# EDGAR Filing Document

**Accession Number:** 0000842518
**File Stem:** 0000842518-23-000008
**Filing Date:** 2023-2
**Character Count:** 42979
**Document Hash:** 1b755dca352a7559988c0f4e69dfa46c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000842518-23-000008.hdr.sgml**: 20230202

**ACCESSION NUMBER**: 0000842518-23-000008

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230202

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230202

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EVANS BANCORP INC
- **CENTRAL INDEX KEY:** 0000842518
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 161332767
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35021
- **FILM NUMBER:** 23581887

**BUSINESS ADDRESS:**
- **STREET 1:** ONE GRIMSBY DRIVE
- **CITY:** HAMBURG
- **STATE:** NY
- **ZIP:** 14075
- **BUSINESS PHONE:** 7169262032

**MAIL ADDRESS:**
- **STREET 1:** ONE GRIMSBY DRIVE
- **CITY:** HAMBURG
- **STATE:** NY
- **ZIP:** 14075

?xml version="1.0" encoding="utf-8"? evbn-20230202x8k

UNITED STATES

‎SECURITIES AND EXCHANGE COMMISSION

‎WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

      <br> <u>Date of report (Date of earliest event reported):</u>   <u>February 02, 2023</u>

## Evans Bancorp, Inc. ‎ _______________________________________ ‎ (Exact Name of Registrant as Specified in Charter)

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| | | |
|:---|:---|:---|
| New York | 001-35021 | 16-1332767 |
| ______________________________<br>‎(State or Other Jurisdiction | _______________<br>‎(Commission | ___________________<br>‎(I.R.S. Employer |
| of Incorporation) | File Number) | Identification No.) |
| 6460 Main Street, Williamsville, New York |  | 14221 |
| _____________________________________________<br>‎(Address of Principal Executive Offices) |  | ____________<br>‎(Zip Code) |

---

      <br>       <br> <u>Registrant's Telephone Number, Including Area Code:</u>   <u>716-926-2000</u>

Not Applicable

‎____________________________________________________

‎Former Name or Former Address, if Changed Since Last Report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

‎☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

‎☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

‎☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading Symbol(s) | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, $0.50 par value | &nbsp;&nbsp;EVBN | &nbsp;&nbsp;NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On February 02, 2023, Evans Bancorp, Inc. ("the Company") issued a press release setting forth its results of operations and financial condition for the fourth quarter of 2022. A copy of that press release is attached hereto as Exhibit 99.1.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

Exhibit 99.1 – [<u>Press Release of Evans Bancorp, Inc. dated February 02, 2023</u>](evbn-20230202xex99_1.htm)

‎Exhibit 104 – The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

The information in Item 2.02 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing. Neither the filing or furnishing of any exhibit to this report nor the inclusion in such exhibits of a reference to the Company's Internet address shall, under any circumstances, be deemed to incorporate the information available at such address into this report. Information available at the Company's Internet address is not part of this report.

‎

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | Evans Bancorp, Inc.  | Evans Bancorp, Inc.  |
| *February 02, 2023* | By:  | */s/ David J. Nasca*  |
|  |  | Name: David J. Nasca  |
|  |  | Title: President and Chief Executive Officer |

---

## Exhibit 99.1

## News

## Release

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*Evans Bancorp, Inc. 6460 Main Street, Williamsville, NY 14221*

FOR IMMEDIATE RELEASE

**Evans Bancorp Reports Net Income of $22.4 Million**

**in 2022**

WILLIAMSVILLE, NY, February 2, 2023 – Evans Bancorp, Inc. (the "Company" or "Evans") (NYSE American: EVBN), a community financial services company serving Western New York since 1920, today reported results of operations for the fourth quarter and full year ended December 31, 2022.

