Eagle Financial Services, Inc. Announces 2020 Fourth Quarter And Annual Financial Results And Quarterly Dividend

January 29, 2021 1:17 PM EST

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BERRYVILLE, Va., Jan. 29, 2021 /PRNewswire/ -- Eagle Financial Services, Inc. (OTCQX: EFSI), the holding company for Bank of Clarke County, whose divisions include Eagle Investment Group, reported continued strong performance for the fourth quarter of 2020. The Board of Directors also announced a quarterly common stock cash dividend of $0.27 per common share, payable on February 19, 2021, to shareholders of record on February 8, 2021. Select highlights for the fourth quarter and the year include:

  • Loan growth of $30.6 million and $191.6 million, respectively
  • Deposit growth of $57.9 million and $241.6 million, respectively
  • Net income of $2.5 million and $11.2 million, respectively
  • Basic and diluted earnings per share of $0.74 and $3.27, respectively

Brandon Lorey, President and CEO stated, "In the wake of another peak in COVID positivity rates, market uncertainty, and low interest rates, the Bank of Clarke County delivered another year of record earnings ($11.1MM) and the highest earnings per share ever realized through Eagle Financial Services ($3.27). Balance sheet growth for the Bank was equally as strong.  Net of the volume related to related to PPP, the Bank realized core deposit growth of over 19% and gross loan growth above 12% during 2020. In addition to delivering these impressive growth numbers, the Bank was also able to decrease its total operating expense to total average assets by 24 basis points during the year as our focus on controllable expenses remains top of mind. I am also happy to announce another year of the Company's ability to increase the annual dividend to shareholders by $.04 in 2020 to $1.04 per share. Lastly, I would like to thank our employees for their continued focus on serving the financial needs of our customers despite these extraordinary times."

Income Statement ReviewNet income was $11.2 million for the year ended December 31, 2020 which represented an increase of 14.5% when compared to net income in 2019. The increase was mainly driven by net interest income increases related to net loan growth and reduced interest expense on deposit accounts. Net income for the quarter ended December 31, 2020 was $2.5 million reflecting a decrease of 26.4% from the quarter ended September 30, 2020 and a decrease of 11.5% from the quarter ended December 31, 2020. The decreases were mainly driven by the increase in the provision for loan losses during the quarter ended December 31, 2020. A higher provision for loan losses was due to loan growth and the partial charge-off of certain impaired loans related to updated appraisals being received.

Net interest income was $35.6 million for the year ended December 31, 2020 compared to $31.2 million for the same period in 2019.  This represented an increase of 14.1%. Net interest income for the quarter ended December 31, 2020 was $9.4 million. Net interest income was $8.0 million for the quarter ended December 31, 2019.  The increase in net interest income for both periods resulted primarily from growth in the Company's loan portfolio as well as reduced interest expense on deposit accounts.

Total loan interest income was $35.3 million for the year ended December 31, 2020, reflecting an increase of $4.1 million or 13.3% from the year ended December 31, 2019. Total loan interest income was $9.2 million for the quarter ended December 31, 2020.  Total loan interest income was $7.9 million for the quarter ended December 31, 2019. Total loan interest income increased $1.3 million or 17.0% from the quarter ended December 31, 2019 to the quarter ended December 31, 2020. Average loans for the year ended December 31, 2020 were $758.2 million compared to $628.3 million for the same period in 2019. The tax equivalent yield on average loans for the year ended December 31, 2020 was 4.66%, a decrease of 31 basis points from the prior year. Average loans for the quarter ended December 31, 2020 were $825.7 million compared to $640.7 million for the quarter ended December 31, 2019.  The tax equivalent yield on average loans for the quarter ended December 31, 2020 was 4.47%, a decrease of 44 basis points from 4.91% for the same period in 2019. Much of this decrease in yield can be attributed to the SBA Paycheck Protection Program ("PPP") loans.  During the year ended December 31, 2020, the Company originated $88.5 million in PPP loans which have a 1.00% interest rate, much lower than the existing portfolio's yield.

