Evans Bancorp Inc. (EVBN, Financial) filed Quarterly Report for the period ended 2009-03-31.
Evans Bancorp Inc. is a bank holding company and conducts its business through its wholly-owned subsidiary Evans National Bank and the Bank's wholly-owned subsidiaries ENB Associates Inc. and M&W Agency Inc. The principal business of the Company is commercial banking and consists of among other things attracting deposits from the general public and using these funds to extend credit and to invest in securities. The Bank offers a variety of loan products to its customers including commercial loans commercial and residential mortgage loans and consumer loans. Evans Bancorp Inc. has a market cap of $38.1 million; its shares were traded at around $13.75 with a P/E ratio of 11.1 and P/S ratio of 0.9. The dividend yield of Evans Bancorp Inc. stocks is 6%. Evans Bancorp Inc. had an annual average earning growth of 6.7% over the past 5 years.
Direct finance lease balances decreased $3.2 million or 5.5% from December 31, 2008. Starting in the third quarter of 2008, the leasing portfolios asset quality began to deteriorate. This deterioration accelerated in the first quarter of 2009. Non-performing leases increased to $1.6 million at March 31, 2009, from $0.8 million at December 31, 2008 and $0.1 million at March 31, 2008. Net leasing charge-offs in the first quarter of 2009 were $1.6 million, compared with $0.7 million in the fourth quarter of 2008 and $0.4 million in the first quarter of 2008. This rapid deterioration in the portfolio prompted management to take preventive measures such as credit tightening for new applicants and consolidation of ENLs broker network during the fourth quarter of 2008. However, in the first quarter of 2009 management decided that these measures were not enough and materially slowed new originations. Given the high risk of the portfolio in the current economic recession, in April 2009 management decided that the business model of ENL was no longer a good strategic fit, and decided to exit the national leasing business. As a result, management expects to service the existing leasing portfolio as it rolls off in the next 24-48 months, but discontinue any new originations outside the Companys local footprint.
Consumer loans totaled $97.5 million at March 31, 2009, reflecting a $0.5 million or 0.5% decrease from December 31, 2008. Consumer real estate loans decreased $1.5 million or 2.6% from December 31, 2008. Recent efforts by the federal government to stimulate housing demand in the face of the economic recession have lowered residential home mortgage rates and resulted in significantly increasing consumer real estate demand. However, given the low fixed rates and long terms of the loans being originated, the Company has sold most of its originated residential mortgage loans. This, along with accelerated prepayments from existing customers re-financing their homes, has resulted in decreased consumer real estate balances at March 31, 2009.
The Bank sells these fixed rate residential mortgages to the Federal National Mortgage Association (FNMA), while maintaining the servicing rights for those mortgages. During the three month period ended March 31, 2009, the Bank sold mortgages to FNMA totaling $4.1 million, as compared with $0.5 million during the three month period ended March 31, 2008. At March 31, 2009, the Bank had a loan servicing portfolio principal balance of $31.0 million upon which it earns servicing fees, as compared with $26.9 million at December 31, 2008.
For the three month period ended March 31, 2009 gross interest income that would have been reported on non-accruing loans and leases had they been current was $101 thousand, as compared to $10 thousand for the same period in 2008. There was $24 thousand and $10 thousand of interest income from non-accruing loans and leases included in net income for the three month periods ended March 31, 2009 and 2008.
Total deposits at March 31, 2009 were $460.0 million, reflecting a $56.1 million or 13.9% increase from December 31, 2008. Demand deposits at March 31, 2009 were $80.3 million, reflecting a $4.4 million or 5.7% increase from December 31, 2008. Demand deposit balances fluctuate day-to-day based on the high volume of transactions normally associated with the demand product. Average demand deposit growth is a better measure of sustained growth. Average demand deposits in the three month period ended March 31, 2009 were 1.1% lower than the fourth quarter of 2008, but 13.2% higher than the prior years first quarter. Much of the overall deposit growth in the quarter ended March 31, 2009 when compared with the prior year period is attributable to an increase in regular savings deposits of $29.1 million, or 18.9%, to $183.4 million. The Company introduced a new money market savings product in 2008 and much of the continued growth in regular savings is due to this product. NOW deposits decreased in the quarter ended March 31, 2009 by $1.3 million, or 12.1%, while muni-vest balances increased in the same quarter by $19.3 million, or 73.0%. The growth in muni-vest is due mainly to temporary seasonal municipal deposits. Time deposits were $141.1 million at March 31, 2009, reflecting a $4.6 million or 3.4% increase from December 31, 2008.