**FOURTH QUARTER AND FULL YEAR 2022 HIGHLIGHTS** *(compared with prior-year period unless otherwise noted)*

---

| | |
|:---|:---|
| "  | *Fourth quarter net income of $6.0 million, or $1.10 per diluted share, which was up 3%;* <br>*Full year 2022 earnings of $22.4 million successfully offset approximately $9 million of nonrecurring PPP fees in last year's earnings of $24.0 million*  |

---

---

| | |
|:---|:---|
| "  | *Fourth quarter net interest income was $19.2 million compared with $19.7 in prior-year period, which included $3.9 million of PPP fees and other income that did not recur in the current quarter; Full year net interest income of $73.0 million reflected similar themes as the quarter*  |

---

---

| | |
|:---|:---|
| "  | *Total commercial loan growth was strong during the quarter at $39.3 million, or 3.6%; For full year 2022, total commercial loans grew 9%, excluding PPP loans* |

---

---

| | |
|:---|:---|
| "  | *Fourth quarter efficiency ratio improved 385 basis points to a 62.9%; Full year ratio improved 180 basis points to 65.0%*  |

---

Net income was $6.0 million, or $1.10 per diluted share, in the fourth quarter of 2022, compared with $5.9 million, or $1.06 per diluted share, in each of the third quarter of 2022 and last year's fourth quarter. The increase from the sequential third quarter was largely due to a reduction in provision for loan losses and lower non-interest expenses, partially offset by lower non-interest income. The change from prior year reflected lower non-interest expenses, partially offset by an increase in provision for loan losses. Return on average equity was 16.07% for the fourth quarter of 2022, compared with 14.15% in the third quarter of 2022 and 12.98% in the fourth quarter of 2021.

For the full year of 2022, net income reached $22.4 million, or $4.04 per diluted share, compared with

$24.0 million, or $4.37 per diluted share, in 2021. The decrease largely reflected a higher provision for loan losses compared with a release of allowance for loan losses during 2021. The increase in provision was driven by a $1.5 million charge-off of a single commercial loan during 2022 in addition to loan growth. The return on average equity was 13.49% for 2022 compared with 13.71% in 2021.

"Fourth quarter results were solid and included strong commercial loan growth of more than 14% on an annual basis, an expanded net interest margin, and a further improved efficiency ratio of 62.9%, which is our lowest level in more than 10 years. While we continue to make investments in strategic focus areas, we are utilizing technology to enhance our scale and efficiency and are realizing the benefits of the branch optimization project initiated earlier this year," said David J. Nasca, President and CEO of Evans Bancorp, Inc. "Our performance for the full year approached last year's record earnings and demonstrates the strength of our growth and

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 2of 10**

business development strategy and the ability of the entire Evans team to execute against the plan. Net interest income of $73.0 million increased slightly for the year, an impressive achievement considering the offset of last year's approximately $9 million in PPP fees."

Mr. Nasca added, "As we enter 2023, the focus will continue to be on loan growth, customer acquisition and relationship management along with optimizing operational efficiency and expense management to deliver returns. This will play out against expected headwinds of margin pressure caused by rising interest rates and pricing competition and potential recessionary effects impacting the economy and our customers. We believe our value lies in our community-based, customer-centric model which allows us to support, serve, and grow our customer base in all economic environments."

---

| | | | |
|:---|:---|:---|:---|
| **Net Interest Income** | **Net Interest Income** | **Net Interest Income** | **Net Interest Income** |
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
|  | 4Q 2022 | 3Q 2022 | 4Q 2021 |
| Interest income | $22381 | $20487 | $20732 |
| Interest expense | 3167 | 1299 | 1057 |
| Net interest income | 19214 | 19188 | 19675 |
| Provision for loan losses  | 923 | 1328 | 393 |
| Net interest income after provision | $18291 | $17860 | $19282 |

---

------

Net interest income of $19.2 million was up slightly from the sequential third quarter, as higher interest income related to federal funds rate increases of 125 basis points was largely offset by an increase in interest expense given the cost increase of interest-bearing liabilities as a result of competitive pricing on deposits. When compared with last year's fourth quarter, net interest income was down due to the prior-year benefiting from $2.4 million of PPP fees, $0.8 million of amortization of fair value marks on acquired loans, and $0.7 million of interest recognized from the payoff of non-accrual loans. Interest income growth from the prior-year period was due to higher loan and investment securities average balances and increases in federal funds rates totaling 425 basis points.

Fourth quarter net interest margin of 3.77% improved 5 basis points over the trailing third quarter and

3 basis points from the prior-year period. The yield on loans also improved both sequentially and year-over- year, up 41 basis points and 2 basis points, respectively. The cost of interest-bearing liabilities was 0.86% compared with 0.36% in the third quarter of 2022 and 0.17% in the fourth quarter of 2021.

