Eagle Financial Services, Inc. Unveils New Common Stock Offering Strategy

Eagle Financial Services Launches Public Common Stock Offering

Eagle Financial Services, Inc. (OTCQX: EFSI), the holding company for Bank of Clarke, is charting a pivotal course in its growth strategy. Announced on February 6, 2025, the company has initiated an underwritten public offering of common stock shares, signaling a bold move in an ever-evolving financial landscape.

The decision to launch this stock offering comes alongside an intention to grant underwriters a 30-day option to purchase additional shares. This strategy aims to position the company favorably on the Nasdaq Capital Market, where its common stock has received the green light for listing under the symbol 'EFSI.' This new avenue is expected to bolster the institution's capital structure significantly.

Eagle Financial Services is on a mission to harness the net proceeds from this stock offering for a variety of corporate purposes. Such purposes include potential restructuring of their balance sheet and enhancing capital ratios to support ongoing growth trajectories. The proposed repositioning of their available-for-sale debt securities portfolio is also a pivotal component of their strategy. Representatives from the company expressed their commitment to ensuring that the capital raised through the stock offering is utilized wisely to foster long-term sustainability.

Keefe, Bruyette & Woods, a Stifel Company, fulfills the role of sole bookrunner, while D.A. Davidson & Co. takes charge as the lead manager for this offering. Their expertise is expected to lend substantial support in navigating this complex state of financial affairs.

Important Details on the Offering

The offering of common stock is conducted under a registration statement on Form S-3 (File No. 333-269804), which the Securities and Exchange Commission (SEC) declared effective as of February 28, 2023. A preliminary prospectus has already been filed with the SEC. Investors interested in this offering are encouraged to examine the preliminary documents as they are pivotal in understanding the finer details surrounding the offering, including associated risks and opportunities.

Potential investors can access these documents through the SEC’s website at www.sec.gov, ensuring transparency in every step of the process. Copies of the preliminary prospectus supplement and the eventual final prospectus arising from this offering will provide crucial insights into the offering's full scope and implications.

Importantly, this release is not intended as an offer or solicitation for any securities. Eagle Financial Services is keen to stress that no securities will be sold in any jurisdiction where such matters would be unlawful prior to the necessary registrations.

About Eagle Financial Services, Inc.

Founded in 1991, Eagle Financial Services, Inc. is headquartered in Berryville, Virginia, and operates through its wholly-owned subsidiary, Bank of Clarke. The bank, chartered under Virginia state laws, provides a comprehensive suite of services, including commercial banking, retail banking, and a variety of trust and investment services. With a network comprising thirteen full-service branches and additional facilities across Clarke and Frederick Counties and other localities in Virginia, the company boasts a robust operational footprint.

The company aims to maintain service excellence while continuously adapting to market trends and consumer needs.

Navigating Forward: Understanding the Risks

As for all corporate ventures, several inherent risks accompany these forward-looking statements. These include potential shifts in market conditions and regulatory landscapes—a reality that Eagle Financial Services continues to navigate diligently. The company underscores the significance of investor discretion, advising stakeholders to consider these factors when assessing their engagement with the stock offering, as actual outcomes may diverge from expectations.

In conclusion, the launch of this common stock offering marks a significant milestone for Eagle Financial Services, aligning its resources towards strengthening its position in the financial industry while achieving ambitious growth goals in the years ahead.