What changed in this filing

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Item 1. Financial Statements

2023-08-03 compared with 2023-05-05 · 292 added, 234 removed, 774 unchanged (40% of the section changed)

1 unchanged sentence

Condensed Consolidated Financial Statements (Unaudited) Page

Condensed Consolidated Statements of Financial Condition as of March 31, 202 3 and December 31, 202 2

Condensed Consolidated Statements of Operations for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Financial Condition as of June 3 0 , 2023 and December 31, 2022

Condensed Consolidated Statements of Operations for the three and six months ended June 3 0 , 2023 and 2022

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 2023 and 2022

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 3 0 , 2023 and 2022

Condensed Consolidated Statements of Cash Flows for the six months ended June 3 0 , 2023 and 2022

Notes to Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

(dollars in thousands, except share data)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Current Assets

Cash and Cash Equivalents $ 520,631 $ 663,400

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 117,508 and $ 802,652 at March 31, 2023 and December 31, 2022, respectively)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 328,994 and $ 802,652 at June 30, 2023 and December 31, 2022, respectively)

962,121 1,432,716

Accounts Receivable (net of allowances of $ 7,217 and $ 4,683 at March 31, 2023 and December 31, 2022, respectively)

Accounts Receivable (net of allowances of $ 8,712 and $ 4,683 at June 30, 2023 and December 31, 2022, respectively)

322,819 385,131

5 unchanged sentences

Operating Lease Right-of-Use Assets 374,742 237,561

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 194,413 and $ 187,077 at March 31, 2023 and December 31, 2022, respectively)

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 201,647 and $ 187,077 at June 30, 2023 and December 31, 2022, respectively)

143,468 143,268

19 unchanged sentences

Stockholders' Equity

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 81,836,929 and 79,686,375 issued at March 31, 2023 and December 31, 2022, respectively, and 38,345,235 and 38,347,262 outstanding at March 31, 2023 and December 31, 2022, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 51 and 50 issued and outstanding at March 31, 2023 and December 31, 2022, respectively)

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 81,914,589 and 79,686,375 issued at June 30, 2023 and December 31, 2022, respectively, and 37,886,311 and 38,347,262 outstanding at June 30, 2023 and December 31, 2022, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 45 and 50 issued and outstanding at June 30, 2023 and December 31, 2022, respectively)

Additional Paid-In-Capital 3,011,969 2,861,775

1 unchanged sentence

Retained Earnings 1,823,412 1,768,098

Treasury Stock at Cost ( 43,491,694 and 41,339,113 shares at March 31, 2023 and December 31, 2022, respectively)

Treasury Stock at Cost ( 44,028,278 and 41,339,113 shares at June 30, 2023 and December 31, 2022, respectively)

( 3,410,153 ) ( 3,065,917 )

8 unchanged sentences

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

For the Three Months Ended March 31,

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

2023 2022 2023 2022

Investment Banking & Equities:

38 unchanged sentences

(dollars in thousands)

For the Three Months Ended March 31,

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

2023 2022 2023 2022

Net Income $ 42,161 $ 109,894 $ 134,402 $ 286,988

11 unchanged sentences

(dollars in thousands, except share data)

For the Three Months Ended March 31, 2023

For the Three Months Ended June 30, 2023

Additional Other

1 unchanged sentence

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

Balance at March 31, 2023 81,836,929 $ 818 $ 2,931,682 $ ( 25,683 ) $ 1,819,599 ( 43,491,694 ) $ ( 3,350,483 ) $ 193,278 $ 1,569,211

Net Income — — — — 37,205 — — 4,956 42,161

Other Comprehensive Income — — — 5,291 — — — 498 5,789

Treasury Stock Purchases — — — — — ( 536,584 ) ( 59,670 ) — ( 59,670 )

Evercore LP Units Exchanged for Class A Common Stock 21,303 — 1,407 — — — — ( 1,296 ) 111

Equity-based Compensation Awards 56,357 1 80,724 — — — — 6,175 86,900

Dividends — — — — ( 33,392 ) — — — ( 33,392 )

Noncontrolling Interest (Note 12) — — ( 1,844 ) — — — — ( 4,686 ) ( 6,530 )

Balance at June 30, 2023 81,914,589 $ 819 $ 3,011,969 $ ( 20,392 ) $ 1,823,412 ( 44,028,278 ) $ ( 3,410,153 ) $ 198,925 $ 1,604,580

For the Six Months Ended June 30, 2023

Additional Other

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

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

Balance at December 31, 2022 79,686,375 $ 797 $ 2,861,775 $ ( 27,942 ) $ 1,768,098 ( 41,339,113 ) $ ( 3,065,917 ) $ 189,607 $ 1,726,418

6 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 1,844 ) — — — — ( 15,076 ) ( 16,920 )

Balance at June 30, 2023 81,914,589 $ 819 $ 3,011,969 $ ( 20,392 ) $ 1,823,412 ( 44,028,278 ) $ ( 3,410,153 ) $ 198,925 $ 1,604,580

For the Three Months Ended June 30, 2022

Additional Other

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

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

Balance at 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

For the Three Months Ended March 31, 2022

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

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

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

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

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

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

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

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

For the Six Months Ended June 30, 2022

Additional Other

9 unchanged sentences

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

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

See Notes to Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(dollars in thousands)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Cash Flows From Operating Activities

34 unchanged sentences

Distributions to Noncontrolling Interests ( 15,651 ) ( 32,541 )

Payment of Notes Payable — ( 67,000 )

Issuance of Notes Payable — 67,000

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

Purchase of Treasury Stock and Noncontrolling Interests ( 348,264 ) ( 457,068 )

9 unchanged sentences

Accrued Dividends $ 8,659 $ 8,362

Amounts Due for Purchase of Noncontrolling Interest $ — $ 1,448

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

Debt Issuance Costs Accrued $ — $ 185

See Notes to Unaudited Condensed Consolidated Financial Statements.

