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 fourth quarter and year ended December 31, 2011.
HIGHLIGHTS OF THE 2011 FOURTH QUARTER AND YEAR-END
- Net income for the quarter increased $0.9 million, or 176.4%, to $1.3 million, or $0.33 per diluted share compared with $0.5 million, or $0.12 per diluted share in 2010.
- Record results achieved in 2011 with net income of $6.1 million, or $1.49 per diluted share
- Return on average equity improved to 9.17% in 2011 compared with 8.35% in 2010
- Core loans (defined as total loans and leases less direct financing leases) increased 3.0% in the fourth quarter of 2011, or 11.8% annualized, to $577.4 million
- Core deposits grew in the fourth quarter with Demand, NOW, and Savings deposits gaining 3.4%, or an annualized growth rate of 13.7%
- Capital position remains strong with Total Risk-Based Capital ratio of 14.03% at December 31, 2011
Net income grew to $1.3 million, or $0.33 per diluted share, in the fourth quarter of 2011 compared with net income of $0.5 million, or $0.12 per diluted share, in the fourth quarter of 2010. The improvement in net income reflected a combination of higher net interest income and lower provision for loan and lease losses. Growth in net-interest income resulted from a stabilized margin combined with expanded interest earning assets, while the $0.6 million reduction in the provision for loan and lease losses to $0.8 million in the fourth quarter of 2011, as compared to the fourth quarter of 2010, was driven by improvements in the Company’s declining leasing portfolio. Due to improving credit quality trends in the leasing portfolio, the Company released $0.2 million in provision in the 2011 fourth quarter, whereas for the prior-year period, $0.4 million in provision was recorded. The return on average equity expanded to 7.77% for the fourth quarter of 2011, compared with 3.00% in the fourth quarter of 2010.