EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2025 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND

Rhea-AI Summary

Eagle Financial Services (NASDAQ: EFSI) reported third quarter 2025 results and declared a quarterly cash dividend of $0.31 per share payable Nov 14, 2025 to holders of record on Nov 3, 2025.

Key third-quarter metrics: net income $5.584M (Q/Q +6.0%, Y/Y +63.1%), EPS $1.04, net interest income $17.2M (Q/Q +9.6%, Y/Y +30.7%), net interest margin 3.58%, efficiency ratio 64.06%, and loans (net of ACL) increased by $22.5M during the quarter. The company recorded a $1.1M provision for credit losses and $2.3M net charge-offs in the quarter.

Positive

• Net income of $5.584M (+63.1% YoY)
• Net interest income of $17.2M (+30.7% YoY)
• Net interest margin at 3.58%
• Loans (net of ACL) increased by $22.5M in the quarter
• Declared quarterly dividend of $0.31 per share

Negative

• Net charge-offs of $2.3M in Q3 2025
• Allowance for credit losses down to 1.01% of loans
• Provision for credit losses of $1.1M in the quarter
• Nonperforming assets at $14.3M (0.74% of assets); increased vs 0.13% a year earlier
• Noninterest expense rose by $945K (7.1%) Q/Q; salaries and benefits +11.1% Q/Q

BERRYVILLE, Va., Oct. 23, 2025 /PRNewswire/ -- Eagle Financial Services, Inc. (NASDAQ: EFSI) (the "Company"), the holding company for Bank of Clarke announced its third quarter 2025 results. On October 23, 2025, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on November 14, 2025, to shareholders of record on November 3, 2025. The following table presents selected financial performance highlights for the periods indicated:

	Three Months Ended
	September 30,					June 30,					September 30,
	2025					2025					2024
	(Dollars in thousands, except per share data)
Consolidated net income	$	5,584				$	5,270				$	3,424
Consolidated noninterest income	$	5,165				$	4,917				$	5,251
Earnings per share - basic and diluted	$	1.04				$	0.98				$	0.97
Annualized return on average equity		12.20	%				11.93	%				11.99	%
Annualized return on average assets		1.10	%				1.09	%				0.75	%
Net interest margin		3.58	%				3.42	%				3.03	%

Additional key highlights for the third quarter of 2025 are as follows:

• Net interest income increased by $1.5 million or 9.6% during the quarter to $17.2 million when compared to the second quarter of 2025.
• Sales of $21.5 million and $6.1 million in mortgage and SBA loans, respectively, with a combined gain on sale of $1.0 million recognized during the quarter.
• Efficiency ratio decreased to 64.06% from 64.91% during the quarter.
• Loans, net of allowance for credit losses increased by $22.5 million during the quarter.

Brandon Lorey, President and CEO, stated, "We are pleased to report another strong quarter for Eagle Financial Services, Inc., with net income rising to $5.6 million and continued growth in our core lending and wealth management businesses. Our team's disciplined approach to balance sheet management and focus on operational efficiency have resulted in a net interest margin of 3.58% and an improved efficiency ratio. I am also happy to announce the promotion of Nick Smith, our EVP of Corporate Strategy and Investor Relations, to EVP, Deputy CFO. This appointment strengthens our financial leadership and underscores our commitment to disciplined succession planning and our continued focus on long-term strategic objectives. We remain committed to supporting our customers and communities while delivering consistent value to our shareholders. I want to thank our employees for their dedication and our clients for their trust in Bank of Clarke."

Income Statement Review

Total net income for the quarters ended September 30, 2025 and June 30, 2025 was $5.6 million and $5.3 million, respectively.  For the quarter ended September 30, 2025, net income increased $314 thousand or 6.0% from the quarter ended June 30, 2025 and increased $2.2 million or 63.1% from the quarter ended September 30, 2024. Net income was $3.4 million for the quarter ended September 30, 2024. The increase from the quarters ended June 30, 2025 and September 30, 2024 was due to an increase in net interest income and partially offset by an increase in salaries and employee benefits expense during the quarter ended September 30, 2025. These changes are discussed below in greater detail.

Total loan interest income was $20.7 million and $20.4 million for the quarters ended September 30, 2025 and June 30, 2025, respectively. Total loan interest income was $21.1 million for the quarter ended September 30, 2024. Total loan interest income increased $313 thousand or 1.5% from the quarter ended June 30, 2025 to the quarter ended September 30, 2025. Average loans increased slightly by $2.6 million or 0.2% from the quarter ended June 30, 2025 to the quarter ended September 30, 2025. The tax equivalent yield on average loans for the quarter ended September 30, 2025 was 5.68%, an increase of one basis point from the 5.67% average yield for the quarter ended June 30, 2025. The decrease in loan interest income between the quarters ended September 30, 2025 and September 30, 2024 was largely due to a lower level of outstanding loans. Average loans decreased by $26.3 million or 1.78% for the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024. Early during the first quarter of 2025, ahead of its public offering, the Company sold a pool of mortgage loans at par in order to bolster on-balance sheet liquidity. This pool had a total balance of $18.8 million with a weighted average yield of 6.58%.  

