Evans Bancorp, Inc. (the "Company" or "Evans") (NYSE:EVBN), a community financial services company serving Western New York since 1920, today reported results of operations for the fourth quarter and full year ended December 31, 2023.

HIGHLIGHTS

Completed the sale of The Evans Agency ("TEA") to Arthur J. Gallagher & Co, netting a pretax gain of $20.2 million in the fourth quarter
Repositioned balance sheet with sale of $78 million of investment securities – proceeds used to reduce short-term borrowings; resulted in recognized pretax loss of $5.0 million in the quarter but improves forward net interest income
Total loan balances of $1.7 billion up 1% in the quarter and 3% year-over-year
Fourth quarter net interest margin of 2.75% declined 4 basis points sequentially
Tangible book value per share increased 25% to $32.07 at December 31, 2023 compared with prior year's fourth quarter
Paid dividends of $1.32 per share in 2023, up 5%

Net income was $10.2 million, or $1.85 per diluted share, in the fourth quarter of 2023, compared with $3.6 million, or $0.66 per diluted share, in the third quarter of 2023 and $6.0 million, or $1.10 per diluted share, in last year's fourth quarter. On November 30, 2023, the Company sold The Evans Agency to Arthur J. Gallagher & Co., and recognized a pretax gain of $20.2 million. In addition, the Company strategically repositioned its balance sheet by selling $78 million of investment securities, primarily available-for-sale U.S. Treasuries and government-sponsored agency securities, and used the proceeds to pay down short-term borrowings. This action resulted in $5.0 million of pretax losses on investment securities during the fourth quarter of 2023 with expected positive forward impact on net interest income. Return on average equity was 25.73% for the fourth quarter of 2023, compared with 9.06% in the third quarter of 2023 and 16.07% in the fourth quarter of 2022.

For the full year of 2023, net income increased 10% to $24.5 million, or $4.48 per diluted share, compared with $22.4 million, or $4.04 per diluted share, in 2022. The increase mainly reflected the gain on sale of the insurance agency partially offset by lower net interest income and loss on investment securities. Allowance for credit losses was reduced by $2.7 million from the prior year as a result of improving economic factors, including peer metrics, and a $1.5 million charge-off of a single commercial loan during 2022. The return on average equity was 15.47% for 2023 compared with 13.49% in 2022.

"Evans' performance in 2023 was characterized by resiliency," commented David J. Nasca, President and CEO of Evans Bancorp, Inc. "With a backdrop of interest rate pressure and macro-economic factors such as inflation, potential recession and liquidity demands, the dedicated work of the entire Evans team successfully protected and served client relationships, and maintained funding and liquidity. Actions were also taken to control costs, deliver efficiencies, and improve customer experience with investments in technology and process improvements.

"During the fourth quarter, we executed two strategic initiatives. The sale of The Evans Agency resulted in significant value creation including measurable growth in our tangible book value with an after-tax gain of approximately $13 million and elimination of almost $12 million of goodwill and other intangibles. The proceeds from the transaction strengthened capital which allows flexibility to strategically redeploy back into our core banking franchise, including the restructure in our balance sheet which was completed in the fourth quarter to reduce lower yielding investment assets and reduce borrowings which we expect to improve returns in 2024."

Net Interest Income ($ in thousands)

	4Q 2023		3Q 2023		4Q 2022

Interest income	$	25,205	$	24,292	$	22,381
Interest expense		11,259		10,036		3,167
Net interest income		13,946		14,256		19,214
Provision for credit losses		282		506		923
Net interest income after provision	$	13,664	$	13,750	$	18,291

Net interest income of $13.9 million was down $0.3 million, or 2%, from the third quarter and $5.3 million, or 27%, from last year's fourth quarter as a result of higher interest expense related to the increased cost of interest-bearing liabilities produced by competitive pricing on deposits.

Fourth quarter net interest margin of 2.75% declined 4 basis points from the trailing third quarter and 102 basis points from the prior-year period. The yield on loans increased 18 basis points compared with the third quarter and 55 basis points year-over-year. The cost of interest-bearing liabilities was 2.87% compared with 2.59% in the third quarter of 2023 and 0.86% in the fourth quarter of 2022.

The $0.3 million provision for credit losses in the current quarter was due to loan growth and higher reserves on individually analyzed loans, partially offset by improving economic factors, including peer group metrics.

