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Section 1: 8-K (8-K)

Q1 2020evbn 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):

 

                     April 29, 2020

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



 

 



 

 

New York

001-35021

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))

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, par value $0.50 per share

 

EVBN

 

NYSE American



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 April 29, 2020, Evans Bancorp, Inc. (“the Company”) issued a press release setting forth its results of operations and financial condition for the first quarter of 2020.  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 April 29, 2020

























































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.



 

 

   

 

April 29, 2020

 

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)

Q1 2020 PR evbn - FINAL

EVANS_BANCORP_COLOR_HORIZ_GRAD.JPGNews

Release


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

 

FOR IMMEDIATE RELEASE

Evans Bancorp Reports First Quarter 2020 Results

HAMBURG, NY, April 29, 2020 – 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 first quarter ended March 31, 2020.

FIRST QUARTER 2020 HIGHLIGHTS (compared with prior-year period unless otherwise noted)

·

Solid asset growth with loans increasing $20 million in the quarter, or 6%, on an
annualized basis

·

Net interest income increased 2% to $12.8 million

·

Regulatory and FSB shareholder approval received for Fairport Savings Bank acquisition

·

An elevated provision for loan loss of $3.0 million reflects the impacts of the
COVID-19 pandemic

·

The Bank’s capital and liquidity remain strong as total deposits grew $60 million, or 5%,
in the quarter

Net income was $0.2 million, or $0.04 per diluted share, in the first quarter of 2020, compared with $3.7 million, or $0.75 per diluted share, in both the fourth and first quarters of 2019.  The Company’s first quarter 2020 results included a $3.0 million provision for loan loss compared with a release of $0.1 million from the allowance for loan losses in the fourth quarter of 2019 and a provision of $0.5 million in the first quarter of 2019.  Economic trends and conditions reflecting the impact of the Coronavirus disease (COVID-19) at the end of the first quarter resulted in higher estimates of incurred credit losses in the Company’s loan portfolio compared with prior quarter estimates.  While the full impact of COVID-19 on future financial results is uncertain and not currently predictable, the Company believes that the effects could have a material impact on the ability of our clients to meet their borrowing obligations.  Also impacting the current quarter was lower non-interest income due to a historic rehabilitation tax credit transaction and higher non-interest expense due to salaries and benefit expenses and merger costs related to the planned Fairport Savings Bank (FSB) acquisition.  Return on average equity was 0.55% for the first quarter of 2020 compared with 10.16% in the fourth quarter of 2019 and 11.19% in the first quarter of 2019.

“We believe the Company is in a good position to weather this unprecedented environment while supporting our clients and the community.  Our prime focus is on maintaining the safety of our associates and clients, and doing our utmost to assist our communities in responding to the hurdles presented by this pandemic,” said
David J. Nasca, President and CEO of Evans Bancorp, Inc.  “We have proactively worked with clients and non-clients trying to support their needs through a well-trained and committed team along with investments in technology and infrastructure, while working remotely to control the spread of the virus.  I truly appreciate the remarkable and outstanding efforts of all of our associates during these trying times and I am grateful to our clients for their ongoing trust and confidence.

“While the timing for returning to normal operations is not defined, we believe our operations are resilient and can sustainably perform in this environment.”  

Mr. Nasca commented on the FSB acquisition, “While dealing with the many challenges created as a result of


 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 2 of 8

COVID-19, we continued to successfully move forward with the work required to consummate our acquisition of Fairport Savings Bank.  We recently received regulatory and FSB shareholder approval and expect to close on May 1st.  We are looking forward to welcoming their customers and associates to Evans, and leveraging our combined strengths for the benefit of all stakeholders.”  

