What changed in this filing

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Item 1. Financial Statements

2022-11-03 compared with 2022-08-03 · 248 added, 230 removed, 856 unchanged (36% of the section changed)

1 unchanged sentence

Condensed Consolidated Financial Statements (Unaudited) Page

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

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

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021

Notes to Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

(dollars in thousands, except share data)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Current Assets

Cash and Cash Equivalents $ 473,066 $ 578,317

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)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 655,809 and $ 706,826 at September 30, 2022 and December 31, 2021, respectively)

1,313,001 1,784,639

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

Accounts Receivable (net of allowances of $ 4,352 and $ 2,704 at September 30, 2022 and December 31, 2021, respectively)

303,725 351,668

5 unchanged sentences

Operating Lease Right-of-Use Assets 240,048 263,329

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)

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 178,125 and $ 165,857 at September 30, 2022 and December 31, 2021, respectively)

145,815 148,589

Goodwill 119,812 128,246

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

Intangible Assets (net of accumulated amortization of $ 3,568 and $ 3,294 at September 30, 2022 and December 31, 2021, respectively)

Other Assets 102,169 140,539

17 unchanged sentences

Stockholders' Equity

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)

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 79,632,356 and 74,804,288 issued at September 30, 2022 and December 31, 2021, respectively, and 38,835,732 and 37,903,430 outstanding at September 30, 2022 and December 31, 2021, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 49 and 53 issued and outstanding at September 30, 2022 and December 31, 2021, respectively)

Additional Paid-In-Capital 2,808,533 2,458,779

1 unchanged sentence

Retained Earnings 1,659,479 1,418,382

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

Treasury Stock at Cost ( 40,796,624 and 36,900,858 shares at September 30, 2022 and December 31, 2021, respectively)

( 3,006,249 ) ( 2,545,452 )

8 unchanged sentences

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

40 unchanged sentences

(dollars in thousands)

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

1 unchanged sentence

Other Comprehensive Income (Loss), net of tax:

Unrealized Gain on Securities and Investments, net 304 453 307 495

Unrealized Gain (Loss) on Securities and Investments, net 1,186 ( 858 ) 1,493 ( 363 )

Foreign Currency Translation Adjustment Gain (Loss), net ( 22,597 ) ( 6,749 ) ( 44,136 ) ( 4,310 )

8 unchanged sentences

(dollars in thousands, except share data)

For the Three Months Ended June 30, 2022

For the Three Months Ended September 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

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

Net Income — — — — 82,438 — — 9,198 91,636

5 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 1,598 ) — — — — ( 6,641 ) ( 8,239 )

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

Balance at September 30, 2022 79,632,356 $ 796 $ 2,808,533 $ ( 50,794 ) $ 1,659,479 ( 40,796,624 ) $ ( 3,006,249 ) $ 176,075 $ 1,587,840

For the Nine Months Ended September 30, 2022

Additional Other

9 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 2,959 ) — — — — ( 36,021 ) ( 38,980 )

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

Balance at September 30, 2022 79,632,356 $ 796 $ 2,808,533 $ ( 50,794 ) $ 1,659,479 ( 40,796,624 ) $ ( 3,006,249 ) $ 176,075 $ 1,587,840

For the Three Months Ended September 30, 2021

Additional Other

1 unchanged sentence

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

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

Net Income — — — — 159,545 — — 29,577 189,122

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

Other Comprehensive Income (Loss) — — — ( 6,498 ) — — — ( 1,109 ) ( 7,607 )

Treasury Stock Purchases — — — — — ( 792,706 ) ( 105,147 ) — ( 105,147 )

3 unchanged sentences

Noncontrolling Interest (Note 12) — — — — — — — ( 15,054 ) ( 15,054 )

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

Balance at September 30, 2021 74,631,561 $ 746 $ 2,436,727 $ ( 13,725 ) $ 1,152,527 ( 35,546,178 ) $ ( 2,354,680 ) $ 290,643 $ 1,512,238

