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

Rhea-AI Summary

Eagle Financial Services (OTCQX: EFSI) announced its Q2 2024 financial results on July 26, 2024. Key highlights include a $824K increase in noninterest income, a 25% rise in net income to $3.2M, and a 17 cent boost in EPS to $0.89. Return on average total equity grew from 9.43% to 11.89%, and nonperforming assets decreased from $5.0M to $3.3M. However, net interest income dipped by 2.1% to $12.2M, and interest expense rose slightly to $9.6M, impacted by deposit rate specials. The company also announced a quarterly dividend of $0.30 per common share, payable on August 16, 2024, to shareholders of record as of August 5, 2024. Total consolidated assets stood at $1.79B, up by $7.5M from Q1 2024. Meanwhile, total deposits grew to $1.49B, and shareholders' equity increased to $111.1M. Operations saw a decrease in cash and cash equivalents by $4.0M and net unrealized losses on securities improved by $1.3M. The book value per common share was $31.24.

Positive

• Noninterest income increased by $824K or 23.7%.
• Net income rose by 25% to $3.2M.
• EPS increased by $0.17 to $0.89.
• Return on average total equity grew from 9.43% to 11.89%.
• Nonperforming assets decreased from $5.0M to $3.3M.
• Total deposits increased to $1.49B.
• Shareholders' equity increased to $111.1M.

Negative

• Net interest income decreased by 2.1% to $12.2M.
• Interest expense rose to $9.6M due to deposit rate specials.
• Net interest margin decreased to 2.81%.

BERRYVILLE, Va., July 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 second quarter 2024 results. On July 24, 2024, the Board of Directors announced a quarterly common stock cash dividend of $0.30 per common share, payable on August 16, 2024, to shareholders of record on August 5, 2024. Select highlights for the second quarter (compared to the first quarter of 2024) include:

• Noninterest income increased $824 thousand or 23.7% during the quarter.
• Return on average total equity increased from 9.43% to 11.89%.
• Earnings per share increased by $0.17 for the quarter to $0.89.

Brandon Lorey, President and CEO, stated, "Reflecting on our performance in the second quarter of 2024, we have demonstrated resilience and strategic agility in a dynamic economic landscape. Despite the challenges posed by market fluctuations and interest rate pressures, our focus on organic growth and operational excellence has allowed us to maintain a robust financial position. We remain optimistic about the future, as we continue to leverage our strengths and explore new opportunities for growth and innovation."

Income Statement Review

Net income for the quarter ended June 30, 2024 was $3.2 million reflecting an increase of 25.0% from the quarter ended March 31, 2024 and an increase of 54.8% from the quarter ended June 30, 2023. The increase from the quarter ended March 31, 2024 was due mainly to the $824 thousand increase in total noninterest income. The increase of total noninterest income was due to increased sales activity in loans held for sale resulting in a $492 thousand gain on sale of loans held for sale for the quarter ended June 30, 2024 compared to $161 thousand for the quarter ended March 31, 2024. Other operating income also increased due to a $254 thousand bank owned life insurance (BOLI) payout. Net income was $2.4 million for the three-month period ended March 31, 2024 and $2.1 million for the quarter ended June 30, 2023.

Total loan interest income was $19.5 million and $20.0 million for the quarters ended June 30, 2024 and March 31, 2024, respectively.  Total loan interest income was $18.8 million for the quarter ended June 30, 2023. Total loan interest income increased $771 thousand or 4.1% from the quarter ended June 30, 2023 to the quarter ended June 30, 2024. Average loans remained stable at 1.44 billion for the quarters ended June 30, 2024 and June 30, 2023. The tax equivalent yield on average loans for the quarter ended June 30, 2024 was 5.46%, an increase of 22 basis points from the 5.24% average yield for the same time period in 2023. The decrease in loan interest income during the second quarter of 2024 compared to the first quarter of 2024 is mainly due to early payoffs in the marine portfolio which negatively impacted deferred fees, which are included in loan interest income. The majority of the increase compared to June 30, 2023 can be attributed to the current rising interest rate environment.

