EX-99.1 3 l07098aexv99w1.txt PRESS RELEASE EXHIBIT 99.1 FOR IMMEDIATE RELEASE For: Evans Bancorp, Inc. Contact: Mark DeBacker, Treasurer 14-16 North Main Street Phone: (716) 549-1000 Angola, New York 14006 Fax: (716) 549-0720 EVANS BANCORP ANNOUNCES 8.8 PERCENT INCREASE IN FIRST QUARTER 2004 NET INCOME ANGOLA, N.Y.-APRIL 19, 2004-Evans Bancorp, Inc. (Nasdaq: EVBN) the holding company for Evans National Bank, a commercial bank with nine branches in Western New York, and approximately $400.3 million in assets, today reported strong growth in revenue and income for the quarter ended March 31, 2004. FIRST QUARTER 2004 PERFORMANCE HIGHLIGHTS: ------------------------------------------ o NET INCOME GREW BY 8.8%, OR $94 THOUSAND, OVER FIRST QUARTER 2003 o DEPOSITS INCREASED BY 24.8% FROM THE YEAR-END 2003 TOTAL OF $266.3 MILLION o NON-INTEREST INCOME GREW BY 9.0% COMPARED WITH THE PRIOR YEAR QUARTER, AND WAS 36.7% OF TOTAL REVENUE IN THE FIRST QUARTER o CONTINUED STRONG ASSET QUALITY WITH NET RECOVERIES DURING THE QUARTER NET INCOME: ----------- Net income was $1.2 million, or $0.47 per diluted share, for the quarter ended March 31, 2004 as compared to $1.1 million, or $0.44 per diluted share, for the quarter ended March 31, 2003. All per share amounts reflect a special 5% stock dividend paid in December 2003. "We are off to a strong start in 2004 as a result of many strategic growth initiatives put in place during 2003 and prior," said James Tilley, President and Chief Executive Officer. "Both of our business segments, banking and financial services, realized significant revenue growth during the first quarter. Net interest income for the first quarter was up by 11.6%, compared to the first quarter of 2003, reflecting growth in loans and taxable securities and lower funding costs. Additionally, deposits grew by 24.8% in the first quarter as the result of a large influx of municipal tax revenue deposits, which exceeded our expectations. A 30% increase in fees related to our insurance business, was responsible for growth in non-interest income compared with the first quarter of 2003." FINANCIAL POSITION: ------------------- Total assets increased by 19.6%, to $400.3 million at March 31, 2004, compared to $334.7 million at December 31, 2003. The increase to total assets, held primarily as securities available-for-sale and federal funds sold, resulted from the continued success of the Bank's municipal deposit program. The Bank's municipal deposit program, called Muni-Vest, is a savings account paying competitive money market rates on municipal deposits. Asset quality continues to remain strong with net recoveries of $56 thousand in the first quarter of 2004. Non-performing loans totaled 0.11% of total loans outstanding at March 31, 2004 as compared to 0.49% at December 31, 2003. The allowance for loan losses totaled $2.7 million or 1.42% of gross loans outstanding at March 31, 2004, as compared to $2.5 million, or 1.35% at December 31, 2003. OPERATIONAL RESULTS: -------------------- Net interest income of $3.0 million for the first quarter 2004 represented a $0.3 million increase from the first quarter 2003, primarily as a result of growth in interest-earning assets. Non-interest income was $2.3 million for the first quarter 2004, an increase of $0.2 million or 9.0% over the first quarter 2003. Insurance fee revenue from M&W Agency, Inc. increased $0.3 million, or 30.1% over the prior year quarter. The Agency's increased fee revenue in the quarter was primarily the result of its acquisition of two insurance agencies on January 2, 2004. The Elwood Agency and Easy PA Agency, both in Hamburg, New York, were acquired and principals and employees from those two agencies have joined the M&W Agency during the first quarter of 2004. Net gain on sales of securities was $143 thousand for the quarter, down from $249 thousand for the quarter ended March 31, 2003. Non-interest expense was $3.6 million for the first quarter 2004, an increase of $0.3 million, or 9.8%, over the first quarter 2003. The primary component of the increase of $0.3 million for the quarter was increased salary and employee benefit expense related to Company growth and merit pay increases paid in early 2004. Professional services expense for the quarter was $176 thousand, compared to $267 thousand for the first quarter of 2003. The larger professional services expense in 2003 was primarily related to a project to increase the Bank's fee income. Other miscellaneous expense increased by $100 thousand compared with the first quarter 2003, due to a number of items including increased operating costs for the M&W Agency insurance operations reflecting the two January agency acquisitions, as well as other