Eagle Financial Services Inc · NASDAQ:EFSI
Eagle Financial Services — Investor Presentation (December 2024)
28 slides from Eagle Financial Services's investor presentation, Dec 4, 2024
Slide 1: Investor Presentation Eagle Financial Services, Inc. December 2024
Investor Presentation Eagle Financial December 2024 Services, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements Certain information contained in this Presentation (together with oral statements made in connection herewith, this “Presentation”) may include “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States P
Slide 3: Table of Contents
Table of Contents Introduction Detailed Financial Review Appendix
Slide 4: 1. Introduction
1. Introduction
Slide 5: Company Overview: The EFSI Story
Company Overview The EFSI Story 2024 Q3 Financial Highlights WASHINGTON DC Arlington Annapolis Baltimore MARYLAND 95 81 EFSI Branches (13) EFSI LPO (2) VIRGINIA Berryville Winchester Eagle Financial Services, Inc., operating as Bank of Clarke, was established over 140 years ago Commercial focused ba
Slide 6: History of Growth
Opened branch in Loudoun County, VA WASHINGTON DC Arlington Annapolis Baltimore MARYLAND 95 81 Bank of Clarke opened for business Eagle Financial Services, Inc. was incorporated First expansion out of Clarke County and into Winchester City, VA and Frederick County, VA markets Expanded footprint in N
Slide 7: Investment Highlights
Experienced Leadership Team Attractive Markets of Operation Deep management team with notable community and regional banking experience in the Mid Atlantic Insider ownership of 12% aligns shareholder interest with day-to-day decision making Operate in 2 of the top 10 highest household income countie
Slide 8: Management Team & Board of Directors
Seasoned Management Team Experienced and Balanced Board Management Team & Board of Directors Brandon Lorey President, Chief Executive Officer & Director Age: 55 Years in Banking: 34 EFSI Experience: 5 Kathleen Chappell Executive VP and Chief Financial Officer Age: 57 Years in Banking: 34 EFSI Experi
Slide 9: Dominant Market Share in Our Core Markets
Dominant Market Share in Our Core Markets Winchester, VA MSA Historical Growth in Winchester Deposits ($B) Loudoun County, VA EFSI 10-Year CAGR: 10% Source: S&P Capital IQ Pro; Deposit data as of 6/30/24 or as of 6/30 of each respective year Community banks defined as banks under $10B in assets Winc
Slide 10: Metro vs. Community Markets: Loans and Deposits by Market
Metro(1) vs. Community Markets Loans and Deposits by Market Loans Deposits Current Balances by Market Dollars in millions Source: Company documents, US Census; data as of 12/31 each year ended and as of the three months ended 9/30/24 Metro defined as a county with a population of over 250,000 at 202
Slide 11: Strategic Objectives
Strategic Objectives Maintain focus on strong, profitable organic growth without compromising credit quality Identify areas to expand non-interest income Increase utilization of technology to drive revenue and lower expenses Increase operating revenue, maximize operating earnings, grow tangible book
Slide 12: 2. Detailed Financial Review
2. Detailed Financial Review
Slide 13: Balance Sheet Growth
Gross Loans ($M) Balance Sheet Growth Total Assets ($M) Total Deposits ($M) Source: Company documents; annual data as of 12/31 each year ended; quarterly data as of 9/30/24 CAGR: 16% CAGR: 17% CAGR: 15%
Slide 14: Core Deposit Portfolio
Demand Deposit CAGR: 9% Core Deposit Portfolio Cost of Deposits (%) Deposit Composition Over Time($M) Deposit Composition Core deposits continue to fuel our organic loan growth strategy Continued focus on commercial deposits; recently expanded treasury management product suite Bankers are incentiviz
Slide 15: Loan Portfolio
