EX-99.1 2 efsi-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

 

EAGLE FINANCIAL SERVICES, INC. ANNOUNCES

2024 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND

 

 

Contact:

Kathleen J. Chappell, Executive Vice President and CFO

540-955-2510

 

 

kchappell@bankofclarke.com

 

BERRYVILLE, VIRGINIA (October 25, 2024) – Eagle Financial Services, Inc. (OTCQX: EFSI), the holding company for Bank of Clarke, whose divisions include Bank of Clarke Wealth Management, announced its third quarter 2024 results. On October 23, 2024, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on November 15, 2024, to shareholders of record on November 8, 2024. Net income was $3.4 million for the third quarter of 2024 compared to $3.2 million for the second quarter of 2024. The following table presents selected financial performance highlights for the periods indicated:

 

 

Three Months Ended

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

2024

 

 

2024

 

 

2023

 

 

(in thousands)

 

Consolidated net income

$

3,424

 

 

$

3,185

 

 

$

2,319

 

 

 

 

 

 

 

 

 

Earnings per share - basic and diluted

$

0.97

 

 

$

0.89

 

 

$

0.66

 

 

 

 

 

 

 

 

 

Annualized return on average equity

 

11.99

%

 

 

11.76

%

 

 

8.87

%

 

 

 

 

 

 

 

 

Annualized return on average assets

 

0.75

%

 

 

0.72

%

 

 

0.51

%

 

 

 

 

 

 

 

 

Net interest margin

 

2.88

%

 

 

2.80

%

 

 

2.93

%

 

Brandon Lorey, President and CEO, stated, "The success of the third quarter of 2024 reflects the continued execution of the 2024 strategic plan, coupled with a focus on deepening both existing and new relationships. The Bank of Clarke delivered exceptional results for Eagle Financial Services, Inc., highlighted by continued improvements in efficiency, earnings per share (EPS), and capital. Additionally, we have strengthened our loan-to-deposit ratio, with net deposit growth doubling that of loan growth. I would like to personally extend my gratitude to our phenomenal staff, who consistently place our customers at the center of everything we do. We remain steadfast in our commitment to our clients and communities."

 

Key highlights for the third quarter of 2024 are as follows:

•
Noninterest income increased $946 thousand or 22.0% during the quarter.
•
Net interest margin increased eight basis points during the quarter.
•
Deposit growth of $57.4 million or 3.9% during the quarter.
•
Sales of $14.9 million and $4.3 million in mortgage and SBA loans, respectively, with a gain on sales of $626 thousand recognized during the quarter.
•
Earnings per share increased by $0.08 for the quarter to $0.97.

 

 

Income Statement Review

Net income for the quarter ended September 30, 2024 was $3.4 million reflecting an increase of 7.5% from the quarter ended June 30, 2024 and an increase of 47.6% from the quarter ended September 30, 2023. The increase from the quarters ended June 30, 2024 and September 30, 2023 was due mainly to increases in total noninterest income. Total noninterest income increased primarily due to a $671 thousand bank owned life insurance (BOLI) payout during the third quarter of 2024. The increase of total noninterest income was also due to more sales activity in loans held for sale resulting in a $627 thousand gain on sale of loans held for sale for the quarter ended September 30, 2024 compared to $492 thousand and $265 thousand for the quarters ended June 30, 2024 and September 30, 2023, respectively. In addition, income from the Bank's holdings of Small Business Investment Company (SBIC) increased to $496 thousand for the three months ended September 30, 2024 from $259 thousand and $151 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively. Net income was $3.2 million for the three-month period ended June 30, 2024 and $2.3 million for the quarter ended September 30, 2023.

Total loan interest income was $21.1 million and $19.5 million for the quarters ended September 30, 2024 and June 30, 2024, respectively. Total loan interest income was $20.2 million for the quarter ended September 30, 2023. Total loan interest income increased $964 thousand or 4.8% from the quarter ended September 30, 2023 to the quarter ended September 30, 2024. The increase in loan interest income during the third quarter of 2024 compared to the second quarter of 2024 is mainly due to the increase in loan volume during the third quarter. Average loans increased from $1.44 billion for the quarter ended June 30, 2024 to $1.47 billion for the quarter ended September 30, 2024. Year over year quarterly average loans remained stable at $1.47 billion for the quarters ended September 30, 2024 and September 30, 2023. The tax equivalent yield on average loans for the quarter ended September 30, 2024 was 5.71%, an increase of 27 basis points from the 5.44% average yield for the same time period in 2023. The increase in yield was due mainly to loans paying off and being replaced at higher rates due to the current market environment.

Interest and dividend income from the investment portfolio was $873 thousand for the quarter ended September 30, 2024 compared to $897 thousand for the quarter ended June 30, 2024. Interest income and dividend income from the investment portfolio was $931 thousand for the quarter ended September 30, 2023. The tax equivalent yield on average investments for the quarter ended September 30, 2024 was 2.53%, down nine basis points from 2.62% for the quarter ended June 30, 2024 and up five basis points from 2.48% for the quarter ended September 30, 2023.

Total interest expense was $10.5 million for the three months ended September 30, 2024 and $9.6 million and $9.3 million for three months ended June 30, 2024 and September 30, 2023, respectively. The increase in interest expense between the quarter ended September 30, 2024 and both quarters ended June 30, 2024 and September 30, 2023 was due to the growth in interest-bearing deposit accounts. The average cost of interest-bearing liabilities increased 15 and 37 basis points when comparing the quarter ended September 30, 2024 to the quarters ended June 30, 2024 and September 30, 2023, respectively. The average balance of interest-bearing liabilities increased $52.8 million from the quarter ended June 30, 2024 to the quarter ended September 30, 2024. The average balance of interest-bearing liabilities increased $61.8 million from the quarter ended September 30, 2023 to the same period in 2024. In addition to the growth in interest-bearing liabilities, there has been a shift in the mix of interest-bearing deposits towards higher interest-bearing deposits.

