Exhibit 99.1
EAGLE FINANCIAL SERVICES, INC.
ANNOUNCES 2015 FOURTH QUARTER
AND ANNUAL EARNINGS
| | | | |
| Contact: | | Kathleen J. Chappell, Vice President and CFO | | 540-955-2510 |
| | | | kchappell@bankofclarke.com |
BERRYVILLE, VIRGINIA(February 3, 2016) – Eagle Financial Services, Inc. (OTCQX:EFSI), the holding company for Bank of Clarke County, whose divisions include Eagle Investment Group, announces its 2015 fourth quarter and annual profits.
Fourth Quarter and Annual 2015 Highlights:
| | | | | | | | |
| | | Q4 | | | Annual | |
Net income (000’s) | | $ | 1,355 | | | $ | 6,897 | |
Diluted EPS | | $ | 0.38 | | | $ | 1.97 | |
Dividend, per common share | | $ | 0.20 | | | $ | 0.80 | |
Net Interest Margin | | | 3.97 | % | | | 4.04 | % |
Net Loan Growth (000’s) | | $ | 4,357 | | | $ | 25,753 | |
Decrease in Nonperforming Assets | | $ | 1,359 | | | $ | 6,651 | |
Allowance for loan losses to total loans | | | | | | | 1.00 | % |
John R. Milleson, President and CEO, stated, “I am very proud to announce continued strong earnings for the quarter and year ended December 31, 2015. During 2015, the Company had made substantial investments in customer product and service initiatives not only in our existing markets of Clarke and Frederick Counties, the City of Winchester and Town of Berryville, but also in our growth market of Eastern Loudoun County. It is gratifying to see the public’s support of the two retail branches that were opened in Ashburn at One Loudoun and Leesburg, Virginia during 2015. Their growth, coupled with that of our existing branches and business lines, allow us to make the investments needed to stay competitive and attentive to our customers and their financial needs. Additionally, I’m encouraged by the improvement in asset quality during 2015. The Company continues to keep asset quality as a primary focus and works diligently to address its level of nonperforming assets. And finally, as I have stated for many, many years, I am extremely pleased with the Company’s ability to increase its annual dividend to shareholders for the 29th consecutive year.”
Income Statement Review
Net income was $6.9 million for the year ended December 31, 2015 which represented a decrease of 3.4% when compared to net income in 2014. Net income for the quarter ended December 31, 2015 was $1.4 million reflecting a decrease of 44.3% from the quarter ended December 31, 2014. This decrease resulted mostly from fewer gains realized on the sales of investment securities. Approximately $897,000 in net gains had been realized on the sales of investment securities during the fourth quarter of 2014.
Net interest income for the quarter ended December 31, 2015 was $5.9 million and $5.6 million for the same period in 2014. Net interest income for the year ended December 31, 2015 was $23.1 million which represented an increase of 0.9% when compared to $22.9 million in 2014. This increase in net interest income for the year resulted mainly from the decreased costs of the Company’s interest bearing liabilities.
Total loan interest income was $5.5 million for the quarter ended December 31, 2015 and $5.4 million for the quarter ended December 31, 2014. Total loan interest income was $21.8 million for the year ended December 31, 2015, reflecting an increase of $56,000 from the year ended December 31, 2014. Average loans for the quarter ended December 31, 2015 were $491.1 million compared to $470.6 million for the same period in 2014. Average loans for the year ended December 31, 2015 were $479.1 million compared to $461.8 million for 2014. The tax equivalent yield on average loans for the quarter ended December 31, 2015 was 4.4%, down 13 basis points from the same time period in 2014. The tax equivalent yield on average loans for the year ended December 31, 2015 was 4.56%, down 16 basis points from 2014. Interest income from the investment portfolio was $689,000 thousand for the quarter ended December 31, 2015, reflecting an increase of 3.6% when compared to $665,000 for the same period in 2014. Interest income from the investment portfolio was $2.7 million for the year ended December 31, 2015 and $3.1 million for the same period in 2014. Average investments for the quarter ended December 31, 2015 were $104.0 million compared to $95.7 million for the same period in 2014. Average investments for the year ended December 31, 2015 were $102.8 million compared to $101.8 million for 2014. The tax
equivalent yield on average investments for the quarter ended December 31, 2015 was 3.1%, down 21 basis points from the same time period in 2014. The tax equivalent yield on average investments for the year ended December 31, 2015 was 3.13%, down 52 basis points from 2014.
Total interest expense was $302,000 for the three months ended December 31, 2015 and $448,000 for three months ended December 31, 2014. Total interest expense for the year ended December 31, 2015 was $1.3 million, representing a decrease of $564,000 or 29.5% from the year ended December 31, 2014. The average cost of interest bearing liabilities decreased 15 basis points when comparing the quarter ended December 31, 2015 to the same time period in 2014. The average cost of interest bearing liabilities decreased 15 basis points when comparing the year ended December 31, 2015 to the same time period in 2014. The average balance of interest bearing liabilities decreased $1.2 million from the quarter ended December 31, 2014 to the same period in 2015. Although average balances of interest bearing deposits had increased by nearly $15.0 million when comparing the quarter ended December 31, 2015 to the same period in 2014, the combined decrease in Federal Home Loan Bank advances and trust preferred capital notes resulted in a net decrease in total interest bearing liabilities. On July 29, 2015, the pool to which the Company’s $7.0 million in outstanding trust preferred capital notes belonged was liquidated by means of auction. The Company was successful in purchasing the outstanding notes at a price of 65.375% of par or $4.6 million in cash. The average balance of interest bearing liabilities increased $1.1 million from the year ended December 31, 2014 to the same period in 2015. This increase resulted from the growth in interest bearing non-maturity deposits.
