What changed in this filing

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Item 1. Financial Statements

2024-08-02 compared with 2024-05-08 · 286 added, 227 removed, 748 unchanged (41% of the section changed)

1 unchanged sentence

Condensed Consolidated Financial Statements (Unaudited) Page

Condensed Consolidated Statements of Financial Condition as of March 31, 202 4 and December 31, 20 23

Condensed Consolidated Statements of Operations for the three months ended March 31, 202 4 and 202 3

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 202 4 and 202 3

Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 202 4 and 202 3

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 202 4 and 202 3

Condensed Consolidated Statements of Financial Condition as of June 3 0 , 2024 and December 31, 2023

Condensed Consolidated Statements of Operations for the three and six months ended June 3 0 , 2024 and 2023

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 2024 and 2023

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 3 0 , 2024 and 2023

Condensed Consolidated Statements of Cash Flows for the six months ended June 3 0 , 2024 and 2023

Notes to Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

(dollars in thousands, except share data)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Current Assets

Cash and Cash Equivalents $ 631,619 $ 596,878

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 185,420 and $ 744,178 at March 31, 2024 and December 31, 2023, respectively)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 306,272 and $ 744,178 at June 30, 2024 and December 31, 2023, respectively)

1,059,783 1,436,883

Accounts Receivable (net of allowances of $ 4,758 and $ 5,603 at March 31, 2024 and December 31, 2023, respectively)

Accounts Receivable (net of allowances of $ 4,991 and $ 5,603 at June 30, 2024 and December 31, 2023, respectively)

361,119 371,606

5 unchanged sentences

Operating Lease Right-of-Use Assets 359,624 378,128

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 218,793 and $ 212,929 at March 31, 2024 and December 31, 2023, respectively)

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 225,304 and $ 212,929 at June 30, 2024 and December 31, 2023, respectively)

134,588 137,940

19 unchanged sentences

Stockholders' Equity

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 84,342,335 and 82,114,009 issued at March 31, 2024 and December 31, 2023, respectively, and 38,514,750 and 37,773,613 outstanding at March 31, 2024 and December 31, 2023, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 45 and 46 issued and outstanding at March 31, 2024 and December 31, 2023, respectively)

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 84,435,812 and 82,114,009 issued at June 30, 2024 and December 31, 2023, respectively, and 38,317,884 and 37,773,613 outstanding at June 30, 2024 and December 31, 2023, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 46 issued and outstanding at both June 30, 2024 and December 31, 2023, respectively)

Additional Paid-In Capital 3,331,726 3,163,198

1 unchanged sentence

Retained Earnings 1,984,130 1,892,656

Treasury Stock at Cost ( 45,827,585 and 44,340,396 shares at March 31, 2024 and December 31, 2023, respectively)

Treasury Stock at Cost ( 46,117,928 and 44,340,396 shares at June 30, 2024 and December 31, 2023, respectively)

( 3,770,688 ) ( 3,453,203 )

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,

2024 2023 2024 2023

Investment Banking & Equities:

20 unchanged sentences

Income Before Income Taxes 110,100 59,258 196,545 167,630

Provision (Benefit) for Income Taxes ( 6,679 ) 16,131

Provision for Income Taxes 28,367 17,097 21,688 33,228

Net Income 81,733 42,161 174,857 134,402

15 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,

2024 2023 2024 2023

Net Income $ 81,733 $ 42,161 $ 174,857 $ 134,402

11 unchanged sentences

(dollars in thousands, except share data)

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Additional Other

1 unchanged sentence

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

Balance at March 31, 2024 84,342,335 $ 843 $ 3,245,225 $ ( 29,762 ) $ 1,945,012 ( 45,827,585 ) $ ( 3,716,500 ) $ 203,454 $ 1,648,272

Net Income — — — — 73,758 — — 7,975 81,733

Other Comprehensive Income (Loss) — — — ( 739 ) — — — ( 66 ) ( 805 )

Treasury Stock Purchases — — — — — ( 290,343 ) ( 54,188 ) — ( 54,188 )

Evercore LP Units Exchanged for Class A Common Stock 34,635 — 3,115 — — — — ( 2,507 ) 608

Equity-based Compensation Awards 58,842 1 84,355 — — — — 9,479 93,835

Dividends — — — — ( 34,640 ) — — — ( 34,640 )

Noncontrolling Interest (Note 12) — — ( 969 ) — — — — ( 6,320 ) ( 7,289 )

Balance at June 30, 2024 84,435,812 $ 844 $ 3,331,726 $ ( 30,501 ) $ 1,984,130 ( 46,117,928 ) $ ( 3,770,688 ) $ 212,015 $ 1,727,526

For the Six Months Ended June 30, 2024

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, 2023 82,114,009 $ 821 $ 3,163,198 $ ( 26,538 ) $ 1,892,656 ( 44,340,396 ) $ ( 3,453,203 ) $ 205,556 $ 1,782,490

6 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 969 ) — — — — ( 15,758 ) ( 16,727 )

Balance at June 30, 2024 84,435,812 $ 844 $ 3,331,726 $ ( 30,501 ) $ 1,984,130 ( 46,117,928 ) $ ( 3,770,688 ) $ 212,015 $ 1,727,526

For the Three 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 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

For the Three Months Ended March 31, 2023

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

9 unchanged sentences

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

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

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

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

31 unchanged sentences

Cash Flows From Financing Activities

Issuance of Noncontrolling Interests 85 733

Distributions to Noncontrolling Interests ( 15,973 ) ( 15,651 )

31 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, 2023.

