Evans Bancorp Reports Net Income of $6.0 Million in Fourth Quarter 2020

Rhea-AI Summary

Evans Bancorp, Inc. (NYSE American: EVBN) reported its Q4 2020 results, showcasing a 28% increase in net interest income to $16.4 million, attributed to the acquisition of Fairport Savings Bank and Paycheck Protection Program fees. Net income increased to $6.0 million, or $1.11 per share. However, full-year net income dropped to $11.2 million from $17.0 million in 2019, largely due to higher loan loss provisions amid pandemic challenges. Total assets rose 40% year-over-year, while total deposits increased 40% as well, reflecting ongoing community support.

Positive

• Net interest income rose by 28% to $16.4 million in Q4 2020.
• Net income for Q4 2020 was $6.0 million, up from $4.5 million in Q3 2020.
• Total assets increased 40% year-over-year to $2.04 billion.
• Total deposits grew 40% year-over-year to $1.77 billion.
• Successful integration of Fairport Savings Bank and other acquisitions.

Negative

• Full-year net income decreased from $17.0 million in 2019 to $11.2 million.
• Incurred $6 million in one-time merger-related expenses.
• Increased provision for loan losses, totaling $5.4 million for 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 fourth quarter and full year ended December 31, 2020. Results include the acquisition of Fairport Savings Bank, effective May 1, 2020.

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

• Net interest income increased 28% to $16.4 million reflecting the Fairport Savings Bank (“FSB”) acquisition and fees earned in connection with Paycheck Protection Program (“PPP”)
• Results included a $0.1 million provision for loan loss release and $0.7 million gain on the sale of the previous administrative headquarters building
• Significant loan and deposit growth quarter-over-quarter, reflecting solid execution of long-term strategy

“I am proud of what the team achieved in 2020. It was a year of monumental upheaval that tested the fortitude and resiliency of all. We responded rapidly to support the people and businesses in our region and help them navigate the many challenges presented by the pandemic. This was accomplished while adjusting quickly to a new work environment and the many changes that presented. Importantly, we continued to demonstrate one of Evan’s Core Values of Valuing Others,” said David J. Nasca, President and CEO of Evans Bancorp, Inc.

He continued, “The execution of our strategy occurred where we were able, and flexibility was demonstrated where execution was hampered by the environment. This supported a focused effort to position our company for long-term growth and success. This was evidenced by significant participation in the PPP program, which added almost 1,000 new commercial customers and more than $200 million of loans. Of equal importance was the expansion of our franchise in the Western New York market with the Benefits Brokers of WNY and Fairport Savings Bank acquisitions. Systems and customer accounts were successfully integrated from these combinations during a most unprecedented operating environment. Additionally, there are positive signs of recovery in our markets. We released $126 thousand of loan loss provision in the quarter based on improving economic indicators, successfully closed on the sale of our former administration building and saw net interest income increase 28% over the prior-year fourth quarter.”

He added, “Looking toward the new year, even as our world continues to operate in a drastically altered environment, we are enthused about the opportunities ahead. We are optimistic that the pockets of recovery within our markets will continue to strengthen and the building developments with vaccinations can return the country to a more normal state. Regardless of the challenges, our commitment to community engagement will not waver, from community development lending, direct investments to drive progress in underserved areas, social justice and equity or partnering with local schools to improve educational opportunity. These actions are engrained in our culture, set us apart and serve as a compass to drive our efforts.”

Net income was $6.0 million, or $1.11 per diluted share, in the fourth quarter of 2020, compared with $4.5 million, or $0.84 per diluted share, in the third quarter of 2020 and $3.7 million, or $0.75 per diluted share, in last year’s fourth quarter. The Company’s fourth quarter 2020 results included a $0.1 million release of provision for loan loss primarily reflecting adjustment for improvement in macroeconomic indicators such as decreases in unemployment from the beginning of the pandemic. The fourth quarter of 2020 also included higher net interest income, in part, due to fees earned in connection with PPP and the recognition of a $0.7 million gain on the sale of the Company’s previous administrative headquarters building. Return on average equity was 14.51% for the fourth quarter of 2020, compared with 11.09% in the third quarter of 2020 and 10.16% in the fourth quarter of 2019.

