Eagle Financial Services
EFSI
#8741
Rank
A$0.35 B
Marketcap
A$65.16
Share price
-0.58%
Change (1 day)
N/A
Change (1 year)

Eagle Financial Services - 10-Q quarterly report FY


Text size:
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 June 30, 2001

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 August 9, 2001 was 1,451,463.



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
June 30, 2001 and December 31, 2000 ....................... 3

Consolidated Statements of Income for the Three
and Six Months Ended June 30, 2001 and 2000 ................ 4

Consolidated Statements of Shareholders' Equity for
the Six Months Ended June 30, 2001 and 2000 ............... 5

Consolidated Statements of Cash Flows for
the Six Months Ended June 30, 2001 and 2000 ............... 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 June 30, 2001 and December 31, 2000

June 30, 2001 Dec 31, 2000
------------- -------------
Assets
Cash and due from banks $ 8,110,307 $ 5,623,765
Federal funds sold 792,000 2,881,000
Securities available for sale,
at fair value 15,403,086 11,662,805
Securities held to maturity
(fair value: 2001,$23,752,018;
2000,$26,075,829) 23,594,381 26,295,851
Loans, net allowance for loan losses
of $1,501,392 in 2001 and
$1,340,086 in 2000 155,563,799 140,709,430
Bank premises and equipment, net 5,047,494 4,909,252
Other assets 4,354.437 4,091,185
------------ ------------
Total assets $212,865,504 $196,133,288
============ ============
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits $ 34,633,776 $ 28,189,351
Interest bearing demand deposits,
money market and savings accounts 62,472,864 56,699,785
Time deposits 85,715,542 83,167,640
------------ ------------
Total deposits $182,822,182 $168,056,776
Federal funds purchased and securities
sold under agreements to repurchase 3,744,175 2,782,666
Federal Home Loan Bank advances 5,000,000 5,000,000
Other liabilities 994,048 1,028,360
Commitments and contingent liabilities 0 0
------------ ------------
Total liabilities $192,560,405 $176,867,802
------------ ------------
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 2001, 1,451,464; issued
2000, 1,445,431 shares 3,628,660 3,613,578
Surplus 2,996,381 2,873,924
Retained Earnings 13,483,078 12,760,698
Accumulated other comprehensive income 196,980 17,286
------------ ------------
Total shareholders' equity $ 20,305,099 $ 19,265,486
------------ ------------
Total liabilities and
shareholders' equity $212,865,504 $196,133,288
============ ============


3
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Income
For the Periods Ended June 30, 2001 and 2000


<TABLE>
<CAPTION>


Three Months Ended Six Months Ended
June 30 June 30
2001 2000 2001 2000
---------- ---------- ---------- ----------
<S> <C>
Interest Income
Interest and fees on loans $3,038,239 2,670,517 $5,969,083 $5,201,078
Interest on federal funds sold 5,305 4,351 9,255 4,351
Interest on securities held to maturity:
Taxable interest income 228,247 275,074 482,591 559,534
Interest income exempt from
federal income taxes 99,453 105,286 200,588 212,013
Interest and dividends on securities
available for sale:
Taxable interest income 180,810 118,073 326,668 241,576
Interest income exempt from
federal income taxes 18,378 17,623 36,755 32,655
Dividends 35,882 33,096 71,019 62,409
Interest on deposits in banks 287 213 920 1,498
---------- ---------- ---------- ----------
Total interest income $3,606,601 $3,224,233 $7,096,879 $6,315,114
---------- ---------- ---------- ----------
Interest Expense
Interest on deposits $1,447,970 $1,253,670 $2,901,647 $2,446,773
Interest on federal funds purchased and
securities sold under agreements
to repurchase 56,891 86,524 121,878 173,851
Interest on Federal Home Loan
Bank advances 62,436 62,441 124,186 124,882
---------- ---------- ---------- ----------

Total interest expense $1,567,297 $1,402,635 $3,147,711 $2,745,506
---------- ---------- ---------- ----------

Net interest income $2,039,304 $1,821,598 $3,949,168 $3,569,608
Provision For Loan Losses 145,000 80,000 235,000 $ 170,000
---------- ---------- ---------- ----------

Net interest income after
provision for loan losses $1,894,304 $1,741,598 $3,714,168 $3,399,608
---------- ---------- ---------- ----------

Other Income
Trust Department income $ 131,993 $ 57,283 $ 278,622 $ 165,366
Service charges on deposits 238,573 187,824 435,994 364,252
Other service charges and fees 362,393 282,502 592,079 498,576
Securities gains 0 0 55,390 0
Other operating income 12,677 32,260 26,226 47,190
---------- ---------- ---------- ----------

