Eagle Financial Services Inc 8-K, filed Oct 23, 2020

Eagle Financial Services Inc (EFSI)

8-K 2020-10-23 For: 2020-10-22

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Added on April 12, 2026

About this 8-K

Eagle Financial Services Inc filed this 8-K on October 23, 2020, reporting on events of October 22, 2020.

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 October 22, 2020 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
	3Q20			2Q20			1Q20			4Q19			3Q19
Net Income (dollars in thousands)	$	3,406		$	2,819		$	2,441		$	2,831		$	2,231
Earnings per share, basic	$	0.99		$	0.83		$	0.71		$	0.83		$	0.65
Earnings per share, diluted	$	0.99		$	0.83		$	0.71		$	0.83		$	0.65
Return on average total assets		1.30	%		1.11	%		1.10	%		1.30	%		1.05	%
Return on average total equity		13.21	%		11.25	%		10.02	%		11.80	%		9.44	%
Dividend payout ratio		26.26	%		31.33	%		36.62	%		31.33	%		38.46	%
Fee revenue as a percent of total revenue		15.85	%		15.39	%		17.38	%		18.76	%		21.05	%
Net interest margin(1)		3.86	%		3.70	%		3.86	%		3.90	%		4.01	%
Yield on average earning assets		4.14	%		4.08	%		4.39	%		4.42	%		4.58	%
Rate on average interest-bearing liabilities		0.48	%		0.64	%		0.86	%		0.88	%		0.94	%
Net interest spread		3.66	%		3.44	%		3.53	%		3.54	%		3.64	%
Tax equivalent adjustment to net interest income (dollars in thousands)	$	61		$	64		$	68		$	74		$	82
Non-interest income to average assets		0.84	%		0.95	%		0.76	%		0.83	%		1.05	%
Non-interest expense to average assets		2.84	%		2.76	%		3.11	%		2.90	%		3.50	%
Efficiency ratio(2)		64.43	%		65.45	%		70.42	%		64.11	%		72.28	%


☐	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 9/30/2020		Unaudited 6/30/2020		Unaudited 3/31/2020		Audited 12/31/2019		Unaudited 9/30/2019
Assets
Cash and due from banks	$	63,774	$	38,099	$	22,757	$	33,407	$	38,916
Federal funds sold		270		264		288		252		240
Securities available for sale, at fair value		153,688		146,885		157,659		166,200		139,351
Loans, net of allowance for loan losses		799,040		782,569		668,645		639,787		633,389
Bank premises and equipment, net		18,906		19,047		19,179		19,297		19,363
Other assets		37,582		36,037		30,349		18,377		20,160
Total assets	$	1,073,260	$	1,022,901	$	898,877	$	877,320	$	851,419
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits	$	379,198	$	351,547	$	271,508	$	269,171	$	265,483
Savings and interest bearing demand deposits		446,687		417,458		377,677		364,175		348,436
Time deposits		129,353		138,905		140,814		138,198		121,481
Total deposits	$	955,238	$	907,910	$	789,999	$	771,544	$	735,400
Federal Home Loan Bank advances		—		—		—		—		10,000
Other liabilities		14,139		13,422		9,079		9,450		11,390
Commitments and contingent liabilities		—		—		—		—		—
Total liabilities	$	969,377	$	921,332	$	799,078	$	780,994	$	756,790
Shareholders' Equity
Preferred stock, $10 par value		—		—		—		—		—
Common stock, $2.50 par value		8,472		8,473		8,466		8,529		8,532
Surplus		10,862		10,771		10,578		11,406		11,472
Retained earnings		80,907		78,388		76,457		74,909		72,970
Accumulated other comprehensive income		3,642		3,937		4,298		1,482		1,655
Total shareholders' equity	$	103,883	$	101,569	$	99,799	$	96,326	$	94,629
Total liabilities and shareholders' equity	$	1,073,260	$	1,022,901	$	898,877	$	877,320	$	851,419

