Core Viewpoint - The earnings call for Eagle Financial Services, Inc. focuses on the company's fourth quarter performance and includes discussions on forward-looking statements and non-GAAP financial measures [2][3]. Group 1: Earnings Call Overview - The call is hosted by Jordan, with Nick Smith leading the discussion on the fourth quarter earnings [1]. - Key executives present include CEO Brandon Lorey, CFO Kate Chappell, and Chief Banking Officer Joseph Zmitrovich [3]. Group 2: Financial Reporting - The company will provide forward-looking statements, emphasizing that actual results may differ from these projections [2]. - Non-GAAP financial measures will be discussed, with reconciliations available in the appendix of the presentation on the Investor Relations website [3].

Financial Data and Key Metrics Changes - The company reported net income of $4.3 million for Q4, down from $5.6 million in Q3, primarily due to lower net interest income and higher salaries and benefits [4] - The annualized return on average assets was 0.91% and return on average equity was 9.18% for the quarter [7] - The efficiency ratio increased to 70.3% in Q4 from 64.1% in Q3, reflecting lower net interest income and higher operating expenses [8][10] Business Line Data and Key Metrics Changes - Non-interest income totaled $5.4 million in Q4, up from $5.2 million in Q3, with wealth management fees increasing to $2.3 million, a 25% rise from Q3 [9] - The loan portfolio expanded by $13.1 million, driven by $67 million in total originations and $18.5 million growth in commercial loan categories [11] Market Data and Key Metrics Changes - Non-performing assets (NPAs) ended the year at $14.6 million, or 0.77% of total assets, compared to $14.3 million, or 0.74% last quarter [4] - Demand in all markets remains steady, with a loan pipeline up over $100 million compared to January 2025 [12] Company Strategy and Development Direction - The company aims to build a more granular and relationship-driven loan portfolio, grow core deposits, and expand markets [5] - The approach to mergers and acquisitions remains disciplined, focusing on opportunities that enhance the strength and value of the franchise [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the collateral position and outlook despite higher NPAs due to large relationships moving to non-accrual [4] - The company is optimistic about future accomplishments and continues to engage with potential bank partners aligned with its community-focused model [13][14] Other Important Information - Non-interest expense was $15.5 million, representing an 8% increase compared to Q3, driven by higher salaries and employee benefits [10] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - The company reported net income of $4.3 million for Q4, down from $5.6 million in Q3, primarily due to lower net interest income and higher salaries and benefits [4] - The annualized return on average assets was 0.91% and return on average equity was 9.18% for the quarter [7] - The efficiency ratio increased to 70.3% in Q4 from 64.1% in Q3, driven by lower net interest income and higher operating expenses [8][10] Business Line Data and Key Metrics Changes - Net interest income for Q4 was $16.4 million, a 4.8% decrease from Q3 due to cash outflows as customers disposed of business sale proceeds [8] - Non-interest income rose to $5.4 million in Q4 from $5.2 million in Q3, with wealth management fees increasing by 25% to $2.3 million [9] - The loan portfolio expanded by $13.1 million, with total originations at $67 million and growth in commercial loan categories of $18.5 million [11] Market Data and Key Metrics Changes - Non-performing assets (NPAs) increased to $14.6 million, or 0.77% of total assets, compared to $14.3 million, or 0.74%, in the previous quarter [4] - The company experienced strong organic loan growth despite expected headwinds from marine runoff, indicating resilience in its commercial lending activities [5][12] Company Strategy and Development Direction - The company aims to build a more granular and relationship-driven loan portfolio, grow core deposits, and expand into new markets [5] - The management is focused on maintaining credit discipline and supporting quality growth while exploring potential bank partnerships that align with its community-focused model [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the collateral position and outlook despite the increase in NPAs [4] - The company anticipates that the efficiency ratio will move slightly below 70% in 2026 as spread income improves and expenses normalize [10] - The management is optimistic about the company's ability to deliver meaningful and sustainable growth moving forward [14] Other Important Information - The company continues to engage in conversations regarding potential mergers and acquisitions, maintaining a disciplined approach [13] Q&A Session Summary - No specific questions and answers were provided in the content.