$ 745,636 $ 559,869 $1,388,311 $1,075,384
---------- ---------- ---------- ----------
Other Expenses
Salaries and wages $ 824,166 $ 717,832 $1,599,499 $1,409,557
Pension and other employee benefits 218,737 185,381 405,394 331,312
Occupancy expenses 106,621 122,001 221,037 245,915
Equipment expenses 180,767 157,719 336,058 294,345
Stationary and supplies 62,222 49,228 108,825 81,764
Credit card expense 56,723 53,013 102,796 95,244
ATM network fees 38,137 32,944 76,065 65,764
Postage 37,194 37,654 69,799 77,959
Other operating expenses 370,421 275,805 672,710 554,192
---------- ---------- ---------- ----------

$1,894,988 $1,631,577 $3,592,183 $3,156,052
---------- ---------- ---------- ----------

Income before income taxes $ 744,952 $ 669,890 $1,510,296 $1,318,940
Income Tax Expense 201,371 153,048 411,854 313,460
---------- ---------- ---------- ----------
Net Income $ 543,581 $ 516,842 $1,098,442 $1,005,480
========== ========== ========== ==========
Net income per common share,
basic and diluted $ 0.37 $ 0.36 $ 0.76 $ 0.70
========== ========== ========== ==========
</TABLE>


4
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Shareholders' Equity
For the Six Months Ended June 30, 2001 and 2000

<TABLE>
<CAPTION>


Accumulated
Other
Common Retained Comprehensive Comprehensive
Stock Surplus Earnings Income (Loss) Income Total
------------ ------------ ------------- ------------- ------------- -----------
<S> <C>
Balance, December 31, 1999 $3,581,992 $2,602,005 $11,407,018 $ (130,167) $17,460,848
Comprehensive income:
Net income 1,005,480 $1,005,480 1,005,480
Other comprehensive income:
Unrealized (loss) on
securities available for
sale, net of deferred
income taxes of $27,729 (53,827) (53,827) (53,827)
------------
Total comprehensive income $ 951,653
============
Issuance of common stock, employee
benefit plan (1,352 shares) 3,380 22,423 25,803
Issuance of common stock, dividend
investment plan (4,489 shares) 11,223 110,296 121,519
Dividends declared ($0.22 per share) (315,459) (315,459)
Fractional shares purchased (7) (72) (79)
---------- ---------- ----------- ----------- ------------
Balance, June 30, 2000 $3,596,588 $2,734,652 $12,097,039 $ (183,994) $18,244,285
========== ========== =========== =========== ============

Balance, December 31, 2000 $3,613,578 $2,873,924 $12,760,698 $ 17,286 $19,265,486
Comprehensive income:
Net income 1,098,442 $1,098,442 1,098,442
Other comprehensive income:
Unrealized gain on
securities available for
sale, net of deferred
income taxes of $92,569 179,694 179,694 179,694
-----------
Total comprehensive income $1,278,136
===========
Issuance of common stock, dividend
investment plan (6,036 shares) 15,091 122,538 137,629
Dividends declared ($0.26 per share) (376,062) (376,062)
Fractional shares purchased (9) (81) (90)
---------- ---------- ----------- ---------- -------------
Balance, June 30, 2001 $3,628,660 $2,996,381 $13,483,078 $ 196,980 $20,305,099
========== ========== =========== =========== =============
</TABLE>


5
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2001 and 2000

Six Months Ended
June 31
2001 2000
------------ ------------
Cash Flows from Operating Activities
Net income $ 1,098,442 $ 1,005,480
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 279,034 274,450
Amortization of intangible assets 22,525 22,525
(Gain) Loss on equity investment 3,433 (5,490)
Provision for loan losses 235,000 170,000
Loss on sale of other real estate owned 0 299
(Gain) on sale of securities (55,390) 0
Premium amortization on securities, net 32,793 31,700
Changes in assets and liabilities:
(Increase) in other assets (362,246) (402,313)
Increase (decrease) in other liabilities (126,881) 126,186
------------ ------------
Net cash provided by operating activities $ 1,126,710 $ 1,222,837
------------ ------------
Cash Flows from Investing Activities
Proceeds from maturities and principal
payments on securities held to maturity $ 2,676,223 $ 2,145,907
Proceeds from maturities and principal
payments on securities available for sale 4,621,242 1,513,198
Purchases of securities available for sale (8,081,416) (2,225,220)
Purchases of bank premises and equipment (344,240) (164,970)
Proceeds from sale of other real estate owned 0 2,701
Net (increase) in loans (15,089,369) (10,200,278)
------------ ------------
Net cash (used in) investing activities $(16,217,560) $ (8,928,662)
------------ ------------
Cash Flows from Financing Activities
Net increase in demand deposits,
money market and savings accounts $ 12,217,504 $ 3,198,244
Net increase in certificates
of deposits 2,547,902 8,384,749
Net increase (decrease) in federal funds
purchased and securities sold under
agreements to repurchase 961,509 (3,786,462)
Proceeds form issuance of common stock to ESOP 0 25,803
Cash dividends paid (238,433) (193,940)
Fractional shares purchased (90) (79)
------------ ------------
Net cash provided by financing activities $ 15,488,392 $ 7,628,315
------------ ------------
Increase (decrease) in cash and
cash equivalents $ 397,542 $ (77,510)

