BERRYVILLE, Va., July 21 /PRNewswire-FirstCall/ -- Eagle Financial Services, Inc. (OTC:EFSI) (BULLETIN BOARD: EFSI) , the holding company for Bank of Clarke County, whose divisions include Eagle Investment Group, announces second quarter 2009 financial results and a quarterly dividend. The Company's common stock is listed for trading on the Over-the-Counter (OTC) Bulletin Board under the ticker symbol EFSI. Second Quarter 2009 Financial Results: -- Net income of $904,000 -- Diluted earnings per share $0.28 -- Net interest margin of 4.24% -- Allowance for loan losses at 1.13% of total loans -- Retail deposit growth of $14.8 million since December 31, 2008 -- Total equity to assets of 9.30% -- Dividend of $0.17 per share John R. Milleson, President and CEO, stated "These are still difficult times for Eagle Financial Services, Inc., the industry and our economy in general, but there are some signs of recovery, particularly in larger financial institutions and the housing market. I believe that 2009 will continue to present challenges, but the Company is determined to be even stronger after the recession than it had been before. The Bank has been in business for 128 years and it intends to continue to operate in a safe and sound manner for the benefit of its shareholders, its employees and the communities in which it serves." Net Interest Income and Net Interest Margin Net interest income for the quarter ended June 30, 2009 was $5.1 million which represented an increase of 4.7% when compared to $4.9 million for the same period in 2008. Although average earning assets increased $10.0 million since June 30, 2008, the increase in net interest income resulted mostly from the decline in the Company's funding costs. Total loan interest income was $5.7 million for the quarter ended June 30, 2009, reflecting a decrease of $496,000 from the quarter ended June 30, 2008. Average loans decreased $1.2 million since June 30, 2008. Interest income from the investment portfolio was $1.2 million for the quarters ended June 30, 2009 and 2008. Average investments increased $5.2 million since June 30, 2008. Total interest expense for the three months ended June 30, 2009 decreased $761,000 when compared to the three months ended June 30, 2008. The average cost of interest bearing liabilities decreased 83 basis points from the quarter ended June 30, 2008 to the same period in 2009. The average balance of interest bearing liabilities increased $9.4 million from the quarter ended June 30, 2008 to the same period in 2009. The net interest margin increased from 4.12% for the quarter ended June 30, 2008 to 4.24% for the quarter ended June 30, 2009. The increase in the net interest margin was mostly attributable to the decreased 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 $1.1 million for the three months ended June 30, 2009, compared to $300,000 for the quarter ended June 30, 2008. Although the Company experienced a decrease in total loans since the December 31, 2008, given the level of problem loans, continued uncertainty in the economy, and the ongoing nationwide credit crisis, the Company deemed it prudent to increase its allowance for loan losses. Non performing assets increased from $2.3 million or .44% of total assets at June 30, 2008 to $4.3 million or .82% of total assets at June 30, 2009. This rise was a result of the increase in both non accrual loans and other real estate owned. During the second quarter of 2009, the Bank foreclosed upon real estate assets valued at $2.2 million and sold three pieces of other real estate owned recorded at $677,000. Loans greater than 90 days past due decreased from $1.3 million at June 30, 2008 to $50,000 at June 30, 2009. The Company realized $1.7 million in net charge-offs for the quarter ended June 30, 2009 versus $272,000 for the same period in 2008. 