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Evans Bancorp Reports Net Income of $3.7 Million In Fourth Quarter 2024

Evans Bancorp, Inc. (the “Company” or “Evans”) (NYSE American: EVBN), a community financial services company serving Western New York since 1920, today reported results of operations for the fourth quarter and full year ended December 31, 2024. The prior-year periods include business activity relating to The Evans Agency (“TEA”) prior to the sale to Arthur J. Gallagher & Co. on November 30, 2023.

HIGHLIGHTS

  • Net income per share was $0.67 in the fourth quarter, which included $1.1 million in merger-related expenses and a partially offsetting benefit from the recognition of a real estate historic tax credit investment
  • Fourth quarter net interest margin was 2.96%, up 16 basis points sequentially driven by strategic deposit pricing
  • Total loans grew by $63 million, or 4%, since December 31, 2023
  • Strong loan pipeline of $76 million
  • Total deposits up $148 million, or 9%, from December 31, 2023
  • Evans shareholders approved the merger with NBT Bancorp Inc.

Net income of $3.7 million, or $0.67 per diluted share, in the fourth quarter of 2024 was up sequentially and reflected higher net interest income of $0.7 million and an increase in non-interest income of $0.3 million offset by higher provision for credit losses of $0.5 million and an increase in non-interest expense of $0.8 million, which included $1.1 million of merger related costs. Last year’s fourth quarter had net income of $10.2 million, or $1.85 per diluted share. The prior year period included the sale of The Evans Agency to Arthur J. Gallagher & Co., and recognized a pretax gain of $20.2 million. In addition, in the fourth quarter of 2023, the Company strategically repositioned its balance sheet by selling $78 million of investment securities, primarily available-for-sale U.S. Treasuries and government-sponsored agency securities, and used the proceeds to pay down short-term borrowings. This action resulted in $5.0 million of pretax losses on investment securities during the fourth quarter of 2023. Return on average equity was 8.06% for the fourth quarter of 2024, compared with 6.44% in the third quarter of 2024 and 25.73% in the fourth quarter of 2023.

For the full year of 2024, net income was $12.0 million, or $2.16 per diluted share, compared with $24.5 million, or $4.48 per diluted share, in 2023. The change largely reflected the gain on sale of the insurance agency, which benefited the 2023 period. The return on average equity was 6.65% in 2024 compared with 15.47% in 2023.

David J. Nasca, President and CEO of Evans Bancorp, Inc., commented, “As we close out 2024, we reflect on a transformative year for our organization, marked by solid growth and progress, as well as key milestones related to our pending merger with NBT Bancorp Inc. Throughout this process, we have remained focused on execution, maintaining strong credit quality, and ensuring a smooth transition that prioritizes the needs of our customers, employees and shareholders.

“This quarter, Evans shareholders approved the merger with NBT, a pivotal step in our journey. We are confident that this partnership will enhance our long-term ability to deliver exceptional service, strengthen our position in the market, and create lasting value for all stakeholders – the community, clients, associates, and stockholders. We thank our team members for their dedication and our customers and shareholders for their continued trust as we look forward to a bright future.”

On September 9, 2024, NBT Bancorp Inc. (“NBT”) (Nasdaq: NBTB) and Evans announced that they had entered into a definitive agreement pursuant to which Evans will merge with and into NBT. In accord with the merger agreement, NBT will acquire 100% of the outstanding shares of Evans in exchange for common shares of NBT. The exchange ratio will be fixed at 0.91 NBT shares for each share of Evans, resulting in an aggregate transaction value of approximately $236 million based on NBT’s closing stock price of $46.28 on September 6, 2024. On December 20, 2024, the shareholders of Evans voted to approve the merger. In addition, regulatory approval was received for the merger in December. Evans reported over 75% of the issued and outstanding shares of Evans were represented at a special shareholder meeting and over 96% of the votes cast were voted to approve the merger. The merger is expected to close in the second quarter of 2025 in conjunction with the system conversion.