During 2020, the Company classified $81 million of loans to clients within the hotel industry as criticized. Since that time, more than half of this portfolio has been upgraded or paid off, leaving $30 million in criticized status at the end of 2022. While trends for this industry have improved, a change in status for the remaining criticized hotel credits is dependent on continued positive payment performance.

The $0.9 million provision for loan losses in the current quarter was largely due to loan growth. An increase in criticized loans and a specific reserve for an individual commercial loan were also reflected in the total provision.

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 3of 10**

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| | | | |
|:---|:---|:---|:---|
| **Asset Quality** | **Asset Quality** | **Asset Quality** | **Asset Quality** |
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
|  | 4Q 2022 | 3Q 2022 | 4Q 2021 |
| Total non-performing loans | $24728 | $25961 | $18415 |
| Total net loan charge-offs  | 115 | 1518 | 6 |
| Non-performing loans / Total loans | 1.48% | 1.60% | 1.17% |
| Net loan charge-offs / Average loans | 0.03% | 0.38% | - % |
| Allowance for loan losses / Total loans | 1.16% | 1.15% | 1.17% |

---

"We are booking high quality assets and have solid credit fundamentals," stated John Connerton, Chief Financial Officer of Evans Bank. "Upward pricing of deposit products began to accelerate during the quarter, applying pressure on our net interest margin and deposit balances. As we navigate the competitive landscape, we will continue to be prudent with our pricing and proactive where it is warranted."

---

| | | | |
|:---|:---|:---|:---|
| **Non-Interest Income** | **Non-Interest Income** | **Non-Interest Income** | **Non-Interest Income** |
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
|  | 4Q 2022 | 3Q 2022 | 4Q 2021 |
| Deposit service charges | $684 | $782 | $688 |
| Insurance service and fee revenue | 2204 | 3383 | 2107 |
| Bank-owned life insurance | 221 | 161 | 360 |
| Other income | 1352 | 1441 | 1551 |
| Total non-interest income | $4461 | $5767 | $4706 |

---

The change in deposit service charges since the sequential third quarter was largely due to the implementation of the Bank's new reduced overdraft and non-sufficient funds (NSF) fee pricing structure.

Insurance service and fee revenue increased 5% over the prior-year period primarily as a result of increased commissions from higher premiums and new commercial lines insurance business. The decline from the 2022 third quarter reflected typical seasonality in commercial lines insurance commissions along with decreased profit sharing revenue.

A $0.2 million gain on a bank-owned life insurance claim was recognized in the fourth quarter of 2021.

Other income included a $0.2 million gain on a sale of an asset that was acquired in foreclosure during the second quarter of 2022 as well as $0.2 million of revenue recognized relating to rents received from the acquired asset. The sequential third quarter included a $0.2 million final payment in connection with a historic tax credit investment, while the 2021 fourth quarter included a $0.3 million reversal of an earnout relating to a small insurance agency acquisition.

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 4of 10**

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| | | | |
|:---|:---|:---|:---|
| **Non-Interest Expense** | **Non-Interest Expense** | **Non-Interest Expense** | **Non-Interest Expense** |
| *($ in thousands)* | *($ in thousands)* | *($ in thousands)* | *($ in thousands)* |
|  | 4Q 2022 | 3Q 2022 | 4Q 2021 |
| Salaries and employee benefits | $9498 | $10450 | $10273 |
| Occupancy | 1190 | 1118 | 1208 |
| Advertising and public relations | 125 | 417 | 325 |
| Professional services | 871 | 839 | 799 |
| Technology and communications | 1437 | 1339 | 1353 |
| Amortization of intangibles | 100 | 100 | 132 |
| FDIC insurance | 250 | 255 | 269 |
| Other expenses | 1429 | 1273 | 1926 |
| Total non-interest expenses | $14900 | $15791 | $16285 |

---

Total non-interest expense decreased $0.9 million, or 6%, from the third quarter of 2022, and was down $1.4 million, or 9%, from last year's fourth quarter.

The decrease in salaries and employee benefits reflects prudent expense management efforts along with lower incentive accruals of $0.7 million when compared with both the sequential third quarter and last year's fourth quarter.

The decrease in advertising and public relations from both comparative periods was primarily due to the timing of target market campaigns.

