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EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2024 FIRST QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND

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Eagle Financial Services, Inc. reported its first quarter 2024 financial results, highlighting an increase in earnings per share, decreased noninterest expenses, and improved efficiency. The company also declared a quarterly dividend of $0.30 per share.

Total loan interest income rose by 16.3% compared to the same period last year, driven by an increase in average loans outstanding. Net interest income increased by 1.1% from the previous quarter, while noninterest expenses decreased by 6.8%. Nonperforming assets decreased, reflecting a strong asset quality. The Company's net interest margin was 2.91% for the quarter.

Despite challenges in the market landscape, the company remains focused on delivering value to clients and shareholders, with a commitment to sustainable growth opportunities.

Eagle Financial Services, Inc. ha riportato i risultati finanziari del primo trimestre del 2024, evidenziando un aumento degli utili per azione, una riduzione delle spese non interessate e un miglioramento dell'efficienza. La società ha inoltre dichiarato un dividendo trimestrale di $0,30 per azione. Il reddito da interessi sui prestiti totali è aumentato del 16,3% rispetto allo stesso periodo dell'anno precedente, grazie a un aumento del volume medio dei prestiti in essere. Il reddito netto da interessi è cresciuto dell'1,1% rispetto al trimestre precedente, mentre le spese non interessate sono diminuite del 6,8%. Gli attivi non performanti sono diminuiti, riflettendo una forte qualità degli attivi. Il margine di interesse netto della società è stato del 2,91% per il trimestre. Nonostante le sfide nel panorama di mercato, la società rimane concentrata nel fornire valore ai clienti e agli azionisti, con un impegno verso opportunità di crescita sostenibile.
Eagle Financial Services, Inc. ha reportado los resultados financieros del primer trimestre de 2024, destacando un aumento en las ganancias por acción, una disminución en los gastos no financieros y una mejora en la eficiencia. Además, la compañía declaró un dividendo trimestral de $0.30 por acción. El ingreso por intereses de préstamos totales aumentó un 16,3% en comparación con el mismo período del año anterior, impulsado por un aumento en el promedio de préstamos vigentes. El ingreso neto por intereses aumentó un 1,1% con respecto al trimestre anterior, mientras que los gastos no financieros disminuyeron un 6,8%. Los activos no productivos disminuyeron, reflejando una fuerte calidad de los activos. El margen de interés neto de la compañía fue del 2,91% para el trimestre. A pesar de los desafíos en el panorama del mercado, la compañía sigue enfocada en entregar valor a los clientes y accionistas, con un compromiso hacia oportunidades de crecimiento sostenible.
Eagle Financial Services, Inc.가 2024년도 1분기 재정 결과를 보고하여 주당 수익의 증가, 비이자 비용의 감소 및 효율성 개선을 강조했습니다. 또한 회사는 주당 $0.30의 분기 배당금을 선언했습니다. 총 대출 이자 수입은 평균 대출 증가에 힘입어 지난해 같은 기간에 비해 16.3% 증가했습니다. 순이자 수입은 전 분기 대비 1.1% 증가했으며, 비이자 비용은 6.8% 감소했습니다. 부실 자산이 감소하여 자산의 강한 품질을 반영하였습니다. 회사의 순이자 마진은 분기에 2.91%였습니다. 시장 환경의 도전에도 불구하고 회사는 고객과 주주에게 가치를 제공하고 지속 가능한 성장 기회에 대한 헌신을 포커스하고 있습니다.
Eagle Financial Services, Inc. a rapporté ses résultats financiers pour le premier trimestre de 2024, soulignant une augmentation des bénéfices par action, une diminution des dépenses non liées aux intérêts et une amélioration de l'efficacité. La société a également déclaré un dividende trimestriel de 0,30 $ par action. Le revenu d'intérêt sur prêts totaux a augmenté de 16,3% par rapport à la même période l'année précédente, entraîné par une augmentation des prêts moyens en cours. Le revenu net d'intérêts a augmenté de 1,1% par rapport au trimestre précédent, tandis que les dépenses non liées aux intérêts ont diminué de 6,8%. Les actifs non performants ont diminué, reflétant une forte qualité des actifs. La marge d'intérêt net de l'entreprise était de 2,91% pour le trimestre. Malgré les défis du paysage du marché, l'entreprise reste concentrée sur la livraison de valeur à ses clients et actionnaires, avec un engagement envers des opportunités de croissance durable.
Eagle Financial Services, Inc. berichtete über die finanziellen Ergebnisse des ersten Quartals 2024, mit einem Anstieg des Gewinns pro Aktie, einer Verringerung der Nichtzinsausgaben und einer verbesserten Effizienz. Das Unternehmen hat zudem eine Quartalsdividende von $0,30 pro Aktie erklärt. Das Gesamtdarlehenszinseinkommen stieg im Vergleich zum Vorjahreszeitraum um 16,3%, angetrieben durch eine Erhöhung des durchschnittlichen ausstehenden Darlehensvolumens. Das Nettozinseinkommen stieg gegenüber dem Vorquartal um 1,1%, während die Nichtzinsausgaben um 6,8% sanken. Nicht leistungsfähige Vermögenswerte nahmen ab, was eine starke Vermögensqualität widerspiegelt. Die Nettozinsmarge des Unternehmens lag im Quartal bei 2,91%. Trotz Herausforderungen in der Marktlandschaft bleibt das Unternehmen darauf fokussiert, Wert für Kunden und Aktionäre zu liefern, mit einem Engagement für nachhaltige Wachstumschancen.
Positive
  • Increased earnings per share and decreased noninterest expenses.
  • Improved efficiency and strong performance in the first quarter.
  • Declared a quarterly dividend of $0.30 per share.
  • Total loan interest income rose by 16.3% year-over-year.
  • Net interest income increased by 1.1% from the previous quarter.
  • Nonperforming assets decreased, reflecting strong asset quality.
  • Company's net interest margin was 2.91% for the quarter.
Negative
  • None.