The net interest margin was 3.97% for the quarter ended December 31, 2015. When compared to the quarter ended December 31, 2014, the net interest margin decreased three basis points. The net interest margin was 4.04% for the year ended December 31, 2015. When compared to the year ended December 31, 2014, the net interest margin decreased 16 basis points. This decrease was attributable to the decreased yield on interest earning assets as higher yielding assets had been repriced or replaced at lower current market rates.
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 $1.3 million for the quarter ended December 31, 2015 and $2.2 million for the same period in 2014. During the fourth quarter of 2014, the Company realized $897,000 in net gains on the sales of investment securities. Noninterest income was $8.4 million for the year ended December 31, 2015 and $6.6 million for the same period in 2014. This increase resulted mostly from the $2.4 million net gain realized on the redemption of outstanding trust preferred capital notes. On July 29, 2015, the pool to which the Company’s $7.0 million in outstanding trust preferred capital notes belonged was liquidated by means of auction. The Company was successful in purchasing the outstanding notes at a price of 65.375% of par or $4.6 million in cash. Other contributions to the year over year increase in noninterest income resulted from the increases in income from fiduciary activities and other service charges and fees. Income from fiduciary activities increased $176,000 or 15.2% when comparing the year ended December 31, 2015 to the same period in 2014. This increase results mostly from one time fees that were collected during the year. Other service charges and fees increased $380,000 or 12.7% from the year ended December 31, 2105 to the same period in 2014. This increase was driven mostly by the increase in commissions from non-deposit investment sales.
Noninterest expense increased $930,000, or 19.2%, to $5.8 million for the quarter ended December 31, 2015 from $4.8 million for the quarter ended December 31, 2014. Several items contributed to this increase including the recording of a $235,000 valuation allowance for other real estate owned, increased salary and occupancy expenses related to the opening of two new retail branches in April and November of 2015. The Company’s One Loudoun branch in Ashburn, Virginia opened in April of 2015 while the Market Street branch in Leesburg, Virginia opened in November of 2015. Salaries and employee benefits related to the two new branches for the quarter ended December 31, 2015 totaled $320,000. Occupancy expenses related to the One Loudoun and Market Street branches totaled $122,000 for the quarter ended December 31, 2015. Additionally, during the quarter ended December 31, 2015, increases related to various computer and technology expenses were incurred, including those related to online and mobile banking as well as EMV chip card technology.
Noninterest expense increased $2.5 million to $22.5 million for the year ended December 31, 2015 when compared to $20.0 million for the same period in 2014. Much of this increase resulted from the increase in salary and employee benefit expense. Salary and employee benefit expense increased $891,000 when comparing the year ended December 31, 2015 to the same period in 2014. The majority of this increase results from the hiring of new employees. The Company had hired additional retail staff for the opening of two new retail branches. Five new employees were hired for the One Loudoun branch, located in Ashburn, Virginia. The second new branch, located in Leesburg, Virginia, opened during November 2015. Beginning in February 2015, seven fulltime employees had been hired for that facility. Additionally, in February 2015, with the decision to no longer outsource its internal audit function, the Company hired a Director of Internal Auditor. Additional hires of middle management positions were also made during 2015 to address infrastructure
and growth needs. Occupancy and equipment expenses increased $283,000 and $382,000, respectively, when comparing the year ended December 31, 2015 to the same period in 2014. The majority of the increase in Occupancy expense results from the opening of the additional two retail branches during 2015. The Occupancy expense related to those branches for the year ended December 31, 2015 totaled $327,000. Equipment expense for the new branches for the year ended December 31, 2015, totaled $102,000. The remainder of the increase in Equipment expense results from various investments in technology to address the Company’s growth. Other real estate owned expense increased $309,000 when comparing the year ended December 31, 2015 to the same period in 2014. The majority of this increase relates to a valuation allowance of $235,000 that was established for real estate that was foreclosed upon in November of 2015. Other operating expenses increased $578,000 when comparing the year ended December 31, 2015 to the same period in 2014. On June 10, 2015, the Company purchased the land on which one of its retail branches resided. The land was purchased subject to an existing lease and subsequently recorded at market value, resulting in a $520,000 write down of the total purchase price. Increases in the aforementioned categories also contributed to the year over year increase in noninterest expense.
