EX-99.1 2 d527191dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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

IMMEDIATE RELEASE

Evans Bancorp Reports Net Income of $1.8 Million for the 2013 First Quarter

HAMBURG, NY, April 24, 2013– Evans Bancorp, Inc. (the “Company” or “Evans”) (NYSE MKT: 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, 2013.

SUMMARY OF THE 2013 FIRST QUARTER

 

   

First quarter net interest income of $6.8 million was comparable with the prior year period.

 

   

Provision for loan losses of $450 thousand is a return to a more normalized level after a $249 thousand release of provision in 2012.

 

   

First quarter net income was $1.8 million, or $0.43 per diluted share, compared with $2.4 million, or $0.58 per diluted share, in the first quarter of 2012.

 

   

The ratio of non-performing loans and leases to total loans and leases decreased from 2.09% to 1.37% year-over-year.

 

   

Total deposits increased $48.6 million, or 7.5%, over 2012 first quarter, driven by continued growth in savings and transactional deposits.

 

   

Strong capital position with Total Risk-Based Capital ratio of 15.28% at March 31, 2013.

Net income was $1.8 million in the first quarter of 2013, down 23.7% from net income of $2.4 million in the first quarter of 2012, primarily reflecting an increase in the provision for loan and lease losses. The prior-year period included a release of loan and lease loss reserves due to the continued improvement in the leasing portfolio’s credit quality. Overall, the provision for loan and lease losses increased $0.7 million from a release of $249 thousand in the first quarter of 2012 to a provision of $450 thousand in the first quarter of 2013. Return on average equity was 9.55% for the first quarter of 2013, compared with 13.59% in the first quarter of 2012.

“During the first quarter the bank grew at a slower pace than recent quarters, due mainly to loan payoffs and slower loan closings,” said David J. Nasca, Evans Bank President & CEO. “We did, however, attain higher loan and deposit balances while continuing to improve asset quality. Income comparisons to last year’s first quarter appear less favorable as provision for loan and lease losses returned to more normal levels. We continue to diversify and rebalance our loan portfolio with increased commercial and industrial and consumer loans and anticipate a healthier pace of growth in the second quarter as we have a strong loan pipeline and as business activity picks up.”

Net Interest Income

Net interest income was $6.8 million for the 2013 first quarter, flat when compared with the first quarter of 2012 and down 3.9% from the trailing fourth quarter of 2012.

The Company’s net interest margin decreased in the first quarter to 3.63%, compared with the 2012 fourth quarter net interest margin rate of 3.78%, and 2012 first quarter rate of 3.93%. When compared with last year’s first quarter, the Company has been able to partially offset the 57 basis point decrease in the yield on interest-earning assets through reduced pricing of its interest bearing liabilities by 34 basis points.

The provision for loan and lease losses in the first quarter of 2013 was $450 thousand. The prior-year period had a release of $249 thousand in provision, and the trailing fourth quarter of 2012 had a release of $129 thousand in provision.


Evans Bancorp Reports Net Income of $1.8 million for the 2013 First Quarter

April 24, 2013

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Non-Interest Income

Non-interest income remained steady at $3.3 million, or 32.7% of total revenue, in the first quarter of 2013, compared with the first quarter of 2012. Insurance agency revenue of $2.0 million was up $54 thousand, or 2.8%, from the 2012 first quarter, due mostly to increases in profit sharing and commercial lines revenue. Service charges on deposits increased 10.6% to $482 thousand from the prior-year period. Compared with the fourth quarter of 2012, total non-interest income remained flat, with an increase in insurance agency revenue offset by a decrease in other income. The increase in insurance agency revenue in the linked quarter is due to seasonal profit-sharing income, while the decrease in other income is driven by a decrease in income related to selling loans to Fannie Mae as the Company decided to retain more residential mortgage originations in portfolio.

Non-Interest Expense

Total non-interest expense was $7.1 million in the first quarter of 2013, an increase of 2.4% from $6.9 million in the first quarter of 2012. The main driver of the increase was occupancy costs, which were up $131 thousand, or 19.1%, compared with the first quarter of 2012. This was due mainly to a write-off of software which is no longer going to be utilized.