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4Q 2024

 

 

3Q 2024

 

 

4Q 2023

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

28,031

 

 

$

28,698

 

 

$

25,205

Interest expense

 

 

12,334

 

 

 

13,654

 

 

 

11,259

Net interest income

 

 

15,697

 

 

 

15,044

 

 

 

13,946

Provision for credit losses

 

 

1,103

 

 

 

570

 

 

 

282

Net interest income after provision

 

$

14,594

 

 

$

14,474

 

 

$

13,664

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income of $15.7 million increased $0.7 million, or 4%, over the third quarter of 2024 due to higher average loans originated and reductions in the cost of funds as the competitive market for funding decreases in response to the federal reserve’s rate cuts. Compared with last year’s fourth quarter, net interest income was higher by $1.8 million, or 13%, due to higher average loan balances and higher yields on those balances.

Fourth quarter net interest margin of 2.96% increased 16 basis points from the trailing third quarter and was up 21 basis points over the prior-year period. The yield on loans decreased 8 basis points compared with the third quarter, though was up 29 basis points year-over-year. The cost of interest-bearing liabilities was 3.01% compared with 3.28% in the third quarter of 2024 and 2.87% in the fourth quarter of 2023.

The $1.1 million provision for credit losses in the fourth quarter was due mostly to a specific reserve taken on one loan previously classified as non-performing. A new appraisal related to this loan identified a reduction in value as the business vacated the property. The decrease in non-performing loans of $12.3 million during the quarter was due largely to one loan that was 90 days past due and still accruing in the third quarter of 2024, which renewed early in the fourth quarter.

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4Q 2024

 

 

3Q 2024

 

 

4Q 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

20,275

 

 

$

32,598

 

 

$

27,325

 

Total net loan charge-offs

 

 

18

 

 

 

41

 

 

 

11

 

Non-performing loans / Total loans

 

 

1.14

%

 

 

1.82

%

 

 

1.59

%

Net loan charge-offs / Average loans

 

 

-

%

 

 

0.01

%

 

 

-

%

Allowance for credit losses / Total loans

 

 

1.36

%

 

 

1.29

%

 

 

1.28

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income

($ in thousands)

 

 

4Q 2024

 

 

3Q 2024

 

 

4Q 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

$

728

 

 

 

$

699

 

 

$

670

 

Insurance service and fee revenue

 

 

145

 

 

 

 

186

 

 

 

1,613

 

Bank-owned life insurance

 

 

255

 

 

 

 

253

 

 

 

230

 

Loss on tax credit investment

 

 

(484

)

 

 

 

-

 

 

 

-

 

Refundable NY state historic tax credit

 

 

720

 

 

 

 

-

 

 

 

-

 

Interchange fee income

 

 

516

 

 

 

 

529

 

 

 

510

 

Gain on sale of other real estate owned

 

 

-

 

 

 

 

598

 

 

 

-

 

Gain on sale of insurance agency

 

 

-

 

 

 

 

-

 

 

 

20,160

 

Loss on sale of investment securities

 

 

-

 

 

 

 

-

 

 

 

(5,044

)

Other income

 

 

1,418

 

 

 

 

729

 

 

 

412

 

Total non-interest income

 

$

3,298

 

 

 

$

2,994

 

 

$

18,551

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income increased $0.3 million from the sequential quarter, due in part to the net incremental impact of a historic tax credit placed in service during the fourth quarter. The amounts are reflected on the refundable NY state tax credit and the loss on tax credit investment lines on the income statement. Additionally, the Company received $0.3 million gain from the payment of an additional tax credit investment, which was recognized in the other income category. These increases were partially offset in comparison with the third quarter due to a gain on the sale of a property that the Company had in other real estate owned during the sequential quarter.

Excluding the 2023 fourth quarter’s transactions relating to the gain on the sale of TEA and loss on sale of securities, non-interest income would have been $3.4 million.

