Evans Bancorp to sell The Evans Agency insurance ops to Arthur J. Gallagher

Evans Bancorp (EVBN) announced that it has entered into a definitive agreement to sell The Evans Agency, LLC to Arthur J. Gallagher & Co. (AJG) for $40M. The transaction is subject to customary closing conditions and is anticipated to be completed in the fourth quarter of 2023. David J. Nasca, President and CEO of Evans Bancorp, Inc., said, “For 23 years, the insurance business has been an integral part of Evans Bank. During that time, the Bank acquired over 15 agencies and successfully built a customer-centric, high-performing operation with strong values and a reputation for outstanding talent and service excellence. After extensive diligence, we believe AJG is the right partner, providing optimal benefit for all stakeholders, including assuring our associates and clients are well taken care of. This transaction realizes a significant valuation premium and is immediately accretive to Evans’ capital, tangible book value, and liquidity. The additional capital provides flexibility to evaluate and pursue various strategic initiatives to redeploy capital in support of our core banking business with a focus on continuing to enhance long-term shareholder value.”