Eagle Financial Services Inc 8-K, filed Jan 29, 2020

Eagle Financial Services Inc (EFSI)

8-K 2020-01-29 For: 2020-01-29

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Added on April 12, 2026

About this 8-K

Eagle Financial Services Inc filed this 8-K on January 29, 2020.

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 P.O. Box 391 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



Exhibit No.		Description

99.1		Press release, dated January 29, 2020




Eagle Financial Services, Inc.

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



☐	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))



	Q4			Annual
Net income (000’s)	$	2,831		$	9,759
Diluted EPS	$	0.83		$	2.84
Dividend, per common share	$	0.26		$	1.00
Net Interest Margin	3.90		%	4.02		%
Loan Growth, gross (000’s)	$	6,479		$	37,933
Deposit growth (000’s)	$	36,144		$	68,440



	For the Three Months Ended
	4Q19			3Q19			2Q19			1Q19			4Q18
Net Income (dollars in thousands)	$	2,831		$	2,231		$	2,126		$	2,571		$	2,081
Earnings per share, basic	$	0.83		$	0.65		$	0.62		$	0.74		$	0.60
Earnings per share, diluted	$	0.83		$	0.65		$	0.62		$	0.74		$	0.60
Return on average total assets	1.30		%	1.05		%	1.04		%	1.31		%	1.05		%
Return on average total equity	11.80		%	9.44		%	9.37		%	11.74		%	9.65		%
Dividend payout ratio	31.33		%	38.46		%	40.32		%	33.78		%	40.00		%
Fee revenue as a percent of total revenue	18.76		%	21.05		%	19.33		%	17.30		%	17.52		%
Net interest margin(1)	3.90		%	4.01		%	4.02		%	4.14		%	4.05		%
Yield on average earning assets	4.42		%	4.58		%	4.57		%	4.67		%	4.48		%
Yield on average interest-bearing liabilities	0.88		%	0.94		%	0.92		%	0.87		%	0.73		%
Net interest spread	3.54		%	3.64		%	3.66		%	3.79		%	3.75		%
Tax equivalent adjustment to net interest income (dollars in thousands)	$	74		$	82		$	88		$	93		$	98
Non-interest income to average assets	0.83		%	1.05		%	0.92		%	0.94		%	0.81		%
Non-interest expense to average assets	2.90		%	3.50		%	3.34		%	3.17		%	3.06		%
Efficiency ratio(2)	64.11		%	72.28		%	70.68		%	65.18		%	66.05		%


(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.



	Unaudited 12/31/2019		Unaudited 9/30/2019		Unaudited 6/30/2019		Unaudited 3/31/2019		Audited 12/31/2018
Assets
Cash and due from banks	$	33,407	$	38,916	$	18,133	$	12,214	$	18,353
Federal funds sold	252		240		228		—		—
Securities available for sale, at fair value	166,200		139,351		142,864		145,145		145,468
Loans, net of allowance for loan losses	639,787		633,389		634,161		613,523		601,371
Bank premises and equipment, net	19,297		19,363		19,152		19,209		19,083
Other assets	18,377		20,160		18,966		18,626		15,342
Total assets	$	877,320	$	851,419	$	833,504	$	808,717	$	799,617
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest bearing demand deposits	$	269,171	$	265,483	$	253,751	$	255,567	$	251,184
Savings and interest bearing demand deposits	364,175		348,436		356,301		336,109		336,778
Time deposits	138,198		121,481		120,872		115,763		115,142
Total deposits	$	771,544	$	735,400	$	730,924	$	707,439	$	703,104
Federal funds purchased	—		—		—		355		1,871
Federal Home Loan Bank advances	—		10,000		—		—		—
Other liabilities	9,450		11,390		9,838		9,739		7,043
Commitments and contingent liabilities	—		—		—		—		—
Total liabilities	$	780,994	$	756,790	$	740,762	$	717,533	$	712,018
Shareholders’ Equity
Preferred stock, $10 par value	$	—	$	—	$	—	$	—	$	—
Common stock, $2.50 par value	8,529		8,532		8,519		8,603		8,573
Surplus	11,406		11,472		11,183		12,116		11,992
Retained earnings	74,909		72,970		71,599		70,328		68,587
Accumulated other comprehensive income	1,482		1,655		1,441		137		(1,553		)
Total shareholders’ equity	$	96,326	$	94,629	$	92,742	$	91,184	$	87,599
Total liabilities and shareholders’ equity	$	877,320	$	851,419	$	833,504	$	808,717	$	799,617



