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Section 1: 8-K (8-K)

Q3 2018evbn 8-K Earnings

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 8-K



CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



 

 

Date of report (Date of earliest event reported):

 

October 25, 2018



Evans Bancorp, Inc.
_______________________________________
(Exact Name of Registrant as Specified in Charter)



 

 



 

 

New York

0-18539

161332767

______________________________
(State or Other  Jurisdiction

_______________
(Commission

___________________
(I.R.S. Employer

of Incorporation)

File Number)

Identification No.)



 

 



 

 

One Grimsby Drive, Hamburg, New York

 

14075

_____________________________________________
(Address of Principal Executive Offices)

 

____________
(Zip Code)





 

 



 

 

Registrant’s Telephone Number, Including Area Code:

 

716-926-2000



Not Applicable
____________________________________________________
Former Name or Former Address, if Changed Since Last Report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)  
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)  
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 

Item 2.02 Results of Operations and Financial Condition.



On October 25, 2018, Evans Bancorp, Inc. (“the Company”) issued a press release setting forth its results of operations and financial condition for the third quarter of 2018.  A copy of that press release is attached hereto as Exhibit 99.1.







Item 9.01 Financial Statements and Exhibits.



(d) Exhibits

Exhibit 99.1 – Press Release of Evans Bancorp, Inc. dated October 25, 2018



Exhibit Index





 

Exhibit No.

Description

99.1

Press Release of Evans Bancorp, Inc. dated October 25, 2018























































The information in Item 2.02 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.  Neither the filing or furnishing of any exhibit to this report nor the inclusion in such exhibits of a reference to the Company’s Internet address shall, under any circumstances, be deemed to incorporate the information available at such address into this report.  Information available at the Company’s Internet address is not part of this report.



 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.





 

 

 

 



 

 

   

 



 

Evans Bancorp, Inc.



 

 

   

 

October 25, 2018

 

By:

   

/s/ David J. Nasca



 

 

   




 

 

   

Name: David J. Nasca



 

 

   

Title: President and Chief Executive Officer







 

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Q3 2018 evbn 8-K Exhibit 991

News

Release


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

 

FOR IMMEDIATE RELEASE

Evans Bancorp Net Income Increases 29% to
$4.8 Million in the 2018 Third Quarter

HAMBURG, NY, October 25, 2018 – 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 third quarter ended September 30, 2018.

THIRD QUARTER 2018 HIGHLIGHTS (compared with prior-year period unless otherwise noted)

·

Net income increased 29% to $4.8 million; Earnings per diluted share grew 28% to $0.97

·

Net interest income increased 9% to $12.1 million

·

Loan portfolio of $1.2 billion up $30 million in the quarter, or 11% on an annualized basis

·

9% growth of average demand deposits

·

Acquisition of Richardson & Stout Insurance Agency (“R&S”) contributed to total insurance revenue of $3.2 million, an increase of 48%

·

Recognized $350,000 of community investments in the third quarter

Net income was $4.8 million, or $0.97 per diluted share, in the third quarter of 2018, compared with
$3.8 million, or $0.77 per diluted share, in the trailing second quarter of 2018 and $3.7 million, or $0.76 per diluted share, in last year’s third quarter.  The increase over both comparative periods reflects higher interest income due to loan growth, an increase in non-interest income due to higher insurance revenue and lower income tax provision.  Return on average equity was 15.35% for the third quarter of 2018, compared with 12.39% in the trailing second quarter of 2018 and 12.71% in the third quarter of 2017.

“Evans continues to experience meaningful client growth both organically and through acquisition.  The strong performance in loans and deposits and the significant increase in insurance revenue is evidence of our expanding market presence,” said David J. Nasca, President and CEO of Evans Bancorp. “The new business we are capturing has allowed us to offset margin pressures related to interest rate increases and significant competition for funding. Successful results have enabled us to execute our plan to make significant community investments, the details of which will be announced in the next several weeks.”


