CORRECTING and REPLACING Evans Bancorp Reports Record Net Income for 2019

CORRECTION...by Evans Bancorp

HAMBURG, N.Y.--()--In the press release dated Jan. 30, 2020, non-interest income, tax expense, net income, earnings per diluted share, and all related information has been updated to reflect the change in timing of an historic tax credit transaction from the fourth quarter 2019 to the first quarter of 2020. 

The corrected release reads: 

EVANS BANCORP REPORTS RECORD NET INCOME FOR 2019

Evans Bancorp, Inc. (the “Company” or “Evans”) (NYSE American: EVBN), a community financial services company serving Western New York since 1920, today reported its results of operations for the fourth quarter and year ended December 31, 2019.

FOURTH QUARTER AND FULL YEAR 2019 HIGHLIGHTS (compared with prior-year period unless otherwise noted)

  • Record annual net income of $17.0 million, up 4%
  • Net interest income increased 8% to $52 million in 2019 driven by higher loan balances
  • Insurance service and fee revenue increased 14% to $10.7 million during 2019
  • Average demand deposits grew 10% in the fourth quarter
  • Entered into an agreement to acquire Fairport Savings Bank

For the full year 2019, net income increased 4% to $17.0 million, or $3.42 per diluted share, from $16.4 million, or $3.32 per diluted share, in 2018. The increase reflected higher net interest income, largely due to an expanded commercial loan portfolio, and higher fee-based business income. The return on average equity was 12.08% for 2019, compared with 13.20% in 2018.

Net income was $3.7 million, or $0.75 per diluted share, in the fourth quarter of 2019, compared with $5.2 million, or $1.04 per diluted share, in the third quarter of 2019 and $4.5 million, or $0.90 per diluted share, in last year’s fourth quarter. The decrease from the linked quarter was the result of lower net interest income reflecting lower interest rates and seasonally lower insurance fee revenue. Return on average equity was 10.16% for the fourth quarter of 2019, compared with 14.29% in the third quarter of 2019 and 13.86% in the fourth quarter of 2018.

2019 was an outstanding year for the organization. Our performance demonstrated solid growth and the success of our strategic focus as well as a continued commitment to building and strengthening the business for the long-term,” said David J. Nasca, President and CEO of Evans Bancorp, Inc. “We grew and rebalanced our deposit portfolio mix, continued to drive strong loan growth and increased non-interest income. Operations and offerings in insurance, employee benefits, cash management and municipal services were strengthened and bolstered fee-based business income.”

2020 is an important milestone in Evans history, as this year marks a century of serving Western New York. Stable, prudent and strategic management has enabled us to effectively serve all our stakeholders, associates, shareholders, clients and the community over this long history. We believe this, along with a relationship focus and strong cultural foundation, provides sustainability and excellent prospects for the continued growth and success of our community based financial organization.”

On December 19, 2019, Evans entered into an agreement to acquire Fairport Savings Bank (“FSB”). Based on information as of September 30, 2019, the combined company will have approximately $1.8 billion in total assets, including $1.5 billion in total loans and $1.5 billion in total deposits. The acquisition is expected to close in the second quarter of 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4Q 2019

 

 

3Q 2019

 

 

4Q 2018

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

16,028

 

 

$

16,845

 

 

$

15,309

Interest expense

 

 

3,236

 

 

 

3,224

 

 

 

2,936

Net interest income

 

 

12,792

 

 

 

13,621

 

 

 

12,373

(Credit) provision for loan losses

 

 

(122)

 

 

 

(431)

 

 

 

(276)

Net interest income after provision

 

$

12,914

 

 

$

14,052

 

 

$

12,649

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income decreased $0.8 million, or 6%, from the third quarter of 2019, but increased $0.4 million, or 3%, from the prior-year fourth quarter. The decrease from the trailing quarter was driven by a decline in loan yields as a result of the re-pricing of variable rate loans tied to the Company’s prime rate after another Federal Reserve rate cut. The third quarter of 2019 also included $0.2 million of interest related to the recovery of a single commercial loan that was previously written-off. The increase from the prior-year fourth quarter reflects growth in average commercial loans, including commercial real estate and commercial and industrial loans, which were $996 million, up $83 million.

