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 from $2.84 million in Q1 2025, but down sequentially from Q4 2025.

• Tangible book value per share was $35.16 at quarter-end.

• Assets totaled $1.84 billion, down 2.7% quarter-over-quarter; gross loans at $1.46 billion, up 1.0% QoQ.

• Deposits stood at $1.60 billion, a 0.6% decrease from Q4 2025; core deposits grew 2.3% QoQ.

• Maintained strong asset quality with non-performing assets at 0.80% of total assets and reserves/loans at 1.19%.

Financial highlights

• Net interest income was $15.9 million, down 2.9% sequentially but up 19.2% year-over-year.

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

• Non-interest income totaled $4.9 million; wealth management fees declined after non-recurring Q4 transactions, partially offset by higher gains on SBA loan sales.

• Non-interest expense declined to $14.2 million, mainly due to lower incentive compensation.

• Efficiency ratio improved to 67.97% from 70.39% in Q4 2025 and 72.2% in Q1 2025.

Outlook and guidance

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

• Management expects continued focus on disciplined execution, maintaining solid capital and liquidity, and monitoring economic conditions.

• 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.

• Continued investment in technology and infrastructure to support scalable growth.