Eagle Financial Services Inc 8-K, filed Oct 27, 2022

Eagle Financial Services Inc (EFSI)

8-K 2022-10-27 For: 2022-10-27

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Added on April 12, 2026

About this 8-K

Eagle Financial Services Inc filed this 8-K on October 27, 2022.

Items reported

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

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Virginia	0-20146	54-1601306
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2 East Main Street
Berryville, Virginia		22611
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A


Exhibit No.		Description

99.1 104		Press release, dated October 27, 2022 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
	3Q22			2Q22			1Q22			4Q21			3Q21
Net Income (dollars in thousands)	$	4,082		$	3,992		$	3,250		$	2,283		$	2,873
Earnings per share, basic	$	1.17		$	1.14		$	0.94		$	0.66		$	0.83
Earnings per share, diluted	$	1.17		$	1.14		$	0.94		$	0.66		$	0.83
Return on average total assets		1.12	%		1.16	%		0.99	%		0.70	%		0.92	%
Return on average total equity		15.93	%		15.86	%		12.08	%		8.20	%		10.48	%
Dividend payout ratio		24.79	%		24.56	%		29.79	%		42.42	%		33.73	%
Fee revenue as a percent of total revenue		16.11	%		15.73	%		15.32	%		15.16	%		16.40	%
Net interest margin(1)		3.72	%		3.70	%		3.61	%		3.67	%		3.56	%
Yield on average earning assets		4.14	%		3.93	%		3.73	%		3.79	%		3.69	%
Rate on average interest-bearing liabilities		0.68	%		0.38	%		0.21	%		0.22	%		0.23	%
Net interest spread		3.46	%		3.55	%		3.52	%		3.57	%		3.46	%
Tax equivalent adjustment to net interest income (dollars in thousands)	$	32		$	25		$	27		$	32		$	37
Non-interest income to average assets		0.87	%		1.12	%		0.99	%		1.04	%		0.92	%
Non-interest expense to average assets		3.04	%		3.07	%		3.02	%		3.66	%		3.05	%
Efficiency ratio(2)		65.73	%		66.62	%		68.87	%		81.53	%		71.31	%


	Unaudited 09/30/2022			Unaudited 06/30/2022			Unaudited 03/31/2022			Audited 12/31/2021			Unaudited 09/30/2021
Assets
Cash and due from banks	$	30,782		$	31,457		$	86,965		$	63,840		$	68,168
Federal funds sold		5,153			680			8,945			228			240
Securities available for sale, at fair value		156,361			181,162			194,554			193,370			202,488
Loans held for sale		90			399			843			876			1,148
Loans, net of allowance for loan losses		1,191,099			1,110,993			1,012,144			976,933			914,628
Bank premises and equipment, net		17,972			18,155			18,333			18,249			18,572
Bank owned life insurance		23,731			23,593			23,415			23,236			23,076
Other assets		47,932			36,074			29,096			26,306			24,433
Total assets	$	1,473,120		$	1,402,513		$	1,374,295		$	1,303,038		$	1,252,753
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits	$	491,184		$	477,540		$	489,426		$	470,355		$	448,217
Savings and interest bearing demand deposits		632,081			638,951			619,224			583,296			557,804
Time deposits		130,849			115,022			122,673			123,584			124,644
Total deposits	$	1,254,114		$	1,231,513		$	1,231,323		$	1,177,235		$	1,130,665
Federal funds purchased		—			28,575			—			—			—
Federal Home Loan Bank advances		75,000			—			—			—			—
Subordinated debt		29,360			29,343			29,327			—			—
Other liabilities		16,146			13,592			11,542			15,523			12,286
Commitments and contingent liabilities		—			—			—			—			—
Total liabilities	$	1,374,620		$	1,303,023		$	1,272,192		$	1,192,758		$	1,142,951
Shareholders' Equity
Preferred stock, $10 par value		—			—			—			—			—
Common stock, $2.50 par value		8,600			8,594			8,586			8,556			8,521
Surplus		13,003			12,594			12,260			12,115			11,750
Retained earnings		98,128			95,058			92,040			89,764			88,446
Accumulated other comprehensive (loss) income		(21,231	)		(16,756	)		(10,783	)		(155	)		1,085
Total shareholders' equity	$	98,500		$	99,490		$	102,103		$	110,280		$	109,802
Total liabilities and shareholders' equity	$	1,473,120		$	1,402,513		$	1,374,295		$	1,303,038		$	1,252,753


