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Section 1: 10-Q (10-Q)

evbn 20180930 Q3



United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For quarterly period ended September 30, 2018



TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from             to ______



Commission file number    001-35021



                   EVANS BANCORP, INC.                    

(Exact name of registrant as specified in its charter)



          New York                            16-1332767

(State or other jurisdiction of         (I.R.S. Employer

incorporation or organization)       Identification No.)



One Grimsby Drive, Hamburg, NY        14075

(Address of principal executive offices)  (Zip Code)



       (716) 926-2000    

(Registrant's telephone number, including area code)



            Not Applicable        

 (Former name, former address and former fiscal year, if changed

 since last report)



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.





 

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 



If an emerging growth company, indicate by checkmark 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. 



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   No 



Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: Common Stock, $.50 par value, 4,830,825 shares as of October 30, 2018



 

 

 


 

Table of Contents



INDEX





EVANS BANCORP, INC. AND SUBSIDIARIES







 

 



 

 

PART 1.  FINANCIAL INFORMATION

PAGE



 

 

Item 1.

Financial Statements

 



 

 



Unaudited Consolidated Balance Sheets – September 30, 2018 and December 31, 2017



 

 



Unaudited Consolidated Statements of Income – Three months ended September 30, 2018 and 2017



 

 



Unaudited Consolidated Statements of Income – Nine months ended September 30, 2018 and 2017



 

 



Unaudited Consolidated Statements of Comprehensive Income – Three months ended September 30, 2018 and 2017



 

 



Unaudited Consolidated Statements of Comprehensive Income – Nine months ended September 30, 2018 and 2017



 

 



Unaudited Consolidated Statements of Changes in Stockholders’ Equity – Nine months ended September 30, 2018 and 2017



 

 



Unaudited Consolidated Statements of Cash Flows - Nine months ended September 30, 2018 and 2017



 

 



Notes to Unaudited Consolidated Financial Statements



 

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

38 



 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

47 



 

 

Item 4.

Controls and Procedures

48 



 

 

PART II.  OTHER INFORMATION

 



 

 

Item 1.

Legal Proceedings

49 



 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

49 



 

 

Item 6.

Exhibits

49 



 

 



Signatures

51 



 

 







 

 

 


 

Table of Contents











 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

SEPTEMBER 30, 2018 AND DECEMBER 31, 2017

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 



 

September 30,

 

December 31,



 

2018

 

2017

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

12,621 

 

$

13,751 

Interest-bearing deposits at banks

 

 

15,501 

 

 

7,579 

Securities:

 

 

 

 

 

 

Available for sale, at fair value (amortized cost: $141,714 at September 30, 2018;

 

 

136,539 

 

 

143,818 

$145,232 at December 31, 2017)

 

 

 

 

 

 

Held to maturity, at amortized cost (fair value: $1,338 at September 30, 2018;

 

 

1,370 

 

 

5,334 

$5,261 at December 31, 2017)

 

 

 

 

 

 

Equity securities, at fair value at September 30, 2018; at cost at December 31, 2017

 

 

-    

 

 

580 

Federal Home Loan Bank common stock, at cost

 

 

1,475 

 

 

4,863 

Federal Reserve Bank common stock, at cost

 

 

1,929 

 

 

1,916 

Loans held for sale

 

 

1,283 

 

 

-    

Loans, net of allowance for loan losses of $15,213 at September 30, 2018

 

 

 

 

 

 

and $14,019 at December 31, 2017

 

 

1,139,070 

 

 

1,051,296 

Properties and equipment, net of accumulated depreciation of $19,102 at September 30, 2018

 

 

 

 

 

 

and $18,255 at December 31, 2017

 

 

10,449 

 

 

10,564 

Goodwill and intangible assets

 

 

13,104 

 

 

8,553 

Bank-owned life insurance

 

 

28,237 

 

 

27,729 

Other assets

 

 

19,345 

 

 

19,650 



 

 

 

 

 

 

TOTAL ASSETS

 

$

1,380,923 

 

$

1,295,633 



 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Demand

 

$

236,079 

 

$

219,664 

NOW

 

 

110,768 

 

 

109,378 

Savings

 

 

574,262 

 

 

535,730 

Time

 

 

294,514 

 

 

186,457 

Total deposits

 

 

1,215,623 

 

 

1,051,229 



 

 

 

 

 

 

Securities sold under agreement to repurchase

 

 

2,979 

 

 

9,289 

Other borrowings

 

 

10,000 

 

 

88,250 

Other liabilities

 

 

15,331 

 

 

17,193 

Junior subordinated debentures

 

 

11,330 

 

 

11,330 

Total liabilities

 

 

1,255,263 

 

