Evans Bancorp (EVBN) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 net income of $3.7 million ($0.67 per diluted share), up sequentially but down from $10.2 million ($1.85 per share) in Q4 2023, which included a $20.2 million gain from the sale of The Evans Agency.

• Full-year 2024 net income was $12.0 million ($2.16 per share), compared to $24.5 million ($4.48 per share) in 2023, reflecting the absence of the prior year's one-time gain.

• Evans shareholders and regulators approved the merger with NBT Bancorp Inc.; the transaction is expected to close in Q2 2025.

Financial highlights

• Q4 2024 net interest income rose to $15.7 million, up 4% sequentially and 13% year-over-year, driven by higher average loans and improved deposit pricing.

• Net interest margin for Q4 2024 was 2.96%, up 16 bps sequentially and 21 bps year-over-year.

• Total loans grew $63 million (4%) and total deposits increased $148 million (9%) year-over-year.

• Non-interest income for Q4 2024 was $3.3 million, up $0.3 million sequentially; full-year non-interest income was $11.0 million, down from $32.9 million in 2023 due to the prior year's insurance agency sale.

• Non-interest expense in Q4 2024 was $14.4 million, up $0.8 million sequentially due to merger costs; full-year non-interest expense fell $6.0 million to $53.4 million, reflecting the TEA sale.

Outlook and guidance

• The merger with NBT Bancorp is expected to close in Q2 2025, with anticipated benefits in market position and stakeholder value.

• Management remains focused on credit quality, execution, and a smooth transition during the merger process.