UNITED STATES
SEC URITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

cto

 

 



 

 

Date of Report (Da te of Earliest Event Reported):

   

July 2 6 , 201 6



Evans Bancorp, Inc .  
_________________________________________ _  
(Exact name of registra nt as specified in its charter)



 

 



 

 

New York

0-18539

161332767

___________________ __
(State or other jurisdiction

_____________
(Commission

______________
(I.R.S. Employer

of incorporation)

File Number)

Identification No.)



 

 



 

 

One Grimsby Drive, Hamburg, New York

 

14075

_________________________________
(Address of principal executive offices)

 

___________
(Zip Code)





 

 



 

 

Registrant’s telepho ne number, including area code:

 

716-926-2000



Not Applicable
______________________________________________
Former name or former address, if changed since last report



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under a ny of the following provisions:

[  ]    W ritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425 )  
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12 )  
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 

Item 2.02 Results of Operations and Financial Condition.



On July 28 , 201 6 , Evans Bancorp, Inc. (“the Company”) issued a press release setting forth its results of operations and financial condition for the second quarter of 201 6 .     A c op y of th at   press release is attached hereto as Exhibit 99.1 .



Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.



On July 26, 2016, the Company revised the Evans Bancorp Inc., Executive Severance Plan, which provides certain executives (“Participants”), including Robert G. Miller, Jr. Executive Vice President of Evans Bank, President of The Evans Agency, and Secretary of Evans Bancorp, and John B. Connerton, Executive Vice President and Chief Financial Officer of Evans Bank and Treasurer of Evans Bancorp, with severance pay if their employment is involuntarily terminated without cause.  The severance pay equals the Participant’s base salary, determined as of the date of termination, for twelve (12) months, plus the Participant’s short term incentive amount at the target level pro-rated for the time during the year in which the Participant was actively employed by the Company.  In addition, for a twelve (12)-month period following the termination of employment, Evans will reimburse the Participant for outplacement services in an amount not to exceed $5,000.  The benefits will be reduced to the extent to avoid treatment as a "golden parachute payment" under Section 280G of the Internal Revenue Code of 1986, as amended.   Executives who receive such severance benefits will be subject to customary non-compete, non-solicitation, and confidentiality provisions for one year following their termination of employment and are required to sign a general release of all claims against the Company in order to receive the severance benefits.

The foregoing description of the Executive Severance Plan is qualified in its entirety by reference to the plan document attached hereto as Exhibit 10.1, of this Current Report, which is incorporated by reference into this Item 5.02





Item 9.01 Financial Statements and Exhibits.



(d) Exhibits

Exhibit 10.1 – Evans Bancorp, Inc. Executive Severance Plan

Exhibit 99.1 – Press Release of Evans Bancorp, Inc. dated July 28 , 2016

























The information in Item 2.02 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.  Neither the filing or furnishing of any exhibit to this report nor the inclusion in such exhibits of a reference to the Company’s Internet address shall, under any circumstances, be deemed to incorporate the information available at such address into this report.  Information available at the Company’s Internet address is not part of this report.

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the unders igned hereunto duly authorized.





 

 

 

 



 

 

   

 



 

Evans Bancorp, Inc.



 

 

   

 

July 2 9 , 201 6

 

By:

   

/s/ David J. Nasca



 

 

   




 

 

   

Name: David J. Nasca



 

 

   

Title: Presid ent and Chief Executive Officer





 

 


 

Exhibit Index





 

Exhibit No.

Description

10.1

Evans Bancorp, Inc. Executive Severance Plan

99.1

Press Release of Evans Bancorp, Inc. dated July 28 , 201 6



 

 


EVANS BANCORP, INC.

EXECUTIVE SEVERANCE PLAN



Article I.
ESTABLISHMENT OF THE PLAN

Evans Bancorp , Inc. (“ Evans ”) hereby establishes this Evans Bancorp, Inc. Executive Severance Plan (the “Plan”), which is a self-insured severance plan for certain of its key executive management personnel.  The term “Company” means Evans and any Organization Under Common Control that is covered under the Plan in accordance with Section 5.6 , including Evans Bank, N.A. (“Bank”) .   The effective date of the Plan is April 1, 2012 (the “Effective Date”) , revised on July 26 , 2016 .   The Plan Year is the calendar year.



Article II.
PARTICIPATION

Section 2.1. Eligible Executives .  Each Eligible Executive, as hereafter defined, will become a Participant in the Plan on the later of: (i) the first day on which the individual becomes an Eligible Executive; or (ii) the Effective Date. The term “Eligible Executive” means any employee of the Company who has been designated by the Chief Executive Officer of Evans   eligible to participate in this Plan , and as of July 26 , 2016, the Eligible Employees designated by the Chief Executive Officer are: John Connerton and Robert G . Miller , Jr .     If any employee becomes a Participant and subsequently has an event occur that triggers an employment or change in control agreement to provide payment for severance or other similar post-employment compensation, the employee will cease to be a Participant as of that date.

Section 2.2. Exclusive Benefit .  A Participant in this Plan will not be eligible to receive any other benefit under the terms of the Evans   Bancorp, Inc. Separation Pay Plan.

Article III.
BENEFITS AND PAYMENT OF BENEFITS

Section 3.1. In General .  Each Participant (i) whose employment is involuntarily terminated by the Company for reasons other than Cause, as hereafter defined ; or (ii) who is required to move employment to a location further than 35 miles of the Participant’s current place of employment and who does not accept such relocation and terminates employment ; or (iii) whose aggregate compensation is materially reduced by 25% or more and who terminates employment ,   will receive a Severance Payment, as determined under Section 3.2, if the Participant remains in employment with the Company through his or her release date as established by the Company.