Interest and dividend income from the investment portfolio was $1.4 million for the quarter ended September 30, 2025 compared to $1.3 million for the quarter ended June 30, 2025. Interest and dividend income from the investment portfolio was $873 thousand for the quarter ended September 30, 2024. The tax equivalent yield on average investments for the quarter ended September 30, 2025 was 4.30%, down seven basis points from 4.37% for the quarter ended June 30, 2025 and up 177 basis points from 2.53% for the quarter ended September 30, 2024. The increase in yield was due largely to lower yielding investments sold during the first quarter of 2025 being replaced with higher yielding securities. During the quarter ended March 31, 2025, $99.2 million in securities were sold with a weighted average yield of 1.72%. During the same quarter, $76.0 million in securities were purchased. Of the $76.0 million in securities purchased, $66.0 million were purchased as a part of the executed balance sheet repositioning with a weighted average yield of 4.72%. 

Total interest expense was $8.7 million and $9.1 million for the three months ended September 30, 2025 and June 30, 2025, respectively and $10.5 million for three months ended September 30, 2024. The decrease in interest expense between the quarter ended September 30, 2024 and the quarter ended September 30, 2025 was due to a $1.3 million decrease in FHLB interest expense. The average balance of FHLB advances decreased $108.8 million from the quarter ended September 30, 2024 to the same period in 2025. The decrease in interest expense between the quarter ended June 30, 2025 and the quarter ended September 30, 2025 was due lower interest expense on deposits. The average balance of interest-bearing deposits decreased by $31.4 million during this time period.  

Net interest income for the quarter ended September 30, 2025 was $17.2 million reflecting an increase of 9.6% from the quarter ended June 30, 2025 and an increase of 30.7% from the quarter ended September 30, 2024. Net interest income was $15.7 million and $13.2 million, respectively, for the quarters ended June 30, 2025 and September 30, 2024.

The net interest margin was 3.58% for the quarter ended September 30, 2025. For the quarters ended June 30, 2025 and September 30, 2024, the net interest margin was 3.42% and 3.03%, respectively. The increases in the net interest margin from June 30, 2025 and September 30, 2024 can be attributed to several factors. The net interest spread increased to 2.57% at September 30, 2025 from 2.51% and 2.18% at June 30, 2025 and September 30, 2024, respectively. The repositioning of the securities portfolio during the first quarter of 2025 increased the yield on securities significantly when compared to the prior year. In addition, higher interest-bearing non-core certificate of deposit accounts have been allowed to run-off causing an increase to net interest margin. The Company's net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitable earning assets are funded. The Company's net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 21%. This is a non-GAAP financial measure. Please refer to the "Reconciliation of Tax-Equivalent Net Interest Income" table for additional information.

Total noninterest income was $5.2 million and $4.9 million for the quarters ended September 30, 2025 and June 30, 2025 respectively. Total noninterest income was $5.3 million for the quarter ended September 30, 2024. The increase in total noninterest income when comparing the third quarter of 2025 to the second quarter of 2025 is mainly due to the increase in wealth management fee income by $177 thousand or 10.7%. When comparing the third quarter of 2025 to the same quarter of 2024, wealth management fee income increased by $312 thousand or 20.6% which was more than offset by a decrease in bank owned life insurance due to a payout of $671 thousand during the third quarter of 2024. In addition, Wealth management fee income is comprised of income  from fiduciary activities as well as commissions from the sale of non-deposit investment products. The amount of income from fiduciary activities is determined by the number of active accounts and total assets under management which has increased during the quarter ended September 30, 2025.  Additionally, per transaction fees for estates and other services have also contributed to the increase in revenue. Gains on loans held for sale were significantly higher during the third quarter of 2025 when compared to the third quarter of 2024 due to increased sales activity in the held for sale mortgage loan portfolio. The Company sold $21.5 million in mortgage loans for a gain of $540 thousand during the third quarter of 2025, as compared to the sale of $14.9 million in mortgage loans for a gain of $257 thousand during the first quarter of 2025.

Noninterest expense increased $945 thousand, or 7.1%, to $14.3 million for the quarter ended September 30, 2025 from $13.4 million for the quarter ended June 30, 2025. Noninterest expense was $12.9 million for the quarter ended September 30, 2024, representing an increase of $1.5 million or 11.3% when comparing to the quarter ended September 30, 2025.  Salaries and benefits expense increased $872 thousand or 11.1% between September 30, 2025 and June 30, 2025, largely due to incentive accruals that have increased as established goals are met. Salaries and benefits expense increased $1.2 million or 15.5% between September 30, 2025 and September 30, 2024, mainly due to the increase in the number of employees. Full time equivalent employees were 249 and 233 at September 30, 2025 and September 30, 2024, respectively.

Asset Quality and Provision for Credit Losses

Nonperforming assets consist of nonaccrual loans, loans 90 days or more past due and still accruing, other real estate owned (foreclosed properties), and repossessed assets. Nonperforming assets decreased from $17.5 million or 0.86% of total assets at June 30, 2025 to $14.3 million or 0.74% of total assets at September 30, 2025. This decrease was due to the partial payment of one large nonaccrual loan in the amount of $4.8 million which was offset by the addition of $3.6 million to nonaccrual status during the third quarter. The additions to nonaccrual loans during the third quarter of 2025 were due to two commercial real estate relationships each totaling $1.8 million. Based on a recent appraisals, the Bank believes that there is sufficient collateral to cover the entirety of the outstanding balance of these loans. In addition, collateral on three non real-estate loans was repossessed during the third quarter of 2025. The carry value of these repossessed assets was $823 thousand at September 30, 2025. Nonperforming assets were $2.5 million or 0.13% of total assets at September 30, 2024. Nonperforming assets increased as of September 30, 2025 in comparison to September 30, 2024 mainly due to two large relationships being placed in nonaccrual status during the first quarter of 2025.  These two relationships had a total balance of $7.7 million as of  September 30, 2025.

