David J. Nasca, president and CEO of Evans Bank talks about the importance of engaging with the community in 2022.
The long independent history of Evans Bank is drawing closer to an end, after NBT Bancorp received approval Friday from federal bank regulators and Evans shareholders to complete its $236 million purchase of the Williamsville-based bank.
Norwich-based NBT said the U.S. Office of the Comptroller of the Currency and the Federal Reserve Bank of New York cleared the way for it to acquire Evans Bancorp and its bank subsidiary in an all-stock deal that was announced Sept. 9. The deal also was approved by Evans investors, with over 75% of outstanding shares represented at a special meeting, and 96% of those shares cast in favor of the deal.
"These approvals are important milestones in the merger process, and we are grateful that Evans shareholders have so positively endorsed this strategic partnership," said David J. Nasca, Evans president and CEO.
There is no branch overlap between the two companies, but the deal is expected to lead to dozens of layoffs at Evans' headquarters, as NBT still seeks to cut 25% of Evans' operating expenses, with about half of that likely to come from eliminating staff positions that are no longer needed. Nasca will join NBT's board.
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For Evans customers, no changes are imminent. The transaction is expected to close in the second quarter of 2025, with a target of Friday, May 2, immediately followed by the computer system conversion and integration of the companies over that weekend before reopening as one company on May 5.
That's still a long way off, giving company officials plenty of time to work through any potential glitches with the operating systems and run mock conversions to ensure customers see no disruption. But it's also a reflection of the quick regulatory approval, which bank executives acknowledge they were not expecting for at least another month or longer.
"We are pleased that we have received the necessary regulatory approvals to proceed with the Merger and that Evans shareholders have demonstrated strong support for the partnership that will bring NBT and Evans together," said NBT President and CEO Scott A. Kingsley.
He added, "Team members from NBT and Evans have been working closely to plan for a smooth transition in the second quarter of 2025, and we look forward to continuing to build on the relationships Evans has established with their customers, communities and shareholders as we extend NBT's footprint in Upstate New York into the attractive Buffalo and Rochester markets."
The sale of Evans followed a yearlong strategic review of the company's future prospects and options that concluded that, while it had grown steadily and significantly from its roots as a small Southtowns bank, it was still not large enough to compete with the likes of rivals like M&T Bank Corp. and KeyCorp, and could not easily afford the regulatory costs and technology investments it would need to make.
Its profit margin on core lending also had narrowed because of the higher interest rates, and its first-quarter profits tumbled. So it began talking about, and then to, a few banks that had previously expressed interest, including NBT.
The $13.8 billion-asset parent of NBT Bank, which has 155 branches in seven states from New York and Pennsylvania through New England, eventually beat out three other banks to sign a deal with Evans, a $2.3 billion-asset bank with 18 branches in the Buffalo and Rochester markets.
The combined company will have $16 billion in assets, $13 billion in deposits, and $12 billion in loans, with 172 branches from Buffalo to Portland, Maine. It will be the largest community bank in upstate New York, with the highest deposit market share for any bank under $100 billion in assets, and will have a presence in all five of the largest upstate markets.
"Joining the NBT family will benefit our customers and communities as they will continue to be served by a combined organization that upholds our shared culture and values, maintains our relationship-focused approach, and offers an elevated suite of financial products and services," Nasca said.
Reach Jonathan D. Epstein at (716) 849-4478 or [email protected].
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