Interest and dividend income from the investment portfolio was $897 thousand for the quarter ended June 30, 2024 compared to $919 thousand for the quarter ended March 31, 2024. Interest income and dividend income from the investment portfolio was $926 thousand for the quarter ended June 30, 2023. The tax equivalent yield on average investments for the quarter ended June 30, 2024 was 2.62%, up four basis points from 2.58% for the quarter ended March 31, 2024 and up 23 basis points from 2.39% for the quarter ended June 30, 2023.

Total interest expense was $9.6 million for the three months ended June 30, 2024 and $9.5 million and $7.9 million for three months ended March 31, 2024 and June 30, 2023, respectively. The slight increase in interest expense between June 30, 2024 and March 31, 2024 was due mostly to deposit rate specials during the quarter. The increase in interest expense from June 30, 2023 to June 30, 2024 resulted from deposit rate specials during the year. The average cost of interest-bearing liabilities increased four and 43 basis points when comparing the quarter ended June 30, 2024 to the quarters ended March 31, 2024 and  June 30, 2023, respectively. The average balance of interest-bearing liabilities decreased $3.5 million from the quarter ended March 31, 2024 to the quarter ended June 30, 2024. The average balance of interest-bearing liabilities increased $51.9 million from the quarter ended June 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 June 30, 2024 was $12.2 million reflecting a decrease of 2.1% from the quarter ended March 31, 2024 and a decrease of 2.2% from the quarter ended June 30, 2023. Net interest income was $12.4 million for the quarters ended March 31, 2024 and June 30, 2023.

The net interest margin was 2.81% for the quarter ended June 30, 2024. For the quarters ended March 31, 2024 and June 30, 2023, the net interest margin was 2.91% and 2.99%, 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. 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 $4.3 million for the quarter ended June 30, 2024, which represented an increase of $824 thousand or 23.7% from the $3.5 million for the three months ended March 31, 2024. Noninterest income for the quarter ended June 30, 2023 was $3.4 million. The increase from the quarter ended March 31, 2024 was mainly due to the increase of gains on loans held for sale and a $254 thousand BOLI payout. 

Noninterest expense increased $133 thousand, or 1.1%, to $12.5 million for the quarter ended June 30, 2024 from $12.4 million for the quarter ended March 31, 2024. Noninterest expense was $13.0 million for the quarter ended June 30, 2023, representing an decrease of $445 thousand or 3.4% when comparing the quarter ended June 30, 2024 to the quarter ended June 30, 2023. A $168 thousand or 2.3% increase in salaries and benefits expenses was noted between June 30, 2024 and March 31, 2024. This is mainly due to larger incentive accruals 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 $5.0 million or 0.28% of total assets at March 31, 2024 to $3.3 million or 0.18% of total assets at June 30, 2024. Nonperforming assets were $3.3 million at June 30, 2023.  Total nonaccrual loans were $2.7 million at June 30, 2024 and $4.2 million at March 31, 2024. Nonaccrual loans were $3.1 million at June 30, 2023. Nonperforming assets decreased between March 31, 2024 and June 30, 2024 mainly due to two large relationships paying off. Nonaccrual loans, and in turn nonperforming assets, decreased between June 30, 2023 and June 30, 2024 due to regular payments. 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 June 30, 2024, March 31, 2024 and June 30, 2023.

The Company realized $252 thousand in net recoveries for the quarter ended June 30, 2024 compared to $520 thousand for the three months ended March 31, 2024. During the three months ended June 30, 2023, $150 thousand in net recoveries 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 $315 thousand in provision for credit loss for the quarter ended June 30, 2024. A small provision this quarter resulted from the net recoveries realized during the period. The Company recognized provision for credit losses of $475 thousand and $403 thousand for the quarters ended March 31, 2024 and June 30, 2023, respectively. The provision for the quarter ended March 31, 2024 was mainly needed due to the larger net charge-offs during the quarter. The provision for the quarter ended June 30, 2023 was mainly needed to keep pace with strong loan growth.