The December 31, 2023 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, 2023 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, 2024.

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, Evercore Canada and Evercore Hong Kong assets of $ 384,221 and liabilities of $ 128,097 at March 31, 2024 and assets of $ 466,588 and liabilities of $ 224,263 at December 31, 2023.

The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing, Evercore Canada and Evercore Hong Kong assets of $ 422,821 and liabilities of $ 156,842 at June 30, 2024 and assets of $ 466,588 and liabilities of $ 224,263 at December 31, 2023.

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

13 unchanged sentences

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three months ended March 31, 2024 and 2023:

The following table presents revenue recognized by the Company for the three and six months ended June 30, 2024 and 2023:

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,

2024 2023 2024 2023

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, 2024 and 2023 are as follows:

For the Three Months Ended March 31, 2024

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the six months ended June 30, 2024 and 2023 are as follows:

For the Six Months Ended June 30, 2024

(Current) (1)

6 unchanged sentences

Increase (Decrease) ( 10,487 ) ( 6,568 ) ( 24,073 ) ( 2,937 ) 2,292

Balance at March 31, 2024 $ 331,739 $ 85,258 $ 28,612 $ 8,661 $ 5,464

For the Three Months Ended March 31, 2023

Balance at June 30, 2024 $ 361,119 $ 87,121 $ 61,328 $ 2,908 $ 5,816

For the Six Months Ended June 30, 2023

(Current) (1)

6 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

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

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

4 unchanged sentences

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

The Company recognized revenue of $ 4,865 and $ 3,547 on the Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, 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 Company recognized revenue of $ 5,484 and $ 10,349 on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024, respectively, and $ 4,643 and $ 8,190 for the three and six months ended June 30, 2023, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

EVERCORE INC.

1 unchanged sentence

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

The allowance for credit losses for the three months ended March 31, 2024 and 2023 is as follows:

For the Three Months Ended March 31,

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

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

The allowance for credit losses for the three and six months ended June 30, 2024 and 2023 is as follows:

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

2024 2023 2024 2023

Beginning Balance $ 4,758 $ 7,217 $ 5,603 $ 4,683

2 unchanged sentences

Ending Balance $ 4,991 $ 8,712 $ 4,991 $ 8,712

The change in the balance during the three months ended March 31, 2024 is primarily related to a decrease 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, 2024 is primarily related to 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, 2024, by year of origination:

The following table presents the Company’s long-term accounts receivable and long-term contract assets primarily from the Company's private and secondary fund advisory businesses as of June 30, 2024, by year of origination:

Amortized Carrying Value by Origination Year

2 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 $ 811 and $ 1,668 for the three months ended March 31, 2024 and 2023, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 19,852 and $ 21,186 as of March 31, 2024 and December 31, 2023, 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 $ 923 and $ 1,734 for the three and six months ended June 30, 2024, respectively, and $ 2,209 and $ 3,877 for the three and six months ended June 30, 2023, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 18,773 and $ 21,186 as of June 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 were as follows:

March 31, 2024 December 31, 2023

The Company's Investment Securities and Certificates of Deposit as of June 30, 2024 and December 31, 2023 were as follows:

June 30, 2024 December 31, 2023

Debt Securities $ 306,254 $ 744,315

5 unchanged sentences

Total Investment Securities and Certificates of Deposit $ 1,059,783 $ 1,436,883

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.

1 unchanged sentence

(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, on a specific identification basis.

Gross unrealized gains included in Accumulated Other Comprehensive Income (Loss) were $ 4 and $ 148 for the three months ended March 31, 2024 and 2023, respectively.

Gross unrealized losses included in Accumulated Other Comprehensive Income (Loss) were ($ 149 ) for the three months ended March 31, 2024.

Gross realized losses included within Other Revenue, Including Interest and Investments, were ($ 47 ) and ($ 151 ) for the three months ended March 31, 2024 and 2023, respectively.

Proceeds from the sales and maturities of available-for-sale securities, including interest, were $ 747,511 and $ 999,387 for the three months ended March 31, 2024 and 2023, respectively.

Scheduled maturities of the Company's available-for-sale debt securities as of March 31, 2024 and December 31, 2023 were as follows:

March 31, 2024 December 31, 2023

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 $ 25 and $ 141 as of June 30, 2024 and December 31, 2023, respectively.

Gross unrealized losses included in Accumulated Other Comprehensive Income (Loss) were ($ 43 ) and ($ 4 ) as of June 30, 2024 and December 31, 2023, respectively.

Net unrealized gains (losses) included in Other Comprehensive Income were ($ 12 ) and ($ 157 ) for the three and six months ended June 30, 2024, respectively, and ($ 148 ) for the three months ended June 30, 2023.

Gross realized losses included within Other Revenue, Including Interest and Investments, were ($ 47 ) for the six months ended June 30, 2024 and ($ 110 ) and ($ 261 ) for the three and six months ended June 30, 2023, respectively.

Proceeds from the sales and maturities of available-for-sale securities, including interest, were $ 747,511 for the six months ended June 30, 2024 and $ 244,605 and $ 1,243,992 for the three and six months ended June 30, 2023, respectively.

Scheduled maturities of the Company's available-for-sale debt securities as of June 30, 2024 and December 31, 2023 were as follows:

June 30, 2024 December 31, 2023

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, 2024 and has not recorded a credit allowance on these securities.

As such, the Company does not consider these securities to be impaired at June 30, 2024 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 unrealized gains (losses) of ($ 78 ) and $ 163 for the three months ended March 31, 2024 and 2023, respectively.

