Evans Bancorp Emerges as Target in NBT Bank's $236 M Acquisition Deal

Evans Bancorp Inc., headquartered in Williamsville, entered into a strategic acquisition agreement with NBT Bank, a deal that bears a $236 million valuation and is structured as all-stock. This decision follows a challenging financial year for Evans, marked by a dramatic 58% drop in core operating income attributed to high interest rates and a fiercely competitive banking sector. Nevertheless, Evans managed to report an improved annual net income of $24.5 million, primarily from the $40 million sale of its insurance subsidiary. The bank's core banking net income was starkly reduced, highlighting a need for strategic realignment. In March, following extensive strategic review discussions, Evans's board opted to seek a buyer, engaging Piper Sandler to explore merger opportunities. Four banks initially expressed interest in acquiring Evans, leading to a bidding process that culminated with NBT as the favored acquirer in July. As the merger moves towards completion, pending regulatory and shareholder approval, indicative changes are expected, such as anticipated layoffs focusing on back-office roles. Post-merger, Evans’ executive team including CEO David Nasca, will transition with substantial compensation packages. Evans's assets stood at $2.3 billion with 281 employees, contrasting NBT's larger operational scale with $13.4 billion in assets and 1,720 employees. The consummation of the deal, which is projected for completion by mid-2025, will see Evans’s shareholders receiving 0.91 NBT shares per Evans share.