The ratio of allowance for credit losses to total loans was 1.04% and 1.00% at June 30, 2024 and March 31, 2024, respectively. The ratio of allowance for loan losses to total loans was 0.99% at June 30, 2023. The ratio of allowance for credit losses to total nonaccrual loans was 555.46% and 347.64% at June 30, 2024 and March 31, 2024, respectively.  The ratio of allowance for loan losses to total nonaccrual loans was 466.74% at June 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 June 30, 2024 were $1.79 billion, which represented an increase of $7.5 million or 0.42% from total assets of $1.78 billion at March 31, 2024. At June 30, 2023, total consolidated assets were $1.78 billion. Consolidated assets remained stable during the quarter ended June 30, 2024.

Total cash and cash equivalents (including cash and due from banks and federal funds sold) decreased $4.0 million or 3.1% as of June 30, 2024, compared to March 31, 2024. Cash and cash equivalents decreased as a percentage of total assets to 6.9% as of June 30, 2024 as compared to 7.2% at March 31, 2024 and increased as compared to 4.4% at June 30, 2023. The prior quarter change was minimal. The year over year change was due mainly to deposit growth exceeding the change in net loans allowing for additional cash and cash equivalents.

At June 30, 2024, total securities available for sale were $138.3 million, a decrease of $2.8 million from March 31, 2024, and a decrease of $13.2 million from June 30, 2023. At  June 30, 2024, total net unrealized losses on the AFS securities portfolio were $23.8 million, a decrease in losses of $1.3 million from total net unrealized losses on AFS securities of $25.1 million at March 31, 2024 and a decrease in losses of $800 thousand from June 30, 2023.

Total net loans increased $9.3 million from $1.42 billion at March 31, 2024 to $1.43 billion at June 30, 2024. These increases were mainly in the commercial non-owner occupied and commercial and industrial loans during the second quarter of 2024. During the quarter ended June 30, 2024, through the normal course of business, $14.6 million in mortgage loans were sold on the secondary market. These loan sales resulted in net gains of $255 thousand. During the quarter ended March 31, 2024, $10.8 million in mortgage loans were sold on the secondary market. These loan sales resulted in net gains of $161 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 $236.9 million as of June 30, 2024, are still assets of Bank of Clarke. 

Total deposits increased to $1.49 billion as of June 30, 2024 when compared to March 31, 2024 deposits of $1.47 billion. At June 30, 2023 total deposits were $1.46 billion.  During the second quarter of 2024, total deposits increased $14.6 million. The majority of this increase was due to time deposit balances increasing by $43.9 million. Time deposits as a percentage of total deposits have increased from 26.0% at June 30, 2023 to 28.6% at June 30, 2024.  Time deposits as a percentage of total deposits increased from 25.9% at December 31, 2023. The increase in deposits between June 30, 2023 and  June 30, 2024 was mainly due to the growth of certificates of deposit over $250 thousand. At June 30, 2024, over 75% of deposits were fully FDIC insured.

The Company had $145.0 million and $155.0 million, respectively, in outstanding borrowings from the Federal Home Loan Bank of Atlanta at June 30, 2024 and March 31, 2024.  There was $170.0 million in outstanding borrowings from the Federal Home Loan Bank as of June 30, 2023.  The average rate paid on Federal Home Loan Bank advances as of June 30, 2024 and March 31, 2024 was 4.65% and 4.71%, 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 $111.1 million and $107.7 million at June 30, 2024 and March 31, 2024, respectively. Shareholders' equity was $104.0 million at June 30, 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 and continued high rates in 2024. The book value of the Company at June 30, 2024 was $31.24 per common share. Total common shares outstanding were 3,556,844 at June 30, 2024. On July 24, 2024, the Board of Directors announced a quarterly common stock cash dividend of $0.30 per common share, payable on July 16, 2024, to shareholders of record on July 5, 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
		2Q24				1Q24				4Q23				3Q23				2Q23
Net Income (dollars in thousands)		$	3,185			$	2,548			$	2,395			$	2,319			$	2,058
Earnings per share, basic		$	0.89			$	0.72			$	0.69			$	0.66			$	0.58
Earnings per share, diluted		$	0.89			$	0.72			$	0.69			$	0.66			$	0.58
Return on average total assets			0.72	%			0.58	%			0.53	%			0.51	%			0.48	%
Return on average total equity			11.89	%			9.43	%			9.33	%			8.87	%			7.93	%
Dividend payout ratio			33.71	%			41.67	%			43.48	%			45.45	%			51.72	%
Fee revenue as a percent of total revenue			17.57	%			18.11	%			17.32	%			16.95	%			18.01	%
Net interest margin(1)			2.81	%			2.91	%			2.85	%			2.93	%			2.99	%
Yield on average earning assets			5.01	%			5.13	%			5.10	%			5.03	%			4.88	%
Rate on average interest-bearing liabilities			3.14	%			3.10	%			3.09	%			2.98	%			2.71	%
Net interest spread			1.87	%			2.03	%			2.01	%			2.05	%			2.17	%
Tax equivalent adjustment to net interest income (dollars in thousands)		$	29			$	29			$	29			$	28			$	25
Non-interest income to average assets			0.98	%			0.78	%			0.80	%			0.93	%			0.78	%
Non-interest expense to average assets			2.85	%			2.80	%			2.92	%			3.13	%			3.00	%
Efficiency ratio(2)			77.00	%			77.73	%			83.01	%			84.71	%			81.91	%