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 $12.8 million or 2.04% of total assets at December 31, 2014 to $6.2 million or 0.95% of total assets at December 31, 2015. This decrease resulted mostly from the decrease in nonaccrual loans. Total nonaccrual loans totaled $5.3 million at December 31, 2015 and $10.7 million at December 31, 2014. This decreased in nonaccrual loans resulted from the combination of returning qualifying loans to accruing status, loan payments and loan charge offs. The majority of the nonaccrual loans are secured by real estate and 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. Loans greater than 90 days past due and still accruing increased from $6,000 at December 31, 2014 to $307,000 at December 31, 2015. Other real estate owned decreased from $2.1 million at December 31, 2014 to $571,000 at December 31, 2015. During 2015, the Company foreclosed on five pieces of real estate totaling $910,000.00 and sold 11 pieces of other real estate owned totaling $2.2 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 December 31, 2015, the Company had 23 troubled debt restructurings totaling $7.2 million. Approximately $6.7 million or 21 loans are performing loans, while the remaining loans are on non-accrual status. At December 31, 2014, the Company had 25 troubled debt restructurings totaling $7.8 million. Approximately $6.3 million or 17 loans were performing loans, while the remaining loans are on non-accrual status.
The Company realized $44,000 in net recoveries for the quarter ended December 31, 2015 versus net charge offs of $857,000 for the three months ended December 31, 2014. The Company recognized a negative provision for loan losses totaling $250,000 and $227,000 for the quarter and year ended December 31, 2015, respectively. A $350,000 provision for loan losses was recorded for the three months and year ended December 31, 2014. The ratio of allowance for loan losses to total loans was 1.00% at December 31, 2015 and 1.08% at December 31, 2014. The ratio of allowance for loan losses to total nonaccrual loans was 93.81% at December 31, 2015 and 47.45% at December 31, 2014. 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. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential 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 December 31, 2015 were $651.7 million, which represented an increase of $24.8 million or 4.0% from total assets of $626.8 million at December 31, 2014. Total loans increased $25.8 million from $469.8 million at December 31, 2014 to $495.6 million at December 31, 2015. Total securities increased $10.7 million from $97.0 million at December 31 2014, to $107.7 million at December 31, 2015.
Deposits and Other Borrowings
Total deposits, which include brokered deposits, increased $46.9 million to $550.7 million at December 31, 2015 from $503.8 million at December 31, 2014. The Company held $11.0 million in brokered deposits at December 31, 2015 and 2014. Borrowings with the Federal Home Loan Bank of Atlanta were $20.0 million at December 31, 2015 and $40.0 million at December 31, 2014.
Equity
Shareholders’ equity was $78.2 million at December 31, 2015 and $73.1 million at December 31, 2014. The book value of the Company at December 31, 2015 was $22.25 per common share. Total common shares outstanding were 3,517,648 at December 31, 2015. On January 20, 2016, the board of directors declared a $0.20 per common share cash dividend for shareholders of record as of February 3, 2016 and payable on February 17, 2016.
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, 2014, and other filings with the Securities and Exchange Commission.
EAGLE FINANCIAL SERVICES, INC.
KEY STATISTICS
| | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | |
| | | 4Q15 | | | 3Q15 | | | 2Q15 | | | 1Q15 | | | 4Q14 | |
Net Income(dollars in thousands) | | $ | 1,355 | | | $ | 3,289 | | | $ | 798 | | | $ | 1,455 | | | $ | 2,434 | |
Earnings per share, basic | | $ | 0.38 | | | $ | 0.94 | | | $ | 0.23 | | | $ | 0.42 | | | $ | 0.71 | |
Earnings per share, diluted | | $ | 0.38 | | | $ | 0.94 | | | $ | 0.23 | | | $ | 0.42 | | | $ | 0.70 | |
Return on average total assets | | | 0.84 | % | | | 2.20 | % | | | 0.51 | % | | | 0.96 | % | | | 1.57 | % |
Return on average total equity | | | 6.92 | % | | | 17.26 | % | | | 4.31 | % | | | 8.03 | % | | | 13.43 | % |
Dividend payout ratio | | | 52.63 | % | | | 21.28 | % | | | 86.96 | % | | | 47.80 | % | | | 28.17 | % |
Fee revenue as a percent of total revenue | | | 17.64 | % | | | 16.01 | % | | | 21.42 | % | | | 20.56 | % | | | 15.90 | % |
Net interest margin(1) | | | 3.97 | % | | | 4.07 | % | | | 4.13 | % | | | 4.02 | % | | | 4.00 | % |
Yield on average earning assets | | | 4.17 | % | | | 4.29 | % | | | 4.35 | % | | | 4.30 | % | | | 4.31 | % |
Yield on average interest-bearing liabilities | | | 0.31 | % | | | 0.33 | % | | | 0.35 | % | | | 0.42 | % | | | 0.46 | % |
Net interest spread | | | 3.85 | % | | | 3.96 | % | | | 4.00 | % | | | 3.88 | % | | | 3.85 | % |
Tax equivalent adjustment to net interest income (dollars in thousands) | | $ | 151 | | | $ | 155 | | | $ | 152 | | | $ | 161 | | | $ | 173 | |
Non-interest income to average assets | | | 0.83 | % | | | 2.39 | % | | | 1.06 | % | | | 1.07 | % | | | 1.43 | % |
Non-interest expense to average assets | | | 3.58 | % | | | 3.44 | % | | | 3.95 | % | | | 3.32 | % | | | 3.12 | % |
Efficiency ratio(2) | | | 78.51 | % | | | 55.56 | % | | | 80.78 | % | | | 68.98 | % | | | 60.57 | % |
| (1) | The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent 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 rate utilized is 34%. See the table below for the quarterly tax equivalent net interest income and the reconciliation of net interest income to tax equivalent net interest income. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns a fair amount of nontaxable interest income due to the mix of securities in its investment security portfolio, net interest income for the ratio is calculated on a tax equivalent basis as described above. |
| (2) | The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio and sales of repossessed assets. The tax rate utilized is 34%. See the table below for the quarterly tax equivalent net interest income and a reconciliation of net interest income to tax equivalent net interest income. The Company calculates this ratio in order to evaluate its overhead structure or how effectively it is operating. An increase in the ratio from period to period indicates the Company is losing a larger percentage of its income to expenses. The Company believes that the efficiency ratio is a reasonable measure of profitability. |
EAGLE FINANCIAL SERVICES, INC.
