#United States #Berryville #Eagle Financial #Bank of Clarke #EFSI

Eagle Financial Services, Inc. Announces First Quarter 2025 Financial Highlights

Eagle Financial Services, Inc. (NASDAQ: EFSI), the holding company for Bank of Clarke, recently released its financial results for the first quarter of 2025. As part of this announcement, the company's Board of Directors declared a quarterly cash dividend of $0.31 per common share, payable on May 16, 2025, to shareholders on record by May 5, 2025.

Key Financial Results

In comparison to the previous periods, Eagle Financial Services experienced notable changes:

• - Consolidated Net Income: The company reported a net loss of $6.9 million for Q1 2025, contrasting sharply with a net income of $6.2 million in Q4 2024.
• - Earnings Per Share: The loss per share amounted to $1.53, significantly lower than the earnings of $1.74 in the preceding quarter.
• - Annualized Return on Average Equity: This metric dropped to -20.75%, down from 21.10% in the last quarter of 2024.
• - Net Interest Income: Total net interest income was recorded at $13.3 million, showing a slight decline from $13.5 million in Q4.

These figures reflect a challenging quarter influenced by external market conditions and strategic financial decisions.

Dividend Declaration and Shareholder Commitment

Eagle Financial's Board of Directors remains steadfast in its commitment to returning value to shareholders, as demonstrated by the declared dividend in light of the quarterly results. President and CEO Brandon Lorey expressed optimism, highlighting several transformative events, including a successful capital raise that yielded $53.5 million through the sale of 1,796,875 shares of common stock at a price of $32 per share. "The completion of our public offering and our continued core deposit growth indicate a solid foundation for enhanced shareholder value," stated Lorey.

Strategic Moves and Future Expectations

The firm also announced a strategic repositioning of its securities portfolio, aimed at bolstering its financial health for future growth. This move included selling available-for-sale debt securities valued at $99.2 million and reinvesting $66 million into higher-yielding securities. The anticipated result is a more resilient balance sheet capable of generating improved returns.

Lorey further emphasized the importance of a strong deposit base, noting an increase of $42.2 million in core deposits over the quarter, which allowed the company to reduce borrowing and enhance its loan-to-deposit ratio.

Looking ahead, the company affirms its goal to further strengthen its financial position amid volatile economic conditions, maintaining a focus on prudent risk management and growth strategies. Lorey also noted, "We are excited to welcome Cary Nelson as our new Board Chair following Tom Gilpin's retirement. Her leadership will guide us as we navigate future challenges and opportunities."

As of March 31, 2025, Eagle Financial Services held total consolidated assets of $1.90 billion, marking an increase of 2.05% from the prior quarter. Total net loans saw a decline, down to $1.44 billion, impacted by various factors, including sales activity within the company’s mortgage portfolio.

Conclusion

Despite the observed decline in net income, Eagle Financial Services remains focused on long-term value creation for its shareholders through strategic decisions in its investment portfolio and continued growth in core deposits. The leadership's proactive measures, including the dividend announcement and strategic positioning, are expected to pave the way for improved financial performance in the upcoming quarters.