Financial Data and Key Metrics Changes - The company reported net income of $4.3 million for Q4 2025, down from $5.6 million in Q3 2025, primarily due to lower net interest income and higher salaries and benefits [4] - The annualized return on average assets was 0.91% and the annualized return on average equity was 9.18% for the quarter [7] - The efficiency ratio increased to 70.3% in Q4 from 64.1% in Q3, reflecting lower net interest income and higher operating expenses [7] Business Line Data and Key Metrics Changes - Net interest income for Q4 was $16.4 million, a 4.8% decrease from Q3, attributed to the outflow of excess cash [7] - Non-interest income rose to $5.4 million in Q4, up from $5.2 million in Q3, with wealth management fees increasing by 25% to $2.3 million [9] - The loan portfolio expanded by $13.1 million in Q4, driven by $67 million in total originations and $18.5 million growth in commercial loan categories [11] Market Data and Key Metrics Changes - The company experienced a $10.3 million reduction in the marine portfolio, but overall demand in all markets remained steady [12] - The loan pipeline increased by over $100 million compared to January 2025, indicating solid opportunities in both established and new markets [12] Company Strategy and Development Direction - The company aims to build a more granular and relationship-driven loan portfolio, grow core deposits, and expand markets [5] - The approach to mergers and acquisitions remains disciplined, focusing on opportunities that enhance the strength and value of the franchise [14] - The company is committed to organic growth while also exploring potential partnerships that align with its community-focused model [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the collateral position and outlook despite an increase in non-performing assets [4] - The company is optimistic about its ability to deliver meaningful and sustainable growth, supported by a strong foundation and effective execution [14] Other Important Information - Non-interest expense for Q4 was $15.5 million, representing an 8% increase compared to Q3, driven by higher salaries and employee benefits [9] - The efficiency ratio is expected to move slightly below 70% in 2026 as spread income improves and expenses normalize [10] Q&A Session Summary Question: What are the expectations for wealth management fees in 2026? - Management expects wealth management fees and gain on sale revenue to remain generally consistent with 2025 levels [9] Question: How is the company addressing the increase in non-performing assets? - Management remains confident in the collateral position and outlook despite the increase in non-performing assets [4] Question: What is the strategy for loan growth moving forward? - The company plans to maintain a focus on strengthening relationships, credit discipline, and supporting quality growth in its loan portfolio [12]

Eagle Financial Services logo Eagle Financial Services (NASDAQ:EFSI) executives highlighted steady credit quality, continued commercial loan growth and a more expense-heavy quarter during the company’s fourth-quarter earnings call, while reiterating a focus on relationship-driven banking and disciplined balance sheet management heading into 2026. Fourth-quarter profitability and key drivers CEO Brandon Lorey said the company’s fourth-quarter results reflected “the progress we’ve made throughout 2025 an ...

BERRYVILLE, Va., Jan. 26, 2026 /PRNewswire/ -- Eagle Financial Services, Inc. (NASDAQ: EFSI) (the "Company"), the holding company for Bank of Clarke, announced its fourth quarter 2025 results. The following table presents selected financial performance highlights for the periods indicated: | Three Months Ended | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | December 31, | September 30, | December | 31, | | | | | | | 2025 | 2025 | 2024 | | | | | | | | (in thousands) | | | | | | | ...

Financial Performance - Consolidated net income for Q4 2025 was $4.3 million, a decrease of 22.4% from $5.6 million in Q3 2025 and a decrease of 29.9% from $6.2 million in Q4 2024[5]. - Net income for 4Q25 was $4,334,000, a decrease of 22.3% from $5,584,000 in 3Q25[34]. - Earnings per share (diluted) for 4Q25 was $0.81, down from $1.04 in 3Q25, reflecting a decline of 22.1%[34]. - GAAP net income for the three months ended December 31, 2025, was $4,334,000, a decrease from $5,584,000 in the previous quarter[49]. - Non-GAAP net income for the same period was $4,334,000, compared to $5,584,000 in the prior quarter, reflecting a consistent performance[49]. Income and Revenue - Non-interest income increased to $5.4 million in Q4 2025, up 3.8% from $5.2 million in Q3 2025, but down 36.5% from $8.5 million in Q4 2024[11]. - Wealth management fee income rose 25.8% to $2.3 million in Q4 2025 compared to Q3 2025, and increased by 66.7% compared to Q4 2024[3][11]. - Net interest income for Q4 2025 was $16.4 million, reflecting a decrease of 4.8% from $17.2 million in Q3 2025 but an increase of 21.3% from $13.5 million in Q4 2024[8]. - Total interest and dividend income for the three months ended June 30, 2025, was $24,755 million, an increase from $23,502 million in the previous quarter[45]. - Net interest income after provision for credit losses was $15,693 million for the three months ended June 30, 2025, compared to $12,103 million in the same period last year, reflecting a year-over-year increase of 29.5%[45]. Asset and Liability Management - Total consolidated assets decreased by $43.8 million or 2.27% to $1.89 billion as of December 31, 2025, compared to $1.93 billion at September 30, 2025[20]. - Total deposits decreased to $1.61 billion as of December 31, 2025, down from $1.66 billion at September 30, 2025, primarily due to $74.4 million of funds leaving the bank during the fourth quarter[22]. - Total liabilities decreased to $1,699,787 million from $1,746,892 million in the previous quarter, a decline of 2.69%[43]. - Total consolidated equity increased by $69.9 million to $188.9 million at December 31, 2025, compared to December 31, 2024[27]. Credit Quality - Nonperforming assets rose to $14.6 million, or 0.77% of total assets, in Q4 2025, up from $14.3 million, or 0.74%, in Q3 2025[13]. - The ratio of allowance for credit losses to total loans increased to 1.04% as of December 31, 2025, up from 1.01% at September 30, 2025, reflecting increased loss rates[19]. - The Company recorded $747 thousand in provision for credit losses on loans for the quarter ended December 31, 2025, compared to $1.1 million for the quarter ended September 30, 2025[19]. - The Company realized $237 thousand in net charge-offs for the quarter ended December 31, 2025, a significant decrease from $2.3 million in the previous quarter[18]. Operational Efficiency - The efficiency ratio increased to 70.39% in 4Q25 from 64.06% in 3Q25, indicating higher operational costs relative to income[34]. - Noninterest expenses increased by 8.3% to $15.5 million in Q4 2025 from $14.3 million in Q3 2025, and were up 14.6% from $13.6 million in Q4 2024[12]. - Total noninterest expenses were $15,539 million for the three months ended June 30, 2025, compared to $14,344 million in the previous quarter, representing an increase of 8.3%[45]. Market Response - The closing stock price rose to $39.80 in 4Q25 from $37.83 in 3Q25, reflecting a positive market response[39]. - The Company announced a quarterly common stock cash dividend of $0.31 per share, payable on February 13, 2026[26].