8 unchanged sentences

The Company also provides restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers.

In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on secondary transactions for private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests.

In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on partnerships and private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests.

The Investment Banking & Equities segment also includes the equities business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.

7 unchanged sentences

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2022.

The December 31, 2022 Unaudited Condensed Consolidated Statement of Financial Condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S.

The December 31, 2022 Unaudited Condensed Consolidated Statements of Financial Condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S.

Operating results for interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023.

21 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 $ 291,905 and liabilities of $ 144,272 at March 31, 2023 and assets of $ 584,192 and liabilities of $ 247,884 at December 31, 2022.

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 $ 354,842 and liabilities of $ 174,350 at June 30, 2023 and assets of $ 584,192 and liabilities of $ 247,884 at December 31, 2022.

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

Note 3 – Recent Accounting Pronouncements

The Company did not adopt any new accounting standards that had a material impact on the Company's unaudited condensed consolidated financial statements during the three months ended March 31, 2023.

The Company did not adopt any new accounting standards that had a material impact on the Company's unaudited condensed consolidated financial statements during the three and six months ended June 30, 2023.

The Company continues to monitor recently issued accounting standards to assess the impact on our unaudited condensed consolidated financial statements.

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three months ended March 31, 2023 and 2022:

For the Three Months Ended March 31,

The following table presents revenue recognized by the Company for the three and six months ended June 30, 2023 and 2022:

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

2023 2022 2023 2022

Investment Banking & Equities:

10 unchanged sentences

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

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the three months ended March 31, 2023 and 2022 are as follows:

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the six months ended June 30, 2023 and 2022 are as follows:

EVERCORE INC.

1 unchanged sentence

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

For the Three Months Ended March 31, 2023

For the Six Months Ended June 30, 2023

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 62,312 ) ( 375 ) ( 57,514 ) 9,910 957 —

Balance at March 31, 2023 $ 299,157 $ 70,161 $ 13,963 $ 11,897 $ 5,944 $ —

For the Three Months Ended March 31, 2022

Balance at June 30, 2023 $ 322,819 $ 63,764 $ 52,954 $ 17,938 $ 6,028 $ —

For the Six Months Ended June 30, 2022

(Current) (1)

8 unchanged sentences

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

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

Balance at June 30, 2022 $ 317,990 $ 63,346 $ 65,269 $ 1,538 $ 9,623 $ 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 $ 3,547 and $ 4,208 on the Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022, 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 $ 4,643 and $ 8,190 on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023, respectively, and $ 6,297 and $ 10,505 for the three and six months ended June 30, 2022, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

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

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

The allowance for credit losses for the three months ended March 31, 2023 and 2022 is as follows:

For the Three Months Ended March 31,

The allowance for credit losses for the three and six months ended June 30, 2023 and 2022 is as follows:

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

2023 2022 2023 2022

Beginning Balance $ 7,217 $ 2,054 $ 4,683 $ 2,704

2 unchanged sentences

Ending Balance $ 8,712 $ 1,447 $ 8,712 $ 1,447

The change in the balance during the three months ended March 31, 2023 is primarily related an increase in the Company's reserve for credit losses and the write-off of aged receivables.

The change in the balance during the three and six months ended June 30, 2023 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 March 31, 2023, by year of origination:

EVERCORE INC.

5 unchanged sentences

Note 5 – Related Parties

Advisory Fees includes 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 $ 1,668 and $ 2,860 for the three months ended March 31, 2023 and 2022, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 14,354 and $ 16,928 as of March 31, 2023 and December 31, 2022, respectively.

Advisory Fees includes fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $ 2,209 and $ 3,877 for the three and six months ended June 30, 2023, respectively, and $ 4,251 and $ 7,111 for the three and six months ended June 30, 2022, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 16,866 and $ 16,928 as of June 30, 2023 and December 31, 2022, respectively.

See Note 14 for further information.

Note 6 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of March 31, 2023 and December 31, 2022 were as follows:

March 31, 2023 December 31, 2022

Losses Fair Value Cost Gross

Losses Fair Value

The Company's Investment Securities and Certificates of Deposit as of June 30, 2023 and December 31, 2022 were as follows:

June 30, 2023 December 31, 2022

Debt Securities $ 328,991 $ 807,135

2 unchanged sentences

Investment Funds 153,618 136,718

Total Investment Securities (carried at fair value) $ 757,963 $ 1,992 $ 3,761 $ 756,194 $ 1,311,377 $ 6,828 $ 8,379 $ 1,309,826

Certificates of Deposit (carried at contract value) 46,948 122,890

Total Investment Securities, at fair value $ 907,741 $ 1,309,826

Certificates of Deposit, at contract value 54,380 122,890

Total Investment Securities and Certificates of Deposit $ 962,121 $ 1,432,716

Scheduled maturities of the Company's available-for-sale debt securities as of March 31, 2023 and December 31, 2022 were as follows:

March 31, 2023 December 31, 2022

Debt Securities

Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Unaudited Condensed Consolidated Statements of Financial Condition.

These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Unaudited Condensed Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, on a specific identification basis.

Gross unrealized gains included in Accumulated Other Comprehensive Income (Loss) were $ 45 and $ 193 for the three and six months ended June 30, 2023, respectively, and $ 342 and $ 348 for the three and six months ended June 30, 2022, respectively.

Gross unrealized losses included in Accumulated Other Comprehensive Income (Loss) were ($ 193 ) for the three and six months ended June 30, 2023 and ($ 6 ) and ($ 23 ) for the three and six months ended June 30, 2022, respectively.

Gross realized losses included within Other Revenue, Including Interest and Investments, were ($ 110 ) and ($ 261 ) for the three and six months ended June 30, 2023, respectively, and ($ 34 ) for the six months ended June 30, 2022.