BERRYVILLE, Va., April 26, 2024 /PRNewswire/ -- Eagle Financial Services, Inc. (OTCQX: EFSI), the holding company for Bank of Clarke, whose divisions include Bank of Clarke Wealth Management, announced its first quarter 2024 results. On April 24, 2024, the Board of Directors announced a quarterly common stock cash dividend of $0.30 per common share, payable on May 17, 2024, to shareholders of record on May 6, 2024. Select highlights for the first quarter (compared to the fourth quarter of 2023) include:

  • Noninterest expenses decreased $903 thousand or 6.8% during the quarter.
  • Efficiency ratio decreased to 77.73% during the quarter from 83.01%.
  • Earnings per share increased by $0.03 for the quarter to $0.72.

Brandon Lorey, President and CEO, stated, "We are pleased with our strong performance in the first quarter, which reflects the effectiveness of our business strategy and the dedication of our team. With improved efficiencies, Net Interest Margin, and Earnings Per Share, we are well positioned for 2024. Despite the evolving market landscape, we remain committed to delivering value to our clients and shareholders while pursuing sustainable growth opportunities." 

Income Statement Review

Total loan interest income was $20.0 million and $19.4 million for the quarters ended March 31, 2024 and December 31, 2023, respectively.  Total loan interest income was $17.2 million for the quarter ended March 31, 2023. Total loan interest income increased $2.8 million or 16.3% from the quarter ended March 31, 2023 to the quarter ended March 31, 2024. Average loans for the quarter ended March 31, 2024 were $1.45 billion compared to $1.37 billion for the quarter ended March 31, 2023.  The tax equivalent yield on average loans for the quarter ended March 31, 2024 was 5.54%, an increase of 44 basis points from the 5.10% average yield for the same time period in 2023. The increase in loan interest income during the first quarter of 2024 compared to the fourth quarter of 2023 is mainly due to the increase in the average loans outstanding during the period. The majority of the increase compared to March 31, 2023 can be attributed to the current rising interest rate environment and the increase in the average loans outstanding during the period.

Interest and dividend income from the investment portfolio was $919 thousand for the quarter ended March 31, 2024 compared to $932 thousand for the quarter ended December 31, 2023. Interest income and dividend income from the investment portfolio was $891 thousand for the quarter ended March 31, 2023. The tax equivalent yield on average investments for the quarter ended March 31, 2024 was 2.58%, down five basis points from 2.63% for the quarter ended December 31, 2023 and up 29 basis points from 2.26% for the quarter ended March 31, 2023.

