Evans Bank(US:EVBN)2023-10-29 16:00Loan and Credit Quality - As of September 30, 2023, the Allowance for Credit Losses (ACL) on loans totaled $21.8 million, a decrease from $22.2 million at January 1, 2023[111]. - Total gross loans were $1.7 billion at September 30, 2023, compared to $1.6 billion at September 30, 2022, reflecting a year-over-year increase[120]. - Residential real estate loans increased by $8 million, or 2%, to $444 million from September 30, 2022, while commercial real estate loans rose by $88 million, or 10%[120]. - Non-performing loans amounted to $27 million, or 1.60% of total loans outstanding, as of September 30, 2023, compared to $26 million, or 1.60%, at September 30, 2022[123]. - The criticized loan portfolio decreased to $76 million at September 30, 2023, down from $93 million at December 31, 2022[124]. - The Company recorded a $0.5 million provision for credit losses during the three months ended September 30, 2023, primarily due to loan growth[126]. - The provision for credit losses in Q3 2023 was $0.5 million, largely attributed to loan growth[143]. Investment and Securities - Total investment securities were $337 million at September 30, 2023, down from $371 million at December 31, 2022[129]. - The total net unrealized loss position of the available-for-sale investment portfolio was $77 million at September 30, 2023, compared to $64 million at December 31, 2022[131]. - Average investment securities and interest-bearing cash were 18% of average interest-earning assets in the third quarter of 2023, down from 22% in the third quarter of 2022[129]. Deposits and Borrowings - Total deposits increased by $34 million, or 2%, from December 31, 2022, to $1.8 billion as of September 30, 2023, but decreased by $68 million, or 4%, from September 30, 2022[133]. - Total borrowings decreased from $193 million at December 31, 2022, to $151 million at September 30, 2023, primarily due to growth in deposits[134]. - The Company had net short-term liquidity of $332 million as of September 30, 2023, compared to $209 million at December 31, 2022[162]. - The Company had the ability to draw up to $312 million from the FHLB as of September 30, 2023[158]. Financial Performance - Net income for Q3 2023 was $3.6 million, or $0.66 per diluted share, down from $4.9 million, or $0.90 per diluted share, in Q2 2023 and $5.9 million, or $1.06 per diluted share, in Q3 2022[139]. - Net income for the first nine months of 2023 was $14.4 million, or $2.62 per diluted share, down from $16.3 million, or $2.95 per diluted share, in the same period of 2022[140]. - Non-interest income for Q3 2023 was $5.6 million, up from $4.7 million in Q2 2023, but down from $5.8 million in Q3 2022[144]. - Non-interest expenses increased to $14.4 million in Q3 2023, a 2% increase from Q2 2023, but down 9% from Q3 2022[145]. - The GAAP efficiency ratio was 72.7% in Q3 2023, compared to 69.5% in Q2 2023 and 63.3% in Q3 2022[146]. - Net interest income for the first nine months of 2023 was $47.3 million, a 12% decrease from the same period in 2022[148]. - The net interest margin for Q3 2023 was 2.79%, a decline of 31 basis points from Q2 2023 and 93 basis points from Q3 2022[142]. - The net interest margin decreased to 3.12% in the first nine months of 2023, down 33 basis points from 3.45% in the same period of 2022[149]. Cost of Funds and Efficiency - Net interest income decreased by $1.4 million, or 9%, from Q2 2023 and by $4.9 million, or 26%, from Q3 2022, primarily due to higher interest expenses on interest-bearing liabilities[141]. - The cost of interest-bearing liabilities was 2.59% in Q3 2023, compared to 2.18% in Q2 2023 and 0.36% in Q3 2022[142]. - The return on average equity for Q3 2023 was 9.06%, compared to 12.25% in Q2 2023 and 14.15% in Q3 2022[139]. - The effective tax rate for Q3 2023 was 26.2%, compared to 22.0% in Q2 2023 and 25.2% in Q3 2022[147]. Shareholder Value - Book value per share was $27.52 at September 30, 2023, down from $29.12 at June 30, 2023[155].