Proceeds from the sales and maturities of available-for-sale securities, including interest, were $ 244,605 and $ 1,243,992 for the three and six months ended June 30, 2023, respectively, and $ 56,918 and $ 763,711 for the three and six months ended June 30, 2022, respectively.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Scheduled maturities of the Company's available-for-sale debt securities as of June 30, 2023 and December 31, 2022 were as follows:

June 30, 2023 December 31, 2022

Cost Fair Value Amortized

6 unchanged sentences

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

As such, the Company does not consider these securities to be impaired at March 31, 2023 and has not recorded a credit allowance on these securities.

Debt Securities

Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Unaudited Condensed Consolidated Statements of Financial Condition.

These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Unaudited Condensed

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized losses of ($ 151 ) and ($ 34 ) for the three months ended March 31, 2023 and 2022, respectively.

As such, the Company does not consider these securities to be impaired at June 30, 2023 and has not recorded a credit allowance on these securities.

Equity Securities

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

The Company had net realized and unrealized gains of $ 163 and $ 11 for the three months ended March 31, 2023 and 2022, respectively.

The Company had net unrealized gains (losses) of $ 60 and $ 223 for the three and six months ended June 30, 2023, respectively, and ($ 459 ) and ($ 448 ) for the three and six months ended June 30, 2022, 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 of $ 6 and $ 21 for the three months ended March 31, 2023 and 2022, respectively.

The Company had net realized and unrealized gains of $ 12 and $ 18 for the three and six months ended June 30, 2023, respectively, and $ 507 and $ 528 for the three and six months ended June 30, 2022, 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 $ 9,441 and ($ 5,163 ) for the three months ended March 31, 2023 and 2022, respectively.

The Company had net realized and unrealized gains (losses) of $ 11,615 and $ 21,056 for the three and six months ended June 30, 2023, respectively, (of which $ 11,570 and $ 16,250 , respectively, were net unrealized gains) and ($ 26,353 ) and ($ 31,516 ) for the three and six months ended June 30, 2022, respectively, (of which ($ 26,932 ) and ($ 47,216 ), respectively, were net unrealized losses).

Certificates of Deposit

At March 31, 2023 and December 31, 2022, the Company held certificates of deposit of $ 46,948 and $ 122,890 , respectively, with certain banks with original maturities of four months or less when purchased.

At June 30, 2023 and December 31, 2022, the Company held certificates of deposit of $ 54,380 and $ 122,890 , respectively, with certain banks with original maturities of four months or less when purchased.

Note 7 – Investments

4 unchanged sentences

The Company also has investments in private equity partnerships which consist of investment interests in private equity funds which are voting interest entities.

Realized and unrealized gains and losses on private equity investments are included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

Realized and unrealized gains and losses on private equity investments are included

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of March 31, 2023 and December 31, 2022 was as follows:

March 31, 2023 December 31, 2022

A summary of the Company's investments accounted for under the equity method of accounting as of June 30, 2023 and December 31, 2022 was as follows:

June 30, 2023 December 31, 2022

ABS $ 17,712 $ 19,387

3 unchanged sentences

Total $ 35,551 $ 36,902

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company has an investment accounted for under the equity method of accounting in ABS.

At June 30, 2023, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,064 and $ 2,070 for the three and six months ended June 30, 2023, respectively, and $ 1,171 and $ 2,370 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

In January 2022, the Company entered into an agreement to sell a portion of its interest in ABS.

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

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

At March 31, 2023, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,006 and $ 1,199 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

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

Atalanta Sosnoff

The Company has an investment accounted for under the equity method of accounting in Atalanta Sosnoff.

At March 31, 2023, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 391 and $ 939 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2023, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 335 and $ 726 for the three and six months ended June 30, 2023, respectively, and $ 939 and $ 1,878 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company has an investment accounted for under the equity method of accounting in Luminis.

At March 31, 2023, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 162 and $ 288 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2023, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 135 and $ 297 for the three and six months ended June 30, 2023, respectively, and $ 102 and $ 390 for the three and six months ended June 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 Australian dollar to the U.S.

2 unchanged sentences

The Company has an investment accounted for under the equity method of accounting in Seneca Evercore.

At March 31, 2023, the Company's ownership interest in Seneca Evercore was 20 %.

This investment resulted in earnings (losses) of ($ 91 ) and $ 86 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2023, the Company's ownership interest in Seneca Evercore was 20 %.

This investment resulted in earnings (losses) of $ 8 and ($ 83 ) for the three and six months ended June 30, 2023, respectively, and $ 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 Statements of Operations.

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

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 for each of the three months ended March 31, 2023 and 2022.

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, 2023 and 2022 and $ 158 for each of the six months ended June 30, 2023 and 2022.

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

10 unchanged sentences

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

A summary of the Company's investments in the private equity funds as of March 31, 2023 and December 31, 2022 was as follows:

March 31, 2023 December 31, 2022

A summary of the Company's investments in the private equity funds as of June 30, 2023 and December 31, 2022 was as follows:

June 30, 2023 December 31, 2022

Glisco II, Glisco III and Glisco IV $ 3,990 $ 3,602

1 unchanged sentence

Total Private Equity Funds $ 5,837 $ 5,541

Net realized and unrealized gains (losses) on private equity fund investments were $ 322 and ($ 83 ) for the three months ended March 31, 2023 and 2022, respectively.

Net realized and unrealized gains (losses) on private equity fund investments were $ 318 and $ 640 for the three and six months ended June 30, 2023, respectively, and $ 19 and ($ 64 ) for the three and six months ended June 30, 2022, respectively.

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

As of March 31, 2023, $ 400 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 .

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.

This transaction closed on January 1, 2022 and as of that date, the Company has no further commitments to invest in Trilantic VI.

As of June 30, 2023, $ 353 of previously distributed carried interest received from the funds was subject to repayment.

