Form 8-K

8-K — EAGLE FINANCIAL SERVICES INC

Accession: 0001193125-26-173960

Filed: 2026-04-23

Period: 2026-04-23

CIK: 0000880641

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Regulation FD Disclosure

Item: Financial Statements and Exhibits

Documents

8-K — efsi-20260423.htm (Primary)

EX-99.1 (efsi-ex99_1.htm)

EX-99.2 (efsi-ex99_2.htm)

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8-K

8-K (Primary)

Filename: efsi-20260423.htm · Sequence: 1

8-K

false000088064100008806412026-04-232026-04-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 23, 2026

EAGLE FINANCIAL SERVICES, INC.

(Exact name of Registrant as Specified in Its Charter)

Virginia

001-42512

54-1601306

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

2 East Main Street

Berryville, Virginia

22611

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (540) 955-2510

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common stock, $2.50 par value per share

EFSI

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On April 23, 2026, the Registrant issued a press release announcing the results for the quarter ended March 31, 2026.

A copy of the Company’s press release with respect to the results for the quarter ended March 31, 2026 is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02. The Registrant also announced in the press release that it will host a conference call for investors and analysts on Friday, April 24, 2026 at 10 a.m. (Eastern Time) to discuss first quarter results.

Item 7.01 Regulation FD Disclosure

Attached as Exhibit 99.2 to this report is the earnings presentation which also may be used in connection with potential meetings with investors and/or analysts.

The information provided pursuant to these Items 2.02 and 7.01 is to be considered “furnished” pursuant to Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference into any of the Company’s reports or filings under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such report or filing. The filing of this Current Report shall not be deemed an admission as to the materiality of any information in the Current Report that is required to be disclosed solely by reason of Regulation FD.

A cautionary note about forward-looking statements: This Current Report may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can include statements about estimated cost savings, plans and objectives for future operations and expectations about the Company’s financial and business performance as well as economic and market conditions. They often can be identified by the use of words like “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe” or “anticipate.” By their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. You are cautioned that actual results may differ materially from those contained in the forward-looking statement.

Any forward-looking statements are intended to speak only as of the date of this Current Report, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the forward-looking statement is made or to reflect the occurrence of unanticipated events.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit

No.

Description

99.1

99.2

104

Press release, dated April 23, 2026

Eagle Financial Services, Inc. Investor Presentation

Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 23, 2026

Eagle Financial Services, Inc.

By:

/s/ KATHLEEN J. CHAPPELL

Kathleen J. Chappell

Executive Vice President and CFO

EX-99.1

Filename: efsi-ex99_1.htm · Sequence: 2

EX-99.1

Exhibit 99.1

EAGLE FINANCIAL SERVICES, INC. ANNOUNCES

2026 FIRST QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND

Contact:

Kathleen J. Chappell, Executive Vice President and CFO

540-955-2510

kchappell@bankofclarke.com

BERRYVILLE, VIRGINIA (April 23, 2026) – Eagle Financial Services, Inc. (NASDAQ: EFSI) (the "Company"), the holding company for Bank of Clarke, announced its first quarter 2026 results. Also, on April 23, 2026, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on May 15, 2026, to shareholders of record on May 4, 2026. The following table presents selected financial performance highlights for the periods indicated:

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

(Dollars in thousands, except per share data)

As adjusted (1)

Consolidated net income (loss)

3,740

4,334

(6,974

)

2,842

Consolidated noninterest income (loss)

4,928

5,355

(8,554

)

3,871

Earnings (loss) per share - basic and diluted

0.69

0.81

(1.53

)

0.62

Annualized return on average equity

7.98

9.18

-20.75

8.46

Annualized return on average assets

0.81

0.91

-1.48

0.59

Net interest margin

3.63

3.61

2.98

(1) Non-GAAP financial measure - Excluding the tax effected impact of the loss on sale of securities in connection with the Company's balance sheet repositioning transactions during the quarter ended March 31, 2025. See the "Reconciliation of GAAP to Non-GAAP Performance Highlights" table for a reconciliation of these measures to comparable measures calculated in accordance with GAAP.

Additional key highlights for the first quarter of 2026 are as follows:

•

Net interest margin increased from 3.61% for the quarter ended December 31, 2025 to 3.63% for the quarter ended March 31, 2026. Net interest spread increased from 2.74% for the quarter ended December 31, 2025 to 2.80% for the quarter ended March 31, 2026.

•

Efficiency ratio decreased from 70.39% for the quarter ended December 31, 2025 to 67.97% for the quarter ended March 31, 2026.

Brandon Lorey, President and CEO, stated, "Our first quarter results reflect steady progress in our core operating performance and continued improvement in several key metrics. Net interest margin increased modestly, efficiency improved from the prior quarter, and asset quality remained stable. These results demonstrate the impact of the balance sheet actions we have taken and our ongoing focus on disciplined execution. We continue to maintain solid capital and liquidity levels, which positions us to thoughtfully support our customers and communities while remaining mindful of the broader economic environment."