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 Company believes that the allowance for loan losses will be maintained at a level adequate to mitigate any negative impact resulting from such increases. On July 17, 2009, the Company sold its investment in CIT Group, Inc. The Company held two bonds with a book value of $1.0 million and a fair market value of $700,000 at June 30, 2009. The Company will settle on the sale of the two bonds on July 21, 2009 and realize a loss in the amount of $486,000. Non Interest Income and Non Interest Expense Noninterest income was $1.3 million and $2.5 million for the quarters ended June 30, 2009 and 2008, respectively. The change in noninterest income reflects a decrease of $1.2 million or 49.2%. For the quarter ended June 30, 2008, the Company had realized a $742,000 gain on the sale of a branch building. Much of the remaining decrease resulted from the decline in commissions earned from sales of non-deposit investments. Noninterest expense was $4.1 million for the quarters ended June 30, 2009 and 2008. Despite an increase in FDIC insurance premiums of $194,000 for the quarter ended June 30, 2009 versus the same period in 2008, the Company has diligently managed and monitored its other operating expenses. Total Consolidated Assets Total consolidated assets of the Company at June 30, 2009 were $522.6 million, which represents a decrease of $5.5 million or 1.1% from total assets of $528.1 million at December 31, 2008. Total loans decreased $503,000 from $390.1 million at December 31, 2008 to $389.6 million at June 30, 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 permitted in the loan portfolio. Deposits and Other Borrowings Total deposits, which include brokered deposits, decreased $5.3 million to $381.2 million at June 30, 2009 from $386.5 million at December 31, 2008. Brokered deposits were $5.5 million at June 30, 2009 and $25.5 million at December 31, 2008. Securities sold under agreement to repurchase were $14.2 million at June 30, 2009 and $16.4 million at December 31, 2008. Borrowings with the Federal Home Loan Bank of Atlanta were $62.3 million at June 30, 2009 and $75.0 million at December 31, 2008. Equity Shareholders' equity at June 30, 2009 and December 31, 2008 was $48.6 million and $46.8 million, respectively. The book value of the Company at June 30, 2009 was $15.28 per common share. Total common shares outstanding were 3,180,899 at June 30, 2009. On July 15, 2009, the board of directors declared a $0.17 per common share cash dividend for shareholders of record as of August 1, 2009 and payable on August 14, 2009. 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 2Q09 1Q09 2Q08 1Q08 ---- ---- ---- ---- Net Income (dollars in thousands) $904 $955 $2,081 $1,689 Earnings per share, basic $0.29 $0.30 $0.66 $0.54 Earnings per share, diluted $0.28 $0.30 $0.66 $0.54 Return on average total assets 0.71% 0.74% 1.61% 1.32% Return on average total equity 7.80% 8.27% 17.76% 14.75% Dividend payout ratio 58.62% 56.67% 25.76% 29.63% Fee revenue as a percent of total revenue 15.44% 15.13% 25.01% 15.58% Net interest margin(1) 4.24% 3.98% 4.12% 3.90% Yield on average earning assets 5.67% 5.66% 6.20% 6.42% Yield on average interest-bearing liabilities 1.82% 2.12% 2.65% 3.17% Net interest spread 3.85% 3.54% 3.55% 3.25% Tax equivalent adjustment to net interest income (dollars in thousands) $187 $182 $175 $174 Non-interest income to average assets 0.95% 0.92% 1.92% 1.51% Non-interest expense to average assets 3.10% 2.92% 3.16% 3.04% Efficiency ratio(2) 62.88% 63.04% 54.20% 58.50% (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 June 30, 2009 and June 30, 2008 net interest income on a tax equivalent basis was $5.3 million and $5.0 million, respectively. For the quarters ended March 31, 2009 and March 31, 2008 net interest income on a tax equivalent basis was $4.9 million and $4.7 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 June 30, 2009 and June 30, 2008, tax equivalent net interest income was $5.3 million and $5.0 million, respectively. For the quarters ended March 31, 2009 and March 31, 2008 net interest income on a tax equivalent basis was $4.9 million and $4.7 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 June 30, 2009 and June 30, 2008, was $1.3 million and $2.5 million, respectively. Total non interest income, excluding gains and losses on the investment portfolio, for the quarters ended March 31, 2009 and March 31, 2008, was $1.2 million and $1.9 