UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - ------------------------------------------------------------------------------- Form 10-Q X Quarterly Report Under Section 13 or 15(d) of the Securities --------- Exchange Act of 1934 For the quarterly period ended March 31, 2000 Transition Report Under Section 13 or 15(d) of the Exchange --------- Act - ------------------------------------------------------------------------------- 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) (540) 955-2510 (Registrant's telephone number, including area code) 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 [ ] The number of shares of the Registrant's Common Stock ($2.50 par value) outstanding as of May 11, 2000 was 1,435,013. 1
EAGLE FINANCIAL SERVICES, INC. INDEX TO FORM 10-Q PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) ............................ 3 Consolidated Balance Sheets as of March 31, 2000 and December 31, 1999 .................... 3 Consolidated Statements of Income for the Three Months Ended March 31, 2000 and 1999 ..................... 4 Consolidated Statements of Shareholders' Equity for the Three Months Ended March 31, 2000 and 1999 .......... 5 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2000 and 1999 .......... 6 Notes to Consolidated Financial Statements .............. 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ............... 8 Item 3. Quantitative and Qualitative Disclosures about Market Risk ........................................... 9 PART II. OTHER INFORMATION Item 1. Legal Proceedings ...........................................10 Item 2. Changes in Securities .......................................10 Item 3. Defaults Upon Senior Securities .............................10 Item 4. Submission of Matters to a Vote of Security Holders .........10 Item 5. Other Information ...........................................10 Item 6. Exhibits and reports on Form 8-K ............................11 2
PART I. FINANCIAL INFORMATION Item 1. Financial Statements Eagle Financial Services, Inc. and Subsidiary Consolidated Balance Sheets As of March 31, 2000 and December 31, 1999 <TABLE> <CAPTION> Mar 31, 2000 Dec 31, 1999 --------------- --------------- <S> <C> <C> Assets Cash and due from banks $ 4,906,004 $ 6,420,162 Federal funds sold 0 0 Securities available for sale 10,961,415 11,100,666 Securities held to maturity (fair value: 2000, $26,890,085; 1999, $28,582,990) 27,922,221 29,487,192 Loans, net allowance for loan losses of $1,189,283 in 2000 and $1,122,616 in 1999 126,232,431 123,694,599 Bank premises and equipment, net 4,012,225 3,997,919 Other assets 3,891,342 3,677,223 --------------- --------------- Total assets $ 177,925,638 $ 178,377,761 =============== =============== Liabilities and Shareholders' Equity Liabilities Deposits: Noninterest bearing demand deposits $ 25,110,959 $ 22,883,062 Interest bearing demand deposits, money market and savings accounts 54,438,676 55,145,407 Time deposits 69,088,087 70,860,009 --------------- --------------- Total deposits $ 148,637,722 $ 148,888,478 Federal funds purchased and securities sold under agreements to repurchase 5,386,553 6,160,852 Federal Home Loan Bank advances 5,000,000 5,000,000 Other liabilities 1,128,955 867,583 Commitments and contingent liabilities 0 0 --------------- --------------- Total liabilities $ 160,153,230 $ 160,916,913 -------------- --------------- Shareholders' Equity Preferred Stock, $10 par value; 500,000 shares authorized and unissued $ 0 $ 0 Common Stock, $2.50 par value; authorized 5,000,000 shares; issued 2000, 1,435,016; issued 1999, 1,432,797 shares 3,587,539 3,581,992 Surplus 2,657,592 2,602,005 Retained Earnings 11,738,049 11,407,018 Accumulated other comprehensive loss (210,772) (130,167) --------------- --------------- Total shareholders' equity $ 17,772,408 $ 17,460,848 --------------- --------------- Total liabilities and shareholders' equity $ 177,925,638 $ 178,377,761 =============== =============== </TABLE> 3