Asset Quality ($ in thousands)

	4Q 2023			3Q 2023			4Q 2022

Total non-performing loans	$	27,325		$	27,311		$	24,728
Total net loan charge-offs		11			35			115
Non-performing loans / Total loans		1.59	%		1.60	%		1.48	%
Net loan charge-offs / Average loans		-	%		0.01	%		0.03	%
Allowance for loan losses / Total loans		1.28	%		1.28	%		1.16	%

"The transaction to restructure the balance sheet reduces a portion of the Bank's liability sensitivity, increases future net interest income, and has just over a two-year payback after paying down higher rate borrowings," commented John Connerton, Chief Financial Officer of Evans Bank. "We remain focused on growing consumer and commercial core deposits, and while our deposit levels saw some contraction during the quarter, a large component was attributable to normal commercial and municipal deposit seasonality. We believe we are managing the current rate environment well by retaining key relationships, which along with capital growth puts us in a favorable position."

Non-Interest Income ($ in thousands)
	4Q 2023		3Q 2023		4Q 2022

Deposit service charges	$	670	$	665	$	684
Insurance service and fee revenue		1,613		3,498		2,204
Bank-owned life insurance		230		239		221
Interchange fee income		510		516		507
Gain on sale of insurance agency		20,160		-		-
Loss on sale of investment securities		(5,044)		-		-
Other income		412		638		845
Total non-interest income	$	18,551	$	5,556	$	4,461

Excluding the fourth quarter's one-time transactions relating to the gain on the sale of TEA and loss on sale of securities, non-interest income would have been $3.4 million.

Insurance service and fee revenue of $1.6 million reflects two months of revenue earned by TEA. Insurance service and fee revenue was also higher in the third quarter of 2023 due to premium seasonality.

Other income decreased $0.2 million from the third quarter of 2023 due to a decrease in value of mortgage servicing rights. The decrease from last year's fourth quarter was primarily due to a $0.2 million gain on sale of an asset that was acquired in foreclosure and sold in the fourth quarter of 2022, and also included $0.2 million of revenue recognized relating to rents received from the acquired asset prior to the sale.

Non-Interest Expense ($ in thousands)
	4Q 2023		3Q 2023		4Q 2022

Salaries and employee benefits	$	10,251	$	8,735	$	9,498
Occupancy		1,078		1,109		1,190
Advertising and public relations		296		348		125
Professional services		1,003		869		871
Technology and communications		1,545		1,517		1,437
Amortization of intangibles		67		100		100
FDIC insurance		350		350		250
Other expenses		1,710		1,379		1,429
Total non-interest expenses	$	16,300	$	14,407	$	14,900

Total non-interest expense increased $1.9 million, or 13%, from the third quarter of 2023, and $1.4 million, or 9%, from last year's fourth quarter.

Salaries and employee benefits increased $1.5 million, or 17%, from the sequential quarter, largely due to higher incentive accruals of $2.2 million, partially offset by reduced staff expenses including former insurance employees. The increase from the prior year's fourth quarter was due to higher incentive accruals of $1.6 million, partially offset by a reduction of staff expenses through consolidation of branches, back-office operations, and sale of TEA.

The increase in other expenses compared with both comparative periods was due to $0.3 million of charitable contributions made during the current quarter.

The Company's GAAP efficiency ratio, or noninterest expenses divided by the sum of net interest income and noninterest income, was 50.2% in the fourth quarter of 2023, 72.7% in the third quarter of 2023, and 62.9% in the fourth quarter of 2022.

Income tax expense was $5.7 million, for an effective tax rate of 36.1%, in the fourth quarter of 2023 compared with 26.2% in the third quarter of 2023 and 23.0% in last year's fourth quarter. The elevated tax rate in the 2023 fourth quarter reflected the sale of TEA which included significant non-deductible goodwill expense.

Balance Sheet Highlights

Total assets were $2.11 billion as of December 31, 2023, a decrease of $66 million, or 3% since September 30, 2023, and $69 million, or 3% since December 31, 2022. The change from comparative periods was due to the sale of investment securities, partially offset by an increase in loan balances. Loan balances increased $17 million, or 1%, during the fourth quarter and reflected higher commercial real estate loans of $13 million and residential mortgages of $3 million. Since December 31, 2022, loan balances increased $49 million, or 3%, due to higher commercial real estate loans of $73 million and residential mortgages of $3 million, partially offset by a decrease in commercial and industrial loans of $27 million.

