FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended March 31, 1996
Commission File Number 0-10275
EVERGREEN BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 36-3114735
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
237 GLEN STREET, GLENS FALLS, NEW YORK 12801
(Address of principal executive offices)
Registrant's telephone number, including area code:
(518) 792-1151
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [ x ] No [ ]
Indicate the number of shares outstanding of each Issuer's classes of common
stock, as of the latest practicable date:
Class of Common Stock Number of Shares Outstanding
as of April 30,
$3.33 1/3 Par Value 4,643,606
INDEX
Page No.
PART I FINANCIAL INFORMATION
Item 1 Financial Statements (unaudited):
Consolidated Statements of Income for the Three
Months Ended March 31, 1996, and 1995 1
Consolidated Statements of Financial Condition
as of March 31, 1996, and December 31, 1995 2-3
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1996, and 1995 4-5
Notes to Consolidated Interim Financial Statements 6
Report of Independent Auditors 7
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operation 8-15
PART II OTHER INFORMATION
Item 1 Legal Proceedings - None
Item 2 Changes in Securities - None
Item 3 Defaults Upon Senior Securities - None
Item 4 Submission of Matters to a Vote of Security Holders -
Annual Meeting of Shareholders
See Attached Item 4 - Matters
Item 5 Other Information - None
Item 6(a) Exhibits - The following exhibits are submitted herewith:
Exhibit 11 - Computation of Net Income Per Share
Exhibit 27 - Financial Data Schedule
Item 6(b) Reports on Form 8-K - None
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(EXCEPT PER SHARE DATA)
<CAPTION>
FOR THE THREE MONTHS
ENDED March 31,
1996 1995
<S> <C> <C>
(UNAUDITED)
Interest Income:
Interest and Fees on Loans $13,618 $12,895
Interest on U.S. Government & Agency Obligations 2,916 2,485
Interest on State & Municipal Obligations 330 504
Interest on Other Bonds, Notes, & Debentures 126 141
Interest on Federal Funds Sold & Bank Deposits 209 49
Total Interest Income 17,199 16,074
Interest Expense:
Interest on Deposits:
Regular Savings, NOW and Money Market
Deposit Accounts 2,345 2,357
Other Time 4,460 3,576
Interest on Short-Term Borrowings 43 101
Interest on Long-Term Debt 418 173
Total Interest Expense 7,266 6,207
Net Interest Income 9,933 9,867
Provision for Loan Losses 360 540
Net Interest Income After Provision for Loan
Losses 9,573 9,327
Other Income:
Trust Department Income 549 673
Service Charges on Deposit Accounts 698 645
Net Gains on Security Transactions - -
Other 328 360
Total Other Income 1,575 1,678
Other Expenses:
Salaries and Employee Benefits 3,820 3,724
Net Occupancy Expense 548 494
Equipment Expense 486 465
FDIC Insurance 1 468
Professional Services 279 345
Data Processing 623 486
Supplies and Printing 213 321
Advertising 219 204
Postage 154 128
Loss on Sale and Writedown of OREO 117 281
Other 915 1,043
Total Other Expenses 7,375 7,959
Income Before Taxes 3,773 3,046
Applicable Income Taxes 1,394 1,014
Net Income $ 2,379 $ 2,032
Earnings Per Common Share:
Average Shares Outstanding 4,661,000 in 1996 and
4,748,000 in 1995
Net Income Per Share $ .51 $ .43
</TABLE>
See accompanying notes to consolidated interim financial statements.
