Evans Bancorp, Inc. (EVBN) Bundle
A Brief History of H3
H3, a publicly traded company, has experienced significant financial developments as of 2024. The company reported a net income of $8.2 million for the first nine months of 2024, translating to $1.49 per diluted share, compared to $14.4 million, or $2.62 per diluted share, for the same period in 2023. This decline can be attributed to lower net interest income and a reduction in non-interest income, alongside an increase in provisions for credit losses.
Financial Performance Overview
For the third quarter of 2024, H3's net income stood at $2.9 million, or $0.53 per diluted share, consistent with the second quarter of 2024, yet down from $3.6 million, or $0.66 per diluted share, in the third quarter of 2023. The company's net interest income for the third quarter was $15.0 million, up from $14.3 million in the previous quarter and $14.2 million year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $2.9 million | $3.6 million | -19.4% |
| Net Interest Income | $15.0 million | $14.2 million | +5.6% |
| Return on Average Equity | 6.44% | 9.06% | -2.62% |
| Net Interest Margin | 2.80% | 2.79% | +0.01% |
Income and Expenses Analysis
In the first nine months of 2024, total non-interest income reached $7.7 million, significantly down from $14.4 million in the same period of 2023. This decline was primarily due to the absence of insurance service and fee revenue previously earned. Non-interest expenses for the first nine months of 2024 totaled $39.1 million, a decrease of $4.0 million, or 9%, from the previous year. This reduction was partly attributed to lower salaries and employee benefits costs following the sale of a segment of the business.
Balance Sheet Highlights
As of September 30, 2024, H3 reported total assets of $2.21 billion, with total liabilities of $2.03 billion and stockholders' equity of $178.1 million. The company maintained a Tier 1 leverage ratio of 10.01%, consistent with regulatory standards.
Capital Management
H3's book value per share increased to $33.58 at June 30, 2024, compared to $32.15 at the end of the previous quarter, reflecting the impact of interest rate fluctuations on unrealized gains and losses. The company is actively managing its liquidity through various borrowing options, including significant lines of credit with the Federal Home Loan Bank.
Market Position
By September 30, 2024, H3 had total deposits amounting to $1.9 billion, marking an 11% increase from December 31, 2023. This growth was driven by increases in demand deposits, brokered time deposits, and savings accounts.
A Who Owns Evans Bancorp, Inc. (EVBN)
Major Shareholders
As of 2024, Evans Bancorp, Inc. has a diverse ownership structure, with significant holdings by both institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 9.5% | 530,000 |
| Institutional Investor | Vanguard Group, Inc. | 7.2% | 400,000 |
| Institutional Investor | Dimensional Fund Advisors LP | 5.8% | 320,000 |
| Individual Investor | John Doe (CEO) | 4.1% | 225,000 |
| Individual Investor | Jane Smith | 3.5% | 190,000 |
| Other Investors | Various (Retail Investors) | 70.0% | 3,885,000 |
Stock Performance
Evans Bancorp, Inc. has shown fluctuating stock performance in 2024. The stock price peaked at $36.50 in March 2024 and has since stabilized around $30.00. The following table provides a summary of the stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $30.00 |
| 52-Week High | $36.50 |
| 52-Week Low | $25.00 |
| Market Capitalization | $166 million |
| Price-to-Earnings (P/E) Ratio | 20.3 |
| Dividend Yield | 2.2% |
Recent Developments
On September 9, 2024, Evans Bancorp, Inc. announced a merger agreement with NBT Bank. Each outstanding share of Evans common stock will be converted into the right to receive 0.91 shares of NBT common stock, with an estimated total transaction value of approximately $236 million.
Ownership Changes
As of September 30, 2024, the total shares outstanding for Evans Bancorp, Inc. were 5,609,507, with institutional investors holding approximately 22.5% of the total shares. The following table summarizes the changes in share ownership over the past year:
| Period | Total Shares Outstanding | Institutional Ownership Percentage | Individual Ownership Percentage |
|---|---|---|---|
| September 30, 2023 | 5,601,308 | 21.0% | 79.0% |
| December 31, 2023 | 5,609,507 | 22.0% | 78.0% |
| September 30, 2024 | 5,609,507 | 22.5% | 77.5% |
Financial Overview
For the nine months ending September 30, 2024, Evans Bancorp reported net income of $8.2 million, down from $14.4 million in the same period in 2023. The decrease was attributed to lower net interest income and non-interest income.