Interest and dividend income from the investment portfolio was $3.5 million and $4.0 million for the years ended December 31, 2020 and December 31, 2019, respectively. Interest and dividend income from the investment portfolio was $729 thousand for the quarter ended December 31, 2020 compared to $998 thousand for the quarter ended December 31, 2019. Average investments for the years ended December 31, 2020 and December 31, 2019 were $152.3 million and $144.6 million, respectively. Average investments for the quarter ended December 31, 2020 were $149.1 million compared to $149.2 million for the quarter ended December 31, 2019. The tax equivalent yield on average investments for the year ended December 31, 2020 was 2.41%, down 52 basis points from 2.93% for the same period in 2019. The tax equivalent yield on average investments for the quarter ended December 31, 2020 was 2.03%, down 75 basis points from 2.78% for the same period in 2019.

Total interest expense was $3.3 million and $4.2 million for the years ended December 31, 2020 and December 31, 2019, respectively. Total interest expense was $592 thousand for the three months ended December 31, 2020 and $1.1 million for three months ended December 31, 2019. The decrease in interest expense resulted from the reduction in interest rates paid on deposit accounts. The average cost of interest-bearing liabilities decreased 31 basis points when comparing the years ended December 31, 2020 and December 31, 2019. The average cost of interest-bearing liabilities decreased 48 basis points when comparing the quarter ended December 31, 2020 to the quarter ended December 31, 2019. The average balance of interest-bearing liabilities increased $85.7 million from the year ended December 31, 2019 to the year ended December 31, 2020. The average balance of interest-bearing liabilities increased $109.3 million from the quarter ended December 31, 2019 to the same period in 2020.

The net interest margin was 3.76% for the year ended December 31, 2020. When compared to the year ended December 31, 2019, the net interest margin decreased 26 basis points. The net interest margin was 3.63% for the quarter ended December 31, 2020. For the quarter ended December 31, 2019, the net interest margin was 3.90%. These declines can be attributed to current interest rate environment where rates have declined as loans repriced and higher yielding investment securities are called. 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 $8.6 million and $7.8 million for the years ended December 31, 2020 and December 31, 2019, respectively. The increase was driven mostly by the $687 thousand gain on sale of AFS securities recognized during the year ended December 31, 2020. Noninterest income was $2.3 million for the quarter ended December 31, 2020, which represented an increase of $433 thousand or 23.8% from the $1.8 million for the three months ended December 31, 2019. The increase was driven mostly by cash distributions from investments in tax credits.

Noninterest expense increased $2.7 million or 10.0% for the year ended years ended December 31, 2020 in comparison to the year ended December 31, 2019. Noninterest expense increased $1.8 million, or 28.2%, to $8.1 million for the quarter ended December 31, 2020 from $6.3 million for the quarter ended December 31, 2019.  The COVID-19 pandemic has had and continues to have an impact on noninterest expenses. Much of this increase resulted from the increase in salaries and benefits expenses. Annual pay increases, newly hired employees, COVID pay for employees that were unable to work remotely during the pandemic and additional bonuses for loan employees originating SBA PPP lending have attributed to these increases. Increases in equipment expenses and computer software expenses in comparison to the prior year were largely due to hardware and software purchases to allow for remote work during the COVID-19 pandemic. Additional costs were incurred for enhanced branch cleanings and the purchase of personal protective equipment (PPE) throughout the year.

Asset Quality and Provision for Loan LossesNonperforming 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 increased from $2.4 million or 0.27% of total assets at December 31, 2019 to $5.4 million or 0.48% of total assets at December 31, 2020. This increase resulted from loans being placed into nonaccrual status during 2020. Total nonaccrual loans were $4.8 million at December 31, 2020 and $2.2 million at December 31, 2019. Several larger dollar loans were placed in nonaccrual status during the second quarter of 2020.  The majority of these loans are in the commercial real estate portfolio and have had cash flows negatively impacted by the COVID-19 pandemic. 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 $607 thousand at December 31, 2020 and $183 thousand at December 31, 2019.  Two residential properties were added to other real estate owned during 2020 through deeds in lieu of foreclosure.

