Evans Bancorp Inc (EVBN) Reports Q3 2023 Net Income of $3.6 Million
Net income for Q3 2023 was $3.6 million, down from $4.9 million in Q2 2023 and $5.9 million in Q3 2022.
Net interest income decreased by 9% from the previous quarter and 26% from the same period last year.
Non-interest income increased by 18% from Q2 2023 but decreased by 4% from Q3 2022.
Non-interest expense increased by 2% from the previous quarter but decreased by 9% from the same period last year.
Evans Bancorp Inc (EVBN) released its earnings report for the third quarter ended September 30, 2023, on October 26, 2023. The company reported a net income of $3.6 million, a decrease from $4.9 million in the second quarter of 2023 and $5.9 million in the third quarter of 2022. The decline in net income was attributed to a decrease in net interest income, an increased provision for credit losses, and higher non-interest expense, partially offset by higher non-interest income.
Financial Performance
Net interest income for the third quarter was $14.3 million, down $1.4 million, or 9%, from the second quarter and $4.9 million, or 26%, from last years third quarter. This was mainly due to higher interest expense related to the increased cost of interest-bearing liabilities produced by competitive pricing on deposits. The provision for credit losses in the current quarter was largely due to loan growth.
Non-interest income increased by $0.9 million, or 18%, from the second quarter of 2023, but was down by $0.2 million, or 4%, from last years third quarter. The increase in non-interest income from the previous quarter was primarily due to the strength of insurance revenues, offset by decreases in deposit service charges and other income.
Non-interest expense increased by $0.2 million, or 2%, from the second quarter of 2023, but was down by $1.4 million, or 9%, from last years third quarter. The decrease in non-interest expense from the same period last year was largely due to lower incentive accruals and reduced staff expenses through consolidation of branches and back-office operations.
Balance Sheet Highlights
Total assets were $2.17 billion as of September 30, 2023, an increase of less than 1% since June 30, 2023, and were up 2% from $2.13 billion at September 30, 2022. The change from last years third quarter was due to an increase in loan balances of $78 million, or 5%, partially offset by a reduction in investment securities of $40 million, or 11%.
Total deposits of $1.81 billion increased $19 million, or 1%, from June 30, 2023, but decreased $68 million, or 4%, from the end of last years third quarter. The change from last years third quarter reflected deposit decreases in consumer savings, demand deposits, commercial savings, and brokered deposits, offset by higher consumer time deposits, NOW deposits, and municipal savings.
Capital Management
The Company has consistently maintained regulatory capital ratios measurably above the Federal well capitalized standard, including a Tier 1 leverage ratio of 9.40% at September 30, 2023 compared with 9.43% at June 30, 2023 and 9.00% at September 30, 2022. In October 2023, the Company paid a semi-annual cash dividend of $0.66 per common share. Cash dividends totaled $1.32 per common share during 2023, up 5% over 2022.
Explore the complete 8-K earnings release (here) from Evans Bancorp Inc for further details.
This article first appeared on GuruFocus.