The Company had net unrealized gains (losses) of ($ 43 ) and ($ 121 ) for the three and six months ended June 30, 2024, respectively, and $ 60 and $ 223 for the three and six months ended June 30, 2023, respectively.

Debt Securities Carried by EGL

2 unchanged sentences

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

The Company had net realized and unrealized gains (losses) of ($ 135 ) and $ 6 for the three months ended March 31, 2024 and 2023, respectively.

The Company had net realized and unrealized gains (losses) of $ 50 and ($ 85 ) for the three and six months ended June 30, 2024, respectively, and $ 12 and $ 18 for the three and six months ended June 30, 2023, 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 of $ 14,895 and $ 9,441 for the three months ended March 31, 2024 and 2023, respectively (of which $ 5,215 and $ 4,680 , respectively, were net unrealized gains).

The Company had net realized and unrealized gains of $ 6,216 and $ 21,111 for the three and six months ended June 30, 2024, respectively, (of which $ 5,464 and $ 10,679 , respectively, were net unrealized gains) and $ 11,615 and $ 21,056 for the

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

three and six months ended June 30, 2023, respectively, (of which $ 11,570 and $ 16,250 , respectively, were net unrealized gains).

Certificates of Deposit

At March 31, 2024 and December 31, 2023, the Company held certificates of deposit of $ 48,001 and $ 54,856 , respectively, with certain banks with original maturities of four months or less when purchased.

At June 30, 2024 and December 31, 2023, the Company held certificates of deposit of $ 115,316 and $ 54,856 , respectively, with certain banks with original maturities of four months or less when purchased.

Note 7 – Investments

1 unchanged sentence

The Company's investments are relatively high-risk and illiquid assets.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company's investments in ABS Investment Management Holdings, LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff"), Luminis Partners ("Luminis") and Seneca Advisors LTDA ("Seneca Evercore") are in voting interest entities.

3 unchanged sentences

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of March 31, 2024 and December 31, 2023 was as follows:

March 31, 2024 December 31, 2023

A summary of the Company's investments accounted for under the equity method of accounting as of June 30, 2024 and December 31, 2023 was as follows:

June 30, 2024 December 31, 2023

ABS $ 17,798 $ 18,770

4 unchanged sentences

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

At March 31, 2024, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,002 and $ 1,006 for the three months ended March 31, 2024 and 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2024, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,029 and $ 2,031 for the three and six months ended June 30, 2024, respectively, and $ 1,064 and $ 2,070 for the three and six months ended June 30, 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

In July 2024, the Company sold the remaining portion of its interest in ABS for $ 18,113 .

Atalanta Sosnoff

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

At March 31, 2024, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 635 and $ 391 for the three months ended March 31, 2024 and 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2024, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 681 and $ 1,316 for the three and six months ended June 30, 2024, respectively, and $ 335 and $ 726 for the three and six months ended June 30, 2023, 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, 2024, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 568 and $ 162 for the three months ended March 31, 2024 and 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2024, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 137 and $ 705 for the three and six

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

months ended June 30, 2024, respectively, and $ 135 and $ 297 for the three and six months ended June 30, 2023, 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, 2024, the Company's ownership interest in Seneca Evercore was 20 %.

This investment resulted in earnings (losses) of $ 120 and ($ 91 ) for the three months ended March 31, 2024 and 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2024, the Company's ownership interest in Seneca Evercore was 20 %.

This investment resulted in earnings (losses) of $ 10 and $ 130 for the three and six months ended June 30, 2024, respectively, and $ 8 and ($ 83 ) for the three and six months ended June 30, 2023, 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, 2024 and 2023.

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, 2024 and 2023 and $ 158 for each of the six months ended June 30, 2024 and 2023.

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

7 unchanged sentences

Portfolio holdings of the private equity funds are carried at fair value.

Accordingly, the Company reflects its pro rata share of unrealized gains and losses occurring from changes in fair value.

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

A summary of the Company's investments in the private equity funds as of March 31, 2024 and December 31, 2023 was as follows:

March 31, 2024 December 31, 2023

Accordingly, the Company reflects its pro rata share of unrealized gains and losses occurring from changes in fair value, as well as its pro rata share of realized gains, losses and carried interest associated with any investment realizations.

A summary of the Company's investments in the private equity funds as of June 30, 2024 and December 31, 2023 was as follows:

June 30, 2024 December 31, 2023

Glisco II, Glisco III and Glisco IV $ 4,070 $ 4,141

1 unchanged sentence

Total Private Equity Funds $ 5,823 $ 5,907

Net realized and unrealized gains on private equity fund investments were $ 73 and $ 322 for the three months ended March 31, 2024 and 2023, respectively.

Net realized and unrealized gains (losses) on private equity fund investments were ($ 174 ) and ($ 101 ) for the three and six months ended June 30, 2024, respectively, and $ 318 and $ 640 for the three and six months ended June 30, 2023, respectively.

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

As of March 31, 2024, $ 100 of previously distributed carried interest received from the funds was subject to repayment.

