EX-99 2 evbn-20140211xex99.htm EX-99 Q4 2013 evbn 8-K Exhibit 991

News

Release

 

Evans Bancorp, Inc.  One Grimsby Drive Hamburg, NY  14075 

 

IMMEDIATE RELEASE

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

HAMBURG, NY, February 6, 2014 – Evans Bancorp, Inc. (the “Company” or “Evans”) (NYSE MKT: 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, 2013.

HIGHLIGHTS OF THE 2013 FOURTH QUARTER AND YEAR-END

·

Net income for 2013 was $7.9 million compared with a record $8.1 million in 2012.

·

Loans increased 11.3% for the year to $647.0 million.

·

Total deposits increased $27.6 million, or 4.1%, over 2012, driven by 13.4% growth in demand deposits.

·

Fourth quarter net interest income of $7.3 million increased 3.4% over the prior-year period on strong loan and non-interest bearing demand deposit growth. 

·

Fourth quarter net income was $1.7 million, or $0.39 per diluted share, compared with
$2.1 million, or $0.51 per diluted share, in the fourth quarter of 2012.

Net income was $1.7 million in the fourth quarter of 2013, down from $2.1 million in the fourth quarter of 2012, primarily as a result of a $0.4 million increase in the provision for loan and lease losses in the current quarter.  The prior-year period benefitted from a $129 thousand release of loan and lease loss reserves as the Company’s leasing portfolio credit quality continued to improve.  As a result, return on average equity was 8.35% for the fourth quarter of 2013 compared with 11.33% in the fourth quarter of 2012.

For the full year 2013, Evans had net income of $7.9 million, or $1.85 per diluted share, down slightly from net income of $8.1 million, or $1.95 per diluted share, in the prior year.  The return on average equity for 2013 was 10.06% compared with 11.20% for 2012.

“Our strong performance in 2013, which approached last year’s record earnings, clearly demonstrates the sustainability of our community banking model, our niche in the marketplace, and the performance
we are attaining through our growth,” commented David J. Nasca, Evans Bancorp President and CEO.  “With our focus on being a full-service advisor to our customers, we expanded our customer base and continued to strengthen our balance sheet with strong loan and core deposit growth.”

Fourth Quarter 2013 Net Interest Income

Net interest income was $7.3 million for the fourth quarter, an increase of 3.4% from the prior-year period, and up 2.4% from the trailing third quarter of 2013.  Growth in loans and non-interest bearing demand deposits drove the increase over both the prior-year period and the trailing quarter.

Net interest margin improved 6 basis points to 3.85% compared with 3.79% in the trailing third quarter, and primarily reflects an increase in interest-earning assets.  Net interest margin also improved over the 2012 fourth quarter rate of 3.78%.  The increase in net interest margin from the prior-year period was due to a 24 basis point decrease in pricing on Evans’ interest bearing liabilities, partially offset by a 13 basis point decrease in the yield on interest-earning assets. 

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

The provision for loan and lease losses was $0.2 million in the reported quarter, up $0.4 million from the prior-year period, during which a release of loss reserves was recorded as a result of improvement in the leasing portfolio’s credit quality.  When compared with the trailing third quarter of 2013, the provision decreased by $0.5 million.  In the prior quarter, the termination of the FDIC loss share agreement related to the Company’s 2009 acquisition of Waterford Village Bank resulted in a $0.6 million loan loss provision and a corresponding gain of $0.7 million in non-interest income.

Fourth Quarter 2013 Non-Interest Income

Non-interest income was $3.0 million, or 29.1% of total revenue, in the quarter, down $0.3 million, or 8.0%, from the prior-year period.  Service charges on deposits increased 2.4% to $510 thousand from the prior-year period as a result of growing commercial deposit transactional relationships which have historically higher fees.  This was off-set by a $0.3 million decrease in other income, mostly as a result of a reduction in premiums on sales of residential mortgages. The Company has booked originated residential mortgages in 2013 rather than selling the mortgages to FNMA as was done in 2012.  Insurance agency revenue of $1.6 million was down $25 thousand, or 1.6%, from the 2012 fourth quarter, due mostly to decreases in commercial lines revenue.  Compared with the trailing third quarter of 2013, total non-interest income increased by 15.3%, mostly related to the loss on a tax credit investment in the third quarter of 2013.

