What changed in this filing

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Item 1. Financial Statements

2022-08-03 compared with 2022-05-06 · 304 added, 241 removed, 782 unchanged (41% of the section changed)

1 unchanged sentence

Condensed Consolidated Financial Statements (Unaudited) Page

Condensed Consolidated Statements of Financial Condition as of March 31, 202 2 and December 31, 20 21

Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 202 2 and 202 1

Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 202 2 and 2021

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 202 2 and 202 1

Condensed Consolidated Statements of Financial Condition as of June 30, 2022 and December 31, 2021

Condensed Consolidated Statements of Operations for the three and six months ended June 3 0 , 2022 and 2021

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 2022 and 2021

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 3 0 , 2022 and 2021

Condensed Consolidated Statements of Cash Flows for the six months ended June 3 0 , 2022 and 2021

Notes to Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

(dollars in thousands, except share data)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Current Assets

Cash and Cash Equivalents $ 444,306 $ 578,317

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 286,567 and $ 706,826 at March 31, 2022 and December 31, 2021, respectively)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 462,544 and $ 706,826 at June 30, 2022 and December 31, 2021, respectively)

1,135,700 1,784,639

Accounts Receivable (net of allowances of $ 2,054 and $ 2,704 at March 31, 2022 and December 31, 2021, respectively)

Accounts Receivable (net of allowances of $ 1,447 and $ 2,704 at June 30, 2022 and December 31, 2021, respectively)

317,990 351,668

5 unchanged sentences

Operating Lease Right-of-Use Assets 245,154 263,329

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 172,091 and $ 165,857 at March 31, 2022 and December 31, 2021, respectively)

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 176,376 and $ 165,857 at June 30, 2022 and December 31, 2021, respectively)

147,449 148,589

Goodwill 123,429 128,246

Intangible Assets (net of accumulated amortization of $ 3,384 and $ 3,294 at March 31, 2022 and December 31, 2021, respectively)

Intangible Assets (net of accumulated amortization of $ 3,476 and $ 3,294 at June 30, 2022 and December 31, 2021, respectively)

Other Assets 108,088 140,539

7 unchanged sentences

Taxes Payable 4,449 20,980

Current Portion of Notes Payable 66,863 —

Other Current Liabilities 21,361 28,610

8 unchanged sentences

Stockholders' Equity

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 79,460,450 and 74,804,288 issued at March 31, 2022 and December 31, 2021, respectively, and 40,568,476 and 37,903,430 outstanding at March 31, 2022 and December 31, 2021, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 50 and 53 issued and outstanding at March 31, 2022 and December 31, 2021, respectively)

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 79,597,763 and 74,804,288 issued at June 30, 2022 and December 31, 2021, respectively, and 39,137,078 and 37,903,430 outstanding at June 30, 2022 and December 31, 2021, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 50 and 53 issued and outstanding at June 30, 2022 and December 31, 2021, respectively)

Additional Paid-In-Capital 2,746,245 2,458,779

1 unchanged sentence

Retained Earnings 1,607,976 1,418,382

Treasury Stock at Cost ( 38,891,974 and 36,900,858 shares at March 31, 2022 and December 31, 2021, respectively)

Treasury Stock at Cost ( 40,460,685 and 36,900,858 shares at June 30, 2022 and December 31, 2021, respectively)

( 2,973,087 ) ( 2,545,452 )

8 unchanged sentences

(dollars and share amounts in thousands, except per share data)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Investment Banking:

14 unchanged sentences

Execution, Clearing and Custody Fees 2,631 2,913 5,428 6,465

Special Charges, Including Business Realignment Costs 532 — 532 —

Acquisition and Transition Costs — — — 7

22 unchanged sentences

(dollars in thousands)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Net Income $ 109,894 $ 163,929 $ 286,988 $ 329,480

11 unchanged sentences

(dollars in thousands, except share data)

For the Three Months Ended March 31, 2022

For the Three Months Ended June 30, 2022

Additional Other

1 unchanged sentence

Shares Dollars Capital Income (Loss) Earnings Shares Dollars Interest Equity

Balance at March 31, 2022 79,460,450 $ 795 $ 2,679,900 $ ( 14,830 ) $ 1,544,765 ( 38,891,974 ) $ ( 2,800,593 ) $ 177,632 $ 1,587,669

Net Income — — — — 95,627 — — 14,267 109,894

Other Comprehensive Income (Loss) — — — ( 16,541 ) — — — ( 1,674 ) ( 18,215 )

Treasury Stock Purchases — — — — — ( 1,568,711 ) ( 172,494 ) — ( 172,494 )

Evercore LP Units Exchanged for Class A Common Stock 26,200 — 1,655 — — — — ( 1,530 ) 125

Equity-based Compensation Awards 111,113 1 64,690 — — — — 6,308 70,999

Dividends — — — — ( 32,416 ) — — — ( 32,416 )

Noncontrolling Interest (Note 12) — — — — — — — ( 24,853 ) ( 24,853 )

Balance at June 30, 2022 79,597,763 $ 796 $ 2,746,245 $ ( 31,371 ) $ 1,607,976 ( 40,460,685 ) $ ( 2,973,087 ) $ 170,150 $ 1,520,709

For the Six Months Ended June 30, 2022

Additional Other

Class A Common Stock Paid-In Comprehensive Retained Treasury Stock Noncontrolling Total

Shares Dollars Capital Income (Loss) Earnings Shares Dollars Interest Equity

Balance at December 31, 2021 74,804,288 $ 748 $ 2,458,779 $ ( 12,086 ) $ 1,418,382 ( 36,900,858 ) $ ( 2,545,452 ) $ 314,910 $ 1,635,281

6 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 1,361 ) — — — — ( 29,380 ) ( 30,741 )

Balance at June 30, 2022 79,597,763 $ 796 $ 2,746,245 $ ( 31,371 ) $ 1,607,976 ( 40,460,685 ) $ ( 2,973,087 ) $ 170,150 $ 1,520,709

For the Three Months Ended June 30, 2021

Additional Other

Class A Common Stock Paid-In Comprehensive Retained Treasury Stock Noncontrolling Total

Shares Dollars Capital Income (Loss) Earnings Shares Dollars Interest Equity

Balance at March 31, 2021 74,521,960 $ 745 $ 2,322,421 $ ( 8,397 ) $ 914,120 ( 33,385,488 ) $ ( 2,059,581 ) $ 265,089 $ 1,434,397

For the Three Months Ended March 31, 2021

Net Income — — — — 140,359 — — 23,570 163,929

Other Comprehensive Income — — — 1,170 — — — 169 1,339

Treasury Stock Purchases — — — — — ( 1,367,984 ) ( 189,952 ) — ( 189,952 )

Evercore LP Units Exchanged for Class A Common Stock 20,550 — 1,555 — — — — ( 1,033 ) 522

Equity-based Compensation Awards 45,673 1 59,749 — — — — 3,011 62,761

Dividends — — — — ( 31,219 ) — — — ( 31,219 )

Noncontrolling Interest (Note 12) — — — — — — — ( 16,510 ) ( 16,510 )

Balance at June 30, 2021 74,588,183 $ 746 $ 2,383,725 $ ( 7,227 ) $ 1,023,260 ( 34,753,472 ) $ ( 2,249,533 ) $ 274,296 $ 1,425,267

For the Six Months Ended June 30, 2021

Additional Other

9 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 2,826 ) — — — — ( 28,664 ) ( 31,490 )

Balance at March 31, 2021 74,521,960 $ 745 $ 2,322,421 $ ( 8,397 ) $ 914,120 ( 33,385,488 ) $ ( 2,059,581 ) $ 265,089 $ 1,434,397

Balance at June 30, 2021 74,588,183 $ 746 $ 2,383,725 $ ( 7,227 ) $ 1,023,260 ( 34,753,472 ) $ ( 2,249,533 ) $ 274,296 $ 1,425,267

See Notes to Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(dollars in thousands)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Cash Flows From Operating Activities

22 unchanged sentences

Investments Purchased — ( 1,355 )

Proceeds from Sale of Investments 18,300 —

Proceeds from Redemption of G5 Debt Security in 2021 and Sale of Investments in 2022 18,300 11,779

Distributions of Private Equity Investments 27 171

11 unchanged sentences

Issuance of Notes Payable 67,000 38,000

Debt Issuance Costs and Make-Whole Amount ( 1,641 ) ( 355 )

Purchase of Treasury Stock and Noncontrolling Interests ( 457,068 ) ( 423,188 )

9 unchanged sentences

Accrued Dividends $ 8,362 $ 7,096

Amounts Due for Purchase of Noncontrolling Interest $ 1,448 $ 3,170

Settlement of Sale of Trilantic VI $ 9,188 $ —

45 unchanged sentences

and has decision making authority that significantly affects the economic performance of this entity.