The first relationship had an outstanding balance of $2.2 million as of September 30, 2025 and was a partially owner-occupied property whose owner passed away unexpectedly causing the business to halt. The courts have assigned an executor of the estate, and the Bank has filed and been found in favor on summary judgment. This permits the Bank to move forward with the foreclosure process during the fourth quarter of 2025. Based on a recent appraisal, the Bank believes that there is sufficient collateral to cover the entirety of the outstanding balance of the loan.

The second relationship was comprised of four residential multifamily income producing properties in Washington D.C. (the District) with a current combined exposure of approximately $5.5 million. The largest of the four properties had a corresponding loan balance of $5.9 million at June 30, 2025. This property was offered for sale on July 8, 2025, for $5.7 million with the Bank agreeing to a short sale of $4.8 million, thereby creating a deficiency balance of $1.1 million after consideration of past due taxes and other costs. The property owner has entered into an agreement with the Bank to pay back the deficiency balance and the Bank has collateralized this note with the property owner's remaining three properties, as well as a third deed of trust on two additional properties, as a condition of the aforementioned short sale. The Bank charged-off the full amount of the deficiency balance during the third quarter of 2025 due to the unlikelihood of repayment and the limited amount of remaining collateral value and will now be working through recovery on the collateralized properties. Concurrently, the Bank has been granted receivership on the remaining three properties. The Bank is now actively working with the receiver to update the properties and ready them for sale while continuing to collect the housing payments directly from the District. The remaining properties in non-accrual status have been written down to their current estimated values and the Bank is working through its normal work-out process. The Bank does not anticipate having to make any further significant write-downs on these three properties.

The majority of all nonaccrual loans are secured by real estate and management evaluates the financial condition of these borrowers and the value of any collateral on these loans. The results of these evaluations are used to estimate the amount of losses which may be realized on the disposition of these nonaccrual loans. Specific reserves on nonaccrual loans totaled $418 thousand, $1.5 million and $268 thousand as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

The Company realized $2.3 million in net charge-offs for the quarter ended September 30, 2025 compared to $159 thousand for the three months ended June 30, 2025. During the three months ended September 30, 2024, $1.2 million in net charge-offs were recognized. The majority of the charge-offs recognized during the third quarter of 2025 were for the $1.1 million deficiency balance discussed above along with a $468 thousand write-down on a nonaccrual commercial real estate loan. 

The ratio of allowance for credit losses to total loans was 1.01% and 1.11% at September 30, 2025 and June 30, 2025, respectively. The 10 basis point decrease in the allowance for credit losses to total loans between June 30, 2025 and September 30, 2025 was largely due to the charge-off of the $1.1 million specific allocation of the aforementioned residential multifamily income producing property. The ratio of allowance for credit losses to total loans was 1.03% at September 30, 2024. The amount of provision for credit losses on loans reflects the results of the Bank's analysis used to determine the adequacy of the allowance for credit losses. The Company recorded $1.1 million in provision for credit losses on loans for the quarter ended September 30, 2025. The Company recognized provision for credit losses on loans of $856 thousand and $1.5 million for the quarters ended June 30, 2025 and September 30, 2024, respectively. The provision for the quarter ended September 30, 2025 was mainly due to the larger net charge-offs during the quarter. This was partially offset by the reduction in specific allocations needed at quarter end. Management's judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower's ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. The Company is committed to maintaining an allowance at a level that adequately reflects expected credit losses over the life of the loan portfolio.

Balance Sheet

Total consolidated assets of the Company at September 30, 2025 were $1.93 billion, which represented a decrease of $102.6 million or 5.04% from total assets of $2.04 billion at June 30, 2025. At September 30, 2024, total consolidated assets were $1.88 billion. Total assets decreased during the third quarter of 2025 primarily due to the decrease in cash and cash equivalents of $127.9 million during the third quarter of 2025. Cash and cash equivalents were at a lower level as of September 30, 2025 due to declines in deposits during the quarter. See below for further discussion on deposits.

Total net loans increased $22.5 million from $1.42 billion at June 30, 2025 to $1.45 billion at September 30, 2025 driven largely by the growth of commercial real estate loans of $27.4 million and partially offset by marine loan amortization. Numerous commercial real estate owner-occupied loans were originated during the third quarter totaling approximately $40.4 million. These originations were partially offset by paydowns and payoffs in the normal course of business.

Total deposits decreased to $1.66 billion as of September 30, 2025 when compared to June 30, 2025 deposits of $1.77 billion. At September 30, 2024 total deposits were $1.55 billion. During the second quarter of 2025, total deposits increased $152.7 million. The majority of this increase was due to large deposits in non-interest bearing accounts totaling $151.7 million during the quarter and is primarily related to sales proceeds of two customer's businesses. While working to retain these deposits long-term, the Company is currently unsure what portion of the funds will remain at the Bank and for how long. During the third quarter of 2025, $72.4 million of these funds left the bank, with $79.3 million still remaining at September 30, 2025. This accounts for the majority of the decrease in total deposits during the quarter. Year over year deposits increased $109.1 million and the majority of the growth, outside of the proceeds from the sale of the customer's businesses remaining, was in savings and interest bearing deposits. Core deposit change for the quarter and twelve months ended September 30, 2025 was a decrease of  $34.0 million and an increase of $23.0 million, respectively. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts and time deposits less than $250 thousand. Core deposits excludes the remaining $79.3 million of the aforementioned non-interest bearing accounts because the Company is unsure how much of the funds will remain at the Bank and for how long.

