Evans Bancorp reported a 15 percent increase in its third-quarter net income, to $2.4 million, adding to its strong year of results.
The Hamburg-based parent of Evans Bank said it benefited from a mix of higher net interest income, lower non-interest expense and increased fee income.
Its net interest income from loans and deposits rose 3.3 percent from a year ago, to $7.2 million.
Its non-interest income was down about 19 percent, to $2.6 million. That was influenced by a $1.6 million loss on a tax credit investment in a community-based project in the quarter. But the loss was partially offset by a $700,000 gain related to the termination of a loss-sharing agreement with the Federal Deposit Insurance Corp. related to Evans’ previous acquisition of Waterford Village Bank.
In some other areas of non-interest income, such as deposit service charges and insurance service and fee revenue, Evans recorded increases. Evans has been focusing on growing its non-interest income, said David J. Nasca, president and chief executive officer.
At the same time, he said, Evans has been diligent about managing its expenses: its non-interest expense of $7.3 million was down slightly from the year before.
Evans recorded loan growth of 4.9 percent from the previous year, to $626 million. “We feel we’re able to grow loans without sacrificing credit quality,” said Gary A. Kajtoch, executive vice president and chief financial officer.
Nasca said the bank has managed to post strong numbers in a variety of areas, including loan growth, deposit growth, net interest income and expense management. He said banks are facing a loan demand that is “uneven,” with factors like the unemployment rate and disruptions like the federal government’s partial shutdown causing uncertainty. And competition for those loans is intense.
Even so, Nasca said, the banking industry appears to be getting healthier. “I feel very good about our positioning,” he said.
Through the first nine months, Evans’ net income was $6.2 million, up 3 percent from the same nine-month span last year.
Evans as of June 30 ranked sixth in deposit market share in the Buffalo Niagara region, at about 2 percent, according to FDIC data. It’s stock price fell 28 cents, to $20.61, on Thursday.