8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2008

EAGLE FINANCIAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Virginia	0-20146	54-1601306
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2 East Main Street P.O. Box 391 Berryville, Virginia	22611
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (540) 955-2510

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On July 21, 2008, the Registrant issued a press release announcing results for the period ended June 30, 2008. A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this Item 2.02.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits. The following exhibit is being furnished pursuant to Item 2.02 above.

Exhibit No.	Description
99.1	Press release dated July 21, 2008.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 21, 2008

Eagle Financial Services, Inc.
By:	/s/ JAMES W. MCCARTY, JR.
	James W. McCarty, Jr.
	Vice President, Chief Financial Officer, and Secretary-Treasurer

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Exhibit Index

Exhibit No.	Description
99.1	Press release dated July 21, 2008.

EX-99.1

EXHIBIT 99.1

Contact:	Jim McCarty
	Vice President and Chief Financial Officer 540-955-2510 jmccarty@bankofclarke.com

EAGLE FINANCIAL SERVICES, INC. ANNOUNCES SECOND

QUARTER RESULTS AND QUARTERLY DIVIDEND

BERRYVILLE, Va., July 21 – Eagle Financial Services, Inc. (OTC BULLETIN BOARD: EFSI), the holding company for Bank of Clarke County, whose divisions include Eagle Investment Group, announces financial results for the quarter ended June 30, 2008 and a quarterly dividend. The Company’s common stock is listed for trading on the Over-the-Counter (OTC) Bulletin Board under the ticker symbol EFSI.

The Company’s net income for the first six months of 2008 was $3.8 million, which represents an increase of $1.1 million or 37% from net income of $2.7 million for the first six months of 2007. The Company’s net income for the second quarter of 2008 was $2.1 million, which is an increase of $0.6 million from net income of $1.5 million for the second quarter of 2007. Diluted earnings per share were $1.20 and $0.88 for the first six months of 2008 and 2007, respectively, which represents an increase of $0.32 or 36%. Diluted earnings per share were $0.66 and $0.49 for the second quarter of 2008 and 2007, respectively. Net interest income was $9.4 million for the first six months of 2008 as compared to $8.5 million during the same period of 2007, which represents an increase of $0.9 million or 11%. Net interest income was $4.9 million for the second quarter of 2008 as compared to $4.3 million during the same period of 2007, which represents an increase of $0.6 million or 13%. Noninterest income was $4.4 million and $3.0 million for the first six months of 2008 and 2007, respectively, which represents an increase of $1.4 million. Noninterest income was $2.5 million and $1.7 million for the second quarter of 2008 and 2007, respectively, which represents an increase of $0.8 million. Noninterest income for the second quarter includes a gain of $742,000 from the sale of a former branch building in downtown Winchester. Noninterest expenses were $7.9 million and $7.5 million for the first six months of 2008 and 2007, respectively, which represents an increase of $0.4 million. Noninterest expenses were $4.1 million and $3.8 million for the second quarter of 2008 and 2007, respectively, which represents an increase of $0.3 million.

Total assets of the Company were $518.4 million at June 30, 2008, which represents an increase of $16.7 million or 3% from $501.7 million at June 30, 2007 and an increase of $10.8 million or 2% from $507.6 million at December 31, 2007. Total loans were $390.7 million at June 30, 2008, which represents an increase of $8.3 million or 2% from $382.4 million at June 30, 2007 and an increase of $1.0 million from $389.7 million at December 31, 2007. Total deposits were $372.2 million at June 30, 2008, which represents a decrease of $21.5 million or 5% from $393.7 million at June 30, 2007 and a decrease of $7.4 million or 2% from $379.6 million at December 31, 2007.

A dividend of $0.17 per share will be paid on August 15, 2008 to shareholders of record as of August 1, 2008. This represents an increase of $0.01 or 6% over the August 15, 2007 dividend of $0.16 per share. The Company’s total dividend was $0.64 per share for 2007 as compared to $0.60 per share for 2006.

This press release may contain “forward-looking statements,” as defined by federal securities laws, which may involve significant risks and uncertainties. The statements are based on estimates and assumptions made by the Company in conjunction with other factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements. Consequently, all forward-looking statements made herein are qualified by the risk factors and other cautionary language in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 and other reports filed with and furnished to the Securities and Exchange Commission.