Liquidity

The objective of the Company's liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of September 30, 2025, the Company's uninsured deposits were approximately $202.8 million or 12.3% of total deposits.

The Company's liquid assets, which include cash and due from banks, interest-bearing deposits at other banks, loans with a maturity less than one year and nonpledged securities available for sale, were $467.7 million and borrowing availability was $530.9 million as of September 30, 2025, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $795.8 million. Liquid assets have decreased by $68.1 million during the third quarter mainly due to a $127.9 million decrease in cash and cash equivalent balance as discussed above.  This decrease was partially offset by an increase in loans with a maturity less than one year of $55.7 million. In addition to deposits, the Company utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home Loan Bank of Atlanta (FHLB) as well as federal funds purchased from Community Bankers Bank may be used to fund the Company's day-to-day operations. Long-term borrowings include FHLB advances as well as subordinated debt. Total outstanding borrowings decreased to $69.6 million at September 30, 2025 from $199.5 million at September 30, 2024. This decrease was primarily due to strong deposit growth and higher levels of loan sales during the first quarter of 2025 enabling the payoff of borrowings. Borrowings remained stable from June 30, 2025 to September 30, 2025.

Additional sources of liquidity available to the Company include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.  

Capital and Dividends

On October 22, 2025, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on November 14, 2025, to shareholders of record on November 3, 2025. The Board of Directors of the Company continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.  

Total consolidated equity increased $67.7 million to $185.6 million at September 30, 2025 compared to September 30, 2024 and increased $5.9 million compared to June 30, 2025. During the first quarter of 2025, the Company completed a public offering of common stock. A total of 1,796,875 shares were issued with net proceeds of $53.5 million.

The Company's securities available for sale are fixed income debt securities and their unrealized loss position is a result of increased market interest rates since they were purchased. The Company expects to recover its investments in debt securities through scheduled payments of principal and interest. The accumulated other comprehensive loss related to the Company's securities available for sale decreased to $5.6 million at September 30, 2025 compared to $7.3 million at June 30, 2025 and decreased from $14.4 million at September 30, 2024. As part of a balance sheet repositioning as discussed above, the Bank sold available for sale debt securities with an amortized cost balance of $99.2 million (fair value of $86.8 million) and a weighted average yield of 1.72% and reinvested $66.0 million into purchases of available for sale debt securities with a weighted average yield of 4.70%. The sale of debt securities resulted in a net pre-tax realized loss of $12.4 million (after-tax of $9.8 million) that was recognized in the first quarter of 2025.

As of September 30, 2025, the most recent notification from the FDIC categorized the Bank of Clarke as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at September 30, 2025, Bank of Clarke was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, Bank of Clarke must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules.  The Bank of Clarke exceeded these ratios at September 30, 2025.

Explanation of Non-GAAP Financial Measures  

This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and the impact of non-recurring transactions on the Bank's results. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's results and financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for or more important than financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Third Quarter 2025 Earnings Release Conference Call and Webcast

Eagle Financial Services' Chief Executive Officer, Brandon Lorey, and Chief Financial Officer, Kate Chappell, will hold a listen-only conference call and webcast to discuss third quarter results on Friday, October 24, 2025, at 10 a.m. eastern time. Those wishing to listen to the conference call should call the applicable number below and reference the Conference ID below.

USA / International – (Toll) - +1.646.968.2525
USA – (Toll-Free) +1.888.596.4144
Canada – (Toronto) +1.647.495.7514
Canada – (Toll-Free) +1.888.596.4144
Conference ID – 3461943 and press #

A replay of the call and webcast will be accessible at investors.bankofclarke.bank. Webcast URL: https://events.q4inc.com/attendee/241048352

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this discussion may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company's future operations and are generally identified by phrases such as "the Company expects," "the Company believes" or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to: changes in interest rates and general economic conditions; the legislative and regulatory climate; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and Federal Reserve; the quality or composition of the Company's loan or investment portfolios; the Company's ability to successfully resolve non-performing assets; demand for loan products; liquidity and deposit flows; competition; demand for financial services in the Company's market area; acquisitions and dispositions; the Company's ability to keep pace with new technologies; a failure in or breach of the Company's operational or security systems or infrastructure, or those of third-party vendors or other service providers, including as a result of cyberattacks; the Company's capital and liquidity; changes in tax and accounting rules, principles, policies and guidelines; and other factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with the Securities and Exchange Commission.

EAGLE FINANCIAL SERVICES, INC. KEY STATISTICS (unaudited)
		For the Three Months Ended
(Dollars in thousands, except per share data)		3Q25				2Q25				1Q25				4Q24				3Q24
Net income (loss)		$	5,584			$	5,270			$	(6,974)			$	6,186			$	3,424
Earnings (loss) per share, basic		$	1.04			$	0.98			$	(1.53)			$	1.74			$	0.97
Earnings (loss) per share, diluted		$	1.04			$	0.98			$	(1.53)			$	1.74			$	0.97
Return on average total assets (annualized)			1.10	%			1.09	%			(1.48)	%			1.32	%			0.75	%
Return on average total equity (annualized)			12.20	%			11.93	%			(20.75)	%			21.10	%			11.99	%
Dividend payout ratio			29.81	%			31.63	%		N/M					17.82	%			30.93	%
Fee revenue as a percent of total revenue (1)			15.81	%			15.65	%		N/M					12.79	%			17.11	%
Net interest margin(2)			3.58	%			3.42	%			2.98	%			3.03	%			3.03	%
Yield on average earning assets (annualized)			5.39	%			5.41	%			5.25	%			5.39	%			5.45	%
Rate on average interest-bearing liabilities (annualized)			2.82	%			2.90	%			3.12	%			3.18	%			3.27	%
Net interest spread			2.57	%			2.51	%			2.13	%			2.21	%			2.18	%
Non-interest income (loss) to average assets			1.02	%			1.02	%			(1.82)	%			1.81	%			1.15	%
Non-interest expense to average assets			2.83	%			2.78	%			2.68	%			2.88	%			2.81	%
Efficiency ratio(3)			64.06	%			64.91	%			72.20	%			74.58	%			71.34	%

