Eagle Financial Services Reports Q2 Earnings with Adjusted Net Income Decline
Eagle Financial Services (NASDAQ:EFSI) reported a net income of $5 million for the second quarter, or $0.92 per diluted share, which included a one-time gain from selling its ownership in Bering Insurance Group. Excluding this gain, adjusted net income was $2.2 million, or $0.41 per diluted share, reflecting a decline due to higher provision expenses and reserve strengthening. The company saw growth in core banking operations with a 6.7% increase in net interest income to $16.9 million and an expanded net interest margin of 3.86%, up from the previous quarter. CFO Kate Chappell attributed this improvement to loan growth, reduced borrowing costs after repaying FHLB advances, and better deposit mix. Despite credit-related challenges with a provision expense of $3.2 million due to identified credits, Eagle Financial Services maintained strong liquidity and capital levels above well-capitalized thresholds.
Topics: adjusted earnings banking loan growth net interest income