SOURCE: EvergreenBancorp, Inc.

April 18, 2007 18:07 ET

EvergreenBancorp Reports 106% Increase in 2007 First-Quarter Net Income

SEATTLE, WA -- (MARKET WIRE) -- April 18, 2007 -- EvergreenBancorp, Inc. (OTCBB: EVGG), the holding company for EvergreenBank, reported net income for the first quarter of 2007 of $656 thousand, an increase of 106% from the $318 thousand earned in the same quarter last year. Diluted earnings per share for the first quarter of 2007 was $0.27, compared with $0.16 for the same quarter last year. Total assets grew to over $364.3 million, an increase of $20.8 million, or 6%, over the year-end 2006 total of $343.5 million.

Gerald Hatler, President and CEO of EvergreenBancorp, Inc., said, "We are pleased with the continuing trend in the improvement in our earnings. This trend validates the execution of our growth strategy resulting in greater returns to our shareholders."

Financial highlights

First quarter 2007 highlights include:

--  Earnings per share (diluted) of $0.27 compared with $0.16 over first
    quarter of 2006
    
--  Net income of $656 thousand, up from $318 thousand one year earlier, a
    $338 thousand or 106% increase
    
--  Total assets increased to $364.3 million as of 03/31/07, up 6% for the
    quarter and 36% from one year earlier
    
--  Net loans totaled $308.4 million at quarter-end, a 6% increase for the
    quarter and a 47% increase from one year earlier
    
--  Total deposits as of March 31, 2007 were $293.8 million, an $84.3
    million, or 40% increase from the same date last year
    
--  Return on average equity for the quarter totaled 11% compared with 7%
    in the first quarter of 2006
    
--  The Company's efficiency ratio improved to 70% in the first quarter
    from 81% in the same quarter last year
    
--  Non-performing loans were 0.14% of total loans at quarter-end,
    compared with 0.45% one year earlier
    
Operating Results

Net interest income, before provision for loan losses, for the first quarter of 2007 was $3.6 million, an increase of $838 thousand, or 30%, over the $2.8 million recorded in the same quarter last year. This increase was primarily due to increased loan volumes and higher short-term interest rates. Non-interest income increased 16% over year earlier levels, to $475 thousand from $410 thousand. Total revenue (defined as net interest income, after provision for loan losses, and non-interest income) for the quarter was $3.9 million compared with $3.0 million, an increase of $808 thousand, or 27%. For the quarter, the bank's provision for loan losses totaled $263 thousand, as compared with $168 thousand for the first quarter of 2006.

EvergreenBank's net interest margin decreased to 4.40% in the first quarter of 2007 compared with 4.90% in the first quarter of 2006. The decrease was primarily the result of an increase in the bank's cost of funds, reflecting greater reliance on non-core funding sources over the past year to meet strong loan demand.

Non-interest expense for the first quarter was $2.9 million compared with $2.6 million for the same quarter in 2006. This represents an increase of $300 thousand, or 12%. Non-interest expense to average assets for the first quarter of 2007 stood at 3% compared with 4% for the same quarter last year.

Hatler continued, "The significant growth in our balance sheet has more than countered the margin compression related to the continuing challenges of a flat yield curve. As we have seen the acceleration in the growth of our assets, non-interest expense by comparison has continued to moderate."

Balance Sheet Results

Total assets grew to $364.3 million at March 31, 2007 compared to $343.5 million at year-end 2006, an increase of 6% for the quarter. Asset quality remains strong with net charge-offs totaling $64 thousand at quarter end. Nonperforming loans at the end of the first quarter of 2007 stood at $421.4 thousand, or 0.14% of total loans outstanding, compared with $953.6 thousand, or 0.45% of total loans outstanding on March 31, 2006. The Bank's allowance for loan losses stood at $3.0 million, or 0.96%, of total loans at March 31, 2007 compared with $2.2 million, or 1.05%, one year earlier. The company's capital to assets ratio ended at 6.69%, reflecting the additional equity raised during the fourth quarter of 2006 as well as the significant deployment of capital over the past 12 months. On March 31, 2006, the ratio stood at 6.68%.