Eagle Financial Services, Inc. and Subsidiary Consolidated Statements of Income For the Three Months Ended March 31, 2000 and 1999 <TABLE> <CAPTION> Three Months Ended March 31 2000 1999 --------------- --------------- <S> <C> <C> Interest and Dividend Income Interest and fees on loans $ 2,530,561 $ 1,976,859 Interest on federal funds sold 0 5,561 Interest on securities held to maturity: Taxable interest income 284,460 285,375 Interest income exempt from federal income taxes 106,727 96,812 Interest and dividends on securities available for sale: Taxable interest income 123,503 176,138 Interest income exempt from federal income taxes 15,032 5,666 Dividends 29,313 22,153 Interest on deposits in banks 1,285 164 --------------- --------------- Total interest and dividend income $ 3,090,881 $ 2,568,728 --------------- --------------- Interest Expense Interest on deposits $ 1,193,103 $ 963,205 Interest on federal funds purchased and securities sold under agreements to repurchase 87,327 15,961 Interest on Federal Home Loan Bank advances 62,441 61,750 --------------- --------------- Total interest expense $ 1,342,871 $ 1,040,916 --------------- --------------- Net interest income $ 1,748,010 $ 1,527,812 Provision For Loan Losses 90,000 75,000 --------------- --------------- Net interest income after provision for loan losses $ 1,658,010 $ 1,452,812 --------------- --------------- Other Income Trust Department income $ 108,083 $ 72,220 Service charges on deposits 176,428 133,423 Other service charges and fees 216,074 155,807 Other operating income 14,930 20,050 --------------- --------------- $ 515,515 $ 381,500 --------------- --------------- Other Expenses Salaries and wages $ 691,725 $ 643,597 Pension and other employee benefits 145,931 64,425 Occupancy expenses 123,914 110,938 Equipment expenses 136,626 135,875 Stationary and supplies 32,536 48,606 Credit card expense 42,231 33,707 ATM network fees 32,820 49,354 Postage 40,305 36,636 Other operating expenses 278,387 250,611 --------------- --------------- $ 1,524,475 $ 1,373,749 --------------- --------------- Income before income taxes $ 649,050 $ 460,563 Income Tax Expense 160,412 93,516 --------------- --------------- Net Income $ 488,638 $ 367,047 =============== =============== Net income per common share, basic and diluted $ 0.34 $ 0.26 =============== =============== </TABLE> 4
<TABLE> Eagle Financial Services, Inc. and Subsidiary Consolidated Statements of Shareholders' Equity For the Three Months Ended March 31, 2000 and 1999 <CAPTION> Accumulated Other Common Retained Comprehensive Comprehensive Stock Surplus Earnings Income (Loss) Income Total ------------ ------------ ------------ ------------ ------------ -------------- <S> <C> <C> <C> <C> <C> <C> Balance, December 31, 1998 $ 3,545,853 $ 2,307,615 $10,262,104 $ 77,929 $16,193,501 Comprehensive income: Net income 367,047 $ 367,047 367,047 Other comprehensive income: Unrealized (loss) on securities available for sale, net of deferred income taxes of $33,701 (65,420) (65,420) (65,420) ------------ Total comprehensive income $ 301,627 ============ Issuance of common stock, dividend investment plan (1,948 shares) 4,869 46,935 51,804 Dividends declared ($0.09 per share) (127,650) (127,650) Fractional shares purchased (5) (51) (56) ------------ ------------ ------------ ------------ -------------- Balance, March 31, 1999 $ 3,550,717 $ 2,354,499 $10,501,501 $ 12,509 $16,419,226 ============ ============ ============ ============ ============== Balance, December 31, 1999 $ 3,581,992 $ 2,602,005 $11,407,018 $ (130,167) $17,460,848 Comprehensive income: Net income 488,638 $ 488,638 488,638 Other comprehensive income: Unrealized (loss) on securities available for sale, net of deferred income taxes of $41,524 (80,605) (80,605) (80,605) ------------ Total comprehensive income $ 408,033 ============ Issuance of common stock, dividend investment plan (2,219 shares) 5,547 55,587 61,134 Dividends declared ($0.11 per share) (157,607) (157,607) ------------ ------------ ------------ ----------- ------------ Balance, March 31, 2000 $ 3,587,539 $ 2,657,592 $11,738,049 $ (210,772) $17,772,408 ============ ============ ============ =========== ============= </TABLE> 5
Eagle Financial Services, Inc. and Subsidiary Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2000 and 1999 <TABLE> <CAPTION> Three Months Ended March 31 2000 1999 ------------- ------------- <S> <C> <C> Cash Flows from Operating Activities Net income $ 448,638 $ 367,047 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 127,750 109,159 Amortization of intangible assets 11,263 13,281 (Gain) Loss on equity investment (2,609) 3,381 Provision for loan losses 90,000 75,000 Loss on sale of other real estate owned 299 0 Premium amortization on securities, net 15,691 7,453 Changes in assets and liabilities: (Increase) in other assets (241,053) (12,006) Increase (decrease) in other liabilities 302,896 (34,317) ------------- ------------- Net cash provided by operating activities $ 792,875 $ 528,998 ------------- ------------- Cash Flows from Investing Activities Proceeds from maturities and principal payments on securities held to maturity $ 1,550,867 $ 4,023,168 Proceeds from maturities and principal payments on securities available for sale 502,070 2,249,845 Purchases of securities held to maturity 0 (1,819,500) Purchases of securities available for sale (486,535) (557,580) Purchases of bank premises and equipment (126,776) (29,365) Proceeds from sale of other real estate owned 2,701 0 Net (increase) decrease in loans (2,627,832) (3,242,190) ------------- ------------- Net cash provided by (used in) investing activities $ (1,185,505) $ 624,378 ------------- ------------- Cash Flows from Financing Activities Net increase in demand deposits, money market and savings accounts $ 1,521,166 $ 1,676,838 Net (decrease) in certificates of deposits (1,771,922) (4,836,437) Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase (774,299) 361,725 Cash dividends paid (96,473) (75,846) Fractional shares purchased 0 (56) ------------- ------------- Net cash (used in) financing activities $ (1,121,528) $(2,873,776) ------------- ------------- (Decrease) in cash and cash equivalents $ (1,514,158) $ (1,720,400) Cash and Cash Equivalents Beginning 6,420,162 7,636,475 ------------- ------------- Ending $ 4,906,004 $ 5,916,075 ============= ============= Supplemental Disclosures of Cash Flow Information Cash payments for: Interest $ 1,375,845 $ 1,084,585 ============= ============= Income taxes $ 0 $ 0 ============= ============= Supplemental Schedule of Non-Cash Investing and Financing Activities: Issuance of common stock, dividend investment plan $ 61,134 $ 51,804 ============= ============= Unrealized (loss) on securities available for sale $ (122,129) $ (99,121) ============= ============= Other real estate acquired in settlement of loans $ 0 $ 0 ============= ============= </TABLE> 6
EAGLE FINANCIAL SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2000 (1) The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principals from 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 March 31, 2000 and December 31, 1999, and the results of operations and cash flows for the three months ended March 31, 2000 and 1999. 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, 1999. (3) The results of operations for the three month periods ended March 31, 2000 and 1999, 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 March 31, 2000 and December 31, 1999, are: <TABLE> <CAPTION> March 31, 2000 Dec 31, 1999 Held to Maturity Amortized Cost Amortized Cost - ---------------- -------------- -------------- <S> <C> <C> U.S. Treasury securities $ 121,983 $ 121,982 Obligations of U.S. government corporations and agencies 3,506,948 3,508,336 Mortgage-backed securities 9,264,461 9,610,658 Obligations of states and political subdivisions 15,028,828 16,246,216 -------------- -------------- $ 27,922,220 $ 29,487,192 ============== ============== March 31, 2000 Dec 31, 1999 Fair Value Fair Value -------------- -------------- U.S. Treasury securities $ 123,868 $ 124,517 Obligations of U.S. government corporations and agencies 3,420,010 3,443,285 Mortgage-backed securities 8,856,183 9,265,569 Obligations of states and political subdivisions 14,490,024 15,749,619 -------------- -------------- $ 26,890,085 $ 28,582,990 ============== ============== </TABLE> <TABLE> <CAPTION> March 31, 2000 Dec 31, 1999 Available for Sale Amortized Cost Amortized Cost - ------------------ -------------- -------------- <S> <C> <C> Obligations of U.S. government corporations and agencies $ 3,752,616 $ 3,753,082 Mortgage-backed securities 4,311,860 4,621,081 Obligations of states and political Subdivisions 1,272,839 1,080,608 Other 1,943,452 1,843,118 -------------- -------------- $ 11,280,767 $ 11,297,889 ============== ============== March 31, 2000 Dec 31, 1999 Fair Value Fair Value -------------- -------------- Obligations of U.S. government corporations and agencies $ 3,706,813 $ 3,722,667 Mortgage-backed securities 4,150,763 4,496,760 Obligations of states and political Subdivisions 1,240,712 1,049,296 Other 1,863,127 1,831,943 -------------- -------------- $ 10,961,415 $ 11,100,666 ============== ============== </TABLE> (5) Net loans at March 31, 2000 and December 31, 1999 are summarized as follows (In Thousands): <TABLE> <CAPTION> March 31, 2000 Dec 31, 1999 --------------- --------------- <S> <C> <C> Loans secured by real estate: Construction and