Net interest income for the quarter ended September 30, 2024 was $13.2 million reflecting an increase of 8.2% from the quarter ended June 30, 2024 and an increase of 1.9% from the quarter ended September 30, 2023. Net interest income was $12.2 million and $12.9 million, respectively, for the quarters ended June 30, 2024 and September 30, 2023.

 

 

The net interest margin was 2.88% for the quarter ended September 30, 2024. For the quarters ended June 30, 2024 and September 30, 2023, the net interest margin was 2.80% and 2.93%, respectively. The net interest margin for the quarter ended June 30, 2024 was negatively impacted by recognizing additional deferred fees due to early loan payoffs, mainly in the Marine portfolio, which is what caused the increase to 2.88% during the third quarter of 2024, when these deferred fees were not as significant. The Company’s net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitably earning assets are funded. The Company’s net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 21%.

Noninterest income was $5.3 million for the quarter ended September 30, 2024, which represented an increase of $946 thousand or 22.0% from $4.3 million for the three months ended June 30, 2024. Noninterest income for the quarter ended September 30, 2023 was $4.2 million. Total noninterest income increased primarily due to a $671 thousand BOLI payout during the third quarter of 2024. The increase of total noninterest income was also due to increased sales activity in loans held for sale resulting in a $627 thousand gain on sale of loans held for sale for the quarter ended September 30, 2024 compared to $492 thousand and $265 for the quarters ended June 30, 2024 and September 30, 2023, respectively. In addition, SBIC income increased to $496 thousand for the three months ended September 30, 2024 from $259 thousand and $151 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

Noninterest expense increased $380 thousand, or 3.0%, to $12.9 million for the quarter ended September 30, 2024 from $12.5 million for the quarter ended June 30, 2024. Noninterest expense was $14.1 million for the quarter ended September 30, 2023, representing a decrease of $1.2 million or 8.8% when comparing the quarter ended September 30, 2024 to the quarter ended September 30, 2023. A $195 thousand or 2.7% increase in salaries and benefits expenses was noted between September 30, 2024 and June 30, 2024. This is mainly due to larger incentive accruals as employees reached certain goals. In addition, a $204 thousand loss of sale of repossessed assets occurred during the quarter ended September 30, 2024. The decrease from the quarter ended September 30, 2023 to the quarter ended September 30, 2024 was due mainly to the sale of the marine finance line of business during the third quarter of 2023. While there was some reduction in overhead costs by having the marine finance line of business in operation only through August 2023, there was approximately $1.5 million in additional expense recognized during the quarter due to its sale. These costs included a change in control agreement, accelerated deferred compensation expenses, legal costs and advisory firm expenses.

 

Asset Quality and Provision for Credit Losses

Nonperforming assets consist of nonaccrual loans, loans 90 days or more past due and still accruing, other real estate owned (foreclosed properties), and repossessed assets. Nonperforming assets decreased from $3.3 million or 0.18% of total assets at June 30, 2024 to $2.5 million or 0.13% of total assets at September 30, 2024. Nonperforming assets were $6.0 million or 0.33% of total assets at September 30, 2023. Total nonaccrual loans were $2.3 million at September 30, 2024 and $2.7 million at June 30, 2024. Nonaccrual loans were $5.7 million at September 30, 2023. Nonperforming assets decreased between June 30, 2024 and September 30, 2024 mainly due to one large relationship totaling $591 thousand paying off. Nonaccrual loans, and in turn nonperforming assets, decreased between September 30, 2023 and September 30, 2024 due to three large relationships totaling $3.3 million paying off. The majority of all nonaccrual loans are secured by real estate and management evaluates the financial condition of these borrowers and the value of any collateral on these loans. The results of these evaluations are used to estimate the amount of losses which may be realized on the disposition of these nonaccrual loans. Other real estate owned was zero at September 30, 2024, June 30, 2024 and September 30, 2023.

 

 

The Company realized $1.2 million in net charge-offs for the quarter ended September 30, 2024 compared to $252 thousand in net recoveries for the three months ended June 30, 2024. During the three months ended September 30, 2023, $156 thousand in net charge-offs were recognized. The majority of the charge-offs recognized during the third quarter of 2024 were related to a clean-up of the marine portfolio and does not reflect a systemic performance issue within the portfolio.

The amount of provision for credit losses reflects the results of the Bank’s analysis used to determine the adequacy of the allowance for credit losses. The Company recorded $1.5 million in provision for credit loss for the quarter ended September 30, 2024. The Company recognized provision for credit losses of $181 thousand and $216 thousand for the quarters ended June 30, 2024 and September 30, 2023, respectively. The provision for the quarter ended September 30, 2024 was mainly needed due to the larger net charge-offs during the quarter coupled with $34.6 million in total loan growth. The provision for the quarters ended June 30, 2024 and September 30, 2023 was mainly needed to keep pace with loan growth during the quarter.

The ratio of allowance for credit losses to total loans was 1.03% and 1.04% at September 30, 2024 and June 30, 2024, respectively. The ratio of allowance for credit losses to total loans was 1.01% at September 30, 2023. The ratio of allowance for credit losses to total nonaccrual loans was 652.86% and 555.46% at September 30, 2024 and June 30, 2024, respectively. The ratio of allowance for credit losses to total nonaccrual loans was 255.80% at September 30, 2023. The lower ratio of allowance for credit losses to nonaccrual loans was lower at September 30, 2023 due to a higher amount of nonaccrual loans. Several large nonaccrual loan relationship have paid off since September 30, 2023. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. The Company is committed to maintaining an allowance at a level that adequately reflects the risk inherent in the loan portfolio.

Balance Sheet

Total consolidated assets of the Company at September 30, 2024 were $1.88 billion, which represented an increase of $91.3 million or 5.10% from total assets of $1.79 billion at June 30, 2024. At September 30, 2023, total consolidated assets were $1.80 billion. Total asset growth was mainly due to loan growth during the quarter ended September 30, 2024.

