Eagle Financial Services (EFSI) investor relations material

Executive summary

• Net income for Q2 2026 was $4.98 million ($0.92 per diluted share), boosted by a $3.5 million pre-tax gain from the sale of a membership interest in Bearing Insurance Group; adjusted net income, excluding the one-time gain, was $2.23 million ($0.41 per diluted share), reflecting higher provision expense and reserve strengthening.

• Commercial-focused banking institution with diversified revenue, primarily from its wealth division, operating in attractive Mid-Atlantic markets.

• Deep management team with significant experience and insider ownership aligning interests with shareholders.

• Core banking performance improved with strong loan growth, margin expansion, and a strengthened balance sheet.

• Focus remains on disciplined growth, prudent credit management, and long-term shareholder value.

Financial highlights

• Net interest income rose to $16.97 million, up 6.7% from Q1 2026; net interest margin expanded to 3.86%, up 23 bps sequentially and 44 bps year-over-year.

• Adjusted noninterest income was $5.10 million, with wealth management revenue performing well.

• Noninterest expense increased to $15.5 million, mainly due to higher incentive compensation, workforce investments, and operating expenses.

• Provision for credit losses rose to $3.21 million, up from $2.0 million in Q1 2026, driven by changes in loss factors, loan growth, and higher reserves.

• Total assets reached $1.85 billion as of Q2 2026, up 0.5% sequentially; gross loans grew 2.8% quarter-over-quarter to $1.51 billion; deposits increased modestly to $1.62 billion.

Outlook and guidance

• Net interest margin for the second half of 2026 is expected to be approximately 3.75%.

• Management anticipates continued growth and disciplined underwriting, with a healthy loan pipeline.

• Strategic opportunities, including partnerships and acquisitions, remain under consideration.

• Focus remains on disciplined organic growth, leveraging technology and infrastructure for future profitability.

• Continued emphasis on commercial lending and expanding treasury management products.