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

($ in thousands)



 

 

 

 

 

 

 

 

 

 

 



 

1Q 2020

 

 

4Q 2019

 

 

1Q 2019



 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

15,823 

 

 

$

16,028 

 

 

$

15,542 

Interest expense

 

 

3,047 

 

 

 

3,236 

 

 

 

3,034 

Net interest income

 

 

12,776 

 

 

 

12,792 

 

 

 

12,508 

Provision (credit) for loan losses

 

 

2,999 

 

 

 

(122)

 

 

 

538 

Net interest income after provision

 

$

9,777 

 

 

$

12,914 

 

 

$

11,970 



 

 

 

 

 

 

 

 

 

 

 

Net interest income remained relatively flat from the fourth quarter of 2019, but increased $0.3 million, or 2%, from the prior-year first quarter.  The year-over-year increase was driven by average interest-earning asset growth, particularly in the commercial loan portfolio.  Average commercial loans, including commercial real estate and commercial and industrial loans, were $1.0 billion, up $72 million from the 2019 first quarter. 

First quarter net interest margin of 3.64% declined 3 basis points from the 2019 fourth quarter and 15 basis points from the first quarter of 2019 largely due to the Federal Reserve’s decrease of the fed funds rate by
150 basis points during the first quarter of 2020 to near 0%.  The lower yield on loans when compared with the fourth quarter and first quarter of 2019 reflects a decrease of 12 and 25 basis points, respectively.  The cost of interest-bearing liabilities decreased to 1.17% compared with 1.24% in the fourth quarter of 2019 and 1.20% in the first quarter of 2019. 

The $3.0 million provision for loan losses for the first quarter of 2020 includes a $2.2 million reserve build in response to economic trends and conditions which have been significantly impacted by the economic shutdown precipitated by the COVID-19 pandemic.  The remaining provision was due to an increase in specific reserve levels on impaired loans and strong loan growth.  The $0.1 million release of allowance for loan losses for the fourth quarter of 2019 was due to improved asset quality on impaired loans and marginal loan growth in that quarter.  The Company has deferred the adoption of the Current Expected Credit Loss Impairment Model (CECL), as permitted by its classification as a Smaller Reporting Company by the Securities and Exchange Commission. 



 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

($ in thousands)

 



 

 

 

 

 

 

 

 

 

 

 

 



 

1Q 2020

 

 

4Q 2019

 

 

1Q 2019

 



 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

16,717 

 

 

$

14,396 

 

 

$

19,987 

 

Total net loan charge-offs (recoveries)

 

 

17 

 

 

 

85 

 

 

 

115 

 

Non-performing loans/ Total loans

 

 

1.34 

%

 

 

1.17 

%

 

 

1.69 

%

Net loan charge-offs (recoveries)/ Average loans

 

 

0.01 

%

 

 

0.03 

%

 

 

0.04 

%

Allowance for loan losses/ Total loans

 

 

1.46 

%

 

 

1.24 

%

 

 

1.28 

%

“Evans is financially strong with significant liquidity.  We will continue to do our part to serve our clients and communities,” stated John Connerton, Chief Financial Officer of Evans Bank.  “We believe our solid balance sheet puts us in good position to weather what will be challenging conditions for our clients.  The increase in allowance reflects the estimated losses incurred due to COVID-19 and the potentially offsetting impact from


 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 3 of 8

various stimulus programs currently enacted.  We are proactively working with borrowers seeking flexibility on loan terms and conditions, and have been active in securing financing through the U.S. Small Business Administration Paycheck Protection Program (PPP).  To date, we have secured approximately $140 million through the first phase of PPP for small business customers, including those new to the bank.”

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income

($ in thousands)



 

1Q 2020

 

 

4Q 2019

 

 

1Q 2019



 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

$

628 

 

 

$

747 

 

 

$

533 

Insurance service and fee revenue

 

 

2,425 

 

 

 

2,120 

 

 

 

2,442 

Bank-owned life insurance

 

 

160 

 

 

 

164 

 

 

 

159 

Loss on tax credit investment

 

 

(2,475)

 

 

 

(158)

 

 

 

-    

Refundable NY state historic tax credit

 

 

1,857 

 

 

 

115 

 

 

 

-    

Other income

 

 

743 

 

 

 

1,005 

 

 

 

1,061 

Total non-interest income

 

$

3,338 

 

 

$

3,993 

 

 

$

4,195 



 

 

 

 

 

 

 

 

 

 

 

The first quarter of 2020 included a $0.6 million net reduction of non-interest income related to an investment in an historic rehabilitation tax credit. There were no significant historic tax credit transactions in the fourth and first quarters of 2019. 

