Eagle Financial Services, Inc. Announces 2018 First Quarter Dividend And Financial Results

Total interest expense for the three months ended March 31, 2018 was $426,000, an increase of $74,000 from the quarter ended December 31, 2017.  Total interest expense increased $223,000 when comparing the quarter ended March 31, 2018 to the same period in 2017. Much of that increase resulted from increased deposit rates on several bank deposit products. The average cost of interest bearing liabilities increased seven basis points when comparing the quarter ended March 31, 2018 to the quarter ended December 31, 2017.  The average balance of interest bearing liabilities increased $6.0 million from the quarter ended December 31, 2017.  The average cost of interest bearing liabilities increased 19 basis points when comparing the quarter ended March 31, 2018 to the quarter ended March 31, 2017.  The average balance of interest bearing liabilities increased $30.8 million from the quarter ended March 31, 2017.  As interest rates continue to rise, the Company will continue to steadfastly manage the cost of its interest-bearing deposits. The net interest margin was 4.05% for the quarter ended March 31, 2018 and 4.03% for the quarter December 31, 2017.  For the quarter ended March 31, 2017 the net interest margin was 4.09%.

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 21%.

Noninterest income was $1.8 million for the quarter ended March 31, 2018 and $1.9 million for the quarter ended December 31, 2017. Noninterest income for the quarter ended March 31, 2017 was $1.7 million.

Noninterest expense was $5.6 million for the quarter ended March 31, 2018.  This represents a decrease of $193,000 or 3.3% from $5.8 million for the quarter ended December 31, 2017.  Much of this decrease resulted from a $397,000 gain recognized upon the foreclosure of residential real estate collateral during the quarter. On February 14, 2018, the Bank took ownership of an approximate 38-acre residential property located in Northern Loudoun County, Virginia. The property has a current appraised value of $3.4 million and after consideration of estimated selling costs, was recorded as other real estate owned of $3.2 million.  Additionally, approximately $130,000 in other real estate owned expenses were incurred with this foreclosure during the quarter ended March 31, 2018. Noninterest expense decreased $79,000 or 1.4% when comparing the quarter ended March 31, 2018 to the same time period in 2017.

Income tax expense was $476,000 for the quarter ended March 31, 2018.  This represents a decrease of $721,000 or 60.2% from $1.2 million for the quarter ended December 31, 2017. Much of this decrease resulted from the adjustment of $430,152 to federal income tax expense during the quarter ended December 31, 2017 in response to the Tax Cuts and Jobs Act being signed into law on December 22, 2017.  Income tax expense decreased $334,000 or 41.2% when comparing the quarter ended March 31, 2018 to the same period in 2017.  As a result of the Tax Cuts and Jobs Act, the Company expects to be subject to a lower income tax rate.   

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 $6.4 million or 0.84% of total assets at December 31, 2017 to $5.1 million or 0.66% of total assets at March 31, 2018. This decrease resulted mostly from decreases in nonaccrual loans.  Non-performing assets were $6.4 million or 0.91% of total assets at March 31, 2017. During the first quarter of 2018, five loans totaling approximately $4.5 million were removed from nonaccrual status by fact of being paid off or charged off, and one loan totaling $156,000 was placed 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, 2018, the Bank had $18,000 of loans 90 days or more past due and still accruing.  At December 31, 2017, and March 31, 2017, the Bank had no loans 90 days or more past due and still accruing.  Other real estate owned was $3.3 million at March 31, 2018 and $106,000 at December 31, 2017 and March 31, 2017.  On February 14, 2018, the Bank took ownership of an approximate 38-acre residential property located in Northern Loudoun County, Virginia. The property has a current appraised value of $3.4 million and after consideration of estimated selling costs was recorded as other real estate owned of $3.2 million.

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, 2018, the Company had 19 troubled debt restructurings totaling $4.3 million. All but one of the restructured loans are performing loans. 

