Eagle Financial Services, Inc. Announces 2013 Third Quarter Financial Results And Quarterly Dividend

BERRYVILLE, Va.迷利倉, Oct. 18, 2013 /PRNewswire/ -- Eagle Financial Services, Inc. , the holding company for Bank of Clarke County, whose divisions include Eagle Investment Group, today announced earnings of $1.5 million, or $0.44 per diluted share, for the quarter ended September 30, 2013. This is a 20.1% increase from the $1.3 million in earnings, or $0.37 per diluted share, for the same period in 2012.Selected Financial Highlights:2013 2012 ==== ====Three months ended: Q3 Q2 Q3 ------------------- --- --- ---Net income (000's) $1,505 $2,001 $1,253Diluted EPS $0.44 $0.59 $0.37Net Interest Margin 4.28% 4.28% 4.40%Total equity to assets 11.21% 11.00% 10.94%Allowance for loan losses to total loans 1.53% 1.60% 1.86%Provision for loan losses (000's) $0 $384 $1,050John R. Milleson, President and CEO, stated "The Company is proud to report another quarter of solid earnings and continued loan growth. Several credit quality metrics are stabilizing thereby allowing the Company to better focus on future growth of the loan portfolio. We are excited about our reception from the Loudoun County market and look forward to further expansion there. The $0.76 dividend per share for 2013 is the 27(th) consecutive year with a dividend increase and a testimony to management's and the board of directors' confidence in the Company's strategic growth plans."Income Statement ReviewNet income for the quarter ended September 30, 2013 decreased 24.8% to $1.5 million when compared to the $2.0 million for the quarter ended June 30, 2013. Net income in the second quarter of 2013 benefited from several one-time events totaling approximately $775,000. Net income increased 20.1% for the quarter ended September 30, 2013 when compared to the $1.3 million for the quarter ended September 30, 2012.Net interest income for the quarter ended September 30, 2013 increased 1.5% to $5.7 million when compared to the $5.6 million for the quarter ended June 30, 2013. Net interest income was $5.8 million for the quarter ended September 30, 2012.Total loan interest income was $5.4 million for the quarter ended September 30, 2013 and $5.3 million for the quarter ended June 30, 2013. Average loans for the quarter ended September 30, 2013 were $434.7 million compared to $425.1 million for the quarter ended June 30, 2013. Total average accruing loans were $432.2 million for the three months ended September 30, 2013 and $422.4 million for the quarter ended June 30, 2013. For the third quarter of 2012, total average loans were $428.2 million and average accruing loans were $425.2 million. The tax equivalent yield on average loans for the quarter ended September 30, 2013 was 4.99%, down 13 basis points from 5.12% for the quarter ended June 30, 2013. The reversal of interest income for the loans placed on nonaccrual status during the quarter contributed to the decrease in yield. Interest income from the investment portfolio was $845,000 for the quarter ended September 30, 2013 and $874,000 for the quarter ended June 30, 2013. Average investments were $106.8 million for the quarter ended September 30, 2013 and $113.5 million for the quarter ended June 30, 2013. Interest income from the investment portfolio was $948,000 while average investments were $105.8 million for the quarter ended September 30, 2012.Total interest expense was $627,000 for the three months ended September 30, 2013 and $640,000 for the same period ended June 30, 2013. The average cost of interest bearing liabilities decreased three basis points when comparing the quarter ended September 30, 2013 to the quarter ended June 30, 2013. The average balance of interest bearing liabilities decreased $2.7 million from the quarter ended June 30, 2013. The net interest margin was 4.28% for the quarters ended September 30, 2013 and June 30, 2013. For the quarter ended September 30, 2012, total interest expense was $820,000 and the net interest margin was 4.40%. Declining asset yields have continued to pressure the Company's net interest margin.