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

About this update from Eagle Financial Services Inc

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 (dollarsin 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-interestbearing 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 inthousands) $ 315 $ 475 $ 366 $ 1,283 $ 403 ALLOWANCE FOR CREDIT LOSSES (dollars inthousands) $ 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-bearingdeposits 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 averageearning 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 View original content to download multimedia: https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2024-second-quarter-financial-results-and-quarterly-dividend-302207401.html SOURCE Eagle Financial Services, Inc.

View stock analysis, news, and events for Eagle Financial Services Inc