The decrease in other income from prior periods was primarily due to a reduction in the fair value of mortgage servicing rights due to lower rates and reduced transaction-based interchange fee income. 

The increase in insurance service and fee revenue from the fourth quarter of 2019 reflects seasonally higher policy renewals for institutional clients, including businesses and municipalities. 



 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense

($ in thousands)



 

1Q 2020

 

 

4Q 2019

 

 

1Q 2019



 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

7,797 

 

 

$

7,355 

 

 

$

7,160 

Occupancy

 

 

861 

 

 

 

868 

 

 

 

836 

Advertising and public relations

 

 

269 

 

 

 

421 

 

 

 

167 

Professional services

 

 

1,374 

 

 

 

1,059 

 

 

 

745 

Technology and communications

 

 

1,096 

 

 

 

1,075 

 

 

 

893 

Amortization of intangibles

 

 

130 

 

 

 

112 

 

 

 

112 

FDIC insurance

 

 

179 

 

 

 

74 

 

 

 

207 

Other expenses

 

 

1,164 

 

 

 

1,207 

 

 

 

1,104 

Total non-interest expenses

 

$

12,870 

 

 

$

12,171 

 

 

$

11,224 



 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits costs increased 6% from the fourth quarter of 2019 and 9% from the prior-year period, reflecting the addition of strategic personnel hires to support the Company’s continued expansion.  The increase from the fourth quarter of 2019 also includes seasonally higher employee benefits expenses. 

Advertising expenses decreased from the prior quarter as a result of the seasonal timing of the Company’s promotional campaigns. 

In the first quarter of 2020 professional service fees included $0.5 million in merger-related costs associated with the previously announced agreement to acquire Fairport Savings Bank.  The remaining variance to the prior-year period was related to consulting services associated with business intelligence data systems and their strategic importance to future growth.


 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 4 of 8

The increase in technology and communications from the prior-year period was due to higher online banking activity and software costs.

The Company’s GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 79.9% in the first quarter of 2020, 72.5% in the fourth quarter of 2019, and 67.2% in the first quarter of 2019.  The Company’s non-GAAP efficiency ratio, excluding amortization expense, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions, was 73.4% compared with 70.3% in the fourth quarter of 2019 and 66.5% in last year’s first quarter. 

Income tax expense was less than $0.1 million, or an effective tax rate of 16.7%, for the first quarter of 2020 compared with $1.0 million, or an effective tax rate of 20.9%, in the fourth quarter of 2019 and $1.2 million, or an effective tax rate of 24.7%, in last year’s first quarter.  Excluding the impact of the historic tax credit transaction, the first quarter 2020 effective tax rate was 25.4%. 

Balance Sheet Highlights 

Total assets were $1.52 billion as of March 31, 2020, an increase of 4% from $1.46 billion on
December 31, 2019 and 5% from $1.46 billion at March 31, 2019, reflecting the Company’s strong loan growth.  Since the end of last year’s first quarter loans were up $61 million, or 5%, to $1.25 billion largely due to growth in the commercial loan portfolio.    

Investment securities were $162 million at March 31, 2020, $32 million higher than the end of 2019 and
$21 million higher than at the end of last year’s first quarter.  The primary objectives of the Company’s investment portfolio are to provide liquidity, secure municipal deposits, and maximize income while preserving the safety of principal.     

Total deposits grew $60 million, or 5%, to $1.33 billion since December 31, 2019, and were $52 million, or 4%, higher than the balance at the end of last year’s first quarter.  The year-over-year increase was primarily due to NOW deposit growth of $37 million, or 30%, and demand deposit growth of $31 million or 13%. Savings deposits increased $7 million, which reflected $15 million in additional consumer deposits, partially offset by a decrease of $8 million in municipal balances.  Time deposits decreased $24 million, or 8%, of which $15 million were brokered.

Capital Management

The Company has consistently maintained regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 9.92% at March 31, 2020 compared with 10.33% at
December 31, 2019 and 9.74% at March 31, 2019.  Book value per share was $29.96 at March 31, 2020 compared with $30.11 at December 31, 2019 and $27.66 at March 31, 2019. 