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%.Noninterest income decreased $888,000 or 36.0% to $1.6 million for the quarter ended September 30, 2013 when compared to $2.5 million for the three months ended June 30, 2013. The Company incurred several one-time events during the second quarter of 2013, including the sale of its merchant portfolio for a net gain of $399,000, the receipt of a signing bonus of $121,000 from its current debit card vendor for extending its contract and remaining exclusive to this provider and recognition of $254,000 of income related to the termination of a bank owned life insurance policy. Noninterest income for the quarter ended September 30, 2012 was $1.6 million.Noninterest expense was $5.2 million for the quarter ended September 30, 2013. This represents an increase of $220,000 or 4.4% from $5.0 million for the quarter ended June 30, 2013. Much of this increase related to net losses resulting from the sales of other real estate owned. During the third quarter of 2013, the Company sold two pieces of other real estate owned for a total net loss of $110,000. Net gains of $53,000 were recognized on the sales of other real estate owned for the quarter ended June 30, 2013. Noninterest expense increased $595,000 or 13.0% when compared to $4.6 million for the quartered ended September 30, 2012. In addition to the net loss on sales of other real estate owned, salaries and employee benefits also contributed to the increase with the addition of the Company's newest retail branch in May of 2013. Several new employees were hired to staff the new branch, which is located in Purcellville, VA, during the first and second quarters of 2013. The Purcellville location has also contributed to increases in the Company's occupancy expenses. Occupancy expenses increased 5.3% and 20.4%, respectively when the quarter ended September 30, 2013 is compared to the quarters ended June 30, 2013 and September 30, 2012, respectively.Other operating expenses increased $76,000 or 6.8% and $171,000 or 16.8% when comparing the quarter ended September 30, 2013 to the quarters ended June 30, 2013 and September 30, 2012, respectively. The increases resulted from increases in various other expense categories including accounting fees, educational expenses, FDIC deposit insurance, expenses associated with other real estate owned and loan related expenses.Asset Quality and Provision for Loan LossesNonperforming assets consist of loans 90 days past due and still accruing interest, nonaccrual loans, other real estate owned (foreclosed properties), and repossessed assets. Nonperforming assets increased from $5.2 million or 0.89% of total assets at June 30, 2013 to $6.4 million or 1.10% of total assets at September 30, 2013. This increase resulted mostly from the increase in non-accrual loans. During the third quarter of 2013, the Bank placed four loans totaling $1.7 million on non-accrual status. Although one of the loans placed on nonaccrual status during the third quarter was a $1.2 million commercial loan, the majority of the non-accrual loans are secured by real estate. Management regularly evaluates the financial condition of borrowers with loans on non-accrual status 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 non-accrual loans. No real estate assets had been foreclosed upon during the third quarter of 2013 while two were sold during that same period. Loans greater than 90 days past due and still accruing decreased from $201,000 at June 30, 2013 to $147,000 at September 30, 2013. Nonperforming assets were $7.5 million or 1.30% of total assets at September 30, 2012.The Company may, under certain circumstances, restructure loans in troubled debt restructurings as a concession to a borrower when the borrower is experiencing financial distress. Formal, standardized loan restructuring programs are not utilized by the Company. Each loan considered for restructuring is evaluated based on customer circumstances and may include modifications to