Evans Bancorp reported record-high net income of $3.1 million in the first quarter, and says the market disruption caused by KeyCorp's deal for First Niagara Financial Group remains a factor among banking customers.
This was the first time Evans hit the $3 million mark for net income in one quarter. David J. Nasca, the bank's president and CEO, said the bank benefited from strong commercial loan growth, along with stronger insurance revenues and improved economic conditions.
Key completed its deal for First Niagara last year, but the ripple effect hasn't abated, both in loans and deposits, Nasca said.
"I think (the deal) gave everybody in the market an opportunity to consider their banking relationship," he said. "I don't think it's just First Niagara and KeyCorp that we're winning business from. The market is in transition currently."
The bank's net interest income from taking deposits and making loans increased 17 percent, to $9.6 million. Its non-interest income, from sources such as fees, increased 18 percent, to $3.5 million. The bank got a boost from a 29 percent increase in insurance service and fee revenue.
Evans now has total assets of $1.14 billion, after crossing the $1 billion mark for the first time last year. The Hamburg-based bank will hold its annual shareholders meeting on Thursday.
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