<TABLE>
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
<CAPTION>
3/31/96 12/31/95
<S> <C> <C>
(UNAUDITED)
Assets
Cash and Cash Equivalents:
Cash and Due From Banks $ 41,277 $ 31,021
Federal Funds Sold 25,500 12,600
Total Cash and Cash Equivalents 66,777 43,621
Securities:
Securities Available For Sale (Amortized
cost of $177,857 and $189,995 at 3/31/965
and 12/31/95, respectively) 177,973 190,785
Securities Held to Maturity (Fair value
of $22,420 and $24,515 at 3/31/96 and
12/31/95, respectively) 21,233 23,128
Total Securities 199,206 213,913
Loans:
Commercial 232,308 230,771
Mortgage 251,716 247,183
Installment 134,696 120,654
Other 764 429
Total Loans 619,484 599,037
Less:
Allowance for Loan Losses (12,276) (12,115)
Unearned Income on Loans (5,924) (6,839)
Loans, net 601,284 580,083
Bank Premises and Equipment 13,430 13,694
Other Real Estate Owned 3,795 3,784
Other Assets 17,061 16,328
Total Assets $901,553 $871,423
Liabilities
Deposits:
Demand $ 86,815 $ 97,380
Regular Savings, Now Accounts and Money
Market Deposit Accounts 354,775 340,218
Certificates of Deposit over $100,000 83,173 70,614
Other Time 253,969 242,012
Total Deposits 778,732 750,224
Federal Funds Purchased and Other Short
Term Borrowings 3,841 3,260
Long-Term Debt 23,229 23,475
Accrued Taxes and Other Liabilities 12,575 11,419
Total Liabilities 818,377 788,378
Stockholders' Equity
Common Stock $3.33 1/3 Par Value: Authorized
20,000,000 Shares Issued 4,816,983 at March
31,1996 and 4,810,983 at December 31, 1995 16,056 16,036
Surplus 6,769 6,680
Undivided Profits 64,508 63,065
Excess Market Over Cost of Securities
Available For Sale Net of Deferred Tax 69 474
Treasury Stock (174,769 shares at March 31, 1996
and 122,268 shares at December 31, 1995) (3,418) (2,243)
Common Stock Subscribed by ESOP (808) (967)
Total Stockholders' Equity 83,176 83,045
Total Liabilities and Stockholders' Equity $901,553 $871,423
</TABLE>
See accompanying notes to consolidated interim financial statements.
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOW
(DOLLARS IN THOUSANDS)
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 1996 1995
<S> <C> <C>
(Unaudited)
Cash Flows from Operating Activities:
Net Income . . . . . . . . . . . . . . . . . . . . . . $ 2,379 $ 2,032
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Net Change in Unearned Loan Fees. . . . . . . . . . 15 5
Net Change in Other Assets and Other Liabilities. . 809 828
(Increase)\Decrease in Deferred Tax Benefit . . . . (117) 300
Loss on Write-Down of Other Real Estate . . . . . . 108 5
Gain on Disposition of Assets . . . . . . . . . . . (7) -
Depreciation. . . . . . . . . . . . . . . . . . . . 384 364
Provision for Loan Losses . . . . . . . . . . . . . 360 540
Amortization of Premiums & Accretion of
Discounts on Securities, Net . . . . . . . . 87 (63)
Net Cash Provided By Operating Activities . . . . 4,018 4,011
Cash Flows From Investing Activities:
Proceeds From:
Maturities of Securities Available for Sale. . . . . 16,093 5,438
Maturities of Securities Held to Maturity. . . . . . 1,885 1,920
Purchases of Securities Available for Sale . . . . . . (4,032) (81)
Proceeds From Sales of Loans . . . . . . . . . . . . . 725 598
Change in Credit Card and Check Overdraft Receivables. (221) 6
Proceeds From Sales of Other Real Estate . . . . . . . 152 517
Net Increase in Loans. . . . . . . . . . . . . . . . . (22,351) (5,108)
Capital Expenditures . . . . . . . . . . . . . . . . . (113) (316)
Net Cash (Used)\Provided By Investing Activities (7,862) 2,974
Cash Flows From Financing Activities:
Net Increase in Deposits . . . . . . . . . . . . . . . 28,508 3,867
Net Increase in Short-Term Borrowings. . . . . . . . . 581 9,473
Payments on Long Term Debt . . . . . . . . . . . . . . (87) (39)
Proceeds From Issuance of Common Stock . . . . . . . . 109 62
Payments for Purchase of Treasury Shares . . . . . . . (1,175) -
Dividends Paid . . . . . . . . . . . . . . . . . . . . (936) (475)
Net Cash Provided By Financing Activities 27,000 12,888
Net Increase in Cash and Cash Equivalents. . . . . . . 23,156 19,873
Cash and Cash Equivalents at Beginning of Year . . . . 43,621 34,592
Cash and Cash Equivalents at End of Quarter. . . . . . $ 66,777 $ 54,465
Supplemental Disclosure of Cash Flows:
Interest Paid. . . . . . . . . . . . . . . . . . . . . $ 7,225 $ 5,889
Taxes Paid . . . . . . . . . . . . . . . . . . . . . . 21 20
</TABLE>
Supplemental Schedule of Non-Cash Investing and Financing Activities:
Certain properties which were foreclosed upon were transferred from loans to
other real estate in the amount of $271,000 and $545,000 during the three
months ended March 31, 1996 and 1995, respectively.