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense

($ in thousands)

 

 

4Q 2024

 

 

3Q 2024

 

 

4Q 2023

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

7,931

 

 

$

7,539

 

 

$

10,251

Occupancy

 

 

1,023

 

 

 

1,088

 

 

 

1,078

Advertising and public relations

 

 

184

 

 

 

327

 

 

 

296

Professional services

 

 

776

 

 

 

992

 

 

 

1,003

Technology and communications

 

 

1,556

 

 

 

1,423

 

 

 

1,545

Amortization of intangibles

 

 

4

 

 

 

4

 

 

 

67

FDIC insurance

 

 

350

 

 

 

340

 

 

 

350

Merger related

 

 

1,073

 

 

 

600

 

 

 

-

Other expenses

 

 

1,454

 

 

 

1,274

 

 

 

1,710

Total non-interest expenses

 

$

14,351

 

 

$

13,587

 

 

$

16,300

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses increased $0.8 million from the sequential quarter, which included an additional $0.5 million of merger-related expenses in support of the planned merger with NBT.

Salaries and employee benefits, the largest component of non-interest expenses, were up $0.4 million, or 5%, from the third quarter of 2024 largely due to higher incentive accruals of $0.5 million. Compared with last year’s fourth quarter, the decrease of $2.3 million, or 23%, was primarily due to salaries and employee benefit expenses related to TEA of $0.8 million and a $1.4 million larger incentive accrual in the prior year’s fourth quarter.

The Company’s GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 75.55% in the fourth quarter of 2024, 75.32% in the third quarter of 2024, and 50.16% in the fourth quarter of 2023.

Income tax benefit was $0.2 million in the fourth quarter of 2024, mainly a result of the recognition of deductions taken on the 2023 tax return related to the sale of TEA and the impact of the historic tax credit recognized in the fourth quarter. This was compared to tax expense and an effective tax rate of 24.2% in the third quarter of 2024 and 36.1% in last year’s fourth quarter. The elevated tax rate in the 2023 fourth quarter reflected the sale of TEA, which included significant non-deductible goodwill expense.

Balance Sheet Highlights

Total assets were $2.19 billion as of December 31, 2024, a decrease of $93 million, or 4%, since September 30, 2024, though were up $79 million, or 4%, since December 31, 2023. Interest-bearing deposits at banks decreased $79 million for the quarter and increased $24 million since December 31, 2023. In addition, loan growth was $63 million, or 4%, since year end 2023 and flat when compared with the sequential period.

Investment securities were $263 million at December 31, 2024, $13 million lower than the end of the third quarter of 2024 and $15 million lower than the end of last year’s fourth 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. The Company has the positive intent and ability to hold the remaining portfolio through recovery of value.

Total deposits of $1.87 billion increased $148 million, or 9%, from the end of last year’s fourth quarter. On a sequential basis, total deposits were down $34 million, or 2%, due mostly to normal municipal seasonality.

At December 31, 2024, Evans had $80 million borrowed at FHLB. Given the current collateral available at FHLB, advances up to $401 million can be drawn on the FHLB via the Company’s overnight line of credit. Additionally, Evans has the ability to borrow from the Federal Reserve. At December 31, 2024, Evans had no short-term borrowings with the Federal Reserve and $96 million in additional availability to borrow against collateral.

Capital Management

The Company has consistently maintained regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 10.37% at December 31, 2024 compared with 10.01% at September 30, 2024 and 10.37% at December 31, 2023.

Book value per share was $32.89 at December 31, 2024 compared with $33.58 at September 30, 2024 and $32.40 at December 31, 2023. Reflected in the book value changes are the Federal Reserve’s aggressive interest rate hikes that have resulted in significant unrealized losses on investment securities. As of December 31, 2024, this amounted to $7.63 per share impact to book value. Such unrealized gains and losses are due to changes in interest rates and represent the difference, net of applicable income tax effect, between the estimated fair value and amortized cost of investment securities classified as available-for-sale.

Non-GAAP tangible book value per share was $32.56 at December 31, 2024 compared with $33.25 at September 30, 2024 and $32.07 at December 31, 2023.

2024 Year in Review (compared with prior-year)

Net interest income was $59.0 million, down 4%. The yield on loans increased 40 basis points while competition on deposits and changes in customer behaviors contributed to the 82 basis points increase in cost of funds during 2024. Net interest margin was 2.81%, a decrease of 21 basis points.