For the Nine Months Ended September 30, 2021

Additional Other

3 unchanged sentences

Net Income — — — — 444,256 — — 74,346 518,602

Other Comprehensive Income — — — 2,531 — — — 403 2,934

Other Comprehensive Income (Loss) — — — ( 3,967 ) — — — ( 706 ) ( 4,673 )

Treasury Stock Purchases — — — — — ( 4,101,120 ) ( 529,953 ) — ( 529,953 )

3 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 2,826 ) — — — — ( 43,718 ) ( 46,544 )

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

Balance at September 30, 2021 74,631,561 $ 746 $ 2,436,727 $ ( 13,725 ) $ 1,152,527 ( 35,546,178 ) $ ( 2,354,680 ) $ 290,643 $ 1,512,238

See Notes to Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(dollars in thousands)

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

Cash Flows From Operating Activities

Net Income $ 378,624 $ 518,602

Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration 27,305 ( 12,067 )

16 unchanged sentences

Other Liabilities ( 27,560 ) ( 129,770 )

Net Cash Provided by (Used In) Operating Activities ( 168,620 ) 114,458

Net Cash Provided by Operating Activities 157,173 529,904

Cash Flows From Investing Activities

8 unchanged sentences

Purchase of Furniture, Equipment and Leasehold Improvements ( 19,072 ) ( 23,417 )

Net Cash Provided by Investing Activities 615,595 11,968

Net Cash Provided by (Used In) Investing Activities 418,515 ( 208,228 )

Cash Flows From Financing Activities

16 unchanged sentences

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

Settlement of Contingent Consideration $ 1,083 $ —

Receipt of Equity Securities in Settlement of Accounts Receivable $ — $ 1,955

Debt Issuance Costs Accrued $ 185 $ —

See Notes to Unaudited Condensed Consolidated Financial Statements.

42 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 $ 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.

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 $ 495,876 and liabilities of $ 192,767 at September 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 and six months ended June 30, 2022 and 2021:

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

11 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 six months ended June 30, 2022 and 2021 are as follows:

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

EVERCORE INC.

1 unchanged sentence

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

For the Six Months Ended June 30, 2022

For the Nine Months Ended September 30, 2022

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 47,943 ) ( 30,723 ) 15,992 ( 8,963 ) ( 776 ) —

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

For the Six Months Ended June 30, 2021

Balance at September 30, 2022 $ 303,725 $ 57,041 $ 30,084 $ 3,982 $ 8,481 $ 147

For the Nine Months Ended September 30, 2021

(Current) (1)

8 unchanged sentences

Increase (Decrease) 29,618 6,919 53,477 5,261 ( 2,615 ) —

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

Balance at September 30, 2021 $ 397,964 $ 77,894 $ 82,804 $ 10,544 $ 6,758 $ 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 $ 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.

The Company recognized revenue of $ 6,079 and $ 16,584 on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022, respectively, and $ 13,759 and $ 21,835 for the three and nine months ended September 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 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,

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

3 unchanged sentences

Ending Balance $ 4,352 $ 3,563 $ 4,352 $ 3,563

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.

The change in the balance during the three and nine months ended September 30, 2022 is primarily related an increase in the Company's reserve for credit losses and 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 June 30, 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 $ 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.

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 $ 1,097 and $ 8,208 for the three and nine months ended September 30, 2022, respectively, and $ 2,635 and $ 26,050 for the three and nine months ended September 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 $ 19,519 and $ 20,397 as of September 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 June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022 December 31, 2021

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

September 30, 2022 December 31, 2021

Losses Fair Value Cost Gross

7 unchanged sentences

Total Investment Securities and Certificates of Deposit $ 1,313,001 $ 1,784,639

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

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

September 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 June 30, 2022 and has not recorded a credit allowance on these securities.

As such, the Company does not consider these securities to be impaired at September 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 ) for the six months ended June 30, 2022 and ($ 11 ) for the six months ended June 30, 2021.

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

The Company had net realized and unrealized gains (losses) of ($ 131 ) and ($ 579 ) for the three and nine months ended September 30, 2022, respectively, and ($ 520 ) and $ 1,340 for the three and nine months ended September 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 $ 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.