	9/30/2022			6/30/2022			3/31/2022		12/31/2021			9/30/2021
Interest and Dividend Income
Interest and fees on loans	$	13,282		$	11,663		$	10,620	$	10,665		$	10,049
Interest on federal funds sold		9			4			2		—			—
Interest and dividends on securities available for sale:
Taxable interest income		851			847			779		676			600
Interest income exempt from federal income taxes		59			75			83		98			96
Dividends		22			17			10		10			11
Interest on deposits in banks		143			41			15		16			26
Total interest and dividend income	$	14,366		$	12,647		$	11,509	$	11,465		$	10,782
Interest Expense
Interest on deposits	$	714		$	383		$	370	$	373		$	383
Interest on federal funds purchased		11			8			—		—			—
Interest on Federal Home Loan Bank advances		404			—			—		—			—
Interest on subordinated debt		338			337			—		—			—
Total interest expense	$	1,467		$	728		$	370	$	373		$	383
Net interest income	$	12,899		$	11,919		$	11,139	$	11,092		$	10,399
Provision For Loan Losses		—			360			540		300			300
Net interest income after provision for loan losses	$	12,899		$	11,559		$	10,599	$	10,792		$	10,099
Noninterest Income
Wealth management fees	$	1,094		$	1,062		$	921	$	922		$	876
Service charges on deposit accounts		432			389			374		366			338
Other service charges and fees		1,061			1,029			909		903			964
Gain (loss) on the sale of bank premises and equipment		8			(11	)		—		—			—
(Loss) on the sale of AFS securities		(737	)		—			—		—			—
Gain on sale of loans HFS		568			498			478		813			486
Officer insurance income		138			178			179		160			145
Other operating income		600			704			382		198			72
Total noninterest income	$	3,164		$	3,849		$	3,243	$	3,362		$	2,881
Noninterest Expenses
Salaries and employee benefits	$	6,938		$	5,983		$	5,952	$	5,881		$	5,947
Occupancy expenses		528			516			518		484			450
Equipment expenses		299			258			257		251			246
Advertising and marketing expenses		181			146			111		185			168
Stationery and supplies		34			66			35		30			27
ATM network fees		381			310			286		288			285
Other real estate owned expenses		—			—			—		4			32
Loss on the sale of other real estate owned		—			—			—		73			26
FDIC assessment		116			137			177		197			169
Computer software expense		252			184			254		244			282
Bank franchise tax		234			221			198		198			199
Professional fees		270			876			464		2,642			289
Data processing fees		427			479			480		348			418
Other operating expenses		1,398			1,352			1,191		1,058			985
Total noninterest expenses	$	11,058		$	10,528		$	9,923	$	11,883		$	9,523
Income before income taxes	$	5,005		$	4,880		$	3,919	$	2,271		$	3,457
Income Tax Expense		923			888			669		(12	)		584
Net income	$	4,082		$	3,992		$	3,250	$	2,283		$	2,873
Earnings Per Share
Net income per common share, basic	$	1.17		$	1.14		$	0.94	$	0.66		$	0.83
Net income per common share, diluted	$	1.17		$	1.14		$	0.94	$	0.66		$	0.83


	September 30, 2022								June 30, 2022								September 30, 2021
				Interest								Interest								Interest
	Average			Income/		Average			Average			Income/		Average			Average			Income/		Average
Assets:	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Securities:
Taxable	$	172,848		$	873		2.00	%	$	177,539		$	864		1.95	%	$	164,203		$	611		1.47	%
Tax-Exempt (1)		8,745			75		3.38	%		11,227			95		3.38	%		15,338			122		3.14	%
Total Securities	$	181,593		$	948		2.07	%	$	188,766		$	959		2.04	%	$	179,541		$	733		1.62	%
Loans:
Taxable	$	1,160,966		$	13,222		4.52	%	$	1,068,464		$	11,643		4.37	%	$	893,781		$	10,006		4.44	%
Non-accrual		2,038			—		—	%		2,470			—		—	%		3,834			—		—	%
Tax-Exempt (1)		7,649			76		3.94	%		2,697			25		3.79	%		5,191			54		4.13	%
Total Loans	$	1,170,653		$	13,298		4.51	%	$	1,073,631		$	11,668		4.36	%	$	902,806		$	10,060		4.42	%
Federal funds sold		8,183			9		0.42	%		3,068			4		0.54	%		232			—		0.12	%
Interest-bearing deposits in other banks		19,634			143		2.89	%		31,070			41		0.53	%		83,133			26		0.12	%
Total earning assets	$	1,378,025		$	14,398		4.14	%	$	1,294,065		$	12,672		3.93	%	$	1,161,878		$	10,819		3.69	%
Allowance for loan losses		(10,218	)							(9,536	)							(8,195	)
Total non-earning assets		92,539								92,788								86,862
Total assets	$	1,460,346							$	1,377,317							$	1,240,545
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts	$	178,669		$	170		0.38	%	$	174,111		$	90		0.21	%	$	151,624		$	79		0.21	%
Money market accounts		276,851			283		0.41	%		267,571			150		0.22	%		229,864			137		0.24	%
Savings accounts		183,774			35		0.08	%		182,095			29		0.06	%		161,192			24		0.06	%
Time deposits:
$250,000 and more		57,901			144		0.98	%		63,913			60		0.38	%		67,325			79		0.47	%
Less than $250,000		59,979			82		0.54	%		58,003			54		0.37	%		58,261			64		0.43	%
Total interest-bearing deposits	$	757,174		$	714		0.37	%	$	745,693		$	383		0.21	%	$	668,266		$	383		0.23	%
Federal funds purchased		1,949			11		2.27	%		2,876			8		1.11	%		—			—		—	%
Federal Home Loan Bank advances		66,848			404		2.40	%		—			—		—	%		—			—		—	%
Subordinated debt		29,349			338		4.56	%		29,332			337		4.62	%		—			—		—	%
Total interest-bearing liabilities	$	855,320		$	1,467		0.68	%	$	777,901		$	728		0.38	%	$	668,266		$	383		0.23	%
Noninterest-bearing liabilities:
Demand deposits		487,761								485,979								452,122
Other Liabilities		14,462								12,468								11,392
Total liabilities	$	1,357,543							$	1,276,348							$	1,131,780
Shareholders' equity		102,803								100,969								108,765
Total liabilities and shareholders' equity	$	1,460,346							$	1,377,317							$	1,240,545
Net interest income				$	12,931							$	11,944							$	10,436
Net interest spread							3.46	%							3.55	%							3.46	%
Interest expense as a percent of average earning assets							0.42	%							0.23	%							0.13	%
Net interest margin							3.72	%							3.70	%							3.56	%