Total interest expense was $9.5 million for the three months ended March 31, 2024 and $9.7 million and $5.9 million for three months ended December 31, 2023 and March 31, 2023, respectively. The decline in interest expense between March 31, 2024 and December 31, 2023 was due mostly to a reduction in average noninterest-bearing liabilities during the period. The increase in interest expense from March 31, 2023 to March 31, 2024 resulted from increases on rates paid on deposit accounts and Federal Home Loan Bank advances entered into during 2022 and 2023 with varying interest rates and terms. The average cost of interest-bearing liabilities increased one and 87 basis points when comparing the quarter ended March 31, 2024 to the quarters ended December 31, 2023 and  March 31, 2023, respectively. The average balance of interest-bearing liabilities decreased $18.6 million from the quarter ended December 31, 2023 to the quarter ended March 31, 2024. The average balance of interest-bearing liabilities increased $170.6 million from the quarter ended March 31, 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 March 31, 2024 was $12.4 million reflecting an increase of 1.1% from the quarter ended December 31, 2023 and a decrease of 1.7% from the quarter ended March 31, 2023. Net interest income was $12.3 million and $12.6 million for the quarters ended December 31, 2023 and March 31, 2023, respectively.

Net income for the quarter ended March 31, 2024 was $2.5 million reflecting an increase of 6.4% from the quarter ended December 31, 2023 and a decrease of 1.4% from the quarter ended March 31, 2023. The increase from the quarter ended December 31, 2023 was due mainly to the $664 thousand decrease in salaries and employee benefits largely due to larger incentive accruals that needed to be made in the fourth quarter of 2023 as employees reached certain goals. Net income was $2.4 million for the three-month period ended December 31, 2023 and $2.6 million for the quarter ended March 31, 2023.

The net interest margin was 2.91% for the quarter ended March 31, 2024. For the quarters ended December 31, 2023 and March 31, 2023, the net interest margin was 2.85% and 3.27%, respectively. 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 $3.5 million for the quarter ended March 31, 2024, which represented a decrease of $182 thousand or 5.0% from the $3.7 million for the three months ended December 31, 2023. Noninterest income for the quarter ended March 31, 2023 was $3.5 million. The decrease from the quarter ended December 31, 2023 was mainly due to the reduction of gains on loans held for sale.

Noninterest expense decreased $903 thousand, or 6.8%, to $12.4 million for the quarter ended March 31, 2024 from $13.3 million for the quarter ended December 31, 2023. Noninterest expense was $12.4 million for the quarter ended March 31, 2023, representing an decrease of $9 thousand or 0.1% when comparing the quarter ended March 31, 2024 to the quarter ended March 31, 2023. A decrease in salaries and benefits expenses was noted between March 31, 2024 and December 31, 2023. This is mainly due to larger incentive accruals that needed to be made in the fourth quarter of 2023 as employees reached certain goals. 

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 $6.1 million or 0.34% of total assets at December 31, 2023 to $5.0 million or 0.28% of total assets at March 31, 2024. Nonperforming assets were $2.0 million at March 31, 2023.  Total nonaccrual loans were $4.2 million at March 31, 2024 and $5.7 million at December 31, 2023. Nonaccrual loans were $1.8 million at March 31, 2023. Nonperforming assets decreased between December 31, 2023 and March 31, 2024 mainly due to one large relationship paying off. Nonaccrual loans, and in turn nonperforming assets, increased during 2023 due mainly to two loan relationships, one residential real estate relationship totaling $1.1 million and a non-owner occupied commercial real estate loan in the amount of $2.4 million. 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 March 31, 2024, December 31, 2023 and March 31, 2023.

The Company realized $520 thousand in net charge-offs for the quarter ended March 31, 2024 compared to $383 thousand for the three months ended December 31, 2023. During the three months ended March 31, 2023, $709 thousand in net charge-offs were recognized.

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 $475 thousand in provision for credit loss for the quarter ended March 31, 2024 due mainly to replacing the charge-offs that occurred during the quarter. The Company recognized provision for credit losses of $366 thousand and $664 thousand for the quarters ended December 31, 2023 and March 31, 2023, respectively. The provision for the quarters ended December 31, 2023 and March 31, 2023 was mainly needed to keep pace with strong loan growth.