The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 418,369 and liabilities of $ 158,448 at March 31, 2022 and assets of $ 446,736 and liabilities of $ 260,426 at December 31, 2021.

The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 520,319 and liabilities of $ 203,531 at June 30, 2022 and assets of $ 446,736 and liabilities of $ 260,426 at December 31, 2021.

All intercompany balances and transactions with the Company's subsidiaries have been eliminated upon consolidation.

9 unchanged sentences

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three months ended March 31, 2022 and 2021:

For the Three Months Ended March 31,

The following table presents revenue recognized by the Company for the three and six months ended June 30, 2022 and 2021:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Investment Banking:

10 unchanged sentences

The change in the Company’s contract assets and liabilities during the following periods primarily reflects timing differences between the Company’s performance and the client’s payment.

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the three months ended March 31, 2022 and 2021 are as follows:

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the six months ended June 30, 2022 and 2021 are as follows:

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

For the Three Months Ended March 31, 2022

For the Six Months Ended June 30, 2022

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 33,678 ) ( 24,418 ) 51,177 ( 11,407 ) 366 —

Balance at March 31, 2022 $ 313,677 $ 75,223 $ 44,585 $ 8,534 $ 11,084 $ 147

For the Three Months Ended March 31, 2021

Balance at June 30, 2022 $ 317,990 $ 63,346 $ 65,269 $ 1,538 $ 9,623 $ 147

For the Six Months Ended June 30, 2021

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 39,803 ) 5,011 25,438 1,380 2,280 —

Balance at March 31, 2021 $ 356,430 $ 68,541 $ 27,800 $ 4,172 $ 13,164 $ 147

Balance at June 30, 2021 $ 328,543 $ 75,986 $ 54,765 $ 6,663 $ 11,653 $ 147

(1) Included in Accounts Receivable on the Unaudited Condensed Consolidated Statements of Financial Condition.

5 unchanged sentences

Under Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606"), revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $ 4,208 and $ 2,467 on the Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

The Company recognized revenue of $ 6,297 and $ 10,505 on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022, respectively, and $ 5,609 and $ 8,076 for the three and six months ended June 30, 2021, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

Generally, performance obligations under client arrangements will be settled within one year ;

therefore, the Company has elected to apply the practical expedient in ASC 606-10-50-14.

The allowance for credit losses for the three months ended March 31, 2022 and 2021 is as follows:

For the Three Months Ended March 31,

The allowance for credit losses for the three and six months ended June 30, 2022 and 2021 is as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Beginning Balance $ 2,054 $ 2,017 $ 2,704 $ 5,372

2 unchanged sentences

Ending Balance $ 1,447 $ 2,143 $ 1,447 $ 2,143

The change in the balance during the three months ended March 31, 2022 is primarily related to the decrease in the current period provision of expected credit losses, which is impacted by the change in the amount of receivables outstanding greater than 120 days at March 31, 2022.

The change in the balance during the three months ended March 31, 2022 is also related to the write-off of aged receivables.

The change in the balance during the three and six months ended June 30, 2022 is primarily related to the write-off of aged receivables.

For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics.

The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of March 31, 2022, by year of origination:

EVERCORE INC.

5 unchanged sentences

Note 5 – Related Parties

Investment Banking Revenue includes advisory fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $ 2,860 and $ 5,612 for the three months ended March 31, 2022 and 2021, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 19,041 and $ 20,397 as of March 31, 2022 and December 31, 2021, respectively.

Investment Banking Revenue includes advisory fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $ 4,251 and $ 7,111 for the three and six months ended June 30, 2022, respectively, and $ 16,052 and $ 23,087 for the three and six months ended June 30, 2021, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 21,694 and $ 20,397 as of June 30, 2022 and December 31, 2021, respectively.

See Note 14 for further information.

Note 6 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of March 31, 2022 and December 31, 2021 were as follows:

March 31, 2022 December 31, 2021

The Company's Investment Securities and Certificates of Deposit as of June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022 December 31, 2021

Losses Fair Value Cost Gross

7 unchanged sentences

Total Investment Securities and Certificates of Deposit $ 1,135,700 $ 1,784,639

Scheduled maturities of the Company's available-for-sale debt securities as of March 31, 2022 and December 31, 2021 were as follows:

March 31, 2022 December 31, 2021

Scheduled maturities of the Company's available-for-sale debt securities as of June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022 December 31, 2021

Cost Fair Value Amortized

5 unchanged sentences

Treasuries, and the Company has not incurred credit losses on its securities.

As such, the Company does not consider these securities to be impaired at March 31, 2022 and has not recorded a credit allowance on these securities.

As such, the Company does not consider these securities to be impaired at June 30, 2022 and has not recorded a credit allowance on these securities.

Debt Securities

5 unchanged sentences

included in earnings.

The Company had net realized losses of ($ 34 ) and ($ 11 ) for the three months ended March 31, 2022 and 2021, respectively.

The Company had net realized losses of ($ 34 ) for the six months ended June 30, 2022 and ($ 11 ) for the six months ended June 30, 2021.

Equity Securities

Equity Securities are carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized and unrealized gains of $ 11 and $ 2,128 for the three months ended March 31, 2022 and 2021, respectively.

The Company had net realized and unrealized gains (losses) of ($ 459 ) and ($ 448 ) for the three and six months ended June 30, 2022, respectively, and ($ 267 ) and $ 1,860 for the three and six months ended June 30, 2021, respectively.

Debt Securities Carried by EGL

2 unchanged sentences

These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, as required for broker-dealers in securities.

The Company had net realized and unrealized gains (losses) of $ 21 and ($ 5 ) for the three months ended March 31, 2022 and 2021, respectively.

The Company had net realized and unrealized gains (losses) of $ 507 and $ 528 for the three and six months ended June 30, 2022, respectively, and ($ 4 ) and ($ 9 ) for the three and six months ended June 30, 2021, respectively.

Investment Funds

2 unchanged sentences

These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized and unrealized gains (losses) of ($ 5,163 ) and $ 6,228 for the three months ended March 31, 2022 and 2021, respectively.

The Company had net realized and unrealized gains (losses) of ($ 26,353 ) and ($ 31,516 ) for the three and six months ended June 30, 2022, respectively, and $ 9,774 and $ 16,002 for the three and six months ended June 30, 2021, respectively.

Certificates of Deposit

At March 31, 2022 and December 31, 2021, the Company held certificates of deposit of $ 157,313 and $ 141,218 , respectively, with certain banks with original maturities of four months or less when purchased.

At June 30, 2022 and December 31, 2021, the Company held certificates of deposit of $ 148,563 and $ 141,218 , respectively, with certain banks with original maturities of four months or less when purchased.

Note 7 – Investments

7 unchanged sentences

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of March 31, 2022 and December 31, 2021 was as follows:

March 31, 2022 December 31, 2021

A summary of the Company's investments accounted for under the equity method of accounting as of June 30, 2022 and December 31, 2021 was as follows:

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

June 30, 2022 December 31, 2021

ABS $ 18,986 $ 40,977

3 unchanged sentences

Total $ 36,056 $ 58,590

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

On December 29, 2011, the Company made an investment accounted for under the equity method of accounting in ABS Investment Management, LLC.

3 unchanged sentences

This transaction closed on March 28, 2022 and resulted in the reduction of the Company's ownership interest from 46 % to 26 %.

