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, 1997
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 the Issuer's classes of common
stock, as of the latest practicable date:
Class of Common Stock Number of Shares Outstanding
as of April 30, 1997
$3.33 1/3 Par Value 9,030,222
INDEX
Page No.
PART I FINANCIAL INFORMATION
Item 1 Financial Statements (unaudited):
Consolidated Statements of Income for the Three
Months Ended March 31, 1997, and 1996 1-2
Consolidated Statements of Financial Condition
as of March 31, 1997, and December 31, 1996 3-4
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1997, and 1996 5-6
Notes to Consolidated Interim Financial Statements 7-8
Report of Independent Auditors 9
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operation 10-16
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 - None
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,
1997 1996
<S> <C> <C>
(UNAUDITED)
Interest Income:
Interest and Fees on Loans $14,598 $13,618
Interest on U.S. Government & Agency Obligations 3,028 2,916
Interest on State & Municipal Obligations 204 330
Interest on Other Bonds, Notes, & Debentures 103 126
Interest on Federal Funds Sold & Bank Deposits 368 209
Total Interest Income 18,301 17,199
Interest Expense:
Interest on Deposits:
Regular Savings, NOW and Money Market
Deposit Accounts 2,409 2,345
Other Time 5,069 4,460
Interest on Short-Term Borrowings 51 43
Interest on Long-Term Debt 391 418
Total Interest Expense 7,920 7,266
Net Interest Income 10,381 9,933
Provision for Loan Losses 360 360
Net Interest Income After Provision for Loan
Losses 10,021 9,573
Other Income:
Trust Department Income 657 549
Service Charges on Deposit Accounts 641 698
Other 408 328
Total Other Income 1,706 1,575
Other Expenses:
Salaries and Employee Benefits 4,043 3,820
Net Occupancy Expense 585 548
Equipment Expense 496 486
Professional Services 300 279
Data Processing 580 623
Supplies and Printing 212 213
Advertising 263 219
Postage 148 154
Loss on Sale and Writedown of OREO - 117
Other 1,067 916
Total Other Expenses 7,694 7,375
Income Before Taxes 4,033 3,773
Applicable Income Taxes 1,351 1,394
Net Income $ 2,682 $ 2,379
Earnings Per Common Share:
Average Shares Outstanding 9,083,000 9,321,000
Net Income Per Share $ .30 $ .26*
</TABLE>
* Per share data have been adjusted for the two-for-one stock split effected
September 16, 1996.
See accompanying notes to consolidated interim financial statements.
<TABLE>
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
<CAPTION>
3/31/97 12/31/96
<S> <C> <C>
(UNAUDITED)
Assets
Cash and Cash Equivalents:
Cash and Due From Banks $ 32,040 $ 33,430
Federal Funds Sold 32,700 22,700
Total Cash and Cash Equivalents 64,740 56,130
Securities:
Securities Available For Sale (Amortized
cost of $190,762 and $177,099 at 3/31/96
and 12/31/96, respectively) 189,807 177,140
Securities Held to Maturity (Fair value
of $22,803 and $21,016 at 3/31/97 and
12/31/96, respectively) 22,424 20,028
Total Securities 212,231 197,168
Loans:
Commercial 224,028 225,420
Mortgage 290,134 283,664
Installment 148,261 149,745
Other 125 324
Total Loans 662,548 659,153
Less:
Allowance for Loan Losses (12,773) (12,393)
Unearned Income on Loans (3,745) (4,265)
Loans, net 646,030 642,495
Bank Premises and Equipment 15,618 15,278
Other Real Estate Owned 1,694 1,476
Other Assets 17,246 16,102
Total Assets $957,559 $928,649
Liabilities
Deposits:
Demand $ 92,072 $ 92,737
Regular Savings, Now Accounts and Money
Market Deposit Accounts 342,430 350,762
Certificates of Deposit over $100,000 87,029 79,808
Other Time 307,409 277,549
Total Deposits 828,940 800,856
Federal Funds Purchased and Other Short
Term Borrowings 3,918 3,846
Accrued Taxes and Other Liabilities 13,581 12,270
Long-Term Debt 25,910 26,238
Total Liabilities 872,349 843,210
Stockholders' Equity
Common Stock $3.33 1/3 Par Value: Shares Authorized
20,000,000, Shares Issued: 9,633,966 at March
31, 1997 and December 31, 1996 32,113 32,113
Surplus 6,787 6,787
Undivided Profits 54,534 53,149
Excess Market Over Cost of Securities
Available For Sale Net of Deferred Tax (573) 24