Investment securities were $278 million at December 31, 2023, $59 million lower than the end of the third quarter of 2023 and $94 million lower than the end of last year's fourth quarter. The decrease reflects the strategic decision to sell $78 million of investment securities as well as changes in unrealized gains and losses on investment securities and maturities within the available-for-sale investment portfolio. The primary objectives of the Company's investment portfolio are to provide liquidity, secure municipal deposits, and maximize income while preserving the safety of principal. The Company has the positive intent and ability to hold the remaining portfolio through recovery of value.

Total deposits of $1.72 billion decreased $87 million, or 5%, from September 30, 2023, and were down $53 million, or 3%, from the end of last year's fourth quarter. The change from the sequential quarter largely reflected typical seasonal outflows from commercial and municipal relationships. From a product perspective, deposit decreases were in demand deposits of $57 million, municipal savings of $29 million, commercial savings of $14 million, consumer savings of $7 million, and consumer time deposits of $1 million. Offsetting those decreases were higher NOW deposits of $21 million.

While the Company has not experienced a significant outflow of deposits, in the event of such occurrences, it has access to alternate sources of funding to meet withdrawal demands. As of December 31, 2023, Evans had $53 million in overnight borrowings at the FHLB. Given the current collateral available at FHLB, advances up to $364 million can be drawn on the FHLB via the Company's overnight line of credit. Additionally, Evans has the ability to borrow from the Federal Reserve and participates in the Bank Term Funding Program. At December 31, 2023, Evans had $86 million in short-term borrowings with the Federal Reserve and $8 million in additional availability to borrow against collateral.

Capital Management

The Company has consistently maintained regulatory capital ratios measurably above the Federal "well capitalized" standard, including a Tier 1 leverage ratio of 10.37% at December 31, 2023 compared with 9.40% at September 30, 2023 and 9.13% at December 31, 2022.

Book value per share was $32.40 at December 31, 2023 compared with $27.52 at September 30, 2023 and $28.32 at December 31, 2022. Reflected in the book value changes are the Federal Reserve's aggressive interest rate hikes that have resulted in significant unrealized losses on investment securities. As of December 31, 2023 this amounted to $7.41 per share impact to book value. Such unrealized gains and losses are due to changes in interest rates and represent the difference, net of applicable income tax effect, between the estimated fair value and amortized cost of investment securities classified as available-for-sale.

Tangible book value per share was $32.07 at December 31, 2023 compared with $25.04 at September 30, 2023 and $25.76 at December 31, 2022.

For the full year of 2023, cash dividends totaled $1.32 per share, up 5% over 2022.

2023 Year in Review (compared with prior-year)

Net interest income was $61.2 million, down 16%. The yield on loans increased 86 basis points while competition on deposits and changes in customer behaviors contributed to the 189 basis points increase in cost of funds during 2023. Net interest margin was 3.02%, a decrease of 51 basis points.

The Company's provision for credit loss was less than $0.1 million, which reflected improving economic conditions, including peer group metrics, partially offset by loan growth and specific reserve related individually analyzed loans. Provision for loan loss in 2022 included a $1.5 million charge-off of a single commercial loan and loan growth, partially offset by a decrease of criticized loans. The ratio of non-performing loans to total loans was 1.59% compared with 1.48% in 2022.

Non-interest income was up $13.7 million to $32.9 million. The increase was due to the gain on sale of the insurance agency of $20.2 million, partially offset by loss on sale of investment securities of $5 million, reduced bank services charges of $0.3 million, and lower insurance service and fee revenue of $0.2 million. Included in non-interest income during 2022 was a gain on sale of an asset that was acquired in foreclosure of $0.2 million, as well as $0.2 million of revenue recognized relating to rents received from the acquired asset and a $0.2 million final payment in connection with a historic tax credit investment.

Non-interest expense decreased $0.6 million, or 1%, to $59.4 million. Current year decreases included salaries and employee benefits of $1.8 million and loan expenses of $0.3 million, partially offset by higher technology and communication expenses of $0.8 million, charitable contributions of $0.3 million, and FDIC insurance expense of $0.4 million.

