Eagle Financial Services Reports 63.1% Increase in Q3 Net Income, Total Revenue Rises to $22.4 Million

Eagle Financial Services, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a net income of $5.6 million, a 63.1% increase from $3.4 million in the same period last year. For the nine months, however, net income decreased to $3.9 million from $9.2 million, primarily due to a significant loss on the sale of available-for-sale securities amounting to $12.4 million. The company’s total revenue for the third quarter was $22.4 million, up from $18.4 million in the prior year, driven by a rise in net interest income, which reached $17.2 million compared to $13.2 million in 2024.

The company’s total assets increased to $1.93 billion as of September 30, 2025, up from $1.87 billion at the end of 2024. This growth was supported by a rise in total deposits, which reached $1.66 billion, reflecting a 5.07% increase from $1.58 billion. The increase in deposits was largely attributed to significant inflows into noninterest-bearing accounts, particularly from two large customer transactions. The company also completed a public offering of 1,796,875 shares, generating net proceeds of $53.5 million, which bolstered its liquidity position.

Eagle Financial's loan portfolio showed a slight decline, with gross loans totaling $1.46 billion, down from $1.47 billion at the end of 2024. The decrease was influenced by the sale of a pool of residential mortgage loans and ongoing paydowns in the marine lending segment, as the company has ceased accepting new marine business. The allowance for credit losses on loans was $14.8 million, representing 1.01% of gross loans, consistent with the previous year. The company reported net charge-offs of $3.4 million for the nine months ended September 30, 2025, compared to $1.5 million in the same period of 2024.

Operationally, the company has seen an increase in its workforce, with full-time equivalent employees rising from 233 to 249 over the past year. The efficiency ratio improved to 64.06% for the third quarter of 2025, down from 71.34% in the prior year, indicating better operational efficiency. Looking ahead, Eagle Financial Services aims to continue its growth trajectory while managing the impacts of market conditions and strategic decisions, including the ongoing evaluation of its loan portfolio and capital management strategies.