Eagle Financial Services Q4 Earnings Call Highlights

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].