Read the The complete Report
Evans Bancorp Inc. is a bank holding company and conducts its business through its wholly-owned subsidiary Evans National Bank and the Bank's wholly-owned subsidiaries ENB Associates Inc. and M&W Agency Inc. The principal business of the Company is commercial banking and consists of among other things attracting deposits from the general public and using these funds to extend credit and to invest in securities. The Bank offers a variety of loan products to its customers including commercial loans commercial and residential mortgage loans and consumer loans. Evans Bancorp Inc. has a market cap of $38.1 million; its shares were traded at around $13.75 with a P/E ratio of 11.1 and P/S ratio of 0.9. The dividend yield of Evans Bancorp Inc. stocks is 6%. Evans Bancorp Inc. had an annual average earning growth of 6.7% over the past 5 years.
Highlight of Business Operations:
Total loans and leases grew to $418.8 at March 31, 2009, reflecting an $11.1 million or 2.7% increase from December 31, 2008. Gross loans and leases are net of $10.0 million and $11.1 million of unearned income on direct financing leases as of March 31, 2009 and December 31, 2008, respectively. Commercial loans and leases totaled $320.4 million at March 31, 2009, reflecting an $11.6 million or 3.7% increase from December 31, 2008. Growth in commercial real estate loans of $11.6 million for the first fiscal quarter was largely responsible for the increase in commercial loans and leases from December 31, 2008.Direct finance lease balances decreased $3.2 million or 5.5% from December 31, 2008. Starting in the third quarter of 2008, the leasing portfolios asset quality began to deteriorate. This deterioration accelerated in the first quarter of 2009. Non-performing leases increased to $1.6 million at March 31, 2009, from $0.8 million at December 31, 2008 and $0.1 million at March 31, 2008. Net leasing charge-offs in the first quarter of 2009 were $1.6 million, compared with $0.7 million in the fourth quarter of 2008 and $0.4 million in the first quarter of 2008. This rapid deterioration in the portfolio prompted management to take preventive measures such as credit tightening for new applicants and consolidation of ENLs broker network during the fourth quarter of 2008. However, in the first quarter of 2009 management decided that these measures were not enough and materially slowed new originations. Given the high risk of the portfolio in the current economic recession, in April 2009 management decided that the business model of ENL was no longer a good strategic fit, and decided to exit the national leasing business. As a result, management expects to service the existing leasing portfolio as it rolls off in the next 24-48 months, but discontinue any new originations outside the Companys local footprint.
Consumer loans totaled $97.5 million at March 31, 2009, reflecting a $0.5 million or 0.5% decrease from December 31, 2008. Consumer real estate loans decreased $1.5 million or 2.6% from December 31, 2008. Recent efforts by the federal government to stimulate housing demand in the face of the economic recession have lowered residential home mortgage rates and resulted in significantly increasing consumer real estate demand. However, given the low fixed rates and long terms of the loans being originated, the Company has sold most of its originated residential mortgage loans. This, along with accelerated prepayments from existing customers re-financing their homes, has resulted in decreased consumer real estate balances at March 31, 2009.
The Bank sells these fixed rate residential mortgages to the Federal National Mortgage Association (FNMA), while maintaining the servicing rights for those mortgages. During the three month period ended March 31, 2009, the Bank sold mortgages to FNMA totaling $4.1 million, as compared with $0.5 million during the three month period ended March 31, 2008. At March 31, 2009, the Bank had a loan servicing portfolio principal balance of $31.0 million upon which it earns servicing fees, as compared with $26.9 million at December 31, 2008.
For the three month period ended March 31, 2009 gross interest income that would have been reported on non-accruing loans and leases had they been current was $101 thousand, as compared to $10 thousand for the same period in 2008. There was $24 thousand and $10 thousand of interest income from non-accruing loans and leases included in net income for the three month periods ended March 31, 2009 and 2008.
Total deposits at March 31, 2009 were $460.0 million, reflecting a $56.1 million or 13.9% increase from December 31, 2008. Demand deposits at March 31, 2009 were $80.3 million, reflecting a $4.4 million or 5.7% increase from December 31, 2008. Demand deposit balances fluctuate day-to-day based on the high volume of transactions normally associated with the demand product. Average demand deposit growth is a better measure of sustained growth. Average demand deposits in the three month period ended March 31, 2009 were 1.1% lower than the fourth quarter of 2008, but 13.2% higher than the prior years first quarter. Much of the overall deposit growth in the quarter ended March 31, 2009 when compared with the prior year period is attributable to an increase in regular savings deposits of $29.1 million, or 18.9%, to $183.4 million. The Company introduced a new money market savings product in 2008 and much of the continued growth in regular savings is due to this product. NOW deposits decreased in the quarter ended March 31, 2009 by $1.3 million, or 12.1%, while muni-vest balances increased in the same quarter by $19.3 million, or 73.0%. The growth in muni-vest is due mainly to temporary seasonal municipal deposits. Time deposits were $141.1 million at March 31, 2009, reflecting a $4.6 million or 3.4% increase from December 31, 2008.
Read the The complete Report
