Evans Bancorp Reports Fourth Quarter and Full Year 2008 Earnings

Business Wire, Feb 5, 2009

The Company acquired Suchak Data Systems, Inc. ("SDS"), which serves the data processing needs of financial institutions with customized solutions, consultative services and state of the art technology, on December 31, 2008. The acquisition did not have a material impact on the financial results.

Capital Management

The Company consistently maintains regulatory capital ratios above the federal "well capitalized" standard of 6.00% with a Tier 1 leverage ratio of 9.02%. Average equity as a percentage of average assets was 9.06% in the three months ended December 31, 2008, compared with 9.39% in the three months ended September 30, 2008, and 9.46% in the three months ended December 31, 2007. Book value per outstanding common share was $16.57 at December 31, 2008, compared with $16.53 at September 30, 2008, and $15.74 at December 31, 2007.

Because of its strong capital position, the Company increased its dividend 10.8% to $0.41 per common share for shareholders of record on September 10, 2008, which was paid on October 2, 2008. The dividend payout ratio for 2008 was 43.74%.

Conclusion

Mr. Nasca concluded, "We made great progress in 2008 to build awareness in the Western New York market of our quality service and extensive product offerings. Importantly, despite the turbulence in the financial markets, we successfully managed our balance sheet to take advantage of the rapidly changing interest rate environment. We also continued to lay the foundation for future success with the opening of our 12th retail branch office in the Elmwood Village in Buffalo, the acquisition of Fitzgerald Insurance Agency, and the acquisition of SDS. While wary of the headwinds of an economy in recession, we believe we are well-positioned to realize solid performance in 2009 and continue to be excited about our future."

About Evans Bancorp, Inc.

Evans Bancorp, Inc. is a financial holding company and the parent company of Evans Bank, N.A., a commercial bank with $529 million in assets and $404 million in deposits at December 31, 2008. The bank has twelve branches located in Western New York. Evans National Leasing, Inc., an indirect wholly-owned subsidiary of Evans Bank is a general business equipment leasing company with customers throughout the U.S. Evans Bancorp's wholly-owned insurance subsidiary, The Evans Agency, provides retail property and casualty insurance through 15 insurance offices in the Western New York region. Evans Investment Services, a wholly-owned subsidiary of Evans Bank, provides non-deposit investment products such as annuities and mutual funds. Evans Bancorp, Inc. and Evans Bank routinely post news and other important information on their Web sites at www.evansbancorp.com and www.evansbank.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning future business, revenue and earnings. These statements are not historical facts or guarantees of future performance, events or results. There are risks, uncertainties and other factors that could cause the actual results of Evans Bancorp to differ materially from the results expressed or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include competitive pressures among financial services companies, interest rate trends, general economic conditions, changes in legislation or regulatory requirements, effectiveness at achieving stated goals and strategies, and difficulties in achieving operating efficiencies. These risks and uncertainties are more fully described in Evans Bancorp's Annual and Quarterly Reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Evans Bancorp undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new, updated information, future events or otherwise.