#United States #Berryville #Q4 2024 #Eagle Financial #Bank of Clarke

Eagle Financial Services, Inc. Reports Outstanding Fourth Quarter Results for 2024

Eagle Financial Services, Inc. (OTCQX: EFSI), the holding entity for the Bank of Clarke, released its financial results for the fourth quarter of 2024, revealing a significant improvement in performance metrics compared to previous quarters.

On January 22, 2025, the company’s Board of Directors declared a quarterly common stock cash dividend of $0.31 per share, marking an increase amid a buoyant financial outlook. This dividend will be paid to shareholders on February 14, 2025, for those on record as of February 3, 2025.

Key Financial Highlights

The figures disclosed indicate a net income of $6.2 million in Q4 2024, a remarkable leap from $3.4 million earned in Q3 2024. This performance underscores the effectiveness of the company's strategic initiatives. Key financial highlights include:

• - Earnings per Share: An increase to $1.74 for Q4 2024, from $0.86 in Q3.
• - Deposit Growth: The total deposits saw a growth of $29.2 million, equivalent to 1.9% for the quarter.
• - Net Interest Income: The net interest income showed an increase of 2.6% from Q3 2024, accumulating to $13.5 million.
• - Loans Sold: Revenue from mortgage loans amounted to $18.6 million and SBA loans yielded $7.4 million with a combined gain of $861 thousand recognized.

Earnings and Revenue

The increase in net income can significantly be traced back to the rise in noninterest income, particularly as a result of a profitable sale-leaseback transaction of the Old Town Center building. If we factor in this one-time gain from the transaction, the company’s core earnings reflect a slight decrease compared to the prior quarter, yet overall well-established stability in income generation is evident.

Moreover, net interest margin remained steady at 3.03%, highlighting the firm’s ability to maintain profitability through targeted lending strategies. The total loan interest income marked an increase of 8.9% year-over-year, driven by a favorable interest rate environment and rising loan volumes.

Asset Management and Credit Quality

Eagle Financial's total consolidated assets as of December 31, 2024, stood at approximately $1.87 billion, reflecting a minor decline due to a decrease in net loans. Despite this, the company reported a substantial year-over-year increase in deposits. The firm has also demonstrated diligent management of non-performing assets, which accounted for 0.16% of total assets, illustrating prudent risk management strategies in an evolving market.

Notably, the company recorded net charge-offs of $486 thousand for Q4, a reduction from the previous quarter’s $1.2 million. This indicates improved credit screening and oversight within the lending portfolio. Management continues to monitor the economic conditions affecting borrowers closely.

Liquidity and Capital Adequacy

Eagle Financial maintains an ample liquidity profile with liquid assets exceeding uninsured deposits by $557.5 million, ensuring robust capital to meet financial obligations. The company’s capital base has also strengthened, with total equity growing by $10.6 million year-over-year, which is a testament to sound financial management and profitability.

Concluding Remarks

Brandon Lorey, President and CEO, credited the exemplary efforts of the team in achieving these strong results during a complex economic period. He acknowledged the focus on expanding the client base, enhancing operational efficiency, and delivering sustainable value to shareholders. This underscores the commitment of Eagle Financial Services to foster growth, adapt to market fluctuations, and maintain competitive advantage in financial services.

As we move into 2025, these results position Eagle Financial Services, Inc. favorably within the financial sector, and analysts remain optimistic about the company’s continued success and responsive strategies in the forthcoming fiscal year.