Cash and Cash Equivalents
Beginning 8,504,765 6,420,162
------------ ------------
Ending $ 8,902,307 $ 6,342,652
============ ============

Supplemental Disclosures of Cash Flow Information
Cash payments for:
Interest $ 3,170,697 $ 2,740,263
============ ============
Income taxes $ 556,868 $ 378,968
============ ============

Supplemental Schedule of Non-Cash Investing and
Financing Activities:
Issuance of common stock,
dividend investment plan $ 137,629 $ 121,519
============ ============
Unrealized gain (loss) on securities
available for sale $ 272,263 $ (81,556)
============ ============

6
EAGLE FINANCIAL SERVICES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2001

(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 June 30, 2001
and December 31, 2000, the results of operations for the three and six month
ended June 30, 2001 and 2000, and cash flows for the six months ended June 30,
2001 and 2000. The statements should be read in conjunction with the Notes to
Consolidated Financial Statements included in the Company's Annual Report for
the year ended December 31, 2000.

(3) The results of operations for the three and six month periods ended
June 30, 2001 and 2000, 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 June 30, 2001
and December 31, 2000, are:


Jun 30, 2001 Dec 31, 2000
Held to Maturity Amortized Cost Amortized Cost
- -------------------------------------------------------------------------------
U.S. Treasury securities $ 121,984 $ 121,983
Obligations of U.S. government
corporations and agencies 2,498,908 3,501,765
Mortgage-backed securities 7,017,821 8,176,056
Obligations of states and political
subdivisions 13,955,668 14,496,047
----------- -----------
$23,594,381 $26,295,851
=========== ===========

Jun 30, 2001 Dec 31, 2000
Fair Value Fair Value
----------- ------------
U.S. Treasury securities $ 125,050 $ 124,554
Obligations of U.S. government
corporations and agencies 2,541,875 3,498,510
Mortgage-backed securities 7,017,350 8,103,514
Obligations of states and political
subdivisions 14,067,743 14,349,251
----------- -----------
$23,752,018 $26,075,829
=========== ===========

Jun 30, 2001 Dec 31, 2000
Available for Sale Amortized Cost Amortized Cost
- -------------------------------------------------------------------------------
Obligations of U.S. government
corporations and agencies $ 500,035 $ 2,752,025
Mortgage-backed securities 3,004,673 4,162,991
Obligations of states and political
Subdivisions 1,496,875 1,494,942
Corporate securities 8,165,680 1,192,125
Other 1,937,369 1,994,531
----------- -----------
$15,104,632 $11,596,614
=========== ===========

Jun 30, 2001 Dec 31, 2000
Fair Value Fair Value
------------ ------------
Obligations of U.S. government
corporations and agencies $ 512,500 $ 2,762,237
Mortgage-backed securities 3,039,894 4,177,761
Obligations of states and political
Subdivisions 1,546,117 1,535,210
Corporate securities 8,290,731 1,214,903
Other 2,013,844 1,932,694
----------- -----------
$15,403,086 $11,622,805
=========== ===========


(5) Net loans at June 30, 2001 and December 31, 2001 are summarized as
follows (In Thousands):

Jun 30, 2001 Dec 31, 2000
------------ ------------
Loans secured by real estate:
Construction and land development $ 7,078 $ 4,396
Secured by farmland 5,303 5,109
Secured by 1-4 family residential 82,877 75,809
Nonfarm, nonresidential loans 25,307 25,217
Loans to finance agricultural production 572 656
Commercial and industrial loans 14,111 10,749
Loans to individuals 20,905 18,749
Loans to U.S. state and political
subdivisions 867 1,306
All other loans 49 66
----------- -----------
Gross loans $ 157,069 $ 142,057

Less:
Unearned income (4) (8)
Allowance for loan losses (1,501) (1,340)
----------- -----------
Loans, net $ 155,564 $ 140,709
=========== ===========


