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Section 1: 8-K (8-K)

Q2 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):

 

July 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, $0.50 par value

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



 

 

   

 

July 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)

Q2 2020 06 PR EVBN 8-K Exhibit 991 - FINAL

EVANS_BANCORP_COLOR_HORIZ_GRAD.JPGNews

Release


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

 

FOR IMMEDIATE RELEASE

Evans Bancorp Reports Second Quarter 2020 Results

HAMBURG, NY, July 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 second quarter ended June 30, 2020.    Results include the results of Fairport Savings Bank, which was acquired on May 1, 2020.

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

Successful acquisition of Fairport Savings Bank (FSB): added five branches, $271 million of loans and $245 million of deposits

Originated $195 million of Small Business Administration’s Paycheck Protection Program (PPP) loans

Net interest income increased 14% to $14.9 million reflecting FSB acquisition and PPP lending

Results include $5.0 million of one-time merger costs and $0.6 million loan loss provision

Significant deposit growth of $482 million, or 36%, in the quarter 

Subsequent to quarter-end, Evans completed a private placement of $20 million of subordinated notes

Net income was $0.5 million, or $0.09 per diluted share, in the second quarter of 2020, compared with
$0.2 million, or $0.04 per diluted share in the first quarter of 2020 and $4.4 million, or $0.88 per diluted share in last year’s second quarter.  The Company’s second quarter 2020 results included $5.0 million in one-time merger costs related to the acquisition of Fairport Savings Bank (“FSB”) and a $0.6 million provision for loan loss reflecting the continued significant estimated economic impact of the coronavirus pandemic (“COVID-19”).  Net interest income of $14.9 million increased over the prior-year and trailing periods as the Company recognized the benefit of the acquired loan portfolio and fees earned in connection with the Small Business Administration’s Paycheck Protection Program loans (“PPP”) under the CARES Act.  Return on average equity was 1.19% for the second quarter of 2020, compared with 0.55% in the first quarter of 2020 and 12.71% in the second quarter of 2019.

“We are extremely proud of the ongoing commitment shown by our associates as they have continued to work tirelessly to support and meet the needs of our clients and communities during these challenging times.  Despite our bottom-line being impacted by elevated credit reserves and merger-related expenses, our second quarter performance was relatively solid and demonstrated ongoing operating strength,” said David J. Nasca, President and CEO of Evans Bancorp, Inc.  “During the quarter we were also pleased to be able to successfully close on our acquisition of FSB and have been diligently moving our combined strategy forward to leverage our commercial business model with FSB’s solid retail and consumer lending presence.”   

Mr. Nasca added, “While the duration of this pandemic and resulting impact continues to be unknown, we are confident in the entire Evans’ team and our operating strategy.  We fortified an already strong balance sheet increasing our capital with the private placement of $20 million of subordinated notes in July, and measurably grew our deposit base, both organically and through the acquisition.  We believe we are in a position of strength to navigate this volatile environment and well positioned for the long-term.”    





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 


 

Evans Bancorp Reports Second Quarter 2020 Results

July 29, 2020

Page 2 of 8

Net Interest Income

($ in thousands)



 

 

 

 

 

 

 

 

 

 

 



 

2Q 2020

 

 

1Q 2020

 

 

2Q 2019



 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

17,069 

 

 

$

15,823 

 

 

$

16,325 

Interest expense

 

 

2,136 

 

 

 

3,047 

 

 

 

3,191 

Net interest income

 

 

14,933 

 

 

 

12,776 

 

 

 

13,134 

Provision for loan losses

 

 

597 

 

 

 

2,999 

 

 

 

90 

Net interest income after provision

 

$

14,336 

 

 

$

9,777 

 

 

$

13,044 



 

 

 

 

 

 

 

 

 

 

 

Net interest income increased $2.2 million, or 17%, sequentially, and $1.8 million, or 14% from the prior-year second quarter.  The increase from both periods was primarily driven by higher average interest-earning assets as a result of the FSB acquisition and PPP lending.  The Company acquired  $271 million of FSB loans, largely consisting of residential real estate.  PPP lending added $195 million in loan growth during the quarter.  Included in interest income during the current quarter was approximately $0.6 million of amortized PPP loan fees.    

