Eagle Financial Services, Inc. reported a net loss of $6.97 million for the first quarter of 2025, a significant decline from a net income of $2.55 million during the same period in 2024. This resulted in a loss per share of $1.53, compared to earnings of $0.72 per share in the prior year. The company's total assets increased to $1.90 billion, up from $1.87 billion at the end of 2024, driven by a rise in cash and cash equivalents, which reached $264.95 million, compared to $193.16 million at the end of the previous year.
The financial performance was notably impacted by a $12.4 million loss on the sale of available-for-sale securities, part of a strategic balance sheet repositioning. The company sold securities with an amortized cost of $99.2 million, resulting in a net realized loss that significantly affected the overall profitability for the quarter. Despite this, total interest income rose to $23.5 million, a 7.3% increase from $21.9 million in the prior year, primarily due to a higher average balance of interest-earning assets.
Eagle Financial's loan portfolio decreased slightly to $1.45 billion from $1.47 billion, reflecting a reduction in marine loans as the company ceased new marine lending activities. The allowance for credit losses on loans increased to $15.28 million, representing 1.05% of total loans, up from 1.02% at the end of 2024. The company reported a provision for credit losses of $1.23 million, driven by charge-offs related to commercial real estate loans.
In terms of operational metrics, total deposits rose to $1.61 billion, a 2.45% increase from the previous quarter, with noninterest-bearing demand deposits contributing significantly to this growth. The company also completed a public offering of 1,796,875 shares, generating net proceeds of $53.5 million, which bolstered its capital position and liquidity. As of March 31, 2025, total shareholders' equity stood at $176.5 million, reflecting a substantial increase from $119 million at the end of 2024.
Looking ahead, Eagle Financial Services aims to improve its core net income and net interest margin following the repositioning of its investment portfolio. The company remains focused on maintaining its capital ratios above regulatory minimums and enhancing its operational efficiency, despite the challenges posed by market conditions and the recent losses.
About EAGLE FINANCIAL SERVICES INC
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