As of June 30, 2024, $ 60 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 $ 3,662 and $ 3,580 included in its Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2024 and December 31, 2023, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company had assets of $ 3,502 and $ 3,580 included

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

in its Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 was $ 5,845 and $ 5,762 , 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, 2024 and December 31, 2023 was $ 5,684 and $ 5,762 , 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 $ 631 and $ 636 as of March 31, 2024 and December 31, 2023, 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 $ 632 and $ 636 as of June 30, 2024 and December 31, 2023, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Note 8 – Leases

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

The lease terms include

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

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

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 14,403 and $ 13,428 for the three months ended March 31, 2024 and 2023, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $ 1,528 and $ 1,186 for the three months ended March 31, 2024 and 2023, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 14,436 and $ 28,839 for the three and six months ended June 30, 2024, respectively, and $ 14,069 and $ 27,497 for the three and six months ended June 30, 2023, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $ 1,376 and $ 2,904 for the three and six months ended June 30, 2024, respectively, and $ 1,703 and $ 2,889 for the three and six months ended June 30, 2023, respectively.

In conjunction with its lease agreements at 55 East 52nd St., New York, New York, the Company had an option to take on an additional three floors, which it exercised during 2023.

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The expected additional annual expense under this lease agreement, net of certain lease incentives, is $ 9,862 .

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,790 and $ 5,757 as of March 31, 2024 and December 31, 2023, respectively, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,823 and $ 5,757 as of June 30, 2024 and December 31, 2023, 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 $ 1,474 and $ 1,450 for the three months ended March 31, 2024 and 2023, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,568 and $ 3,042 for the three and six months ended June 30, 2024, respectively, and $ 1,335 and $ 2,785 for the three and six months ended June 30, 2023, respectively.

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

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

The Company incurred net operating cash outflows of $ 10,691 and $ 15,561 for the three months ended March 31, 2024 and 2023, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 718 for the three months ended March 31, 2024.

The Company incurred net operating cash outflows of $ 21,632 and $ 27,953 for the six months ended June 30, 2024 and 2023, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 1,684 and $ 621 for the six months ended June 30, 2024 and 2023, respectively.

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

For the Three Months Ended March 31,

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 880 $ 19,917

March 31, 2024 March 31, 2023

Weighted-average remaining lease term - operating leases 10.5 years 10.5 years

Weighted-average discount rate - operating leases 4.58 % 4.05 %

As of March 31, 2024, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

EVERCORE INC.

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

2024 (April 1 through December 31) $ 36,221

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

2024 2023 2024 2023

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 1,073 $ 137,722 $ 1,944 $ 157,629

June 30, 2024 June 30, 2023

Weighted-average remaining lease term - operating leases 10.4 years 11.0 years

Weighted-average discount rate - operating leases 4.59 % 4.44 %

As of June 30, 2024, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2024 (July 1 through December 31) $ 24,460

Thereafter 337,862

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The Company anticipates that these leases will commence by the end of 2025 and will have lease terms of 3 to 11 years once they have commenced.

The additional future payments under these arrangements are $ 140,646 as of March 31, 2024.

The additional future payments under these arrangements are $ 141,824 as of June 30, 2024.

Note 9 – Fair Value Measurements

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

The Company also periodically holds foreign exchange currency forward contracts, the estimated fair value of which is based on foreign currency exchange rates provided by external services.

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

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

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:

The Company also

EVERCORE INC.

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

March 31, 2024

periodically holds foreign exchange currency forward contracts, the estimated fair value of which is based on foreign currency exchange rates provided by external services.

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

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

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:

June 30, 2024

Level 1 Level 2 Level 3 Total

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Total Assets Measured At Fair Value $ 1,390,584 $ 1,585 $ — $ 1,392,169

(1) Includes $ 9,676 and $ 8,557 of treasury bills classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2024 and December 31, 2023, respectively.

(1) Includes $ 9,686 and $ 8,557 of treasury bills classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023, respectively.

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

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

March 31, 2024

June 30, 2024

Carrying Estimated Fair Value

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The respective Note Purchase Agreements contain customary covenants, including financial covenants requiring compliance with a maximum leverage ratio, a minimum tangible net worth and a minimum interest coverage ratio (for the 2016 Private Placement Notes only), and customary events of default.

As of March 31, 2024, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of March 31, 2024 and December 31, 2023:

As of June 30, 2024, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of June 30, 2024 and December 31, 2023:

Carrying Value (1)

Note Maturity Date Effective Annual Interest Rate March 31, 2024 December 31, 2023

Note Maturity Date Effective Annual Interest Rate June 30, 2024 December 31, 2023

Evercore Inc.

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Stockholders' Equity

Dividends – On April 23, 2024, the Company's Board of Directors declared a quarterly cash dividend of $ 0.80 per share to the holders of record of shares of Class A common stock ("Class A Shares") as of May 31, 2024, which will be paid on June 14, 2024.

During the three months ended March 31, 2024, the Company declared and paid dividends of $ 0.76 per share, totaling $ 29,309 , and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $ 4,028 .

During the three months ended March 31, 2024, the Company also paid deferred cash dividends of $ 13,927 .

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 RSUs totaling $ 4,205 .

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

Treasury Stock – During the three months ended March 31, 2024, the Company purchased 934 Class A Shares from employees at an average cost per share of $ 176.35 , primarily for the net settlement of stock-based compensation awards, and 553 Class A Shares at an average cost per share of $ 178.21 pursuant to the Company's share repurchase program.

The aggregate 1,487 Class A Shares were purchased at an average cost per share of $ 177.04 and the result of these purchases was an increase

Dividends – On July 23, 2024, the Company's Board of Directors declared a quarterly cash dividend of $ 0.80 per share to the holders of record of shares of Class A common stock ("Class A Shares") as of August 30, 2024, which will be paid on September 13, 2024.

During the three and six months ended June 30, 2024, the Company declared and paid dividends of $ 0.80 and $ 1.56 per share, respectively, totaling $ 30,638 and $ 59,947 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $ 4,002 and $ 8,030 , respectively.

