UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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Form 10-Q
[X] Quarterly Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1997
[ ] Transition Report Under Section 13 or 15(d) of the Exchange
Act
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EAGLE FINANCIAL SERVICES, INC
(Exact name of registrant as specified in its charter)
Virginia 54-1601306
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
Post Office Box 391, Berryville, Virginia 22611
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 540-955-2510
Indicate by check mark whether the registrant (1) has filed all documents and
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the Registrant's classes of
common stock as of the latest practicable date:
Class Common Stock Number of shares 1,404,355 Outstanding at August 11, 1997
($2.50 par value)
EAGLE FINANCIAL SERVICES, INC.
INDEX TO FORM 10-Q
Part I. Financial Information
Item 1. Financial Statements (Unaudited) ............................ 3
Consolidated Balance Sheets as of
June 30, 1997 and December 31, 1996 ......................... 3
Consolidated Statements of Income for the Three
and Six Months Ended June 30, 1997 and 1996 ................ 4
Consolidated Statement of Changes in
Stockholder's Equity for the Six Months
Ended June 30, 1997 and 1996 ................................ 6
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 1997 and 1996 ..................... 7
Notes to Consolidated Financial Statements .................. 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations .............. 12
Part II. Other Information
Item 6. Exhibits and reports on Form 8-K ........................... 14
Signatures .............................................................. 15
Exhibit 27 - Financial Data Schedule .................................... 16
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Eagle Financial Services, Inc. and Subsidiary
Consolidated Balance Sheets
As of June 30, 1997 and December 31, 1996
June 30, 1997 December 31, 1996
------------- -----------------
Assets
Cash and due from banks $ 5,454,001 $ 4,409,250
Securities held to maturity (fair value:
1997, $29,511,349; 1996, $24,042,342) 29,800,363 24,345,102
Securities available for sale, at fair value 3,743,733 1,744,472
Federal funds sold 31,000 1,553,000
Loans, net of unearned discounts 83,363,910 87,870,194
Less allowance for loan losses (831,557) (913,955)
------------- -------------
Net loans 82,532,353 86,956,239
Bank premises and equipment, net 4,142,173 4,251,675
Other real estate owned 71,417 46,605
Intangible assets 628,357 653,624
Other assets 2,643,927 2,281,774
------------- -------------
Total assets $ 129,047,324 $ 126,241,741
============= =============
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest bearing $ 16,147,575 $ 15,175,041
Interest bearing 97,063,124 95,912,826
------------- -------------
Total deposits $ 113,210,699 $ 111,087,867
Federal funds purchased 0 0
Other liabilities 1,094,879 957,018
------------- -------------
Total liabilities $ 114,305,578 $ 112,044,885
------------- -------------
Stockholders' Equity
Preferred Stock, $10 par value;
authorized 500,000 shares; no
shares outstanding $ 0 $ 0
Common Stock, $2.50 par value;
authorized 1,500,000 shares;
issued 1997, 1,404,356; issued
1996, 1,399,885 shares 3,510,889 3,499,714
Surplus 2,025,990 1,945,891
Retained Earnings 9,203,510 8,756,281
Unrealized loss on securities
available for sale, net 1,357 (5,030)
------------- -------------
Total stockholders' equity $ 14,741,746 $ 14,196,856
------------- -------------
Total liabilities and stockholders'
equity $ 129,047,324 $ 126,241,741
============= =============
- 3 -
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Income
For the Periods Ended June 30, 1997 and 1996
Three Months Ended
June 30,
1997 1996
---------- -----------
Interest Income
Interest and fees on loans $ 1,846,204 $ 1,947,835
Interest on securities held to
maturity:
Taxable interest income 402,492 327,895
Interest income exempt from
federal income taxes 37,562 42,201
Interest and dividends on securities
available for sale, taxable 37,440 35,360
Interest on federal funds sold 23,619 13,800