(a) For purposes of this Plan, termination for “Cause” shall include termination because of the Executive’s personal dishonesty, incompetence, insubordination, willful misconduct, breach of fiduciary duty involving personal profit, material breach of the Code of

-   1  –

 

 

 


 

Ethics of either the Bank or the Company, material violation of the Sarbanes-Oxley requirements for officers of public companies that in the reasonable opinion of the Board will likely cause substantial financial harm or substantial injury to the reputation of the Company or the Bank, willfully engaging in actions that in the reasonable opinion of the Board will likely cause substantial financial harm or substantial injury to the business reputation of the Company or the Bank, failure to perform stated duties after receiving written notice of Executive’s failure to perform assigned duties, willful violation of any law, rule or regulation (other than routine traffic violations or similar offenses) or final cease-and-desist order .



N o act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Employer.  Any act, or failure to act, based upon the direction of the Board or based upon the advice of counsel for the Employer shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Employer.



(b) Upon the occurrence of any event described in Section 3.1(ii) or (iii) above, the Participant shall have the right to elect to terminate his employment by resignation upon not less than thirty (30) days prior written notice to Evans , which notice must be given by the Participant within ninety (90) days after the initial event giving rise to said right to elect to terminate his employment.  Notwithstanding the preceding sentence, in the event of a continuing breach by Evans , the Participant, after giving due notice within the prescribed time frame of an initial event specified above, shall not waive any of his rights by virtue of the fact that Participant has submitted his resignation but has remained in the employment of Evans and is engaged in good faith discussions to resolve any occurrence of an event described above.  Evans shall have at least thirty (30) days to remedy any condition set forth above, provided, however, that Evans shall be entitled to waive such period and make an immediate payment hereunder.



Section 3.2. Benefit Amount .  A Participant’s Severance Payment will be equal to:

(i) The Participant’s base salary, determined as of the date of termination, for twelve (1 2 ) months, plus the Participant’s short term incentive amount at the target level pro-rated for the time during the year in which the Participant was actively employed by the Company

In addition, for a twelve (12)-month period following the termination of employment, Evans will reimburse the Participant for outplacement services in an amount not to exceed $ 5 ,000 ; provided however, that reimbursements for such outplacement services shall be made in a cash lump sum within 30 days of Participant’s remittance to Evans of a receipt for such services.

Section 3.3. Form of Benefit Payment .  A Participant will receive his or her benefit in the form of direct deposit to his or her bank account in accordance with the normal payroll process over the period of the Severance Payment.  All applicable payroll taxes and withholding will be applied.  Severance Payments and benefits payable under this Plan will not be treated as

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compensation for purposes of calculating benefits under any other employee benefit plan maintained by the Company.

Notwithstanding any other provision in this Plan ,   “termination of employment” shall mean “Separation from Service” as defined in Code Section 409A and the Treasury Regulations thereunder, such that Evans and the Participant reasonably anticipate that the level of bona fide services the Participant would perform after termination would permanently decrease to a level that is less than 50% of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period.

Notwithstanding anything in this Agreement to the contrary, if the Participant is a Specified Employee (within the meaning of Treasury Regulations §1.409A-1(i)), then, to the extent necessary to avoid penalties under Code Section 409A, no payment shall be made to the Participant prior to the first day of the seventh month following the date of termination in excess of the “permitted amount” under Code Section 409A.  For these purposes, the “permitted amount” shall be an amount that does not exceed two times the lesser of: (i) the sum of Participant’s annualized compensation based upon the annual rate of pay for services provided to Evans for the calendar year preceding the year in which occurs the date of termination or (ii) the maximum amount that may be taken into account under a tax-qualified plan pursuant to Code Section 401(a)(17) for the calendar year in which occurs the date of termination.  Payment of the “permitted amount” shall be made in accordance with regular payroll practices.  Any payment in excess of the permitted amount shall be made to the Participant on the first day of the seventh month foll owing the date of termination.

Section 3.4. Forfeitures of Benefits .     A Participant will forfeit his or her right to any unpaid Severance Payments benefits if he or she is reemployed by the Company in a comparable position , as determined by the Board of Directors of the Company .

Section 3.5. Effect of Regulatory Actions .  Any actions by Evans under this Agreement must comply with the law, including regulations and other interpretive action, of the Federal Deposit Insurance Act, Federal Deposit Insurance Corporation, or other entities that supervise any of the activities of Evans .  Specifically, any payments to the Participant by Evans , whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

Section 3.6. Golden Parachute Adjustments .  Notwithstanding anything in this Agreement or any other agreement to the contrary:

(a) In the event Evans (or its successor) and the Participant both determine, based upon the advice of the independent public accountants for Evans , that part or all of the consideration, compensation or benefits to be paid to the Participant under this Agreement constitute “parachute payments” under Code Section 280G(b)(2) then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any

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consideration, compensation or benefits to be paid to the Participant under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds 2.99 times the Participant’s “base amount,” as defined in Code Section 280G(b)(3) (the “Executive Base Amount”), the amounts constituting “parachute payments” which would otherwise be payable to or for the benefit of the Participant shall be reduced to the extent necessary so that the Parachute Amount is equal to 2.99 times the Participant Base Amount (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Participant determines, based upon the advice of an independent public accounting firm (which may, but need not be the independent public accountants of Evans ), that without such reduction the Participant would be entitled to receive and retain, on a net after tax basis (including, without limitation, any excise taxes payable under Code Section 4999), an amount which is greater than the amount, on a net after tax basis, that the Participant would be entitled to retain upon Executive’s receipt of the Reduced Amount.