The Company also paid deferred cash dividends of $ 271 and $ 14,198 during the three and six months ended June 30, 2024, respectively.

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 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.

Treasury Stock – During the three months ended June 30, 2024, the Company purchased 22 Class A Shares from employees at an average cost per share of $ 189.97 , primarily for the net settlement of stock-based compensation awards, and

EVERCORE INC.

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

in Treasury Stock of $ 263,297 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024.

LP Units – During the three months ended March 31, 2024, 91 Evercore LP partnership units ("LP Units") were exchanged for Class A Shares, resulting in an increase to Class A Common Stock and Additional Paid-In Capital of $ 1 and $ 6,145 , respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024.

268 Class A Shares at an average cost per share of $ 186.36 pursuant to the Company's share repurchase program.

The aggregate 290 Class A Shares were purchased at an average cost per share of $ 186.63 and the result of these purchases was an increase in Treasury Stock of $ 54,188 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024.

During the six months ended June 30, 2024, the Company purchased 956 Class A Shares from employees at an average cost per share of $ 176.67 , primarily for the net settlement of stock-based compensation awards, and 822 Class A Shares at an average cost per share of $ 180.87 pursuant to the Company's share repurchase program.

The aggregate 1,778 Class A Shares were purchased at an average cost per share of $ 178.61 and the result of these purchases was an increase in Treasury Stock of $ 317,485 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024.

LP Units – During the three and six months ended June 30, 2024, 35 and 125 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in an increase to Class A Common Stock of $ 1 for the six months ended June 30, 2024, and an increase to Additional Paid-In Capital of $ 2,507 and $ 8,652 for the three and six months ended June 30, 2024, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024.

See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of March 31, 2024, 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 ($ 5,333 ) and ($ 24,429 ), respectively.

Accumulated Other Comprehensive Income (Loss) – As of June 30, 2024, 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 ($ 5,306 ) and ($ 25,195 ), 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 6 % 7 %

Evercore Wealth Management ("EWM") 26 % 26 %

(1) Noncontrolling Interests as of March 31, 2023 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.

1 unchanged sentence

See Note 13 for further information.

Changes in Noncontrolling Interest for the three months ended March 31, 2024 and 2023 were as follows:

Changes in Noncontrolling Interest for the three and six months ended June 30, 2024 and 2023 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,

2024 2023 2024 2023

Beginning balance $ 203,454 $ 193,278 $ 205,556 $ 189,607

4 unchanged sentences

Evercore LP Units Exchanged for Class A Shares ( 2,507 ) ( 1,296 ) ( 8,653 ) ( 2,774 )

Amortization and Vesting of LP Units 6,350 6,460

Amortization and Vesting of LP Units and EWM Class A Units 9,479 6,175 15,829 12,635

Distributions to Noncontrolling Interests ( 6,535 ) ( 5,261 ) ( 15,973 ) ( 15,651 )

Issuance of Noncontrolling Interest 282 733 282 733

Purchase of Noncontrolling Interest ( 67 ) ( 158 ) ( 67 ) ( 158 )

Total Other Items ( 6,320 ) ( 4,686 ) ( 15,758 ) ( 15,076 )

Ending balance $ 212,015 $ 198,925 $ 212,015 $ 198,925

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($ 6 ) and ($ 283 ) for the three months ended March 31, 2024 and 2023, respectively, and foreign currency translation adjustment gains (losses), net, of ($ 293 ) and $ 499 for the three months ended March 31, 2024 and 2023, respectively.

LP Units Exchanged – During the three months ended March 31, 2024, 91 LP Units were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 6,146 and increases to Class A Common Stock and Additional Paid-In Capital of $ 1 and $ 6,145 , respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of $ 2 and ($ 4 ) for the three and six months ended June 30, 2024, respectively, and ($ 283 ) for the six months ended June 30, 2023, and foreign currency translation adjustment gains (losses), net, of ($ 68 ) and ($ 361 ) for the three and six months ended June 30, 2024, respectively, and $ 498 and $ 997 for the three and six months ended June 30, 2023, respectively.

LP Units Exchanged – During the three and six months ended June 30, 2024, 35 and 125 LP Units, respectively, were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 2,507 and $ 8,653 for the three and six months ended June 30, 2024, respectively, an increase to Class A Common Stock of $ 1 for the six months ended June 30, 2024, and an increase to Additional Paid-In Capital of $ 2,507 and $ 8,652 for the three and six months ended June 30, 2024, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024.

See Note 11 for further information.

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

EWM Class A Units – During the second quarter of 2024, the Company granted 297 EWM Class A Units, which generally vest ratably over three years .

Compensation expense related to the EWM Class A Units was $ 457 for the three and six months ended June 30, 2024.

Interests Purchased – During the second quarter of 2024, the Company purchased, at fair value, an additional 0.3 % of the EWM Class A Units for $ 1,036 .

This purchase resulted in a decrease to Noncontrolling Interest of $ 67 and a decrease to Additional Paid-In Capital of $ 969 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024.

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.

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 Real Estate Capital Advisory ("RECA") business for $ 54,297 .

Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash in 2022, and contingent cash consideration which was settled during 2023 and the first quarter of 2024.

The Company paid contingent cash consideration of $ 715 during the first quarter of 2023 and $ 2,023 during the first quarter of 2024, representing the final payment under this arrangement.

The Company paid contingent cash consideration of $ 715 during the six

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

months ended June 30, 2023 and $ 2,023 during the six months ended June 30, 2024, representing the final payment under this arrangement.

