Evans Bancorp : Reports Record Net Income for 2019

(compared with prior-yearperiod unless otherwise noted)

News

Release

Evans Bancorp, Inc. One Grimsby Drive Hamburg, NY 14075

CORRECTING and REPLACING Evans Bancorp Reports Record Net Income for 2019

CORRECTION….by Evans Bancorp, Inc.

HAMBURG, NY, February 18, 2020 - In the press release, non-interest income, tax expense, net income, earnings per diluted share and all related information have been updated to reflect the change in timing of an historic tax credit transaction from the fourth quarter 2019 to the first quarter of 2020.

The corrected release reads:

Evans Bancorp Reports Record Net Income for 2019

Evans Bancorp, Inc. (the "Company" or "Evans") (NYSE American: EVBN), a community financial services company serving Western New York since 1920, today reported its results of operations for the fourth quarter and year ended December 31, 2019.

FOURTH QUARTER AND FULL YEAR 2019 HIGHLIGHTS

• Record annual net income of $17.0 million, up 4%
• Net interest income increased 8% to $52 million in 2019 driven by higher loan balances
• Insurance service and fee revenue increased 14% to $10.7 million during 2019
• Average demand deposits grew 10% in the fourth quarter
• Entered into an agreement to acquire Fairport Savings Bank

For the full year 2019, net income increased 4% to $17.0 million, or $3.42 per diluted share, from $16.4 million, or $3.32 per diluted share, in 2018. The increase reflected higher net interest income, largely due to an expanded commercial loan portfolio, and higher fee-based business income. The return on average equity was 12.08% for 2019, compared with 13.20% in 2018.

Net income was $3.7 million, or $0.75 per diluted share, in the fourth quarter of 2019, compared with

$5.2 million, or $1.04 per diluted share, in the third quarter of 2019 and $4.5 million, or $0.90 per diluted share, in last year's fourth quarter. The decrease from the linked quarter was the result of lower net interest income reflecting lower interest rates and seasonally lower insurance fee revenue. Return on average equity was 10.16% for the fourth quarter of 2019, compared with 14.29% in the third quarter of 2019 and 13.86% in the fourth quarter of 2018.

"2019 was an outstanding year for the organization. Our performance demonstrated solid growth and the success of our strategic focus as well as a continued commitment to building and strengthening the business for the long-term," said David J. Nasca, President and CEO of Evans Bancorp, Inc. "We grew and rebalanced our deposit portfolio mix, continued to drive strong loan growth and increased non-interest income. Operations and offerings in insurance, employee benefits, cash management and municipal services were strengthened and bolstered fee-based business income."

"2020 is an important milestone in Evans history, as this year marks a century of serving Western New York. Stable, prudent and strategic management has enabled us to effectively serve all our stakeholders; associates, shareholders, clients and the community over this long history. We believe this along with a relationship focus and strong cultural foundation provides sustainability and excellent prospects for the continued growth and

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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success of our community based financial organization."

On December 19, 2019, Evans entered into an agreement to acquire Fairport Savings Bank ("FSB"). Based on information as of September 30, 2019, the combined company will have approximately $1.8 billion in total assets, including $1.5 billion in total loans, and $1.5 billion in total deposits. The acquisition is expected to close in the second quarter of 2020.

Net Interest Income

($ in thousands)

		4Q 2019			3Q 2019			4Q 2018
Interest income	$	16,028	$	16,845	$	15,309
Interest expense		3,236			3,224			2,936
Net interest income		12,792			13,621			12,373
(Credit) provision for loan losses		(122)			(431)			(276)
Net interest income after provision	$	12,914	$	14,052	$	12,649

Net interest income decreased $0.8 million, or 6%, from the third quarter of 2019, but increased $0.4 million, or 3%, from the prior-year fourth quarter. The decrease from the trailing quarter was driven by a decline in loan yields as a result of the re-pricing of variable rate loans tied to the Company's prime rate after another Federal Reserve rate cut. The third quarter of 2019 also included $0.2 million of interest related to the recovery of a single commercial loan that was previously written-off. The increase from the prior-year fourth quarter reflects growth in average commercial loans, including commercial real estate and commercial and industrial loans, which were $996 million, up $83 million.