The ratio of allowance for credit losses to total loans was 1.00% and 0.99% at March 31, 2024 and December 31, 2023, respectively. The ratio of allowance for loan losses to total loans was 1.00% at March 31, 2023. The ratio of allowance for credit losses to total nonaccrual loans was 347.64% and 256.74% at March 31, 2024 and December 31, 2023, respectively.  The ratio of allowance for loan losses to total nonaccrual loans was 758.56% at March 31, 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 March 31, 2024 were $1.78 billion, which represented a decrease of $42.7 million or 2.34% from total assets of $1.83 billion at December 31, 2023. At March 31, 2023, total consolidated assets were $1.76 billion. Much of the decline in consolidated assets during the quarter ended March 31, 2024 was due to the decrease in net loans. Most of the decrease in loans during the quarter was in consumer and commercial & industrial loans. The majority of growth in consolidated assets between March 31, 2023 and March 31, 2024 was due to growth in net loans. Much of the loan growth was in consumer real estate.

Total cash and cash equivalents (including cash and due from banks and federal funds sold) decreased $10.7 million or 7.8% as of March 31, 2024, compared to December 31, 2023. Cash and cash equivalents decreased as a percentage of total assets to 7.2% as of March 31, 2024 as compared to 7.6% at December 31, 2023 and 7.3% at March 31, 2023. The year over year and prior quarter change was minimal.

At March 31, 2024, total securities available for sale were $141.1 million, a decrease of $5.9 million from December 31, 2023, and a decrease of $19.1 million from March 31, 2023. At  March 31, 2024, total net unrealized losses on the AFS securities portfolio were $25.1 million, an increase of $2.3 million from total net unrealized losses on AFS securities of $22.8 million at December 31, 2023 and an increase of $3.0 million from March 31, 2023.

Total net loans decreased $23.6 million from $1.45 billion at December 31, 2023 to $1.42 billion at March 31, 2024. During the quarter ended March 31, 2024, through the normal course of business, $10.2 million in mortgage loans were sold on the secondary market. These loan sales resulted in net gains of $161 thousand. In addition, consumer loans decreased by $7.3 million due to a large loan payoff during the first quarter.

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 $247.0 million as of March 31, 2024, are still assets of Bank of Clarke. 

Total deposits decreased to $1.47 billion as of March 31, 2024 when compared to December 31, 2023 deposits of $1.51 billion. At March 31, 2023 total deposits were $1.39 billion.  During the first quarter of 2024, total deposits decreased $32.4 million. The majority of this decrease was due to time deposit balances decreasing by $30.9 million. Time deposits as a percentage of total deposits have increased from 19.6% at March 31, 2023 to 25.9% at March 31, 2024.  Time deposits as a percentage of total deposits decreased from 27.4% at December 31, 2023. The increase in deposits between March 31, 2023 and  March 31, 2024 was mainly due to the core growth at a rate of 111.9% compared to non-core decline at 11.9%. At March 31, 2024, over 75% of deposits were fully FDIC insured.

The Company had $155.0 million and $165.0 million, respectively, in outstanding borrowings from the Federal Home Loan Bank of Atlanta at March 31, 2024 and December 31, 2023.  There was $220.0 million in outstanding borrowings from the Federal Home Loan Bank as of  March 31, 2023.  The average rate paid on Federal Home Loan Bank advances as of March 31, 2024 and December 31, 2023 was 4.71% and 4.76%, respectively.  These borrowings were used mainly to fund the strong loan growth that occurred during 2023.

On March 31, 2022, the Company entered into Subordinated Note Purchase Agreements with certain qualified institutional buyers and accredited institutional investors, pursuant to which the Company issued 4.50% Fixed-to-Floating Rate Subordinated Notes due 2032, in the aggregate principal amount of $30.0 million.

Shareholders' equity was $107.7 million and $108.4 million at March 31, 2024 and December 31, 2023, respectively. Shareholders' equity was $104.5 million at March 31, 2023. Shareholders' equity has been impacted by an accumulated other comprehensive loss related to securities available-for-sale. These unrealized losses are primarily a result of rapid increases in interest rates during 2022 and 2023. The book value of the Company at March 31, 2024 was $30.28 per common share. Total common shares outstanding were 3,557,229 at March 31, 2024. On April 24, 2024, the Board of Directors announced a quarterly common stock cash dividend of $0.30 per common share, payable on May 17, 2024, to shareholders of record on May 6, 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; changes in interest rates; 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




1Q24



4Q23



3Q23



2Q23



1Q23


Net Income (dollars in thousands)