General Partners of Private Equity Funds which are VIEs

3 unchanged sentences

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

The Company had assets of $ 3,297 and $ 3,166 included in its Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2023 and December 31, 2022, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company had assets of $ 3,430 and $ 3,166 included in its Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2023 and December 31, 2022, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

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

The Company's maximum exposure to loss as of March 31, 2023 and December 31, 2022 was $ 5,480 and $ 5,385 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

The Company's maximum exposure to loss as of June 30, 2023 and December 31, 2022 was $ 5,613 and $ 5,385 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

Other Investments

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

These investments, which had a balance of $ 616 and $ 604 as of March 31, 2023 and December 31, 2022, 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 $ 635 and $ 604 as of June 30, 2023 and December 31, 2022, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Note 8 – Leases

4 unchanged sentences

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 $ 13,428 and $ 12,840 for the three months ended March 31, 2023 and 2022, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $ 1,186 and $ 1,900 for the three months ended March 31, 2023 and 2022, respectively.

In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York.

The Company took possession of this space in January 2023.

The approximate additional annual expense under this lease agreement, net of certain lease incentives, is $ 2,300 and the lease term will end on December 31, 2035.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,664 and $ 5,637 as of March 31, 2023 and December 31, 2022, respectively, 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 $ 14,069 and $ 27,497 for the three and six months ended June 30, 2023, respectively, and $ 12,769 and $ 25,609 for the three and six months ended June 30, 2022, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $ 1,703 and $ 2,889 for the three and six months ended June 30, 2023, respectively, and $ 1,744 and $ 3,644 for the three and six months ended June 30, 2022, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,693 and $ 5,637 as of June 30, 2023 and December 31, 2022, 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 $ 1,450 and $ 1,243 for the three months ended March 31, 2023 and 2022, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,335 and $ 2,785 for the three and six months ended June 30, 2023, respectively, and $ 1,258 and $ 2,501 for the three and six months ended June 30, 2022, respectively.

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

2 unchanged sentences

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

The Company incurred net operating cash outflows of $ 15,561 and $ 14,811 for the three months ended March 31, 2023 and 2022, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 332 for the three months ended March 31, 2022.

The Company incurred net operating cash outflows of $ 27,953 and $ 30,201 for the six months ended June 30, 2023 and 2022, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 621 and $ 332 for the six months ended June 30, 2023 and 2022, respectively.

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

For the Three Months Ended March 31,

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

2023 2022 2023 2022

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 137,722 $ 1,585 $ 157,629 $ 7,192

March 31, 2023 March 31, 2022

June 30, 2023 June 30, 2022

Weighted-average remaining lease term - operating leases 11.0 years 10.7 years

Weighted-average discount rate - operating leases 4.44 % 3.91 %

As of March 31, 2023, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2023 (April 1 through December 31) $ 35,013

In May 2023, the Company's lease for certain floors at 55 East 52nd St., New York, New York commenced.

The lease term will end on December 31, 2035.

New Right-of-Use Assets obtained in exchange for new operating lease liabilities above for the three and six months ended June 30, 2023 includes $ 135,602 related to this space.

In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York.

The Company's lease of this space commenced in January 2023 and the lease term will end on December 31, 2035.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

As of June 30, 2023, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2023 (July 1 through December 31) $ 22,372

Thereafter 361,326

8 unchanged sentences

These spaces will have lease terms of 1 to 13 years once the Company has taken possession.

The additional future payments under these arrangements are $ 227,387 as of March 31, 2023.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The additional future payments under these arrangements are $ 36,669 as of June 30, 2023.

Note 9 – Fair Value Measurements

10 unchanged sentences

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

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

March 31, 2023

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, 2023 and December 31, 2022:

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

June 30, 2023

Level 1 Level 2 Level 3 Total

12 unchanged sentences

Total Assets Measured At Fair Value $ 1,317,765 $ — $ — $ 1,317,765

(1) Includes $ 8,143 and $ 7,939 of treasury bills classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2023 and December 31, 2022, respectively.

(1) Includes $ 8,318 and $ 7,939 of treasury bills classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2023 and December 31, 2022, respectively.

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

5 unchanged sentences

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

March 31, 2023

June 30, 2023

Carrying Estimated Fair Value

34 unchanged sentences

On March 30, 2016, the Company issued an aggregate of $ 170,000 of senior notes, including:

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

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

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

5 unchanged sentences

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

As of March 31, 2023, the Company was in compliance with all of these covenants.

As of June 30, 2023, the Company was in compliance with all of these covenants.

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

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

2019 Private Placement Notes

6 unchanged sentences

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

As of March 31, 2023, the Company was in compliance with all of these covenants.

As of June 30, 2023, the Company was in compliance with all of these covenants.

2021 Private Placement Notes

3 unchanged sentences

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

As of March 31, 2023, the Company was in compliance with all of these covenants.

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.

As of June 30, 2023, 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

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

1 unchanged sentence

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 March 31, 2023, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of March 31, 2023 and December 31, 2022:

As of June 30, 2023, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of June 30, 2023 and December 31, 2022:

Carrying Value (1)

Note Maturity Date Effective Annual Interest Rate March 31, 2023 December 31, 2022

Note Maturity Date Effective Annual Interest Rate June 30, 2023 December 31, 2022

Evercore Inc.

26 unchanged sentences

Stockholders' Equity

Dividends – On April 25, 2023, the Company's Board of Directors declared a quarterly cash dividend of $ 0.76 per share to the holders of record of shares of Class A common stock ("Class A Shares") as of May 26, 2023, which will be paid on June 9, 2023.

During the three months ended March 31, 2023, the Company declared and paid dividends of $ 0.72 per share, totaling $ 27,672 , and accrued deferred cash dividends on unvested restricted stock units ("RSUs"), totaling $ 4,205 .

During the three months ended March 31, 2023, the Company also paid deferred cash dividends of $ 13,521 .

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

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

Treasury Stock – During the three months ended March 31, 2023, the Company purchased 915 Class A Shares from employees at an average cost per share of $ 131.79 , primarily for the net settlement of stock-based compensation awards, and 1,238 Class A Shares at an average cost per share of $ 132.50 pursuant to the Company's share repurchase program.

