Eagle Financial Services, Inc. Announces 2009 Annual and Fourth Quarter Financial Results
BERRYVILLE, Va., Jan. 29 /PRNewswire-FirstCall/ -- Eagle Financial Services, Inc. (OTC Bulletin Board: EFSI), the holding company for Bank of Clarke County, whose divisions include Eagle Investment Group, announces annual and fourth quarter 2009 financial results. The Company's common stock is listed for trading on the Over-the-Counter (OTC) Bulletin Board under the ticker symbol EFSI.
Fourth Quarter and Annual 2009 Financial Highlights:
Q4 Annual
--- ------
Net income (000's) $792 $3,441
Diluted EPS $0.25 $1.08
Net Interest Margin 4.52% 4.31%
Total equity to assets 9.65%
Allowance for loan losses to total loans 1.48%
Total loan growth (000's) $14.0
Retail deposit growth (000's) $27.2
John R. Milleson, President and CEO, stated, "Although 2009 earnings were not at a desired level of performance, the Bank's annual results compare favorably to those of its peers. Our 2009 earnings were adversely affected mostly because of two matters: the increase in the Bank's provision for loan losses and the increase in the Bank's FDIC premium. Challenging times remain for our economy and the banking industry. The Company will continue its focus on providing sound financial services to the communities it serves while sustaining its conservative approach to banking principles as it has during the past 129 years. I take comfort and pride in the fact that we are an independent, community bank."
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended December 31, 2009 was $5.5 million which represented an increase of 16.7% when compared to $4.7 million for the same period in 2008. Net interest income for the year ended December 31, 2009 was $20.7 million which represented an increase of 9.2% when compared to $18.9 million in 2008. This increase in net interest income resulted mostly from the decline in the Company's funding costs.
Total loan interest income was $5.9 million for the quarter ended December 31, 2009, reflecting a decrease of $38,000 from the quarter ended December 31, 2008. Total loan interest income was $23.0 million for the year ended December 31, 2009, reflecting a decrease of $1.8 million from the year ended December 31, 2008. Average loans for the quarter ended December 31, 2009 were $400.0 million compared to $390.4 million for the same period in 2008. Average loans for the year ended December 31, 2009 were $391.4 million compared to $389.9 million for the same period in 2008. The tax equivalent yield on average loans for the quarter ended December 31, 2009 was 5.92%, down 18 basis points from the same time period in 2008. The tax equivalent yield on average loans for the year ended December 31, 2009 was 5.91%, down 48 basis points from the same time period in 2008. Interest income from the investment portfolio was $617,000 for the quarter ended December 31, 2009 and $1.2 million for the same period in 2008. Interest income from the investment portfolio was $4.4 million for the year ended December 31, 2009 and $4.6 million for the same period in 2008.
Total interest expense for the three months ended December 31, 2009 decreased $1.0 million when compared to the three months ended December 31, 2008. Total interest expense for the year ended December 31, 2009 decreased $3.7 million when compared to the year ended December 31, 2008. The average cost of interest bearing liabilities decreased 98 basis points when comparing the quarter ended December 31, 2009 to the same time period in 2008. The average cost of interest bearing liabilities decreased 97 basis points when comparing the year ended December 31, 2009 to the same time period in 2008. The average balance of interest bearing liabilities decreased $1.1 million from the quarter ended December 31, 2008 to the same period in 2009. The average balance of interest bearing liabilities increased $2.9 million from the year ended December 31, 2008 to the same period in 2009.
The net interest margin was 4.52% for the quarter December 31, 2009. When compared to the quarter ended December 31, 2008, the net interest margin increased 54 basis points. The net interest margin was 4.31% for the year ended December 31, 2009. When compared to the year ended December 31, 2008, the net interest margin increased 29 basis points. This increase was attributable to the decreased balance and cost of interest bearing liabilities.
The Company's net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitably earning assets are funded. The Company's net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 34%.
Asset Quality and Provision for Loan Losses
Provisions for loan losses were $1.5 million for the three months ended December 31, 2009, compared to $1.1 million for the quarter ended December 31, 2008. Provisions for loan losses were $4.4 million for the year ended December 31, 2009, compared to $2.3 million for the year ended December 31, 2008. Given the level of problem loans and continued uncertainty in the economy, the Company deemed it prudent to increase its allowance for loan losses.