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 2Q09 1Q09 2Q08 1Q08 ---- ---- ---- ---- BALANCE SHEET RATIOS Loans to deposits 102.20% 96.85% 104.96% 103.21% Average interest-earning assets to average-interest bearing liabilities 126.56% 125.56% 127.07% 125.77% PER SHARE DATA Dividends $0.17 $0.17 $0.17 $0.16 Book value $15.28 $14.74 $14.96 $14.85 Tangible book value $15.26 $14.71 $14.92 $14.81 SHARE PRICE DATA Closing price $15.00 $14.60 $21.00 $22.00 Diluted earnings multiple(1) 0.98 0.99 1.41 1.48 Book value multiple(2) 0.98 0.99 1.40 1.48 COMMON STOCK DATA Outstanding shares at end of period 3,180,899 3,167,250 3,167,250 3,128,667 Weighted average shares outstanding 3,169,197 3,162,666 3,132,315 3,125,355 Weighted average shares outstanding, diluted 3,172,659 3,166,620 3,138,161 3,132,370 CAPITAL RATIOS Total equity to total assets 9.30% 8.72% 9.05% 8.98% CREDIT QUALITY Net charge-offs to average loans 0.43% 0.08% 0.07% 0.02% Total non-performing loans to total loans 0.54% 1.52% 0.32% 0.34% Total non-performing assets to total assets 0.82% 1.30% 0.44% 0.30% Non-accrual loans to: total loans 0.53% 1.10% 0.00% 0.18% total assets 0.39% 0.80% 0.00% 0.14% Allowance for loan losses to: total loans 1.13% 1.29% 0.85% 0.85% non-performing assets 102.74% 72.12% 144.39% 216.01% non-accrual loans 213.60% 116.66% 0.00% 473.44% NON-PERFORMING ASSETS: (dollars in thousands) Loans delinquent over 90 days $50 $1,624 $1,269 $624 Non-accrual loans 2,052 4,293 - 704 Other real estate owned and repossessed assets 2,164 1,027 1,020 215 NET LOAN CHARGE-OFFS (RECOVERIES): (dollars in thousands) Loans charged off $1,727 $361 $301 $99 (Recoveries) (52) (48) (29) (13) Net charge-offs (recoveries) 1,675 313 272 86 PROVISION FOR LOAN LOSSES (dollars in thousands) $1,050 $800 $300 200 ALLOWANCE FOR LOAN LOSS SUMMARY (dollars in thousands) Balance at the beginning of period $5,008 $4,521 $3,305 $3,191 Provision 1,050 800 300 200 Net charge-offs (recoveries) 1,675 313 272 86 Balance at the end of period $4,383 $5,008 $3,333 $3,305 (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. BALANCE SHEET (dollars in thousands) Unaudited Unaudited Audited Unaudited Unaudited 6/30/2009 3/31/2009 12/31/2008 6/30/2008 3/31/2008 --------- --------- ---------- --------- --------- Assets Cash and due from banks $7,841 $7,425 $7,287 $9,687 $10,768 Federal funds sold - 16,679 11,052 - 1,326 Securities available for sale, at fair value 101,884 101,796 98,919 97,675 97,960 Loans, net of allowance for loan losses 385,200 383,632 385,565 387,327 384,292 Bank premises and equipment, net 15,006 15,165 15,377 15,681 16,420 Other assets 12,679 10,685 9,942 8,069 7,053 ------ ------ ----- ----- ----- Total assets $522,610 $535,382 $528,142 $518,439 $517,819 ======== ======== ======== ======== ======== Liabilities and Shareholders' Equity Liabilities Deposits: Noninterest bearing demand deposits $83,985 $83,180 $81,340 $81,065 $80,968 Savings and interest bearing demand deposits 154,071 153,629 154,622 154,827 144,584 Time deposits 143,130 164,471 150,565 136,295 149,989 ------- ------- ------- ------- ------- Total deposits $381,186 $401,280 $386,527 $372,187 $375,541 Federal funds purchased and securities sold under agreements to repurchase 19,791 14,717 14,693 19,324 15,505 Federal Home Loan Bank advances 62,250 62,250 70,000 70,000 70,000 Trust preferred capital notes 7,217 7,217 7,217 7,217 7,217 Other liabilities 3,555 3,244 2,876 2,810 3,079 Commitments and contingent liabilities - - - - - --- --- --- --- --- Total liabilities $473,999 $488,708 $481,313 $471,538 $471,342 -------- -------- -------- -------- -------- Shareholders' Equity Preferred stock, $10 par value $- $- $- $- $- Common stock, $2.50 par value 7,952 7,918 7,888 7,839 7,822 Surplus 8,085 7,872 7,796 7,418 7,256 Retained earnings 33,558 33,194 32,779 33,566 32,019 Accumulated other comprehensive income (984) (2,310) (1,634) (1,922) (620) ---- ------ ------ ------ ---- Total shareholders' equity $48,611 $46,674 $46,829 $46,901 $46,477 ------- ------- ------- ------- ------- Total liabilities and shareholders' equity $522,610 $535,382 $528,142 $518,439 $517,819 ======== ======== ======== ======== ======== EAGLE FINANCIAL SERVICES, INC. SUMMARY INCOME STATEMENT (dollars in thousands) Unaudited Unaudited Unaudited Unaudited 6/30/2009 3/31/2009 6/30/2008 3/31/2008 --------- --------- --------- --------- Interest and Dividend Income Interest and fees on loans $5,698 $5,604 $6,194 $6,491 Interest on federal funds sold 3 4 8 28 Interest and dividends on securities available for sale: Taxable interest income 748 753 691 594 Interest income exempt from federal income taxes 298 285 290 297 Dividends 119 113 219 182 Interest on deposits in banks 2 - 1 2 --- --- --- --- Total interest and dividend income $6,868 $6,759 $7,403 $7,594 ------ ------ ------ ------ Interest Expense Interest on deposits $1,080 $1,328 $1,694 $2,115 Interest on federal funds purchased and securities sold under agreements to repurchase 95 97 130 107 Interest on Federal Home Loan Bank advances 530 564 640 724 Interest on trust preferred capital notes 48 61 81 108 Interest on interest rate swap 31 17 - - --- --- --- --- Total interest expense $1,784 $2,067 $2,545 $3,054 ------ ------ ------ ------ Net interest income $5,084 $4,692 $4,858 $4,540 Provision For Loan Losses 1,050 800 300 200 ----- --- --- --- Net interest income after provision for loan losses $4,034 $3,892 $4,558 $4,340 ------ ------ ------ ------ Noninterest Income Income from fiduciary activities $204 240 $274 $219 Service charges on deposit accounts 517 477 584 553 Other service charges and fees 494 486 717 711 Gain on the sale of loans - - - 376 Gain on the sale of bank premises and equipment - - 742 - Gain (loss) on the sale of other real estate owned 4 - - - Other operating income 35 2 152 63 -- --- --- -- Total noninterest income $1,254 $1,205 $2,469 $1,922 ------ ------ ------ ------ Noninterest Expenses Salaries and employee benefits $2,287 $2,170 $2,321 $2,297 Occupancy expenses 348 296 358 287 Equipment expenses 166 171 175 171 Advertising and marketing expenses 87 95 90 88 Stationery and supplies 80 85 101 92 ATM network fees 32 31 112 103 Other operating expenses 1,103 984 909 844 ----- --- --- --- Total noninterest expenses $4,103 $3,832 $4,066 $3,882 ------ ------ ------ ------ Income before income taxes $1,185 $1,265 $2,961 $2,380 Income Tax Expense 281 310 880 691 --- --- --- --- Net income $904 $955 $2,081 $1,689 ==== ==== ====== ====== Earnings Per Share Net income per common share, basic $0.29 $0.30 $0.66 $0.54 ===== ===== ===== ===== Net income per common share, diluted $0.28 $0.30 $0.66 $0.54 ===== ===== ===== ===== EAGLE FINANCIAL SERVICES, INC. Average Balances, Income and Expenses, Yields and Rates (dollars in thousands) For the Three Months Ended June 30, ----------------------------------- 2009 2008 ------------------------- ------------------------- Interest Interest Average Income/ Average Average Income/ Average Assets: Balance Expense Rate Balance Expense Rate ------- ------- ---- ------- ------- ---- Securities: Taxable 71,617 3,478 4.86% 68,189 3,640 5.34% Tax-Exempt(1) 32,614 1,814 5.56% 30,892 1,760 5.70% ------ ----- ------ ----- Total Securities 104,231 5,292 5.08% 99,081 5,400 5.45% Loans: Taxable 380,692 22,595 5.94% 383,884 24,581 6.40% Tax-Exempt(1) 6,221 393 6.32% 4,218 299 7.09% ----- --- ----- --- Total Loans 386,913 22,988 5.94% 388,102 24,880 6.41% Federal funds sold 7,647 12 0.16% 1,726 32 1.85% Interest-bearing deposits in other banks 215 8 3.72% 122 4 3.28% --- --- --- --- Total earning assets 499,006 28,300 5.67% 489,031 30,316 6.20% ------ ------ Allowance for loan losses (4,359) (3,352) Total non-earning assets 35,403 30,787 ------ ------ Total assets 530,050 516,466 ======= ======= Liabilities and Shareholders' Equity: Interest-bearing deposits: NOW accounts 57,173 287 0.50% 62,151 656 1.06% Money market accounts 60,352 557 0.92% 51,691 901 1.74% Savings accounts 36,734 124 0.34% 34,152 220 0.64% Time deposits: $100,000 and more 53,221 1,109 2.08% 71,827 2,473 3.44% Less than $100,000 102,638 2,257 2.20% 69,219 2,526 3.65% ------- ----- ------ ----- Total interest- bearing deposits 310,118 4,334 1.40% 289,040 6,776 2.34% Federal funds purchased and securities sold under agreements to repurchase 