----------- -----------
Total interest income $ 2,347,317 $ 2,367,091
----------- -----------
Interest Expense
Interest on deposits $ 956,024 $ 976,287
Interest on federal funds purchased 2,911 6,098
----------- -----------
Total interest expense $ 958,935 $ 982,385
----------- -----------
Net interest income $ 1,388,382 $ 1,384,706
Provision For Loan Losses 91,667 60,000
----------- -----------
Net interest income after
provision for loan losses $ 1,296,715 $ 1,324,706
----------- -----------
Other Income
Trust Department income $ 55,373 $ 41,891
Service charges on deposits 133,265 146,854
Other service charges and fees 46,921 46,329
Gain (loss) on equity investment (996) 1,495
Other operating income 55,093 6,534
----------- -----------
$ 289,656 $ 243,103
----------- -----------
Other Expenses
Salaries and wages $ 480,536 $ 433,785
Pension and other employee benefits 103,577 119,915
Occupancy expenses 65,476 85,864
Equipment expenses 112,076 142,447
FDIC assessment 2,633 500
Stationary and supplies 35,105 38,647
Postage 32,280 27,243
Credit card expense 24,567 25,174
Bank franchise tax 21,844 27,213
ATM network fees 27,397 32,341
Intangible amortization 12,705 12,710
Other operating expenses 164,840 162,280
----------- -----------
$ 1,083,036 $ 1,108,119
----------- -----------
Income before income taxes $ 503,335 $ 459,690
Income Tax Expense 136,823 115,342
----------- -----------
Net Income $ 366,512 $ 344,348
=========== ===========
Earnings Per Share $ 0.26 $ 0.24
=========== ===========
- 4 -
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Income
For the Periods Ended June 30, 1997 and 1996
Six Months Ended
June 30,
1997 1996
----------- -----------
Interest Income
Interest and fees on loans $ 3,709,445 $ 3,858,349
Interest on securities held to
maturity:
Taxable interest income 751,502 636,319
Interest income exempt from
federal income taxes 73,310 83,626
Interest and dividends on securities
available for sale, taxable 57,926 77,099
Interest on federal funds sold 52,270 17,307
----------- -----------
Total interest income $ 4,644,453 $ 4,672,700
----------- -----------
Interest Expense
Interest on deposits $ 1,879,767 $ 1,934,225
Interest on federal funds purchased 2,911 53,358
----------- -----------
Total interest expense $ 1,882,678 $ 1,987,583
----------- -----------
Net interest income $ 2,761,775 $ 2,685,117
Provision For Loan Losses 166,667 120,000
----------- -----------
Net interest income after
provision for loan losses $ 2,595,108 $ 2,565,117
----------- -----------
Other Income
Trust Department income $ 104,035 $ 90,244
Service charges on deposits 256,029 265,250
Other service charges and fees 93,284 89,962
Gain (loss) on equity investment (3,146) 189
Other operating income 93,243 19,211
----------- -----------
$ 543,445 $ 464,856
----------- -----------
Other Expenses
Salaries and wages $ 935,132 $ 840,877
Pension and other employee benefits 231,883 225,469
Occupancy expenses 162,287 162,205
Equipment expenses 219,735 203,416
FDIC assessment 6,465 1,500
Stationary and supplies 78,629 82,937
Postage 56,231 66,263
Credit card expense 56,831 48,089
Bank franchise tax 45,892 54,426
ATM network fees 59,950 58,192
Intangible amortization 25,268 14,909
Other operating expenses 371,350 387,172
----------- -----------
$ 2,249,653 $ 2,145,455
----------- -----------
Income before income taxes $ 888,900 $ 884,518
Income Tax Expense 217,508 230,071
----------- -----------
Net Income $ 671,392 $ 654,447
=========== ===========
Earnings Per Share $ 0.48 $ 0.47
=========== ===========
- 5 -
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Changes in Stockholders' Equity
For the Six Months Ended June 30, 1997 and 1996
Unrealized
Gain (Loss)
on Securities
Common Retained Available for
Stock Surplus Earnings Sale, Net Total
------------ ------------ ------------- ------------- ------------
Balance, Dec 31, 1995 $ 1,738,212 $ 1,782,186 $ 9,612,627 ($ 12,606) $ 13,120,419
Net income 654,447 654,447
Issuance of common
stock, dividend
investment plan
(2,268 shares) 4,330 59,841 64,171
Dividend declared
($.22 per share) (152,962) (152,962)
Net change in
unrealized (loss)
on securities avail-
able for sale (9) (9)
Fractional shares