The Company received cash of $ 18,300 as consideration for its interests sold and recorded a gain of $ 1,294 for the three months ended March 31, 2022, included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

At March 31, 2022, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,199 and $ 2,195 for the three months ended March 31, 2022 and 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company received cash of $ 18,300 as consideration for its interests sold and recorded a gain of $ 1,294 for the six months ended June 30, 2022, included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statement of Operations.

At June 30, 2022, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,171 and $ 2,370 for the three and six months ended June 30, 2022, respectively, and $ 2,295 and $ 4,490 for the three and six months ended June 30, 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Atalanta Sosnoff

On December 31, 2015, the Company amended the Operating Agreement with Atalanta Sosnoff and deconsolidated its assets and liabilities, accounting for its interest under the equity method of accounting from that date forward.

At March 31, 2022, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 939 and $ 660 for the three months ended March 31, 2022 and 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2022, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 939 and $ 1,878 for the three and six months ended June 30, 2022, respectively, and $ 550 and $ 1,210 for the three and six months ended June 30, 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

On January 1, 2017, the Company acquired an interest in Luminis and accounted for its interest under the equity method of accounting.

At March 31, 2022, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 288 and $ 169 for the three months ended March 31, 2022 and 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2022, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 102 and $ 390 for the three and six months ended June 30, 2022, respectively, and $ 549 and $ 718 for the three and six months ended June 30, 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

This investment is subject to currency translation from the Australian dollar to the U.S.

3 unchanged sentences

The Company accounts for its interest under the equity method of accounting.

This investment resulted in earnings of $ 86 for the three months ended March 31, 2022, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statement of Operations.

This investment resulted in earnings of $ 62 and $ 148 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statement of Operations.

This investment is subject to currency translation from the Brazilian real to the U.S.

dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition .

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

The Company allocates the purchase price of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees.

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 for each of the three months ended March 31, 2022 and 2021.

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 for each of the three months ended June 30, 2022 and 2021 and $ 158 for each of the six months ended June 30, 2022 and 2021.

The Company assesses its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.

2 unchanged sentences

The Company previously recorded its investment in G5 as a held-to-maturity debt security within Investments on the Unaudited Condensed Consolidated Statements of Financial Condition.

These securities were mandatorily redeemable on December 31,

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

2027, or earlier, subject to the occurrence of certain events.

These securities were mandatorily redeemable on December 31, 2027, or earlier, subject to the occurrence of certain events.

The Company was accreting its investment to its redemption value ratably, or on an accelerated basis if certain revenue thresholds were met by G5, from December 31, 2017 to December 31, 2027.

1 unchanged sentence

dollar, included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

On June 25, 2021, G5 repaid its outstanding debentures with the Company in full.

On June 25, 2021, G5 repaid its outstanding debentures with the Company in full, resulting in a gain of $ 4,374 , included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021.

Investments in Private Equity

9 unchanged sentences

Additionally, the Company reflects its pro rata share of realized gains, losses and carried interest associated with any investment realizations.

A summary of the Company's investments in the private equity funds as of March 31, 2022 and December 31, 2021 was as follows:

March 31, 2022 December 31, 2021

A summary of the Company's investments in the private equity funds as of June 30, 2022 and December 31, 2021 was as follows:

June 30, 2022 December 31, 2021

Glisco II, Glisco III and Glisco IV $ 3,582 $ 3,479

1 unchanged sentence

Total Private Equity Funds $ 6,240 $ 15,689

Net realized and unrealized gains (losses) on private equity fund investments were ($ 83 ) and $ 39 for the three months ended March 31, 2022 and 2021, respectively.

Net realized and unrealized gains (losses) on private equity fund investments were $ 19 and ($ 64 ) for the three and six months ended June 30, 2022, respectively, and ($ 17 ) and $ 22 for the three and six months ended June 30, 2021, respectively.

In the event the funds perform poorly, the Company may be obligated to repay certain carried interest previously distributed.

As of March 31, 2022, $ 696 of previously distributed carried interest received from the funds was subject to repayment.

As of June 30, 2022, $ 703 of previously distributed carried interest received from the funds was subject to repayment.

On December 14, 2021, the Company entered into an agreement to sell its interests in Trilantic VI for $ 9,188 .

4 unchanged sentences

The Company's assessment of the primary beneficiary of these entities included assessing which parties have the power to significantly impact the economic performance of these entities and the obligation to absorb losses, which could be potentially significant to the entities, or the right to receive benefits from the entities that could be potentially significant.

Neither the Company nor its related parties will have the ability to make decisions that significantly impact the economic performance of these entities.

Neither the Company nor its

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

related parties will have the ability to make decisions that significantly impact the economic performance of these entities.

Further, as a limited partner in these entities, the Company does not possess substantive participating rights.

The Company had assets of $ 3,174 and $ 3,408 included in its Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2022 and December 31, 2021, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company had assets of $ 3,225 and $ 3,408 included in its Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2022 and December 31, 2021, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company's exposure to the obligations of these VIEs is generally limited to its investments in these entities.

The Company's maximum exposure to loss as of March 31, 2022 and December 31, 2021 was $ 5,473 and $ 5,715 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

The Company's maximum exposure to loss as of June 30, 2022 and December 31, 2021 was $ 5,524 and $ 5,715 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

Other Investments

In certain instances, the Company receives equity securities in private companies in exchange for advisory services.

These investments, which had a balance of $ 656 and $ 676 as of March 31, 2022 and December 31, 2021, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

These investments, which had a balance of $ 608 and $ 676 as of June 30, 2022 and December 31, 2021, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Following the Glisco transaction in 2016, the Company recorded an investment in Glisco Manager Holdings LP representing the fair value of the deferred consideration resulting from this transaction.

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The Company amortizes the balance of its investment as distributions are received related to the deferred consideration.

This investment was fully amortized as of March 31, 2022 and had a balance of $ 221 as of December 31, 2021.

This investment was fully amortized as of June 30, 2022 and had a balance of $ 221 as of December 31, 2021.

Note 8 – Leases

Operating Leases – The Company leases office space under non-cancelable lease agreements, which expire on various dates through 2035.

The lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option.

The Company reflects lease expense over the lease terms on a straight-line basis.

The lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option.

Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord.

The Company does not have any leases with variable lease payments.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 12,840 and $ 12,166 for the three months ended March 31, 2022 and 2021, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses, of $ 1,900 and $ 1,852 for the three months ended March 31, 2022 and 2021, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,616 as of March 31, 2022 and December 31, 2021, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 12,769 and $ 25,609 for the three and six months ended June 30, 2022, respectively, and $ 12,334 and $ 24,500 for the three and six months ended June 30, 2021, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses, of $ 1,744 and $ 3,644 for the three and six months ended June 30, 2022, respectively, and $ 1,766 and $ 3,618 for the three and six months ended June 30, 2021, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,616 as of June 30, 2022 and December 31, 2021, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company has entered into various operating leases for the use of office equipment (primarily computers, printers, copiers and other information technology related equipment).

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,243 and $ 1,507 for the three months ended March 31, 2022 and 2021, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,258 and $ 2,501 for the three and six months ended June 30, 2022, respectively, and $ 1,144 and $ 2,651 for the three and six months ended June 30, 2021, respectively.

The Company uses its secured incremental borrowing rate to determine the present value of its right-of-use assets and lease liabilities.

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The Company scales the rates appropriately depending on the life of the leases.

The Company incurred net operating cash outflows of $ 14,811 and $ 10,091 for the three months ended March 31, 2022 and 2021, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 332 and $ 3,441 for the three months ended March 31, 2022 and 2021, respectively.

The Company incurred net operating cash outflows of $ 30,201 and $ 22,893 for the six months ended June 30, 2022 and 2021, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 332 and $ 4,144 for the six months ended June 30, 2022 and 2021, respectively.

