Eagle Financial Services Inc 8-K, filed May 3, 2023

Eagle Financial Services Inc (EFSI)

8-K 2023-05-03 For: 2023-05-02

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Added on April 12, 2026

About this 8-K

Eagle Financial Services Inc filed this 8-K on May 3, 2023, reporting on events of May 2, 2023.

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 May 2, 2023 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
	1Q23			4Q22			3Q22			2Q22			1Q22
Net Income (dollars in thousands)	$	2,585		$	3,197		$	4,082		$	3,992		$	3,250
Earnings per share, basic	$	0.73		$	0.92		$	1.17		$	1.14		$	0.94
Earnings per share, diluted	$	0.73		$	0.92		$	1.17		$	1.14		$	0.94
Return on average total assets		0.63	%		0.83	%		1.12	%		1.16	%		0.99	%
Return on average total equity		9.99	%		12.70	%		15.93	%		15.86	%		12.08	%
Dividend payout ratio		41.10	%		32.61	%		24.79	%		24.56	%		29.79	%
Fee revenue as a percent of total revenue		16.33	%		14.92	%		16.11	%		15.73	%		15.32	%
Net interest margin(1)		3.27	%		3.68	%		3.72	%		3.70	%		3.61	%
Yield on average earning assets		4.79	%		4.48	%		4.14	%		3.93	%		3.73	%
Rate on average interest-bearing liabilities		2.23	%		1.25	%		0.68	%		0.38	%		0.21	%
Net interest spread		2.56	%		3.23	%		3.46	%		3.55	%		3.52	%
Tax equivalent adjustment to net interest income (dollars in thousands)	$	26		$	20		$	32		$	25		$	27
Non-interest income to average assets		0.85	%		0.80	%		0.87	%		1.12	%		0.99	%
Non-interest expense to average assets		2.99	%		2.99	%		3.04	%		3.07	%		3.02	%
Efficiency ratio(2)		76.24	%		70.53	%		65.73	%		66.62	%		68.87	%


	Unaudited 03/31/2023			Unaudited 12/31/2022			Unaudited 09/30/2022			Unaudited 06/30/2022			Unaudited 03/31/2022
Assets
Cash and due from banks	$	117,342		$	66,531		$	30,782		$	31,457		$	86,965
Federal funds sold		11,373			363			5,153			680			8,945
Securities available for sale, at fair value		160,192			158,389			156,361			181,162			194,554
Loans held for sale		—			153			90			399			843
Loans, net of allowance for loan losses		1,386,750			1,312,565			1,191,099			1,110,993			1,012,144
Bank premises and equipment, net		17,827			18,064			17,972			18,155			18,333
Bank owned life insurance		24,041			23,862			23,731			23,593			23,415
Other assets		39,197			36,790			47,932			36,074			29,096
Total assets	$	1,756,722		$	1,616,717		$	1,473,120		$	1,402,513		$	1,374,295
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits	$	464,123		$	478,750		$	491,184		$	477,540		$	489,426
Savings and interest bearing demand deposits		652,802			627,431			632,081			638,951			619,224
Time deposits		273,026			157,894			130,849			115,022			122,673
Total deposits	$	1,389,951		$	1,264,075		$	1,254,114		$	1,231,513		$	1,231,323
Federal funds purchased		—			32,980			—			28,575			—
Federal Home Loan Bank advances		220,000			175,000			75,000			—			—
Subordinated debt		29,394			29,377			29,360			29,343			29,327
Other liabilities		12,917			13,556			16,146			13,592			11,542
Commitments and contingent liabilities		—			—			—			—			—
Total liabilities	$	1,652,262		$	1,514,988		$	1,374,620		$	1,303,023		$	1,272,192
Shareholders' Equity
Preferred stock, $10 par value		—			—			—			—			—
Common stock, $2.50 par value		8,651			8,629			8,600			8,594			8,586
Surplus		13,435			13,268			13,003			12,594			12,260
Retained earnings		99,845			100,278			98,128			95,058			92,040
Accumulated other comprehensive (loss)		(17,471	)		(20,446	)		(21,231	)		(16,756	)		(10,783	)
Total shareholders' equity	$	104,460		$	101,729		$	98,500		$	99,490		$	102,103
Total liabilities and shareholders' equity	$	1,756,722		$	1,616,717		$	1,473,120		$	1,402,513		$	1,374,295