The Company had net realized and unrealized gains of $ 1,013 and $ 1,541 for the three and nine months ended September 30, 2022, respectively, and $ 26 and $ 17 for the three and nine months ended September 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 ($ 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.

The Company had net realized and unrealized gains (losses) of ($ 7,454 ) and ($ 38,970 ) for the three and nine months ended September 30, 2022, respectively, and ($ 195 ) and $ 15,807 for the three and nine months ended September 30, 2021, respectively.

Certificates of Deposit

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.

At September 30, 2022 and December 31, 2021, the Company held certificates of deposit of $ 138,701 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 June 30, 2022 and December 31, 2021 was as follows:

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

EVERCORE INC.

1 unchanged sentence

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

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

ABS $ 18,679 $ 40,977

8 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 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.

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

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

This investment resulted in earnings of $ 1,043 and $ 3,413 for the three and nine months ended September 30, 2022, respectively, and $ 2,234 and $ 6,724 for the three and nine months ended September 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 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.

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

This investment resulted in earnings of $ 533 and $ 2,411 for the three and nine months ended September 30, 2022, respectively, and $ 883 and $ 2,093 for the three and nine months ended September 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 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.

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

This investment resulted in earnings of $ 397 and $ 787 for the three and nine months ended September 30, 2022, respectively, and $ 564 and $ 1,282 for the three and nine months ended September 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 $ 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 resulted in earnings of $ 54 and $ 202 for the three and nine months ended September 30, 2022, 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 Brazilian real to the U.S.

4 unchanged sentences

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 June 30, 2022 and 2021 and $ 158 for each of the six months ended June 30, 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 September 30, 2022 and 2021 and $ 237 for each of the nine months ended September 30, 2022 and 2021.

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

6 unchanged sentences

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, 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 June 30, 2022 and December 31, 2021 was as follows:

June 30, 2022 December 31, 2021

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

September 30, 2022 December 31, 2021

Glisco II, Glisco III and Glisco IV $ 3,474 $ 3,479

1 unchanged sentence

Total Private Equity Funds $ 6,175 $ 15,689

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.

Net realized and unrealized gains (losses) on private equity fund investments were $ 308 and $ 244 for the three and nine months ended September 30, 2022, respectively, and ($ 460 ) and ($ 438 ) for the three and nine months ended September 30, 2021, respectively.

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

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 .

As of September 30, 2022, $ 658 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 (see "Investment in Trilantic Capital Partners" below).

Consideration for this transaction was received in December 2021 and was reflected in Cash and Cash Equivalents and Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition at December 31, 2021.

1 unchanged sentence

General Partners of Private Equity Funds which are VIEs

Following the Glisco transaction, the Company concluded that Glisco Capital Partners II, Glisco Capital Partners III and Glisco Manager Holdings LP are VIEs and that the Company is not the primary beneficiary of these VIEs.

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

EVERCORE INC.

1 unchanged sentence

(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.

The Company has concluded that Glisco Capital Partners II, Glisco Capital Partners III and Glisco Manager Holdings LP are VIEs and that the Company is not the primary beneficiary of these VIEs.

Neither the Company nor its 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 $ 3,225 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 had assets of $ 3,107 and $ 3,408 included in its Unaudited Condensed Consolidated Statements of Financial Condition at September 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 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.

The Company's maximum exposure to loss as of September 30, 2022 and December 31, 2021 was $ 5,395 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.

Investment in Trilantic Capital Partners

During the third quarter of 2021, consistent with the Company's investment strategy, the Company decided to wind down its investment relationship with Trilantic.

Accordingly, the Company wrote-off the remaining carrying value of its investment in Trilantic Capital Partners as of September 30, 2021, as well as certain amounts allocated to fund investments exceeding net asset value at September 30, 2021.

As a result, the Company recorded an aggregate charge of $ 8,554 within Special Charges, Including Business Realignment Costs, for the three and nine months ended September 30, 2021.

See above in "Investments in Private Equity" for further information.

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 $ 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.