Other information as it relates to the Company's operating leases is as follows:

For the Three Months Ended March 31,

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 5,589 $ 1,864

March 31, 2022 March 31, 2021

Weighted-average remaining lease term - operating leases 10.7 years 11.4 years

Weighted-average discount rate - operating leases 3.90 % 4.06 %

As of March 31, 2022, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

2022 (April 1 through December 31) $ 45,562

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 1,585 $ 12,327 $ 7,192 $ 14,211

June 30, 2022 June 30, 2021

Weighted-average remaining lease term - operating leases 10.7 years 11.2 years

Weighted-average discount rate - operating leases 3.91 % 4.02 %

As of June 30, 2022, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2022 (July 1 through December 31) $ 29,804

Thereafter 216,888

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These spaces will have lease terms of 3 to 13 years once the Company has taken possession.

The additional future payments under these arrangements are $ 228,349 as of March 31, 2022.

The additional future payments under these arrangements are $ 230,009 as of June 30, 2022.

Note 9 – Fair Value Measurements

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As required by ASC 820, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

Periodically, the Company holds investments in corporate bonds, municipal bonds and other debt securities, the estimated fair values of which are based on prices provided by external pricing services.

Level 3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.

The inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

March 31, 2022

methodologies.

Level 3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.

The inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021:

June 30, 2022

Level 1 Level 2 Level 3 Total

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Total Assets Measured At Fair Value $ 1,646,421 $ — $ — $ 1,646,421

(1) Includes $ 2,897 and $ 3,000 of treasury bills and notes classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2022 and December 31, 2021, respectively.

(1) Includes $ 5,886 and $ 3,000 of treasury bills and notes classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2022 and December 31, 2021, respectively.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

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(amounts in thousands, except per share amounts, unless otherwise noted)

March 31, 2022

June 30, 2022

Carrying Estimated Fair Value

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Notes Payable 371,707 — 369,191 — 369,191

375,361 — 364,821 — 364,821

December 31, 2021

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(2) Includes current and long-term contract assets included in Other Current Assets and Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

(3) Includes current and long-term Notes Payable included in Current Portion of Notes Payable and Notes Payable on the Unaudited Condensed Consolidated Statements of Financial Condition.

Note 10 – Notes Payable

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$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes due March 30, 2023 (the "Series B Notes"), $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due March 30, 2026 (the "Series C Notes") and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to a note purchase agreement (the "2016 Note Purchase Agreement") dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

In March 2021, the Company repaid the $ 38,000 aggregate principal amount of its Series A Notes.

Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

The Company may, at its option, prepay all, or from time to time

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

The Company may, at its option, prepay all, or from time to time any part of, the 2016 Private Placement Notes (without regard to Series), in an amount not less than 5 % of the aggregate principal amount of the 2016 Private Placement Notes then outstanding at 100 % of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2016 Private Placement Notes will have the right to require the Company to prepay the entire unpaid principal amounts held by each holder of the 2016 Private Placement Notes plus accrued and unpaid interest to the prepayment date.

any part of, the 2016 Private Placement Notes (without regard to Series), in an amount not less than 5 % of the aggregate principal amount of the 2016 Private Placement Notes then outstanding at 100 % of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2016 Private Placement Notes will have the right to require the Company to prepay the entire unpaid principal amounts held by each holder of the 2016 Private Placement Notes plus accrued and unpaid interest to the prepayment date.

The 2016 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio, a minimum tangible net worth and a minimum interest coverage ratio, and customary events of default.

As of March 31, 2022, the Company was in compliance with all of these covenants.

As of June 30, 2022, the Company was in compliance with all of these covenants.

In March 2021, the Company repaid the $ 38,000 aggregate principal amount of its Series A Notes .

On June 28, 2022, the Company prepaid the $ 67,000 aggregate principal amount of its Series B Notes plus the applicable make-whole amount.

In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, the Company recorded a loss of $ 456 for the three and six months ended June 30, 2022, included within Special Charges, Including Business Realignment Costs, on the Unaudited Condensed Consolidated Statements of Operations.

2019 Private Placement Notes

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The 2019 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default.

As of March 31, 2022, the Company was in compliance with all of these covenants.

As of June 30, 2022, the Company was in compliance with all of these covenants.

2021 Private Placement Notes

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The 2021 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default.

As of March 31, 2022, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of March 31, 2022 and December 31, 2021:

As of June 30, 2022, the Company was in compliance with all of these covenants.

2022 Private Placement Notes

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

On June 28, 2022, the Company issued $ 67,000 aggregate principal amount of its 4.61 % Series J senior notes due November 15, 2028 (the "Series J Notes" or the "2022 Private Placement Notes"), pursuant to a note purchase agreement (the "2022 Note Purchase Agreement") dated as of June 28, 2022, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Interest on the 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

The Company may, at its option, prepay all, or from time to time any part of, the 2022 Private Placement Notes, in an amount not less than 5 % of the aggregate principal amount of the 2022 Private Placement Notes then outstanding at 100 % of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2022 Private Placement Notes will have the right to require the Company to prepay the entire unpaid principal amounts held by each holder of the 2022 Private Placement Notes plus accrued and unpaid interest to the prepayment date.

The 2022 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default.

As of June 30, 2022, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of June 30, 2022 and December 31, 2021:

Carrying Value (a)

Note Maturity Date Effective Annual Interest Rate March 31, 2022 December 31, 2021

Note Maturity Date Effective Annual Interest Rate June 30, 2022 December 31, 2021

Evercore Inc.

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8/1/2025 2.20 % 37,744 37,704

Evercore Inc.

4.61 % Series J Senior Notes

11/15/2028 5.02 % 65,520 —

Total $ 371,707 $ 376,243

Current Portion of Notes Payable ( 66,863 ) —

Notes Payable $ 308,498 $ 376,243

(a) Carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct reduction from the related liability.

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Stockholders' Equity

Dividends – The Company's Board of Directors declared on April 26, 2022, a quarterly cash dividend of $ 0.72 per share, to the holders of record of shares of Class A common stock ("Class A Shares") as of May 27, 2022, which will be paid on June 10, 2022.

During the three months ended March 31, 2022, the Company declared and paid dividends of $ 0.68 per share, totaling $ 27,505 , and accrued deferred cash dividends on unvested restricted stock units ("RSUs"), totaling $ 4,128 .

During the three months ended March 31, 2022, the Company also paid deferred cash dividends of $ 14,114 .

Treasury Stock – During the three months ended March 31, 2022, the Company purchased 915 Class A Shares from employees at an average cost per share of $ 129.04 , primarily for the net settlement of stock-based compensation awards, and 1,076 Class A Shares at an average cost per share of $ 127.37 pursuant to the Company's share repurchase program.

The aggregate 1,991 Class A Shares were purchased at an average cost per share of $ 128.14 , and the result of these purchases was an increase in Treasury Stock of $ 255,141 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022.

LP Units – During the three months ended March 31, 2022, 2,546 Evercore LP partnership units ("LP Units") were exchanged for Class A Shares, resulting in an increase to Class A Common Stock and Additional Paid-In-Capital of $ 26 and $ 157,751 , respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022.

Dividends – The Company's Board of Directors declared on July 26, 2022, a quarterly cash dividend of $ 0.72 per share, to the holders of record of shares of Class A common stock ("Class A Shares") as of August 26, 2022, which will be paid on September 9, 2022.

During the three and six months ended June 30, 2022, the Company declared and paid dividends of $ 0.72 and $ 1.40 per share, respectively, totaling $ 28,182 and $ 55,687 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $ 4,234 and $ 8,362 , respectively.

The Company also paid deferred cash dividends of $ 1,067 and $ 15,181 during the three and six months ended June 30, 2022, respectively.

During the three and six months ended June 30, 2021, the Company declared and paid dividends of $ 0.68 and $ 1.29 per share, respectively, totaling $ 27,534 and $ 52,928 , respectively, and accrued deferred cash dividends on unvested RSUs totaling $ 3,685 and $ 7,096 , respectively.

The Company also paid deferred cash dividends of $ 191 and $ 12,211 during the three and six months ended June 30, 2021, respectively.

Treasury Stock – During the three months ended June 30, 2022, the Company purchased 57 Class A Shares from employees at an average cost per share of $ 110.92 , primarily for the net settlement of stock-based compensation awards, and 1,512 Class A Shares at an average cost per share of $ 109.92 pursuant to the Company's share repurchase program.