For the full year 2020, net income was $11.2 million, or $2.13 per diluted share, down from $17.0 million, or $3.42 per diluted share, in 2019. The decrease reflected higher loan loss provision as the Company responded to the economic uncertainty from the COVID-19 pandemic and incurred $6 million of one-time merger related expenses reflecting the acquisition of FSB. The return on average equity was 7.06% for 2020 compared with 12.08% in 2019.

Net Interest Income
($ in thousands)
		4Q 2020				3Q 2020				4Q 2019
Interest income		$	18,175			$	17,766			$	16,028
Interest expense			1,744				2,124				3,236
Net interest income			16,431				15,642				12,792
Provision for loan losses (credit)			(126)				1,881				(122)
Net interest income after provision		$	16,557			$	13,761			$	12,914

Net interest income increased $0.8 million, or 5%, from the third quarter of 2020, and $3.6 million, or 28%, from the prior-year fourth quarter. The increase from the sequential third quarter reflects the acceleration of the amortization of PPP loan fees, as the Company recognized the first of its PPP loans to be forgiven by the Federal Government. As the loans are forgiven the Company is accelerating the recognition of the fees that were being amortized over the original life of the loan. As a result, Evans recognized an additional $0.4 million in interest income due to this acceleration. The increase over last year’s fourth quarter was primarily driven by higher average interest-earning assets as the Company recognized the impact of the FSB acquisition and PPP lending.

Fourth quarter net interest margin of 3.38% increased 19 basis points from the third quarter of 2020, reflecting the accelerated PPP fee amortization and reduced interest expense as the Company continues to align rates on deposits. Net interest margin was down 29 basis points from the fourth quarter of 2019, largely due to the Federal Reserve’s decrease of the fed funds rate by 150 basis points early in 2020, and changes in the mix of interest-earning assets, including greater interest earning cash balances, PPP loans and residential mortgages from FSB. The yield on loans increased 8 basis points when compared with the third quarter of 2020 and decreased 83 basis points when compared with the fourth quarter of 2019. The cost of interest-bearing liabilities decreased to 0.49% compared with 0.59% in the third quarter of 2020 and 1.24% in the fourth quarter of 2019.

The Company continues to evaluate its loan portfolio in response to the economic impact of the COVID-19 pandemic. As part of the Company’s evaluation, provision for loan losses can be adjusted for the impact that economic trends, such as unemployment, will have on our clients. The $0.1 million release of provision for loan losses in the fourth quarter of 2020 reflects the response to current positive macroeconomic trends. 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)
		4Q 2020				3Q 2020				4Q 2019
Total non-performing loans		$	28,118			$	21,466			$	14,396
Total net loan charge-offs			60				34				85
Non-performing loans / Total loans			1.66	%			1.26	%			1.17	%
Net loan charge-offs / Average loans			0.01	%			0.01	%			0.03	%
Allowance for loan losses / Total loans			1.21	%			1.21	%			1.24	%

During the third quarter of 2020, the Company classified the loans to clients within the hotel industry as criticized, where further assistance is required given their level of seasonality and ongoing challenges during the COVID-19 pandemic. At year-end, criticized assets totaled $139.6 million, with the hotel portfolio comprising 58% of that amount. The Company continues to monitor each client in that industry including on-going conversations with the borrowers. The $6.7 million increase in non-performing assets during the fourth quarter reflects two hotel borrowers that have longer-term implications beyond typical seasonality performance.

“As expected, during the fourth quarter the remaining $8.0 million of loan deferrals moved back to normal status. Our focus has been on the hotel portfolio, and while the majority continue to pay either interest only or full principal and interest, as part of our ongoing reviews we did identify two credits that will have longer-term stresses, and as a result moved them to non-performing status,” stated John Connerton, Chief Financial Officer of Evans Bank. “The hotel portfolio continues to be well-collateralized with an average loan to value of 67%, and we believe that we are appropriately reserved for any near-term economic uncertainty.”

Non-Interest Income
($ in thousands)
		4Q 2020				3Q 2020				4Q 2019
Deposit service charges		$	619			$	598			$	747
Insurance service and fee revenue			2,301				3,217				2,120
Bank-owned life insurance			172				170				164
Loss on tax credit investment			-				-				(158)
Refundable NY state historic tax credit			-				-				115
Gain on sale of securities			-				667				-
Other income			1,711				1,205				1,005
Total non-interest income		$	4,803			$	5,857			$	3,993

The decrease in insurance service and fee revenue from the third quarter of 2020 reflects typical seasonally lower commercial lines insurance commissions.