The Company’s provision for credit loss was $2.2 million, which reflected a reserve taken on one loan previously in non-performing and for loan growth during the full year. Provision for credit losses in 2023 was negligible due to improving economic conditions. The ratio of non-performing loans to total loans was 1.14% compared with 1.59% in 2023.

Non-interest income was $11.0 million in 2024 compared with $32.9 million in 2023. The decrease was due to the gain on sale of the insurance agency of $20.2 million and the related decrease in insurance service and fee income of $9.7 million, partially offset by loss on sale of investment securities of $5.0 million in 2023.

Non-interest expense decreased $6.0 million to $53.4 million, which reflected reductions of $6.7 million related to the sale of TEA offset by merger related expenses of $1.7 million.

The Company’s GAAP efficiency ratio was 76.40% in 2024 compared with 63.09% in 2023.

Income tax expense for the year was $2.3 million, representing an effective tax rate of 16.2% compared with an effective tax rate of 29.4% in 2023.

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 $2.2 billion in assets and $1.9 billion in deposits at December 31, 2024. Evans Bank is a full-service community bank with 18 branches providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. 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 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)

 

 

 

12/31/2024

 

 

 

9/30/2024

 

 

 

6/30/2024

 

 

 

3/31/2024

 

 

 

12/31/2023

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits at banks

 

$

28,095

 

 

 

$

107,296

 

 

 

$

110,042

 

 

 

$

164,400

 

 

 

$

3,798

 

 

Securities AFS

 

 

258,677

 

 

 

 

271,232

 

 

 

 

263,740

 

 

 

 

268,476

 

 

 

 

275,680

 

 

Securities HTM

 

 

4,347

 

 

 

 

4,376

 

 

 

 

3,626

 

 

 

 

3,611

 

 

 

 

2,059

 

 

Loans

 

 

1,783,664

 

 

 

 

1,787,957

 

 

 

 

1,765,116

 

 

 

 

1,721,876

 

 

 

 

1,720,946

 

 

Allowance for credit losses

 

 

(24,176

)

 

 

 

(23,091

)

 

 

 

(22,562

)

 

 

 

(22,287

)

 

 

 

(22,114

)

 

Goodwill and intangible assets

 

 

1,846

 

 

 

 

1,850

 

 

 

 

1,854

 

 

 

 

1,858

 

 

 

 

1,862

 

 

All other assets

 

 

135,012

 

 

 

 

130,386

 

 

 

 

135,551

 

 

 

 

122,010

 

 

 

 

126,432

 

 

Total assets

 

$

2,187,465

 

 

 

$

2,280,006

 

 

 

$

2,257,367

 

 

 

$

2,259,944

 

 

 

$

2,108,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

373,240

 

 

 

$

435,358

 

 

 

$

397,535

 

 

 

$

399,558

 

 

 

$

390,238

 

 

NOW deposits

 

 

399,046

 

 

 

 

372,462

 

 

 

 

382,513

 

 

 

 

381,798

 

 

 

 

345,279

 

 

Savings deposits

 

 

699,635

 

 

 

 

706,849

 

 

 

 

710,596

 

 

 

 

715,495

 

 

 

 

649,621

 

 

Time deposits

 

 

394,556

 

 

 

 

386,049

 

 

 

 

400,897

 

 

 

 

394,515

 

 

 

 

333,623

 

 

Total deposits

 

 

1,866,477

 

 

 

 

1,900,718

 

 

 

 

1,891,541

 

 

 

 

1,891,366

 

 

 

 

1,718,761

 

 

Securities sold under agreement to repurchase

 

 

6,586

 

 

 

 

8,282

 

 

 

 

7,684

 

 

 

 

6,873

 

 

 

 

9,475

 

 

Subordinated debt

 

 

31,279

 

 

 

 

31,254

 

 

 

 

31,228

 

 

 

 

31,203

 

 

 

 

31,177

 

 

Other borrowings

 

 

80,000

 

 

 

 

128,000

 

 

 

 

129,006

 

 

 

 

131,023

 

 

 

 

145,123

 

 

Other liabilities

 

 

19,980

 