The aggregate 1,569 Class A Shares were purchased at an average cost per share of $ 109.96 , and the result of these purchases was an increase in Treasury Stock of $ 172,494 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

During the six months ended June 30, 2022, the Company purchased 972 Class A Shares from employees at an average cost per share of $ 127.99 , primarily for the net settlement of stock-based compensation awards, and 2,588 Class A Shares at an average cost per share of $ 117.18 pursuant to the Company's share repurchase program.

The aggregate 3,560 Class A Shares were purchased at an average cost per share of $ 120.13 , and the result of these purchases was an increase in Treasury Stock of $ 427,635 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022.

LP Units – During the three and six months ended June 30, 2022, 26 and 2,573 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in an increase to Class A Common Stock of $ 26 for the six months ended June 30, 2022, and an increase to Additional Paid-In-Capital of $ 1,530 and $ 159,281 for the three and six months ended June 30, 2022, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022.

See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of March 31, 2022, Accumulated Other Comprehensive Income (Loss) on the Company's Unaudited Condensed Consolidated Statement of Financial Condition includes an accumulated Unrealized Gain (Loss) on Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($ 5,538 ) and ($ 9,292 ), respectively.

Accumulated Other Comprehensive Income (Loss) – As of June 30, 2022, Accumulated Other Comprehensive Income (Loss) on the Company's Unaudited Condensed Consolidated Statement of Financial Condition includes an accumulated Unrealized Gain (Loss) on Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($ 5,262 ) and ($ 26,109 ), respectively.

Note 12 – Noncontrolling Interest

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In circumstances where the governing documents of the entity to which the noncontrolling interest relates require special allocations of profits or losses to the controlling and noncontrolling interest holders, the net income or loss of these entities is allocated based on these special allocations.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Evercore LP 6 % 11 %

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If the Company has not exercised its option prior to the end of the option period, or the noncontrolling interest holders continue to hold greater than 25 % of the outstanding units following the transaction, the noncontrolling interest holders may exchange their interests for Evercore LP Units, at fair value, sufficient to reduce their outstanding interest to 25 %.

As of March 31, 2022, the EWM members held 25 % of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three months ended March 31, 2022 and 2021 were as follows:

For the Three Months Ended March 31,

As of June 30, 2022, the EWM members held 25 % of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three and six months ended June 30, 2022 and 2021 were as follows:

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Beginning balance $ 177,632 $ 265,089 $ 314,910 $ 258,428

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Ending balance $ 170,150 $ 274,296 $ 170,150 $ 274,296

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains on securities and investments, net, of $ 6 for the three months ended March 31, 2021, and foreign currency translation adjustment gains (losses), net, of ($ 273 ) and $ 228 for the three months ended March 31, 2022 and 2021, respectively.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains on securities and investments, net, of $ 28 for the three and six months ended June 30, 2022 and $ 62 and $ 68 for the three and six months ended June 30, 2021, respectively, and foreign currency translation adjustment gains (losses), net, of ($ 1,702 ) and ($ 1,975 ) for the three and six months ended June 30, 2022, respectively, and $ 107 and $ 335 for the three and six months ended June 30, 2021, respectively.

LP Units Exchanged – On February 24, 2022, the Company entered into an agreement (the "Exchange Agreement") with ISI Holding, Inc.

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Pursuant to the Exchange Agreement, ISI Holding exercised its existing conversion rights under the terms of the partnership agreement of Evercore LP to exchange (the "Exchange") all 2,545 of the Class E limited partnership units of Evercore LP ("Class E LP Units") owned by it for 2,545 Class A Shares.

Following the Exchange, ISI Holding liquidated and distributed the

Following the Exchange, ISI Holding liquidated and distributed the Class A Shares received in the Exchange to its stockholders in accordance with their ownership interests in ISI Holding.

The parties have relied on the exemption from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) thereof for the Exchange.

During the three and six months ended June 30, 2022, an aggregate of 26 and 2,573 LP Units, respectively, were exchanged for Class A Shares, including the Class E LP Units described above.

These exchanges resulted in a decrease to Noncontrolling Interest of $ 1,530 and $ 159,307 for the three and six months ended June 30, 2022, respectively, an increase to Additional-Paid-In-Capital of $ 1,530 and $ 159,281 for the three and six months ended June 30, 2022, respectively, and an increase to Class A Common Stock of $ 26 for the six months ended June 30, 2022 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022.

See Note 11 for further information.

Interests Issued – During the first quarter of 2021, certain employees of EWM purchased EWM Class A Units, at fair value, resulting in an increase to Noncontrolling Interest of $ 975 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

Interests Purchased – During the first quarter of 2022, the Company purchased, at fair value, an additional 0.4 % of the EWM Class A Units for $ 1,448 , which was settled in cash during the three months ended June 30, 2022.

This purchase resulted in a decrease to Noncontrolling Interest of $ 87 and a decrease to Additional-Paid-In-Capital of $ 1,361 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

Class A Shares received in the Exchange to its stockholders in accordance with their ownership interests in ISI Holding.

The parties have relied on the exemption from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) thereof for the Exchange.

During the three months ended March 31, 2022, an aggregate of 2,546 LP Units were exchanged for Class A Shares, including the Class E LP Units described above.

These exchanges resulted in a decrease to Noncontrolling Interest of $ 157,777 and an increase to Additional-Paid-In-Capital and Class A Common Stock of $ 157,751 and $ 26 , respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022.

See Note 11 for further information.

Interests Purchased – During the first quarter of 2022, the Company purchased, at fair value, an additional 0.4 % of the EWM Class A Units for $ 1,448 , which was included within Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022.

During the first quarter of 2021, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 3,170 (which was paid in cash in April 2021 and was included within Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2021).

This purchase resulted in a decrease to Noncontrolling Interest of $ 344 and a decrease to Additional Paid-In-Capital of $ 2,826 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2021.

During the first quarter of 2021, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 3,170 , which was settled in cash during the three months ended June 30, 2021.

On December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business for $ 54,297 .

Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash during the three months ended March 31, 2022, and contingent cash consideration which will be settled in early 2024.

As of March 31, 2022 and December 31, 2021, the fair value of the contingent consideration is $ 20,010 and $ 20,587 , respectively, and is included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition.

Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash during the six months ended June 30, 2022, and contingent cash consideration which will be settled in early 2024.

As of June 30, 2022 and December 31, 2021, the fair value of the contingent consideration is $ 17,309 and $ 20,587 , respectively, and is included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition.

The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.

For the three and six months ended June 30, 2022, the Company recognized a reversal of expense of $ 2,701 and $ 3,278 , respectively, within Other Operating Expenses on the Unaudited Condensed Consolidated Statements of Operations, related to the change in fair value of the contingent consideration.

The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets.

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The calculations of basic and diluted net income per share attributable to Evercore Inc.

common shareholders for the three months ended March 31, 2022 and 2021 are described and presented below.

common shareholders for the three and six months ended June 30, 2022 and 2021 are described and presented below.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Basic Net Income Per Share Attributable to Evercore Inc.

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common shareholders $ 95,627 $ 140,359 $ 253,643 $ 284,711

Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares (a) (a)

Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above (a) (a)

Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares (a) (a) (a) (a)

Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above (a) (a) (a) (a)

Diluted net income attributable to Evercore Inc.

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Shares that are contingently issuable (b)

128 480 257 480

Diluted weighted average Class A Shares outstanding 41,108 43,661 41,395 44,053

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common shareholders $ 2.33 $ 3.21 $ 6.13 $ 6.46

(a) The Company has outstanding Class A and E LP Units, Class K limited partnership units of Evercore LP ("Class K LP Units") and Class I limited partnership units of Evercore LP ("Class I LP Units"), which give the holders the right to receive Class A Shares upon exchange on a one -for-one basis.

During the three months ended March 31, 2022 and 2021, the Class A, E, K and I LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc.

(a) The Company has outstanding Class A and E LP Units, Class I limited partnership units of Evercore LP ("Class I LP Units") and Class K limited partnership units of Evercore LP ("Class K LP Units"), which give the holders the right to receive Class A Shares upon exchange on a one -for-one basis.

During the three and six months ended June 30, 2022 and 2021, the Class A, E, I and K LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc.

common shareholders.