$

2,548



$

2,395



$

2,319



$

2,058



$

2,585


Earnings per share, basic


$

0.72



$

0.69



$

0.66



$

0.58



$

0.73


Earnings per share, diluted


$

0.72



$

0.69



$

0.66



$

0.58



$

0.73


Return on average total assets



0.57

%



0.53

%



0.51

%



0.48

%



0.63

%

Return on average total equity



9.41

%



9.33

%



8.87

%



7.93

%



9.99

%

Dividend payout ratio



41.67

%



43.48

%



45.45

%



51.72

%



41.10

%

Fee revenue as a percent of total revenue



18.11

%



17.32

%



16.95

%



18.01

%



16.33

%

Net interest margin(1)



2.91

%



2.85

%



2.93

%



2.99

%



3.27

%

Yield on average earning assets



5.13

%



5.10

%



5.03

%



4.88

%



4.79

%

Rate on average interest-bearing liabilities



3.10

%



3.09

%



2.98

%



2.71

%



2.23

%

Net interest spread



2.03

%



2.01

%



2.05

%



2.17

%



2.56

%

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


$

29



$

29



$

28



$

25



$

26


Non-interest income to average assets



0.78

%



0.80

%



0.93

%



0.78

%



0.85

%

Non-interest expense to average assets



2.79

%



2.92

%



3.13

%



3.00

%



3.00

%

Efficiency ratio(2)



77.73

%



83.01

%



84.71

%



81.91

%



76.52

%



(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




1Q24



4Q23



3Q23



2Q23



1Q23


BALANCE SHEET RATIOS
















Loans to deposits



97.63

%



97.10

%



96.17

%



100.89

%



100.77

%

Average interest-earning assets to average-interest bearing liabilities



139.97

%



137.35

%



142.07

%



142.63

%



146.06

%

PER SHARE DATA
















Dividends


$

0.30



$

0.30



$

0.30



$

0.30



$

0.30


Book value



30.28




30.78




28.74




29.47




29.65


Tangible book value



30.28




30.78




28.74




29.47




29.65


SHARE PRICE DATA
















Closing price


$

29.85



$

30.00



$

31.90



$

30.50



$

33.96


Diluted earnings multiple(1)



10.36




11.03




12.08




13.15




11.63


Book value multiple(2)



0.99




0.97




1.11




1.04




1.15


COMMON STOCK DATA
















Outstanding shares at end of period



3,557,229




3,520,894




3,520,894




3,528,240




3,522,874


Weighted average shares outstanding



3,557,203




3,520,894




3,523,943




3,526,934




3,522,431


Weighted average shares outstanding, diluted



3,557,203




3,520,894




3,523,943




3,526,934




3,522,431


CAPITAL RATIOS (BANK ONLY)
















      Leverage ratio



8.77

%



8.48

%



8.36

%



8.61

%



9.02

%

CREDIT QUALITY
















Net charge-offs to average loans



0.04

%



0.03

%



0.01

%



(0.01)

%



0.00

%

Total non-performing loans to total loans



0.32

%



0.40

%



0.40

%



0.23

%



0.14

%

Total non-performing assets to total assets



0.28

%



0.34

%



0.33

%



0.19

%



0.11

%

Non-accrual loans to:
















total loans



0.29

%



0.39

%



0.40

%



0.21

%



0.13

%

total assets



0.23

%



0.31

%



0.32

%



0.17

%



0.10

%

Allowance for credit/loan losses to:
















total loans



1.00

%



0.99

%



1.01

%



0.99

%



1.00

%

non-performing assets



290.00

%



236.43

%



242.83

%



433.94

%



702.77

%

non-accrual loans



347.64

%



256.74

%



255.80

%



466.74

%



758.56

%

NON-PERFORMING ASSETS:
















(dollars in thousands)
















Loans delinquent over 90 days


$

411



$

181



$

0



$

235



$

146


Non-accrual loans



4,156




5,645




5,697




3,109




1,839


Other real estate owned and repossessed assets



415




304




304








NET LOAN CHARGE-OFFS (RECOVERIES):
















(dollars in thousands)
















Loans charged off


$

705



$

427



$

187



$

52



$

75


(Recoveries)



(185)




(44)




(31)




(202)




(21)


Net charge-offs (recoveries)



520




383




156




(150)




54


PROVISION FOR CREDIT LOSSES (dollars in thousands)


$

475



$

366



$

1,283



$

403



$

709


ALLOWANCE FOR CREDIT LOSSES (dollars in thousands)