purchased (9) (132) (141)
------------ ------------ ------------ ------------ ------------
Balance, June 30, 1996 $ 1,742,533 $ 1,841,895 $ 10,114,112 ($ 12,615) $ 13,685,925
============ ============ ============ ============ ============
Balance, Dec 31, 1996 $ 3,499,714 $ 1,945,891 $ 8,756,281 ($ 5,030) $ 14,196,856
Net income 671,392 671,392
Issuance of common
stock, dividend
investment plan
(4,472 shares) 11,179 80,131 91,310
Dividend declared
($.16 per share) (224,163) (224,163)
Net change in
unrealized (loss)
on securities avail-
able for sale 6,387 6,387
Fractional shares
purchased (4) (32) (36)
------------ ------------ ------------ ------------ ------------
Balance, June 30, 1997 $ 3,510,889 $ 2,025,990 $ 9,203,510 $ 1,357 $ 14,741,746
============ ============ ============ ============ ============
- 6 -
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1997 and 1996
1997 1996
----------- -----------
Cash Flows from Operating Activities
Net income $ 671,392 $ 654,447
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 207,559 177,408
Amortization of intangible assets 25,268 21,209
(Gain) loss on equity investment 3,146 (189)
Provision for loan losses 166,667 120,000
Premium amortization on securities, net 25,347 21,074
Deferred tax 0 15,747
(Increase) in other assets (233,500) (158,824)
Increase in other liabilities 137,861 55,930
----------- -----------
Net cash provided by operating activities $ 1,003,740 $ 906,802
----------- -----------
Cash Flows from Investing Activities
Proceeds from maturities and principal
payments of securities held to maturity $ 1,863,774 $ 2,456,878
Proceeds from maturities and principal
payments of securities available for sale 377,000 1,344,000
Purchases of securities held to maturity (7,344,416) (4,582,753)
Purchases of securities available for sale (2,366,549) (194,500)
Purchases of bank premises and equipment (233,148) (998,239)
Acquisition of intangible assets 0 (692,830)
Net (increase) decrease in loans 4,232,407 (272,554)
----------- -----------
Net cash (used in) investing activities ($3,470,932) ($2,939,998)
----------- -----------
Cash Flows from Financing Activities
Net increase (decrease) in demand deposits,
money market, and savings accounts ($1,119,073) $ 4,936,296
Net increase in certificates of deposit 3,241,905 1,001,112
Net (decrease) in federal funds purchased 0 (1,867,000)
Cash dividends paid (132,853) (88,791)
Fractional shares purchased (36) (141)
----------- -----------
Net cash provided by financing activities $ 1,989,943 $ 3,981,476
----------- -----------
Increase (decrease) in cash and
cash equivalents ($ 477,249) $ 1,948,280
Cash and Cash Equivalents
Beginning 5,962,250 4,106,467
----------- -----------
Ending $ 5,485,001 $ 6,054,747
=========== ===========
- 7 -
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1997 and 1996
1997 1996
---------- ----------
Supplemental Disclosures of Cash Flow Information
Cash payments for:
Interest $ 1,854,902 $ 1,975,021
=========== ===========
Income taxes $ 262,988 $ 259,523
=========== ===========
Supplemental Schedule of Non-Cash Financing
Activities:
Issuance of common stock,
dividend investment plan $ 91,310 $ 64,171
=========== ===========
Unrealized gain (loss) on securities
available for sale $ 9,678 ($ 14)
=========== ===========
Other real estate acquired in settlement
of loans $ 24,812 $ 0
=========== ===========
- 8 -
EAGLE FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1997
(1) The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principals for interim
financial information and with the instructions to Form 10-Q and Article 10
of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles.
(2) In the opinion of management, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of June 30,
1997 and December 31, 1996, and the result of operations and cash flows for
the three and six months ended June 30, 1997 and 1996. The statements
should be read in conjunction with the Notes to Financial Statements
included in the Company's Annual Report for the year ended December 31,
1996.
(3) The results of operations for the six month period ended June 30, 1997 and
1996 are not necessarily indicative of the results to be expected for the
full year.