Non performing assets increased from $4.6 million or .88% of total assets at December 31, 2008 to $7.9 million or 1.48% of total assets at December 31, 2009. This increase mostly resulted from additions to non accrual loans and other real estate owned. During the fourth quarter of 2009, the Bank placed approximately 21 loans on non accrual status. The majority of these loans is secured by real estate and has allocated specific allowances. Two real estate assets valued at $456,000 had been foreclosed upon during the fourth quarter of 2009 while the Bank also sold two pieces of other real estate owned recorded at $293,000 during the same period. Additionally, an allowance for other real estate owned of $198,000 was established during the fourth quarter of 2009.
Loans greater than 90 days past due decreased from $510,000 at December 31, 2008 to $13,000 at December 31, 2009. The Company realized $376,000 in net charge-offs for the quarter ended December 31, 2009 versus $490,000 for the same period in 2008. The Company realized $2.9 million in net charge-offs for the year ended December 31, 2009 versus $980,000 for the same period in 2008. Early in 2009, the Company developed a troubled credit group to monitor past due loans, identify potential problem credits, and develop action plans to work through its troubled loans as promptly as possible.
Given the current economic environment, it is anticipated there could be an increase in past due loans, non performing loans and other real estate owned. However, the increase is not expected to be as significant as that experienced during 2009. The Company believes that the allowance for loan losses will be maintained at a level adequate to mitigate any negative impact resulting from such increases.
Noninterest Income and Noninterest Expense
Noninterest income was $1.3 million for the quarters ended December 31, 2009 and 2008. Noninterest income was $4.6 million for the years ended December 31, 2009 and 2008. Noninterest expense was $4.4 million and $3.7 million for the quarters ended December 31, 2009 and 2008, respectively. Noninterest expense was $16.5 million and $15.8 million for the years ended December 31, 2009 and 2008, respectively. Despite the impact of the increase in FDIC insurance premiums of $604,000 and the loss provision for other real estate owned of $198,000 for the year ended December 31, 2009, the Company has diligently managed and monitored its other operating expenses.
Total Consolidated Assets
Total consolidated assets of the Company at December 31, 2009 were $535.4 million, which represented an increase of $7.3 million or 1.4% from total assets of $528.1 million at December 31, 2008. Total loans increased $14.0 million from $390.1 million at December 31, 2008 to $404.1 million at December 31, 2009. Considering the current interest rate and competitive market environment, the Company has been conscientious about maintaining both its underwriting standards and its net interest margin and thereby cautious about the growth it has accepted in the loan portfolio.
Deposits and Other Borrowings
Total deposits, which include brokered deposits, increased $11.6 million to $398.1 million at December 31, 2009 from $386.5 million at December 31, 2008. The Company held $9.9 million in brokered deposits at December 31, 2009. At December 31, 2008 brokered deposits were $25.5 million.
Securities sold under agreement to repurchase were $14.0 million at December 31, 2009 and $14.7 million at December 31, 2008. Borrowings with the Federal Home Loan Bank of Atlanta were $62.3 million at December 31, 2009 and $70.0 million at December 31, 2008.
Equity
Shareholders' equity at December 31, 2009 and December 31, 2008 was $51.6 million and $46.8 million, respectively. The book value of the Company at December 31, 2009 was $16.14 per common share. Total common shares outstanding were 3,199,636 at December 31, 2009. On January 20, 2010, the board of directors declared a $0.17 per common share cash dividend for shareholders of record as of February 1, 2010 and payable on February 16, 2010.
Certain information contained in this discussion may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company's future operations and are generally identified by phrases such as "the Company expects," "the Company believes" or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For details on factors that could affect expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and other filings with the Securities and Exchange Commission.
EAGLE FINANCIAL SERVICES, INC.