The Company borrowed $1,600,000 which was used to subscribe for common stock
of the Company in 1990. Payments were made on the ESOP loan in the amount of
$159,000 and $153,000 during the three months ended March 31, 1996 and 1995
respectively.
As a result of the adoption of Statement of Financial Accounting Standards
No. 115, securities available for sale are recorded at fair value. The
unrealized gain on these securities was $116,000 at March 31, 1996. The
adjustment to stockholders' equity for the unrealized gain was $69,000, net
of deferred income tax expense of $47,000.
At March 31, 1995 these securities had an unrealized loss of $3,599,000. The
adjustment to stockholders' equity net of to the deferred tax benefit of
$1,424,000, was $2,135,000.
See accompanying notes to consolidated interim financial statements.
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
1. Financial Statement Presentation
The accompanying consolidated financial statements consists of Evergreen
Bancorp, Inc. ("the Company") and the financial statements of its wholly
owned subsidiary, Evergreen Bank, N.A. The unaudited consolidated interim
financial statements have been prepared according to the rules of the
Securities and Exchange Commission. In the opinion of the Company, the
accompanying unaudited consolidated interim financial statements contain all
adjustments necessary to present fairly the financial position as of March
31, 1996, the results of operations for the three months ended March 31, 1996
and 1995 and cash flows for the three months ended March 31, 1996 and 1995.
All adjustments are of a normal recurring nature. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed
or omitted pursuant to rules and regulations applicable to interim financial
statements.
The accompanying interim consolidated financial statements should be read in
conjunction with the Evergreen Bancorp, Inc. consolidated year-end financial
statements, including notes thereto, which are included in the Evergreen
Bancorp, Inc. 1995 Annual Report and Form 10-K.
2. Earnings Per Share
Earnings per share is calculated as net income divided by average shares
outstanding. Average shares outstanding for March 31, 1996, and 1995, takes
into consideration a reduction to issued shares by Treasury Stock held,
weighted by the number of days in the quarter such stock is held.
3. Payment of Dividends.
The Registrant is a legal entity separate and distinct from its bank
subsidiary. The principal source of cash flow of the Registrant, including
cash flow to pay dividends to its stockholders, is dividends from Evergreen
Bank, N.A.. The subsidiary bank is required to meet various legal
requirements prior to the payment of dividends to the Company. Without the
payment of dividends from Evergreen Bank, N.A. the Company would
not be able to pay dividends to its stockholders.
Independent Auditors' Review Report
The Board of Directors and Stockholders
Evergreen Bancorp, Inc.:
We have reviewed the consolidated statement of financial condition of
Evergreen Bancorp, Inc. and subsidiaries as of March 31, 1996 and the related
consolidated statements of income for the three-month periods ended March 31,
1996 and 1995, and the consolidated statements of cash flows for the
three-month periods ended March 31, 1996 and 1995. These consolidated
financial statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated statement of financial condition of Evergreen
Bancorp, Inc. and subsidiaries as of December 31, 1995, and the related
consolidated statements of income, changes in stockholders' equity, and cash
flows for the year then ended (not presented herein); and in our report dated
January 26, 1996, we expressed an unqualified opinion on those consolidated
financial statement. In our opinion, the information set forth in the
accompanying consolidated statement of financial condition as of December 31,
1995, is fairly presented, in all material respects, in relation to the
consolidated statement of financial condition from which it has been derived.
/s/ KPMG PEAT MARWICK, LLP
Albany, New York
May 10, 1996
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL REVIEW
The principal source of earnings for the Company is its single banking
subsidiary, Evergreen Bank, N.A. All discussions herein refer to the banking
activities of the Company's banking subsidiary unless otherwise noted.