 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 2 of 8



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

($ in thousands)



 

 

 

 

 

 

 

 

 

 

 



 

3Q 2018

 

 

2Q 2018

 

 

3Q 2017



 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

14,690 

 

 

$

14,247 

 

 

$

12,574 

Interest expense

 

 

2,604 

 

 

 

2,051 

 

 

 

1,479 

Net interest income

 

 

12,086 

 

 

 

12,196 

 

 

 

11,095 

Provision for loan losses

 

 

252 

 

 

 

659 

 

 

 

161 

Net interest income after provision

 

$

11,834 

 

 

$

11,537 

 

 

$

10,934 



 

 

 

 

 

 

 

 

 

 

 

Net interest income decreased $0.1 million from the second quarter of 2018, but increased $1.0 million, or 9% from the prior-year third quarter.  The year-over-year increase was driven by average interest-earning asset growth, particularly loans, partially offset by an increase in interest expense. Average commercial loans, including commercial real estate and commercial and industrial loans, were $918 million, up $20 million from the second quarter of 2018 and up $129 million from the 2017 third quarter.  The decrease from the second quarter reflects net interest margin compression, offset by higher interest income from loan growth.

Third quarter net interest margin of 3.73% decreased 16 basis points from the 2018 second quarter, and 18 basis points from the third quarter of 2017.  Net interest income in last year’s third quarter benefited $0.4 million, or 14 basis points to net interest margin, from the repayment in full of two unrelated loans that were formerly in nonaccrual status. 

Margin has been impacted by rising funding costs.  The cost of interest-bearing liabilities was 1.04%, compared with 0.86% in the second quarter of 2018 and 0.69% in the third quarter of 2017.  The increase in short-term market interest rates, along with a very competitive deposit market caused the increase in funding costs.  The Company has experienced a shift in deposit mix as consumers in low-cost legacy savings deposit products have migrated to higher-rate time deposits.  The Company has also increased its brokered time deposit activity as part of its funding strategy.  Average time deposits comprised 23% of average total deposits during the third quarter of 2018, compared with 19% and 16% in the second quarter of 2018 and the third quarter of 2017, respectively.

The $0.3 million provision for loan losses for the third quarter of 2018 reflects loan growth and an increase in net charge-offs.  The second quarter 2018 provision included the impact of an increase in non-performing loans during the quarter as a single commercial construction loan of $9 million was downgraded to nonaccrual status.





 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

($ in thousands)

 



 

 

 

 

 

 

 

 

 

 

 

 



 

3Q 2018

 

 

2Q 2018

 

 

3Q 2017

 



 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

23,090 

 

 

$

23,210 

 

 

$

13,389 

 

Total net loan charge-offs (recoveries)

 

 

274 

 

 

 

117 

 

 

 

157 

 

Non-performing loans/ Total loans

 

 

2.00 

%

 

 

2.06 

%

 

 

1.34 

%

Net loan charge-offs (recoveries)/ Average loans

 

 

0.10 

%

 

 

0.04 

%

 

 

0.06 

%

Allowance for loan losses/ Total loans

 

 

1.32 

%

 

 

1.35 

%

 

 

1.42 

%

“Our credit quality metrics have remained consistent during the quarter. We are persistent in our efforts to strengthen the performance of the small number of larger commercial credits that make up the non-performing loan balance,” stated John Connerton, Chief Financial Officer of Evans Bank. “Based on these efforts and management’s analysis we believe we remain appropriately reserved.”





 

 

 

 

 

 

 

 

 

 

 


 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 3 of 8

Non-Interest Income

($ in thousands)



 

3Q 2018

 

 

2Q 2018

 

 

3Q 2017



 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

$

571 

 

 

$

525 

 

 

$

448 

Insurance service and fee revenue

 

 

3,215 

 

 

 

1,952 

 

 

 

2,169 

Bank-owned life insurance

 

 

165 

 

 

 

178 

 

 

 

128 

Loss on tax credit investment

 

 

(165)

 

 

 

-    

 

 

 

(1,338)

Refundable NY state historic tax credit

 

 

150 

 

 

 

-    

 

 

 

972 

Other income

 

 

828 

 

 

 

984 

 

 

 

986 

Total non-interest income

 

$

4,764 

 

 

$

3,639 

 

 

$

3,365 



 

 

 

 

 

 

 

 

 

 

 

The increase in deposit service charges reflects higher fees related to overdrafts as the Company continues to benefit from a new product offered to clients that provides overdraft protection to small businesses

Evans acquired the business of R&S effective July 1, 2018, which contributed $0.8 million in revenue in the quarter.  The remaining increase was due to seasonally higher profit-sharing revenue.

The decrease in other income was due to the loss on sale of equity securities of $0.1 million in the third quarter of 2018. 

Historic tax credit investment activity resulted in a net loss of $0.4 million being recorded in non-interest income in the third quarter of 2017.    There were no new significant historic tax credit investments in the third quarter of 2018. 