The third quarter of 2020 included approximately $0.7 million of gain on sale of investment securities, while there were no comparable gains in the current quarter of 2020 and fourth quarter of 2019.

The increase in other income was largely due to a gain of $0.7 million recognized on the sale of the Company’s former administrative headquarters in the fourth quarter 2020.

Non-Interest Expense
($ in thousands)
		4Q 2020				3Q 2020				4Q 2019
Salaries and employee benefits		$	9,087			$	8,101			$	7,355
Occupancy			1,169				1,204				868
Advertising and public relations			233				503				421
Professional services			893				865				827
Technology and communications			1,306				1,365				1,075
Amortization of intangibles			133				136				112
FDIC insurance			339				290				74
Merger-related expenses			-				524				232
Other expenses			1,350				1,480				1,207
Total non-interest expenses		$	14,510			$	14,468			$	12,171

Salaries and benefits costs increased from the third quarter of 2020 due to adjustments for incentive accruals, as the Company adjusted calculated incentives to recognize the contributions of associates during this historically challenged year. The increase from the prior-year period was largely due to the addition of personnel related to the FSB acquisition.

Advertising expenses decreased as the Company had increased spending in the previous quarters to highlight new promotional campaigns, particularly those in the Company’s expanded Rochester market.

The increase in technology and communications from the prior-year period was due to higher online banking activity, ATM card fees, and software costs primarily as a result of the FSB acquisition.

The higher level of FDIC insurance expense reflects the benefit of the FDIC’s small bank assessment credit, which was taken in the 2019 fourth quarter.

There were no merger-related expenses in the fourth quarter of 2020 compared with costs relating to the FSB core system conversion during the third quarter of 2020, and legal and other professional services related to the initiation of the merger in the fourth quarter of 2019.

The Company’s GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 68.3% in the fourth quarter of 2020, 67.3% in the third quarter of 2020, and 72.5% in the fourth quarter of 2019. The Company’s non-GAAP efficiency ratio, excluding amortization expense, gains and losses from investment securities, and merger-related expenses, was 67.7% compared with 66.3% in the third quarter of 2020 and 70.3% in last year’s fourth quarter.

Income tax expense was $0.8 million, or an effective tax rate of 12.0%, for the fourth quarter of 2020 compared with 11.8% in the third quarter of 2020 and 20.9% in last year’s fourth quarter. Excluding the impact of the first quarter 2020 historic tax credit transaction, the effective tax rate was 22.1% and 25.6% in the fourth and third quarters of 2020, respectively.

Balance Sheet Highlights

Total assets were down slightly at $2.04 billion as of December 31, 2020, compared with $2.06 billion at September 30, 2020, but increased 40% from $1.46 billion at December 31, 2019. The year-over-year increase reflects the addition of $323 million of assets, including $271 million of loans, from the FSB acquisition and the Company’s loan growth over the last year, including the origination $203 million of PPP loans.

Investment securities were $167 million at December 31, 2020, $6 million higher than the end of the third quarter of 2020, and $36 million higher than at the end of last year’s fourth quarter. The Company added $21 million of securities from FSB during the second quarter of 2020, and subsequently sold $23 million of securities during the third 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 of $1.77 billion declined $10 million, or 1%, from September 30, 2020, but were up $504 million, or 40%, from the end of last year’s fourth quarter. The increase from the prior year reflects $239 million of deposits from FSB and an accumulation of liquidity by commercial customers in response to the pandemic, including deposits related to PPP loans, and increases in consumer deposits from government stimulus payments and lower consumer spending. The slight decrease from the sequential third quarter largely reflects seasonally lower municipal deposits.

Capital Management

The Company has consistently maintained regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 8.21% at December 31, 2020 compared with 7.82% at September 30, 2020 and 10.33% at December 31, 2019. Book value per share was $31.21 at December 31, 2020 compared with $30.29 at September 30, 2020 and $30.11 at December 31, 2019.

For the full year of 2020, cash dividends totaled $1.16, up 12% over 2019.

2020 Year in Review (compared with prior-year period)

Net interest income was $59.8 million, up 15%, primarily due to the growth of interest earning assets from the loans acquired in the FSB acquisition and the origination of PPP loans. However, the increase was muted by both low commercial loan growth and net interest margin compression. Net interest margin was 3.37%, a decrease of 45 basis points, which largely reflects the Federal Reserve’s decrease of the fed funds rate by 150 basis points early in 2020, and changes in the mix of interest-earning assets, including greater interest earning cash balances, PPP loans and residential mortgages from FSB.