The Company may, under certain circumstances, restructure loans in troubled debt restructurings as a concession to a borrower when the borrower is experiencing financial distress. Formal, standardized loan restructuring programs are not utilized by the Company. Each loan considered for restructuring is evaluated based on customer circumstances and may include modifications to one or more loan provision. Such restructured loans are included in impaired loans but may not necessarily be nonperforming loans. At December 31, 2020, the Company had 17 troubled debt restructurings totalling $3.3 million. Approximately $2.5 million or 14 loans are performing loans, while the remaining loans are on non-accrual status. At December 31, 2019, the Company had 16 troubled debt restructurings totalling $3.0 million. Approximately $2.6 million or 12 loans were performing loans, while the remaining loans were on non-accrual status.

The Company realized $267 thousand in net charge-offs for the quarter ended December 31, 2020 versus net recoveries of $20 thousand for the quarter ended December 31, 2019. The amount of provision for loan losses reflects the results of the Bank's analysis used to determine the adequacy of the allowance for loan losses. The Company recorded a provision for loan losses of $702 thousand for the quarter ended December 31, 2020. The Company recognized provision for loan losses of $62 thousand for the quarter ended December 31, 2019. The provision for the quarter ended December 31, 2020 resulted from both loan growth during the quarter as well as the partial charge-off of certain impaired loans related to updated appraisals being received. The ratio of allowance for loan losses to total loans was 0.85% at December 31, 2020 and 0.77% at December 31, 2019, respectively.  Excluding outstanding PPP loans of $81.3 million as of December 31, 2020, the allowance for loan losses as a percentage of total loans was 0.94%. The ratio of allowance for loan losses to total nonaccrual loans was 146.85% and 227.59% at December 31, 2020 and December 31, 2019, respectively. 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.

Total Consolidated AssetsTotal consolidated assets of the Company at December 31, 2020 were $1.13 billion, which represented an increase of $252.8 million or 28.8% from total assets of $877.3 million at December 31, 2019. Gross loans increased $191.6 million or 29.7% between December 31, 2019 and December 31, 2020.  The growth in total loans and total assets during the year ended December 31, 2020 was largely due to regular loan portfolio growth as the Company expands lending types and markets.

Deposits and Other BorrowingsTotal deposits increased $241.6 million to $1.01 billion at December 31, 2020 from $771.5 million at December 31, 2019. The growth in deposits mainly reflected both regular deposit growth and the Company expansion to new areas as well as PPP loan proceeds being deposited into customers' accounts at the time the loans were originated and remaining on deposit as of December 31, 2020.

The Company had no outstanding borrowings from the Federal Home Loan Bank of Atlanta at December 31, 2020 or December 31, 2019.

EquityShareholders' equity was $105.1 million at December 31, 2020 and $96.3 million at December 31, 2019. The book value of the Company at December 31, 2020 was $31.05 per common share. Total common shares outstanding were 3,405,035 at December 31, 2020. The board of directors declared a $0.27 per common share cash dividend for shareholders of record as of February 8, 2021 and payable on February 19, 2021.

COVID-19 ImpactsThe COVID-19 crisis has changed our communities, both in the way we live and the way we do business. While circumstances continue to change, the Company is continuing to steadfastly work to meet and exceed the needs of its customers, employees, and the communities in which it does business. Customers' banking needs have continued to be fulfilled through multiple banking channels including mobile, digital, and adjusted-schedule physical.  In efforts to assist local businesses during this pandemic, the Company originated 909 PPP loans (through two rounds of lending), totalling $88.5 million, into the hands of our community's small businesses. The Company is currently participating in the third round of PPP lending. In addition to local small businesses, the Company is also working with its consumer and commercial customers through its loan deferral program whereby customers experiencing hardships due to COVID-19 may be granted a deferral in loan payments for up to 90 days. During 2020, the Company approved 255 deferrals with current loan balances totalling approximately $130.2 million for its customers experiencing hardships related to COVID-19. As of December 31, 2020, 241 loans with loan balances totalling approximately $128.7 million had begun making payments on their loans after the deferral date had passed.

Cautionary Note About Forward-Looking StatementsCertain 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 effects of the COVID-19 pandemic, including on the Company's credit quality and business operations, as well as its impact on general economic and financial market 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 requirements; 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, 2019 and other filings with the Securities and Exchange Commission.

