Eagle Financial Q3 profit falls on higher expenses
EFSI•Eagle Financial Services reported Q3 net income of $4.75 million and EPS of $0.88, both down year over year as salary and benefit expenses rose. Net loans increased $32.4 million, and net interest margin reached 3.95%.
1. Quarterly results
Eagle Financial Services reported Q3 net income of $4.75 million and EPS of $0.88, both lower than a year earlier. The company cited higher salary and benefit expenses as the main reason for the profit decline.
2. Loans and margin
Net loans increased $32.4 million in the quarter, which CEO Brandon Lorey attributed to customer demand and the lending team’s efforts. Net interest margin rose to 3.95%, attributed to higher average loan yields and the payoff of Federal Home Loan Bank advances. Adjusted net income increased from the prior quarter, mainly due to a lower provision for credit losses.
3. Merger and outlook
The company announced a proposed merger with John Marshall Bancorp during the quarter. It did not provide specific financial guidance for future quarters or the full year.
