Page 1

Evans Bancorp , Inc. 6460 Main Street , Williamsville , NY 14221 FOR IMMEDIATE RELEASE News Release Evans Bancorp Reports Record Net Income of $ 7.0 Million in Third Quarter 2021 WILLIAMSVILLE , NY , October 28 , 2021 - Evans Bancorp , Inc. ( the “ Company ” or “ Evans " ) ( NYSE American : EVBN ) , a community financial services company serving Western New York since 1920 , today reported results of operations for the third quarter ended September 30 , 2021 . THIRD QUARTER 2021 HIGHLIGHTS ( compared with prior - year period unless otherwise noted ) " " Net interest income increased 16 % to $ 18.2 million reflecting accelerated amortization of Paycheck Protection Program ( " PPP ” ) fees , higher commercial loan prepayment fees and lower interest expense Results include $ 1.5 million release of allowance for loan losses due to improved credit quality in the hotel portfolio and lower specific reserves " Total deposits of $ 1.88 billion , increased 5 % Net income increased 54 % to a record $ 7.0 million , or $ 1.27 per diluted share , in the third quarter of 2021 , from $ 4.5 million , or $ 0.84 per diluted share , in last year's third quarter . The increase included higher net interest income of $ 2.5 million and a $ 3.3 million decrease in provision for loan loss . Partially offsetting these increases to net income was $ 1.9 million of higher salary expenses primarily related to incentives and strategic hires . The 11 % increase in net income from the sequential second quarter of $ 6.3 million , or $ 1.15 per diluted share , reflected a $ 0.7 million decrease in provision for loan losses due to a reduction in criticized assets and $ 0.7 million increase in non - interest income primarily due to seasonally higher insurance service and fee revenue . These increases were partially offset by a $ 0.6 million increase in salary incentive expenses . Return on average equity was 15.58 % for the third quarter of 2021 , compared with 14.72 % in the second quarter of 2021 and 11.09 % in the third quarter of 2020 . " The Bank's record results this quarter were supported by strong loan production throughout the year , PPP fees and credit quality improvements , reflecting underwriting strength and proactive measures with our hotel portfolio resulting in upgrades to the credit risk ratings of a number of relationships into normal performing categories . While PPP forgiveness and higher than typical payoffs in this historically low - rate environment continue to provide headwinds to our overall loan growth , we are generating strong loan production this year and are encouraged by the return of more commercial and industrial loan opportunities , " said David J. Nasca , President and CEO of Evans Bancorp , Inc. “ Our priority continues to be utilization of excess liquidity . We are strategically adding talent to supplement our loan efforts both within our legacy market and new market area in Rochester , as well as bolstering our fee based businesses . We are in the process of building out customer solutions in an effort to deliver an enhanced experience that is centered on speed , flexibility and efficiency . The actions we are taking are designed to continue to enhance returns over the long - term . "