The share price of Evans Bancorp, Inc. (NYSE: EVBN) increased significantly after a merger deal was announced. EVBN shares increased 6.82% during Monday’s extended trading session, closing at $38.99 after hours. The stock finished at $36.50 during the normal trading session, a 2.50% increase, which was built upon by this gain.
Evans Bancorp in a sSmart Combination with NBT Bancorp Inc.
An important step has been reached with the announcement that NBT Bancorp Inc. and Evans Bancorp have completed their merger agreement. Through this agreement, NBT will effectively expand its presence in Western New York by combining with NBT Bancorp.
Two respectable banking organizations will come together through this transaction, and NBT will proactively grow its business into the Greater Buffalo and Rochester regions.
Expansion and Market Impact
Of the banks with less than $100 billion in assets, the combined entity will hold the biggest market share for deposits in Upstate New York. The recently established organization will run a network spanning more than 170 sites from Portland, ME to Buffalo, NY.
Currently, NBT Bank, N.A., the main NBT affiliate, runs 154 branches in seven northeastern states, with a large concentration in Upstate New York. With its headquarters located in Williamsville, New York, Evans Bancorp has eighteen locations in the Buffalo and Rochester regions as of June 30, 2024, and its assets total $2.26 billion.
Specifics of the EVBN Merger and Its Prospects
NBT Bancorp will buy all of Evans Bancorp’s existing shares and convert them into NBT common shares. With the exchange ratio established at 0.91 NBT shares per EVBN share, based on NBT’s closing stock price of $46.28 on September 6, 2024, the transaction is valued at about $236 million.
Assuming clearance from shareholders and regulators, the acquisition is expected to close in 2025’s second quarter. This combination should result in better financial products and services for Evans Bancorp’s clients and the communities it serves, as NBT is committed to maintaining the relationship-focused strategy and expanding its service offerings.