(b) If the determination made pursuant to subsection (a) above results in a reduction of the payments that would otherwise be paid to the Participant except for the application of this Section, then the Participant may then elect, in the Participant’s sole discretion, which and how much of any particular entitlement shall be eliminated or reduced and shall advise Evans in writing of the Participant’s election within ten days of the determination of the reduction in payments; provided, however, that if it is determined that such election by the Participant shall be in violation of Code Section 409A, or if no such election is made by the Participant within such ten-day period, the allocation of the required reduction shall be pro-rata..  If no such election is made by the Participant within such ten-day period, Evans may elect which and how much of any entitlement shall be eliminated or reduced and shall notify the Participant promptly of such election.  Within ten days following such determination and the elections hereunder, Evans shall pay or distribute to or for the benefit of the Participant such amounts as are then due to the Participant under this Agreement and shall promptly pay or distribute to or for the benefit of the Participant in the future such amounts as become due to the Participant under this Agreement.

(c) As a result of the uncertainty in the application of Section 280G of the Code at the time of a determination hereunder, it is possible that payments will be made by Evans which should not have been made under clause (a) of this Section (an “Overpayment”) or that additional payments which are not made by Evans pursuant to clause (a) of this Section should have been made (an “Underpayment”).  In the event that there is a final determination by the Internal Revenue Service, a final determination by a court of competent jurisdiction or a change in the provisions of the Code or regulations pursuant to which an Overpayment arises, any such Overpayment shall be treated for all purposes as a loan to the Participant which the Participant shall repay to Evans together with interest at the applicable Federal rate provided for in Code Section 7872(f)(2).  In the event that there is a final determination by the Internal Revenue Service, a final determination by a court of competent jurisdiction or a change in the provisions of the Code or regulations pursuant to which an Underpayment arises under this Agreement, any

-   4  –

 

 

 


 

such Underpayment shall be promptly paid by Evans to or for the benefit of the Participant, together with interest at the applicable Federal rate provided for in Code Section 7872(f)(2).

The calculations required by clause (a) of this Section will be made by Evans ’s independent accounting firm engaged immediately prior to the   event that triggered the payment, in consultation with Evans ’s outside legal counsel, and for purposes of making the calculation the accounting firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999, provided that the accounting firm’s determinations must be made with substantial authority (within the meaning of Code Section 6662).



Article IV.
ADMINISTRATION OF PLAN

Section 4.1. Appointment of Plan Administrator and Responsibility for Administration of Plan .     The Compensation Committee of Evans’ Board of Directors shall serve as Plan Administrator and shall administer this Plan in accordance with its terms. The Plan Administrator may designate other persons to carry out the responsibilities to control and manage the operation of the Plan.

Section 4.2. Agents .     The Plan Administrator may employ such agents, including counsel, as it may deem advisable for the administration of the Plan.  Such agents need not be Participants under the Plan.

Section 4.3. Compensation .     The Company shall pay all the expenses of the Plan Administrator.  The Company shall indemnify any employees of the Company to whom responsibilities have been delegated under Section 4.1 against any liability incurred in the course of administration of the Plan, except liability arising from their own gross negligence or willful misconduct.

Section 4.4. Records .  The acts and decisions of the Plan Administrator shall be duly recorded.  The Plan Administrator shall make a copy of this Plan available for examination by any Participant during the business hours of the Employer.

Section 4.5. Defect or Omission .     The Plan Administrator shall refer any material defect, omission or inconsistency in the Plan to the Board of Directors of Evans for such action as may be necessary to correct such defect, supply such omission or reconcile such inconsistency.

Section 4.6. Liability .  Except for their own negligence, willful misconduct or breach of fiduciary duty, neither the Plan Administrator nor any agents appointed by the Plan Administrator shall be liable to anyone for any act or omission in the course of the administration of the Plan.

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Section 4.7. Contributions and Financing .     All benefits required to be paid by the Company under the Plan shall be paid as due directly by the Company from its general assets.

Section 4.8. Claims Procedure .  The claims procedure set forth in this paragraph is the exclusive method of resolving dispu tes that arise under the Plan.

(a) Written   Claim Any person asserting any rights   under   this   Plan   must   submit a written   claim to the Compensation Committee of Evans ’s Board of Directors (the “Committee”) The   Committee shall render a decision   within a reasonable period of time   from the date on which the Committee received   the   written   claim, not to exceed 90 days, unless an extension of time is necessary due to reasonable cause .  

(b) Denial of Claim If a claim is denied in whole or in part, the
claimant must be provided with the following information:

(1) A statement of specific reasons for the denial of the claim;

(2) References to the specific provisions of the Plan on which the denial is based;

(3) A description of any additional material or information necessary to perfect the claim with an explanation of why such material information is necessary;

(4) An explanation of the claims review procedures with a statement that the claimant must request review of the decision denying the claim within 30 days following the date on which the claimant received such notice.    

(c) Review of Denial The claimant may request that the Evans Board of Directors review the denial of a claim.  A request for review must be in writing and must be received by the Board of Directors within 30 days of the date on which the claimant received written notification of the denial of the claim.  The Board of Directors will render a decision with respect to a written request for review within 60 days from the date on which the Board of Directors received the request for review.  If the request for review is denied in whole or in part, the Board of Directors must mail the claimant a written decision that includes a statement of the reasons for the decision.

Article V.
MISCELLANEOUS PROVISIONS

Section 5.1. Plan Terms are Legally Enforceable .  The Company intends that the terms of this Plan, including those relating to coverage and bene fits, are legally enforceable.

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Section 5.2. Plan Exclusively Benefits Employees .  The Company intends that the Plan is maintained for the exclusive benefit of employees of the Company.

Section 5.3. Illegality of Particular Provision .   The illegality of any particular provision of the Plan shall not affect the other provisions, and the Plan shall be construed in all other respects as if such invalid provision were omitted.