Fourth Quarter 2013 Non-Interest Expense

Total non-interest expense was $7.7 million, an increase of 6.9% from the prior-year period.  Personnel expenses, the largest expense item for the Company, were up $521 thousand, or 12.8%, from the prior-year period, and reflect merit increases and personnel hires to support the Company’s growth strategy. These strategic additions impacted the current quarter; however, the Company has efficiently managed the full year’s non-interest expense as compared with prior year, as discussed below.

Income tax expense for the quarter was $0.8 million, representing an effective tax rate of 31.3% compared with an effective tax rate of 35.8% in the fourth quarter of 2012.  The decrease in tax rate was primarily due to higher tax exempt income as a percentage of total income.

2013 Year-end Balance Sheet Highlights

Total assets grew 2.9% to $833.5 million at December 31, 2013, from $809.7 million on December 31, 2012, and were up 0.8% from $827.0 million at the end of the 2013 third quarter.  Loans grew 11.3% in the year to end at $647.0 million from $581.3 million at December 31, 2012.  Loans also grew in the fourth quarter and were up 3.4% from $625.6 million at September 30, 2013.

Investment securities were $104.9 million at the end of the year, up 5.9% from the end of 2012 and up 5.8% from the trailing 2013 third quarter. 

Total deposits increased $27.6 million, or 4.1%, to $706.6 million at December 31, 2013, from
$679.0 million at December 31, 2012, and increased $4.0 million, or 0.6%, from the 2013 third quarter-end.  The year-over-year growth was attributable to deposit increases in commercial demand deposits and consumer savings deposits.  The increase from the 2013 third quarter was the result of savings deposit growth.

Asset Quality

There were net recoveries from two prior-year charged off loans in the fourth quarter, resulting in a (0.15%) ratio of net charge offs to average total loans and leases.  This was an improvement from net charge offs of 0.24% in the fourth quarter of 2012 and 0.09% in the third quarter of 2013.

The ratio of non-performing loans and leases to total loans and leases increased to 2.12% at the end
of 2013, from 1.38% at year-end 2012, but decreased from 2.29% at September 30, 2013.  Of the

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

$13.7 million in non-performing loans and leases at the end of 2013, approximately $8.0 million was due to one well collateralized commercial real estate loan, which has been successfully restructured with a new borrower. 

The ratio of the allowance for loan and lease losses to total loans and leases was 1.78% at
December 31, 2013 compared with 1.74% at September 30, 2013 and 1.67% at December 31, 2012.  The coverage ratio was 83.8% at year-end 2013 compared with 76.1% at the end of the trailing third quarter and 118.3% at year-end 2012.

Gary A. Kajtoch, Executive Vice President and CFO commented, “During the year we took actions to position the bank for long-term, sustainable growth.  Of note, our year-long efficiency and office consolidation initiative is now complete.  The Company relocated three corporate facilities into two existing and one new office.  We expect there to be some savings in occupancy costs and are clearly seeing improved collaboration within our organization, which was the primary objective.  This quarter was rewarding because of the strong growth in our loan portfolio, also all the while maintaining solid credit fundamentals.”    

2013 Year in Review

Net interest income for 2013 was $28.3 million, an increase of $0.6 million, or 2.0%, over 2012, primarily due to strong growth in the Company’s commercial loan portfolio.  Although still historically strong, the decreased interest rate environment resulted in a compression of the net interest margin to 3.74% in 2013 from 3.84% in 2012. 

The Company’s provision for loan and lease losses increased to $1.5 million in 2013 from a release of $68 thousand in 2012.  The year-over-year change was mainly attributable to the release of $0.9 million in the leasing provision after continued improvement in the portfolio’s performance in 2012 and the
$0.6 million in provision realized in the third quarter of 2013 due to the termination of the FDIC loss share agreement.  Non-performing loans and leases increased by $5.4 million to $13.7 million in 2013, from $8.2 million in 2012, due to the addition of the restructured commercial loan discussed above.