N/M - Not meaningful

(1) Fee revenue as a percentage of total revenue is calculated by dividing the sum of wealth management fees, service charges on deposit accounts and other service charges and fees by the sum of net interest income and non-interest income.

(2) Non-GAAP financial measure - The annualized net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The rate utilized is 21%.  Please refer to the "Reconciliation of Tax-Equivalent Net Interest Income" table for the quarterly tax equivalent net interest income and the reconciliation of net interest income to tax equivalent net interest income. The Company's net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns a fair amount of nontaxable interest income due tax-exempt loan balances, net interest income for the ratio is calculated on a tax equivalent basis as described above.

(3) Non-GAAP financial measure - The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non-interest expense less gain/loss on other real estate owned and gain/loss on repossessed assets by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio, the gain on the sale of the Old Town Center location, loss on sale of other bank premises and equipment and life insurance proceeds. The tax rate utilized is 21%. The Company calculates this ratio in order to evaluate its overhead structure or how effectively it is operating. An increase in the ratio from period to period indicates the Company is losing a larger percentage of its income to expenses. The Company believes that the efficiency ratio is a reasonable measure of profitability. Please refer to the "Reconciliation of Efficiency Ratio" table for additional information.

 

EAGLE FINANCIAL SERVICES, INC. SELECTED FINANCIAL DATA BY QUARTER (unaudited)
(Dollars in thousands, except per share data)		3Q25				2Q25				1Q25				4Q24				3Q24
BALANCE SHEET RATIOS
Loans to deposits			88.21	%			81.44	%			89.99	%			93.14	%			95.95	%
Average interest-earning assets to average-interest bearing liabilities			155.33	%			146.08	%			137.78	%			134.93	%			135.10	%
PER SHARE DATA
Dividends		$	0.31			$	0.31			$	0.31			$	0.31			$	0.30
Book value			34.52				33.41				32.81				33.52				33.20
SHARE PRICE DATA
Closing price		$	37.83			$	30.62			$	32.79			$	36.40			$	32.40
Diluted earnings multiple(1)			9.09				7.81			N/M					5.23				8.35
Book value multiple(2)			1.10				0.92				1.00				1.09				0.98
COMMON STOCK DATA
Outstanding shares at end of period			5,376,346				5,376,346				5,378,653				3,549,581				3,549,581
Weighted average shares outstanding			5,376,346				5,378,214				4,572,297				3,549,581				3,552,026
Weighted average shares outstanding, diluted			5,376,346				5,378,214				4,572,297				3,549,581				3,552,026
CREDIT QUALITY
Net charge-offs to average loans			0.16	%			0.01	%			0.06	%			0.03	%			0.08	%
Total non-performing loans to total loans			0.91	%			1.20	%			1.13	%			0.17	%			0.16	%
Total non-performing assets to total assets			0.74	%			0.86	%			0.86	%			0.16	%			0.13	%
Non-accrual loans to:
Total loans			0.90	%			1.16	%			1.11	%			0.14	%			0.16	%
Total assets			0.68	%			0.82	%			0.85	%			0.11	%			0.12	%
Allowance for credit losses to:
Total loans			1.01	%			1.11	%			1.05	%			1.02	%			1.03	%
Non-performing assets			103.81	%			91.24	%			93.45	%			506.30	%			605.82	%
Non-accrual loans			112.48	%			95.48	%			94.79	%			725.24	%			652.86	%
NON-PERFORMING ASSETS:
Loans delinquent over 90 days and still accruing		$	91			$	593			$	230			$	382			$	83
Non-accrual loans			13,167				16,735				16,122				2,072				2,344
Other real estate owned and repossessed assets			1,009				186				—				514				99
NET LOAN CHARGE-OFFS (RECOVERIES):
Loans charged off		$	2,417			$	335			$	1,076			$	585			$	1,382
(Recoveries)			(117)				(176)				(185)				(99)				(145)
Net charge-offs			2,300				159				891				486				1,237
PROVISION FOR CREDIT LOSSES ON LOANS		$	1,131			$	856			$	1,146			$	210			$	1,525
ALLOWANCE FOR CREDIT LOSSES ON LOANS		$	14,810			$	15,979			$	15,282			$	15,027			$	15,303

N/M - Not meaningful

(1) The diluted earnings multiple (or price earnings ratio) is calculated by dividing the period's closing market price per share by total equity per weighted average shares outstanding, diluted for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company's earnings.

(2) The book value multiple (or price to book ratio) is calculated by dividing the period's closing market price per share by the period's book value per share. The book value multiple is a measure used to compare the Company's market value per share to its book value per share.