Other expenses decreased from last year's fourth quarter primarily due to lower charitable contributions of

$0.4 million and reduced deferred salary expenses relating to PPP loans of $0.2 million.

The Company's GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 62.9% in the fourth quarter of 2022, 63.3% in the third quarter of 2022, and 66.8% in the fourth quarter of 2021.

Income tax expense was $1.8 million, for an effective tax rate of 23.0%, in the fourth quarter of 2022 compared with 25.2% in the third quarter of 2022 and 23.4% in last year's fourth quarter.

**Balance Sheet Highlights** 

Total assets were $2.18 billion as of December 31, 2022, up 2% from the end of the trailing quarter and down 1% compared with balances at December 31, 2021. The increase from the sequential third quarter reflected total loan growth of $46 million, which was largely due to commercial loans, partially offset by $5 million decrease in investment securities. Since last year's fourth quarter, interest-bearing deposits at banks decreased $229 million, while total loans increased $100 million and investment securities increased $62 million. PPP loan balances, which are included in commercial and industrial loans, were less than $1 million, down $24 million from the prior-year period. Excluding the decline in PPP loans, total commercial loans increased $96 million, or 9%, from the fourth quarter of 2021. Residential mortgages and commercial real estate loans increased $29 million and $59 million, respectively, since the fourth quarter of 2021.

Investment securities were $371 million at December 31, 2022, $5 million lower than the end of the third quarter of 2022, but $62 million higher than at the end of last year's fourth quarter. The increase from prior year reflects the use of excess cash balances, partially offset by changes in unrealized gains and losses on investment securities. The primary objectives of the Company's investment portfolio are to provide liquidity, secure municipal deposits, and maximize income while preserving the safety of principal.

Total deposits of $1.77 billion decreased $102 million, or 5%, from September 30, 2022, and $165 million, or 9%, from the end of last year's fourth quarter. The decrease from the sequential quarter primarily reflects a large component of one product, interest rate sensitive customers that the Bank determined to be noncore.

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 5of 10**

From a product line perspective, there were decreases in demand deposits of $65 million, consumer savings deposits of $54 million, commercial savings of $34 million, and municipal savings deposits of $24 million, partially offset by an increase in consumer time deposits of $64 million and NOW deposits of $10 million. Compared with the end of last year's fourth quarter there were decreases in consumer savings of $100 million, commercial savings of $98 million, municipal savings of $21 million, and brokered time deposits of $2 million. Offsetting those decreases were increases in consumer time deposits of $41 million, NOW deposits of $13 million, and demand deposits of $1 million.

**Capital Management**

The Company has consistently maintained regulatory capital ratios measurably above the Federal "well capitalized" standard, including a Tier 1 leverage ratio of 9.13% at December 31, 2022 compared with 9.00% at September 30, 2022 and 8.57% at December 31, 2021.

Book value per share was $28.32 at December 31, 2022 compared with $27.20 at September 30, 2022 and $33.54 at December 31, 2021. Reflected in the book value changes are the Federal Reserve's aggressive interest rate hikes that have resulted in significant unrealized losses on investment securities, which reduced book value per share at December 31, 2022 by $8.13 when compared with the last year's fourth quarter. Such unrealized gains and losses are generally due to changes in interest rates and represent the difference, net of applicable income tax effect, between the estimated fair value and amortized cost of investment securities classified as available-for-sale.

Tangible book value per share was $25.76 at December 31, 2022 compared with $24.65 at September 30, 2022 and $30.93 at December 31, 2021.

For the full year of 2022, cash dividends totaled $1.26 per share, up 5% over 2021.

**2022 Year in Review** *(compared with prior-year)*

Net interest income was $73.0 million, up less than 1%. During 2022, $0.8 million of PPP fees were recognized and the Company benefited from federal fund rate increases, while 2021 reflected $8.8 million of PPP fees, $0.8 million of commercial prepayment fees, and $0.5 million relating to the amortization of fair value marks on acquired loans. Net interest margin was 3.53%, a decrease of 4 basis points.

The Company's provision for loan loss was $2.7 million, which reflected a $1.5 million charge-off of a single commercial loan and loan growth during 2022, partially offset by a decrease criticized loans. In 2021, the Company had a $1.5 million release of allowance for loan losses. The ratio of non-performing loans to total loans was 1.48% compared with 1.17% in 2021.