The Company's GAAP efficiency ratio was 63.1% in 2023 compared with 65.0% in 2022.

Income tax expense for the year was $10.2 million, representing an effective tax rate of 29.4% compared with an effective tax rate of 24.2% in 2022.

Webcast and Conference Call

The Company will host a conference call and webcast on Thursday, February 1, 2024 at 4:45 p.m. ET. Management will review the financial and operating results for the fourth quarter and full year of 2023, as well as the Company's strategy and outlook. A question and answer session will follow.

The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.evansbancorp.com.

A telephonic replay will be available from 8:00 p.m. ET on the day of the teleconference until Thursday, February 15, 2024. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13743382, or access the webcast replay at www.evansbancorp.com, where a transcript will be posted once available.

About Evans Bancorp, Inc.

Evans Bancorp, Inc. is a financial holding company and the parent company of Evans Bank, N.A., a commercial bank with $2.1 billion in assets and $1.7 billion in deposits at December 31, 2023. Evans Bank is a full-service community bank with 18 branches providing comprehensive financial services to consumer, business and municipal customers throughout Western New York. Evans Investment Services provides non-deposit investment products, such as annuities and mutual funds.

Evans Bancorp, Inc. and Evans Bank routinely post news and other important information on their websites, at www.evansbancorp.com and www.evansbank.com.

Safe Harbor Statement: This news release contains 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.

EVANS BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (UNAUDITED) (in thousands, except shares and per share data)
		12/31/2023			9/30/2023			6/30/2023			3/31/2023			12/31/2022
ASSETS
Interest-bearing deposits at banks	$	3,798		$	7,468		$	10,334		$	3,832		$	6,258
Securities AFS		275,680			334,460			351,595			365,929			364,326
Securities HTM		2,059			2,170			2,241			3,707			6,949
Loans		1,720,946			1,704,400			1,670,753			1,658,576			1,672,369
Allowance for credit losses		(22,114)			(21,846)			(21,368)			(21,523)			(19,438)
Goodwill and intangible assets		1,862			13,629			13,729			13,829			13,929
All other assets		126,432			134,462			127,679			123,920			134,117
Total assets	$	2,108,663		$	2,174,743		$	2,154,963		$	2,148,270		$	2,178,510

LIABILITIES AND STOCKHOLDERS'
EQUITY
Demand deposits	$	390,238		$	447,306		$	442,195		$	483,958		$	493,710
NOW deposits		345,279			324,219			303,159			268,283			273,359
Savings deposits		649,621			698,653			726,687			807,532			801,943
Time deposits		333,623			335,228			314,574			290,141			202,667
Total deposits		1,718,761			1,805,406			1,786,615			1,849,914			1,771,679
Securities sold under agreement to repurchase		9,475			13,447			19,185			9,264			7,147
Subordinated debt		31,177			31,152			31,126			31,101			31,075
Other borrowings		145,123			151,252			140,386			79,637			193,001
Other liabilities		25,908			22,551			18,167			20,103			21,615
Total stockholders' equity	$	178,219		$	150,935		$	159,484		$	158,251		$	153,993

SHARES AND CAPITAL RATIOS
Common shares outstanding		5,499,772			5,483,591			5,477,505			5,462,763			5,437,048
Book value per share	$	32.40		$	27.52		$	29.12		$	28.97		$	28.32
Tangible book value per share	$	32.07		$	25.04		$	26.61		$	26.44		$	25.76
Tier 1 leverage ratio		10.37	%		9.40	%		9.43	%		9.13	%		9.13	%
Tier 1 risk-based capital ratio		13.80	%		12.04	%		12.73	%		12.55	%		12.29	%
Total risk-based capital ratio		15.05	%		13.29	%		13.98	%		13.80	%		13.48	%

ASSET QUALITY DATA
Total non-performing loans	$	27,325		$	27,311		$	27,789		$	24,084		$	24,728
Total net loan charge-offs (recoveries)		11			35			35			(4)			115
Other real estate owned (OREO)	$	-		$	-		$	-		$	-		$	-

Non-performing loans/Total loans		1.59	%		1.60	%		1.66	%		1.45	%		1.48	%
Net loan charge-offs (recoveries)/Average loans		-	%		0.01	%		0.01	%		-	%		0.03	%
Allowance for credit losses/Total loans		1.28	%		1.28	%		1.28	%		1.30	%		1.16	%