	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Mortgage real estate loans:
Construction & Secured by Farmland	$	90,660		$	89,652		$	85,476		$	78,184		$	87,951
HELOCs		41,827			43,587			40,971			37,463			36,540
Residential First Lien - Investor		113,483			111,074			100,761			96,804			95,447
Residential First Lien - Owner Occupied		130,383			125,088			118,371			114,441			108,836
Residential Junior Liens		11,142			11,417			11,666			12,049			11,092
Commercial - Owner Occupied		238,578			230,983			219,260			218,363			192,042
Commercial - Non-Owner Occupied & Multifamily		353,330			316,458			310,981			291,052			242,980
Commercial and industrial loans:
BHG loans		6,185			6,688			7,058			7,731			8,651
SBA PPP loans		69			74			112			2,356			8,385
Other commercial and industrial loans		95,943			92,883			69,924			66,611			53,290
Marine loans		253,893			230,874			178,685			151,385			122,228
Triad Loans		27,795			28,472			25,374			19,423			18,842
Consumer loans		16,046			16,369			15,683			15,198			14,773
Overdrafts		151			218			185			914			221
Loans to nondepository financial institutions		—			—			—			—			12,000
Other loans		13,608			12,503			10,981			4,234			4,264
Total loans	$	1,393,093		$	1,316,340		$	1,195,488		$	1,116,208		$	1,017,542
Net deferred loan costs and premiums		7,609			7,443			6,353			4,632			3,917
Allowance for credit/loan losses		(13,950	)		(11,218	)		(10,742	)		(9,847	)		(9,315	)
Net loans	$	1,386,752		$	1,312,565		$	1,191,099		$	1,110,993		$	1,012,144


	Three Months Ended
	March 31, 2023								December 31, 2022								March 31, 2022
				Interest								Interest								Interest
	Average			Income/		Average			Average			Income/		Average			Average			Income/		Average
Assets:	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Securities:
Taxable	$	157,078		$	886		2.29	%	$	153,747		$	875		2.26	%	$	185,157		$	789		1.76	%
Tax-Exempt (1)		545			6		4.16	%		533			5		4.15	%		12,846			105		3.32	%
Total Securities	$	157,623		$	892		2.29	%	$	154,280		$	880		2.26	%	$	198,003		$	894		1.83	%
Loans:
Taxable	$	1,355,259		$	17,076		5.11	%	$	1,245,038		$	15,045		4.79	%	$	1,008,211		$	10,599		4.26	%
Non-accrual		2,093			—		—	%		2,311			—		—	%		2,586			—		—	%
Tax-Exempt (1)		9,594			116		4.91	%		9,492			91		3.82	%		2,751			26		3.80	%
Total Loans	$	1,366,946		$	17,192		5.10	%	$	1,256,841		$	15,136		4.78	%	$	1,013,548		$	10,625		4.25	%
Federal funds sold and interest-bearing deposits in other banks		48,779			500		4.16	%		23,914			168		2.79	%		44,658			17		0.16	%
Total earning assets	$	1,573,348		$	18,584		4.79	%	$	1,435,035		$	16,184		4.48	%	$	1,256,209		$	11,536		3.73	%
Allowance for loan losses		(13,426	)							(10,657	)							(8,973	)
Total non-earning assets		97,863								106,442								86,180
Total assets	$	1,657,785							$	1,530,820							$	1,333,416
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts	$	236,210		$	1,055		1.81	%	$	177,190		$	318		0.71	%	$	165,220		$	85		0.21	%
Money market accounts		258,077			841		1.32	%		280,439			578		0.82	%		257,721			144		0.23	%
Savings accounts		166,803			53		0.13	%		177,565			40		0.09	%		175,333			26		0.06	%
Time deposits:
$250,000 and more		77,777			567		2.96	%		64,223			296		1.83	%		65,053			60		0.37	%
Less than $250,000		128,118			943		2.99	%		75,395			242		1.27	%		58,093			55		0.38	%
Total interest-bearing deposits	$	866,985		$	3,459		1.62	%	$	774,812		$	1,474		0.75	%	$	721,420		$	370		0.21	%
Federal funds purchased		11,179			70		2.54	%		26,476			151		2.26	%		—			—		—	%
Federal Home Loan Bank advances		169,667			2,031		4.85	%		90,217			891		3.92	%		—			—		—	%
Subordinated debt		29,383			354		4.89	%		29,366			392		5.29	%		326			—		—	%
Total interest-bearing liabilities	$	1,077,214		$	5,914		2.23	%	$	920,871		$	2,908		1.25	%	$	721,746		$	370		0.21	%
Noninterest-bearing liabilities:
Demand deposits		462,265								493,373								472,876
Other Liabilities		14,567								16,737								29,688
Total liabilities	$	1,554,046							$	1,430,981							$	1,224,310
Shareholders' equity		103,739								99,839								109,106
Total liabilities and shareholders' equity	$	1,657,785							$	1,530,820							$	1,333,416
Net interest income				$	12,670							$	13,276							$	11,166
Net interest spread							2.56	%							3.23	%							3.52	%
Interest expense as a percent of average earning assets							1.52	%							0.81	%							0.12	%
Net interest margin							3.27	%							3.68	%							3.61	%