Non-interest income was up $0.4 million to $19.3 million. The increase was due to higher deposit service charges of $0.3 million, $0.2 million from mortgage servicing rights, $0.2 million gain on the sale of other assets, and $0.1 million from bank-owned life insurance income, partially offset by a decrease of $0.4 million in loan fees.

Non-interest expense decreased $1.3 million, or 2%, to $59.9 million. Current year decreases included charitable contributions of $0.4 million, marketing expenses of $0.3 million, loan expenses of $0.3 million, professional services cost of $0.2 million, technology and communications expense of $0.2 million, FDIC insurance expense of $0.2 million, and amortization of intangibles costs of $0.1 million. These decreases were partially offset by an increase in salaries and employee benefits of $0.3 million and expenses related to an acquired asset of $0.2 million.

The Company's GAAP efficiency ratio was 65.0% in 2022 compared with 66.8% in 2021.

Income tax expense for the year was $7.2 million, representing an effective tax rate of 24.2% compared with an effective tax rate of 24.7% in 2021.

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 6of 10**

**Webcast and Conference Call**

The Company will host a conference call and webcast on Thursday, February 2, 2023 at 4:45 p.m. ET. Management will review the financial and operating results for the fourth quarter and full year of 2022, as well as the Company's strategy and outlook. A question and answer session will follow.

The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.evansbancorp.com.

A telephonic replay will be available from 7:45 p.m. ET on the day of the teleconference until Thursday, February 9, 2023. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13735009, or access the webcast replay at www.evansbancorp.com, where a transcript will be posted once available.

**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 $2.2 billion in assets and $1.8 billion in deposits at December 31, 2022. Evans is a full-service community bank with 18 branches providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. Evans Insurance Agency, a wholly owned subsidiary, provides life insurance, employee benefits, and property and casualty insurance through ten 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.com and 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 the impacts from COVID-19, 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 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.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; **For more information contact:** | &nbsp;&nbsp;&nbsp; **-OR-** |
| &nbsp;&nbsp;&nbsp; John B. Connerton<br> Executive Vice President and Chief Financial Officer | &nbsp;&nbsp;&nbsp; Deborah K. Pawlowski<br> Kei Advisors LLC |
| &nbsp;&nbsp; (716) 926-2000<br>jconnerton@evansbank.com  | &nbsp;&nbsp; (716) 843-3908<br>dpawlowski@keiadvisors.com |
| &nbsp;&nbsp;&nbsp; <br> ***Media Contact:*** |  |
| &nbsp;&nbsp;&nbsp; Kathleen Rizzo Young<br> Public & Community Relations Manager<br> 716-343-5562<br> rizzoyoung@evansbank.com |  |

