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]

Core Viewpoint - Eagle Financial Services reported a decline in net income for the fourth quarter, attributed to lower net interest income and increased staffing expenses, while maintaining a focus on relationship-driven banking and disciplined balance sheet management as it heads into 2026 [2][6]. Financial Performance - The company reported net income of $4.3 million for the fourth quarter, down from $5.6 million in the third quarter, with earnings per diluted share at $0.81 [2][3]. - The annualized return on average assets was 0.91%, and the annualized return on average equity was 9.18% for the quarter [3]. - The efficiency ratio increased to 70.3% from 64.1% in the previous quarter [3]. Income and Expenses - Net interest income decreased by 4.8% to $16.4 million, primarily due to the outflow of excess cash as customers managed proceeds from business sales [4]. - Despite the decline in net interest income, the net interest margin improved slightly to 3.61% from 3.58% [4]. - Non-interest income rose to $5.4 million from $5.2 million, with wealth management fees increasing by 25% to $2.3 million [5]. - Non-interest expenses increased by 8% sequentially to $15.5 million, driven by higher salaries and employee benefits due to increased headcount and performance-related incentives [6].

Core Insights - Eagle Financial Services, Inc. reported a consolidated net income of $4.3 million for Q4 2025, a decrease of 22.4% from Q3 2025 and 29.9% from Q4 2024 [1][3] - The company experienced a 36% increase in annualized return on average assets, driven by a 19% improvement in net interest margin over the year [2] Financial Performance - Consolidated noninterest income for Q4 2025 was $5.4 million, up from $5.2 million in Q3 2025 but down from $8.5 million in Q4 2024 [1][11] - Earnings per share for Q4 2025 were $0.81, compared to $1.04 in Q3 2025 and $1.74 in Q4 2024 [1][36] - Net interest income decreased by 4.8% from Q3 2025 to $16.4 million but increased by 21.3% from Q4 2024 [8] Asset Quality - Nonperforming assets increased slightly to $14.6 million or 0.77% of total assets as of December 31, 2025, from $14.3 million or 0.74% at September 30, 2025 [14] - The ratio of allowance for credit losses to total loans was 1.04% as of December 31, 2025, up from 1.01% at September 30, 2025 [20] Balance Sheet - Total consolidated assets decreased by $43.8 million to $1.89 billion as of December 31, 2025, primarily due to a decrease in cash and cash equivalents [21] - Total net loans increased by $12.6 million to $1.46 billion, driven by growth in commercial real estate and commercial and industrial loans [22] Deposits and Liquidity - Total deposits decreased to $1.61 billion as of December 31, 2025, down from $1.66 billion at September 30, 2025 [23] - The company's liquid assets were $423.4 million, with borrowing availability of $595.3 million, exceeding uninsured deposits by $819.7 million [25] Capital and Dividends - The Board of Directors announced a quarterly cash dividend of $0.31 per common share, payable on February 13, 2026 [28] - Total consolidated equity increased to $188.9 million as of December 31, 2025, up from $185.6 million at September 30, 2025 [29] Market Position - The company successfully completed a public offering of common stock in Q1 2025, raising net proceeds of $53.5 million [29] - The Bank of Clarke was categorized as well capitalized under regulatory standards as of December 31, 2025 [31]

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].

Group 1 - Eagle Financial Services, Inc. declared a regular cash dividend of $0.31 per common share, payable on February 13, 2026, to shareholders of record on February 2, 2026 [1] - The company will release its financial results for the quarter and year ended December 31, 2025, after the market closes on January 26, 2026 [2] - A conference call and webcast to discuss the fourth quarter results will be held on January 27, 2026, with more details to be provided in the earnings release [2] Group 2 - The Bank of Clarke provides a wide range of commercial banking, retail banking, and trust and investment services through 14 branches located in various counties and cities in Virginia [3] - The company also operates a loan production office in Frederick, MD [3] - Eagle Financial Services, Inc.'s common stock is traded on NASDAQ under the symbol EFSI [3]

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].

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]