Eagle Financial Services Inc 8-K, filed Jul 29, 2021

Eagle Financial Services Inc (EFSI)

8-K 2021-07-29 For: 2021-07-28

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Added on April 12, 2026

About this 8-K

Eagle Financial Services Inc filed this 8-K on July 29, 2021, reporting on events of July 28, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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2 East Main Street P.O. Box 391 Berryville, Virginia		22611
(Address of principal executive offices)		(Zip Code)


Exhibit No.		Description

99.1 104		Press release, dated July 28, 2021 Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document



Eagle Financial Services, Inc.

By:		/s/ KATHLEEN J. CHAPPELL
		Kathleen J. Chappell
		Executive Vice President and CFO

Contact:	Kathleen J. Chappell, Executive Vice President and CFO	540-955-2510
		kchappell@bankofclarke.com

	For the Three Months Ended
	2Q21			1Q21			4Q20			3Q20			2Q20
Net Income (dollars in thousands)	$	3,003		$	2,862		$	2,506		$	3,406		$	2,819
Earnings per share, basic	$	0.87		$	0.84		$	0.74		$	0.99		$	0.83
Earnings per share, diluted	$	0.87		$	0.84		$	0.74		$	0.99		$	0.83
Return on average total assets		1.01	%		1.02	%		0.91	%		1.30	%		1.11	%
Return on average total equity		11.47	%		11.04	%		9.56	%		13.21	%		11.25	%
Dividend payout ratio		31.03	%		32.14	%		35.14	%		26.26	%		31.33	%
Fee revenue as a percent of total revenue		15.79	%		15.62	%		15.61	%		15.85	%		15.39	%
Net interest margin (1)		3.56	%		3.62	%		3.63	%		3.86	%		3.70	%
Yield on average earning assets		3.71	%		3.81	%		3.85	%		4.14	%		4.08	%
Rate on average interest-bearing liabilities		0.27	%		0.32	%		0.40	%		0.48	%		0.64	%
Net interest spread		3.44	%		3.49	%		3.45	%		3.66	%		3.44	%
Tax equivalent adjustment to net interest income (dollars in thousands)	$	50		$	53		$	56		$	61		$	64
Non-interest income to average assets		0.89	%		0.86	%		0.81	%		0.84	%		0.95	%
Non-interest expense to average assets		2.95	%		2.82	%		2.92	%		2.84	%		2.76	%
Efficiency ratio (2)		67.83	%		66.25	%		69.21	%		64.43	%		65.45	%


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	Unaudited 06/30/2021		Unaudited 03/31/2021		Audited 12/31/2020		Unaudited 9/30/2020		Unaudited 6/30/2020
Assets
Cash and due from banks	$	104,229	$	86,916	$	79,698	$	63,774	$	38,099
Federal funds sold		234		234		222		270		264
Securities available for sale, at fair value		177,536		175,033		166,222		153,688		146,885
Loans, net of allowance for loan losses		870,344		867,195		829,238		799,040		782,569
Bank premises and equipment, net		18,627		18,822		18,725		18,906		19,047
Other assets		48,174		36,757		36,047		37,582		36,037
Total assets	$	1,219,144	$	1,184,957	$	1,130,152	$	1,073,260	$	1,022,901
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits	$	441,051	$	435,296	$	407,576	$	379,198	$	351,547
Savings and interest bearing demand deposits		532,269		504,775		476,864		446,687		417,458
Time deposits		126,078		127,918		128,658		129,353		138,905
Total deposits	$	1,099,398	$	1,067,989	$	1,013,098	$	955,238	$	907,910
Federal Home Loan Bank advances		—		—		—		—		—
Other liabilities		12,144		11,904		11,980		14,139		13,422
Commitments and contingent liabilities		—		—		—		—		—
Total liabilities	$	1,111,542	$	1,079,893	$	1,025,078	$	969,377	$	921,332
Shareholders' Equity
Preferred stock, $10 par value		—		—		—		—		—
Common stock, $2.50 par value		8,515		8,495		8,460		8,472		8,473
Surplus		11,426		11,021		10,811		10,862		10,771
Retained earnings		86,539		84,462		82,524		80,907		78,388
Accumulated other comprehensive income		1,122		1,086		3,279		3,642		3,937
Total shareholders' equity	$	107,602	$	105,064	$	105,074	$	103,883	$	101,569
Total liabilities and shareholders' equity	$	1,219,144	$	1,184,957	$	1,130,152	$	1,073,260	$	1,022,901