Section 5.4. Applicable Laws .  To the extent not pre-empted by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Plan shall be governed by the laws of the State of New York.

Section 5.5. Non-Guaranty of Employment .  Nothing in this Plan shall be construed as granting any Participant a right to continued employment with the Company.

Section 5.6. Coverage of Plan by Organization Under Common Control .  The Plan is adopted by Evans and covers any Organization Under Common Control with Evans .  The term “Organization Under Common Control” means (i) an Affiliated Corporation, (ii) a Related Business, (iii) an Affiliated Service Organization or (iv) any other entity required to be aggregated with Evans pursuant to Section 414(o) of the Code and the regulations thereunder.  The term “Affiliated Corporation” means any corporation that is a member of a controlled group of corporations as defined in Section 414(b) of the Code, which includes Evans .  The term “Related Business” means any trade or business included in a group of trade or businesses with Evans which are under common control, as defined in Section 414(c) of the Code.  The term “Affiliated Service Organization” means any service organization which is a member of an affiliated service group, as defined in Section 414(m) of the Code, which includes Evans .



Article VI.
AMENDMENT AND TERMINATION

Section 6.1. Amendment of the Plan .     Evans intends to maintain this Plan indefinitely, but reserves the right to amend, modify or terminate the Plan at any time.  Evans may make modifications or amendments to the Plan that are necessary or appropriate to maintain the Plan as a plan meeting the requirements of the applicable provisions of ERISA.



Article VII.
POST TERMINATION OBLIGATIONS

Section 7.1. Each Participant hereby covenants and agrees that, for a period of one (1) year following his termination of employment with Evans , he shall not, without the written consent of Evans , either directly or indirectly:

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(i) solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of Evans , or any of its subsidiaries or affiliates, to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of Evans , or any of its direct or indirect subsidiaries or affiliates or has headquarters or offices within 100 miles of the locations in which Evans , or any of its direct or indirect subsidiaries or affiliates, has business operations or has filed an application for regulatory approval to establish an office;



(ii) become   an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer, greater than 5% equity owner or stockholder, partner   or   trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank   or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity competing with Evans or its affiliates in the same geographic locations where Evans or its affiliates has material business interests; or



(iii) solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of Evans or any of its direct or indirect subsidiaries or affiliates to terminate an existing business or commercial relationship with Evans .



Section 7.2. Each Participant shall, upon reasonable notice, furnish such information and assistance to Evans as may reasonably be required by Evans , in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that the Participant shall not be required to provide information or assistance with respect to any litigation between the Participant and Evans or any of its subsidiaries or affiliates.

Section 7.3. All payments and benefits to a Participant under this Plan shall be subject to the Participant’s compliance with this Article VII.  The parties hereto, recognizing that irreparable injury will result to Evans , its business and property in the event of Participant’s breach of this Article VII, agree that, in the event of any such breach by a Participant, Evans will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by the Participant and all persons acting for or with the Participant. The Participant represents and admits that Participant’s experience and capabilities are such that Participant can obtain employment in a business engaged in other lines and/or of a different nature than Evans , and that the enforcement of a remedy by way of injunction will not prevent Participant from earning a livelihood.  Nothing herein will be construed as prohibiting Evans from pursuing any other remedies available to them for such breach or threatened breach, including the recovery of damages from the Participant.

IN WITNESS WHEREOF ,   Evans has duly executed this Plan as of the date first above written.

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EVANS BANCORP , INC.

__ July 26, 2016 _________________ By:   /s/ David J. Nasca

Date                                                                 David J. Nasca, President and Chief Executive Officer



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EVANS BANCORP, INC.

EXECUTIVE SEVERANCE PLAN





Section 2.1 Eligible Executives



Eligible Executives Appointed by the Ch ief Executive Officer as of 7/2 6 /16 include:



J ohn Connerton

Robert G . Miller, Jr.

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News

Release


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

 



IMMEDIATE RELEASE

Evans Bancorp Reache s   $1 Billion in Assets and Reports Second Quarter Net Income Growth of 20%

HAMBURG, NY, July 28, 2016 – 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 second quarter ended June 30, 2016.

HIGHLIGHTS OF THE 201 6   SECOND QUARTER

·

Total assets reached $1.0 billion as of June 30, 2016

·

Net income was $2. 0 million, or $0.46 per diluted share, a 20% increase from prior year

·

Record loan growth:   l oan portfolio of $853 million up 20% year over year

·

Strong annual deposit growth across all product categories :   d eposit portfolio of $870 million up 12%

·

Net interest income increased 11% from last year’s second quarter to $8.5 million

Net income was $2. 0 million, or $0.4 6 per diluted share, in the second quarter of 2016, compared with $1.7 million or $0.40 per diluted share in the first quarter of 201 6 and $1.7 million or $0.39 per diluted share in last year’s second quarter.  The increase reflects improved net interest income and a   reduction in the Company’s allowance for loan loss, partially offset by lower non-interest income and higher non-interest expenses.  Re turn on average equity was 8.56 % for the second quarter of 2016 compared with 7.43% in the previous quarter and 7.62% in the second quarter of 2015.

“Record loan growth in the quarter put us over the $1 billion in assets mark, an important milestone that underscores our success at establishing Evans as Western New York’s leading, locally-based community bank,” said David J. Nasca, President and CEO of Evans Bancorp.  “Results were very positive across the board with 20% growth in our loan portfolio and 12% growth in deposits producing 11% growth in net interest income year-over-year.  These results demonstrate success at organically growing the business and our ability to capitalize on the market disruption opportunity occurring with KeyCorp’s acquisition of First Niagara as well as the benefits from Western New York’s economic expansion.”