Treasury Stock (579,744 shares at March 31, 1997
and 514,158 shares at December 31, 1996) (7,011) (5,826)
Common Stock Subscribed by ESOP (640) (808)
Total Stockholders' Equity 85,210 85,439
Total Liabilities and Stockholders' Equity $957,559 $928,649
</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, 1997 1996
<S> <C> <C>
(Unaudited)
Cash Flows from Operating Activities:
Net Income . . . . . . . . . . . . . . . . . . . . . . $ 2,682 $ 2,379
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Net Change in Unearned Loan Fees. . . . . . . . . . 17 15
Net Change in Other Assets and Other Liabilities. . 820 809
Increase in Deferred Tax Benefit. . . . . . . . . . (254) (117)
Loss on Write-Down of Other Real Estate . . . . . . - 108
Gain on Disposition of Assets . . . . . . . . . . . - (7)
Depreciation. . . . . . . . . . . . . . . . . . . . 445 384
Provision for Loan Losses . . . . . . . . . . . . . 360 360
Amortization of Premiums & Accretion of
Discounts on Securities, Net. . . . . . . . . . . 108 87
Net Cash Provided By Operating Activities. . . 4,178 4,018
Cash Flows From Investing Activities:
Proceeds From:
Maturities of Securities Available for Sale. . . . . 10,913 16,093
Maturities of Securities Held to Maturity. . . . . . 595 1,885
Purchases of Securities Available for Sale . . . . . . (24,675) (4,032)
Purchases of Securities Held to Maturity . . . . . . . (3,000) -
Proceeds From Sales of Loans . . . . . . . . . . . . . 375 725
Change in Credit Card and Check Overdraft Receivables. 21 (221)
Proceeds From Sales of Other Real Estate . . . . . . . - 152
Net Increase in Loans. . . . . . . . . . . . . . . . . (4,526) (22,351)
Capital Expenditures . . . . . . . . . . . . . . . . . (785) (113)
Net Cash Used By Investing Activities (21,082) (7,862)
Cash Flows From Financing Activities:
Net Increase in Deposits . . . . . . . . . . . . . . . 28,084 28,508
Net Increase in Short-Term Borrowings. . . . . . . . . 72 581
Payments on Long Term Debt . . . . . . . . . . . . . . (160) (87)
Proceeds From Issuance of Common Stock . . . . . . . . - 109
Proceeds from Sale of Treasury Shares. . . . . . . . . 228 -
Payments for Purchase of Treasury Shares . . . . . . . (1,524) (1,175)
Dividends Paid . . . . . . . . . . . . . . . . . . . . (1,186) (936)
Net Cash Provided By Financing Activities 25,514 27,000
Net Increase in Cash and Cash Equivalents. . . . . . . 8,610 23,156
Cash and Cash Equivalents at Beginning of Year . . . . 56,130 43,621
Cash and Cash Equivalents at End of Quarter. . . . . . $ 64,740 $ 66,777
Supplemental Disclosure of Cash Flows:
Interest Paid. . . . . . . . . . . . . . . . . . . . . $ 7,719 $ 7,225
Taxes Paid . . . . . . . . . . . . . . . . . . . . . . 21 21
</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 $218,000 and $271,000 during the three
months ended March 31, 1997 and 1996, 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
$168,000 and $159,000 during the three months ended March 31, 1997 and 1996
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 loss on these securities was $955,000 at March 31, 1997. The
adjustment to stockholders' equity for the unrealized loss was $573,000, net
of deferred income tax expense of $382,000.
At March 31, 1996 these securities had an unrealized gain of $116,000. The
adjustment to stockholders' equity, net of the deferred tax benefit of
$47,000, was $69,000.
See accompanying notes to consolidated interim financial statements.
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
1. Financial Statement Presentation
The accompanying consolidated financial statements consist 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, 1997, the results of operations for the three months ended March 31, 1997
and 1996 and cash flows for the three months ended March 31, 1997 and 1996.
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. 1996 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, 1997, and 1996, 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. Earnings
per share for the quarter ended March 31, 1996 have been adjusted for the
stock split effected in the form of a 100% stock dividend.