	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Interest and Dividend Income
Interest and fees on loans	$	7,908		$	7,257		$	31,138		$	27,890
Interest on federal funds sold	1			—			4			3
Interest and dividends on securities available for sale:
Taxable interest income	794			767			3,089			2,744
Interest income exempt from federal income taxes	183			259			856			1,051
Dividends	21			16			70			59
Interest on deposits in banks	120			24			297			176
Total interest and dividend income	$	9,027		$	8,323		$	35,454		$	31,923
Interest Expense
Interest on deposits	$	1,071		$	796		$	4,193		$	2,490
Interest on federal funds purchased	—			15			31			25
Interest on Federal Home Loan Bank advances	6			—			15			—
Total interest expense	$	1,077		$	811		$	4,239		$	2,515
Net interest income	$	7,950		$	7,512		$	31,215		$	29,408
Provision For Loan Losses	62			529			629			777
Net interest income after provision for loan losses	$	7,888		$	6,983		$	30,586		$	28,631
Noninterest Income
Income from fiduciary activities	$	354		$	301		$	1,380		$	1,360
Service charges on deposit accounts	313			305			1,187			1,218
Other service charges and fees	1,165			992			4,893			4,173
(Loss) Gain on the sale of bank premises and equipment	—			—			137			(3		)
Gain on sales of AFS securities	—			—			(7		)	17
Officer insurance income	(26		)	(19		)	(48		)	(39		)
Other operating income	12			30			217			153
Total noninterest income	$	1,818		$	1,609		$	7,759		$	6,879
Noninterest Expenses
Salaries and employee benefits	$	3,489		$	3,486		$	15,025		$	14,083
Occupancy expenses	396			368			1,611			1,476
Equipment expenses	232			229			857			915
Advertising and marketing expenses	211			166			868			761
Stationery and supplies	57			49			172			195
ATM network fees	315			268			1,141			912
Other real estate owned expenses	24			15			76			177
(Gain)loss on the sale of other real estate owned	(4		)	—			443			872
FDIC assessment	(36		)	56			105			225
Computer software expense	125			110			459			474
Bank franchise tax	173			152			656			583
Professional fees	230			218			1,057			1,036
Data processing fees	369			281			1,275			794
Other operating expenses	729			691			3,031			2,692
Total noninterest expenses	$	6,310		$	6,089		$	26,776		$	25,195
Income before income taxes	$	3,396		$	2,503		$	11,569		$	10,315
Income Tax Expense	565			422			1,810			1,314
Net income	$	2,831		$	2,081		$	9,759		$	9,001
Earnings Per Share
Net income per common share, basic	$	0.83		$	0.60		$	2.84		$	2.60
Net income per common share, diluted	$	0.83		$	0.60		$	2.84		$	2.60



	For the Year Ended
	December 31, 2019							December 31, 2018
	Average Balance			Interest Income/ Expense		Average Yield		Average Balance			Interest Income/ Expense		Average Yield
Assets:
Securities:
Taxable	$	113,625		$	3,159	2.78	%	$	98,628		$	2,803	2.84	%
Tax-Exempt (1)	31,009			1,084		3.50	%	38,656			1,331		3.44	%
Total Securities	$	144,634		$	4,243	2.93	%	$	137,284		$	4,134	3.01	%
Loans:
Taxable	$	613,884		$	30,722	5.00	%	$	573,040		$	27,482	4.80	%
Nonaccrual	2,723			—		—	%	1,916			—		—	%
Tax-Exempt (1)	11,722			526		4.49	%	11,591			516		4.45	%
Total Loans	$	628,329		$	31,248	4.97	%	$	586,547		$	27,998	4.77	%
Federal funds sold	194			4		2.06	%	134			3		2.24	%
Interest-bearing deposits in other banks	15,202			297		1.95	%	9,712			176		1.81	%
Total earning assets	$	785,636		$	35,792	4.56	%	$	731,761		$	32,311	4.42	%
Allowance for loan losses	(5,333		)					(4,661		)
Total non-earning assets	49,780							48,601
Total assets	$	830,083						$	775,701
Liabilities and Shareholders’ Equity:
Interest-bearing deposits:
NOW accounts	$	89,536		$	450	0.50	%	$	91,353		$	320	0.35	%
Money market accounts	150,291			1,463		0.97	%	132,136			815		0.62	%
Savings accounts	105,176			207		0.20	%	104,473			159		0.15	%
Time deposits:
$100,000 and more	59,550			1,221		2.05	%	70,778			687		0.97	%
Less than $100,000	61,775			852		1.38	%	36,808			509		1.38	%
Total interest-bearing deposits	$	466,328		$	4,193	0.90	%	$	435,548		$	2,490	0.57	%
Federal funds purchased	1,074			31		2.89	%	964			25		2.59	%
Federal Home Loan Bank advances	2,547			15		0.59	%	—			—		—	%
Total interest-bearing liabilities	$	469,949		$	4,239	0.90	%	$	436,512		$	2,515	0.58	%
Noninterest-bearing liabilities:
Demand deposits	258,176							246,056
Other Liabilities	9,900							8,811
Total liabilities	$	738,025						$	691,379
Shareholders’ equity	92,058							84,322
Total liabilities and shareholders’ equity	$	830,083						$	775,701
Net interest income				$	31,553						$	29,796
Net interest spread						3.66	%						3.84	%
Interest expense as a percent of average earning assets						0.54	%						0.34	%
Net interest margin						4.02	%						4.07	%