SUMMARY OF RESULTS OF OPERATION
Net income for the quarter ended March 31, 1996, was $2,379,000 compared to
$2,032,000 for the same quarter last year. This represents an increase of
$347,000 or 17.1%. The primary reasons for the increase from the first
quarter of 1995 were a decrease of 33.3% in the loan loss provision and a
7.3% decrease in other operating expense. These changes more than offset a
6.1% decrease in other operating income. As a result of the changes noted,
pretax income increased $727,000 or 23.9% but was reduced by increased income
tax expenses of $380,000, or 37.5%. Net income per share for the quarter
ended March 31, 1996, was $.51 compared to $.43 per share for the March 31,
1995 quarter. This represents an increase of 18.6%. The annualized return on
average assets for the first quarter is 1.09% compared to .99% for the first
quarter last year. The annualized return on average stockholders' equity for
the first quarter of 1996 was 11.5% as compared to 10.9% for the same period
in 1995. The increase in the returns on average assets and stockholders'
equity are due primarily to the increased level of net income.
NET INTEREST INCOME
Net interest income for the first quarter of 1996 was $9,937,000 compared to
$9,867,000 for the same period of 1995, an increase of $66,000. On a taxable
equivalent basis, net interest income was $10,138,000 for the quarter ended
March 31, 1996 compared to $10,181,000 for the quarter ended March 31, 1995.
This represents a decrease of $43,000 or .4%. The decrease in net interest
income on a taxable equivalent basis resulted primarily from a decrease in
the net interest margin as rates paid on costing liabilities rose 41 basis
points while rates received on earning assets remained flat. The increase in
rates paid on costing liabilities was a result of a continued shift in
balances out of low cost core accounts and into higher priced time deposits
as well as additional growth in the time deposit balances. The decrease in
net interest income due to the decrease in margin was almost completely
offset by an increase in the volume of earning assets of $40,837,000 or 5.2%
over the same period in 1995.
The increase in average earning assets was concentrated in taxable loans,
taxable securities and Fed Funds sold as the year to year increase in these
average balances was $23,736,000, $16,714,000 and $12,539,000, respectively.
Average earning asset increases were funded by increases in interest bearing
liabilities of $33,049,000 or 5.1%.
Average interest bearing liabilities increases were concentrated in time
deposits which increased $37,314,000 and long-term debt which increased
$12,966,000. Other sources of funding of average earning assets included a
decrease in other non-earning assets of $7,461,000, and increases in demand
deposits, other liabilities and stockholders equity of $2,740,000, $2,211,000
and $4,379,000, respectively.
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses represents amounts available for future credit
losses and reflects management's ongoing detailed review of certain
individual credits, as well as analysis of the historic net charge off
experience of the portfolio, an evaluation of current and anticipated
economic conditions, peer group statistics and other pertinent factors. Based
on these analyses the Company believes that the allowance for loan losses is
adequate.
Loans (or portions thereof) deemed uncollectable are charged against the
allowance, while recoveries of amounts previously charged off are added to
the allowance. Provisions for loan losses charged to earnings are added to
the allowance. Amounts are charged off once the probability of loss has been
determined, with consideration given to factors such as the customer's
financial condition, underlying collateral and guarantees, and general and
industry economic conditions.
The Company's allowance for loan losses at March 31, 1996, has increased
$161,000 to $12,276,000 from December 31, 1995. As a percent of total loans,
net of unearned income, the allowance was approximately 2.0% at March 31,
1996. The allowance represents approximately 212.5% of the non-performing
loans at quarter end. The provision for loan losses for the quarter ended
March 31, 1996 was $360,000 as compared to $540,000 for the first quarter of
1995. The reduced provision, on a quarter to quarter comparison, is
indicative of the significant and continued reduction in non-performing loans
from the levels of the previous year, and an improvement to the overall
credit quality of the portfolio from that time. Were these trends to reverse,
additional provisions might be required.