$

14,448



$

14,493



$

14,573



$

14,511



$

13,950




(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
03/31/2024



Audited
12/31/2023



Unaudited
09/30/2023



Unaudited
06/30/2023



Unaudited
03/31/2023


Assets
















Cash and due from banks


$

68,280



$

112,066



$

63,239



$

48,907



$

117,342


Federal funds sold



59,353




26,287




78,799




29,988




11,373


Securities available for sale, at fair value



141,106




147,011




142,559




151,513




160,192


Loans held for sale



1,593




1,661




3,564




3,570





Loans, net of allowance for credit losses



1,424,604




1,448,193




1,426,412




1,456,459




1,386,750


Bank premises and equipment, net



17,954




18,108




18,421




18,064




17,827


Bank owned life insurance



29,843




29,575




24,404




24,219




24,041


Other assets



40,168




42,696




44,072




43,996




39,197


Total assets


$

1,782,901



$

1,825,597



$

1,801,470



$

1,776,716



$

1,756,722


Liabilities and Shareholders' Equity
















Liabilities
















Deposits:
















Noninterest bearing demand deposits


$

424,869



$

436,619



$

430,910



$

433,220



$

464,123


Savings and interest bearing demand deposits



666,730




656,439




656,111




645,834




652,802


Time deposits



382,343




413,264




411,359




378,954




273,026


Total deposits


$

1,473,942



$

1,506,322



$

1,498,380



$

1,458,008



$

1,389,951


Federal funds purchased



347














Federal Home Loan Bank advances, short-term



10,000










25,000




125,000


Federal Home Loan Bank advances, long-term



145,000




165,000




145,000




145,000




95,000


Subordinated debt



29,461




29,444




29,428




29,411




29,394


Other liabilities



16,446




16,452




27,479




15,327




12,917


Commitments and contingent liabilities
















Total liabilities


$

1,675,196



$

1,717,218



$

1,700,287



$

1,672,746



$

1,652,262


Shareholders' Equity
















Preferred stock, $10 par value
















Common stock, $2.50 par value



8,705




8,660




8,660




8,661




8,651


Surplus



14,368




14,280




13,970




13,881




13,435


Retained earnings



104,449




103,445




102,106




100,844




99,845


Accumulated other comprehensive (loss)



(19,817)




(18,006)




(23,553)




(19,416)




(17,471)


Total shareholders' equity


$

107,705



$

108,379



$

101,183



$

103,970



$

104,460


Total liabilities and shareholders' equity


$

1,782,901



$

1,825,597



$

1,801,470



$

1,776,716



$

1,756,722


 

EAGLE FINANCIAL SERVICES, INC.

LOAN DATA

(dollars in thousands)




3/31/2024



12/31/2023



9/30/2023



6/30/2023



3/31/2023


Mortgage real estate loans:
















   Construction & Secured by Farmland


$

82,692



$

84,145



$

80,012



$

95,433



$

90,660


   HELOCs



46,329




47,674




44,719




44,333




41,827


   Residential First Lien - Investor



113,813




117,431




120,547




117,265




113,483


   Residential First Lien - Owner Occupied



181,323




178,180




162,919




142,417




130,383


   Residential Junior Liens



12,690




12,831




12,284




11,869




11,142


   Commercial - Owner Occupied



254,744




251,456




244,088




243,610




238,578


   Commercial -  Non-Owner Occupied & Multifamily



344,192




348,879




355,122




350,210




353,330


Commercial and industrial loans:
















   BHG loans



4,740




5,105




5,419




5,747




6,185


   SBA PPP loans



45




51




57




62




69


   Other commercial and industrial loans



95,327




102,672




91,411




95,012




95,943


Marine loans



247,042




251,168




260,518




299,304




253,893


Triad Loans



25,335




25,877




26,519




27,157




27,795


Consumer loans



9,194




16,542




16,019




16,486




16,046


Overdrafts



1,559




253




207




308




151


Other loans



12,466




12,895




13,089




13,805




13,608


Total loans


$

1,431,491



$

1,455,159



$

1,432,930



$

1,463,018



$

1,393,093


Net deferred loan costs and premiums



7,561




7,527




8,055




7,952




7,609


Allowance for credit/loan losses



(14,448)




(14,493)




(14,573)




(14,511)




(13,950)


Net loans


$

1,424,604



$

1,448,193



$

1,426,412



$

1,456,459



$

1,386,752


 

