Evans Bancorp, Inc. (the “Company” or “Evans”) (NYSE Amex: 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, 2011.
HIGHLIGHTS OF THE 2011 SECOND QUARTER
- Core deposit growth continued in the second quarter with Demand, NOW and Savings deposit products gaining 4.9% (a 19.5% annualized growth rate), or $19.8 million.
- Core loans (defined as total loans and leases less national direct financing leases) increased 2.6% in the second quarter of 2011, or 10.3% annualized, to $532.5 million.
- Net income decreased to $1.0 million in the 2011 second quarter from $1.6 million in the second quarter of 2010, mostly due to a $0.7 million increase in the provision for loan and lease losses.
- Strong capital position with Total Risk-Based Capital ratio of 14.26% at June 30, 2011.
Net income was $1.0 million in the second quarter of 2011, down from net income of $1.6 million in the second quarter of 2010. The decrease in net income reflects a provision for loan and lease losses of $1.0 million in the second quarter of 2011, up $0.7 million from the provision recorded in the second quarter of 2010. The increase in provision is a result of new loan growth and newly identified deterioration in two commercial loans. Return on average equity was 5.90% for the second quarter of 2011, compared with 11.79% in the second quarter of 2010. Net income was $0.24 per diluted share in the 2011 second quarter and reflects a 0.65 million increase in weighted average outstanding shares when compared to the second quarter of 2010 as a result of the Company’s successful registered offering of common stock in May 2010. Net income was $0.47 per diluted share in the prior-year second quarter.