The aggregate 2,153 Class A Shares were purchased at an average cost per share of $ 132.20 , and the result of these purchases was an increase in Treasury Stock of $ 284,566 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023.

LP Units – During the three months ended March 31, 2023, 24 Evercore LP partnership units ("LP Units") were exchanged for Class A Shares, resulting in an increase to Additional Paid-In-Capital of $ 1,478 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023.

See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of March 31, 2023, 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 ($ 5,413 ) and ($ 20,270 ), respectively.

Dividends – On July 25, 2023, the Company's Board of Directors declared a quarterly cash dividend of $ 0.76 per share to the holders of record of shares of Class A common stock ("Class A Shares") as of August 25, 2023, which will be paid on September 8, 2023.

During the three and six months ended June 30, 2023, the Company declared and paid dividends of $ 0.76 and $ 1.48 per share, respectively, totaling $ 28,938 and $ 56,610 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $ 4,454 and $ 8,659 , respectively.

The Company also paid deferred cash dividends of $ 148 and $ 13,669 during the three and six months ended June 30, 2023, respectively.

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 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.

Treasury Stock – During the three months ended June 30, 2023, the Company purchased 21 Class A Shares from employees at an average cost per share of $ 109.04 , primarily for the net settlement of stock-based compensation awards, and 516 Class A Shares at an average cost per share of $ 111.29 pursuant to the Company's share repurchase program.

The aggregate 537 Class A Shares were purchased at an average cost per share of $ 111.20 and the result of these purchases was an increase in Treasury Stock of $ 59,670 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023.

EVERCORE INC.

1 unchanged sentence

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

During the six months ended June 30, 2023, the Company purchased 937 Class A Shares from employees at an average cost per share of $ 131.27 , primarily for the net settlement of stock-based compensation awards, and 1,752 Class A Shares at an average cost per share of $ 126.27 pursuant to the Company's share repurchase program.

The aggregate 2,689 Class A Shares were purchased at an average cost per share of $ 128.01 and the result of these purchases was an increase in Treasury Stock of $ 344,236 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023.

LP Units – During the three and six months ended June 30, 2023, 21 and 45 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in an increase to Additional Paid-In-Capital of $ 1,296 and $ 2,774 for the three and six months ended June 30, 2023, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023.

See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of June 30, 2023, 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 ($ 5,417 ) and ($ 14,975 ), respectively.

Note 12 – Noncontrolling Interest

2 unchanged sentences

Noncontrolling ownership interests for the Company's subsidiaries were as follows:

As of March 31,

As of June 30,

Evercore LP (1)

2 unchanged sentences

For further information see " LP Units Exchanged" below.

(2) Noncontrolling Interests represent a blended rate for multiple classes of interests in EWM.

(2) Noncontrolling Interests as of June 30, 2022 represent a blended rate for multiple classes of interests in EWM.

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

4 unchanged sentences

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

As of March 31, 2023, the EWM members held 25 % of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three months ended March 31, 2023 and 2022 were as follows:

As of June 30, 2023, the EWM members held 26 % of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three and six months ended June 30, 2023 and 2022 were as follows:

EVERCORE INC.

1 unchanged sentence

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

For the Three Months Ended March 31,

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

2023 2022 2023 2022

Beginning balance $ 193,278 $ 177,632 $ 189,607 $ 314,910

10 unchanged sentences

Ending balance $ 198,925 $ 170,150 $ 198,925 $ 170,150

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($ 283 ) for the three months ended March 31, 2023, and foreign currency translation adjustment gains (losses), net, of $ 499 and ($ 273 ) for the three months ended March 31, 2023 and 2022, respectively.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($ 283 ) for the six months ended June 30, 2023 and $ 28 for the three and six months ended June 30, 2022, and foreign currency translation adjustment gains (losses), net, of $ 498 and $ 997 for the three and six months ended June 30, 2023, respectively, and ($ 1,702 ) and ($ 1,975 ) for the three and six months ended June 30, 2022, 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 months ended March 31, 2023, 24 LP Units were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 1,478 and an increase to Additional-Paid-In-Capital of $ 1,478 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023.

During the three and six months ended June 30, 2023, 21 and 45 LP Units, respectively, were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 1,296 and $ 2,774 for the three and six months ended June 30, 2023, respectively, and an increase to Additional-Paid-In-Capital of $ 1,296 and $ 2,774 for the three and six months ended June 30, 2023, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023.

See Note 11 for further information.

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

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

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

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

The Company paid $ 715 of this contingent cash consideration during the three months ended March 31, 2023.

The fair value of the remaining contingent consideration is $ 5,122 as of March 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $ 6,119 as of December 31, 2022, $ 1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated

Interests Purchased – During the second quarter of 2023, the Company purchased, at fair value, an additional 0.7 % of the EWM Class A Units for $ 2,002 .

This purchase resulted in a decrease to Noncontrolling Interest of $ 158 and a decrease to Additional-Paid-In-Capital of $ 1,844 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023.

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.

EVERCORE INC.

1 unchanged sentence

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

Statements of Financial Condition.

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 is due to be settled in early 2024.

The Company paid $ 715 of this contingent cash consideration during the six months ended June 30, 2023.

The fair value of the remaining contingent consideration is $ 2,577 as of June 30, 2023, $ 2,159 of which is included within Payable to Employees and Related Parties and the remainder of which is included within Other Current Liabilities on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $ 6,119 as of December 31, 2022, $ 1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statements of Financial Condition.

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

Changes in the fair value of contingent consideration are included within Other Operating Expenses on the Unaudited Condensed Consolidated Statements of Operations.

The decline in the fair value of contingent consideration reduced Other Operating Expenses by $ 2,545 and $ 2,459 for the three and six months ended June 30, 2023, respectively, and $ 2,701 and $ 3,278 for the three and six months ended June 30, 2022, respectively, on the Unaudited Condensed Consolidated Statements of Operations.

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.