EAGLE FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands)

Unaudited




3/31/2024



12/31/2023



9/30/2023



6/30/2023



3/31/2023


Interest and Dividend Income
















Interest and fees on loans


$

19,963



$

19,420



$

20,179



$

18,754



$

17,167


Interest on federal funds sold



39




71




51




28




10


Interest and dividends on securities available for sale:
















Taxable interest income



758




771




781




785




804


Interest income exempt from federal income taxes



5




4




3




5




4


Dividends



156




157




147




136




83


Interest on deposits in banks



991




1,592




1,030




656




490


Total interest and dividend income


$

21,912



$

22,015



$

22,191



$

20,364



$

18,558


Interest Expense
















Interest on deposits


$

7,424



$

7,658



$

6,978



$

5,535



$

3,459


Interest on federal funds purchased















70


Interest on Federal Home Loan Bank advances



1,710




1,714




1,943




2,032




2,031


Interest on subordinated debt



354




354




354




355




354


Total interest expense


$

9,488



$

9,726



$

9,275



$

7,922



$

5,914


Net interest income


$

12,424



$

12,289



$

12,916



$

12,442



$

12,644


Provision For Credit Losses



475




366




216




403




664


Net interest income after provision for credit losses


$

11,949



$

11,923



$

12,700



$

12,039



$

11,980


Noninterest Income
















Wealth management fees


$

1,456



$

1,315



$

1,190



$

1,263



$

1,158


Service charges on deposit accounts



454




467




460




447




436


Other service charges and fees



969




979




1,252




1,135




1,047


Gain on the sale of marine finance business






(28)




463








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









7




7





(Loss) on the sale of AFS securities
















Gain on sale of loans HFS



161




515




265




192




456


Officer insurance income



267




171




184




179




179


Other operating income



164




234




388




134




250


Total noninterest income


$

3,471



$

3,653



$

4,209



$

3,357



$

3,526


Noninterest Expenses
















Salaries and employee benefits


$

7,185



$

7,849



$

7,598



$

7,561



$

7,298


Occupancy expenses



569




581




570




533




518


Equipment expenses



373




320




341




315




323


Advertising and marketing expenses



237




291




228




342




296


Stationery and supplies



24




44




69




56




22


ATM network fees



380




421




426




365




351


Other real estate owned expenses















5


(Gain) on the sale of other real estate owned















(7)


FDIC assessment



409




478




495




346




266


Computer software expense



233




373




396




281




310


Bank franchise tax



331




339




340




313




263


Professional fees



506




577




497




753




713


Data processing fees



565




513




542




478




402


Other operating expenses



1,565




1,494




2,631




1,612




1,626


Total noninterest expenses


$

12,377



$

13,280



$

14,133



$

12,955



$

12,386


Income before income taxes


$

3,043



$

2,296



$

2,776



$

2,441



$

3,120


Income Tax Expense (Benefit)



495




(99)




457




383




535


Net income


$

2,548



$

2,395



$

2,319



$

2,058



$

2,585


Earnings Per Share
















Net income per common share, basic


$

0.72



$

0.68



$

0.66



$

0.58



$

0.73


Net income per common share, diluted


$

0.72



$

0.68



$

0.66



$

0.58



$

0.73


 

EAGLE FINANCIAL SERVICES, INC.

Average Balances, Income and Expenses, Yields and Rates

(dollars in thousands)




Three Months Ended




March 31, 2024



December 31, 2023



March 31, 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


$

142,700



$

914




2.58

%


$

139,978



$

928




2.63

%


$

157,078



$

886




2.29

%

Tax-Exempt (1)



499




6




4.08

%



485




5




4.13

%



545




6




4.16

%

Total Securities


$

143,199



$

920




2.58

%


$

140,463



$

933




2.63

%


$

157,623



$

892




2.29

%

Loans:




























Taxable


$

1,433,871



$

19,858




5.57

%


$

1,434,928



$

19,316




5.34

%


$

1,355,259



$

17,076




5.11

%

Non-accrual



5,618







%



5,452







%



2,093







%

Tax-Exempt (1)