Total net loans increased $34.1 million from $1.43 billion at June 30, 2024 to $1.47 billion at September 30, 2024. These increases were mainly in the commercial owner occupied and construction & farmland loans during the third quarter of 2024. During the quarter ended September 30, 2024, through the normal course of business, $14.9 million in mortgage loans were sold on the secondary market. These loan sales resulted in net gains of $257 thousand. During the quarter ended June 30, 2024, $14.6 million in mortgage loans were sold on the secondary market. These loan sales resulted in net gains of $255 thousand.

On August 23, 2023, the Company completed the sale of its marine finance business, operating under the name LaVictoire Finance, to Axos Bank. Under the Asset Purchase Agreement, Axos Bank agreed to assume the servicing of Bank of Clarke’s retail marine loans and those of third parties, each of which were previously being serviced by Bank of Clarke. All LaVictoire Finance employees became employees of Axos Bank. Pursuant to the Loan Purchase Agreement, Axos Bank acquired all the marine vessel dealer floor plans loans currently held by Bank of Clarke at par value. The acquired loans had an aggregate principal balance of approximately $52.8 million as of the date of the Loan Purchase Agreement. All marine finance loans, with a balance of $225.9 million as of September 30, 2024, are still assets of Bank of Clarke.

 

 

Total deposits increased to $1.55 billion as of September 30, 2024 when compared to June 30, 2024 deposits of $1.49 billion. At September 30, 2023 total deposits were $1.50 billion. During the third quarter of 2024, total deposits increased $57.4 million. The majority of this increase was due to time deposit balances increasing by $50.5 million. Time deposits as a percentage of total deposits have increased from 28.6% at September 30, 2023 to 30.8% at September 30, 2024. Time deposits as a percentage of total deposits increased from 27.4% at December 31, 2023. The increase in deposits between September 30, 2023 and September 30, 2024 was mainly due to the growth of certificates of deposits over $250 thousand. At September 30, 2024, over 75% of deposits were fully FDIC insured.

Liquidity

The objective of the Company’s liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of September 30, 2024, the Company’s uninsured deposits were approximately $180.0 million, or 11.6% of total deposits.

The Company’s liquid assets, which include cash and due from banks, interest-bearing deposits at other banks, loans with a maturity less than one year and nonpledged securities available for sale, were $310.7 million and borrowing availability was $352.5 million as of September 30, 2024, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $483.2 million as of September 30, 2024. Liquid assets have declined by $29.4 million during the third quarter due mainly to pledging of the mortgage-backed securities pool with the Federal Reserve Bank discount window and was offset by increases in interest bearing deposits in banks. In addition to deposits, the Company utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home loan Bank of Atlanta (FHLB) as well as federal funds purchased from Community Bankers Bank may be used to fund the Company’s day-to-day operations. Long-term borrowings include FHLB advances as well as subordinated debt. Total borrowings increased to $199.7 million at September 30, 2024 from $184.8 million at December 31, 2023 due primarily to higher borrowings from the FHLB. Borrowings increased $25.3 million from $174.4 million at September 30, 2023.

Additional sources of liquidity available to the Company include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.

Capital and Dividends

On October 23, 2024, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on November 15, 2024, to shareholders of record on November 8, 2024.The Board of Directors of the Company continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $10.1 million at September 30, 2024, compared to December 31, 2023, due primarily to net income and unrealized gains on securities available for sale, partially offset by dividends paid on the Company’s common stock. The Company’s securities available for sale are fixed income debt securities and their unrealized loss position is a result of increased market interest rates since they were purchased. The Company expects to recover its investments in debt securities through scheduled payments of principal and interest and unrealized losses are not expected to affect the earnings or regulatory capital of the Company. The accumulated other comprehensive loss related to the Company’s securities available for sale decreased to $14.4 million at September 30, 2024 compared to $18.8 million at December 31, 2023 due primarily to fluctuations in debt security market interest rates.

As of September 30, 2024, the most recent notification from the FDIC categorized the Bank of Clarke as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at September 30, 2024, Bank of Clarke was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, Bank of Clarke must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Company and Bank of Clarke exceeded these ratios at September 30, 2024.

 

 

 

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s future operations and are generally identified by phrases such as “the Company expects,” “the Company believes” or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to: changes in interest rates and general economic conditions; the legislative and regulatory climate; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and Federal Reserve; the quality or composition of the Company’s loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market area; acquisitions and dispositions; the Company’s ability to keep pace with new technologies; a failure in or breach of the Company’s operational or security systems or infrastructure, or those of third-party vendors or other service providers, including as a result of cyberattacks; the Company’s capital and liquidity; changes in tax and accounting rules, principles, policies and guidelines; and other factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the Securities and Exchange Commission.

 

 

EAGLE FINANCIAL SERVICES, INC.

KEY STATISTICS

 

 

 

For the Three Months Ended

 

 

 

3Q24

 

 

2Q24

 

 

1Q24

 

 

4Q23

 

 

3Q23

 

Net Income (dollars in thousands)

 

$

3,424

 

 

$

3,185

 

 

$

2,548

 

 

$

2,395

 

 

$

2,319

 

Earnings per share, basic

 

$

0.97

 

 

$

0.89

 

 

$

0.72

 

 

$

0.69

 

 

$

0.66

 

Earnings per share, diluted

 

$

0.97

 

 

$

0.89

 

 

$

0.72

 

 

$

0.69

 

 

$

0.66

 

Return on average total assets

 

 

0.75

 %

 

 

0.72

 %

 

 

0.58

 %

 

 

0.53

 %

 

 

0.51

 %

Return on average total equity

 

 

11.99

 %

 

 

11.76

 %

 

 

9.43

 %

 

 

9.33

 %

 

 

8.87

 %

Dividend payout ratio

 