14,685 382 2.60% 18,609 520 2.79% Federal Home Loan Bank advances 62,250 2,125 3.41% 70,000 2,560 3.66% Trust preferred capital notes 7,217 317 4.39% 7,217 324 4.49% ----- --- ----- --- Total interest- bearing liabilities 394,270 7,158 1.82% 384,866 10,180 2.65% ------- ----- ------- ------ Noninterest-bearing liabilities: Demand deposits 84,477 81,793 Other Liabilities 3,232 2,920 ----- ----- Total liabilities 481,979 469,579 Shareholders' equity 48,071 46,887 ------ ------ Total liabilities and shareholders' equity 530,050 516,466 ======= ======= ------ ------ Net interest income 21,142 20,136 ====== ====== Net interest spread 3.85% 3.55% Interest expense as a percent of average earning assets 1.43% 2.08% Net interest margin 4.24% 4.12% (1) Income and yields are reported on 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 Three Months Ended March 31, -------------------------------------------------- 2009 2008 ------------------------ ------------------------ Interest Interest Average Income/ Average Average Income/ Average Assets: Balance Expense Rate Balance Expense Rate ------------------------ ------------------------ Securities: Taxable 68,082 3,529 5.18% 58,270 3,104 5.33% Tax-Exempt (1) 31,189 1,750 5.61% 31,613 1,800 5.69% ------ ----- ------ ----- Total Securities 99,271 5,279 5.32% 89,883 4,904 5.46% Loans: Taxable 383,241 22,451 5.86% 386,550 25,796 6.67% Tax-Exempt (1) 5,776 419 7.26% 3,429 252 7.35% ----- --- ----- --- Total Loans 389,017 22,870 5.88% 389,979 26,048 6.68% Federal funds sold 8,642 17 0.20% 3,937 112 2.84% Interest-bearing deposits in other banks 314 1 0.18% 248 8 3.23% --- ----- --- - Total earning assets 497,243 28,167 5.66% 484,047 31,072 6.42% ------ ------ Allowance for loan losses (4,606) (3,233) Total non-earning assets 33,073 31,210 ------ ------ Total assets 525,710 512,024 ======= ======= Liabilities and Shareholders' Equity: Interest-bearing deposits: NOW accounts 57,565 384 0.67% 64,435 847 1.31% Money market accounts 59,458 750 1.26% 45,635 910 1.99% Savings accounts 34,286 160 0.47% 33,184 227 0.68% Time deposits: $100,000 and more 57,823 1,602 2.77% 78,507 3,393 4.32% Less than $100,000 95,706 2,489 2.60% 72,886 3,082 4.23% ------ ----- ------ ----- Total interest-bearing deposits 304,838 5,385 1.77% 294,647 8,459 2.87% Federal funds purchased and securities sold under agreements to repurchase 15,673 394 2.51% 13,774 428 3.11% Federal Home Loan Bank advances 68,278 2,287 3.35% 69,231 2,896 4.18% Trust preferred capital notes 7,217 317 4.39% 7,217 432 5.99% ----- --- ----- --- Total interest-bearing liabilities 396,005 8,382 2.12% 384,869 12,215 3.17% ------- ----- ------- ------ Noninterest-bearing liabilities: Demand deposits 79,854 78,450 Other Liabilities 3,014 2,898 ----- ----- Total liabilities 478,873 466,217 Shareholders' equity 46,837 45,807 ------ ------ Total liabilities and shareholders' equity 525,710 512,024 ======= ======= Net interest income 19,785 18,857 ====== ====== Net interest spread 3.54% 3.25% Interest expense as a percent of average earning assets 1.69% 2.52% Net interest margin 3.98% 3.90% (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 --------------------------------------- 6/30/2009 3/31/2009 6/30/2008 3/31/2008 --------- --------- --------- --------- GAAP Financial Measurements: Interest Income - Loans $5,698 $5,604 $6,194 $6,491 Interest Income - Securities and Other Interest-Earnings Assets 1,170 1,155 1,209 1,103 Interest Expense - Deposits 1,080 1,328 1,694 2,115 Interest Expense - Other Borrowings 704 739 851 939 --- --- --- --- Total Net Interest Income $5,084 $4,692 $4,858 $4,540 Non-GAAP Financial Measurements: Add: Tax Benefit on Tax-Exempt Interest Income - Loans $33 $35 $25 $21 Add: Tax Benefit on Tax-Exempt Interest Income - Securities 154 147 150 153 --- --- --- --- Total Tax Benefit on Tax-Exempt Interest Income $187 $182 $175 174 ---- ---- ---- --- Tax-Equivalent Net Interest Income $5,271 $4,874 $5,033 $4,714 ====== ====== ====== ====== DATASOURCE: Eagle Financial Services, Inc. CONTACT: Kathleen J. Chappell, Vice President and CFO, +1-540-955-2510,

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