Eagle Financial Services (EFSI) investor relations material

Executive summary

• Net income for Q1 2026 was $3.74 million, or $0.69 per diluted share, up sharply year-over-year from a net loss in Q1 2025, reflecting recovery from prior-year securities sale losses and solid underlying performance.

• Total assets were $1.84 billion, with gross loans at $1.46 billion and deposits at $1.60 billion; core deposits grew 2.3% quarter-over-quarter.

• Margin expanded, efficiency ratio improved to 67.97% from 72.20% year-over-year, and credit quality remained stable.

• Strategic focus remains on disciplined deposit pricing, expense management, technology investment, and relationship-based lending.

• Quarterly dividend of $0.31 per share declared, with tangible book value per share at $35.16.

Financial highlights

• Net interest income was $15.9 million, up 19% year-over-year but down 2.9% sequentially, driven by higher yields and lower funding costs.

• Net interest margin increased to 3.63%, up from 2.98% in Q1 2025 and 3.61% in Q4 2025.

• Noninterest income totaled $4.9 million, up from a loss in Q1 2025, reflecting higher wealth management and loan sale gains.

• Noninterest expense was $14.2 million, mainly due to lower incentive compensation and higher salaries and benefits.

• Provision for credit losses was $2 million, up from Q4, strengthening reserve coverage.

Outlook and guidance

• Management expects continued focus on core deposit growth, disciplined lending, operational efficiency, and scalable growth.

• Loan pipeline remains strong at $275 million, over $100 million higher year-over-year.

• Expectation of additional information on a large problem credit in Q2, which may impact reserves.

• Conservative approach to credit and capital positions the balance sheet well for future quarters.

• Management expects operating leverage to improve with further scale.