one or more loan provision. Such restructured loans are included in impaired loans but may not necessarily be nonperforming loans. At September 30, 2013, the Company had 29 troubled debt restructurings totaling $8.5 million. All but three of the loans are performing loans.The Company realized $260,000 in net charge-offs for the quarter ended September 30, 2013 versus $366,000 for the three months ended June 30, 2013. The Company's troubled credit group continues to monitor past due loans, identify potential problem credits, and develop action plans to work through its troubled loans as promptly as possible. Net charge-offs for the quarter ended September 30, 2012 were $1.7 million.Despite the increase in nonperforming loans, there were no provisions for loan losses made during the third quarter of 2013. 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. Management's judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower's ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. The Company is committed to maintaining an allowance at a level that adequately reflects the risk inherent in the loan portfolio. Provisions for loan losses were $384,000 for the three months ended June 30, 2013 and $1.1 million for the quarter ended September 30, 2012. The allowance for loan losses was $6.7 million, or 1.53% of total outstanding loans, at September 30, 2013. At June 30, 2013 and September 30, 2012, the allowance for loan losses was $7.0 million and $8.0 million, respectively.Total Consolidated AssetsTotal consolidated assets of the Company at September 30, 2013 were $583.5 million, which represented a decrease of $2.2 million or 0.4% from total assets of $585.7 million at June 30, 2013. This decrease was driven mostly by the sales and other dispositions of investment securities. At September 30, 2012, total consolidated assets were $574.2 million. Total loans increased slightly from $436.4 million at June 30, 2013 to $438.1 million at September 30, 2013. Considering the current interest rate and competitive market environment, the Company remains diligent to both its underwriting standards and its net interest margin maintenance and accordingly is cautious about the growth it has accepted in the loan portfolio. Total loans were $427.5 million at September 30, 2012.Deposits and Other BorrowingsTotal deposits, which include brokered deposits, increased $1.2 million to $474.5 million at September 30, 2013 from $473.3 million at June 30, 2013. At September 30, 2012, total deposits were $457.2 million. The Company held $9.9 million in brokered deposits for the quarters ended at September 30, 2013, June 30, 2013 and September 30, 2012.There was no balance of fed funds purchased and securities sold under agreement to repurchase at September 30, 2013. At June 30, 2013 and September 30, 2012, fed funds purchased and securities sold under agreement to repurchase were $5.6 million and $10.0 million, respectively. Borrowings with the Federal Home Loan Bank of Atlanta were $32.3 million at September 30, 2013, June 30, 2013 and September 30, 2012.EquityShareholders' equity at September 30, 2013 was $65.4 million, reflecting an increase of $1.0 million from $64.4 million at June 30, 2013. At September 30, 2012 shareholders' equity was $62.8 million. The book value of the Company at September 30, 2013 was $19.36 per common share. Total common shares outstanding were 3,400,711 at September 30, 2013. On October 16, 2013, the board of directors declared a $0.19 per common share cash dividend for shareholders of record as of November 1, 2013 and payable on November 15, 2013.