BERRYVILLE, Va., Jan. 21, 2026 /PRNewswire/ -- Eagle Financial Services, Inc. (NASDAQ: EFSI) (the Company), the holding company for Bank of Clarke, declared a regular cash dividend on January 21, 2026, of $0.31 per common share payable February 13, 2026, to shareholders of record on February 2, 2026. Eagle Financial Services, Inc. will release its financial results for the quarter and year ended December 31, 2025, after the market closes on January 26, 2026. The Company will also host a listen-only confere ...

Financial Performance - For the three months ended September 30, 2025, net income increased by $2.2 million, or 63.1%, compared to the same period in 2024, while for the nine months ended September 30, 2025, net income decreased by $5.3 million, or 57.6%, compared to the same period in 2024[158]. - The company reported a net income of $4.414 million for the three months ended September 30, 2025, a 130% increase from $1.921 million in 2024[205]. - Noninterest income for the three months ended September 30, 2025, was $5.2 million, slightly down from $5.3 million in Q3 2024[181]. Assets and Liabilities - As of September 30, 2025, the Company reported total assets of $1.93 billion, net loans of $1.45 billion, total deposits of $1.66 billion, and shareholders' equity of $185.6 million[147]. - Total assets as of September 30, 2025, were $2,012,402,000, up from $1,823,478,000 in the same period of 2024, reflecting a growth of 10.4%[160]. - Total deposits rose to $1.66 billion at September 30, 2025, a $79.9 million increase or 5.07% from $1.58 billion at December 31, 2024[236]. Income and Expenses - Total noninterest expenses increased by $1.5 million, or 11.28%, for the three months ended September 30, 2025, and by $2.6 million, or 6.76%, for the nine months ended September 30, 2025, compared to the same periods in 2024[191]. - Salaries and employee benefits rose by 15% to $8.717 million for the three months ended September 30, 2025, compared to $7.548 million in 2024[192]. - Other operating expenses rose by $412 thousand, or 27.56%, during the three months ended September 30, 2025, compared to the same period in 2024[200]. Interest Income and Margin - Net interest income for the three months ended September 30, 2025, was $17.2 million, compared to $13.2 million for the same period in 2024, reflecting a significant increase[158]. - The net interest margin (non-GAAP) improved to 3.58% for the three months ended September 30, 2025, up from 3.03% in the same period of 2024[160]. - Net interest income increased to $17.2 million for Q3 2025, up 30.6% from $13.2 million in Q3 2024[169]. Credit Losses - The provision for credit losses for the three months ended September 30, 2025, was $1.1 million, compared to $1.5 million for the same period in 2024[158]. - Total charge-offs for the three months ended September 30, 2025, were $2.4 million, compared to $1.4 million for the same period in 2024, representing a 75% increase[225]. - The allowance for credit losses on loans was $15,699,000 as of September 30, 2025, compared to $14,729,000 as of September 30, 2024, indicating an increase of 6.6%[160]. Capital and Ratios - As of September 30, 2025, the Bank's Common Equity Tier 1 capital ratio increased to 14.29% from 11.04% at December 31, 2024[244]. - The Bank's Total Risk-Based Capital ratio rose to 15.25% at September 30, 2025, compared to 12.00% at December 31, 2024[244]. - The allowance for credit losses on loans to nonperforming assets ratio was 104% at September 30, 2025, down from 581% at December 31, 2024[231]. Shareholder Information - The company declared dividends of $0.93 per share for the nine months ended September 30, 2025, compared to $0.90 per share in the same period of 2024[241]. - The Company completed a public offering of 1,796,875 shares at a price of $32.00 per share, generating net proceeds of $53.5 million[148]. Securities and Investments - The Company recognized a loss on the sale of available for sale securities totaling $9.8 million, net of tax, during the nine months ended September 30, 2025[158]. - The company reported a net pre-tax loss of $12.4 million from the sale of available for sale debt securities totaling $99.2 million, with a fair value of $86.8 million[208]. - The company purchased $102.2 million of securities during the nine months ended September 30, 2025, including $66.0 million as part of balance sheet repositioning transactions[213].

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