	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Interest and Dividend Income
Interest and fees on loans	$	9,749		$	9,408		$	9,249		$	9,312		$	8,773
Interest on federal funds sold		—			—			—			—			—
Interest and dividends on securities available for sale:
Taxable interest income		530			466			588			660			715
Interest income exempt from federal income taxes		107			118			127			142			152
Dividends		12			12			14			28			15
Interest on deposits in banks		15			12			12			8			6
Total interest and dividend income	$	10,413		$	10,016		$	9,990		$	10,150		$	9,661
Interest Expense
Interest on deposits	$	434		$	487		$	592		$	683		$	879
Interest on Federal Home Loan Bank advances		—			—			—			—			25
Total interest expense	$	434		$	487		$	592		$	683		$	904
Net interest income	$	9,979		$	9,529		$	9,398		$	9,467		$	8,757
Provision For Loan Losses		284			599			702			100			752
Net interest income after provision for loan losses	$	9,695		$	8,930		$	8,696		$	9,367		$	8,005
Noninterest Income
Income from fiduciary activities	$	399		$	341		$	317		$	381		$	403
Service charges on deposit accounts		241			217			246			220			170
Other service charges and fees		1,354			1,309			1,255			1,251			1,147
Gain on the sale of bank premises and equipment		—			—			5			—			—
(Loss) gain on sales of AFS securities		(52	)		76			—			158			529
Gain on sale of loans HFS		359			—			—			—			—
Officer insurance income		118			105			93			102			143
Other operating income		231			379			335			104			30
Total noninterest income	$	2,650		$	2,427		$	2,251		$	2,216		$	2,422
Noninterest Expenses
Salaries and employee benefits	$	5,310		$	4,716		$	4,874		$	4,739		$	4,373
Occupancy expenses		413			456			380			414			403
Equipment expenses		238			224			222			282			252
Advertising and marketing expenses		198			108			198			152			152
Stationery and supplies		60			38			50			28			34
ATM network fees		312			250			272			252			243
Other real estate owned expenses		6			(1	)		13			(3	)		(3	)
Loss (gain) on the sale of other real estate owned		92			10			(11	)		—			—
FDIC assessment		133			107			105			75			41
Computer software expense		281			189			198			200			161
Bank franchise tax		195			189			177			178			176
Professional fees		369			460			261			188			317
Data processing fees		373			402			493			301			382
Other operating expenses		747			768			855			659			483
Total noninterest expenses	$	8,727		$	7,916		$	8,087		$	7,465		$	7,014
Income before income taxes	$	3,618		$	3,441		$	2,860		$	4,118		$	3,413
Income Tax Expense		615			579			354			712			594
Net income	$	3,003		$	2,862		$	2,506		$	3,406		$	2,819
Earnings Per Share
Net income per common share, basic	$	0.87		$	0.84		$	0.74		$	0.99		$	0.83
Net income per common share, diluted	$	0.87		$	0.84		$	0.74		$	0.99		$	0.83

	June 30, 2021								March 31, 2021								June 30, 2020
				Interest								Interest								Interest
	Average			Income/		Average			Average			Income/		Average			Average			Income/		Average
Assets:	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Securities:
Taxable	$	159,246		$	542		1.36	%	$	144,177		$	478		1.35	%	$	131,702		$	730		2.23	%
Tax-Exempt (1)		16,237			135		3.35	%		17,897			149		3.38	%		22,716			192		3.40	%
Total Securities	$	175,483		$	677		1.55	%	$	162,074		$	627		1.57	%	$	154,418		$	922		2.40	%
Loans:
Taxable	$	862,078		$	9,667		4.50	%	$	840,368		$	9,326		4.50	%	$	736,584		$	8,685		4.74	%
Non-accrual		4,280			—		—	%		4,581			—		—	%		3,263			—		—	%
Tax-Exempt (1)		9,473			104		4.39	%		9,560			104		4.43	%		10,166			112		4.43	%
Total Loans	$	875,831		$	9,771		4.47	%	$	854,509		$	9,430		4.48	%	$	750,013		$	8,797		4.72	%
Federal funds sold		234			—		0.08	%		210			—		0.08	%		710			—		0.02	%
Interest-bearing deposits in other banks		83,366			15		0.08	%		60,474			12		0.08	%		55,958			6		0.04	%
Total earning assets	$	1,130,634		$	10,463		3.71	%	$	1,072,686		$	10,069		3.81	%	$	957,836		$	9,725		4.08	%
Allowance for loan losses		(7,862	)							(7,253	)							(5,532	)
Total non-earning assets		78,573								73,143								68,401
Total assets	$	1,201,345							$	1,138,576							$	1,020,705
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts	$	144,914		$	79		0.22	%	$	130,849		$	74		0.23	%	$	102,651		$	75		0.30	%
Money market accounts		213,311			148		0.28	%		209,851			155		0.30	%		175,199			220		0.51	%
Savings accounts		155,065			22		0.06	%		144,460			21		0.06	%		119,045			34		—	%
Time deposits:
$250,000 and more		67,706			114		0.67	%		68,478			153		0.90	%		80,099			372		1.87	%
Less than $250,000		58,520			71		0.49	%		59,518			84		0.57	%		59,714			178		1.19	%
Total interest-bearing deposits	$	639,516		$	434		0.27	%	$	613,156		$	487		0.32	%	$	536,708		$	879		0.66	%
Federal Home Loan Bank advances		—			—		—	%		—			—		—	%		30,769			25		0.33	%
Total interest-bearing liabilities	$	639,516		$	434		0.27	%	$	613,156		$	487		0.32	%	$	567,477		$	904		0.64	%
Noninterest-bearing liabilities:
Demand deposits		443,397								408,015								341,020
Other Liabilities		12,265								12,309								11,437
Total liabilities	$	1,095,178							$	1,033,480							$	919,934
Shareholders' equity		106,167								105,096								100,771
Total liabilities and shareholders' equity	$	1,201,345							$	1,138,576							$	1,020,705
Net interest income				$	10,029							$	9,582							$	8,821
Net interest spread							3.44	%							3.49	%							3.44	%
Interest expense as a percent of average earning assets							0.15	%							0.18	%							0.38	%
Net interest margin							3.56	%							3.62	%							3.70	%