 

30.93

 %

 

 

33.71

 %

 

 

41.67

 %

 

 

43.48

 %

 

 

45.45

 %

Fee revenue as a percent of total revenue

 

 

17.11

 %

 

 

17.57

 %

 

 

18.11

 %

 

 

17.32

 %

 

 

16.95

 %

Net interest margin(1)

 

 

2.88

 %

 

 

2.81

 %

 

 

2.91

 %

 

 

2.85

 %

 

 

2.93

 %

Yield on average earning assets

 

 

5.17

 %

 

 

5.01

 %

 

 

5.13

 %

 

 

5.10

 %

 

 

5.03

 %

Rate on average interest-bearing liabilities

 

 

3.27

 %

 

 

3.14

 %

 

 

3.10

 %

 

 

3.09

 %

 

 

2.98

 %

Net interest spread

 

 

1.91

 %

 

 

1.87

 %

 

 

2.03

 %

 

 

2.01

 %

 

 

2.05

 %

Tax equivalent adjustment to net interest income (dollars in thousands)

 

$

28

 

 

$

29

 

 

$

29

 

 

$

29

 

 

$

28

 

Non-interest income to average assets

 

 

1.15

 %

 

 

0.97

 %

 

 

0.78

 %

 

 

0.80

 %

 

 

0.93

 %

Non-interest expense to average assets

 

 

2.81

 %

 

 

2.82

 %

 

 

2.80

 %

 

 

2.92

 %

 

 

3.13

 %

Efficiency ratio(2)

 

 

71.34

 %

 

 

77.00

 %

 

 

77.73

 %

 

 

83.01

 %

 

 

84.71

 %

 

(1) The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The rate utilized is 21%. See the table below for the quarterly tax equivalent net interest income and the reconciliation of net interest income to tax equivalent net interest income. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns a fair amount of nontaxable interest income due to the mix of securities in its investment security portfolio, net interest income for the ratio is calculated on a tax equivalent basis as described above.

 

(2) The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio and sales of repossessed assets. The tax rate utilized is 21%. See the table below for the quarterly tax equivalent net interest income and a reconciliation of net interest income to tax equivalent net interest income. The Company calculates this ratio in order to evaluate its overhead structure or how effectively it is operating. An increase in the ratio from period to period indicates the Company is losing a larger percentage of its income to expenses. The Company believes that the efficiency ratio is a reasonable measure of profitability.

 

 

EAGLE FINANCIAL SERVICES, INC.

SELECTED FINANCIAL DATA BY QUARTER

 

 

3Q24

 

 

2Q24

 

 

1Q24

 

 

4Q23

 

 

3Q23

 

BALANCE SHEET RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans to deposits

 

 

95.95

 %

 

 

97.34

 %

 

 

97.63

 %

 

 

97.10

 %

 

 

96.17

 %

Average interest-earning assets to average-interest bearing liabilities

 

 

142.24

 %

 

 

142.64

 %

 

 

139.97

 %

 

 

137.35

 %

 

 

142.07

 %

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends

 

$

0.30

 

 

$

0.30

 

 

$

0.30

 

 

$

0.30

 

 

$

0.30

 

Book value

 

 

33.20

 

 

 

31.24

 

 

 

30.28

 

 

 

30.78

 

 

 

28.74

 

Tangible book value

 

 

33.20

 

 

 

31.24

 

 

 

30.28

 

 

 

30.78

 

 

 

28.74

 

SHARE PRICE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing price

 

$

32.40

 

 

$

32.99

 

 

$

29.85

 

 

$

30.00

 

 

$

31.90

 

Diluted earnings multiple(1)

 

 

8.35

 

 

 

9.27

 

 

 

10.36

 

 

 

11.03

 

 

 

12.08

 

Book value multiple(2)

 

 

0.98

 

 

 

1.06

 

 

 

0.99

 

 

 

0.97

 

 

 

1.11

 

COMMON STOCK DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding shares at end of period

 

 

3,549,581

 

 

 

3,556,844

 

 

 

3,557,229

 

 

 

3,520,894

 

 

 

3,520,894

 

Weighted average shares outstanding

 

 

3,552,026

 

 

 

3,556,935

 

 

 

3,557,203

 

 

 

3,520,894

 

 

 

3,523,943

 

Weighted average shares outstanding, diluted

 

 

3,552,026

 

 

 

3,556,935

 

 

 

3,557,203

 

 

 

3,520,894

 

 

 

3,523,943

 

CREDIT QUALITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans

 

 

0.08

 %

 

 

(0.02

)%

 

 

0.04

 %

 

 

0.03

 %

 

 

0.01

 %

Total non-performing loans to total loans

 

 

0.16

 %

 

 

0.20

 %

 

 

0.32

 %

 

 

0.40

 %

 

 

0.40

 %

Total non-performing assets to total assets

 

 

0.13

 %

 

 

0.18

 %

 

 

0.28

 %

 

 

0.34

 %

 

 

0.33

 %

Non-accrual loans to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total loans

 

 

0.16

 %

 

 

0.19

 %

 

 

0.29

 %

 

 

0.39

 %

 

 

0.40

 %

total assets

 

 

0.12

 %

 

 

0.15

 %

 

 

0.23

 %

 

 

0.31

 %

 

 

0.32

 %

Allowance for credit/loan losses to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total loans

 

 

1.03

 %

 

 

1.04

 %

 

 

1.00

 %

 

 

0.99

 %

 

 

1.01

 %

non-performing assets

 

 

605.82

 %

 

 

458.72

 %

 

 

290.00

 %

 

 

236.43

 %

 

 

242.83

 %

non-accrual loans

 

 

652.86

 %

 

 

555.46

 %

 

 

347.64

 %

 

 

256.74

 %

 

 

255.80

 %

NON-PERFORMING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans delinquent over 90 days

 

$

83

 

 

$

167

 

 

