Eagle Financial Services, Inc. Announces 2017 First Quarter Dividend And Financial Results

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 was $1.7 million for the quarter ended March 31, 2017 and $1.6 million for the quarter ended December 31, 2016. The increase for the quarter results mostly from the increase in commissions from sales of non-deposit investments and net gains from sales of investment securities. Noninterest income for the quarter ended March 31, 2016 was $1.6 million.

Noninterest expense was $5.7 million for the quarter ended March 31, 2017.  This represents an increase of $314,000 or 5.8% from $5.4 million for the quarter ended December 31, 2016.  Much of this rise results from increases in employee benefit expense, mainly medical insurance.  Employee benefit expenses increased $110,000 when comparing the quarter ended March 31, 2017 to the quarter ended December 31, 2016.  Increases in employee medical insurance contributed $62,000 to the overall $110,000 increase in employee benefit expenses. Both increases in the number of employees covered and higher premiums resulted in the increase.  Additionally, professional fees increased $117,000 when comparing the three-month period ended March 31, 2017 to the three-month period ended December 31, 2016. Increased audit and legal fees contributed to the higher level of professional expenses.  Noninterest expense increased $156,000 or 2.8% when comparing the quarter ended March 31, 2017 to the same time period in 2016.

Asset Quality and Provision for Loan Losses

Nonperforming assets consist of nonaccrual loans, loans 90 days or more past due and still accruing, other real estate owned (foreclosed properties), and repossessed assets.  Nonperforming assets decreased from $7.4 million or 1.05% of total assets at December 31, 2016 to $6.4 million or 0.91% of total assets at March 31, 2017. This decrease resulted mostly from the decreases in nonaccrual loans.  Non-performing assets were $5.1 million or 0.76% of total assets at March 31, 2016. During the first quarter of 2017, the Bank returned one loan, totaling $687,000, to accruing status and placed three loans totaling $110,000 on non-accrual status. Other changes to non-accrual loan balances resulted from loan payments. 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.  At March 31, 2017, $263,000 or 4.16% of total nonaccrual loans had allocated specific allowances totaling $99,000.  At March 31, 2017, the Bank had no loans 90 days or more past due and still accruing.  At December 31, 2016, the Bank had two loans 90 days or more past due and still accruing that totaled $8,400 and at March 31, 2016, one loan totaling $24,000 was 90 days or more past due and still accruing.   Other real estate owned was $106,000 at March 31, 2017 and $370,000 at December 31, 2016.  Other real estate owned was $571,000 at March 31, 2016. 

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 March 31, 2017, the Company had 23 troubled debt restructurings totaling $5.4 million. All but five of the restructured loans are performing loans. 

The Company realized $440,000 in net recoveries for the quarter ended March 31, 2017 versus $11,000 in net charge-offs for the three months ended December 31, 2016. 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 totaled $34,000 for the quarter ended March 31, 2016.

The amount of provision for loan losses reflects the results of the Bank's analysis used to determine the adequacy of the allowance for loan losses.  The Company had negative provisions for loan losses of $527,000 for the three months ended March 31, 2017, compared to negative provisions of $142,000 for the quarter ended December 31, 2016. The provisions for loan losses for the quarter ended March 31, 2016 were $79,000.  The ratio of allowance for loan losses to total nonaccrual loans was 69.7% at March 31, 2017. The ratio of allowance for loan losses to total nonaccrual loans was 64.4% and 112.3% at December 31, 2016 and March 31, 2016, respectively.  At March 31, 2017, impaired loans totaled $12.0 million and had related specific allocations of $366,000.  At December 31, 2016, impaired loans totaled $13.4 million and had related specific allocations of $385,000. At March 31, 2016, total impaired loans were $12.7 million and required specific allocations of $546,000.

Total Consolidated Assets

Total consolidated assets of the Company at March 31, 2017 were $705.1 million, which represented an increase of $5.0 million or 0.7% from total assets of $700.1 million at December 31, 2016. At March 31, 2016, total consolidated assets were $664.3 million. Securities available for sale increased $12.1 million from $120.3 million at December 31, 2016.  Total loans decreased from $516.9 million at December 31, 2016 to $514.9 million at March 31, 2017.  At March 31, 2016, total investment securities were $102.3 million and total loans were $511.0 million.

Deposits and Other Borrowings 

Total deposits increased $12.0 million from $603.9 million at December 31, 2016 to $615.9 million at March 31, 2017. At March 31, 2016, total deposits were $559.4 million.  The Company held no brokered deposits for any of the above-mentioned periods.  

The Company had no borrowings with the Federal Home Loan Bank of Atlanta at March 31, 2017 and December 31, 2016.  Borrowings with the Federal Home Loan Bank of Atlanta were $20.0 million at March 31, 2016.    

Equity

Shareholders' equity at March 31, 2017 was $80.5 million and $79.4 million at December 31, 2016. Shareholder's equity was $79.8 million at March 31, 2016.  The book value of the Company at March 31, 2017 was $23.32 per common share. Total common shares outstanding were 3,476,553 at March 31, 2017.  On April 19, 2017, the board of directors declared a $0.22 per common share cash dividend for shareholders of record as of May 1, 2017 and payable on May 15, 2017.

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, 2016, and other filings with the Securities and Exchange Commission.

EAGLE FINANCIAL SERVICES, INC.
KEY STATISTICS	For the Three Months Ended
	1Q17		4Q16		3Q16		2Q16		1Q16
Net Income (dollars in thousands)	$          2,044		$          1,806		$          1,428		$          1,611		$          1,525
Earnings per share, basic	$            0.59		$            0.52		$            0.40		$            0.46		$            0.43
Earnings per share, diluted	$            0.59		$            0.52		$            0.40		$            0.46		$            0.43
Return on average total assets	1.20%		1.07%		0.85%		0.97%		0.89%
Return on average total equity	10.40%		9.00%		7.03%		8.07%		7.42%
Dividend payout ratio	37.29%		4.23%		50.00%		43.48%		46.51%
Fee revenue as a percent of total revenue	19.21%		19.82%		21.17%		20.56%		18.68%
Net interest margin(1)	4.09%		4.01%		3.94%		4.16%		4.09%
Yield on average earning assets	4.21%		4.14%		4.10%		4.35%		4.30%
Yield on average interest-bearing liabilities	0.21%		0.23%		0.25%		0.31%		0.32%
Net interest spread	4.00%		3.92%		3.85% Werbung Mehr Nachrichten zur Eagle Fincl Services Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:17 - dpa-AFX Sparkurs zeigt Wirkung: UPS schneidet nicht so schlecht ab wie befürchtet 11:46 - dpa-AFX ROUNDUP: Hamborner Reit startet mit Gewinnplus ins Jahr - Indexmieten helfen 08:15 - PR Newswire BlackRock Frontiers Investment Trust Plc - Mandatory closed period - Compliance with Market Abuse Regulations Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59