As a result, the Company’s first quarter efficiency ratio increased to 69.20% compared with 67.10% during the prior-year period.

Income tax expense for the quarter ended March 31, 2013, was $0.8 million, representing an effective tax rate of 30.4% compared with an effective tax rate of 31.7% in the first quarter of 2012.

Balance Sheet Highlights

Total assets grew to $823.7 million at March 31, 2013, up 6.2% from $775.8 million on March 31, 2012, and up 1.7% from $809.7 million at the end of the 2012 fourth quarter. Loans were $587.2 million at March 31, 2013, an increase of 2.1% from $575.2 million at March 31, 2012, and up 1.0% from $581.3 million at December 31, 2012.

Investment securities were $98.2 million at March 31, 2013, up 2.5% from $95.8 million at the end of the fourth quarter of 2012 and down 12.7% from $112.5 million as of the end of first quarter of 2012. Other assets increased $53.5 million over last year’s first quarter, the majority of which was in Fed Funds sold balances due to deposit growth outpacing loan growth.

Total deposits increased $48.6 million, or 7.5%, to $698.3 million at March 31, 2013, from $649.7 million at March 31, 2012, and grew $19.3 million, or 2.8%, from the 2012 year-end balance. The sequential quarter and year-over-year growth was attributable to deposit increases in both seasonal municipal and consumer products. The Company’s Better Checking product (included in the NOW category), along with its complementary Better Savings product, continues to be successful in acquiring new customers, deepening existing relationships and increasing fee income.

Asset Quality

Net charge-offs to average total loans and leases ratio were 0.02% for the first quarter of 2013, down from 0.32% in the first quarter of 2012 and down from 0.24% in the fourth quarter of 2012. The improved charge-off percentage remains below industry standards and reflects the Bank’s focus on maintaining strong credit fundamentals.

The ratio of non-performing loans and leases to total loans and leases improved to 1.37% at March 31, 2013, from 1.38% and 2.09% at December 31, 2012, and March 31, 2012, respectively. During the first quarter of 2013, there was a $0.2 million decrease in non-performing loans and leases due mainly to commercial loan charge-offs.

The ratio of the allowance for loan and lease losses to total loans and leases was 1.73% at


Evans Bancorp Reports Net Income of $1.8 million for the 2013 First Quarter

April 24, 2013

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March 31, 2013, compared with 1.67% at December 31, 2012, and 1.86% at the end of 2012 first quarter. The level of non-performing loans and leases decreased, resulting in an improved coverage ratio of 126.4% at March 31, 2013, compared with 118.3% at December 31, 2012 and 82.7% at March 31, 2012.

Gary A. Kajtoch, Executive Vice President and CFO commented, “Our nonperforming loans have continued to decline as a result of a concerted effort to manage credits that require attention. We will maintain rigorous credit standards as we strive for profitable growth in this intensely competitive marketplace.”

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the federal “well capitalized” standard, including a Tier 1 leverage ratio of 9.87% at March 31, 2013. Book value per share was $18.26 at March 31, 2013, compared with $17.94 at December 31, 2012, and $17.06 at March 31, 2012. Tangible book value per share at March 31, 2013 was $16.26, up 2.1% from the end of the fourth quarter of 2012 and up 8.7% from the first quarter 2012.

Outlook

Mr. Nasca concluded, “While the outlook for financial institutions continues to be challenging, we believe we can grow profitably by executing our newly updated strategic plan which focuses on structured relationship development and customer acquisition, enhanced fee-based income and refined risk management approaches. Evans seeks to deliver solutions based upon our intimate knowledge of customer needs, which differentiates us from regional and national banks. We expect this relationship-based approach will provide for market growth and increased shareholder value.”