The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc.

common shareholders if the effect would have been dilutive were 3,943 and 4,926 for the three months ended March 31, 2022 and 2021, respectively.

The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 15,066 and $ 17,012 for the three months ended March 31, 2022 and 2021, respectively.

In computing this adjustment, the Company assumes that all Class A, E, K and I LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc.

common shareholders if the effect would have been dilutive were 2,656 and 3,296 for the three and six months ended June 30, 2022, respectively, and 4,848 and 4,887 for the three and six months ended June 30, 2021, respectively.

The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 11,664 and $ 26,731 for the three and six months ended June 30, 2022, respectively, and $ 17,159 and $ 34,170 for the three and six months ended June 30, 2021, respectively.

In computing this adjustment, the Company assumes that all Class A, E, I and K LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc.

and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S.

at prevailing corporate tax rates.

The Company does not anticipate that the Class A, E, K and I LP Units will result in a dilutive computation in future periods.

The Company does not anticipate that the Class A, E, I and K LP Units will result in a dilutive computation in future periods.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

(b) The Company previously had outstanding Class I-P units of Evercore LP ("Class I-P Units") which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has outstanding Class K-P units of Evercore LP ("Class K-P Units") which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved.

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common shareholders, the Company's Class I-P Units and Class K-P Units are included in diluted weighted average Class A Shares outstanding as of the beginning of the period in which all necessary performance conditions have been satisfied.

If all necessary performance conditions have not been satisfied by the end of the period, the number of

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

shares that are included in diluted weighted average Class A Shares outstanding is based on the number of shares that would be issuable if the end of the reporting period were the end of the performance period.

If all necessary performance conditions have not been satisfied by the end of the period, the number of shares that are included in diluted weighted average Class A Shares outstanding is based on the number of shares that would be issuable if the end of the reporting period were the end of the performance period.

The units that were assumed to be converted to an equal number of Class A Shares for purposes of computing diluted net income per share attributable to Evercore Inc.

common shareholders were 415 and 480 for the three months ended March 31, 2022 and 2021, respectively.

common shareholders were 128 and 257 for the three and six months ended June 30, 2022, respectively, and 480 for each of the three and six months ended June 30, 2021.

The shares of Class B common stock have no right to receive dividends or a distribution on liquidation or winding up of the Company.

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Note 14 – Share-Based and Other Deferred Compensation

Class I-P Units – In November 2016, the Company issued 400 Class I-P Units in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman).

These Class I-P Units converted into 400 Class I LP Units (which are exchangeable on a one -for-one basis to Class A Shares), upon on the achievement of certain market and service conditions through March 1, 2022.

Compensation expense related to this award was $ 753 and $ 1,236 for the three months ended March 31, 2022 and 2021, respectively .

Class K-P Units – In November 2017, the Company issued 64 Class K-P Units to an employee of the Company.

Class I-P Units – In November 2016, the Company awarded 400 Class I-P Units in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman).

These Class I-P Units converted into 400 Class I LP Units (which are exchangeable on a one -for-one basis to Class A Shares), upon the achievement of certain market and service conditions on March 1, 2022.

Compensation expense related to this award was $ 753 for the six months ended June 30, 2022 and $ 1,130 and $ 2,366 for the three and six months ended June 30, 2021, respectively .

Class K-P Units – In November 2017, the Company awarded 64 Class K-P Units to an employee of the Company.

These Class K-P Units converted into 80 Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), upon the achievement of certain defined benchmark results relating to the employee's business and continued service through December 31, 2021.

In June 2019, the Company issued 220 Class K-P Units to an employee of the Company.

In June 2019, the Company awarded 220 Class K-P Units to an employee of the Company.

These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), contingent and based upon the achievement of certain defined benchmark results relating to the employee's business and continued service through February 4, 2023 for the first tranche, which consists of 120 Class K-P Units, and February 4, 2028 for the second tranche, which consists of 100 Class K-P Units.

In December 2021, the Company issued 400 Class K-P Units to certain employees of the Company.

In December 2021, the Company awarded 400 Class K-P Units to certain employees of the Company.

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These Class K-P Units in the aggregate may convert into a maximum of 1,180 Class K LP Units, contingent upon the achievement of certain defined benchmarks and continued service, as described above.

The Company determined the grant date fair value of these awards probable to vest as of March 31, 2022 to be $ 96,174 , related to 876 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Aggregate compensation expense related to the Class K-P Units was $ 5,468 and $ 1,860 for the three months ended March 31, 2022 and 2021, respectively.

The Company determined the grant date fair value of these awards probable to vest as of June 30, 2022 to be $ 100,877 , related to 946 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Aggregate compensation expense related to the Class K-P Units was $ 6,308 and $ 11,776 for the three and six months ended June 30, 2022, respectively, and $ 1,881 and $ 3,741 for the three and six months ended June 30, 2021, respectively.

Class L Interests – In April 2021, the Company's Board of Directors approved the issuance of Class L Interests in Evercore LP ("Class L Interests") to certain of the named executive officers of the Company, pursuant to which the named executive officers received a discretionary distribution of profits from Evercore LP, which was paid in the first quarter of 2022.

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Following the distribution, these Class L Interests were cancelled pursuant to their terms.

In January 2022, the Company issued Class L Interests to certain of the named executive officers of the Company, pursuant to which the named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2023.

The Company records expense related to these interests as part of its accrual for incentive compensation within Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

Stock Incentive Plan

During 2020, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan (the "Amended 2016 Plan"), which amended the prior Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan.

The Amended 2016 Plan, among other things, authorizes an additional 6,000 shares of the Company's Class A Shares.

The Amended 2016 Plan permits the Company to grant to certain employees, directors and consultants incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs and other awards based on the Company's Class A Shares.

The Company intends to use newly-issued Class A Shares to satisfy any awards under the Amended 2016 Plan and its predecessor plan.

Class A Shares underlying any award granted under the Amended 2016 Plan that expire, terminate or are canceled or satisfied for any reason without being settled in stock again become available for awards under the plan.

The total shares available to be granted in the future under the Amended 2016 Plan was 1,480 as of March 31, 2022.

Stock Incentive Plan (the "Amended 2016 Plan").

During the second quarter of 2022, the Company's stockholders approved the Second Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan (the "Second Amended 2016 Plan"), which amended the Amended 2016 Plan.

The Second Amended 2016 Plan, among other things, authorizes an additional 6,500 shares of the Company's Class A Shares.

The Second Amended 2016 Plan permits the Company to grant to certain employees, directors and consultants incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs and other awards based on the Company's Class A Shares.

The Company intends to use newly-issued Class A Shares to satisfy any awards under the Second Amended 2016 Plan and its predecessor plan.

Class A Shares underlying any award granted under the Second Amended 2016 Plan that expire, terminate or are canceled or satisfied for any reason without being settled in stock again become available for awards under the plan.

The total shares available to be granted in the future under the Second Amended 2016 Plan was 7,752 as of June 30, 2022.

The Company also grants, at its discretion, dividend equivalents, in the form of unvested RSU awards, or deferred cash dividends, concurrently with the payment of dividends to the holders of Class A Shares, on all unvested RSU grants.

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Equity Grants

During the three months ended March 31, 2022, pursuant to the Amended 2016 Plan, the Company granted employees 2,619 RSUs that are Service-based Awards.

Service-based Awards granted during the three months ended March 31, 2022 had grant date fair values of $ 114.45 to $ 137.59 per share, with an average value of $ 126.76 per share, for an aggregate fair value of $ 332,010 , and generally vest ratably over four years .

During the three months ended March 31, 2022, 2,079 Service-based Awards vested and 27 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 60,247 and $ 51,708 for the three months ended March 31, 2022 and 2021, respectively.

During the six months ended June 30, 2022, pursuant to the above Stock Incentive Plans, the Company granted employees 2,886 RSUs that are Service-based Awards.

Service-based Awards granted during the six months ended June 30, 2022 had grant date fair values of $ 93.03 to $ 137.59 per share, with an average value of $ 124.56 per share, for an aggregate fair value of $ 359,481 , and generally vest ratably over four years .