Fourth quarter net interest margin of 3.67% decreased 27 basis points from the 2019 third quarter and 3 basis points from the fourth quarter of 2018. Excluding the interest related to the third quarter loan recovery, net interest margin decreased 22 basis points, reflecting the Federal Reserve's decrease of the fed funds rate. The cost of interest-bearing liabilities remained 1.24% in the fourth quarter, the same as the third quarter of 2019 and compared with 1.14% in the fourth quarter of 2018.

The $0.1 million release of allowance for loan losses reflects improved asset quality on impaired loans and marginal loan growth in the fourth quarter.

Asset Quality

($ in thousands)

		4Q 2019		3Q 2019		4Q 2018
Total non-performing loans	$	14,396		$	13,839		$	18,991
Total net loan charge-offs (recoveries)		85			(565)			153
Non-performing loans/ Total loans		1.17 %		1.13 %		1.64 %
Net loan charge-offs (recoveries)/ Average loans		0.03 %		(0.19)%		0.05 %
Allowance for loan losses/ Total loans		1.24 %		1.26 %		1.28 %

"We are consistent and disciplined with deep knowledge of our customers and their businesses. As a result, we have maintained strong asset quality metrics," stated John Connerton, Chief Financial Officer of Evans Bank. "Given the challenges from the yield curve, we are carefully managing our balance sheet and continually looking to improve our asset mix to be in a position to drive expansion of our net interest margin."

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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Non-Interest Income

($ in thousands)
		4Q 2019			3Q 2019			4Q 2018
Deposit service charges	$	747	$	687	$	571
Insurance service and fee revenue		2,120			3,225			2,233
Bank-owned life insurance		164			160			166
Loss on tax credit investment		(158)			-			(2,705)
Refundable NY state historic tax credit		115			-			1,832
Other income		1,005			1,092			941
Total non-interest income	$	3,993	$	5,164	$	3,038

The increase in deposit service charges reflects newer service offerings, including overdraft protection for small business customers.

Insurance revenue decreased $1.1 million from the third quarter due to the seasonal decrease in commercial lines insurance commissions. The $0.1 million decrease from the fourth quarter of 2018 was the result of a decrease in profit sharing revenues, resulting from higher loss ratios experienced by the insurance carriers.

The fourth quarter of 2018 included a $0.9 million loss on an investment in a historic rehabilitation tax credit. There were no significant historic tax credit transactions during 2019.

Non-Interest Expense

($ in thousands)
		4Q 2019			3Q 2019			4Q 2018
Salaries and employee benefits	$	7,355	$	7,644	$	7,220
Occupancy		868			853			855
Advertising and public relations		421			231			362
Professional services		1,059			1,009			599
Technology and communications		1,075			1,057			909
Amortization of intangibles		112			112			112
FDIC insurance		74			-			251
Other expenses		1,207			1,370			1,124
Total non-interest expenses	$	12,171	$	12,276	$	11,432

Salaries and benefits costs decreased 4% from the linked quarter as a result of severance costs recorded during the third quarter of 2019. The increase from the prior-year period reflects the strategic hiring of personnel to support the Company's continued growth.

The increase in advertising and public relations expense reflects costs related to promotional campaigns.

Fourth quarter professional service fees included $0.2 million in merger-related costs associated with the previously announced agreement to acquire FSB. The remaining variance to the prior-year period was the result of expenses related to the purchase of a new corporate headquarters and consulting services associated with business intelligence data systems.

The increase in technology and communications was due to higher software costs, volume related ATM card fees and online banking activity.

Reduced FDIC insurance expense when compared with the prior year reflects the benefit of the FDIC's small bank assessment credit.

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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The decrease in other expense when compared with the linked quarter reflects a $0.2 million charitable contribution made in the third quarter.

The Company's GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 72.5% in the fourth quarter of 2019, 65.4% in the third quarter of 2019, and 74.2% in the fourth quarter of 2018. The Company's non-GAAP efficiency ratio, which excludes amortization expense, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions, was 70.3% in the fourth quarter of 2019, compared with 64.8% in the third quarter of 2019 and 69.5% in last year's fourth quarter.