(4) Securities held to maturity and available for sale as of June 30, 1997 and
December 31, 1996, are:
June 30, 1997 December 31, 1996
Held to Maturity Amortized Cost Amortized Cost
- --------------------- -------------- -----------------
U.S. Treasury securities $ 622,290 $ 821,632
Obligations of U.S. government
corporations and agencies 7,721,622 5,467,491
Mortgage-backed securities 17,988,892 14,960,458
Obligations of states and political
subdivisions 3,417,559 2,995,521
Other securities 50,000 100,000
----------- -----------
$29,800,363 $24,345,102
=========== ===========
June 30, 1997 December 31, 1996
Fair Value Fair Value
-------------- -----------------
U.S. Treasury securities $ 624,184 $ 823,361
Obligations of U.S. government
corporations and agencies 7,658,118 5,396,463
Mortgage-backed securities 17,754,233 14,730,775
Obligations of states and political
subdivisions 3,424,811 2,991,733
Other securities 50,003 100,010
----------- -----------
$29,511,349 $24,042,342
=========== ===========
- 9 -
June 30, 1997 December 31, 1996
Available for Sale Amortized Cost Amortized Cost
- ----------------------- -------------- ----------------
Obligations of U.S. government
corporations and agencies 2,999,477 999,994
Other securities 742,200 752,100
----------- -----------
$ 3,741,677 $ 1,752,094
=========== ===========
June 30, 1997 December 31, 1996
Fair Value Fair Value
------------- -----------------
Obligations of U.S. government
corporations and agencies 3,001,533 992,372
Other securities 742,200 752,100
----------- -----------
$ 3,743,733 $ 1,744,472
=========== ===========
(5) Net loans at June 30, 1997 and December 31, 1996 are summarized as follows:
June 30, 1997 December 31, 1996
------------- -----------------
Loans secured by real estate:
Construction and land development $ 995,853 $ 1,434,277
Secured by farmland 3,788,026 4,013,322
Secured by 1-4 family residential 44,682,013 45,156,222
Nonfarm, nonresidential loans 10,415,348 9,517,839
Loans to finance agricultural production 1,055,607 1,446,108
Commercial and industrial loans 5,127,541 6,145,077
Loans to individuals 16,443,747 19,632,667
Loans to U.S. state and political
subdivisions 1,435,111 1,517,111
All other loans 196,751 214,483
------------ ------------
Gross loans $ 84,139,997 $ 89,077,106
Less:
Unearned income (776,087) (1,206,912)
Allowance for loan losses (831,557) (913,955)
------------ ------------
Loans, net $ 82,532,353 $ 86,956,239
============ ============
- 10 -
(6) Allowance for Loan Losses
June 30, 1997 December 31, 1996
------------- ------------------
Balance, beginning $ 913,955 $ 828,104
Provision charged to operating expense 166,667 290,000
Recoveries added to the allowance 15,440 63,561
Loan losses charged to the allowance (264,505) (267,710)
--------- ---------
Balance, ending $ 831,557 $ 913,955
========= =========
(7) New Accounting Pronouncements
FASB Statement No. 125, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities," was issued in June 1996 and esta-
blishes, among other things, new criteria for determining whether a transfer of
financial assets in exchange for cash or other consideration should be accounted
for as a sale or as a pledge of collateral in a secured borrowing. Statement 125
also establishes new accounting requirements for pledged collateral. As issued,
Statement 125 is effective for all transfers and servicing of financial assets
and extinguishments of liabilities occurring after December 1996.
FASB Statement No. 127, "Deferral of the Effective Date of Certain Provisions of
FASB Statement No. 125," defers for one year the effective date (a) of para-
graph 15 of Statement 125 and (b) for repurchase agreement, dollar-roll, secur-
ities lending, or similar transactions, of paragraph 9-12 and 237(b) of
Statement 125.
FASB Statement No. 128, "Earnings per Share", was issued in February 1997 and
establishes standards for computing and presenting earnings per (EPS) and
applies to entities with publicly held common stock or potential common stock.
This Statement simplifies the standards for computing earnings per share
previously found in APB Opinion No. 15, "Earnings per Share", and makes them
comparable to international EPS standards. It replaces the presentation of
primary EPS with a presentation of basic EPS. It also requires dual presentation
of basic and diluted EPS on the face of the income statement for all entities
with complex capital structures and requires a reconciliation of the numerator
and denominator of the basic EPS computation to the numerator and denominator of
the diluted EPS computation. This Statement is effective for financial
statements issued for periods ending after December, 15 1997 including interim
periods.
FASB Statement No. 129, "Disclosure of Information About Capital Structure", was
issued in February 1997 and establishes standards for disclosing information
about an entity's capital structure. It applies to all entities. This Statement
continues the previous requirements to disclose certain information about an
entity's capital structure found in APB Opinions No. 10, "Omnibus Opinion -
1966", and No. 15, "Earnings per Share", and FASB Statement No. 47, "Disclosure
of Long-Term Obligations", for entities that were subject to the requirements of
those standards. This Statement is effective for financial statements for
periods ending after December 15, 1997.