 

(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
		2Q24				1Q24				4Q23				3Q23				2Q23
BALANCE SHEET RATIOS
Loans to deposits			97.34	%			97.63	%			97.10	%			96.17	%			100.89	%
Average interest-earning assets to average-interest bearing liabilities			142.64	%			139.97	%			137.35	%			142.07	%			142.63	%
PER SHARE DATA
Dividends		$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Book value			31.24				30.28				30.78				28.74				29.47
Tangible book value			31.24				30.28				30.78				28.74				29.47
SHARE PRICE DATA
Closing price		$	32.99			$	29.85			$	30.00			$	31.90			$	30.50
Diluted earnings multiple(1)			9.27				10.36				11.03				12.08				13.15
Book value multiple(2)			1.06				0.99				0.97				1.11				1.04
COMMON STOCK DATA
Outstanding shares at end of period			3,556,844				3,557,229				3,520,894				3,520,894				3,528,240
Weighted average shares outstanding			3,556,935				3,557,203				3,520,894				3,523,943				3,526,934
Weighted average shares outstanding, diluted			3,556,935				3,557,203				3,520,894				3,523,943				3,526,934
CAPITAL RATIOS (BANK ONLY)
Leverage ratio			8.86	%			8.77	%			8.48	%			8.36	%			8.61	%
CREDIT QUALITY
Net charge-offs to average loans			(0.02)	%			0.04	%			0.03	%			0.01	%			(0.01)	%
Total non-performing loans to total loans			0.20	%			0.32	%			0.40	%			0.40	%			0.23	%
Total non-performing assets to total assets			0.18	%			0.28	%			0.34	%			0.33	%			0.19	%
Non-accrual loans to:
total loans			0.19	%			0.29	%			0.39	%			0.40	%			0.21	%
total assets			0.15	%			0.23	%			0.31	%			0.32	%			0.17	%
Allowance for credit/loan losses to:
total loans			1.04	%			1.00	%			0.99	%			1.01	%			0.99	%
non-performing assets			458.72	%			290.00	%			236.43	%			242.83	%			433.94	%
non-accrual loans			555.46	%			347.64	%			256.74	%			255.80	%			466.74	%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days		$	167			$	411			$	181			$	0			$	235
Non-accrual loans			2,703				4,156				5,645				5,697				3,109
Other real estate owned and repossessed assets			403				415				304				304				—
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off		$	172			$	705			$	427			$	187			$	52
(Recoveries)			(424)				(185)				(44)				(31)				(202)
Net charge-offs (recoveries)			(252)				520				383				156				(150)
PROVISION FOR CREDIT LOSSES (dollars in thousands)		$	315			$	475			$	366			$	1,283			$	403
ALLOWANCE FOR CREDIT LOSSES (dollars in thousands)		$	15,014			$	14,448			$	14,493			$	14,573			$	14,511

 