On February 18, 2020, the Company declared a cash dividend of $0.58 per common share, which was paid on April 2, 2020.  The semi-annual dividend represented a $0.06, or 12%, increase from the previous semi-annual dividend paid in October 2019. 

Webcast and Conference Call

The Company will host a conference call and webcast on Wednesday, April 29, 2020 at 4:45 p.m. ET. Management will review the financial and operating results for the first quarter of 2020, 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 Wednesday,
May 6, 2020.  To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13700721, or access the webcast replay at www.evansbancorp.com, where a transcript will be posted once available.


 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 5 of 8

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 $1.5 billion in assets and $1.3 billion in deposits at March 31, 2020.  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 Insurance Agency, a wholly owned subsidiary, provides life insurance, employee benefits, and property and casualty insurance through ten 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 the impacts from COVID-19, 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: jconnerton@evansbank.com 

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




 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 6 of 8





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(in thousands, except shares and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

 

3/31/2019

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

$

162,038 

 

 

$

130,308 

 

 

$

136,977 

 

 

$

137,438 

 

 

$

140,731 

 

Loans

 

 

1,246,206 

 

 

 

1,226,531 

 

 

 

1,219,792 

 

 

 

1,212,699 

 

 

 

1,185,429 

 

Allowance for loan losses

 

 

(18,157)

 

 

 

(15,175)

 

 

 

(15,382)

 

 

 

(15,248)

 

 

 

(15,207)

 

Goodwill and intangible assets

 

 

13,421 

 

 

 

12,545 

 

 

 

12,657 

 

 

 

12,768 

 

 

 

12,880 

 

Operating lease right-of-use asset

 

 

3,577 

 

 

 

3,720 

 

 

 

3,862 

 

 

 

4,003 

 

 

 

4,142 

 

All other assets

 

 

117,726 

 

 

 

102,301 

 

 

 

97,826 

 

 

 

119,460 

 

 

 

128,206 

 

Total assets

 

$

1,524,811 

 

 

$

1,460,230 

 

 

$

1,455,732 

 

 

$

1,471,120 

 

 

$

1,456,181 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

273,623 

 

 

 

263,717 

 

 

 

271,633 

 

 

 

243,860 

 

 

 

242,156 

 

NOW deposits

 

 

159,223 

 

 

 

140,654 

 

 

 

141,384 

 

 

 

145,620 

 

 

 

122,204 

 

Savings deposits

 

 

625,773 

 

 

 

587,142 

 

 

 

568,156 

 

 

 

603,180 

 

 

 

618,471 

 

Time deposits

 

 

268,978 

 

 

 

275,927 

 

 

 

277,633 

 

 

 

290,251 

 

 

 

292,892 

 

Total deposits

 

 

1,327,597 

 

 

 

1,267,440 

 

 

 

1,258,806 

 

 

 

1,282,911 

 

 

 

1,275,723 

 

Borrowings

 

 

23,902 

 

 

 

23,755 

 

 

 

28,748 

 

 

 

25,298 

 

 

 

23,812 

 

Operating lease liability

 

 

4,002 

 

 

 

4,154 

 

 

 

4,302 

 

 

 

4,449 

 

 

 

4,594 

 

Other liabilities

 

 

21,214 

 

 

 

16,428 

 

 

 

19,007 

 

 

 

17,175 

 

 

 

17,617 

 

Total stockholders' equity

 

 

148,096 

 

 

 

148,453 

 

 

 

144,869 

 

 

 

141,287 

 

 

 

134,435 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

4,942,802 

 

 

 

4,929,593 

 

 

 

4,920,381 

 

 

 

4,915,678 

 

 

 

4,860,316 

 

Book value per share

 

$

29.96 

 

 

$

30.11 

 

 

$

29.44 

 

 

$

28.74 

 

 

$

27.66 

 

Tier 1 leverage ratio

 

 

9.92 

%

 

 

10.33 

%

 

 

10.11 

%

 

 

9.99 

%

 

 