EVANS BANCORP, INC AND SUBSIDIARIES SELECTED OPERATIONS DATA (UNAUDITED) (in thousands, except share and per share data)
		2023			2023			2023			2023			2022
		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Interest income	$	25,205		$	24,292		$	23,988		$	23,365		$	22,381
Interest expense		11,259			10,036			8,307			6,040			3,167
Net interest income		13,946			14,256			15,681			17,325			19,214
Provision for credit losses		282			506			(116)			(654)			923
Net interest income after provision for credit losses		13,664			13,750			15,797			17,979			18,291

Deposit service charges		670			665			645			613			684
Insurance service and fee revenue		1,613			3,498			2,720			2,429			2,204
Bank-owned life insurance		230			239			238			224			221
Interchange fee income		510			516			528			493			507
Gain on sale of insurance agency		20,160			-			-			-			-
Loss on sale of investment securities		(5,044)			-			-			-			-
Other income		412			638			570			354			845
Total non-interest income		18,551			5,556			4,701			4,113			4,461

Salaries and employee benefits		10,251			8,735			8,649			9,413			9,498
Occupancy		1,078			1,109			1,145			1,173			1,190
Advertising and public relations		296			348			407			156			125
Professional services		1,003			869			808			883			871
Technology and communications		1,545			1,517			1,542			1,356			1,437
Amortization of intangibles		67			100			100			100			100
FDIC insurance		350			350			350			350			250
Other expenses		1,710			1,379			1,171			1,071			1,429
Total non-interest expenses		16,300			14,407			14,172			14,502			14,900

Income before income taxes		15,915			4,899			6,326			7,590			7,852
Income tax provision		5,741			1,281			1,394			1,790			1,809
Net income		10,174			3,618			4,932			5,800			6,043

PER SHARE DATA
Net income per common share-diluted	$	1.85		$	0.66		$	0.90		$	1.06		$	1.10
Cash dividends per common share	$	-		$	0.66		$	-		$	0.66		$	-
Weighted average number of diluted shares		5,497,029			5,490,600			5,474,462			5,475,790			5,500,810

PERFORMANCE RATIOS
Return on average total assets		1.90	%		0.67	%		0.91	%		1.07	%		1.12	%
Return on average stockholders' equity		25.73	%		9.06	%		12.25	%		14.97	%		16.07	%
Return on average tangible common stockholders' equity*		27.37	%		9.90	%		13.39	%		16.44	%		17.72	%
Efficiency ratio		50.16	%		72.72	%		69.53	%		67.65	%		62.94	%
Efficiency ratio (Non-GAAP)**		93.40	%		72.21	%		69.04	%		67.18	%		62.51	%

* The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.
** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, gains from sale of subsidiaries, merger-related expenses and the impact of historic tax credit transactions.

EVANS BANCORP, INC AND SUBSIDIARIES SELECTED AVERAGE BALANCES AND YIELDS/RATES (UNAUDITED) (in thousands)
		2023			2023			2023			2023			2022
		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
AVERAGE BALANCES

Loans, net	$	1,682,177		$	1,658,132		$	1,646,502		$	1,641,162		$	1,627,028
Investment securities		327,303			355,870			373,922			382,329			382,125
Interest-bearing deposits at banks		5,916			9,883			7,235			9,824			10,416
Total interest-earning assets		2,015,396			2,023,885			2,027,659			2,033,315			2,019,569
Non interest-earning assets		128,915			135,896			129,793			133,936			135,035
Total Assets	$	2,144,311		$	2,159,781		$	2,157,452		$	2,167,251		$	2,154,604

NOW		333,893			311,624			281,910			260,242			265,313
Savings		687,223			708,724			776,020			796,793			874,816
Time deposits		335,646			325,667			304,575			257,733			174,362
Total interest-bearing deposits		1,356,762			1,346,015			1,362,505			1,314,768			1,314,491
Borrowings		197,363			192,277			163,338			173,053			151,259
Total interest-bearing liabilities		1,554,125			1,538,292			1,525,843			1,487,821			1,465,750

Demand deposits		409,115			441,149			451,990			503,945			518,666
Other non-interest bearing liabilities		22,880			20,529			18,532			20,487			19,798
Stockholders' equity		158,191			159,811			161,087			154,998			150,390

