Executive Summary

EVBN delivered Q4 2024 diluted EPS of $0.67 on net income of $3.7M, up sequentially from $0.53, driven by a 16 bps NIM expansion to 2.96%, lower funding costs, and modestly higher non-interest income; results included $1.1M in merger-related expenses and a net benefit from a NY state historic tax credit investment .
Net interest income rose to $15.7M (+4% q/q; +13% y/y), with cost of interest-bearing liabilities easing to 3.01% (from 3.28% in Q3) as competitive deposit pricing moderated alongside Fed cuts; loan yields dipped 8 bps q/q but were +29 bps y/y .
Asset quality improved: NPLs fell to $20.3M (1.14% of loans) from $32.6M (1.82%) in Q3, though provision increased to $1.1M due to a specific reserve tied to an updated appraisal on a previously non-performing loan .
Strategic catalyst: shareholders and regulators approved the merger with NBT Bancorp; closing targeted for Q2 2025; exchange ratio 0.91 NBT shares per EVBN, aggregate value ~$236M at NBT’s 9/6/24 close .
Street consensus (S&P Global) for Q4 2024 EPS/revenue was unavailable via our endpoint; no vs-estimate comparisons provided (unavailable) [functions.GetEstimates error].

What Went Well and What Went Wrong

What Went Well
- Net interest margin expanded 16 bps sequentially to 2.96% on strategic deposit pricing and easing competitive pressures, lifting net interest income q/q and y/y .
- Asset quality trend improved: NPLs declined by $12.3M during the quarter, aided by renewal of a large loan previously 90+ days past due .
- Non-interest income saw a net positive contribution from a historic tax credit placed in service, partially offsetting other items; total non-interest income improved q/q to $3.3M .
- Management momentum on strategic actions: merger with NBT advanced (shareholder and regulatory approvals) and remains on track for Q2 2025 close; CEO emphasized confidence in long-term value creation post-merger .
- Quote: “We are confident that this partnership will enhance our long-term ability to deliver exceptional service, strengthen our position in the market, and create lasting value...” — David J. Nasca, President & CEO .
What Went Wrong
- Provision rose to $1.1M due to a specific reserve on a previously non-performing loan after a lower appraisal, pressuring pre-tax income q/q .
- Non-interest expense increased to $14.4M (+$0.8M q/q) largely from higher merger-related costs (+$0.5M q/q) and incentive accruals (+$0.5M), keeping the GAAP efficiency ratio elevated at 75.55% .
- Sequential deposits declined 2% on municipal seasonality, temporarily weighing on balance sheet funding dynamics despite a 9% y/y deposit increase .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($USD Thousands)	$13,946	$14,320	$15,044	$15,697
Provision for Credit Losses ($USD Thousands)	$282	$297	$570	$1,103
Total Non-Interest Income ($USD Thousands)	$18,551	$2,400	$2,994	$3,298
Total Non-Interest Expense ($USD Thousands)	$16,300	$12,558	$13,587	$14,351
Net Income ($USD Thousands)	$10,174	$2,946	$2,943	$3,731
Diluted EPS ($)	$1.85	$0.53	$0.53	$0.67
Net Interest Margin (%)	2.75%	2.71%	2.80%	2.96%
Efficiency Ratio (GAAP, %)	50.16%	75.11%	75.32%	75.55%
Efficiency Ratio (Non-GAAP, %)	93.40%	75.08%	71.98%	70.76%
S&P Global Consensus EPS	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)
S&P Global Consensus Revenue	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)	N/A (unavailable)

Notes: EVBN, as a bank, reports net interest income and non-interest income rather than a single “revenue” line; consensus (S&P Global) was unavailable via our endpoint for these periods [functions.GetEstimates error].

KPIs and Balance Sheet/Asset Quality

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total Loans ($USD Thousands)	$1,720,946	$1,765,116	$1,787,957	$1,783,664
Total Deposits ($USD Thousands)	$1,718,761	$1,891,541	$1,900,718	$1,866,477
Book Value/Share ($)	$32.40	$32.15	$33.58	$32.89
Tangible BV/Share ($, Non-GAAP)	$32.07	$31.81	$33.25	$32.56
Non-Performing Loans ($USD Thousands)	$27,325	$25,128	$32,598	$20,275
NPLs / Total Loans (%)	1.59%	1.42%	1.82%	1.14%
Allowance for Credit Losses / Loans (%)	1.28%	1.28%	1.29%	1.36%
Cost of Interest-Bearing Liabilities (%)	2.87%	3.27%	3.28%	3.01%
FHLB Borrowings ($USD Millions)	$145.1 (Other borrowings)	$88 Fed + $41 FHLB outstanding at 6/30/24 (narrative)	$88 Fed + $40 FHLB outstanding at 9/30/24 (narrative)	$80 FHLB outstanding at 12/31/24 (Fed $0)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Update	Change
Net Interest Margin (NIM) trajectory	2H 2024 into 2025	Q2 call: NIM to bottom “around 2.68%” in Q3 2024, then improve slowly in Q4 and next year	Actual Q3 NIM 2.80%; Q4 NIM improved to 2.96% as funding costs moderated	Improving; performance consistent-to-better than prior commentary
Loan growth (commercial)	FY 2024	Mid-single digit growth expected (Q2 call)	Loans up $63M, +4% vs 12/31/23 by year-end	In line with mid-single digit framework
Merger timeline (NBTB)	Close timing	Announced 9/9/24; expected Q2 2025 pending approvals	Shareholder and regulatory approvals obtained; closing targeted Q2 2025	Maintained timeline/progressed milestones
Dividend	2024 cadence	$0.66 declared in Q1 and Q3 2024	No Q4 dividend shown in operations table (consistent cadence)	Maintained cadence (no new update)