These investments, which had a balance of $ 557 and $ 676 as of September 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 June 30, 2022 and had a balance of $ 221 as of December 31, 2021.

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

Note 8 – Leases

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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 $ 12,769 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.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 13,148 and $ 38,757 for the three and nine months ended September 30, 2022, respectively, and $ 12,563 and $ 37,063 for the three and nine months ended September 30, 2021, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses, of $ 1,781 and $ 5,425 for the three and nine months ended September 30, 2022, respectively, and $ 1,502 and $ 5,120 for the three and nine months ended September 30, 2021, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,621 and $ 5,616 as of September 30, 2022 and December 31, 2021, respectively, 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 $ 1,258 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.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,205 and $ 3,706 for the three and nine months ended September 30, 2022, respectively, and $ 1,332 and $ 3,983 for the three and nine months ended September 30, 2021, respectively.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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 $ 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.

The Company incurred net operating cash outflows of $ 44,718 and $ 31,714 for the nine months ended September 30, 2022 and 2021, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 867 and $ 8,924 for the nine months ended September 30, 2022 and 2021, respectively.

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 4,538 $ 1,657 $ 11,743 $ 15,665

June 30, 2022 June 30, 2021

September 30, 2022 September 30, 2021

Weighted-average remaining lease term - operating leases 10.6 years 11.2 years

Weighted-average discount rate - operating leases 3.91 % 4.00 %

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

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

2022 (October 1 through December 31) $ 14,829

Thereafter 216,924

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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 $ 230,009 as of June 30, 2022.

The additional future payments under these arrangements are $ 230,552 as of September 30, 2022.

Note 9 – Fair Value Measurements

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Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment.

Investments with readily-available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments with readily-available active quoted prices, or for which fair value can be measured from actively

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following categories:

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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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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.

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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

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

September 30, 2022

Level 1 Level 2 Level 3 Total

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Other Debt and Equity Securities 658,029 — — 658,029

469,187 — — 469,187

Investment Funds 127,021 — — 127,021

7 unchanged sentences

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

(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.

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

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)

June 30, 2022

September 30, 2022

Carrying Estimated Fair Value

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

As of September 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.

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 nine months ended September 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 June 30, 2022, the Company was in compliance with all of these covenants.

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

2022 Private Placement Notes

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

EVERCORE INC.

1 unchanged sentence

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

2022 Private Placement Notes

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.

2 unchanged sentences

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:

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

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

Carrying Value (a)

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

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

Evercore Inc.

29 unchanged sentences

Stockholders' Equity

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.

Dividends – The Company's Board of Directors declared on October 25, 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 November 25, 2022, which will be paid on December 9, 2022.

During the three and nine months ended September 30, 2022, the Company declared and paid dividends of $ 0.72 and $ 2.12 per share, respectively, totaling $ 28,052 and $ 83,739 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $ 2,883 and $ 11,245 , respectively.

The Company also paid deferred cash dividends of $ 166 and $ 15,347 during the three and nine months ended September 30, 2022, respectively.

During the three and nine months ended September 30, 2021, the Company declared and paid dividends of $ 0.68 and $ 1.97 per share, respectively, totaling $ 26,656 and $ 79,584 , respectively, and accrued deferred cash dividends on unvested RSUs totaling $ 3,622 and $ 10,718 , respectively.

The Company also paid deferred cash dividends of $ 126 and $ 12,338 during the three and nine months ended September 30, 2021, respectively.

Treasury Stock – During the three months ended September 30, 2022, the Company purchased 17 Class A Shares from employees at an average cost per share of $ 93.64 , primarily for the net settlement of stock-based compensation awards, and 319 Class A Shares at an average cost per share of $ 98.98 pursuant to the Company's share repurchase program.

The aggregate 336 Class A Shares were purchased at an average cost per share of $ 98.71 , and the result of these purchases was an increase in Treasury Stock of $ 33,162 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

EVERCORE INC.

1 unchanged sentence

(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.

During the nine months ended September 30, 2022, the Company purchased 988 Class A Shares from employees at an average cost per share of $ 127.41 , primarily for the net settlement of stock-based compensation awards, and 2,908 Class A Shares at an average cost per share of $ 115.18 pursuant to the Company's share repurchase program.