 

1,177,291 



 

 

 

 

 

 

CONTINGENT LIABILITIES AND COMMITMENTS

 

 

 

 

 

 



 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

Common stock, $.50 par value, 10,000,000 shares authorized; 4,829,577

 

 

 

 

 

 

and 4,783,562 shares issued at September 30, 2018 and December 31, 2017,

 

 

 

 

 

 

respectively, and 4,827,701 and 4,782,505 outstanding at September 30, 2018

 

 

 

 

 

 

and December 31, 2017, respectively

 

 

2,417 

 

 

2,394 

Capital surplus

 

 

60,422 

 

 

59,444 

Treasury stock, at cost, 1,876 and 1,057 shares at September 30, 2018 and

 

 

 

 

 

 

December 31, 2017, respectively

 

 

-    

 

 

-    

Retained earnings

 

 

68,902 

 

 

59,921 

Accumulated other comprehensive loss, net of tax

 

 

(6,081)

 

 

(3,417)

Total stockholders' equity

 

 

125,660 

 

 

118,342 



 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,380,923 

 

$

1,295,633 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 









1

 


 

Table of Contents







 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

THREE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2018

 

2017

INTEREST INCOME

 

 

 

 

 

 

Loans

 

$

13,676 

 

$

11,659 

Interest-bearing deposits at banks

 

 

63 

 

 

Securities:

 

 

 

 

 

 

Taxable

 

 

805 

 

 

706 

Non-taxable

 

 

146 

 

 

202 

Total interest income

 

 

14,690 

 

 

12,574 

INTEREST EXPENSE

 

 

 

 

 

 

Deposits

 

 

2,412 

 

 

1,252 

Other borrowings

 

 

51 

 

 

116 

Junior subordinated debentures

 

 

141 

 

 

111 

Total interest expense

 

 

2,604 

 

 

1,479 

NET INTEREST INCOME  

 

 

12,086 

 

 

11,095 

PROVISION FOR LOAN LOSSES

 

 

252 

 

 

161 

NET INTEREST INCOME AFTER

 

 

 

 

 

 

PROVISION FOR LOAN LOSSES

 

 

11,834 

 

 

10,934 

NON-INTEREST INCOME

 

 

 

 

 

 

Deposit service charges

 

 

571 

 

 

448 

Insurance service and fees

 

 

3,215 

 

 

2,169 

Loss on sale of equity securities

 

 

(98)

 

 

-    

Gain on loans sold

 

 

 

 

61 

Bank-owned life insurance

 

 

165 

 

 

128 

Loss on tax credit investment

 

 

(165)

 

 

(1,338)

Refundable state historic tax credit

 

 

150 

 

 

972 

Interchange fee income

 

 

413 

 

 

379 

Other

 

 

507 

 

 

546 

Total non-interest income

 

 

4,764 

 

 

3,365 

NON-INTEREST EXPENSE

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,090 

 

 

6,271 

Occupancy

 

 

795 

 

 

805 

Advertising and public relations

 

 

258 

 

 

311 

Professional services

 

 

588 

 

 

514 

Technology and communications

 

 

874 

 

 

730 

Amortization of intangibles

 

 

112 

 

 

28 

FDIC insurance

 

 

295 

 

 

195 

Other

 

 

1,445 

 

 

982 

Total non-interest expense

 

 

11,457 

 

 

9,836 

INCOME BEFORE INCOME TAXES

 

 

5,141 

 

 

4,463 

INCOME TAX PROVISION

 

 

346 

 

 

740 

NET INCOME

 

$

4,795 

 

$

3,723 



 

 

 

 

 

 

Net income per common share-basic

 

$

0.99 

 

$

0.78 

Net income per common share-diluted

 

$

0.97 

 

$

0.76 

Cash dividends per common share

 

$

0.46 

 

$

0.40 

Weighted average number of common shares outstanding

 

 

4,824,318 

 

 

4,774,602 

Weighted average number of diluted shares outstanding

 

 

4,940,822 

 

 

4,896,967 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 



2

 


 

Table of Contents







 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 



Nine Months Ended September 30,



2018

 

2017

INTEREST INCOME

 

 

 

 

 

Loans

$

39,238 

 

$

32,551 

Interest-bearing deposits at banks

 

88 

 

 

62 

Securities:

 

 

 

 

 

Taxable

 

2,465 

 

 

1,705 

Non-taxable

 

512 

 

 

636 

Total interest income

 

42,303 

 

 

34,954 

INTEREST EXPENSE

 

 

 

 

 

Deposits

 

5,669 

 

 

3,558 

Other borrowings

 

509 

 

 

224 

Junior subordinated debentures

 

391 

 