SELECTED FINANCIAL DATA BY QUARTER
| | | | | | | | | | | | | | | | | | | | |
| | | 4Q15 | | | 3Q15 | | | 2Q15 | | | 1Q15 | | | 4Q14 | |
BALANCE SHEET RATIOS | | | | | | | | | | | | | | | | | | | | |
Loans to deposits | | | 89.99 | % | | | 93.06 | % | | | 92.97 | % | | | 90.52 | % | | | 93.25 | % |
Average interest-earning assets to average-interest bearing liabilities | | | 157.81 | % | | | 154.19 | % | | | 154.14 | % | | | 151.49 | % | | | 166.86 | % |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
Dividends | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
Book value | | $ | 22.25 | | | $ | 22.25 | | | $ | 21.30 | | | $ | 21.49 | | | $ | 21.01 | |
Tangible book value | | $ | 22.25 | | | $ | 22.25 | | | $ | 21.30 | | | $ | 21.49 | | | $ | 21.01 | |
SHARE PRICE DATA | | | | | | | | | | | | | | | | | | | | |
Closing price | | $ | 23.00 | | | $ | 23.00 | | | $ | 23.50 | | | $ | 24.50 | | | $ | 23.30 | |
Diluted earnings multiple(1) | | | 15.13 | | | | 6.12 | | | | 25.54 | | | | 14.58 | | | | 8.32 | |
Book value multiple(2) | | | 1.03 | | | | 1.03 | | | | 1.10 | | | | 1.14 | | | | 1.11 | |
COMMON STOCK DATA | | | | | | | | | | | | | | | | | | | | |
Outstanding shares at end of period | | | 3,517,648 | | | | 3,508,831 | | | | 3,495,800 | | | | 3,481,774 | | | | 3,463,665 | |
Weighted average shares outstanding | | | 3,512,978 | | | | 3,503,412 | | | | 2,487,215 | | | | 3,477,249 | | | | 3,459,096 | |
Weighted average shares outstanding, diluted | | | 3,512,978 | | | | 3,503,412 | | | | 3,497,065 | | | | 3,485,450 | | | | 3,468,904 | |
CAPITAL RATIOS | | | | | | | | | | | | | | | | | | | | |
Total equity to total assets | | | 12.00 | % | | | 12.16 | % | | | 11.66 | % | | | 12.15 | % | | | 11.67 | % |
CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | |
Net charge-offs to average loans | | | -0.04 | % | | | -0.03 | % | | | -0.05 | % | | | 0.04 | % | | | 0.72 | % |
Total non-performing loans to total loans | | | 1.13 | % | | | 1.16 | % | | | 1.41 | % | | | 1.44 | % | | | 2.28 | % |
Total non-performing assets to total assets | | | 0.95 | % | | | 1.18 | % | | | 1.44 | % | | | 1.47 | % | | | 2.04 | % |
Non-accrual loans to: | �� | | | | | | | | | | | | | | | | | | | |
total loans | | | 1.07 | % | | | 1.15 | % | | | 1.39 | % | | | 1.43 | % | | | 2.28 | % |
total assets | | | 0.81 | % | | | 0.89 | % | | | 1.07 | % | | | 1.07 | % | | | 1.71 | % |
Allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
total loans | | | 1.00 | % | | | 1.05 | % | | | 1.14 | % | | | 1.12 | % | | | 1.08 | % |
non-performing assets | | | 80.45 | % | | | 68.65 | % | | | 60.79 | % | | | 57.17 | % | | | 39.64 | % |
non-accrual loans | | | 93.81 | % | | | 91.03 | % | | | 81.68 | % | | | 78.45 | % | | | 47.45 | % |
NON-PERFORMING ASSETS: | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | |
Loans delinquent over 90 days | | $ | 307 | | | $ | 1 | | | $ | 68 | | | $ | 63 | | | $ | 6 | |
Non-accrual loans | | | 5,285 | | | | 5,673 | | | | 6,778 | | | | 6,593 | | | | 10,706 | |
Other real estate owned and repossessed assets | | | 571 | | | | 1,848 | | | | 2,261 | | | | 2,391 | | | | 2,102 | |
NET LOAN CHARGE-OFFS (RECOVERIES): | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | |
Loans charged off | | $ | 17 | | | $ | 118 | | | $ | 190 | | | $ | 131 | | | $ | 967 | |
(Recoveries) | | | (61 | ) | | | (156 | ) | | | (254 | ) | | | (90 | ) | | | (110 | ) |
Net charge-offs (recoveries) | | | (44 | ) | | | (38 | ) | | | (64 | ) | | | 41 | | | | 857 | |
PROVISION FOR LOAN LOSSES (dollars in thousands) | | | (250 | ) | | $ | (410 | ) | | $ | 300 | | | $ | 133 | | | $ | 350 | |
ALLOWANCE FOR LOAN LOSS SUMMARY | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | | | |
Balance at the beginning of period | | $ | 5,164 | | | $ | 5,536 | | | $ | 5,172 | | | $ | 5,080 | | | $ | 5,587 | |
Provision | | | (250 | ) | | | (410 | ) | | | 300 | | | | 133 | | | | 350 | |
Net charge-offs (recoveries) | | | (44 | ) | | | (38 | ) | | | (64 | ) | | | 41 | | | | 857 | |