The aggregate 3,896 Class A Shares were purchased at an average cost per share of $ 118.28 , and the result of these purchases was an increase in Treasury Stock of $ 460,797 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

LP Units – During the three and nine months ended September 30, 2022, 1 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 nine months ended September 30, 2022, and an increase to Additional Paid-In-Capital of $ 47 and $ 159,328 for the three and nine months ended September 30, 2022, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

See Note 12 for further information.

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.

Accumulated Other Comprehensive Income (Loss) – As of September 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 ($ 4,185 ) and ($ 46,609 ), 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.

September 30,

Evercore LP 6 % 11 %

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The Noncontrolling Interests for Evercore LP and EWM have rights, in certain circumstances, to convert into Class A Shares.

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

See Note 13 for further information.

During the period January 1, 2023 through December 31, 2023, the Company has the option to purchase, at fair value, a portion of the outstanding EWM Class A Units such that the noncontrolling interest holders would continue to hold no less than 25 % of the outstanding units following the transaction.

1 unchanged sentence

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 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:

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

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

EVERCORE INC.

1 unchanged sentence

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

11 unchanged sentences

Ending balance $ 176,075 $ 290,643 $ 176,075 $ 290,643

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.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of $ 109 and $ 137 for the three and nine months ended September 30, 2022, respectively, and ($ 125 ) and ($ 57 ) for the three and nine months ended September 30, 2021, respectively, and foreign currency translation adjustment gains (losses), net, of ($ 2,097 ) and ($ 4,072 ) for the three and nine months ended September 30, 2022, respectively, and ($ 984 ) and ($ 649 ) for the three and nine months ended September 30, 2021, respectively.

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

3 unchanged sentences

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.

During the three and nine months ended September 30, 2022, an aggregate of 1 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 $ 47 and $ 159,354 for the three and nine months ended September 30, 2022, respectively, an increase to Additional-Paid-In-Capital of $ 47 and $ 159,328 for the three and nine months ended September 30, 2022, respectively, and an increase to Class A Common Stock of $ 26 for the nine months ended September 30, 2022 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 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.

Interests Issued – During the first and third quarter of 2021, certain employees of EWM purchased EWM Class A Units, at fair value, resulting in an increase to Noncontrolling Interest of $ 975 and $ 200 , respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

During the third quarter of 2021, certain employees of RECA purchased Class R Interests of Private Capital Advisory L.P., at fair value, resulting in an increase to Noncontrolling Interest of $ 872 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

EVERCORE INC.

1 unchanged sentence

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

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.

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 June 30, 2021.

Interests Purchased – During the third quarter of 2022, the Company purchased, at fair value, an additional 0.5 % of the EWM Class A Units for $ 1,706 , which was settled in cash during the three months ended September 30, 2022.

This purchase resulted in a decrease to Noncontrolling Interest of $ 108 and a decrease to Additional-Paid-In-Capital of $ 1,598 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

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 nine months ended September 30, 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 settled in cash during the nine months ended September 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 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.

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

The Company settled $ 1,083 of the contingent consideration at fair value, which is included within Other Current Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022 and is expected to be paid during the fourth quarter of 2022.

The fair value of the remaining contingent consideration is $ 7,442 and $ 20,587 as of September 30, 2022 and December 31, 2021, 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.

For the three and nine months ended September 30, 2022, the Company recognized a reversal of expense of $ 8,784 and $ 12,062 , 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 and six months ended June 30, 2022 and 2021 are described and presented below.

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

EVERCORE INC.

1 unchanged sentence

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

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(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.

During the three and nine months ended September 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 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.

common shareholders if the effect would have been dilutive were 2,650 and 3,078 for the three and nine months ended September 30, 2022, respectively, and 4,840 and 4,871 for the three and nine months ended September 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 $ 6,123 and $ 32,853 for the three and nine months ended September 30, 2022, respectively, and $ 19,925 and $ 54,096 for the three and nine months ended September 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, I and K LP Units will result in a dilutive computation in future periods.