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings per Share" (Statement
128), which establishes standards for computing and presenting earnings per
share (EPS). This statement simplifies the standards for computing EPS making
them comparable to international EPS standards and supercedes Accounting
Principals Board Opinion No. 15, "Earnings per Share" and related inter-
pretations. Statement 128 replaces the presentation of primary EPS with the
presentation of basic EPS. It also requires dual presentation of basic and
diluted EPS on the face of the income statement for all entities with complex
capital structures and requires a reconciliation of the numerator and
denominator of the basic EPS computation to the numerator and denominator of
the diluted EPS computation.
Basic EPS excludes dilution (such as the effect of the Company's outstanding
stock options) and is computed by dividing income available to common
stockholders by the weighted-average number of common shares outstanding for
the period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or
converted into common stock or resulted in the issuance of common stock that
then shared in earnings of the entity (such as the Company's stock options).
This statement is effective for financial statements issued for periods ending
after December 15, 1997, including interim periods. Earlier application is not
permitted. This Statement requires restatement of all prior period EPS data
presented.
The Company will present its EPS information in accordance with Statement 128
as of December 31, 1997. Management anticipates that the effect of the
adoption of this Statement will not have a material effect on the Company's
consolidated financial statements.
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, 1997 and the related
consolidated statements of income for the three-month periods ended March 31,
1997 and 1996, and the consolidated statements of cash flows for the
three-month periods ended March 31, 1997 and 1996. 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, 1996, 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 24, 1997, 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,
1996, 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 9, 1997
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, 1997, was $2,682,000 compared to
$2,379,000 for the same quarter last year. This represents an increase of
$303,000 or 12.7%. The primary reasons for the increase from the first quarter
of 1996 were an increase in net interest income of $448,000 and an increase in
other operating income of $131,000. These increases were partially offset by
an increase in operating expenses of $319,000. As a result of the changes
noted, pretax income increased $260,000 or 6.9%. In spite of increased pre-tax
income, tax expenses declined $43,000. Net income per share for the quarter
ended March 31, 1997, was $.30 compared to $.26 per share for the March 31,
1996 quarter. This represents an increase of 15.4%. The annualized return on
average assets for the first quarter is 1.17% compared to 1.09% for the first
quarter last year. The annualized return on average stockholders' equity for
the first quarter of 1997 was 12.7% as compared to 11.5% for the same period
in 1996. 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 1997 was $10,381,000 compared to
$9,933,000 for the same period of 1996, an increase of $448,000. On a taxable
equivalent basis, net interest income was $10,497,000 for the quarter ended
March 31, 1997 compared to $10,138,000 for the quarter ended March 31, 1996.
This represents a increase of $359,000 or 3.5%. The increase in net interest
income on a taxable equivalent basis resulted primarily from an increase in
volume as the net interest margin declined by 12 basis points. Rates paid on
costing liabilities rose 5 basis points while rates received on earning assets
declined 2 basis points. The increase in rates paid on costing liabilities was
a result of liabilty growth being concentrated in the higher cost time deposit
category. Average time deposits increased $49,936,000 or 15.6%. The decrease
in rates received on earning assets was concentrated in the taxable loan
category which declined 9 basis ponts. Rates received on taxable investment
securities rose 24 basis points while the rate received on Fed Funds sold
remained consistant with the same period in 1996.
The increase in volume of average earning assets was concentrated in taxable
loans and Fed Funds sold as the year to year increase in these average
balances was $57,318,000 and $12,098,000, 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.
Loans (or portions thereof) deemed uncollectible 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, 1997, has increased
$380,000 to $12,773,000 from December 31, 1996. As a percent of total loans,
net of unearned income, the allowance was approximately 1.9% at March 31,
1997. The allowance represents approximately 219.5% of the non-performing
loans at quarter end. The provision for loan losses for the quarters ended
March 31, 1997 and 1996 was $360,000. Should the level of problem loans
increase, or credit quality decline, an increase in the provision level may
be required.