 

 

EAGLE FINANCIAL SERVICES, INC.

KEY STATISTICS

 

For the Three Months Ended

4Q20

3Q20

2Q20

1Q20

4Q19

Net Income (dollars in thousands)

$

2,506

$

3,406

$

2,819

$

2,441

$

2,831

Earnings per share, basic

$

0.74

$

0.99

$

0.83

$

0.71

$

0.83

Earnings per share, diluted

$

0.74

$

0.99

$

0.83

$

0.71

$

0.83

Return on average total assets

0.91

%

1.30

%

1.11

%

1.10

%

1.30

%

Return on average total equity

9.56

%

13.21

%

11.25

%

10.02

%

11.80

%

Dividend payout ratio

35.14

%

26.26

%

31.33

%

36.62

%

31.33

%

Fee revenue as a percent of total revenue

15.61

%

15.85

%

15.39

%

17.38

%

18.76

%

Net interest margin(1)

3.63

%

3.86

%

3.70

%

3.86

%

3.90

%

Yield on average earning assets

3.85

%

4.14

%

4.08

%

4.39

%

4.42

%

Rate on average interest-bearing liabilities

0.40

%

0.48

%

0.64

%

0.86

%

0.88

%

Net interest spread

3.45

%

3.66

%

3.44

%

3.53

%

3.54

%

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

$

56

$

61

$

64

$

68

$

74

Non-interest income to average assets

0.81

%

0.84

%

0.95

%

0.76

%

0.83

%

Non-interest expense to average assets

2.92

%

2.84

%

2.76

%

3.11

%

2.90

%

Efficiency ratio(2)

69.21

%

64.43

%

65.45

%

70.42

%

64.11

%

 

(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 non-taxable 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

 

4Q20

3Q20

2Q20

1Q20

4Q19

BALANCE SHEET RATIOS

Loans to deposits

82.55

%

84.35

%

86.90

%

85.32

%

83.57

%

Average interest-earning assets to average-interest bearing liabilities

175.23

%

173.54

%

168.79

%

163.80

%

167.77

%

PER SHARE DATA

Dividends

$

0.26

$

0.26

$

0.26

$

0.26

$

0.26

Book value

31.05

30.65

29.97

29.47

28.23

Tangible book value

31.05

30.65

29.97

29.47

28.23

SHARE PRICE DATA

Closing price

$

29.50

$

25.20

$

25.71

$

23.91

$

31.05

Diluted earnings multiple(1)

9.97

6.36

7.74

8.42

9.35

Book value multiple(2)

0.95

0.82

0.86

0.81

1.10

COMMON STOCK DATA

Outstanding shares at end of period

3,405,035

3,416,013

3,409,689

3,409,689

3,430,103

Weighted average shares outstanding

3,410,220

3,413,304

3,409,689

3,437,085

3,433,749

Weighted average shares outstanding, diluted

3,410,220

3,413,304

3,409,689

3,437,085

3,433,749

CAPITAL RATIOS

Total equity to total assets

9.30

%

9.68

%

9.93

%

11.10

%

10.98

%

CREDIT QUALITY

Net charge-offs to average loans

0.03

%

(0.02)

%

(0.03)

%

(0.08)

%

%

Total non-performing loans to total loans

0.58

%

0.53

%

0.62

%

0.26

%

0.34

%

Total non-performing assets to total assets

0.48

%

0.44

%

0.52

%

0.24

%

0.27

%

Non-accrual loans to:

total loans

0.58

%

0.53

%

0.54

%

0.26

%

0.34

%

total assets

0.43

%

0.40

%

0.41

%

0.19

%

0.25

%

Allowance for loan losses to:

total loans

0.85

%

0.83

%

0.81

%

0.80

%

0.77

%

non-performing assets

130.46

%

140.10

%

119.00

%

251.82

%

210.00

%

non-accrual loans

146.85

%

155.10

%

158.08

%

317.42

%

227.59

%

NON-PERFORMING ASSETS:

(dollars in thousands)