$

411

 

 

$

181

 

 

$

0

 

Non-accrual loans

 

 

2,344

 

 

 

2,703

 

 

 

4,156

 

 

 

5,645

 

 

 

5,697

 

Other real estate owned and repossessed assets

 

 

99

 

 

 

403

 

 

 

415

 

 

 

304

 

 

 

304

 

NET LOAN CHARGE-OFFS (RECOVERIES):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

 

$

1,382

 

 

$

172

 

 

$

705

 

 

$

427

 

 

$

187

 

(Recoveries)

 

 

(145

)

 

 

(424

)

 

 

(185

)

 

 

(44

)

 

 

(31

)

Net charge-offs (recoveries)

 

 

1,237

 

 

 

(252

)

 

 

520

 

 

 

383

 

 

 

156

 

PROVISION FOR CREDIT LOSSES (dollars in thousands)

 

$

1,525

 

 

$

315

 

 

$

475

 

 

$

366

 

 

$

218

 

ALLOWANCE FOR CREDIT LOSSES (dollars in thousands)

 

$

15,303

 

 

$

15,014

 

 

$

14,448

 

 

$

14,493

 

 

$

14,573

 

 

(1) The diluted earnings multiple (or price earnings ratio) is calculated by dividing the period’s closing market price per share by total equity per weighted average shares outstanding, diluted for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company’s earnings.

 

(2) The book value multiple (or price to book ratio) is calculated by dividing the period’s closing market price per share by the period’s book value per share. The book value multiple is a measure used to compare the Company’s market value per share to its book value per share.

 

 

EAGLE FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

Unaudited
09/30/2024

 

 

Unaudited
06/30/2024

 

 

Unaudited
03/31/2024

 

 

Audited
12/31/2023

 

 

Unaudited
09/30/2023

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

177,605

 

 

$

61,179

 

 

$

68,280

 

 

$

112,066

 

 

$

63,239

 

Federal funds sold

 

 

3,586

 

 

 

62,476

 

 

 

59,353

 

 

 

26,287

 

 

 

78,799

 

Securities available for sale, at fair value

 

 

140,018

 

 

 

138,269

 

 

 

141,106

 

 

 

147,011

 

 

 

142,559

 

Loans held for sale

 

 

3,657

 

 

 

3,058

 

 

 

1,593

 

 

 

1,661

 

 

 

3,564

 

Loans, net of allowance for credit losses

 

 

1,468,025

 

 

 

1,433,920

 

 

 

1,424,604

 

 

 

1,448,193

 

 

 

1,426,412

 

Bank premises and equipment, net

 

 

18,101

 

 

 

18,114

 

 

 

17,954

 

 

 

18,108

 

 

 

18,421

 

Bank owned life insurance

 

 

30,361

 

 

 

30,103

 

 

 

29,843

 

 

 

29,575

 

 

 

24,404

 

Other assets

 

 

40,348

 

 

 

43,286

 

 

 

40,168

 

 

 

42,696

 

 

 

44,072

 

Total assets

 

$

1,881,701

 

 

$

1,790,405

 

 

$

1,782,901

 

 

$

1,825,597

 

 

$

1,801,470

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits

 

$

413,615

 

 

$

415,017

 

 

$

424,869

 

 

$

436,619

 

 

$

430,910

 

Savings and interest bearing demand deposits

 

 

655,601

 

 

 

647,358

 

 

 

666,730

 

 

 

656,439

 

 

 

656,111

 

Time deposits

 

 

476,720

 

 

 

426,209

 

 

 

382,343

 

 

 

413,264

 

 

 

411,359

 

Total deposits

 

$

1,545,936

 

 

$

1,488,584

 

 

$

1,473,942

 

 

$

1,506,322

 

 

$

1,498,380

 

Federal funds purchased

 

 

244

 

 

 

302

 

 

 

347

 

 

 

—

 

 

 

—

 

Federal Home Loan Bank advances, short-term

 

 

—

 

 

 

—

 

 

 

10,000

 

 

 

—

 

 

 

—

 

Federal Home Loan Bank advances, long-term

 

 

170,000

 

 

 

145,000

 

 

 

145,000

 

 

 

165,000

 

 

 

145,000

 

Subordinated debt

 

 

29,495

 

 

 

29,478

 

 

 

29,461

 

 

 

29,444

 

 

 

29,428

 

Other liabilities

 

 

18,182

 

 

 

15,926

 

 

 

16,446

 

 

 

16,452

 

 

 

27,479

 

Commitments and contingent liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total liabilities

 

$

1,763,857

 

 

$

1,679,290

 

 

$

1,675,196

 

 

$

1,717,218

 

 

$

1,700,287

 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $10 par value

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock, $2.50 par value

 

 

8,714

 

 

 

8,707

 

 

 

8,705

 

 

 

8,660

 

 

 

8,660

 

Surplus

 

 

14,633

 

 

 

14,604

 

 

 

14,368

 

 

 

14,280

 

 

 

13,970

 

Retained earnings

 

 

108,927

 

 

 

106,567

 

 

 

104,449

 

 

 

103,445

 

 

 

102,106

 

Accumulated other comprehensive (loss)

 

 

(14,430

)

 

 

(18,763

)

 

 

(19,817

)

 

 

(18,006

)

 

 

(23,553

)

Total shareholders' equity

 

$

117,844

 

 

$

111,115

 

 

$

107,705

 

 

$

108,379

 

 

$

101,183

 

Total liabilities and shareholders' equity

 

$

1,881,701

 

 

$

1,790,405

 

 

$

1,782,901

 

 

$

1,825,597

 

 

$

1,801,470

 

 

 

 

EAGLE FINANCIAL SERVICES, INC.