Second quarter net interest margin of 3.36% declined 28 basis points from the first quarter of 2020 and 51 basis points from the second quarter of 2019.  The decrease was largely due to the Federal Reserve’s decrease of the fed funds rate by 150 basis points during the first quarter of 2020, and changes in the mix of interest earning assets including higher interest earning cash balances and a higher percentage of residential mortgages in the loan portfolio.  The lower yield on loans when compared with the first quarter of 2020 and second quarter of 2019 reflects a decrease of 58 and 91 basis points, respectively.  The cost of interest-bearing liabilities decreased to 0.65% compared with 1.17% in the first quarter of 2020 and 1.23% in the second quarter of 2020. 

The $0.6 million provision for loan losses reflects changes in credit quality indicators as the economy continues to be impacted by the COVID-19 pandemic. While the full impact of COVID-19 on future financial results is uncertain, the Company believes that the effects could have a material impact on the ability of some clients to meet their borrowing obligations.  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)

 



 

 

 

 

 

 

 

 

 

 

 

 



 

2Q 2020

 

 

1Q 2020

 

 

2Q 2019

 



 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

19,718 

 

 

$

16,717 

 

 

$

11,020 

 

Total net loan charge-offs

 

 

-    

 

 

 

17 

 

 

 

49 

 

Non-performing loans / Total loans

 

 

1.17 

%

 

 

1.34 

%

 

 

0.91 

%

Net loan charge-offs / Average loans

 

 

-    

%

 

 

0.01 

%

 

 

0.02 

%

Allowance for loan losses / Total loans

 

 

1.11 

%

 

 

1.46 

%

 

 

1.26 

%

During the quarter, the Company implemented a customer payment deferral program, which allows the deferral of principal and interest payments for 90 days, to assist both consumer and business borrowers who indicated they may be experiencing financial hardship due to COVID-19 related challenges. During the quarter, the Company gave deferrals of $372.1 million to commercial customers.  The Company has communicated with these commercial customers and expect that of those first deferral requests $120.0 million will need a second
90 day deferral assistance and the remaining customers will go back to paying status.




 

Evans Bancorp Reports Second Quarter 2020 Results

July 29, 2020

Page 3 of 8

“While there are pockets of continued weakness, our overall portfolio is solid, which reflects our prudent underwriting and in-market relationship focus.  Over the coming months, we expect a significant amount of deferrals to end, and the majority of second deferral requests to be largely centered on hotels, which makes up approximately seven percent of our total commercial portfolio,” stated John Connerton, Chief Financial Officer of Evans Bank. 



 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income

($ in thousands)



 

2Q 2020

 

 

1Q 2020

 

 

2Q 2019



 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

$

397 

 

 

$

628 

 

 

$

602 

Insurance service and fee revenue

 

 

2,667 

 

 

 

2,425 

 

 

 

2,901 

Bank-owned life insurance

 

 

178 

 

 

 

160 

 

 

 

173 

Loss on tax credit investment

 

 

-    

 

 

 

(2,475)

 

 

 

-    

Refundable NY state historic tax credit

 

 

-    

 

 

 

1,857 

 

 

 

-    

Other income

 

 

997 

 

 

 

743 

 

 

 

1,054 

Total non-interest income

 

$

4,239 

 

 

$

3,338 

 

 

$

4,730 



 

 

 

 

 

 

 

 

 

 

 

The decrease in deposit service charges reflects lower consumer spending and the temporary suspension of certain fees to assist customers affected by COVID-19.

The increase in insurance service and fee revenue from the first quarter of 2020 reflects seasonally higher policy renewals for institutional clients.  The change from last year’s second quarter was primarily the result of lower contingent profit sharing and claims service revenue.

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 second quarter of 2020 and 2019.

The sequential increase in other income was largely due to a gain on sale of loans and increased loan servicing fees as a result of the FSB acquisition, partially offset by a reduction in the fair value of mortgage servicing rights due to lower rates. 



