Eagle Financial Services Inc · NASDAQ:EFSI
Eagle Financial Services — Q3 2021 Earnings Presentation
17 slides from Eagle Financial Services's earnings presentation, Dec 13, 2021
Slide 1: Earnings Deck September 30, 2021
Earnings Deck September 30, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements: 2 The Company makes forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include statements regarding profitability, liquidity, adequacy of capital, the allowance for loan losses, interest rate sensitivity, market risk,
Slide 3: Executive Team
3 Executive Team: Brandon Lorey President, Chief Executive Officer and Director Mr. Lorey has been the President and Chief Executive Officer of both the Company and its subsidiary bank, Bank of Clarke County, since July 2019. Prior to joining the Company in 2019, he had since 2015 served as Executiv
Slide 4: Company Overview: EFSI History and Key Stats
4 Company Overview EFSI History and Key Stats EFSI was incorporated in 1991 Bank of Clarke County was established in 1881 and has operated successfully for over 140 years Headquartered in Berryville, VA Operated solely in Clarke County until 1992 when expanded West into Winchester City, VA and Frede
Slide 5: Company Overview: 2021 Q3 Geographic Presence and Financial Snapshot
5 Company Overview 2021 Q3 Geographic Presence1 $1.3B $915M $1.1B $354M TOTAL NET LOANS TOTAL DEPOSITS AUM TOTAL ASSETS 1) Opened the LPO in Frederick, MD August 2021 EFSI Financial Snapshot Financial Snapshot as of and for the Nine Months Ended September 30, 2021 YTD Profitability Regulatory Capita
Slide 6: Market Presence: Current operational markets and opportunity markets
6 Market Presence: Current operational markets Opportunity markets Markets Population ages 35-54* Household Income** BOCC Deposit Market Share Frederick, VA 22,621 $78,002 25.12% Winchester 10,856 $58,818 11.77% Clarke 3,707 $80,023 83.61% Loudoun 135,362 $142,299 1.85% Fairfax 326,142 $124,831 0% W
Slide 7: Long Range Strategic Objectives
7 Long Range Strategic Objectives: Enhance and Expand Revenue Drivers Continue long standing tradition of matching loan growth with sustainable core deposit growth while identifying areas to expand non-interest income Improve Efficiency and Productivity Increase utilization of existing technology to
Slide 8: Strategic Priorities
Strategic Priorities: 8 Deposits Integrated Cash Management Enhanced Online/Mobile Functionality Enhanced product set to leverage and attract most profitable customer segments Lending C&I/SBA Focus Eastern Region Expansion through Commercial Lending Hire experienced bankers and credit specialists Lo
Slide 9: Investment Rationale
9 Investment Rationale: Record of sustained profitability Substantial level of inside ownership at 22% Diversified markets in VA’s fastest growing MSAs Experienced management with ability to build value 140-year-old bank delivering high tech, yet personalized service - call, click or come in
Slide 10: Earnings, Profitability and Growth
10 Earnings, Profitability and Growth Significant investments in people and technology, along with market expansion and more diversified revenue sources, has driven solid balance sheet and earnings growth Investments, expansion and diversification Opened first Winchester, VA branch 1992 Expanded int
Slide 11: Diversified Revenue
11 Diversified Revenue Recent expansion of Wealth Management division Investments in BOLI made in 2020 ($12M)and 2021($10M) Secondary mortgage department built out in 2020 and began selling loans Q2 2021 Marine loan sales began Q2 2021 ODP revenue enhancements Credit card portfolio Noninterest Incom
Slide 12: Consistent Earnings & Profitability
12 Consistent Earnings & Profitability The Company has maintained strong earnings and consistent returns to its shareholders while making investments in systems, infrastructure, and expansions further into Northern Virginia and Frederick, MD Other revenue sources have been enhanced with the expansio
Slide 13: Loan Portfolio
13 CRE 40% C&I 14% Consumer 7% Loan Portfolio Net Charge-offs/(Recoveries)/Average Loans NPAs/Assets Loan Portfolio Highlights History of strong asset quality and very low charge-off levels 12.5% 5yr. CAGR (excluding PPP) Total of $132M in PPP loans originated; $29M remains at 9/30/21 Niche portfoli
Slide 14: Deposit Mix & Cost of Funds
Deposit Mix & Cost of Funds 14 Non-Interest Bearing 40% Savings and Interest Bearing 49% Time Deposits 11% Total Deposits $1.1M Cost of Total Deposits/Fed Funds Target Rate Deposit/Funding Disciplined pricing and COF management – 17bps at 9/30/21 Company has not relied on wholesale funding since 201
Slide 15: EFSI COVID Response
15 EFSI COVID Response Loan Deferrals Paycheck Protection Loans Other Actions Taken In 2020, moved 70% of back-office workforce to remote work. Today we have returned to work, as determined by Dept. Mgrs. Onsite Hybrid Remote Drive-thru or in-lobby by appointment only March - July 2020 Deployed vide
Slide 16: Capital
Capital 16 12.2% 11.3% 8.8% TOTAL RISK BASED CAPITAL TIER I RISK BASED TIER I LEVERAGE EFSI, per share data Consolidated Equity ($M) CAGR 6%
Slide 17: Contacts
Contacts: Brandon C. Lorey President & CEO blorey@bankofclarke.com 540-955-5227 Kate J. Chappell EVP & CFO kchappell@bankofclarke.com 540-955-5226 17
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