During the six months ended June 30, 2022, 2,194 Service-based Awards vested and 66 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 67,597 and $ 127,844 for the three and six months ended June 30, 2022, respectively, and $ 58,054 and $ 109,762 for the three and six months ended June 30, 2021, respectively.

Deferred Cash

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The Company granted $ 123,729 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of 2022.

Compensation expense related to the Company's deferred cash compensation program was $ 30,537 and $ 30,889 for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, the Company expects to pay an aggregate of $ 330,137 related to the Company's deferred cash compensation program at various dates through 2026 and total compensation expense related to these awards not yet recognized was $ 259,530 .

Compensation expense related to the Company's deferred cash compensation program was $ 28,448 and $ 58,985 for the three and six months ended June 30, 2022, respectively, and $ 34,858 and $ 65,747 for the three and six months ended June 30, 2021, respectively.

As of June 30, 2022, the Company expects to pay an aggregate of $ 302,255 related to the Company's deferred cash compensation program at various dates through 2026 and total compensation expense not yet recognized related to these awards was $ 204,704 .

The weighted-average period over which this compensation cost is expected to be recognized is 26 months.

Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022.

Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman) with a target payment amount of $ 35,000 , of which $ 11,000 vested on March 1, 2019, $ 6,000 vested on each of March 1, 2020, 2021 and 2022, and $ 6,000 is scheduled to vest on March 1, 2023, provided that the Chief Executive Officer continues to remain employed through such vesting date, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control.

The Company had the discretion to increase (by an amount up to $ 35,000 ) or decrease (by an amount up to $ 8,750 ) the total amount payable under this award.

In 2017, the Company granted deferred cash awards of $ 29,500 to certain employees.

These awards vest in five equal installments over the period ending June 30, 2022, subject to continued employment.

The Company recognizes expense for these awards ratably over the vesting period.

These awards vested in five equal installments over the period ending June 30, 2022, subject to continued employment.

The Company recognized expense for these awards ratably over the vesting period.

During the first quarter of 2022, the Company granted $ 19,861 of deferred cash awards to certain employees.

These awards vest ratably over one to two years .

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

In addition, the Company periodically grants other deferred cash awards to certain employees.

The Company recognizes expense for these awards ratably over the vesting period.

Compensation expense related to other deferred cash awards was $ 4,820 and $ 3,341 for the three months ended March 31, 2022 and 2021, respectively.

Compensation expense related to other deferred cash awards was $ 4,507 and $ 9,327 for the three and six months ended June 30, 2022, respectively, and $ 2,180 and $ 5,521 for the three and six months ended June 30, 2021, respectively.

Long-term Incentive Plan

The Company's Long-term Incentive Plan provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (the "2017 Long-term Incentive Plan") and January 1, 2021 (the "2021 Long-term Incentive Plan", which was approved by the Company's Board of Directors in April 2021 and modified in July 2021).

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,404 of current liabilities and $ 43,088 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022, are due to be paid, in cash or Class A Shares, at the Company's discretion, in the first quarter of 2023 (for the 2017 Long-term Incentive Plan), and in the first quarter of 2025, 2026 and 2027 (for the 2021 Long-term Incentive Plan), subject to employment at the time of payment.

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,333 of current liabilities and $ 56,736 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022, are due to be paid, in cash or Class A Shares, at the Company's discretion, in the first quarter of 2023 (for the 2017 Long-term Incentive Plan), and in the first quarter of 2025, 2026 and 2027 (for the 2021 Long-term Incentive Plan), subject to employment at the time of payment.

The performance period for the 2017 Long-term Incentive Plan ended on December 31, 2020.

In conjunction with this plan, the Company distributed cash payments of $ 3,940 in the three months ended March 31, 2022, and $ 92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 pursuant to the 2017 Long-term Incentive Plan of $ 48,461 , and an additional cash distribution made in December 2021 of $ 44,477 , related to the acceleration of certain amounts due in the first quarter of 2022).

In conjunction with this plan, the Company distributed cash payments of $ 3,940 in the six months ended June 30, 2022, and $ 92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 pursuant to the 2017 Long-term Incentive Plan of $ 48,461 , and an additional cash distribution made in December 2021 of $ 44,477 , related to the acceleration of certain amounts due in the first quarter of 2022).

Awards issued under the 2017 Long-term Incentive Plan are subject to retirement eligibility requirements after the performance criteria has been achieved.

The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award.

The Company recorded $ 15,285 and $ 4,893 of compensation expense for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 6,418 .

As of March 31, 2022, the total remaining expense to be recognized for the 2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027, based on the current anticipated probable payout for the plan, is $ 208,652 .

The Company recorded $ 13,977 and $ 29,262 of compensation expense for the three and six months ended June 30, 2022, respectively, and $ 8,209 and $ 13,102 for the three and six months ended June 30, 2021, respectively.

As of June 30, 2022, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 4,736 .

As of June 30, 2022, the total remaining expense to be recognized for the 2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027, based on the current anticipated probable payout for the plan, is $ 189,890 .

Employee Loans Receivable

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In circumstances where the employee meets the Company's minimum credit standards, the Company amortizes these awards to compensation expense over the relevant service period, which is generally the period they are subject to forfeiture.

Compensation expense related to these awards was $ 5,452 and $ 4,149 for the three months ended March 31, 2022 and 2021, respectively.

The remaining unamortized amount of these awards was $ 41,364 as of March 31, 2022.

Compensation expense related to these awards was $ 7,987 and $ 13,439 for the three and six months ended June 30, 2022, respectively, and $ 6,296 and $ 10,446 for the three and six months ended June 30, 2021, respectively.

The remaining unamortized amount of these awards was $ 42,024 as of June 30, 2022.

Separation and Transition Benefits

The following table presents the change in the Company's Termination Costs liability for the three months ended March 31, 2022 and 2021:

For the Three Months Ended March 31,

The following table presents the change in the Company's Termination Costs liability for the six months ended June 30, 2022 and 2021:

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

For the Six Months Ended June 30,

Beginning Balance $ 675 $ 4,589

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Ending Balance $ 479 $ 2,584

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

In addition to the above Termination Costs incurred, for the three months ended March 31, 2022 and 2021, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 414 and $ 284 , respectively, (related to 7 and 3 RSUs, respectively) recorded in Employee Compensation and Benefits, within the Investment Banking segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

In addition to the above Termination Costs incurred, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 280 and $ 694 for the three and six months ended June 30, 2022, respectively, (related to 10 RSUs) and $ 1,663 and $ 1,948 for the three and six months ended June 30, 2021, respectively, (related to 29 RSUs) recorded in Employee Compensation and Benefits, within the Investment Banking segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

Note 15 – Commitments and Contingencies

For a further discussion of the Company's commitments, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Private Equity – As of March 31, 2022, the Company had unfunded commitments for capital contributions of $ 2,695 to private equity funds.

Private Equity – As of June 30, 2022, the Company had unfunded commitments for capital contributions of $ 2,704 to private equity funds.

These commitments will be funded as required through the end of each private equity fund's investment period, subject to certain conditions.

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In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other indebtedness, subject to specified exceptions.

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2022.

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2022.

East amended this facility on October 29, 2021 such that, among other things, the interest rate provisions were LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date was extended to October 28, 2023 (as amended, the "Existing PNC Facility").

There were no drawings under this facility at March 31, 2022.

There were no drawings under this facility at June 30, 2022.

On July 26, 2019, East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October 30, 2020, of up to $ 30,000 , to be used for working capital and other corporate activities.

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In addition, the agreement contains certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2022.

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2022.

East amended this facility on October 29, 2021 such that, among other things, the revolving credit facility has increased to an aggregate principal amount of $ 55,000 .

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East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility.

There were no drawings under this facility at March 31, 2022.

There were no drawings under this facility at June 30, 2022.

On October 29, 2021, EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount of up to $ 75,000 , to be used as needed in support of capital requirements from time to time of EGL.

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Drawings under this facility will bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date will be October 28, 2023, unless prepayment is otherwise approved earlier by FINRA.

There were no drawings under this facility at March 31, 2022.

There were no drawings under this facility at June 30, 2022.