 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense

($ in thousands)



 

3Q 2018

 

 

2Q 2018

 

 

3Q 2017



 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

7,090 

 

 

$

6,475 

 

 

$

6,271 

Occupancy

 

 

795 

 

 

 

727 

 

 

 

805 

Advertising and public relations

 

 

258 

 

 

 

326 

 

 

 

311 

Professional services

 

 

588 

 

 

 

626 

 

 

 

514 

Technology and communications

 

 

874 

 

 

 

847 

 

 

 

730 

Amortization of intangibles

 

 

112 

 

 

 

28 

 

 

 

28 

FDIC insurance

 

 

295 

 

 

 

246 

 

 

 

195 

Other expenses

 

 

1,445 

 

 

 

958 

 

 

 

982 

Total non-interest expenses

 

$

11,457 

 

 

$

10,233 

 

 

$

9,836 



 

 

 

 

 

 

 

 

 

 

 

Third quarter non-interest expenses increased 16% from the prior-year period and 12% from the second quarter of 2018.  The most significant component of the increase was due to higher salaries and employee benefits relating to the R&S acquisition and the addition of strategic personnel hires to support the Company’s continued growth.

The increase in technology and communications from last year’s third quarter was due to an increase in ATM card fees and online banking activity. 

The amortization of intangible assets was higher due to the acquisition of R&S.

The increase in other expenses reflects a community contribution accrual of $0.4 million during the third quarter of 2018.  Evans contributes to community organizations that provide positive, meaningful impact to the Western New York region.  Evans has elevated its resource commitment to the community in response to the benefits it has received through federal tax reform.


 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 4 of 8

The Company’s efficiency ratio in the third quarter of 2018 was 66.9%, compared with 64.5% in the second quarter of 2018 and 66.2% in last year’s third quarter.   

Income tax expense was $0.3 million, or an effective tax rate of 6.7%, for the third quarter of 2018 compared with $1.2 million, or 23.3%, in the second quarter of 2018 and $0.7 million, or 16.6%, in last year’s third quarter.  Income taxes were reduced by $0.7 million in the current quarter due to a change in estimate of when certain state historic tax credits will be taxable for federal purposes.  The Company has determined that these tax credits will be subject to lower federal tax rates resulting from recent tax reform.  Historic tax credit transactions lowered the effective tax rate by 13.8% in the third quarter of 2018, compared with no impact on the second quarter of 2018, and 12.4% in last year’s third quarter.  The effective rate in the second and third quarters of 2018 also reflects the benefit of federal tax reform, which decreased the Company’s marginal federal income tax rate from 35% to 21%.

Balance Sheet Highlights

Total assets were $1.38 billion as of September 30, 2018, up $35 million from June 30, 2018 and $161 million, or 13%, higher than $1.22 billion at September 30, 2017, reflecting the Company’s strong loan growth.  Loan balances grew $158 million, or 16%, to $1.16 billion since the end of last year’s third quarter with the growth predominantly in the commercial real estate and commercial and industrial portfolios.     

Investment securities were $138 million at September 30, 2018, $11 million lower than the second quarter of 2018, and $15 million lower than at the end of last year’s third quarter.  The primary objectives of the Company’s investment portfolio are to provide liquidity, provide collateral to secure municipal deposits, and maximize income while preserving safety of principal.  With the yield curve continuing to flatten, there is a reduced advantage to purchasing longer-term investment securities and as a result, there has been a corresponding increase in the Company’s short-term investments and interest-earning cash.    

Total deposits grew $33 million during the quarter to $1.22 billion at September 30, 2018, and were $183 million, or 18%, higher than the balance at the end of last year’s third quarter.  The largest component of the deposit growth during the quarter was in time deposits of $53 million, including $12 million of brokered time deposits.  Total average demand deposits were $233 million for the 2018 third quarter, an increase of $19 million from the third quarter of 2017, which was mostly attributable to growth in commercial demand deposits.

The Company experienced growth of $9 million in its commercial deposit portfolio during the third quarter of 2018.  Municipal deposits decreased $10 million when compared with the balance at June 30, 2018 due to seasonal fluctuations.  Consumer savings deposit growth has been challenging as preferences move toward term products with higher rates and local market competition has stiffened.  Consumer savings deposits declined $20 million during the quarter, while consumer time deposits grew $41 million in the past three months and $97 million in the past year.