5 unchanged sentences

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

common shareholders for the three months ended March 31, 2023 and 2022 are described and presented below.

For the Three Months Ended March 31,

common shareholders for the three and six months ended June 30, 2023 and 2022 are described and presented below.

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,

2023 2022 2023 2022

Basic Net Income Per Share Attributable to Evercore Inc.

17 unchanged sentences

Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method (2)

1,029 1,146 1,419 1,631

Shares that are contingently issuable (3)

48 128 84 257

Diluted weighted average Class A Shares outstanding 39,288 41,108 39,863 41,395

2 unchanged sentences

(1) The Company has outstanding Class A, E, I and 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 months ended March 31, 2023 and 2022, these 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 six months ended June 30, 2023 and 2022, these 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 2,756 and 3,943 for the three months ended March 31, 2023 and 2022, 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 $ 6,986 and $ 15,066 for the three months ended March 31, 2023 and

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

2022, respectively.

common shareholders if the effect would have been dilutive were 2,815 and 2,785 for the three and six months ended June 30, 2023, respectively, and 2,656 and 3,296 for the three and six months ended June 30, 2022, 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 $ 2,918 and $ 9,905 for the three and six months ended June 30, 2023, respectively, and $ 11,664 and $ 26,731 for the three and six months ended June 30, 2022, 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.

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

(2) During the three months ended March 31, 2023 and 2022, certain shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method, 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.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

(2) During the three and six months ended June 30, 2023 and 2022, certain shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method, 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 shares that would have been included in the treasury stock method calculation if the effect would have been dilutive were 2,239 and 2,165 for the three months ended March 31, 2023 and 2022, respectively.

The shares that would have been included in the treasury stock method calculation if the effect would have been dilutive were 3,080 and 1,775 for the three and six months ended June 30, 2023, respectively, and 3,188 and 2,183 for the three and six months ended June 30, 2022, respectively.

(3) 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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Note 14 – Share-Based and Other Deferred Compensation

Evercore LP Units

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

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

Compensation expense related to this award was $ 753 for the three months ended March 31, 2022 .

Compensation expense related to this award was $ 753 for the six months ended June 30, 2022 .

Class K-P Units – The Company has awarded the following Class K-P Units:

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In February 2023, the first tranche of 120 Class K-P Units converted into 193 Class K LP Units upon the achievement of certain performance and service conditions.

The second tranche of these Class K-P Units may convert into a maximum of 173 Class K LP Units, contingent upon the achievement of defined benchmark results and continued service as described above.

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

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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 may convert into a maximum of 800 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service as described above.

• In December 2022, the Company awarded 200 Class K-P Units to an employee of the Company.

These Class K-P Units are segregated into four tranches of 50 Class K-P Units each.

The first three tranches 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

The first three tranches 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 and continued service through February 28, 2025, 2026 and 2027, respectively, while the final tranche converts into a number of Class K LP Units (which are exchangeable

EVERCORE INC.

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

upon the achievement of certain market conditions and continued service through February 28, 2025, 2026 and 2027, respectively, while the final tranche converts 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 relating to the employee's business and continued service through February 28, 2028.

on a one -for-one basis to Class A Shares) contingent and based upon the achievement of certain market conditions, defined benchmark results relating to the employee's business and continued service through February 28, 2028.

These Class K-P Units in the aggregate may convert into a maximum of 1,293 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service, as described above.

The Company determined the grant date fair value of these awards probable to vest as of March 31, 2023 to be $ 99,519 , related to 896 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 $ 6,407 and $ 5,468 for the three months ended March 31, 2023 and 2022, respectively.

Class L Interests – In April 2021 and January 2022, 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 and 2023, respectively.

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 and 2022, respectively.

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

In January 2023, the Company's Board of Directors approved the issuance of 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 2024.

Distributions pursuant to these interests are anticipated to be 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 2023.

These Class K-P Units may convert into a maximum of 320 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service as described above.

• In June 2023, the Company awarded 60 Class K-P Units to an employee of the Company.

These 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 this award will be recognized over the service period 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 may convert into 60 Class K LP Units contingent upon the achievement of certain market conditions and continued service, while additional units may be received in conversion based on a multiple of certain revenues earned.

The Company determined the grant date fair value of these awards probable to vest as of June 30, 2023 to be $ 108,833 , related to 980 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 $ 6,127 and $ 12,534 for the three and six months ended June 30, 2023, respectively, and $ 6,308 and $ 11,776 for the three and six months ended June 30, 2022, respectively.

Class L Interests – In April 2021, January 2022 and January 2023, 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 receive a discretionary distribution of profits from Evercore LP, paid in the first quarters of 2022, 2023 and 2024, respectively.

Distributions pursuant to these interests are 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, 2022 and 2023, respectively.

Following the distributions in 2021 and 2022, the Class L Interests were cancelled pursuant to their terms.

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

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Stock Incentive Plan.

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

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

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

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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 5,196 as of March 31, 2023.

The total shares available to be granted in the future under the Second Amended 2016 Plan was 5,114 as of June 30, 2023.

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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A change in estimated forfeitures is recognized through a cumulative adjustment in the period of the change.

Equity Grants

During the three months ended March 31, 2023, pursuant to the Second Amended 2016 Plan, the Company granted employees 2,393 RSUs that are Service-based Awards.

Service-based Awards granted during the three months ended March 31,

EVERCORE INC.

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

2023 had grant date fair values of $ 129.08 to $ 136.02 per share, with an average value of $ 136.02 per share, for an aggregate fair value of $ 325,447 , and generally vest ratably over four years .

During the three months ended March 31, 2023, 2,061 Service-based Awards vested and 34 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 66,488 and $ 60,247 for the three months ended March 31, 2023 and 2022, respectively.

Equity Grants

During the six months ended June 30, 2023, pursuant to the Second Amended 2016 Plan, the Company granted employees 2,420 RSUs that are Service-based Awards.