Summary

Total net income for the quarters ended March 31, 2026 and December 31, 2025 was $3.7 million and $4.3 million, respectively. Net loss was $7.0 million for the quarter ended March 31, 2025. For the quarter ended March 31, 2026, net income decreased $594 thousand or 13.7% from the quarter ended December 31, 2025 and increased $10.7 million or 153.6% from the quarter ended March 31, 2025. The decrease from the quarter ended December 31, 2025 was due to a decrease in interest and dividend income as well as an increase in the provision for credit losses during the quarter ended March 31, 2026. These changes are discussed below in greater detail. The increase from the quarter ended March 31, 2025 was primarily due to the loss on sales of securities as a part of the balance sheet repositioning during the first quarter of 2025. Excluding the net of tax effected impact of the $12.4 million loss recognized during the first quarter of 2025 from the balance sheet repositioning, adjusted net income for the quarter ended March 31, 2025 was $2.8 million. This is a non-GAAP financial measure. Please refer to the "Reconciliation of GAAP to Non-GAAP Performance Highlights" table for additional information. The increase in net income for the quarter ended March 31, 2026 compared to the as-adjusted quarter ended March 31, 2025 was due to several factors. Gain on sale of loans held for sale increased by $583 thousand as well as net interest income, which increased by $2.6 million. These increases were partially offset by increases in noninterest expenses of $1.6 million. These changes are discussed below in greater detail.

Interest Income

Total loan interest income was $20.7 million and $21.3 million for the quarters ended March 31, 2026 and December 31, 2025, respectively. Total loan interest income was $20.0 million for the quarter ended March 31, 2025. Total loan interest income decreased $555 thousand or 2.6% from the quarter ended December 31, 2025 to the quarter ended March 31, 2026. Average loans decreased by $10.2 million or 0.7% from the quarter ended December 31, 2025 to the quarter ended March 31, 2026. The tax equivalent yield on average loans for the quarter ended March 31, 2026 was 5.77%, an increase of one basis point from the 5.76% average yield for the quarter ended December 31, 2025. The slight increase in loan interest income between the quarters ended March 31, 2026 and March 31, 2025 was mainly due to an increase in interest rates. The tax equivalent yield on average loans for the quarter ended March 31, 2026 was 5.77%, an increase of 20 basis points from the 5.57% average yield for the quarter ended March 31, 2025. Average loans remained stable at $1.46 billion for the quarter ended March 31, 2026 and March 31, 2025. Early during the first quarter of 2025, ahead of its public offering, the Company sold a pool of mortgage loans at par in order to bolster on-balance sheet liquidity. This pool had a total balance of $18.8 million with a weighted average yield of 6.58%.

Interest and dividend income from the investment portfolio was $1.3 million for the quarters ended March 31, 2026 and December 31, 2025. Interest and dividend income from the investment portfolio was $848 thousand for the quarter ended March 31, 2025. The tax equivalent yield on average investments for the quarter ended March 31, 2026 was 4.34%, up nine basis points from 4.25% for the quarter ended December 31, 2025 and up 141 basis points from 2.93% for the quarter ended March 31, 2025. The increase in yield was due largely to lower yielding investments sold during the first quarter of 2025 being replaced with higher yielding securities. During the quarter ended March 31, 2025, $99.2 million in securities were sold with a weighted average yield of 1.72%. During the same quarter, $76.0 million in securities were purchased. Of the $76.0 million in securities purchased, $66.0 million were purchased as a part of the executed balance sheet repositioning with a weighted average yield of 4.72%.

Interest Expense

Total interest expense was $7.9 million and $8.4 million for the three months ended March 31, 2026 and December 31, 2025, respectively, and $10.2 million for three months ended March 31, 2025. The decrease in interest expense between the quarter ended December 31, 2025 and the quarter ended March 31, 2026 was mainly due to lower interest expense on deposits. The average balance of interest-bearing deposits increased by $4.7 million during this time period but the average yield paid on these deposits decreased by six basis points for the same period. The decrease in interest expense between the quarter ended March 31, 2025 and the quarter ended March 31, 2026 was largely due to a $964 thousand decrease in Federal Home Loan Bank of Atlanta ("FHLB") interest expense. The average balance of FHLB advances decreased $82.1 million from the quarter ended March 31, 2025 to the same period in 2026. The decrease was also attributable to lower interest expense on deposits by $1.3 million for the same comparative periods. The average balance of interest-bearing deposits decreased by $21.2 million during this time period and the average yield paid on these deposits decreased by 39 basis points for the same period.

Net Interest Income

Net interest income for the quarter ended March 31, 2026 was $15.9 million reflecting a decrease of 2.9% from the quarter ended December 31, 2025 and an increase of 19.2% from the quarter ended March 31, 2025. Net interest income was $16.4 million and $13.3 million, respectively, for the quarters ended December 31, 2025 and March 31, 2025.

The net interest margin was 3.63% for the quarter ended March 31, 2026. For the quarters ended December 31, 2025 and March 31, 2025, the net interest margin was 3.61% and 2.98%, respectively. The increase in the net interest margin from December 31, 2025 was mainly due to the decrease in yield paid on interest bearing liabilities. The increase in the net interest margin from March 31, 2025 can be attributed to two main factors. Both the repositioning of the securities portfolio and the run off of higher interest bearing non core deposits during the period had a positive impact to the net interest margin. The net interest spread increased to 2.80% for the quarter ended March 31, 2026 from 2.13% for the quarter ended March 31, 2025.

The Company’s net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitable earning assets are funded. The Company’s net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 21%. This is a non-GAAP financial measure. Please refer to the "Reconciliation of Tax-Equivalent Net Interest Income" table for additional information.

Noninterest Income and Expense

Total noninterest income was $4.9 million and $5.4 million for the quarters ended March 31, 2026 and December 31, 2025 respectively. Total noninterest loss was $8.5 million for the quarter ended March 31, 2025.