 

EAGLE FINANCIAL SERVICES, INC. CONSOLIDATED BALANCE SHEETS
		As of:
(Dollars in thousands)		Unaudited 09/30/2025				Unaudited 06/30/2025				Unaudited 03/31/2025				* 12/31/2024				Unaudited 09/30/2024
Assets
Cash and due from banks		$	15,558			$	17,401			$	16,527			$	13,129			$	15,418
Interest-bearing deposits with other institutions			189,119				260,568				187,018				162,595				162,187
Federal funds sold			63,452				118,033				61,401				17,435				3,586
Securities available for sale, at fair value			125,165				124,693				114,844				128,887				140,018
Loans held for sale			3,479				3,302				3,173				2,660				3,657
Loans, net of allowance for credit losses			1,445,118				1,422,653				1,436,982				1,452,022				1,468,025
Bank premises and equipment, net			14,878				14,693				14,625				14,339				18,101
Bank owned life insurance			31,440				31,172				30,894				30,621				30,361
Other assets			44,264				42,565				39,013				44,527				40,348
Total assets		$	1,932,473			$	2,035,080			$	1,904,477			$	1,866,215			$	1,881,701
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest bearing demand deposits		$	521,149			$	574,596			$	421,342			$	406,180			$	413,615
Savings and interest bearing demand deposits			687,530				728,370				697,679				679,330				655,601
Time deposits			446,369				463,558				494,770				489,646				476,720
Total deposits		$	1,655,048			$	1,766,524			$	1,613,791			$	1,575,156			$	1,545,936
Federal funds purchased			101				172				—				—				244
Federal Home Loan Bank advances, short-term			—				—				25,000				—				—
Federal Home Loan Bank advances, long-term			40,000				40,000				40,000				120,000				170,000
Subordinated debt, net			29,562				29,545				29,529				29,512				29,495
Other liabilities			22,181				19,191				19,682				22,560				18,182
Total liabilities		$	1,746,892			$	1,855,432			$	1,728,002			$	1,747,228			$	1,763,857
Commitments and contingent liabilities
Shareholders' Equity
Preferred stock, $10 par value			—				—				—				—				—
Common stock, $2.50 par value			13,260				13,260				13,252				8,714				8,714
Surplus			64,458				64,154				63,922				14,901				14,633
Retained earnings			113,448				109,530				105,928				114,012				108,927
Accumulated other comprehensive (loss)			(5,585)				(7,296)				(6,627)				(18,640)				(14,430)
Total shareholders' equity		$	185,581			$	179,648			$	176,475			$	118,987			$	117,844
Total liabilities and shareholders' equity		$	1,932,473			$	2,035,080			$	1,904,477			$	1,866,215			$	1,881,701

* Derived from audited consolidated financial statements.

 

EAGLE FINANCIAL SERVICES, INC. LOAN DATA (unaudited)
		As of:
(Dollars in thousands)		9/30/2025				6/30/2025				3/31/2025				12/31/2024				9/30/2024
Mortgage real estate loans:
Construction & Secured by Farmland		$	84,467			$	76,060			$	98,660			$	95,200			$	97,170
HELOCs			54,549				52,032				50,543				50,646				50,452
Residential First Lien - Investment			103,942				106,493				108,519				105,910				106,323
Residential First Lien - Owner Occupied			178,725				177,000				174,822				194,065				198,570
Residential Junior Liens			10,497				10,865				10,983				11,184				11,956
Commercial - Owner Occupied			290,931				288,821				268,990				272,236				273,249
Commercial -  Non-Owner Occupied & Multifamily			398,076				372,833				374,471				367,680				357,351
Commercial and industrial loans:
BHG loans			2,637				2,928				3,248				3,566				3,810
SBA PPP loans			10				16				22				28				34
Other commercial and industrial loans			100,777				103,571				109,658				106,749				107,320
Marine loans			185,938				196,434				203,455				210,095				225,902
Triad Loans			21,856				22,111				22,528				22,894				23,616
Consumer loans			7,566				7,628				7,898				8,123				8,447
Overdrafts			297				240				208				309				215
Other loans			13,895				15,372				11,822				11,911				11,932
Total loans		$	1,454,163			$	1,432,404			$	1,445,827			$	1,460,596			$	1,476,347
Net deferred loan costs and premiums			5,765				6,228				6,437				6,453				6,981
Allowance for credit losses on loans			(14,810)				(15,979)				(15,282)				(15,027)				(15,303)
Net loans		$	1,445,118			$	1,422,653			$	1,436,982			$	1,452,022			$	1,468,025

 

