BERRYVILLE, Va., Jan. 29 /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 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 ====== ====== ======
====== ====== DATASOURCE: Eagle Financial Services, Inc. CONTACT:
Kathleen J. Chappell, Vice President and CFO, +1-540-955-2510,
Copyright