land development $ 4,586 $ 4,138 Secured by farmland 6,016 6,057 Secured by 1-4 family residential 66,805 64,566 Nonfarm, nonresidential loans 24,497 23,457 Loans to finance agricultural production 413 495 Commercial and industrial loans 9,064 9,952 Loans to individuals 14,731 14,745 Loans to U.S. state and political subdivisions 1,268 1,343 All other loans 66 102 --------------- --------------- Gross loans $ 127,446 $ 124,855 Less: Unearned income (24) (37) Allowance for loan losses (1,189) (1,123) --------------- --------------- Loans, net $ 126,233 $ 123,695 =============== =============== </TABLE> (6) Allowance for Loan Losses <TABLE> <CAPTION> Mar 31, 2000 Mar 31, 1999 Dec 31, 1999 -------------- -------------- -------------- <S> <C> <C> <C> Balance, beginning $ 1,122,616 $ 925,171 $ 925,171 Provision charged to operating expense 90,000 75,000 335,000 Recoveries added to the allowance 10,986 11,197 99,746 Loan losses charged to the allowance (34,319) (30,557) (237,301) -------------- -------------- -------------- Balance, ending $ 1,189,283 $ 980,811 $ 1,122,616 ============== ============== ============== </TABLE> (7) New Accounting Pronouncements There are no new accounting pronouncements to disclose within this Form 10-Q. 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PERFORMANCE SUMMARY Net income of the company for the first three months of 2000 and 1999 was $488,638 and $367,047, respectively. This is an increase of $121,591 or 33.13%. Net interest income after provision for loan losses for the first three months of 2000 and 1999 was $1,658,010 and $1,452,812, respectively. This is an increase of $205,198 or 14.12%. Total other income increased $134,015 or 35.13% from $381,500 for the first three months of 1999 to $515,515 for the first three months of 2000. Total other expenses increased $150,726 or 10.97% from $1,373,749 during the first three months of 1999 to $1,524,475 during the first three months of 2000. Earnings per common share outstanding (basic and diluted) was $0.34 and $0.26 for the three months ended March 31, 2000 and 1999, respectively. Annualized return on average assets for the three month periods ended March 31, 2000 and 1999 was 1.10% and 0.97%, respectively. Annualized return on average equity for the three month periods ended March 31, 2000 and 1999 was 11.14% and 9.06%, respectively. 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 for the three month periods ended March 31, 2000 and 1999 increased $15,000 from $75,000 in 1999 to $90,000 in 2000. The allowance for loan losses increased $66,667 or 5.94% during the first three months of 2000 from $1,122,616 at December 31, 1999 to $1,189,283 at March 31, 2000. The allowance as a percentage of total loans increased from 0.90% as of December 31, 1999 to 0.93% as of March 31, 2000. The Company had net charge-offs of $23,333 and $19,360 for the first three months of 2000 and 1999, respectively. The ratio of net charge-offs to average loans remained the same at 0.02% for the first three months of 2000 and 1999. The coverage of the allowance for loan losses over non-performing assets and loans 90 days past due and still accruing interest increased from 123.68% at December 31, 1999 to 241.63% at March 31, 2000. Loans past due greater than 90 days and still accruing interest decreased from $642,299 at December 31, 1999 to $232,176 at March 31, 2000. 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 March 31, 2000 was $848,183. Most of these loans are well secured and management expects to incur only immaterial losses on their disposition. BALANCE SHEET Total assets decreased $0.5 million or 0.25% from $178.4 million at December 31, 1999 to $177.9 million at March 31, 2000. Securities decreased $1.7 million or 4.20% during the first three months of 2000 from $40.6 million at December 31, 1999 to $38.9 million at March 31, 2000. Loans, net of unearned discounts increased $2.6 million or 2.09% during the same period from $124.8 million at December 31, 1999 to $127.4 million at March 31, 2000. Total liabilities decreased $0.7 million or 0.47% during the first three months of 2000 from $160.9 million at December 31, 1999 to $160.2 million at March 31, 2000. Total deposits decreased $0.3 million or 0.17% during the same period from $148.9 at December 31, 1999 to $148.6 million at March 31, 2000. Total shareholders' equity increased $0.3 million or 1.78% during the first three months of 2000 from $17.5 million at December 31, 1999 to $17.8 million at