Evans Bancorp Inc. (EVBN, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $35.08 million; its shares were traded at around $12.55 with a P/E ratio of 11.62 and P/S ratio of 0.86. The dividend yield of Evans Bancorp Inc. stocks is 3.19%. Evans Bancorp Inc. had an annual average earning growth of 6.7% over the past 5 years.
Consumer loans totaled $121.2 million at September 30, 2009, reflecting a $21.1 million or 21.1% increase from June 30, 2009 and a 23.6% increase from December 31, 2008. The balance of consumer loans acquired from Waterford was $19.3 million at September 30, 2009. Consumer real estate loans increased $12.4 million or 22.1% from June 30, 2009, and increased $11.9 million or 21.0% from December 31, 2008, to $68.7 million at September 30, 2009. The entire increase from June 30, 2009 was due to the purchase of consumer real estate loans from Waterford. Organic growth of consumer real estate balances during the quarter was flat. 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 increased 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 (excluding loans acquired from Waterford) at September 30, 2009 when compared with December 31, 2008.
The Bank sells these fixed rate residential mortgages to the FNMA, while maintaining the servicing rights for those mortgages. During the three month period ended September 30, 2009, the Bank sold mortgages to FNMA totaling $4.0 million, as compared with $0.4 million sold during the three month period ended September 30, 2008. During the nine month period ended September 30, 2009, the Bank sold mortgages to FNMA totaling $12.6 million, as compared to $1.8 million sold during the nine month period ended September 30, 2008. At September 30, 2009, the Bank had a loan servicing portfolio principal balance of $35.4 million upon which it earns servicing fees, as compared with $33.2 million at June 30, 2009 and $26.9 million at December 31, 2008.
For the three and nine month periods ended September 30, 2009, gross interest income that would have been reported on non-accruing loans and leases had they been current was $70 thousand and $287 thousand, respectively. For the three and nine month periods ended September 30, 2008, gross interest income that would have been reported on non-accruing loans and leases had they been current, was $8 thousand and $25 thousand, respectively. The year-over-year increase was due to the increase in total non-accruing loans and leases as depicted in the table above. There was $71 thousand and $200 thousand of interest income on non-accruing loans and leases included in net income for the three and nine month periods ended September 30, 2009. There was $3 thousand and $25 thousand of interest income on non-accruing loans and leases included in net income for the three and nine month periods ended September 30, 2008.
Total deposits at September 30, 2009 were $502.8 million, reflecting a $51.5 million or 11.4% increase from June 30, 2009 and a $98.8 million or 24.5% increase from December 31, 2008. Much of the increase in the quarter is due to deposits acquired from Waterford. Total deposits attributable to the Waterford acquisition were $49.1 million at September 30, 2009. Demand deposits at September 30, 2009 were $83.2 million, reflecting a $4.6 million or 5.3% decrease from June 30, 2009, but a $7.2 million or 9.5% 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, and therefore average demand deposit growth is a better measure of sustained growth. Average demand deposits during the three month period ended September 30, 2009 were 2.3% higher than the second quarter of 2009, and 10.3% higher than the prior years third quarter.
Much of the overall deposit growth in 2009 is attributable to an increase in regular savings deposits of $65.0 million, or 42.1%, to $219.3 million. There were $9.4 million in regular savings deposits from Waterford at September 30, 2009. The rest of the growth is attributable to the Companys premium retail money market savings product that was introduced in May 2008 and has continued to experience strong growth in 2009 as customers continue to gravitate toward liquidity in this low-rate environment. Time deposits were $155.2 million at September 30, 2009, reflecting a $26.9 million or 21.0% increase from June 30, 2009 and an $18.7 million or 13.7% increase from December 31, 2008. Given that time deposits at the former Waterford branch at September 30, 2009 totaled $38.2 million, organic time deposit growth for the rest of the Bank was negative when compared with time deposits at June 30, 2009 and December 31, 2008. As was just noted, in a low rate environment, customers prefer to keep their savings liquid rather than lock up their funds for extended periods of time at low rates.