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 $824 million in assets and $698 million in deposits at March 31, 2013. Evans is a full-service community bank, with 13 branches, providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. Evans Bancorp’s wholly-owned insurance subsidiary, The Evans Agency, LLC, provides property and casualty insurance through 7 insurance 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 Web sites, 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 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 Reports Net Income of $1.8 million for the 2013 First Quarter

April 24, 2013

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For more information contact:   -OR-
Gary A. Kajtoch   Deborah K. Pawlowski
Executive Vice President and Chief Financial Officer   Kei Advisors LLC
Phone: (716) 926-2000   Phone: (716) 843-3908
Email: gkajtoch@evansbank.com   Email: dpawlowski@keiadvisors.com

TABLES FOLLOW


Evans Bancorp Reports Net Income of $1.8 million for the 2013 First Quarter

April 24, 2013

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EVANS BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(in thousands except shares and per share data)

 

 
     3/31/2013     12/31/2012     9/30/2012     6/30/2012     3/31/2012  

ASSETS

          

Investment Securities

   $ 98,220      $ 95,807      $ 95,912      $ 96,802      $ 112,492   

Loans

     587,157        581,283        596,176        594,569        575,188   

Leases

     929        1,612        2,440        3,355        4,512   

Allowance for loan and lease losses

     (10,154     (9,732     (10,208     (10,658     (10,790

Goodwill and intangible assets

     8,367        8,429        8,492        8,569        8,675   

All other assets

     139,195        132,277        106,496        85,486        85,716   

Total assets

   $ 823,714      $ 809,676      $ 799,308      $ 778,122      $ 775,793   

LIABILITIES AND STOCKHOLDERS’ EQUITY

          

Demand deposits

   $ 123,084      $ 123,405      $ 126,251      $ 116,231      $ 114,423   

NOW deposits

     73,016        65,753        62,946        63,535        62,077   

Regular savings deposits

     391,739        380,924        375,859        365,875        363,552   

Time deposits

     110,461        108,910        107,674        108,279        109,629   

Total deposits

     698,300        678,992        672,730        653,920        649,681   

Borrowings

     37,113        42,441        39,411        40,185        42,010   

Other liabilities

     11,806        13,416        13,185        11,736        13,647   

Total stockholders’ equity

   $ 76,495      $ 74,827      $ 73,982      $ 72,281      $ 70,455   

SHARES AND CAPITAL RATIOS

          

Common shares outstanding

     4,190,257        4,171,473        4,151,985        4,153,332        4,128,905   

Book value per share

   $ 18.26      $ 17.94      $ 17.82      $ 17.40      $ 17.06   

Tangible book value per share

   $ 16.26      $ 15.92      $ 15.77      $ 15.34      $ 14.96   

Tier 1 leverage ratio

     9.87     9.69     9.71     9.77     9.74

Tier 1 risk-based capital ratio

     14.02     13.41     12.96     12.92     12.96

Total risk-based capital ratio

     15.28     14.67     14.22     14.18     14.22

ASSET QUALITY DATA

          

Total non-performing loans and leases

   $ 8,036      $ 8,229      $ 9,415      $ 11,008      $ 13,041   

Total net loan and lease charge-offs

     28        346        459        433        456   

Non-performing loans and leases/Total loans and leases

     1.37     1.38     1.53     1.77     2.09

Net loan and lease charge-offs/Average loans and leases

     0.02     0.24     0.31     0.30     0.32

Allowance for loans and leases to total loans and leases

     1.73     1.67     1.71     1.78     1.86


Evans Bancorp Reports Net Income of $1.8 million for the 2013 First Quarter

April 24, 2013

Page 6 of 7

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA (UNAUDITED)

(in thousands except share and per share data)

 

     2013     2012     2012     2012     2012  
     First Quarter     Fourth Quarter     Third Quarter     Second Quarter     First Quarter  

