#USA #Berryville #Eagle Financial #Bank of Clarke #Q4 2025

Eagle Financial Services Announces Fourth Quarter 2025 Results

Berryville, VA – January 26, 2026 – Eagle Financial Services, Inc. (NASDAQ: EFSI), the parent company of Bank of Clarke, has released its financial results for the fourth quarter of 2025. The company experienced a mixed performance during the quarter, leading to a consolidated net income of $4.3 million, reflecting a decline from both the previous quarter and the same quarter last year.

Financial Performance Highlights

During the three months ending December 31, 2025, Eagle Financial Services reported:

• - Consolidated net income was $4.334 million, down from $5.584 million in the previous quarter and $6.186 million from the same quarter the previous year.
• - Earnings per share (EPS) decreased to $0.81, down from $1.04 in Q3 2025 and $1.74 in Q4 2024.
• - The return on average equity stood at 9.18%, a significant drop from 12.20% in the prior quarter.
• - Net interest margin increased to 3.61%, up from 3.58% in Q3 2025, highlighting a positive trend in interest income.

Significant Variances and Key Metrics

The decline in net income for this quarter compared to Q3 2025 can be attributed primarily to reduced net interest income coupled with increased salaries and employee benefits expenses. Additionally, total noninterest income rose modestly to $5.355 million from $5.165 million in the previous quarter, buoyed by strong performance in wealth management fees that saw a robust increase of 25.8%.

• - Notably, loan interest income climbed to $21.3 million, illustrating growth in commercial and industrial loans. However, overall loan volume saw a slight decrease when compared year-over-year.

• - The company also reported a smaller rise in nonperforming assets, which increased from 0.74% of total assets in Q3 2025 to 0.77% in Q4 2025, hinting at increased credit quality concerns.

CEO Statement

Brandon Lorey, President and CEO of EFSI, expressed optimism despite the challenging earnings report. He noted, "2025 was a pivotal year for our organization, marked by a successful capital raise and strategic balance sheet repositioning that has fortified our stability. The profitability improvements in net interest income indicate a stronger earnings profile moving forward. I extend my sincere appreciation to our dedicated staff and loyal customers who continue to bolster our growth trajectory.”

Operational Strategy and Future Outlook

For 2026, the company's strategic initiatives aim to improve efficiency and performance metrics. Lorey highlighted ongoing efforts to enhance franchise value, positioning the company for sustainable growth in a competitive marketplace.

Eagle Financial Services will hold a conference call to further discuss these results on January 27, 2026, at 10 a.m. ET, inviting shareholders and interested parties to engage with the executive team.

Conclusion

In conclusion, while Eagle Financial Services navigates financial challenges in the fourth quarter of 2025, strategic undertakings and operational adjustments are expected to enhance the company's resilience as it moves forward. Stakeholders will be keeping an eye on the upcoming financial quarters to gauge the success of these initiatives and their impact on shareholder value.