Loans delinquent over 90 days

$

$

$

665

$

$

Non-accrual loans

4,832

4,286

4,238

1,697

2,185

Other real estate owned and repossessed assets

607

442

442

442

183

NET LOAN CHARGE-OFFS (RECOVERIES):

(dollars in thousands)

Loans charged off

$

300

$

22

$

76

$

67

$

32

(Recoveries)

(33)

(218)

(302)

(578)

(52)

Net charge-offs (recoveries)

267

(196)

(226)

(511)

(20)

PROVISION FOR LOAN LOSSES (dollars in thousands)

$

702

$

100

$

752

$

(97)

$

62

ALLOWANCE FOR LOAN LOSS SUMMARY

(dollars in thousands)

Balance at the beginning of period

$

6,661

$

6,365

$

5,387

$

4,973

$

4,891

Provision

702

100

752

(97)

62

Net charge-offs (recoveries)

267

(196)

(226)

(511)

(20)

Balance at the end of period

$

7,096

$

6,661

$

6,365

$

5,387

$

4,973

 

(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

12/31/2020

Unaudited

9/30/2020

Unaudited

6/30/2020

Unaudited

3/31/2020

Audited

12/31/2019

Assets

Cash and due from banks

$

79,698

$

63,774

$

38,099

$

22,757

$

33,407

Federal funds sold

222

270

264

288

252

Securities available for sale, at fair value

166,222

153,688

146,885

157,659

166,200

Loans, net of allowance for loan losses

829,238

799,040

782,569

668,645

639,787

Bank premises and equipment, net

18,725

18,906

19,047

19,179

19,297

Other assets

36,047

37,582

36,037

30,349

18,377

Total assets

$

1,130,152

$

1,073,260

$

1,022,901

$

898,877

$

877,320

Liabilities and Shareholders' Equity

Liabilities

Deposits:

Noninterest bearing demand deposits

$

407,576

$

379,198

$

351,547

$

271,508

$

269,171

Savings and interest-bearing demand deposits

476,864

446,687

417,458

377,677

364,175

Time deposits

128,658

129,353

138,905

140,814

138,198

Total deposits

$

1,013,098

$

955,238

$

907,910

$

789,999

$

771,544

Federal Home Loan Bank advances

Other liabilities

11,980

14,139

13,422

9,079

9,450

Commitments and contingent liabilities

Total liabilities

$

1,025,078

$

969,377

$

921,332

$

799,078

$

780,994

Shareholders' Equity

Preferred stock, $10 par value

Common stock, $2.50 par value

8,460

8,472

8,473

8,466

8,529

Surplus

10,811

10,862

10,771

10,578

11,406

Retained earnings

82,524

80,907

78,388

76,457

74,909

Accumulated other comprehensive income

3,279

3,642

3,937

4,298

1,482

Total shareholders' equity

$

105,074

$

103,883

$

101,569

$

99,799

$

96,326

Total liabilities and shareholders' equity

$

1,130,152

$

1,073,260

$

1,022,901

$

898,877

$

877,320

 

 

EAGLE FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands)

Unaudited

 

Three Months Ended

Year Ended

December 31,

December 31,

2020

2019

2020

2019

Interest and Dividend Income

Interest and fees on loans

$

9,249

$

7,908

$

35,273

$

31,138

Interest on federal funds sold

1

1

4

Interest and dividends on securities available for sale:

Taxable interest income

588

794

2,858

3,089

Interest income exempt from federal income taxes

127

183

588

856

Dividends

14

21

76

70

Interest on deposits in banks

12

120

112

297

Total interest and dividend income

$

9,990

$

9,027

$

38,908

$

35,454

Interest Expense

Interest on deposits

$

592

$

1,071

$

3,256

$

4,193

Interest on federal funds purchased

31

Interest on Federal Home Loan Bank advances

6

25

15

Total interest expense

$

592

$

1,077

$

3,281

$

4,239

Net interest income

$

9,398

$

7,950

$

35,627

$

31,215

Provision For Loan Losses

702

62

1,457

629

Net interest income after provision for loan losses

$

8,696

$

7,888

$

34,170

$

30,586

Noninterest Income

Income from fiduciary activities

$

317

$

354

$

1,398

$

1,380

Service charges on deposit accounts

246

313

920

1,187

Other service charges and fees

1,255

1,165

4,757

4,893

Gain on the sale of bank premises and equipment

5

5

137

Gain (loss) on sales of AFS securities

687

(7)