Net Interest Income

($ in thousands)

 

 

2Q 2016

 

 

 

1Q 2016

 

 

 

2Q 2015

Interest income

 

 

9,694 

 

 

 

9,356 

 

 

 

8,636 

Interest expense

 

 

1,178 

 

 

 

1,096 

 

 

 

988 

Net interest income

 

 

8,516 

 

 

 

8,260 

 

 

 

7,648 

Provision for loan losses

 

 

(376)

 

 

 

208 

 

 

 

415 

Net interest income after provision

 

 

8,892 

 

 

 

8,052 

 

 

 

7,233 


Net interest income increased $0.3 million, or 3%, from the first quarter of 2016 and $0.9 million, or 11%, from the prior-year second quarter, reflecting strong loan and demand deposit growth.  The Company’s commercial loan portfolio continues to grow at significant rates as average commercial loans, including both commercial and industrial and commercial real estate loans, were $642 million in the second quarter, up 4% from
$616 million in the first quarter of 2016 and 18% from $543 million in the second quarter of 2015.  Net interest margin of 3.65% declined 4 basis points from the 2016 first quarter, but improved 4 basis points from the second


 

Evans Bancorp Reports Quarterly Net Income Growth of 20 %

July 28 , 201 6

Page 2   of 7

quarter of last year.  The margin contraction from the trailing quarter reflects a continued decrease in loan yields as market rates remain historically low in a highly competitive market.  The margin improvement from last year was due to a shift in interest-earning assets mix as average loans grew 16% and comprised 86% of average interest-earning assets compared with 82% in the second quarter of 2015.  Loans have earned higher yields than investment securities and short-term interest-earning cash over the past two years.

The Company released $0.4 million in allowance for loan losses compared with a provision for loan loss in the 2016 first quarter and in last year’s second quarter.  The loan loss provision reversal reflects favorable credit quality trends in the loan portfolio as well as improvement in specific loan relationships. 

John B. Connerton, Executive Vice President and Chief Financial Officer, noted, “We have had excellent loan growth while maintaining our conservative culture and consistent underwriting standards.  This provides confidence in the quality of our loan assets.  There were several factors that led to the release of reserves, including an improved collateral position on an impaired loan, a sustained period of low charge-offs, and the upgrade of several large criticized loan relationships.”

Asset Quality



 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2Q 2016

 

1Q 2016

 

 

2Q 2015

Total non-performing loans

 

$

16,076 

 

 

$

17,941 

 

 

 

$

10,994 

 

Total net loan charge-offs (recoveries)

 

 

(30)

 

 

 

(28)

 

 

 

 

83 

 

Non-performing loans/Total loans

 

 

1.88 

%

 

 

2.25 

%

 

 

 

1.55 

%

Net loan charge-offs/Average loans

 

 

(0.01)

%

 

 

(0.02)

%

 

 

 

0.05 

%

Allowance for loans losses/Total loans

 

 

1.50 

%

 

 

1.65 

%

 

 

 

1.84 

%



The ratio of the allowance for loan losses to total loans declined due to strong loan growth and a sustained level of low historical charge-offs.  Non-performing loans decreased during the quarter due to a lower balance of loans that are 90 days past due and accruing.

Non-interest Income

B

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2Q 2016

 

1Q 2016

 

 

2Q 2015

Deposit service charges

 

 

403 

 

 

 

443 

 

 

411 

Insurance service and fee revenue

 

 

1,572 

 

 

 

1,748 

 

 

1,821 

Bank-owned life insurance

 

 

141 

 

 

 

136 

 

 

152 

Loss on tax credit investment

 

 

(2,139)

 

 

 

-    

 

 

-

Refundable NY state historic tax credit

 

 

1,508 

 

 

 

-

 

 

 

-

Other income

 

 

795 

 

 

 

667 

 

 

 

1,092 

Total non-interest income

 

 

2,280 

 

 

 

2,994 

 

 

 

3,476 



Evans is actively engaged in the community by financing historic rehabilitation projects in Buffalo and enhances its yield by investing in related tax credits.  When a project is completed, Evans begins to recognize tax benefits with a related reduction in the investment.  In the current quarter, a $1.5 million refundable New York State tax credit was recorded in non-interest income and a corresponding $0.6 million tax benefit was realized in income tax expense, offset by a $2.1 million write-off on the investment.  The Company will recognize additional tax benefits of approximately $280 thousand in each of the next two quarters related to this current project.   

Insurance agency revenue was down $0.2 million from the 2016 first quarter due to a seasonal decrease in profit sharing revenue.  The $0.2 million decline from the 2015 second quarter reflects the benefits realized from the high level of claims adjustment fees earned for services provided to assess damages of local properties impacted by the previous year’s severe winter.  Other non-interest income was down from the prior-year period due to lower mortgage servicing rights and the planned run-off of data center income.




 

Evans Bancorp Reports Quarterly Net Income Growth of 20 %

July 28 , 201 6

Page 3   of 7



Non-interest Expense



 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2Q 2016

 

1Q 2016

 

2Q 2015

Salaries and employee benefits

 

 

5,467 

 

 

 

5,514 

 

 

 

5,066 

Occupancy

 

 

740 

 

 

 

699 

 

 

 

697 

Repairs and maintenance

 

 

212 

 

 

 

176 

 

 

 

215 

Advertising and public relations

 

 

190 

 

 

 

285 

 

 

 

231 

Professional services

 

 

656 

 

 

 

580 

 

 

 

670 

Technology and communications

 

 

339 

 

 

 

422 

 

 

 

262 

FDIC insurance

 

 

182 

 

 

 

159 

 

 

 

148 

Litigation Expense

 

 

-   

 

 

 

(100)

 

 

 

-    

Other expenses

 

 

933 

 

 

 

793 

 

 

 

952 

Total non-interest expenses

 

 

8,719 

 

 

 

8,528 

 

 

 

8,241 



Total non-interest expense increased $0.2 million, or 2%, from the first quarter of 2016 and $0.5 million, or 6%, from the prior-year period.  Salaries and benefits costs were relatively flat   from the first quarter of 2016 , reflect ing stabilization in the number of employees at the Company during the second quarter .  The increase from last year’s second quarter reflects annual merit increases and strategic hires to support the Company’s continued growth .  Evans has expanded its commercial team with new commercial loan officers, business development officers and related support staff .    