Interest income

   $ 7,956      $ 8,409      $ 8,309      $ 8,289      $ 8,369   

Interest expense

     1,130        1,309        1,364        1,408        1,516   

Net interest income

     6,826        7,100        6,945        6,881        6,853   

Provision for loan and lease losses

     450        (129     9        301        (249

Net interest income after provision

     6,376        7,229        6,936        6,580        7,102   

Deposit service charges

     482        498        487        437        436   

Insurance service and fee revenue

     1,999        1,604        1774        1,643        1,945   

Bank-owned life insurance

     113        120        118        134        117   

Other income

     716        1,060        837        824        790   

Total non-interest income

     3,310        3,282        3,216        3,038        3,288   

Salaries and employee benefits

     4,289        4,083        4,778        4,229        4,214   

Occupancy

     816        776        679        645        685   

Repairs and maintenance

     178        213        210        177        169   

Advertising and public relations

     124        214        119        336        145   

Professional services

     454        463        356        567        539   

Technology and communications

     291        337        320        276        263   

Amortization of intangibles

     62        63        77        105        104   

FDIC insurance

     138        130        118        139        134   

Other expenses

     724        926        699        848        656   

Total non-interest expenses

     7,076        7,204        7,356        7,323        6,909   

Income before income taxes

     2,610        3,307        2,796        2,295        3,481   

Income tax provision

     794        1,185        660        800        1,102   

Net income

   $ 1,816      $ 2,122      $ 2,136      $ 1,495      $ 2,379   

PER SHARE DATA

          

Net income per common share-diluted

   $ 0.43      $ 0.51      $ 0.51      $ 0.36      $ 0.58   

Cash dividends per common share

   $ 0.00      $ 0.24      $ 0.22      $ 0.00      $ 0.22   

Weighted average number of diluted shares

     4,210,595        4,180,578        4,177,567        4,156,868        4,131,330   

PERFORMANCE RATIOS

          

Return on average total assets

     0.89     1.05     1.07     0.77     1.26

Return on average stockholders’ equity

     9.55     11.33     11.60     8.33     13.59

Efficiency ratio

     69.20     68.78     71.64     72.75     67.10


Evans Bancorp Reports Net Income of $1.8 million for the 2013 First Quarter

April 24, 2013

Page 7 of 7

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)

(in thousands)

 

 
     2013     2012     2012     2012     2012  
     First Quarter     Fourth Quarter     Third Quarter     Second Quarter     First Quarter  

AVERAGE BALANCES

          

(dollars in thousands)

          

Loans and leases, net

   $  575,953      $  585,453      $  590,200      $  574,639      $ 568,863   

Investment securities

     98,120        101,135        99,347        101,053        105,339   

Interest bearing deposits at banks

     78,426        63,797        48,619        39,198        23,271   

Total interest-earning assets

     752,499        750,385        738,166        714,890        697,473   

Non interest-earning assets

     61,314        58,617        57,776        58,261        58,607   

Total Assets

   $ 813,813      $ 809,002      $ 795,942      $ 773,151      $ 756,080   

NOW

   $ 67,836      $ 62,245      $ 62,283      $ 60,472      $ 55,116   

Regular savings

     359,434        355,327        352,378        336,798        326,090   

Muni-Vest savings

     21,348        28,991        21,792        26,821        22,076   

Time deposits

     110,209        108,447        108,179        109,170        112,079   

Total interest-bearing deposits

     558,827        555,010        544,632        533,261        515,361   

Other borrowings

     43,693        41,948        39,883        40,619        42,512   

Total interest-bearing liabilities

     602,520        596,958        584,515        573,880        557,873   

Demand deposits

     122,359        124,741        124,590        115,033        114,783   

Other non-interest bearing liabilities

     12,857        12,408        13,186        12,471        13,418   

Stockholders’ equity

     76,077        74,895        73,651        71,766        70,006   

Total Liabilities and Equity

   $ 813,813      $ 809,002      $ 795,942      $ 773,151      $ 756,080   

YIELD/RATE

          

Loans and leases, net

     5.04     5.26     5.13     5.23     5.28

Investment securities

     2.80     2.74     2.93     2.98     3.23

Interest bearing deposits at banks

     0.09     0.09     0.12     0.15     0.15

Total interest-earning assets

     4.23     4.48     4.50     4.64     4.80

NOW

     0.67     1.05     1.03     0.99     1.01

Regular savings

     0.35     0.46     0.54     0.57     0.69

Muni-Vest savings

     0.28     0.30     0.29     0.30     0.38

Time deposits

     1.63     1.70     1.67     1.80     1.85

Total interest-bearing deposits

     0.64     0.76     0.81     0.86     0.96

Other borrowings

     2.20     2.45     2.59     2.58     2.58

Total interest-bearing liabilities

     0.75     0.88     0.93     0.98     1.09

Interest rate spread

     3.48     3.60     3.57     3.66     3.71

Contribution of interest-free funds

     0.15     0.18     0.19     0.19     0.22

Net interest margin

     3.63     3.78     3.76     3.85     3.93