The Company’s provision for loan losses of $5.4 million was up significantly from $75 thousand due to the impacts on the economy from the COVID-19 pandemic. A decrease in asset quality resulted from the elevated risk associated with the hotel portfolio, which increased the Company’s criticized loans. The ratio of non-performing loans to total loans was 1.66% compared with 1.17%.

Non-interest income was up $0.2 million at $18.2 million. The Company had a net loss of $0.6 million as a result of the recognition of a historic tax credit transaction. Additionally, deposit service charges were down $0.3 million due to certain fees that had been temporarily suspended during the second quarter of 2020 to assist customers affected by COVID-19. These decreases were offset by gains on sale of investment securities and the sale of the previous administrative headquarters.

Non-interest expense increased $12 million, or 25%, to $59.9 million. The Company had merger-related expense in connection with the acquisition of FSB of $6.0 million. Additionally, higher salaries and employee benefits of $3.4 million, or 11%, due to the addition of new employees from FSB and merit increases. Occupancy expense was up $0.9 million also reflecting the addition of FSB. Technology expenses were up 27%, or $1.1 million, to $5.2 million largely due to increased software costs, volume related ATM card fees and online banking activity, primarily as a result of the FSB acquisition and COVID-19 impact. FDIC insurance expense increased $0.7 million, as a result of growth in assets and the reduction of prior year expenses due to the application of the FDIC’s small bank assessment credit, which was not applicable in 2020.

The Company’s GAAP efficiency ratio was 76.7% in 2020 compared with 68.2% in 2019, and the non-GAAP efficiency ratio, as previously defined, was 68.5% compared with 67.2%.

Income tax expense for the year was $1.6 million, representing an effective tax rate of 12.2% compared with an effective tax rate of 23.5% in 2019. Excluding the impact of the historic tax credit transactions, the effective tax rate was 23.9% in 2020.

Webcast and Conference Call

The Company will host a conference call and webcast on Thursday, February 4, 2021 at 4:45 p.m. ET. Management will review the financial and operating results for the fourth 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 Thursday, February 11, 2021. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13714792, 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 $2.0 billion in assets and $1.8 billion in deposits at December 31, 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.

EVANS BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(in thousands, except shares and per share data)
		12/31/2020				9/30/2020				6/30/2020				3/31/2020				12/31/2019
ASSETS
Interest-bearing deposits at banks		$	83,902			$	88,249			$	109,943			$	40,706			$	28,280
Investment Securities			166,600				160,757				169,975				162,038				130,308
Loans			1,693,794				1,703,076				1,685,761				1,246,206				1,226,531
Allowance for loan losses			(20,415)				(20,601)				(18,754)				(18,157)				(15,175)
Goodwill and intangible assets			14,951				15,085				15,222				13,421				12,545
All other assets			105,283				110,427				103,793				80,597				77,741
Total assets		$	2,044,115			$	2,056,993			$	2,065,940			$	1,524,811			$	1,460,230
LIABILITIES AND STOCKHOLDERS'
EQUITY
Demand deposits			436,157				442,536				428,655				273,623				263,717
NOW deposits			230,751				215,492				229,788				159,223				140,654
Savings deposits			825,947				799,739				794,513				625,773				587,142
Time deposits			278,554				323,211				356,147				268,978				275,927
Total deposits			1,771,409				1,780,978				1,809,103				1,327,597				1,267,440
Borrowings			79,663				82,909				67,715				23,902				23,755
Other liabilities			24,138				30,218				27,124				25,216				20,582
Total stockholders' equity			168,905				162,888				161,998				148,096				148,453
SHARES AND CAPITAL RATIOS
Common shares outstanding			5,411,384				5,376,742				5,376,872				4,942,802				4,929,593
Book value per share		$	31.21			$	30.29			$	30.13			$	29.96			$	30.11
Tier 1 leverage ratio			8.21	%			7.82	%			8.44	%			9.92	%			10.33	%
Tier 1 risk-based capital ratio			11.62	%			11.28	%			11.14	%			11.84	%			12.32	%
Total risk-based capital ratio			12.88	%			12.53	%			12.39	%			13.09	%			13.56	%
ASSET QUALITY DATA
Total non-performing loans		$	28,118			$	21,466			$	19,718			$	16,717			$	14,396
Total net loan charge-offs			60				34				-				17				85
Non-performing loans/Total loans			1.66	%			1.26	%			1.17	%			1.34	%			1.17	%
Net loan charge-offs /Average loans			0.01	%			0.01	%			-	%			0.01	%			0.03	%
Allowance for loans losses/Total loans			1.21	%			1.21	%			1.11	%			1.46	%			1.24	%

