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Section 1: 10-Q (10-Q)

evbn 20190930 Q3

Table of Contents



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, 2019



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)



Securities registered pursuant to Section 12(b) of the Act:



 

 



 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.50 par value

EVBN

NYSE American



 

 



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, 4,923,879 shares as of October 30, 2019.



 


 

Table of Contents



INDEX





EVANS BANCORP, INC. AND SUBSIDIARIES







 

 



 

 

PART 1.  FINANCIAL INFORMATION

PAGE



 

 

Item 1.

Financial Statements

 



 

 



Unaudited Consolidated Balance Sheets – September 30, 2019 and December 31, 2018



 

 



Unaudited Consolidated Statements of Income – Three months ended September 30, 2019 and 2018



 

 



Unaudited Consolidated Statements of Income – Nine months ended September 30, 2019 and 2018



 

 



Unaudited Consolidated Statements of Comprehensive Income – Three months ended September 30, 2019 and 2018



 

 



Unaudited Consolidated Statements of Comprehensive Income – Nine months ended September 30, 2019 and 2018



 

Unaudited Consolidated Statements of Changes in Stockholders’ Equity – Three months ended September 30, 2019 and 2018

 



Unaudited Consolidated Statements of Changes in Stockholders’ Equity – Nine months ended September 30, 2019 and 2018



 

 



Unaudited Consolidated Statements of Cash Flows - Nine months ended September 30, 2019 and 2018



 

 



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 1A.

Risk Factors

49 



 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

49 



 

 

Item 3.

Defaults Upon Senior Securities

49 



 

 

Item 4.

Mine Safety Disclosure

49 



 

 

Item 5.

Other Information

49 



 

 

Item 6.

Exhibits

50 



 

 



Signatures

51 



 

 


 

Table of Contents











 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

ITEM 1 - FINANCIAL STATEMENTS

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 



 

September 30,

 

December 31,



 

2019

 

2018

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

19,587 

 

$

13,997 

Interest-bearing deposits at banks

 

 

14,757 

 

 

25,918 

Securities:

 

 

 

 

 

 

Available for sale, at fair value (amortized cost: $133,176 at September 30, 2019;

 

 

134,457 

 

 

132,104 

$135,274 at December 31, 2018)

 

 

 

 

 

 

Held to maturity, at amortized cost (fair value: $2,542 at September 30, 2019;

 

 

2,520 

 

 

1,685 

$1,674 at December 31, 2018)

 

 

 

 

 

 

Federal Home Loan Bank common stock, at cost

 

 

1,588 

 

 

1,474 

Federal Reserve Bank common stock, at cost

 

 

1,950 

 

 

1,929 

Loans, net of allowance for loan losses of $15,382 at September 30, 2019

 

 

 

 

 

 

and $14,784 at December 31, 2018

 

 

1,204,410 

 

 

1,141,146 

Properties and equipment, net of accumulated depreciation of $20,364 at September 30, 2019

 

 

 

 

 

 

and $19,416 at December 31, 2018

 

 

13,946 

 

 

10,485 

Goodwill and intangible assets

 

 

12,657 

 

 

12,992 

Bank-owned life insurance

 

 

29,254 

 

 

28,403 

Operating lease right-of-use asset (see Note 1)

 

 

3,862 

 

 

-    

Other assets

 

 

16,744 

 

 

18,074 



 

 

 

 

 

 

TOTAL ASSETS

 

$

1,455,732 

 

$

1,388,207 



 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Demand

 

$

271,633 

 

$

231,902 

NOW

 

 

141,384 

 

 

110,450 

Savings

 

 

568,156 

 

 

571,479 

Time

 

 

277,633 

 

 

301,227 

Total deposits

 

 

1,258,806 

 

 

1,215,058 



 

 

 

 

 

 

Securities sold under agreement to repurchase

 

 

7,418 

 

 

3,142 

Other borrowings

 

 

10,000 

 

 

10,000 

Operating lease liability (see Note 1)

 

 

4,302 

 

 

-    

Other liabilities

 

 

19,007 

 

 

17,031 

Junior subordinated debentures

 

 

11,330 

 

 

11,330 

Total liabilities

 

 

1,310,863 

 

 

1,256,561 



 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

Common stock, $.50 par value, 10,000,000 shares authorized; 4,920,381

 

 

 

 

 

 

and 4,852,868 shares issued at September 30, 2019 and December 31, 2018,

 

 

 

 

 

 

respectively, and 4,920,196 and 4,852,868 outstanding at September 30, 2019

 

 

 

 

 

 

and December 31, 2018, respectively

 

 

2,462 

 

 

2,429 

Capital surplus

 

 

62,736 

 

 