 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense

($ in thousands)



 

2Q 2020

 

 

1Q 2020

 

 

2Q 2019



 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

8,005 

 

 

$

7,797 

 

 

$

7,469 

Occupancy

 

 

1,062 

 

 

 

861 

 

 

 

872 

Advertising and public relations

 

 

123 

 

 

 

269 

 

 

 

214 

Professional services

 

 

872 

 

 

 

914 

 

 

 

929 

Technology and communications

 

 

1,467 

 

 

 

1,096 

 

 

 

1,099 

Amortization of intangibles

 

 

134 

 

 

 

130 

 

 

 

112 

FDIC insurance

 

 

282 

 

 

 

179 

 

 

 

150 

Merger-related expenses

 

 

4,974 

 

 

 

460 

 

 

 

-    

Other expenses

 

 

1,093 

 

 

 

1,164 

 

 

 

1,304 

Total non-interest expenses

 

$

18,012 

 

 

$

12,870 

 

 

$

12,149 



 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits costs increased 3% from the first quarter of 2020 and 7% from the prior-year period.  The most significant component of the increase from both periods related to the addition of personnel related to the FSB acquisition.  The variance to the prior year also included annual merit increases.


 

Evans Bancorp Reports Second Quarter 2020 Results

July 29, 2020

Page 4 of 8

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

The increase in technology and communications was due to higher online banking activity, ATM card fees, and software costs primarily as a result of the FSB acquisition, in addition to expenditures related to COVID-19.

Merger-related expenses in the second quarter of 2020 included system contract termination and deconversion charges, and legal and other professional services.

The Company’s GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 93.9% in the second quarter of 2020, 79.9% in the first quarter of 2020, and 68.0% in the second 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 67.3% compared with 73.4% in the first quarter of 2020 and 67.5% in last year’s second quarter. 

Income tax expense was $0.1 million, or an effective tax rate of 16.7%, for the second quarter of 2020 compared an effective tax rate of 16.7% in the first quarter of 2020 and 22.1% in last year’s second quarter.  Excluding the impact of the 2020 historic tax credit transaction, the effective tax rate was 25.9% and 25.4% in the second and first quarters of 2020, respectively.     

Balance Sheet Highlights 

Total assets were $2.1 billion as of June 30, 2020, an increase of 35% from $1.52 billion on March 31, 2020 and 40% from $1.47 billion at June 30, 2019, reflecting $271 million of acquired FSB loans and the Company’s strong loan growth over the last year.  Since the end of last year’s second quarter loans were up $473 million, or 39%, to $1.69 billion largely due to the acquisition and growth in the commercial loan portfolio.  During the second quarter of 2020 the Company recorded $195 million in PPP loans. 

Investment securities were $170 million at June 30, 2020, $8 million higher than the end of the first quarter of 2020 and $33 million higher than at the end of last year’s second quarter.  FSB contributed approximately 
$15 million to the investment securities portfolio during the second quarter of 2020.  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 $482 million, or 36%, to $1.81 billion since March 31, 2020, and were $526 million, or 41%, higher than the balance at the end of last year’s second quarter.  FSB contributed approximately $245 million in total deposits.  The increase excluding the acquisition was primarily a result of an accumulation of liquidity by commercial customers in response to the pandemic,  increases in consumer deposits from government stimulus payments and lower consumer spending, and deposits related to PPP loans

The deposit increase from the first quarter of 2020 reflects higher demand deposits of $155 million, consumer savings of $90 million, time deposits of $87 million, NOW deposits of $71 million, commercial savings of
$44 million, and municipal savings of $35 million.  The year-over-year increase reflects higher demand deposits of $185 million, commercial savings of $106 million, NOW deposits of $84 million, time deposits of $66 million, municipal savings of $44 million, and consumer savings of $40 million.  

Capital Management

The Company has consistently maintained regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 8.44% at June 30, 2020 compared with 9.92% at
March 31, 2020 and 9.99% at June 30, 2019.  Book value per share was $30.13 at June 30, 2020 compared with $29.96 at March 31, 2020 and $28.74 at June 30, 2019. 






