NORWICH, N.Y. - NBT Bancorp Inc . (NASDAQ: NASDAQ:NBTB) and Evans Bancorp (NYSE:EVBN), Inc. (NYSE American: EVBN) have announced a definitive merger agreement under which Evans will be integrated into NBT. This strategic move is set to extend NBT's reach into Western New York, capitalizing on the strong market presence of both banking companies.
The proposed merger, unanimously approved by the Boards of Directors of both companies, will create an organization with the highest deposit market share in Upstate New York for banks with assets under $100 billion. The combined entity will boast a network of over 170 locations, spanning from Buffalo, NY to Portland, ME.
Under the terms of the agreement, NBT will acquire all outstanding shares of Evans, with Evans shareholders receiving 0.91 NBT shares for each share of Evans they own. This transaction is valued at approximately $236 million based on NBT's closing stock price as of September 6, 2024.
NBT President and CEO Scott A. Kingsley expressed confidence in the merger, highlighting the shared community banking values and the potential to build upon the existing customer relationships and communities served by both institutions. Evans President and CEO David J. Nasca echoed this sentiment, foreseeing benefits for customers and communities through access to enhanced financial products and services.
The merger is expected to be finalized in the second quarter of 2025, subject to customary closing conditions, including approvals from Evans shareholders and regulatory bodies. Post-merger, Nasca will join the NBT Board of Directors.
NBT Bancorp Inc., with $13.50 billion in assets as of June 30, 2024, operates through NBT Bank, N.A., and two financial services companies. Evans Bancorp, Inc., headquartered in Williamsville, NY, had assets of $2.26 billion and operates 18 branches in the Buffalo and Rochester markets.
The news of the merger comes with assurances from both companies of a shared commitment to community values and customer service, aiming to deliver a seamless transition and integration of services.
This article is based on a press release statement from NBT Bancorp Inc.
In other recent news, Evans Bancorp has reported a significant rise in earnings and revenue, with a 26% sequential growth in net income for the second quarter, amounting to $2.9 million or $0.53 per diluted share. This robust growth was primarily driven by an increase in the bank's lending portfolio, particularly in the commercial and industrial sectors. Despite a flat quarter-over-quarter deposit total, the year-to-date figure has seen a rise of 10%.
In addition to these financial highlights, Evans Bancorp has also announced a quarterly cash dividend of $0.66 per share, reflecting the company's commitment to returning value to its shareholders. In other developments, the bank's participation in the Regional Revitalization Partnership underscores its commitment to community banking and sustainable growth.
Analysts have noted a potential slight decline in net interest margin in the upcoming quarter, but the company remains focused on customer acquisition and efficient operations. These recent developments indicate that Evans Bancorp is on a growth trajectory, with a strong foundation in its core banking operations and a strategic focus on community involvement.
InvestingPro Insights
As NBT Bancorp Inc. (NBTB) and Evans Bancorp, Inc. (EVBN) prepare to merge, it's important to consider the financial health and market performance of Evans, which will soon be integrated into NBT. According to recent data from InvestingPro, Evans Bancorp has demonstrated a strong return over the last three months, with a price total return of 37.23%. Additionally, the company has maintained a consistent dividend payment history, rewarding its shareholders for 24 consecutive years, and currently offers a dividend yield of 3.71%.
InvestingPro Tips for Evans Bancorp suggest a mixed financial forecast. While analysts predict the company will be profitable this year and it has been profitable over the last twelve months, there is an anticipation of a sales decline in the current year. Furthermore, concerns are raised about weak gross profit margins and the expectation that net income will drop this year. These factors, combined with a valuation implying a poor free cash flow yield, may be important considerations for investors as the merger progresses.
Key InvestingPro Data metrics for Evans Bancorp as of Q2 2024 include:
- Revenue: $83.85 million, indicating a quarterly revenue decline of 19.88%.
- Operating Income Margin: A strong 34.78%, reflecting the company's efficiency in managing its operations.
- Basic EPS (Continuing Operations): $3.48, which provides insight into the company's profitability on a per-share basis.
For investors interested in a deeper dive into Evans Bancorp's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/EVBN. These insights could provide valuable context for the merger's potential impact on NBT's financial position and market strategy.
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