Officer insurance income

93

(26)

310

(48)

Other operating income

335

12

502

217

Total noninterest income

$

2,251

$

1,818

$

8,579

$

7,759

Noninterest Expenses

Salaries and employee benefits

$

4,874

$

3,489

$

18,074

$

15,025

Occupancy expenses

380

396

1,592

1,611

Equipment expenses

222

232

988

857

Advertising and marketing expenses

198

211

707

868

Stationery and supplies

50

57

144

172

ATM network fees

272

315

1,009

1,141

Other real estate owned expenses

13

24

9

76

(Gain) loss on the sale of other real estate owned

(11)

(4)

(143)

443

FDIC assessment

105

(36)

221

105

Computer software expense

198

125

679

459

Bank franchise tax

177

173

705

656

Professional fees

261

230

1,120

1,057

Data processing fees

493

369

1,657

1,275

Other operating expenses

855

729

2,679

3,031

Total noninterest expenses

$

8,087

$

6,310

$

29,441

$

26,776

Income before income taxes

$

2,860

$

3,396

$

13,308

$

11,569

Income Tax Expense

354

565

2,136

1,810

Net income

$

2,506

$

2,831

$

11,172

$

9,759

Earnings Per Share

Net income per common share, basic

$

0.74

$

0.83

$

3.27

$

2.84

Net income per common share, diluted

$

0.74

$

0.83

$

3.27

$

2.84

 

 

EAGLE FINANCIAL SERVICES, INC.

Average Balances, Income and Expenses, Yields and Rates

(dollars in thousands)

 

For the Year Ended

December 31, 2020

December 31, 2019

Interest

Interest

Average

Income/

Average

Average

Income/

Average

Assets:

Balance

Expense

Yield

Balance

Expense

Yield

Securities:

Taxable

$

130,566

$

2,934

2.25

%

$

113,625

$

3,159

2.78

%

Tax-Exempt (1)

21,764

744

3.42

%

31,009

1,084

3.50

%

Total Securities

$

152,330

$

3,678

2.41

%

$

144,634

$

4,243

2.93

%

Loans:

Taxable

$

744,622

$

34,925

4.69

%

$

613,884

$

30,722

5.00

%

Non-accrual

3,618

%

2,723

%

Tax-Exempt (1)

9,992

441

4.42

%

11,722

526

4.49

%

Total Loans

$

758,232

$

35,366

4.66

%

$

628,329

$

31,248

4.97

%

Federal funds sold

359

1

0.24

%

194

4

2.06

%

Interest-bearing deposits in other banks

47,261

112

0.24

%

15,202

297

1.95

%

Total earning assets

$

954,564

$

39,157

4.10

%

$

785,636

$

35,792

4.56

%

Allowance for loan losses

(6,041)

(5,333)

Total non-earning assets

66,007

49,780

Total assets

$

1,014,530

$

830,083

Liabilities and Shareholders' Equity:

Interest-bearing deposits:

NOW accounts

$

108,965

$

347

0.32

%

$

89,536

$

450

0.50

%

Money market accounts

184,346

930

0.50

%

150,291

1,463

0.97

%

Savings accounts

122,560

121

0.10

%

105,176

207

0.20

%

Time deposits:

$250,000 and more

75,520

1,203

1.59

%

59,550

1,221

2.05

%

Less than $250,000

60,600

655

1.08

%

61,775

852

1.38

%

Total interest-bearing deposits

$

551,991

$

3,256

0.59

%

$

466,328

$

4,193

0.90

%

Federal funds purchased

1

0.60

%

1,074

31

2.89

%

Federal Home Loan Bank advances

7,650

25

0.33

%

2,547

15

0.59

%

Total interest-bearing liabilities

$

559,642

$

3,281

0.59

%

$

469,949

$

4,239

0.90

%

Noninterest-bearing liabilities:

Demand deposits

341,229

258,176

Other Liabilities

12,357

9,900

Total liabilities

$

913,228

$

738,025

Shareholders' equity

101,302

92,058

Total liabilities and shareholders' equity

$

1,014,530

$

830,083

Net interest income

$

35,876

$

31,553

Net interest spread

3.51

%

3.66

%

Interest expense as a percent of average earning assets

0.34

%

0.54

%

Net interest margin

3.76

%

4.02

%

 

(1)

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

 

 

EAGLE FINANCIAL SERVICES, INC.

