Investor Presentation
June 2022
David J. Nasca
President & CEO
John B. Connerton
Executive Vice President & CFO
This presentation includes "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
is presentation includes "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.
Building a preeminent community financial institution
Creating scale and sophistication to leverage in reviving WNY market
Increasing competitive advantages with the best talent and top tier client experiences
A Century of serving Western New York
Market Share By Deposits $70.4B
Growing in market dominated by two top 25 banks
Building platform for increased future earnings power
Acquired Fairport Savings Bank May 1, 2020
Talent acquisition: nearly 50% increase in commercial lenders since 2020
Total Portfolio: $1.1 billion
Well diversified
Stable Multifamily market
Average LTV 55%
Platform to build and add relationships and offer other products and services
Added ~850 new commercial customers – nearly doubled commercial base
Solid underwriting discipline and proactive portfolio management
In-market focus and deep customer relationships
3/31/22 AFS total $385.9M up 103% Y/Y
Conservative mix
98% of total portfolio AFS
18% of total assets
Emphasis on expanding:
1. Insurance
2. Employee benefits
3. Cash management
4. Deposit service fees
Insurance Acquisitions:
Richardson & Stout Insurance in 2018
Benefit Brokers of Western New York in 2020
Higher interest-earning assets and accelerated amortization PPP fees
Lower provision reflecting improved economic trends and conditions related to COVID-19
Over $700 million in assets, or 32% of the total, are due to reprice in the next 12 months
Deposit growth over the last 4-5 years has shifted away from rate sensitive CDs to “stickier” transactional deposits
Customer tenure: ~75% of total deposit portfolio with the bank 5+ years
Deposit betas from the last up rate cycle performed well in comparison to our model expectations and to peers
Interest bearing deposit beta of 28%, Total deposit beta 21%
Evans Strategic Objectives
Technology Evolution
Aligned to focus on advancing customer experience, operational efficiency and scalability
Leverage robotic process and workflow automation and evaluate opportunities to partner with financial technology providers as part of our overall digital transformation strategy
Goal to deliver strong and stable IT support for Bank growth
Focus on Talent
Talent and culture are true differentiators for Evans and key determinants for our success
Learning and development efforts, combined with consistent company and manager-led communication and programs, and focus on team empowerment and diversity
Concentrated heavily on preparing our team for the continuously changing environment and future technology enhancements
Community
Evans seeks to meet its values and honor its promise as a community based financial institution
Continue to support community projects and contribute our resources and business expertise to programs and entities that enrich our community
Near term performance goals over the next one to two years
Strong and growing franchise in resurgent WNY
Diverse revenue mix, strong operating fundamentals
Core deposit and loan growth
Lower-risk balance sheet with solid capital base
Excess liquidity to support robust loan pipeline and investments to drive growth and earnings
Value creation with acquisition of FSB Bancorp
Enhanced scale: leverages strength of Evans commercial bank and combined mortgage operation
Created team and technology infrastructure to continue to gain market share
Shareholder return orientation
David J. Nasca, President and Chief Executive Officer
John B. Connerton, EVP, Chief Financial Officer
Mary Ellen Frandina, EVP, Chief Administrative Officer
Dale M. McKim III, EVP, Chief Risk Officer
Kenneth D. Pawlak, EVP, Chief Commercial Banking Officer
Nicholas J. Snyder, EVP, Retail Distribution and Corporate Operations
Aaron M. Whitehouse, President, The Evans Agency, LLC
Jen Zorn, EVP, Chief Information Officer