Item 2.02	Results of Operations and Financial Condition



Item 9.01	Financial Statements and Exhibits



	4Q19			3Q19			2Q19			1Q19			4Q18
BALANCE SHEET RATIOS
Loans to deposits	83.57		%	86.79		%	87.45		%	87.53		%	86.31		%
Average interest-earning assets to average-interest bearing liabilities	167.77		%	166.55		%	167.00		%	167.37		%	168.35		%
PER SHARE DATA
Dividends	$	0.26		$	0.25		$	0.25		$	0.24		$	0.24
Book value	28.23			27.73			27.22			26.50			25.58
Tangible book value	28.23			27.73			27.22			26.50			25.58
SHARE PRICE DATA
Closing price	$	31.05		$	29.52		$	31.00		$	30.55		$	30.99
Diluted earnings multiple(1)	9.35			11.35			12.50			10.32			12.91
Book value multiple(2)	1.10			1.06			1.14			1.15			1.21
COMMON STOCK DATA
Outstanding shares at end of period	3,430,103			3,439,980			3,431,516			3,459,549			3,445,914
Weighted average shares outstanding	3,433,749			3,436,660			3,425,305			3,458,213			3,469,048
Weighted average shares outstanding, diluted	3,433,749			3,436,660			3,425,305			3,458,213			3,469,048
CAPITAL RATIOS
Total equity to total assets	10.98		%	1.11		%	11.13		%	11.28		%	10.96		%
CREDIT QUALITY
Net charge-offs to average loans	—		%	0.16		%	0.57		%	(0.02		)%	(0.14		)%
Total non-performing loans to total loans	0.34		%	0.33		%	0.70		%	0.53		%	0.46		%
Total non-performing assets to total assets	0.27		%	0.30		%	0.53		%	0.42		%	0.37		%
Non-accrual loans to:
total loans	0.34		%	0.32		%	0.69		%	0.53		%	0.35		%
total assets	0.25		%	0.24		%	0.53		%	0.40		%	0.26		%
Allowance for loan losses to:
total loans	0.77		%	0.77		%	0.79		%	0.92		%	0.90		%
non-performing assets	210.00		%	190.98		%	113.22		%	168.39		%	186.91		%
non-accrual loans	227.59		%	237.66		%	114.98		%	173.85		%	257.60		%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days	$	—		$	61		$	68		$	—		$	695
Non-accrual loans	2,185			2,058			4,379			3,270			2,118
Other real estate owned and repossessed assets	183			442			—			106			106
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off	$	32		$	311		$	960		$	10		$	50
(Recoveries)	(52		)	(50		)	(54		)	(45		)	(264		)


(1)	Income and yields are reported on tax-equivalent basis using a federal tax rate of 21%.



	Three Months Ended
	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
GAAP Financial Measurements:
Interest Income - Loans	$	7,908	$	8,022	$	7,690	$	7,518	$	7,257
Interest Income - Securities and Other Interest-Earnings Assets	1,119		1,062		1,059		1,075		1,066
Interest Expense - Deposits	1,071		1,123		1,055		944		797
Interest Expense - Other Borrowings	6		9		5		25		14
Total Net Interest Income	$	7,950	$	7,952	$	7,689	$	7,624	$	7,512
Non-GAAP Financial Measurements:
Add: Tax Benefit on Tax-Exempt Interest Income - Loans	$	26	$	28	$	28	$	28	$	29
Add: Tax Benefit on Tax-Exempt Interest Income - Securities	48		54		60		64		69
Total Tax Benefit on Tax-Exempt Interest Income	74		$	82	$	88	$	92	$	98
Tax-Equivalent Net Interest Income	$	8,024	$	8,034	$	7,777	$	7,716	$	7,610