SOURCE: EvergreenBancorp, Inc.

October 18, 2007 19:44 ET

EvergreenBancorp Reports 55% Increase in 2007 Third Quarter Net Income

SEATTLE, WA--(Marketwire - 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.


                        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
                                                 ===========   ===========



                        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 30,         September 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
                                 =========  =========  =========  =========

Contact Information

  • Contact:
    EvergreenBancorp, Inc.
    Gordon Browning
    Executive Vice President and Chief Financial Officer
    206-749-7350