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, 2012, and other filings with the Securities and Exchange Commission.EAGLE FINANCIAL SERVICES, INC.KEY STATISTICS For the Three Months Ended --------------------------3Q13 2Q13 1Q13 4Q12 3Q12 ---- ---- ---- ---- ----Net Income (dollars in thousands) $1,505 $2,001 $1,803 $1,581 $1,253Earnings per share, basic $0.44 $0.59 $0.54 $0.47 $0.38Earnings per share, diluted $0.44 $0.59 $0.53 $0.47 $0.37Return on average total assets 1.03% 1.40% 1.27% 1.08% 0.88%Return on average total equity 9.25% 12.51% 11.42% 9.95% 8.01%Dividend payout ratio 43.18% 32.20% 35.19% 40.43% 47.37%Fee revenue as a percent of total revenue 21.36% 25.86% 20.02% 20.32% 20.40%Net interest margin(1) 4.28% 4.28% 4.29% 4.31% 4.40%Yield on average earning assets 4.73% 4.76% 4.81% 4.91% 5.01%Yield on average interest-bearing liabilities 0.66% 0.69% 0.75% 0.83% 0.85%Net interest spread 4.07% 4.07% 4.06% 4.08% 4.16%Tax equivalent adjustment to net interest income (dollars in thousands) $180 $186 $192 $198 $200Non-interest income to average assets 1.09% 1.73% 1.36% 1.05% 1.07%Non-interest expense to average assets 3.55% 3.48% 3.23% 3.41% 3.16%Efficiency ratio(2) 69.63% 60.18% 62.71% 60.91% 61.36%(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 nontaxable (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 nontaxable 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 and sales of repossessed assets. The tax rate utilized is 34%. See the table below for the quarterly tax equivalent net interest income and a reconciliation of net interest income to tax equivalent net interest income. 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 QUARTER3Q13 2Q13 1Q13 4Q12 3Q12 ---- ---- ---- ---- ----BALANCE SHEET RATIOSLoans to deposits 92.32% 92.19% 89.59% 87.63% 93.51%Average interest-earning assets toaverage-interest bearing liabilities 145.62% 145.49% 152.08% 139.30% 143.90%PER SHARE DATADividends $0.19 $0.19 $0.19 $0.19 $0.18Book value $19.36 $19.13 $19.36 $19.11 $18.78Tangible book value $19.36 $19.13 $19.36 $19.11 $18.78SHARE PRICE DATAClosing price $23.75 $23.35 $22.10 $22.00 $21.50Diluted earnings multiple(1) 13.49 9.89 10.42 11.70 14.53Book value multiple(2) 1.23 1.22 1.14 1.15 1.15COMMON STOCK DATAOutstanding shares at end of period 3,400,711 3,388,005 3,372,080 3,352,523 3,344,737Weighted average shares outstanding 3,393,519 3,373,353 3,367,689 3,348,630 3,341,050Weighted average shares outstanding, diluted 3,405,225 3,383,748 3,378,369 3,359,611 3,352,337CAPITAL RATIOSTotal equity to total assets 11.21% 11.00% 11.17% 10.74% 10.94%CREDIT QUALITYNet charge-offs to average loans 0.06% 0.09% 0.00% 0.33% 0.41%Total non-performing loans to total loans 0.98% 0.59% 0.79% 0.63% 1.19%Total non-performing assets to total assets 1.10% 0.89% 1.08% 0.94% 1.30%Non-accrual loans to:total loans 0.94% 0.55% 0.64% 0.58% 1.19%total assets 0.71% 0.41% 0.47% 0.41% 0.89%Allowance for loan losses to:total loans 1.53% 1.60% 1.64% 1.57% 1.86%non-performing assets 104.64% 133.55% 110.88% 118.38% 106.64%non-accrual loans 162.70% 291.48% 256.07% 272.45% 156.37%NON-PERFORMING ASSETS:(dollars in thousands)Loans delinquent over 90 days $147 $201 $631 $208 $10Non-accrual loans 4,129 2,394 2,718 2,414 5,091Other real estate owned and repossessed assets 2,144 2,630 2,928 2,934 2,364NET LOAN CHARGE-OFFS (RECOVERIES):(dollars in thousands)Loans charged off $385 $403 $42 $1,516 $1,801(Recoveries) (125) (37) (42) (122) (84)Net charge-offs (recoveries) 260 366 - 1,394 1,717PROVISION FOR LOAN LOSSES (dollars in thousands) $ - $384 $383 $10 $1,050ALLOWANCE FOR LOAN LOSS SUMMARY(dollars in thousands)Balance at the beginning of period $6,978 $6,960 $6,577 $7,961 $8,628Provision - 384 383 10 1,050Net charge-offs (recoveries) 260 366 - 1,394 1,717Balance at the end of period $6,718 $6,978 $6,960 $6,577 $7,961(1) The diluted earnings multiple is calculated by dividing the period's closing market price per share by the annualized diluted earnings per share 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 Unaudited Unaudited Audited Unaudited9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012 --------- --------- --------- ---------- ---------AssetsCash and due from banks $17,686 $10,632 $21,829 $48,690 $21,812Federal funds sold - - - - -Securities available for sale, at fair value 104,753 109,145 115,001 105,531 103,963Loans, net of allowance for loan losses 431,346 429,379 416,890 411,520 419,538Bank premises and equipment, net 17,231 17,287 16,834 