Evans Bancorp Inc . (NYSE:EVBN), a commercial bank headquartered in New York, declared a quarterly cash dividend on Today. The company's Board of Directors announced a dividend of $0.66 per share on its outstanding common stock, which is payable on October 10, 2024, to shareholders of record as of September 12, 2024.
The declaration reflects the company's continued commitment to returning value to its shareholders. With approximately 5.5 million shares outstanding, the dividend distribution will represent a significant return to the investors of Evans Bancorp.
The financial institution, which operates under the standard industrial classification of national commercial banks, has its principal executive offices located in Williamsville, New York.
This announcement is based on a recent filing with the Securities and Exchange Commission.
In other recent news, Evans Bancorp showcased a robust growth in its second-quarter performance in 2024. The company reported a significant 26% sequential rise in net income, with earnings of $2.9 million or $0.53 per diluted share. This growth was primarily driven by an increase in its lending portfolio, particularly in the commercial and industrial sectors. Despite a flat quarter-over-quarter deposit total, the year-to-date figure climbed by 10%.
Evans Bancorp's commitment to community banking was also highlighted through its participation in the Regional Revitalization Partnership. The bank remains focused on sustainable growth through customer acquisition and efficient operations. However, it does anticipate a slight decline in net interest margin in the upcoming quarter.
InvestingPro Insights
Evans Bancorp Inc. (NYSE American: EVBN) has demonstrated a pattern of rewarding its shareholders, which is further evidenced by the recent dividend announcement. InvestingPro data reveals that the company has maintained dividend payments for 24 consecutive years, showcasing its commitment to consistent shareholder returns. While the InvestingPro Tips indicate that analysts anticipate a sales decline in the current year, and net income is expected to drop, the company still enjoys a strong return over the last three months with a 19.75% total return. This mixed financial outlook is critical for investors to consider as they evaluate the company's performance and future prospects.
Moreover, the dividend yield stands at a notable 3.89%, which is attractive to income-focused investors. However, it is essential to note that the company suffers from weak gross profit margins, and the valuation implies a poor free cash flow yield. These factors may influence the long-term sustainability of dividend payments. For a deeper analysis, investors can explore additional InvestingPro Tips, which provide a comprehensive look at the company's financial health and market performance. Currently, there are a total of 9 additional InvestingPro Tips available for Evans Bancorp Inc.
From an operational standpoint, the company's adjusted operating income for the last twelve months as of Q2 2024 is $29.16M with an operating income margin of 34.78%, reflecting a robust control over its expenses relative to its revenue. As investors prepare for the next earnings date on October 24, 2024, these metrics and insights from InvestingPro can help them make informed decisions about their investment in Evans Bancorp.
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