Fourth quarter net interest margin of 3.67% decreased 27 basis points from the 2019 third quarter and 3 basis points from the fourth quarter of 2018. Excluding the interest related to the third quarter loan recovery, net interest margin decreased 22 basis points, reflecting the Federal Reserve’s decrease of the fed funds rate. The cost of interest-bearing liabilities remained 1.24% in the fourth quarter, the same as the third quarter of 2019 and compared with 1.14% in the fourth quarter of 2018.

The $0.1 million release of allowance for loan losses reflects improved asset quality on impaired loans and marginal loan growth in the fourth quarter.

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4Q 2019

 

 

3Q 2019

 

 

4Q 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

14,396

 

 

$

13,839

 

 

$

18,991

 

Total net loan charge-offs (recoveries)

 

 

85

 

 

 

(565)

 

 

 

153

 

Non-performing loans/ Total loans

 

 

1.17

%

 

 

1.13

%

 

 

1.64

%

Net loan charge-offs (recoveries)/ Average loans

 

 

0.03

%

 

 

(0.19)

%

 

 

0.05

%

Allowance for loan losses/ Total loans

 

 

1.24

%

 

 

1.26

%

 

 

1.28

%

We are consistent and disciplined with deep knowledge of our customers and their businesses. As a result, we have maintained strong asset quality metrics,” stated John Connerton, Chief Financial Officer of Evans Bank. “Given the challenges from the yield curve, we are carefully managing our balance sheet and continually looking to improve our asset mix to be in a position to drive expansion of our net interest margin.”

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income

($ in thousands)

 

 

4Q 2019

 

 

3Q 2019

 

 

4Q 2018

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

$

747

 

 

$

687

 

 

$

571

Insurance service and fee revenue

 

 

2,120

 

 

 

3,225

 

 

 

2,233

Bank-owned life insurance

 

 

164

 

 

 

160

 

 

 

166

Loss on tax credit investment

 

 

(158)

 

 

 

-

 

 

 

(2,705)

Refundable NY state historic tax credit

 

 

115

 

 

 

-

 

 

 

1,832

Other income

 

 

1,005

 

 

 

1,092

 

 

 

941

Total non-interest income

 

$

3,993

 

 

$

5,164

 

 

$

3,038

 

 

 

 

 

 

 

 

 

 

 

 

The increase in deposit service charges reflects newer service offerings, including overdraft protection for small business customers.

Insurance revenue decreased $1.1 million from the third quarter due to the seasonal decrease in commercial lines insurance commissions. The $0.1 million decrease from the fourth quarter of 2018 was the result of a decrease in profit sharing revenues, resulting from higher loss ratios experienced by the insurance carriers.

The fourth quarter of 2018 included a $0.9 million loss on an investment in a historic rehabilitation tax credit. There were no significant historic tax credit transactions during 2019.

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense

($ in thousands)

 

 

4Q 2019

 

 

3Q 2019

 

 

4Q 2018

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

7,355

 

 

$

7,644

 

 

$

7,220

Occupancy

 

 

868

 

 

 

853

 

 

 

855

Advertising and public relations

 

 

421

 

 

 

231

 

 

 

362

Professional services

 

 

1,059

 

 

 

1,009

 

 

 

599

Technology and communications

 

 

1,075

 

 

 

1,057

 

 

 

909

Amortization of intangibles

 

 

112

 

 

 

112

 

 

 

112

FDIC insurance

 

 

74

 

 

 

-

 

 

 

251

Other expenses

 

 

1,207

 

 

 

1,370

 

 

 

1,124

Total non-interest expenses

 

$

12,171

 

 

$

12,276

 

 

$

11,432

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits costs decreased 4% from the linked quarter as a result of severance costs recorded during the third quarter of 2019. The increase from the prior-year period reflects the strategic hiring of personnel to support the Company’s continued growth.

The increase in advertising and public relations expense reflects costs related to promotional campaigns.

Fourth quarter professional service fees included $0.2 million in merger-related costs associated with the previously announced agreement to acquire FSB. The remaining variance to the prior-year period was the result of expenses related to the purchase of a new corporate headquarters and consulting services associated with business intelligence data systems.

The increase in technology and communications was due to higher software costs, volume related ATM card fees and online banking activity.

Reduced FDIC insurance expense when compared with the prior year reflects the benefit of the FDIC’s small bank assessment credit.

The decrease in other expense when compared with the linked quarter reflects a $0.2 million charitable contribution made in the third quarter.