 

 

 

25,905

 

 

 

 

20,259

 

 

 

 

24,884

 

 

 

 

25,908

 

 

Total stockholders' equity

 

$

183,143

 

 

 

$

185,847

 

 

 

$

177,649

 

 

 

$

174,595

 

 

 

$

178,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

5,567,833

 

 

 

 

5,534,239

 

 

 

 

5,525,838

 

 

 

 

5,521,009

 

 

 

 

5,499,772

 

 

Book value per share

 

$

32.89

 

 

 

$

33.58

 

 

 

$

32.15

 

 

 

$

31.62

 

 

 

$

32.40

 

 

Tangible book value per share (Non-GAAP)

 

$

32.56

 

 

 

$

33.25

 

 

 

$

31.81

 

 

 

$

31.29

 

 

 

$

32.07

 

 

Tier 1 leverage ratio

 

 

10.37

 

%

 

 

10.01

 

%

 

 

10.04

 

%

 

 

10.52

 

%

 

 

10.37

 

%

Tier 1 risk-based capital ratio

 

 

13.63

 

%

 

 

13.38

 

%

 

 

13.55

 

%

 

 

13.63

 

%

 

 

13.80

 

%

Total risk-based capital ratio

 

 

14.88

 

%

 

 

14.63

 

%

 

 

14.80

 

%

 

 

14.89

 

%

 

 

15.05

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

20,275

 

 

 

$

32,598

 

 

 

$

25,128

 

 

 

$

27,977

 

 

 

$

27,325

 

 

Total net loan charge-offs (recoveries)

 

 

18

 

 

 

 

41

 

 

 

 

22

 

 

 

 

93

 

 

 

 

11

 

 

Other real estate owned (OREO)

 

$

-

 

 

 

$

-

 

 

 

$

6,902

 

 

 

$

-

 

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

 

1.14

 

%

 

 

1.82

 

%

 

 

1.42

 

%

 

 

1.62

 

%

 

 

1.59

 

%

Net loan charge-offs (recoveries)/Average loans

 

 

-

 

%

 

 

0.01

 

%

 

 

0.01

 

%

 

 

0.02

 

%

 

 

-

 

%

Allowance for credit losses/Total loans

 

 

1.36

 

%

 

 

1.29

 

%

 

 

1.28

 

%

 

 

1.29

 

%

 

 

1.28

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA (UNAUDITED)

(in thousands, except share and per share data)

 

 

 

2024

 

 

 

2024

 

 

2024

 

2024

 

2023

 

 

Fourth Quarter

 

 

Third Quarter

 

 

Second Quarter

 

First Quarter

 

Fourth Quarter

Interest income

 

$

28,031

 

 

 

$

28,698

 

 

 

$

27,815

 

 

 

$

25,374

 

 

 

$

25,205

 

 

Interest expense

 

 

12,334

 

 

 

 

13,654

 

 

 

 

13,495

 

 

 

 

11,467

 

 

 

 

11,259

 

 

Net interest income

 

 

15,697

 

 

 

 

15,044

 

 

 

 

14,320

 

 

 

 

13,907

 

 

 

 

13,946

 

 

Provision for credit losses

 

 

1,103

 

 

 

 

570

 

 

 

 

297

 

 

 

 

266

 

 

 

 

282

 

 

Net interest income after provision for credit losses

 

 

14,594

 

 

 

 

14,474

 

 

 

 

14,023

 

 

 

 

13,641

 

 

 

 

13,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

728

 

 

 

 

699

 

 

 

 

667

 

 

 

 

681

 

 

 

 

670

 

 

Insurance service and fee revenue

 

 

145

 

 

 

 

186

 

 

 

 

176

 

 

 

 

149

 

 

 

 

1,613

 

 

Bank-owned life insurance

 

 

255

 

 

 

 

253

 

 

 

 

252

 

 

 

 

246

 

 

 

 

230

 

 

Interchange fee income

 

 

516

 

 

 

 

529

 

 

 

 

504

 

 

 

 

466

 

 

 

 

510

 

 

Gain on sale of other real estate owned

 

 

-

 