 

315 

Total interest expense

 

6,569 

 

 

4,097 

NET INTEREST INCOME  

 

35,734 

 

 

30,857 

PROVISION FOR LOAN LOSSES

 

1,678 

 

 

136 

NET INTEREST INCOME AFTER

 

 

 

 

 

PROVISION FOR LOAN LOSSES

 

34,056 

 

 

30,721 

NON-INTEREST INCOME

 

 

 

 

 

Deposit service charges

 

1,605 

 

 

1,266 

Insurance service and fees

 

7,132 

 

 

6,249 

Loss on sale of equity securities

 

(98)

 

 

-    

Gain on loans sold

 

 

 

131 

Bank-owned life insurance

 

514 

 

 

400 

Loss on tax credit investment

 

(165)

 

 

(2,257)

Refundable state historic tax credit

 

150 

 

 

1,619 

Interchange fee income

 

1,325 

 

 

1,102 

Other

 

1,720 

 

 

1,466 

Total non-interest income

 

12,189 

 

 

9,976 

NON-INTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

 

20,192 

 

 

17,876 

Occupancy

 

2,280 

 

 

2,355 

Advertising and public relations

 

708 

 

 

717 

Professional services

 

1,867 

 

 

1,666 

Technology and communications

 

2,485 

 

 

2,141 

Amortization of intangibles

 

168 

 

 

84 

FDIC insurance

 

773 

 

 

551 

Other

 

3,388 

 

 

2,818 

Total non-interest expense

 

31,861 

 

 

28,208 

INCOME BEFORE INCOME TAXES

 

14,384 

 

 

12,489 

INCOME TAX PROVISION

 

2,479 

 

 

3,002 

NET INCOME

$

11,905 

 

$

9,487 



 

 

 

 

 

Net income per common share-basic

$

2.48 

 

$

2.01 

Net income per common share-diluted

$

2.41 

 

$

1.96 

Cash dividends per common share

$

0.92 

 

$

0.80 

Weighted average number of common shares outstanding

 

4,807,684 

 

 

4,724,774 

Weighted average number of diluted shares outstanding

 

4,933,485 

 

 

4,845,664 



 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 













 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

3

 


 

Table of Contents

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

THREE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

(in thousands)

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2018

 

 

2017



 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

 

$

4,795 

 

 

 

 

$

3,723 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE LOSS, NET OF TAX:

 

 

 

 

 

 

Unrealized (loss) gain on available-for-sale securities

 

 

 

 

(738)

 

 

 

 

 

(112)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plans:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

 

Amortization of actuarial loss

 

33 

 

 

 

 

 

28 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

40 

 

 

 

 

 

32 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE LOSS, NET OF TAX

 

 

(698)

 

 

 

 

 

(80)



 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

 

 

$

4,097 

 

 

 

 

$

3,643 



 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

(in thousands)

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2018

 

 

2017



 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

 

$

11,905 

 

 

 

 

$

9,487 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX:

 

 

 

 

 

 

Unrealized (loss) gain on available-for-sale securities

 

 

 

 

(2,782)

 

 

 

 

 

78 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plans:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

18 

 

 

 

 

 

19 

 

 

 

Amortization of actuarial loss

 

100 

 

 

 

 

 

107 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

118 

 

 

 

 

 

126 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX

 

 

(2,664)

 

 

 

 

 

204 



 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

 

 

$

9,241 

 

 

 

 

$

9,691 



 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 











4

 


 

Table of Contents







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

 

 

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 



 

Common

 

Capital

 

Retained

 

Comprehensive

 

Treasury

 

 

 



 

Stock

 

Surplus

 

Earnings

 

Loss

 

Stock

 

Total

Balance, December 31, 2016

 

$

2,153 

 

$

44,389 

 

$

52,630 

 

$

(2,424)

 

$

-    

 

$

96,748 

Net Income

 

 

 

 

 

 

 

 

9,487 

 

 

 

 

 

 

 

 

9,487 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

204 

 

 

 

 

 

204 

Cash dividends ($0.80 per common share)

 

 

 

 

 

 

 

 

(3,813)

 

 

 

 

 

 

 

 

(3,813)

Stock compensation expense

 

 

 

 

 

462 

 

 

 

 

 

 

 

 

 

 

 

462 

Reissued 741 restricted shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 440,000 shares in stock offering

 

 

220 

 

 

13,922 

 

 

 

 

 

 

 

 

 

 

 

14,142 

Issued 13,936 restricted shares, net of forfeitures

 

 

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 3,253 shares under Dividend Reinvestment Plan

 

 

 

 

124 

 

 

 

 

 

 

 

 

 

 

 