 

Evans Bancorp Reports Second Quarter 2020 Results

July 29, 2020

Page 5 of 8

Webcast and Conference Call

The Company will host a conference call and webcast on Wednesday, July 29, 2020 at 4:45 p.m. ET. Management will review the financial and operating results for the second 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,
August 5, 2020.  To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13705868, 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 $2.1 billion in assets and $1.8 billion in deposits at June 30, 2020.  Evans is a full-service community bank with 20 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

(716) 926-2000
[email protected] 

(716) 843-3908
[email protected]



Media Contact:

 

Kathleen Rizzo Young

Public & Community Relations Manager

716-343-5562

[email protected]

 








 

Evans Bancorp Reports Second Quarter 2020 Results

July 29, 2020

Page 6 of 8





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(in thousands, except shares and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits at banks

 

$

109,943 

 

 

$

40,760 

 

 

$

28,280 

 

 

$

14,757 

 

 

$

13,961 

 

Investment Securities

 

 

169,975 

 

 

 

162,038 

 

 

 

130,308 

 

 

 

136,977 

 

 

 

137,438 

 

Loans

 

 

1,685,761 

 

 

 

1,246,206 

 

 

 

1,226,531 

 

 

 

1,219,792 

 

 

 

1,212,699 

 

Allowance for loan losses

 

 

(18,754)

 

 

 

(18,157)

 

 

 

(15,175)

 

 

 

(15,382)

 

 

 

(15,248)

 

Goodwill and intangible assets

 

 

15,222 

 

 

 

13,421 

 

 

 

12,545 

 

 

 

12,657 

 

 

 

12,768 

 

All other assets

 

 

103,793 

 

 

 

80,543 

 

 

 

77,741 

 

 

 

86,931 

 

 

 

109,502 

 

Total assets

 

$

2,065,940 

 

 

$

1,524,811 

 

 

$

1,460,230 

 

 

$

1,455,732 

 

 

$

1,471,120 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

428,655 

 

 

 

273,623 

 

 

 

263,717 

 

 

 

271,633 

 

 

 

243,860 

 

NOW deposits

 

 

229,788 

 

 

 

159,223 

 

 

 

140,654 

 

 

 

141,384 

 

 

 

145,620 

 

Savings deposits

 

 

794,513 

 

 

 

625,773 

 

 

 

587,142 

 

 

 

568,156 

 

 

 

603,180 

 

Time deposits

 

 

356,147 

 

 

 

268,978 

 

 

 

275,927 

 

 

 

277,633 

 

 

 

290,251 

 

Total deposits

 

 

1,809,103 

 

 

 

1,327,597 

 

 

 

1,267,440 

 

 

 

1,258,806 

 

 

 

1,282,911 

 

Borrowings

 

 

67,715 

 

 

 

23,902 

 

 

 

23,755 

 

 

 

28,748 

 

 

 

25,298 

 

Other liabilities

 

 

27,124 

 

 

 

25,216 

 

 

 

20,582 

 

 

 

23,309 

 

 

 

21,624 

 

Total stockholders' equity

 

 

161,998 

 

 

 

148,096 

 

 

 

148,453 

 

 

 

144,869 

 

 

 

141,287 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

5,376,872 

 

 

 

4,942,802 

 

 

 

4,929,593 

 

 

 

4,920,381 

 

 

 

4,915,678 

 

Book value per share

 

$

30.13 

 

 

$

29.96 

 

 

$

30.11 

 

 

$

29.44 

 

 

$

28.74 

 

Tier 1 leverage ratio

 

 

8.44 

%

 

 

9.92 

%

 

 

10.33 

%

 

 

10.11 

%

 

 

9.99 

%

Tier 1 risk-based capital ratio

 

 

11.14 

%

 

 

11.84 

%

 

 

12.32 

%

 

 

11.87 

%

 

 

11.86 

%

Total risk-based capital ratio

 

 

12.39 

%

 

 

13.09 

%

 

 

13.56 

%

 

 

13.11 

%

 

 

13.11 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

19,718 

 

 

$

16,717 

 

 

$

14,396 

 

 

$

13,839 

 

 

$

11,020 

 

Total net loan charge-offs (recoveries)

 

 

-    

 

 

 

17 

 

 

 

85 

 

 

 

(565)

 