During the fourth quarter 2019, the Company recognized income tax expense of $1.0 million, representing an effective tax rate of 20.9%, compared with a $0.2 million benefit or an effective tax rate of -4.6% in the prior year's fourth quarter. Excluding the impact of historic tax credit transactions, the fourth quarter 2018 effective tax rate was 23.1%. The third quarter 2019 income tax expense was $1.8 million, or an effective tax rate of 25.6%.

2019 Year-end Balance Sheet Highlights

Total assets were $1.46 billion as of December 31, 2019, consistent with September 30, 2019 and $72 million, or 5%, higher than year-end 2018. The Company had strong loan growth as the portfolio increased $71 million, or 6%, to $1.23 billion during 2019 with the increase predominantly in commercial real estate.

Investment securities were $130 million at December 31, 2019, $7 million lower than the third quarter of 2019, and $3 million lower than at the end of 2018. The primary objectives of the Company's investment portfolio are to provide liquidity, secure municipal deposits, and maximize income while preserving safety of principal. With the flattened yield curve, there is a reduced advantage to purchasing longer-term investment securities.

Total deposits of $1.27 billion at December 31, 2019 were up $52 million, or 4% from the end of 2018. The increase reflects growth of $32 million, or 14% in demand deposits, $30 million, or 27% in NOW account deposits and $16 million, or 3% in savings deposits. Partially offsetting this growth was a $25 million, or 8%, decrease in time deposits, which included $14 million of brokered deposits. Total average demand deposits were $273 million for the 2019 fourth quarter, an increase of $25 million from the fourth quarter of 2018, mostly attributable to growth in retail demand deposits.

2019 Year in Review (compared with prior-year period)

Net interest income was $52.1 million, up 8%, primarily due to strong growth in the Company's commercial loan portfolio and improved net interest margin, partially offset by an increase in deposit interest expense. Net interest margin was 3.82%, an increase of 5 basis points.

The Company's provision for loan losses of $0.1 million was down from $1.4 million primarily due to improved asset quality of impaired loans including the successful restructure and payoff of a single commercial construction loan of $8 million, and a decrease in net loan charge-offs due to a single commercial loan recovery of $0.7 million, offset by loan growth and an increase in criticized loans. The ratio of non-performing loans to total loans was 1.17% compared with 1.64%.

Non-interest income was up $2.9 million, or 19%, to $18.1 million, mainly due to the increase in insurance service and fee revenue of $1.3 million, reflecting a full year of revenue from the R&S agency which was acquired during 2018, a $0.4 million increase in deposit service charges and a $0.9 million loss on an investment in a historic rehabilitation tax credit in 2018.

Non-interest expense increased $4.5 million, or 10%, to $47.8 million. The increase reflects higher salaries and employee benefits of $2.2 million, or 8%, due to the addition of new employees as part of the Company's planned growth strategy, merit increases, higher incentive compensation and severance costs. Professional services expenses were up $1.3 million, or 52% largely due to atypical legal and accounting costs, including those related to merger-related activities and costs associated with a cyber incident and related matters. Technology expenses were up 22%, or $0.7 million, to $4.1 million largely due to increased software costs, volume related ATM card fees and online banking activity. FDIC insurance expense decreased $0.6 million, or

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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58% as a result of lower assessment rates resulting from improved financial ratios and the application of the FDIC's small bank assessment credit.

The Company's GAAP efficiency ratio was 68.2% in 2019 compared with 68.4% in 2018. The Company's non- GAAP efficiency ratio, as previously defined, was 67.2% compared with 66.9%.

Income tax expense for the year was $5.2 million, representing an effective tax rate of 23.5% compared with an effective tax rate of 12.2% in 2018. Excluding the impact of the 2018 historic tax credit transactions, the effective tax rate was 18.8% in 2018.

Capital Management

The Company consistently maintains regulatory capital ratios measurably above the Federal "well capitalized" standard, including a Tier 1 leverage ratio of 10.33% at December 31, 2019 compared with 10.11% at September 30, 2019 and 9.73% at December 31, 2018. Book value per share increased to $30.11 from $29.44 at September 30, 2019 and $27.13 at December 31, 2018.