Balance at the end of period | | $ | 4,958 | | | $ | 5,164 | | | $ | 5,536 | | | $ | 5,172 | | | $ | 5,080 | |
| (1) | The diluted earnings multiple (or price earnings ratio) is calculated by dividing the period’s closing market price per share by total equity per weighted average shares outstanding, diluted for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company’s earnings. |
| (2) | The book value multiple (or price to book ratio) is calculated by dividing the period’s closing market price per share by the period’s book value per share. The book value multiple is a measure used to compare the Company’s market value per share to its book value per share. |
EAGLE FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | | | Audited | |
| | | 12/31/2015 | | | 9/30/2015 | | | 6/30/2015 | | | 3/31/2015 | | | 12/31/2014 | |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 23,221 | | | $ | 16,941 | �� | | $ | 12,145 | | | $ | 26,374 | | | $ | 34,564 | |
Federal funds sold | | | — | | | | — | | | | — | | | | — | | | | — | |
Securities available for sale, at fair value | | | 107,718 | | | | 103,503 | | | | 107,682 | | | | 99,092 | | | | 96,973 | |
Loans, net of allowance for loan losses | | | 490,615 | | | | 486,052 | | | | 480,492 | | | | 456,221 | | | | 464,740 | |
Bank premises and equipment, net | | | 20,964 | | | | 20,924 | | | | 20,805 | | | | 20,071 | | | | 19,015 | |
Other assets | | | 9,136 | | | | 10,649 | | | | 13,191 | | | | 11,983 | | | | 11,538 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 651,654 | | | $ | 638,069 | | | $ | 634,315 | | | $ | 613,741 | | | $ | 626,830 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | |
Noninterest bearing demand deposits | | $ | 186,133 | | | $ | 177,005 | | | $ | 171,368 | | | $ | 166,085 | | | $ | 159,352 | |
Savings and interest bearing demand deposits | | | 272,214 | | | | 255,135 | | | | 257,575 | | | | 249,783 | | | | 249,305 | |
Time deposits | | | 92,371 | | | | 95,731 | | | | 93,844 | | | | 93,836 | | | | 95,159 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 550,718 | | | $ | 527,871 | | | $ | 522,787 | | | $ | 509,704 | | | $ | 503,816 | |
Federal funds purchased and securities sold under agreements to repurchase | | | — | | | | — | | | | 8,329 | | | | — | | | | — | |
Federal Home Loan Bank advances | | | 20,000 | | | | 30,000 | | | | 20,000 | | | | 20,000 | | | | 40,000 | |
Trust preferred capital notes | | | — | | | | — | | | | 7,217 | | | | 7,217 | | | | 7,217 | |
Other liabilities | | | 2,715 | | | | 2,589 | | | | 2,039 | | | | 2,273 | | | | 2,665 | |
Commitments and contingent liabilities | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | $ | 573,433 | | | $ | 560,460 | | | $ | 560,372 | | | $ | 539,194 | | | $ | 553,698 | |
| | | | | | | | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Preferred stock, $10 par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Common stock, $2.50 par value | | | 8,758 | | | | 8,723 | | | | 8,681 | | | | 8,658 | | | | 8,621 | |
Surplus | | | 13,730 | | | | 13,464 | | | | 13,089 | | | | 12,828 | | | | 12,618 | |
Retained earnings | | | 54,682 | | | | 54,029 | | | | 51,439 | | | | 51,338 | | | | 50,578 | |
Accumulated other comprehensive income | | | 1,051 | | | | 1,393 | | | | 734 | | | | 1,723 | | | | 1,315 | |
| | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | $ | 78,221 | | | $ | 77,609 | | | $ | 73,943 | | | $ | 74,547 | | | $ | 73,132 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 651,654 | | | $ | 638,069 | | | $ | 634,315 | | | $ | 613,741 | | | $ | 626,830 | |
| | | | | | | | | | | | | | | | | | | | |
EAGLE FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands)
Unaudited
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
Interest and Dividend Income | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 5,473 | | | $ | 5,377 | | | $ | 21,751 | | | $ | 21,695 | |
Interest on federal funds sold | | | — | | | | — | | | | — | | | | — | |
