<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For quarterly period ended MARCH 31, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-18539
EVANS BANCORP, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 16-1332767
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
14 -16 NORTH MAIN STREET, ANGOLA, NEW YORK 14006
(Address of principal executive offices)
(Zip Code)
(716) 549-1000
(Issuer's telephone number)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed
since last report.)
Indicate by check (X) whether the issuer (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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
Common Stock, $.50 Par Value--1,695,179 shares as of March 31, 1999
<PAGE> 2
INDEX
EVANS BANCORP, INC. AND SUBSIDIARY
PAGE
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated balance sheets--March 31, 1999 and
December 31, 1998 1
Consolidated statements of income--Three months
ended March 31, 1999 and 1998 2
Consolidated statements of cash flows--Three months
ended March 31, 1999 and 1998 3
Notes to consolidated financial statements--
March 31, 1999 and 1998 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
Item 3. Quantative and Qualitative Disclosures About Market Risks 9
PART II. OTHER INFORMATION 10
Item 1. Legal Proceedings
Item 2. Changes In Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 10
<PAGE> 3
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE 1
ITEM I - FINANCIAL STATEMENTS
EVANS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
March 31, 1999 and December 31, 1998
(Unaudited)
March 31, December 31,
ASSETS 1999 1998
-------------- ---------------
<S> <C> <C>
Cash and due from banks $ 5,247,836 $ 7,300,780
Federal Funds sold 9,460,000 0
Securities:
Classified as available-for-sale, at fair value 45,819,401 45,969,587
Classified as held-to-maturity, at amortized cost 3,994,972 4,090,385
Loans, net 108,406,972 110,526,449
Properties and equipment, net 3,786,763 3,696,658
Other assets 2,898,758 2,536,371
------------- -------------
TOTAL ASSETS $ 179,614,702 $ 174,120,230
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Demand $ 25,325,332 $ 25,857,037
NOW and money market accounts 7,121,243 7,554,104
Regular savings 53,621,548 47,676,615
Time Deposits, $100,000 and over 27,961,136 24,208,290
Other time accounts 38,849,638 38,787,590
------------- -------------
152,878,897 144,083,636
Federal Funds Purchased 0 2,225,000
Other Borrowed Funds 5,000,000 7,000,000
Other liabilities 3,271,673 2,188,181
------------- -------------
TOTAL LIABILITIES 161,150,570 155,496,817
------------- -------------
STOCKHOLDERS' EQUITY
Common Stock, $.50 par value 10,000,000 shares authorized;
1,698,950 shares issued 849,475 849,475
Capital surplus 10,990,720 10,990,720
Retained earnings 6,504,771 6,400,764
Unrealized gains on available for sale securities 228,035 443,308
------------- -------------
18,573,001 18,684,267
Less: Treasury stock, at cost (2,419 and 1,352 shares respectively) (108,869) (60,854)
------------- -------------
Total stockholders' equity 18,464,132 18,623,413
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 179,614,702 $ 174,120,230
============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 4
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE 2
ITEM I - FINANCIAL STATEMENTS
EVANS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months ended March 31, 1999 and 1998
(Unaudited)
Three Months Ended
March 31,
1999 1998
-------------- -------------
<S> <C> <C>
INTEREST INCOME
Loans $2,328,626 $2,310,399
Federal funds sold 39,211 30,964
Securities:
Taxable 354,481 324,629
Non-taxable 295,404 260,924
---------- ----------
Total Interest Income 3,017,722 2,926,916
INTEREST EXPENSE
Interest on Deposits 1,120,084 1,211,402
Short Term Borrowing 83,875 11,152
---------- ----------
NET INTEREST INCOME 1,813,763 1,704,362
PROVISION FOR LOAN LOSSES 35,000 30,001
---------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,778,763 1,674,361
---------- ----------
NON-INTEREST INCOME:
Service charges 177,321 171,198
Other 137,021 72,559
Securities Gains 1,064 4,592
---------- ----------
Total Non-interest Income 315,406 248,349
---------- ----------
NON-INTEREST EXPENSE:
Salaries and employee benefits 739,620 662,835
