|
Eagle Financial Services Inc (NASDAQ: EFSI) |
|
|
|
|
Select the Financial Report:
|
|
Select the Period:
|
|
Description of Eagle Financial Services Inc's Business Segments
Eagle Financial Services Inc. offers a diverse range of financial products and services designed to meet the needs of individual consumers, businesses, and commercial enterprises. Their offerings can be categorized into several key segments, each tailored to address different financial needs and risk considerations.
1. One-to-Four-Family Residential Real Estate Lending
Eagle Financial Services provides residential mortgage loans primarily based on the borrowers capacity to repay the loan from their income and other financial resources. These loans are secured by residential real estate, which has a well-established market value. During the application process, comprehensive information about the borrowers income, employment history, and creditworthiness is collected. The evaluation of the real estate collateral is conducted by independent appraisers, whose credentials have been approved by the Bank's Directors Loan Committee, ensuring an unbiased and accurate property valuation.
Commercial Real Estate Lending
The commercial real estate lending segment poses additional risks compared to residential lending. Loans in this category typically involve larger amounts and are concentrated among single borrowers or affiliated groups. The repayment of these loans is usually reliant on the successful operation of income-generating properties, meaning that economic downturns or unfavorable real estate market conditions could significantly impact repayment capability. Eagle Financial Services takes a thorough due diligence approach to assess potential borrowers, which includes evaluating market conditions and the viability of the commercial properties involved.
Construction and Land Development Lending
Eagle Financial Services engages in construction and land development lending, which introduces unique risk factors. A significant portion of this risk arises from the concentration of large loan balances provided to specific developers or contractors. Additionally, collateral risk is prominent because loan disbursements are based on expected value upon completion rather than current appraisals. To manage these risks, the Bank caps loan amounts at 80% of the anticipated appraised value post-construction. This prudent approach aims to mitigate issues related to cost overruns or inaccuracies in the estimation of construction expenses.
Commercial and Industrial Lending
In the commercial and industrial lending segment, Eagle Financial Services provides loans that are typically riskier than traditional residential mortgages. However, these loans can offer higher yields. The lending approach involves obtaining collateral and personal guarantees from the principal owners of borrowing entities, along with careful monitoring of the businesses financial health. Loans are tailored based on the company's cash flow and are secured by various business assets, including real estate, accounts receivable, equipment, and inventory. Given the potential depreciation of collateral, Eagle Financial Services emphasizes rigorous assessment processes to ensure adequate security for its lending activities.
Consumer Lending
Consumer lending at Eagle Financial Services encompasses loans that often present higher risks compared to residential real estate financing, especially when dealing with unsecured loans or loans backed by assets with rapid depreciation, such as vehicles. The likelihood that the value of repossessed assets may fall short of covering the outstanding loan balance in default scenarios is acknowledged as a significant risk. The Bank employs stringent underwriting standards, typically requiring income verification and a review of credit history to assess borrowers capacity for repayment.
Additional Services
Beyond lending, Eagle Financial Services may also provide various ancillary financial products and services, which could include:
- Financial Advisory Services: Personalized advice regarding investments, wealth management, and retirement planning.
- Insurance Services: Offering products such as life, property, and casualty insurance to help protect borrowers' assets and financial health.
- Business Banking Solutions: Tailored checking and savings accounts, merchant services, and payment processing for small and medium-sized enterprises.
Conclusion
Eagle Financial Services Inc. efficiently addresses a variety of lending needs, from residential mortgages to complex commercial loans, while maintaining a robust risk management framework. Each financial segment is designed with the intent to facilitate both the borrower's needs and the Bank's long-term stability and profitability, ensuring mutual growth and sustainability in an evolving economic landscape.
Composition of Eagle Financial Services Inc Revenues by
Segments |
| |
| Community Banking |
|
 3.72 % |
of total Revenue |
Q3 three months ended (Sep 30 2024)
|
| Revenues by Business Segments |
Revenues
(in millions $) |
%
(of total Revenues) |
| Community Banking |
0.63 |
3.72 % |
| Total |
16.86 |
100 % |
Q3 three months ended (Sep 30 2024)
|
| Revenue Growth rates by Segment |
Y/Y Revenue
% |
Q/Q Revenue
% |
| Community Banking |
147.83 % |
27.44 % |
| Total |
-0.27 % |
3.59 % |
Q3 three months ended (Sep 30 2024)
|
| Income by Business Segments |
Income
(in millions $) |
%
(Profit Margin) |
| Total |
3.42 |
20.3 % |
Q3 three months ended (Sep 30 2024)
|
| Income Growth rates by Segment |
Y/Y Income
% |
Q/Q Income
% |
| Total |
47.65 % |
7.5 % |
Annual Report on Eagle Financial Services Inc Divisions, Sales by Country |
Twelve months ended 2024
|
| EFSI s Annual Revenue by Geography and Business Segments |
Sales
(in millions $) |
%
(of total Sales) |
| Total |
70.23 |
100 % |
Twelve months ended 2024
|
| EFSI s Annual Income by Country and Business Segments |
Income
(in millions $) |
%
(Profit Margin) |
| Total |
15.34 |
21.85 % |
Twelve months ended 2024
|
| Annual Revenue and Income Growth by Country and Business Segments |
% Y/Y Sales Growth |
% Y/Y Income Growth |
| Total |
10.8 % |
63.97 % |
|
|