Service-based Awards granted during the six months ended June 30, 2023 had grant date fair values of $ 107.89 to $ 136.02 per share, with an average value of $ 135.81 per share, for an aggregate fair value of $ 328,596 , and generally vest ratably over four years .

During the six months ended June 30, 2023, 2,133 Service-based Awards vested and 63 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 79,307 and $ 145,795 for the three and six months ended June 30, 2023, respectively, and $ 67,597 and $ 127,844 for the three and six months ended June 30, 2022, respectively.

Deferred Cash

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The Company granted $ 162,748 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of 2023.

Compensation expense related to the Company's deferred cash compensation program was $ 39,762 and $ 30,537 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, the Company expects to pay an aggregate of $ 352,179 related to the Company's deferred cash compensation program at various dates through 2027 and total compensation expense not yet recognized related to these awards was $ 278,795 .

Compensation expense related to the Company's deferred cash compensation program was $ 42,905 and $ 82,667 for the three and six months ended June 30, 2023, respectively, and $ 28,448 and $ 58,985 for the three and six months ended June 30, 2022, respectively.

As of June 30, 2023, the Company expects to pay an aggregate of $ 366,278 related to the Company's deferred cash compensation program at various dates through 2027 and total compensation expense not yet recognized related to these awards was $ 249,640 .

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

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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 $ 4,328 and $ 4,820 for the three months ended March 31, 2023 and 2022, respectively.

Compensation expense related to other deferred cash awards was $ 2,424 and $ 6,752 for the three and six months ended June 30, 2023, respectively, and $ 4,507 and $ 9,327 for the three and six months ended June 30, 2022, 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", which ended on December 31, 2020) 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).

The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan, the Company distributed cash payments of $ 48,331 in the three months ended March 31, 2023, $ 3,940 in the three months ended March 31, 2022 and $ 92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 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).

Amounts due pursuant to the 2021 Long-term Incentive Plan of $ 100,855 are included within Other Long-Term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023 and are due to be paid in cash or Class A Shares, at the Company's discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment.

The Company's Long-term Incentive Plans provide 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", which ended on December 31, 2020) 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).

The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan, the Company distributed cash payments of $ 48,331 in the six months ended June 30, 2023, $ 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 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).

Amounts due pursuant to the 2021 Long-term Incentive Plan of $ 110,916 are included within Other Long-Term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023 and are due to be paid in cash or Class A Shares, at the Company's discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment.

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 compensation expense related to the 2017 Long-term Incentive Plan and 2021 Long-term Incentive Plan of $ 12,640 and $ 15,285 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, 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 $ 149,280 .

The Company recorded compensation expense related to the 2017 Long-term Incentive Plan and 2021 Long-term Incentive Plan of $ 9,616 and

EVERCORE INC.

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

$ 22,256 for the three and six months ended June 30, 2023, respectively, and $ 13,977 and $ 29,262 for the three and six months ended June 30, 2022, respectively.

As of June 30, 2023, 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 $ 132,276 .

Employee Loans Receivable

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

Compensation expense related to these awards was $ 4,646 and $ 5,452 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, the total compensation cost not yet recognized related to these awards was $ 34,274 .

Compensation expense related to these awards was $ 7,069 and $ 11,715 for the three and six months ended June 30, 2023, respectively, and $ 7,987 and $ 13,439 for the three and six months ended June 30, 2022, respectively.

As of June 30, 2023, the total compensation cost not yet recognized related to these awards was $ 35,181 .

Separation and Transition Benefits

The following table presents the change in the Company's liability related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") for the three months ended March 31, 2023 and 2022:

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Beginning Balance $ 4,997 $ 675

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Ending Balance $ 336 $ 479

In addition to the above Termination Costs incurred, for the three months ended March 31, 2023 and 2022, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 564 and $ 414 , respectively, (related to 6 and 7 RSUs, respectively) recorded in Employee Compensation and Benefits, within the Investment Banking & Equities 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 $ 1,694 and $ 2,258 for the three and six months ended June 30, 2023, respectively, (related to 20 RSUs) and $ 280 and $ 694 for the three and six months ended June 30, 2022, respectively, (related to 10 RSUs) recorded in Employee Compensation and Benefits, within the Investment Banking & Equities 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, 2022.

Private Equity – As of March 31, 2023, the Company had unfunded commitments for capital contributions of $ 2,592 to private equity funds.

Private Equity – As of June 30, 2023, the Company had unfunded commitments for capital contributions of $ 2,592 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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Lines of Credit – Evercore Partners Services East L.L.C.

("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility in an aggregate principal amount, as amended on October 29, 2021, (the "Existing PNC Facility"), of up to $ 30,000 , to be used for working capital and other corporate activities.

("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $ 30,000 (the "Existing PNC Facility") to be used for working capital and other corporate activities.

This facility is secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable.

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

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2023.

The interest rate provisions are LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date is October 28, 2023.

There were no drawings under this facility at March 31, 2023.

East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October 29, 2021, of up to $ 55,000 , to be used for working capital and other corporate activities.

This facility is unsecured.

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

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2023.

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2023.

The interest rate provisions are Daily SOFR plus 161 basis points and the maturity date is October 27, 2024.

There were no drawings under this facility at June 30, 2023.

EVERCORE INC.

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

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

East entered into an additional loan agreement with PNC for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $ 55,000 to be used for working capital and other corporate activities.

This facility is unsecured.

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, 2023.

The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 27, 2024.

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

There were no drawings under this facility at March 31, 2023.

EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount, as amended on October 31, 2022, of up to $ 75,000 , to be used as needed in support of capital requirements from time to time of EGL.

There were no drawings under this facility at June 30, 2023.

EGL entered into a subordinated revolving credit facility with PNC, as amended on October 31, 2022, 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.

This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 27, 2024.

There were no drawings under this facility at March 31, 2023.

There were no drawings under this facility at June 30, 2023.

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

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

The Company paid $ 715 of this contingent cash consideration during the three months ended March 31, 2023.

