Evans Bancorp (EVBN) AI Stock Analysis

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Evans Bancorp

(NYSE MKT:EVBN)

60Neutral

Evans Bancorp's stock performance is supported by stable financial health and reasonable valuation, though it faces challenges in revenue consistency and cash flow conversion. Technical indicators suggest mixed market sentiment, with potential short-term overbought conditions. The lack of recent earnings call insights limits additional assessment.

Evans Bancorp (EVBN) vs. S&P 500 (SPY)

Market Cap

$214.90M

Dividend Yield3.43%

Average Volume (3M)18.96K

Price to Earnings (P/E)17.9

Beta (1Y)0.93

Revenue Growth-6.85%

EPS Growth-51.70%

CountryUS

Employees266

SectorFinancial

Sector Strength88

IndustryBanks - Regional

Share Statistics

EPS (TTM)2.16

Shares Outstanding5,567,382

10 Day Avg. Volume15,491

30 Day Avg. Volume18,958

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.62

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.03

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$50.05

Price Target Upside30.17% Upside

Rating ConsensusHold

Number of Analyst Covering1

Evans Bancorp Business Overview & Revenue Model

Company DescriptionEvans Bancorp, Inc. primarily operates as the financial holding company for Evans Bank, N.A. that provides a range of banking products and services to consumer and commercial customers in Western New York and the Finger Lakes Region of New York State. It operates in two segments, Banking Activities and Insurance Agency Activities. The company offers deposit products, which include checking and negotiable order of withdrawal accounts, savings accounts, and certificates of deposit. It also provides residential mortgages; commercial and multi-family mortgages and commercial construction loans; home equities, such as home equity lines of credit and second mortgage loans; commercial and industrial loans comprising term loans and lines of credit; consumer loans, including direct automobile, recreational vehicle, boat, home improvement, and personal loans; other loans consisting of cash reserves, overdrafts, and loan clearing accounts; and installment loans. In addition, the company sells various premium-based insurance policies, including business and personal insurance, employee benefits, surety bonds, risk management, life, disability, and long-term care coverage, as well as provides claims adjusting services to various insurance companies; and non-deposit investment products, such as annuities and mutual funds. It operates through a total of 21 full-service banking offices in Erie County, Niagara County, Monroe County, and Chautauqua County, New York. Evans Bancorp, Inc. was founded in 1920 and is headquartered in Williamsville, New York.

How the Company Makes MoneyEvans Bancorp generates revenue primarily through interest income derived from its core banking operations. This includes income from loans provided to individuals and businesses, as well as interest earned on securities and other investments. Another significant revenue stream is non-interest income, which comes from service charges on deposit accounts, fees from loan servicing, and income from its insurance operations through The Evans Agency. Additionally, the company benefits from strategic partnerships and collaborations that enhance its product offerings and customer reach, further contributing to its earnings.

Evans Bancorp Financial Statement Overview

Summary

Evans Bancorp demonstrates stable financial health with low leverage and strong historical profit margins. However, recent inconsistencies in revenue growth and cash flow generation pose challenges. The company's financial structure appears robust, but operational cash flow metrics suggest a need for improved cash conversion efficiency.

Income Statement

Neutral

The company's revenue growth has been inconsistent, with a decline in recent years. The net profit margin was notable in 2023 at 26.1%, indicating strong profitability. However, due to missing data for 2024, the profit margins could not be assessed for that year, which lowers confidence in current performance.

Balance Sheet

Positive

Evans Bancorp maintains a stable equity position with a debt-to-equity ratio of 0.02 in 2024, indicating low leverage and financial stability. However, the fluctuating stockholders' equity and total assets over the years suggest potential volatility in the financial structure.

Cash Flow

Neutral

The company experienced a significant reduction in free cash flow in 2024. The operating cash flow to net income ratio was negative, indicating challenges in converting income into cash flow. Despite fluctuations, the company managed positive free cash flow in most prior years, showing some historical resilience.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
69.21M	94.11M	92.23M	91.61M	76.16M
	Gross Profit
69.21M	94.13M	92.23M	91.61M	76.16M
	EBIT
-66.45M	0.00	37.33M	31.93M	12.81M
	EBITDA
0.00	0.00	31.20M	33.19M	14.01M
	Net Income Common Stockholders
11.95M	24.52M	22.39M	24.04M	11.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.62M	23.47M	387.38M	540.89M	246.30M
	Total Assets
2.19B	2.11B	2.18B	2.21B	2.04B
	Total Debt
4.07M	189.84M	231.22M	67.97M	79.66M
	Net Debt
-10.55M	166.37M	224.97M	-166.96M	-4.24M
	Total Liabilities
2.00B	1.93B	2.02B	67.97M	1.88B
	Stockholders Equity
183.14M	178.22M	153.99M	183.89M	168.91M
Cash Flow		Free Cash Flow
-3.10M	15.18M	25.40M	19.48M	1.97M
	Operating Cash Flow
-2.76M	15.70M	26.41M	20.51M	7.79M
	Investing Cash Flow
-51.11M	89.37M	-236.57M	-22.62M	-213.39M
	Financing Cash Flow
73.11M	-104.65M	-11.56M	149.29M	264.35M