The fair value of the remaining contingent consideration was $ 2,023 as of December 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Unaudited Condensed Consolidated Statement of Financial Condition.

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

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, 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.

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

common shareholders for the three months ended March 31, 2024 and 2023 are described and presented below.

common shareholders for the three and six months ended June 30, 2024 and 2023 are described and presented below.

EVERCORE INC.

1 unchanged sentence

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

For the Three Months Ended March 31,

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

2024 2023 2024 2023

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)

2,180 1,029 2,333 1,419

Shares that are contingently issuable (3)

175 48 166 84

Diluted weighted average Class A Shares outstanding 40,857 39,288 40,969 39,863

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, 2024 and 2023, 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, 2024 and 2023, 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 2,609 and 2,756 for the three months ended March 31, 2024 and 2023, 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 $ 6,212 and $ 6,986 for the three months ended March 31, 2024 and 2023, respectively.

common shareholders if the effect would have been dilutive were 2,557 and 2,583 for the three and six months ended June 30, 2024, respectively, and 2,815 and 2,785 for the three and six months ended June 30, 2023, 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 $ 5,014 and $ 11,226 for the three and six months ended June 30, 2024, respectively, and $ 2,918 and $ 9,905 for the three and six months ended June 30, 2023, 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, 2024 and 2023, 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 44 and 2,239 for the three months ended March 31, 2024 and 2023, respectively.

(3) The Company 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.

See Note 14 for further information.

For the purposes of calculating diluted net income per share attributable to Evercore

EVERCORE INC.

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

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

(2) During the three and six months ended June 30, 2023, 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 3,080 and 1,775 for the three and six months ended June 30, 2023, respectively.

The Company also has certain outstanding RSUs which vest contingent upon certain performance thresholds being achieved.

See Note 14 for further information.

For the purposes of calculating diluted net income per share attributable to Evercore Inc.

common shareholders, these units are included in diluted weighted average Class A Shares outstanding, as calculated using the Treasury Stock Method, as of the beginning of the period in which all necessary performance conditions have been satisfied.

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

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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.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

• In June 2023, the Company awarded 60 Class K-P Units.

2 unchanged sentences

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 upon conversion based on the level of defined benchmark results achieved.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company determined the grant date fair value of these awards probable to vest as of March 31, 2024 to be $ 103,664 , related to 890 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 $ 6,279 and $ 6,407 for the three months ended March 31, 2024 and 2023, respectively.

In April 2024, the Company's Board of Directors approved the issuance of approximately 325 Class K-P Units.

• In June 2024, the Company awarded 328 Class K-P Units.

These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares) contingent and based upon the achievement of certain market conditions, defined benchmark results and continued service through April 1, 2029.

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 328 Class K LP Units contingent upon the achievement of certain market conditions and continued service, while additional units may be received upon conversion based on the level of defined benchmark results achieved.

The Company determined the grant date fair value of these awards probable to vest as of June 30, 2024 to be $ 257,320 , related to 1,742 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 $ 8,976 and $ 15,255 for the three and six months ended June 30, 2024, respectively, and $ 6,127 and $ 12,534 for the three and six months ended June 30, 2023, respectively.

Class L Interests

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Stock Incentive Plan.

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.

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

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

The total shares available to be granted in the future under the Second Amended 2016 Plan was 3,543 as of March 31, 2024.

During the second quarter of 2024, the Company's stockholders approved the Third Amended and Restated 2016 Evercore Inc.

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

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

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

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

Class A Shares underlying any award granted under the Third 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 Third Amended 2016 Plan was 8,815 as of June 30, 2024.

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.

The dividend equivalents have the same vesting and delivery terms as the underlying RSU award.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company estimates forfeitures in the aggregate compensation cost to be amortized over the requisite service period of its awards.

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Equity Grants

During the three months ended March 31, 2024, pursuant to the Second Amended 2016 Plan, the Company granted employees 1,646 RSUs that are Service-based Awards.

Service-based Awards granted during the three months ended March 31, 2024 had grant date fair values of $ 148.49 to $ 187.12 per share, with an average value of $ 182.53 per share, for an aggregate fair value of $ 300,520 , and generally vest ratably over four years .

During the three months ended March 31, 2024, 2,068 Service-based Awards vested and 5 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 72,178 and $ 66,488 for the three months ended March 31, 2024 and 2023, respectively.

During the six months ended June 30, 2024, pursuant to the above Stock Incentive Plans, the Company granted employees 1,665 RSUs that are Service-based Awards.

Service-based Awards granted during the six months ended June 30, 2024 had grant date fair values of $ 148.49 to $ 203.06 per share, with an average value of $ 182.68 per share, for an aggregate fair value of $ 304,195 , and generally vest ratably over four years .

During the six months ended June 30, 2024, 2,158 Service-based Awards vested and 66 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 82,500 and $ 154,678 for the three and six months ended June 30, 2024, respectively, and $ 79,307 and $ 145,795 for the three and six months ended June 30, 2023, respectively.

In June 2024, the Company granted 30 RSUs which may convert into a maximum of 80 RSUs contingent and based upon the achievement of certain defined benchmark results and continued service through April 1, 2031.

The grant date fair value of these awards probable to vest as of June 30, 2024 was $ 7,783 , related to 40 RSUs which were probable of achievement, and compensation expense related to these units was $ 87 for the three and six months ended June 30, 2024.

