PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Evans Bancorp, Inc. as of September 30, 2022, and for the three and nine-month periods then ended, including detailed notes on accounting policies and financial details [Unaudited Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and stockholders' equity, primarily driven by reduced interest-bearing deposits and significant unrealized losses on available-for-sale securities Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2022 | December 31, 2021 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,129,705** | **$2,210,640** | **($80,935)** | | Interest-bearing deposits at banks | $6,813 | $234,929 | ($228,116) | | Securities: Available for sale | $369,141 | $305,959 | $63,182 | | Loans, net | $1,607,827 | $1,553,467 | $54,360 | | **Total Liabilities** | **$1,979,854** | **$2,026,748** | **($46,894)** | | Total deposits | $1,873,746 | $1,937,037 | ($63,291) | | **Total Stockholders' Equity** | **$149,851** | **$183,892** | **($34,041)** | | Accumulated other comprehensive (loss) | ($49,824) | ($5,671) | ($44,153) | [Unaudited Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Net income decreased for both the third quarter and nine-month period ended September 30, 2022, primarily due to a provision for loan losses compared to a credit in the prior year Three Months Ended September 30 (in thousands, except per share data) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Interest Income | $19,188 | $18,163 | | Provision (Credit) for Loan Losses | $1,328 | ($1,459) | | **Net Income** | **$5,864** | **$6,979** | | Diluted EPS | $1.06 | $1.27 | Nine Months Ended September 30 (in thousands, except per share data) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Interest Income | $53,741 | $53,110 | | Provision (Credit) for Loan Losses | $1,816 | ($1,906) | | **Net Income** | **$16,346** | **$18,144** | | Diluted EPS | $2.95 | $3.30 | [Unaudited Consolidated Statements of Comprehensive (Loss) Income](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) The company reported a comprehensive loss for both the third quarter and nine-month period ended September 30, 2022, primarily driven by substantial unrealized losses on available-for-sale securities Comprehensive (Loss) Income Summary (in thousands) | Period | 2022 | 2021 | | :--- | :--- | :--- | | **Three Months Ended Sep 30** | | | | Net Income | $5,864 | $6,979 | | Other Comprehensive Loss | ($15,525) | ($1,455) | | **Comprehensive (Loss) Income** | **($9,661)** | **$5,524** | | **Nine Months Ended Sep 30** | | | | Net Income | $16,346 | $18,144 | | Other Comprehensive Loss | ($44,153) | ($3,471) | | **Comprehensive (Loss) Income** | **($27,807)** | **$14,673** | [Unaudited Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased significantly, primarily due to other comprehensive losses from unrealized securities losses, partially offset by net income - Key drivers for the change in stockholders' equity during the first nine months of 2022 include net income of **$16.3 million**, other comprehensive loss of **$44.2 million**, and cash dividends paid of **$6.9 million**[13](index=13&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased significantly for the nine months ended September 30, 2022, primarily due to substantial cash used in investing activities and a net decrease in deposits Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $17,121 | $12,749 | | Net Cash from Investing Activities | ($189,582) | ($13,307) | | Net Cash from Financing Activities | ($51,117) | $94,677 | | **Net (Decrease) Increase in Cash** | **($223,578)** | **$94,119** | | Cash at Beginning of Period | $244,785 | $97,604 | | **Cash at End of Period** | **$21,207** | **$191,723** | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, securities and loan portfolio composition, credit quality, and the upcoming adoption of the CECL accounting standard, highlighting substantial unrealized losses on securities - The company's securities portfolio had gross unrealized losses of **$64.1 million** on available-for-sale securities as of September 30, 2022, which management determined to be temporary and primarily related to market interest rate fluctuations[22](index=22&type=chunk)[28](index=28&type=chunk) - The loan portfolio is primarily composed of real estate loans (**$1.39 billion**) and commercial and industrial loans (**$238 million**), with the allowance for loan losses at **$18.6 million**, or **1.14%** of total gross loans, as of September 30, 2022[35](index=35&type=chunk)[56](index=56&type=chunk) - The company will adopt the new CECL (Current Expected Credit Loss) accounting standard effective January 1, 2023, which is expected to have a material impact on the financial statements[112](index=112&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results, highlighting loan growth, credit quality improvements, the impact of rising interest rates on net interest income and securities, and capital and liquidity management [Analysis of Financial Condition](index=36&type=section&id=Analysis%20of%20Financial%20Condition) The analysis of financial condition highlights growth in gross loans (excluding PPP), a decrease in the criticized loan portfolio, and a significant net unrealized loss in the investment securities portfolio due to rising interest rates - Excluding the decline in Paycheck Protection Program (PPP) loans, gross loans increased by **$79 million** during the first nine months of 2022[125](index=125&type=chunk) - The criticized loan portfolio (rated "special mention" and "substandard") decreased by **$22 million** to **$89 million** at September 30, 2022, from **$111 million** at December 31, 2021[129](index=129&type=chunk) - The available-for-sale investment portfolio had a total net unrealized loss of **$64.1 million** at September 30, 2022, a significant shift from a net unrealized gain of **$4.3 million** at December 31, 2021, primarily due to rising market interest rates[133](index=133&type=chunk) [Analysis of Results of Operations](index=39&type=section&id=Analysis%20of%20Results%20of%20Operations) Net income decreased for both the third quarter and nine-month period ended September 30, 2022, primarily due to a provision for loan losses, despite growth in net interest income and margin expansion Quarterly Performance Highlights (Q3 2022 vs Q3 2021) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Net Income | $5.9M | $7.0M | | Diluted EPS | $1.06 | $1.27 | | Net Interest Income | $19.2M | $18.2M | | Net Interest Margin | 3.72% | 3.48% | | Provision (Credit) for Loan Losses | $1.3M | ($1.5M) | - The Q3 2022 provision for loan losses was primarily driven by a **$1.5 million** charge-off of a single government agency guaranteed commercial loan after a claim for reimbursement was denied[147](index=147&type=chunk) - For the first nine months of 2022, net interest income increased by **$0.6 million** year-over-year, as higher income from investment securities was largely offset by a **$5.5 million** reduction in PPP loan fees[150](index=150&type=chunk) [Capital and Liquidity](index=42&type=section&id=Capital%20and%20Liquidity) The company maintains strong capital ratios, despite a decline in book value per share due to unrealized losses on investment securities, and manages liquidity through various sources - The company maintains regulatory capital ratios significantly above the "well capitalized" standard, with a Tier 1 leverage ratio of **9.00%** at September 30, 2022[157](index=157&type=chunk) - Book value per share declined to **$27.20** at September 30, 2022, from **$32.73** at September 30, 2021, primarily due to an **$8.38** per share reduction from unrealized losses on investment securities caused by interest rate hikes[158](index=158&type=chunk) - The company has multiple sources of liquidity, including up to **$350 million** in borrowing capacity from the FHLB Overnight Line of Credit as of September 30, 2022[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with an asset-liability model projecting the sensitivity of net interest income to various interest rate changes Sensitivity of Net Interest Income to Interest Rate Changes (in thousands) | Rate Change | Projected Impact (Sep 30, 2022) | Projected Impact (Dec 31, 2021) | | :--- | :--- | :--- | | +200 bps | ($298) | $1,375 | | +100 bps | $3,004 | $3,569 | | -100 bps | ($4,548) | ($2,183) | [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting identified - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of September 30, 2022[173](index=173&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[174](index=174&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, with management believing no pending proceedings will materially adversely affect financial condition or results of operations - In the opinion of management, there are no pending legal proceedings that would have a material effect on the Company's financial condition or results of operations[176](index=176&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last Annual Report on Form 10-K - No material changes to risk factors were reported since the last Annual Report on Form 10-K[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares during Q3 2022, with **270,731** shares remaining available under its 2021 Repurchase Program - As of September 30, 2022, the company had authorization to repurchase an additional **270,731** shares of its common stock under its 2021 Repurchase Program[179](index=179&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including CEO and CFO certifications and financial data in XBRL format - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[182](index=182&type=chunk)