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available; trends reflect Q2 call and Q3/Q4 press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
NIM and funding costs	Expected Q3 NIM low point; stabilization in deposit pricing; CD offers ~4.5% amid competition; 25 bps cuts likely neutral on balance sheet without market repricing help	NIM +9 bps q/q to 2.80%; cost of interest-bearing liabilities 3.28%	NIM +16 bps q/q to 2.96%; cost of liabilities down to 3.01% as competition eased with Fed cuts	Improving
Loan growth & pipeline	Strong C&I-led pipeline $137M; originations ~7.5%+ yields for longer-term CRE/C&I	Pipeline $83M; loans +4% ytd vs YE23	Pipeline $76M; loans +4% vs YE23	Solid but moderating pipeline
Credit quality	No emerging credit issues; OREO (hotel) set to sell without loss	NPLs rose on one 90+ and accruing loan expected to renew early Q4	NPLs fell sharply; provision driven by specific reserve after appraisal	Improved
Non-interest income	Slightly elevated “other”; variability expected	OREO sale boosted other income	Historic tax credit recognition net benefit; total NII up q/q	One-time items supporting
Deposits/municipal seasonality	Seasonal pattern: lows in September and December	Deposits +11% vs YE23; seasonal flow discussed	Deposits -2% q/q on normal municipal seasonality; +9% y/y	Seasonality as expected
Merger with NBT	Announced (9/9 later) – not in Q2 call; strategic benefits implied	Merger announced; expected Q2 2025 close	Shareholder + regulatory approvals; Q2 2025 close targeted	Advancing

Management Commentary

CEO message on merger and execution: “We are confident that this partnership will enhance our long-term ability to deliver exceptional service, strengthen our position in the market, and create lasting value for all stakeholders” — David J. Nasca .
Rate and funding dynamics: “Fourth quarter net interest margin was 2.96%, up 16 basis points sequentially driven by strategic deposit pricing” and cost of interest-bearing liabilities fell to 3.01% from 3.28% q/q .
Provision/credit detail: $1.1M provision largely due to a specific reserve on a previously non-performing loan following a reduced appraisal; NPLs decreased by $12.3M q/q as a 90+ days past due loan renewed early in Q4 .
Non-interest income drivers: Net incremental impact from a historic tax credit placed in service in Q4; total non-interest income rose q/q to $3.3M .

Q&A Highlights

No Q4 2024 call transcript was available. Highlights from the most recent call (Q2 2024) provide context:

Origination yields: longer-term CRE/C&I loans in the 7.5%+ area; lines at prime-plus .
Variable-rate exposure: variable-rate portfolio around $300M (maturity/reprice detail to follow-up) .
Deposit/muni seasonality: balances typically trough in September and December; pattern expected to persist .
CDs and pricing: offering ~4.5% CDs; competition had been at/above 5% earlier; funding pricing seen plateauing .
NIM sensitivity: a 25 bps Fed cut is likely neutral on EVBN’s balance sheet math; impact depends on competitor deposit pricing behavior .
Fees/“other” line: slightly elevated; inherently variable due to mix (loan fees, etc.) .
Expenses/investments: near-term focus on extracting efficiencies from prior tech and personnel investments .
Credit: OREO property was a hotel; sale expected with no loss; broader credit trends stable .
Tax rate: ~22.5% go-forward assumption (from Q2 call) .

Estimates Context

S&P Global consensus (EPS and revenue) for EVBN Q4 2024 was unavailable via our endpoint; as such, we cannot provide vs-consensus comparisons for this quarter (or prior two quarters) [functions.GetEstimates error].
Given the absence of SPGI consensus, focus is on sequential and y/y performance vs company-provided results and ratios.

Key Takeaways for Investors

Margin inflection playing through: NIM rose to 2.96% (+16 bps q/q) as deposit costs eased with lower competitive pressure and Fed cuts; this supports further earnings normalization into 2025 if funding tailwinds persist .
Asset quality improved materially in Q4 (NPLs down to 1.14% of loans), though the quarter included a specific reserve tied to a reappraised loan; monitor reserve trajectory as rates and collateral values evolve .
Operating leverage still constrained by merger-related costs and incentive accruals; GAAP efficiency ratio remained ~75.6% in Q4; watch for post-close cost actions under NBT .
Balance sheet: deposits fell sequentially on expected municipal seasonality but remain +9% y/y; loan balances were flat q/q and +4% vs YE23 with a $76M pipeline, suggesting steady (if moderated) production into 2025 .
One-time/non-core items (historic tax credit) aided non-interest income; underlying fee durability remains modest but stable .
Strategic catalyst: merger with NBT (0.91 NBT shares per EVBN) has cleared shareholder and regulatory approvals; targeted close Q2 2025 — a key stock narrative driver near term .
Absent consensus estimates, trading setup hinges on the pace of funding cost relief, sustained NIM recovery, and merger timeline confidence; risks include renewed deposit competition, isolated credit events, and rate path uncertainty .

Additional References and Prior-Quarter Context

Q3 2024 press release (EPS $0.53; NIM 2.80%; OREO gain; merger-related expenses) .
Q2 2024 press release and call (EPS $0.53; NIM 2.71%; deposit/cost strategy; loan growth/pipeline; expense control) .
Special shareholder meeting transcript confirming merger approval (Dec 20, 2024) .

EVANS BANCORP INC (EVBN)·Q4 2024 Earnings Summary