SEATTLE, WA – (MARKET WIRE) – February 08, 2007 — EvergreenBancorp, Inc. (OTCBB:EVGG), the holding company for EvergreenBank, reported net income for 2006 of $1.82 million, or $.88 per diluted share, compared with $966 thousand, or $.47 per diluted share, for 2005. Earnings for the fourth quarter of 2006 were $593 thousand, or $.27 per diluted share compared with $252 thousand, or $0.12 per share for the same period last year. Assets at year-end totaled $343.52 million, compared with $249.19 million at year-end 2005.
Gerald Hatler, President and CEO of EvergreenBancorp, Inc., said, “Earnings for the fourth quarter rounded out a year of quarter over quarter over quarter of improving earnings both relatively and absolutely. The final result was a year that produced record earnings for our company and record return on equity for our shareholders.”
Financial highlights
Year 2006 highlights include:
•
Net income increased $853 thousand, or 88%
•
Diluted earnings per share rose 85%, to $.88
•
Total assets increased to $343.52 million, a $94.33 million, or 38%, increase from one year earlier
•
Net loans rose $102.53 million, or 55%, to $289.67 million
•
Deposits rose $56.55 million, or 28%, from $199.89 million to $256.44 million
•
An additional $4.55 million in equity capital, net of offering costs, was raised through a secondary offering of common stock to support current and future growth. The company’s regulatory capital was further boosted by a $7 million Trust Preferred stock offering completed in the fourth quarter of 2006
•
Credit quality continued to be strong in 2006, with nonperforming loans at year-end totaling .17% of loans outstanding, compared with .61% at year-end 2005
Operating Results
Net interest income before provision for loan losses totaled $12.54 million in 2006 compared with $10.26 million for 2005, an increase of 22%. Non-interest income for 2006 totaled $1.83 million, an increase of $135 thousand, or 8%, over 2005.
Net interest income before provision for loan losses for the fourth quarter of 2006 was $3.50 million, an increase of $799 thousand, or 30%, over the $2.70 million recorded in the same quarter last year. This increase was primarily due to increased loan totals. For the year, the company’s provision for loan losses totaled $810 thousand. This compares with $423 thousand in 2005. Non-interest income in the fourth quarter of 2006 increased 17% over year-earlier levels, to $485 thousand from $413 thousand.
EvergreenBancorp’s net interest margin before provision for loan losses decreased to 4.67% in 2006 compared with 5.15% in 2005. The decrease was primarily the result of an increase in the bank’s cost of funds, reflecting greater reliance on non-core funding sources to meet strong loan demand. For the fourth quarter of 2006, the Company’s net interest margin was 4.57%, compared with 5.21% for the same period in 2005.
Non-interest expense for 2006 was $10.95 million compared with $10.15 million for 2005. This represents an increase of $800 thousand, or 8%. For the fourth quarter, non-interest expense was $2.89 million compared with $2.65 million for the same quarter in 2005, an increase of 9%. The ratio of non-interest expense to average assets continues to improve. For 2006, the ratio stood at 3.8% compared with 4.7% for last year. In the fourth quarter, the ratio improved further, to an annualized 3.6%, from 4.7% during the fourth quarter of 2006 and 2005, respectively.
Hatler continued, “The favorable growth in our assets is reflected in our results from operations. As we continue to manage our net interest margin in light of the challenging interest rate environment, our discipline in controlling our non-interest expenses accelerated the growth in our bottom line.”
Return on average equity for 2006 was 9.55%, compared with 5.49% for 2005. For the fourth quarter of 2006, annualized return on average equity was 10.79% compared with 5.71% for the same period last year.
Balance Sheet Results
The company’s growth to $343.52 million in assets was supported by a record total in deposits ending at $256.44 million compared to $199.89 million in 2005, an increase of 28%. Asset quality remains strong, with net charge-offs for the year of just $82 thousand. Nonperforming loans at the end of 2006 stood at $497 thousand, or .17% of total loans outstanding, compared with $1.15 million, or .61% of total loans outstanding on December 31, 2005. The Bank’s allowance for loan losses stood at $2.78 million, or .95% of total loans at year-end 2006 compared with $2.06 million, or 1.09%, one year earlier. The company’s capital to assets ratio ended at 6.9%, reflecting both EvergreenBancorp’s significant growth over the past 12 months and the $4.55 million raised in our common stock offering in the fourth quarter. On December 31, 2005, the ratio stood at 7.12%.