The Company’s GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 72.5% in the fourth quarter of 2019, 65.4% in the third quarter of 2019, and 74.2% in the fourth quarter of 2018. The Company’s non-GAAP efficiency ratio, which excludes amortization expense, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions, was 70.3% in the fourth quarter of 2019, compared with 64.8% in the third quarter of 2019 and 69.5% in last year’s fourth quarter.

During the fourth quarter 2019, the Company recognized income tax expense of $1.0 million, representing an effective tax rate of 20.9%, compared with a $0.2 million benefit or an effective tax rate of -4.6% in the prior year’s fourth quarter. Excluding the impact of historic tax credit transactions, the fourth quarter 2018 effective tax was 23.1%. The third quarter 2019 income tax expense was $1.8 million, or an effective tax rate of 25.6%.

2019 Year-end Balance Sheet Highlights

Total assets were $1.46 billion as of December 31, 2019, consistent with September 30, 2019 and $72 million, or 5%, higher than year-end 2018. The Company had strong loan growth as the portfolio increased $71 million, or 6%, to $1.23 billion during 2019 with the increase predominantly in commercial real estate.

Investment securities were $130 million at December 31, 2019, $7 million lower than the third quarter of 2019, and $3 million lower than at the end of 2018. The primary objectives of the Company’s investment portfolio are to provide liquidity, secure municipal deposits, and maximize income while preserving safety of principal. With the flattened yield curve, there is a reduced advantage to purchasing longer-term investment securities.

Total deposits of $1.27 billion at December 31, 2019 were up $52 million, or 4% from the end of 2018. The increase reflects growth of $32 million, or 14% in demand deposits, $30 million, or 27% in NOW account deposits and $16 million, or 3% in savings deposits. Partially offsetting this growth was a $25 million, or 8%, decrease in time deposits, which included $14 million of brokered deposits. Total average demand deposits were $273 million for the 2019 fourth quarter, an increase of $25 million from the fourth quarter of 2018, mostly attributable to growth in retail demand deposits.

2019 Year in Review (compared with prior-year period)

Net interest income was $52.1 million, up 8%, primarily due to strong growth in the Company’s commercial loan portfolio and improved net interest margin, partially offset by an increase in deposit interest expense. Net interest margin was 3.82%, an increase of 5 basis points.

The Company’s provision for loan losses of $0.1 million was down from $1.4 million primarily due to improved asset quality of impaired loans, including the successful restructure and payoff of a single commercial construction loan of $8 million, and a decrease in net loan charge-offs due to a single commercial loan recovery of $0.7 million, offset by loan growth and an increase in criticized loans. The ratio of non-performing loans to total loans was 1.17% compared with 1.64%.

Non-interest income was up $2.9 million, or 19%, to $18.1 million, mainly due to the increase in insurance service and fee revenue of $1.3 million, reflecting a full year of revenue from the R&S agency, which was acquired during 2018, a $0.4 million increase in deposit service charges and a $0.9 million loss on an investment in a historic rehabilitation tax credit in 2018.

Non-interest expense increased $4.5 million, or 10%, to $47.8 million. The increase reflects higher salaries and employee benefits of $2.2 million, or 8%, due to the addition of new employees as part of the Company’s planned growth strategy, merit increases, higher incentive compensation and severance costs. Professional services expenses were up $1.3 million, or 52% largely due to atypical legal and accounting costs, including those related to merger-related activities and costs associated with a cyber incident and related matters. Technology expenses were up 22%, or $0.7 million, to $4.1 million largely due to increased software costs, volume related ATM card fees and online banking activity. FDIC insurance expense decreased $0.6 million, or 58% as a result of lower assessment rates resulting from improved financial ratios and the application of the FDIC’s small bank assessment credit.

The Company’s GAAP efficiency ratio was 68.2% in 2019 compared with 68.4% in 2018. The Company’s non-GAAP efficiency ratio, as previously defined, was 67.2% compared with 66.9%.

Income tax expense for the year was $5.2 million, representing an effective tax rate of 23.5% compared with an effective tax rate of 12.2% in 2018. Excluding the impact of the 2018 historic tax credit transactions, the effective tax rate was 18.8% in 2018.

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 10.33% at December 31, 2019 compared with 10.11% at September 30, 2019 and 9.73% at December 31, 2018. Book value per share increased to $30.11 from $29.44 at September 30, 2019 and $27.13 at December 31, 2018.