The following table presents information concerning non-performing loans and
other real estate;
<TABLE>
3/31/96 12/31/95
<S> <C> <C>
(Dollars In Thousands)
Non-Accrual $ 4,268 $ 4,571
Past Due 90 Days 1,371 1,203
Restructured 137 138
Total Non-Performing
Loans $ 5,776 $ 5,912
Other Real Estate $ 3,795 $ 3,784
</TABLE>
The majority of the Company's non-performing loans consist of commercial and
commercial real estate loans. There is no distinct concentration as to type
of borrower within these classifications.
OTHER INCOME AND EXPENSE
Other income for the three months ended March 31, 1996, was $1,575,000,
compared to $1,678,000 for the same quarter last year, a decrease of $103,000
or 6.1%. This decrease was largely due to a decrease in trust income of
$124,000 to $549,000. The largest source of other income continues to be
service charges. Service charges increased $53,000 to $698,000 from $645,000
for the same period of the prior year. This increase is largely due to
overall deposit growth and enhanced collection efforts.
Other expense for the three months ended March 31, 1996 was $7,375,000,
compared to $7,959,000 for the first three months last year. This represents
a decrease of $584,000 or 7.3% Salaries and benefits continue to represent
the largest portion of other expense with an increase of $96,000 or 2.6%.
This increase is principally due to merit increases.
FDIC insurance was $1,000 for the first quarter of 1995 as compared to
$468,000 for the same quarter last year. This is a result of the FDIC
determining, late in 1995, that insurance premiums charged to members of the
Bank Insurance Fund, for the current period, could be further reduced or
eliminated based on the full capitalization of the Fund. Data processing
costs were $623,000 for the first quarter, compared to $486,000 for the same
period a year ago, an increase of $137,000, or 28.2%. This increase is a
result of out-sourcing the items processing function in the fourth quarter of
1995. Professional services and loss on sale of OREO declined $66,000 and
$164,000, respectively from the same quarter of the prior year due to
significantly lower non-performing asset balances.
INCOME TAX EXPENSE
Income tax expense for the three months ended March 31, 1996, was $1,394,000
as compared to $1,014,000 for the three months ended March 31, 1995, an
increase of $380,000 or 37.5%. The effective income tax rate for the first
quarter of this year was 36.9% as compared to 33.3% for the same quarter last
year. This increase in the effective income tax rate is attributed to lower
relative levels of income derived from tax exempt sources.
CAPITAL AND LIQUIDITY
At March 31, 1996, stockholders' equity was $83,176,000 as compared to
$83,045,000 at December 31, 1995, an increase of $131,000 or .2%. The
increase in stockholders' equity is primarily a result of the retention of
earnings of $1,443,000, stock issuance of $109,000 and a reduction of the
ESOP balance of $159,000. These were offset by treasury share purchases of
$1,175,000 and a change in the valuation of securities available for sale,
net of deferred tax benefit of $405,000.
The following table sets forth the Company's risk based capital ratios as of
March 31, 1995 and the minimum regulatory guidelines;
<TABLE>
Evergreen Minimum
Risk-Based Bancorp, Inc. Regulatory
Ratios March 31, 1996 Guidelines
<CAPTION>
<S>
<C> <C>
Leverage Ratio 9.2 % 3.0 %
Tier 1 13.8 % 8.0 %
Total Capital 15.0 % 4.0 %
</TABLE>
Average federal funds sold for the three months ended March 31, 1996 was
$15,479,000 compared to $2,940,000 for the three months ended March 31, 1995.
Net cash provided by operating activities was $4,018,000 for the first
quarter of 1996 as compared to net cash provided of $4,011,000 for the three
months ended March 31, 1995. Net cash used by investing activities was
$7,862,000 for the first quarter of 1996 as compared to net cash provided of
$2,974,000 for the same period last year. The change of $10,836,000 resulted
primarily from increased loan originations. Net cash provided by financing
activities was $27,000,000 for the first quarter of 1996 as compared to
$12,888,000 provided by financing activities for the first quarter of 1995.
The increase in cash provided by financing activities resulted primarily from
an increase in deposits in the other time deposit category. The level of cash
and cash equivalents was $66,777,000 at March 31, 1996 compared to
$54,465,000 at March 31, 1995.
Evergreen Bank, N.A. is the principal source of funds to the Company and, if
it can not pay dividends to the Company, the Company will be unable to pay
dividends to its shareholders.