KEY STATISTICS
For the Three Months Ended
4Q09 3Q09 2Q09 1Q09 4Q08
---- ---- ---- ---- ----
Net Income (dollars in
thousands) $792 $790 $904 $955 $1,715
Earnings per share, basic $0.25 $0.25 $0.29 $0.30 $0.54
Earnings per share, diluted $0.25 $0.25 $0.28 $0.30 $0.54
Return on average total
assets 0.59% 0.60% 0.71% 0.74% 1.31%
Return on average total
equity 6.15% 6.33% 7.80% 8.27% 15.00%
Dividend payout ratio 68.00% 68.00% 58.62% 56.67% 31.48%
Fee revenue as a percent of
total revenue 18.06% 11.35% 15.44% 15.13% 20.91%
Net interest margin(1) 4.52% 4.51% 4.24% 3.98% 3.98%
Yield on average earning
assets 5.67% 5.73% 5.67% 5.66% 5.94%
Yield on average interest-
bearing liabilities 1.49% 1.56% 1.82% 2.12% 2.47%
Net interest spread 4.18% 4.17% 3.85% 3.54% 3.47%
Tax equivalent adjustment to
net interest income (dollars
in thousands) $191 $195 $187 $182 $171
Non-interest income to
average assets 0.96% 0.67% 0.95% 0.92% 0.96%
Non-interest expense to
average assets 3.26% 3.20% 3.10% 2.92% 2.87%
Efficiency ratio(2) 62.43% 60.82% 62.88% 63.04% 60.86%
(1) The net interest margin is calculated by dividing tax equivalent
net interest income by total average earning assets. Tax equivalent
interest income is calculated by grossing up interest income for the
amounts that are non taxable (i.e., municipal income) then
subtracting interest expense. The rate utilized is 34%. For the
quarters ended December 31, 2009 and December 31, 2008 net interest
income on a tax equivalent basis was $5.7 million and $4.9 million,
respectively. For the quarters ended September 30, June 30 and
March 31, 2009 net interest income on a tax equivalent basis was
$5.6 million, $5.3 million and $4.9 million, respectively. See the
table below for a reconciliation of net interest income to tax
equivalent net interest income. The Company's net interest margin
is a common measure used by the financial service industry to
determine how profitable earning assets are funded. Because the
Company earns a fair amount of non taxable interest income due to
the mix of securities in its investment security portfolio, net
interest income for the ratio is calculated on a tax equivalent
basis as described above.
(2) The efficiency ratio is not a measurement under accounting
principles generally accepted in the United States. It is calculated
by dividing non interest expense by the sum of tax equivalent net
interest income and non interest income excluding gains and losses
on the investment portfolio. The tax rate utilized is 34%. For the
quarters ended December 31, 2009 and December 31, 2008 net interest
income on a tax equivalent basis was $5.7 million and $4.9 million,
respectively. For the quarters ended September 30, June 30 and
March 31, 2009 net interest income on a tax equivalent basis was
$5.6 million, $5.3 million and $4.9 million, respectively. See the
table below for a reconciliation of net interest income to tax
equivalent net interest income. Total non interest income, excluding
gains and losses on the investment portfolio, for the quarters ended
December 31, 2009 and December 31, 2008, was $1.3 million. Total non
interest income, excluding gains and losses on the investment
portfolio, for the quarters ended September 30, June 30, and March
31, 2009, was $1.3 million, $1.3 million and $1.2 million,
respectively. The Company calculates this ratio in order to evaluate
its overhead structure or how effectively it is operating. An
increase in the ratio from period to period indicates the Company is
losing a larger percentage of its income to expenses. The Company
believes that the efficiency ratio is a reasonable measure of
profitability.
EAGLE FINANCIAL SERVICES, INC.
