Eagle Financial Services (EFSI) Q3 2021 earnings summary

Executive summary

• Net income for Q3 2021 was $2.9 million, down 4.3% from Q2 2021 and 15.6% from Q3 2020, mainly due to higher noninterest expenses as the company invests in growth.

• Quarterly dividend of $0.28 per share declared, payable November 19, 2021.

• Record net loan growth of $45.8 million (14% annualized), with core deposit growth at 11% annualized.

• Assets under management in Eagle Investment Group increased by $169 million (91% over June 2021).

Financial highlights

• Net interest income rose to $10.4 million in Q3 2021 from $10.0 million in Q2 2021 and $9.5 million in Q3 2020.

• Basic and diluted EPS were $0.83, compared to $0.87 in Q2 2021 and $0.99 in Q3 2020.

• Noninterest income increased to $2.9 million, up 8.7% from Q2 2021 and 31% from Q3 2020, driven by loan sales and higher ATM and fiduciary income.

• Noninterest expense rose 9.1% sequentially and 27.6% year-over-year, mainly due to higher salaries, benefits, and insurance costs.

• Net interest margin was 3.56%, unchanged from Q2 2021 but down from 3.86% in Q3 2020.

Outlook and guidance

• Continued focus on organic loan and deposit growth, expansion into new markets, and fee income growth through loan sales and investment group activities.