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $25 million, with quarterly earnings of $5.9 million, an increase from the second quarter [6][20] - Year-over-year earnings were impacted by a single charge-off credit, resulting in a higher provision during the quarter [7] - Net income was $5.9 million or $1.06 per diluted share, compared to $7 million or $1.27 per diluted share in the same quarter last year [20] Business Line Data and Key Metrics Changes - Net interest income increased by $1.1 million or 6% from the second quarter, driven by rising loan rates [21] - Non-interest income was $5.8 million, up approximately 12% year-over-year and 25% sequentially, primarily due to higher insurance commissions [26] - Total loans grew by $13 million, with commercial loans increasing by $7.5 million net of PPP [32] Market Data and Key Metrics Changes - Total deposits decreased by $95 million or 5% from the sequential second quarter, attributed to seasonal municipal client balances [34] - Year-over-year, total deposits were down less than 1% [34] - The commercial and industrial lending sector showed resilience, contributing to a strong pipeline despite headwinds in commercial real estate [9][33] Company Strategy and Development Direction - The company is focusing on operational effectiveness, investing approximately $1 million in technology to enhance efficiency and client engagement [17][42] - A public-private partnership initiative aims to construct and market single-family homes in underserved areas, reflecting the company's commitment to community development [12][13] - The company is also adapting to changes in the regulatory environment regarding overdraft fees, anticipating a $500,000 annual impact on service charge income [18][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy and the company's diversified portfolio, positioning it well for various economic conditions [20] - The company expects further expansion in net interest margin (NIM) with anticipated Fed rate hikes [36] - Management noted that the increase in non-performing loans was due to a unique situation and does not reflect the overall credit quality of the portfolio [24][52] Other Important Information - The efficiency ratio improved to 63.3%, a 270 basis point improvement year-over-year [29] - The company has upgraded or paid off more than half of its criticized hotel portfolio, leaving $38 million in criticized status [10][11] Q&A Session Summary Question: Can you discuss the liquidity and cash flows from the securities portfolio? - Management indicated that liquidity decreased due to seasonal factors but expected inflows from municipal deposits in the upcoming quarter [38] Question: What is the outlook for expenses and loan demand? - Management expects salaries to decrease in the fourth quarter due to bonus accrual differences and noted a shift towards commercial and industrial lending [46][48] Question: Are there opportunities for acquisitions in the current market? - Management stated that the market is consolidated with limited acquisition opportunities, preferring organic growth in existing markets [56][60]