SELECTED FINANCIAL DATA BY QUARTER
4Q09 3Q09 2Q09
---- ---- ----
BALANCE SHEET RATIOS
Loans to deposits 101.50% 104.31% 102.20%
Average interest-earning
assets to average-interest bearing
liabilities 129.55% 136.59% 126.56%
PER SHARE DATA
Dividends $0.17 $0.17 $0.17
Book value $16.14 $15.88 $15.28
Tangible book value $16.13 $15.88 $15.26
SHARE PRICE DATA
Closing price $15.75 $15.35 $15.00
Diluted earnings multiple(1) 0.98 0.97 0.98
Book value multiple(2) 0.98 0.97 0.98
COMMON STOCK DATA
Outstanding shares at end of
period 3,199,636 3,190,304 3,180,899
Weighted average shares
outstanding 3,194,970 3,185,806 3,169,197
Weighted average shares
outstanding, diluted 3,202,595 3,193,758 3,172,659
CAPITAL RATIOS
Total equity to total assets 9.65% 9.72% 9.30%
CREDIT QUALITY
Net charge-offs to average loans 0.37% 0.14% 0.43%
Total non-performing loans to
total loans 1.27% 0.34% 0.54%
Total non-performing assets to
total assets 1.48% 0.81% 0.82%
Non-accrual loans to:
total loans 1.26% 0.27% 0.53%
total assets 0.95% 0.20% 0.39%
Allowance for loan losses to:
total loans 1.48% 1.25% 1.13%
non-performing assets 75.46% 116.68% 102.74%
non-accrual loans 117.08% 458.66% 213.60%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days $13 $284 $50
Non-accrual loans 5,099 1,067 2,052
Other real estate owned and
repossessed assets 2,799 2,845 2,164
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off $448 $617 $1,727
(Recoveries) (72) (79) (52)
Net charge-offs (recoveries) 376 537 1,675
PROVISION FOR LOAN LOSSES
(dollars in thousands) $1,450 $1,050 $1,050
ALLOWANCE FOR LOAN LOSS SUMMARY
(dollars in thousands)
Balance at the beginning of
period $4,896 $4,383 $5,008
Provision 1,450 1,050 1,050
Net charge-offs (recoveries) 376 537 1,675
Balance at the end of period $5,970 $4,896 $4,383
1Q09 4Q08
---- ----
BALANCE SHEET RATIOS
Loans to deposits 96.85% 100.79%
Average interest-earning assets to
average-interest bearing liabilities 125.56% 125.86%
PER SHARE DATA
Dividends $0.17 $0.17
Book value $14.74 $14.79
Tangible book value $14.71 $14.76
SHARE PRICE DATA
Closing price $14.60 $16.10
Diluted earnings multiple(1) 0.99 1.09
Book value multiple(2) 0.99 1.09
COMMON STOCK DATA
Outstanding shares at end of period 3,167,250 3,166,530
Weighted average shares outstanding 3,162,666 3,148,570
Weighted average shares outstanding,
diluted 3,166,620 3,156,646
CAPITAL RATIOS
Total equity to total assets 8.72% 8.87%
CREDIT QUALITY
Net charge-offs to average loans 0.08% 0.13%
Total non-performing loans to total loans 1.52% 1.00%
Total non-performing assets to total assets 1.30% 0.88%
Non-accrual loans to:
total loans 1.10% 0.87%
total assets 0.80% 0.64%
Allowance for loan losses to:
total loans 1.29% 1.16%
non-performing assets 72.12% 97.67%
non-accrual loans 116.66% 133.56%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over 90 days $1,624 $510
Non-accrual loans 4,293 3,385
Other real estate owned and
repossessed assets 1,027 734
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off $361 $521
(Recoveries) (48) (31)
Net charge-offs (recoveries) 313 490
PROVISION FOR LOAN LOSSES (dollars in
thousands) $800 $1,100
ALLOWANCE FOR LOAN LOSS SUMMARY
(dollars in thousands)
Balance at the beginning of period $4,521 $3,911
Provision 800 1,100
Net charge-offs (recoveries) 313 490
Balance at the end of period $5,008 $4,521
(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.