March 31, 2000. SHAREHOLDERS' EQUITY The Company continues to be a well capitalized financial institution. Shareholders' equity per share increased $0.19 or 1.56% from $12.19 per share at December 31, 1999 to $12.38 per share at March 31, 2000. During 1999 the Company paid $0.38 per share in dividends. The Company's 1999 total dividends for the first quarter was $0.11 per share. The Company has a Dividend Investment Plan that reinvests the dividends of participating shareholders in Company stock. LIQUIDITY AND MARKET RISK 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 $41.3 million at March 31, 2000 and $42.6 million at December 31, 1999. These represent 25.80% and 26.46% of total liabilities as of March 31, 2000 and December 31, 1999, respectively. There have been no material changes in Quantitative and Qualitative Disclosures about Market Risk as reported at December 31, 1999 in the Company's Form 10-K. YEAR 2000 The Y2K issue involved the risk that computer programs and computer systems would not be able to perform without interruption into the year 2000. If computer systems did not correctly recognize the date change from December 31, 1999 to January 1, 2000, computer applications that rely on a date field could have failed or created erroneous results. All computer programs and systems at the Company operated without problems when the date changed from December 31, 1999 to January 1, 2000. While the Company will continue to monitor computer programs and systems, no Y2K related problems are expected to occur. To date, the Company has expensed approximately $25,000 related to the Year 2000 issue. Most of these costs are associated with the testing of mission critical software and upgrading the Bank's ATM's. Any remaining expenses related to Y2K are not expected to have a material effect on the Company's consolidated financial statements. FORWARD LOOKING STATEMENTS Certain statements contained in this annual report that are not historical facts may be forward looking statements. The forward looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical or expected results. Readers are cautioned not to place undue reliance on these forward looking statements. 8
Item 3. Quantitative and Qualitative Disclosures about Market Risk The information required by Part I, Item 3., is incorporated herein by reference to the section titled LIQUIDITY AND MARKET RISK within Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operation." 9
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. 10
Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits The following exhibits, when applicable, are filed with this Form 10-Q or incorporated by reference to previous filings. Number Description --------- ----------------------------------------- Exhibit 2. Not applicable. Exhibit 3. (i) Articles of Incorporation of Registrant (incorporated herein by reference to Exhibit 3.1 of Registrant's Form S-4 Registration Statement, Registration No. 33-43681.) (ii) Bylaws of Registrant (incorporated herein by reference to 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 Report 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). 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 by reference to Exhibit 10.3 of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 1997). 10.4 Lease Agreement between Bank of Clarke County (tenant) and Steven R. Koman (landlord) dated December 2, 1997 for the branch office at 40 West Piccadilly Street, Winchester, Virginia (incorporated herein by reference to Exhibit 10.4 of the Company's Annual Report on Form 10-K for the year ended December 31, 1997). 10.5 Lease Agreement between Bank of Clarke County (tenant) and Winchester Real Estate Management, Inc. (landlord) dated March 20, 2000 for the branch office at 190 Campus Boulevard, Suite 120, Winchester, Virginia (incorporated herein by reference to Exhibit 10.5 of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2000). Exhibit 11. Computation of Per Share Earnings (incorporated herein as Exhibit 11). 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. No reports on Form 8-K were filed by the registrant during the first quarter of 2000. 11
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 11, 2000 /s/ JOHN R. MILLESON -------------------------- John R. Milleson President and Chief Executive Officer Date: May 11, 2000 /s/ JAMES W. MCCARTY, JR. -------------------------- James W. McCarty, Jr. Vice President, Chief Financial Officer, and Secretary/Treasurer 12