In addition, EGL's clearing broker provides temporary funding for the settlement of securities transactions.

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from employees of the RECA business in 2021.

The Company’s consideration for this transaction included contingent cash consideration which will be settled in 2024.

The contingent consideration has a fair value of $ 20,010 as of March 31, 2022, and is included within Other Long-term Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition.

The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.

See Note 12 for further information.

The Company enters into commitments to pay contingent consideration related to certain of its acquisitions.

The Company paid $ 270 of its commitment for contingent consideration related to its acquisition of Kuna & Co, KG during the three months ended March 31, 2021.

The contingent consideration was fully paid as of March 31, 2021.

The Company’s

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

consideration for this transaction included contingent cash consideration which will be settled in 2024.

The contingent consideration has a fair value of $ 17,309 as of June 30, 2022, and is included within Other Long-term Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition.

The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.

See Note 12 for further information.

The Company enters into commitments to pay contingent consideration related to certain of its acquisitions.

The Company paid $ 270 of its commitment for contingent consideration related to its acquisition of Kuna & Co, KG during the six months ended June 30, 2021.

The contingent consideration was fully paid as of June 30, 2021.

Restricted Cash – The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statements of financial condition that sum to the total of amounts shown in the Unaudited Condensed Consolidated Statements of Cash Flows:

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Under the Alternative Net Capital Requirement, EGL's minimum net capital requirement is $ 250 .

EGL's regulatory net capital as of March 31, 2022 and December 31, 2021 was $ 412,184 and $ 660,032 , respectively, which exceeded the minimum net capital requirement by $ 411,934 and $ 659,782 , respectively.

EGL's regulatory net capital as of June 30, 2022 and December 31, 2021 was $ 365,745 and $ 660,032 , respectively, which exceeded the minimum net capital requirement by $ 365,495 and $ 659,782 , respectively.

Certain other non-U.S.

subsidiaries are subject to various securities and banking regulations and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate.

These subsidiaries are in excess of their local capital adequacy requirements at March 31, 2022.

These subsidiaries are in excess of their local capital adequacy requirements at June 30, 2022.

Evercore Trust Company, N.A.

("ETC"), which is limited to fiduciary activities, is regulated by the Office of the Comptroller of the Currency ("OCC") and is a member bank of the Federal Reserve System.

The Company, Evercore LP and ETC are subject to written agreements with the OCC that, among other things, require the Company and Evercore LP to maintain at least $ 5,000 in Tier 1 capital in ETC (or such other amount as the OCC may require) and maintain liquid assets in ETC in an amount at least equal to the greater of $ 3,500 or 180 days coverage of ETC's operating expenses.

The Company was in compliance with the aforementioned agreements as of March 31, 2022.

Note 17 – Income Taxes

The Company's Provision for Income Taxes was $ 34,782 and $ 31,681 for the three months ended March 31, 2022 and 2021, respectively.

The effective tax rate was 16.4 % and 16.1 % for the three months ended March 31, 2022 and 2021, respectively.

The effective tax rate reflects net excess tax benefits associated with the appreciation in the Company's share price

The Company, Evercore LP and ETC are subject to written agreements with the OCC that, among other things, require the Company and Evercore LP to

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

upon vesting of employee share-based awards above the original grant price of $ 19,036 and $ 16,669 being recognized in the Company's Provision for Income Taxes for the three months ended March 31, 2022 and 2021, respectively, and resulted in a reduction in the effective tax rate of 9.0 and 8.5 percentage points for the three months ended March 31, 2022 and 2021, respectively.

The effective tax rate for the three months ended March 31, 2022 and 2021 also reflects the effect of certain nondeductible expenses, including expenses related to Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

maintain at least $ 5,000 in Tier 1 capital in ETC (or such other amount as the OCC may require) and maintain liquid assets in ETC in an amount at least equal to the greater of $ 3,500 or 180 days coverage of ETC's operating expenses.

The Company was in compliance with the aforementioned agreements as of June 30, 2022.

Note 17 – Income Taxes

The Company's Provision for Income Taxes was $ 38,562 and $ 73,344 for the three and six months ended June 30, 2022, respectively, and $ 46,478 and $ 78,159 for the three and six months ended June 30, 2021, respectively.

The effective tax rate was 26.0 % and 20.4 % for the three and six months ended June 30, 2022, respectively, and 22.1 % and 19.2 % for the three and six months ended June 30, 2021, respectively.

The effective tax rate reflects net excess tax benefits associated with the appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of $ 19,782 and $ 17,018 being recognized in the Company's Provision for Income Taxes for the six months ended June 30, 2022 and 2021, respectively, and resulted in a reduction in the effective tax rate of 5.5 and 4.2 percentage points for the six months ended June 30, 2022 and 2021, respectively.

The effective tax rate for 2022 and 2021 also reflects the effect of certain nondeductible expenses, including expenses related to Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred.

For the three months ended March 31, 2022 and 2021 , no additional income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company's effective tax rate for the year.

The Company recorded a decrease in deferred tax assets of $ 1 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 965 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the three months ended March 31, 2022.

The Company recorded a decrease in deferred tax assets of $ 13 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 638 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the three months ended March 31, 2021.

For the three and six months ended June 30, 2022 and 2021 , no additional income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company's effective tax rate for the year.

The Company recorded a decrease in deferred tax assets of $ 100 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 7,033 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2022.

The Company recorded a decrease in deferred tax assets of $ 153 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 763 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2021.

The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations.

As of March 31, 2022, there were $ 254 of unrecognized tax benefits that, if recognized, $ 206 would affect the effective tax rate.

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 7 and $ 1 , respectively, during the three months ended March 31, 2022.

As of June 30, 2022, there were $ 254 of unrecognized tax benefits that, if recognized, $ 206 would affect the effective tax rate.

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 8 and $ 1 , respectively, during the three months ended June 30, 2022.

Note 18 – Segment Operating Results

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Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company.

The Company's segment information for the three months ended March 31, 2022 and 2021 is prepared using the following methodology:

The Company's segment information for the three and six months ended June 30, 2022 and 2021 is prepared using the following methodology:

• Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.

3 unchanged sentences

Other Revenue, net, included in each segment's Net Revenues includes the following:

• Interest income and income (losses) on investment securities, including the Company's investment funds which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents, long-term accounts receivable and on the Company’s debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

and cash equivalents, long-term accounts receivable and on the Company’s debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full.

See Note 7 for further information.)

3 unchanged sentences

• Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

• Interest expense associated with the Company’s Notes Payable and lines of credit

3 unchanged sentences

Such administrative services include, but are not limited to, accounting, tax, legal, technology, human capital, facilities management and senior management activities.

Other Expenses includes Acquisition and Transition Costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services.

Other Expenses includes the following:

• Special Charges, Including Business Realignment Costs – Includes expenses in 2022 related to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of the Company's operations in Mexico.

• Acquisition and Transition Costs – Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services.

The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses.

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three months ended March 31, 2022.

One client accounted for more than 10% of the Company's Consolidated Net Revenues for the three months ended June 30, 2022.

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the six months ended June 30, 2022.

The following information presents each segment's contribution.

For the Three Months Ended March 31,

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Investment Banking

27 unchanged sentences

(1) Net Revenues include Other Revenue, net, allocated to the segments as follows:

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Investment Banking (A)

2 unchanged sentences

Total Other Revenue, net $ ( 27,297 ) $ 12,095 $ ( 33,326 ) $ 14,755

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $ 4,250 and $ 4,570 for the three months ended March 31, 2022 and 2021, respectively.

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $ 4,258 and $ 8,508 for the three and six months ended June 30, 2022, respectively, and $ 4,306 and $ 8,876 for the three and six months ended June 30, 2021, respectively.

(2) Other Expenses are as follows:

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Investment Banking

Special Charges, Including Business Realignment Costs $ 532 $ — $ 532 $ —

Acquisition and Transition Costs — — — 7

5 unchanged sentences

The Company's revenues were derived from clients located and managed in the following geographical areas:

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Net Revenues:

5 unchanged sentences

The Company's total assets are located in the following geographical areas:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Total Assets:

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements