Factors driving this decision included the lack of exposure to the troubled assets for which the program was originally designed, including mortgage-backed securities tied to subprime mortgage loans.

"We are not in need of these funds given our strong balance sheet, well-capitalized position and ability to continue to create additional capital through earnings from ongoing business operations," said David J. Nasca, president and chief executive officer of Evans Bank. Evans Bancorp, Inc. and Evans Bank total risk- based capital ratios are above regulatory "well-capitalized" standards at 12.44% and 12.16%, respectively.

"Other considerations with this decision include the potential impact on our shareholders as the result of dividend constraints placed by the Government and uncertainty revolving around the terms of the agreements," continued Mr. Nasca. "Evans Bank is actively lending in our community, and we are more than able to meet customer demands and execute our strategic plan without these funds."

Evans Bancorp, Inc. is a financial holding company and the parent company of Evans Bank N.A., a commercial bank with $502 million in assets and $404 million in deposits at September 30, 2008. The Bank has 12 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, Inc., 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.

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