Average Balances, Income and Expenses, Yields and Rates

(dollars in thousands)

 

For the Three Months Ended

December 31, 2020

December 31, 2019

Interest

Interest

Average

Income/

Average

Average

Income/

Average

Assets:

Balance

Expense

Yield

Balance

Expense

Yield

Securities:

Taxable

$

130,033

$

602

1.84

%

$

122,969

$

815

2.63

%

Tax-Exempt (1)

19,098

161

3.35

%

26,272

231

3.49

%

Total Securities

$

149,131

$

763

2.03

%

$

149,241

$

1,046

2.78

%

Loans:

Taxable

$

811,055

$

9,165

4.50

%

$

627,842

$

7,811

4.94

%

Non-accrual

4,911

%

1,857

%

Tax-Exempt (1)

9,687

106

4.37

%

10,983

123

4.44

%

Total Loans

$

825,653

$

9,271

4.47

%

$

640,682

$

7,934

4.91

%

Federal funds sold

236

0.07

%

237

1

1.67

%

Interest-bearing deposits in other banks

66,662

12

0.07

%

28,711

120

1.66

%

Total earning assets

$

1,036,771

$

10,046

3.85

%

$

817,014

$

9,101

4.42

%

Allowance for loan losses

(6,678)

(4,929)

Total non-earning assets

71,423

52,118

Total assets

$

1,101,516

$

864,203

Liabilities and Shareholders' Equity:

Interest-bearing deposits:

NOW accounts

$

120,244

$

70

0.23

%

$

94,053

$

109

0.46

%

Money market accounts

208,357

178

0.34

%

151,460

350

0.92

%

Savings accounts

133,886

20

0.06

%

106,756

49

0.18

%

Time deposits:

$250,000 and more

68,793

210

1.21

%

70,118

346

1.96

%

Less than $250,000

60,379

114

0.75

%

60,020

217

1.43

%

Total interest-bearing deposits

$

591,659

$

592

0.40

%

$

482,407

$

1,071

0.88

%

Federal funds purchased

1

0.40

%

1

2.38

%

Federal Home Loan Bank advances

4,565

6

0.56

%

Total interest-bearing liabilities

$

591,660

$

592

0.40

%

$

486,973

$

1,077

0.88

%

Noninterest-bearing liabilities:

Demand deposits

391,240

270,531

Other Liabilities

14,302

11,519

Total liabilities

$

997,202

$

769,023

Shareholders' equity

104,314

95,180

Total liabilities and shareholders' equity

$

1,101,516

$

864,203

Net interest income

$

9,454

$

8,024

Net interest spread

3.45

%

3.54

%

Interest expense as a percent of average earning assets

0.23

%

0.52

%

Net interest margin

3.63

%

3.90

%

 

(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

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

GAAP Financial Measurements:

Interest Income - Loans

$

9,249

$

9,312

$

8,773

$

7,939

$

7,908

Interest Income - Securities and Other Interest-Earnings Assets

741

838

888

1,168

1,119

Interest Expense - Deposits

592

683

879

1,102

1,071

Interest Expense - Other Borrowings

25

6

Total Net Interest Income

$

9,398

$

9,467

$

8,757

$

8,005

$

7,950

Non-GAAP Financial Measurements:

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

$

22

$

23

$

24

$

24

$

26

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

34

38

40

44

48

Total Tax Benefit on Tax-Exempt Interest Income

$

56

$

61

$

64

$

68

$

74

Tax-Equivalent Net Interest Income

$

9,454

$

9,528

$

8,821

$

8,073

$

8,024

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2020-fourth-quarter-and-annual-financial-results-and-quarterly-dividend-301218252.html

SOURCE Eagle Financial Services, Inc.



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