Non-interest income was $12.2 million for 2013, down $0.7 million from 2012.  This decrease was mainly attributable to a $1.6 million impairment on a tax credit investment in a community-based project in the current year, which had a related $1.8 million tax credit, as discussed below.  The loss was partially offset by a $0.7 million gain realized in the third quarter from the termination of the FDIC loss sharing agreement, which had a corresponding $0.6 million increase in provision for loan and lease losses, as detailed above.  Positively impacting non-interest income were year-over-year increases in bank service charges of $0.2 million, insurance revenue of $0.2 million, and interchange fees of $0.1 million.  

Non-interest expense increased $0.6 million, or 2.0%, to $29.4 million in 2013.  The increase reflects higher salaries and employee benefits of $0.5 million due to merit increases, rising health care costs, and the addition of new employees as part of the Company’s planned growth strategy.  Also contributing to the increase were occupancy expenses related to a new Williamsville branch and software write-offs from discontinued projects.  Those increases were partially offset by lower amortization expense related to intangible assets, a reduction in professional services expense, and a decrease in maintenance expense.

Income tax expense for the year was $1.7 million, representing an effective tax rate of 18.0% compared with an effective tax rate of 31.5% in 2012. The difference is driven by a $1.8 million tax credit benefit realized in 2013 relating to a historic tax credit investment in a community project.  Excluding the impact of the historic tax credit and the write-off of the tax credit investment recognized in non-interest income, the current year effective tax rate was 31.5%.

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the federal “well capitalized” standard, including a Tier 1 leverage ratio of 10.36% at December 31, 2013.  Book value per share was $19.21 at December 31, 2013 compared with $18.72 at September 30, 2013 and $17.94 at December 31, 2012.  Tangible book value per share at December 31, 2013 was $17.26, up 8.4% from the end of the fourth quarter of 2012 and up 3.0% from the trailing third quarter of 2013.

Mr. Nasca concluded, “2013 was an outstanding year for the Company; however, we expect continuing challenges for the financial services industry, such as strong competition, and interest rate and regulatory pressures, to continue into 2014 and beyond.  We are confident our leading community banking franchise will continue to succeed in strategically addressing these challenges. Our efforts are expanding to include alternative distribution channels, allowing us to capture and serve a larger customer base whose interactions with banks are changing.  Our focus on the customers and the communities we serve is vital to our ongoing success.” 

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 $833 million in assets and $707 million in deposits at December 31, 2013. Evans is a full-service community bank, with 13 branches, 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 property and casualty insurance through seven 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 Web sites, 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.

 

For more information contact:

-OR-

Gary A. Kajtoch

Executive Vice President and Chief Financial Officer

Deborah K. Pawlowski

Kei Advisors LLC

Phone: (716) 926-2000  
Email: gkajtoch@evansbank.com 

Phone:  (716) 843-3908  
Email:  dpawlowski@keiadvisors.com

 

TABLES FOLLOW

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL DATA (UNAUDITED)

 

 

 

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

12/31/2013

 

 

9/30/2013

 

 

6/30/2013

 

 

3/31/2013

 

 

12/31/2012

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

$
104,880 

 

 

$
99,175 

 

 

$
99,329 

 

 

$
98,220 

 

 

$
99,056 

 

Loans

 

 
646,996 

 

 

 
625,555 

 

 

 
607,442 

 

 

 
587,157 

 

 

 
581,283 

 

Leases

 

 

-    

 

 

 

-    

 

 

 
337 

 

 

 
929 

 

 

 
1,612 

 

Allowance for loan and lease losses

 

 
(11,503)

 

 

 
(10,890)

 

 

 
(10,259)

 

 

 
(10,154)

 

 

 
(9,732)

 

Goodwill and intangible assets

 

 
8,209 

 

 

 
8,249 

 

 

