Deposits are being assumed by Evans Bank with no losses to any depositor. Waterford Village Bank's full service branch will open Monday, July 27 at its usual time as a branch of Evans Bank. Waterford customers will continue to have access to their funds through their debit cards, checks and online banking and should continue to bank as usual at 8411 Main Street in Clarence, NY.

"We welcome Waterford Village Bank customers to Evans Bank and assure them that their deposits are safe, sound and readily accessible," said David J. Nasca, President and Chief Executive Officer of Evans Bancorp. "Evans has served the community since 1920 and has earned a reputation for superior customer service in Western New York. It is our intent to continue to provide the community banking experience that Waterford customers have come to expect."

Evans Bank was selected to complete this transaction through a competitive bidding process. Mr. Nasca noted, "This acquisition complements the Company's existing network of branches, fits well with our strategic growth plans and helps to deepen our reach into the northtowns area of Western New York. We believe this acquisition allows us to efficiently leverage our strong capital base to continue to grow the Company while providing Waterford customers with expanded services from a well capitalized financial institution."

Evans Bank will assume approximately $56 million in deposits and $43 million in loans. Under the terms of the agreement, the FDIC will make an initial payment of $800,000 to Evans Bank and will compensate Evans Bank for any capital shortfall of Waterford Village Bank as determined at the final closing. As a function of the assumption of Waterford, Evans Bank is afforded the ability to alter CD interest rates and terms. It is Evans Bank's intention, however, to honor existing rates and terms. Additionally, Waterford customers have the right to withdraw their funds without penalty prior to maturity.

At Evans Bank, Waterford customers will enjoy a personalized "community" approach with a full range of financial services including banking, insurance and investments. Once acquired accounts are fully integrated into Evans Bank's systems, Waterford customers will have access to an additional 12 branches and over 50 ATMs across Western New York.