EVERCORE INC.

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

prevailing corporate tax rates.

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

(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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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 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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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 .

Compensation expense related to this award was $ 753 for the nine months ended September 30, 2022 and $ 1,130 and $ 3,495 for the three and nine months ended September 30, 2021, respectively .

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

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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 market conditions, defined benchmark results and continued service through December 31, 2025.

As this award contains market, performance and service conditions, the expense for this award will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance and service conditions.

As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition.

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 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.

Distributions pursuant to these interests were made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for 2021.

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

The Company determined the grant date fair value of these awards probable to vest as of September 30, 2022 to be $ 97,717 , related to 912 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 $ 5,403 and $ 17,179 for the three and nine months ended September 30, 2022, respectively, and $ 1,816 and $ 5,557 for the three and nine months ended September 30, 2021, respectively.

In October 2022, the Company’s Board of Directors approved the issuance of 60 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 market conditions, defined benchmark results and continued service through June 30, 2027.

As this award contains market, performance and service conditions, the expense for

EVERCORE INC.

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this award will be recognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition.

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.

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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 total shares available to be granted in the future under the Second Amended 2016 Plan was 7,772 as of September 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 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.

During the nine months ended September 30, 2022, pursuant to the above Stock Incentive Plans, the Company granted employees 2,952 RSUs that are Service-based Awards.

Service-based Awards granted during the nine months ended September 30, 2022 had grant date fair values of $ 93.03 to $ 137.59 per share, with an average value of $ 123.97 per share, for an aggregate fair value of $ 365,908 , and generally vest ratably over four years .

During the nine months ended September 30, 2022, 2,250 Service-based Awards vested and 151 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 63,385 and $ 191,229 for the three and nine months ended September 30, 2022, respectively, and $ 52,578 and $ 162,341 for the three and nine months ended September 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 $ 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 June 30, 2022.

Compensation expense related to the Company's deferred cash compensation program was $ 30,040 and $ 89,025 for the three and nine months ended September 30, 2022, respectively, and $ 31,576 and $ 97,322 for the three and nine months ended

EVERCORE INC.

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(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.

September 30, 2021, respectively.

As of September 30, 2022, the Company expects to pay an aggregate of $ 292,137 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 $ 166,054 .

The weighted-average period over which this compensation cost is expected to be recognized is 23 months.

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.

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.

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

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.

Compensation expense related to other deferred cash awards was $ 3,139 and $ 12,466 for the three and nine months ended September 30, 2022, respectively, and $ 2,555 and $ 8,076 for the three and nine months ended September 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 $ 48,333 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.

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,259 of current liabilities and $ 72,307 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of September 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 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).

In conjunction with this plan, the Company distributed cash payments of $ 3,940 in the nine months ended September 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 $ 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 .

The Company recorded $ 16,152 and $ 45,414 of compensation expense for the three and nine months ended September 30, 2022, respectively, and $ 16,877 and $ 29,979 for the three and nine months ended September 30, 2021, respectively.

As of September 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 $ 3,042 .

As of September 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 $ 177,594 .

Employee Loans Receivable

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Periodically, the Company provides new and existing employees with cash payments in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements ranging from one to five years and in certain circumstances, subject to the achievement of performance requirements.

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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 $ 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.

Compensation expense related to these awards was $ 8,229 and $ 21,668 for the three and nine months ended September 30, 2022, respectively, and $ 7,279 and $ 17,725 for the three and nine months ended September 30, 2021, respectively.

The remaining unamortized amount of these awards was $ 41,558 as of September 30, 2022.

Separation and Transition Benefits

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,

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

For the Nine Months Ended September 30,

Beginning Balance $ 675 $ 4,589

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Ending Balance $ 208 $ 2,482

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.

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 $ 641 and $ 1,335 for the three and nine months ended September 30, 2022, respectively, (related to 17 RSUs) and $ 486 and $ 2,434 for the three and nine months ended September 30, 2021, respectively, (related to 34 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 June 30, 2022, the Company had unfunded commitments for capital contributions of $ 2,704 to private equity funds.