Interest and dividends on securities available for sale: | | | | | | | | | | | | | | | | |
Taxable interest income | | | 426 | | | | 378 | | | | 1,645 | | | | 1,824 | |
Interest income exempt from federal income taxes | | | 238 | | | | 261 | | | | 972 | | | | 1,096 | |
Dividends | | | 25 | | | | 26 | | | | 99 | | | | 222 | |
Interest on deposits in banks | | | 7 | | | | 8 | | | | 26 | | | | 12 | |
| | | | | | | | | | | | | | | | |
Total interest and dividend income | | $ | 6,169 | | | $ | 6,050 | | | $ | 24,493 | | | $ | 24,849 | |
| | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | |
Interest on deposits | | $ | 190 | | | $ | 194 | | | $ | 741 | | | $ | 924 | |
Interest on federal funds purchased and securities sold under agreements to repurchase | | | — | | | | — | | | | 10 | | | | 20 | |
Interest on Federal Home Loan Bank advances | | | 67 | | | | 174 | | | | 336 | | | | 650 | |
Interest on trust preferred capital notes | | | 45 | | | | 80 | | | | 260 | | | | 317 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | $ | 302 | | | $ | 448 | | | $ | 1,347 | | | $ | 1,911 | |
| | | | | | | | | | | | | | | | |
Net interest income | | $ | 5,867 | | | $ | 5,602 | | | $ | 23,146 | | | $ | 22,938 | |
Provision For Loan Losses | | | (250 | ) | | | 350 | | | | (227 | ) | | | 350 | |
| �� | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | $ | 6,117 | | | $ | 5,252 | | | $ | 23,373 | | | $ | 22,588 | |
| | | | | | | | | | | | | | | | |
Noninterest Income | | | | | | | | | | | | | | | | |
Income from fiduciary activities | | $ | 236 | | | $ | 290 | | | $ | 1,338 | | | $ | 1,162 | |
Service charges on deposit accounts | | | 319 | | | | 338 | | | | 1,244 | | | | 1,323 | |
Other service charges and fees | | | 769 | | | | 687 | | | | 3,375 | | | | 2,995 | |
(Loss) Gain on the sale of bank premises and equipment | | | (81 | ) | | | (14 | ) | | | (76 | ) | | | (14 | ) |
Gain on sales of AFS securities | | | 8 | | | | 897 | | | | 124 | | | | 990 | |
Gain on redemption of trust preferred debt | | | — | | | | — | | | | 2,424 | | | | — | |
Other operating income | | | 84 | | | | 23 | | | | 9 | | | | 150 | |
| | | | | | | | | | | | | | | | |
Total noninterest income | | $ | 1,335 | | | $ | 2,221 | | | $ | 8,438 | | | $ | 6,606 | |
| | | | | | | | | | | | | | | | |
Noninterest Expenses | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 3,121 | | | $ | 2,660 | | | $ | 12,318 | | | $ | 11,427 | |
Occupancy expenses | | | 387 | | | | 317 | | | | 1,563 | | | | 1,280 | |
Equipment expenses | | | 383 | | | | 174 | | | | 1,102 | | | | 720 | |
Advertising and marketing expenses | | | 154 | | | | 155 | | | | 612 | | | | 571 | |
Stationery and supplies | | | 63 | | | | 69 | | | | 242 | | | | 306 | |
ATM network fees | | | 210 | | | | 180 | | | | 805 | | | | 712 | |
Other real estate owned expenses | | | 252 | | | | 12 | | | | 336 | | | | 27 | |
FDIC assessment | | | 120 | | | | 95 | | | | 439 | | | | 357 | |
Computer software expense | | | 149 | | | | 208 | | | | 696 | | | | 872 | |
Bank franchise tax | | | 131 | | | | 123 | | | | 505 | | | | 466 | |
Professional fees | | | 311 | | | | 226 | | | | 1,025 | | | | 988 | |
Other operating expenses | | | 492 | | | | 624 | | | | 2,838 | | | | 2,260 | |
| | | | | | | | | | | | | | | | |
Total noninterest expenses | | $ | 5,773 | | | $ | 4,843 | | | $ | 22,481 | | | $ | 19,986 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | $ | 1,679 | | | $ | 2,630 | | | $ | 9,330 | | | $ | 9,208 | |
Income Tax Expense | | | 324 | | | | 196 | | | | 2,433 | | | | 2,068 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 1,355 | | | $ | 2,434 | | | $ | 6,897 | | | $ | 7,140 | |
| | | | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | | | | |
Net income per common share, basic | | $ | 0.38 | | | $ | 0.71 | | | $ | 1.97 | | | $ | 2.08 | |
| | | | | | | | | | | | | | | | |
Net income per common share, diluted | | $ | 0.38 | | | $ | 0.70 | | | $ | 1.97 | | | $ | 2.07 | |
| | | | | | | | | | | | | | | | |
EAGLE FINANCIAL SERVICES, INC.
Average Balances, Income and Expenses, Yields and Rates
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | |
| | | December 31, 2015 | | | December 31, 2014 | |
| | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rate | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rate | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | $ | 31,234 | | | $ | 1,789 | | | | 5.73 | % | | $ | 62,502 | | | $ | 1,599 | | | | 2.56 | % |
Tax-Exempt(1) | | | 72,804 | | | | 1,432 | | | | 1.97 | % | | | 33,170 | | | | 1,572 | | | | 4.74 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Securities | | $ | 104,038 | | | $ | 3,221 | | | | 3.10 | % | | $ | 95,672 | | | $ | 3,171 | | | | 3.31 | % |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | $ | 479,294 | | | $ | 21,498 | | | | 4.49 | % | | $ | 453,699 | | | $ | 21,039 | | | | 4.64 | % |
Non-accrual | | | 5,451 | | | | — | | | | 0.00 | % | | | 8,982 | | | | — | | | | 0.00 | % |
Tax-Exempt(1) | | | 6,406 | | | | 326 | | | | 5.09 | % | | | 7,918 | | | | 447 | | | | 5.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 491,151 | | | $ | 21,824 | | | | 4.44 | % | | $ | 470,599 | | | $ | 21,486 | | | | 4.57 | % |
Federal funds sold | | | — | | | | — | | | | 0.00 | % | | | — | | | | — | | | | 0.00 | % |
Interest-bearing deposits in other banks | | | 12,170 | | | | 28 | | | | 0.23 | % | | | 15,400 | | | | 32 | | | | 0.21 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | | $ | 601,908 | | | $ | 25,072 | | | | 4.17 | % | | $ | 572,689 | | | $ | 24,688 | | | | 4.31 | % |
Allowance for loan losses | | | (5,160 | ) | | | | | | | | | | | (5,564 | ) | | | | | | | | |
Total non-earning assets | | | 43,494 | | | | | | | | | | | | 48,061 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 640,242 | | | | | | | | | | | $ | 615,186 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | $ | 81,189 | | | $ | 83 | | | | 0.10 | % | | $ | 79,159 | | | $ | 79 | | | | 0.10 | % |
Money market accounts | | | 104,365 | | | | 119 | | | | 0.11 | % | | | 98,633 | | | | 111 | | | | 0.11 | % |
Savings accounts | | | 79,376 | | | | 43 | | | | 0.05 | % | | | 70,036 | | | | 40 | | | | 0.06 | % |
Time deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
$100,000 and more | | | 37,126 | | | | 190 | | | | 0.51 | % | | | 35,548 | | | | 171 | | | | 0.48 | % |
Less than $100,000 | | | 56,207 | | | | 317 | | | | 0.56 | % | | | 59,846 | | | | 369 | | | | 0.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | $ | 358,262 | | | $ | 754 | | | | 0.21 | % | | $ | 343,222 | | | $ | 770 | | | | 0.22 | % |
Federal funds purchased and securities sold under agreements to repurchase | | | 2 | | | | — | | | | 0.00 | % | | | — | | | | — | | | | 0.00 | % |
Federal Home Loan Bank advances | | | 23,152 | | | | 266 | | | | 1.15 | % | | | 32,174 | | | | 690 | | | | 2.15 | % |
Trust preferred capital notes | | | — | | | | 177 | | | | 0.00 | % | | | 7,217 | | | | 317 | | | | 4.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 381,416 | | | $ | 1,196 | | | | 0.31 | % | | $ | 382,613 | | | $ | 1,777 | | | | 0.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 181,147 | | | | | | | | | | | | 157,652 | | | | | | | | | |
Other Liabilities | | | — | | | | | | | | | | | | 3,032 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | $ | 562,563 | | | | | | | | | | | $ | 543,297 | | | | | | | | | |
Shareholders’ equity | | | 77,679 | | | | | | | | | | | | 71,889 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 640,242 | | | | | | | | | | | $ | 615,186 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 23,876 | | | | | | | | | | | $ | 22,911 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | 3.85 | % | | | | | | | 3.85 | % | | | | | | | | | | | | |
Interest expense as a percent of average earning assets | | | 0.20 | % | | | | | | | 0.31 | % | | | | | | | | | | | | |
Net interest margin | | | 3.97 | % | | | | | | | 4.00 | % | | | | | | | | | | | | |
| (1) | Income and yields are reported on a tax equivalent basis using a federal tax rate of 34%. |
EAGLE FINANCIAL SERVICES, INC.