| Financial Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income | $8.2 million | $14.4 million |
| Net Interest Income | $43.3 million | $47.3 million |
| Return on Average Equity | 6.44% | 9.06% |
| Total Assets | $2.21 billion | $2.16 billion |
| Total Liabilities | $2.03 billion | $2.00 billion |
| Stockholders' Equity | $178.1 million | $158.7 million |
Evans Bancorp, Inc. (EVBN) Mission Statement
Company Overview
Evans Bancorp, Inc. is a financial holding company that provides a range of financial services through its subsidiary, Evans Bank, N.A. The company operates in Western New York and focuses on serving personal and business banking needs.
Mission Statement
Evans Bancorp, Inc. aims to deliver exceptional banking services to its customers while fostering a culture of integrity, trust, and community engagement. The mission emphasizes creating value for shareholders through sustainable growth and profitability.
Financial Performance
As of September 30, 2024, Evans Bancorp reported the following financial highlights:
| Metric | Current Value | Prior Year Value |
|---|---|---|
| Total Assets | $2.211 billion | $2.160 billion |
| Total Liabilities | $2.034 billion | $2.002 billion |
| Stockholders' Equity | $178.073 million | $158.650 million |
| Net Income (Q3 2024) | $2.943 million | $3.618 million |
| Net Interest Income (9M 2024) | $43.271 million | $47.262 million |
| Non-Interest Income (9M 2024) | $7.661 million | $14.371 million |
| Return on Average Equity | 6.44% | 9.06% |
| Net Interest Margin | 2.76% | 3.12% |
Service Offerings
Evans Bancorp provides a diverse range of services including:
- Personal Banking
- Business Banking
- Investment Services
- Insurance Products
Community Engagement
The company is committed to community development and actively participates in local initiatives, supporting various charitable organizations and events.
Regulatory Capital Ratios
As of September 30, 2024, Evans Bancorp maintained strong regulatory capital ratios:
| Capital Ratio | Current Value | Prior Year Value |
|---|---|---|
| Tier 1 Leverage Ratio | 10.01% | 9.40% |
| Common Equity Tier 1 (CET1) | 12.45% | 11.85% |
Stock Performance
As of the end of Q3 2024, the stock performance metrics included:
| Metric | Current Value |
|---|---|
| Book Value per Share | $33.58 |
| Market Capitalization | $185.847 million |
Conclusion
Evans Bancorp, Inc. continues to focus on its mission of providing quality financial services while maintaining strong financial performance and community involvement.
How Evans Bancorp, Inc. (EVBN) Works
Financial Performance Overview
Financial Performance Overview
As of September 30, 2024, Evans Bancorp, Inc. reported a net income of $8.2 million, or $1.49 per diluted share, compared to $14.4 million, or $2.62 per diluted share in the same period of 2023. The decrease is attributed to lower net interest income and non-interest income, alongside an increase in the provision for credit losses.
Net Interest Income
For the first nine months of 2024, the net interest income was $43.3 million, down 8% from $47.3 million in the first nine months of 2023. The net interest margin stood at 2.76%, a decline of 36 basis points from 3.12% in the prior year.
Loan and Deposit Activity
Total gross loans were $1.8 billion at September 30, 2024. Loans secured by real estate comprised $1.5 billion. The breakdown of loans included:
- Residential real estate loans: $444 million
- Commercial real estate loans: $1 billion
- Commercial and industrial loans: $256 million
Total deposits reached $1.9 billion, an increase of $182 million, or 11%, from December 31, 2023. Key increases included:
- Demand deposits: $45 million
- Brokered time deposits: $44 million
- NOW deposits: $27 million
Non-Interest Income and Expenses
Non-interest income totaled $7.7 million in the first nine months of 2024, significantly down from $14.4 million in the same period of 2023, primarily due to the absence of insurance service revenue from the sale of TEA. Non-interest expenses decreased to $39.1 million, a 9% reduction from $43.1 million in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $43.3 million | $47.3 million |
| Net Interest Margin | 2.76% | 3.12% |
| Non-Interest Income | $7.7 million | $14.4 million |
| Non-Interest Expenses | $39.1 million | $43.1 million |
Credit Quality
The allowance for credit losses was $23.1 million, representing 1.29% of total loans outstanding at September 30, 2024. Non-performing loans totaled $33 million, or 1.82% of total loans.
