Eagle Financial Services, Inc. reported significant financial developments for the third quarter and the nine months ended September 30, 2024. The company achieved a net income of $3.4 million for the third quarter, a 47.65% increase from $2.3 million in the same period of 2023. For the nine months, net income rose to $9.2 million, up 31.53% from $6.9 million in the prior year. Earnings per share for the third quarter increased to $0.97 from $0.66, while for the nine months, it rose to $2.58 from $1.98.

Total assets as of September 30, 2024, reached $1.88 billion, an increase from $1.83 billion at the end of 2023. Total deposits also grew to $1.55 billion, up from $1.51 billion. Shareholders' equity increased to $117.8 million, compared to $108.4 million at the end of 2023, reflecting the strong net income performance.

The company reported total interest and dividend income of $23.7 million for the third quarter, up from $22.2 million in 2023, driven by an increase in average interest-earning assets. However, total interest expense also rose significantly to $10.5 million from $9.3 million, primarily due to higher interest rates on deposits. The net interest margin decreased to 2.88% from 2.93% year-over-year.

Eagle Financial's loan portfolio showed a modest increase, with net loans rising to $1.47 billion from $1.45 billion at the end of 2023. The composition of loans included a notable increase in residential first lien loans, which rose to $367.3 million, and commercial real estate loans, which increased to $630.6 million. However, marine loans decreased to $225.9 million, reflecting the company's strategic decision to cease new marine lending business following the sale of marine vessel floor plan loans in August 2023.

The company also reported a provision for credit losses of $2.2 million for the nine months, up from $1.3 million in the previous year, largely due to charge-offs in the marine portfolio. Nonaccrual loans decreased to $2.3 million from $5.6 million, indicating improved credit quality.

In terms of operational efficiency, the efficiency ratio improved to 71.34% for the third quarter, down from 84.71% in the prior year, reflecting a decrease in noninterest expenses, which fell by 8.80% for the quarter. The workforce was reduced to 233 full-time equivalent employees, down from 245, primarily due to the restructuring in the marine lending division.

Overall, Eagle Financial Services, Inc. demonstrated robust growth in profitability and asset quality while strategically repositioning its lending focus.