AMEX:EVBN

Stock Analysis Report

Executive Summary

Evans Bancorp, Inc. operates as the financial holding company for Evans Bank, N.A.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Evans Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EVBN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

EVBN

0.3%

US Banks

0.9%

US Market


1 Year Return

8.3%

EVBN

12.0%

US Banks

20.0%

US Market

Return vs Industry: EVBN underperformed the US Banks industry which returned 12.1% over the past year.

Return vs Market: EVBN underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

EVBNIndustryMarket
7 Day-0.9%0.3%0.9%
30 Day-2.7%-1.3%1.4%
90 Day-5.8%1.2%8.8%
1 Year11.5%8.3%15.3%12.0%22.5%20.0%
3 Year3.7%-3.3%25.1%16.2%49.9%40.3%
5 Year80.1%58.3%76.7%56.6%73.2%54.1%

Price Volatility Vs. Market

How volatile is Evans Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evans Bancorp undervalued compared to its fair value and its price relative to the market?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVBN ($38.43) is trading below our estimate of fair value ($61.18)

Significantly Below Fair Value: EVBN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EVBN is good value based on its PE Ratio (10.7x) compared to the Banks industry average (12.6x).

PE vs Market: EVBN is good value based on its PE Ratio (10.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: EVBN is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: EVBN is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Evans Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVBN's forecast earnings growth (14.3% per year) is above the savings rate (1.7%).

Earnings vs Market: EVBN's earnings (14.3% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: EVBN's earnings are forecast to grow, but not significantly.

Revenue vs Market: EVBN's revenue (13.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: EVBN's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVBN's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Evans Bancorp performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVBN has high quality earnings.

Growing Profit Margin: EVBN's current net profit margins (26.5%) are lower than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: EVBN's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: EVBN's earnings growth over the past year (9.3%) is below its 5-year average (19.6% per year).

Earnings vs Industry: EVBN earnings growth over the past year (9.3%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: EVBN's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evans Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EVBN has a low level of unsold assets or inventory.

Debt Coverage by Assets: EVBN's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: EVBN's level of assets compared to its equity is low.

Allowance for Bad Loans: EVBN has a sufficient allowance for bad loans.

Low Risk Liabilities: EVBN's liabilities are made up of primarily low risk sources of funding.

Loan Level: EVBN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EVBN's loans are broadly funded by customer deposits.

Level of Bad Loans: EVBN has an appropriate level of bad loans (1.17%)


Next Steps

Dividend

What is Evans Bancorp's current dividend yield, its reliability and sustainability?

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: EVBN's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: EVBN's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: EVBN's dividends per share have been stable in the past 10 years.

Growing Dividend: EVBN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), EVBN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVBN's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average board tenure


CEO

David Nasca (61yo)

12.8yrs

Tenure

US$1,098,652

Compensation

Mr. David John Nasca has been the Chief Executive Officer of Evans BanCorp, Inc. and Evans Bank NA (Evans Bank, National Association) since April 1, 2007 and its Chief Financial Officer since November 5, 2 ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.10M) is about average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
David Nasca
CEO, President & Director12.8yrsUS$1.10m1.48% $2.8m
Nora Sullivan
Independent Director6.4yrsUS$32.19k0.074% $139.8k
Robert Miller
Director19.1yrsUS$1.53m1.47% $2.8m
Thomas Waring
Independent Director22.1yrsUS$33.19k0.30% $556.2k
James Biddle
Independent Director19.1yrsUS$44.12k0.45% $845.2k
Lee Wortham
Chairman of the Board1.8yrsUS$66.18k0.29% $543.7k
Michael Rogers
Independent Director8.6yrsUS$44.00k0.11% $215.4k
Michael Battle
Independent Director3.6yrsUS$33.80k0.042% $79.2k
Oliver Sommer
Vice Chairman of the Board1.8yrsUS$44.88k0.067% $126.1k
David Pfalzgraf
Independent Director5.8yrsUS$32.93k0.064% $121.1k

7.5yrs

Average Tenure

61yo

Average Age

Experienced Board: EVBN's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Evans Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evans Bancorp, Inc.
  • Ticker: EVBN
  • Exchange: AMEX
  • Founded: 1920
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$187.766m
  • Shares outstanding: 4.89m
  • Website: https://evansbank.com

Number of Employees


Location

  • Evans Bancorp, Inc.
  • One Grimsby Drive
  • Hamburg
  • New York
  • 14075
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVBNAMEX (NYSE MKT LLC)YesCommon SharesUSUSDOct 1997

Biography

Evans Bancorp, Inc. 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. 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; 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 consisting of 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 15 full-service banking offices in Erie County, Niagara County, and Chautauqua County, New York. Evans Bancorp, Inc. was founded in 1920 and is headquartered in Hamburg, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:38
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.