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

Total interest expense was $351,000 for the three months ended September 30, 2017 and $248,000 for the same period ended June 30, 2017. The average cost of interest bearing liabilities increased 11 basis points when comparing the quarter ended September 30, 2017 to the quarter ended June 30, 2017.  The average balance of interest bearing liabilities increased $18.9 million from the quarter ended June 30, 2017.  These increases resulted mostly from increased cost of time deposits and the borrowing of funds from the Federal Home Loan Bank of Atlanta during the period. The net interest margin was 4.12% for the quarter ended September 30, 2017 and 4.15% for the quarter ended June 30, 2017.  For the quarter ended September 30, 2016, total interest expense was $242,000 and the net interest margin was 3.94%.

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 unchanged at $1.6 million from the quarter ended June 30, 2017 and decreased $70,000 when compared to the quarter ended September 30, 2016. This decrease resulted mostly from the decrease in income from fiduciary activities. The amount of income from fiduciary activities is determined by the number of active accounts and total assets under management. Also, income can fluctuate due to the number of estates settled within any period.   

Noninterest expense was $5.9 million for the quarter ended September 30, 2017.  This represents an increase of $162,000 or 2.82% from $5.7 million for the quarter ended June 30, 2017. Much of this increase was driven from the increase in salaries and employee benefits expense. Salaries and employee benefits increased $149,000 from the quarter ended June 30, 2017 to September 30, 2017.  Several items in this line item marginally increased during the quarter, including salaries, payroll taxes, deferred compensation expense as well as the Company's employee 401(k) matching expense.  Noninterest expense increased $37,000 or 0.63% when compared to $5.9 million for the quartered ended September 30, 2016. 

Asset Quality and Provision for Loan Losses

Nonperforming 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 decreased from $5.7 million or 0.77% of total assets at June 30, 2017 to $5.2 million or 0.71% of total assets at September 30, 2017. This decrease resulted mostly from the decrease in non-accrual loans. During the third quarter of 2017, two loans totaling $267,000 were placed on nonaccrual status.  Additionally, several nonaccrual loans, totaling approximately $743,000 were either returned to accruing status or charged off during the quarter. The majority of the non-accrual loans at September 30, 2017 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 or sold during the third quarter of 2017. Loans greater than 90 days past due and still accruing increased from zero at June 30, 2017 to $19,000 at September 30, 2017. Nonperforming assets were $8.4 million or 1.26% of total assets at September 30, 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 September 30, 2017, the Company had 20 troubled debt restructurings totaling $4.4 million and all but one loan, totaling $46,000, are performing loans.

The Company realized $40,000 in net recoveries for the quarter ended September 30, 2017 versus net recoveries of $219,000 for the three months ended June 30, 2017.   Improving asset quality remains a focus of the Company. Necessary resources continue to be devoted to the ongoing review of the loan portfolio and the workouts of problem assets to minimize any losses to the Company. Management will continue to monitor delinquencies, risk rating changes, charge-offs, market trends and other indicators of risk in the Company's portfolio, particularly those tied to residential and commercial real estate, and adjust the allowance for loan losses accordingly.  Net charge offs for the quarter ended September 30, 2016 were $189,000.

The Company recorded a negative provision for loan losses of $2,000 and $230,000 for the quarters ended September 30, 2017 and June 30, 2017, respectively, while a negative provision of $125,000 was recorded for the quarter ended September 30, 2016.  The allowance for loan losses was $4.4 million, or 0.80% of total outstanding loans, at September 30 and June 30, 2017.  The allowance for loan losses was $4.7 million or 0.91% of total assets at September 30, 2016.  The amount of provision for loan losses during each quarter reflects the results of the Bank's analysis used to determine the adequacy of the allowance for loan losses.  The Company is committed to maintaining an allowance at a level that adequately reflects the risk inherent in the loan portfolio. 

Total Consolidated Assets

Total consolidated assets of the Company at September 30, 2017 were $738.6 million, which represented a decrease of $5.5 million or 0.74% from total assets of $744.0 million at June 30, 2017. This decrease resulted from decreases in both the securities and loan portfolios.   During the third quarter of 2017, approximately $5.8 million of investment securities had either been called, sold or matured. At September 30, 2016, total consolidated assets were $668.4 million. Total loans decreased from $554.2 million at June 30, 2017 to $552.2 million at September 30, 2017. Total loans were $514.3 million at September 30, 2016.

Deposits and Other Borrowings

Total deposits increased $13.2 million to $645.2 million at September 30, 2017 from $632.0 million at June 30, 2017. At September 30, 2016, total deposits were $581.0 million.  There were no outstanding borrowings with the Federal Home Loan Bank of Atlanta at September 30, 2017 and September 30, 2016.  For the quarter ended June 30, 2017 there were $20.0 million in outstanding borrowings with the Federal Home Loan Bank of Atlanta.

Equity

Shareholders' equity at September 30, 2017 was $83.6 million, reflecting an increase of $383,000 from $83.2 million at June 30, 2017. At September 30, 2016 shareholders' equity was $80.7 million. The book value of the Company at September 30, 2017 was $24.31 per common share. Total common shares outstanding were 3,456,430 at September 30, 2017.  On October 18, 2017, the board of directors declared a $0.22 per common share cash dividend for shareholders of record as of November 3, 2017 and payable on November 17, 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
	3Q17		2Q17		1Q17		4Q16		3Q16
Net Income (dollars in thousands)	$          2,007		$          2,026		$          2,044		$          1,806		$          1,428
Earnings per share, basic	$            0.58		$            0.58		$            0.59		$            0.52		$            0.40
Earnings per share, diluted	$            0.58		$            0.58		$            0.59		$            0.52		$            0.40
Return on average total assets	1.07%		1.19%		1.20%		1.07%		0.85%
Return on average total equity	9.56%		9.96%		10.40%		9.00%		7.03%
Dividend payout ratio	37.93%		37.93%		37.29%		42.31%		50.00%
Fee revenue as a percent of total revenue	18.37%		18.69%		19.21%		19.82%		21.17%
Net interest margin(1)	4.12%		4.15%		4.09%		4.01%		3.94%
Yield on average earning assets	4.32%		4.30%		4.21%		4.14%		4.10%
Yield on average interest-bearing liabilities	0.32%		0.21%		0.21%		0.23%		0.25%
Net interest spread	4.00%		4.09%		4.00%		3.92%		3.85%
Tax equivalent adjustment to net interest income (dollars in thousands) 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 24.04.24 - PR Newswire Fidelity China Special Situations Plc - Transaction in Own Shares 24.04.24 - PR Newswire Fidelity Emerging Markets Ltd - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59