---

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 7of 10**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **EVANS BANCORP, INC. AND SUBSIDIARIES** | **EVANS BANCORP, INC. AND SUBSIDIARIES** | **EVANS BANCORP, INC. AND SUBSIDIARIES** | **EVANS BANCORP, INC. AND SUBSIDIARIES** | **EVANS BANCORP, INC. AND SUBSIDIARIES** | **EVANS BANCORP, INC. AND SUBSIDIARIES** |
| **SELECTED FINANCIAL DATA (UNAUDITED)** | **SELECTED FINANCIAL DATA (UNAUDITED)** | **SELECTED FINANCIAL DATA (UNAUDITED)** | **SELECTED FINANCIAL DATA (UNAUDITED)** | **SELECTED FINANCIAL DATA (UNAUDITED)** | **SELECTED FINANCIAL DATA (UNAUDITED)** |
| **(in thousands, except shares and per share data)** | **(in thousands, except shares and per share data)** | **(in thousands, except shares and per share data)** | **(in thousands, except shares and per share data)** | **(in thousands, except shares and per share data)** | **(in thousands, except shares and per share data)** |
|  | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 |
| **ASSETS** |  |  |  |  |  |
| Interest-bearing deposits at banks | $6258 | $6813 | $88190 | $147277 | $234929 |
| Investment Securities | 371275 | 376713 | 403322 | 388953 | 309124 |
| Loans | 1672369 | 1626457 | 1613834 | 1604079 | 1571905 |
| Allowance for loan losses | (19438) | (18630) | (18819) | (18618) | (18438) |
| Goodwill and intangible assets | 13929 | 14029 | 14129 | 14229 | 14329 |
| All other assets | 134117 | 124323 | 107698 | 104814 | 98791 |
| Total assets | $2178510 | $2129705 | $2208354 | $2240734 | $2210640 |
| **LIABILITIES AND STOCKHOLDERS'** |  |  |  |  |  |
| **EQUITY** |  |  |  |  |  |
| Demand deposits | 493710 | 558805 | 550079 | 528962 | 492864 |
| NOW deposits | 273359 | 263648 | 265181 | 257475 | 259908 |
| Savings deposits | 801943 | 913383 | 1015511 | 1051136 | 1019925 |
| Time deposits | 202667 | 137910 | 137561 | 149243 | 164340 |
| Total deposits | 1771679 | 1873746 | 1968332 | 1986816 | 1937037 |
| Borrowings | 231223 | 83456 | 59028 | 64322 | 67965 |
| Other liabilities | 21615 | 22652 | 18319 | 20393 | 21746 |
| Total stockholders' equity | 153993 | 149850 | 162675 | 169203 | 183892 |
| **SHARES AND CAPITAL RATIOS** |  |  |  |  |  |
| Common shares outstanding | 5437048 | 5509917 | 5508663 | 5519831 | 5482756 |
| Book value per share | $28.32 | $27.20 | $29.53 | $30.65 | $33.54 |
| Tangible book value per share | $25.76 | $24.65 | $26.97 | $28.08 | $30.93 |
| Tier 1 leverage ratio | 9.13% | 9.00% | 8.73% | 8.57% | 8.57% |
| Tier 1 risk-based capital ratio | 12.29% | 12.40% | 12.47% | 12.55% | 12.76% |
| Total risk-based capital ratio | 13.48% | 13.57% | 13.68% | 13.78% | 14.02% |
| **ASSET QUALITY DATA** |  |  |  |  |  |
| Total non-performing loans | $24728 | $25961 | $22010 | $20659 | $18415 |
| Total net loan charge-offs  | 115 | 1518 | 66 | 41 | 6 |
| Non-performing loans/Total loans | 1.48% | 1.60% | 1.36% | 1.29% | 1.17% |
| Net loan charge-offs /Average loans | 0.03% | 0.38% | 0.02% | 0.01% | - % |
| Allowance for loans losses/Total loans | 1.16% | 1.15% | 1.17% | 1.16% | 1.17% |

