Evans Bank(EVBN) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $3.7 million, or $0.67 per diluted share, down from $10.2 million, or $1.85 per diluted share in Q4 2023[3] - Full year 2024 net income was $12.0 million, or $2.16 per diluted share, compared to $24.5 million, or $4.48 per diluted share in 2023[4] - Net income for the fourth quarter of 2024 was $3.7 million, an increase from $2.9 million in the third quarter[33] - Net income for Evans Bancorp in Q4 2024 was $3.7 million, a decrease of 51% compared to $11.95 million in Q4 2023[36] - The effective tax rate for the year was 16.2%, significantly lower than 29.4% in 2023[27] - Return on average total assets improved to 0.67% in the fourth quarter, compared to 0.52% in the third quarter[33] - Return on average total assets dropped to 0.54%, down from 1.14% in the prior year, reflecting a decline in profitability[36] - Return on average stockholders' equity fell to 6.65%, compared to 15.47% in 2023, highlighting a significant decrease in shareholder returns[36] Loan and Deposit Activity - Total loans increased by $63 million, or 4%, since December 31, 2023, with a strong loan pipeline of $76 million[6] - Total deposits rose by $148 million, or 9%, from the end of last year's fourth quarter, totaling $1.87 billion[20] - Average loans, net, increased to $1.76 billion in the fourth quarter, up from $1.74 billion in the third quarter[35] - Total deposits were $1.866 billion, down from $1.900 billion in the previous quarter[32] Interest Income and Expenses - Net interest income for Q4 2024 was $15.7 million, a 4% increase from Q3 2024, and a 13% increase year-over-year[8] - Net interest income decreased by 4% to $59.0 million, with a net interest margin of 2.81%, down 21 basis points from the previous year[24] - Interest income increased by 13% year-over-year, reaching $109.92 million, while interest expense rose by 43% to $50.95 million[36] - Net interest income after provision for credit losses was $14.6 million, compared to $14.5 million in the previous quarter[33] - The net interest margin for Q4 2024 was 2.96%, up 16 basis points sequentially and 21 basis points year-over-year[9] - The net interest margin improved to 2.96% in the fourth quarter, compared to 2.80% in the third quarter[35] - Net interest margin decreased to 2.81%, down from 3.02% in the previous year, indicating tighter margins[36] Non-Interest Income and Expenses - Non-interest income fell to $11.0 million in 2024, down from $32.9 million in 2023, primarily due to a $20.2 million gain on the sale of the insurance agency in the prior year[26] - Total non-interest income decreased by 67% to $10.96 million, primarily due to a 100% decline in gain on sale of insurance agency and investment securities[36] - Non-interest expense decreased by $6.0 million to $53.4 million, with a GAAP efficiency ratio of 76.40%, up from 63.09% in 2023[27] - The efficiency ratio was 75.55% in the fourth quarter, slightly up from 75.32% in the third quarter[33] - The efficiency ratio increased to 76.40%, compared to 63.09% in the previous year, indicating reduced operational efficiency[36] Credit Losses and Asset Quality - The provision for credit losses in Q4 2024 was $1.1 million, primarily due to a specific reserve on a non-performing loan[10] - Provision for credit loss was $2.2 million, with a non-performing loans ratio of 1.14%, improved from 1.59% in 2023[25] - Provision for credit losses surged by 12,322%, amounting to $2.24 million, indicating a significant increase in expected credit losses[36] - Total non-performing loans decreased to $20.3 million from $32.6 million in the previous quarter[32] Assets and Capital Ratios - Total assets were $2.19 billion as of December 31, 2024, a decrease of $93 million, or 4%, since September 30, 2024[18] - Total assets as of December 31, 2024, were $2.187 billion, a decrease from $2.280 billion in the previous quarter[32] - The Company's Tier 1 leverage ratio was 10.37% at December 31, 2024, maintaining regulatory capital ratios above the "well capitalized" standard[22] - The Tier 1 risk-based capital ratio was 13.63%, slightly down from 13.80% in the previous year[32] Merger Activity - The merger with NBT Bancorp Inc. was approved by Evans shareholders, with an aggregate transaction value of approximately $236 million[7]