(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 06/30/2024				Unaudited 03/31/2024				Audited 12/31/2023				Unaudited 09/30/2023				Unaudited 06/30/2023
Assets
Cash and due from banks		$	61,179			$	68,280			$	112,066			$	63,239			$	48,907
Federal funds sold			62,476				59,353				26,287				78,799				29,988
Securities available for sale, at fair value			138,269				141,106				147,011				142,559				151,513
Loans held for sale			3,058				1,593				1,661				3,564				3,570
Loans, net of allowance for credit losses			1,433,920				1,424,604				1,448,193				1,426,412				1,456,459
Bank premises and equipment, net			18,114				17,954				18,108				18,421				18,064
Bank owned life insurance			30,103				29,843				29,575				24,404				24,219
Other assets			43,286				40,168				42,696				44,072				43,996
Total assets		$	1,790,405			$	1,782,901			$	1,825,597			$	1,801,470			$	1,776,716
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits		$	415,017			$	424,869			$	436,619			$	430,910			$	433,220
Savings and interest bearing demand deposits			647,358				666,730				656,439				656,111				645,834
Time deposits			426,209				382,343				413,264				411,359				378,954
Total deposits		$	1,488,584			$	1,473,942			$	1,506,322			$	1,498,380			$	1,458,008
Federal funds purchased			302				347				—				—				—
Federal Home Loan Bank advances, short-term			—				10,000				—				—				25,000
Federal Home Loan Bank advances, long-term			145,000				145,000				165,000				145,000				145,000
Subordinated debt			29,478				29,461				29,444				29,428				29,411
Other liabilities			15,926				16,446				16,452				27,479				15,327
Commitments and contingent liabilities			—				—				—				—				—
Total liabilities		$	1,679,290			$	1,675,196			$	1,717,218			$	1,700,287			$	1,672,746
Shareholders' Equity
Preferred stock, $10 par value			—				—				—				—				—
Common stock, $2.50 par value			8,707				8,705				8,660				8,660				8,661
Surplus			14,604				14,368				14,280				13,970				13,881
Retained earnings			106,567				104,449				103,445				102,106				100,844
Accumulated other comprehensive (loss)			(18,763)				(19,817)				(18,006)				(23,553)				(19,416)
Total shareholders' equity		$	111,115			$	107,705			$	108,379			$	101,183			$	103,970
Total liabilities and shareholders' equity		$	1,790,405			$	1,782,901			$	1,825,597			$	1,801,470			$	1,776,716

 

EAGLE FINANCIAL SERVICES, INC LOAN DATA (dollars in thousands)
		6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
Mortgage real estate loans:
Construction & Secured by Farmland		$	81,609			$	82,692			$	84,145			$	80,012			$	95,433
HELOCs			46,697				46,329				47,674				44,719				44,333
Residential First Lien - Investment			112,790				113,813				117,431				120,547				117,265
Residential First Lien - Owner Occupied			187,807				181,323				178,180				162,919				142,417
Residential Junior Liens			12,387				12,690				12,831				12,284				11,869
Commercial - Owner Occupied			257,675				254,744				251,456				244,088				243,610
Commercial -  Non-Owner Occupied & Multifamily			352,892				344,192				348,879				355,122				350,210
Commercial and industrial loans:
BHG loans			4,284				4,740				5,105				5,419				5,747
SBA PPP loans			39				45				51				57				62
Other commercial and industrial loans			102,345				95,327				102,672				91,411				95,012
Marine loans			236,890				247,042				251,168				260,518				299,304
Triad Loans			24,579				25,335				25,877				26,519				27,157
Consumer loans			9,497				9,194				16,542				16,019				16,486
Overdrafts			257				1,559				253				207				308
Other loans			11,951				12,466				12,895				13,089				13,805
Total loans		$	1,441,699			$	1,431,491			$	1,455,159			$	1,432,930			$	1,463,018
Net deferred loan costs and premiums			7,235				7,561				7,527				8,055				7,952
Allowance for credit/loan losses			(15,014)				(14,448)				(14,493)				(14,573)				(14,511)
Net loans		$	1,433,920			$	1,424,604			$	1,448,193			$	1,426,412			$	1,456,459

 