Evans Bancorp Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price38.45

Price Trends

50DMA

38.72

Negative

100DMA

40.82

Negative

200DMA

39.01

Negative

Market Momentum

MACD

0.07

Negative

RSI

55.82

Neutral

STOCH

84.31

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVBN, the sentiment is Neutral. The current price of 38.45 is above the 20-day moving average (MA) of 36.74, below the 50-day MA of 38.72, and below the 200-day MA of 39.01, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 84.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVBN.

Evans Bancorp Risk Analysis

Evans Bancorp disclosed 34 risk factors in its most recent earnings report. Evans Bancorp reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Evans Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWOD	67 Neutral	$222.52M	10.48	10.50%	4.38%	14.11%	29.41%
MBCN	66 Neutral	$209.55M	12.96	7.72%	3.12%	8.36%	-2.51%
CHMG	63 Neutral	$209.71M	9.24	10.65%	2.82%	6.05%	-9.27%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
EVBN	60 Neutral	$214.90M	17.89	6.62%	3.43%	-6.85%	-51.70%
LCNB	58 Neutral	$205.70M	12.69	6.55%	5.86%	24.45%	25.77%
FRST	50 Neutral	$215.58M	―	-2.01%	4.85%	5.60%	53.10%

* Financial Sector Average

Performance Comparison

EVBN

Evans Bancorp

38.60

13.90

56.28%

LCNB

14.52

0.69

4.99%

PWOD

Penns Woods Bancorp

29.23

11.70

66.74%

FRST

Primis Financial

8.72

-1.25

-12.54%

CHMG

Chemung Financial

43.79

1.67

3.96%

MBCN

Middlefield Banc

26.82

4.34

19.31%

Evans Bancorp Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q2-2024)

% Change Since: 0.71%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong growth in the loan portfolio, a significant increase in net income, and successful deposit gathering efforts. However, challenges included a decline in year-over-year net interest income and ongoing competitive pressure on deposit pricing. The overall sentiment is cautiously optimistic with a focus on strategic priorities for sustained growth.

Q2-2024 Updates

Positive Updates

Strong Loan Portfolio Growth

Commercial loan production produced $44 million in originations with a $137 million pipeline in place, anticipating mid-single-digit growth for the full year.

Significant Increase in Net Income

Net income increased by 26% on a sequential basis, driven by higher net interest income and lower noninterest expenses.

Stable Deposit Base and Balance Sheet Optimization

Deposit gathering efforts resulted in gains in both retail and commercial businesses, with a year-to-date increase of $173 million or 10%.

Efficiency Improvements

The introduction of electronic signature pads in branches improved data integrity and efficiency, reducing paper consumption.

Community Engagement

Continued commitment to community banking with involvement in Regional Revitalization Partnership, a $300 million initiative to revitalize economically distressed neighborhoods.

Negative Updates

Decline in Year-Over-Year Net Interest Income

Year-over-year decline in net interest income due to competitive pressure on deposit pricing and the impact of the sale of the Evans Agency.

Net Interest Margin Contraction

Net interest margin decreased by 8 basis points from the linked quarter, though it was better than expected.

Ongoing Competitive Deposit Pricing

Higher interest expense driven by competitive deposit pricing, impacting net interest income.

Company Guidance

During the Evans Bancorp Q2 2024 earnings call, the company provided guidance indicating a cautiously optimistic outlook for the remainder of the year. The bank reported a solid performance with a notable 26% increase in net income on a sequential basis, achieving earnings of $2.9 million or $0.53 per diluted share. The growth was driven by higher net interest income, which increased to $14.3 million, and lower noninterest expenses. The bank's net interest margin was reported at 2.71%, slightly down from the previous quarter but exceeding internal expectations due to strategic balance sheet optimization. The commercial loan production was robust, with $44 million in originations and a $137 million pipeline, setting the stage for anticipated mid-single-digit growth for the full year. The bank also highlighted its successful deposit gathering efforts, which saw a year-to-date increase of $173 million or 10%. Looking forward, Evans Bancorp expects modest increases in funding costs in the third quarter, with the net interest margin anticipated to decrease slightly to approximately 2.68%. The bank also remains focused on maintaining operational efficiencies and managing expenses to ensure sustainable returns.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.