The Company realized $86,000 in net charge offs for the quarter ended March 31, 2018 versus $98,000 in net charge-offs for the three months ended December 31, 2017. The Company realized $440,000 in net recoveries for the quarter ended March 31, 2017.  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 provisions for loan losses for the quarter ended March 31, 2018 and December 31, 2017, were $205,000 and $134,000, respectively. The Company had negative provisions for loan losses of $527,000 for the three months ended March 31, 2017.  The ratio of allowance for loan losses to total loans was 0.78% at March 31, 2018 and December 31, 2017.  The ratio of allowance for loan losses to total loans was 0.85% at March 31, 2017.  The ratio of allowance for loan losses to total nonaccrual loans was 251.7% at March 31, 2018. The ratio of allowance for loan losses to total nonaccrual loans was 69.6% and 69.7% at December 31, 2017 and March 31, 2017, respectively.  At March 31, 2018, impaired loans totaled $6.7 million and had related specific allocations of $326,000.  At December 31, 2017, impaired loans totaled $11.4 million and had related specific allocations of $458,000. At March 31, 2017, total impaired loans were $12.0 million and required specific allocations of $366,000.

Total Consolidated Assets

Total consolidated assets of the Company at March 31, 2018 were $775.9 million, which represented an increase of $10.1 million or 1.32% from total assets of $765.8 million at December 31, 2017. At March 31, 2017, total consolidated assets were $705.1 million. Securities available for sale decreased $3.7 million from $133.7 million at December 31, 2017.  Total loans increased from $568.8 million at December 31, 2017 to $581.6 million at March 31, 2018.  At March 31, 2017, total investment securities were $132.4 million and total loans were $519.4 million.

Deposits and Other Borrowings

Total deposits increased $22.2 million from $663.4 million at December 31, 2017 to $685.6 million at March 31, 2018. At March 31, 2017, total deposits were $615.9 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, 2018, December 31, 2017 and March 31, 2017.      

Equity

Shareholders' equity at March 31, 2018 was $83.1 million and $83.8 million at December 31, 2017. Shareholder's equity was $80.5 million at March 31, 2017.  The book value of the Company at March 31, 2018 was $24.12 per common share. Total common shares outstanding were 3,466,117 at March 31, 2018.  On April 18, 2018, the board of directors declared a $0.23 per common share cash dividend for shareholders of record as of April 30, 2018 and payable on May 14, 2018.

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, 2017, and other filings with the Securities and Exchange Commission.

EAGLE FINANCIAL SERVICES, INC.
KEY STATISTICS	For the Three Months Ended
	1Q18		4Q17		3Q17		2Q17		1Q17
Net Income (dollars in thousands)	$          2,539		$          1,709		$          2,007		$          2,026		$          2,044
Earnings per share, basic	$            0.73		$            0.49		$            0.58		$            0.58		$            0.59
Earnings per share, diluted	$            0.73		$            0.49		$            0.58		$            0.58		$            0.59
Return on average total assets	1.36%		0.91%		1.07%		1.19%		1.20%
Return on average total equity	12.40%		8.11%		9.56%		9.96%		10.40%
Dividend payout ratio	31.51%		44.90%		37.93%		37.93%		37.29%
Fee revenue as a percent of total revenue	19.36%		18.40%		18.37%		18.69%		19.21%
Net interest margin(1)	4.05%		4.03%		4.12%		4.15%		4.09%
Yield on average earning assets	4.29%		4.23%		4.32%		4.30%		4.21%
Yield on average interest-bearing liabilities	0.40%		0.33%		0.32%		0.21%		0.21%
Net interest spread	3.88%		3.90%		4.00% 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 13:22 - ARIVA.DE Redaktion Airbus-Aktie verliert 2,38 Prozent (158,30 €) 07:47 - PR Newswire Everest Global Plc - Result of AGM 02:00 - PR Newswire International Business Machines Corp - Doc re Form 8-K SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59