FASB Statement No. 130, "Reporting Comprehensive Income", was issued in June
1997 and establishes standards for reporting and display of comprehensive income
and its components (revenues, expenses, gains, and losses) in a full set of
general-purpose financial statements. This Statement requires that all items
that are required to be recognized under accounting standards as components of
comprehensive income be reported in a financial statement that is displayed with
the same prominence as other financial statements.
This Statement requires that an enterprise (a) classify items of other
comprehensive income by their nature in a financial statement and (b) display
the accumulated balance of other comprehensive income separately from retained
earnings and additional paid-in capital in the equity section of a statement of
financial position. This Statement is effective for fiscal years beginning after
December 15, 1997.
The effects of these Statements on the Bank's financial statements are not
expected to be material.
- 11 -
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Performance Summary
Net income of the company for the first six months of 1997 and 1996 was $671,392
and $654,447, respectively. This is an increase of $16,945 or 2.59%. The results
of operations for the six month periods ended June 30, 1997 and 1996 are not
necessarily indicative of the results to be expected for the full year. Net
interest income after provision for loan losses for the first six months of 1997
and 1996 was $2,595,108 and $2,565,117, respectively. This is an increase of
$29,991 or 1.17%. Total other income increased $78,589 or 16.91% from $464,856
for the first six months of 1996 to $543,445 for the first six months of 1997.
Total other expenses increased $104,198 or 4.86% from $2,145,455 during the
first six months of 1996 to $2,249,653 during the first six months of 1997.
Earnings per common share outstanding was $0.48 and $0.47 for the six months
ended June 30, 1997 and 1996, respectively. Annualized return on average assets
for the six month periods ended June 30, 1996 and 1997 was 1.06%. Annualized
return on average equity for the six months ended June 30, 1997 was 9.31% as
compared to 9.77% for the six months ended June 30, 1996.
Provision and Allowance for Loan Losses
The provision for loan losses is based upon management's estimate of the amount
required to maintain an adequate allowance for loan losses reflective of the
risks in the loan portfolio. The Company reviews the adequacy of the allowance
for loan losses monthly and utilizes the results of these evaluations to
establish the provision for loan losses. The allowance is maintained at a level
believed by management to absorb potential losses in the loan portfolio. The
methodology considers specific identifications, specific and estimate pools,
trends in delinquencies, local and regional economic trends, concentrations,
commitments, off balance sheet exposure and other factors. The provision for
loan losses increased $46,667 from $120,000 for the six months ended June 30,
1996 to $166,667 for the six months ended June 30, 1997. The allowance for loan
losses decreased $82,398 or 9.02% during the first six months of 1997 from
$913,955 at December 31, 1996 to $831,557 at June 30, 1997. The allowance as a
percentage of total loans decreased from 1.04% at December 31, 1996 to 1.00% at
June 30, 1997. The Company had net charge-offs of $249,065 and $148,039 for the
first six months of 1997 and 1996, respectively. The ratio of net charge-offs to
average loans was 0.29% for the first six months of 1997 as compared to 0.17%
for the first six months of 1996.
The coverage of the allowance for loan losses over non-performing assets and
loans 90 days past due and still accruing interest has decreased from 90.14% at
December 31, 1996 to 73.47% at June 30, 1997. Loans past due greater than 90
days and still accruing interest decreased from $967,319 at December 31, 1996 to
$274,162 at June 30, 1997.
Potential problem loans are included in the loans past due 90 days or more and
still accruing interest. Loans are viewed as potential problem loans when
management questions the ability of the borrower to comply with current
repayment terms. These loans are subject to constant review by management and
their status is reviewed on a regular basis. The amount of problem loans as of
June 30, 1997 was $178,259. Most of these loans are well secured and management
expects to incur only immaterial losses on their disposition.
Loans are placed on nonaccrual when they are greater than ninety days past due
without being in the process of collection or where the collection of their
principal or interest is doubtful. Interest and fees are not accrued on these
loans from the day they enter nonaccrual status and any interest or fees which
were earned previously are reversed. As of June 30, 1997 nonaccrual loans
totalled $816,505, of which $601,066 is secured by real estate. Management does
not expect to incur any material losses on the nonaccrual loans secured by real
estate upon foreclosure.