Total Liabilities and Equity	$	2,144,311		$	2,159,781		$	2,157,452		$	2,167,251		$	2,154,604

Average tangible common stockholders' equity*		148,673			146,122			147,299			141,111			136,406

YIELD/RATE

Loans, net		5.43	%		5.25	%		5.26	%		5.16	%		4.88	%
Investment securities		2.53	%		2.48	%		2.47	%		2.53	%		2.36	%
Interest-bearing deposits at banks		6.38	%		5.29	%		4.45	%		3.97	%		3.16	%
Total interest-earning assets		4.96	%		4.76	%		4.75	%		4.66	%		4.40	%

NOW		2.12	%		1.79	%		1.24	%		0.75	%		0.36	%
Savings		2.09	%		1.85	%		1.58	%		0.95	%		0.33	%
Time deposits		3.83	%		3.45	%		3.10	%		2.63	%		1.61	%
Total interest-bearing deposits		2.53	%		2.22	%		1.85	%		1.24	%		0.51	%
Borrowings		5.27	%		5.14	%		4.98	%		4.74	%		3.88	%
Total interest-bearing liabilities		2.87	%		2.59	%		2.18	%		1.65	%		0.86	%

Interest rate spread		2.09	%		2.17	%		2.57	%		3.01	%		3.54	%
Contribution of interest-free funds		0.66	%		0.62	%		0.53	%		0.45	%		0.23	%
Net interest margin		2.75	%		2.79	%		3.10	%		3.46	%		3.77	%
* Average tangible common stockholders' equity excludes goodwill and intangible assets from average stockholders equity.



EVANS BANCORP, INC AND SUBSIDIARIES SELECTED OPERATIONS DATA (UNAUDITED) (in thousands, except share and per share data)
	2023			2022
	Year to Date			Year to Date			% Change
Interest income	$	96,850		$	79,482		22	%
Interest expense		35,642			6,527		446	%
Net interest income		61,208			72,955		(16)	%
Provision for credit losses		18			2,739		(99)	%
Net interest income after provision for credit losses		61,190			70,216		(13)	%

Deposit service charges		2,593			2,861		(9)	%
Insurance service and fee revenue		10,261			10,453		(2)	%
Bank-owned life insurance		932			707		32	%
Interchange fee income		2,047			2,071		(1)	%
Gain on sale of insurance agency		20,160			-		-
Loss on sale of investment securities		(5,044)			-		-
Other income		1,973			3,179		(38)	%
Total non-interest income		32,922			19,271		71	%

Salaries and employee benefits		37,047			38,854		(5)	%
Occupancy		4,506			4,619		(2)	%
Advertising and public relations		1,207			1,159		4	%
Professional services		3,563			3,425		4	%
Technology and communications		5,959			5,187		15	%
FDIC insurance		1,400			1,025		37	%
Amortization of intangibles		367			400		(8)	%
Other expenses		5,333			5,266		1	%
Total non-interest expenses		59,382			59,935		(1)	%

Income before income taxes		34,730			29,552		18	%
Income tax provision		10,206			7,163		42	%
Net income		24,524			22,389		10	%

PER SHARE DATA
Net income per common share-diluted	$	4.48		$	4.04		11	%
Cash dividends per common share	$	1.32		$	1.26		5	%
Weighted average number of diluted shares		5,471,033			5,536,375

PERFORMANCE RATIOS
Return on average total assets		1.14	%		1.02	%
Return on average stockholders' equity		15.47	%		13.49	%
Return on average tangible common stockholders' equity*		16.82	%		14.74	%
Efficiency ratio		63.09	%		64.99	%
Efficiency ratio (Non-GAAP)**		74.69	%		64.55	%
Net interest margin		3.02	%		3.53	%
Net loan charge-offs (recoveries)/Average loans		-	%		0.11	%

* The calculation of the average tangible common stockholders' equity ratio excludes goodwill and intangible assets from average stockholders equity.
** The calculation of the non-GAAP efficiency ratio excludes amortization of intangibles, gains and losses from investment securities, gains from sale of subsidiaries, merger-related expenses and the impact of historic tax credit transactions.

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Evans Bancorp Reports Net Income of $24.5 Million in 2023