Eagle Financial Services (EFSI) investor relations material

Executive summary

• Net income for Q2 2026 was $5 million ($0.92 per share), up from Q1 2026 but down from Q2 2025, with results boosted by a $3.5 million pre-tax gain from the sale of Bearing Insurance Group; adjusted net income was $2.23 million, reflecting higher provision expense and reserve strengthening.

• The institution operates as a commercial-focused bank with diversified revenue, strong management, and significant insider ownership, primarily serving high-growth Mid-Atlantic markets.

• Strategic actions, including a capital raise and securities portfolio repositioning in 2025, improved the balance sheet and forward earnings profile.

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

Financial highlights

• Net interest income rose to $17 million, up 6.7% from Q1 2026 and 8.1% year-over-year; net interest margin expanded to 3.86%.

• Noninterest income was $8.6 million, up 74% sequentially, mainly due to the Bearing Insurance Group sale; adjusted noninterest income was $5.1 million.

• Noninterest expense increased to $15.5 million, up 15.9% year-over-year, driven by higher salaries, incentive compensation, and workforce investments.

• Provision for credit losses rose to $3.5 million, reflecting higher charge-offs, specific reserves, and loan growth.

• Total assets reached $1.85 billion; deposits increased modestly to $1.62 billion.

Outlook and guidance

• Management expects disciplined growth, continued investment in people and technology, and a focus on core earnings and balance sheet strength.

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

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

• Forward-looking statements caution about risks from interest rates, economic conditions, regulatory changes, and credit quality.