EAGLE FINANCIAL SERVICES, INC CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands) Unaudited
		6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
Interest and Dividend Income
Interest and fees on loans		$	19,525			$	19,963			$	19,420			$	20,179			$	18,754
Interest on federal funds sold			68				39				71				51				28
Interest and dividends on securities available for sale:
Taxable interest income			739				758				771				781				785
Interest income exempt from federal income taxes			3				5				4				3				5
Dividends			155				156				157				147				136
Interest on deposits in banks			1,258				991				1,592				1,030				656
Total interest and dividend income		$	21,748			$	21,912			$	22,015			$	22,191			$	20,364
Interest Expense
Interest on deposits		$	7,515			$	7,424			$	7,658			$	6,978			$	5,535
Interest on federal funds purchased			—				—				—				—				—
Interest on Federal Home Loan Bank advances			1,712				1,710				1,714				1,943				2,032
Interest on subordinated debt			355				354				354				354				355
Total interest expense		$	9,582			$	9,488			$	9,726			$	9,275			$	7,922
Net interest income		$	12,166			$	12,424			$	12,289			$	12,916			$	12,442
Provision For Credit Losses			181				475				366				216				403
Net interest income after provision for credit losses		$	11,985			$	11,949			$	11,923			$	12,700			$	12,039
Noninterest Income
Wealth management fees		$	1,273			$	1,456			$	1,315			$	1,190			$	1,263
Service charges on deposit accounts			456				454				467				460				447
Other service charges and fees			1,164				969				979				1,252				1,135
(Loss) gain on the sale of marine finance business			—				—				(28)				463				—
(Loss) gain on the sale of bank premises and equipment			(11)				—				—				7				7
(Loss) on the sale of AFS securities			—				—				—				—				—
Gain on sale of loans HFS			492				161				515				265				192
Officer insurance income			269				268				171				184				179
Other operating income			652				163				234				388				134
Total noninterest income		$	4,295			$	3,471			$	3,653			$	4,209			$	3,357
Noninterest Expenses
Salaries and employee benefits		$	7,353			$	7,185			$	7,849			$	7,598			$	7,561
Occupancy expenses			470				569				581				570				533
Equipment expenses			401				373				320				341				315
Advertising and marketing expenses			245				237				291				228				342
Stationery and supplies			32				24				44				69				56
ATM network fees			373				380				421				426				365
FDIC assessment			351				409				478				495				346
Computer software expense			221				233				373				396				281
Bank franchise tax			338				331				339				340				313
Professional fees			511				506				577				497				753
Data processing fees			558				565				513				542				478
Other operating expenses			1,657				1,565				1,494				2,631				1,612
Total noninterest expenses		$	12,510			$	12,377			$	13,280			$	14,133			$	12,955
Income before income taxes		$	3,770			$	3,043			$	2,296			$	2,776			$	2,441
Income Tax Expense (Benefit)			585				495				(99)				457				383
Net income		$	3,185			$	2,548			$	2,395			$	2,319			$	2,058
Earnings Per Share
Net income per common share, basic		$	0.89			$	0.72			$	0.68			$	0.66			$	0.58
Net income per common share, diluted		$	0.89			$	0.72			$	0.68			$	0.66			$	0.58

 