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 9.60% at September 30, 2018 compared with 9.94% at
June 30, 2018 and 10.38% at September 30, 2017.  Book value per share increased to $26.03 at
September 30, 2018 compared with $25.63 at June 30, 2018 and $24.60 at September 30, 2017. 

Outlook

Mr. Nasca concluded, “We have delivered net income growth of 25% in the first nine months of 2018 on the heels of last year’s historic performance, providing a strong foundation of growth and momentum to finish the year.  In addition, the opening of a new Business and Relationship Center in the downtown core of Buffalo will allow us to continue our expansion and proactively meet the needs of a resurgent Western New York economy.”

Webcast and Conference Call

The Company will host a conference call and webcast on Thursday, October  25, 2018 at 4:45 p.m. ET.


 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 5 of 8

Management will review the financial and operating results for the third quarter of 2018, as well as the Company’s strategy and outlook.  A question and answer session will follow the formal presentation. 

The conference call can be accessed by calling (201) 689-8471.  Alternatively, the webcast can be monitored at www.evansbancorp.com.

A telephonic replay will be available from 7:45 p.m. ET on the day of the teleconference until Thursday, 
November 1, 2018.  To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13683725, or access the webcast replay at www.evansbancorp.com, where a transcript will be posted once available.

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 $1.4 billion in assets and $1.2 billion in deposits at September 30, 2018.  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.





 

For more information contact:

-OR-

John B. Connerton

Executive Vice President and Chief Financial Officer

Deborah K. Pawlowski

Kei Advisors LLC

Phone: (716) 926-2000
Email: [email protected] 

Phone:  (716) 843-3908
Email:  [email protected]




 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 6 of 8















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(in thousands, except shares and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

$

137,909 

 

 

$

148,628 

 

 

$

164,471 

 

 

$

149,732 

 

 

$

153,367 

 

Loans

 

 

1,155,566 

 

 

 

1,125,895 

 

 

 

1,109,961 

 

 

 

1,065,315 

 

 

 

998,005 

 

Allowance for loan losses

 

 

(15,213)

 

 

 

(15,235)

 

 

 

(14,693)

 

 

 

(14,019)

 

 

 

(14,182)

 

Goodwill and intangible assets

 

 

13,104 

 

 

 

8,496 

 

 

 

8,525 

 

 

 

8,553 

 

 

 

8,581 

 

All other assets

 

 

89,557 

 

 

 

78,307 

 

 

 

85,434 

 

 

 

86,052 

 

 

 

74,383 

 

Total assets

 

$

1,380,923 

 

 

$

1,346,091 

 

 

$

1,353,698 

 

 

$

1,295,633 

 

 

$

1,220,154 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

236,079 

 

 

 

224,373 

 

 

 

238,827 

 

 

 

219,664 

 

 

 

216,250 

 

NOW deposits

 

 

110,768 

 

 

 

121,170 

 

 

 

124,997 

 

 

 

109,378 

 

 

 

96,741 

 

Savings deposits

 

 

574,262 

 

 

 

595,500 

 

 

 

566,314 

 

 

 

535,730 

 

 

 

552,559 

 

Time deposits

 

 

294,514 

 

 

 

241,425 

 

 

 

204,295 

 

 

 

186,457 

 

 

 

166,769 

 

Total deposits

 

 

1,215,623 

 

 

 

1,182,468 

 

 

 

1,134,433 

 

 

 

1,051,229 

 

 

 

1,032,319 

 

Borrowings

 

 

24,309 

 

 

 

25,348 

 

 

 

83,114 

 

 

 

108,869 

 

 

 

54,310 

 

Other liabilities

 

 

15,331 

 

 

 

14,700 

 

 

 

16,278 

 

 

 

17,193 

 

 

 

16,033 

 

Total stockholders' equity

 

 

125,660 

 

 

 

123,575 

 

 

 

119,873 

 

 

 

118,342 

 

 

 

117,492 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

4,827,701 

 

 

 

4,821,381 

 

 

 

4,803,334 

 

 

 

4,782,505 

 

 

 

4,776,360 

 

Book value per share

 

$

26.03 

 

 

$

25.63 

 

 

$

24.96 

 

 

$

24.74 

 

 

$

24.60 

 

Tier 1 leverage ratio

 

 

9.60 

%

 

 

9.94 

%

 

 

9.81 

%

 

 

10.11 

%

 

 

10.38 

%

Tier 1 risk-based capital ratio

 

 

11.34 

%

 

 

11.63 

%

 

 