16,545 16,420Other assets 12,489 19,230 10,292 10,990 12,419Total assets $583,505 $585,673 $580,846 $593,276 $574,152 ======== ======== ======== ======== ========Liabilities and Shareholders' EquityLiabilitiesDeposits:Noninterest bearing demand deposits $143,156 $135,802 $135,650 $134,871 $122,093Savings and interest bearing demand deposits 230,581 234,430 227,876 231,249 219,984Time deposits 100,790 103,080 109,554 110,981 115,101 ------- ------- ------- ------- -------Total deposits $474,527 $473,312 $473,080 $477,101 $457,178Federal funds purchased and securitiessold under agreements to repurchase - 5,616 - 10,000 10,000Federal Home Loan Bank advances 32,250 32,250 32,250 32,250 32,250Trust preferred capital notes 7,217 7,217 7,217 7,217 7,217Other liabilities 4,093 2,860 3,429 3,002 4,709Commitments and contingent liabilities - - - - -Total liabilities $518,087 $521,255 $515,976 $529,570 $511,354 -------- -------- -------- -------- --------Shareholders' EquityPreferred stock, $10 par value $ - $ - $ - $ - $ -Common stock, $2.50 par value 8,449 8,417 8,376 8,340 8,312Surplus 11,276 10,935 10,636 10,424 10,218Retained earnings 44,879 44,018 42,657 41,494 40,548Accumulated other comprehensive income 814 1,048 3,201 3,448 3,720Total shareholders' equity $65,418 $64,418 $64,870 $63,706 $62,798 ------- ------- ------- ------- -------Total liabilities and shareholders' equity $583,505 $585,673 $580,846 $593,276 $574,152 ======== ======== ======== ======== ========EAGLE FINANCIAL SERVICES, INC.CONSOLIDATED STATEMENTS OF INCOME(dollars in thousands)UnauditedThree Months Ended ------------------9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012 --------- --------- --------- ---------- ---------Interest and Dividend IncomeInterest and fees on loans $5,446 $5,343 $5,331 $5,532 $5,634Interest on federal funds sold - - - - -Interest and dividends on securities available for sale:Taxable interest income 500 518 547 511 524Interest income exempt from federal income taxes 307 314 324 335 337Dividends 38 42 67 87 87Interest on deposits in banks 3 6 10 14 4Total interest and dividend income $6,294 $6,223 $6,279 $6,479 $6,586 ------ ------ ------ ------ ------Interest ExpenseInterest on deposits $269 $288 $326 $368 $377Interest on federal funds purchased and securitiessold under agreements to repurchase 2 1 29 90 90Interest on Federal Home Loan Bank advances 276 273 270 276 273Interest on trust preferred capital notes 80 78 78 80 80Total interest expense $627 $640 $703 $814 $820 ---- ---- ---- ---- ----Net interest income $5,667 $5,583 $5,576 $5,665 $5,766Provision For Loan Losses - 384 383 10 1,050Net interest income after provision for loan losses $5,667 $5,199 $5,193 $5,655 $4,716 ------ ------ ------ ------ ------Noninterest IncomeIncome from fiduciary activities $296 $273 $360 $237 $205Service charges on deposit accounts 377 366 343 397 390Other service charges and fees 874 1,443 800 828 898Gain on the sale of bank premises and equipment - - - - -Gain (Loss) on sales of AFS securities - 10 390 30 1Other operating income 34 377 39 39 59Total noninterest income $1,581 $2,469 $1,932 $1,531 $1,553 ------ ------ ------ ------ ------Noninterest ExpensesSalaries and employee benefits $2,926 $2,910 $2,641 $2,699 $2,651Occupancy expenses 336 319 281 289 279Equipment expenses 151 191 155 163 162Advertising and marketing expenses 150 144 127 123 132Stationery and supplies 57 68 78 58 91ATM network fees 157 143 157 132 139Other real estate owned expenses 2 20 8 304 8FDIC assessment 93 96 97 90 96(Gain) loss on the sale of other real estate owned 110 (53) - 2 -Other operating expenses 1,190 1,114 1,040 1,121 1,019Total noninterest expenses $5,172 $4,952 $4,584 $4,981 $4,577 ------ ------ ------ ------ ------Income before income taxes $2,076 $2,716 $2,541 $2,205 $1,692Income Tax Expense 571 715 738 624 439Net income $1,505 $2,001 $1,803 $1,581 $1,253 ====== ====== ====== ====== ======Earnings Per ShareNet income per common share, basic $0.44 $0.59 $0.54 $0.47 $0.38 ===== ===== ===== ===== =====Net income per