Deferred Cash

Deferred Cash Compensation Program – The Company's deferred cash compensation program provides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to notional investment portfolios selected by the participant and generally vests ratably over four years and requires payment upon vesting.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

granted $ 143,220 of deferred cash awards pursuant to the deferred cash compensation program during the three months ended March 31, 2024.

Compensation expense related to the Company's deferred cash compensation program was $ 43,994 and $ 39,762 for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, the Company expects to pay an aggregate of $ 375,382 related to the Company's deferred cash compensation program at various dates through 2028 and total compensation expense not yet recognized related to these awards was $ 292,975 .

The Company granted $ 143,220 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of 2024.

Compensation expense related to the Company's deferred cash compensation program was $ 44,111 and $ 88,105 for the three and six months ended June 30, 2024, respectively, and $ 42,905 and $ 82,667 for the three and six months ended June 30, 2023, respectively.

As of June 30, 2024, the Company expects to pay an aggregate of $ 383,885 related to the Company's deferred cash compensation program at various dates through 2028 and total compensation expense not yet recognized related to these awards was $ 255,756 .

The weighted-average period over which this compensation cost is expected to be recognized is 34 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 $ 4,026 and $ 4,328 for the three months ended March 31, 2024 and 2023, respectively.

Compensation expense related to other deferred cash awards was $ 2,444 and $ 6,470 for the three and six months ended June 30, 2024, respectively, and $ 2,424 and $ 6,752 for the three and six months ended June 30, 2023, respectively.

Long-term Incentive Plan

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 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).

As of March 31, 2024, the Company has accrued $ 139,608 pursuant to the 2021 Long-term Incentive Plan, including $ 46,504 within Accrued Compensation and Benefits and $ 93,104 within Other Long-term Liabilities, on the Unaudited Condensed Consolidated Statement of Financial Condition.

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

certain amounts due in the first quarter of 2022).

As of June 30, 2024, the Company has accrued $ 148,429 pursuant to the 2021 Long-term Incentive Plan, including $ 49,476 within Accrued Compensation and Benefits and $ 98,953 within Other Long-term Liabilities, on the Unaudited Condensed Consolidated Statement of Financial Condition.

Amounts due are 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 $ 10,954 and $ 12,640 for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, 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 $ 87,236 .

The Company recorded compensation expense related to these plans of $ 8,796 and $ 19,750 for the three and six months ended June 30, 2024, respectively, and $ 9,616 and $ 22,256 for the three and six months ended June 30, 2023, respectively.

As of June 30, 2024, 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 $ 73,712 .

Employee Loans Receivable

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

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

Generally, these awards, based on the terms, include a requirement of either full or partial repayment by the employee if the service or other requirements of the agreements with the Company are not achieved.

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 $ 6,615 and $ 4,646 for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, the total compensation cost not yet recognized related to these awards was $ 48,823 .

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Compensation expense related to these awards was $ 11,717 and $ 18,332 for the three and six months ended June 30, 2024, respectively, and $ 7,069 and $ 11,715 for the three and six months ended June 30, 2023, respectively.

As of June 30, 2024, the total compensation cost not yet recognized related to these awards was $ 44,052 .

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, 2024 and 2023:

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Beginning Balance $ 2,824 $ 4,997

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Ending Balance $ 4,189 $ 336

In addition to the above Termination Costs incurred, for the three months ended March 31, 2024 and 2023, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 1,835 and $ 564 , respectively (related to 19 and 6 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 $ 1,658 and $ 3,493 for the three and six months ended June 30, 2024, respectively, (related to 32 RSUs) and $ 1,694 and $ 2,258 for the three and six months ended June 30, 2023, respectively, (related to 20 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, 2023.

Private Equity – As of March 31, 2024, the Company had unfunded commitments for capital contributions of $ 2,584 to private equity funds.

Private Equity – As of June 30, 2024, the Company had unfunded commitments for capital contributions of $ 2,584 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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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, 2024.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2024.

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 March 31, 2024.

There were no drawings under this facility at June 30, 2024.

East entered into an additional revolving credit facility with PNC, 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.

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

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2024.

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2024.

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, 2024.

There were no drawings under this facility at June 30, 2024.

EGL entered into a subordinated revolving credit facility with PNC, as amended on November 6, 2023, 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.

1 unchanged sentence

The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 28, 2025.

There were no drawings under this facility at March 31, 2024.

There were no drawings under this facility at June 30, 2024.

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Other Commitments – The Company had a commitment for contingent consideration related to the purchase of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business in 2021.

Consideration for this transaction includes contingent cash consideration which was settled during 2023 and the first quarter of 2024.

The Company paid contingent cash consideration of $ 715 during the first quarter of 2023 and $ 2,023 during the first quarter of 2024, representing the final payment under this arrangement.

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

See Note 12 for further information.

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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 estimated present value of incurred but not reported claims is $ 3,067 and $ 3,165 as of March 31, 2024 and December 31, 2023, respectively, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Financial Condition.

The estimated present value of incurred but not reported claims is $ 3,067 and $ 3,165 as of June 30, 2024 and December 31, 2023, respectively, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements 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 settled during the third quarter of 2023, and resulted in a loss of $ 303 .

Upon settlement, the Company entered into a new foreign currency exchange forward contract to buy 30,000 British Pounds sterling for $ 36,675 , which settled during the first quarter of 2024, and resulted in a loss of $ 347 for the three months ended March 31, 2024.

The contract was recorded at its fair value of $ 1,585 as of December 31, 2023, and is included within Other Current Assets on the Unaudited Condensed Consolidated Statement of Financial Condition.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Contingencies

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

Provisions for losses are established in

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

accordance with ASC 450, "Contingencies" ("ASC 450") when warranted.