In 2019, the Company paid cash dividends of $1.04 per common share, up 13%.

Outlook

Mr. Nasca concluded, "We believe the economic environment within the markets we serve is solid and provides opportunity for us to expand our business and create deeper relationships with existing clients. The differentiators will continue to be our talented people and a focus on adding value to relationships while continuing to invest back into our communities.

"We expect that the current interest rate environment and geo-political issues will present their share of challenges. Our ability to focus on our clients, continue our growth and targeted strategic investments should help offset these pressures and allow us to continue to build earnings power. We are excited about the acquisition of FSB Bancorp and its Fairport Savings Bank which was announced in December. The acquisition will let us bring our community focused commercial business model to an expanded market, scale the consumer and mortgage banking activities of the combined organization for efficiency and profitability, deliver additional deposit clients and allow Evans to expand its competitive fee-based businesses. We believe the combined capabilities of Evans and FSB create breadth and scale that will benefit clients, communities and associates while adding to returns.

"The Company expects the transaction to close in the second quarter of 2020, subject to the satisfaction of normal and customary closing conditions, including regulatory and FSB shareholder approvals."

About Evans Bancorp, Inc.

Evans Bancorp, Inc. is a financial holding company and the parent company of Evans Bank, N.A., a commercial bank with $1.5 billion in assets and $1.3 billion in deposits at December 31, 2019. Evans is a full- service community bank, with 15 financial centers providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. Evans Bancorp's wholly owned insurance subsidiary, The Evans Agency, LLC, provides life insurance, employee benefits, and property and casualty insurance through ten insurance offices in the Western New York region. Evans Investment Services provides non-deposit investment products, such as annuities and mutual funds.

Evans Bancorp, Inc. and Evans Bank routinely post news and other important information on their websites, at www.evansbancorp.comand www.evansbank.com.

Safe Harbor Statement: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning future business, revenue and earnings. These statements are not historical facts or guarantees of future performance, events or results. There are risks, uncertainties and other factors that could cause the actual results of Evans Bancorp to differ materially from the results expressed or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures among financial services companies, interest rate trends, general economic conditions, changes in legislation or regulatory requirements, effectiveness at achieving stated goals and strategies, and difficulties in achieving operating efficiencies. These risks and uncertainties are more fully described in Evans Bancorp's Annual and Quarterly Reports filed with the

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Evans Bancorp undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new, updated information, future events or otherwise.

For more information contact:	-OR-
John B. Connerton	Deborah K. Pawlowski
Executive Vice President and Chief Financial Officer	Kei Advisors LLC
Phone: [phone]	Phone: [phone]
Email:[e-mail]	Email:[e-mail]

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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EVANS BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (UNAUDITED) (in thousands, except shares and per share data)

		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
ASSETS
Investment Securities	$	130,308	$	136,977	$	137,438	$	140,731		$	133,788
Loans		1,226,531				1,219,792				1,212,699				1,185,429				1,155,930
Allowance for loan losses		(15,175)				(15,382)				(15,248)				(15,207)				(14,784)
Goodwill and intangible assets		12,545				12,657				12,768				12,880				12,992
Operating lease right-of-use asset		3,720				3,862				4,003				4,142				-
All other assets		102,301				97,826				119,460				128,206				100,281
Total assets	$	1,460,230	$	1,455,732	$	1,471,120	$	1,456,181		$	1,388,207
LIABILITIES AND STOCKHOLDERS'
EQUITY
Demand deposits		263,717				271,633				243,860				242,156				231,902
NOW deposits		140,654				141,384				145,620				122,204				110,450
Savings deposits		587,142				568,156				603,180				618,471				571,479
Time deposits		275,927				277,633				290,251				292,892				301,227
Total deposits		1,267,440				1,258,806				1,282,911				1,275,723				1,215,058
Borrowings		23,755				28,748				25,298				23,812				24,472
Operating lease liability		4,154				4,302				4,449				4,594				-
Other liabilities		16,428				19,007				17,175				17,617				17,031
Total stockholders' equity		148,453				144,869				141,287				134,435				131,646
SHARES AND CAPITAL RATIOS
Common shares outstanding		4,929,593				4,920,381				4,915,678				4,860,316				4,852,868
Book value per share	$	30.11	$	29.44	$	28.74	$	27.66		$	27.13
Tier 1 leverage ratio		10.33	%			10.11	%			9.99	%			9.74	%			9.73	%
Tier 1 risk-based capital ratio		12.32	%			11.87	%			11.86	%			11.68	%			11.84	%
Total risk-based capital ratio		13.56	%			13.11	%			13.11	%			12.93	%			13.09	%
ASSET QUALITY DATA
Total non-performing loans	$	14,396	$	13,839	$	11,020	$	19,987		$	18,991
Total net loan charge-offs (recoveries)		85				(565)				49				115				153
Non-performing loans/Total loans		1.17	%			1.13	%			0.91	%			1.69	%			1.64	%
Net loan charge-offs (recoveries)/Average loans		0.03	%			(0.19) %			0.02	%			0.04	%			0.05	%
Allowance for loans losses/Total loans		1.24	%			1.26	%			1.26	%			1.28	%			1.28	%