61,225 

Treasury stock, at cost, 185 and 0 shares at September 30, 2019 and

 

 

 

 

 

 

December 31, 2018, respectively

 

 

-    

 

 

-    

Retained earnings

 

 

81,525 

 

 

73,345 

Accumulated other comprehensive loss, net of tax

 

 

(1,854)

 

 

(5,353)

Total stockholders' equity

 

 

144,869 

 

 

131,646 



 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,455,732 

 

$

1,388,207 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 













1

 


 

Table of Contents









 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

THREE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2019

 

2018

INTEREST INCOME

 

 

 

 

 

 

Loans

 

$

15,645 

 

$

13,676 

Interest-bearing deposits at banks

 

 

159 

 

 

63 

Securities:

 

 

 

 

 

 

Taxable

 

 

993 

 

 

805 

Non-taxable

 

 

48 

 

 

146 

Total interest income

 

 

16,845 

 

 

14,690 

INTEREST EXPENSE

 

 

 

 

 

 

Deposits

 

 

3,038 

 

 

2,412 

Other borrowings

 

 

45 

 

 

51 

Junior subordinated debentures

 

 

141 

 

 

141 

Total interest expense

 

 

3,224 

 

 

2,604 

NET INTEREST INCOME  

 

 

13,621 

 

 

12,086 

PROVISION FOR LOAN LOSSES

 

 

(431)

 

 

252 

NET INTEREST INCOME AFTER

 

 

 

 

 

 

PROVISION FOR LOAN LOSSES

 

 

14,052 

 

 

11,834 

NON-INTEREST INCOME

 

 

 

 

 

 

Deposit service charges

 

 

687 

 

 

571 

Insurance service and fees

 

 

3,225 

 

 

3,215 

Loss on sale of securities

 

 

-    

 

 

(98)

Gain on loans sold

 

 

43 

 

 

Bank-owned life insurance

 

 

160 

 

 

165 

Loss on tax credit investment

 

 

-    

 

 

(165)

Refundable state historic tax credit

 

 

-    

 

 

150 

Interchange fee income

 

 

438 

 

 

413 

Other

 

 

611 

 

 

507 

Total non-interest income

 

 

5,164 

 

 

4,764 

NON-INTEREST EXPENSE

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,644 

 

 

7,090 

Occupancy

 

 

853 

 

 

795 

Advertising and public relations

 

 

231 

 

 

258 

Professional services

 

 

1,009 

 

 

588 

Technology and communications

 

 

1,057 

 

 

874 

Amortization of intangibles

 

 

112 

 

 

112 

FDIC insurance

 

 

-    

 

 

295 

Other

 

 

1,370 

 

 

1,445 

Total non-interest expense

 

 

12,276 

 

 

11,457 

INCOME BEFORE INCOME TAXES

 

 

6,940 

 

 

5,141 

INCOME TAX PROVISION

 

 

1,776 

 

 

346 

NET INCOME

 

$

5,164 

 

$

4,795 



 

 

 

 

 

 

Net income per common share-basic

 

$

1.05 

 

$

0.99 

Net income per common share-diluted

 

$

1.04 

 

$

0.97 

Weighted average number of common shares outstanding

 

 

4,918,740 

 

 

4,824,318 

Weighted average number of diluted shares outstanding

 

 

4,976,639 

 

 

4,940,822 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 



2

 


 

Table of Contents



















 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 



Nine Months Ended September 30,



2019

 

2018

INTEREST INCOME

 

 

 

 

 

Loans

$

45,149 

 

$

39,238 

Interest-bearing deposits at banks

 

564 

 

 

88 

Securities:

 

 

 

 

 

Taxable

 

2,736 

 

 

2,465 

Non-taxable

 

263 

 

 

512 

Total interest income

 

48,712 

 

 

42,303 

INTEREST EXPENSE

 

 

 

 

 

Deposits

 

8,883 

 

 

5,669 

Other borrowings

 

135 

 

 

509 

Junior subordinated debentures

 

431 

 

 

391 

Total interest expense

 

9,449 

 

 

6,569 

NET INTEREST INCOME  

 

39,263 

 

 

35,734 

PROVISION FOR LOAN LOSSES

 

197 

 

 

1,678 

NET INTEREST INCOME AFTER

 

 

 

 

 

PROVISION FOR LOAN LOSSES

 

39,066 

 

 

34,056 

NON-INTEREST INCOME

 

 

 

 

 

Deposit service charges

 

1,822 

 

 

1,605 

Insurance service and fees

 

8,568 

 

 

7,132 

Gain (loss) on sale of securities

 

42 

 

 

(98)

Gain on loans sold

 

105 

 

 

Bank-owned life insurance

 

492 

 

 

514 

Loss on tax credit investment

 

-    

 

