Eagle Financial Services, Inc. Announces Pricing of Common Stock Offering

Rhea-AI Summary

Eagle Financial Services (OTCQX: EFSI) has announced the pricing of its underwritten public offering of 1,562,500 shares of common stock at $32.00 per share. The company expects to raise approximately $47.0 million in proceeds after deducting underwriting costs but before operating expenses.

The underwriters have a 30-day option to purchase up to an additional 234,375 shares. Trading is expected to begin on the Nasdaq Capital Market on February 7, 2025, under the ticker symbol 'EFSI'. The offering is anticipated to close around February 10, 2025.

The company plans to use the net proceeds for general corporate purposes, including potential balance sheet restructuring through repositioning their available-for-sale debt securities portfolio and supporting capital ratios and continued growth. Keefe, Bruyette & Woods is serving as the sole bookrunner, with D.A. Davidson & Co. acting as lead manager.

Positive

• Uplisting from OTCQX to Nasdaq Capital Market, potentially increasing stock visibility and liquidity
• Successful capital raise of $47.0 million strengthening the company's financial position
• Additional potential capital through 30-day option for 234,375 shares

Negative

• Potential dilution for existing shareholders due to issuance of 1,562,500 new shares
• Additional dilution possible if underwriters exercise their option for 234,375 shares

News Market Reaction

-3.20%

1 alert

-3.20% News Effect

On the day this news was published, EFSI declined 3.20%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BERRYVILLE, Va. , Feb. 6, 2025 /PRNewswire/ -- Eagle Financial Services, Inc. (OTCQX: EFSI) (the "Company"), parent company of Bank of Clarke, today announced the pricing of its previously announced underwritten public offering of 1,562,500 shares of its common stock at a public offering price of $32.00 per share. The expected proceeds to the Company, after deducting underwriting discounts and commissions but before deducting operating expenses payable by the Company, are approximately $47.0 million. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 234,375 shares of Company common stock at the public offering price, less underwriting discounts, and commissions.  The shares are expected to begin trading on the Nasdaq Capital Market on February 7, 2025 under the ticker symbol "EFSI."

The Company intends to use the net proceeds from this offering for general corporate purposes, which may include balance sheet restructuring through the repositioning of our available-for-sale debt securities portfolio, and to support our capital ratios and our continued growth.

Keefe, Bruyette & Woods, A Stifel Company is serving as the sole bookrunner for the offering, and D.A. Davidson & Co. is acting as the lead manager.

The Company expects to close the offering, subject to customary conditions, on or about February 10, 2025.

Additional Information Regarding the Offering

The offering of common stock is being made pursuant to a registration statement on Form S-3 (File No. 333-269804) that was declared effective by the Securities and Exchange Commission (the "SEC") on February 28, 2023. A preliminary prospectus supplement to which this communication relates has been filed with the SEC. A final prospectus supplement and accompanying prospectus will be filed with the SEC. Prospective investors should read the preliminary prospectus supplement and the accompanying prospectus and other documents the Company has filed with the SEC for more complete information about the Company and the offering. Copies of these documents are available at no charge by visiting the SEC's website at www.sec.gov. When available, copies of the preliminary prospectus supplement, the final prospectus supplement and accompanying prospectus related to the offering may be obtained by contacting Keefe, Bruyette & Woods, A Stifel Company by telephone at (800) 966-1559 or by e-mail at USCapitalMarkets@kbw.com.

No Offer or Solicitation

This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Eagle Financial Services, Inc.

Eagle Financial Services, Inc. (OTCQX: EFSI) (the "Company")is a bank holding company that was incorporated in 1991. The Company is headquartered in Berryville, Virginia and conducts its operations through its subsidiary, Bank of Clarke, which is chartered under Virginia law.  The Bank of Clarke offers a broad range of commercial banking, retail banking and trust and investment services through its thirteen full-service branches, two loan production offices, one wealth management office and one drive-through only facility located throughout Clarke and Frederick Counties, as well as the City of Winchester, towns of Purcellville and Leesburg and Ashburn, Virginia. 

Special Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan" or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company's expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company's forward-looking information and statements proves incorrect, then the Company's actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company's forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 under the section entitled "Risk Factors," and other documents filed by the Company with the SEC from time to time.

The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

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SOURCE Eagle Financial Services, Inc.

FAQ

What is the price per share for EFSI's public offering?

Eagle Financial Services (EFSI) has priced its public offering at $32.00 per share.

How many shares is EFSI offering in its public offering?

EFSI is offering 1,562,500 shares of common stock, with an additional 30-day option for underwriters to purchase up to 234,375 shares.

When will EFSI begin trading on the Nasdaq Capital Market?

EFSI shares are expected to begin trading on the Nasdaq Capital Market on February 7, 2025.

How much money does EFSI expect to raise from the offering?

EFSI expects to raise approximately $47.0 million in proceeds after deducting underwriting costs but before operating expenses.

What will EFSI use the proceeds from the offering for?

EFSI plans to use the proceeds for general corporate purposes, including balance sheet restructuring, supporting capital ratios, and continued growth.

When is EFSI's public offering expected to close?

The offering is expected to close on or about February 10, 2025, subject to customary conditions.