Provisions for losses are established in accordance with ASC 450, "Contingencies" ("ASC 450") when warranted.

Once established, such provisions are adjusted when there is more information available or when an event occurs requiring a change.

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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, 2024 and December 31, 2023 was $ 464,347 and $ 405,318 , respectively, which exceeded the minimum net capital requirement by $ 464,097 and $ 405,068 , respectively.

EGL's regulatory net capital as of June 30, 2024 and December 31, 2023 was $ 546,709 and $ 405,318 , respectively, which exceeded the minimum net capital requirement by $ 546,459 and $ 405,068 , respectively.

Evercore Trust Company, N.A.

1 unchanged sentence

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, 2024.

The Company was in compliance with the aforementioned agreements as of June 30, 2024.

Evercore U.K., our U.K.

1 unchanged sentence

Equities affiliate, are regulated by the Financial Conduct Authority.

The aggregate regulatory net capital of these affiliates as of March 31, 2024 and December 31, 2023 was $ 224,393 and $ 184,981 , respectively, which exceeded the minimum requirement by $ 138,936 and $ 98,805 , respectively.

The aggregate regulatory net capital of these affiliates as of June 30, 2024 and December 31, 2023 was $ 232,618 and $ 184,981 , respectively, which exceeded the minimum requirement by $ 147,032 and $ 98,805 , 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, 2024.

These subsidiaries are in excess of their local capital adequacy requirements at June 30, 2024.

Note 17 – Income Taxes

The Company's Provision (Benefit) for Income Taxes was ($ 6,679 ) and $ 16,131 for the three months ended March 31, 2024 and 2023, respectively.

The effective tax rate was ( 7.7 %) and 14.9 % for the three months ended March 31, 2024 and 2023, 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 $ 29,506 and $ 13,731 for the three months ended March 31, 2024 and 2023, respectively, which resulted in a reduction in the effective tax rate of 34.1 and 12.7 percentage points for the three months ended March 31, 2024 and 2023, respectively.

The effective tax rate for the three months ended March 31, 2024 and 2023 also reflects the effect of certain nondeductible expenses, including expenses related to Class K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

The Company's Provision for Income Taxes was $ 28,367 and $ 21,688 for the three and six months ended June 30, 2024, respectively, and $ 17,097 and $ 33,228 for the three and six months ended June 30, 2023, respectively.

The effective tax rate was 25.8 % and 11.0 % for the three and six months ended June 30, 2024, respectively, and 28.9 % and 19.8 % for the three and six months ended June 30, 2023, 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 $ 30,930 and $ 13,809 for the six months ended June 30, 2024 and 2023, respectively, which resulted in a reduction in the effective tax rate of 15.7 and 8.2 percentage points for the six months ended June 30, 2024 and 2023, respectively.

The effective tax rate for 2024 and 2023 also reflects the effect of certain nondeductible expenses, including expenses related to Class K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

In October 2021, members of the Organization for Economic Co-operation and Development ("OECD") agreed on a two-pillar tax framework to realign international taxation with economic activities, including a coordinated set of rules designed to ensure large multinational enterprises pay a minimum 15% tax rate across all jurisdictions, known as Pillar Two.

The implications of these rules begin to take effect for corporations in 2024, as jurisdictions enact legislation in line with the OECD rules and related guidance.

The Company is evaluating the current and proposed legislation of Pillar Two and does not expect it to materially impact the Company's effective tax rate in the future.

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, 2024 and 2023, 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 $ 22 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 1,230 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the three months ended March 31, 2024.

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 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, 2024, there were $ 359 of unrecognized tax

The implications of these rules begin to take effect for corporations in 2024, as jurisdictions enact legislation in line with the OECD

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 $ 18 and $ 1 , respectively, during the three months ended March 31, 2024.

rules and related guidance.

The Company is evaluating the current and proposed legislation of Pillar Two and does not expect it to materially impact the Company's effective tax rate in the future.

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

For the three and six months ended June 30, 2024 and 2023, 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 $ 13 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 1,557 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2024.

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 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, 2024, 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 $ 19 and $ 1 , respectively, during the three months ended June 30, 2024.

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, 2024 and 2023 is prepared using the following methodology:

The Company's segment information for the three and six months ended June 30, 2024 and 2023 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.

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• Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Each segment's Operating Expenses include:

1 unchanged sentence

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

Other Expenses for the three months ended March 31, 2023 include 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.

Other Expenses for the six months ended June 30, 2023 include 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.

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three months ended March 31, 2024 and 2023.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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 and six months ended June 30, 2024 and 2023, respectively.

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,

2024 2023 2024 2023

Investment Banking & Equities

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Identifiable Segment Assets $ 3,315,998 $ 3,051,444 $ 3,315,998 $ 3,051,444

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,

2024 2023 2024 2023

Investment Banking & Equities (A)

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Total Other Revenue, net $ 17,595 $ 20,040 $ 46,100 $ 42,715

(A) Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $ 4,188 and $ 4,171 for the three months ended March 31, 2024 and 2023, respectively.

(A) Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $ 4,189 and $ 8,377 for the three and six months ended June 30, 2024, respectively, and $ 4,181 and $ 8,352 for the three and six months ended June 30, 2023, 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:

For the Three Months Ended March 31,

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

2024 2023 2024 2023

Net Revenues:

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(1) Excludes Other Revenue, Including Interest and Investments, and Interest Expense.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Total Assets:

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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