Rate Volume Analysis
For the purposes of the following analysis, Securities Available for Sale are
stated at average amortized cost and Stockholders' Equity is unadjusted for
the effects of SFAS No. 115.
Non-accrual loans are included in the analysis and the average balance of
these loans is deemed immaterial.
Portions of income earned on certain Commercial Loans, US Government
Obligations and Obligations of State and Political Subdivisions are exempt
from Federal and/or State taxation. Appropriate adjustments have been made to
reflect the equivalent amount of taxable income that would have been
necessary to generate an equal amount of after tax income. The taxable
equivalent adjustment is based on a marginal Federal income tax rate of 35.0%
in 1995 and 1994 along with a marginal State income tax rate of 9.225% for
1996 and 9.625% for 1995.
The following table sets forth the dollar amounts of interest income (on a
taxable equivalent basis) and interest expense and changes therein resulting
from changes in volume and changes in rate. The change in interest due to
both rate and volume has been allocated to change due to volume and change
due to rate based on the percentage relationship of such variances to each
other.
<TABLE>
Analysis of Variance in Net Interest Income Due to Volume and Rates
<CAPTION>
For the three months ended
March 31, 1996 VS March 31, 1995
INCREASE / (DECREASE) TOTAL
DUE TO CHANGE IN INCREASE/
VOLUME RATE (DECREASE)
<S> <C> <C> <C>
Interest Earned:
Loans
Taxable $ 636 $ 84 $ 720
Tax-Exempt (16) (15) (31)
Investment Securities
Taxable 287 107 394
Tax-Exempt (259) 32 (227)
Federal Funds Sold 169 (4) 165
Interest-Bearing Deposits (4) (1) (5)
Changes in Total Interest
Income 813 203 1,016
Less Interest Expense Incurred:
Regular Savings, NOW and MMDAs (83) 71 (12)
Time Deposits 519 365 884
Short-Term Borrowings (44) (14) (58)
Long Term Debt 234 11 245
Changes in Total Interest
Expense 626 433 1,059
Changes in Net Interest
Income $ 187 $ (230) $ (43)
</TABLE>
<TABLE>
Average Balances For The Three Months Ended March 31, 1996
<CAPTION>
Interest Average
Average Income/ Yield/
Balance Expense Rate
<S> <C> <C> <C>
Assets:
Loans
Taxable $586,462 $13,402 9.19%
Tax Exempt 15,331 307 8.06%
Securities
Taxable 193,111 3,157 6.58%
Tax Exempt 13,552 329 9.77%
Federal Funds Sold 15,479 208 5.40%
Interest Bearing Deposits
with Banks 82 1 4.25%
Total Earning Assets 824,017 17,404 8.49%
Allowance for Loan
Losses (12,173)
Cash and Due from Banks 29,643
Other Non-Earning Assets 32,789
Total Assets $874,276
Liabilities and
Stockholders' Equity:
Regular Savings, NOW
and MMDAs $339,857 2,345 2.78%
Time Deposits 320,217 4,460 5.60%
Short-Term Borrowings 3,409 43 5.06%
Long Term Debt 23,266 418 7.22%
Total Interest
Bearing Liabilities 686,749 7,266 4.26%
Demand Deposits 92,397
Other Liabilities 12,184
Stockholders' Equity 82,946
Total Liabilities and
Stockholders' Equity $874,276
Net Interest Income (Tax
Equivalent Basis) 10,138
Tax Equivalent Adjustment (205)
Net Interest Income $ 9,933
Net Interest Rate Spread 4.23%
Net Interest Margin 4.95%
</TABLE>
<TABLE>
Average Balances For The Three Months Ended March 31, 1995
<CAPTION>
Interest Average
Average Income/ Yield/
Balance Expense Rate
<S> <C> <C> <C>
Assets:
Loans
Taxable $562,726 $12,682 9.14%
Tax Exempt 16,196 338 8.46%
Securities
Taxable 176,397 2,763 6.35%
Tax Exempt 24,453 556 9.22%
Federal Funds Sold 2,940 43 5.92%
Interest Bearing Deposits
with Banks 468 6 5.20%
Total Earning Assets 783,180 16,388 8.49%
Allowance for Loan
Losses (19,045)
Cash and Due from Banks 27,512
Other Non-Earning Assets 40,250
Total Assets $831,897
Liabilities and
Stockholders' Equity:
Regular Savings, NOW
and MMDAs $353,714 2,357 2.70%
Time Deposits 282,903 3,576 5.13%
Short-Term Borrowings 6,783 101 6.04%
Long Term Debt 10,300 173 6.81%
Total Interest
Bearing Liabilities 653,700 6,207 3.85%
Demand Deposits 89,657
Other Liabilities 9,973
Stockholders' Equity 78,567
Total Liabilities and
Stockholders' Equity $831,897
Net Interest Income (Tax
Equivalent Basis) 10,181
Tax Equivalent Adjustment (314)
Net Interest Income $ 9,867
Net Interest Rate Spread 4.64%
Net Interest Margin 5.27%
</TABLE>
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders was held on April 16, 1996, to consider
the following matter;
Shareholders of the Company were asked to consider the Company's nominees for
director and to elect directors, each to serve for a term of three years. The
Company's nominees for director were all elected by a plurality of the votes
presented, and there was no solicitation in opposition to management's
nominees.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant, has duly caused this report to be signed on its behalf by the
undersigned duly authorized.