LOAN DATA

(dollars in thousands)

 

 

9/30/2024

 

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

Mortgage real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Construction & Secured by Farmland

 

$

97,170

 

 

$

81,609

 

 

$

82,692

 

 

$

84,145

 

 

$

80,012

 

   HELOCs

 

 

50,452

 

 

 

46,697

 

 

 

46,329

 

 

 

47,674

 

 

 

44,719

 

   Residential First Lien - Investment

 

 

106,323

 

 

 

112,790

 

 

 

113,813

 

 

 

117,431

 

 

 

120,547

 

   Residential First Lien - Owner Occupied

 

 

198,570

 

 

 

187,807

 

 

 

181,323

 

 

 

178,180

 

 

 

162,919

 

   Residential Junior Liens

 

 

11,956

 

 

 

12,387

 

 

 

12,690

 

 

 

12,831

 

 

 

12,284

 

   Commercial - Owner Occupied

 

 

273,249

 

 

 

257,675

 

 

 

254,744

 

 

 

251,456

 

 

 

244,088

 

   Commercial - Non-Owner Occupied & Multifamily

 

 

357,351

 

 

 

352,892

 

 

 

344,192

 

 

 

348,879

 

 

 

355,122

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   BHG loans

 

 

3,810

 

 

 

4,284

 

 

 

4,740

 

 

 

5,105

 

 

 

5,419

 

   SBA PPP loans

 

 

34

 

 

 

39

 

 

 

45

 

 

 

51

 

 

 

57

 

   Other commercial and industrial loans

 

 

107,320

 

 

 

102,345

 

 

 

95,327

 

 

 

102,672

 

 

 

91,411

 

Marine loans

 

 

225,902

 

 

 

236,890

 

 

 

247,042

 

 

 

251,168

 

 

 

260,518

 

Triad Loans

 

 

23,616

 

 

 

24,579

 

 

 

25,335

 

 

 

25,877

 

 

 

26,519

 

Consumer loans

 

 

8,447

 

 

 

9,497

 

 

 

9,194

 

 

 

16,542

 

 

 

16,019

 

Overdrafts

 

 

215

 

 

 

257

 

 

 

1,559

 

 

 

253

 

 

 

207

 

Other loans

 

 

11,932

 

 

 

11,951

 

 

 

12,466

 

 

 

12,895

 

 

 

13,089

 

Total loans

 

$

1,476,347

 

 

$

1,441,699

 

 

$

1,431,491

 

 

$

1,455,159

 

 

$

1,432,930

 

Net deferred loan costs and premiums

 

 

6,981

 

 

 

7,235

 

 

 

7,561

 

 

 

7,527

 

 

 

8,055

 

Allowance for credit/loan losses

 

 

(15,303

)

 

 

(15,014

)

 

 

(14,448

)

 

 

(14,493

)

 

 

(14,573

)

Net loans

 

$

1,468,025

 

 

$

1,433,920

 

 

$

1,424,604

 

 

$

1,448,193

 

 

$

1,426,412

 

 

 

 

EAGLE FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands)

Unaudited

 

 

9/30/2024

 

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

Interest and Dividend Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

21,143

 

 

$

19,525

 

 

$

19,963

 

 

$

19,420

 

 

$

20,179

 

Interest on federal funds sold

 

 

11

 

 

 

68

 

 

 

39

 

 

 

71

 

 

 

51

 

Interest and dividends on securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable interest income

 

 

712

 

 

 

739

 

 

 

758

 

 

 

771

 

 

 

781

 

Interest income exempt from federal income taxes

 

 

4

 

 

 

3

 

 

 

5

 

 

 

4

 

 

 

3

 

Dividends

 

 

157

 

 

 

155

 

 

 

156

 

 

 

157

 

 

 

147

 

Interest on deposits in banks

 

 

1,659

 

 

 

1,248

 

 

 

982

 

 

 

1,583

 

 

 

1,021

 

Total interest and dividend income

 

$

23,686

 

 

$

21,738

 

 

$

21,903

 

 

$

22,006

 

 

$

22,182

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

$

8,419

 

 

$

7,515

 

 

$

7,424

 

 

$

7,658

 

 

$

6,978

 

Interest on federal funds purchased

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest on Federal Home Loan Bank advances

 

 

1,756

 

 

 

1,712

 

 

 

1,710

 

 

 

1,714

 

 

 

1,943

 

Interest on subordinated debt

 

 

354

 

 

 

355

 

 

 

354

 

 

 

354

 

 

 

354

 

Total interest expense

 

$

10,529

 

 

$

9,582

 

 

$

9,488

 

 

$

9,726

 

 

$

9,275

 

Net interest income

 

$

13,157

 

 

$

12,156

 

 

$

12,415

 

 

$

12,280

 

 

$

12,907

 

Provision For Credit Losses

 

 

1,544

 

 

 

181

 

 

 

475

 

 

 

366

 

 

 

216

 

Net interest income after provision for credit losses

 

$

11,613

 

 

$

11,975

 

 

$

11,940

 

 

$

11,914

 

 

$

12,691

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management fees

 

$

1,515

 

 

$

1,273

 

 

$

1,456

 

 

$

1,315

 

 

$

1,190

 

Service charges on deposit accounts

 

 

518

 

 

 

456

 

 

 

454

 

 

 

467

 

 

 

460

 

Other service charges and fees

 

 

1,117

 

 

 

1,164

 

 

 

969

 

 

 

979

 

 

 

1,252

 

(Loss) gain on the sale of marine finance business

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(28

)

 

 

463

 

(Gain) loss on the sale of bank premises and equipment

 

 

—

 

 

 

(11

)

 

 

—

 

 

 

—

 

 

 

7

 

(Loss) on the sale of AFS securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on sale of loans HFS

 

 

627

 

 

 

492

 

 

 

161

 

 

 

515

 

 

 

265

 

Small business investment company income

 

 

496

 

 

 

259

 

 

 

127

 

 

 

35

 

 

 

151

 

Officer insurance income

 

 

930

 

 

 

269

 

 

 

268

 

 

 

171

 

 

 

184

 