	Three Months Ended
	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
GAAP Financial Measurements:
Interest Income - Loans	$	9,749	$	9,408	$	9,249	$	9,312	$	8,773
Interest Income - Securities and Other Interest-Earnings Assets		664		608		741		838		888
Interest Expense - Deposits		434		487		592		683		879
Interest Expense - Other Borrowings		—		—		—		—		25
Total Net Interest Income	$	9,979	$	9,529	$	9,398	$	9,467	$	8,757
Non-GAAP Financial Measurements:
Add: Tax Benefit on Tax-Exempt Interest Income - Loans	$	22	$	22	$	22	$	23	$	24
Add: Tax Benefit on Tax-Exempt Interest Income - Securities		28		31		34		38		40
Total Tax Benefit on Tax-Exempt Interest Income	$	50	$	53	$	56	$	61	$	64
Tax-Equivalent Net Interest Income	$	10,029	$	9,582	$	9,454	$	9,528	$	8,821

	2Q21			1Q21			4Q20			3Q20			2Q20
BALANCE SHEET RATIOS
Loans to deposits		79.90	%		81.93	%		82.55	%		84.35	%		86.90	%
Average interest-earning assets to average-interest bearing liabilities		176.80	%		174.95	%		175.23	%		173.54	%		168.79	%
PER SHARE DATA
Dividends	$	0.27		$	0.27		$	0.26		$	0.26		$	0.26
Book value		31.59			30.92			31.05			30.65			29.97
Tangible book value		31.59			30.92			31.05			30.65			29.97
SHARE PRICE DATA
Closing price	$	34.10		$	31.99		$	29.50		$	25.20		$	25.71
Diluted earnings multiple(1)		9.80			9.52			9.97			6.36			7.74
Book value multiple(2)		1.08			1.03			0.95			0.82			0.86
COMMON STOCK DATA
Outstanding shares at end of period		3,437,782			3,429,686			3,405,035			3,416,013			3,409,689
Weighted average shares outstanding		3,433,057			3,426,839			3,410,220			3,413,304			3,409,689
Weighted average shares outstanding, diluted		3,433,057			3,426,839			3,410,220			3,413,304			3,409,689
CAPITAL RATIOS
Total equity to total assets		8.83	%		8.87	%		9.30	%		9.68	%		9.93	%
CREDIT QUALITY
Net charge-offs to average loans		(0.01	)%		(0.01	)%		0.03	%		(0.02	)%		(0.03	)%
Total non-performing loans to total loans		0.56	%		0.49	%		0.58	%		0.53	%		0.62	%
Total non-performing assets to total assets		0.44	%		0.41	%		0.48	%		0.44	%		0.52	%
Non-accrual loans to:
total loans		0.51	%		0.49	%		0.58	%		0.53	%		0.54	%
total assets		0.36	%		0.36	%		0.43	%		0.40	%		0.41	%
Allowance for loan losses to:
total loans		0.92	%		0.88	%		0.85	%		0.83	%		0.81	%
non-performing assets		151.22	%		160.64	%		130.46	%		140.10	%		119.00	%
non-accrual loans		182.71	%		179.82	%		146.85	%		155.10	%		158.08	%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days	$	500		$	—		$	—		$	—		$	665
Non-accrual loans		4,432			4,313			4,832			4,286			4,238
Other real estate owned and repossessed assets		423			515			607			442			442
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off	$	19		$	5		$	300		$	22		$	76
(Recoveries)		(77	)		(66	)		(33	)		(218	)		(302	)
Net charge-offs (recoveries)		(58	)		(61	)		267			(196	)		(226	)
PROVISION FOR LOAN LOSSES (dollars in thousands)	$	284		$	599		$	702		$	100		$	752