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Evans Bancorp Reports First Quarter 2020 Results

Company Release - 4/29/2020 4:15 PM ET

HAMBURG, N.Y.--(BUSINESS WIRE)-- 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 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 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.

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.

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 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, 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

 

 

 

21,219

 

Stockholders' equity

 

 

149,680

 

 

 

147,590

 

 

 

144,594

 

 

 

137,881

 

 

 

132,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

1,502,382

 

 

$

1,472,667

 

 

$

1,460,539

 

 

$

1,445,696

 

 

$

1,424,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

 

4.80

%

 

 

4.92

%

 

 

5.16

%

 

 

5.13

%

 

 

5.05

%

Investment securities

 

 

3.24

%

 

 

2.46

%

 

 

2.87

%

 

 

2.77

%

 

 

2.67

%

Interest-bearing deposits at banks

 

 

1.27

%

 

 

1.65

%

 

 

2.56

%

 

 

2.22

%

 

 

2.29

%

Total interest-earning assets

 

 

4.51

%

 

 

4.61

%

 

 

4.87

%

 

 

4.81

%

 

 

4.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

0.50

%

 

 

0.57

%

 

 

0.45

%

 

 

0.37

%

 

 

0.30

%

Savings

 

 

0.87

%

 

 

0.94

%

 

 

0.90

%

 

 

0.87

%

 

 

0.80

%

Time deposits

 

 

2.02

%

 

 

2.09

%

 

 

2.17

%

 

 

2.18

%

 

 

2.16

%

Total interest-bearing deposits

 

 

1.13

%

 

 

1.21

%

 

 

1.20

%

 

 

1.18

%

 

 

1.15

%

Borrowings

 

 

2.78

%

 

 

2.64

%

 

 

2.92

%

 

 

3.13

%

 

 

3.01

%

Total interest-bearing liabilities

 

 

1.17

%

 

 

1.24

%

 

 

1.24

%

 

 

1.23

%

 

 

1.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

3.34

%

 

 

3.36

%

 

 

3.63

%

 

 

3.58

%

 

 

3.51

%

Contribution of interest-free funds

 

 

0.30

%

 

 

0.31

%

 

 

0.31

%

 

 

0.29

%

 

 

0.28

%

Net interest margin

 

 

3.64

%

 

 

3.67

%

 

 

3.94

%

 

 

3.87

%

 

 

3.79

%

 

John B. Connerton
Executive Vice President and Chief Financial Officer
Phone: (716) 926-2000
Email: [email protected]
-OR-
Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
Email: [email protected]

Source: Evans Bancorp, Inc.