Income tax expense of $0.5 million was recognized for the second quarter of 2016, compared with an income tax expense of $0.8 million in each of the first quarter of 2016 and the second quarter of 2015.  The effective tax rate for the quarter was 18.3%, compared with 31.9% in the first quarter of 2016 and 32.1% in the second quarter of 2015.   The decrease in the effective tax rate reflects the impact of the historic tax credit transaction.  The Company expects the effective tax rate for the remainder of 2016 to more closely reflect the year-to-date effective tax rate of 25.2%.



Balance Sheet Highlights

Total assets reached $1.0 billion as of June 30, 2016, a 3% increase from $990 million at March 31, 2016 and a 12% increase over $909 million in assets at June 30, 2015.  The Company experienced the highest loan growth in its history this quarter as the loan portfolio increased $57 million, or 7%, to $853 million.  Loan growth from the end of last year’s second quarter was $142 million, or 20%, and was predominantly in the commercial real estate and commercial and industrial loan portfolios.

Total deposits of $870 million were 2% higher than $849 million at the end of this year’s first quarter and 12% higher than the 2015 second quarter-end.  The year-over-year growth was across all of the Company’s product categories, including demand deposit growth of 15%, NOW account growth of 12%, savings deposit growth of 11%, and time deposit growth of 13%.

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the Federal “well capitalized” standard, including a Tier 1 leverage ratio of 10.06% at June 30, 2016.  Book value per share increased to $22.11 at June 30, 2016 compared with $21.54 at March 31, 2016 and $20.80 at June 30, 2015.  Tangible book value per share was $20.22 at June 30, 2016, compared with $19.64 at the end of the first quarter of 2016 and $18.89 at the end of last year’s second quarter.

Outlook

Mr. Nasca commented, “We have refined our focus with o ur 2020 strategic plan.  It provides a road map for the next stage of our development and growth.  We believe that the investments we have made in talent and infrastructure for the last several years establishes a solid platform to launch Evans to the next level and


 

Evans Bancorp Reports Quarterly Net Income Growth of 20 %

July 28 , 201 6

Page 4   of 7

strengthen our earnings power.  Over the next couple years, we believe our performance and execution will allow us to maintain significant asset growth and drive accelerated earnings growth.”



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 $1.0 billion in assets and $870 million in deposits at June 30, 2016.  Evans is a full-service community bank, with 1 4 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 seven 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 websites, at www.evansbancorp.com and www.evansbank.com .

Safe Harbor Statemen t:  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.













 

For more information contact:

-OR-

John B. Connerton

Senior Vice President and Chief Financial Officer

Deborah K. Pawlowski

Kei Advisors LLC

Phone: (716) 926-2000  
Email: jconner@evansbank.com  

Phone:  (716) 843-3908
Email:  dpawlowski@keiadvisors.com









TABLES FOLLOW




 

Evans Bancorp Reports Quarterly Net Income Growth of 20 %

July 28 , 201 6

Page 5   of 7







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(in thousands, except shares and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

6/30/2016

 

3/31/2016

 

12/31/2015

 

9/30/2015

 

6/30/2015

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

 

$

110,629 

 

 

$

116,294 

 

 

$

98,758 

 

 

$

106,651 

 

 

$

106,734 

 

Loans

 

 

853,306 

 

 

 

796,773 

 

 

 

773,984 

 

 

 

731,239 

 

 

 

710,832 

 

Allowance for loan losses

 

 

(12,773)

 

 

 

(13,119)

 

 

 

(12,883)

 

 

 

(13,456)

 

 

 

(13,110)

 

Goodwill and intangible assets

 

 

8,101 

 

 

 

8,101 

 

 

 

8,101 

 

 

 

8,101 

 

 

 

8,101 

 

All other assets

 

 

62,335 

 

 

 

81,866 

 

 

 

71,147 

 

 

 

88,356 

 

 

 

95,990 

 

Total assets

 

$

1,021,598 

 

 

$

989,915 

 

 

$

939,107 

 

 

$

920,891 

 

 

$

908,547 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

187,774 

 

 

 

174,276 

 

 

 

183,098 

 

 

 

170,022 

 

 

 

163,862 

 

NOW deposits

 

 

88,993 

 

 

 

95,622 

 

 

 

83,674 

 

 

 

79,983 

 

 

 

79,266 

 

Regular savings deposits

 

 

480,290 

 

 

 

463,672 

 

 

 

439,993 

 

 

 

436,331 

 

 

 

431,555 

 

Time deposits

 

 

112,828 

 

 

 

115,479 

 

 

 

96,217 

 

 

 

95,967 

 

 

 

99,482 

 

Total deposits

 

 

869,885 

 

 

 

849,049 

 

 

 

802,982 

 

 

 

782,303 

 

 

 

774,165 

 

Borrowings

 

 

41,841 

 

 

 

34,224 

 

 

 

32,151 

 

 

 

32,640 

 

 

 

32,339 

 

Other liabilities

 

 

15,083 

 

 

 

14,482 

 

 