EVANS BANCORP, INC AND SUBSIDIARIES
SELECTED OPERATIONS DATA (UNAUDITED)
(in thousands, except share and per share data)
		2020				2020				2020				2020				2019
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Interest income		$	18,175			$	17,766			$	17,069			$	15,823			$	16,028
Interest expense			1,744				2,124				2,136				3,047				3,236
Net interest income			16,431				15,642				14,933				12,776				12,792
Provision (credit) for loan losses			(126)				1,881				597				2,999				(122)
Net interest income after provision			16,557				13,761				14,336				9,777				12,914
Deposit service charges			619				598				397				628				747
Insurance service and fee revenue			2,301				3,217				2,667				2,425				2,120
Bank-owned life insurance			172				170				178				160				164
Loss on tax credit investment			-				-				-				(2,475)				(158)
Refundable NY state historic tax credit			-				-				-				1,857				115
Gain on sale of securities			-				667				-				-				-
Other income			1,711				1,205				997				743				1,005
Total non-interest income			4,803				5,857				4,239				3,338				3,993
Salaries and employee benefits			9,087				8,101				8,005				7,797				7,355
Occupancy			1,169				1,204				1,062				861				868
Advertising and public relations			233				503				123				269				421
Professional services			893				865				872				914				827
Technology and communications			1,306				1,365				1,467				1,096				1,075
Amortization of intangibles			133				136				134				130				112
FDIC insurance			339				290				282				179				74
Merger-related expenses			-				524				4,974				460				232
Other expenses			1,350				1,480				1,093				1,164				1,207
Total non-interest expenses			14,510				14,468				18,012				12,870				12,171
Income before income taxes			6,850				5,150				563				245				4,736
Income tax provision			821				606				94				41				988
Net income			6,029				4,544				469				204				3,748
PER SHARE DATA
Net income per common share-diluted		$	1.11			$	0.84			$	0.09			$	0.04			$	0.75
Cash dividends per common share		$	-			$	0.58			$	-			$	0.58			$	-
Weighted average number of diluted shares			5,416,198				5,395,806				5,243,581				4,992,214				4,990,863
PERFORMANCE RATIOS
Return on average total assets			1.18	%			0.88	%			0.10	%			0.05	%			1.02	%
Return on average stockholders' equity			14.51	%			11.09	%			1.19	%			0.55	%			10.16	%
Efficiency ratio			68.33	%			67.30	%			93.95	%			79.87	%			72.51	%
Efficiency ratio (Non-GAAP)*			67.71	%			66.28	%			67.30	%			73.39	%			70.28	%
* 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				2020				2020				2020				2019
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
AVERAGE BALANCES
Loans, net		$	1,677,502			$	1,671,338			$	1,535,206			$	1,219,230			$	1,213,837
Investment securities			162,941				172,712				179,677				136,029				137,354
Interest-bearing deposits at banks			92,974				106,154				73,973				57,319				32,061
Total interest-earning assets			1,933,417				1,950,204				1,788,856				1,412,578				1,383,252
Non interest-earning assets			117,458				117,244				107,738				89,804				89,415
Total Assets		$	2,050,875			$	2,067,448			$	1,896,594			$	1,502,382			$	1,472,667
NOW			218,587				221,343				203,458				144,564				136,077
Savings			818,878				799,082				721,578				605,103				593,694
Time deposits			300,605				337,967				337,187				274,576				274,856
Total interest-bearing deposits			1,338,070				1,358,392				1,262,223				1,024,243				1,004,627
Borrowings			80,814				84,926				51,493				24,708				27,241
Total interest-bearing liabilities			1,418,884				1,443,318				1,313,716				1,048,951				1,031,868
Demand deposits			439,953				430,658				399,807				281,624				272,834
Other non-interest bearing liabilities			25,882				29,644				25,540				22,127				20,375
Stockholders' equity			166,156				163,828				157,531				149,680				147,590
Total Liabilities and Equity		$	2,050,875			$	2,067,448			$	1,896,594			$	1,502,382			$	1,472,667
YIELD/RATE
Loans, net			4.09	%			4.01	%			4.22	%			4.80	%			4.92	%
Investment securities			2.18	%			2.06	%			2.12	%			3.24	%			2.46	%
Interest-bearing deposits at banks			0.10	%			0.10	%			0.08	%			1.27	%			1.65	%
Total interest-earning assets			3.74	%			3.62	%			3.84	%			4.51	%			4.61	%
NOW			0.15	%			0.19	%			0.24	%			0.50	%			0.57	%
Savings			0.24	%			0.33	%			0.37	%			0.87	%			0.94	%
Time deposits			0.90	%			1.04	%			1.40	%			2.02	%			2.09	%
Total interest-bearing deposits			0.37	%			0.48	%			0.62	%			1.13	%			1.21	%
Borrowings			2.43	%			2.26	%			1.41	%			2.78	%			2.64	%
Total interest-bearing liabilities			0.49	%			0.59	%			0.65	%			1.17	%			1.24	%
Interest rate spread			3.25	%			3.03	%			3.19	%			3.34	%			3.36	%
Contribution of interest-free funds			0.13	%			0.16	%			0.17	%			0.30	%			0.31	%
Net interest margin			3.38	%			3.19	%			3.36	%			3.64	%			3.67	%