common share, diluted $0.44 $0.59 $0.53 $0.47 $0.37 ===== ===== ===== ===== =====EAGLE FINANCIAL SERVICES, INC. Average Balances, Income and Expenses, Yields and Rates 自存倉 (dollars in thousands) For the Three Months Ended -------------------------- September 30, 2013 June 30, 2013 September 30, 2012 ------------------ ------------- ------------------ Interest Interest Interest Average Income/ Average Average Income/ Average Average Income/ Average Assets: Balance Expense Yield Balance Expense Yield Balance Expense Yield ------- ------- ----- ------- ------- ----- ------- ------- ----- Securities: Taxable $70,559 $2,142 3.04% $76,102 $2,267 2.98% $67,170 $2,431 3.62% Tax-Exempt (1) 36,280 1,842 5.08% 37,437 1,933 5.16% 38,655 2,035 5.26% Total Securities $106,839 $3,984 3.73% $113,539 $4,200 3.70% $105,825 $4,466 4.22% Loans: Taxable $427,895 $21,436 5.01% $417,906 $21,478 5.14% $420,495 $22,214 5.28% Nonaccrual 2,494 - 0.00% 2,692 - 0.00% 2,943 - 0.00% Tax-Exempt (1) 4,296 252 5.88% 4,531 285 6.29% 4,747 302 6.37% ----- --- ----- --- ----- --- Total Loans $434,685 $21,688 4.99% $425,129 $21,763 5.12% $428,185 $22,516 5.26% Federal funds sold - - 0.00% - - 0.00% - - 0.00% Interest-bearing deposits in other banks 3,610 12 0.33% 10,190 24 0.23% 7,815 16 0.20% Total earning assets $542,640 $25,684 4.73% $546,166 $25,987 4.76% $538,882 $26,997 5.01% Allowance for loan losses (7,213) (7,137) (8,395) Total non-earning assets 39,801 38,813 35,570 Total assets $577,722 $577,842 $569,000 ======== ======== ======== Liabilities and Shareholders' Equity: Interest-bearing deposits: NOW accounts $83,995 $95 0.11% $83,485 $101 0.12% $81,272 $138 0.17% Money market accounts 87,209 111 0.13% 87,654 110 0.12% 84,304 198 0.24% Savings accounts 59,788 28 0.05% 58,997 28 0.05% 53,796 32 0.06% Time deposits: $100,000 and more 36,486 218 0.60% 38,478 247 0.64% 46,015 349 0.76% Less than $100,000 64,802 611 0.94% 67,143 677 1.01% 70,488 784 1.11% ------ --- ------ --- ------ --- Total interest-bearing deposits $332,280 $1,063 0.32% $335,757 1,164 0.35% $335,875 $1,502 0.45% Federal funds purchased and securities sold under agreements to repurchase 902 8 0.88% 169 0 0.00% 10,008 356 3.56% Federal Home Loan Bank advances 32,250 1,091 3.38% 32,250 1,107 3.43% 32,250 1,085 3.37% Trust preferred capital notes 7,217 313 4.34% 7,217 324 4.50% 7,217 318 4.41% Total interest-bearing liabilities $372,649 $2,476 0.66% $375,393 2,596 0.69% $385,350 $3,262 0.85% -------- ------ -------- ----- -------- ------ Noninterest-bearing liabilities: Demand deposits 137,136 134,867 117,144 Other Liabilities 3,389 2,703 4,267 Total liabilities $513,174 $512,963 $506,761 Shareholders' equity 64,548 64,879 62,239 Total liabilities and shareholders' equity $577,722 $577,842 $569,000 ======== ======== ======== Net interest income $23,209 $23,392 $23,736 ======= ======= ======= Net interest spread 4.07% 4.07% 4.16% Interest expense as a percent of average earning assets 0.46% 0.48% 0.61% Net interest margin 4.28% 4.28% 4.40%(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 ------------------9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012 --------- --------- --------- ---------- ---------GAAP Financial Measurements:Interest Income - Loans $5,445 $5,342 $5,331 $5,532 $5,634Interest Income - Securities and Other Interest-Earnings Assets 849 880 947 947 952Interest Expense - Deposits 269 287 326 368 377Interest Expense - Other Borrowings 355 353 377 446 443 --- --- --- --- ---Total Net Interest Income $5,670 $5,582 $5,575 $5,665 $5,766Non-GAAP Financial Measurements:Add: Tax Benefit on Tax-Exempt Interest Income - Loans $22 $24 $25 $26 $26Add: Tax Benefit on Tax-Exempt Interest Income - Securities 158 162 167 172 174Total Tax Benefit on Tax-Exempt Interest Income $180 $186 $192 $198 $200 ---- ---- ---- ---- ----Tax-Equivalent Net Interest Income $5,850 $5,768 $5,767 $5,863 $5,966 ====== ====== ====== ====== ======Eagle Financial Services, Inc.CONTACT: Kathleen J. Chappell, Vice President and CFO, 540-955-2510,kchappell@bankofclarke.com迷你倉