In 2019, the Company paid cash dividends of $1.04 per common share, up 13%.

Outlook

Mr. Nasca concluded, “We believe the economic environment within the markets we serve is solid and provides opportunity for us to expand our business and create deeper relationships with existing clients. The differentiators will continue to be our talented people and a focus on adding value to relationships while continuing to invest back into our communities."

We expect that the current interest rate environment and geo-political issues will present their share of challenges. Our ability to focus on our clients, continue our growth and targeted strategic investments should help offset these pressures and allow us to continue to build earnings power. We are excited about the acquisition of FSB Bancorp and its Fairport Savings Bank, which was announced in December. The acquisition will let us bring our community focused commercial business model to an expanded market, scale the consumer and mortgage banking activities of the combined organization for efficiency and profitability, deliver additional deposit clients and allow Evans to expand its competitive fee-based businesses. We believe the combined capabilities of Evans and FSB create breadth and scale that will benefit clients, communities and associates while adding to returns.

"The Company expects the transaction to close in the second quarter of 2020, subject to the satisfaction of normal and customary closing conditions, including regulatory and FSB shareholder approvals."

About Evans Bancorp, Inc.

Evans Bancorp, Inc. is a financial holding company and the parent company of Evans Bank, N.A., a commercial bank with $1.5 billion in assets and $1.3 billion in deposits at December 31, 2019. Evans is a full-service community bank, with 15 financial centers providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. Evans Bancorp's wholly owned insurance subsidiary, The Evans Agency, LLC, provides life insurance, employee benefits, and property and casualty insurance through ten insurance offices in the Western New York region. Evans Investment Services provides non-deposit investment products, such as annuities and mutual funds.

Evans Bancorp, Inc. and Evans Bank routinely post news and other important information on their websites, at www.evansbancorp.com and www.evansbank.com.

Safe Harbor Statement: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning future business, revenue and earnings. These statements are not historical facts or guarantees of future performance, events or results. There are risks, uncertainties and other factors that could cause the actual results of Evans Bancorp to differ materially from the results expressed or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures among financial services companies, interest rate trends, general economic conditions, changes in legislation or regulatory requirements, effectiveness at achieving stated goals and strategies, and difficulties in achieving operating efficiencies. These risks and uncertainties are more fully described in Evans Bancorp’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Evans Bancorp undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new, updated information, future events or otherwise.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(in thousands, except shares and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2019

 

9/30/2019

 

6/30/2019

 

3/31/2019

 

12/31/2018

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

$

130,308

 

 

$

136,977

 

 

$

137,438

 

 

$

140,731

 

 

$

133,788

 

Loans

 

 

1,226,531

 

 

 

1,219,792

 

 

 

1,212,699

 

 

 

1,185,429

 

 

 

1,155,930

 

Allowance for loan losses

 

 

(15,175)

 

 

 

(15,382)

 

 

 

(15,248)

 

 

 

(15,207)

 

 

 

(14,784)

 

Goodwill and intangible assets

 

 

12,545

 

 

 

12,657

 

 

 

12,768

 

 

 

12,880

 

 

 

12,992

 

Operating lease right-of-use asset

 

 

3,720

 

 

 

3,862

 

 

 

4,003

 

 

 

4,142

 

 

 

-

 

All other assets

 

 

102,301

 

 

 

97,826

 

 

 

119,460

 

 

 

128,206

 

 

 

100,281

 

Total assets

 

$

1,460,230 

 

 

$

1,455,732

 

 

$

1,471,120

 

 

$

1,456,181

 

 

$

1,388,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

263,717

 

 

 

271,633

 

 

 

243,860

 

 

 

242,156

 

 

 

231,902

 

NOW deposits

 

 

140,654

 

 

 

141,384

 

 

 

145,620

 

 

 

122,204

 

 

 

110,450

 

Savings deposits

 

 

587,142

 

 

 

568,156

 

 

 

603,180

 

 

 

618,471

 

 

 

571,479

 

Time deposits

 

 

275,927

 

 

 

277,633

 

 

 

290,251

 

 

 

292,892

 

 

 

301,227

 

Total deposits

 

 

1,267,440

 

 

 

1,258,806

 

 

 

1,282,911

 

 

 

1,275,723

 

 

 

1,215,058

 

Borrowings

 

 

23,755

 

 

 

28,748

 

 

 

25,298

 

 

 

23,812

 

 

 