 

(165)

Refundable state historic tax credit

 

-    

 

 

150 

Interchange fee income

 

1,299 

 

 

1,325 

Other

 

1,761 

 

 

1,720 

Total non-interest income

 

14,089 

 

 

12,189 

NON-INTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

 

22,273 

 

 

20,192 

Occupancy

 

2,561 

 

 

2,280 

Advertising and public relations

 

612 

 

 

708 

Professional services

 

2,683 

 

 

1,867 

Technology and communications

 

3,049 

 

 

2,485 

Amortization of intangibles

 

336 

 

 

168 

FDIC insurance

 

357 

 

 

773 

Other

 

3,778 

 

 

3,388 

Total non-interest expense

 

35,649 

 

 

31,861 

INCOME BEFORE INCOME TAXES

 

17,506 

 

 

14,384 

INCOME TAX PROVISION

 

4,240 

 

 

2,479 

NET INCOME

$

13,266 

 

$

11,905 



 

 

 

 

 

Net income per common share-basic

$

2.71 

 

$

2.48 

Net income per common share-diluted

$

2.68 

 

$

2.41 

Weighted average number of common shares outstanding

 

4,889,029 

 

 

4,807,684 

Weighted average number of diluted shares outstanding

 

4,957,689 

 

 

4,933,485 



 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 





3

 


 

Table of Contents











 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

THREE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

(in thousands)

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended September 30,



 

 

 

2019

 

 

 

 

2018



 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

 

$

5,164 

 

 

 

 

$

4,795 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

 

 

 

 

 

 

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

 

 

 

 

523 

 

 

 

 

 

(738)

Defined benefit pension plans:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

 

Amortization of actuarial loss

 

 

 

 

62 

 

 

 

 

 

33 

Total

 

 

 

 

68 

 

 

 

 

 

40 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

 

 

591 

 

 

 

 

 

(698)

COMPREHENSIVE INCOME

 

 

 

$

5,755 

 

 

 

 

$

4,097 



 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

(in thousands)

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Nine Month Ended September 30,



 

 

 

2019

 

 

 

 

2018



 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

 

$

13,266 

 

 

 

 

$

11,905 



 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

 

 

 

 

 

 

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

 

 

 

 

3,297 

 

 

 

 

 

(2,782)

Defined benefit pension plans:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

17 

 

 

 

 

 

18 

Amortization of actuarial loss

 

 

 

 

185 

 

 

 

 

 

100 

Total

 

 

 

 

202 

 

 

 

 

 

118 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

 

 

3,499 

 

 

 

 

 

(2,664)

COMPREHENSIVE INCOME

 

 

 

$

16,765 

 

 

 

 

$

9,241 



 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 













4

 


 

Table of Contents







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

 

 

 

 

THREE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

 

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 



 

Common

 

Capital

 

Retained

 

Comprehensive

 

 

 

 



 

Stock

 

Surplus

 

Earnings

 

Loss

 

Total

 

Balance, June 30, 2018

 

$

2,413 

 

$

60,220 

 

$

66,325 

 

$

(5,383)

 

$

123,575 

 

Net Income

 

 

 

 

 

 

 

 

4,795 

 

 

 

 

 

4,795 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(698)

 

 

(698)

 

Cash dividends ($0.46 per common share)

 

 

 

 

 

 

 

 

(2,218)

 

 

 

 

 

(2,218)

 

Stock compensation expense

 

 

 

 

 

198 

 

 

 

 

 

 

 

 

198 

 

Issued 8,196 shares in stock option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2018

 

$

2,417 

 

$

60,422 

 

$

68,902 

 

$

(6,081)

 

$

125,660 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2019

 

$

2,460 

 

$

62,353 

 

$

78,919 

 

$

(2,445)

 

$

141,287 

 

Net Income

 

 

 

 

 

 

 

 

5,164 

 

 

 

 

 

5,164 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

591 

 

 

591 

 

Cash dividends ($0.52 per common share)

 

 

 

 

 

 

 

 

(2,558)

 

 

 

 

 

(2,558)

 

Stock compensation expense

 

 

 

 

 

243 

 

 

 

 

 

 

 

 

243 

 

Issued 4,703 shares in stock option exercises

 

 

 

 

140 

 

 

 

 

 

 

 

 

142 

 

Reissued 2,261 shares in stock option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

 

Balance, September 30, 2019

 

$

2,462 

 

$

62,736 

 

$

81,525 

 

$

(1,854)

 

$

144,869 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 


 

Table of Contents





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

 

 

 

NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

 

 

 

 

 

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 



 

 

 

 

 

 

 

 

 

 

Other

 

 

 



 

Common

 

Capital

 

Retained

 

Comprehensive

 

 

 