 

12,718 

 

 

 

16,275 

 

 

 

13,848 

 

Total stockholders' equity

 

 

94,789 

 

 

 

92,160 

 

 

 

91,256 

 

 

 

89,673 

 

 

 

88,195 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES AND CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

4,286,939 

 

 

 

4,279,296 

 

 

 

4,257,179 

 

 

 

4,238,448 

 

 

 

4,239,929 

 

Book value per share

 

$

22.11 

 

 

$

21.54 

 

 

$

21.44 

 

 

$

21.16 

 

 

$

20.80 

 

Tangible book value per share

 

$

20.22 

 

 

$

19.64 

 

 

$

19.53 

 

 

$

19.25 

 

 

$

18.89 

 

Tier 1 leverage ratio

 

 

10.06 

%

 

 

10.18 

%

 

 

10.45 

%

 

 

10.32 

%

 

 

10.23 

%

Tier 1 risk-based capital ratio

 

 

11.45 

%

 

 

11.94 

%

 

 

11.82 

%

 

 

12.03 

%

 

 

12.63 

%

Total risk-based capital ratio

 

 

12.70 

%

 

 

13.20 

%

 

 

13.07 

%

 

 

13.29 

%

 

 

13.89 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

$

16,076 

 

 

$

17,941 

 

 

$

16,042 

 

 

$

8,170 

 

 

$

10,994 

 

Total net loan charge-offs (recoveries)

 

 

(30)

 

 

 

(28)

 

 

 

776 

 

 

 

50 

 

 

 

83 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

 

1.88 

%

 

 

2.25 

%

 

 

2.07 

%

 

 

1.12 

%

 

 

1.55 

%

Net loan charge-offs/Average loans

 

 

(0.01)

%

 

 

(0.02)

%

 

 

0.42 

%

 

 

0.03 

%

 

 

0.05 

%

Allowance for loans losses/Total loans

 

 

1.50 

%

 

 

1.65 

%

 

 

1.66 

%

 

 

1.84 

%

 

 

1.84 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






 

Evans Bancorp Reports Quarterly Net Income Growth of 20 %

July 28 , 201 6

Page 6   of 7







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA  (UNAUDITED)

(in thousands, except share and per share data)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

2016

 

2016

 

2015

 

2015

 

2015



 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

Interest income

 

 

9,694 

 

 

 

9,356 

 

 

 

9,437 

 

 

 

9,099 

 

 

 

8,636 

 

Interest expense

 

 

1,178 

 

 

 

1,096 

 

 

 

1,001 

 

 

 

960 

 

 

 

988 

 

Net interest income

 

 

8,516 

 

 

 

8,260 

 

 

 

8,436 

 

 

 

8,139 

 

 

 

7,648 

 

Provision for loan losses (credit)

 

 

(376)

 

 

 

208 

 

 

 

204 

 

 

 

396 

 

 

 

415 

 

Net interest income after provision

 

 

8,892 

 

 

 

8,052 

 

 

 

8,232 

 

 

 

7,743 

 

 

 

7,233 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

403 

 

 

 

443 

 

 

 

461 

 

 

 

455 

 

 

 

411 

 

Insurance service and fee revenue

 

 

1,572 

 

 

 

1,748 

 

 

 

1,572 

 

 

 

1,972 

 

 

 

1,821 

 

Bank-owned life insurance

 

 

141 

 

 

 

136 

 

 

 

140 

 

 

 

134 

 

 

 

152 

 

Loss on tax credit investment

 

 

(2,139)

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

Refundable NY state historic tax credit

 

 

1,508 

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

 

 

-    

 

Gain on insurance proceeds

 

 

-    

 

 

 

-    

 

 

 

-    

 

 

 

734 

 

 

 

-    

 

Other income

 

 

795 

 

 

 

667 

 

 

 

748 

 

 

 

962 

 

 

 

1,092 

 

Total non-interest income

 

 

2,280 

 

 

 

2,994 

 

 

 

2,921 

 

 

 

4,257 

 

 

 

3,476 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,467 

 

 

 

5,514 

 

 

 

5,365 

 

 

 

5,253 

 

 

 

5,066 

 

Occupancy

 

 

740 

 

 

 

699 

 

 

 

722 

 

 

 

675 

 

 

 

697 

 

Repairs and maintenance

 

 

212 

 

 

 

176 

 

 

 

204 

 

 

 

230 

 

 

 

215 

 

Advertising and public relations

 

 

190 

 

 

 

285 

 

 

 

227 

 

 

 

188 

 

 

 

231 

 

Professional services

 

 

656 

 

 

 

580 

 

 

 

499 

 

 

 

674 

 

 

 

670 

 

Technology and communications

 

 

339 

 

 

 

422 

 

 

 

308 

 

 

 

354 

 

 

 

262 

 

FDIC insurance

 

 

182 

 

 

 

159 

 

 

 

161 

 

 

 

151 

 

 

 

148 

 

Litigation Expense

 

 

-    

 

 

 

(100)

 

 

 

-    

 

 

 

(175)

 

 

 

-    

 

Other expenses

 

 

933 

 

 

 

793 

 

 

 

1,179 

 

 

 

930 

 

 

 

952 

 

Total non-interest expenses

 

 

8,719 

 

 

 

8,528 

 

 

 

8,665 

 

 

 

8,280 

 

 

 

8,241 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,453 

 

 

 

2,518 

 

 

 

2,488 

 

 

 

3,720 

 

 

 

2,468 

 

Income tax provision

 

 

450 

 

 

 

804 

 

 

 

734 

 

 

 

1,211 

 

 

 

793 

 

Net income

 

 

2,003 

 

 

 

1,714 

 

 

 

1,754 

 