24,472

 

Operating lease liability

 

 

4,154

 

 

 

4,302

 

 

 

4,449

 

 

 

4,594

 

 

 

-

 

Other liabilities

 

 

16,428

 

 

 

19,007

 

 

 

17,175

 

 

 

17,617

 

 

 

17,031

 

Total stockholders' equity

 

 

148,453

 

 

 

144,869

 

 

 

141,287

 

 

 

134,435

 

 

 

131,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

4,929,593

 

 

 

4,920,381

 

 

 

4,915,678

 

 

 

4,860,316

 

 

 

4,852,868

 

Book value per share

 

$

30.11

 

 

$

29.44

 

 

$

28.74

 

 

$

27.66

 

 

$

27.13

 

Tier 1 leverage ratio

 

 

10.33

%

 

 

10.11

%

 

 

9.99

%

 

 

9.74

%

 

 

9.73

%

Tier 1 risk-based capital ratio

 

 

12.32

%

 

 

11.87

%

 

 

11.86

%

 

 

11.68

%

 

 

11.84

%

Total risk-based capital ratio

 

 

13.56

%

 

 

13.11

%

 

 

13.11

%

 

 

12.93

%

 

 

13.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

14,396

 

 

$

13,839

 

 

$

11,020

 

 

$

19,987

 

 

$

18,991

 

Total net loan charge-offs (recoveries)

 

 

85

 

 

 

(565)

 

 

 

49

 

 

 

115

 

 

 

153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

 

1.17

%

 

 

1.13

%

 

 

0.91

%

 

 

1.69

%

 

 

1.64

%

Net loan charge-offs (recoveries)/Average loans

 

 

0.03

%

 

 

(0.19)

%

 

 

0.02

%

 

 

0.04

%

 

 

0.05

%

Allowance for loans losses/Total loans

 

 

1.24

%

 

 

1.26

%

 

 

1.26

%

 

 

1.28

%

 

 

1.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA (UNAUDITED)

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2019

 

2019

 

2019

 

2018

 

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

Interest income

 

$

16,028

 

 

$

16,845

 

 

$

16,325

 

 

$

15,542

 

 

$

15,309

 

Interest expense

 

 

3,236

 

 

 

3,224

 

 

 

3,191

 

 

 

3,034

 

 

 

2,936

 

Net interest income

 

 

12,792

 

 

 

13,621

 

 

 

13,134

 

 

 

12,508

 

 

 

12,373

 

Provision (credit) for loan losses

 

 

(122)

 

 

 

(431)

 

 

 

90

 

 

 

538

 

 

 

(276)

 

Net interest income after provision

 

 

12,914

 

 

 

14,052

 

 

 

13,044

 

 

 

11,970

 

 

 

12,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

747

 

 

 

687

 

 

 

602

 

 

 

533

 

 

 

571

 

Insurance service and fee revenue

 

 

2,120

 

 

 

3,225

 

 

 

2,901

 

 

 

2,442

 

 

 

2,233

 

Bank-owned life insurance

 

 

164

 

 

 

160

 

 

 

173

 

 

 

159

 

 

 

166

 

Loss on tax credit investment

 

 

(158)

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,705)

 

Refundable NY state historic tax credit

 

 

115

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,832

 

Other income

 

 

1,005

 

 

 

1,092

 

 

 

1,054

 

 

 

1,061

 

 

 

941

 

Total non-interest income

 

 

3,993

 

 

 

5,164

 

 

 

4,730

 

 

 

4,195

 

 

 

3,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,355

 

 

 

7,644

 

 

 

7,469

 

 

 

7,160

 

 

 

7,220

 

Occupancy

 

 

868

 

 

 

853

 

 

 

872

 

 

 

836

 

 

 

855

 

Advertising and public relations

 

 

421

 

 

 

231

 

 

 

214

 

 

 

167

 

 

 

362

 

Professional services

 

 

1,059

 

 

 

1,009

 

 

 

929

 

 

 

745

 

 

 

599

 

Technology and communications

 

 

1,075

 

 

 

1,057

 

 

 

1,099

 

 

 

893

 

 

 

909

 

Amortization of intangibles

 

 

112

 

 

 

112

 

 

 

112

 

 

 

112

 

 

 

112

 

FDIC insurance

 

 

74

 

 

 

-

 

 

 

150

 

 

 

207

 

 

 

251

 

Other expenses

 