transaction-based expenses related to the increased size and volume in the Bank's business. SHARE REPURCHASE PROGRAM: ------------------------- The Company has been active in repurchasing shares of its common stock on the open market during the first quarter of 2004. During the quarter ended March 31, 2004, the Company purchased 5,400 shares of its common stock an average cost of $24.86 per share. The Company expects to remain active in repurchasing shares of its common stock while conditions are deemed appropriate by management for use in the Company's Dividend Reinvestment Plan, Employee Stock Purchase Plan, Director and Officer Long-Term Incentive Plan and otherwise. OUTLOOK: -------- "The establishment of a branch presence in the Amherst and Lancaster markets has expanded our brand recognition, opened the door to new opportunities and has provided growth for the Bank," Tilley stated. "The success we have realized at attracting customers in these new markets confirms our decision to enter the North Buffalo-Kenmore market this summer with a branch located at the corner of Delaware Avenue and Hinman Drive. We continue to search for other opportunities to expand our Western New York banking franchise by establishing de novo locations, or through acquisition. As we demonstrated in January, with the acquisition of two additional insurance agencies, we also remain committed to expanding our insurance business, which has grown to approximately 21.3% of revenue." During the first quarter, the Company announced that the Board of Directors declared a semi-annual dividend of $0.33 per share on its outstanding common stock, an increase of 3.1% to the dividend paid to shareholders in October 2003, and a 10.0% increase to the dividend paid to shareholders in April 2003, when retroactively adjusting the October and April 2003 dividends per share to reflect the December 2003 special five percent stock dividend. Attached are Unaudited Consolidated Statements of Income, Balance Sheets, and Condensed Consolidated Average Balance Sheets and Annualized Rates for Evans Bancorp, Inc. A conference call will be held with Company management at 11:00 a.m. (ET) on Wednesday, April 21, 2004 to discuss performance results for the first quarter 2004 at 1-800-901-5217 (request Evans Bancorp Conference Call - passcode 80221811). An audio recording will be available one hour after the call through April 28, 2004 at 12:00 p.m., and may be accessed at 1-888-286-8010, passcode 82458861. The call will also be simultaneously broadcast live over the Internet through a link located at the following location: http://www.evansbancorp.com/investRel.cfm and will be archived at the same location, accessible for one year following the call. There is no charge to access either event. Evans Bancorp, Inc. is the holding company for Evans National Bank, a commercial bank with nine branches located in Western New York, which had approximately $400.3 million in assets and approximately $332.3 million in deposits at March 31, 2004. Evans National Bank also owns 100% of the capital stock of M&W Agency, Inc., a retail property and casualty insurance agency with eleven offices in Western New York, and 100% of the capital stock of ENB Associates, Inc. which provides non-deposit investment products. Evans Bancorp, Inc. common stock is listed on the Nasdaq National Market under the symbol EVBN. This press release includes "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, revenues 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 the Company to differ materially from the results expressed or implied by such forward-looking statements. Information on factors that could affect the Company's business and results is discussed in the Company's periodic reports filed with the Securities and Exchange Commission. Forward looking statements speak only as of the date they are made. The Company 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 SUBSIDIARY UNAUDITED CONSOLIDATED BALANCE SHEETS March 31, 2004 and December 31, 2003