For The Three Months Ended

(Dollars in thousands)

3/31/2026

12/31/2025

$ Change

% Change

3/31/2025

$ Change

% Change

Noninterest Income

Wealth management fees

1,782

2,299

(517

)

-22.5

1,681

101

6.0

Service charges on deposit accounts

556

574

(18

)

-3.1

492

13.0

Other service charges and fees

921

1,009

(88

)

-8.7

972

(51

)

-5.2

(Loss) on the sale and disposal of bank premises and equipment

—

)

(16

)

(Loss) on the sale of AFS securities

—

(12,425

)

12,425

Gain on sale of loans held for sale

1,012

830

182

21.9

429

583

135.9

Small business investment company income

266

226

565.0

246

1230.0

Bank owned life insurance income

284

280

1.4

273

4.0

Other operating income

107

324

(217

)

-67.0

435.0

Total noninterest income (loss)

4,928

5,355

(427

)

-8.0

(8,554

)

13,482

-157.6

The decrease in total noninterest income for the first quarter of 2026 compared to the fourth quarter of 2025 was primarily driven by lower wealth management fee income. The prior quarter benefited from higher transaction‑based revenues related to estates and other services, which did not recur at the same level in the first quarter. This decline was partially offset by an increase in small business investment company income. Cash distributions from these investments are dependent on performance results and the timing of distributions, which can result in quarter‑to‑quarter fluctuations.

Noninterest income, as adjusted to exclude the one-time effect of the previously disclosed significant transaction, was $3.9 million for the quarter ended March 31, 2025. This is a non-GAAP financial measure. Please refer to the "Reconciliation of GAAP to Non-GAAP Performance Highlights" table for additional information. When comparing the first quarter of 2026 to the as adjusted first quarter of 2025, gain on sale of loans held for sale was the largest driver of the increase between the periods. This increase was due to increased volume in both small business administration "SBA" and mortgage loans sold. The volume of SBA loans sold increased from $2.0 million during the quarter ended March 31, 2025 to $10.0 million for the same period in 2026. Mortgage loan sales volume increased from $14.9 million during the quarter ended March 31, 2025 to $16.6 million for the same period in 2026.

Noninterest expense decreased $1.3 million, or 8.5%, to $14.2 million for the quarter ended March 31, 2026 from $15.5 million for the quarter ended December 31, 2025. Noninterest expense was $12.6 million for the quarter ended March 31, 2025, representing an increase of $1.6 million or 12.9% when comparing to the quarter ended March 31, 2026.

For The Three Months Ended

(Dollars in thousands)

3/31/2026

12/31/2025

$ Change

% Change

3/31/2025

$ Change

% Change

Noninterest Expenses

Salaries and employee benefits

8,229

9,462

(1,233

)

-13.0

7,179

1,050

14.6

Occupancy expenses

666

663

0.5

662

0.6

Equipment expenses

462

442

4.5

423

9.2

Advertising and marketing expenses

191

209

(18

)

-8.6

183

4.4

Stationery and supplies

130.0

9.5

ATM network fees

327

324

0.9

362

(35

)

-9.7

Other real estate owned expense (gain), net

)

(25

)

—

)

Loss on the sale of other real estate owned

—

(51

)

—

Loss of sale of repossessed assets

169

(130

)

-76.9

133

(94

)

-70.7

FDIC assessment

227

200

13.5

322

(95

)

-29.5

Computer software expense

354

373

(19

)

-5.1

282

25.5

Bank franchise tax

481

388

24.0

367

114

31.1

Professional fees

604

723

(119

)

-16.5

563

7.3

Data processing fees

486

558

(72

)

-12.9

550

(64

)

-11.6

Other operating expenses

2,105

1,937

168

8.7

1,521

584

38.4

Total noninterest expenses

14,212

15,539

(1,327

)

-8.5

12,589

1,623

12.9

The decrease in total noninterest expense when comparing the first quarter of 2026 to the fourth quarter of 2025 is mainly due to the decrease in salaries and benefits expense. This decrease was largely due to increased incentive accruals resulting from plan metrics reaching payout levels during the fourth quarter of 2025.

When comparing the first quarter of 2026 to the same quarter of 2025, the increase in total noninterest expense was mainly due to the increases in salaries and employee benefits expenses as well as other operating expenses. The increase in salaries and benefit expense is mostly due to the increase in the number of full time equivalent "FTE" employees. During this period, FTE's increased from 233 to 253. Other operating expenses increased largely due to higher contributions toward charitable activities, primarily driven by the Bank’s matching of donations from a very successful Give with BOC campaign as well as elevated loan collection costs associated with a single multifamily relationship included in the nonaccrual loan balance discussed below.

Asset Quality and Provision for Credit Losses

As of

(dollars in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Nonaccrual loans

14,711

14,398

16,122

Loans past due 90 days or more and accruing interest

230

Other real estate owned and repossessed assets

—

135

—

Total nonperforming assets

14,724

14,593

16,352

Allowance for credit losses on loans

17,326

15,320

15,282

Allowance for credit losses on loans to total gross loans

1.19

1.04

1.05

Non-performing assets to total assets

0.80

0.77

0.86

Nonperforming assets consist of nonaccrual loans, loans 90 days or more past due and still accruing, other real estate owned (foreclosed properties), and repossessed assets. Nonperforming assets increased slightly between December 31, 2025 to and March 31, 2026. This increase was due to the addition of two small loans to nonaccrual status which was partially offset by the sale of one repossessed asset during the first quarter of 2026. Based on a recent valuation, the Bank believes that there is sufficient collateral to cover the entirety of the outstanding balance of the new nonaccrual relationships. Nonperforming assets decreased as of March 31, 2026 in comparison to March 31, 2025 mainly due to one large loan being paid off during the period. The collateral for this loan (multifamily real estate) was offered for sale on July 8, 2025, for $5.7 million with the Bank agreeing to a short sale of $4.8 million. This decrease was partially offset by several large relationships being placed in nonaccrual status during the same period.