	Three Months Ended
	9/30/2022		6/30/2022		3/31/2022		12/31/2021		9/30/2021
GAAP Financial Measurements:
Interest Income - Loans	$	13,282	$	11,663	$	10,620	$	10,665	$	10,049
Interest Income - Securities and Other Interest-Earnings Assets		1,084		984		889		800		733
Interest Expense - Deposits		714		383		370		373		383
Interest Expense - Other Borrowings		753		345		—		—		—
Total Net Interest Income	$	12,899	$	11,919	$	11,139	$	11,092	$	10,399
Non-GAAP Financial Measurements:
Add: Tax Benefit on Tax-Exempt Interest Income - Loans	$	16	$	5	$	5	$	6	$	11
Add: Tax Benefit on Tax-Exempt Interest Income - Securities		16		20		22		26		26
Total Tax Benefit on Tax-Exempt Interest Income	$	32	$	25	$	27	$	32	$	37
Tax-Equivalent Net Interest Income	$	12,931	$	11,944	$	11,166	$	11,124	$	10,436


	3Q22			2Q22			1Q22			4Q21			3Q21
BALANCE SHEET RATIOS
Loans to deposits		95.83	%		91.01	%		82.96	%		83.73	%		81.74	%
Average interest-earning assets to average-interest bearing liabilities		161.11	%		166.35	%		173.69	%		173.49	%		173.86	%
PER SHARE DATA
Dividends	$	0.29		$	0.28		$	0.28		$	0.28		$	0.28
Book value		28.28			28.58			29.37			32.22			32.21
Tangible book value		28.28			28.58			29.37			32.22			32.21
SHARE PRICE DATA
Closing price	$	36.92		$	35.44		$	35.45		$	34.65		$	34.20
Diluted earnings multiple(1)		7.89			7.77			9.43			13.13			10.30
Book value multiple(2)		1.31			1.24			1.21			1.08			1.06
COMMON STOCK DATA
Outstanding shares at end of period		3,483,571			3,481,188			3,477,020			3,454,128			3,449,204
Weighted average shares outstanding		3,482,820			3,479,591			3,472,332			3,451,383			3,448,352
Weighted average shares outstanding, diluted		3,482,820			3,479,591			3,472,332			3,451,383			3,448,352
CAPITAL RATIOS
Common equity Tier 1 capital ratio		9.35	%		9.67	%		10.19	%		10.72	%		11.30	%
Tier 1 risk-based capital ratio		9.35	%		9.67	%		10.19	%		10.72	%		11.30	%
Total risk-based capital ratio		10.98	%		11.33	%		11.94	%		11.58	%		12.18	%
Tier 1 leverage ratio		8.09	%		8.34	%		8.44	%		8.57	%		8.78	%
Total equity to total assets		6.69	%		7.09	%		7.43	%		8.46	%		8.76	%
CREDIT QUALITY
Net charge-offs to average loans		(0.08	)%		(0.02	)%		0.00	%		—	%		(0.01	)%
Total non-performing loans to total loans		0.20	%		0.19	%		0.26	%		0.28	%		0.38	%
Total non-performing assets to total assets		0.16	%		0.15	%		0.19	%		0.21	%		0.30	%
Non-accrual loans to:
total loans		0.20	%		0.18	%		0.26	%		0.28	%		0.38	%
total assets		0.16	%		0.14	%		0.19	%		0.21	%		0.28	%
Allowance for loan losses to:
total loans		0.89	%		0.88	%		0.91	%		0.89	%		0.91	%
non-performing assets		442.59	%		472.67	%		357.47	%		317.68	%		226.79	%
non-accrual loans		442.59	%		488.85	%		357.47	%		322.70	%		239.18	%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days	$	—		$	69		$	—		$	43		$	—
Non-accrual loans		2,427			2,015			2,606			2,723			3,532
Other real estate owned and repossessed assets		—			—			—			—			193
NET LOAN CHARGE-OFFS (RECOVERIES):