Evans Bank’s first-quarter profits felt the effects of the Covid-19 pandemic, as the bank braced for a wave of loans to go unpaid.
The Hamburg-based bank recorded net income of $204,000, down 94% from $3.7 million a year ago. The most significant factor in the sharp drop-off was the bank’s $3 million provision for loan loss, about $2.2 million of which was in response to economic trends stemming from Covid-19.
“While the full impact of Covid-19 on future financial results is uncertain and not currently predictable, the company believes that the effects could have a material impact on the ability of our clients to meet their borrowing obligations,” Evans said.
Also during the quarter, Evans incurred about $500,000 worth of merger-related expenses from its purchase of Fairport Savings Bank. The deal is scheduled to close Friday.
David Nasca, Evans’ president and CEO, said the bank remains in strong financial shape.
“We believe the company is in a good position to weather this unprecedented environment while supporting our clients and the community,” he said.