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended June 30, 2022 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ______ Commission file number 001-35021 EVANS BANCORP, INC. (Exact name of registrant as specified in its charter) New York 16-1332767 (State or ...

Financial Data and Key Metrics Changes - Net income for Q2 2022 was $5.7 million, or $1.03 per diluted share, compared to $6.3 million, or $1.15 per diluted share in Q2 2021, and $4.7 million, or $0.86 per diluted share in Q1 2022 [25] - Net interest income increased by $1.6 million, or 9% from Q1 2022, driven by higher average loan balances and loan offering rates [26] - Net interest margin rose by 27 basis points to 3.45% in Q2 2022 [29] Business Line Data and Key Metrics Changes - Loan closings reached $105 million, primarily driven by strong demand in commercial real estate and commercial and industrial loans [9] - Total loans increased by $53 million year-over-year, excluding the impact of PPP loan forgiveness [34] - Non-interest income was $4.6 million, up about $200,000 from the previous quarter, with insurance revenue being a key driver [30] Market Data and Key Metrics Changes - Total deposits decreased by 1% from Q1 2022 to $1.97 billion, attributed to seasonal fluctuations in municipal client balances [38] - Year-over-year, total deposits increased by $85 million, or 4%, reflecting growth across all deposit categories except time deposits [38] Company Strategy and Development Direction - The company is focused on enhancing customer experience through technology investments while managing expenses effectively [12] - A branch network efficiency initiative has led to the closure or repurposing of three locations, expected to yield annual non-interest cost savings of approximately $750,000 [15] - The company aims to grow loan production and documentation through a new commercial efficiency project, expected to roll out in late Q3 or early Q4 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about rising interest rates driving higher net interest income and margins [8] - The company is aware of challenges in the labor market but has successfully retained key associates and enhanced its culture [16] - Management anticipates further expansion in net interest margin of approximately 20 basis points in Q3 2022, assuming no further Fed rate hikes [39] Other Important Information - The company is actively involved in community support following a tragic event in Buffalo, emphasizing its commitment to equity and community development [23][24] - A new Chief Diversity, Inclusion and Community Development Officer has been appointed to enhance the company's cultural initiatives [18] Q&A Session Summary Question: Expectations for net interest margin (NIM) in Q3 - Management expects a 20 basis point increase in NIM for Q3, not including the recent 75 basis point hike [42] Question: Loan growth funding - The company can fund loan growth with existing cash and cash flows from securities, without needing to expand the balance sheet significantly [44] Question: Efficiency initiatives - The commercial efficiency project aims to create operating leverage, reduce expenses, and enhance controls [49][50] Question: Deposit flows and seasonality - Management expects a return of municipal deposits in Q3, following historical seasonal patterns [58] Question: Capital levels and regulatory concerns - Current capital ratios are deemed sufficient, and management is not significantly concerned about AOCI impacts [61] Question: Hospitality book performance - The company will assess the criticized hospitality book at the end of Q3, with positive performance trends noted [63]