	1Q23			4Q22			3Q22			2Q22			1Q22
BALANCE SHEET RATIOS
Loans to deposits		100.77	%		104.72	%		95.83	%		91.01	%		82.96	%
Average interest-earning assets to average-interest bearing liabilities		146.06	%		155.58	%		161.11	%		166.35	%		173.69	%
PER SHARE DATA
Dividends	$	0.30		$	0.30		$	0.29		$	0.28		$	0.28
Book value		29.65			29.15			28.28			28.58			29.37
Tangible book value		29.65			29.15			28.28			28.58			29.37
SHARE PRICE DATA
Closing price	$	33.96		$	35.95		$	36.92		$	35.44		$	35.45
Diluted earnings multiple(1)		11.63			9.77			7.89			7.77			9.43
Book value multiple(2)		1.15			1.23			1.31			1.24			1.21
COMMON STOCK DATA
Outstanding shares at end of period		3,522,874			3,490,086			3,483,571			3,481,188			3,477,020
Weighted average shares outstanding		3,522,431			3,489,764			3,487,555			3,479,573			3,472,332
Weighted average shares outstanding, diluted		3,522,431			3,489,764			3,482,820			3,479,591			3,472,332
CAPITAL RATIOS (BANK ONLY)
Common equity Tier 1 capital ratio		9.02	%		9.19	%		9.44	%		9.70	%		9.84	%
CREDIT QUALITY
Net charge-offs to average loans		0.00	%		0.04	%		(0.08	)%		(0.02	)%		0.00	%
Total non-performing loans to total loans		0.14	%		0.19	%		0.20	%		0.19	%		0.26	%
Total non-performing assets to total assets		0.11	%		0.16	%		0.16	%		0.15	%		0.19	%
Non-accrual loans to:
total loans		0.13	%		0.16	%		0.20	%		0.18	%		0.26	%
total assets		0.10	%		0.13	%		0.16	%		0.14	%		0.19	%
Allowance for credit/loan losses to:
total loans		1.00	%		0.85	%		0.89	%		0.88	%		0.91	%
non-performing assets		702.77	%		433.45	%		442.59	%		472.67	%		357.47	%
non-accrual loans		758.56	%		518.86	%		442.59	%		488.85	%		357.47	%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days	$	146		$	318		$	—		$	69		$	—
Non-accrual loans		1,839			2,162			2,427			2,015			2,606
Other real estate owned and repossessed assets		—			108			—			—			—
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off	$	75		$	491		$	80		$	41		$	47
(Recoveries)		(21	)		(37	)		(975	)		(213	)		(35	)
Net charge-offs (recoveries)		54			454			(895	)		(172	)		12


	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Interest and Dividend Income
Interest and fees on loans	$	17,167		$	15,117		$	13,282		$	11,663		$	10,620
Interest on federal funds sold		10			15			9			4			2
Interest and dividends on securities available for sale:
Taxable interest income		804			815			851			847			779
Interest income exempt from federal income taxes		4			4			59			75			83
Dividends		83			60			22			17			10
Interest on deposits in banks		490			153			143			41			15
Total interest and dividend income	$	18,558		$	16,164		$	14,366		$	12,647		$	11,509
Interest Expense
Interest on deposits	$	3,459		$	1,474		$	714		$	383		$	370
Interest on federal funds purchased		70			151			11			8			—
Interest on Federal Home Loan Bank advances		2,031			891			404			—			—
Interest on subordinated debt		354			392			338			337			—
Total interest expense	$	5,914		$	2,908		$	1,467		$	728		$	370
Net interest income	$	12,644		$	13,256		$	12,899		$	11,919		$	11,139
Provision For Loan Losses		709			930			—			360			540
Net interest income after provision for loan losses	$	11,935		$	12,326		$	12,899		$	11,559		$	10,599
Noninterest Income
Wealth management fees	$	1,158		$	1,072		$	1,094		$	1,062		$	921
Service charges on deposit accounts		436			423			432			389			374
Other service charges and fees		1,047			944			1,061			1,029			909
(Loss) gain on the sale of bank premises and equipment		—			(8	)		8			(11	)		—
(Loss) on the sale of AFS securities		—			—			(737	)		—			—
Gain on sale of loans HFS		456			331			568			498			478
Officer insurance income		179			131			138			178			179
Other operating income		250			196			600			704			382
Total noninterest income	$	3,526		$	3,089		$	3,164		$	3,849		$	3,243
Noninterest Expenses
Salaries and employee benefits	$	7,298		$	6,857		$	6,938		$	5,983		$	5,952
Occupancy expenses		518			506			528			516			518
Equipment expenses		323			307			299			258			257
Advertising and marketing expenses		296			332			181			146			111
Stationery and supplies		22			64			34			66			35
ATM network fees		351			336			381			310			286
Other real estate owned expenses		5			34			—			—			—
(Gain) on the sale of other real estate owned		(7	)		—			—			—			—
FDIC assessment		266			184			116			137			177