The majority of all nonaccrual loans are secured by real estate and management evaluates the financial condition of these borrowers and the value of any collateral on these loans. The results of these evaluations are used to estimate the amount of losses which may be realized on the disposition of these nonaccrual loans. Specific reserves on nonaccrual loans totaled $2.1 million, $467 thousand and $152 thousand as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The increase in the specific reserve as of March 31, 2026 was primarily attributable to two commercial and industrial relationships for which new or increased specific allocations were recorded during the first quarter of 2026, driven by updated collateral information. Additional appraisals on certain nonaccrual and individually evaluated loans have been ordered and are expected to be received in the middle to late portion of the second quarter of 2026. The results of these appraisals may indicate that further specific reserves are warranted on certain existing nonaccrual or impaired loans, which could result in additional provisioning in future periods.

The Company realized $34 thousand in net recoveries for the quarter ended March 31, 2026 compared to net charge-offs of $237 thousand for the three months ended December 31, 2025. During the three months ended March 31, 2025, $891 thousand in net charge-offs were recognized. The majority of charge-offs recognized during the first quarter of 2025 were attributable to the write-down of one large multifamily relationship to the fair value of collateral, net of selling costs.

The ratio of allowance for credit losses to total loans was 1.19% and 1.04% at March 31, 2026 and December 31, 2025, respectively. The ratio of allowance for credit losses to total loans was 1.05% at March 31, 2025. The basis point increase in the allowance for credit losses to total loans between March 31, 2026, December 31, 2025, and March 31, 2025 was primarily driven by higher specific reserves, as discussed above. Increases in specific reserves accounted for 11 and 14 basis points, respectively, of the total basis point increase, with the remaining increase largely attributable to changes in historical loss ratios, primarily within the consumer and non‑owner‑occupied commercial real estate portfolios.

The amount of provision for credit losses on loans reflects the results of the Bank’s analysis used to determine the adequacy of the allowance for credit losses. The Company recorded $2.0 million in provision for credit losses on loans for the quarter ended March 31, 2026. The Company recognized provision for credit losses on loans of $747 thousand and $1.1 million for the quarters ended December 31, 2025 and March 31, 2025, respectively. The higher provision for the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025, was primarily driven by higher specific reserves, as well as increases in certain historical loss ratios, as discussed above. The higher provision for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025, was also primarily driven by higher specific reserves and increases in certain historical loss ratios, partially offset by higher charge‑offs recognized during the first quarter of 2025.

Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. The Company is committed to maintaining an allowance at a level that adequately reflects expected credit losses over the life of the loan portfolio.

Balance Sheet

Total consolidated assets of the Company at March 31, 2026 were $1.84 billion, which represented a decrease of $50.3 million or 2.66% from total assets of $1.89 billion at December 31, 2025. At March 31, 2025, total consolidated assets were $1.90 billion. Total assets decreased during the first quarter of 2026 in comparison to December 31, 2025 and March 31, 2025 primarily due to the decrease in cash and cash equivalents. Cash and cash equivalents were at a lower level as of March 31, 2026 due to declines in deposits and Federal Home Loan Bank advances during the quarter.

Total net loans decreased $16.2 million or 1.11% from $1.46 billion at December 31, 2025 to $1.44 billion at March 31, 2026 driven largely by the decline in commercial and industrial loans of $11.9 million as well as marine loan amortization. Approximately $7.5 million in commercial and industrial SBA loans were sold during the first quarter of 2026 along with the paydown of $3.1 million on one commercial and industrial line of credit.

Total deposits decreased to $1.60 billion as of March 31, 2026 when compared to December 31, 2025 deposits of $1.61 billion. At March 31, 2025 total deposits were $1.61 billion. During the second quarter of 2025, total deposits increased $152.7 million. While deposit balances remained fairly stable in total when comparing each period end, there was fairly significant movement in individual deposit categories. The majority of change to the deposit categories was due to large deposits in non-interest bearing accounts totaling $151.7 million that were made during the second quarter of 2025 and was primarily related to sales proceeds of two customer's businesses. During the third quarter of 2025, $72.4 million of these funds left the bank, with $79.3 million still remaining at September 30, 2025. During the fourth quarter of 2025, $74.4 million of these funds left the bank leaving a remaining $4.9 million.

Core deposit change for the quarter and twelve months ended March 31, 2026 was an increase of $29.7 million and a decrease of $7.1 million, respectively. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts and time deposits less than $250 thousand. The increase for the quarter ended March 31, 2026 was mainly due to strong growth in noninterest bearing demand deposits.

Liquidity

The objective of the Company’s liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation ("FDIC") insurance coverage limit of $250,000. As of March 31, 2026, the Company’s uninsured deposits were approximately $207.3 million or 13.1% of total deposits.

The Company’s liquid assets, which include cash and due from banks, interest-bearing deposits at other banks, loans with a maturity less than one year and nonpledged securities available for sale, were $423.9 million and borrowing availability was $635.3 million as of March 31, 2026, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $851.9 million. Liquid assets have decreased by only $535 thousand during the first quarter. In addition to deposits, the Company utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the FHLB as well as federal funds purchased from Community Bankers Bank may be used to fund the Company’s day-to-day operations. Long-term borrowings include FHLB advances as well as subordinated debt. Total outstanding borrowings decreased to $29.6 million at March 31, 2026 from $94.5 million at March 31, 2025. Borrowings decreased by $40.0 million from December 31, 2025 to March 31, 2026. The decreases were primarily due to the paydown of outstanding FHLB advances.

Additional sources of liquidity available to the Company include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.