About EvergreenBancorp and Evergreen Bank

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. It 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.

EvergreenBancorp stock trades on the Over-The-Counter Bulletin Board under the EVGG symbol. 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
                    March 31, 2007 and December 31, 2006
               (in thousands, except share and per share data)



                                                 March 31,     December 31,
                                                   2007            2006
                                                ------------  ------------
Assets
Cash and due from banks                         $      7,024  $      9,160
Federal funds sold                                     3,090         1,983
Interest-bearing deposits in financial
 institutions                                          2,540           760
                                                ------------  ------------
   Total cash and cash equivalents                    12,654        11,903

Securities available-for-sale                         29,097        29,531

Loans                                                311,403       292,449
Allowance for loan losses                             (2,983)       (2,784)
                                                ------------  ------------
   Net loans                                         308,420       289,665

Premises and equipment                                 3,031         3,078
Cash surrender value of bank owned life
 insurance                                             5,372         5,316
Accrued interest and other assets                      5,736         4,027
                                                ------------  ------------
   Total assets                                 $    364,310  $    343,520
                                                ============  ============

Liabilities
Deposits
   Noninterest-bearing                                59,296        55,373
      Interest-bearing                               234,519       201,062
                                                ------------  ------------
         Total deposits                              293,815       256,435
Federal Home Loan Bank advances                       29,557        46,805
Junior subordinated debt                              12,217        12,217
Accrued expenses and other liabilities                 4,338         4,244
                                                ------------  ------------
   Total liabilities                                 339,927       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; 2,353,262
 shares issued at March 31, 2007; 2,353,262
 shares at issued at December 31, 2006                21,154        21,129
Retained earnings                                      3,944         3,453
Accumulated other comprehensive loss                    (715)         (763)
                                                ------------  ------------
   Total stockholders’ equity                         24,383        23,819
                                                ------------  ------------

Total liabilities and stockholders’ equity      $    364,310  $    343,520
                                                ============  ============




                                EVERGREENBANCORP, INC.
                     UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                     Three months ended March 31, 2007 and 2006
                         (in thousands, except per share data)



                                                        March 31, March 31,
                                                           2007      2006
                                                        --------- ---------
Interest income
 Loans, including fees                                  $   6,395 $   3,921
 Taxable securities                                           288       275
 Tax exempt securities                                         32        34
 Federal funds sold and other                                  36        23
                                                        --------- ---------
   Total interest income                                    6,751     4,253

Interest expense
 Deposits                                                   2,171       926
 Federal funds purchased                                       36        21
 Federal Home Loan Bank advances                              671       405
 Junior subordinated debt                                     234       100
                                                        --------- ---------
   Total interest expense                                   3,112     1,452
                                                        --------- ---------

Net interest income                                         3,639     2,801

Provision for loan losses                                     263       168
                                                        --------- ---------

Net interest income after provision for loan losses         3,376     2,633

Noninterest income
 Service charges on deposit accounts                          335       255
 Merchant credit card processing                               44        33
 Other commissions and fees                                    14        34
 Net earnings on bank owned life insurance                     57        56
 Other noninterest income                                      25        32
                                                        --------- ---------
   Total noninterest income                                   475       410

Noninterest expense
 Salaries and employee benefits                             1,457     1,344
 Occupancy and equipment                                      479       435
 Data processing                                              206       203
 Professional fees.                                            96        51
 Marketing                                                     61        75
 State revenue and sales tax expense                          107        77
 Other noninterest expense                                    489       410
                                                        --------- ---------
   Total noninterest expense                                2,895     2,595
                                                        --------- ---------

Income before income taxes                                    956       448

Income tax expense                                            300       130
                                                        --------- ---------

Net income                                              $     656 $     318
                                                        --------- ---------

Basic earnings per share                                $    0.28 $    0.16
                                                        ========= =========
Diluted earnings per share                              $    0.27 $    0.16
                                                        ========= =========


Contact Information

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