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED OPERATIONS DATA (UNAUDITED)

(in thousands, except share and per share data)

		2019				2019				2019				2019				2018
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Interest income	$	16,028	$	16,845	$	16,325	$	15,542	$	15,309
Interest expense		3,236				3,224				3,191				3,034				2,936
Net interest income		12,792				13,621				13,134				12,508				12,373
Provision (credit) for loan losses		(122)				(431)				90				538				(276)
Net interest income after provision		12,914				14,052				13,044				11,970				12,649
Deposit service charges		747				687				602				533				571
Insurance service and fee revenue		2,120				3,225				2,901				2,442				2,233
Bank-owned life insurance		164				160				173				159				166
Loss on tax credit investment		(158)				-				-				-				(2,705)
Refundable NY state historic tax credit		115				-				-				-				1,832
Other income		1,005				1,092				1,054				1,061				941
Total non-interest income		3,993				5,164				4,730				4,195				3,038
Salaries and employee benefits		7,355				7,644				7,469				7,160				7,220
Occupancy		868				853				872				836				855
Advertising and public relations		421				231				214				167				362
Professional services		1,059				1,009				929				745				599
Technology and communications		1,075				1,057				1,099				893				909
Amortization of intangibles		112				112				112				112				112
FDIC insurance		74				-				150				207				251
Other expenses		1,207				1,370				1,304				1,104				1,124
Total non-interest expenses		12,171				12,276				12,149				11,224				11,432
Income before income taxes		4,736				6,940				5,625				4,941				4,255
Income tax provision (benefit)		988				1,776				1,243				1,221				(196)
Net income		3,748				5,164				4,382				3,720				4,451
PER SHARE DATA
Net income per common share-diluted	$	0.75	$	1.04	$	0.88	$	0.75	$	0.90
Cash dividends per common share	$	-	$	0.52	$	-	$	0.52	$	-
Weighted average number of diluted shares		4,990,863				4,976,639				4,953,072				4,932,451				4,928,551
PERFORMANCE RATIOS
Return on average total assets		1.02	%			1.41	%			1.21	%			1.04	%			1.26	%
Return on average stockholders' equity		10.16	%			14.29	%			12.71	%			11.19	%			13.86	%
Efficiency ratio		70.28	%			64.75	%			67.54	%			66.53	%			69.52	%

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

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EVANS BANCORP, INC AND SUBSIDIARIES

SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED) (in thousands)

