Evans Bank(US:EVBN)2024-04-30 21:01Financial Performance - Net income for the first quarter of 2024 was $2.3 million, or $0.42 per diluted share, a decrease of 77.6% from $10.2 million in the fourth quarter of 2023 and a decrease of 60.3% from $5.8 million in the first quarter of 2023[4]. - Evans Bancorp reported a net income of $2.3 million for the first quarter of 2024, compared to $5.8 million in the same quarter of 2023, reflecting a decrease of approximately 60% year-over-year[34]. - Non-interest income totaled $2.3 million, down $16.3 million from the sequential quarter, primarily due to the absence of a $20.2 million gain on the sale of TEA recognized in the fourth quarter of 2023[12]. - Evans Bancorp's total non-interest income for Q1 2024 was $2.27 million, a significant drop from $18.55 million in Q4 2023, primarily due to a loss on the sale of investment securities[34]. Loan and Deposit Growth - Total loan balances increased by $63 million, or 4%, year-over-year, reaching $1.7 billion, with a robust loan pipeline of approximately $95 million[6]. - The bank's total deposits rose to $1.89 billion, an increase of 10% from $1.72 billion in the previous quarter[33]. - Average net loans increased to $1,703.32 million, up from $1,641.16 million in the first quarter of 2023, representing a growth of 3.8% year-over-year[36]. Interest Income and Margin - Net interest income was $13.9 million, flat compared to the fourth quarter of 2023, but down $3.4 million, or 20%, from the first quarter of 2023 due to higher interest expenses[7]. - Interest income for Q1 2024 was $25.37 million, up from $23.37 million in Q1 2023, reflecting a year-over-year increase of approximately 8.6%[34]. - The net interest margin for the first quarter of 2024 was 2.79%, an increase of 4 basis points from the previous quarter but a decrease of 67 basis points from the prior-year period[8]. - The net interest margin improved to 2.79% compared to 2.75% in the previous quarter, indicating a positive trend in interest income[36]. Asset Management - Total assets increased by $151 million, or 7%, since December 31, 2023, reaching $2.26 billion as of March 31, 2024[20]. - Total assets increased to $2.26 billion as of March 31, 2024, up from $2.15 billion a year earlier, representing a growth of about 5%[33]. - Total assets decreased to $2,120.83 million from $2,167.25 million in the first quarter of 2023, a decline of 2.1%[36]. Capital Ratios - The Tier 1 leverage ratio was 10.52% at March 31, 2024, compared to 10.37% at December 31, 2023, and 9.13% at March 31, 2023, indicating strong capital management[24]. - The Tier 1 risk-based capital ratio stood at 13.63% as of March 31, 2024, compared to 12.04% a year prior, indicating improved capital strength[33]. - The company continues to focus on maintaining a strong capital position with stockholders' equity rising to $176.96 million from $154.99 million in the first quarter of 2023[36]. Efficiency and Expenses - The Company's GAAP efficiency ratio was 79.92% in the first quarter of 2024, compared to 50.2% in the fourth quarter of 2023 and 67.6% in the first quarter of 2023[17]. - Non-interest expenses decreased by $3.4 million from the previous quarter to $12.9 million, and decreased by $1.6 million from the first quarter of 2023[14]. - The efficiency ratio for Q1 2024 was reported at 79.92%, significantly higher than 50.16% in the previous quarter, indicating increased operational costs[34]. Asset Quality - Non-performing loans as a percentage of total loans were 1.62% for Q1 2024, up from 1.45% in Q1 2023, suggesting a slight deterioration in asset quality[33]. - The yield on loans increased to 5.56% from 5.16% in the first quarter of 2023, indicating improved loan performance[36]. Shareholder Value - The bank's book value per share decreased to $31.62 from $32.40 in the previous quarter, indicating a decline in shareholder equity value[33].