The Company paid $ 715 of this contingent cash consideration during the six months ended June 30, 2023.

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 also maintains stop-loss insurance for its medical plan to provide coverage for claims over a defined financial threshold.

The Company recorded a liability of $ 3,530 during the quarter ended March 31, 2023 related to the estimated present value of incurred but not reported claims, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition.

The estimated present value of incurred but not reported claims is $ 3,530 as of June 30, 2023, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition.

Foreign Exchange – Periodically, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.

The Company entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30,000 British Pounds sterling for $ 36,903 , which will settle during the third quarter of 2023.

The contract is recorded at its fair value of $ 205 as of March 31, 2023, and is included within Other Current Assets on the Unaudited Condensed Consolidated Statement of Financial Condition.

Contingencies

In the normal course of business, from time to time, the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including

The contract is recorded at its fair value of $ 1,204 as of June 30, 2023, and is included within Other Current Assets on the Unaudited Condensed Consolidated Statement of Financial Condition.

EVERCORE INC.

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

contractual and employment matters.

Contingencies

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.

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

EGL's regulatory net capital as of March 31, 2023 and December 31, 2022 was $ 465,198 and $ 274,131 , respectively, which exceeded the minimum net capital requirement by $ 464,948 and $ 273,881 , respectively.

EGL's regulatory net capital as of June 30, 2023 and December 31, 2022 was $ 410,056 and $ 274,131 , respectively, which exceeded the minimum net capital requirement by $ 409,806 and $ 273,881 , respectively.

Certain other non-U.S.

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

These subsidiaries are in excess of their local capital adequacy requirements at March 31, 2023.

These subsidiaries are in excess of their local capital adequacy requirements at June 30, 2023.

Evercore Trust Company, N.A.

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

The Company was in compliance with the aforementioned agreements as of March 31, 2023.

The Company was in compliance with the aforementioned agreements as of June 30, 2023.

Note 17 – Income Taxes

The Company's Provision for Income Taxes was $ 16,131 and $ 34,782 for the three months ended March 31, 2023 and 2022, respectively.

The effective tax rate was 14.9 % and 16.4 % for the three months ended March 31, 2023 and 2022, respectively.

The effective tax rate reflects the recognition of net excess tax benefits associated with appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of $ 13,731 and $ 19,036 for the three months ended March 31, 2023 and 2022, respectively, which resulted in a reduction in the effective tax rate of 12.7 and 9.0 percentage points for the three months ended March 31, 2023 and 2022, respectively.

The effective tax rate for the three months ended March 31, 2023 and 2022 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.

The Company's Provision for Income Taxes was $ 17,097 and $ 33,228 for the three and six months ended June 30, 2023, respectively, and $ 38,562 and $ 73,344 for the three and six months ended June 30, 2022, respectively.

The effective tax rate was 28.9 % and 19.8 % for the three and six months ended June 30, 2023, respectively, and 26.0 % and 20.4 % for the three and six months ended June 30, 2022, respectively.

The effective tax rate reflects the recognition of net excess tax benefits associated with appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of $ 13,809 and $ 19,782 for the six months ended June 30, 2023 and 2022, respectively, which resulted in a reduction in the effective tax rate of 8.2 and 5.5 percentage points for the six months ended June 30, 2023 and 2022, respectively.

The effective tax rate for 2023 and 2022 also reflects the effect of certain nondeductible expenses, including expenses related to Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

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

For the three months ended March 31, 2023 and 2022, 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 an increase in deferred tax assets of $ 1,022 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 1,809 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the three months ended March 31, 2023.

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

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

As of March 31, 2023, there were $ 359 of unrecognized tax

For the three and six months ended June 30, 2023 and 2022, 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 an increase in deferred tax assets of $ 1,023 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 3,741 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2023.

The Company recorded a decrease in deferred tax assets of $ 100 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an

EVERCORE INC.

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

benefits that, if recognized, $ 292 would affect the effective tax rate.

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 15 and $ 1 , respectively, during the three months ended March 31, 2023.

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 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, 2023, there were $ 359 of unrecognized tax benefits that, if recognized, $ 292 would affect the effective tax rate.

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 31 and $ 1 , respectively, during the three months ended June 30, 2023.

Note 18 – Segment Operating Results

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

The Company's segment information for the three months ended March 31, 2023 and 2022 is prepared using the following methodology:

The Company's segment information for the three and six months ended June 30, 2023 and 2022 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.

13 unchanged sentences

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

Other Expenses includes Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico.

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

EVERCORE INC.

1 unchanged sentence

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

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three months ended March 31, 2023 and 2022.

Other Expenses relate to Special Charges, Including Business Realignment Costs, which include the following:

• 2023 – Other Expenses for the six months ended June 30, 2023 include expenses related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico

• 2022 – Other Expenses for the three and six months ended June 30, 2022 include expenses 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 wind-down of the Company's operations in Mexico

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 six months ended June 30, 2023.

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

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

The following information presents each segment's contribution.

For the Three Months Ended March 31,

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

2023 2022 2023 2022

Investment Banking & Equities

23 unchanged sentences

Identifiable Segment Assets $ 3,051,444 $ 3,011,488 $ 3,051,444 $ 3,011,488

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

For the Three Months Ended March 31,

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

2023 2022 2023 2022

Investment Banking & Equities (A)

2 unchanged sentences

Total Other Revenue, net $ 20,040 $ ( 27,297 ) $ 42,715 $ ( 33,326 )

(A) Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $ 4,171 and $ 4,250 for the three months ended March 31, 2023 and 2022, respectively.

(A) Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $ 4,181 and $ 8,352 for the three and six months ended June 30, 2023, respectively, and $ 4,258 and $ 8,508 for the three and six months ended June 30, 2022, respectively.

Geographic Information – The Company manages its business based on the profitability of the enterprise as a whole.

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

For the Three Months Ended March 31,

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

2023 2022 2023 2022

Net Revenues:

5 unchanged sentences

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

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

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