EAGLE FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
		For The Three Months Ended
(Dollars in thousands, except per share data)		9/30/2025				6/30/2025				3/31/2025				12/31/2024				9/30/2024
Interest and Dividend Income
Interest and fees on loans		$	20,722			$	20,409			$	19,971			$	21,148			$	21,143
Interest on federal funds sold			55				87				39				5				11
Interest and dividends on securities available for sale:
Taxable interest income			1,293				1,142				695				713				712
Interest income exempt from federal income taxes			—				—				3				4				4
Dividends			60				117				150				162				157
Interest on deposits in banks			3,803				3,060				2,644				1,962				1,659
Total interest and dividend income		$	25,933			$	24,815			$	23,502			$	23,994			$	23,686
Interest Expense
Interest on deposits		$	7,886			$	8,263			$	8,504			$	8,496			$	8,419
Interest on Federal Home Loan Bank advances			494				499				1,308				1,645				1,756
Interest on subordinated debt			354				355				354				354				354
Total interest expense		$	8,734			$	9,117			$	10,166			$	10,495			$	10,529
Net interest income		$	17,199			$	15,698			$	13,336			$	13,499			$	13,157
Provision For Credit Losses			1,112				668				1,233				351				1,544
Net interest income after provision for credit losses		$	16,087			$	15,030			$	12,103			$	13,148			$	11,613
Noninterest Income
Wealth management fees		$	1,827			$	1,650			$	1,681			$	1,380			$	1,515
Service charges on deposit accounts			558				517				492				508				518
Other service charges and fees			1,151				1,060				972				929				1,117
(Loss) gain on the sale and disposal of bank premises and equipment			(2)				—				(16)				3,874				—
(Loss) on the sale of AFS securities			—				—				(12,425)				—				—
Gain on sale of loans held for sale			1,012				1,104				429				861				627
Small business investment company income			58				133				20				475				496
Bank owned life insurance income			268				278				273				260				930
Other operating income			293				175				20				234				48
Total noninterest income (loss)		$	5,165			$	4,917			$	(8,554)			$	8,521			$	5,251
Noninterest Expenses
Salaries and employee benefits		$	8,717			$	7,845			$	7,179			$	7,973			$	7,548
Occupancy expenses			691				598				662				508				530
Equipment expenses			437				401				423				456				427
Advertising and marketing expenses			317				152				183				309				247
Stationery and supplies			37				35				42				54				35
ATM network fees			327				332				362				371				406
Loss of sale of repossessed assets			—				—				133				—				204
FDIC assessment			172				254				322				330				343
Computer software expense			389				325				282				388				226
Bank franchise tax			388				381				367				342				342
Professional fees			493				641				563				640				408
Data processing fees			469				633				550				616				679
Other operating expenses			1,907				1,802				1,521				1,568				1,495
Total noninterest expenses		$	14,344			$	13,399			$	12,589			$	13,555			$	12,890
Income (loss) before income taxes		$	6,908			$	6,548			$	(9,040)			$	8,114			$	3,974
Income Tax Expense (Benefit)			1,324				1,278				(2,066)				1,928				550
Net income (loss)		$	5,584			$	5,270			$	(6,974)			$	6,186			$	3,424
Earnings (Loss) Per Share
Net income (loss) per common share, basic		$	1.04			$	0.98			$	(1.53)			$	1.74			$	0.97
Net income (loss) per common share, diluted		$	1.04			$	0.98			$	(1.53)			$	1.74			$	0.97

 

EAGLE FINANCIAL SERVICES, INC. Average Balances, Income and Expenses, Yields and Rates (unaudited)
		Three Months Ended
		September 30, 2025												June 30, 2025												September 30, 2024
						Interest												Interest												Interest
(Dollars in thousands)		Average				Income/				Average				Average				Income/				Average				Average				Income/				Average
Assets:		Balance				Expense				Rate				Balance				Expense				Rate				Balance				Expense				Rate
Securities:
Taxable		$	124,891			$	1,353				4.30	%		$	115,712			$	1,260				4.37	%		$	137,183			$	869				2.52	%
Tax-Exempt (1)			—				—				—	%			—				—				—	%			493				5				4.03	%
Total Securities		$	124,891			$	1,353				4.30	%		$	115,712			$	1,260				4.37	%		$	137,676			$	874				2.53	%
Loans:
Taxable		$	1,423,586			$	20,626				5.75	%		$	1,419,117			$	20,309				5.74	%		$	1,461,660			$	21,041				5.73	%
Non-accrual			15,058				—				—	%			16,337				—				—	%			2,553				—				—	%
Tax-Exempt (1)			9,454				121				5.08	%			9,999				126				5.04	%			10,162				129				5.04	%
Total Loans		$	1,448,098			$	20,747				5.68	%		$	1,445,453			$	20,435				5.67	%		$	1,474,375			$	21,170				5.71	%
Federal funds sold and interest-bearing deposits in other banks			336,562				3,858				4.55	%			281,749				3,146				4.48	%			120,272				1,670				5.52	%
Total earning assets		$	1,909,551			$	25,958				5.39	%		$	1,842,914			$	24,841				5.41	%		$	1,732,323			$	23,714				5.45	%
Allowance for credit losses on loans			(15,699)												(15,439)												(14,729)
Total non-earning assets			118,550												105,484												105,884
Total assets		$	2,012,402											$	1,932,959											$	1,823,478
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
NOW accounts		$	314,742			$	1,863				2.35	%		$	303,498			$	1,632				2.16	%		$	254,996			$	1,535				2.39	%
Money market accounts			267,787				1,478				2.19	%			273,415				1,521				2.23	%			261,653				1,555				2.36	%
Savings accounts			125,512				35				0.11	%			130,166				36				0.11	%			132,983				38				0.11	%
Time deposits:
$250,000 and more			170,124				1,761				4.11	%			174,030				1,911				4.41	%			159,761				1,932				4.81	%
Less than $250,000			281,617				2,749				3.87	%			310,108				3,163				4.09	%			294,579				3,359				4.54	%
Total interest-bearing deposits		$	1,159,782			$	7,886				2.70	%		$	1,191,217			$	8,263				2.78	%		$	1,103,972			$	8,419				3.03	%
Federal funds purchased			7				—			n/m					2				—			n/m					12				—			n/m
Federal Home Loan Bank advances			40,000				494				4.90	%			40,824				499				4.90	%			148,804				1,756				4.69	%
Subordinated debt, net			29,552				354				4.75	%			29,535				355				4.82	%			29,484				354				4.78	%
Total interest-bearing liabilities		$	1,229,341			$	8,734				2.82	%		$	1,261,578			$	9,117				2.90	%		$	1,282,272			$	10,529				3.27	%
Noninterest-bearing liabilities:
Demand deposits			579,568												473,911												409,753
Other Liabilities			21,863												20,286												17,838
Total liabilities		$	1,830,772											$	1,755,775											$	1,709,863
Shareholders' equity			181,630												177,184												113,615
Total liabilities and shareholders' equity		$	2,012,402											$	1,932,959											$	1,823,478
Net interest income (1)						$	17,224											$	15,724											$	13,185
Net interest spread											2.57	%											2.51	%											2.18	%
Interest expense as a percent of average earning assets											1.81	%											1.98	%											2.42	%
Net interest margin (1)											3.58	%											3.42	%											3.03	%