EAGLE FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Unaudited Audited
12/31/2009 12/31/2008
---------- ----------
Assets
Cash and due from banks $7,353 $7,287
Federal funds sold 179 11,052
Securities available for sale, at fair value 101,210 98,919
Loans, net of allowance for loan losses 398,096 385,565
Bank premises and equipment, net 14,778 15,377
Other assets 13,816 9,942
------ -----
Total assets $535,432 $528,142
======== ========
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits $90,575 $81,340
Savings and interest bearing
demand deposits 170,485 154,622
Time deposits 137,047 150,565
------- -------
Total deposits $398,107 $386,527
Federal funds purchased and securities
sold under agreements to repurchase 14,016 14,693
Federal Home Loan Bank advances 62,250 70,000
Trust preferred capital notes 7,217 7,217
Other liabilities 2,198 2,876
Commitments and contingent liabilities - -
--- ---
Total liabilities $483,788 $481,313
-------- --------
Shareholders' Equity
Preferred stock, $10 par value $- $-
Common stock, $2.50 par value 7,999 7,888
Surplus 8,504 7,796
Retained earnings 34,049 32,779
Accumulated other comprehensive income 1,092 (1,634)
----- ------
Total shareholders' equity $51,644 $46,829
------- -------
Total liabilities and
shareholders' equity $535,432 $528,142
======== ========
EAGLE FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Unaudited Unaudited Unaudited Audited
Interest and Dividend Income
Interest and fees
on loans $5,934 $5,972 $23,001 $24,790
Interest on
federal funds sold 1 2 10 45
Interest and dividends on
securities available for
sale:
Taxable interest
income 617 757 2,784 2,766
Interest income
exempt from federal
income taxes 304 271 1,194 1,142
Dividends 113 141 461 691
Interest on deposits
in banks - 1 3 5
--- --- --- ---
Total interest and
dividend income $6,969 $7,144 $27,453 $29,439
------ ------ ------- -------
Interest Expense
Interest on deposits $806 $1,551 $4,040 $6,978
Interest on federal
funds purchased and
securities sold under
agreements to repurchase 98 113 392 482
Interest on
Federal Home Loan
Bank advances 464 670 2,042 2,706
Interest on trust
preferred capital
notes 80 80 319 346
--- --- --- ---
Total interest
expense $1,448 $2,414 $6,793 $10,512
------ ------ ------ -------
Net interest
income $5,521 $4,730 $20,660 $18,927
Provision For Loan
Losses 1,450 1,100 4,350 2,310
----- ----- ----- -----
Net interest
income after
provision for
loan losses $4,071 $3,630 $16,310 $16,617
------ ------ ------- -------
Noninterest Income
Income from fiduciary
activities $174 $211 $818 $911
Service charges on
deposit accounts 522 567 2,053 2,333
Other service
charges and fees 534 473 2,148 2,565
Gain on the sale
of loans - - - 376
(Loss) Gain on the
sale of bank
premises and
equipment (5) - (5) 742
(Loss) on the sale
of repossessed
assets 15 28 (35) (42)
(Loss) on sales of
AFS securities 20 - (419) (2,488)
Other operating
income 29 (26) 66 212
--- --- --- ---
Total noninterest
income $1,289 $1,253 $4,626 $4,609
------ ------ ------ ------
Noninterest Expenses
Salaries and
employee benefits $2,312 $2,122 $9,262 $9,069
Occupancy expenses 134 288 1,069 1,189
Equipment expenses 153 181 666 700
Advertising and
marketing
expenses 85 115 409 406
Stationery and
supplies 94 82 311 326
ATM network fees 20 (18) 104 323
FDIC assessment 216 62 801 197
Provision for
other real estate
owned 198 - 198 -
Other operating
expenses 1,152 913 3,660 3,604
----- --- ----- -----
Total noninterest
expenses $4,364 $3,745 $16,480 $15,814
------ ------ ------- -------
Income before
income taxes $996 $1,138 $4,456 $5,412
Income Tax Expense 204 (577) 1,015 1,357
--- ---- ----- -----
Net income $792 $1,715 $3,441 $4,055
==== ====== ====== ======
Earnings Per Share
Net income per
common share,
basic $0.25 $0.54 $1.09 $1.29
===== ===== ===== =====
Net income per
common share,
diluted $0.25 $0.54 $1.08 $1.29
===== ===== ===== =====
EAGLE FINANCIAL SERVICES, INC.