Occupancy 215,782 191,498
Supplies 33,108 31,114
Repairs and maintenance 53,969 45,328
Advertising and public relations 46,667 27,000
Professional services 63,142 68,489
FDIC assessments 4,212 4,125
Other 262,014 216,284
---------- ----------
Total Non-interest Expense 1,418,514 1,246,673
---------- ----------
Income before income taxes 675,655 676,037
---------- ----------
INCOME TAXES 181,200 185,700
---------- ----------
NET INCOME $ 494,455 $ 490,337
========== ==========
NET INCOME PER COMMON SHARE-BASIC $ 0.29 $ 0.29
========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 1,695,179 1,698,950
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 5
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE 3
ITEM I - FINANCIAL STATEMENTS
EVANS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 1999 and 1998
(Unaudited)
Three Months Ended
March 31,
1999 1998
------------- ------------
<S> <C> <C>
OPERATING ACTIVITIES
Interest received $ 2,853,510 $ 2,457,431
Fees and commissions received 300,172 268,545
Interest paid (1,231,916) (1,208,701)
Cash paid to suppliers and employees (1,559,382) (1,190,540)
Income taxes paid (5,000) (47,223)
------------ ------------
Net cash provided by operating
activities 357,384 279,512
------------ ------------
INVESTING ACTIVITIES
Available for sale securities
Purchases (6,056,445) (11,469,420)
Proceeds from sales 2,842,567 4,892,987
Proceeds from maturities 2,142,991 2,793,975
Held to maturity securities
Purchases (97,640) (188,104)
Proceeds from maturities 1,058,841 311,252
Additions to properties and equipment (52,084) (137,463)
Decrease(Increase) in loans, net of repayments 360,280 (3,165,495)
Proceeds from sales of loans 1,686,333 613,502
------------ ------------
Net cash provided by(used in) investing activities 1,884,843 (6,348,766)
------------ ------------
FINANCING ACTIVITIES
Increase in deposits 8,795,261 2,955,223
Purchase of Treasury Stock (48,015) 0
Repayment of Short Term Borrowing (3,191,969) (705,687)
Dividends Paid (390,448) (288,822)
------------ ------------
Net cash provided by financing
activities 5,164,829 1,960,714
------------ ------------
Net increase(decrease) in cash and cash
equivalents 7,407,056 (4,108,540)
Cash and cash equivalents, January 1 7,300,780 10,336,532
------------ ------------
Cash and cash equivalents, March 31 $ 14,707,836 $ 6,227,992
============ ============
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 6
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE 4
ITEM I - FINANCIAL STATEMENTS
EVANS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 1999 and 1998
(Unaudited)
Three Months Ended
March 31,
1999 1998
----------- ----------
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net income $ 494,455 $ 490,337
--------- ---------
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 158,455 (96,797)
Provision for credit losses 35,000 30,001
Gain on sale of assets (5,447) (8,779)
(Decrease)Increase in accrued interest payable (27,956) 13,854
Increase in accrued interest receivable (192,261) (294,919)
Increase in other liabilities 140,909 146,042
Increase in other assets (245,771) (227)
--------- ---------
Total adjustments (137,071) (210,825)
--------- ---------
NET CASH PROVIDED BY
OPERATING ACTIVITIES $ 357,384 $ 279,512
========= =========
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION:
Net unrealized gain on available for sale securities $ 339,758 $ 177,086
========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 7
PART I - FINANCIAL INFORMATION PAGE 5
ITEM 1 - FINANCIAL STATEMENTS
EVANS BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999 AND 1998
(UNAUDITED)
1. GENERAL
The accounting and reporting policies followed by Evans Bancorp, Inc., a
bank holding company, and its subsidiary, Evans National Bank, in the
preparation of the accompanying interim financial statements conform
with generally accepted accounting principles and with general practice
within the banking industry.
The accompanying financial statements are unaudited. In the opinion of
management, all adjustments necessary for a fair presentation of
financial position and results of operations for the interim periods
have been made. Such adjustments are of a normal recurring nature.