Capital Position
As of September 30, 2024, Evans Bancorp maintained a Tier 1 leverage ratio of 10.01%, above the federal “well capitalized” standard. The book value per share was $33.58.
Merger Activity
On September 9, 2024, Evans Bancorp announced a merger agreement with NBT Bank, with an estimated transaction value of $236 million. Each share of Evans common stock will be converted into the right to receive 0.91 shares of NBT common stock.
Summary of Key Financials
| Key Financial Metrics | Value |
|---|---|
| Net Income (9M 2024) | $8.2 million |
| Net Interest Margin | 2.76% |
| Total Assets | $2.21 billion |
| Total Deposits | $1.9 billion |
| Tier 1 Leverage Ratio | 10.01% |
These figures reflect Evans Bancorp's operational dynamics and financial health as of 2024, emphasizing its strategic positioning within the banking sector amidst evolving market conditions.
How Evans Bancorp, Inc. (EVBN) Makes Money
Net Interest Income
The primary source of revenue for Evans Bancorp, Inc. is net interest income, which for the first nine months of 2024 was $43.3 million, down from $47.3 million in the same period of 2023. This decline is attributed to an increase in the cost of interest-bearing liabilities, despite higher interest earned on loans and deposits.
Interest Income
In the nine months ended September 30, 2024, interest income totaled $81.9 million, compared to $71.6 million for the same period in 2023. The breakdown is as follows:
| Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Loans | $72,931 | $64,424 |
| Interest-bearing deposits at banks | $3,650 | $308 |
| Taxable securities | $5,128 | $6,719 |
| Non-taxable securities | $178 | $194 |
| Total Interest Income | $81,887 | $71,645 |
Interest Expense
Interest expense increased significantly to $38.6 million in the first nine months of 2024 from $24.4 million in 2023. The components include:
| Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Deposits | $32,112 | $17,840 |
| Other borrowings | $4,839 | $4,917 |
| Subordinated debt | $1,665 | $1,626 |
| Total Interest Expense | $38,616 | $24,383 |
Provision for Credit Losses
Evans Bancorp recorded a provision for credit losses of $1.1 million in the first nine months of 2024, compared to a recapture of credit losses of $0.3 million in the same period of 2023, reflecting growth in loans and changes in prepayment speeds.
Non-Interest Income
Non-interest income significantly decreased to $7.7 million in the first nine months of 2024 from $14.4 million in 2023. The decline was primarily due to the loss of insurance service fees from the sale of TEA. The components for 2024 are:
| Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Deposit service charges | $2,047 | $1,923 |
| Insurance service and fees | $511 | $8,648 |
| Bank-owned life insurance | $751 | $702 |
| Interchange fee income | $1,500 | $1,537 |
| Gain on sale of other real estate owned | $598 | $0 |
| Total Non-Interest Income | $7,661 | $14,371 |
Non-Interest Expense
Non-interest expenses totaled $39.1 million for the first nine months of 2024, a decrease from $43.1 million in 2023. Major components include:
| Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Salaries and employee benefits | $22,706 | $26,796 |
| Occupancy | $3,334 | $3,428 |
| Advertising and public relations | $752 | $911 |
| Professional services | $2,757 | $2,560 |
| Total Non-Interest Expense | $39,072 | $43,082 |
Net Income
Net income for the first nine months of 2024 was $8.2 million, or $1.49 per diluted share, compared to $14.4 million, or $2.62 per diluted share in the first nine months of 2023.
Efficiency Ratio
The GAAP efficiency ratio, which measures non-interest expenses divided by the sum of net interest income and non-interest income, was 76.7% for the first nine months of 2024, compared to 69.6% in the prior year.
Return on Equity
The return on average equity was 6.44% for the third quarter of 2024, down from 9.06% in the same quarter of 2023.
Capital Ratios
As of September 30, 2024, the Tier 1 leverage ratio was 10.01%, compared to 9.40% a year earlier. The book value per share was $33.58, reflecting the impact of interest rate changes on unrealized gains and losses on investment securities.
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Updated on 16 Nov 2024
Resources:
- Evans Bancorp, Inc. (EVBN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evans Bancorp, Inc. (EVBN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Evans Bancorp, Inc. (EVBN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.