#United States #stock offering #Berryville #Eagle Financial #Bank of Clarke

Eagle Financial Services Announces Stock Offering Details

Eagle Financial Services, Inc. (OTCQX: EFSI), which is the parent company of Bank of Clarke, has made headlines with its recent announcement regarding the pricing of its public stock offering. The company disclosed that it will be offering 1,562,500 shares at a set price of $32.00 per share. This significant event, occurring in Berryville, Virginia, is slated to generate proceeds estimated at around $47 million, after accounting for underwriting discounts and commissions but before operational expenses.

Details of the Offering

The offering is accompanied by an option for underwriters to acquire an additional 234,375 shares over the subsequent 30 days at the public offering price, exclusive of discounts. Trading of the newly offered shares is anticipated to begin on February 7, 2025, under the ticker symbol EFSI on the Nasdaq Capital Market. This move marks a pivotal step for the company, as it looks to enhance its financial standing and operational capabilities.

Eagle Financial intends to allocate the proceeds for general corporate purposes, which may involve restructuring its balance sheet, especially concerning its portfolio of available-for-sale debt securities. This restructuring aims to bolster capital ratios and aid continuous growth, demonstrating the company’s commitment to maintaining financial health amidst fluctuating market conditions.

Underwriters and Managing Entities

Keefe, Bruyette & Woods, a Stifel Company, has been appointed as the sole bookrunner for this offering, with D.A. Davidson & Co. stepping in as the lead manager. The expected closure date for the offering is approximately set for February 10, 2025, pending customary conditions.

Regulatory Information

The company's stock offering procedures are rooted in a previously declared effective registration statement on Form S-3, filed with the SEC. This ensures compliance and transparency within the financial markets. A preliminary prospectus supplement related to the offering has already been submitted and is available for potential investors to review in detail.

Caution on Forward-Looking Statements

As typical with such announcements, Eagle Financial included a caveat regarding forward-looking statements. Investors are urged to consider the inherent risks and uncertainties attached to such statements, which underline the unpredictable nature of market dynamics and performance expectations. This proactive approach reflects the company's transparency and commitment to its stakeholders.

Company Background

Founded in 1991, Eagle Financial Services is a bank holding company based in Berryville, Virginia, and operates through its subsidiary, Bank of Clarke. The bank provides an extensive range of services including commercial banking, retail banking, and investment management through various branches and offices located within Clarke and Frederick Counties, as well as other areas in Virginia.

In conclusion, Eagle Financial Services is poised to utilize this stock offering as a strategic move to strengthen its capital base and continue supporting its growth trajectory, highlighting its proactive stance in the evolving financial landscape.