Capital and Dividends

On April 23, 2026, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on May 15, 2026, to shareholders of record on May 4, 2026. The Board of Directors of the Company regularly reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $13.9 million to $190.3 million at March 31, 2026 compared to March 31, 2025 and increased $1.5 million compared to December 31, 2025. The increases are primarily due to increased retained earnings from net income.

The Company’s securities available for sale are fixed income debt securities and their unrealized loss position is a result of increased market interest rates since they were purchased. The Company expects to recover its investments in debt securities through scheduled payments of principal and interest. The accumulated other comprehensive loss related to the Company’s securities available for sale increased to $6.0 million at March 31, 2026 compared to $5.3 million at December 31, 2025 and decreased from $6.6 million at March 31, 2025.

As of March 31, 2026, the most recent notification from the FDIC categorized the Bank of Clarke as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at March 31, 2026, Bank of Clarke was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, Bank of Clarke must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Bank of Clarke exceeded these ratios at March 31, 2026.

Explanation of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and the impact of non-recurring transactions on the Bank’s results. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s results and financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for or more important than financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

First Quarter 2026 Earnings Release Conference Call and Webcast

Eagle Financial Services’ Chief Executive Officer, Brandon Lorey, and Chief Financial Officer, Kate Chappell, will hold a listen-only conference call and webcast to discuss fourth quarter results on Friday, April 24, 2026, at 10 a.m. eastern time. Those wishing to listen to the conference call should call the applicable number below and reference the Conference ID below.

USA / International – (Toll) - +1.646.968.2525

USA – (Toll-Free) +1.888.596.4144

Canada – (Toronto) +1.647.495.7514

Canada – (Toll-Free) +1.888.596.4144

Conference ID – 3461943 and press #

A replay of the call and webcast will be accessible at investors.bankofclarke.bank. Webcast URL: https://events.q4inc.com/attendee/201720331

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s future operations and are generally identified by phrases such as “the Company expects,” “the Company believes” or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to: changes in interest rates and general economic conditions; the legislative and regulatory climate; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and Federal Reserve; the quality or composition of the Company’s loan or investment portfolios; the Company's ability to successfully resolve non-performing assets; demand for loan products; liquidity and deposit flows; competition; demand for financial services in the Company's market area; acquisitions and dispositions; the Company’s ability to keep pace with new technologies; a failure in or breach of the Company’s operational or security systems or infrastructure, or those of third-party vendors or other service providers, including as a result of cyberattacks; the Company’s capital and liquidity; changes in tax and accounting rules, principles, policies and guidelines; and other factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission.

EAGLE FINANCIAL SERVICES, INC.

KEY STATISTICS (unaudited)

For the Three Months Ended

(Dollars in thousands, except per share data)

1Q26

4Q25

3Q25

2Q25

1Q25

Net income (loss)

3,740

4,334

5,584

5,270

(6,974

)

Earnings (loss) per share, basic

0.69

0.81

1.04

0.98

(1.53

)

Earnings (loss) per share, diluted

0.69

0.81

1.04

0.98

(1.53

)

Return on average total assets (annualized)

0.81

0.91

1.10

1.09

(1.48

Return on average total equity (annualized)

7.98

9.18

12.20

11.93

(20.75

Dividend payout ratio

44.93

38.27

29.81

31.63

N/M

Fee revenue as a percent of total revenue (1)

15.64

17.86

15.81

15.65

N/M

Net interest margin (annualized) (2)

3.63

3.61

3.58

3.42

2.98

Yield on average earning assets (annualized)

5.44

5.45

5.39

5.41

5.25

Rate on average interest-bearing liabilities (annualized)

2.64

2.71

2.82

2.90

3.12

Net interest spread

2.80

2.74

2.57

2.51

2.13

Tax equivalent adjustment to net interest income

Non-interest income (loss) to average assets

1.07

1.12

1.02

(1.82

Non-interest expense to average assets

3.09

3.24

2.83

2.78

2.68

Efficiency ratio(3)

67.97

70.39

64.06

64.91

72.20

N/M - Not meaningful

(1) Fee revenue as a percentage of total revenue is calculated by dividing the sum of wealth management fees, service charges on deposit accounts and other service charges and fees by the sum of net interest income and non-interest income.

(2) Non-GAAP financial measure - The annualized net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The rate utilized is 21%. Please refer to the "Reconciliation of Tax-Equivalent Net Interest Income" table for the quarterly tax equivalent net interest income and the reconciliation of net interest income to tax equivalent net interest income. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns a fair amount of nontaxable interest income due tax-exempt loan balances, net interest income for the ratio is calculated on a tax equivalent basis as described above.

(3) Non-GAAP financial measure - The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non-interest expense less gain/loss on other real estate owned and gain/loss on repossessed assets by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio, and loss on sale of other bank premises and equipment. The tax rate utilized is 21%. The Company calculates this ratio in order to evaluate its overhead structure or how effectively it is operating. An increase in the ratio from period to period indicates the Company is losing a larger percentage of its income to expenses. The Company believes that the efficiency ratio is a reasonable measure of profitability. Please refer to the "Reconciliation of Efficiency Ratio" table for additional information.

EAGLE FINANCIAL SERVICES, INC.