126 

Issued 3,713 shares in Employee Stock Purchase Plan

 

 

 

 

124 

 

 

 

 

 

 

 

 

 

 

 

126 

Issued 10,001 shares in stock option exercises

 

 

 

 

140 

 

 

 

 

 

 

 

 

 

 

 

145 

Repurchased 9,218 shares in treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(342)

 

 

(342)

Reissued 13,300 shares in stock option exercises

 

 

 

 

 

(135)

 

 

 

 

 

 

 

 

342 

 

 

207 

Balance, September 30, 2017

 

$

2,391 

 

$

59,017 

 

$

58,304 

 

$

(2,220)

 

$

-    

 

$

117,492 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017

 

$

2,394 

 

$

59,444 

 

$

59,921 

 

$

(3,417)

 

$

-    

 

$

118,342 

Cumulative-effect adjustment due to change in accounting principle (See Note 1)

 

 

 

 

 

 

 

 

1,496 

 

 

 

 

 

 

 

 

1,496 

Net Income

 

 

 

 

 

 

 

 

11,905 

 

 

 

 

 

 

 

 

11,905 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(2,664)

 

 

 

 

 

(2,664)

Cash dividends ($0.92 per common share)

 

 

 

 

 

 

 

 

(4,420)

 

 

 

 

 

 

 

 

(4,420)

Stock compensation expense

 

 

 

 

 

597 

 

 

 

 

 

 

 

 

 

 

 

597 

Reissued 1,057 restricted shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 14,940 restricted shares, net of forfeitures

 

 

 

 

(8)

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 3,205 shares under Dividend Reinvestment Plan

 

 

 

 

142 

 

 

 

 

 

 

 

 

 

 

 

144 

Issued 3,898 shares in Employee Stock Purchase Plan

 

 

 

 

151 

 

 

 

 

 

 

 

 

 

 

 

153 

Issued 22,096 shares in stock option exercises

 

 

11 

 

 

96 

 

 

 

 

 

 

 

 

 

 

 

107 

Balance, September 30, 2018

 

$

2,417 

 

$

60,422 

 

$

68,902 

 

$

(6,081)

 

$

-    

 

$

125,660 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















5

 


 

Table of Contents





 

 

 

 

 

 



 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017

(in thousands)



 

Nine Months Ended September 30,



 

 

2018

 

 

2017

OPERATING ACTIVITIES:

 

 

 

 

 

 

Interest received

 

$

42,157 

 

$

34,568 

Fees received

 

 

10,897 

 

 

10,095 

Interest paid

 

 

(6,221)

 

 

(4,062)

Cash paid to employees and vendors

 

 

(30,188)

 

 

(27,256)

Cash contributed to pension plan

 

 

-    

 

 

(1,000)

Income taxes refund (paid)

 

 

475 

 

 

(1,733)

Proceeds from sale of loans held for resale

 

 

409 

 

 

9,793 

Originations of loans held for resale

 

 

(1,686)

 

 

(9,483)



 

 

 

 

 

 

Net cash provided by operating activities

 

 

15,843 

 

 

10,922 



 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Available for sales securities:

 

 

 

 

 

 

Purchases

 

 

(47,863)

 

 

(65,889)

Proceeds from maturities, calls, and payments

 

 

54,476 

 

 

12,041 

Held to maturity securities:

 

 

 

 

 

 

Purchases

 

 

(156)

 

 

(3,355)

Proceeds from maturities, calls, and payments

 

 

4,120 

 

 

851 

Cash paid for bank-owned life insurance

 

 

-    

 

 

(1,300)

Proceeds from bank-owned life insurance claims

 

 

675 

 

 

-    

Additions to properties and equipment

 

 

(757)

 

 

(358)

Proceeds from equity securities sales

 

 

1,960 

 

 

-    

Purchase of tax credit investment

 

 

(3,877)

 

 

(2,380)

  Insurance agency acquisitions

 

 

(5,000)

 

 

(275)

Net increase in loans

 

 

(90,665)

 

 

(54,724)



 

 

 

 

 

 

Net cash used in investing activities

 

 

(87,087)

 

 

(115,389)



 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

(Repayments) proceeds of short-term borrowings, net

 

 

(84,560)

 

 

4,621 

Net increase in deposits

 

 

164,394 

 

 

92,345 

Dividends paid

 

 

(2,202)

 

 

(1,902)

Repurchase of treasury stock

 

 

-    

 

 

(342)

Issuance of common stock

 

 

404 

 

 

14,509 

Reissuance of treasury stock

 

 

-    

 

 

207 



 

 

 

 

 

 

Net cash provided by financing activities

 

 

78,036 

 

 

109,438 



 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

6,792