 
8,305 

 

 

 
8,367 

 

 

 
8,429 

 

All other assets

 

 
84,916 

 

 

 
104,871 

 

 

 
111,120 

 

 

 
139,195 

 

 

 
129,028 

 

Total assets

 

$
833,498 

 

 

$
826,960 

 

 

$
816,274 

 

 

$
823,714 

 

 

$
809,676 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 
139,973 

 

 

 
140,423 

 

 

 
132,820 

 

 

 
123,084 

 

 

 
123,405 

 

NOW deposits

 

 
65,927 

 

 

 
66,095 

 

 

 
67,736 

 

 

 
73,016 

 

 

 
65,753 

 

Regular savings deposits

 

 
390,575 

 

 

 
383,766 

 

 

 
379,782 

 

 

 
391,739 

 

 

 
380,924 

 

Time deposits

 

 
110,137 

 

 

 
112,341 

 

 

 
112,076 

 

 

 
110,461 

 

 

 
108,910 

 

Total deposits

 

 
706,612 

 

 

 
702,625 

 

 

 
692,414 

 

 

 
698,300 

 

 

 
678,992 

 

Borrowings

 

 
33,680 

 

 

 
34,509 

 

 

 
34,872 

 

 

 
37,113 

 

 

 
42,441 

 

Other liabilities

 

 
12,495 

 

 

 
11,191 

 

 

 
11,703 

 

 

 
11,806 

 

 

 
13,416 

 

Total stockholders' equity

 

$
80,711 

 

 

$
78,635 

 

 

$
77,285 

 

 

$
76,495 

 

 

$
74,827 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 
4,201,362 

 

 

 
4,200,207 

 

 

 
4,198,596 

 

 

 
4,190,257 

 

 

 
4,171,473 

 

Book value per share

 

$
19.21 

 

 

$
18.72 

 

 

$
18.41 

 

 

$
18.26 

 

 

$
17.94 

 

Tangible book value per share

 

$
17.26 

 

 

$
16.76 

 

 

$
16.43 

 

 

$
16.26 

 

 

$
15.92 

 

Tier 1 leverage ratio

 

 
10.36 

%

 

 
10.27 

%

 

 
10.06 

%

 

 
9.87 

%

 

 
9.69 

%

Tier 1 risk-based capital ratio

 

 
13.64 

%

 

 
13.84 

%

 

 
14.17 

%

 

 
14.02 

%

 

 
13.41 

%

Total risk-based capital ratio

 

 
14.90 

%

 

 
15.10 

%

 

 
15.42 

%

 

 
15.28 

%

 

 
14.67 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans and leases

 

$
13,733 

 

 

$
14,311 

 

 

$
13,456 

 

 

$
8,036 

 

 

$
8,229 

 

Total net loan and lease charge-offs (recoveries)

 

 
(231)

 

 

 
143 

 

 

 
(25)

 

 

 
28 

 

 

 
346 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans and leases/ Total loans and leases

 

 
2.12 

%

 

 
2.29 

%

 

 
2.21 

%

 

 
1.37 

%

 

 
1.38 

%

Net loan and lease charge-offs/ Average loans and leases

 

 
(0.15)

%

 

 
0.09 

%

 

 
(0.02)

%

 

 
0.02 

%

 

 
0.24 

%

Allowance for loans and leases to total loans and leases

 

 
1.78 

%

 

 
1.74 

%

 

 
1.69 

%

 

 
1.73 

%

 

 
1.67 

%

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

SELECTED OPERATIONS DATA (UNAUDITED)

 

 

 

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2013

 

 

2013

 

 

2013

 

 

2012

 

 

 

Fourth Quarter

 

 

Third Quarter

 

 

Second Quarter

 

 

First Quarter

 

 

Fourth Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$
8,305 

 

 

$
8,149 

 

 

$
7,993 

 

 

$
7,956 

 

 

$
8,409 

 

Interest expense

 

 
961 

 

 

 
975 

 

 

 
991 

 

 

 
1,130 

 

 

 
1,309 

 

