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4Q Results

Evans Bancorp's Earnings Double on Improved Loan Quality

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Evans Bancorp Inc. in Angola, N.Y., has reported that fourth-quarter income more than doubled from a year ago, to $1.3 million, due to higher net interest income and a lower provision for loan and lease losses.

The $741 million-asset company also said that income for 2011 climbed 27% to $6.1 million.

Evans Bancorp's fourth-quarter net interest income rose 13%, to $6.9 million, from a year earlier. This included a $200,000 adjustment from the recovery of a previously marked down commercial loan. Core loans increased almost 13% from a year earlier, to $577 million, with most of the growth coming from the commercial and industrial and commercial mortgage loan portfolios.

The company's investment securities totaled $107 million, up 14.7% from a year earlier. Growth in the investment portfolio was concentrated in mortgage-backed securities.

The fourth-quarter provision for loan losses totaled $800,000, down 43% from a year ago. Nonperforming loans in the fourth quarter increased 27%, to $14 million, from a year earlier because five commercial real estate loans totaling $2.3 million were placed on nonaccrual status in 2011.

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