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 8of 10**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** |
| **SELECTED OPERATIONS DATA (UNAUDITED)** | **SELECTED OPERATIONS DATA (UNAUDITED)** | **SELECTED OPERATIONS DATA (UNAUDITED)** | **SELECTED OPERATIONS DATA (UNAUDITED)** | **SELECTED OPERATIONS DATA (UNAUDITED)** | **SELECTED OPERATIONS DATA (UNAUDITED)** |
| **(in thousands, except share and per share data)** | **(in thousands, except share and per share data)** | **(in thousands, except share and per share data)** | **(in thousands, except share and per share data)** | **(in thousands, except share and per share data)** | **(in thousands, except share and per share data)** |
|  | 2022 | 2022 | 2022 | 2022 | 2021 |
|  | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter |
| Interest income | $22381 | $20487 | $19097 | $17517 | $20732 |
| Interest expense | 3167 | 1299 | 1045 | 1016 | 1057 |
| Net interest income | 19214 | 19188 | 18052 | 16501 | 19675 |
| Provision for loan losses | 923 | 1328 | 267 | 221 | 393 |
| Net interest income after provision for loan losses | 18291 | 17860 | 17785 | 16280 | 19282 |
| Deposit service charges | 684 | 782 | 703 | 692 | 688 |
| Insurance service and fee revenue | 2204 | 3383 | 2567 | 2299 | 2107 |
| Bank-owned life insurance | 221 | 161 | 171 | 154 | 360 |
| Loss on tax credit investment | -  | -  | -  | -  | (30) |
| Refundable NY state historic tax credit | -  | -  | -  | -  | 21 |
| Other income | 1352 | 1441 | 1171 | 1286 | 1560 |
| Total non-interest income | 4461 | 5767 | 4612 | 4431 | 4706 |
| Salaries and employee benefits | 9498 | 10450 | 9436 | 9470 | 10273 |
| Occupancy | 1190 | 1118 | 1131 | 1180 | 1208 |
| Advertising and public relations | 125 | 417 | 438 | 179 | 325 |
| Professional services | 871 | 839 | 843 | 872 | 799 |
| Technology and communications | 1437 | 1339 | 1237 | 1174 | 1353 |
| Amortization of intangibles | 100 | 100 | 100 | 100 | 132 |
| FDIC insurance | 250 | 255 | 250 | 270 | 269 |
| Other expenses | 1429 | 1273 | 1349 | 1215 | 1926 |
| Total non-interest expenses | 14900 | 15791 | 14784 | 14460 | 16285 |
| Income before income taxes | 7852 | 7836 | 7613 | 6251 | 7703 |
| Income tax provision  | 1809 | 1972 | 1879 | 1503 | 1804 |
| Net income | 6043 | 5864 | 5734 | 4748 | 5899 |
| **PER SHARE DATA** |  |  |  |  |  |
| Net income per common share-diluted | $1.10 | $1.06 | $1.03 | $0.86 | $1.06 |
| Cash dividends per common share | $-  | $0.64 | $-  | $0.62 | $-  |
| Weighted average number of diluted shares | 5500810 | 5546764 | 5550436 | 5547548 | 5540924 |
| **PERFORMANCE RATIOS** |  |  |  |  |  |
| Return on average total assets | 1.12% | 1.08% | 1.04% | 0.86% | 1.07% |
| Return on average stockholders' equity | 16.07% | 14.15% | 13.77% | 10.46% | 12.98% |
| Return on average tangible common stockholders' equity\* | 17.72% | 15.46% | 15.06% | 11.35% | 14.11% |
| Efficiency ratio | 62.94% | 63.28% | 65.23% | 69.08% | 66.79% |
| Efficiency ratio (Non-GAAP)\*\* | 62.51% | 62.88% | 64.79% | 68.60% | 66.23% |
| *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  |
| *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. |

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 9of 10**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** | **EVANS BANCORP, INC AND SUBSIDIARIES** |
| **SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)** | **SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)** | **SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)** | **SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)** | **SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)** | **SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED)** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | 2022 | 2022 | 2022 | 2022 | 2021 |
|  | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter |
| **AVERAGE BALANCES** |  |  |  |  |  |
| Loans, net | $1627028 | $1597382 | $1591971 | $1566716 | $1573608 |
| Investment securities | 382125 | 406703 | 392371 | 357930 | 283216 |
| Interest-bearing deposits at banks | 10416 | 42788 | 111457 | 178729 | 229658 |
| Total interest-earning assets | 2019569 | 2046873 | 2095799 | 2103375 | 2086482 |
| Non interest-earning assets | 135035 | 122321 | 116202 | 110316 | 110315 |
| Total Assets | $2154604 | $2169194 | $2212001 | $2213691 | $2196797 |
| NOW | 265313 | 269359 | 258197 | 252965 | 254059 |
| Savings | 874816 | 964051 | 1020004 | 1024447 | 983403 |
| Time deposits | 174362 | 132319 | 143677 | 156534 | 170318 |
| Total interest-bearing deposits | 1314491 | 1365729 | 1421878 | 1433946 | 1407780 |
| Borrowings | 151259 | 65990 | 63203 | 65154 | 69847 |
| Total interest-bearing liabilities | 1465750 | 1431719 | 1485081 | 1499100 | 1477627 |
| Demand deposits | 518666 | 549625 | 542827 | 512118 | 515204 |
| Other non-interest bearing liabilities | 19798 | 22073 | 17562 | 20897 | 22223 |
| Stockholders' equity | 150390 | 165777 | 166531 | 181576 | 181743 |
| Total Liabilities and Equity | $2154604 | $2169194 | $2212001 | $2213691 | $2196797 |
| Average tangible common stockholders' equity\* | 136406 | 151690 | 152345 | 167287 | 167285 |
| **YIELD/RATE** |  |  |  |  |  |
| Loans, net | 4.88% | 4.47% | 4.24% | 4.07% | 4.86% |
| Investment securities | 2.36% | 2.23% | 2.09% | 1.95% | 1.91% |
| Interest-bearing deposits at banks | 3.16% | 2.01% | 0.81% | 0.16% | 0.15% |
| Total interest-earning assets | 4.40% | 3.97% | 3.65% | 3.38% | 3.94% |
| NOW | 0.36% | 0.10% | 0.09% | 0.09% | 0.09% |
| Savings | 0.33% | 0.19% | 0.14% | 0.14% | 0.14% |
| Time deposits | 1.61% | 0.64% | 0.49% | 0.44% | 0.44% |
| Total interest-bearing deposits | 0.51% | 0.22% | 0.16% | 0.16% | 0.17% |
| Borrowings | 3.88% | 3.27% | 2.95% | 2.79% | 2.64% |
| Total interest-bearing liabilities | 0.86% | 0.36% | 0.28% | 0.27% | 0.28% |
| Interest rate spread | 3.54% | 3.61% | 3.37% | 3.11% | 3.66% |
| Contribution of interest-free funds | 0.23% | 0.11% | 0.08% | 0.07% | 0.08% |
| Net interest margin | 3.77% | 3.72% | 3.45% | 3.18% | 3.74% |
| *\** Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.  | *\** Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.  | *\** Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.  | *\** Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.  | *\** Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.  | *\** Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.  |