 

 

 

598

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

Gain on sale of insurance agency

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

20,160

 

 

Loss on sale of investment securities

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(5,044

)

 

Loss on tax credit investment

 

 

(484

)

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

Refundable NY state historic tax credit

 

 

720

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

Other income

 

 

1,418

 

 

 

 

729

 

 

 

 

801

 

 

 

 

725

 

 

 

 

412

 

 

Total non-interest income

 

 

3,298

 

 

 

 

2,994

 

 

 

 

2,400

 

 

 

 

2,267

 

 

 

 

18,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,931

 

 

 

 

7,539

 

 

 

 

7,330

 

 

 

 

7,837

 

 

 

 

10,251

 

 

Occupancy

 

 

1,023

 

 

 

 

1,088

 

 

 

 

1,089

 

 

 

 

1,157

 

 

 

 

1,078

 

 

Advertising and public relations

 

 

184

 

 

 

 

327

 

 

 

 

254

 

 

 

 

171

 

 

 

 

296

 

 

Professional services

 

 

776

 

 

 

 

992

 

 

 

 

870

 

 

 

 

895

 

 

 

 

1,003

 

 

Technology and communications

 

 

1,556

 

 

 

 

1,423

 

 

 

 

1,596

 

 

 

 

1,409

 

 

 

 

1,545

 

 

Amortization of intangibles

 

 

4

 

 

 

 

4

 

 

 

 

4

 

 

 

 

4

 

 

 

 

67

 

 

FDIC insurance

 

 

350

 

 

 

 

340

 

 

 

 

300

 

 

 

 

325

 

 

 

 

350

 

 

Merger related

 

 

1,073

 

 

 

 

600

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

Other expenses

 

 

1,454

 

 

 

 

1,274

 

 

 

 

1,115

 

 

 

 

1,129

 

 

 

 

1,710

 

 

Total non-interest expenses

 

 

14,351

 

 

 

 

13,587

 

 

 

 

12,558

 

 

 

 

12,927

 

 

 

 

16,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

3,541

 

 

 

 

3,881

 

 

 

 

3,865

 

 

 

 

2,981

 

 

 

 

15,915

 

 

Income tax (benefit) provision

 

 

(190

)

 

 

 

938

 

 

 

 

919

 

 

 

 

647

 

 

 

 

5,741

 

 

Net income

 

 

3,731

 

 

 

 

2,943

 

 

 

 

2,946

 

 

 

 

2,334

 

 

 

 

10,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

0.67

 

 

 

$

0.53

 

 

 

$

0.53

 

 

 

$

0.42

 

 

 

$

1.85

 

 

Cash dividends per common share

 

$

-

 

 

 

$

0.66

 

 

 

$

-

 

 

 

$

0.66

 

 

 

$

-

 

 

Weighted average number of diluted shares

 

 

5,562,972

 

 

 

 

5,542,694

 

 

 

 

5,530,120

 

 

 

 

5,519,244

 

 

 

 

5,497,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

0.67

 

%

 

 

0.52

 

%

 

 

0.52

 

%

 

 

0.44

 

%

 

 

1.90

 

%

Return on average stockholders' equity

 

 

8.06

 

%

 

 

6.44

 

%

 

 

6.76

 

%

 

 

5.28

 

%

 

 

25.73

 

%

Return on average tangible common stockholders' equity (Non-GAAP)*

 

 

8.14

 

%

 

 

6.51

 

%

 

 

6.83

 

%

 

 

5.33

 

%

 

 

27.37

 

%

Efficiency ratio

 

 

75.55

 

%

 

 

75.32

 

%

 

 

75.11

 

%

 

 

79.92

 

%

 

 

50.16

 

%

Efficiency ratio (Non-GAAP)**

 

 

70.76

 

%

 

 

71.98

 

%

 

 

75.08

 

%

 

 

79.90

 

%

 

 

93.40

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.

** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, gains from sale of subsidiaries, 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)

 

 

2024

 

2024

 

2024

 

2024

 

2023

 

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

Fourth Quarter

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

1,764,789

 

 

 

$

1,743,042

 

 

 

$

1,715,280

 

 

 

$

1,703,320

 

 

 

$

1,682,177

 

 

Investment securities

 

 

278,658

 

 

 

 

278,956

 

 

 

 

275,854

 

 

 

 

280,975

 

 

 

 

327,303

 

 

Interest-bearing deposits at banks

 

 

64,793

 

 

 

 

117,326

 

 

 

 

137,442

 

 

 

 

18,889

 

 

 

 

5,916

 

 

Total interest-earning assets

 

 

2,108,240

 

 

 

 

2,139,324

 

 

 

 

2,128,576

 

 

 

 

2,003,184

 

 

 

 

2,015,396

 

 

Non interest-earning assets

 

 

123,718

 

 

 

 

126,056

 

 

 

 

123,457

 

 

 

 

117,646

 

 

 

 

128,915

 

 

Total Assets

 

$

2,231,958

 

 

 

$

2,265,380

 

 

 

$

2,252,033

 

 

 

$

2,120,830

 

 

 

$

2,144,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

391,931

 

 

 

 

381,054

 

 

 

 

374,910

 

 

 

 

347,908

 

 

 

 

333,893

 

 

Savings

 

 

713,921

 

 

 

 

707,742

 

 

 

 

718,627

 

 

 

 

658,656

 

 

 

 

687,223

 

 

Time deposits

 

 

392,134

 

 

 

 

399,180

 

 

 

 

399,476

 

 

 

 

342,358

 

 

 

 

335,646

 

 

Total interest-bearing deposits

 

 

1,497,986

 

 

 

 

1,487,976

 

 

 

 

1,493,013

 

 

 

 

1,348,922

 

 

 

 

1,356,762

 

 

Borrowings

 

 

129,608

 

 

 

 

168,630

 

 

 

 

168,856

 

 

 

 

166,948

 

 

 

 

197,363

 

 

Total interest-bearing liabilities

 

 

1,627,594

 

 

 

 

1,656,606

 

 

 

 

1,661,869

 

 

 

 

1,515,870

 

 

 

 

1,554,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

397,425

 

 

 

 

403,182

 

 

 

 

395,876

 

 

 

 

404,053

 

 

 

 

409,115

 

 

Other non-interest bearing liabilities

 

 

21,702

 

 

 

 

22,792

 

 

 

 

19,885

 

 

 

 

23,943

 

 

 

 

22,880

 

 

Stockholders' equity

 

 

185,237

 

 

 

 

182,800

 

 

 

 

174,403

 

 

 

 

176,964

 

 

 

 

158,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

2,231,958

 

 

 

$

2,265,380

 

 

 

$

2,252,033

 

 

 

$

2,120,830

 

 

 

$

2,144,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common stockholders' equity (Non-GAAP)*

 

 

183,389

 

 

 

 

180,947

 

 

 

 

172,546

 

 

 

 

175,103

 

 

 

 

148,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

 

5.72

 

%

 

 

5.80

 

%

 

 

5.63

 

%

 

 

5.56

 

%

 

 

5.43

 

%

Investment securities

 

 

2.49

 

%

 

 

2.48

 

%

 

 

2.63

 

%

 

 

2.53

 

%

 

 

2.53

 

%

Interest-bearing deposits at banks

 

 

5.72

 

%

 

 

5.31

 

%

 

 

5.86

 

%

 

 

1.68

 

%

 

 

6.38

 

%

Total interest-earning assets

 

 

5.29

 

%

 

 

5.34

 

%

 

 

5.26

 

%

 

 

5.09

 

%

 

 

4.96

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

2.47

 

%

 

 

2.62

 

%

 

 

2.50

 

%

 

 

2.30

 

%

 

 

2.12

 

%

Savings

 

 

2.35

 

%

 

 

2.56

 

%

 

 

2.53

 

%

 

 

2.25

 

%

 

 

2.09

 

%

Time deposits

 

 

4.07

 

%

 

 

4.41

 

%

 

 

4.52

 

%

 

 

4.24

 

%

 

 

3.83

 

%

Total interest-bearing deposits

 

 

2.83

 