Average Balances, Income and Expenses, Yields and Rates
(dollars in thousands)
For the Three Months Ended December,
------------------------------------
2009
----
Interest
Average Income/ Average
Assets: Balance Expense Rate
------- ------- ----
Securities:
Taxable 65,116 2,897 4.45%
Tax-Exempt (1) 32,872 1,827 5.56%
------ -----
Total Securities 97,988 4,724 4.82%
Loans:
Taxable 394,194 23,271 5.90%
Tax-Exempt (1) 5,808 410 7.06%
----- ---
Total Loans 400,002 23,681 5.92%
Federal funds sold 3,073 4 0.13%
Interest-bearing deposits in
other banks 177 - 0.00%
--- ---
Total earning assets 501,240 28,408 5.67%
------
Allowance for loan losses (5,222)
Total non-earning assets 34,881
------
Total assets 530,899
=======
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts 66,525 307 0.46%
Money market accounts 61,233 443 0.72%
Savings accounts 36,927 72 0.19%
Time deposits:
$100,000 and more 46,328 755 1.62%
Less than $100,000 90,998 1,621 1.78%
------ -----
Total interest-bearing
deposits 302,011 3,198 1.06%
Federal funds purchased and
securities sold under agreements to
repurchase 15,426 390 5.23%
Federal Home Loan Bank advances 62,250 1,843 2.96%
Trust preferred capital notes 7,217 317 4.40%
----- ---
Total interest-bearing
liabilities 386,904 5,747 1.49%
------- -----
Noninterest-bearing liabilities:
Demand deposits 89,016
Other Liabilities 3,910
-----
Total liabilities 479,830
Shareholders' equity 51,069
------
Total liabilities and
shareholders' equity 530,899
=======
Net interest income 22,661
======
Net interest spread 4.18%
Interest expense as a percent
of average earning assets 1.15%
Net interest margin 4.52%
For the Three Months Ended December,
------------------------------------
2008
----
Interest
Average Income/ Average
Assets: Balance Expense Rate
------- ------- ----
Securities:
Taxable 66,448 3,563 5.36%
Tax-Exempt (1) 29,820 1,629 5.46%
------ -----
Total Securities 96,268 5,192 5.39%
Loans:
Taxable 385,022 23,451 6.09%
Tax-Exempt (1) 5,348 364 6.81%
----- ---
Total Loans 390,370 23,815 6.10%
Federal funds sold 1,623 8 0.49%
Interest-bearing deposits in
other banks 124 4 3.23%
--- ---
Total earning assets 488,385 29,019 5.94%
------
Allowance for loan losses (3,856)
Total non-earning assets 33,380
------
Total assets 517,909
=======
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts 56,762 554 0.98%
Money market accounts 55,341 942 1.70%
Savings accounts 33,855 193 0.57%
Time deposits:
$100,000 and more 61,083 1,881 3.08%
Less than $100,000 82,106 2,582 3.14%
------ -----
Total interest-bearing
deposits 289,147 6,152 2.13%
Federal funds purchased and
securities sold under agreements to
repurchase 17,584 451 2.56%
Federal Home Loan Bank advances 74,076 2,658 3.59%
Trust preferred capital notes 7,217 317 4.39%
----- ---
Total interest-bearing
liabilities 388,024 9,578 2.47%
------- -----
Noninterest-bearing liabilities:
Demand deposits 81,802
Other Liabilities 2,715
-----
Total liabilities 472,541
Shareholders' equity 45,368
------
Total liabilities and
shareholders' equity 517,909
=======
Net interest income 19,441
======
Net interest spread 3.47%
Interest expense as a percent
of average earning assets 1.96%
Net interest margin 3.98%
(1) Income and yields are reported on a tax equivalent basis using a
federal tax rate of 34%.
EAGLE FINANCIAL SERVICES, INC.