Loan Portfolio Loan Composition 2018 Q3 ‘24 C&D: 57% CRE: 207% C&D: 47% CRE: 244% Continued focus on providing credit to small and medium sized businesses No Shared National Credit Exposure and limited exposure to purchased and participated loans 14 commercial bankers throughout our footprint Contin
Slide 16: Loan Portfolio Detail
Loan Portfolio Detail Commercial and Industrial Loans (%) Investment Commercial Real Estate (%) Commercial Loans / Total Loans: 17.09% Largest Commercial Loan: $9.3M Real Estate Loans / Total Loans: 24.2% Largest CRE Loan Size: $12.8M Source: Company documents; data as of 9/30/24 Note: Commercial an
Slide 17: Asset Quality
Asset Quality Nonperforming Assets by Type ($M) Reserves / Loans (%) (0.05%) 0.18% (0.09%) (0.02%) (0.05%) Comprehensive and conservative underwriting process Highly experienced bankers incentivized with equity ownership Commitment to a diverse loan portfolio while maintaining strong asset quality m
Slide 18: Securities Portfolio
Securities Portfolio Securities Portfolio Composition Maturity Schedule ($000s) Securities Portfolio Attributes Weighted average life of 5.8 years, and effective duration of 4.14 years Weighted average book yield of 1.88% Source: Company documents; data as of 9/30/24; historical data as of 12/31 eac
Slide 19: Yield and Cost Analysis
Yield and Cost Analysis Source: Company documents; annual data for the twelve months ended ended each year; quarterly data for the three months ended each quarter (1) Yield on cash calculated as yield on balances in depository institutions (1)
Slide 20: Noninterest Income Highlights
Annualized $17.4 Noninterest Income Highlights Historical Fee Income Sources ($M) Diversified Revenue Sources Recent expansion of Wealth Management division with several new hires in 2021 and 2022 11 professionals dedicated to Wealth Management services Investment Management Personal Managed Portfol
Slide 21: Consistent Profitability Metrics
Consistent Profitability Metrics Return on Average Assets (ROAA)(%) NII / AA and NIE / AA (%) Return on Average Tangible Common Equity (ROATCE) (%) Efficiency Ratio (%) NII / Revenue 18.9% 19.6% 18.1% 21.6% 22.3% Source: Company documents; annual data as of 12/31 each year ended; quarterly data as o
Slide 22: Earnings, Book Value and Dividends
Earnings, Book Value and Dividends Earnings per Share ($) Net Income ($M) Dividend per Share ($) Tangible Book Value per Share ($) Source: Company documents; annual data as of or for the twelve months ended each period; quarterly data as of or for the three months ended 9/30/24 Metric shown on an an
Slide 23: Capital Ratios
Bank Level Leverage Ratio (%) Tangible Common Equity / Tangible Assets (%) Capital Ratios CET1 Ratio (%) Total Risk-Based Capital Ratio (%) Source: Company documents; data as of 12/31 each year ended; quarterly data as of 9/30/24 (1) See appendix for reconciliation of non-GAAP metrics (1)
Slide 24: 3. Appendix
3. Appendix
Slide 25: Funding and Sources of Liquidity
Funding and Sources of Liquidity Source: Company documents; data as of 9/30/24 $709k cash at the holding company as of September 30, 2024 Dividend capacity from the bank to the holding company of $28.2M as of September 30, 2024 Unused lines of credit to purchase federal funds from correspondent bank
Slide 26: Loan Concentration Ratios
Loan Concentration Ratios Bank CRE Ratio Over time (%) Bank C&D Ratio Over time (%) Source: Company documents; annual data as of 12/31 each year ended; quarterly data as of 9/30/24
Slide 27: Historical Financials
Historical Financials Source: Company documents Dollars in millions (1) See appendix for reconciliation of non-GAAP metrics
Slide 28: Non-GAAP Reconciliation
Eagle Keanciat fet. Non-GAAP Reconciliation Figures in millions except share data PIPP Income Net Interest Income (GAAP) Plus: Noninterest Income Total Revenue (Non-GAAP) Less: Noninterest Expense PTPP Income (Non-GAAP) Tangible Assets Total Assets (GAAP) Less: Goodwill Less: Other Intangibles Tangi
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