Evans Bancorp (NYSEAM:EVBN) - Share price, News & Analysis

Q: What is the Fair Price of EVBN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EVBN ($32.82) is trading below our estimate of [[fair value]] ($81.32)

EVBN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

EVBN Stock Overview

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

Rewards

Trading at 59.6% below our estimate of its fair value

Earnings grew by 50.6% over the past year

Pays a reliable dividend of 3.78%

Risk Analysis

Earnings are forecast to decline by an average of 0.9% per year for the next 3 years

Evans Bancorp Competitors

Heartland BancCorp

OTCPK:HLAN

US$181.7m

Orange County Bancorp

NasdaqCM:OBT

US$198.1m

Morris State Bancshares

OTCPK:MBLU

US$170.8m

Hawthorn Bancshares

NasdaqGS:HWBK

US$166.2m

Price History & Performance

Summary of all time highs, changes and price drops for Evans Bancorp
Historical stock prices
Current Share Price	US$32.82
52 Week High	US$44.48
52 Week Low	US$32.61
Beta	1.01
1 Month Change	-14.31%
3 Month Change	-15.00%
1 Year Change	-13.43%
3 Year Change	-13.01%
5 Year Change	-17.85%
Change since IPO	243.90%

Shareholder Returns

	EVBN	US Banks	US Market
7D	-3.4%	3.7%	6.6%
1Y	-13.4%	-17.7%	-18.4%

Return vs Industry: EVBN exceeded the US Banks industry which returned -17.7% over the past year.

Return vs Market: EVBN exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is EVBN's price volatile compared to industry and market?
EVBN volatility
EVBN Average Weekly Movement	3.9%
Banks Industry Average Movement	3.8%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: EVBN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EVBN's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1920	378	David Nasca	https://evansbank.com

Evans 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.

Evans Bancorp Fundamentals Summary

How do Evans Bancorp's earnings and revenue compare to its market cap?
EVBN fundamental statistics
Market Cap	US$179.94m
Earnings (TTM)	US$23.94m
Revenue (TTM)	US$92.99m

7.5x

P/E Ratio

1.1x

P/B Ratio

Is EVBN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EVBN income statement (TTM)
Revenue	US$92.99m
Cost of Revenue	US$0
Gross Profit	US$92.99m
Other Expenses	US$69.05m
Earnings	US$23.94m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.37
Gross Margin	100.00%
Net Profit Margin	25.75%
Debt/Equity Ratio	38.0%

How did EVBN perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

28%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EVBN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EVBN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EVBN. This is calculated by dividing EVBN's market cap by their current preferred multiple.
What is EVBN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$179.94m

EVBN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	-8x

Price to Earnings Ratio vs Peers

How does EVBN's PE Ratio compare to its peers?

EVBN PE Ratio vs Peers

The above table shows the PE ratio for EVBN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.5x
HLAN Heartland BancCorp	10.1x	4.8%	US$181.7m
OBT Orange County Bancorp	9.2x	14.5%	US$198.1m
MBLU Morris State Bancshares	7.6x	n/a	US$170.8m
HWBK Hawthorn Bancshares	7.1x	n/a	US$166.2m
EVBN Evans Bancorp	7.5x	-0.9%	US$179.9m

Forward PE

Price-To-Earnings vs Peers: EVBN is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does EVBN's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: EVBN is good value based on its Price-To-Earnings Ratio (7.5x) compared to the US Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is EVBN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EVBN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	10.1x

Price-To-Earnings vs Fair Ratio: EVBN is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).

Share Price vs Fair Value

What is the Fair Price of EVBN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EVBN ($32.82) is trading below our estimate of fair value ($81.32)

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

Price to Earnings Growth Ratio

PEG Ratio: EVBN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-0.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVBN's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: EVBN's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: EVBN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EVBN's revenue (3.4% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: EVBN's revenue (3.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if EVBN's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Evans Bancorp performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EVBN has high quality earnings.

Growing Profit Margin: EVBN's current net profit margins (25.7%) are higher than last year (19.8%).

Past Earnings Growth Analysis

Earnings Trend: EVBN's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: EVBN's earnings growth over the past year (50.6%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: EVBN earnings growth over the past year (50.6%) exceeded the Banks industry 20.7%.

Return on Equity

High ROE: EVBN's Return on Equity (14.1%) is considered low.

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Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: EVBN's Assets to Equity ratio (13.2x) is moderate.

Allowance for Bad Loans: EVBN has a low allowance for bad loans (89%).

Low Risk Liabilities: 96% of EVBN's liabilities are made up of primarily low risk sources of funding.

Loan Level: EVBN has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: EVBN's Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: EVBN has an appropriate level of bad loans (1.3%).

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EVBN's dividend (3.78%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: EVBN's dividend (3.78%) is low compared to the top 25% of dividend payers in the US market (4.24%).

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

Earnings Coverage: With its reasonably low payout ratio (27.9%), EVBN's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

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Management

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

6.6yrs

Average management tenure

CEO

David Nasca (63 yo)

15.5yrs

Tenure

US$1,039,433

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 ($USD1.04M) is below average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: EVBN's management team is seasoned and experienced (6.6 years average tenure).

Board Members

Experienced Board: EVBN's board of directors are considered experienced (9.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31