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**Evans Bancorp Reports Net Income of $22.4 Million in 2022** 

**February 2, 2023**

**Page 10of 10**

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| | | | |
|:---|:---|:---|:---|
| **EVANS BANCORP, INC AND SUBSIDIARIES** |  |  |  |
| **SELECTED OPERATIONS DATA (UNAUDITED)** |  |  |  |
| **(in thousands, except share and per share data)** |  |  |  |
|  | 2022 | 2021 |  |
|  | Year to Date | Year to Date | % Change |
| Interest income | $79482 | $77580 | 2% |
| Interest expense | 6527 | 4795 | 36% |
| Net interest income | 72955 | 72785 | 0% |
| Provision for loan losses  | 2739 | (1513) | (281)% |
| Net interest income after provision for loan losses | 70216 | 74298 | (5)% |
| Deposit service charges | 2861 | 2531 | 13% |
| Insurance service and fee revenue | 10453 | 10457 | (0)% |
| Bank-owned life insurance | 707 | 853 | (17)% |
| Loss on tax credit investment | -  | (30) | (100)% |
| Refundable NY state historic tax credit | -  | 21 | (100)% |
| Other income | 5250 | 5015 | 5% |
| Total non-interest income | 19271 | 18847 | 2% |
| Salaries and employee benefits | 38854 | 38612 | 1% |
| Occupancy | 4619 | 4698 | (2)% |
| Advertising and public relations | 1159 | 1427 | (19)% |
| Professional services | 3425 | 3587 | (5)% |
| Technology and communications | 5187 | 5376 | (4)% |
| FDIC insurance | 1025 | 1133 | (10)% |
| Amortization of intangibles | 400 | 537 | (26)% |
| Other expenses | 5266 | 5849 | (10)% |
| Total non-interest expenses | 59935 | 61219 | (2)% |
| Income before income taxes | 29552 | 31926 | (7)% |
| Income tax provision | 7163 | 7883 | (9)% |
| Net income | 22389 | 24043 | (7)% |
| **PER SHARE DATA** |  |  |  |
| Net income per common share-diluted | $4.04 | $4.37 | (8)% |
| Cash dividends per common share | $1.26 | $1.20 | 5% |
| Weighted average number of diluted shares | 5536375 | 5501511 |  |
| **PERFORMANCE RATIOS** |  |  |  |
| Return on average total assets | 1.02% | 1.12% |  |
| Return on average stockholders' equity | 13.49% | 13.71% |  |
| Return on average tangible common stockholders' equity\* | 14.74% | 14.96% |  |
| Efficiency ratio | 64.99% | 66.81% |  |
| Efficiency ratio (Non-GAAP)\*\* | 64.55% | 66.22% |  |
| Net interest margin | 3.53% | 3.57% |  |
| Net loan charge-offs (recoveries)/Average loans | 0.11% | 0.03% |  |
| *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  | *\** The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.  |
| *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. | *\*\** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, merger-related expenses and the impact of historic tax credit transactions. |

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