N/M - Not meaningful

(1) Non-GAAP financial measure - Income and yields are reported on tax-equivalent basis using a federal tax rate of 21%. Please refer to the "Reconciliation of Tax-Equivalent Net Interest Income" table for additional information.

 

EAGLE FINANCIAL SERVICES, INC. Reconciliation of Tax-Equivalent Net Interest Income (unaudited)
		Three Months Ended
(Dollars in thousands)		9/30/2025				6/30/2025				3/31/2025				12/31/2024				9/30/2024
GAAP Financial Measurements:
Interest Income - Loans		$	20,722			$	20,409			$	19,971			$	21,148			$	21,143
Interest Income - Securities and Other Interest- Earnings Assets			5,211				4,406				3,531				2,846				2,543
Interest Expense - Deposits			7,886				8,263				8,504				8,496				8,419
Interest Expense - Other Borrowings			848				854				1,662				1,999				2,110
Total Net Interest Income		$	17,199			$	15,698			$	13,336			$	13,499			$	13,157
Non-GAAP Financial Measurements:
Add:  Tax Benefit on Tax-Exempt Interest Income - Loans		$	25			$	26			$	27			$	27			$	27
Add:  Tax Benefit on Tax-Exempt Interest Income - Securities			—				—				1				1				1
Total Tax Benefit on Tax-Exempt Interest Income		$	25			$	26			$	28			$	28			$	28
Tax-Equivalent Net Interest Income		$	17,224			$	15,724			$	13,364			$	13,527			$	13,185

 

EAGLE FINANCIAL SERVICES, INC. Reconciliation of Efficiency Ratio (unaudited)
		Three Months Ended
(Dollars in thousands)		9/30/2025				6/30/2025				3/31/2025				12/31/2024				9/30/2024
Summary of Operating Results:
Noninterest expenses (GAAP)		$	14,344			$	13,399			$	12,589			$	13,555			$	12,890
Less: Loss on sale of repossessed assets			—				—				133				—				204
Adjusted noninterest expenses (non-GAAP)		$	14,344			$	13,399			$	12,456			$	13,555			$	12,686
Net interest income			17,199				15,698				13,336				13,499				13,157
Noninterest income (loss) (GAAP)			5,165				4,917				(8,554)				8,521				5,251
Less: (Loss) gain on the sale and disposal of premises and equipment			(2)				—				(16)				3,874				—
Less: (Loss) on the sale of securities			—				—				(12,425)				—				—
Less: Income from life insurance proceeds (1)			—				—				—				—				653
Adjusted noninterest income (non-GAAP)		$	5,167			$	4,917			$	3,887			$	4,647			$	4,598
Tax equivalent adjustment (2)			25				26				28				28				28
Total net interest income and noninterest income, adjusted (non-GAAP)		$	22,391			$	20,641			$	17,251			$	18,174			$	17,783
Efficiency ratio			64.06	%			64.91	%			72.20	%			74.58	%			71.34	%

(1) Included in the consolidated statements of operations under the heading bank owned life insurance income.

(2) Non-GAAP financial measure -Includes tax-equivalent adjustments on loans and securities using the federal statutory tax rate of 21%.

 

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SOURCE Eagle Financial Services, Inc.

FAQ

What dividend did Eagle Financial Services (EFSI) declare on Oct 23, 2025?

The board declared a quarterly cash dividend of $0.31 per common share, payable Nov 14, 2025 to shareholders of record on Nov 3, 2025.

How much net income did EFSI report for Q3 2025 and how did it compare year-over-year?

EFSI reported $5.584M in net income for Q3 2025, up 63.1% year‑over‑year from Q3 2024.

What was EFSI's net interest margin and net interest income in Q3 2025?

Net interest margin was 3.58% and net interest income was $17.2M for Q3 2025.

Did EFSI record loan losses or charge-offs in Q3 2025?

Yes. The company recorded a $1.1M provision for credit losses and $2.3M net charge-offs in Q3 2025.

How did EFSI's loan balances change in the third quarter of 2025?

Loans, net of allowance for credit losses, increased by $22.5M during Q3 2025.

What drove the increase in EFSI's noninterest income in Q3 2025?

Higher wealth management fees (+10.7% Q/Q) and gains on loan sales (mortgage loan sales of $21.5M with a gain of $540K) increased noninterest income.

How did operating expenses affect EFSI's results in Q3 2025?

Noninterest expense rose $945K (7.1%) Q/Q, driven mainly by $872K higher salaries and benefits due to incentive accruals and headcount increases.