The results of operations for the three month period ending March 31,
1999 are not necessarily indicative of the results to be expected for
the full year.
2. SECURITIES
Securities which the Bank has the ability and intent to hold to maturity
are stated at cost, plus discounts accrued and less premiums amortized.
Securities which the Bank has identified as available for sale are
stated at fair value.
3. ALLOWANCE FOR LOAN LOSSES
The provision for loan losses is based on management's evaluation of the
relative risks inherent in the loan portfolio and, on an annual basis,
generally exceeds the amount of net loan losses charged against the
allowance.
4. INCOME TAXES
Provision for deferred income taxes are made as a result of timing
differences between financial and taxable income. These differences
relate principally to directors deferred compensation, pension premiums
payable and deferred loan origination expenses.
5. PER SHARE DATA
The per share of common stock information is based upon the weighted
average number of shares outstanding during each period, retroactively
adjusted for stock dividends. The Company adopted Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings per Share," during the
fourth quarter of 1997. Only basic earnings per share is disclosed
because the Company does not have any dilutive securities or other
contracts to issue common stock or convert to common stock.
6. NEW ACCOUNTING STANDARDS PRONOUNCEMENTS
SFAS No. 131, Disclosures about Segments of an Enterprise and Related
Information was issued in 1997 by the Financial Accounting Standards
Board. This Statement establishes standards for the way that public
business enterprises report information about operating segments in
annual financial statements. Management has determined that the Bank is
the Company's only operating segment. As such additional disclosures are
not considered necessary.
<PAGE> 8
PART I - FINANCIAL INFORMATION PAGE 6
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS
MATERIAL CHANGES IN FINANCIAL CONDITION
Total deposits increased 6.1% in the first quarter of 1999 versus an
increase of 2.1% over the first three months of 1998. Tax collections in local
municipalities traditionally contribute to significant increases in the total
deposits in the first quarter. Time Deposits over $100,000 have increased 15.5%,
as municipalities have placed funds in short-term time deposits since December
31, 1998 and Regular Savings Deposits have increased 12.5%. Deposit increases
also reflect the expansion of the Bank's trade area to include West Seneca, NY
since opening a new branch in February, 1999.
Total net loans outstanding decreased 1.9% over the first three months
of 1999 which compares to an increase of 2.5% over the first quarter of 1998.
Total commercial loans decreased approximately $760,000 over the first quarter
of 1999 due in part to repayment on various construction, lines of credit and
short term loans. On the consumer side, loans decreased approximately $1.3
million, which reflects the current trend towards residential and home equity
mortgage refinancing and the sale of $1.7 million in residential mortgages to
the Federal National Mortgage Association ("FNMA").
The securities portfolio decreased .5% over the first three months of
1999 versus growth of 9.0% which occurred in the first quarter of 1998.
Available funds continue to be invested in US government and agency securities
and tax-advantaged bonds issued by New York State municipalities and school
districts. Tax collections in local municipalities have also impacted Federal
Funds Sold by increasing $9.5 million since December 31, 1998.
The annualized return on average assets at March 31, 1999 was 1.15%
versus 1.24% at December 31, 1998. The return on average equity at March 31,
1999 was 10.85% versus 11.63% at December 31, 1998. The capital to assets ratio
of 10.52% at March 31, 1999 compares to 10.81% at December 31, 1998. Total
assets have increased approximately $5.5 million or 3.16% since December 31,
1998.
MATERIAL CHANGES IN THE RESULTS OF OPERATIONS
Net interest income for the quarter ending March 31, 1999 increased 6.4%
over the first quarter of 1998. Interest income increased 3.1%. Interest income
on federal funds sold increased 26.6%. Interest paid on deposits, impacted by
Federal Reserve dropping short-term interest rates, decreased 7.5%. The cost of
short-term borrowing was substantially higher due to the increased use of the
Bank's funding options as a member of the Federal Home Loan Bank. The Bank's
year-to-date net interest margin at March 31, 1999 was 4.55% as compared to
4.65% at March 31, 1998.