 

1,207

 

 

 

1,370

 

 

 

1,304

 

 

 

1,104

 

 

 

1,124

 

Total non-interest expenses

 

 

12,171

 

 

 

12,276

 

 

 

12,149

 

 

 

11,224

 

 

 

11,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

4,736

 

 

 

6,940

 

 

 

5,625

 

 

 

4,941

 

 

 

4,255

 

Income tax provision (benefit)

 

 

988

 

 

 

1,776

 

 

 

1,243

 

 

 

1,221

 

 

 

(196)

 

Net income

 

 

3,748

 

 

 

5,164

 

 

 

4,382

 

 

 

3,720

 

 

 

4,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

0.75

 

 

$

1.04

 

 

$

0.88

 

 

$

0.75

 

 

$

0.90

 

Cash dividends per common share

 

$

-

 

 

$

0.52

 

 

$

-

 

 

$

0.52

 

 

$

-

 

Weighted average number of diluted shares

 

 

4,990,863

 

 

 

4,976,639

 

 

 

4,953,072

 

 

 

4,932,451

 

 

 

4,928,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.02

%

 

 

1.41

%

 

 

1.21

%

 

 

1.04

%

 

 

1.26

%

Return on average stockholders' equity

 

 

10.16

%

 

 

14.29

%

 

 

12.71

%

 

 

11.19

%

 

 

13.86

%

Efficiency ratio

 

 

70.28

%

 

 

64.75

%

 

 

67.54

%

 

 

66.53

%

 

 

69.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)

(in thousands)

 

 

2019

 

2019

 

2019

 

2019

 

2018

 

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

1,213,837

 

 

$

1,202,634

 

 

$

1,183,379

 

 

$

1,153,067

 

 

$

1,128,015

 

Investment securities

 

 

137,354

 

 

 

143,731

 

 

 

148,465

 

 

 

141,249

 

 

 

137,175

 

Interest-bearing deposits at banks

 

 

32,061

 

 

 

24,661

 

 

 

28,132

 

 

 

44,024

 

 

 

60,061

 

Total interest-earning assets

 

 

1,383,252

 

 

 

1,371,026

 

 

 

1,359,976

 

 

 

1,338,340

 

 

 

1,325,251

 

Non interest-earning assets

 

 

89,415

 

 

 

89,513

 

 

 

85,720

 

 

 

86,386

 

 

 

83,482

 

Total Assets

 

$

1,472,667

 

 

$

1,460,539

 

 

$

1,445,696

 

 

$

1,424,726

 

 

$

1,408,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

136,077

 

 

 

134,008

 

 

 

123,515

 

 

 

112,571

 

 

 

110,612

 

Savings

 

 

593,694

 

 

 

591,585

 

 

 

605,524

 

 

 

591,641

 

 

 

581,048

 

Time deposits

 

 

274,856

 

 

 

281,798

 

 

 

289,794

 

 

 

298,586

 

 

 

301,957

 

Total interest-bearing deposits

 

 

1,004,627

 

 

 

1,007,391

 

 

 

1,018,833

 

 

 

1,002,798

 

 

 

993,617

 

Borrowings

 

 

27,241

 

 

 

25,234

 

 

 

24,231

 

 

 

25,746

 

 

 

25,340

 

Total interest-bearing liabilities

 

 

1,031,868

 

 

 

1,032,625

 

 

 

1,043,064

 

 

 

1,028,544

 

 

 

1,018,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

272,834

 

 

 

261,089

 

 

 

244,142

 

 

 

242,030

 

 

 

247,619

 

Other non-interest bearing liabilities

 

 

20,375

 

 

 

22,231

 

 

 

20,609

 

 

 

21,219

 

 

 

13,689

 

Stockholders' equity

 

 

147,590

 

 

 

144,594

 

 

 

137,881

 

 

 

132,933

 

 

 

128,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

1,472,667

 

 

$

1,460,539

 

 

$

1,445,696

 

 

$

1,424,726

 

 

$

1,408,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

 

4.92

%

 

 

5.16

%

 

 

5.13

%

 

 

5.05

%

 

 

4.94

%

Investment securities

 

 

2.46

%

 

 

2.87

%

 

 

2.77

%

 

 

2.67

%

 

 

2.68

%

Interest-bearing deposits at banks

 

 

1.65

%

 

 

2.56

%

 

 

2.22

%

 

 