11.48 

%

 

 

11.72 

%

 

 

12.33 

%

Total risk-based capital ratio

 

 

12.59 

%

 

 

12.88 

%

 

 

12.73 

%

 

 

12.97 

%

 

 

13.59 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

23,090 

 

 

$

23,210 

 

 

$

14,771 

 

 

$

13,715 

 

 

$

13,389 

 

Total net loan charge-offs (recoveries)

 

 

274 

 

 

 

117 

 

 

 

93 

 

 

 

765 

 

 

 

157 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

 

2.00 

%

 

 

2.06 

%

 

 

1.33 

%

 

 

1.29 

%

 

 

1.34 

%

Net loan charge-offs (recoveries)/Average loans

 

 

0.10 

%

 

 

0.04 

%

 

 

0.03 

%

 

 

0.30 

%

 

 

0.06 

%

Allowance for loans losses/Total loans

 

 

1.32 

%

 

 

1.35 

%

 

 

1.32 

%

 

 

1.32 

%

 

 

1.42 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 7 of 8









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA  (UNAUDITED)

(in thousands, except share and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

2018

 

2018

 

2018

 

2017

 

2017



 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

Interest income

 

$

14,690 

 

 

$

14,247 

 

 

$

13,366 

 

 

$

12,794 

 

 

$

12,574 

 

Interest expense

 

 

2,604 

 

 

 

2,051 

 

 

 

1,914 

 

 

 

1,634 

 

 

 

1,479 

 

Net interest income

 

 

12,086 

 

 

 

12,196 

 

 

 

11,452 

 

 

 

11,160 

 

 

 

11,095 

 

Provision for loan losses

 

 

252 

 

 

 

659 

 

 

 

767 

 

 

 

602 

 

 

 

161 

 

Net interest income after provision

 

 

11,834 

 

 

 

11,537 

 

 

 

10,685 

 

 

 

10,558 

 

 

 

10,934 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

571 

 

 

 

525 

 

 

 

509 

 

 

 

481 

 

 

 

448 

 

Insurance service and fee revenue

 

 

3,215 

 

 

 

1,952 

 

 

 

1,965 

 

 

 

1,649 

 

 

 

2,169 

 

Bank-owned life insurance

 

 

165 

 

 

 

178 

 

 

 

171 

 

 

 

464 

 

 

 

128 

 

Loss on tax credit investment

 

 

(165)

 

 

 

-    

 

 

 

-    

 

 

 

(1,740)

 

 

 

(1,338)

 

Refundable NY state historic tax credit

 

 

150 

 

 

 

-    

 

 

 

-    

 

 

 

1,224 

 

 

 

972 

 

Other income

 

 

828 

 

 

 

984 

 

 

 

1,141 

 

 

 

949 

 

 

 

986 

 

Total non-interest income

 

 

4,764 

 

 

 

3,639 

 

 

 

3,786 

 

 

 

3,027 

 

 

 

3,365 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,090 

 

 

 

6,475 

 

 

 

6,627 

 

 

 

6,248 

 

 

 

6,271 

 

Occupancy

 

 

795 

 

 

 

727 

 

 

 

758 

 

 

 

844 

 

 

 

805 

 

Advertising and public relations

 

 

258 

 

 

 

326 

 

 

 

124 

 

 

 

378 

 

 

 

311 

 

Professional services

 

 

588 

 

 

 

626 

 

 

 

653 

 

 

 

594 

 

 

 

514 

 

Technology and communications

 

 

874 

 

 

 

847 

 

 

 

764 

 

 

 

740 

 

 

 

730 

 

Amortization of intangibles

 

 

112 

 

 

 

28 

 

 

 

28 

 

 

 

29 

 

 

 

28 

 

FDIC insurance

 

 

295 

 

 

 

246 

 

 

 

232 

 

 

 

189 

 

 

 

195 

 

Other expenses

 

 

1,445 

 

 

 

958 

 

 

 

985 

 

 

 

1,364 

 

 

 

982 

 

Total non-interest expenses

 

 

11,457 

 

 

 

10,233 

 

 

 

10,171 

 

 

 

10,386 

 

 

 

9,836 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

5,141 

 

 

 

4,943 

 

 

 

4,300 

 

 

 

3,199 

 

 

 

4,463 

 

Income tax provision

 

 

346 

 

 

 

1,152 

 

 

 

981 

 

 

 

2,207 

 

 

 

740 

 

Net income

 

 

4,795 

 