(6) Allowance for Loan Losses
<TABLE>
<CAPTION>


Jun 30, 2001 Jun 30, 2000 Dec 31, 2000
------------ ------------ ------------
<S> <C>
Balance, beginning $ 1,340,086 $ 1,122,616 $ 1,122,616
Provision charged to operating expense 235,000 170,000 350,000
Recoveries added to the allowance 19,738 17,871 37,988
Loan losses charged to the allowance (93,432) (64,551) (170,518)
----------- ------------- ------------
Balance, ending $ 1,501,392 $ 1,245,936 $ 1,340,086
=========== ============= ============
</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 six months of 2001 and 2000 was
$1,098,442 and $1,005,480, respectively. This is an increase of $92,962 or
9.25%. Net interest income after provision for loan losses for the first six
months of 2001 and 2000 was $3,714,168 and $3,399,608, respectively. This is an
increase of $314,560 or 9.25%. This increase can be attributed to continued
loan growth. Total noninterest income increased $312,927 or 29.10% from
$1,075,384 for the first six months of 2000 to $1,388,311 for the first six
months of 2001. This change can be attributed to increases in fees earned by
the Trust Department and fees earned from the origination of secondary market
mortgages. Total noninterest expenses increased $436,131 or 13.82% from
$3,156,052 during the first six months of 2000 to $3,592,183 during the first
six months of 2001. This change can be attributed to increases in compensation
and benefits expense and increases in other operating expenses.

Earnings per common share outstanding (basic and diluted) was $0.76 and $0.70
for the six months ended June 30, 2001 and 2000, respectively. Annualized
return on average assets for the six month periods ended June 30, 2001 and 2000
was 1.10% and 1.12%, respectively. Annualized return on average equity for the
six month periods ended June 30, 2001 and 2000 was 11.12% and 11.33%,
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 six month periods ended June 30, 2001 and 2000 was $235,000
and $170,000, respectively. The allowance for loan losses increased $161,306 or
12.04% during the first six months of 2001 from $1,340,086 at December 31, 2000
to $1,501,392 at June 30, 2001. The allowance as a percentage of total loans
increased from 0.94% as of December 31, 2000 to 0.96% as of June 30, 2001. The
Company had net charge-offs of $73,694 and $46,680 for the first six months of
2001 and 2000, respectively. The ratio of net charge-offs to average loans was
0.05% and 0.04% for the first six months of 2001 and 2000, respectively.

Loans past due greater than 90 days and still accruing interest increased from
$46,713 at December 31, 2000 to $57,140 at June 30, 2001. Total nonaccrual
loans were $93,766 at June 30, 2001. There were no nonaccrual loans as of
December 31, 2000. Total impaired loans were $125,255 and $125,752 at June 30,
2001 and December 31, 2000, respectively

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 June 30, 2001 was $301,752.
Most of these loans are well secured and management expects to incur only
immaterial losses on their disposition.

BALANCE SHEET

Total assets increased $16.8 million or 8.53% from $196.1 million at December
31, 2000 to $212.9 million at June 30, 2001. Securities increased $1.1 million
or 2.85% during the first six months of 2001 from $37.9 million at December 31,
2000 to $39.0 million at June 30, 2001. Loans, net of unearned discounts
increased $15.1 million or 10.57% during the same period from $142.0 million at
December 31, 2000 to $157.1 million at June 30, 2001. Total liabilities
increased $15.7 million or 8.87% during the first six months of 2001 from $176.9
million at December 31, 2000 to $192.6 million at June 30, 2001. Total deposits
increased $14.7 million or 8.79% during the same period from $168.1 at December
31, 2000 to $182.8 million at June 30, 2001. Total shareholders' equity
increased $1.0 million or 5.40% during the first six months of 2001 from $19.3
million at December 31, 2000 to $20.3 million at June 30, 2001.

SHAREHOLDERS' EQUITY

The Company continues to be a well capitalized financial institution.
Shareholders' equity per share increased $0.66 or 4.95% from $13.33 per share at
December 31, 2000 to $13.99 per share at June 30, 2001. During 2000 the Company
paid $0.46 per share in dividends. The Company's 2001 total dividends for the
first two quarters was $0.26 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 $61.1 million at June 30, 2001 and $47.5 million
at December 31, 2000. These amounts represent 31.73% and 26.85% of total
liabilities as of June 30, 2001 and December 31, 2000, respectively.

There have been no material changes in Quantitative and Qualitative Disclosures
about Market Risk as reported at December 31, 2000 in the Company's Form 10-K.

FORWARD LOOKING STATEMENTS

Certain statements contained in this 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 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. Not applicable

Exhibit 99. Not applicable.

(b) Reports on Form 8-K.

No reports on Form 8-K were filed by the registrant during the second
quarter of 2001.


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: August 9, 2001 /s/ JOHN R. MILLESON
--------------------------
John R. Milleson
President and Chief Executive
Officer


Date: August 9, 2001 /s/ JAMES W. MCCARTY, JR.
--------------------------
James W. McCarty, Jr.
Vice President, Chief Financial
Officer, and Secretary/Treasurer


12