10,706




133




4.99

%



10,602




132




4.95

%



9,594




116




4.91

%

Total Loans


$

1,450,195



$

19,991




5.54

%


$

1,450,982



$

19,448




5.32

%


$

1,366,946



$

17,192




5.10

%

Federal funds sold and interest-bearing deposits in other banks



127,205




1,030




3.26

%



122,502




1,663




5.39

%



48,779




500




4.16

%

Total earning assets


$

1,720,599



$

21,941




5.13

%


$

1,713,947



$

22,044




5.10

%


$

1,573,348



$

18,584




4.79

%

Allowance for loan losses



(14,536)










(14,420)










(13,426)








Total non-earning assets



53,112










103,876










97,863








Total assets


$

1,759,175









$

1,803,403









$

1,657,785








Liabilities and Shareholders' Equity:




























Interest-bearing deposits:




























NOW accounts


$

256,282



$

1,497




2.35

%


$

258,935



$

1,582




2.42

%


$

236,210



$

1,055




1.81

%

Money market accounts



263,755




1,413




2.15

%



257,360




1,297




2.00

%



258,077




841




1.32

%

Savings accounts



138,737




41




0.12

%



140,445




42




0.12

%



166,803




53




0.13

%

Time deposits:




























$250,000 and more



143,294




1,701




4.77

%



148,133




1,758




4.71

%



77,777




567




2.96

%

Less than $250,000



251,853




2,772




4.43

%



267,873




2,979




4.41

%



128,118




943




2.99

%

Total interest-bearing deposits


$

1,053,921



$

7,424




2.83

%


$

1,072,746



$

7,658




2.83

%


$

866,985



$

3,459




1.62

%

Federal funds purchased



11







%









%



11,179




70




2.54

%

Federal Home Loan Bank advances



145,879




1,710




4.72

%



145,652




1,714




4.67

%



169,667




2,031




4.85

%

Subordinated debt



29,450




354




4.84

%



29,434




354




4.78

%



29,383




354




4.89

%

Total interest-bearing liabilities


$

1,229,261



$

9,488




3.10

%


$

1,247,832



$

9,726




3.09

%


$

1,077,214



$

5,914




2.23

%

Noninterest-bearing liabilities:




























Demand deposits



405,166










432,767










462,265








Other Liabilities



17,268










20,948










14,567








Total liabilities


$

1,651,695









$

1,701,547









$

1,554,046








Shareholders' equity



107,480










101,856










103,739








Total liabilities and shareholders' equity


$

1,759,175









$

1,803,403









$

1,657,785








Net interest income





$

12,453









$

12,318









$

12,670





Net interest spread









2.03

%









2.01

%









2.56

%

Interest expense as a percent of average earning assets









2.22

%









2.25

%









1.52

%

Net interest margin









2.91

%









2.85

%









3.27

%



(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




3/31/2024



12/31/2023



9/30/2023



6/30/2023



3/31/2023


GAAP Financial Measurements:
















Interest Income - Loans


$

19,963



$

19,420



$

20,179



$

18,754



$

17,167


Interest Income - Securities and Other Interest-Earnings Assets



1,949




2,595




2,012




1,610




1,391


Interest Expense - Deposits



7,424




7,658




6,978




5,535




3,459


Interest Expense - Other Borrowings



2,064




2,068




2,297




2,387




2,455


Total Net Interest Income


$

12,424



$

12,289



$

12,916



$

12,442



$

12,644


Non-GAAP Financial Measurements:
















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


$

28



$

28



$

27



$

24



$

25


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



1




1




1




1




1


Total Tax Benefit on Tax-Exempt Interest Income


$

29



$

29



$

28



$

25



$

26


Tax-Equivalent Net Interest Income


$

12,453



$

12,318



$

12,944



$

12,467



$

12,670


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2024-first-quarter-financial-results-and-quarterly-dividend-302128726.html

SOURCE Eagle Financial Services, Inc.

FAQ

What was Eagle Financial Services, Inc.'s quarterly dividend per share?

Eagle Financial Services, Inc. declared a quarterly common stock cash dividend of $0.30 per common share.

How did the company's total loan interest income compare to the same period last year?

Total loan interest income rose by 16.3% compared to the same period last year, driven by an increase in average loans outstanding.

What was the company's net interest margin for the quarter?

The Company's net interest margin was 2.91% for the quarter.

What was the percentage change in noninterest expenses for the quarter?

Noninterest expenses decreased by 6.8% for the quarter.

How did the company's net interest income change from the previous quarter?

Net interest income increased by 1.1% from the previous quarter.

EAGLE FINCL SVCS INC

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