Eagle Financial Services Inc(EFSI) - 2025 Q4 - Annual Results

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].