Private Equity – As of September 30, 2022, the Company had unfunded commitments for capital contributions of $ 2,693 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 June 30, 2022.

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

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

The Company and its consolidated subsidiaries were in compliance with these covenants as of September 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 .

Drawings under this facility bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date was extended to October 28, 2023.

Drawings under this facility bear interest at

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date was extended to October 28, 2023.

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 June 30, 2022.

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

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

EGL amended this facility on October 31, 2022 such that, among other things, the interest rate provisions were Daily SOFR plus 191 basis points and the maturity date was extended to October 27, 2024.

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The remaining contingent consideration has a fair value of $ 7,442 as of September 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.

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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.

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

The contingent consideration was fully paid as of September 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:

September 30,

Cash and Cash Equivalents $ 473,066 $ 478,819

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In addition, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees.

In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be.

Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company.

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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 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.

EGL's regulatory net capital as of September 30, 2022 and December 31, 2021 was $ 388,286 and $ 660,032 , respectively, which exceeded the minimum net capital requirement by $ 388,036 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 June 30, 2022.

These subsidiaries are in excess of their local capital adequacy requirements at September 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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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.

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 September 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 Company's Provision for Income Taxes was $ 40,790 and $ 114,134 for the three and nine months ended September 30, 2022, respectively, and $ 59,712 and $ 137,871 for the three and nine months ended September 30, 2021, respectively.

The effective tax rate was 30.8 % and 23.2 % for the three and nine months ended September 30, 2022, respectively, and 24.0 % and 21.0 % for the three and nine months ended September 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 $ 19,657 and $ 17,422 being recognized in the Company's Provision for Income Taxes for the nine months ended September 30, 2022 and 2021, respectively, and resulted in a reduction in the effective tax rate of 4.0 and 2.7 percentage points for the nine months ended September 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 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.

For the three and nine months ended September 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 $ 485 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 14,722 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2022.

The Company recorded an increase in deferred tax assets of $ 111 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 1,345 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 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 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.

As of September 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 $ 10 and $ 1 , respectively, during the three months ended September 30, 2022.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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 and six months ended June 30, 2022 and 2021 is prepared using the following methodology:

The Company's segment information for the three and nine months ended September 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:

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.

• 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.

See Note 7 for further information.)

10 unchanged sentences

• 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.

Includes expenses in 2021 related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's investment strategy, the Company decided to wind down during the third quarter.

• 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.

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.

EVERCORE INC.

1 unchanged sentence

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

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

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 and nine months ended September 30, 2022.

The following information presents each segment's contribution.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

12 unchanged sentences

Operating Expenses 12,939 13,571 39,520 37,832

Operating Income 2,004 4,353 7,639 7,809

Other Expenses (2)

— 8,554 — 8,554

Operating Income (Loss) 3,480 ( 5,488 ) 11,119 2,321

Income from Equity Method Investments 1,576 3,117 5,824 8,817

Pre-Tax Income $ 4,114 $ 7,198 $ 11,887 $ 13,509

Pre-Tax Income (Loss) $ 5,056 $ ( 2,371 ) $ 16,943 $ 11,138

Identifiable Segment Assets $ 164,905 $ 174,435 $ 164,905 $ 174,435

3 unchanged sentences

Other Expenses (2)

— 8,554 532 8,561

Operating Income 130,399 245,153 485,945 646,374

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

3 unchanged sentences

Total Other Revenue, net $ ( 4,825 ) $ ( 2,882 ) $ ( 38,151 ) $ 11,873

(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.

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $ 4,188 and $ 12,696 for the three and nine months ended September 30, 2022, respectively, and $ 4,393 and $ 13,269 for the three and nine months ended September 30, 2021, respectively.

(2) Other Expenses are as follows:

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

4 unchanged sentences

Investment Management

Special Charges, Including Business Realignment Costs — 8,554 — 8,554

Total Investment Management — 8,554 — 8,554

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2022 2021 2022 2021

6 unchanged sentences

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

June 30, 2022 December 31, 2021

September 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