EVANS BANCORP, INC AND SUBSIDIARIES
SELECTED OPERATIONS DATA (UNAUDITED)
(in thousands, except share and per share data)
		2020			2019
		Year to Date			Year to Date			% Change
Interest income		$	68,833		$	64,740		6	%
Interest expense			9,051			12,685		(29)	%
Net interest income			59,782			52,055		15	%
Provision for loan losses			5,351			75		7,035	%
Net interest income after provision			54,431			51,980		5	%
Deposit service charges			2,242			2,569		(13)	%
Insurance service and fee revenue			10,610			10,688		(1)	%
Bank-owned life insurance			680			656		4	%
Loss on tax credit investment			(2,475)			(158)		1,466	%
Refundable NY state historic tax credit			1,857			115		1,515	%
Gain on sale of securities			667			-		-	%
Other income			4,656			4,212		11	%
Total non-interest income			18,237			18,082		1	%
Salaries and employee benefits			32,990			29,628		11	%
Occupancy			4,296			3,429		25	%
Advertising and public relations			1,128			1,033		9	%
Professional services			3,544			3,510		1	%
Technology and communications			5,234			4,124		27	%
FDIC insurance			1,090			431		153	%
Amortization of intangibles			533			448		19	%
Merger-related expenses			5,958			232		2,468	%
Other expenses			5,087			4,985		2	%
Total non-interest expenses			59,860			47,820		25	%
Income before income taxes			12,808			22,242		(42)	%
Income tax provision			1,562			5,228		(70)	%
Net income			11,246			17,014		(34)	%
PER SHARE DATA
Net income per common share-diluted		$	2.13		$	3.42		(38)	%
Cash dividends per common share		$	1.16		$	1.04		12	%
Weighted average number of diluted shares			5,268,560			4,968,172
PERFORMANCE RATIOS
Return on average total assets			0.60	%		1.17	%
Return on average stockholders' equity			7.06	%		12.08	%
Efficiency ratio			76.72	%		68.18	%
Efficiency ratio (Non-GAAP)*			68.45	%		67.21	%
Net interest margin			3.37	%		3.82	%
Net loan charge-offs (recoveries)/Average loans			0.01	%		(0.03)	%
* 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.

 

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FAQ

What were Evans Bancorp's Q4 2020 net income results?

Evans Bancorp reported a net income of $6.0 million, or $1.11 per diluted share, in Q4 2020.

How much did net interest income increase for Evans Bancorp in Q4 2020?

Net interest income increased by 28% to $16.4 million in Q4 2020.

What was the impact of the Fairport Savings Bank acquisition on Evans Bancorp?

The acquisition contributed significantly to the increase in net interest income and total assets.

What were the total assets for Evans Bancorp at the end of 2020?

Total assets for Evans Bancorp were $2.04 billion as of December 31, 2020.

What were the total deposits for Evans Bancorp in 2020?

Total deposits increased by 40% year-over-year to $1.77 billion at the end of 2020.

What challenges did Evans Bancorp face in 2020?

The company faced challenges due to the COVID-19 pandemic, resulting in higher loan loss provisions.