March 31, December 31, 2004 2003 ---------------- ----------------- (In thousands except share and per share amounts) ASSETS Cash and due from banks $ 11,027 $ 8,509 Federal funds sold 22,525 -- --------- --------- Total cash and cash equivalents 33,552 8,509 Interest bearing deposits at other banks 1,083 98 Securities: Available-for-sale, at fair value 150,742 116,807 Held-to-maturity, at amortized cost 3,681 3,749 Loans, net 189,441 185,528 Properties and equipment, net 6,215 5,982 Goodwill 2,945 2,945 Intangible assets 1,913 1,177 Bank-owned life insurance 7,424 7,323 Other assets 3,342 2,559 --------- --------- TOTAL ASSETS $ 400,338 $ 334,677 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits: Demand 51,105 51,885 NOW and money market 11,363 11,464 Regular savings 168,113 105,599 Time deposits 101,707 97,377 --------- --------- Total deposits 332,288 266,325 Other borrowed funds 21,476 25,388 Securities sold under agreements to repurchase 6,947 5,460 Dividend payable 817 -- Other liabilities 4,549 4,180 --------- --------- Total liabilities 366,077 301,353 --------- --------- CONTINGENT LIABILITIES AND COMMITMENTS STOCKHOLDERS' EQUITY Common stock, $.50 par value; 10,000,000 shares authorized; 2,491,188 and 2,459,246 shares issued, respectively, and 2,470,827 and 2,444,285 shares outstanding, respectively 1,246 1,230 Capital surplus 20,104 19,359 Retained earnings 11,496 11,145 Accumulated other comprehensive income, net of tax 1,878 1,918 --------- --------- 34,724 33,652 Less: Treasury stock, at cost (20,361 and 14,961 shares, respectively) (463) (328) --------- --------- Total stockholders' equity 34,261 33,324 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 400,338 $ 334,677 ========= =========
EVANS BANCORP, INC. AND SUBSIDIARY UNAUDITED CONSOLIDATED STATEMENTS OF INCOME For the Three Months ended March 31, 2004 and 2003
Three Months Ended March 31, 2004 2003 ---------- ---------- (In thousands except share and per share amounts) INTEREST INCOME Loans $ 2,771 $ 2,640 Federal funds sold & interest on deposits in other banks 20 48 Securities: Taxable 678 572 Non-taxable 554 561 ---------- ---------- Total interest income 4,023 3,821 INTEREST EXPENSE Interest on deposits 846 1,013 Interest on borrowings 180 122 ---------- ---------- Total interest expense 1,026 1,135 NET INTEREST INCOME 2,997 2,686 PROVISION FOR LOAN LOSSES 136 120 ---------- ---------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,861 2,566 NON-INTEREST INCOME: Service charges 430 450 Insurance service and fees 1,355 1,041 Commission fees 35 40 Net gain on sales of securities 143 249 Premiums on loans sold 5 20 Other 362 338 ---------- ---------- Total non-interest income 2,330 2,138 NON-INTEREST EXPENSE: Salaries and employee benefits 1,979 1,686 Occupancy 410 404 Supplies 87 84 Repairs and maintenance 102 119 Advertising and public relations 84 76 Professional services 176 267 FDIC assessments 11 9 Other insurance 86 68 Other 700 597 ---------- ---------- Total non-interest expense 3,635 3,310 ---------- ---------- Income before income taxes 1,556 1,394 INCOME TAXES 388 320 ---------- ---------- NET INCOME $ 1,168 $ 1,074 ========== ========== Net income per common share-basic* $ 0.47 $ 0.44 ========== ========== Net income per common share-diluted* $ 0.47 $ 0.44 ========== ========== Weighted average number of common shares* 2,475,574 2,450,870 ========== ========== Weighted average number of diluted shares* 2,476,715 2,450,870 ========== ========== *Adjusted for 5 percent stock dividend paid December 2003
EVANS BANCORP, INC AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED RATES For the Three Months ended March 31, 2004 and 2003
THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, 2004 MARCH 31, 2003 AVERAGE INTEREST AVERAGE INTEREST OUTSTANDING EARNED/ YIELD/ OUTSTANDING EARNED/ YIELD/ BALANCE PAID RATE BALANCE PAID RATE (000) (000) (000) (000) ASSETS Interest-earning assets: Loans, net $185,900 $2,771 5.96% $154,194 $2,640 6.85% Taxable investments 73,584 677 3.68% 65,766 572 3.48% Tax-exempt investments 51,417 554 4.31% 50,739 561 4.42% Time deposits-other bank 185 1 1.69% 877 6 2.60% Federal funds sold 9,597 20 0.82% 14,252 42 1.19% -------- ------ ---- -------- ------ ---- Total interest-earning assets 320,683 4,023 5.02% 285,828 3,821 5.35% ====== ====== Noninterest-earning assets Cash and due from banks $ 9,851 $ 9,845 Premises and equipment, net 6,140 5,414 Other assets 14,613 11,388 -------- -------- Total Assets 351,287 312,475 ======== ======== LIABILITIES & STOCKHOLDERS' EQUITY Interest-bearing liabilities: NOW accounts 11,069 6 0.20% $ 9,904 $ 6 0.24% Savings deposits 118,782 228 0.77% 109,659 293 1.07% Time deposits 100,266 612 2.44% 97,896 714 2.92% Fed funds purchased 4,082 11 1.04% - - 0.00% Securities sold u/a to repurchase 7,789 16 0.86% 5,606 16 1.14% FHLB advances 17,773 148 3.32% 8,095 99 4.89% Notes payable 787 5 2.62% 669 7 3.95% -------- ------ ---- -------- ------ ---- Total interest-bearing liabilities 260,548 $1,026 1.58% 231,829 $1,135 1.96% ------ ------ Noninterest-bearing liabilities: Demand deposits 52,083 44,764 Other 4,142 4,801 -------- -------- Total liabilities $316,773 $281,394 Stockholders' equity 34,514 31,081 -------- -------- Total Liabilities and Stockholders' Equity $351,287 $312,475 ======== ======== Net interest earnings $2,997 $2,686 ====== ====== Net yield on interest earning assets 3.74% 3.76%