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EAGLE FINANCIAL SERVICES , INC . ANNOUNCES 2021 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND Kathleen J. Chappell , Executive Vice President and CFO Exhibit 99.1 Contact : 540-955-2510 kchappell@bankofclarke.com BERRYVILLE , VIRGINIA ( October 29 , 2021 ) - Eagle Financial Services , Inc. ( OTCQX : EFSI ) , the holding company for Bank of Clarke County , whose divisions include Eagle Investment Group , announced its third quarter 2021 results and quarterly dividend . On October 28 , 2021 , the Board of Directors announced a quarterly common stock cash dividend of $ 0.28 per common share , payable on November 19 , 2021 , to shareholders on record on November 8 , 2021. Select highlights for the third quarter include : Net income of $ 2.9 million Deposit growth of $ 31.3 million Basic and diluted earnings per share of $ 0.83 Loan activity : PPP forgiveness - $ 19.3 million Sales $ 29.8 million Net growth $ 45.8 million Brandon Lorey , President and CEO , stated “ Against the headwinds of over $ 19 million in PPP runoff , Eagle Financial Services delivered record net loan growth of $ 46 million ( excluding PPP growth in Q2 2020 ) or 14 % annualized with core deposit growth at 11 % ( annualized ) . The Bank remains poised for continued organic loan and deposit growth through its newly opened Loan Production Office in Frederick Maryland alongside the continued growth in Loudoun , Clarke , Frederick ( VA ) , and Winchester . We remain focused on growing our fee income capabilities through continued loan sales , fee restructuring , and growth within the Eagle Investment Group which saw an increase in Assets Under Management ( AUM ) of over $ 169 million ( 91 % over June 2021 ) during the quarter . I would like to thank our employees for their continued focus on serving the financial needs of our customers as we maneuver through 2021 . Income Statement Review Net income for the quarter ended September 30 , 2021 was $ 2.9 million reflecting a decrease of 4.3 % from the quarter ended June 30 , 2021 and a decrease of 15.6 % from the quarter ended September 30 , 2020. The decrease from both periods was mainly driven by increases in noninterest expenses as the Company continues to invest in its employees and other resources as it continues to grow . Net income was $ 3.0 million for the three - month period ended June 30 , 2021 and $ 3.4 million for the quarter ended September 30 , 2020 . Net interest income for the quarters ended September 30 , 2021 and June 30 , 2021 was $ 10.4 million and $ 10.0 million , respectively . Net interest income was $ 9.5 million for the quarter ended September 30 , 2020. The increase in net interest income from the quarters ended June 30 , 2021 and September 30 , 2020 resulted primarily from growth in the Company's loan portfolio and reduced interest expense on deposit accounts . Total loan interest income was $ 10.0 million and $ 9.7 million for the quarters ended September 30 , 2021 and June 30 , 2021 , respectively . Total loan interest income was $ 9.3 million for the quarter ended September 30 , 2020. Total loan interest income increased $ 737 thousand or 7.9 % from the quarter ended September 30 , 2020 to the quarter ended September 30 , 2021. Average loans for the quarter ended September 30 , 2021 were $ 902.8 million compared to $ 798.4 million for the quarter ended