Evans Bancorp Faces Shareholder Allegations in Light of Merger with NBT Bancorp-

Evans Bancorp, Inc. (NYSEAMERICAN:EVBN) recently found itself entangled in legal challenges following its merger agreement with NBT Bancorp Inc. on September 9, 2024. The company, alongside its subsidiary, Evans Bank, National Association, has been dealing with allegations and complaints raised by shareholders regarding the proposed merger.

After the merger announcement, Evans received a total of eight demand letters from shareholders’ representatives between October 30, 2024, and December 9, 2024. Additionally, two formal complaints, namely James Jones v. Evans Bancorp, Inc. et al. and Ryan Smith v. Evans Bancorp, Inc. et al., were filed in the Supreme Court of New York, County of New York, on December 3, 2024, and December 5, 2024, respectively.

The Demand Letters and Complaints specifically alleged that Evans and/or its directors provided a proxy statement to the Securities and Exchange Commission (SEC) that was deemed materially incomplete and misleading concerning the Merger, potentially violating certain sections of the Securities Exchange Act of 1934.

Although Evans and NBT Bancorp maintain that these allegations hold no merit and that their disclosures are compliant with all applicable laws, they decided to update the proxy statement/prospectus to safeguard against any disruptions or complications to the merger. By supplementing the proxy statement/prospectus, both entities aim to mitigate any risks associated with the legal challenges.

In a bid to resolve these issues swiftly and avoid prolonged litigation that could impact the merger process, Evans, NBT, and their respective directors have opted to provide supplementary disclosures without admitting any wrongdoing. Furthermore, they firmly deny any violations of laws, misrepresentations, or breaches of fiduciary duties.

This move by Evans Bancorp comes in light of the increasing challenges and scrutiny surrounding the merger process with NBT Bancorp Inc. It underscores the company’s commitment to ensuring transparency and compliance while navigating the complexities of merger agreements in the financial sector.

Investors and stakeholders are advised to closely monitor further developments in this matter as they can significantly impact the future trajectory of Evans Bancorp and its proposed merger with NBT Bancorp Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Evans Bancorp’s 8K filing here.

About Evans Bancorp

Evans Bancorp, Inc primarily operates as financial holding company for Evans Bank, N.A. that provides a range of banking products and services to consumer and commercial customers in the United States. The company offers deposit products, which include checking and negotiable order of withdrawal accounts, savings accounts, and certificates of deposit.