Evans Bancorp, Inc. (NYSE:EVBN) Q1 2022 Earnings Conference Call April 27, 2022 4:45 PM ET Company Participants Deborah Pawlowski – Investor Relations David Nasca – President and Chief Executive Officer John Connerton – Chief Financial Officer Conference Call Participants Alex Twerdahl – Piper Sandler Chris O’Connell – KBW Richard Lashley – PL Capital Operator Greetings, and welcome to Evans Bancorp First Quarter Fiscal Year 2022 Financial Results Conference Call. At this time, all participants are in a lis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-35021 EVANS BANCORP, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | |----------- ...

Financial Data and Key Metrics Changes - The company achieved record net income of $24 million for the full year 2021, more than double the prior year [8] - Net income for Q4 2021 was $5.9 million or $1.06 per diluted share, down slightly from the prior year due to a lower tax rate in the previous period [16] - Net interest income increased by $3.2 million or 20% year-over-year and $1.5 million or 8% sequentially [17] - The effective tax rate for Q4 2021 was 23.4%, compared to 25.6% in Q3 2021 and 12% in Q4 2020 [23] Business Line Data and Key Metrics Changes - Record commercial loan production exceeded $312 million, offsetting commercial loan payoffs which ran at double average rates [9] - The residential mortgage operation produced a record $119 million in mortgages in 2021 [13] - Noninterest income for Q4 was $4.7 million, with a decline in insurance revenues due to higher loss ratios [20] Market Data and Key Metrics Changes - Total deposits grew to $1.9 billion, up 3% sequentially and 9% year-over-year [28] - The balance of PPP loans forgiven in Q4 2021 was $51 million, bringing the total forgiven to $273 million [25] Company Strategy and Development Direction - The company aims to deliver results in the top quartile of banks its size, focusing on commercial banking and expanding its residential mortgage team [32][34] - A formal career development program has been initiated to support new hires in the insurance sector [36] - The company is leveraging technology to enhance client experience and operational efficiency [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan growth and improving net interest margins as excess liquidity is deployed [29] - The company remains disciplined in maintaining credit standards despite competitive pressures [27] - Management anticipates that labor inflation will primarily affect retention rather than incentive growth [58] Other Important Information - The company made $0.5 million in philanthropic contributions during the year [39] - The company expects core net interest margin to improve by 15 to 20 basis points as excess liquidity is utilized [29] Q&A Session Summary Question: Can you walk us through how you came up with the performance goals? - Management indicated that the goals are dynamic and based on production levels, pipeline, and added talent [42][43] Question: What is the expected run rate for salaries going into next year? - The expected run rate for salaries is around $9.7 million per quarter, reflecting a more typical level after higher incentives in the previous year [45][46] Question: Why did the reserve increase despite improved nonperforming loans? - The increase in reserves was due to growth in performing assets, as many payoffs were from non-accrued loans [48][49] Question: How will excess liquidity be deployed? - The company plans to utilize most of the excess liquidity by the end of June, focusing on loan portfolio growth and investment securities [54] Question: What is the expected effective tax rate for next year? - The effective tax rate for 2022 is expected to be similar to that of Q4 2021 [60]

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended September 30, 2021 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ______ Commission file number 001-35021 EVANS BANCORP, INC. (Exact name of registrant as specified in its charter) New York 16-1332767 (Stat ...

Evans Bancorp, Inc. (NYSE:EVBN) Q3 2021 Earnings Conference Call October 28, 2021 4:45 PM ET Company Participants Deborah Pawlowski - IR David Nasca - President and CEO John Connerton - CFO Conference Call Participants Alex Twerdahl - Piper Sandler Bryce Rowe - Hovde Group Operator Greetings. Welcome to the Evans Bancorp Third Quarter Fiscal Year 2021 Financial Results. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Deborah Pawlowski ...

Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended June 30, 2021 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ______ Commission file number 001-35021 EVANS BANCORP, INC. (Exact name of registrant as specified in its charter) New York 16-1332767 (State or ...