	9/30/2020			6/30/2020			3/31/2020			12/31/2019			9/30/2019
Interest and Dividend Income
Interest and fees on loans	$	9,312		$	8,773		$	7,939		$	7,908		$	8,022
Interest on federal funds sold		—			—			1			1			1
Interest and dividends on securities available for sale:
Taxable interest income		660			715			895			794			750
Interest income exempt from federal income taxes		142			152			167			183			205
Dividends		28			15			19			21			16
Interest on deposits in banks		8			6			86			120			90
Total interest and dividend income	$	10,150		$	9,661		$	9,107		$	9,027		$	9,084
Interest Expense
Interest on deposits	$	683		$	879		$	1,102		$	1,071		$	1,123
Interest on Federal Home Loan Bank advances		—			25			—			6			9
Total interest expense	$	683		$	904		$	1,102		$	1,077		$	1,132
Net interest income	$	9,467		$	8,757		$	8,005		$	7,950		$	7,952
Provision For Loan Losses		100			752			(97	)		62			117
Net interest income after provision for loan losses	$	9,367		$	8,005		$	8,102		$	7,888		$	7,835
Noninterest Income
Income from fiduciary activities	$	381		$	403		$	297		$	354		$	369
Service charges on deposit accounts		220			170			284			313			306
Other service charges and fees		1,251			1,147			1,104			1,165			1,466
Gain on the sale of bank premises and equipment		—			—			—			—			16
Gain (loss) on sales of AFS securities		158			529			—			—			(4	)
Officer insurance income		102			143			—			(26	)		(22	)
Other operating income		104			30			5			12			88
Total noninterest income	$	2,216		$	2,422		$	1,690		$	1,818		$	2,219
Noninterest Expenses
Salaries and employee benefits	$	4,739		$	4,373		$	4,088		$	3,489		$	4,120
Occupancy expenses		414			403			395			396			386
Equipment expenses		282			252			232			232			206
Advertising and marketing expenses		152			152			205			211			190
Stationery and supplies		28			34			32			57			49
ATM network fees		252			243			242			315			265
Other real estate owned expenses		(3	)		(3	)		2			24			51
(Gain) loss on the sale of other real estate owned		—			—			(132	)		(4	)		376
FDIC assessment		75			41			—			(36	)		35
Computer software expense		200			161			120			125			114
Bank franchise tax		178			176			174			173			173
Professional fees		188			317			354			230			206
Data processing fees		301			382			481			369			363
Other operating expenses		659			483			682			729			877
Total noninterest expenses	$	7,465		$	7,014		$	6,875		$	6,310		$	7,411
Income before income taxes	$	4,118		$	3,413		$	2,917		$	3,396		$	2,643
Income Tax Expense		712			594			476			565			412
Net income	$	3,406		$	2,819		$	2,441		$	2,831		$	2,231
Earnings Per Share
Net income per common share, basic	$	0.99		$	0.83		$	0.71		$	0.83		$	0.65
Net income per common share, diluted	$	0.99		$	0.83		$	0.71		$	0.83		$	0.65

	September 30, 2020								June 30, 2020								September 30, 2019
				Interest								Interest								Interest
	Average			Income/		Average			Average			Income/		Average			Average			Income/		Average
Assets:	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Securities:
Taxable	$	122,761		$	688		2.23	%	$	131,702		$	730		2.23	%	$	112,368		$	766		2.70	%
Tax-Exempt (1)		21,374			180		3.35	%		22,716			192		3.40	%		29,489			259		3.49	%
Total Securities	$	144,135		$	868		2.40	%	$	154,418		$	922		2.40	%	$	141,857		$	1,025		2.87	%
Loans:
Taxable	$	784,302		$	9,226		4.68	%	$	736,584		$	8,685		4.74	%	$	622,738		$	7,917		5.04	%
Non-accrual		4,229			—		—	%		3,263			—		—	%		2,767			—		—	%
Tax-Exempt (1)		9,873			109		4.40	%		10,166			112		4.43	%		11,757			133		4.48	%
Total Loans	$	798,404		$	9,335		4.65	%	$	750,013		$	8,797		4.72	%	$	637,262		$	8,050		5.01	%
Federal funds sold		254			—		0.07	%		710			—		0.02	%		248			1		2.01	%
Interest-bearing deposits in other banks		42,740			8		0.07	%		55,958			6		0.04	%		17,725			90		2.03	%
Total earning assets	$	981,304		$	10,211		4.14	%	$	957,836		$	9,725		4.08	%	$	794,325		$	9,166		4.58	%
Allowance for loan losses		(6,520	)							(5,532	)							(5,092	)
Total non-earning assets		71,375								68,401								49,838
Total assets	$	1,046,159							$	1,020,705							$	839,071
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts	$	112,267		$	78		0.28	%	$	102,651		$	75		0.30	%	$	88,400		$	110		0.49	%
Money market accounts		189,033			191		0.40	%		175,199			220		0.51	%		156,715			412		1.04	%
Savings accounts		128,009			23		0.07	%		119,045			34		0.11	%		104,785			53		0.20	%
Time deposits:
$250,000 and more		76,072			249		1.30	%		80,099			372		1.87	%		60,146			323		1.48	%
Less than $250,000		60,096			142		0.94	%		59,714			178		1.19	%		61,289			225		2.09	%
Total interest-bearing deposits	$	565,477		$	683		0.48	%	$	536,708		$	879		0.66	%	$	471,335		$	1,123		0.95	%
Federal funds purchased		—			—		—	%		—			—		—	%		48			—		2.60	%
Federal Home Loan Bank advances		—			—		—	%		30,769			25		0.33	%		5,538			9		0.62	%
Total interest-bearing liabilities	$	565,477		$	683		0.48	%	$	567,477		$	904		0.64	%	$	476,921		$	1,132		0.94	%
Noninterest-bearing liabilities:
Demand deposits		364,473								341,020								257,664
Other Liabilities		13,664								11,437								10,697
Total liabilities	$	943,614							$	919,934							$	745,282
Shareholders' equity		102,545								100,771								93,789
Total liabilities and shareholders' equity	$	1,046,159							$	1,020,705							$	839,071
Net interest income				$	9,528							$	8,821							$	8,034
Net interest spread							3.66	%							3.44	%							3.64	%
Interest expense as a percent of average earning assets							0.28	%							0.38	%							0.57	%
Net interest margin							3.86	%							3.70	%							4.01	%