The year-to-date yield on average earning assets has declined from 8.24%
at March 31, 1998 to 7.78% at March 31, 1999. The yield on loans has declined to
8.52% from 9.01% over that time period and the tax-equivalent yield on federal
funds sold and investments has decreased to 6.26% from 6.51%. Comparatively, the
year-to-date cost of funds on interest-bearing balances decreased from 4.17% at
March 31, 1998 to 3.81% at March 31, 1999. This decrease reflects a change in
the mix of interest-bearing deposits. Time deposits, typically carry higher
interest rates, made up 52.4% of interest-bearing deposits at March 31, 1999
versus 53.3% the previous year.
The year-to-date provision for loan losses was $35,000 through March 31,
1999 versus $30,001 through the first quarter of 1998. Management has increased
the amount set aside for potential loan losses due to the substantial increase
in the volume of the portfolio experienced over the past two years. Management
believes that the credit quality of the portfolio remains high.
Non-interest expenses increased 13.8% for the quarter ending March 31,
1999 over the quarter ending March 31, 1998. This compares to an increase of
only 6.2% in the first quarter of 1998 over the first quarter of 1997. All
expense categories were impacted by the branch expansion into West Seneca.
Annual salary adjustments and an increase in the number of full-time equivalent
employees from 80 at March 31, 1998 to 85 at March 31, 1999 contributed to the
11.6% increase in salary and benefit expense. Occupancy Expense is up 12.7% over
the same time period in 1998, along with Advertising and Public Relations, up
72.8% relating to the branch expansion cost. Repairs and Maintenance are also up
19.1%.
<PAGE> 9
PAGE 7
Net income for the first quarter of $494,455 reflects an increase of .8%
over the first quarter of 1998. The effective combined tax rate for the first
three months of 1999 was 27% compared to 28% for the same period in 1998. The
27% and 28% rate for 1999 and 1998 demonstrates the impact of increasing the
Bank's investment in tax-advantaged municipal bonds and the benefit realized
from a favorable deferred tax position.
YEAR 2000
The Company has long been aware of the complexity and significance of
the issues associated with the arrival of the Millennium (Year 2000). The "Year
2000" problem centers around the world's computer systems and a common
programming practice that condenses a century date to just two digits, i.e. "98"
to represent 1998, to conserve storage space. As a result, these systems may
interpret "00" as 1900 rather than 2000, causing potential data corruption,
misinterpretation, or system failure. The Company, with the support and
direction of its Board of Directors and Senior Management, has dedicated
financial and human resources to formally adapt strategies and work towards
resolving all potential Year 2000 issues.
In the third quarter of 1997, the Company began formalizing its strategy
to address the data processing and business impacts we anticipated to be
associated with Year 2000 issues. Our ultimate approach was to adopt the
five-phase format recommended by the Federal Financial Institutions Examination
Council, and follow guidance provided us by our regulatory authorities who
periodically monitor and evaluate our progress. These phases, and our
activities, are described as follows:
Awareness Phase
While this can be considered an ongoing phase relating to education of
employees, customers, and vendors, our primary activities defined the Year 2000
problem; obtained Board of Director and Executive level support; established a
project team to include the Senior Vice President of Administration, the Bank
Auditor; Manager of Data Processing, Manager of Systems Development,
representatives form each functional area of the Bank, legal counsel, and the
principal of our main-frame software vendor. This committee was responsible for
development and implementation of an overall strategy to identify and resolve
issues associated with year 2000.
Assessment Phase
Implementing this phase provided an assessment of the size and
complexity, identifying affected areas of our business, identified the required
resources, and enabled us to develop a comprehensive plan. An inventory of all
hardware and software was completed to establish a specific Year 2000 status,
i.e. "already deemed compliant", "requiring replacement or renovation", or
"becoming obsolete". Priorities were then determined. Certain systems were
identified as mission critical. Non-information technology systems were also
addressed. Key vendors, such as providers of power, heating, and telephone
services, among others, were contacted regarding their Year 2000 readiness. The
Bank has received letters certifying Year 2000 compliance from those suppliers
whose services are deemed critical to bank operations. However, in the event of
an infra-structure failure, i.e. lack of power, etc., a Bank committee has
developed a contingency plan so that business can continue with minimal
interruption. The Bank also performed a customer risk assessment in the last
quarter of 1998.