 

 

2,509 

 

 

 

1,675 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$

0.46 

 

 

$

0.40 

 

 

$

0.41 

 

 

$

0.58 

 

 

$

0.39 

 

Cash dividends per common share

 

$

-    

 

 

$

0.38 

 

 

$

-    

 

 

$

0.36 

 

 

$

-    

 

Weighted average number of diluted shares

 

 

4,346,599 

 

 

 

4,328,034 

 

 

 

4,315,489 

 

 

 

4,312,275 

 

 

 

4,309,688 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

0.80 

%

 

 

0.71 

%

 

 

0.75 

%

 

 

1.10 

%

 

 

0.74 

%

Return on average stockholders' equity

 

 

8.56 

%

 

 

7.43 

%

 

 

7.72 

%

 

 

11.20 

%

 

 

7.62 

%

Efficiency ratio

 

 

76.30 

%

 

 

75.78 

%

 

 

76.30 

%

 

 

66.79 

%

 

 

74.08 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

Evans Bancorp Reports Quarterly Net Income Growth of 20 %

July 28 , 201 6

Page 7   of 7







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES  (UNAUDITED)

(in thousands)



 

2016

 

2016

 

2015

 

2015

 

2015



 

Second Quarter

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

801,115 

 

 

$

772,672 

 

 

$

740,337 

 

 

$

706,568 

 

 

$

691,608 

 

Investment securities

 

 

115,610 

 

 

 

103,094 

 

 

 

103,940 

 

 

 

112,339 

 

 

 

103,641 

 

Interest bearing deposits at banks

 

 

15,916 

 

 

 

18,862 

 

 

 

19,185 

 

 

 

27,501 

 

 

 

51,094 

 

Total interest-earning assets

 

 

932,641 

 

 

 

894,628 

 

 

 

863,462 

 

 

 

846,408 

 

 

 

846,343 

 

Non interest-earning assets

 

 

65,539 

 

 

 

66,375 

 

 

 

66,115 

 

 

 

66,102 

 

 

 

64,396 

 

Total Assets

 

$

998,180 

 

 

$

961,003 

 

 

$

929,577 

 

 

$

912,510 

 

 

$

910,739 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

88,966 

 

 

 

88,220 

 

 

 

80,810 

 

 

 

78,335 

 

 

 

78,979 

 

Regular savings

 

 

473,791 

 

 

 

447,318 

 

 

 

439,108 

 

 

 

431,127 

 

 

 

430,930 

 

Time deposits

 

 

114,545 

 

 

 

108,954 

 

 

 

96,478 

 

 

 

97,321 

 

 

 

105,051 

 

Total interest-bearing deposits

 

 

677,302 

 

 

 

644,492 

 

 

 

616,396 

 

 

 

606,783 

 

 

 

614,960 

 

Other borrowings

 

 

36,031 

 

 

 

34,250 

 

 

 

32,443 

 

 

 

32,113 

 

 

 

31,533 

 

Total interest-bearing liabilities

 

 

713,333 

 

 

 

678,742 

 

 

 

648,839 

 

 

 

638,896 

 

 

 

646,493 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

178,106 

 

 

 

176,074 

 

 

 

175,362 

 

 

 

168,883 

 

 

 

162,632 

 

Other non-interest bearing liabilities

 

 

13,142 

 

 

 

13,879 

 

 

 

14,549 

 

 

 

15,122 

 

 

 

13,665 

 

Stockholders' equity

 

 

93,599 

 

 

 

92,308 

 

 

 

90,827 

 

 

 

89,609 

 

 

 

87,949 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$

998,180 

 

 

$

961,003 

 

 

$

929,577 

 

 

$

912,510 

 

 

$

910,739 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YIELD/RATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

 

4.43 

%

 

 

4.52 

%

 

 

4.59 

%

 

 

4.76 

%

 

 

4.59 

%

Investment securities

 

 

2.71 

%

 

 

2.39 

%

 

 

3.59 

%

 

 

2.42 

%

 

 

2.58 

%

Interest bearing deposits at banks

 

 

0.83 

%

 

 

0.23 

%

 

 

0.29 

%

 

 

0.23 

%

 

 

0.26 

%

Total interest-earning assets

 

 

4.16 

%

 

 

4.18 

%

 

 

4.37 

%

 

 

4.30 

%

 

 

4.08 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

 

0.35 

%

 

 

0.39 

%

 

 

0.40 

%

 

 

0.40 

%

 

 

0.43 

%

Regular savings

 

 

0.51 

%

 

 

0.47 

%

 

 

0.43 

%

 

 

0.41 

%

 

 

0.38 

%

Time deposits

 

 

1.23 

%

 

 

1.26 

%

 

 

1.29 

%

 

 

1.27 

%

 

 

1.42 

%

Total interest-bearing deposits

 

 

0.61 

%

 

 

0.60 

%

 

 

0.56 

%

 

 

0.55 

%

 

 

0.56 

%

Other borrowings

 

 

1.57 

%

 

 

1.60 

%

 

 

1.64 

%

 

 

1.64 

%

 

 

1.62 

%

Total interest-bearing liabilities

 

 

0.66 

%

 

 

0.65 

%

 

 

0.62 

%

 

 

0.60 

%

 

 

0.61 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

3.50 

%

 

 

3.53 

%

 

 

3.75 

%

 

 

3.70 

%

 

 

3.47 

%

Contribution of interest-free funds

 

 

0.15 

%

 

 

0.16 

%

 

 

0.16 

%

 

 

0.15 

%

 

 

0.14 

%

Net interest margin

 

 

3.65 

%

 

 

3.69 

%

 

 

3.91 

%

 

 

3.85 

%

 

 

3.61 

%