Net interest income

 

 
7,344 

 

 

 
7,174 

 

 

 
7,002 

 

 

 
6,826 

 

 

 
7,100 

 

Provision for loan and lease losses

 

 
236 

 

 

 
774 

 

 

 
80 

 

 

 
450 

 

 

 
(129)

 

Net interest income after provision

 

 
7,108 

 

 

 
6,400 

 

 

 
6,922 

 

 

 
6,376 

 

 

 
7,229 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 
510 

 

 

 
540 

 

 

 
506 

 

 

 
482 

 

 

 
498 

 

Insurance service and fee revenue

 

 
1,579 

 

 

 
1,906 

 

 

 
1,726 

 

 

 
1,999 

 

 

 
1,604 

 

Bank-owned life insurance

 

 
158 

 

 

 
108 

 

 

 
129 

 

 

 
113 

 

 

 
120 

 

Other income

 

 
771 

 

 

 
64 

 

 

 
853 

 

 

 
716 

 

 

 
1,060 

 

Total non-interest income

 

 
3,018 

 

 

 
2,618 

 

 

 
3,214 

 

 

 
3,310 

 

 

 
3,282 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 
4,604 

 

 

 
4,637 

 

 

 
4,225 

 

 

 
4,289 

 

 

 
4,083 

 

Occupancy

 

 
761 

 

 

 
695 

 

 

 
738 

 

 

 
816 

 

 

 
776 

 

Repairs and maintenance

 

 
189 

 

 

 
169 

 

 

 
187 

 

 

 
178 

 

 

 
213 

 

Advertising and public relations

 

 
268 

 

 

 
158 

 

 

 
236 

 

 

 
124 

 

 

 
214 

 

Professional services

 

 
478 

 

 

 
480 

 

 

 
480 

 

 

 
454 

 

 

 
463 

 

Technology and communications

 

 
353 

 

 

 
299 

 

 

 
340 

 

 

 
291 

 

 

 
337 

 

Amortization of intangibles

 

 
41 

 

 

 
55 

 

 

 
62 

 

 

 
62 

 

 

 
63 

 

FDIC insurance

 

 
126 

 

 

 
147 

 

 

 
165 

 

 

 
138 

 

 

 
130 

 

Other expenses

 

 
879 

 

 

 
708 

 

 

 
824 

 

 

 
724 

 

 

 
925 

 

Total non-interest expenses

 

 
7,699 

 

 

 
7,348 

 

 

 
7,257 

 

 

 
7,076 

 

 

 
7,204 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 
2,427 

 

 

 
1,670 

 

 

 
2,879 

 

 

 
2,610 

 

 

 
3,307 

 

Income tax (benefit) provision

 

 
760 

 

 

 
(779)

 

 

 
956 

 

 

 
794 

 

 

 
1,185 

 

Net income

 

$
1,667 

 

 

$
2,449 

 

 

$
1,923 

 

 

$
1,816 

 

 

$
2,122 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - diluted

 

$
0.39 

 

 

$
0.58 

 

 

$
0.46 

 

 

$
0.43 

 

 

$
0.51 

 

Cash dividends per common share

 

$

-    

 

 

$
0.26 

 

 

$

-    

 

 

$

-    

 

 

$
0.24 

 

Weighted average number of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

diluted shares

 

 
4,265,655 

 

 

 
4,232,961 

 

 

 
4,219,428 

 

 

 
4,210,595 

 

 

 
4,180,578 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 
0.80 

%

 

 
1.20 

%

 

 
0.94 

%

 

 
0.89 

%

 

 
1.05 

%

Return on average stockholders' equity

 

 
8.35 

%

 

 
12.50 

%

 

 
9.86 

%

 

 
9.55 

%

 

 
11.33 

%

Efficiency ratio

 

 
73.90 

%

 

 
68.59 

%

 

 
70.43 

%

 

 
69.20 

%

 

 
68.78 

%

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2013

 

 

2013

 

 

2013

 

 

2012

 

 

 

Fourth Quarter

 

 