%

 

 

3.07

 

%

 

 

3.05

 

%

 

 

2.77

 

%

 

 

2.53

 

%

Borrowings

 

 

5.12

 

%

 

 

5.09

 

%

 

 

5.16

 

%

 

 

5.25

 

%

 

 

5.27

 

%

Total interest-bearing liabilities

 

 

3.01

 

%

 

 

3.28

 

%

 

 

3.27

 

%

 

 

3.04

 

%

 

 

2.87

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

2.28

 

%

 

 

2.06

 

%

 

 

1.99

 

%

 

 

2.05

 

%

 

 

2.09

 

%

Contribution of interest-free funds

 

 

0.68

 

%

 

 

0.74

 

%

 

 

0.72

 

%

 

 

0.74

 

%

 

 

0.66

 

%

Net interest margin

 

 

2.96

 

%

 

 

2.80

 

%

 

 

2.71

 

%

 

 

2.79

 

%

 

 

2.75

 

%

* Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

 

 

 

 

 

 

 

SELECTED OPERATIONS DATA (UNAUDITED)

 

 

 

 

 

 

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

2024

 

2023

 

 

 

Year to Date

 

Year to Date

 

Interest income

 

$

109,918

 

 

$

96,850

 

 

Interest expense

 

 

50,950

 

 

 

35,642

 

 

Net interest income

 

 

58,968

 

 

 

61,208

 

 

Provision for credit losses

 

 

2,236

 

 

 

18

 

 

Net interest income after provision for credit losses

 

 

56,732

 

 

 

61,190

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

2,774

 

 

 

2,593

 

 

Insurance service and fee revenue

 

 

655

 

 

 

10,261

 

 

Bank-owned life insurance

 

 

1,006

 

 

 

932

 

 

Loss on tax credit investment

 

 

(484

)

 

 

-

 

 

Refundable NY state historic tax credit

 

 

720

 

 

 

-

 

 

Interchange fee income

 

 

2,015

 

 

 

2,047

 

 

Gain on sale of insurance agency

 

 

-

 

 

 

20,160

 

 

Loss on sale of investment securities

 

 

-

 

 

 

(5,044

)

 

Other income

 

 

4,272

 

 

 

1,973

 

 

Total non-interest income

 

 

10,958

 

 

 

32,922

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

30,637

 

 

 

37,047

 

 

Occupancy

 

 

4,357

 

 

 

4,506

 

 

Advertising and public relations

 

 

935

 

 

 

1,207

 

 

Professional services

 

 

3,533

 

 

 

3,563

 

 

Technology and communications

 

 

5,984

 

 

 

5,959

 

 

FDIC insurance

 

 

1,315

 

 

 

1,400

 

 

Amortization of intangibles

 

 

17

 

 

 

367

 

 

Merger-related expenses

 

 

1,673

 

 

 

-

 

 

Other expenses

 

 

4,971

 

 

 

5,333

 

 

Total non-interest expenses

 

 

53,422

 

 

 

59,382

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

14,268

 

 

 

34,730

 

 

Income tax provision

 

 

2,314

 

 

 

10,206

 

 

Net income

 

 

11,954

 

 

 

24,524

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

2.16

 

 

$

4.48

 

 

Cash dividends per common share

 

$

1.32

 

 

$

1.32

 

 

Weighted average number of diluted shares

 

 

5,541,373

 

 

 

5,471,033

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

Return on average total assets

 

 

0.54

 

%

 

1.14

 

%

Return on average stockholders' equity

 

 

6.65

 

%

 

15.47

 

%

Return on average tangible common stockholders' equity (Non-GAAP)*

 

 

6.72

 

%

 

16.82

 

%

Efficiency ratio

 

 

76.40

 

%

 

63.09

 

%

Efficiency ratio (Non-GAAP)**

 

 

74.23

 

%

 

74.69

 

%

Net interest margin

 

 

2.81

 

%

 

3.02

 

%

Net loan charge-offs (recoveries)/Average loans

 

 

0.01

 

%

 

-

 

%

 

 

 

 

 

 

 

 

* The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.

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

 

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