		2019				2019				2019				2019				2018
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
AVERAGE BALANCES
Loans, net	$	1,213,837		$	1,202,634		$	1,183,379		$	1,153,067		$	1,128,015
Investment securities		137,354				143,731				148,465				141,249				137,175
Interest-bearing deposits at banks		32,061				24,661				28,132				44,024				60,061
Total interest-earning assets		1,383,252				1,371,026				1,359,976				1,338,340				1,325,251
Non interest-earning assets		89,415				89,513				85,720				86,386				83,482
Total Assets	$	1,472,667		$	1,460,539		$	1,445,696		$	1,424,726		$	1,408,733
NOW		136,077				134,008				123,515				112,571				110,612
Savings		593,694				591,585				605,524				591,641				581,048
Time deposits		274,856				281,798				289,794				298,586				301,957
Total interest-bearing deposits		1,004,627				1,007,391				1,018,833				1,002,798				993,617
Borrowings		27,241				25,234				24,231				25,746				25,340
Total interest-bearing liabilities		1,031,868				1,032,625				1,043,064				1,028,544				1,018,957
Demand deposits		272,834				261,089				244,142				242,030				247,619
Other non-interest bearing liabilities		20,375				22,231				20,609				21,219				13,689
Stockholders' equity		147,590				144,594				137,881				132,933				128,468
Total Liabilities and Equity	$	1,472,667		$	1,460,539		$	1,445,696		$	1,424,726		$	1,408,733
YIELD/RATE
Loans, net		4.92	%			5.16	%			5.13	%			5.05	%			4.94	%
Investment securities		2.46	%			2.87	%			2.77	%			2.67	%			2.68	%
Interest-bearing deposits at banks		1.65	%			2.56	%			2.22	%			2.29	%			2.24	%
Total interest-earning assets		4.61	%			4.87	%			4.81	%			4.71	%			4.58	%
NOW		0.57	%			0.45	%			0.37	%			0.30	%			0.30	%
Savings		0.94	%			0.90	%			0.87	%			0.80	%			0.74	%
Time deposits		2.09	%			2.17	%			2.18	%			2.16	%			2.07	%
Total interest-bearing deposits		1.21	%			1.20	%			1.18	%			1.15	%			1.10	%
Borrowings		2.64	%			2.92	%			3.13	%			3.01	%			2.97	%
Total interest-bearing liabilities		1.24	%			1.24	%			1.23	%			1.20	%			1.14	%
Interest rate spread		3.36	%			3.63	%			3.58	%			3.51	%			3.44	%
Contribution of interest-free funds		0.31	%			0.31	%			0.29	%			0.28	%			0.26	%
Net interest margin		3.67	%			3.94	%			3.87	%			3.79	%			3.70	%

Evans Bancorp Reports Record Net Income for 2019

February 18, 2020

Page 10 of 10

EVANS BANCORP, INC AND SUBSIDIARIES SELECTED OPERATIONS DATA (UNAUDITED) (in thousands, except share and per share data)

		2019			2018
		Year to Date		Year to Date	% Change
Interest income	$	64,740		$	57,612		12	%
Interest expense		12,685			9,505		33	%
Net interest income		52,055			48,107		8	%
Provision for loan losses		75			1,402		(95)	%
Net interest income after provision		51,980			46,705		11	%
Deposit service charges		2,569			2,176		18	%
Insurance service and fee revenue		10,688			9,365		14	%
Bank-owned life insurance		656			680		(4)	%
Loss on tax credit investment		(158)			(2,870)		(94)	%
Refundable NY state historic tax credit		115			1,982		(94)	%
Other income		4,212			3,894		8	%
Total non-interest income		18,082			15,227		19	%
Salaries and employee benefits		29,628			27,412		8	%
Occupancy		3,429			3,135		9	%
Advertising and public relations		1,033			1,070		(3)	%
Professional services		3,742			2,466		52	%
Technology and communications		4,124			3,394		22	%
FDIC insurance		431			1,024		(58)	%
Amortization of intangibles		448			280		60	%
Other expenses		4,985			4,512		10	%
Total non-interest expenses		47,820			43,293		10	%
Income before income taxes		22,242			18,639		19	%
Income tax provision		5,228			2,283		129	%
Net income		17,014			16,356		4	%
PER SHARE DATA
Net income per common share-diluted	$	3.42		$	3.32		3	%
Cash dividends per common share	$	1.04		$	0.92		13	%
Weighted average number of diluted shares		4,968,172			4,933,743
PERFORMANCE RATIOS
Return on average total assets		1.17 %		1.20 %
Return on average stockholders' equity		12.08 %		13.20 %
Efficiency ratio		67.21 %		66.87 %
Net interest margin		3.82 %		3.77 %
Net loan charge-offs (recoveries)/Average loans		(0.03)%		0.06 %