 

 

49 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

 

1.17 

%

 

 

1.34 

%

 

 

1.17 

%

 

 

1.13 

%

 

 

0.91 

%

Net loan charge-offs (recoveries)/Average loans

 

 

-    

%

 

 

0.01 

%

 

 

0.03 

%

 

 

(0.19)

%

 

 

0.02 

%

Allowance for loans losses/Total loans

 

 

1.11 

%

 

 

1.46 

%

 

 

1.24 

%

 

 

1.26 

%

 

 

1.26 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Evans Bancorp Reports Second Quarter 2020 Results

July 29, 2020

Page 7 of 8



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA  (UNAUDITED)

(in thousands, except share and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

2020

 

2020

 

2019

 

2019

 

2019



 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

Interest income

 

$

17,069 

 

 

$

15,823 

 

 

$

16,028 

 

 

$

16,845 

 

 

$

16,325 

 

Interest expense

 

 

2,136 

 

 

 

3,047 

 

 

 

3,236 

 

 

 

3,224 

 

 

 

3,191 

 

Net interest income

 

 

14,933 

 

 

 

12,776 

 

 

 

12,792 

 

 

 

13,621 

 

 

 

13,134 

 

Provision (credit) for loan losses

 

 

597 

 

 

 

2,999 

 

 

 

(122)

 

 

 

(431)

 

 

 

90 

 

Net interest income after provision

 

 

14,336 

 

 

 

9,777 

 

 

 

12,914 

 

 

 

14,052 

 

 

 

13,044 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

397 

 

 

 

628 

 

 

 

747 

 

 

 

687 

 

 

 

602 

 

Insurance service and fee revenue

 

 

2,667 

 

 

 

2,425 

 

 

 

2,120 

 

 

 

3,225 

 

 

 

2,901 

 

Bank-owned life insurance

 

 

178 

 

 

 

160 

 

 

 

164 

 

 

 

160 

 

 

 

173 

 

Loss on tax credit investment

 

 

-    

 

 

 

(2,475)

 

 

 

(158)

 

 

 

-    

 

 

 

-    

 

Refundable NY state historic tax credit

 

 

-    

 

 

 

1,857 

 

 

 

115 

 

 

 

-    

 

 

 

-    

 

Other income

 

 

997 

 

 

 

743 

 

 

 

1,005 

 

 

 

1,092 

 

 

 

1,054 

 

Total non-interest income

 

 

4,239 

 

 

 

3,338 

 

 

 

3,993 

 

 

 

5,164 

 

 

 

4,730 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,005 

 

 

 

7,797 

 

 

 

7,355 

 

 

 

7,644 

 

 

 

7,469 

 

Occupancy

 

 

1,062 

 

 

 

861 

 

 

 

868 

 

 

 

853 

 

 

 

872 

 

Advertising and public relations

 

 

123 

 

 

 

269 

 

 

 

421 

 

 

 

231 

 

 

 

214 

 

Professional services

 

 

872 

 

 

 

914 

 

 

 

827 

 

 

 

1,009 

 

 

 

929 

 

Technology and communications

 

 

1,467 

 

 

 

1,096 

 

 

 

1,075 

 

 

 

1,057 

 

 

 

1,099 

 

Amortization of intangibles

 

 

134 

 

 

 

130 

 

 

 

112 

 

 

 

112 

 

 

 

112 

 

FDIC insurance

 

 

282 

 

 

 

179 

 

 

 

74 

 

 

 

-    

 

 

 

150 

 

Merger-related expenses

 

 

4,974 

 

 

 

460 

 

 

 

232 

 

 

 

-    

 

 

 

-    

 

Other expenses

 

 

1,093 

 

 

 

1,164 

 

 

 

1,207 

 

 

 

1,370 

 

 

 

1,304 

 

Total non-interest expenses

 

 

18,012 

 

 

 

12,870 

 

 

 

12,171 

 

 

 

12,276 

 

 

 

12,149 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

563 

 

 

 

245 

 

 

 

4,736 

 

 

 

6,940 

 

 

 

5,625 

 

Income tax provision

 

 

94 

 

 

 

41 

 

 

 