The following table presents information concerning non-performing loans and
other real estate;
<TABLE>
3/31/97 12/31/96
<S> <C> <C>
(Dollars In Thousands)
Non-Accrual $ 4,692 $ 3,792
Past Due 90 Days 994 1,414
Restructured 132 133
Total Non-Performing
Loans $ 5,818 $ 5,339
Other Real Estate $ 1,694 $ 1,476
</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, 1997, was $1,706,000,
compared to $1,575,000 for the same quarter last year, an increase of $131,000
or 8.3%. This increase was largely due to an increase in trust income of
$108,000 to $657,000 and an increase in other income of $80,000 to $408,000.
These increases were offset by a decrease in service charge income. Service
charges decreased $57,000 to $641,000 from $698,000 for the same period of
the prior year.
Other expense for the three months ended March 31, 1996 was $7,694,000,
compared to $7,375,000 for the first three months last year. This represents
an increase of $319,000 or 4.3%. Salaries and benefits continue to represent
the largest portion of other expense with an increase of $223,000 or 5.8%.
This increase is due to a combination of merit increases and hiring related
to the opening of new branches. Advertising expense increased $44,000 or 20.1%
due to promotions associated with the branch openings. Also, increases in
occupency and equipment expense are directly attributable to the new branches.
Decreases in data processing and OREO losses and writedowns offset some of the
increases associated with the branch expansion program.
INCOME TAX EXPENSE
Income tax expense for the three months ended March 31, 1997, was $1,351,000
as compared to $1,394,000 for the three months ended March 31, 1996, a
decrease of $43,000 or 3.1%. The effective income tax rate for the first
quarter of this year was 33.5% as compared to 36.9% for the same quarter last
year. This decrease in the effective income tax rate is attributed to
somewhat lower State income taxes.
CAPITAL AND LIQUIDITY
At March 31, 1997, stockholders' equity was $85,210,000 as compared to
$85,439,000 at December 31, 1996, a decrease of $229,000 or .3%. The decrease
in stockholders' equity is primarily a result of the retention of earnings of
$1,496,000 and a reduction of the ESOP balance of $168,000 being offset by
net treasury share transactions of $1,185,000 and a change in the valuation of
securities available for sale, net of deferred tax benefit of $597,000.
The following table sets forth the Company's risk based capital ratios as of
March 31, 1997 and the minimum regulatory guidelines;
<TABLE>
Evergreen Well Capitalized
Risk-Based Bancorp, Inc. Regulatory
Ratios March 31, 1997 Guidelines
<CAPTION>
<S>
<C> <C>
Leverage Ratio 8.9 % 5.0 %
Tier 1 13.7 % 6.0 %
Total Capital 14.9 % 10.0 %
</TABLE>
Average federal funds sold for the three months ended March 31, 1997 was
$27,659,000 compared to $15,561,000 for the three months ended March 31, 1996.
Net cash provided by operating activities was $4,178,000 for the first
quarter of 1997 as compared to net cash provided of $4,018,000 for the three
months ended March 31, 1996. Net cash used by investing activities was
$21,082,000 for the first quarter of 1997 as compared to net cash used of
$7,862,000 for the same period last year. The change of $13,220,000 resulted
primarily from increased securities purchases. Net cash provided by financing
activities was $25,514,000 for the first quarter of 1997 as compared to
$27,000,000 provided by financing activities for the first quarter of 1996.
The main source of cash provided by financing activities continues to be from
increases in deposits in the other time deposit category. The level of cash
and cash equivalents was $64,740,000 at March 31, 1997 compared to
$66,777,000 at March 31, 1996.
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 1997 and 1996 along with a marginal State income tax rate of 9.0% for
1997 and 9.225% for 1996.