EAGLE FINANCIAL SERVICES, INC Average Balances, Income and Expenses, Yields and Rates (dollars in thousands)
		Three Months Ended
		June 30, 2024												March 31, 2024												June 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		$	137,588			$	893				2.61	%		$	142,700			$	914				2.58	%		$	155,347			$	922				2.38	%
Tax-Exempt (1)			492				5				4.13	%			499				6				4.84	%			510				5				4.11	%
Total Securities		$	138,080			$	898				2.62	%		$	143,199			$	920				2.58	%		$	155,857			$	927				2.39	%
Loans:
Taxable		$	1,424,304			$	19,421				5.48	%		$	1,433,871			$	19,858				5.57	%		$	1,425,873			$	18,659				5.25	%
Non-accrual			4,600				—				—	%			5,618				—				—	%			2,608				—				—	%
Tax-Exempt (1)			10,603				132				5.01	%			10,706				133				4.99	%			9,810				119				4.86	%
Total Loans		$	1,439,507			$	19,553				5.46	%		$	1,450,195			$	19,991				5.54	%		$	1,438,291			$	18,778				5.24	%
Federal funds sold and interest-bearing deposits in other banks			170,858				1,326				3.12	%			127,205				1,030				3.26	%			80,251				684				3.42	%
Total earning assets		$	1,748,445			$	21,777				5.01	%		$	1,720,599			$	21,941				5.13	%		$	1,674,399			$	20,389				4.88	%
Allowance for loan losses			(14,604)												(14,536)												(14,201)
Total non-earning assets			33,281												53,112												73,702
Total assets		$	1,767,122											$	1,759,175											$	1,733,900
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts		$	258,965			$	1,538				2.39	%		$	256,282			$	1,497				2.35	%		$	240,401			$	1,247				2.08	%
Money market accounts			261,557				1,463				2.25	%			263,755				1,413				2.15	%			254,136				1,093				1.72	%
Savings accounts			136,370				39				0.12	%			138,737				41				0.12	%			153,659				46				0.12	%
Time deposits:
$250,000 and more			138,531				1,652				4.80	%			143,294				1,701				4.77	%			99,903				888				3.57	%
Less than $250,000			255,776				2,823				4.44	%			251,853				2,772				4.43	%			224,041				2,261				4.05	%
Total interest-bearing deposits		$	1,051,199			$	7,515				2.88	%		$	1,053,921			$	7,424				2.83	%		$	972,140			$	5,535				2.28	%
Federal funds purchased			15				—				—	%			11				—				—	%			178				—				—	%
Federal Home Loan Bank advances			145,110				1,712				4.74	%			145,879				1,710				4.72	%			172,198				2,032				4.73	%
Subordinated debt			29,467				355				4.84	%			29,450				354				4.84	%			29,400				355				4.83	%
Total interest-bearing liabilities		$	1,225,791			$	9,582				3.14	%		$	1,229,261			$	9,488				3.10	%		$	1,173,916			$	7,922				2.71	%
Noninterest-bearing liabilities:
Demand deposits			417,128												405,166												440,728
Other Liabilities			16,489												17,268												15,212
Total liabilities		$	1,659,408											$	1,651,695											$	1,629,856
Shareholders' equity			107,714												107,480												104,044
Total liabilities and shareholders' equity		$	1,767,122											$	1,759,175											$	1,733,900
Net interest income						$	12,195											$	12,453											$	12,467
Net interest spread											1.87	%											2.03	%											2.17	%
Interest expense as a percent of average earning assets											2.20	%											2.22	%											1.90	%
Net interest margin											2.81	%											2.91	%											2.99	%

 

(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
		6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
GAAP Financial Measurements:
Interest Income - Loans		$	19,525			$	19,963			$	19,420			$	20,179			$	18,754
Interest Income - Securities and Other Interest-Earnings Assets			2,223				1,949				2,595				2,012				1,610
Interest Expense - Deposits			7,515				7,424				7,658				6,978				5,535
Interest Expense - Other Borrowings			2,067				2,064				2,068				2,297				2,387
Total Net Interest Income		$	12,166			$	12,424			$	12,289			$	12,916			$	12,442
Non-GAAP Financial Measurements:
Add:  Tax Benefit on Tax-Exempt Interest Income - Loans		$	28			$	28			$	28			$	27			$	24
Add:  Tax Benefit on Tax-Exempt Interest Income - Securities			1				1				1				1				1
Total Tax Benefit on Tax-Exempt Interest Income		$	29			$	29			$	29			$	28			$	25
Tax-Equivalent Net Interest Income		$	12,195			$	12,453			$	12,318			$	12,944			$	12,467

 

 

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SOURCE Eagle Financial Services, Inc.

FAQ

What were Eagle Financial Services' Q2 2024 earnings per share?

EFSI reported an EPS of $0.89 for Q2 2024.

How much did Eagle Financial Services' net income grow in Q2 2024?

EFSI's net income increased by 25% to $3.2 million in Q2 2024.

What is the quarterly dividend announced by Eagle Financial Services?

EFSI announced a quarterly dividend of $0.30 per common share, payable on August 16, 2024.

What was the return on average total equity for Eagle Financial Services in Q2 2024?

EFSI reported a return on average total equity of 11.89% for Q2 2024.

What was Eagle Financial Services' net interest income for Q2 2024?

EFSI reported net interest income of $12.2 million for Q2 2024.