	Three Months Ended
	9/30/2020		6/30/2020		3/31/2020		12/31/2019		9/30/2019
GAAP Financial Measurements:
Interest Income - Loans	$	9,312	$	8,773	$	7,939	$	7,908	$	8,022
Interest Income - Securities and Other Interest-Earnings Assets		838		888		1,168		1,119		1,062
Interest Expense - Deposits		683		879		1,102		1,071		1,123
Interest Expense - Other Borrowings		—		25		—		6		9
Total Net Interest Income	$	9,467	$	8,757	$	8,005	$	7,950	$	7,952
Non-GAAP Financial Measurements:
Add: Tax Benefit on Tax-Exempt Interest Income - Loans	$	23	$	24	$	24	$	26	$	28
Add: Tax Benefit on Tax-Exempt Interest Income - Securities		38		40		44		48		54
Total Tax Benefit on Tax-Exempt Interest Income	$	61	$	64	$	68	$	74	$	82
Tax-Equivalent Net Interest Income	$	9,528	$	8,821	$	8,073	$	8,024	$	8,034

	3Q20			2Q20			1Q20			4Q19			3Q19
BALANCE SHEET RATIOS
Loans to deposits		84.35	%		86.90	%		85.32	%		83.57	%		86.79	%
Average interest-earning assets to average-interest bearing liabilities		173.54	%		168.79	%		163.80	%		167.77	%		166.55	%
PER SHARE DATA
Dividends	$	0.26		$	0.26		$	0.26		$	0.26		$	0.25
Book value		30.65			29.97			29.47			28.23			27.73
Tangible book value		30.65			29.97			29.47			28.23			27.73
SHARE PRICE DATA
Closing price	$	25.20		$	25.71		$	23.91		$	31.05		$	29.52
Diluted earnings multiple(1)		6.36			7.74			8.42			9.35			11.35
Book value multiple(2)		0.82			0.86			0.81			1.10			1.06
COMMON STOCK DATA
Outstanding shares at end of period		3,416,013			3,409,689			3,409,689			3,430,103			3,439,980
Weighted average shares outstanding		3,413,304			3,409,689			3,437,085			3,433,749			3,436,660
Weighted average shares outstanding, diluted		3,413,304			3,409,689			3,437,085			3,433,749			3,436,660
CAPITAL RATIOS
Total equity to total assets		9.68	%		9.93	%		11.10	%		10.98	%		11.11	%
CREDIT QUALITY
Net charge-offs to average loans		(0.02	)%		(0.03	)%		(0.08	)%		—	%		0.10	%
Total non-performing loans to total loans		0.53	%		0.62	%		0.26	%		0.34	%		0.33	%
Total non-performing assets to total assets		0.44	%		0.52	%		0.24	%		0.27	%		0.30	%
Non-accrual loans to:
total loans		0.53	%		0.54	%		0.26	%		0.34	%		0.32	%
total assets		0.40	%		0.41	%		0.19	%		0.25	%		0.24	%
Allowance for loan losses to:
total loans		0.83	%		0.81	%		0.80	%		0.77	%		0.77	%
non-performing assets		140.10	%		119.00	%		251.82	%		210.00	%		190.98	%
non-accrual loans		155.10	%		158.08	%		317.42	%		227.59	%		237.66	%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days	$	—		$	665		$	—		$	—		$	61
Non-accrual loans		4,286			4,238			1,697			2,185			2,058
Other real estate owned and repossessed assets		442			442			442			183			442
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off	$	22		$	76		$	67		$	32		$	311
(Recoveries)		(218	)		(302	)		(578	)		(52	)		(50	)
Net charge-offs (recoveries)		(196	)		(226	)		(511	)		(20	)		261
PROVISION FOR LOAN LOSSES (dollars in thousands)	$	100		$	752		$	(97	)	$	62		$	117