EVERGREEN BANCORP, INC.
May 13, 1996 /s/ George W. Dougan
Date George W. Dougan
President and Chief Executive Officer
(Principal Executive Officer)
May 13, 1996 /s/ George L. Fredette
Date George L. Fredette,
Senior Vice President, Treasurer
(Principal Accounting Officer)
<TABLE>
Exhibit 11 - Earnings per Share
Computation of Net Income Per Common Share
(Dollars in Thousands, except Per Share Amounts)
<CAPTION>
Three Months Ended March 31,
1996 1995
<C> <C>
Net Income Per Common Share
Weighted Average Common Shares Outstanding 4,661,000 4,748,000
Net Income $ 2,379 $ 2,032
Net Income per Common Share $ .51 $ .43
Net Income Per Common Share - Primary
Weighted Average Common Shares Outstanding 4,661,000 4,748,000
Dilutive Common Stock Options 56,000 20,000
Weighted Average Common shares and Common
Share Equivalents Outstanding 4,717,000 4,768,000
Net Income $ 2,379 $ 2,032
Net Income per Common Share - Primary $ .50 $ .43
Net Income Per Common Share - Fully Diluted
Weighted Average Common Shares Outstanding 4,661,000 4,748,000
Dilutive Common Stock Options 56,000 24,000
Weighted Average Common shares and Common
Share Equivalents Outstanding 4,717,000 4,772,000
Net Income $ 2,379 $ 2,032
Net Income per Common Share - Fully Diluted $ .50 $ .43
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 41,277
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 25,500
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 177,973
<INVESTMENTS-CARRYING> 21,233
<INVESTMENTS-MARKET> 22,420
<LOANS> 613,560
<ALLOWANCE> 12,276
<TOTAL-ASSETS> 901,553
<DEPOSITS> 778,732
<SHORT-TERM> 3,841
<LIABILITIES-OTHER> 12,575
<LONG-TERM> 23,229
<COMMON> 16,056
0
0
<OTHER-SE> 67,120
<TOTAL-LIABILITIES-AND-EQUITY> 901,553
<INTEREST-LOAN> 13,618
<INTEREST-INVEST> 3,372
<INTEREST-OTHER> 209
<INTEREST-TOTAL> 17,199
<INTEREST-DEPOSIT> 6,805
<INTEREST-EXPENSE> 7,266
<INTEREST-INCOME-NET> 9,933
<LOAN-LOSSES> 360
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 7,375
<INCOME-PRETAX> 3,773
<INCOME-PRE-EXTRAORDINARY> 3,773
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,379
<EPS-PRIMARY> .51
<EPS-DILUTED> .50
<YIELD-ACTUAL> 4.95
<LOANS-NON> 4,268
<LOANS-PAST> 1,371
<LOANS-TROUBLED> 137
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 12,115
<CHARGE-OFFS> 248
<RECOVERIES> 49
<ALLOWANCE-CLOSE> 12,276
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 12,276
</TABLE>