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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 $35.08 million; its shares were traded at around $12.55 with a P/E ratio of 11.62 and P/S ratio of 0.86. The dividend yield of Evans Bancorp Inc. stocks is 3.19%. 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 $473.0 at September 30, 2009, reflecting a $53.8 million or 12.8% increase from June 30, 2009 and a $71.4 million or 17.8% increase from December 31, 2008. $40.3 million of the increase at September 30, 2009 is attributable to the Companys acquisition of Waterfords loan portfolio on July 24, 2009. Gross loans and leases are net of $11.1 million of unearned income on direct financing leases as of December 31, 2008. Commercial loans and leases totaled $357.3 million at September 30, 2009, reflecting a $33.1 million or 10.2% increase from June 30, 2009 and a $48.4 million or 15.7% increase from December 31, 2008. The commercial loans that were acquired from Waterford were $21.0 million at September 30, 2009. Growth in commercial real estate loans of $26.7 million for the third fiscal quarter and $56.5 million for the year to date was largely responsible for the increase in commercial loans and leases from June 30, 2009 and December 31, 2008, respectively, to September 30, 2009. The balance of commercial real estate loans acquired from Waterford at September 30, 2009 was $15.2 million.Consumer loans totaled $121.2 million at September 30, 2009, reflecting a $21.1 million or 21.1% increase from June 30, 2009 and a 23.6% increase from December 31, 2008. The balance of consumer loans acquired from Waterford was $19.3 million at September 30, 2009. Consumer real estate loans increased $12.4 million or 22.1% from June 30, 2009, and increased $11.9 million or 21.0% from December 31, 2008, to $68.7 million at September 30, 2009. The entire increase from June 30, 2009 was due to the purchase of consumer real estate loans from Waterford. Organic growth of consumer real estate balances during the quarter was flat. 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 increased 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 (excluding loans acquired from Waterford) at September 30, 2009 when compared with December 31, 2008.
The Bank sells these fixed rate residential mortgages to the FNMA, while maintaining the servicing rights for those mortgages. During the three month period ended September 30, 2009, the Bank sold mortgages to FNMA totaling $4.0 million, as compared with $0.4 million sold during the three month period ended September 30, 2008. During the nine month period ended September 30, 2009, the Bank sold mortgages to FNMA totaling $12.6 million, as compared to $1.8 million sold during the nine month period ended September 30, 2008. At September 30, 2009, the Bank had a loan servicing portfolio principal balance of $35.4 million upon which it earns servicing fees, as compared with $33.2 million at June 30, 2009 and $26.9 million at December 31, 2008.
For the three and nine month periods ended September 30, 2009, gross interest income that would have been reported on non-accruing loans and leases had they been current was $70 thousand and $287 thousand, respectively. For the three and nine month periods ended September 30, 2008, gross interest income that would have been reported on non-accruing loans and leases had they been current, was $8 thousand and $25 thousand, respectively. The year-over-year increase was due to the increase in total non-accruing loans and leases as depicted in the table above. There was $71 thousand and $200 thousand of interest income on non-accruing loans and leases included in net income for the three and nine month periods ended September 30, 2009. There was $3 thousand and $25 thousand of interest income on non-accruing loans and leases included in net income for the three and nine month periods ended September 30, 2008.
Total deposits at September 30, 2009 were $502.8 million, reflecting a $51.5 million or 11.4% increase from June 30, 2009 and a $98.8 million or 24.5% increase from December 31, 2008. Much of the increase in the quarter is due to deposits acquired from Waterford. Total deposits attributable to the Waterford acquisition were $49.1 million at September 30, 2009. Demand deposits at September 30, 2009 were $83.2 million, reflecting a $4.6 million or 5.3% decrease from June 30, 2009, but a $7.2 million or 9.5% 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, and therefore average demand deposit growth is a better measure of sustained growth. Average demand deposits during the three month period ended September 30, 2009 were 2.3% higher than the second quarter of 2009, and 10.3% higher than the prior years third quarter.
Much of the overall deposit growth in 2009 is attributable to an increase in regular savings deposits of $65.0 million, or 42.1%, to $219.3 million. There were $9.4 million in regular savings deposits from Waterford at September 30, 2009. The rest of the growth is attributable to the Companys premium retail money market savings product that was introduced in May 2008 and has continued to experience strong growth in 2009 as customers continue to gravitate toward liquidity in this low-rate environment. Time deposits were $155.2 million at September 30, 2009, reflecting a $26.9 million or 21.0% increase from June 30, 2009 and an $18.7 million or 13.7% increase from December 31, 2008. Given that time deposits at the former Waterford branch at September 30, 2009 totaled $38.2 million, organic time deposit growth for the rest of the Bank was negative when compared with time deposits at June 30, 2009 and December 31, 2008. As was just noted, in a low rate environment, customers prefer to keep their savings liquid rather than lock up their funds for extended periods of time at low rates.
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