Other operating income

 

 

48

 

 

 

403

 

 

 

45

 

 

 

208

 

 

 

246

 

Total noninterest income

 

$

5,251

 

 

$

4,305

 

 

$

3,480

 

 

$

3,662

 

 

$

4,218

 

Noninterest Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

7,548

 

 

$

7,353

 

 

$

7,185

 

 

$

7,849

 

 

$

7,598

 

Occupancy expenses

 

 

530

 

 

 

470

 

 

 

569

 

 

 

581

 

 

 

570

 

Equipment expenses

 

 

427

 

 

 

401

 

 

 

373

 

 

 

320

 

 

 

341

 

Advertising and marketing expenses

 

 

247

 

 

 

245

 

 

 

237

 

 

 

291

 

 

 

228

 

Stationery and supplies

 

 

35

 

 

 

32

 

 

 

24

 

 

 

44

 

 

 

69

 

ATM network fees

 

 

406

 

 

 

373

 

 

 

380

 

 

 

421

 

 

 

426

 

Loss of sale of reposessed assets

 

 

204

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

FDIC assessment

 

 

343

 

 

 

351

 

 

 

409

 

 

 

478

 

 

 

495

 

Computer software expense

 

 

226

 

 

 

221

 

 

 

233

 

 

 

373

 

 

 

396

 

Bank franchise tax

 

 

342

 

 

 

338

 

 

 

331

 

 

 

339

 

 

 

340

 

Professional fees

 

 

408

 

 

 

511

 

 

 

506

 

 

 

577

 

 

 

497

 

Data processing fees

 

 

679

 

 

 

558

 

 

 

565

 

 

 

513

 

 

 

542

 

Other operating expenses

 

 

1,495

 

 

 

1,657

 

 

 

1,565

 

 

 

1,494

 

 

 

2,631

 

Total noninterest expenses

 

$

12,890

 

 

$

12,510

 

 

$

12,377

 

 

$

13,280

 

 

$

14,133

 

Income before income taxes

 

$

3,974

 

 

$

3,770

 

 

$

3,043

 

 

$

2,296

 

 

$

2,776

 

Income Tax Expense (Benefit)

 

 

550

 

 

 

585

 

 

 

495

 

 

 

(99

)

 

 

457

 

Net income

 

$

3,424

 

 

$

3,185

 

 

$

2,548

 

 

$

2,395

 

 

$

2,319

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

 

$

0.97

 

 

$

0.89

 

 

$

0.72

 

 

$

0.68

 

 

$

0.66

 

Net income per common share, diluted

 

$

0.97

 

 

$

0.89

 

 

$

0.72

 

 

$

0.68

 

 

$

0.66

 

 

 

 

EAGLE FINANCIAL SERVICES, INC.

Average Balances, Income and Expenses, Yields and Rates

(dollars in thousands)

 

 

Three Months Ended

 

 

 

September 30, 2024

 

 

June 30, 2024

 

 

September 30, 2023

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

Average

 

 

Income/

 

 

Average

 

 

Average

 

 

Income/

 

 

Average

 

 

Average

 

 

Income/

 

 

Average

 

Assets:

 

Balance

 

 

Expense

 

 

Rate

 

 

Balance

 

 

Expense

 

 

Rate

 

 

Balance

 

 

Expense

 

 

Rate

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

$

137,183

 

 

$

869

 

 

 

2.52

 %

 

$

137,588

 

 

$

893

 

 

 

2.61

 %

 

$

148,549

 

 

$

928

 

 

 

2.48

 %

Tax-Exempt (1)

 

 

493

 

 

 

5

 

 

 

4.03

 %

 

 

492

 

 

 

5

 

 

 

4.13

 %

 

 

490

 

 

 

4

 

 

 

4.10

 %

Total Securities

 

$

137,676

 

 

$

874

 

 

 

2.53

 %

 

$

138,080

 

 

$

898

 

 

 

2.62

 %

 

$

149,039

 

 

$

932

 

 

 

2.48

 %

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

$

1,461,660

 

 

$

21,041

 

 

 

5.73

 %

 

$

1,424,304

 

 

$

19,421

 

 

 

5.48

 %

 

$

1,458,347

 

 

$

20,077

 

 

 

5.46

 %

Non-accrual

 

 

2,553

 

 

 

—

 

 

 

—

%

 

 

4,600

 

 

 

—

 

 

 

—

%

 

 

3,639

 

 

 

—

 

 

 

—

%

Tax-Exempt (1)

 

 

10,162

 

 

 

129

 

 

 

5.04

 %

 

 

10,603

 

 

 

132

 

 

 

5.01

 %

 

 

10,403

 

 

 

129

 

 

 

4.94

 %

Total Loans

 

$

1,474,375

 

 

$

21,170

 

 

 

5.71

 %

 

$

1,439,507

 

 

$

19,553

 

 

 

5.46

 %

 

$

1,472,389

 

 

$

20,206

 

 

 

5.44

 %

Federal funds sold and interest-bearing deposits in other banks

 

 

211,888

 

 

 

1,670

 

 

 

3.14

 %

 

 

170,858

 

 

 

1,316

 

 

 

3.10

 %

 

 

132,432

 

 

 

1,072

 

 

 

3.21

 %

Total earning assets

 

$

1,823,939

 

 

$

23,714

 

 

 

5.17

 %

 

$

1,748,445

 

 

$

21,767

 

 

 

5.01

 %

 

$

1,753,860

 

 

$

22,210

 

 

 

5.02

 %

Allowance for loan losses

 

 

(14,729

)

 

 

 

 

 

 

 

 

(14,604

)

 

 

 

 

 

 

 

 

(14,642

)

 

 

 

 

 

 

Total non-earning assets

 

 

14,268

 

 

 

 

 

 

 

 

 

33,281

 

 

 

 

 

 

 

 

 

52,307

 

 

 

 

 

 

 

Total assets

 