About EvergreenBancorp and EvergreenBank
Founded in 1971, EvergreenBank is a subsidiary of EvergreenBancorp, Inc., a bank holding company headquartered in Seattle, Washington. EvergreenBank is an independent community banks with six offices in Seattle, Bellevue, Lynnwood, and Federal Way. The Bank is an award-winning institution, named in 2005 as one of the “best companies to work” for by Washington CEO magazine, as well as “best rated bank service” by Consumer Checkbook Magazine. It offers a full suite of personal and business banking services. Services include commercial, real estate, and consumer lending; savings, checking, and certificate of deposit accounts; health savings accounts; Internet banking; and merchant credit card processing services.
EvergreenBancorp stock trades on the Over-The-Counter Bulletin Board under the EVGG symbol. Visit www.EvergreenBancorp.com to learn more.
This press release contains “forward-looking statements” within the meaning of federal securities law, including statements concerning business strategies and their intended results, and similar statements concerning expectations that are not historical facts. The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the effects of economic conditions, demand for financial services, competitive conditions, regulatory changes, and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.
Contact: EvergreenBancorp, Inc., Inc. Gordon Browning Executive Vice President and Chief Financial Officer 206-749-7350
1
Statements of Income (Unaudited)
(in thousands)
Twelve months ended
December 31,
2006
2005
Change
Interest and dividend income
Loans, including fees
$
19,352
$
12,371
$
6,981
Federal funds sold and other
130
179
-49
Investments securities:
Taxable securities
1,167
1,036
131
Tax exempt securities
137
126
11
Total interest and dividend income
20,786
13,712
7,074
Interest expense
Deposits
5,706
2,521
3,185
Federal funds purchased
75
15
60
Advances from Federal Home Loan Bank
1,979
568
1,411
Junior subordinated debt
491
345
146
Total interest expense
8,251
3,449
4,802
Net interest income
12,535
10,263
2,272
Provision for loan losses
810
423
387
Net interest income after provision for loan losses
11,725
9,840
1,885
Noninterest income
Service charges on deposit accounts
1,165
1,177
-12
Net Merchant credit card processing
157
151
6
Earnings in value of CSV-life insurance
226
90
136
Other noninterest income
280
275
5
Total noninterest income
1,828
1,693
135
Noninterest expense
Salaries and employee benefits
5,416
4,898
518
Occupancy and equipment
1,811
1,697
114
Data processing
832
744
88
Professional fees
318
391
-73
Marketing
485
473
12
State and local taxes
358
306
52
Other noninterest expense
1,730
1,641
89
Total noninterest expense
10,950
10,150
800
Income before income tax expense
2,603
1,383
1,220
Income tax expense
784
417
367
Net income
$
1,819
$
966
$
853
Basic earnings per share
$
0.89
$
0.48
$
0.41
Diluted earnings per share
$
0.88
$
0.47
$
0.41
Consolidated Balance Sheets
(Unaudited)
December 31,
December 31,
Assets
2006
2005
Change
Cash and due from banks
$
9,160
$
12,379
-$3,219
Interest-bearing deposits in financial institutions
760
2,811
-2,051
Federal funds sold
1,983
2,112
-129
Total cash and cash equivalents
11,903
17,302
-5,399
Securities available for sale
29,531
33,550
-4,019
Loans
292,449
189,188
103,261
Allowance for loan losses
-2,784
-2,056
-728
Net Loans
289,665
187,132
102,533
Premises and equipment
3,078
3,179
-101
Bank owned life insurance
5,316
5,090
226
Accrued interest and other assets
4,027
2,939
1,088
Total assets
$
343,520
$
249,192
$
94,328
Liabilities
Deposits:
Noninterest bearing
$
55,373
$
64,635
-$9,262
Interest bearing
201,062
135,255
65,807
Total deposits
256,435
199,890
56,545
Junior subordinated debt
12,217
5,000
7,217
Advances from Federal Home Loan Bank
46,805
23,849
22,956
Accrued expenses and other liabilities
4,244
2,717
1,527
Total liabilities
319,701
231,456
88,245
Stockholders’ equity
Preferred stock: No par value; 100,000 shares authorized
issued and outstanding — none
0
0
0
Common stock and surplus: 2004 - No par value; 15,000,000 shares authorized; 2,353,262 shares issued and outstanding,
at 2006; 2,000,467 shares issued at 2005
21,129
16,005
5,124
Retained earnings
3,453
2,187
1,266
Accumulated other comprehensive loss
-763
-456
-307
Total stockholders’ equity
23,819
17,736
6,083
Total liabilities and stockholders’ equity
$
343,520
$
249,192
$
94,328
2
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