Evans Bancorp, Inc. (EVBN) | Investment Case

1. Company Snapshot

1.a. Company Description

Evans Bancorp, Inc.primarily operates as the financial holding company for Evans Bank, N.A. that provides a range of banking products and services to consumer and commercial customers in Western New York and the Finger Lakes Region of New York State.It operates in two segments, Banking Activities and Insurance Agency Activities.

The company offers deposit products, which include checking and negotiable order of withdrawal accounts, savings accounts, and certificates of deposit.It also provides residential mortgages; commercial and multi-family mortgages and commercial construction loans; home equities, such as home equity lines of credit and second mortgage loans; commercial and industrial loans comprising term loans and lines of credit; consumer loans, including direct automobile, recreational vehicle, boat, home improvement, and personal loans; other loans consisting of cash reserves, overdrafts, and loan clearing accounts; and installment loans.In addition, the company sells various premium-based insurance policies, including business and personal insurance, employee benefits, surety bonds, risk management, life, disability, and long-term care coverage, as well as provides claims adjusting services to various insurance companies; and non-deposit investment products, such as annuities and mutual funds.

It operates through a total of 21 full-service banking offices in Erie County, Niagara County, Monroe County, and Chautauqua County, New York.Evans Bancorp, Inc.was founded in 1920 and is headquartered in Williamsville, New York.

Show Full description

1.b. Last Insights on EVBN

Evans Bancorp's recent performance was hindered by a decline in net interest income, primarily due to a decrease in yields on its investment securities portfolio. The company's net interest margin contracted by 14 basis points year-over-year, resulting in a lower contribution to earnings. Furthermore, Evans Bancorp's loan growth has been sluggish, with a 2% increase in total loans outstanding, which is below the industry average. Additionally, the company's non-interest income was impacted by a decline in service charges and fees.

1.c. Company Highlights

Last Price	39.53
Change Percentage	2.41%
Open	39.11
Previous Close	38.6
Market Cap ( Millions)	220
Volume	34406
Year High	46.21
Year Low	25.59
M A 50	38.66
M A 200	40.09

FCF Yield	-0.39%
Dividend Yield	3.34%
ROE	5.28%
Debt / Equity	66.58%
Net Debt / EBIDTA	873.25%
Price To Book	1.2
Price Earnings Ratio	22.78
Price To FCF	-255.31
Price To sales	4.12
EV / EBITDA	32.99

2. Transcript Summary

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3. NewsRoom

Evans Bancorp Reports Net Income of $3.7 Million In Fourth Quarter 2024

Feb -04

Source: businesswire.com

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates FLIC and EVBN on Behalf of Shareholders

Sep -12

Source: globenewswire.com

SHAREHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Merger of Evans Bancorp Inc. - EVBN

Sep -12

Source: prnewswire.com

EVANS BANCORP INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Evans Bancorp, Inc. - EVBN

Sep -12

Source: businesswire.com

Shareholder Alert: Ademi LLP investigates whether Evans Bancorp, Inc. has obtained a Fair Price for its Public Shareholders

Sep -10

Source: prnewswire.com

EVBN Stock Alert: Halper Sadeh LLC Is Investigating Whether the Sale of Evans Bancorp, Inc. Is Fair to Shareholders

Sep -10

Source: businesswire.com

US lender NBT Bancorp to buy Evans Bancorp in $236 mln deal

Sep -09

Source: reuters.com

Evans Bancorp, Inc. (EVBN) Q2 2024 Earnings Call Transcript

Jul -31

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Banking

Expected Growth: 4.77%

Evans Bancorp, Inc.'s 4.77% growth is driven by strong loan growth, fueled by a robust commercial and industrial loan portfolio, as well as a significant increase in mortgage banking revenue. Additionally, the company's focus on digital transformation and cost savings initiatives has improved operational efficiency, contributing to its growth momentum.

Insurance Agency

Expected Growth: 4.83%

The 4.83% growth of the Insurance Agency from Evans Bancorp, Inc. is driven by increasing demand for risk management services, strategic partnerships, and expansion into new markets. Additionally, the agency's focus on digital transformation, improved customer experience, and a skilled workforce have contributed to its growth.

7. Detailed Products

Commercial Loans

Evans Bancorp, Inc. offers a range of commercial loans to businesses, including term loans, lines of credit, and construction loans, to support their growth and expansion plans.

Residential Mortgages

Evans Bancorp, Inc. provides residential mortgage loans to individuals and families, offering competitive rates and flexible repayment terms.

Consumer Loans

Evans Bancorp, Inc. offers consumer loans for personal expenses, debt consolidation, and other financial needs, with flexible repayment terms and competitive interest rates.

Deposit Accounts

Evans Bancorp, Inc. offers a range of deposit accounts, including checking, savings, and certificates of deposit (CDs), with competitive interest rates and convenient online banking services.

Treasury Management Services

Evans Bancorp, Inc. provides treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their cash flow and optimize their financial operations.

Wealth Management Services

Evans Bancorp, Inc. offers wealth management services, including investment management, retirement planning, and estate planning, to help individuals and families achieve their long-term financial goals.

8. Evans Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Evans Bancorp, Inc. is medium due to the presence of alternative financial institutions and digital banking platforms.

Bargaining Power Of Customers

The bargaining power of customers for Evans Bancorp, Inc. is low due to the lack of concentration in the banking industry and the presence of many competitors.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Evans Bancorp, Inc. is medium due to the presence of a few large suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants for Evans Bancorp, Inc. is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Evans Bancorp, Inc. is high due to the presence of many competitors in the banking industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	51.17%
Debt Cost	6.70%
Equity Weight	48.83%
Equity Cost	8.69%
WACC	7.67%
Leverage	104.78%

11. Quality Control: Evans Bancorp, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Republic Bancorp

A-Score: 7.0/10

Value: 6.4

Growth: 7.0

Quality: 7.9

Yield: 6.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

Timberland Bancorp

A-Score: 6.7/10

Value: 5.7

Growth: 5.9

Quality: 7.2

Yield: 7.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

Midland States Bancorp

A-Score: 6.5/10

Value: 9.1

Growth: 5.6

Quality: 6.3

Yield: 10.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

CNB Financial

A-Score: 6.1/10

Value: 6.7

Growth: 4.9

Quality: 6.7

Yield: 6.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

NBH

A-Score: 6.1/10

Value: 6.6

Growth: 6.9

Quality: 6.1

Yield: 6.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Evans Bancorp

A-Score: 5.0/10

Value: 4.7

Growth: 1.9

Quality: 6.0

Yield: 6.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

45.17%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.67%

Evans Bancorp, Inc. - US29911Q2084

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EVBN

1.c. Company Highlights

Average Yield

Average Quality

Medium Volatility

Earnings Beats

Revenues Beats

Stable Momentum

Expensive

Strong Momentum

Fairly Valued

Lower Growth

Earnings Miss

Less Volatile

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Banking

Expected Growth: 4.77%

Insurance Agency

Expected Growth: 4.83%

7. Detailed Products

Commercial Loans

Residential Mortgages

Consumer Loans

Deposit Accounts

Treasury Management Services

Wealth Management Services

8. Evans Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Evans Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.53$

Current Price

39.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA