Eagle Financial Services, Inc. Announces 2010 Third Quarter Financial Results
BERRYVILLE, Va., Oct. 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 third quarter 2010 financial results. The Company's common stock is listed for trading on the Over-the-Counter (OTC) Bulletin Board under the ticker symbol EFSI.
Third Quarter 2010 Highlights:
- Dividend of $0.18 per share, an increase of 5.9%
- Net interest margin of 4.31%
- Allowance for loan losses at 1.90% of total loans
- Retail deposit growth of $18.6 million since December 31, 2009
- Total equity to assets of 9.82%
- Net Income $81,000
John R. Milleson, President and CEO, stated, "Our third quarter results fell short of expectations and well below the Company's typical standards. The Bank's credit quality suffered during the third quarter primarily due to declining real estate values associated with a few large loans and the continuance of the economic malaise. Accordingly, the Bank increased its allowance for loan losses by $2.9 million for the third quarter. Fortunately, strong earnings allowed us to absorb this substantial provision. We will continue to diligently monitor our loan portfolio in an attempt to minimize losses associated with existing and potential credit quality issues.
Because we are confident with our ability to sustain core earnings and have no restrictions associated with government bailout programs, our Board voted to increase the dividend for the quarter to $0.18 per share, marking the 25th consecutive year of a dividend increase."
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended September 30, 2010 was $5.6 million compared to $5.5 million for the quarter ended June 30, 2010. Average earning assets have increased $5.9 million since June 30, 2010 while their yield has decreased 11 basis points since June 30, 2010.
Total loan interest income was $5.9 million for the quarters ended September and June 30, 2010. Average loans increased $4.8 million since June 30, 2010. Interest income from the investment portfolio was $1.1 million for the quarters ended September and June 30, 2010. Average investments increased $5.8 million since June 30, 2010.
Total interest expense for the three months ended September and June 30, 2010 was $1.4 million. The average cost of interest bearing liabilities decreased four basis points from the quarter ended June 30, 2010 while the average balance of interest bearing liabilities increased $3.0 million from the quarter ended June 30, 2010.
The net interest margin decreased from 4.38% for the quarter ended June 30, 2010 to 4.31% for the quarter ended September 30, 2010. The decrease in the net interest margin was mostly attributable to the decline in asset yields.
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
Non performing assets increased from $9.5 million or 1.70% of total assets at June 30, 2010 to $12.2 million or 2.18% of total assets at September 30, 2010. This increase was driven mostly from the increase in nonaccrual loans.
During the third quarter of 2010, the Bank placed 12 loans totaling $5.4 million on non accrual status. A large portion of the $5.4 million was attributed to one loan of $2.2 million on a commercial office building located in Winchester, VA. Management evaluates the financial condition of these borrowers and the value of any collateral on these loans. The results of these evaluations are used to estimate the amount of losses which may be realized on the disposition of these nonaccrual loans. The majority of the loans placed on nonaccrual status during the third quarter are secured by real estate has allocated specific allowances totaling $1.7 million.
Two real estate assets valued at $241,000 were foreclosed upon during the third quarter of 2010 while no sales of foreclosed property were realized during the same period. Loans greater than 90 days past due decreased from $1.4 million at June 30, 2010 to $208,000 at September 30, 2010.
The Company realized $1.6 million in net charge-offs for the quarter ended September 30, 2010 versus $499,000 for the three months ended June 30, 2010. The increased amount of loan charge offs related primarily to two partial charge offs, together totaling $1.2 million, on loans for large residential land development projects. One project is located in Woodstock, VA and the other is in Winchester, VA.
The ratio of allowance for loan losses to total loans was 1.90% at September 30, 2010 and 1.59% at June 30, 2010. The ratio of allowance for loan losses to total nonaccrual loans was 79.35% at September 30, 2010 and 105.45% at June 30, 2010. Provisions for loan losses were $2.9 million for the three months ended September 30, 2010, compared to $750,000 for the quarter ended June 30, 2010. The amount of provision for loan losses during each quarter reflects the results of the Bank's analysis used to determine the adequacy of the allowance for loan losses. The increased provision for the quarter resulted from both the increase in specific allocations related to the quarter's additional nonaccrual loans and to an adjustment to our method of analysis of the allowance for loan losses with respect to the Bank's loss history. The period of loss history consider for the analysis was shortened in order to better reflect the level of losses that the Bank is currently realizing.
Asset quality remains a primary concern of the Company. Necessary resources continue to be devoted to the ongoing review of the loan portfolio and the workouts of problem assets to minimize any losses to the Company. Management will continue to monitor delinquencies, risk rating changes, charge-offs, market trends and other indicators of risk in the Company's portfolio, particularly those tied to residential and commercial real estate, and adjust the allowance for loan losses accordingly.
Non Interest Income and Non Interest Expense
Noninterest income was $1.5 million for the quarter ended September 30, 2010 and $1.4 million for the same period ended June 30, 2010. Income from fiduciary activities increased $26,000 from the three month period ended June 30, 2010. Most of this increase is attributable to an estate that had been settled during the third quarter. Other service charges and fees increased 6.6% or $49,000 from $745,000 for the quarter ended June 30, 2010. This increase resulted mostly from the increase in service release premiums of $61,000.
Noninterest expense was $4.3 million for the quarter ended September 30, 2010 and $4.1 million for the quarter ended June 30, 2010. The increase is attributable to increases in various items including expenses related to other real estate owned, marketing and audit fees. The Company continues to diligently manage and monitor its other operating expenses.
Total Consolidated Assets
Total consolidated assets of the Company at September 30, 2010 were $559.0 million, and were relatively unchanged from total consolidated assets at June 30, 2010. Total loans increased $2.2 million from $410.7 million at June 30, 2010 to $412.9 million at September 30, 2010. 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 permitted in the loan portfolio.
Deposits and Other Borrowings
Total deposits, which include brokered deposits, increased $5.2 million to $426.7 million at September 30, 2010 from $421.5 million at June 30, 2010. Most of this growth was realized in the Bank's lower cost transaction accounts. Brokered deposits were $19.9 million at September 30, 2010 and June 30, 2010.
Securities sold under agreement to repurchase were $14.9 million at September 30, 2010 and $15.0 million at June 30, 2010. Borrowings with the Federal Home Loan Bank of Atlanta were $52.3 million at September, 2010 and $57.3 million at June 30, 2010.
Equity
Shareholders' equity at September 30, 2010 was $54.9 million and $54.4 million at June 30, 2010. The book value of the Company at September 30, 2010 was $16.86 per common share. Total common shares outstanding were 3,254,204 at September 30, 2010. On October 20, 2010, the board of directors declared a $0.18 per common share cash dividend for shareholders of record as of November 1, 2010 and payable on November 15, 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, 2009, and other filings with the Securities and Exchange Commission.
EAGLE FINANCIAL SERVICES, INC. |
||||||||||
For the Three Months Ended |
||||||||||
3Q10 |
2Q10 |
1Q10 |
4Q09 |
3Q09 |
||||||
Net Income (dollars in thousands) |
$ 81 |
$ 1,484 |
$ 1,578 |
$ 792 |
$ 790 |
|||||
Earnings per share, basic |
$ 0.03 |
$ 0.46 |
$ 0.49 |
$ 0.25 |
$ 0.25 |
|||||
Earnings per share, diluted |
$ 0.02 |
$ 0.46 |
$ 0.49 |
$ 0.25 |
$ 0.25 |
|||||
Return on average total assets |
0.06% |
1.07% |
1.19% |
0.59% |
0.60% |
|||||
Return on average total equity |
0.59% |
11.13% |
12.17% |
6.15% |
6.33% |
|||||
Dividend payout ratio |
566.67% |
36.96% |
34.69% |
68.00% |
68.00% |
|||||
Fee revenue as a percent of total revenue |
21.01% |
20.88% |
19.93% |
18.06% |
11.35% |
|||||
Net interest margin(1) |
4.31% |
4.38% |
4.48% |
4.52% |
4.51% |
|||||
Yield on average earning assets |
5.34% |
5.45% |
5.61% |
5.67% |
5.73% |
|||||
Yield on average interest-bearing liabilities |
1.35% |
1.39% |
1.44% |
1.49% |
1.56% |
|||||
Net interest spread |
3.99% |
4.06% |
4.17% |
4.18% |
4.17% |
|||||
Tax equivalent adjustment to net interest income (dollars in thousands) |
$ 198 |
$ 202 |
$ 204 |
$ 191 |
$ 195 |
|||||
Non-interest income to average assets |
1.04% |
1.00% |
1.02% |
0.96% |
0.67% |
|||||
Non-interest expense to average assets |
3.03% |
2.97% |
3.05% |
3.26% |
3.20% |
|||||
Efficiency ratio(2) |
59.22% |
57.56% |
58.01% |
62.43% |
60.82% |
|||||
(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%. See the table below for the quarterly tax equivalent net interest income and the 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 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%. See the table below for the quarterly tax equivalent net interest income and the 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. |
||||||||||
EAGLE FINANCIAL SERVICES, INC. |
|||||||||||
3Q10 |
2Q10 |
1Q10 |
4Q09 |
3Q09 |
|||||||
BALANCE SHEET RATIOS |
|||||||||||
Loans to deposits |
96.78% |
97.45% |
97.56% |
101.50% |
104.31% |
||||||
Average interest-earning assets to |
|||||||||||
average-interest bearing liabilities |
130.60% |
130.10% |
128.13% |
129.55% |
136.59% |
||||||
PER SHARE DATA |
|||||||||||
Dividends |
$ 0.18 |
$ 0.17 |
$ 0.17 |
$ 0.17 |
$ 0.17 |
||||||
Book value |
$ 16.86 |
$ 16.85 |
$ 16.42 |
$ 16.14 |
$ 15.88 |
||||||
Tangible book value |
$ 16.86 |
$ 16.84 |
$ 16.40 |
$ 16.13 |
$ 15.88 |
||||||
SHARE PRICE DATA |
|||||||||||
Closing price |
$ 17.00 |
$ 16.00 |
$ 18.00 |
$ 15.75 |
$ 15.35 |
||||||
Diluted earnings multiple(1) |
1.01 |
0.96 |
1.10 |
0.98 |
0.97 |
||||||
Book value multiple(2) |
1.10 |
0.95 |
1.10 |
0.98 |
0.97 |
||||||
COMMON STOCK DATA |
|||||||||||
Outstanding shares at end of period |
3,254,204 |
3,226,923 |
3,231,964 |
3,199,636 |
3,190,304 |
||||||
Weighted average shares outstanding |
3,249,236 |
3,236,763 |
3,227,129 |
3,194,970 |
3,185,806 |
||||||
Weighted average shares outstanding, diluted |
3,259,231 |
3,245,229 |
3,232,700 |
3,202,595 |
3,193,758 |
||||||
CAPITAL RATIOS |
|||||||||||
Total equity to total assets |
9.82% |
9.73% |
9.65% |
9.65% |
9.72% |
||||||
CREDIT QUALITY |
|||||||||||
Net charge-offs to average loans |
1.51% |
0.49% |
0.23% |
0.37% |
0.14% |
||||||
Total non-performing loans to total loans |
2.44% |
1.84% |
1.84% |
1.27% |
0.34% |
||||||
Total non-performing assets to total assets |
2.18% |
1.70% |
1.64% |
1.48% |
0.81% |
||||||
Non-accrual loans to: |
|||||||||||
total loans |
2.39% |
1.51% |
1.84% |
1.26% |
0.27% |
||||||
total assets |
1.77% |
1.11% |
1.35% |
0.95% |
0.20% |
||||||
Allowance for loan losses to: |
|||||||||||
total loans |
1.90% |
1.59% |
1.56% |
1.48% |
1.25% |
||||||
non-performing assets |
64.20% |
69.04% |
69.85% |
75.46% |
116.68% |
||||||
non-accrual loans |
79.35% |
105.45% |
84.62% |
117.08% |
458.66% |
||||||
NON-PERFORMING ASSETS: |
|||||||||||
(dollars in thousands) |
|||||||||||
Loans delinquent over 90 days |
$ 208 |
$ 1,366 |
$ 2 |
$ 13 |
$ 284 |
||||||
Non-accrual loans |
9,870 |
6,204 |
7,434 |
5,099 |
1,067 |
||||||
Other real estate owned and repossessed assets |
2,122 |
1,906 |
1,571 |
2,799 |
2,845 |
||||||
NET LOAN CHARGE-OFFS (RECOVERIES): |
|||||||||||
(dollars in thousands) |
|||||||||||
Loans charged off |
$ 1,618 |
$ 531 |
$ 281 |
$ 448 |
$ 617 |
||||||
(Recoveries) |
(58) |
(32) |
(52) |
(72) |
(79) |
||||||
Net charge-offs (recoveries) |
1,560 |
499 |
229 |
376 |
537 |
||||||
PROVISION FOR LOAN LOSSES (dollars in thousands) |
$ 2,850 |
$ 750 |
$ 550 |
$ 1,450 |
$ 1,050 |
||||||
ALLOWANCE FOR LOAN LOSS SUMMARY |
|||||||||||
(dollars in thousands) |
|||||||||||
Balance at the beginning of period |
$ 6,542 |
$ 6,291 |
$ 5,970 |
$ 4,896 |
$ 4,383 |
||||||
Provision |
2,850 |
750 |
550 |
1,450 |
1,050 |
||||||
Net charge-offs (recoveries) |
1,560 |
499 |
229 |
376 |
537 |
||||||
Balance at the end of period |
$ 7,832 |
$ 6,542 |
$ 6,291 |
$ 5,970 |
$ 4,896 |
||||||
(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. |
||||||||||
Unaudited |
Unaudited |
Unaudited |
Audited |
Unaudited |
||||||
9/30/2010 |
6/30/2010 |
3/31/2010 |
12/31/2009 |
9/30/2009 |
||||||
Assets |
||||||||||
Cash and due from banks |
$ 12,439 |
$ 18,951 |
$ 24,385 |
$ 7,354 |
$ 8,625 |
|||||
Federal funds sold |
- |
- |
- |
179 |
- |
|||||
Securities available for sale, at fair value |
112,175 |
107,104 |
100,148 |
101,210 |
97,882 |
|||||
Loans, net of allowance for loan losses |
405,075 |
404,177 |
398,134 |
398,096 |
387,418 |
|||||
Bank premises and equipment, net |
15,881 |
15,591 |
14,984 |
14,778 |
14,980 |
|||||
Other assets |
13,402 |
13,059 |
11,904 |
13,768 |
12,180 |
|||||
Total assets |
$ 558,972 |
$ 558,882 |
$ 549,555 |
$ 535,385 |
$ 521,085 |
|||||
Liabilities and Shareholders' Equity |
||||||||||
Liabilities |
||||||||||
Deposits: |
||||||||||
Noninterest bearing demand deposits |
$ 97,409 |
$ 94,354 |
$ 91,477 |
$ 90,575 |
$ 87,105 |
|||||
Savings and interest bearing demand deposits |
177,798 |
177,999 |
171,317 |
170,485 |
159,928 |
|||||
Time deposits |
151,456 |
149,098 |
151,765 |
137,047 |
128,565 |
|||||
Total deposits |
$ 426,663 |
$ 421,451 |
$ 414,559 |
$ 398,107 |
$ 375,598 |
|||||
Federal funds purchased and securities |
||||||||||
sold under agreements to repurchase |
14,920 |
14,987 |
14,628 |
14,016 |
21,807 |
|||||
Federal Home Loan Bank advances |
52,250 |
57,250 |
57,250 |
62,250 |
62,250 |
|||||
Trust preferred capital notes |
7,217 |
7,217 |
7,217 |
7,217 |
7,217 |
|||||
Other liabilities |
3,047 |
3,616 |
2,847 |
2,152 |
3,548 |
|||||
Commitments and contingent liabilities |
- |
- |
- |
- |
- |
|||||
Total liabilities |
$ 504,097 |
$ 504,521 |
$ 496,501 |
$ 483,742 |
$ 470,420 |
|||||
Shareholders' Equity |
||||||||||
Preferred stock, $10 par value |
$ - |
$ - |
$ - |
$ - |
$ - |
|||||
Common stock, $2.50 par value |
8,090 |
8,067 |
8,045 |
7,999 |
7,976 |
|||||
Surplus |
8,930 |
8,733 |
8,559 |
8,504 |
8,307 |
|||||
Retained earnings |
35,544 |
36,014 |
35,079 |
34,048 |
33,804 |
|||||
Accumulated other comprehensive income |
2,311 |
1,547 |
1,371 |
1,092 |
578 |
|||||
Total shareholders' equity |
$ 54,875 |
$ 54,361 |
$ 53,054 |
$ 51,643 |
$ 50,665 |
|||||
Total liabilities and shareholders' equity |
$ 558,972 |
$ 558,882 |
$ 549,555 |
$ 535,385 |
$ 521,085 |
|||||
EAGLE FINANCIAL SERVICES, INC. |
||||||||||
For the Three Months Ended, |
||||||||||
9/30/2010 |
6/30/2010 |
3/31/2010 |
12/31/2009 |
9/30/2009 |
||||||
Interest and Dividend Income |
||||||||||
Interest and fees on loans |
$ 5,875 |
$ 5,873 |
$ 5,807 |
$ 5,934 |
$ 5,765 |
|||||
Interest on federal funds sold |
- |
8 |
3 |
1 |
2 |
|||||
Interest and dividends on securities available for sale: |
||||||||||
Taxable interest income |
753 |
621 |
595 |
617 |
666 |
|||||
Interest income exempt from federal income taxes |
320 |
324 |
328 |
304 |
307 |
|||||
Dividends |
- |
108 |
111 |
113 |
116 |
|||||
Interest on deposits in banks |
1 |
- |
- |
- |
1 |
|||||
Total interest and dividend income |
$ 6,949 |
$ 6,934 |
$ 6,844 |
$ 6,969 |
$ 6,857 |
|||||
Interest Expense |
||||||||||
Interest on deposits |
$ 741 |
$ 765 |
$ 784 |
$ 806 |
$ 826 |
|||||
Interest on federal funds purchased and securities |
||||||||||
sold under agreements to repurchase |
97 |
96 |
98 |
98 |
102 |
|||||
Interest on Federal Home Loan Bank advances |
461 |
460 |
455 |
464 |
484 |
|||||
Interest on trust preferred capital notes |
80 |
79 |
77 |
80 |
82 |
|||||
Total interest expense |
$ 1,379 |
$ 1,400 |
$ 1,414 |
$ 1,448 |
$ 1,494 |
|||||
Net interest income |
$ 5,570 |
$ 5,534 |
$ 5,430 |
$ 5,521 |
$ 5,363 |
|||||
Provision For Loan Losses |
2,850 |
750 |
550 |
1,450 |
1,050 |
|||||
Net interest income after provision for loan losses |
$ 2,720 |
$ 4,784 |
$ 4,880 |
$ 4,071 |
$ 4,313 |
|||||
Noninterest Income |
||||||||||
Income from fiduciary activities |
$ 248 |
$ 222 |
$ 240 |
$ 174 |
$ 200 |
|||||
Service charges on deposit accounts |
438 |
477 |
446 |
522 |
537 |
|||||
Other service charges and fees |
794 |
745 |
668 |
534 |
634 |
|||||
(Loss) Gain on the sale of bank premises and equipment |
- |
- |
- |
(5) |
- |
|||||
(Loss) on the sale of repossessed assets |
3 |
(123) |
(126) |
15 |
(50) |
|||||
Gain (Loss) on sales of AFS securities |
- |
- |
98 |
20 |
(439) |
|||||
Other operating income |
(8) |
62 |
38 |
29 |
(4) |
|||||
Total noninterest income |
$ 1,475 |
$ 1,383 |
$ 1,364 |
$ 1,289 |
$ 878 |
|||||
Noninterest Expenses |
||||||||||
Salaries and employee benefits |
$ 2,334 |
$ 2,344 |
$ 2,189 |
$ 2,312 |
$ 2,493 |
|||||
Occupancy expenses |
260 |
281 |
292 |
264 |
291 |
|||||
Equipment expenses |
172 |
144 |
152 |
153 |
176 |
|||||
Advertising and marketing expenses |
138 |
95 |
105 |
85 |
142 |
|||||
Stationery and supplies |
69 |
47 |
65 |
94 |
52 |
|||||
ATM network fees |
194 |
265 |
157 |
95 |
20 |
|||||
FDIC assessment |
179 |
178 |
314 |
216 |
204 |
|||||
Other operating expenses |
943 |
751 |
785 |
1,145 |
803 |
|||||
Total noninterest expenses |
$ 4,289 |
$ 4,105 |
$ 4,059 |
$ 4,364 |
$ 4,181 |
|||||
Income before income taxes |
$ (94) |
$ 2,062 |
$ 2,185 |
$ 996 |
$ 1,010 |
|||||
Income Tax Expense |
(175) |
578 |
607 |
204 |
220 |
|||||
Net income |
$ 81 |
$ 1,484 |
$ 1,578 |
$ 792 |
$ 790 |
|||||
Earnings Per Share |
||||||||||
Net income per common share, basic |
$ 0.03 |
$ 0.46 |
$ 0.49 |
$ 0.25 |
$ 0.25 |
|||||
Net income per common share, diluted |
$ 0.02 |
$ 0.46 |
$ 0.49 |
$ 0.25 |
$ 0.25 |
|||||
EAGLE FINANCIAL SERVICES, INC. |
||||||||||
For the Three Months Ended September, |
||||||||||
2010 |
2009 |
|||||||||
Interest |
Interest |
|||||||||
Average |
Income/ |
Average |
Average |
Income/ |
Average |
|||||
Assets: |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||
Securities: |
||||||||||
Taxable |
75,933 |
2,971 |
3.91% |
65,095 |
3,103 |
4.77% |
||||
Tax-Exempt(1) |
34,188 |
1,924 |
5.63% |
33,144 |
1,841 |
5.55% |
||||
Total Securities |
110,121 |
4,895 |
4.45% |
98,239 |
4,944 |
5.03% |
||||
Loans: |
||||||||||
Taxable |
405,430 |
23,056 |
5.69% |
383,465 |
22,589 |
5.89% |
||||
Tax-Exempt(1) |
5,439 |
383 |
7.03% |
6,090 |
431 |
7.08% |
||||
Total Loans |
410,869 |
23,439 |
5.73% |
389,555 |
23,020 |
5.91% |
||||
Federal funds sold |
170 |
- |
0.00% |
496 |
7 |
1.41% |
||||
Interest-bearing deposits in other banks |
9,710 |
20 |
0.20% |
185 |
2 |
1.08% |
||||
Total earning assets |
530,870 |
28,354 |
5.34% |
488,475 |
27,973 |
5.73% |
||||
Allowance for loan losses |
(6,736) |
(4,499) |
||||||||
Total non-earning assets |
37,020 |
34,558 |
||||||||
Total assets |
561,154 |
518,534 |
||||||||
Liabilities and Shareholders' Equity: |
||||||||||
Interest-bearing deposits: |
||||||||||
NOW accounts |
68,847 |
243 |
0.35% |
59,995 |
246 |
0.41% |
||||
Money market accounts |
67,903 |
387 |
0.57% |
58,952 |
428 |
0.73% |
||||
Savings accounts |
40,467 |
66 |
0.16% |
37,347 |
78 |
0.21% |
||||
Time deposits: |
||||||||||
$100,000 and more |
62,489 |
758 |
1.21% |
48,606 |
813 |
1.67% |
||||
Less than $100,000 |
88,291 |
1,485 |
1.68% |
88,175 |
1,710 |
1.94% |
||||
Total interest-bearing deposits |
327,997 |
2,939 |
0.90% |
293,075 |
3,275 |
1.12% |
||||
Federal funds purchased and securities |
||||||||||
sold under agreements to repurchase |
14,933 |
385 |
2.58% |
17,146 |
402 |
2.34% |
||||
Federal Home Loan Bank advances |
56,326 |
1,829 |
3.25% |
62,141 |
1,922 |
3.09% |
||||
Trust preferred capital notes |
7,217 |
317 |
4.40% |
7,217 |
155 |
2.15% |
||||
Total interest-bearing liabilities |
406,473 |
5,470 |
1.35% |
379,579 |
5,754 |
1.52% |
||||
Noninterest-bearing liabilities: |
||||||||||
Demand deposits |
95,627 |
86,002 |
||||||||
Other Liabilities |
3,804 |
3,539 |
||||||||
Total liabilities |
505,904 |
469,120 |
||||||||
Shareholders' equity |
55,250 |
49,414 |
||||||||
Total liabilities and shareholders' equity |
561,154 |
518,534 |
||||||||
Net interest income |
22,884 |
22,219 |
||||||||
Net interest spread |
3.99% |
4.21% |
||||||||
Interest expense as a percent of |
||||||||||
average earning assets |
1.03% |
1.18% |
||||||||
Net interest margin |
4.31% |
4.55% |
||||||||
(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 |
||||||||||
For the Three Months Ended June, |
||||||||||
2010 |
2009 |
|||||||||
Interest |
Interest |
|||||||||
Average |
Income/ |
Average |
Average |
Income/ |
Average |
|||||
Assets: |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||
Securities: |
||||||||||
Taxable |
70,278 |
2,924 |
4.16% |
71,617 |
3,478 |
4.86% |
||||
Tax-Exempt(1) |
34,022 |
1,969 |
5.79% |
32,614 |
1,814 |
5.56% |
||||
Total Securities |
104,299 |
4,893 |
4.69% |
104,231 |
5,292 |
5.08% |
||||
Loans: |
||||||||||
Taxable |
400,245 |
23,287 |
5.82% |
380,692 |
22,595 |
5.94% |
||||
Tax-Exempt(1) |
5,815 |
409 |
7.03% |
6,221 |
393 |
6.32% |
||||
Total Loans |
406,060 |
23,696 |
5.84% |
386,913 |
22,988 |
5.94% |
||||
Federal funds sold |
- |
- |
0.00% |
7,647 |
12 |
0.16% |
||||
Interest-bearing deposits in other banks |
14,588 |
20 |
0.14% |
215 |
8 |
3.72% |
||||
Total earning assets |
524,947 |
28,609 |
5.45% |
499,006 |
28,300 |
5.67% |
||||
Allowance for loan losses |
(6,037) |
(4,359) |
||||||||
Total non-earning assets |
35,541 |
35,402 |
||||||||
Total assets |
554,451 |
530,049 |
||||||||
Liabilities and Shareholders' Equity: |
||||||||||
Interest-bearing deposits: |
||||||||||
NOW accounts |
68,958 |
310 |
0.45% |
57,173 |
287 |
0.50% |
||||
Money market accounts |
65,287 |
429 |
0.66% |
60,352 |
557 |
0.92% |
||||
Savings accounts |
40,964 |
80 |
0.20% |
36,734 |
124 |
0.34% |
||||
Time deposits: |
||||||||||
$100,000 and more |
60,487 |
732 |
1.21% |
53,221 |
1,109 |
2.08% |
||||
Less than $100,000 |
88,341 |
1,501 |
1.71% |
102,638 |
2,257 |
2.20% |
||||
Total interest-bearing deposits |
324,037 |
3,068 |
0.95% |
310,118 |
4,334 |
1.40% |
||||
Federal funds purchased and securities |
||||||||||
sold under agreements to repurchase |
14,981 |
370 |
2.47% |
14,685 |
382 |
2.60% |
||||
Federal Home Loan Bank advances |
57,250 |
1,846 |
3.22% |
62,250 |
2,125 |
3.41% |
||||
Trust preferred capital notes |
7,217 |
317 |
4.39% |
7,217 |
317 |
4.39% |
||||
Total interest-bearing liabilities |
403,485 |
5,601 |
1.39% |
394,270 |
7,158 |
1.82% |
||||
Noninterest-bearing liabilities: |
||||||||||
Demand deposits |
94,304 |
84,477 |
||||||||
Other Liabilities |
3,203 |
3,230 |
||||||||
Total liabilities |
500,992 |
481,978 |
||||||||
Shareholders' equity |
53,459 |
48,072 |
||||||||
Total liabilities and shareholders' equity |
554,451 |
530,049 |
||||||||
Net interest income |
23,008 |
21,142 |
||||||||
Net interest spread |
4.06% |
3.85% |
||||||||
Interest expense as a percent of |
||||||||||
average earning assets |
1.07% |
4.30% |
||||||||
Net interest margin |
4.38% |
4.24% |
||||||||
(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 |
||||||
9/30/2010 |
6/30/2010 |
3/31/2010 |
12/31/2009 |
9/30/2009 |
||
GAAP Financial Measurements: |
||||||
Interest Income - Loans |
$ 5,875 |
$ 5,873 |
$ 5,807 |
$ 5,934 |
$ 5,765 |
|
Interest Income - Securities and Other Interest-Earnings Assets |
1,074 |
1,061 |
1,037 |
1,035 |
1,092 |
|
Interest Expense - Deposits |
741 |
765 |
784 |
806 |
826 |
|
Interest Expense - Other Borrowings |
638 |
635 |
630 |
642 |
668 |
|
Total Net Interest Income |
$ 5,570 |
$ 5,534 |
$ 5,430 |
$ 5,521 |
$ 5,363 |
|
Non-GAAP Financial Measurements: |
||||||
Add: Tax Benefit on Tax-Exempt Interest Income - Loans |
$ 33 |
$ 35 |
$ 35 |
$ 35 |
$ 37 |
|
Add: Tax Benefit on Tax-Exempt Interest Income - Securities |
165 |
167 |
169 |
156 |
158 |
|
Total Tax Benefit on Tax-Exempt Interest Income |
$ 198 |
$ 202 |
$ 204 |
$ 191 |
$ 195 |
|
Tax-Equivalent Net Interest Income |
$ 5,768 |
$ 5,736 |
$ 5,634 |
$ 5,712 |
$ 5,558 |
|
SOURCE Eagle Financial Services, Inc.
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