- 12 -
Balance Sheet
Total assets increased $2.81 million or 2.22% from $126.24 million at December
31, 1996 to $129.05 million at June 30, 1997. Securities increased $7.45 million
or 28.57% during the first six months of 1997 from $26.09 million at December
31, 1996 to $33.54 million at June 30, 1997. Loans, net of unearned discounts
decreased $4.51 million or 5.13% during the same period from $87.87 million at
December 31, 1996 to $83.36 million at June 30, 1997.
Total liabilities increased $2.27 million or 2.02% during the first six months
of 1997 from $112.04 million at December 31, 1996 to $114.31 million at June 30,
1997. Total deposits increased $2.12 million or 1.91% during the same period
from $111.09 at December 31, 1996 to $113.21 million at June 30, 1997. Total
stockholders' equity increased $0.54 million during the first six months of 1997
from $14.20 million at December 31, 1996 to $14.74 million at June 30, 1997.
Stockholders' Equity
The Company continues to be a strongly capitalized financial institution.
Stockholders' equity per share increased $0.36 or 3.55% from $10.14 per share at
December 31, 1996 to $10.50 per share at June 30, 1997. During 1996 the Company
paid $0.30 per share in dividends. During 1997, the Company changed its dividend
policy to begin paying quarterly dividends. The Company has paid $0.16 per share
in dividends during the first six months of 1997. The Company has a Dividend
Investment Plan that reinvests the dividends of participating shareholders in
Company stock.
Liquidity
Asset and liability management assures liquidity and maintains the balance
between rate sensitive assets and liabilities. Liquidity management involves
meeting the present and future financial obligations of the Company with the
sale or maturity of assets or through the occurrence of additional liabilities.
Liquidity needs are met with cash on hand, deposits in banks, federal funds
sold, securities classified as available for sale and loans maturing within one
year. Total liquid assets were $30.1 million at June 30, 1997 and $34.5 million
at December 31, 1996. These represent 26.3% and 30.8% of total liabilities as of
June 30, 1997 and December 31, 1996, respectively.
- 13 -
PART II. OTHER INFORMATION
Item 1. Legal proceedings.
None
Item 2. Changes in securities.
None.
Item 3. Defaults upon senior securities.
None.
Item 4. Submission of matters to a vote of security holders.
None.
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Exhibit 2 Not applicable
Exhibit 3 (i) Articles of Incorporation of Registrant
(incorporated herein by reference as
Exhibit 3.1 of Registrant's Form S-4
Registration Statement, Registration No.
33-43681.)
(ii) Bylaws of Registrant (incorporated
herein by reference as Exhibit 3.2 of
Registrant's Form S-4 Registration
Statement, Registration No. 33-43681).
Exhibit 4 Not applicable
Exhibit 10 Material Contracts
10.1 Description of Executive Supplemental
Income Plan, Incorporated by reference to
Exhibit 10.1 to the Company's Annual Re-
port on Form 10-K for the year ended
December 31, 1996
10.2 Lease Agreement between Bank of
Clarke County (tenant) and Winchester
Development Company (landlord) dated
August 1, 1992 for the branch office at
625 East Jubal Early Drive, Winchester,
Virginia, Incorporated herein by reference
to Exhibit 10.2 of the Company's Annual
Report on Form 10-K for the year ended
December 31, 1995, File No. 0-20146
10.3 Lease Agreement between Bank of
Clarke County (tenant) and Winchester
Development Company (landlord) dated
July 1, 1997 for an office at 615 East
Jubal Early Drive, Winchester, Virginia,
Incorporated herein as Exhibit 10.3 of
the Company's Annual Report on Form
10-Q for the quarter ended June 30, 1997.
Exhibit 11 Not applicable
Exhibit 15 Not applicable
Exhibit 18 Not applicable
Exhibit 19 Not applicable
Exhibit 22 Not applicable
Exhibit 23 Not applicable
Exhibit 24 Not applicable
Exhibit 27 Financial Data Schedule, Incorporated
herein as Exhibit 27
Exhibit 99 Not applicable
(b) Reports on Form 8-K.
None.
- 14 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EAGLE FINANCIAL SERVICES, INC.
Date: May 13, 1997 /s/ LEWIS M. EWING
----------------------------------
Lewis M. Ewing
President and CEO
Date: May 13, 1997 /s/ JOHN R. MILLESON
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John R. Milleson
Vice President, Secretary and
Treasurer
Date: May 13, 1997 /s/ JAMES W. MCCARTY, JR.
----------------------------------
James W. McCarty, Jr.
Controller
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