaction was, unsurprisingly, “No.” He saw that the regulatory landscape at the time made bank formation a daunting task.
“There’s a good reason why we’ve had a decade of no banks being formed in San Diego or California,” Yates explains, describing the business climate at that time. Rattner’s persistence, however, coupled with a market that was ripe for community banking, eventually swayed him.
Yates agreed to build Endeavor Bank under one condition: no single entity would own more than 70 percent of the bank, ensuring the community had a significant stake in its success.
This foundation proved crucial. In just 120 days, Endeavor raised $26 million from over 600 local business owners, a testament to Yates’ vision of creating a bank owned by the business community it served. “We wanted to have the largest CEO club in town,” he emphasizes, reducing minimum ownership to $25,000 to democratize the investment process. This foundational decision continues to shape the bank’s mission and client base today.
Endeavor Bank’s “Collaboration Over Competition” Approach
One of the most unique elements of Endeavor Bank is its CEO peer groups. As Yates describes, these groups create an environment in which business owners can share their deepest challenges—concerns they often wouldn’t voice to anyone but a close friend or spouse. The goal is to foster an atmosphere of trust and collaboration, allowing business owners to support each other and seek help from Endeavor’s team of consultants.
“Most business owners are grappling with something at different times in their history that they need help with,” Yates says. Yet many are hesitant to ask their bankers for assistance. By creating peer groups, Yates has opened a new avenue for clients to engage with the bank, making it a true partner in their business success.
Building Trust with Endeavor’s Consultative Bankers
Yates and his team recognized that business owners can be reluctant to turn to their bankers for advice, often seeing them as transactional partners rather than trusted advisors. Endeavor’s goal is to change that perception by training its bankers to become consultants who dig into client business challenges. That consultative approach sets Endeavor Bank apart from competitors.
“Our interests are aligned,” Yates says.
This empathetic, partnership-driven model worked not only in that instance but elsewhere as well. It has won the loyalty of many business owners, who see Endeavor as more than just a bank—they see it as a critical partner in their success.
Dan Yates, discusses the training of bankers to be business consultants.
Endeavor’s Approach to Client Conversations
In one particular business panel discussion, a construction company owner admitted she was losing money but hadn’t told her banker, fearing that her credit line would be pulled. Another banker on the forum chided her: “You have a legal obligation to tell us. When you do, we will transfer your loan to special assets and most likely cancel it.”
This reaction confirmed her worst fears.
Yates, however, took a different approach. He explained to her: “It’s in my best interest that you survive and prosper.” He sought to have her understand that if she went bankrupt, the bank would lose as well.
His response shifted the room. Other business owners, reluctant to speak, began raising their hands, directing their questions specifically to Yates.
By showing empathy and an understanding of their fears, Yates earned their trust, making them feel comfortable enough to open up.
The takeaway, therefore (according to Yates), is clear: The key to fostering long-term relationships is showing clients that the bank cares about more than just their transactions.
Dan Yates discusses how he earned the trust of a room of business owners.
Mentoring a New Generation of Bankers
Yates’ commitment to mentorship runs deep, both within the bank and through his work in the community. At Endeavor, the training program goes beyond traditional banking skills to encompass abilities that include emotional intelligence and consultative problem-solving. “We accompany them on calls to prospective and current clients,” Yates explains, emphasizing the hands-on, personalized training that defines Endeavor’s culture.
This philosophy extends into Endeavor’s use of the Entrepreneurial Operating System (EOS), a management framework that ensures all employees, from new hires to senior executives, are aligned under a problem-solving approach. EOS fosters a culture of continuous improvement, helping employees solve client issues as they arise in real time.
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Endeavor Bank’s Growth: A Model for Community Banking
Despite the challenges of launching Endeavor Bank during turbulent times—including the onset of the COVID-19 pandemic—the bank has thrived. Yates proudly notes that by the end of its third year, Endeavor was profitable, hitting a milestone that many de novo banks fail to reach.
Today, Endeavor is on its way to surpassing $550 Million in assets, beating Yates’ intended timeline by year-end.
What is Yates most proud of? It’s not the numbers or the growth, but the internal strength of its financial professionals. “We’re mentoring a generation of bankers into a culture of being management consultants and bankers under the same roof,” he says. He sees his staff’s ability to navigate the dual roles of financial advisor and business consultant as the cornerstone of Endeavor’s success.
Yates’ Bank Transformation Legacy
Yates’ journey with Endeavor Bank reflects his deep belief in the power of relationships—both within the bank and with its clients.
His approach is transforming the way banking is done, showing that with the right mix of empathy, strategy, and vision, a bank can be much more than a place to hold money. It can be a partner in growth, a consultant in tough times, and a community-owned asset that creates lasting value.
To watch the full Professional Profile interview with Dan Yates, click the link below:
Watch Dan Yates, Full Interview
If you missed it, you can see Part 1 of Dan Yates’ Professional Profile.