Third Quarter

 

 

Second Quarter

 

 

First Quarter

 

 

Fourth Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, net

 

$
620,936 

 

 

$
604,283 

 

 

$
585,431 

 

 

$
575,953 

 

 

$
585,453 

 

Investment securities

 

 
101,343 

 

 

 
97,049 

 

 

 
100,027 

 

 

 
98,120 

 

 

 
101,135 

 

Interest bearing deposits at banks

 

 
41,414 

 

 

 
55,102 

 

 

 
74,617 

 

 

 
78,426 

 

 

 
63,797 

 

Total interest-earning assets

 

 
763,693 

 

 

 
756,434 

 

 

 
760,075 

 

 

 
752,499 

 

 

 
750,385 

 

Non-interest earning assets

 

 
65,143 

 

 

 
62,461 

 

 

 
60,814 

 

 

 
61,314 

 

 

 
58,617 

 

Total Assets

 

$
828,836 

 

 

$
818,895 

 

 

$
820,889 

 

 

$
813,813 

 

 

$
809,002 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 
65,764 

 

 

 
66,926 

 

 

 
69,698 

 

 

 
67,836 

 

 

 
62,245 

 

Regular savings

 

 
355,426 

 

 

 
356,939 

 

 

 
356,616 

 

 

 
359,434 

 

 

 
355,327 

 

Muni-vest savings

 

 
31,508 

 

 

 
22,367 

 

 

 
28,916 

 

 

 
21,348 

 

 

 
28,991 

 

Time deposits

 

 
111,042 

 

 

 
111,774 

 

 

 
111,615 

 

 

 
110,209 

 

 

 
108,447 

 

Total interest-bearing deposits

 

 
563,740 

 

 

 
558,006 

 

 

 
566,845 

 

 

 
558,827 

 

 

 
555,010 

 

Other borrowings

 

 
35,806 

 

 

 
34,690 

 

 

 
36,704 

 

 

 
43,693 

 

 

 
41,948 

 

Total interest-bearing liabilities

 

 
599,546 

 

 

 
592,696 

 

 

 
603,549 

 

 

 
602,520 

 

 

 
596,958 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 
137,731 

 

 

 
135,491 

 

 

 
128,369 

 

 

 
122,359 

 

 

 
124,741 

 

Other non-interest bearing liabilities

 

 
11,740 

 

 

 
12,323 

 

 

 
10,991 

 

 

 
12,857 

 

 

 
12,408 

 

Stockholders' equity

 

 
79,819 

 

 

 
78,385 

 

 

 
77,980 

 

 

 
76,077 

 

 

 
74,895 

 

Total Liabilities and Equity

 

$
828,836 

 

 

$
818,895 

 

 

$
820,889 

 

 

$
813,813 

 

 

$
809,002 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, net

 

 
4.88 

%

 

 
4.93 

%

 

 
4.97 

%

 

 
5.04 

%

 

 
5.26 

%

Investment securities

 

 
2.77 

%

 

 
2.75 

%

 

 
2.68 

%

 

 
2.80 

%

 

 
2.74 

%

Interest bearing deposits at banks

 

 
0.29 

%

 

 
0.28 

%

 

 
0.24 

%

 

 
0.09 

%

 

 
0.09 

%

Total interest-earning assets

 

 
4.35 

%

 

 
4.31 

%

 

 
4.21 

%

 

 
4.23 

%

 

 
4.48 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 
0.48 

%

 

 
0.48 

%

 

 
0.49 

%

 

 
0.67 

%

 

 
1.05 

%

Regular savings

 

 
0.29 

%

 

 
0.30 

%

 

 
0.29 

%

 

 
0.35 

%

 

 
0.46 

%

Muni-vest savings

 

 
0.22 

%

 

 
0.21 

%

 

 
0.22 

%

 

 
0.28 

%

 

 
0.30 

%

Time deposits

 

 
1.58 

%

 

 
1.59 

%

 

 
1.62 

%

 

 
1.63 

%

 

 
1.70 

%

Total interest-bearing deposits

 