Renovation Phase
The Company does not write or create computer code or perform
programming activities. We are reliant on vendors and software suppliers to
furnish enhancements in a timely manner. Renovation of our core processing
system was completed in early 1998 in conjunction with a plan developed by the
vendor, other user financial institutions, and our Company. These renovations
were successfully tested in collaboration with all user institutions at our
back-up site. The renovated system was successfully installed in June 1998.
Additional in-house testing was conducted throughout the remainder of the year.
Validation Phase
This is probably the most critical and intensive phase of the entire
project. It is this phase that we validate, through a variety of testing
methods, that each system can process after the turn of the century, with
particular emphasis on those identified as "mission critical". As stated above,
renovation to our core processing systems was successfully tested, and all
testing of mission critical systems was successfully completed by year end 1998.
In each case, we followed a comprehensive written test plan involving user
representation to validate test results. All systems, including those designated
mission critical, have been renovated and successfully tested as of December 31,
1998.
<PAGE> 10
PAGE 8
Two non-critical systems warranted as "Year 2000 compliant" by the vendor were
tested in the first quarter of 1999. Additionally, fully integrated testing will
be performed again during the second quarter of 1999.
Implementation Phase
The Company's Year 2000 ready systems are in place and presently
functioning. As a part of implementation, we plan continued testing in 1999,
along with fully integrated tests. Quality reviews will be conducted throughout
1999 and the year 2000 to ensure proper functioning of our systems. The
implementation phase involves contingency planning. The Company maintains a
formal Business Resumption plan, and is in the process of supplementing that
plan with a contingency plan relevant to Year 2000 issues. The contingency
planning process was well under way by year end 1998, and is expected to be
completed and validated by June 30, 1999.
The Company believes, however, that due to the widespread nature of
potential Year 2000 issues, the contingency planning process is an ongoing one
which will require further modifications as the Company obtains additional
information, specifically regarding third party Year 2000 readiness.
The Company has identified significant (large) commercial depositors and
performed an assessment of their efforts towards Year 2000 readiness. Should
these depositors be unable to function financially as a result of their own Year
2000 issues, or significantly reduce their deposit levels, there could be an
impact on the Bank's own cash flow. Our initial assessment evaluates this risk
as minimal, and all customers identified in this risk assessment are aware of
the Year 2000 issues and are planning Year 2000 readiness efforts. The Company
will periodically monitor these depositors throughout 1999.
A risk assessment of large commercial borrowers was also completed
representing approximately 70 commercial customers, or 74% of commercial loan
outstandings. Based on survey results, all are rated as moderate to low risk. We
plan to selectively monitor the progress of certain moderate risk borrowers
throughout 1999. New commercial loans exceeding our borrowing threshold for risk
ratings will be measured to assure information technology utilized by the
borrower will by Year 2000 ready.
The Company has a comprehensive Customer Awareness program that includes
training and education of employees regarding Year 2000 issues and financial
industry efforts toward readiness. Our awareness program provides periodic
communication to customers and the community describing our preparation efforts.
Management continues to quantify expenses related to Year 2000
readiness. The Company has not been required to provide additional staff for the
express purpose of Year 2000 readiness, but rather has utilized existing
internal staff. Our budgeted expenses approximate $45,000, of which $15,000 will
be allocated for renovation of core processing software. Expenses associated
with Year 2000 preparedness are not expected to have a material impact on the
financial condition of the Company.
The Company's objective is to migrate to the Year 2000 with minimal
impact on customers, and be prepared for January 1, 2000. We believe that the
manner in which we have addressed this issue underscores our strengths. The
Company has the resources and the technological expertise to address such new
issues, but is small enough to enable us to make adjustments to internal
programs and systems without affecting the ability to service our customers. The
Company cannot provide assurance that failure of third parties to adequately
address the Year 2000 issue will not have an adverse impact. The Company intends
to continue to assess critical suppliers and customers to determine their
readiness. The Company is confident that with the implementation of the Year
2000 initiatives as scheduled, the possibility of significant interruptions to
normal operations should be reduced.