SELECTED FINANCIAL DATA BY QUARTER (unaudited)

(Dollars in thousands, except per share data)

1Q26

4Q25

3Q25

2Q25

1Q25

BALANCE SHEET RATIOS

Loans to deposits

91.28

91.65

88.21

81.44

89.99

Average interest-earning assets to average-interest bearing liabilities

146.04

147.54

155.33

146.08

137.78

PER SHARE DATA

Dividends

0.31

Book value

35.16

35.14

34.52

33.41

32.81

Tangible book value

35.16

35.14

34.52

33.41

32.81

SHARE PRICE DATA

Closing price

34.98

39.80

37.83

30.62

32.79

Diluted earnings multiple(1)

12.67

12.28

9.09

7.81

N/M

Book value multiple(2)

0.99

1.13

1.10

0.92

1.00

COMMON STOCK DATA

Outstanding shares at end of period

5,412,376

5,374,205

5,376,346

5,378,653

Weighted average shares outstanding

5,412,021

5,376,088

5,376,346

5,378,214

4,572,297

Weighted average shares outstanding, diluted

5,412,021

5,376,088

5,376,346

5,378,214

4,572,297

CREDIT QUALITY

Net (recoveries) charge-offs to average loans

(0.00

0.02

0.16

0.01

0.06

Total non-performing loans to total loans (3)

1.01

0.98

0.91

1.20

1.13

Total non-performing assets to total assets (4)

0.80

0.77

0.74

0.86

Non-accrual loans to:

Total loans

1.01

0.98

0.90

1.16

1.11

Total assets

0.80

0.76

0.68

0.82

0.85

Allowance for credit losses to:

Total loans

1.19

1.04

1.01

1.11

1.05

Non-performing assets (4)

117.67

104.98

103.81

91.24

93.45

Non-accrual loans

117.78

106.40

112.48

95.48

94.79

NON-PERFORMING ASSETS:

Loans delinquent over 90 days and still accruing

593

230

Non-accrual loans

14,711

14,398

13,167

16,735

16,122

Other real estate owned and repossessed assets

—

135

1,009

186

—

NET LOAN (RECOVERIES) CHARGE-OFFS:

Loans charged off

155

318

2,417

335

1,076

(Recoveries)

(189

)

(81

)

(117

)

(176

)

(185

)

Net (recoveries) charge-offs

(34

)

237

2,300

159

891

PROVISION FOR CREDIT LOSSES ON LOANS

1,972

747

1,131

856

1,146

ALLOWANCE FOR CREDIT LOSSES ON LOANS

17,326

15,320

14,810

15,979

15,282

N/M - Not meaningful

(1) The diluted earnings multiple (or price earnings ratio) is calculated by dividing the period’s closing market price per share by total equity per weighted average shares outstanding, diluted for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company’s earnings.

(2) The book value multiple (or price to book ratio) is calculated by dividing the period’s closing market price per share by the period’s book value per share. The book value multiple is a measure used to compare the Company’s market value per share to its book value per share.

(3) Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.

(4) Non-performing assets include non-accrual loans, loans 90 days or more past due and still accruing interest, repossessed assets and other real estate owned (OREO) acquired through foreclosure.

EAGLE FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

As of:

(Dollars in thousands)

Unaudited

03/31/2026

12/31/2025

Unaudited

09/30/2025

Unaudited

06/30/2025

Unaudited

03/31/2025

Assets

Cash and due from banks

14,500

13,942

15,558

17,401

16,527

Interest-bearing deposits with other institutions

94,974

103,984

189,119

260,568

187,018

Federal funds sold

80,293

99,268

63,452

118,033

61,401

Securities available for sale, at fair value

117,245

123,329

125,165

124,693

114,844

Loans held for sale

5,214

4,786

3,479

3,302

3,173

Loans, net of allowance for credit losses

1,441,533

1,457,757

1,445,118

1,422,653

1,436,982

Bank premises and equipment, net

14,911

14,906

14,878

14,693

14,625

Bank owned life insurance

32,004

31,720

31,440

31,172

30,894

Other assets

37,686

38,934

44,264

42,565

39,013

Total assets

1,838,360

1,888,626

1,932,473

2,035,080

1,904,477

Liabilities and Shareholders' Equity

Liabilities

Deposits:

Noninterest bearing demand deposits

455,107

432,171

521,149

574,596

421,342

Savings and interest bearing demand deposits

728,322

728,545

687,530

728,370

697,679

Time deposits

414,790

446,644

446,369

463,558

494,770

Total deposits

1,598,219

1,607,360

1,655,048

1,766,524

1,613,791

Federal funds purchased

—

101

172

—

Federal Home Loan Bank advances, short-term

—

25,000

Federal Home Loan Bank advances, long-term

—

40,000

Subordinated debt, net

29,596

29,579

29,562

29,545

29,529

Other liabilities

20,219

22,848

22,181

19,191

19,682

Total liabilities

1,648,034

1,699,787

1,746,892

1,855,432

1,728,002

Commitments and contingent liabilities

Shareholders' Equity

Preferred stock, $10 par value

—

Common stock, $2.50 par value

13,311

13,264

13,260

13,252

Surplus

64,802

64,720

64,458

64,154

63,922

Retained earnings

118,178

116,115

113,448

109,530

105,928

Accumulated other comprehensive (loss)

(5,965

)

(5,260

)

(5,585

)

(7,296

)

(6,627

)

Total shareholders' equity

190,326

188,839

185,581

179,648

176,475

Total liabilities and shareholders' equity

1,838,360

1,888,626

1,932,473

2,035,080

1,904,477

* Derived from audited consolidated financial statements.

EAGLE FINANCIAL SERVICES, INC.