 

 

3,791 

 

 

 

3,319 

 

 

 

992 

 

 

 

3,723 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

0.97 

 

 

$

0.77 

 

 

$

0.68 

 

 

$

0.20 

 

 

$

0.76 

 

Cash dividends per common share

 

$

0.46 

 

 

$

-    

 

 

$

0.46 

 

 

$

-    

 

 

$

0.40 

 

Weighted average number of diluted shares

 

 

4,940,822 

 

 

 

4,933,522 

 

 

 

4,912,289 

 

 

 

4,904,270 

 

 

 

4,896,967 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.40 

%

 

 

1.13 

%

 

 

1.01 

%

 

 

0.32 

%

 

 

1.24 

%

Return on average stockholders' equity

 

 

15.35 

%

 

 

12.39 

%

 

 

11.15 

%

 

 

3.32 

%

 

 

12.71 

%

Efficiency ratio

 

 

66.88 

%

 

 

64.45 

%

 

 

66.56 

%

 

 

70.44 

%

 

 

66.15 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

Evans Bancorp Net Income Increases 29% to $4.8 Million in the 2018 Third Quarter

October 25, 2018

Page 8 of 8









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES  (UNAUDITED)

(in thousands)



 

2018

 

2018

 

2018

 

2017

 

2017



 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

1,127,173 

 

 

$

1,098,391 

 

 

$

1,067,282 

 

 

$

1,009,497 

 

 

$

970,988 

 

Investment securities

 

 

145,122 

 

 

 

155,089 

 

 

 

160,739 

 

 

 

155,475 

 

 

 

152,991 

 

Interest-bearing deposits at banks

 

 

12,641 

 

 

 

4,013 

 

 

 

2,712 

 

 

 

2,380 

 

 

 

1,713 

 

Total interest-earning assets

 

 

1,284,936 

 

 

 

1,257,493 

 

 

 

1,230,733 

 

 

 

1,167,352 

 

 

 

1,125,692 

 

Non interest-earning assets

 

 

87,402 

 

 

 

81,113 

 

 

 

80,644 

 

 

 

79,234 

 

 

 

72,887 

 

Total Assets

 

$

1,372,338 

 

 

$

1,338,606 

 

 

$

1,311,377 

 

 

$

1,246,586 

 

 

$

1,198,579 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

115,417 

 

 

 

120,510 

 

 

 

114,268 

 

 

 

92,089 

 

 

 

91,962 

 

Savings

 

 

581,484 

 

 

 

576,197 

 

 

 

552,546 

 

 

 

549,466 

 

 

 

545,900 

 

Time deposits

 

 

274,275 

 

 

 

214,410 

 

 

 

194,223 

 

 

 

181,291 

 

 

 

163,087 

 

Total interest-bearing deposits

 

 

971,176 

 

 

 

911,117 

 

 

 

861,037 

 

 

 

822,846 

 

 

 

800,949 

 

Other borrowings

 

 

25,749 

 

 

 

50,917 

 

 

 

92,893 

 

 

 

70,986 

 

 

 

51,224 

 

Total interest-bearing liabilities

 

 

996,925 

 

 

 

962,034 

 

 

 

953,930 

 

 

 

893,832 

 

 

 

852,173 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

233,393 

 

 

 

239,546 

 

 

 

223,176 

 

 

 

219,291 

 

 

 

214,228 

 

Other non-interest bearing liabilities

 

 

17,045 

 

 

 

14,614 

 

 

 

15,161 

 

 

 

14,097 

 

 

 

15,035 

 

Stockholders' equity

 

 

124,975 

 

 

 

122,412 

 

 

 

119,110 

 

 

 

119,366 

 

 

 

117,143 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

1,372,338 

 

 

$

1,338,606 

 

 

$

1,311,377 

 

 

$

1,246,586 

 

 

$

1,198,579 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

 

4.81 

%

 

 

4.82 

%

 

 

4.70 

%

 

 

4.65 

%

 

 

4.76 

%

Investment securities

 

 

2.60 

%

 

 

2.67 

%

 

 

2.51 

%

 

 

2.45 

%

 

 

2.35 

%

Interest-bearing deposits at banks

 

 

1.98 

%

 

 

1.50 

%

 

 

1.50 

%

 

 

0.67 

%

 

 

1.62 

%

Total interest-earning assets

 

 

4.54 

%

 

 

4.54 

%

 

 

4.40 

%

 

 

4.35 

%