9.74 

%

Tier 1 risk-based capital ratio

 

 

11.84 

%

 

 

12.32 

%

 

 

11.87 

%

 

 

11.86 

%

 

 

11.68 

%

Total risk-based capital ratio

 

 

13.09 

%

 

 

13.56 

%

 

 

13.11 

%

 

 

13.11 

%

 

 

12.93 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

16,717 

 

 

$

14,396 

 

 

$

13,839 

 

 

$

11,020 

 

 

$

19,987 

 

Total net loan charge-offs (recoveries)

 

 

17 

 

 

 

85 

 

 

 

(565)

 

 

 

49 

 

 

 

115 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

 

1.34 

%

 

 

1.17 

%

 

 

1.13 

%

 

 

0.91 

%

 

 

1.69 

%

Net loan charge-offs (recoveries)/Average loans

 

 

0.01 

%

 

 

0.03 

%

 

 

(0.19)

%

 

 

0.02 

%

 

 

0.04 

%

Allowance for loans losses/Total loans

 

 

1.46 

%

 

 

1.24 

%

 

 

1.26 

%

 

 

1.26 

%

 

 

1.28 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 7 of 8



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA  (UNAUDITED)

(in thousands, except share and per share data)



 

2020

 

2019

 

2019

 

2019

 

2019



 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Interest income

 

$

15,823 

 

 

$

16,028 

 

 

$

16,845 

 

 

$

16,325 

 

 

$

15,542 

 

Interest expense

 

 

3,047 

 

 

 

3,236 

 

 

 

3,224 

 

 

 

3,191 

 

 

 

3,034 

 

Net interest income

 

 

12,776 

 

 

 

12,792 

 

 

 

13,621 

 

 

 

13,134 

 

 

 

12,508 

 

Provision (credit) for loan losses

 

 

2,999 

 

 

 

(122)

 

 

 

(431)

 

 

 

90 

 

 

 

538 

 

Net interest income after provision

 

 

9,777 

 

 

 

12,914 

 

 

 

14,052 

 

 

 

13,044 

 

 

 

11,970 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

628 

 

 

 

747 

 

 

 

687 

 

 

 

602 

 

 

 

533 

 

Insurance service and fee revenue

 

 

2,425 

 

 

 

2,120 

 

 

 

3,225 

 

 

 

2,901 

 

 

 

2,442 

 

Bank-owned life insurance

 

 

160 

 

 

 

164 

 

 

 

160 

 

 

 

173 

 

 

 

159 

 

Loss on tax credit investment

 

 

(2,475)

 

 

 

(158)

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

Refundable NY state historic tax credit

 

 

1,857 

 

 

 

115 

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

Other income

 

 

743 

 

 

 

1,005 

 

 

 

1,092 

 

 

 

1,054 

 

 

 

1,061 

 

Total non-interest income

 

 

3,338 

 

 

 

3,993 

 

 

 

5,164 

 

 

 

4,730 

 

 

 

4,195 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,797 

 

 

 

7,355 

 

 

 

7,644 

 

 

 

7,469 

 

 

 

7,160 

 

Occupancy

 

 

861 

 

 

 

868 

 

 

 

853 

 

 

 

872 

 

 

 

836 

 

Advertising and public relations

 

 

269 

 

 

 

421 

 

 

 

231 

 

 

 

214 

 

 

 

167 

 

Professional services

 

 

1,374 

 

 

 

1,059 

 

 

 

1,009 

 

 

 

929 

 

 

 

745 

 

Technology and communications

 

 

1,096 

 

 

 

1,075 

 

 

 

1,057 

 

 

 

1,099 

 

 

 

893 

 

Amortization of intangibles

 

 

130 

 

 

 

112 

 

 

 

112 

 

 

 

112 

 

 

 

112 

 

FDIC insurance

 

 

179 

 

 

 

74 

 

 

 

-    

 

 

 

150 

 

 

 

207 

 

Other expenses

 

 

1,164 

 

 

 

1,207 

 

 

 

1,370 

 

 

 

1,304 

 

 

 

1,104 

 

Total non-interest expenses

 

 

12,870 

 

 

 

12,171 

 