 

Stock

 

Surplus

 

Earnings

 

Loss

 

Total

Balance, December 31, 2017

 

$

2,394 

 

$

59,444 

 

$

59,921 

 

$

(3,417)

 

$

118,342 

Cumulative-effect adjustment due to change in accounting principle

 

 

 

 

 

 

 

 

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 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

$

2,429 

 

$

61,225 

 

$

73,345 

 

$

(5,353)

 

$

131,646 

Net Income

 

 

 

 

 

 

 

 

13,266 

 

 

 

 

 

13,266 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

3,499 

 

 

3,499 

Cash dividends ($1.04 per common share)

 

 

 

 

 

 

 

 

(5,086)

 

 

 

 

 

(5,086)

Stock compensation expense

 

 

 

 

 

692 

 

 

 

 

 

 

 

 

692 

Reissued 500 restricted shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

Issued 20,757 restricted shares, net of forfeitures

 

 

12 

 

 

(12)

 

 

 

 

 

 

 

 

-    

Issued 3,866 shares under Dividend Reinvestment Plan

 

 

 

 

137 

 

 

 

 

 

 

 

 

139 

Issued 6,183 shares in Employee Stock Purchase Plan

 

 

 

 

195 

 

 

 

 

 

 

 

 

198 

Issued 32,516 shares in stock option exercises

 

 

16 

 

 

499 

 

 

 

 

 

 

 

 

515 

Reissued 3,506 shares in stock option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-    

Balance, September 30, 2019

 

$

2,462 

 

$

62,736 

 

$

81,525 

 

$

(1,854)

 

$

144,869 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















6

 


 

Table of Contents





 

 

 

 

 

 



 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

(in thousands)



 

Nine Months Ended September 30,



 

 

2019

 

 

2018

OPERATING ACTIVITIES:

 

 

 

 

 

 

Interest received

 

$

48,957 

 

$

42,157 

Fees received

 

 

13,404 

 

 

10,897 

Interest paid

 

 

(9,226)

 

 

(6,221)

Cash paid to employees and vendors

 

 

(36,888)

 

 

(30,188)

Income taxes (paid) refund

 

 

(1,586)

 

 

475 

Proceeds from sale of loans held for resale

 

 

7,698 

 

 

409 

Originations of loans held for resale

 

 

(7,733)

 

 

(1,686)



 

 

 

 

 

 

Net cash provided by operating activities

 

 

14,626 

 

 

15,843 



 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Available for sales securities:

 

 

 

 

 

 

Purchases

 

 

(46,893)

 

 

(47,863)

Proceeds from sales, maturities, calls, and payments

 

 

48,694 

 

 

54,476 

Held to maturity securities:

 

 

 

 

 

 

Purchases

 

 

(1,141)

 

 

(156)

Proceeds from maturities, calls, and payments

 

 

307 

 

 

4,120 

Cash paid for bank-owned life insurance

 

 

(360)

 

 

-    

Proceeds from bank-owned life insurance claims

 

 

-    

 

 

675 

Additions to properties and equipment

 

 

(4,513)

 

 

(757)

Proceeds from sales of assets

 

 

185 

 

 

 

Proceeds from equity securities sales

 

 

-    

 

 

1,960 

Purchase of tax credit investment

 

 

-    

 

 

(3,877)

  Insurance agency acquisitions

 

 

-    

 

 

(5,000)

Net increase in loans

 

 

(62,823)

 

 

(90,665)



 

 

 

 

 

 

Net cash used in investing activities

 

 

(66,544)

 

 

(87,087)



 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds (repayments) from short-term borrowings, net

 

 

4,275 

 

 

(84,560)

Net increase in deposits

 

 

43,748 

 

 

164,394 

Dividends paid

 

 

(2,528)

 

 

(2,202)

Issuance of common stock

 

 

852 

 

 

404 



 

 

 

 

 

 

Net cash provided by financing activities

 

 

46,347 

 

 

78,036 



 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

(5,571)

 

 

6,792 



 

 

 

 

 

 

CASH AND CASH EQUIVALENTS:

 

 

 

 

 

 

Beginning of period

 

 

39,915 

 

 

21,330 

End of period

 

$

34,344 

 

$

28,122 



 

 

 

 

 

 

See Notes to Unaudited Consolidated Financial Statements

 

 

 

 

 

 



7

 


 

Table of Contents













 

 

 

 

 

 



 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

 

2019

 

 

2018



 

 

 

 

 

 

RECONCILIATION OF NET INCOME TO NET CASH

 

 

 

 

 

 

PROVIDED BY OPERATING ACTIVITIES:

 

 

 

 

 

 



 

 

 

 

 

 

Net income

 

$

13,266 

 

$

11,905