2.29

%

 

 

2.24

%

Total interest-earning assets

 

 

4.61

%

 

 

4.87

%

 

 

4.81

%

 

 

4.71

%

 

 

4.58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

0.57

%

 

 

0.45

%

 

 

0.37

%

 

 

0.30

%

 

 

0.30

%

Savings

 

 

0.94

%

 

 

0.90

%

 

 

0.87

%

 

 

0.80

%

 

 

0.74

%

Time deposits

 

 

2.09

%

 

 

2.17

%

 

 

2.18

%

 

 

2.16

%

 

 

2.07

%

Total interest-bearing deposits

 

 

1.21

%

 

 

1.20

%

 

 

1.18

%

 

 

1.15

%

 

 

1.10

%

Borrowings

 

 

2.64

%

 

 

2.92

%

 

 

3.13

%

 

 

3.01

%

 

 

2.97

%

Total interest-bearing liabilities

 

 

1.24

%

 

 

1.24

%

 

 

1.23

%

 

 

1.20

%

 

 

1.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

3.36

%

 

 

3.63

%

 

 

3.58

%

 

 

3.51

%

 

 

3.44

%

Contribution of interest-free funds

 

 

0.31

%

 

 

0.31

%

 

 

0.29

%

 

 

0.28

%

 

 

0.26

%

Net interest margin

 

 

3.67

%

 

 

3.94

%

 

 

3.87

%

 

 

3.79

%

 

 

3.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

SELECTED OPERATIONS DATA (UNAUDITED)

 

 

 

 

 

 

 

 

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

 

 

Year to Date

 

Year to Date

 

% Change

Interest income

 

$

64,740

 

$

57,612

 

12

%

Interest expense

 

 

12,685

 

 

9,505

 

33

%

Net interest income

 

 

52,055

 

 

48,107

 

8

%

Provision for loan losses

 

 

75

 

 

1,402

 

(95)

%

Net interest income after provision

 

 

51,980

 

 

46,705

 

11

%

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

2,569

 

 

2,176

 

18

%

Insurance service and fee revenue

 

 

10,688

 

 

9,365

 

14

%

Bank-owned life insurance

 

 

656

 

 

680

 

(4)

%

Loss on tax credit investment

 

 

(158)

 

 

(2,870)

 

(494)

%

Refundable NY state historic tax credit

 

 

115

 

 

1,982

 

(94)

%

Other income

 

 

4,212

 

 

3,894

 

8

%

Total non-interest income

 

 

18,082

 

 

15,227

 

19

%

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

29,628

 

 

27,412

 

8

%

Occupancy

 

 

3,429

 

 

3,135

 

9

%

Advertising and public relations

 

 

1,033

 

 

1,070

 

(3)

%

Professional services

 

 

3,742

 

 

2,466

 

52

%

Technology and communications

 

 

4,124

 

 

3,394

 

22

%

FDIC insurance

 

 

431

 

 

1,024

 

(58)

%

Amortization of intangibles

 

 

448

 

 

280

 

60

%

Other expenses

 

 

4,985

 

 

4,512

 

10

%

Total non-interest expenses

 

 

47,820

 

 

43,293

 

10

%

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

22,242

 

 

18,639

 

19

%

Income tax provision

 

 

5,228

 

 

2,283

 

129

%

Net income

 

 

17,014

 

 

16,356

 

4

%

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

3.42

 

$

3.32

 

3

%

Cash dividends per common share

 

$

1.04

 

$

0.92

 

13

%

Weighted average number of diluted shares

 

 

4,968,172

 

 

4,933,743

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.17

%

 

1.20

%

 

 

Return on average stockholders' equity

 

 

12.08

%

 

13.20

%

 

 

Efficiency ratio

 

 

67.21

%

 

66.87

%

 

 

Net interest margin

 

 

3.82

%

 

3.77

%

 

 

Net loan charge-offs (recoveries)/Average loans

 

 

(0.03)

%

 

0.06

%

 

 

 

Contacts

John B. Connerton
Executive Vice President and Chief Financial Officer
Phone: (716) 926-2000
Email: jconnerton@evansbank.com

Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com

Release Summary

Evans Bancorp (NYSE American: EVBN) Reports Record Net Income for 2019

Contacts

John B. Connerton
Executive Vice President and Chief Financial Officer
Phone: (716) 926-2000
Email: jconnerton@evansbank.com

Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com