Eagle Financial Services (EFSI) Q4 2021 earnings summary

Executive summary

• Net income for Q4 2021 was $2.3 million, down 20.7% from Q3 2021 and 8.9% from Q4 2020, mainly due to increased legal expenses offset by higher net interest income.

• Basic and diluted EPS for Q4 2021 was $0.66.

• Deposit growth reached $46.6 million in the quarter, with total deposits at $1.18 billion.

• Loan portfolio saw net growth of $62.6 million, with $13.0 million in PPP loans forgiven and $64.9 million in loans sold.

• Noninterest income increased, driven by gains on loan sales and higher fiduciary income.

Financial highlights

• Net interest income for Q4 2021 was $11.1 million, up from $10.4 million in Q3 2021 and $9.4 million in Q4 2020.

• Net interest margin was 3.67% in Q4 2021, compared to 3.56% in Q3 2021 and 3.63% in Q4 2020.

• Noninterest income was $3.4 million, up 16.7% sequentially and 49% year-over-year, mainly from loan sale gains.

• Noninterest expense rose to $11.9 million, up 24.8% from Q3 2021 and 46.9% from Q4 2020, due to one-time legal costs and higher salaries.

• Return on average assets was 0.70% and return on average equity was 8.20% for Q4 2021.

Outlook and guidance

• Excluding one-time legal expenses, annualized EPS would have been $1.13 and net income $14.5 million.

• Focus remains on diversifying revenue streams and expanding business lines.