Evans Bancorp (NYSE:EVBN)'s Q3 2023 earnings call on October 26, led by CEO David Nasca and CFO John Connerton, revealed an earnings per share (EPS) of $0.66, falling short of the anticipated $0.72. The bank's margin was impacted by an industry-wide increase in deposit costs and a reversal in interest income due to government reimbursement issues with a significant credit client.
Despite these challenges, Evans Bancorp reported robust growth and operational performance. The company noted an 8% annualized loan growth for the quarter and is implementing measures to control costs. These efforts include enhancing operating efficiency and improving customer experience.
For Q3, the company reported earnings of $3.6 million or $0.60 per diluted share, a decrease compared to the same quarter last year. This decline was attributed to lower net interest income but was somewhat offset by increased insurance service and fee revenue. The overall expenses for the company decreased during this period.
John Connerton explained that net interest income was affected by higher interest expense due to competitive pressure on deposit pricing. This fact counterbalanced increases in interest income driven by growth in variable rate portfolios following a series of Federal Reserve's rate increases.
Total non-interest expense increased 2% from the sequential second quarter but was down 10% from the same quarter last year, mainly within salaries and employee benefits line.
The company cautioned that all forward-looking statements made during the call are subject to risks as documented in their SEC filings. This includes strategic updates they provided regarding Q2 2023 results and future plans.
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