Why did EVBN's Q3 earnings exceed forecasts significantly?

Evans Bancorp's (EVBN) Q3 earnings exceeded forecasts significantly due to several key factors: 1. **Strong Loan Growth**: Total loans grew by $63 million, or 4%, since December 31, 2023. This increase reflects the bank's successful lending activities, particularly in the commercial and industrial sectors. 2. **Deposit Growth**: Total deposits increased by $148 million, or 9%, from December 31, 2023. The growth in deposits provides the necessary funding for the bank to expand its loan portfolio and support its overall business growth. 3. **Net Interest Margin Improvement**: The net interest margin improved to 2.96%, up 16 basis points from the previous quarter. This indicates effective deposit pricing management and a successful balance sheet management despite intense deposit competition. 4. **Non-Interest Income Contribution**: Non-interest income contributed positively to the earnings, although the specific details are not provided. This suggests that the bank's non-interest income streams, such as fees from lending activities or other services, are performing well. In summary, Evans Bancorp's Q3 earnings exceeded forecasts due to strong loan and deposit growth, improved net interest margins, and positive contributions from non-interest income. These factors collectively contributed to the bank's robust financial performance.