Eagle Financial Services Inc · NASDAQ:EFSI
Eagle Financial Services — Investor Presentation (December 2020)
22 slides from Eagle Financial Services's investor presentation, Dec 11, 2020
Slide 1: Investor Deck As of 9/30/20
Investor Deck As of 9/30/20 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements 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, gro
Slide 3: 2020 Q3 & YTD Highlights
2020 Q3 & YTD Highlights: Total Assets $1.1 billion 12 Retail Banking Offices 1 Commercial Loan Production Office Total Loans $806 million Core Deposits $955 million Trust Assets $139 million * Amounts as of 9/30/2020 Eagle Financial Services, Inc. EFSI Bank of Clarke County Commercial Banking Wealt
Slide 4: Investment Rationale
Investment Rationale: Record of sustained profitability Experienced management with ability to build value Diversified markets in Virginia’s fastest growing MSAs Long-standing bank delivering high tech, yet continued personalized service – call, click or come in Substantial level of insider ownershi
Slide 5: Market Presence
Market Presence The Bank has an East to West market span covering over 50 miles and four Counties In Q3 2019, the Bank opened a commercial loan production office in Tysons Corner, Fairfax, VA
Slide 6: Executive Team
Executive Team Executive Position Industry Experience EFSI Tenure Background Brandon Lorey President & CEO 30 Years 1.5 Years United Bank, H&R Block Bank, Chevy Chase FSB Kathleen Chappell EVP & CFO 31 Years 11 Years Middleburg Financial Corp, Yount, Hyde & Barbour, P.C. Joe Zmitrovich EVP & Chief R
Slide 7: Long Range Strategic Objectives
Long Range Strategic Objectives Objective Description 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 Increased utilization of ex
Slide 8: Strategic Priorities
Strategic Priorities Deposits Integrated Cash Management Enhanced Online/Mobile Functionality Enhanced product set to leveraged to attract most profitable customer segments Lending C&I / SBA Focus Eastern Region Expansion through Commercial Lending Team lift out of experienced bankers and credit spe
Slide 9: Market Presence
Market Presence Markets Population ages 35-54 Household Income BOCC Deposit Market Share Frederick 23,290 $73,250 29.98% Winchester 6,847 $53,797 10.53% Clarke 3,756 $77,936 79.08% Loudoun 133,474 $136,268 2.55% Fairfax 330,217 $121,133 n/a Washington DC 181,127 $82,604 n/a Current operational marke
Slide 10: Earnings & Profitability
Earnings & Profitability The Company has maintained consistent profitability over the past several years, with ROAA near or above 1.0%
Slide 11: Earnings & Profitability
Earnings & Profitability The Company has maintained a strong net interest margin by managing its loan and deposit pricing. Attention has also been given to overhead costs to return efficiency to a targeted level
Slide 12: Asset Mix
Asset Mix Segment as a Percentage of Total Assets The Company has maintained a stable mix of its assets over recent years with the majority focused in the loan portfolio, where available funding can be invested back into the communities the Bank serves 2016 2017 2018 2019 9/30/2020 Loan to Deposits
Slide 13: Production Distribution
Production Distribution Expansion to the east, which began in earnest four years ago, has led to strong production across the entire footprint providing good loan granularity The PPP program also brought significant new business to the organization where 75% of accounts have been converted to busine
Slide 14: Portfolio Mix
Portfolio Mix (000’s) Gross loans have increased $166.7 million since 12/31/19 $88 million of that growth is in C&I loans and resulted from originated PPP loans Remaining YTD growth has been in the Residential RE and CRE categories Avg. portfolio yield at 9/30/20 was 4.19% *includes $88.2 million of
Slide 15: Asset Quality
Asset Quality *Non-performing assets are comprised of non-accrual loans, other real estate owned and repossessed assets Consistent, conservative lending and underwriting practices combined with focus on delinquency and other asset quality drivers has resulted in lower levels of non-performing assets
Slide 16: Deposit Mix & Cost of Funds
Deposit Mix & Cost of Funds Total deposits have increased $183.7 million since 12/31/19. The 86% of lower cost non-maturity deposits helps the Company its total cost of funds low, thereby supporting the net interest margin Total cost of funds at 9/30/2020 was 0.41% - which is among the lowest in the
Slide 17: Revenue
Revenue 9/30/20 annualized net interest income is $3.8 million higher than that for the year ended 12/31/2019 while other fee income sources remain consistent with recent year levels The annualized 9/30/20 net interest income includes $2.4 million of interest income and fees from PPP loans Wealth Ma
Slide 18: EFSI COVID Response
EFSI COVID Response 251 loan deferrals ($134MM) 20 Remaining as of 9/30 ($36MM) expected to expire by year end No delinquencies on loans that have come out of deferral period Significant portfolio stress modeling and active communication with all borrowers Early adopter of PPP $88MM funding (900 cus
Slide 19: COVID Impact
COVID Impact Despite the pandemic, the Company has experienced record balance sheet growth, excluding the PPP production As reflected in the remaining loan deferrals at 9/30, the Bank’s loan portfolio has been minimally impacted by the pandemic Q1 Q2 Net income, (000's) $2,441 $2,819 Diluted, EPS $0
Slide 20: Capital
Capital Consecutive annual cash dividend increases since 1986 Risk based capital levels exceed the Federal Reserve Bank’s thresholds for well capitalized under the regulatory framework for prompt corrective action Information as of 9/30/2020, unless noted otherwise Exchange OTCQX Ticker Symbol EFSI
Slide 21: Capital
Capital The Company used $1.4 million to purchase 50,988 shares of its common stock during the first nine months of 2020 Since 2011, the Board of Directors has approved an annual stock repurchase plan * * *9/30/2020 annualized
Slide 22: Contacts
Contacts: Brandon C. Lorey President & CEO blorey@bankofclarke.com 540-955-5227 Kate J. Chappell EVP & CFO kchappell@bankofclarke.com 540-955-5226
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