988 

 

 

 

1,776 

 

 

 

1,243 

 

Net income

 

 

469 

 

 

 

204 

 

 

 

3,748 

 

 

 

5,164 

 

 

 

4,382 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

0.09 

 

 

$

0.04 

 

 

$

0.75 

 

 

$

1.04 

 

 

$

0.88 

 

Cash dividends per common share

 

$

-    

 

 

$

0.58 

 

 

$

-    

 

 

$

0.52 

 

 

$

-    

 

Weighted average number of diluted shares

 

 

5,243,581 

 

 

 

4,992,214 

 

 

 

4,990,863 

 

 

 

4,976,639 

 

 

 

4,953,072 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

0.10 

%

 

 

0.05 

%

 

 

1.02 

%

 

 

1.41 

%

 

 

1.21 

%

Return on average stockholders' equity

 

 

1.19 

%

 

 

0.55 

%

 

 

10.16 

%

 

 

14.29 

%

 

 

12.71 

%

Efficiency ratio

 

 

93.95 

%

 

 

79.87 

%

 

 

72.51 

%

 

 

65.35 

%

 

 

68.01 

%

Efficiency ratio (Non-GAAP)*

 

 

67.30 

%

 

 

73.39 

%

 

 

70.28 

%

 

 

64.75 

%

 

 

67.54 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*  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 Second Quarter 2020 Results

July 29, 2020

Page 8 of 8

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES  (UNAUDITED)

(in thousands)



 

2020

 

2020

 

2019

 

2019

 

2019



 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

1,535,206 

 

 

$

1,219,230 

 

 

$

1,213,837 

 

 

$

1,202,634 

 

 

$

1,183,379 

 

Investment securities

 

 

179,677 

 

 

 

136,029 

 

 

 

137,354 

 

 

 

143,731 

 

 

 

148,465 

 

Interest-bearing deposits at banks

 

 

73,973 

 

 

 

57,319 

 

 

 

32,061 

 

 

 

24,661 

 

 

 

28,132 

 

Total interest-earning assets

 

 

1,788,856 

 

 

 

1,412,578 

 

 

 

1,383,252 

 

 

 

1,371,026 

 

 

 

1,359,976 

 

Non interest-earning assets

 

 

107,738 

 

 

 

89,804 

 

 

 

89,415 

 

 

 

89,513 

 

 

 

85,720 

 

Total Assets

 

$

1,896,594 

 

 

$

1,502,382 

 

 

$

1,472,667 

 

 

$

1,460,539 

 

 

$

1,445,696 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

203,458 

 

 

 

144,564 

 

 

 

136,077 

 

 

 

134,008 

 

 

 

123,515 

 

Savings

 

 

721,578 

 

 

 

605,103 

 

 

 

593,694 

 

 

 

591,585 

 

 

 

605,524 

 

Time deposits

 

 

337,187 

 

 

 

274,576 

 

 

 

274,856 

 

 

 

281,798 

 

 

 

289,794 

 

Total interest-bearing deposits

 

 

1,262,223 

 

 

 

1,024,243 

 

 

 

1,004,627 

 

 

 

1,007,391 

 

 

 

1,018,833 

 

Borrowings

 

 

51,493 

 

 

 

24,708 

 

 

 

27,241 

 

 

 

25,234 

 

 

 

24,231 

 

Total interest-bearing liabilities

 

 

1,313,716 

 

 

 

1,048,951 

 

 

 

1,031,868 

 

 

 

1,032,625 

 

 

 

1,043,064 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

399,807 

 

 

 

281,624 

 

 

 

272,834 

 

 

 

261,089 

 

 

 

244,142 

 

Other non-interest bearing liabilities

 

 

25,540 

 

 

 

22,127 

 

 

 

20,375 

 

 

 

22,231 

 

 

 

20,609 

 

Stockholders' equity

 

 

157,531 

 

 

 

149,680 

 

 

 

147,590 

 

 

 

144,594 

 

 

 

137,881 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

1,896,594 

 

 

$

1,502,382 

 

 

$

1,472,667 

 

 

$

1,460,539 

 

 

$

1,445,696 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

 

4.22