Evans in N.Y. looks to raise $14M in public offering

Evans Bancorp in Hamburg, N.Y., expects to raise $14 million through a public offering.

The $1.1 billion-asset company said in a press release Wednesday that it will sell 400,000 shares of stock at $35 each. Another 60,000 shares could be sold if there is enough demand. The offering is set to close on Jan. 23.

Evans said it will use the $12.9 million in net proceeds for general corporate purposes, including funding organic growth.

The company has been on something of a tear in recent months. Evans’ loan book increased by 18% over the first nine months of 2016 from a year earlier, to $913 million. As a result, the company earned nearly $6 million over that period.

The growth has also had an effect on Evans’ capital. Its Tier 1 leverage ratio fell to 9.55% at Sept. 30 from 10.45% at the end of 2015. Evans has yet to report its fourth-quarter results.

Evans, for much of 2015, was forced to devote significant time and resources to defending itself against charges by New York officials that they had redlined minority neighborhoods in Buffalo. In November 2015, Evans entered into a stipulation agreement where, without admitting wrongdoing, it agreed to spend $200,000 on marketing designed to reach residents in minority neighborhoods on Buffalo’s East Side. The company also agreed to provide $575,000 on grants aimed specifically at boosting minority homeownership throughout Buffalo.