Average Balances, Income and Expenses, Yields and Rates
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Year Ended | |
| | | December 31, 2015 | | | December 31, 2014 | |
| | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rate | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rate | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | $ | 71,159 | | | $ | 1,745 | | | | 2.45 | % | | $ | 68,119 | | | $ | 2,060 | | | | 3.02 | % |
Tax-Exempt(1) | | | 31,592 | | | | 1,472 | | | | 4.66 | % | | | 33,652 | | | | 1,659 | | | | 4.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Securities | | $ | 102,751 | | | $ | 3,217 | | | | 3.13 | % | | $ | 101,711 | | | $ | 3,719 | | | | 3.65 | % |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | $ | 465,444 | | | $ | 21,523 | | | | 4.62 | % | | $ | 449,247 | | | $ | 21,465 | | | | 4.78 | % |
Non-accrual | | | 6,446 | | | | — | | | | 0.00 | % | | | 6,811 | | | | — | | | | 0.00 | % |
Tax-Exempt(1) | | | 7,210 | | | | 346 | | | | 4.80 | % | | | 5,789 | | | | 330 | | | | 5.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 479,100 | | | $ | 21,869 | | | | 4.56 | % | | $ | 461,847 | | | $ | 21,795 | | | | 4.72 | % |
Federal funds sold | | | — | | | | — | | | | 0.00 | % | | | — | | | | — | | | | 0.00 | % |
Interest-bearing deposits in other banks | | | 12,174 | | | | 26 | | | | 0.21 | % | | | 6,075 | | | | 12 | | | | 0.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | | $ | 587,579 | | | $ | 25,112 | | | | 4.27 | % | | $ | 562,882 | | | $ | 25,526 | | | | 4.53 | % |
Allowance for loan losses | | | (5,374 | ) | | | | | | | | | | | (5,839 | ) | | | | | | | | |
Total non-earning assets | | | 45,027 | | | | | | | | | | | | 43,008 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 627,232 | | | | | | | | | | | $ | 600,051 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | $ | 80,809 | | | $ | 85 | | | | 0.11 | % | | $ | 82,821 | | | $ | 88 | | | | 0.11 | % |
Money market accounts | | | 99,088 | | | | 113 | | | | 0.11 | % | | | 94,650 | | | | 108 | | | | 0.11 | % |
Savings accounts | | | 76,054 | | | | 41 | | | | 0.05 | % | | | 67,515 | | | | 35 | | | | 0.05 | % |
Time deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
$100,000 and more | | | 36,098 | | | | 170 | | | | 0.47 | % | | | 35,341 | | | | 181 | | | | 0.51 | % |
Less than $100,000 | | | 57,992 | | | | 332 | | | | 0.57 | % | | | 61,136 | | | | 512 | | | | 0.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | $ | 350,041 | | | $ | 741 | | | | 0.21 | % | | $ | 341,463 | | | $ | 924 | | | | 0.27 | % |
Federal funds purchased and securities sold under agreements to repurchase | | | 1,154 | | | | 10 | | | | 0.87 | % | | | 1,865 | | | | 20 | | | | 1.07 | % |
Federal Home Loan Bank advances | | | 24,849 | | | | 336 | | | | 1.35 | % | | | 28,818 | | | | 650 | | | | 2.26 | % |
Trust preferred capital notes | | | 4,441 | | | | 260 | | | | 5.85 | % | | | 7,217 | | | | 317 | | | | 4.39 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 380,485 | | | $ | 1,347 | | | | 0.35 | % | | $ | 379,363 | | | $ | 1,911 | | | | 0.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 171,508 | | | | | | | | | | | | 149,026 | | | | | | | | | |
Other Liabilities | | | — | | | | | | | | | | | | 1,981 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | $ | 551,993 | | | | | | | | | | | $ | 530,370 | | | | | | | | | |
Shareholders’ equity | | | 75,239 | | | | | | | | | | | | 69,681 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 627,232 | | | | | | | | | | | $ | 600,051 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 23,765 | | | | | | | | | | | $ | 23,615 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.92 | % | | | | | | | | | | | 4.03 | % |
Interest expense as a percent of average earning assets | | | | | | | | | | | 0.23 | % | | | | | | | | | | | 0.34 | % |
Net interest margin | | | | | | | | | | | 4.04 | % | | | | | | | | | | | 4.20 | % |
| (1) | Income and yields are reported on a tax equivalent basis using a federal tax rate of 34%. |
EAGLE FINANCIAL SERVICES, INC.
Reconciliation of Tax-Equivalent Net Interest Income
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | 12/31/2015 | | | 9/30/2015 | | | 6/30/2015 | | | 3/31/2015 | | | 12/31/2014 | |
GAAP Financial Measurements: | | | | | | | | | | | | | | | | | | | | |
Interest Income - Loans | | $ | 5,473 | | | $ | 5,541 | | | $ | 5,437 | | | $ | 5,301 | | | $ | 5,377 | |
Interest Income - Securities and Other Interest-Earnings Assets | | | 696 | | | | 725 | | | | 684 | | | | 637 | | | | 673 | |
Interest Expense - Deposits | | | 190 | | | | 185 | | | | 182 | | | | 184 | | | | 194 | |
Interest Expense - Other Borrowings | | | 112 | | | | 136 | | | | 145 | | | | 213 | | | | 254 | |
| | | | | | | | | | | | | | | | | | | | |
Total Net Interest Income | | $ | 5,867 | | | $ | 5,945 | | | $ | 5,794 | | | $ | 5,541 | | | $ | 5,602 | |
Non-GAAP Financial Measurements: | | | | | | | | | | | | | | | | | | | | |
Add: Tax Benefit on Tax-Exempt Interest Income - Loans | | $ | 28 | | | $ | 29 | | | $ | 25 | | | $ | 36 | | | $ | 38 | |
Add: Tax Benefit on Tax-Exempt Interest Income - Securities | | | 123 | | | | 126 | | | | 127 | | | | 125 | | | | 135 | |
| | | | | | | | | | | | | | | | | | | | |
Total Tax Benefit on Tax-Exempt Interest Income | | $ | 151 | | | $ | 155 | | | $ | 152 | | | $ | 161 | | | $ | 173 | |
| | | | | | | | | | | | | | | | | | | | |
Tax-Equivalent Net Interest Income | | $ | 6,018 | | | $ | 6,100 | | | $ | 6,946 | | | $ | 5,702 | | | $ | 5,775 | |
| | | | | | | | | | | | | | | | | | | | |