The preceding "Year 2000" discussion contains various statements which
represent the Company's beliefs or expectations regarding future events. All
forward-looking statements involve a number of risks and uncertainties that
could cause the actual results to differ materially from the projected results.
Factors that cause the differences include, but are not limited to, the actions
of governmental agencies or other third parties with respect to Year 2000
problems.
<PAGE> 11
PAGE 9
ITEM 3 - QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
The Company does not hold investments in instruments (ie: such as
derivative financial or commodity instruments) that are considered to be subject
of any market risk.
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings - None to report
ITEM 2. Changes in Securities - None to report
ITEM 3. Defaults upon Senior Securities - None to report
ITEM 4. Submission of Matters To a Vote of Security Holders
The 1999 Annual Shareholders meeting of the Registrant was held on
April 27, 1999. At the meeting, Robert W. Allen, William F. Barrett
and David C. Koch were reelected as directors for a term of three (3)
years. The following votes were cast for the nominees:
FOR WITHHELD
Robert W. Allen 1,219,559 27,821
William F. Barrett 1,221,738 25,642
David C. Koch 1,220,634 26,746
The following directors also continue their terms of office:
David M. Taylor
Phillip Brothman
Richard M. Craig
LaVerne G. Hall
Richard C. Stevenson
Thomas H. Waring, Jr.
Also, at the 1999 Annual Shareholders meeting, the shareholders
approved The Evans Bancorp, Inc. 1999 Stock Option Plan by the
following vote:
FOR AGAINST ABSTAIN
1,128,293 96,586 22,501
ITEM 5. Other Information:
A cash dividend of $.23 per share was paid on April 1, 1999 to
holders of record on February 23, 1999. A total of $390,448 was paid
on 1,697,598 shares.
ITEM 6. Exhibits and Reports on form 8-K - None to report
The following Exhibits are filed as part of this Report:
EXHIBIT NO. DESCRIPTION PAGE
27 Financial Data Schedule 11
<PAGE> 12
PAGE 10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
Evans Bancorp, Inc.
DATE
May 14, 1999 /s/Richard M. Craig
Richard M. Craig
President and Chief Executive Officer
DATE
May 14, 1999 /s/James Tilley
James Tilley
Senior Vice President
<PAGE> 13
PAGE 11
EXHIBIT 27
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from Evans
Bancorp Inc. Balance Sheet and Statement of Income (Unaudited) as of March 31,
1999, and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000842518
<NAME> EVANS BANCORP INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 5,247,836
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 9,460,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 45,819,401
<INVESTMENTS-CARRYING> 3,994,972
<INVESTMENTS-MARKET> 0
<LOANS> 108,406,972
<ALLOWANCE> (760,151)
<TOTAL-ASSETS> 179,614,702
<DEPOSITS> 152,878,897
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,271,673
<LONG-TERM> 5,000,000
0
0
<COMMON> 849,475
<OTHER-SE> 17,386,622
<TOTAL-LIABILITIES-AND-EQUITY> 179,614,702
<INTEREST-LOAN> 2,328,626
<INTEREST-INVEST> 649,886
<INTEREST-OTHER> 39,211
<INTEREST-TOTAL> 3,017,723
<INTEREST-DEPOSIT> 1,120,084
<INTEREST-EXPENSE> 1,203,959
<INTEREST-INCOME-NET> 1,813,764
<LOAN-LOSSES> 35,000
<SECURITIES-GAINS> 1,064
<EXPENSE-OTHER> 1,418,514
<INCOME-PRETAX> 675,655
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 494,455
<EPS-PRIMARY> .29
<EPS-DILUTED> 0
<YIELD-ACTUAL> 7.78
<LOANS-NON> 718,495
<LOANS-PAST> 456,570
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 729,199
<CHARGE-OFFS> 5,146
<RECOVERIES> 1,098
<ALLOWANCE-CLOSE> 760,151
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<ALLOWANCE-FOREIGN> 0
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</TABLE>