LOAN DATA (unaudited)

As of:

(Dollars in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Mortgage real estate loans:

Construction & Secured by Farmland

82,594

82,336

84,467

76,060

98,660

HELOCs

58,784

58,640

54,549

52,032

50,543

Residential First Lien - Investment

107,084

107,308

103,942

106,493

108,519

Residential First Lien - Owner Occupied

176,378

178,806

178,725

177,000

174,822

Residential Junior Liens

10,775

10,724

10,497

10,865

10,983

Commercial - Owner Occupied

313,161

298,853

290,931

288,821

268,990

Commercial - Non-Owner Occupied & Multifamily

389,878

398,926

398,076

372,833

374,471

Commercial and industrial loans:

BHG loans

2,118

2,344

2,637

2,928

3,248

SBA PPP loans

—

Other commercial and industrial loans

99,170

110,876

100,777

103,571

109,658

Marine loans

170,217

175,639

185,938

196,434

203,455

Triad Loans

20,789

21,324

21,856

22,111

22,528

Consumer loans

9,707

7,418

7,566

7,628

7,898

Overdrafts

343

318

297

240

208

Other loans

12,572

13,946

13,895

15,372

11,822

Total loans

1,453,570

1,467,462

1,454,163

1,432,404

1,445,827

Net deferred loan costs and premiums

5,289

5,615

5,765

6,228

6,437

Allowance for credit losses on loans

(17,326

)

(15,320

)

(14,810

)

(15,979

)

(15,282

)

Net loans

1,441,533

1,457,757

1,445,118

1,422,653

1,436,982

EAGLE FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

For The Three Months Ended

(Dollars in thousands, except per share data)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Interest and Dividend Income

Interest and fees on loans

20,713

21,268

20,722

20,409

19,971

Interest on federal funds sold

109

Interest and dividends on securities available for sale:

Taxable interest income

1,230

1,274

1,293

1,142

695

Interest income exempt from federal income taxes

—

Dividends

117

150

Interest on deposits in banks

1,698

2,098

3,803

3,060

2,644

Total interest and dividend income

23,826

24,755

25,933

24,815

23,502

Interest Expense

Interest on deposits

7,225

7,526

7,886

8,263

8,504

Interest on Federal Home Loan Bank advances

344

494

499

1,308

Interest on subordinated debt

354

355

354

Total interest expense

7,923

8,374

8,734

9,117

10,166

Net interest income

15,903

16,381

17,199

15,698

13,336

Provision For Credit Losses

1,961

688

1,112

668

1,233

Net interest income after provision for credit losses

13,942

15,693

16,087

15,030

12,103

Noninterest Income

Wealth management fees

1,782

2,299

1,827

1,650

1,681

Service charges on deposit accounts

556

574

558

517

492

Other service charges and fees

921

1,009

1,151

1,060

972

(Loss) on the sale and disposal of bank premises and equipment

—

)

—

(16

)

(Loss) on the sale of AFS securities

—

(12,425

)

Gain on sale of loans held for sale

1,012

830

1,012

1,104

429

Small business investment company income

266

133

Bank owned life insurance income

284

280

268

278

273

Other operating income

107

324

293

175

Total noninterest income (loss)

4,928

5,355

5,165

4,917

(8,554

)

Noninterest Expenses

Salaries and employee benefits

8,229

9,462

8,717

7,845

7,179

Occupancy expenses

666

663

691

598

662

Equipment expenses

462

442

437

401

423

Advertising and marketing expenses

191

209

317

152

183

Stationery and supplies

ATM network fees

327

324

327

332

362

Other real estate owned expense (gain), net

)

—

Loss on the sale of other real estate owned

—

Loss on sale of repossessed assets

169

—

133

FDIC assessment

227

200

172

254

322

Computer software expense

354

373

389

325

282

Bank franchise tax

481

388

381

367

Professional fees

604

723

493

641

563

Data processing fees

486

558

469

633

550

Other operating expenses

2,105

1,937

1,907

1,802

1,521

Total noninterest expenses

14,212

15,539

14,344

13,399

12,589

Income (loss) before income taxes

4,658

5,509

6,908

6,548

(9,040

)

Income Tax Expense (Benefit)

918

1,175

1,324

1,278

(2,066

)

Net income (loss)

3,740

4,334

5,584

5,270

(6,974

)

Earnings (Loss) Per Share

Net income (loss) per common share, basic

0.69

0.81

1.04

0.98

(1.53

)

Net income (loss) per common share, diluted

0.69

0.81

1.04

0.98

(1.53

)

EAGLE FINANCIAL SERVICES, INC.

Average Balances, Income and Expenses, Yields and Rates (unaudited)

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

Interest

(Dollars in thousands)

Average

Income/

Average

Income/

Average

Income/

Average

Assets:

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Securities:

Taxable

122,130

1,306

4.34

124,490

1,334

4.25

117,367

845

2.92

Tax-Exempt (1)

—

353

4.25

Total Securities

122,130

1,306

4.34

124,490

1,334

4.25

117,720

849

2.93

Loans:

Taxable

1,434,955

20,639

5.83

1,445,196

21,172

5.81

1,442,343

19,871

5.59

Non-accrual

14,534

—

12,294

—

3,959

—

Tax-Exempt (1)

7,448

5.12

9,504

122

5.09

10,130

127

5.07

Total Loans

1,456,937

20,733

5.77

1,466,994

21,294

5.76

1,456,432

19,998

5.57

Federal funds sold and interest-bearing deposits in other banks

198,084

1,807

3.70

214,010

2,153

3.99

244,780

2,683

4.45

Total earning assets

1,777,151

23,846

5.44

1,805,494

24,781

5.45

1,818,932

23,530

5.25

Allowance for credit losses on loans

(15,695

)

(15,038

)

(15,228

)

Total non-earning assets

105,767

109,485

102,727

Total assets

1,867,223

1,899,941

1,906,431

Liabilities and Shareholders' Equity:

Interest-bearing deposits:

NOW accounts

312,314

1,667

2.16

308,621

1,696

2.18

275,462

1,463

2.15

Money market accounts

286,953

1,515

2.14

278,231

1,522

2.17

274,142

1,512

2.24

Savings accounts

122,622

0.11

123,577

0.11

132,905

0.11

Time deposits:

$250,000 and more

172,241

1,646

3.88

177,078

1,780

3.99

186,048

2,115

4.61

Less than $250,000

264,713

2,364

3.62

266,630

2,494

3.71

311,499

3,377

4.40

Total interest-bearing deposits

1,158,843

7,225

2.53

1,154,137

7,526

2.59

1,180,056

8,504

2.92

Federal funds purchased

—

N/M

—

N/M

—

N/M

Federal Home Loan Bank advances

28,444

344

4.90

40,000

494

4.90

110,556

1,308

4.80

Subordinated debt, net

29,585

354

4.85

29,568

354

4.75

29,517

354

4.87

Total interest-bearing liabilities

1,216,879

7,923

2.64

1,223,706

8,374

2.71

1,320,137

10,166

3.12

Noninterest-bearing liabilities:

Demand deposits

437,244

464,564

426,947

Other Liabilities

23,092

24,408

23,071

Total liabilities

1,677,215

1,712,678

1,770,155

Shareholders' equity

190,008

187,263

136,276

Total liabilities and shareholders' equity

1,867,223

1,899,941

1,906,431

Net interest income (1)

15,923

16,407

13,364

Net interest spread

2.80

2.74

2.13

Interest expense as a percent of average earning assets

1.81

1.84

2.27

Net interest margin (1)

3.63

3.61

2.98

N/M - Not meaningful

(1) Non-GAAP financial measure - Income and yields are reported on tax-equivalent basis using a federal tax rate of 21%. Please refer to the "Reconciliation of Tax-Equivalent Net Interest Income" table for additional information.

EAGLE FINANCIAL SERVICES, INC.

Reconciliation of Tax-Equivalent Net Interest Income (unaudited)

Three Months Ended

(Dollars in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

GAAP Financial Measurements:

Interest Income - Loans

20,713

21,268

20,722

20,409

19,971

Interest Income - Securities and Other Interest-Earnings Assets

3,113

3,487

5,211

4,406

3,531

Interest Expense - Deposits

7,225

7,526

7,886

8,263

8,504

Interest Expense - Other Borrowings

698

848

854

1,662

Total Net Interest Income

15,903

16,381

17,199

15,698

13,336

Non-GAAP Financial Measurements:

Add: Tax Benefit on Tax-Exempt Interest Income - Loans

Add: Tax Benefit on Tax-Exempt Interest Income - Securities

—

Total Tax Benefit on Tax-Exempt Interest Income

Tax-Equivalent Net Interest Income

15,923

16,407

17,224

15,724

13,364

EAGLE FINANCIAL SERVICES, INC.

Reconciliation of Efficiency Ratio (unaudited)

Three Months Ended

(Dollars in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Summary of Operating Results:

Noninterest expenses (GAAP)

14,212

15,539

14,344

13,399

12,589

Less: Loss on other real estate owned

—

Less: Loss on sale of repossessed assets

169

—

133

Adjusted noninterest expenses (non-GAAP)

14,173

15,319

14,344

13,399

12,456

Net interest income

15,903

16,381

17,199

15,698

13,336

Noninterest income (GAAP)

4,928

5,355

5,165

4,917

(8,554

)

Less: (Loss) on the sale and disposal of premises and equipment

—

)

—

(16

)

Less: (Loss) on the sale of securities

—

(12,425

)

Adjusted noninterest income (non-GAAP)

4,928

5,356

5,167

4,917

3,887

Tax equivalent adjustment (1)

Total net interest income and noninterest income, adjusted (non-GAAP)

20,851

21,763

22,391

20,641

17,251

Efficiency ratio

67.97

70.39

64.06

64.91

72.20

(1) Non-GAAP financial measure -Includes tax-equivalent adjustments on loans and securities using the federal statutory tax rate of 21%.

EAGLE FINANCIAL SERVICES, INC.

Reconciliation of GAAP to Non-GAAP Performance Highlights (unaudited)

Three Months Ended

(dollars in thousands except for per share data)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

GAAP Financial Measurements:

GAAP Net income (loss)

3,740

4,334

5,584

5,270

(6,974

)

Adjustments to net income (loss):

Loss on sales of securities

—

12,425

Tax effect of adjustments to net income

—

(2,609

)

Non-GAAP Net income

3,740

4,334

5,584

5,270

2,842

GAAP Noninterest income (loss)

4,928

5,355

5,165

4,917

(8,554

)

Adjustments to noninterest income (loss):

Loss on sales of securities

—

12,425

Non-GAAP Noninterest income

4,928

5,355

5,165

4,917

3,871

Earnings per share, basic and diluted

0.69

0.81

1.04

0.98

(1.53

)

Effect of adjustments to net income

—

2.15

Non-GAAP Earnings per share, basic and diluted

0.69

0.81

1.04

0.98

0.62

Annualized return on average equity

7.98

9.18

12.20

11.93

-20.75

Effect of adjustments to net income

—

29.21

Non-GAAP Annualized return on average equity

7.98

9.18

12.20

11.93

8.46

Annualized return on average assets

0.81

0.91

1.10

1.09

-1.48

Effect of adjustments to net income

—

2.07

Non-GAAP Annualized return on average assets

0.81

0.91

1.10

1.09

0.59

EX-99.2

Filename: efsi-ex99_2.htm · Sequence: 3

Forward Looking Statements

Investment Highlights

Balance Sheet Growth

Deposit Portfolio

Loan Portfolio

Asset Quality

Earnings, Book Value and Dividends

Yield and Cost Analysis

Profitability Metrics

Capital Ratios

Non-GAAP Reconciliation

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