 

 

12,276 

 

 

 

12,149 

 

 

 

11,224 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

245 

 

 

 

4,736 

 

 

 

6,940 

 

 

 

5,625 

 

 

 

4,941 

 

Income tax provision (benefit)

 

 

41 

 

 

 

988 

 

 

 

1,776 

 

 

 

1,243 

 

 

 

1,221 

 

Net income

 

 

204 

 

 

 

3,748 

 

 

 

5,164 

 

 

 

4,382 

 

 

 

3,720 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

0.04 

 

 

$

0.75 

 

 

$

1.04 

 

 

$

0.88 

 

 

$

0.75 

 

Cash dividends per common share

 

$

0.58 

 

 

$

-    

 

 

$

0.52 

 

 

$

-    

 

 

$

0.52 

 

Weighted average number of diluted shares

 

 

4,992,214 

 

 

 

4,990,863 

 

 

 

4,976,639 

 

 

 

4,953,072 

 

 

 

4,932,451 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

0.05 

%

 

 

1.02 

%

 

 

1.41 

%

 

 

1.21 

%

 

 

1.04 

%

Return on average stockholders' equity

 

 

0.55 

%

 

 

10.16 

%

 

 

14.29 

%

 

 

12.71 

%

 

 

11.19 

%

Efficiency ratio

 

 

79.87 

%

 

 

72.51 

%

 

 

65.35 

%

 

 

68.01 

%

 

 

67.20 

%

Efficiency ratio (Non-GAAP)*

 

 

73.39 

%

 

 

70.28 

%

 

 

64.75 

%

 

 

67.54 

%

 

 

66.53 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*  The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Evans Bancorp Reports First Quarter 2020 Results

April 29, 2020

Page 8 of 8

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES  (UNAUDITED)

(in thousands)



 

2020

 

2019

 

2019

 

2019

 

2019



 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

1,219,230 

 

 

$

1,213,837 

 

 

$

1,202,634 

 

 

$

1,183,379 

 

 

$

1,153,067 

 

Investment securities

 

 

136,029 

 

 

 

137,354 

 

 

 

143,731 

 

 

 

148,465 

 

 

 

141,249 

 

Interest-bearing deposits at banks

 

 

57,319 

 

 

 

32,061 

 

 

 

24,661 

 

 

 

28,132 

 

 

 

44,024 

 

Total interest-earning assets

 

 

1,412,578 

 

 

 

1,383,252 

 

 

 

1,371,026 

 

 

 

1,359,976 

 

 

 

1,338,340 

 

Non interest-earning assets

 

 

89,804 

 

 

 

89,415 

 

 

 

89,513 

 

 

 

85,720 

 

 

 

86,386 

 

Total Assets

 

$

1,502,382 

 

 

$

1,472,667 

 

 

$

1,460,539 

 

 

$

1,445,696 

 

 

$

1,424,726 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

144,564 

 

 

 

136,077 

 

 

 

134,008 

 

 

 

123,515 

 

 

 

112,571 

 

Savings

 

 

605,103 

 

 

 

593,694 

 

 

 

591,585 

 

 

 

605,524 

 

 

 

591,641 

 

Time deposits

 

 

274,576 

 

 

 

274,856 

 

 

 

281,798 

 

 

 

289,794 

 

 

 

298,586 

 

Total interest-bearing deposits

 

 

1,024,243 

 

 

 

1,004,627 

 

 

 

1,007,391 

 

 

 

1,018,833 

 

 

 

1,002,798 

 

Borrowings

 

 

24,708 

 

 

 

27,241 

 

 

 

25,234 

 

 

 

24,231 

 

 

 

25,746 

 

Total interest-bearing liabilities

 

 

1,048,951 

 

 

 

1,031,868 

 

 

 

1,032,625 

 

 

 

1,043,064 

 

 

 

1,028,544 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

281,624 

 

 

 

272,834 

 

 

 

261,089 

 

 

 

244,142 

 

 

 

242,030 

 

Other non-interest bearing liabilities

 

 

22,127 

 

 

 

20,375 

 

 

 

22,231 

 

 

 

20,609