 
0.56 

%

 

 
0.58 

%

 

 
0.57 

%

 

 
0.64 

%

 

 
0.76 

%

Other borrowings

 

 
1.90 

%

 

 
1.95 

%

 

 
1.97 

%

 

 
2.20 

%

 

 
2.45 

%

Total interest-bearing liabilities

 

 
0.64 

%

 

 
0.66 

%

 

 
0.66 

%

 

 
0.75 

%

 

 
0.88 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 
3.71 

%

 

 
3.65 

%

 

 
3.55 

%

 

 
3.48 

%

 

 
3.60 

%

Contribution of interest-free funds

 

 
0.14 

%

 

 
0.14 

%

 

 
0.13 

%

 

 
0.15 

%

 

 
0.18 

%

Net interest margin

 

 
3.85 

%

 

 
3.79 

%

 

 
3.68 

%

 

 
3.63 

%

 

 
3.78 

%

 

 

 

 

Evans Bancorp Announces Near Record Net Income in 2013; Driven by Strong Loan and Deposit Growth

February 6, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

SELECTED OPERATIONAL DATA (UNAUDITED)

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 

 

 

Year to Date

 

 

Year to Date

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$
32,404 

 

 

$
33,377 

 

 

 
(2.9)

%

Interest expense

 

 
4,057 

 

 

 
5,597 

 

 

 
(27.5)

%

Net interest income

 

 
28,347 

 

 

 
27,780 

 

 

 
2.0 

%

Provision for loan and lease losses

 

 
1,540 

 

 

 
(68)

 

 

 
(2,364.7)

%

Net interest income after provision

 

 
26,807 

 

 

 
27,848 

 

 

 
(3.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 
2,038 

 

 

 
1,858 

 

 

 
9.7 

%

Insurance service and fee revenue

 

 
7,211 

 

 

 
6,966 

 

 

 
3.5 

%

Bank-owned life insurance

 

 
508 

 

 

 
489 

 

 

 
3.9 

%

Other income

 

 
2,404 

 

 

 
3,510 

 

 

 
(31.5)

%

Total non-interest income

 

 
12,161 

 

 

 
12,823 

 

 

 
(5.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 
17,755 

 

 

 
17,304 

 

 

 
2.6 

%

Occupancy

 

 
3,010 

 

 

 
2,785 

 

 

 
8.1 

%

Repairs and maintenance

 

 
723 

 

 

 
769 

 

 

 
(6.0)

%

Advertising and public relations

 

 
786 

 

 

 
814 

 

 

 
(3.4)

%

Professional services

 

 
1,892 

 

 

 
1,925 

 

 

 
(1.7)

%

Technology and communications

 

 
1,283 

 

 

 
1,197 

 

 

 
7.2 

%

Amortization of intangibles

 

 
221 

 

 

 
349 

 

 

 
(36.7)

%

FDIC insurance

 

 
576 

 

 

 
521 

 

 

 
10.6 

%

Other expense

 

 
3,134 

 

 

 
3,128 

 

 

 
0.2 

%

Total non-interest expense

 

 
29,380 

 

 

 
28,792 

 

 

 
2.0 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 
9,588 

 

 

 
11,879 

 

 

 
(19.3)

%

Income tax provision

 

 
1,731 

 

 

 
3,747 

 

 

 
(53.8)

%

Net income

 

$
7,857 

 

 

$
8,132 

 

 

 
(3.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - diluted

 

$
1.85 

 

 

$
1.95 

 

 

 
(5.2)

%

Cash dividends per common share

 

$
0.26 

 

 

$
0.68 

 

 

 

 

 

Weighted average number of

 

 

 

 

 

 

 

 

 

 

 

 

diluted shares

 

 
4,240,144 

 

 

 
4,159,690 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 
0.96 

%

 

 
1.04 

%

 

 

 

 

Return on average stockholders' equity

 

 
10.06 

%

 

 
11.20 

%

 

 

 

 

Efficiency ratio

 

 
71.98 

%

 

 
70.05 

%