EvergreenBancorp Reports 55% Increase in 2007 Third Quarter Net Income
SEATTLE, WA – October 18, 2007 – EvergreenBancorp, Inc. (OTCBB:EVGG), the holding company for EvergreenBank, reported net income for the third quarter of 2007 of $802,000, an increase of 55% from the $517,000 earned in the same quarter last year. Fully diluted earnings per share were $0.33, compared with $0.25 for the same quarter last year, a 32% increase. Total assets as of September 30, 2007 increased 19% to $410.0 million from $343.5 million at December 31, 2006.
Gerald Hatler, President and CEO of EvergreenBancorp, Inc., said, “We are quite pleased with the continued strong performance of our company. The backdrop of the strong economy in the Puget Sound region provides a great setting for executing our strategic plan.”
Financial Highlights
Third quarter and year-to-date 2007 highlights include:
•
Earnings per share (diluted) of $0.33, compared with $0.25 in third quarter of 2006, rose 32%. Year-to-date 2007 earnings per share (diluted) were $0.92 compared with $0.60 in 2006.
•
Net income for the third quarter of 2007 of $802,000 was up from $517,000 the same quarter last year, a $285,000 increase. Year to date, net income was $2.2 million, compared with $1.2 million for the same period last year.
•
Total assets increased 19% to $410.0 million from year-end 2006.
•
Net loans totaled $350.7 million at quarter end, a 21% increase year to date.
•
Total deposits as of September 30, 2007 were $320.5 million, a $64.1 million, or 25% increase year to date.
•
Annualized return on average equity for the quarter totaled 13% compared with 11% in the third quarter of 2006. Year-to-date 2007 annualized return on average equity was 12% compared with 9% for the first nine months of 2006.
•
The company’s efficiency ratio for the third quarter was 64% compared with 73% in the same quarter last year.
•
Nonperforming assets were 0.26% of total assets at quarter end, compared with 0.14% at the end of last year.
Operating Results
Net interest income for the third quarter of 2007, before provision for loan losses, was $4.3 million, an increase of $1.0 million, or 32%, over the $3.3 million recorded in the same quarter last year. After provision for loan losses, net interest income for the quarter totaled $3.8 million compared with $3.0 million in the third quarter of 2006. Noninterest income increased 16% over year earlier levels, to $515,000 from $443,000.
EvergreenBancorp’s net interest margin (taxable-equivalent) was 4.51% in the third quarter of 2007 compared with 4.63% in the third quarter of 2006. The decrease reflects the company’s greater reliance on non-core funding sources to meet continued strong loan demand. Year-to-date 2007 net interest margin (taxable-equivalent) was 4.44% compared with 4.72% for the first nine months of 2006.
Noninterest expense for the third quarter of 2007 was $3.1 million compared with $2.7 million for the same quarter in 2006. This represents an increase of $384,000, or 14%.
Balance Sheet Results
Total assets grew to $410.0 million at September 30, 2007 compared with $343.5 million at year-end 2006, an increase of 19%. Asset quality remains strong with nonperforming assets at the end of the third quarter of 2007 totaling $1.1 million, or 0.26% of total assets, compared with $497,000, or 0.14% of total assets outstanding on December 31, 2006. The Bank’s allowance for loan losses stood at $3.7 million, or 1.05% of total loans at September 30, 2007 compared with $2.8 million, or 0.95% of total loans at the end of 2006.
Hatler continued, “Strong balance sheet growth accompanied by consistently high asset quality have become hallmarks of EvergreenBank’s performance. Combined, these two aspects provide a strong base for moving into the future. Our shareholders have come to expect consistent improvement in return on equity.”
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 bank with six offices in Seattle, Bellevue, Lynnwood, and Federal Way. The Bank 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. 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.
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EVERGREENBANCORP, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS September 30, 2007 and December 31, 2006 (in thousands, except share data)
September 30,
December 31,
2007
2006
Assets
Cash and due from banks
$
8,276
$
9,160
Federal funds sold
1,932
1,983
Interest-bearing deposits in financial institutions
8,213
760
Total cash and cash equivalents
18,421
11,903
Securities available-for-sale
26,388
29,531
Loans
354,438
292,449
Allowance for loan losses
(3,710
)
(2,784
)
Net loans
350,728
289,665
Premises and equipment
3,082
3,078
Cash surrender value of bank owned life insurance
5,487
5,316
Accrued interest and other assets
5,859
4,027
Total assets
$
409,965
$
343,520
Liabilities
Deposits
Noninterest-bearing
$
56,040
$
55,373
Interest-bearing
264,458
201,062
Total deposits
320,498
256,435
Federal Home Loan Bank advances
46,010
46,805
Junior subordinated debt
12,372
12,217
Accrued expenses and other liabilities
5,407
4,244
Total liabilities
384,287
319,701
Stockholders’ equity
Preferred stock; no par value; 100,000 shares authorized; none issued
—
—
Common stock and surplus; no par value; 15,000,000 shares authorized; 2,378,388 shares issued at September 30, 2007 (includes 19,500 unvested restricted stock); 2,353,262 shares issued at December 31, 2006
21,277
21,129
Retained earnings
5,163
3,453
Accumulated other comprehensive loss
(762
)
(763
)
Total stockholders’ equity
25,678
23,819
Total liabilities and stockholders’ equity
$
409,965
$
343,520
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EVERGREENBANCORP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Three month and nine month periods ended September 30, 2007 and 2006 (in thousands, except per share data)
Three months ended
Nine months ended September
September 30,
30,
2007
2006
2007
2006
Interest income
Loans, including fees
$
7,622
$
5,170
$
20,878
$
13,570
Taxable securities
276
302
848
868
Tax-exempt securities
31
35
94
103
Federal funds sold and other
104
33
211
86
Total interest income
8,033
5,540
22,031
14,627
Interest expense
Deposits
3,033
1,636
7,799
3,857
Federal funds purchased
17
15
81
50
Federal Home Loan Bank advances
470
516
1,588
1,357
Junior subordinated debt
215
115
763
323
Total interest expense
3,735
2,282
10,231
5,587
Net interest income
4,298
3,258
11,800
9,040
Provision for loan losses
525
230
1,021
578
Net interest income after provision for loan losses
3,773
3,028
10,779
8,462
Noninterest income
Service charges on deposit accounts
363
292
1,061
847
Merchant credit card processing
45
42
137
112
Other commissions and fees
16
23
47
119
Net earnings on bank-owned life insurance
56
57
171
169
Other noninterest income
35
29
95
96
Total noninterest income
515
443
1,511
1,343
Noninterest expense
Salaries and employee benefits
1,517
1,325
4,370
4,011
Occupancy and equipment
501
418
1,464
1,299
Data processing
232
208
710
619
Professional fees
70
82
262
225
Marketing
140
159
366
349
State revenue and sales tax expense
150
98
396
254
Other noninterest expense
493
429
1,470
1,304
Total noninterest expense
3,103
2,719
9,038
8,061
Income before income taxes
1,185
752
3,252
1,744
Income tax expense
383
235
1,047
518
Net income
$
802
$
517
$
2,205
$
1,226
Basic earnings per share
$
0.34
$
0.26
$
0.94
$
0.61
Diluted earnings per share
$
0.33
$
0.25
$
0.92
$
0.60
Contacts: EvergreenBancorp, Inc. Gordon Browning Executive Vice President and Chief Financial Officer 206-749-7350
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