$

1,823,478

 

 

 

 

 

 

 

 

$

1,767,122

 

 

 

 

 

 

 

 

$

1,791,525

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

 

$

254,996

 

 

$

1,535

 

 

 

2.39

 %

 

$

258,965

 

 

$

1,538

 

 

 

2.39

 %

 

$

241,033

 

 

$

1,354

 

 

 

2.23

 %

Money market accounts

 

 

261,653

 

 

 

1,555

 

 

 

2.36

 %

 

 

261,557

 

 

 

1,463

 

 

 

2.25

 %

 

 

260,692

 

 

 

1,260

 

 

 

1.92

 %

Savings accounts

 

 

132,983

 

 

 

38

 

 

 

0.11

 %

 

 

136,370

 

 

 

39

 

 

 

0.12

 %

 

 

145,673

 

 

 

44

 

 

 

0.12

 %

Time deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$250,000 and more

 

 

159,761

 

 

 

1,932

 

 

 

4.81

 %

 

 

138,531

 

 

 

1,652

 

 

 

4.80

 %

 

 

137,487

 

 

 

1,543

 

 

 

4.45

 %

Less than $250,000

 

 

294,579

 

 

 

3,359

 

 

 

4.54

 %

 

 

255,776

 

 

 

2,823

 

 

 

4.44

 %

 

 

257,257

 

 

 

2,777

 

 

 

4.28

 %

Total interest-bearing deposits

 

$

1,103,972

 

 

$

8,419

 

 

 

3.03

 %

 

$

1,051,199

 

 

$

7,515

 

 

 

2.88

 %

 

$

1,042,142

 

 

$

6,978

 

 

 

2.66

 %

Federal funds purchased

 

 

12

 

 

 

—

 

 

 

—

%

 

 

15

 

 

 

—

 

 

 

—

%

 

 

—

 

 

 

—

 

 

 

—

%

Federal Home Loan Bank advances

 

 

148,804

 

 

 

1,756

 

 

 

4.69

 %

 

 

145,110

 

 

 

1,712

 

 

 

4.74

 %

 

 

162,935

 

 

 

1,943

 

 

 

4.73

 %

Subordinated debt

 

 

29,484

 

 

 

354

 

 

 

4.78

 %

 

 

29,467

 

 

 

355

 

 

 

4.84

 %

 

 

29,416

 

 

 

354

 

 

 

4.78

 %

Total interest-bearing liabilities

 

$

1,282,272

 

 

$

10,529

 

 

 

3.27

 %

 

$

1,225,791

 

 

$

9,582

 

 

 

3.14

 %

 

$

1,234,493

 

 

$

9,275

 

 

 

2.98

 %

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

409,753

 

 

 

 

 

 

 

 

 

417,128

 

 

 

 

 

 

 

 

 

434,807

 

 

 

 

 

 

 

Other Liabilities

 

 

17,838

 

 

 

 

 

 

 

 

 

16,489

 

 

 

 

 

 

 

 

 

18,505

 

 

 

 

 

 

 

Total liabilities

 

$

1,709,863

 

 

 

 

 

 

 

 

$

1,659,408

 

 

 

 

 

 

 

 

$

1,687,805

 

 

 

 

 

 

 

Shareholders' equity

 

 

113,615

 

 

 

 

 

 

 

 

 

107,714

 

 

 

 

 

 

 

 

 

103,720

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

1,823,478

 

 

 

 

 

 

 

 

$

1,767,122

 

 

 

 

 

 

 

 

$

1,791,525

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

13,185

 

 

 

 

 

 

 

 

$

12,185

 

 

 

 

 

 

 

 

$

12,935

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

1.91

 %

 

 

 

 

 

 

 

 

1.87

 %

 

 

 

 

 

 

 

 

2.04

 %

Interest expense as a percent of average earning assets

 

 

 

 

 

 

 

 

2.30

 %

 

 

 

 

 

 

 

 

2.20

 %

 

 

 

 

 

 

 

 

2.10

 %

Net interest margin

 

 

 

 

 

 

 

 

2.88

 %

 

 

 

 

 

 

 

 

2.80

 %

 

 

 

 

 

 

 

 

2.93

 %

 

(1)
Income and yields are reported on tax-equivalent basis using a federal tax rate of 21%.

 

 

EAGLE FINANCIAL SERVICES, INC.

Reconciliation of Tax-Equivalent Net Interest Income

(dollars in thousands)

 

 

 

Three Months Ended

 

 

 

9/30/2024

 

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

GAAP Financial Measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income - Loans

 

$

21,143

 

 

$

19,525

 

 

$

19,963

 

 

$

19,420

 

 

$

20,179

 

Interest Income - Securities and Other Interest-Earnings Assets

 

 

2,543

 

 

 

2,213

 

 

 

1,940

 

 

 

2,586

 

 

 

2,003

 

Interest Expense - Deposits

 

 

8,419

 

 

 

7,515

 

 

 

7,424

 

 

 

7,658

 

 

 

6,978

 

Interest Expense - Other Borrowings

 

 

2,110

 

 

 

2,067

 

 

 

2,064

 

 

 

2,068

 

 

 

2,297

 

Total Net Interest Income

 

$

13,157

 

 

$

12,156

 

 

$

12,415

 

 

$

12,280

 

 

$

12,907

 

Non-GAAP Financial Measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Tax Benefit on Tax-Exempt Interest Income - Loans

 

$

27

 

 

$

28

 

 

$

28

 

 

$

28

 

 

$

27

 

Add: Tax Benefit on Tax-Exempt Interest Income - Securities

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Total Tax Benefit on Tax-Exempt Interest Income

 

$

28

 

 

$

29

 

 

$

29

 

 

$

29

 

 

$

28

 

Tax-Equivalent Net Interest Income

 

$

13,185

 

 

$

12,185

 

 

$

12,444

 

 

$

12,309

 

 

$

12,935