Average Balances, Income and Expenses, Yields and Rates
(dollars in thousands)
For the Year Ended December,
2009
----
Interest
Average Income/ Average
Assets: Balance Expense Rate
------- ------- ----
Securities:
Taxable 67,341 3,246 4.82%
Tax-Exempt (1) 32,460 1,809 5.57%
------ -----
Total Securities 99,801 5,055 5.06%
Loans:
Taxable 385,423 22,729 5.90%
Tax-Exempt (1) 5,974 413 6.92%
----- ---
Total Loans 391,397 23,142 5.91%
Federal funds sold 4,937 10 0.21%
Interest-bearing deposits in
other banks 222 3 1.20%
--- ---
Total earning assets 496,357 28,209 5.68%
------
Allowance for loan losses (4,673)
Total non-earning assets 34,649
------
Total assets 526,333
=======
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts 60,338 306 0.51%
Money market accounts 60,001 543 0.90%
Savings accounts 36,160 108 0.30%
Time deposits:
$100,000 and more 51,455 1,941 3.77%
Less than $100,000 94,523 1,142 1.21%
------ -----
Total interest-bearing
deposits 302,477 4,040 1.34%
Federal funds purchased and
securities sold under agreements to
repurchase 15,736 392 2.49%
Federal Home Loan Bank advances 63,709 2,042 3.21%
Trust preferred capital notes 7,217 319 4.42%
----- ---
Total interest-bearing
liabilities 389,139 6,793 1.75%
------- -----
Noninterest-bearing liabilities:
Demand deposits 84,876
Other Liabilities 3,478
-----
Total liabilities 477,492
Shareholders' equity 48,841
------
Total liabilities and
shareholders' equity 526,333
=======
Net interest income 21,416
======
Net interest spread 3.93%
Interest expense as a percent
of average earning assets 1.37%
Net interest margin 4.31%
For the Year Ended December,
----------------------------
2008
----
Interest
Average Income/ Average
Assets: Balance Expense Rate
------- ------- ----
Securities:
Taxable 65,099 3,457 5.31%
Tax-Exempt (1) 30,566 1,731 5.67%
------ -----
Total Securities 95,665 5,188 5.42%
Loans:
Taxable 385,214 24,575 6.38%
Tax-Exempt (1) 4,651 325 6.99%
----- ---
Total Loans 389,865 24,900 6.39%
Federal funds sold 2,195 45 2.05%
Interest-bearing deposits in
other banks 198 5 2.53%
--- ---
Total earning assets 487,923 30,138 6.18%
------
Allowance for loan losses (3,466)
Total non-earning assets 31,714
------
Total assets 516,171
=======
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts 60,774 680 1.12%
Money market accounts 52,464 975 1.86%
Savings accounts 33,748 214 0.63%
Time deposits:
$100,000 and more 68,732 2,451 3.57%
Less than $100,000 74,445 2,658 3.57%
------ -----
Total interest-bearing
deposits 290,163 6,978 2.40%
Federal funds purchased and
securities sold under agreements to
repurchase 17,119 482 2.82%
Federal Home Loan Bank advances 71,762 2,706 3.77%
Trust preferred capital notes 7,217 346 4.79%
----- ---
Total interest-bearing
liabilities 386,261 10,512 2.72%
------- ------
Noninterest-bearing
liabilities:
Demand deposits 81,033
Other Liabilities 2,823
-----
Total liabilities 470,117
Shareholders' equity 46,054
------
Total liabilities and
shareholders' equity 516,171
=======
Net interest income 19,626
======
Net interest spread 3.46%
Interest expense as a percent
of average earning assets 2.15%
Net interest margin 4.02%
(1) Income and yields are reported on a tax equivalent basis using a
federal tax rate of 34%.
EAGLE FINANCIAL SERVICES, INC.
Reconciliation of Tax-Equivalent Net Interest Income
(dollars in thousands)
Three Months Ended
------------------
12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
---------- --------- --------- --------- ----------
GAAP Financial
Measurements:
Interest
Income -
Loans $5,934 $5,765 $5,698 $5,604 $5,972
Interest
Income -
Securities
and Other
Interest-
Earnings
Assets 1,035 1,092 1,170 1,155 1,172
Interest
Expense -
Deposits 806 826 1,080 1,328 1,551
Interest
Expense -
Other
Borrowings 642 668 704 739 863
--- --- --- --- ---
Total Net
Interest Income $5,521 $5,363 $5,084 $4,692 $4,730
Non-GAAP
Financial
Measurements:
Add: Tax
Benefit on
Tax-Exempt
Interest
Income -
Loans $35 $37 $33 $35 $31
Add: Tax
Benefit on
Tax-Exempt
Interest
Income -
Securities 156 158 154 147 140
--- --- --- --- ---
Total Tax
Benefit on
Tax-Exempt
Interest
Income $191 $195 $187 $182 $171
---- ---- ---- ---- ----
Tax-
Equivalent Net
Interest Income $5,712 $5,558 $5,271 $4,874 $4,901
====== ====== ====== ====== ======
SOURCE Eagle Financial Services, Inc.
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