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, 1997 VS March 31, 1996
INCREASE / (DECREASE) TOTAL
DUE TO CHANGE IN INCREASE/
VOLUME RATE (DECREASE)
<S> <C> <C> <C>
Interest Earned:
Loans
Taxable $1,189 $ (147) $1,042
Tax-Exempt (72) (21) (93)
Investment Securities
Taxable (31) 94 63
Tax-Exempt (153) (5) (158)
Federal Funds Sold &
Interest-Bearing Deposits 159 - 159
Changes in Total Interest
Income 1,092 (79) 1,013
Less Interest Expense Incurred:
Regular Savings, NOW and MMDAs 26 38 64
Time Deposits 650 (41) 609
Short-Term Borrowings 7 1 8
Long Term Debt 44 (71) (27)
Changes in Total Interest
Expense 727 (73) 654
Changes in Net Interest
Income $ 365 $ (6) $ 359
</TABLE>
<TABLE>
Average Balances For The Three Months Ended March 31, 1997
<CAPTION>
Interest Average
Average Income/ Yield/
Balance Expense Rate
<S> <C> <C> <C>
Assets:
Loans
Taxable $643,780 $14,444 9.10%
Tax Exempt 11,598 214 7.48%
Securities
Taxable 191,523 3,220 6.82%
Tax Exempt 7,214 171 9.61%
Federal Funds Sold &
Interest Bearing Deposits 27,659 368 5.40%
Total Earning Assets 881,774 18,417 8.47%
Allowance for Loan
Losses (12,527)
Cash and Due from Banks 29,833
Other Non-Earning Assets 32,752
Total Assets $931,832
Liabilities and
Stockholders' Equity:
Regular Savings, NOW
and MMDAs $344,813 2,409 2.83%
Time Deposits 370,153 5,069 5.55%
Short-Term Borrowings 4,004 51 5.17%
Long Term Debt 25,985 391 6.10%
Total Interest
Bearing Liabilities 744,955 7,920 4.31%
Demand Deposits 88,759
Other Liabilities 12,608
Stockholders' Equity 85,510
Total Liabilities and
Stockholders' Equity $931,832
Net Interest Income (Tax
Equivalent Basis) 10,497
Tax Equivalent Adjustment (116)
Net Interest Income $ 10,381
Net Interest Rate Spread 4.16%
Net Interest Margin 4.83%
</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 &
Interest Bearing Deposits 15,561 209 5.40%
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>
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 9, 1997 /s/ George W. Dougan
Date George W. Dougan
President and Chief Executive Officer
(Principal Executive Officer)
May 9, 1997 /s/ George L. Fredette
Date George L. Fredette,
Senior Vice President, Chief
Financial Officer
(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,
1997 1996
<C> <C>
Net Income Per Common Share
Weighted Average Common Shares Outstanding 9,083,000 9,321,000
Net Income $ 2,682 $ 2,379
Net Income per Common Share $ .30 $ .26
Net Income Per Common Share - Primary
Weighted Average Common Shares Outstanding 9,083,000 9,321,000
Dilutive Common Stock Options 185,000 112,000
Weighted Average Common shares and Common
Share Equivalents Outstanding 9,268,000 9,433,000
Net Income $ 2,682 $ 2,379
Net Income per Common Share - Primary $ .29 $ .25
Net Income Per Common Share - Fully Diluted
Weighted Average Common Shares Outstanding 9,083,000 9,321,000
Dilutive Common Stock Options 185,000 112,000
Weighted Average Common shares and Common
Share Equivalents Outstanding 9,268,000 9,433,000
Net Income $ 2,682 $ 2,379
Net Income per Common Share - Fully Diluted $ .29 $ .25
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 32,040
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 32,700
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 189,807
<INVESTMENTS-CARRYING> 22,424
<INVESTMENTS-MARKET> 22,803
<LOANS> 658,803
<ALLOWANCE> 12,773
<TOTAL-ASSETS> 957,559
<DEPOSITS> 828,940
<SHORT-TERM> 3,918
<LIABILITIES-OTHER> 13,581
<LONG-TERM> 25,910
<COMMON> 32,113
0
0
<OTHER-SE> 53,097
<TOTAL-LIABILITIES-AND-EQUITY> 957,559
<INTEREST-LOAN> 14,598
<INTEREST-INVEST> 3,335
<INTEREST-OTHER> 368
<INTEREST-TOTAL> 18,301
<INTEREST-DEPOSIT> 7,478
<INTEREST-EXPENSE> 7,920
<INTEREST-INCOME-NET> 10,381
<LOAN-LOSSES> 360
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 7,694
<INCOME-PRETAX> 4,033
<INCOME-PRE-EXTRAORDINARY> 4,033
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,682
<EPS-PRIMARY> .29
<EPS-DILUTED> .29
<YIELD-ACTUAL> 4.83
<LOANS-NON> 4,692
<LOANS-PAST> 994
<LOANS-TROUBLED> 132
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 12,393
<CHARGE-OFFS> 477
<RECOVERIES> 497
<ALLOWANCE-CLOSE> 12,773
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 12,773
</TABLE>
